From The Economic Times · Reuters · · 50s
Hatsun Agro Targets 50% Revenue Growth
Hatsun Agro aims for 50% revenue growth in two years through expanded milk procurement and southern India expansion.
In brief
Hatsun Agro aims for 50% revenue growth in two years through expanded milk procurement and southern India expansion. Hatsun Agro expects revenue to rise 50% over two years by increasing milk procurement and market reach. Originally reported by The Economic Times.
Revenue Growth Target
Hatsun Agro expects revenue to rise up to 50% over the next two financial years.
“India's Hatsun Agro Product expects revenue to rise as much as 50% over the next two financial years, supported by a wider milk procurement network and expansion beyond its southern Indian stronghold”
Financial Projections
Revenue will reach 120 billion rupees this year, up from 100 billion rupees last year, and between 140 billion and 150 billion rupees next year.
“The maker of Arokya milk and Arun icecreams expects revenue to reach about 120 billion rupees this financial year, up from 100 billion rupees last year, and rise to between 140 billion rupees and 150 billion rupees in the following year”
Milk Procurement Expansion
Hatsun plans to increase daily milk procurement from 4.3 million to 5 million litres next year through existing facilities and collection networks.
“Rather than build new plants, Hatsun is expanding existing facilities and its 13,000-strong collection network, targeting daily milk procurement of 5 million litres next year, up from roughly 4.3 million litres currently.”
Investment Strategy
The company will invest 10 billion rupees this fiscal year, with one-third allocated to milk procurement expansion and the rest to manufacturing and distribution.
“The company plans to invest 10 billion rupees this fiscal year and has already spent 3 billion-4 billion rupees. About one-third of the investment will be directed towards expanding milk procurement, with the remainder split between manufacturing capacity and marketing and distribution.”
What matters most
Hatsun Agro expects revenue to rise 50% over two years by increasing milk procurement and market reach.
