Can you share with us the journey that led to the establishment of Milky Mist Dairy? What inspired you to start this venture and why Paneer?
With an eye for detail and an uncanny knack for spotting emerging opportunities, he realized that the future lay not in milk procurement and distribution, but in quality, hygienic, and safe-to-consume Value Added Dairy Products (VADPs). Recognizing the palpable demand for such products, he established the brand in 1997 with humble beginnings. He traveled extensively both within the country and abroad, interacting with various intermediaries, including machinery manufacturers and suppliers. Armed with the experience and knowledge gained from his quest to identify the right technology and strategy, he gradually and steadily expanded the business.
Initially, the plant was set up on a small piece of land in Chithode, Erode District. In the 2019-20 fiscal year, Milky Mist moved its manufacturing facility to a sprawling, state-of-the-art Mega Plant spread over 55 acres in a picturesque setting. The new plant boasts a processing capacity of 1.2 million liters per day (MLPD), expandable to 1.5 MLPD. It is equipped with the latest technology to manufacture a variety of fermented products, including curd, yogurt, mozzarella cheese, ghee, butter, cheddar cheese, cream cheese, shrikhand, and lassi, as well as lifestyle products such as milkshakes and ice cream. Additionally, the plant features a state-of-the-art spray dryer for converting liquid whey into value-added products.
Present status
The company procures an average of 0.8 million liters of milk per day directly from approximately 75,000 farmers across 12 districts in Tamil Nadu. Milky Mist produces 30 different Value-Added Dairy Products (VADPs) with over 350 SKUs and owns and operates the largest fleet of refrigerated vehicles for last-mile delivery, ensuring its products are transported under controlled temperature conditions.
Why Paneer?
Regarding paneer, Mr. Sathishkumar has had an emotional attachment to the product since he began the business. His intrigue and fascination with paneer led him to believe it would be a game-changer for the company in terms of sales and visibility. True to his intuition and persistent efforts to enhance the quality and texture of the product, paneer has become a flagship item for Milky Mist. Additionally, he worked diligently to challenge the perception of paneer as a predominantly North Indian product by educating consumers about its nutritional value and affordability. Today, Milky Mist Paneer is a popular choice not only in North India but across the entire country.
What sets Milky Mist Dairy apart from other dairy companies in the market?
The Indian dairy market is vast, with the dairy sector ranking just behind agriculture in terms of contribution to GDP. Naturally, many companies and cooperatives are competing for their share. Milky Mist’s success can be largely attributed to its commitment to providing fresh, hygienic value-added dairy products that are relatively affordable. Additionally, we regularly adjust our product portfolio based on customer feedback and closely monitor customer priorities and requirements to ensure their needs are met.
Can you discuss any challenges you faced during the initial stages of building Milky Mist Dairy and how you overcame them?
In those days, before the advent of search engines, understanding various aspects of products and the market relied solely on intuition and confidence. Identifying the final composition of products and sourcing the necessary technical know-how and machinery was challenging. However, the passion and determination to succeed compensated for the lack of reliable information. Frequent interactions with leading machinery manufacturers and suppliers, both domestic and international, were instrumental in helping us identify the required equipment and packaging solutions over time.
How would you describe your leadership style?
I still prefer a hands-on approach to running the business. At the same time, we have a well-equipped team of senior executives, including Dr. K. Rathnam, CEO and a dairy industry veteran, supported by engineers, technicians, and other staff. We also have a range of departments that manage the day-to-day operations of the plant, including marketing and sales of our products.
What core values and principles guide Milky Mist Dairy’s operations and decision-making processes? (What fundamental principles do you believe are essential for effective leadership in the dairy industry?)
Swift response to consumer requirements and the manufacturing of various Value-Added Dairy Products (VADPs), aligned with available resources and market feedback, are the core values guiding Milky Mist’s operations and decision-making. In my view, the essential prerequisites for effective leadership in the dairy sector are:
1. Proactive market analysis
2. Ongoing efforts to ensure and improve the availability of raw milk
3. Minimal turnaround time for introducing new products
4. Strict vigilance on quality issues
5. Customer satisfaction
6. Close monitoring of the company’s financial health
What do you see as the biggest opportunities and challenges facing the Indian dairy industry today?
India ranks #1 in the world for milk production, but its performance in terms of average yield per milch animal is less satisfactory. To address this issue, we need to develop a concrete long-term strategy. Additionally, there has been a noticeable decline in the availability of fodder for milch animals, which also requires urgent attention.
There are significant opportunities in the market as companies expand their product portfolios or introduce new ranges to meet growing consumer demands. Consumers are no longer satisfied with just vanilla milk; they are increasingly interested in experimenting with new, protein-rich value-added products. This trend, which emerged post-COVID-19, has gained momentum as improved financial health allows consumers to explore a wider variety of dairy products.
How does Milky Mist Dairy stay innovative and adaptable in a constantly evolving dairy industry? What do you envision for the future of Milky Mist Dairy in the short and long term?
The Indian dairy sector is robust, growing at a healthy rate of over 8% year-on-year. While issues like Lumpy Skin Disease (LSD) recently threatened milk production, the situation has been brought under control thanks to the efforts of our medical professionals. Nevertheless, we must remain vigilant against such livestock diseases. Overall, the future outlook for the dairy sector is bright, with support from the Government of India, which is committed to improving milk output and enhancing the lives of our farmers. Manufacturers must continuously innovate to stay ahead in this evolving ecosystem.
At Milky Mist, we are confident in our goal of becoming a USD 1 billion company by 2027-28. We have made significant progress in previously untapped markets and are on track to becoming a truly pan-Indian brand. With our growth projections and unwavering focus on product quality and innovation, we anticipate a bright future for our company and its products.
Lastly, what advice would you offer to aspiring entrepreneurs looking to enter the dairy industry based on your own experiences and learnings?
India’s dairy sector offers significant opportunities for growth, with per capita milk consumption expected to increase to 500 grams per day in the near future. This growth presents a chance for companies that align with emerging market trends and consumer demands. However, there are psychological and financial entry barriers to consider.
For budding entrepreneurs looking to make their mark in the dairy sector, focusing on two key aspects—quality and affordability—is essential. High-quality products at reasonable prices are always preferred by Indian consumers, as exemplified by Milky Mist. Additionally, a passion for innovation in both product development and packaging is crucial. We started from scratch, gradually building our product portfolio while maintaining a strong emphasis on quality and freshness. Finally, success in this sector requires ongoing attention to manufacturing, marketing, and sales to remain relevant in the evolving dairy ecosystem.
