Milky Mist Dairy Food Ltd. IPO

In continuation to intimation dated August 26, 2026, with respect to the scheduling of a conference call with the analysts/institutional investors, post results for the quarter ended June 30, 2026, Milky Mist Dairy Food has informed that the audio recording of the said conference call has been hosted on the website of the Company and is available at: https://www.milkymist.com/analyst-andinvestor-conferences. 

The above information is a part of company’s filings submitted to BSE.

Milky Mist Dairy Food

• Milky Mist Dairy Food is coming out with a 100% book building; initial public offering (IPO) of 11,67,83,206 shares of face value Rs 2 each in a price band Rs 133-140 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on August 11, 2026 and will close on August 13, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 2 and is priced 66.50 times of its face value on the lower side and 70.00 times on the higher side.
• Book running lead managers to the issue are JM Financial, Axis Capital and IIFL Capital Services.
• Compliance officer for the issue is S Prakash. 

Profile of the company

The company is the fastest growing packaged food company in India. It is exclusively focused on value-added products within the dairy market, which are considered premium. It is a product-led company, dedicated to addressing the diverse and emerging consumer needs for the entire day, from breakfast to dinner. Over the years, it has diversified its product categories to include various value-added dairy products, such as cheese, paneer, butter, curd, ghee, yogurt, ice cream, ultra-high temperature (UHT) long-shelf-life products, and other products, including frozen foods, ready-to-eat (RTE) and ready-to-cook (RTC) products, as well as chocolates. It offers its products under its umbrella brand ‘Milky Mist’, and sub-brand such as ‘SmartChef’, ‘Capella’, and ‘Misty Lite’, and have recently acquired brands such as ‘Briyas’ and ‘Asal’.

The company was one of the first private companies to launch branded packaged paneer in India and subsequently established product categories through introduction of curd, ghee, butter, cheese, yogurt, ice cream, UHT long shelf-life products, chocolates and sweetened condensed milk over the years. It has an integrated farm to retail infrastructure. It sources the majority of raw milk, its primarily raw material, directly from farmers. It sourced raw milk from farmers, located in 25 districts across the states of Tamil Nadu, Andhra Pradesh, Karnataka (all within a 400 kilometres radius from its manufacturing facility at Perundurai, Erode District, Tamil Nadu) and Maharashtra. It fosters long-standing relationships with farmers by eliminating middlemen, providing them with higher realization, and making direct payments every 7 to 10 days, thereby ensuring their loyalty. It also supports the well-being of farmers through various initiatives, including enhancing their knowledge and skills in dairy farming, providing cattle feed, promoting clean milk production programs, offering silage training, supplying fodder seeds, providing veterinary support, vaccinations, facilitating artificial insemination services, and assisting with obtaining loans to purchase cattle.

Proceed is being used for: 

• Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the company
• Financing the capital expenditure requirements in relation to the expansion and modernisation of its Perundurai manufacturing facility
• Deployment of visi coolers, ice cream freezers and chocolate coolers
• General corporate purposes

Industry overview

India is the world’s largest milk producer, with India’s share in overall production increasing from around 21% in CY17 to around 26% in CY25 outpacing its consumption, highlighting its potential as a major player in the global dairy production. The Indian dairy industry is characterized by regional dominance. This is largely due to the high proportion of liquid milk, demand for products with a short shelf life, and the logistical challenges associated with long-distance transportation. The short shelf life of liquid milk, coupled with low margins, makes it economically unviable for players to transport milk over long distances. Furthermore, the intricacies of manufacturing, processing, and maintaining a cold chain add to the complexity of operating on a national scale. Building strong procurement networks and gaining the trust of farmers in new regions also requires significant time and effort. Consequently, most players establish a strong regional presence before venturing into other markets.

The Indian dairy market has demonstrated robust growth, expanding at a CAGR of 9.8% from FY20-26 to reach Rs 12.0 trillion in FY26. This growth has been driven by a 5-6% increase in volumes of milk produced and a 4-5% rise in price realizations of dairy market. Milk, which remains the backbone of the dairy industry, is complemented by various value-added products such as paneer, curd, cheese, butter, ghee, khoa, skimmed milk powder, milkshake, ice cream, yogurt, and whey, which are growing at much faster pace than milk. Looking ahead, the Indian dairy market is projected to grow at a CAGR of 10.3% from FY26-31, to reach Rs 19.6 trillion by FY31, driven by the strong growth of value-added dairy products.

