Milky Mist Dairy Food Ltd., one of India’s most loved dairy brands, has received the green light from the Securities and Exchange Board of India (SEBI) to launch its ₹2,035 crore Initial Public Offering (IPO). The Erode-based company, known for its range of value-added dairy products, is now gearing up for one of the largest IPOs ever in the Indian dairy sector. The public issue will include a fresh share issue worth ₹1,785 crore and an offer for sale (OFS) of ₹250 crore by existing shareholders. With this approval, Milky Mist takes a significant step towards expanding its business footprint and strengthening its financial foundation.
From Humble Beginnings to Dairy Powerhouse
Founded in Tamil Nadu, Milky Mist started as a small regional dairy producer and has gradually grown into a national brand known for its high-quality, value-added products. Unlike many traditional dairy companies, Milky Mist made a bold decision early on — to avoid selling plain liquid milk and instead focus on processed and packaged dairy products like paneer, cheese, curd, butter, ghee, yogurt, and ice cream. This strategy allowed the brand to move up the value chain and create stronger profit margins.
Over the years, Milky Mist has built an extensive network of over 67,000 farmers who supply fresh milk daily. The company maintains strict quality control and invests in modern processing technology to ensure every product meets top standards. Its commitment to innovation and freshness has made Milky Mist a preferred choice among consumers, especially in South India, where its presence is strongest.
Where the IPO Funds Will Flow
The upcoming IPO will play a crucial role in Milky Mist’s growth story. The company plans to use around ₹750 crore from the proceeds to repay existing borrowings, significantly reducing its debt burden. About ₹414 crore is earmarked for expanding and modernising its large-scale manufacturing facility at Perundurai in Tamil Nadu. This expansion will include the addition of new production lines for yogurt, whey protein concentrate, and cream cheese, as well as advanced packaging and storage systems.
A further ₹129 crore will be invested in the purchase of visicoolers, ice cream freezers, and chocolate coolers to improve product freshness and shelf presence across retail outlets. The remaining funds will be utilised for general corporate purposes such as working capital, marketing, and brand-building initiatives. Through these expansions, Milky Mist aims to reach more households across India while strengthening its distribution network and cold-chain infrastructure.
Rising Demand and Brand Growth
In recent years, Milky Mist’s growth has been impressive. The company’s revenue increased from ₹1,394 crore in FY23 to ₹2,349 crore in FY25, reflecting a strong compound annual growth rate of around 30 percent. Its success lies in its focus on value-added dairy products, a segment that has gained tremendous traction as urban consumers seek healthier and more convenient options.
Despite its premium pricing—typically 10 to 25 percent higher than competing brands—Milky Mist has managed to win customer trust by consistently offering high quality and superior taste. The brand has also expanded its product range to cater to changing consumer preferences, investing heavily in research and new product development. With this IPO, the company aims to further diversify its offerings and become a dominant player in India’s packaged food market.
A New Milestone for India’s Dairy Industry
Milky Mist’s IPO approval comes at a time when India’s dairy industry is witnessing rapid transformation. The growing appetite for packaged, branded, and high-value dairy products has encouraged companies to innovate and expand. By going public, Milky Mist not only strengthens its own growth trajectory but also highlights the sector’s potential to attract large-scale investor interest.
For consumers, the IPO signals more innovation, better quality products, and a stronger presence of Indian brands in the premium dairy space. For the company, it marks a new chapter of expansion, technology upgrades, and market leadership. Milky Mist’s story reflects the rise of India’s modern dairy ecosystem — one built on quality, farmer partnerships, and the promise of growth for everyone involved.