Image Source: The Hindu
July 25, 2018
Hatsun Agro Product, a Rs. 4,300 crore company with a milk processing capacity of about 45 lakh litres a day, has plans to expand the capacities to strengthen its markets further.
In recent meets, Hatsun is all set for dairy manufacturing plant in Maharashtra as an expansion project. The installation of the dairy plant is expected to be commissioned before end of December 2019. Hatsun has decided to set up Rs.100 crore, greenfield dairy unit in Solapur. As land acquisition is in final stage, the unit will have a daily production capacity of about 2 lakh litres of milk and 1 lakh litres of curd. The production will cater to the demand which is currently met by their units from Telangana and Karnataka.
With liquid milk brand Arokya, Arun and Ibaco ice-creams and a wide range of dairy products under Hatsun brand, the company has sailed over the year 2017-18 though the overall market conditions were tough and rough for the dairy sector. With positive attitude, the firm is looking at the next phase of growth with more enthusiasm.
R.G. Chandramogan, Chairman and Managing Director, honoured by ‘Patronship’ award by Indian Dairy Association have some insights on the developments. According to him in 2017-18, Hatsun invested heavily in projects, and piled up debt of over Rs.1,200 crore as of March-end. But the recent rights issue, which was oversubscribed, strengthened the balance-sheet and reduced debt and the debt equity came close to 1:1.
R.G. Chandremogan said, “Linked to our ice-creams business, we have decided to enter the premium brands of chocolates using our exclusive chain of Ibaco ice-cream outlets. We have invested about Rs.18 crore in a chocolate-making unit using Italian technology. Production can go up to 125,000 pieces a day. Display and chilling equipment are being set up in 145 Ibaco outlets and the product will be placed fully by mid-August. This is a new category of premium chocolates targeting the gifting segment. This complements our ice-cream cake range, which accounts for about 25 per cent, or about Rs.25 crore, of business in this segment”.
Further to his statements he added, “Farmers’ income cannot be increased by simply increasing output. We have to ensure their operations are efficient, cost-effective and products are globally competitive. Hatsun Agro works with Tamil Nadu Agriculture University where it has established a chair for solutions in dairy farming. A glut in milk production when not managed properly will often be followed by shortage as dairy farmers who have suffered will cut back. The next three-four months will be crucial for the sector as the government has lately stepped in to support co-operatives”.
The high run company at the share market has excelled too. Shares of Hatsun Agro Product Ltd. was last trading in BSE at Rs.634.8 as compared to the previous close of Rs. 629.7. The total number of shares traded during the day was 1074 in over 139 trades.
Hatsun Agro Product manufactures and markets products that cater to both cooking and consumption like milk, curd, ice creams, dairy whitener, skimmed milk powder, ghee, paneer and lots more. The company’s brands include Arun Icecreams, Arokya Milk, Hatsun Curd, Hatsun Paneer, Hatsun Ghee, Hatsun Dairy Whitener and Ibaco.
Joined recently the global renewable energy bandwagon “RE 100”, Chandramogan said, “our mission is to leave the world in a better place… that’s why we have joined the global RE 100 campaign..to source 100 per cent renewable electricity by 2032.”