Dairy major Hatsun Agro Product has announced plans to invest around Rs 1,000 crore in FY27 to strengthen its milk procurement and distribution network, modernise production facilities, and enhance marketing initiatives.

According to Chairman R.G. Chandramogan, the investment is aimed at increasing the company's daily product sales to 2.4 crore packs over the next two years from the current 1.84 crore packs.

The Chennai-based dairy company reported FY26 revenue of Rs 9,959 crore, up 14.5% year-on-year, and has started Q1FY27 with around 19% growth. Chandramogan said the company could approach Rs 12,000 crore in revenue this fiscal if the growth momentum continues.

Despite rising milk procurement costs, Hatsun expects to maintain healthy margins due to its direct procurement model, company-owned and franchise distribution network, and strong brand portfolio, which includes Arokya, Arun, Hatsun, and Ibaco.

Looking ahead, the company plans to launch a range of protein-rich beverages within the next one to two months, while also introducing new ice cream variants and chocolate products. Hatsun also aims to expand its retail footprint from around 4,100 HAP Daily outlets to more than 5,000 outlets by the end of the financial year.