Hatsun Agro Product (HAP), India's largest private-sector dairy company, has planned investments of around ₹1,000 crore in FY27, according to businessline. The capital expenditure will be allocated to expanding the company's milk procurement and distribution network, revamping production facilities and marketing efforts, the publication reported.
₹1,000 crore capex targets higher daily pack volumes
The investment is part of HAP's plan to sell roughly 2.4 crore product packs per day within the next two years, up from the current 1.84 crore packs, according to businessline. The Chennai-based company posted revenues of ₹9,959 crore in FY26, an increase of 14.5 per cent from the previous fiscal.
| Metric | Current level | Target |
|---|---|---|
| Daily product packs sold | 1.84 crore | ~2.4 crore within two years |
| HAP Daily outlets | ~4,100 | 5,000+ by FY-end |
| FY26 revenue | ₹9,959 crore | +14.5% YoY |
| FY27 revenue projection | — | ~₹12,000 crore if 19% growth sustains |
Q1FY27 growth and margin model
Despite a challenging environment for the dairy industry, HAP achieved 19 per cent growth in Q1FY27, Chairman RG Chandramogan told businessline. "We are already at 19 per cent growth. If we can sustain it we will be close to ₹12,000 crore in FY27," he said.
Chandramogan added that while rising input costs have compressed margins across the industry, Hatsun has posted better margins because of its business model. The company operates without middlemen on either procurement or distribution.
We don't have any middlemen either on the procurement side or the distribution side. We operate from our own outlets or franchisee outlets so there are no other layers. This along with our strongest branding as the market leader across categories are the reasons our margins are better. — RG Chandramogan, Chairman, Hatsun Agro Product
Procurement inflation and pricing strategy
HAP saw a 13 per cent year-on-year increase in milk procurement prices, which Chandramogan attributed to weather-related pressures, rising cattle feed costs and higher milk fat prices. The company chose to delay price hikes instead of immediately passing on higher procurement costs. "We preferred waiting for the costs to stabilise rather than implementing multiple successive price increases," he said.
Network expansion and new product pipeline
Hatsun currently operates around 4,100 HAP Daily outlets as localised micro-distribution networks for products sold under major brands including Arokya, Arun and Hatsun, alongside 220 Ibaco outlets, its premium ice cream brand. Businessline reported that the company plans to scale its store presence to over 5,000 by the financial year-end.
The company also plans to launch its range of protein-rich drinks within the next 1-2 months, according to Chandramogan. Detailed product information will be announced closer to launch, with pricing and specifications not disclosed. Hatsun is additionally working on new ice cream variants and chocolate products.
Peer revenue comparison
Businessline's report cited Q1FY27 results for two dairy peers:
| Company | Q1FY27 revenue growth | Q1FY27 revenue |
|---|---|---|
| Dodla | 39% | ₹1,198 crore |
| Heritage | 43% | ₹1,338 crore |
Production timeline
The ₹1,000 crore capex is planned for FY27. The daily pack target of 2.4 crore is set for the next two years. Protein-rich drinks are scheduled to launch within 1-2 months, and the retail network expansion to more than 5,000 outlets is targeted by the current financial year-end, according to businessline.
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