In the previous blog, we did a full SWOT Analysis of Patanjali. In this article, we are going to break down the SWOT Analysis of Hatsun Agro Product – India’s leading dairy products manufacturer.
Hatsun Agro Product is a leading private sector dairy company in India with Headquarters in TamilNadu Chennai. HAP manufactures and markets products like milk, curd, ice creams, dairy whitener, skimmed milk powder, ghee, paneer and lots more.
Also, Hatsun Agro Products’ digital marketing strategies have played a vital role in them becoming so popular around the world. It is marketed as a vibrant beverage strongly related to good health and sports.
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In this case study, we will learn about the SWOT Analysis of Hatsun Agro Product. But first, let us know about the company and the product better.
About Hatsun Agro Product
Hatsun Agro Product Ltd (HAP), popularly known as Hatsun, is a private dairy firm situated in Chennai, India founded by R. G. Chandramogan in 1970. Hatsun Agro Product expanded into an integrated dairy corporation selling milk, milk powder, curd, ghee, paneer, and ice cream after the company’s name was originally conceived as ‘Hot Sun.’
The potential for expansion in the Indian dairy business has attracted regional, national, and international firms. The Company was also awarded “The Fastest Growing Asian Dairy Company.” For several years, the Dairy Product Maker has received the Golden Trophy from the Indian Government for being the greatest dairy product exporter. Hatsun began producing Ice Cream under its flagship brand Arun in 1970.
It began marketing fresh milk in pouches in 1993 and began manufacturing dairy products in 2003. Hatsun Agro Product caters to different brands including Arun Icecreams, Arokya Milk, Hatsun Curd, Hatsun Paneer, Hatsun Ghee, Hatsun Dairy Whitener and Ibaco have become popular choices for over one million Indian houses. They also have a healthy global presence with dairy ingredients exported to 42 countries around the world — primarily in America, the Middle East and South Asian markets.
HAP obtains milk from a small group of high-quality calves that are sourced directly from over 400,000 farmers. It adheres to the recognized ISO 22000 quality standards. It has 3600 shops across Tamil Nadu, Andhra Pradesh, Telangana, Puducherry, Kerala, Gujarat, Goa, Maharashtra, Karnataka, Chhattisgarh, and Orissa, making it India’s largest dairy retail network.
|Founder||R. G. Chandramogan|
|Origin||Chennai, Tamil Nadu, India|
|No. of Employees||5,148+|
|Market Cap||Rs 23,769.09 Crore (2022)|
|Annual Revenue||Rs 1.58T Crore (2021)|
|Net Income/ Profit||Rs 47.84 Crore (2021)|
Products of Hatsun Agro Product
In nearly one million Indian homes, the brand has become a household name. The following are some of their product categories:
- Milk Products
- Arokya Milk Products
- Aniva Sweets
- Ice Creams
- Daily Ingredients
Competitors of Hatsun Agro Product
On a global scale, Hatsun competes with several other private dairy farms. Therefore, the top 5 rivals are as follows:
- Nestle India
- Zydus Wellness Ltd
- Dodla Dairy
- Heritage Foods
As now we have a better understanding of Hatsun Agro Product, let’s look into the SWOT Analysis of Hatsun Agro Product.
SWOT Analysis of Hatsun Agro Product
Hatsun Agro Product is India’s leading and most trusted milk production company, carrying out a detailed SWOT Analysis of Hatsun Agro Product helps in finding its strengths, weaknesses, opportunities and threats. Understanding internal strengths and weaknesses and external opportunities and threats. SWOT analysis helps in forming correct objectives and plans for the future.
So let us go ahead and first have a glance at the strengths of Hatsun Agro Product from the SWOT analysis of Hatsun Agro Product.
Strengths of Hatsun Agro Product
Strengths represent everything that an organisation is good at and why it sets them apart from the competition. They are the internal and positive attributes of any company. Hatsun Agro Product’s strengths are
- A Wide Range of Products: Hatsun Agro Product has a diverse portfolio in over 15 consumer-centric product categories including ghee, fresh milk, skim milk powder, whole milk powder, paneer, an array of processed and natural cheese, cheese spreads, butter, Dahi and dairy whitener. This helps Hatsun Agro Product to explore more revenue streams.
- Brand Presence: The dairy corporation has 20+ processing plants in India. The brand operates in 42 countries worldwide primarily in America, the Middle East and South Asian markets. Hatsun Agro Product is associated with 202599+ retailers operating in 3500+ retail outlets.
- Growth in Turnover: With a record growth rate of 116% over the last three quarters, the company has tripled its total turnover in the last three years and is on track to become the world’s fastest-growing dairy company. The company expanded by 23.6% in the fiscal year 2011–2012.
