Mumbai-based dairy products manufacturer Parag Milk Foods (P) Ltd is planning to increase its turnover to around Rs 2,400 crore in 2015-16 from from around Rs 1,500 crore.
The company today launched its buttermilk brand Go Buttermilk with southern spice flavour and said that it would primarily focus on expanding the distribution in South India this year.
At present, around 80 per cent of the company's nearly Rs 1,500 crore turnover comes from the value added products and 20 per cent is from the fresh milk and dairy products. Its flagship products, the cheese products branded as Go Cheese and the ghee product branded as Govardhan Ghee, contributed around Rs 700-750 crore of this turnover, said Devendra Shah, chairman of Parag Milk Foods (P) Ltd.
Speaking to the reporters after launching the products in the region, he said, "We want to see growth on the value added products and in terms of market, this year our focus is primarily expanding distribution in the Southern India." He added that the company's exports, which was 10 per cent of the business last year, would go up to 20 per cent with the new product launches.
The buttermilk it launched for the Southern markets would be sold in Tamil Nadu, Karnataka, Kerala and Andhra Pradesh, along with exports to Gulf countries, Singapore and Malaysia where there are south Indian diaspora.
The company, which has spent around Rs 75-80 crore for brand building last year, is expected to increase the investments by 10-15 per cent.
According to earlier reports, the company, which has raised around Rs 190 crore from private equity investors Motilal Oswal Private Equity, IDFC and IFC (which was a debt financing) starting from 2010, has been looking for fund raising through private equity and also through initial public offering (IPO). However, Shah refused to comment on the fund raising plans.
Commenting on the export market for skimmed milk category, he said that this market has been slow in the recent past and the company expects the market to come back to growth in two to three months.
The current capacity utilisation is around 80 per cent for the milk products and the company would require capacity to be ramped up in another one and a half years. For Cheese, it is utilising almost the whole capacity and would have to look for a capacity expansion.
The new buttermilk product is priced at Rs 15 and Rs 10 with package size of 200 ml tetra pack and fino respectively with the shelf life of 180 days. The company has presence in 1,40,000 retail outlets, 23 depots and 4,000 distributors in its distribution network, he added.
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