The Hindu Business Line : Hatsun may strike deal with Britannia, HLL for supply of dairy whiteners

According to Hatsun Agro's Chairman and Managing Director, Mr R.G. Chandramogan, the talks are at an advanced stage and the deal could augment Hatsun's turnover by about Rs 2.5 crore - Rs 3 crore a month. The company's turnover in 2003-04 was Rs 361.90 crore, an increase of about 11 per cent over the previous year.

He said that the market potential in India for dairy whiteners is about 1,000 tonnes a month. Hatsun can supply about 250 - 300 tonnes a month. Officials said that dairy whiteners are increasingly in demand with the growth in demand for beverages and increase in beverage vending machines.

Hatsun has a facility to produce milk powder and related products near Chennai. The company is also setting up an integrated milk powder plant in Salem to produce about 25 tonnes a day of whole and skimmed milk powder, dairy whitener and butter and ghee.

The Chennai-based Hatsun Agroprocures about 10 lakh litres milk a day. Its product range includes Arokya and Komatha brands milk and ice-creams under the brand name Arun. Mr Chandramogan said that Arun ice-creams would soon be exported to Brunei, where a distributor has been identified. By October-end Arun ice-creams will also be available in Seychelles through a franchisee.

Addressing the annual general meeting today, he said that during July and August 2004, the company's turnover of Rs 75.50 crore was a 27 per cent increase over the corresponding period in the previous year. The company has achieved economies of scale in milk procurement and optimised the logistics in distribution. Hatsun has also brought down the cost of borrowings, he said.

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