Hatsun Agro targets high-protein products, distribution expansion

Hatsun Agro Product Limited (HAP) is set to expand its product portfolio by venturing into the high-protein product category within the next three to six months, with initial launches expected within three months. This move aligns with a broader market trend towards value-added dairy products, as highlighted by chairman R G Chandramogan. The company plans to leverage its existing refrigerated chain, a key competitive advantage, to support the distribution of these new offerings.

HAP boasts a strong distribution network, including approximately 4,300 retail outlets, which it aims to increase to 5,000 within the next two years. These outlets contribute significantly to cost efficiency and sales, with 18-20% of consumer purchases made through HAP's own stores. The company's key brands, Arun Ice Cream and Ibaco, currently operate across 15 states and will see further expansion. Arun Ice Cream targets an increase to 1,200 outlets, while Ibaco is projected to grow from 226 to 280-300 outlets in the next two years.

Chandramogan emphasized that branded products sold directly to consumers, eliminating middlemen, constitute 98% of HAP's value-added business. The company plans to capitalize on its infrastructure investments, totaling approximately INR 1,200 crores over the past 7-8 years, to achieve a growth rate that outpaces the overall market's projected 8-10% increase. HAP expects double-digit growth in the Paneer segment, driven by increasing consumption in the Southern states and growth in the Horeca sector.