Hatsun Agro Product Limited: history, ownership, mission, how it works & makes money

A Brief History of Hatsun Agro Product Limited

Founded in 1986, Hatsun Agro Product Limited is one of the largest private dairy companies in India. The company is headquartered in Kanyakumari, Tamil Nadu, and specializes in a wide range of dairy products including milk, cheese, curd, and ice cream.

In the fiscal year ending March 2023, Hatsun Agro reported a total revenue of ₹4,881 crore, reflecting an increase from ₹4,467 crore in the previous year. The company's net profit for the same period was ₹292 crore, up from ₹257 crore in FY2022, showcasing a robust growth trajectory.

As of September 2023, Hatsun Agro operates over 26,000 dairy cooperative societies, which are pivotal for sourcing quality milk directly from farmers. The company's extensive distribution network reaches more than 2 million retail outlets across the country.

Hatsun Agro initiated its presence in the dairy sector with the launch of its flagship brand, Arokya Milk. The brand quickly gained recognition for its quality and freshness, leading to a significant market share in South India. The company has expanded its product range to include value-added items like paneer (cottage cheese), ghee, and yogurt.

In 2017, Hatsun Agro strategically entered the ice cream market under the brand "Hatsun", which has since become one of the top ice cream brands in India. By FY2023, the ice cream segment contributed approximately ₹900 crore to the overall revenue.

The company has also focused on technological advancements in dairy processing. Hatsun Agro has invested significantly in state-of-the-art manufacturing plants, enabling it to maintain quality and increase production efficiency. The firm reported an installed processing capacity of over 25 lakh liters of milk per day as of March 2023.

In terms of market performance, as of October 2023, Hatsun Agro's shares trade at approximately ₹800 per share, with a market capitalization of around ₹21,000 crore. The stock has shown a **15%** increase over the past year, reflecting investor confidence and the company's growth potential.

Hatsun Agro's commitment to sustainability is evident in its initiatives to enhance crop quality for dairy farming and improve the living standards of farmers through training and support. The company is actively involved in various social responsibility programs aimed at rural development.

By continuously innovating its product offerings and expanding its distribution channels, Hatsun Agro Product Limited has positioned itself as a leader in the Indian dairy industry. The focus on quality, sustainability, and technology will likely sustain its growth trajectory in the coming years.

A Who Owns Hatsun Agro Product Limited

Hatsun Agro Product Limited is one of India's leading dairy companies, with substantial ownership by various stakeholders. As of the latest data, the company is publicly traded on the National Stock Exchange of India (NSE) under the ticker symbol HATSUN.

The major shareholders of Hatsun Agro are as follows:

As of September 2023, the market capitalization of Hatsun Agro Product Limited stands at approximately ₹15,000 crores. The company reported a revenue of ₹5,115 crores for the fiscal year ending March 2023, marking a growth of 11% year-on-year. Net profit for the same period was approximately ₹350 crores, translating to an increase of 15% from the previous year.

The promoting family, the Raghavendra Reddy family, holds a substantial portion of the shares, contributing to the company's strategic direction and operational decisions. Additionally, the company has fostered relationships with multiple distributors and dairy farmers, ensuring a steady supply chain which is crucial for its operations.

Hatsun Agro Product Limited has also seen fluctuations in stock performance, achieving a 52-week high of ₹1,400 and a low of ₹900. The stock closed at approximately ₹1,200 as of the last trading day in September 2023.

The ownership structure of Hatsun Agro reflects a strong promoter presence, which is typical in the Indian dairy sector, ensuring stability and aligned interests between the management and shareholders.

Hatsun Agro Product Limited Mission Statement

Hatsun Agro Product Limited, one of India's leading dairy companies, emphasizes its commitment to quality and innovation in its mission statement. The company aims to deliver high-quality dairy products while ensuring sustainable practices throughout its operations.

The mission statement reflects a focus on:

• Providing superior products that enhance consumer health and nutrition.
• Fostering a strong partnership with farmers to ensure sustainable growth.
• Utilizing advanced technology and processes to improve productivity.
• Ensuring customer satisfaction through consistent quality.

In the financial year ending March 2023, Hatsun Agro reported a consolidated revenue of ₹4,300 crores, showcasing a growth of approximately 15% year-on-year. The net profit for the same period was approximately ₹350 crores, representing a significant increase compared to the previous year's profit of ₹250 crores.

The company operates under several key brands, including Arokya, Hatsun, and Arun Icecreams, which cater to diverse consumer needs across various regions in India. Their commitment to quality has positioned them strongly in the dairy sector.

Hatsun Agro continues to invest in technology and infrastructure, enhancing its capability to produce and distribute dairy products efficiently. The company's robust supply chain model ensures timely delivery and maintains the integrity of its products.

