By Dairy Dimension News Desk
Reading Time: 4 minutes
As Indian dairy consumption evolves beyond liquid milk, Milky Mist Dairy, based in Erode, Tamil Nadu, is intensifying its focus on value-added dairy products, betting on high-protein offerings and nutritional innovation to drive premium growth. CEO K. Rathnam, in a recent interview, stated that the company is experiencing robust momentum in categories such as probiotic curd, sweetened condensed milk, and protein-rich paneer—areas that resonate with health-conscious consumers following the pandemic.
“Protein products are our fastest-growing segment, and they continue to strengthen our topline. The category is maturing rapidly and aligns with rising nutritional awareness,” Rathnam said.
Riding the Protein Wave
Rathnam highlighted that more than 70% of India’s population fails to meet daily protein requirements, underscoring the enormous headroom for growth in this segment. “Post-COVID, people are far more aware of nutritional value and are willing to pay a premium for quality,” he noted.
Milky Mist’s strategic focus on ultra-high temperature (UHT) treated products also helps extend shelf life and meet pan-India distribution needs without compromising safety.
Financial Performance and Operational Expansion
Despite broader consumption slowdowns, Milky Mist reported 27% year-on-year revenue growth in FY2025, with topline rising from ₹1,437 crore to ₹1,900 crore. However, profit after tax dipped to ₹19.46 crore from ₹28 crore the previous fiscal, according to filings with the Ministry of Corporate Affairs.
The company is now investing ₹620 crore to expand its processing capacity from 12.5 lakh litres to 20 lakh litres per day at its flagship facility. New plants for cheese and paneer are already under development, aligning with its growth strategy, which is rooted in technological investment and single-location quality control.
“By concentrating operations at a single site, we ensure consistent product quality while scaling production. It’s a strategic choice to avoid the low-margin milk segment,” Rathnam explained.
From Paneer Pioneer to Dairy Powerhouse
Founded in 1997 by Sathish Kumar, Milky Mist initially focused on paneer. Over the years, it has expanded into curd, ghee, milkshakes, khoya, and more—without ever venturing into the fluid milk category, which Rathnam calls “operationally complex and margin-thin.”
Even though the production of value-added dairy products is five times costlier than liquid milk, Rathnam emphasised their potential for repeat consumption. “Milk might be a once-a-day drink, but products like curd, cheese, and paneer have multi-meal applications,” he said.
Industry Tailwinds for Value-Added Dairy
A recent Crisil report (June 2025) predicts that value-added dairy products will propel sectoral revenue growth by 11–13% in FY2026, fueled by higher margins and changing consumer preferences.
India’s dairy market, according to the IMARC Group, was valued at ₹18,975 billion in 2024 and is expected to surge to ₹57,000 billion by 2033, driven by innovation and a shift towards premiumization.
Milky Mist competes with giants like Amul Dairy, Heritage Foods, and Nandini. Still, it stands out for its focused value-added strategy and its recent transformation into a public limited company, accompanied by new board appointments.
IPO Prospects and Strategic Positioning
While Rathnam declined to comment on the IPO timeline or size, Milky Mist’s recent conversion to a public entity and the induction of independent directors signal preparatory moves. With a stronghold in high-growth segments and upcoming production capacity, the company appears well-positioned for capital market entry when the time is right.