- Business Model: Hatsun Agro Product deals in the dairy industry and this industry is said to be endless because dairy products like milk, ghee, butter and cheese come under daily goods and work as many for necessity.
- Robust Technology: Hatsun Agro Product dairy farms are set to global standards including a modern cheese plant that is fully automated with state of the art technology, and a ghee plant with a traditional way of making ghee like made at home. The technology ensures that the company never compromises on the quality of its products.
- Superior Quality: One of Hatsun Agro Product’s primary mottos is to provide premium quality products that are healthy and nutritious and it is standing on its commitments which led it to become one of the world’s largest health-focused dairy providers.
- Distribution & Reach: Hatsun Agro Product is a global brand that sells in countless countries. Hatsun Agro Products’ robust distribution network of around 10,000 plus Hatsun Milk Banks (HMBs) covering over 13,000 villages makes sure that the products reach the consumers in the easiest and best possible way.
Weaknesses of Hatsun Agro Product
Weaknesses pull an organisation back from performing at its best. They are the negative internal factors that weaken business strengths. A few drawbacks or weaknesses of Hatsun Agro Product are
- Improper Strategy: Upon further inspection, one can find out that the focus of all marketing efforts is long-term and that there are gaps in its short-term strategy formulation.
- Niche Market Segment: Hatsun Agro Product’s premium pricing strategy allows its sales volume to reduce significantly as various lower economic sectors of the market go unexplored. The price of its product Gowardhan ghee is relatively higher than other ghee products on the market.
- Incompetency in Indian Market: Hatsun Agro Product’s presence in India contributes greatly to its sales value however it has been constantly falling due to the leading dairy manufacturers like Amul and Mother Dairy.
- Limited Supplier Contracts: Hatsun Agro Product relies too much on a handful of suppliers for its raw material which is milk purchased from farmers and this increases the risk factor greatly.
- Limited Attention on Other Segments: Hatsun Agro Product exclusively focuses on revenue from its dairy segment which often gets the other segments overlooked.
Opportunities for Hatsun Agro Product
Opportunities are the factors that provide an organisation with a chance to edge over others. They are the external factors that can contribute to the success of any company. Certain opportunities that Hatsun Agro Product has:
- Fitness Movement: Several health issues and epidemics tend to threaten the lives of various people and as they move towards a healthier lifestyle, Hatsun Agro Product can be among the first brands to introduce organic products.
- Plant-based Nutrition: The shift to veganism allows Hatsun Agro Product to take advantage of this opportunity and diversify its product portfolio.
- Acquisitions & Partnerships: Hatsun Agro Product has established its presence in India through various acquisitions and mergers which also opens up the prospect of several more.
- Product Diversification: Due to its rising revenue, Hatsun Agro Product has the opportunity to invest its revenue in research and development which will increase the number of products and their features ultimately leading to it gaining a competitive advantage in the market.
Threats to Hatsun Agro Product
Threats are those factors that have the potential to provide harm to the organisation in any form. The threats to Hatsun Agro Product are as follows:
- Severe Competition: The competition is extremely cut-throat in the food industry. Some of its chief local competitors are Zydus Wellness Ltd, Dodla Dairy and Heritage Foods. The leading national competitors are Britannia, Amul, Patanjali and Mother Dairy.
- Entry of New Competition: Due to the FMCG industry being an opportunistic, ever-evolving field, the entry of potential players into the market is easy.
- High Substitution Rate: Due to the availability of various substitutes like local distributors and local dairy plants available across several product categories, it is very easy for consumers to substitute Hatsun Agro Product products.
- COVID19 Pandemic: COVID19 has caused a disastrous economic impact on economies and individuals which reduces the probability of consumers opting for dairy products that are labelled by brands like Hatsun Agro Product, based on which customers are compromising on quality and thinking from the price perspective.
- Stock fall & Brand Discontinue: The FMCH stock market has fallen by 1.45% and also the Covid pandemic dealt a major blow to the company’s ready-to-eat (RTE) business, which comprised pizzas and pasta, under the Oyalo brand leading to the discontinuation of it.
This ends our elaborated SWOT analysis of Hatsun Agro Product. Let us conclude our learning below.
Thus, we conclude from the above analysis that as a brand that already boasts of a diversified product portfolio and global omnipresence, Hatsun Agro Product’s strengths outweigh its negative factors if it were to take advantage of the opportunities in the market and take timely action to mitigate its risks.
However, to comment on the current global scenario, Hatsun Agro Product must take advantage of the biggest opportunity out there which relies on the digital movement that is quickly causing all operations to switch to virtual platforms. In this light, it becomes all the more essential for Hatsun Agro Product to direct a significant proportion of its funds to digital marketing which will cause its brand value to increase and its sales volume and value to multiply.
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