Hatsun Agro expects boost from GST reforms, projects 20% growth

Hatsun Agro Product Limited anticipates a substantial boost in demand and rural spending due to recent GST reforms, according to chairman R G Chandramogan in a September 4, 2025 interview. The company expects consumers to benefit from reduced prices and farmers to see increased income. Specifically, the GST on ice cream has been lowered from 18% to 5%. Paneer will also see price adjustments, though it will still be more affordable for consumers without direct tax.

Mr. Chandramogan highlighted that Hatsun plans to pass on approximately half of the tax exemption benefit to farmers and half to consumers, stimulating demand and increasing rural spending capacity. He projected an 8-9% reduction in prices for some products and anticipates 20% growth for the company next year. This growth is expected to come from existing markets and new territories like Maharashtra and Telangana, where heavy capital expenditure has built market presence.

The chairman emphasized that while milk and curd may not directly benefit from new tax exemptions, the overall economic impact and increased affordability will boost consumption across all dairy products. The company also believes strong brands are key to success in the value-added segment, with its four brands being market leaders, which will help capitalize on the increased demand. This tax reform is viewed as a "revolution" that will benefit the economy.