- Milky Mist has acquired 50 acres of land from the Maharashtra Industrial Development Corporation (MIDC) in Baramati for a new manufacturing facility, although no government approvals have been secured yet.
- The company plans to use about ₹500 crore of IPO proceeds to repay debt, in addition to ₹300 crore already repaid via pre-IPO placement.
- CEO Dr. K Rathnam stated that expansion funding will come from internal accruals rather than fresh borrowings.
- The company aims to expand its consumer base from 1 crore to 5-10 crores, focusing on Tier 1, 2 and 3 cities.
- The company's net debt stood at ₹1,671.85 crore in the latest fiscal year.
- Rathnam mentioned that the remaining IPO proceeds will be allocated for capital expenses, market-building activities, and internal expenses.
- Citing transportation costs and proximity to consumers, Rathnam projected ₹1,500 crores revenue from the Western market by 2030.
Milky Mist is set to leverage its ₹1,553-crore IPO to fuel expansion into West and North India, focusing on Tier 1, 2, and 3 cities. CEO Dr. K Rathnam emphasized that the company will rely on internal accruals for funding rather than incurring new debt.3
The company, known for its packaged foods, plans to establish a new manufacturing facility in Maharashtra, having acquired 50 acres of land in Baramati from the Maharashtra Industrial Development Corporation (MIDC). However, government approvals are still pending, and project timelines are being finalized.1
Milky Mist has seen a 30% growth in its topline and intends to allocate approximately ₹500 crore from the IPO proceeds to repay existing debt, in addition to ₹300 crore already settled through pre-IPO placements. The company’s net debt was reported at ₹1,671.85 crore in the latest fiscal year.25
Rathnam highlighted the importance of transportation costs and consumer proximity in their investment strategy, noting that the Western market is rapidly evolving. He projected that by 2030, the company’s visibility could reach ₹1,500 crores in revenue from that area.7
Chairman Sathishkumar T stated that the focus will be on middle and upper-middle-class consumers in urban areas rather than rural markets. Rathnam also expressed ambitions to expand their consumer base from 1 crore to between 5 to 10 crores in the future.
“The company plans to use about ₹500 crore of IPO proceeds to repay debt, on top of ₹300 crore already repaid via a pre-IPO placement, with net debt at ₹1,671.85 crore. It has acquired 50 acres in Baramati for a Maharashtra plant, though approvals are pending.”
