The ability is not a glory of age … This saying has been shown by T. Sashtikumar. When his family business was sinking, he was only 16 years old. He left the school to save his family business at this age and not only saved the business, but also raised a society of more than 2000 crores.
Now the company is going to get another success. Satish Kumar’s company is ready to list in the stock market. The company’s IPO of Rs 2035 crore is coming.
It is in 1994, Satish was 16 years old and used to go to school. His family used to do milk business, but the business was not running properly due to the margin in milk and it was quickly spoiled. As a result, his family was facing problems. When Satish came to know about this, he left school studies to handle the family business.
Business of the family like this
Satishkumar did a big plan to save the business. They moved away from the milk business and turned to the cheese. Paneer is a product that has more timely ability and margin to last more time than milk. By 1995, his company ‘Milky Mist’ had entered out of milk and entered things with cheese.
Planning worked
Satishkumar’s strategy worked. His company started production of cheese, curd, ghee, makkhan and ice cream. Then slowly, it started moving forward. Today Milkie Egypt has more than 2000 distributors and runs 15000 branded chiller across the country. Its 55 -acre plant located in Perundurai processes 1.5 million liters of milk every day.
Where does milk come from?
The special thing is that it acquires milk from 67,000 farmers. Without any contract, these company get milk from farmers on the basis of loyalty made through veterinary care, fodder subsidy and financial assistance. There has also been a new deal of ₹ 400 crore with Milklen, which will help in getting premium milk from 10,000 and farmers.
Company bringing ₹ 2,035 crore IPO
Now the company is landing on the Milky Mist IPO Street with an IPO of ₹ 2,035 crore. In this, a new issue of ₹ 1,785 crore and OFS shares of ₹ 250 crore will be issued by promoters. With this, the company will pay its loan of ₹ 750 crore. The capacity of the plant for curd, cream cheese and whey will be expanded from ₹ 414.7 crore. Apart from this, ₹ 129.4 crore will be used in cold-chain gear.
How is the company’s performance
Revenue increased by 29% to ₹ 2,349.5 crore in FY 2024. The company’s profit increased by 137% to ₹ 46 crore, but risks are also hovering. In the south, it is being challenged by heavy sales and big brands like Amul and Nestle. Nevertheless, the company’s cheese business is offering good response, which shows a big margin benefit.
(Note- Take the help of your financial advisor before investing in any IPO.)