Cashless model shields Hatsun from cash woes
It’s business as usual for Hatsun Agro Products Ltd., owners of popular brands such as Arun Icecreams, Arokya Milk and Hatsun Curd despite the announcement of demonetisation as the firm had gone cashless long ago.
Even as the entire spectrum of trade and industry is still measuring the impact of the out-of-the-blue announcement on withdrawal of high-value currency notes, life has remained mostly the same for Hatsun and its huge client base.
Chairman and Managing Director of Hatsun, R.G. Chandramogan, sports a wide grin on his face. Not without reason, though. With the benefit of hindsight, he could now afford to give himself a pat on his back for the decision he took a couple of years ago to take the company on a cashless course. Two things prompted him to take Hatsun on the cashless path.
One, the volume of its daily transactions with its clients and stakeholders is enormous.
Two, the physical movement of huge quantity of cash daily is a logistical nightmare given the security risks associated with handling such a quantum. The Hatsun network encompasses more than three lakh farmers (from whom it procures its supplies), close to 2,800 sales outlets and 3,000 vehicle operators, besides its own employees.
Milk sales contribute about Rs.75 crore a month for Hatsun. Other product sales work out to Rs. 350 crore a month. “All these are done through the bank,’’ he said. Though the move did encounter initial resistance from farmers, the company was able convince them take up the banking channel, to go the bank channel route, Mr. Chandramogan said
Source: DAIRY NEWS OF INDIA