Chennai : Hatsun Agro Product Ltd., India’s largest private-sector dairy company, has unveiled an ambitious ₹1,000 crore capital expenditure (capex) plan for FY27 as it accelerates investments in procurement, manufacturing, distribution and product innovation to sustain its growth momentum.
The Chennai-headquartered dairy major reported FY26 revenue of ₹9,959 crore, registering a 14.5% year-on-year increase, and has continued its strong performance into the new financial year with 19% growth in the first quarter of FY27. If this pace is maintained, the company expects revenue to approach ₹12,000 crore during FY27.
Chairman R. G. Chandramogan said the planned investment will primarily strengthen the company’s milk procurement and distribution network while modernising production facilities and supporting expanded marketing initiatives.
Expansion Across the Value Chain
As part of its long-term growth strategy, Hatsun Agro aims to increase its daily product sales from the current 1.84 crore packs to 2.4 crore packs within the next two years.
The company is also expanding its retail footprint, targeting more than 5,000 outlets by the end of the financial year, up from its current network of 4,100 HAP Daily stores and 220 Ibaco outlets.
Alongside infrastructure expansion, Hatsun Agro plans to diversify its product portfolio with the launch of protein-rich beverages in the coming months, while also introducing new ice cream variants and chocolate products to cater to evolving consumer preferences.
Integrated Business Model Supports Margins
The company attributes its strong financial performance to its integrated business model, which eliminates intermediaries in both milk procurement and product distribution. By operating through company-owned and franchisee outlets, Hatsun Agro maintains greater control over quality, pricing and customer reach while supporting stronger operating margins.
Managing Rising Input Costs
The dairy industry continues to face pressure from rising procurement costs driven by higher cattle feed prices, increasing milk fat prices and weather-related challenges. Hatsun Agro said milk procurement prices have increased by approximately 13% year-on-year.
Despite these cost pressures, the company chose to delay retail price increases rather than immediately passing higher procurement costs on to consumers, reflecting its focus on maintaining market competitiveness while preserving long-term consumer demand.
With sustained revenue growth, an expanding retail network and continued investment in manufacturing and value-added products, Hatsun Agro is positioning itself for the next phase of expansion as demand for branded dairy products continues to rise across India.
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