To support farmers, various value-added services such as loans, insurance, and training are provided by both government and private entities. The Indian government has introduced multiple schemes like the Pradhan Mantri Fasal Bima Yojana (PMFBY) for crop insurance and the Kisan Credit Card (KCC) scheme for easy access to credit. These initiatives help farmers manage financial risks and invest in better farming practices. Additionally, training programs on modern dairy farming techniques, animal health, and nutrition are conducted by organizations like the National Dairy Development Board (NDDB). In FY26, the Indian dairy market is growing at a CAGR of 10.3% to reach Rs 19.6 trillion in FY31. Liquid milk contributes around 49% of the overall dairy market by value in FY26, with total market estimated at Rs 5.9 trillion. In FY26, value-added dairy products contributed around 51% to the overall dairy market.

Pros and strengths 

Fastest growing packaged food company in India: The company is the fastest growing packaged food company (among companies with revenue scale of more than Rs 15,000 million) in India in terms of revenue, growing at a CAGR of 31.26% from Fiscal 2024 to Fiscal 2026. It is exclusively focussed on value-added products within the dairy market, which are considered premium. It offers various value-added dairy products such as paneer, cheese, curd, butter, ghee, yogurt, ice cream, UHT long shelf-life products, and other products, including frozen foods, RTE and RTC products, as well as chocolates. Unlike traditional dairy businesses, it focuses exclusively on premium, value-added dairy products rather than liquid milk, which typically has lower profitability. The organized dairy segment in India typically comprises co-operative societies and private entities and the majority of these are presently focused primarily on the sale of liquid milk.

Diversified and expanding product categories focused on emerging consumer needs: Over the years, the company has synergistically diversified its product categories to include a range of value-added dairy products, including paneer, cheese, curd, butter, ghee, yogurt, ice cream, UHT long-shelf life products, as well as other products such as frozen foods, RTE and RTC products, and chocolates which it offers under its umbrella brand ‘Milky Mist’, and sub-brands such as ‘SmartChef’, ‘Capella’, ‘Misty Lite’, ‘Briyas’ and ‘Asal’. This diversification serves as a testament of its product innovation and manufacturing capabilities and has been strategically implemented to leverage its logistics, maximize shelf space in retail outlets through visi-coolers and increase its share in the customer wallet. Its diversified product portfolio comprises 22 product categories with 640 stock keeping units, to address diverse consumer requirements. Its diversified product portfolio enables it to command larger shelf space. Further, it introduced 5 product categories, including UHT long-shelf-life range of products, ice creams, chocolates and sweetened condensed milk, expanding its market presence and catering to the evolving preferences of consumers for the entire day, from breakfast to dinner.

Advanced manufacturing capabilities: The company operates a manufacturing facility located in Perundurai, Erode District, Tamil Nadu. Its manufacturing facility is equipped with advanced machinery such as automated paneer manufacturing line with robotic operations, automatic cheese-making machines with end-of-line automation, automated UHT lines, a spray-drying unit for whey powder manufacturing, and ice cream and set curd manufacturing with automated packing lines, to ensure the consistent quality of its products and operational efficiency. For example, cheese slice packing line enables it to produce up to 1,000 cheese slices per minute, thereby enhancing its production capacity and operational efficiency.

Multi-channel sales with own logistics infrastructure: Over the years, it has expanded its presence through multiple sales channels. Its multiple sales channels include general trade, modern trade, Hotels, Restaurants, and Cafes (HoReCa), online platforms (including its own platform, other e-commerce platforms and quick commerce platforms) and its Milky Mist exclusive parlours. Its presence across multiple sales channels enables it to sell its products across 22 states and 5 union territories in India. Due to its own logistics, it is able to serve customers across several geographies in India and have expanded its operations beyond South India. It has a strong market presence in South India particularly in paneer, curd and cheese. It has also leveraged its strong brand equity to penetrate states beyond South India.

