Whether it is in Matar Paneer, Shahi Paneer or Palak Paneer, India sure has a favourite source of protein in cottage cheese (paneer), worth Rs 648.05 billion in 2024, to be precise.
While brands like Amul and Mother Dairy hold the top spot as dairy companies selling value-added dairy products, such as paneer, in India, there is a relatively new player in the market that is becoming increasingly popular: Milky Mist Dairy Food Private Limited.
T. Sathish Kumar (left), Milky Mist Parlours (right)
Established as just a milk trading company in 1985, Milky Mist is based in Chithode, Tamil Nadu. 16-year-old T. Sathish Kumar dropped out of school to help his father’s ailing milk business and laid the foundation of what would later become Milky Mist Dairy Food Private Limited in 1997.
Realising the minuscule profit margin (4-5%) involved in selling a highly perishable commodity like milk, Milky Mist established itself in the growing paneer market in 1994 by setting up a fully automatic paneer processing plant with custom-built technology from Germany. The brand is known to source international tech in its Indian plants.
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The Indian paneer market is expected to grow more. According to the IMARC Group forecast, its value will skyrocket from Rs 648.05 billion in 2024 to Rs 2,030.73 billion by 2033 with a CAGR of 12.85%.
While paneer is undoubtedly Milky Mist’s flagship product with Fresh Paneer (200 grams for Rs 80), High Protein Paneer (200 grams for Rs. 150), Frozen Paneer Cubes (200 grams for Rs 113), Malai Paneer Cubes (200 grams for Rs 106) and Briyas Tofu Paneer (200 grams for Rs 90), the dairy company has diversified its portfolio with more value-added dairy products.
Over the years, the dairy has added curd, cheese, whey (dairy permeate powder), skimmed milk powder, Ultra-High Temperature (UHT) milkshake, UHT cream, dairy whitener, cream cheese, UHT buttermilk, gulab jamun & rasagulla tins, and fat spread to its portfolio. More recently, in 2023, it also added ice-creams and chocolates, the latter under the sub-brand called Capella.
Capella’s 40g bars include 55% Dark Chocolate - Classic (Rs 45), Milk Chocolate Hazelnut (Rs 55), and Dark Chocolate 55% Hazelnut (Rs 55). Moving to 80g bars, the 70% Dark Chocolate - Classic and Fruit & Nut variants are typically priced around Rs 110, while an 80g Milk Chocolate Classic bar costs Rs 90.
In the 125g range, Capella Milk Chocolate - Fruit & Nut is around Rs 150, 55% Dark Chocolate - Fruit & Nut is about Rs 160, and specialised Single Origin Dark Chocolates (from Venezuela, Peru, Cameroon) are notably higher, priced around Rs 250.
Milky Mist directly owns a large fleet of refrigerated trucks (reefers) to transport its products, to maintain its cold chain right from its automated plant all the way to the distribution points.
Owning the entire supply chain allows the dairy brand to monitor product temperature and delivery times, ensuring product quality and freshness across the country. Milky Mist also runs 50+ exclusive brand stores in India.
Reports from sources like CRISIL Ratings, a leading credit rating agency, indicate the company's revenue increased by 33% year-on-year, reaching Rs 1,904.45 crore in FY24, up from Rs 1,435.62 crore in the previous fiscal year.
Building on this growth, Milky Mist is now preparing for an Initial Public Offering (IPO) at the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange), targeting a valuation of around Rs 20,000 crore, by the end of 2025.
Amul, founded in 1946 (79 years old), and Mother Dairy, founded in 1974 (51 years old), are significantly older and larger than Milky Mist (28 years old).
For FY24, Amul projected a turnover of Rs 90,000 crore, while Mother Dairy achieved Rs 17,500 crore, in comparison to Milky Mist's Rs 1,900 crore. However, Milky Mist is a strong regional player primarily in South India, trying to debut in North India, while Amul and Mother Dairy have a dominant national presence.
For comparison, one-litre packages of Milky Mist UHT Toned Milk, Amul Taaza Homogenised Toned Milk and Mother Dairy Toned Milk cost Rs 80, Rs 74 and Rs 70, respectively. Milky Mist has positioned itself as a slightly more expensive competitor in the price-sensitive Indian dairy market.
Milky Mist has a household presence in South India with Tamil Nadu, Kerala, Andhra Pradesh, Telangana, Karnataka and Goa, amounting to 65% of its total revenue.
North Indian regions such as Delhi, Maharashtra, Gujarat, Rajasthan, and even Kashmir. have recently started spotting Milky Mist products lining the shelves of their supermarkets, both offline and on quick commerce apps. That’s because the dairy brand is increasing visibility and distribution across the rest of the country now.
It remains to be seen whether Milky Mist’s “daily dose of nutrition - all day, every day” is accepted by the rest of India just as much as it has accepted the utterly butterly delicious flavours of Amul or the "Maa jaisi" Mother Dairy.
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