Milk Mantra, the Indian agricultural dairy products startup based in Odisha, India, has reportedly announced plans to acquire a plant in Kolkata to expand its business. The company is also planning to expand develop a new curd plant in its current facility in Odisha with an expected investment of about Rs 70 crore (USD 9.44 million).
Sources cite that the company is in talks with several players for the acquisition of a dairy factory in Kolkata. The overall expenditure for procurement and modernization of the plant with state-of-the-art equipment is projected at around Rs 40 crore.
At present, the firm has a processing capacity of 300, 000 liters a day at two dairy plants in Puri and Sambalpur in Odisha. Under the Milky Moo brand, the firm also sells around 100,000 liters of milk a day in the province. The company also market milk items such as curd and paneer in Jharkhand, West Bengal, and Chhattisgarh.
Milk Mantra will also build a curd manufacturing plant at its current plant in Odisha at a Rs 30 crore expenditure.
In terms of financing, Mishra stated that the firm has raised Rs 250 crore (equity and debt), which involves $10 million or Rs 75 crore, from the United States International Development Finance Corporation (DFC).
Misra also talked about the company’s turnover stating that sales of the firm increased to 260 crores (USD 35 million) from Rs 200 crore (USD 27 million) in the last year. Around 70 percent of its revenue was generated from fresh cow milk, priced at a premium rate of Rs 50 per liter.
With respect to this fiscal forecast, Misra has said that Covid-19 has disrupted the business, but in the second half of this financial year, the same thing will be compensated for. Misra indicated that it did not slash its milk procurement rates to farmers.
Milk Mantra was founded in August 2009 by Tetley's former director, Srikumar Misra. Its network of dairy farmers has risen to more than 60,000.