Hatsun Agro Product , a prominent player in the dairy and food products industry, has received a reaffirmation of its credit rating from CRISIL Ratings Limited. The company's substantial bank loan facilities, amounting to Rs. 2,120 crores, have maintained their AA-/Positive rating, signaling continued confidence in Hatsun's creditworthiness.

Key Points of the Credit Rating

Implications of the Rating

The AA-/Positive rating from CRISIL is a strong indicator of Hatsun Agro Product's financial health and stability. This rating suggests that the company has:

• A high degree of safety regarding timely servicing of financial obligations
• Very low credit risk
• A positive outlook, indicating potential for rating upgrade in the medium term

Company's Financial Position

The reaffirmation of the AA-/Positive rating implies that Hatsun Agro Product has maintained its strong financial position. This could be attributed to factors such as:

• Consistent financial performance
• Robust cash flows
• Strong market position in the dairy and food products sector
• Effective management of its substantial borrowing facilities

Industry Context

The dairy and food products industry in India is highly competitive and subject to various market forces. Hatsun Agro Product's ability to maintain its high credit rating in this environment underscores its operational efficiency and financial prudence.

Investor Perspective

For investors and stakeholders, this rating reaffirmation provides reassurance about Hatsun Agro Product's financial stability and its capacity to meet its financial commitments. It may also positively influence the company's ability to access capital markets and negotiate favorable terms for future financing needs.

The company's consistent performance, as reflected in its unchanged credit rating, may be seen as a positive sign by the market, potentially supporting investor confidence in Hatsun Agro Product's long-term prospects.

Hatsun Agro Product Ltd (HAP), India's largest private dairy company, plans to introduce a range of high-protein products within the next 3-6 months, according to Chairman RG Chandramogan. In an interview with ET Now, Chandramogan outlined the company's expansion strategy and distribution plans, emphasizing the importance of brand strength and retail distribution in the dairy market.

Expansion Plans

Hatsun Agro is looking to significantly expand its retail presence:

Market Position

Chandramogan highlighted Hatsun's strong market position:

• Top private milk seller in India
• Among the top two ice cream players nationally
• Leading in fresh yogurt and curd among private players
• Three brands (Arun, Arokya, and HAP curd) each generating over ₹1,000 crore in revenue

Financial Performance

For the first half of FY2026, Hatsun Agro reported:

• Sales: ₹5,018.00 crore
• EBITDA margin: 13.80% (196% growth over H1FY25)

Chandramogan expressed optimism about reaching the ₹10,000.00 crore turnover milestone for the full fiscal year if the positive trend continues.

Distribution Strategy

The company's distribution strategy includes:

• 4,300 exclusive outlets for milk, curd, and ice cream
• 100% refrigerated transportation for milk and curd
• Direct sales to dealer-cum-distributors, eliminating middlemen

Value-Added Products

Contrary to industry perceptions, Chandramogan stated that 98% of Hatsun's business is value-added, focusing on branded products sold directly to consumers. He emphasized that infrastructure and retail outlets are key to expanding market share.

Future Outlook

Hatsun Agro is investing in product development and innovation:

• A ₹30.00 crore product development and quality assurance center at its corporate office
• Plans to leverage artificial intelligence in R&D centers for simulations and shortening experimentation time

As the dairy industry evolves, Hatsun Agro appears well-positioned to capitalize on its strong brand presence and extensive distribution network while expanding into new product categories.