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Chandigarh: Milky Mist Dairy Food Limited (Milky Mist), one of India’s fastest-growing packaged food and premium dairy product companies, has taken a significant step towards its public market debut. The company has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) worth up to ₹2,035 crore.
The IPO structure includes:
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Fresh issue of shares aggregating up to ₹1,785 crore.
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Offer for sale (OFS) of up to ₹250 crore by the promoter shareholders, Sathishkumar T and Anitha S.
The proposed IPO aims to strengthen the company’s capital base, fund strategic expansions, modernize facilities, and reduce existing debt, thereby bolstering its leadership position in India’s dairy FMCG segment.
Milky Mist: Pioneering Premium Value-Added Dairy Products
Founded in Erode, Tamil Nadu, Milky Mist has established itself as a major player in the dairy FMCG sector. Unlike traditional dairy firms that rely heavily on liquid milk sales, Milky Mist has carved out a niche in premium value-added dairy products (VADPs). The company’s product portfolio spans:
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Paneer
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Cheese
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Yogurt
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Curd
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Ice cream
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Butter
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Ghee
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Packaged foods
This focus on VADPs allows the company to maintain higher margins and premium pricing, with products like paneer and curd priced 10–25% higher than leading brands. This premium positioning aligns Milky Mist closely with fast-moving consumer goods (FMCG) companies rather than traditional dairy cooperatives.
Fully Automated, Tech-Driven Operations
Milky Mist is known for its cutting-edge manufacturing and logistics infrastructure. Its fully automated, tech-enabled production facilities ensure consistent quality, operational efficiency, and real-time traceability. The company operates a vertically integrated supply chain, supported by its in-house logistics network, which allows for complete control over end-to-end distribution.
One of Milky Mist’s major strengths is its direct engagement with over 67,000 farmers, ensuring a reliable supply of high-quality milk while fostering rural economic growth.
Use of Net Proceeds from IPO
The fresh issue of ₹1,785 crore will be allocated as follows:
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₹750 crore for repayment or prepayment of certain outstanding borrowings.
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₹414 crore for expansion and modernisation of the Perundurai Manufacturing Facility, including the installation of whey protein concentrate, yogurt, and cream cheese plants.
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₹129 crore for the deployment of visi coolers, ice cream freezers, and chocolate coolers to strengthen cold chain infrastructure.
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The remaining funds will go towards general corporate purposes, capped at 25% of gross proceeds as per SEBI regulations.
Strong Financial Performance
Milky Mist’s financial growth underscores its robust business model and increasing market share:
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Revenue from operations surged from ₹1,394 crore in FY23 to ₹2,349 crore in FY25, delivering a CAGR of nearly 30%.
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EBITDA stood at ₹310 crore in FY25, with a healthy EBITDA margin of 13.2%.
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New product launches contributed ₹511 crore to revenue in FY25 alone.
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Approximately 75.4% of FY25 revenue came from daily consumption products like paneer, curd, yogurt, ghee, and butter.
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The company boasts one of India’s largest paneer production capacities, with a capacity of 150 metric tons per day.
ESG Initiatives and Health-Centric Innovation
Milky Mist places a strong emphasis on sustainability and environmental, social, and governance (ESG) practices. The company has implemented:
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Water reprocessing plants for conservation.
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Methane-to-energy conversion to reduce waste.
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Solar and wind energy generation, currently meeting 70–80% of its power needs.
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Eco-friendly logistics systems to minimize carbon footprint.
On the product front, Milky Mist is also catering to health-conscious consumers by developing high-protein, lactose-free, and low-sugar products. This innovation-driven approach positions the company strongly in a market where demand for functional and health-oriented foods is growing rapidly.
IPO Book Running Lead Managers
JM Financial Limited, Axis Capital Limited, and IIFL Capital Services Limited have been appointed as the Book Running Lead Managers (BRLMs) for the IPO. These seasoned investment bankers will guide Milky Mist through the listing process and ensure strong investor participation.
Strategic Outlook
The IPO is a key milestone for Milky Mist, enabling the company to:
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Scale up manufacturing capabilities and meet rising demand for premium dairy products.
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Invest in product innovation and cold chain infrastructure.
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Reduce debt, improving financial flexibility.
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Expand its distribution footprint, tapping into the growing urban and semi-urban markets.
With its strong brand recall, premium pricing strategy, and emphasis on sustainability, Milky Mist is well-positioned to capture a larger share of India’s dairy FMCG sector, which is witnessing accelerated growth due to evolving consumer preferences.
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