Parag Milk Foods is gearing up for a bigger role in the dairy market. After expanding its product base in the cheese and flavoured yogurt segments, the brand is planning to launch its own range of milkshakes in the next three to four months. Currently, it is working on the R&D of the yet to be launched product.
The company that has been experimenting with its products like cheese and flavoured yogurt under its Gowardhan and Go range of brands is on a roll as it clocked revenue worth Rs 875 crore in FY 2012. It is yet again expecting a growth of over 35 per cent this fiscal on the back of aggressive expansion plans. Devendra Shah, Chairman, Parag Milk Foods divulges that the company is expecting around Rs 1,200 crore this fiscal.
Experts feel that the expansion move is pitted against established dairy players like Britannia and Amul. But a strong distribution network that is the forte of these bigger players makes it imperative for Parag to expand its presence geographically too. Thus, Parag is also aggressively looking at increasing its distribution network and reach to 100 towns. â€œWe plan to expand more into the Eastern and Northern markets. We have plans to open 150 exclusive stores in big cities by next January. The new stores will be on a franchise model,â€ Shah added.
Apart from a plant at Manchar, Pune, the company is all set to spend close to Rs 110 crore for another plant in Andhra Pradesh, which has ultra heat treatment (UHT) technology. â€œOur new plant in Andhra with the UHT technology has been commissioned and has a capacity of 7â€”8 lakh litres per day. It is basically for tetra pack products. â€œThis year, we have invested Rs 40 crore for this. Besides, we have invested Rs 70 crore in the plant for infrastructure,â€ he said. It will also be the first time that the company will be launching tetra pack products.
The next product in the offing is flavoured milk using the same UHT technology. Apart from this, the brandâ€™s USP lies in the fact that all its products are made of cowsâ€™ milk, something that has a wide cultural and consumer appeal in the country. Plus, in terms of packaging and flavours the company has been experimental too. It was the first to launch shredded cheese, cheese in tube and powder format. Inspired by the West, it also launched glass jars for its cheese spread that set it apart from the tub format offered by competition.
With so much on the platter, Parag aims to capture a volume share of 10 per cent in the 11 lakh litre a day market within the next three months. The market is estimated to be Rs 500â€”800 crore in terms of value. This year saw the company launch super premium packaged milk brand called â€˜Pride of Cowsâ€™, thereby, creating a niche category for the SEC A+.
The current portfolio of Parag Milk Foods includes skimmed milk powder, whole milk powder, ghee, processed cheese, butter, curd, proprietary foods like dairy whitener and gulab jamun mix powder under the brand names Gowardhan and Go.