Hatsun Agro Product Limited has released the complete transcript of Chairman R G Chandramogan's interview with CNBC TV, conducted on March 16, 2026. The company has made this documentation available in compliance with SEBI regulatory requirements and to provide stakeholders with detailed insights into the company's current performance and outlook.

Regulatory Compliance and Documentation

The dairy products manufacturer has fulfilled its commitment to provide a complete transcript by March 20, 2026, as initially promised. This disclosure follows Regulation 30 – Schedule III, Part A, Para A, item 15(b)(iii) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transcript is hosted on the company's website at https://www.hap.in/investor-meetings-and-quarterly-calls.php as per regulatory requirements.

Business Performance and Revenue Outlook

During the interview, Chairman Chandramogan revealed that the company is operating at a run rate close to ₹10,000.00 crores, indicating strong business momentum. The 9-month revenue, including acquisitions, grew by approximately 14.00%, demonstrating mid-teens growth performance. The Chairman expressed cautious optimism about achieving the revenue target, stating they may hit the mark with a variance of plus or minus 1.00%.

Cost Pressures and Operational Challenges

The company faces significant cost pressures with milk procurement prices increasing by approximately 8.00%, while the company has implemented price increases of around 6.00% to offset these costs. Additionally, packaging material costs have surged by 30.00% to 40.00% due to supply chain disruptions, creating operational challenges for the business.

Geographic Expansion and Market Position

The Chairman highlighted the company's geographic diversification strategy, with sales outside Tamil Nadu currently representing 45.00% of total revenue. The company targets increasing this proportion to 50.00% within the next two years. Hatsun Agro operates four market-leading brands: Arun ice cream, Arokya milk, Ibaco, and Hatsun, maintaining superior margins compared to listed peers through its unique distribution model of approximately 4,500 outlets across the country.

Financial Structure and Distribution Strategy

The company has significantly improved its financial position, reducing the debt-equity ratio to less than 1:1 from previous levels of 1:2 or 1:3. The Chairman emphasized their focus on consumer business rather than the Horeca segment, maintaining zero receivables through their direct distribution network. This strategy has enabled margins that are 1.50 to 2.00 times higher than listed peers, though it requires substantial infrastructure investment.

Hatsun Agro Product Limited has received regulatory approval for its strategic consolidation move, with the Hon'ble National Company Law Tribunal (NCLT), Cuttack Bench sanctioning the amalgamation scheme with its wholly-owned subsidiary Milk Mantra Dairy Private Limited.

NCLT Order Details

The tribunal issued its order on March 10, 2026, approving the Scheme of Amalgamation with retrospective effect from April 1, 2025. The decision consolidates the group structure by merging Milk Mantra Dairy Private Limited (transferor company) into Hatsun Agro Product Limited (transferee company).

Strategic Rationale

The amalgamation serves multiple strategic objectives for the dairy and food products company. The primary purposes include consolidating the group structure, achieving synergies in business activities, and increasing the combined entity's financial strength and flexibility. Since Hatsun Agro Product Limited holds the entire share capital of Milk Mantra Dairy Private Limited through its nominees, the transaction represents a straightforward subsidiary absorption.

Regulatory Compliance Process

The tribunal dispensed with several procedural requirements due to the nature of the transaction. All equity shareholders and preference shareholders of the transferor company provided written consent through affidavits, eliminating the need for formal meetings. Similarly, over 90% of unsecured creditors in value terms consented to the scheme, while the company had no secured creditors.

Implementation Timeline

The scheme will become effective upon filing certified copies of the NCLT order with the Registrar of Companies by both the transferor and transferee companies. Hatsun Agro Product Limited has committed to inform stock exchanges about the completion of this filing process in due course.

Financial and Operational Impact

Under the approved scheme, no new shares will be issued, keeping the capital structure of Hatsun Agro Product Limited unchanged. All assets, liabilities, duties, and obligations of Milk Mantra Dairy Private Limited will transfer to the parent company without further legal procedures. The transferee company will account for the amalgamation using the "pooling of interest method" as prescribed under Indian Accounting Standards.

The tribunal emphasized that the sanction does not exempt the companies from paying applicable stamp duty, taxes, or other statutory charges. All legal proceedings involving the transferor company will continue with the transferee company, while Milk Mantra Dairy Private Limited will be dissolved without winding up upon scheme implementation.