Raja Ganesan Chandramogan was born in 1949 in a very poor village in Tamil Nadu.
He spent his childhood struggling to survive, dropping out of school as it was out of reach for his family. To support themselves, the family owned a small grocery shop.
However, Chandramogan’s father had ambitious plans for his son and wanted him to go to the United States, where he would have a better chance of studying despite lack of resources. But in 1968, the family shop was in crisis, so Chandramogan refused to leave his family and was convinced that he would find a way to help them.
In 1970, at age of 21, Chandramogan took a risky step of selling the family’s only property to set up a small business, which he named RG Chandramogan and Co, a dairy company.
Initially, they had just four employees and made ice creams, which they sold on streets with carts and bicycles. With determination, he increased production to 10 000 units a day. First few years were difficult, but business grew slowly. After a few years, he achieved a degree of recognition and an increasingly satisfactory income. A major change came in 1978 when Chandramogan decided to set up ice-cream parlours in small towns and rural markets, which considerably increased his customer base.
In 1986, Chandramogan renamed his company Hatsun Agro Product.
He then diversified into other dairy products. From 1995, his brand became popular and RG Chandramogan developed ArunIcecream, an ice cream brand, first in Tamil Nadu and later throughout southern India. Arokya and Gomatha are the company’s two popular dairy products and are considered as the main source of revenue.
At this time, cooperatives were offering much lower prices than private companies.
To keep up, new market entrants had to be highly competitive.
To counter this, Chandramogan relied on product differentiation. While most competitors tried to sell a variant of milk with 3% fat content, Chandramogan decided to sell milk with 4.5% fat content, which was much better for children’s growth. Company is also developing a technology based on thermal batteries in its bulk milk coolers to cool the milk immediately, facilitating exchanges.
«I wasn’t going to compromise on quality and lower the price».
Hatsun Agro Product uses 80% renewable energy in production. Hatsun Agro Product is becoming increasingly profitable thanks to thanks to the absence of intermediaries between farmers and the company and the reduction in costs achieved by building tiny point-of-sale factories, with appropriate planning.
Thanks to this strong growth, Hatsun Agro Product is listed on Bombay Stock Exchange since 1996.
Innovation is key the company. Indeed, since 2005, company has been working with Tamil Nadu Agricultural University (TNAU) to market its high-yielding, protein-rich hybrid Napier green fodder, an essential feed for livestock. In November 2013, company introduced digital payments to farmers for procurement and moved to a 100% digital mode.
Hatsun Agro Product generates over 95% of revenue from retail sales under brands such as Arokya Milk, Arun Icecreams, Hatsun, Hatsun Daily, Ibaco, Santosa, Oyalo and Aniva.
In 2020, on its 50th anniversary, Hatsun Agro Product is expanding business with dairy ingredients exported to 38 countries around the world, including markets in America, Middle East and South Asia. Also, in 2022, Hatsun Agro Product Ltd will reach a milestone in retail sales with over 3 000 outlets and an internationale presence.
Today, RG Chandramogan lives with his wife in Chennai and is still Chairman of Hatsun Agro Product Limited. He holds 54.8% of the company.
« I don’t consider myself a billionaire. In fact, the only asset I have is a house. »
IN A FEW FIGURES
Headquartered in Tamil Nadu, India
Founded in 1970
2022 sales: $780M
Net profit 2022: $26M
Market capitalisation: $2.4Bn
6 060 employees
3 000 points of sale
MILK INDUSTRY IN INDIA
N°1 producer worldwide
Production in 2020: 198M tonnes
150M producers
300M dairy cows
Generates $100 Bn in annual sales
Dairy co-operatives: 22% of the market
Top 3 companies:
- Gujarat Cooperative Milk Marketing Federation Ltd
- Mother Dairy
- Nestlé India
At 74, RG Chandramogan is charmain - founder of Hatsun Agro Product, one of India’s largest companies. His fortune is estimated at €2.5 Bn. (source: Forbes, July 2023)