Risks and concerns

Dependence on raw milk supply from Tamil Nadu: The company’s manufacturing operations are dependent on the supply of large amounts of raw milk, which is the primary raw material used in the manufacture of the majority of its products. It procures the majority of its raw milk from the state of Tamil Nadu, which accounted for 94.51%, 97.68% and 99.62% of its total raw milk procurement in Fiscals 2026, 2025 and 2024, respectively. Its inability to procure adequate amounts of good quality raw milk, at competitive prices, or any adverse development in the state of Tamil Nadu affecting the milk supply, may have an adverse effect on its business, results of operations, financial condition and cash flows.

High geographic concentration of sales in South India: The company derives a significant portion of its revenue from the sale of its products in South India (comprising Karnataka, Tamil Nadu, Kerala, Andhra Pradesh and Telangana). Its aggregate revenue from the sale of products in South India accounted for 69.23%, 71.00% and 73.68% of its revenue from operations for the Fiscals 2026, 2025 and 2024, respectively. Any adverse developments affecting its operations in South India, could have an adverse impact on its business, financial condition, results of operations and cash flows.

Risk from dependence on select dairy products: The company derives a significant portion of its revenue from the sale of certain products, namely, paneer, cheese and curd (which contributed 59.05%, 62.63% and 66.16% to its revenue from operations in Fiscals 2026, 2025 and 2024, respectively). Its inability to anticipate and adapt to evolving consumer tastes, preferences and demand for such products, or ensure product quality may adversely impact demand for such products and consequently its business, results of operations, financial condition and cash flows.

Risks related to manufacturing facility: The company operates a manufacturing facility located in Perundurai, Erode District, Tamil Nadu. Any significant social, political or economic disruption, or natural calamities or civil disruptions in Tamil Nadu, or changes in policies of the state or local governments or the government of India or adverse developments in Tamil Nadu, may adversely affect its business, financial conditions, cash flows, and results of operations. Its business is also dependent upon its ability to manage its manufacturing facility, which are subject to various operating risks, including those beyond its control, such as the breakdown and failure of equipment or industrial accidents and severe weather conditions and natural disasters. Any significant malfunction or breakdown of its machinery may entail significant repair and maintenance costs and cause delays in its operations.

Outlook

Milky Mist Dairy Food is engaged in the business of procurement of milk, undertakes processing of milk and manufacture of various value-added products namely paneer, cheese, curd, butter, ghee, fresh cream, milk powder, flavoured milk, lassi, etc. which are marketed under its brand name ‘Milky Mist’. On the concern side, it does not have long term agreements with suppliers for its other raw materials (in addition to raw milk) and its cost of such other raw materials (excluding raw milk) accounted for 17.97%, 18.89% and 16.30% of its revenue from operations in Fiscal 2026, 2025 and 2024, respectively. An increase in the cost of or a shortfall in the availability of such raw materials could have an adverse effect on its business, results of operations and financial condition.

The issue has been offering 11,67,83,206 shares in a price band of Rs 133-140 per equity share. The aggregate size of the offer is around Rs 1,553.22 crore to Rs 1634.96 crore based on lower and upper price band respectively. Minimum application is to be made for 107 shares and in multiples thereon, thereafter. On performance front, total income has increased by 33.56% from Rs 23,547.93 million in Fiscal 2025 to Rs 31,450.09 million in Fiscal 2026. Its profit for the year was Rs 1,270.09 million in Fiscal 2026 as compared to profit for the year of Rs 460.74 million in Fiscal 2025.

Meanwhile, it intends to continue gaining market share and strengthening its position in the Southern region of India comprising Tamil Nadu, Karnataka, Kerala, Andhra Pradesh and Telangana. it also intends to establish a stronger presence in other regions to increase its sales volumes and revenues. It intends to strengthen its position in these regions through e-commerce, quick commerce and modern trade channels. It also intends to strengthen its position in these regions by onboarding new distributors and increasing advertisement, which will help it increases retail penetration and enhance its brand equity. Further, it intends to invest in logistics infrastructure which it will help it expands its geographical outreach.