### **Overview** Hatsun Agro Product Ltd. (HAP) is India’s largest private dairy company and one of the top two ice cream brands in the country. With a legacy of over three decades, HAP has evolved from a regional ice cream business into a diversified, technology-driven dairy major with a nationwide footprint and international presence. The company is known for its strong branding, vertically integrated operations, and industry-leading EBITA margins. --- ### **Core Strengths & Competitive Advantages** #### **1. Market Position & Brand Portfolio** - HAP holds a leading position among private players in **milk, curd, yogurt**, and other **cultured dairy products**. - **Ibaco**, its premium customizable ice cream sundae chain, ranks among the **top two foreign-style ice cream brands** in India. - **Arun Icecreams** is the **leading ice cream brand in South India** with consistent taste quality for over 50 years. - The company operates **four core brands**—Arun, Ibaco, Arokya (India’s largest private milk brand), and Hatsun—that hold **top-three positions** in their respective categories. - Acquisition of **Milky Moo** (Milk Mantra) in August 2025 has expanded HAP’s presence in **Eastern India**, adding an established, ethically sourced brand and enhancing procurement and distribution capabilities in Odisha and surrounding regions. #### **2. Vertically Integrated & Cost-Efficient Distribution Model** - Operates a network of **~4,300 dealer-cum-distributor outlets**, eliminating intermediary layers and reducing distribution costs. - **HAP Daily**, the company’s direct retail arm, operates over **4,000 exclusive stores** (reaching 4,000th outlet in March 2025), contributing **18–20% of consumer sales** with higher margins due to controlled pricing and no receivables. - Dealer-cum-distributors pay upfront, resulting in **receivables of less than half a day’s sales**, a significant advantage in working capital efficiency. #### **3. Cold Chain & Infrastructure Excellence** - Maintains a **100% refrigerated supply chain** for milk and curd, leveraging the same infrastructure to support new **value-added products (VAPs)**. - Invested **₹1,200 crores over the past 7–8 years** in cold storage and frozen logistics, including mega cold storages across Tamil Nadu, Andhra Pradesh, and Telangana. - Uses **Active Bulk Coolers (ABCs)** at over **1,440 locations** to chill milk at the village level within two hours, preserving quality and preventing spoilage. - Owns two major ice cream plants: - **Zaheerabad (Telangana):** 100,000 kg/day capacity (inaugurated Dec 2021). - **Solapur (Maharashtra):** Expanding presence in Western India. #### **4. Technology & Farmer-Centric Ecosystem** - Serves **over 400,000 carefully selected farmers** across South India and Maharashtra. - Proprietary **HAP Information System** with animal **tagging and data tracking** enables real-time monitoring of cattle health, productivity, and milk quality. - Offers **AI-powered Cattle Management System**, artificial insemination with high-quality genetics, and agronomic support for cost-effective fodder cultivation. - Supplies **Santosa-branded cattle feed** (24,000 MT/month from Tamil Nadu + 6,000 MT/month from Sangola), recovering costs against milk supply. - Direct payments to farmers’ bank accounts every **10 days** with a **20-year unbroken record**. --- ### **Product Portfolio & Innovation** #### **Dairy & Value-Added Products** - **Arokya & Hatsun Milk** in four variants: Standard, Full Cream, Toned, Double Toned. - **Hatsun Curd, Paneer, Buttermilk, Lassi, Yogurt Shakes, Shrikhand, Cheese Spread** — marketed for daily consumption and cooking. - **Havia Chocolates & Hanobar** (launched Aug 2025): Premium cocoa-based confectionery in bars, chiplets, and bites with fillings like ganache, nuts, and fruit. - **Imiyo** (launched 2025): Entry into **fruit-based beverages** with variants like Mango, Orange, and Mixed Fruit — targeting school tiffins and on-the-go youth consumption. #### **Ice Cream & Desserts** - Arun Icecreams: Wide range of **bars, cones, tubs, shakes, sandwiches**, and **kulfis** (e.g., Almond, Malai, Rose Gulkand). - Ibaco: Premium sundae customization, **ice cream cakes** (e.g., Rich Chocolate, Mango & Lychee), and **chocolates**. - Expansion into **premium desserts, dairy spreads, and chocolates** planned for 2024–2025. #### **Retail & Digital Initiatives** - **DailyMoo App** (launched Aug 2025): Direct-to-home delivery of fresh dairy products to **3,500+ urban households** in Odisha (Bhubaneswar, Cuttack, Rourkela), with flexible subscriptions and pause/resume features. - HAP Daily I Plus outlets exclusively stock Arun and Hatsun Long Life products, including ice cream cakes and kulfis. --- ### **Recent Expansion & Acquisitions** - **Acquired 100% of Milk Mantra** (owner of **Milky Moo**) for **₹233 crores** in Aug 2025: - Adds **two processing plants in Odisha** (Gop: 100,000 L milk/day; Sambalpur: 50,000 L/day). - Expands into **cow milk belt of Odisha**, with potential to scale into **West Bengal and North Andhra**. - Enhances regional distribution, procurement network, and farmer base. - Strategic investments in **new manufacturing units** in **Odisha and Northern Andhra Pradesh**. - Exploring **liquid nitrogen refrigeration** (since Mar 2021) to replace diesel in transport — part of sustainability and efficiency drive. --- ### **Sustainability & Operational Efficiency** - Uses **long-term solar power purchase agreements** to ensure uninterrupted plant operations at lower costs. - Invests in **automation, extrusion tech, and state-of-the-art machinery** to improve productivity. - Maintains **ISO 22000 certification** for food safety and quality.