homevideos Newsbusiness NewsHatsun Agro begins production at Solapur plant; expects Rs 550 600 cr revenue

Hatsun Agro begins production at Solapur plant; expects Rs 550-600 cr revenue

Hatsun Agro's Solapur plant has begun commercial production. RG Chandramogan, Chairman of the company, said it will take 18-24 months to completely utilize the capacity of the plant.

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By Prashant Nair   | Reema Tendulkar  Mar 2, 2021 1:34:09 PM IST (Published)

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Hatsun Agro's Solapur plant has begun commercial production. RG Chandramogan, Chairman of the company, said it will take 18-24 months to completely utilize the capacity of the plant.

"The revenue potential of Solapur, once when it starts, it probably may take about 1.5-2 years to get the output. We believe that probably this can generate a revenue of something like Rs 550-600 crore. For FY22 it will contribute about Rs 300 crore,” he said in an interview to CNBC-TV18.
On procurement prices, he said currently the prices were same as last year. However, he expects the prices to increase by 5-6 percent.
"Milk procurement prices are on the rise and there is a mild inflation possible on the selling price due to the pressures of milk. Due to the COVID-19 there was lesser procurement by most of the people and that has put the animals comparatively with lower yield and it takes time to recoup. Cattle feed prices are also rising in an alarming manner. So, all these things are likely to result in a mild inflation. So, maybe around 5 percent on selling price there is a possibility of inflation,” he said.
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