Milky Mist IPO

About Milky Mist

Milky Mist, founded in 1985 by T. Sathish Kumar, is a packaged food company with revenue exceeding ₹15,000 million, growing at 29.82% CAGR from FY2023 to FY2025. Based in Erode, Tamil Nadu, the company operates farm-to-retail infrastructure, sourcing milk from 67,615 farmers across South India. With 17% market share in the private packaged paneer segment and ranking third nationally in cheese, Milky Mist produces value-added dairy products under brands including ‘Milky Mist,’ ‘SmartChef,’ and ‘Capella.’ The company reaches 350,000+ retail touchpoints across 22 states through 3,062 distributors.

---

Financials of Milky Mist

---

Issue size

Funds Raised in the IPO	Amount
Overall	₹2035 crores
Fresh issue	₹1785 crores
Offer for sale	₹250 crores

Utilisation of proceeds

Purpose	INR crores (%)
Repayment/prepayment of borrowings	750 (42.01%)
Funding capital expenditure requirements in relation to the expansion and modernisation of our Perundurai Manufacturing Facility	414.71 (23.23%)
Deployment of visi coolers, ice cream freezers and chocolate coolers	129.42 (7.25%)
General corporate purposes

Strengths

• Packaged food company with brand presence across product categories
• Multiple product categories targeting various consumer segments
• Manufacturing facilities with automated production processes
• Direct milk sourcing from farmer networks
• Multi-channel distribution with proprietary logistics infrastructure

Risks

• Heavy dependence on Tamil Nadu for raw milk procurement (97%+ of supply)
• Single manufacturing facility concentration in Perundurai, Tamil Nadu for core products
• Significant revenue concentration in South India markets (71-78% of total revenue)
• Dependency on statutory approvals and regulatory compliance for business operations
• Product quality risks from contamination, spoilage, or improper storage processes
• Exposure to legal proceedings involving company, promoters, and key management personnel