Milky Mist Dairy Foods, a dairy-based in Tamil Nadu, has chalked out Rs 1,000 crore expansion plan in the next three years to double the plant’s capacity and foray into new products like dark chocolate and ice cream.
The company, which had already invested Rs 550 crore in its existing plant, will fund the expansion through a combination of debt and equity.
The company intends to raise private equity investment by March 2021, and thereafter kickstart work to come out with an IPO in the next 20 months.
In November 2021, the company had signed a memorandum of understanding (MoU) with the Tamil Nadu government at the Investors Conference held in Coimbatore for an investment of Rs 600 crore. The company has decided to add another Rs 400 crore to that.
Milky Mist is constructing a new plant adjacent to the existing facility at Perundurai to double the capacity.
Every day the plant procures seven lakh ltr of milk from nearly 70,000 farmers from the state’s eight districts, including Erode, Salem, Tiruppur and Jolarpettai. The entire milk is converted into 25 different products, including paneer, curd, desserts, flavoured yoghurt, payasam and cheese.
The expansion will help it to more than double the intake of milk to around 15 lakh lpd, and make various products. It is foraying into dark chocolates under the brand name Capella and will also foray into ice creams.
The company has developed the dairy plant where over 150 SKUs of Milky Mist products are processed across 25 categories.