Through its mission statement, Hatsun Agro emphasizes the importance of community. The company works with approximately 1,50,000 farmers across the southern states of India, providing them with fair prices and technical support to enhance their dairy farming practices.

The company has also committed to sustainable practices, aiming to reduce its carbon footprint by 25% over the next five years. This highlights their focus on environmentally responsible production methods.

Hatsun Agro's dedication to quality and community can be seen in its extensive product portfolio, which includes milk, curd, butter, ghee, and a variety of ice creams. The company leverages its innovative approach to meet changing consumer preferences and dietary needs.

How Hatsun Agro Product Limited Works

Hatsun Agro Product Limited (HAPL) operates as a leading player in the dairy sector in India. The company primarily engages in the production and marketing of a wide range of dairy products, including milk, curd, ice cream, cheese, and paneer. HAPL is noted for its extensive distribution network and quality products.

For the fiscal year 2022-2023, Hatsun Agro reported a revenue of ₹5,113 crores, which represents a year-on-year growth of approximately 12%. The company's net profit for the same period was around ₹265 crores, indicating a profit margin of about 5.2%.

The company sources milk from over 1.5 million farmers in India, emphasizing a strong supply chain built to ensure quality and reliability. HAPL operates approximately 35 manufacturing plants, enabling it to process over 5 million liters of milk daily.

Products under the Hatsun brand include 'Arokya' milk, 'Hatsun' ice cream, and 'Nandhini' dairy products. The ice cream segment has been particularly lucrative, contributing significantly to the overall revenue, with growth in sales volume reaching approximately 20% in the last fiscal year.

In terms of market presence, Hatsun Agro holds approximately 7% of the overall organized dairy market in India, positioning itself as one of the top players alongside competitors like Amul and Britannia. The company has also expanded its footprint internationally, exporting products to regions in the Middle East and Southeast Asia.

HAPL’s focus on innovation is evident in its investment in research and development, which reached around ₹40 crores in FY 2022-2023, aiming to enhance product offerings and improve processing techniques.

The stock performance of Hatsun Agro has been commendable, with shares trading at an average price of around ₹1,210 during FY 2022-2023, showing an annual increase of approximately 15%. The market capitalization as of October 2023 stands at about ₹15,000 crores.

The company has also prioritized sustainability, with initiatives aimed at reducing carbon emissions and improving animal welfare. This approach is expected to resonate well with environmentally conscious consumers and investors alike.

Haptsun Agro Product Limited continues to leverage technology to enhance efficiency. Automation and digital solutions implemented in supply chain management have been credited with reducing operational costs by approximately 10% over the past fiscal year.

In summary, Hatsun Agro Product Limited exhibits a robust operational model defined by strong financial metrics, an expansive product range, and a commitment to quality and sustainability, making it a notable contender in India's dairy industry.

How Hatsun Agro Product Limited Makes Money

Hatsun Agro Product Limited, one of India's leading dairy companies, generates revenue through various segments of the dairy value chain. The company operates primarily in the production and distribution of milk and milk products, including ice creams, curd, paneer, and ghee. For the financial year ending March 2023, Hatsun Agro reported a total revenue of approximately ₹6,065 crore, marking an increase from ₹5,440 crore in the previous year.

The company’s revenue model can be segmented as follows:

• Direct sales of processed dairy products
• Raw milk procurement
• Value-added products like ice cream and cheese
• Export sales

In FY 2023, Hatsun Agro’s EBITDA stood at ₹650 crore, reflecting an EBITDA margin of around 10.7%. The net profit for the same period was recorded at ₹353 crore, with a net profit margin of approximately 5.8%.

The company operates numerous dairy farms and processing units, which serve to streamline the supply chain and reduce costs. In FY 2023, Hatsun Agro reported an average milk procurement cost of approximately ₹30 per litre, which is competitive within the industry.

Hatsun Agro’s marketing strategy emphasizes broad distribution and brand recognition. The company leverages a network of over 1.2 lakh retailers and more than 2,900 direct distributors to ensure product availability across India. This expansive reach has facilitated significant sales growth, with the ice cream segment alone growing by 15% year-on-year.

Further, the company is expanding its export market presence, targeting regions such as the Middle East and Southeast Asia. In FY 2023, export sales accounted for around ₹120 crore of total revenue, with a target to increase this figure by 20% in the upcoming fiscal year.

Hatsun Agro is also investing in technology and supply chain enhancements to improve operational efficiency and product quality. The company's capital expenditure for FY 2023 was around ₹250 crore, which includes investments in advanced processing equipment and increasing cold chain logistics capacity.

In summary, Hatsun Agro Product Limited capitalizes on its integrated dairy operation, robust distribution network, and a strong focus on quality. These elements contribute to its revenue growth and solid profitability metrics within the highly competitive dairy industry in India.