This will help in expanding Parag Milk Foods expanding its footprint in the north and northeast India.
“The acquisition is a strategic investment in strengthening our fresh category distribution in the north and northeast regions of the country and cost us Rs 30 crore together with its refurbishment. The additional amenities in the plant will increase our product portfolio in the region,” Parag Milk Foods Chairman Devendra Shah told reporters here.
The addition of the new facility will add 6-7 percent to the company’s overall top line in two years, he added.
“We are expecting the plant to generate 14-15 percent revenue in the north and northeast region. And overall, it will add 6-7 percent our revenue,” he added.
Parag Milk Foods total revenue in 2017-18 stood at Rs 1,730 crore. This plant will only produce fresh products like milk and curd, he added.
Further, he expects it to strengthen product offerings and distribution. Currently, the products that are sold in the northern part of India are supplied from the company’s Manchar plant in Maharashtra.
“This will bring us closer to the end consumer and will give us an edge to understand the consumer preference in northern India,” he added. The plant is spread across 5,500 square metres on the outskirts of Delhi NCR.
Its current milk processing capacity is 0.75 LLPD (lakh litre per day) along with curd processing capacity of 15 tonnes.
“We aim to educate farmers on best practices and help enhance their income. Initially, we have associated with over 2,000 farmers (to procure cow’s milk) and we will keep on adding to these numbers going forward,” he added.
In the coming months, the company is planning to expand the new manufacturing facility by installing processing units for pouch milk, flavoured milk, pouch buttermilk, cup curd, misthi dahi as well as expand the existing yoghurt facility.