Hatsun Agro Product is in the process of consolidating its Hatsun range of dairy products brand which gives it a national presence.
Hatsun Agro's Arokya brand of milk is the largest private sector dairy brand in the country but is restricted to South India, particularly Tamil Nadu.
The liquid milk brand also contributed the lion's share of the company's Rs 1,355-crore turnover in 2010-11, which also makes it the largest private sector dairy company.
However, the Hatsun range of dairy products, which the company categorises as the “long shelf life products” such as ghee, dairy whiteners, butter and branded skimmed milk powders, have given it a national presence.
As of now, these have contributed to over Rs 20 crore to the business and they have stabilised in the market and will increasingly contribute to the company's growth, according to Mr R.G. Chandramogan, Chairman and Managing Director, Hatsun Agro.
Last year was the phase of consolidation of the Hatsun brand and expenditure relating to brand promotion, Mr Chandramogan told Business Line.
The range has attained a threshold and will now see growth making it a third major division in the company in addition to liquid milk and the flagship brand of Arun Ice Creams which contributes about 7 per cent of its turnover.
Addressing shareholders at the company's AGM, he said the demand for milk and milk products continues to be buoyant for quality products.
The company is well set to exploit this opportunity with an established daily milk processing capacity of about 24 lakh litres of milk spread across eight processing units.
This gives the company economies of scale, efficiency and spare capacity to handle the flush seasons.