Soujanya -
I’m not invested in Hatsun. Wanted to share my views (may be erroneous) since I live in Chennai.
Arokya
In Chennai/Tamilnadu, even Amul doesn’t has much traction. It is all Aavin (http://www.aavinmilk.com/organisation.html; like Tamilnadu’s Amul) here. Milk gets sold out as early as 6AM. Only then people buy other brand milk like Arokya. Amul is reduced to premium segment like tetra pack doesn’t-get-spoilt milk.
I kind of agree with you since population is growing, with limited land/resource the milk price may be a one way upside move “growing” more than inflation. Amul/Aavin/KMF/state co-op cos may be leaders in their markets but due to the sheer size other second rung players can be profitable.
**Ibaco
**
I love Ibaco! They are like ice parlours (over 35 locations in Chennai) with bells and whistles. I think their margins are good. A two person bill may come to Rs 350 and their cost may not be even Rs 100.
What is owing Hatsun for Ibaco alone? It is like owing Tata Global for Starbucks alone. Their margins are crazy and they are only in Mumbai, Delhi, Pune and Bangalore. So much scaling can be done. I don’t Tata Global but might consider if the valuations are right.
In this respect Hatsun is predominately in TN only and not sure if they can have any traction in other parts of the country.