Erode-based dairy major Milky Mist is gearing up for a landmark ₹2,000 crore Initial Public Offering (IPO), appointing JM Financial and IIFL Capital Services to spearhead the process.

The company, known for its wide range of dairy and value-added products, is targeting a public listing by the end of 2025 at a valuation of approximately ₹20,000 crore—nearly three times its last known valuation in 2023.

Strong Financial Performance & Expansion Plans

Milky Mist closed FY24 with a top-line revenue of around ₹1,900 crore and an EBITDA of roughly 14%. Over the years, it has expanded its portfolio beyond milk, cheese, and paneer to include ice creams, chocolates, Greek yogurt, and desserts. The IPO proceeds are expected to be used for debt repayment and to scale up manufacturing and distribution operations nationwide.

“Our focus is on achieving high quality through automation and improving volumes through higher capacity and state-of-the-art machinery,” said CEO K Rathnam. He emphasized the company’s resilience despite a consumption slowdown, attributing growth to a well-diversified product range, with over 60% classified as everyday essentials.

A Legacy of Growth & Innovation

Founded by T. Sathish Kumar, who left school to support his father’s milk business, Milky Mist began paneer production in 1994 and has since grown into a household name. The company operates a fully automatic paneer processing plant in Erode and has developed a fully owned logistics network, ensuring seamless distribution of over 20 value-added products.

Industry experts see Milky Mist’s IPO move as a natural progression. “Entrepreneurs from Western Tamil Nadu have historically led the way in raising funds through public markets. Milky Mist is not just a dairy brand—it’s a leader in end-to-end value-added dairy products,” said a Tamil Nadu-based investor.

Beyond Valuation: A Sustainable Growth Strategy

Despite the hype around billion-dollar valuations, Sathish Kumar remains focused on sustainable and profitable growth. In a recent post on X, he stated, “Billion-dollar valuations don’t always reflect a company’s true value. We must focus on building great products that create long-term success.”

With its robust financials, strong brand presence, and aggressive expansion strategy, Milky Mist’s IPO is set to be one of the most anticipated listings in the Indian dairy and FMCG sector.