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Hatsun Agro Product Ltd is one of the largest private dairy located in the
south of India. We have been awarded with ISO and HACCP certification for the
quality standards incorporated in the production line. We Manufacture
Skimmed Milk Powder, Full Cream Milk Powder or Whole Milk Powder, Butter
Oil, Ghee, Dairy Whitener & Butter which is at par with international standards
in Quality and we also assure you consistency in supply and an excellent
service from our side. Please get in touch with us for your needs.
Business Description
Hatsun Agro Products Limited. The Company's principal activities are to manufacture
and sell Milk and Milk Products and Ice Creams. The Company operates in two
segments, namely, Milk and Milk products and Ice cream and Others. The company
mainly operates in Tamil Nadu, Karnataka and West Bengal states. The plants are located
at Salem and Chennai in the state of Tamil Nadu and at Belgaum and Davangere in the
state of Karnataka.
This Report features up to a ten-year record of the equity Price history for Hatsun Agro
Products Limited. Tabular results include the High, Low and Closing price for the
quarter. There is also a calculation of percentage change in price for both Quarterly and
Annual periods. Price values are adjusted for stock splits and dividends.
Hatsun Agro Products Limited. The Company's principal activities are to manufacture
and sell Milk and Milk Products and Ice Creams. The Company operates in two
segments, namely, Milk and Milk products and Ice cream and Others. The company
mainly operates in Tamil Nadu, Karnataka and West Bengal states. The plants are located
at Salem and Chennai in the state of Tamil Nadu and at Belgaum and Davangere in the
state of Karnataka.
This detailed Report provides an Earnings and Dividends history for Hatsun Agro
Products Limited. Tabular results include up to a ten-year history of "as reported"
Earnings per Share and Dividends per Share plus a calculation of the amount of earnings
paid out over the year in dividends (i.e. Payout Ratio). Earnings and Dividends are
presented on both a Quarterly and Annual basis. An annual Percent Change factor is
calculated for both Earnings and Dividends.
Hatsun Agro Products Limited. The Company's principal activities are to manufacture
and sell Milk and Milk Products and Ice Creams. The Company operates in two
segments, namely, Milk and Milk products and Ice cream and Others. The company
mainly operates in Tamil Nadu, Karnataka and West Bengal states. The plants are located
at Salem and Chennai in the state of Tamil Nadu and at Belgaum and Davangere in the
state of Karnataka.
Hatsun Agro sets new trend for pvt dairies — Introduces fortnightly,
monthly milk cards
R. Balaji
CHENNAI, May 16
HATSUN Agro Product Ltd, the Rs 300-crore private dairy, is looking to monthly milk
card sales to widen its market share. This is a new initiative for a private milk brand, and
it is expected to help Hatsun achieve significant growth in turnover for the current year,
according to Hatsun's Managing Director, Mr R.G. Chandramogan.
Hatsun has commenced promotional efforts to push milk sales through a monthly card
system for its Arokya brand in Chennai. As a part of a trial offer for its consumers, it is
selling 15-day coupons at a discount of about 20 per cent. Each coupon entitles the holder
to half a litre of Arokya milk per day for 15 days, door delivered. As a part of the initial
offer, this will be followed up with a monthly card at a discount.
This is expected to pave the way for the regular monthly card. Arokya milk will be
available Re 1 per litre cheaper to the cardholders. It sells at Rs 16 per litre in the retail
now. Consumers will get half litre at Rs 7.50, and the discount will be absorbed between
the manufacturers and the dealers, he said.
According to Mr Chandramogan, a monthly card sale is the trend that private dairies will
have to move to. Milk sales have over the last few years clearly shifted away from
commodity-based business to branded product sales. Establishing a brand, which Hatsun
has effectively done, and cornering a major share of the market, which it is doing now,
are the two imperatives, he said.
Card sales help the seller and the buyer. To the consumer, it offers the convenience of
door delivery and getting over with the monthly milk expense at the start of the month-a
welcome convenience for the middle class, which works on a tight monthly budget. To
the company, it offers an opportunity to rope in a bulk market, he said.
Through this initiative, Hatsun hopes to emerge the clear market leader among the private
dairy brands in Tamil Nadu. It is targeting about 2.5 lakh monthly card sales (half litre per
card per day) over the next four months, most of it being new buyers. This will mean an
additional 1.25-lakh litre milk sales under the Arokya brand. Concerted marketing effort
backed by an ad spend of Rs 12 crore for Arokya, with Rs 8 crore marked for Tamil Nadu
alone, and the brand's reputation for quality will help sustain this effort. Hatsun's annual
budget for ads is about Rs 20 crore. This is expected to contribute to achieving Hatsun's
target of Rs 450-crore turnover during the current year, he said.
Hatsun procures and markets over 6.25 lakh litres milk per day out of which over 1.55
lakh litres is sold in Chennai. It expects to be selling 2.5 lakh to 3 lakh litres by March
2004, he said.
Hatsun Agro has three main product lines, which include Arokya and Komatha brands of
liquid milk, and Arun, the super premium ice creams, which contributes about 11 per cent
of its turnover. With dairy units located at Kanchipuram, Salem and Madurai, the
company has a spread sufficient to cover the State. It also has a dairy in Belgaum,
Karnataka, which has helped it to cover north Karnataka and Goa, where it procures and
markets about 1.40-lakh litres milk. The company is looking at setting up a unit in
Tirunelveli, which will give it an improved access to markets in the South and Kerala, he
said.
HATSUN Agro Product Ltd is setting up a Rs 6 crore milk powder unit in Kanchipuram,
about 75 km west of Chennai on the Bangalore route, according to Mr R.G.
Chandramogan, Chairman and Managing Director, Hatsun Agro Product Ltd.
The milk powder unit is expected to commence operations in about two months, and will
have the capacity to process about one-lakh litres of milk per day to produce about 10
tonnes of powder. This represents a significant advantage to the company and the dairy
farmers supplying milk to Hatsun, he said.
The company procures and markets about 6.25 lakh litres milk per day. But during the
flush season, there is an additional 15 per cent coming in, which the company has to push
hard to sell. But with a powder plant, the pressure can be handled and farmers have an
assured market, he said.
Milk powder is an input that dairies use to process liquid milk to marketable standards of
quality in terms of fat content. Hatsun will now have a captive source of milk powder that
will help it to absorb milk during the flush season and make up to liquid milk during the
lean season, he said.
Hatsun Agro Products
Company History
(Rs. in lacs)
31.03.95 31.03.94 31.03.93
Sale of Ice Cream 552.60 369.58 248.05
Other Income 6.38 4.71 20.36
Total Expenditure 520.63 329.78 257.18
Net Profit 38.35 44.51 11.23
(iii) Agreement for sourcing Ice Cream and other Milk and
Dairy based products.
A. Brand Name:
2000 - The company is set to acquire an 81-per cent stake in the Rs.
40-crore
Ajith Dairy Industries Ltd.