The best known name in the Indian dairy sector is Amul. But the chances of Amul becoming a listed company is next to none. So, how does one take exposure to the dairy sector? Through a listed company? But, among the listed entities in this sector, one struggles to find any that have size, scale, and a brand – the three things crucial for a company to generate profits for itself and create wealth for investors. All the listed firms have single-digit net margins. In a business where margins are thin, it is size and scale that matter. Yet, as they say, there is no substitute for experience. And experience counts for a lot in the dairy business. So there are companies here that are reaching an inflection point.
