NCLT Sanctions Amalgamation Of Milk Mantra Dairy With Hatsun Agro

The Cuttack Bench of the National Company Law Tribunal has approved the proposed amalgamation of Milk Mantra Dairy with Hatsun Agro.The merger, however, will be accounted for differently on paper. For legal and accounting purposes, it will be treated as having taken effect from 1 April 2025.

The move is expected to simplify the group’s corporate structure. It could also expand Hatsun Agro’s operational presence in eastern India.

Why Did NCLT Approve The Milk Mantra–Hatsun Agro Merger?

The NCLT sanctioned the scheme of amalgamation between Milk Mantra Dairy Private Limited (transferor company) and Hatsun Agro Product Limited (transferee company), allowing the integration to proceed under the provisions of the Companies Act, 2013.

As per the approved scheme:

• Milk Mantra will be merged with Hatsun Agro. As part of this merger, all assets, liabilities, and obligations of Milk Mantra will move to Hatsun Agro.

• Regulatory filings will be completed before the merger takes effect. The effective date is 1 April 2025.

A key aspect of the deal is that no new shares will be issued by Hatsun Agro because Milk Mantra was already its wholly owned subsidiary. As a result, there will be no dilution in the shareholding pattern of the listed entity.

The order requires the company to file a certified copy of the tribunal’s ruling with the Registrar of Companies (RoC) to make the merger legally operational.

What Does The Deal Mean For Hatsun Agro’s Expansion Strategy?

Hatsun Agro Product Ltd ranks among India’s largest private dairy companies. Its procurement and distribution network spans the country. With the merger set to take effect, the company is expected to strengthen its presence in eastern India.

The Milk Mantra reported turnover in the last few years:

• ₹276.42 crore in FY24

• ₹272.91 crore in FY23 and

• ₹262.1 crore in FY22.

Thus, reflecting steady growth in the eastern Indian dairy market.

By integrating with Milk Mantra, Hatsun Agro will gain:

• A stronger presence in a major milk production region, Odisha.

• Access to Milk Mantra’s Milky Moo brand. Thus, complementing existing brands in its portfolio.

• Expanded market reach across North Andhra Pradesh, West Bengal and eastern India.

Also Read - Physical AI Is Drawing Fresh Capital, But What Does It Mean For India?

How Will This Impact Investors?

From the operational perspective the Hatsun Agro will benefit from the procurement networks, manufacturing capabilities and distribution network. Apart from this, Hatsun will be able to strengthen its presence in Odisha through Milk Mantra’s sourcing ecosystem and dairy supply chain. And from a financial perspective, nothing much can be said as of now, since the amalgamation does not change Hatsun Agro’s share capital or ownership structure, since the subsidiary was already fully owned by Hatsun Agro.

Sources

CNBC

Marco Money