Hatsun Agro, a major dairy company based in Chennai has announced that is planning to expand in Maharashtra. To enable this expansion, it is looking at buying a farm or a Greenfield project – a new area of investment or undeveloped land – in the state.
Delving Into Maharashtra
Hatsun Agro began in 1986 in Chennai and has several brands under its banner including Arun Ice Creams, Hatsun Daily, Arokya Milk and Ibaco. It has a large presence in Tamil Nadu, Karnataka, Andhra Pradesh and Telangana.
It has had a small presence in some areas in Maharashtra but is now looking at stepping up its reach. It will start by selling its milk under the Arokya brand as well as selling Arun ice creams.
“We are looking for a greenfield project, a farm, in Maharashtra. If somebody is available for a takeover there, we may look at it. When we buy a company, we prefer buying a company of a smaller size where restructuring can be done according to our requirements so we can modify the procurement system, the distribution model and advertising,” said R.G. Chandramogan, Hatsun’s chairman and managing director to LiveMint.
Hatsun Agro also recently announced that it would be setting up greenfield projects in Coimbatore, Ongole and a dairy ingredients unit at Palakode. It will be investing Rs.240 crore in setting up the projects and Rs.160 crore to expand its facilities in the South.