Value-added products form 80% of Parag Milk Foods’ revenue

Though there are many foreign players, the headroom for growth is immense as there is no major Indian player in this segment. Avvatar has become a Rs 25 crore brand now. We intend to not only have the health and nutrition business contribute 7% to our portfolio by FY 2021, but, more importantly, also drive profitability for both cheese and whey products.

Consumers usually consult their gym trainers and nutritionists when planning to buy protein products. Therefore, we are educating and promoting our product among gym trainers and owners who are key influencers in this category. We are reaching out to nutrition supplements stores, pharmacies, modern retail stores and e-commerce portals.

The Indian sweets market size is around Rs 7,000-8,000 crore; and there is room for other players. This initiative is a forward integration for us, as the sweets are made out of Gowardhan Ghee, which is the flagship brand of the company. Besides, we have a good distribution network.

We are targeting West, North and South markets for gulab jamun, and the North and East markets for rasgullas. We will also launch other sweets variants in six months.

The source of milk is completely different for each of them. Gowardhan milk, which is standardised, comes from our network of five lakh farmers. Pride of Cows, the premium milk brand, is based on the farm-to-home concept. Gowardhan milk is available in dairies, but Pride of Cows has a subscription model; it is only by invitation. Maharashtra is the strongest market for both these products.

We expanded Pride of Cows to Delhi and also launched in Singapore. We are looking at expanding it to other countries in Asia. Pride of Cows caters to 45,000 households across four cities including Mumbai, Pune, Delhi and Surat; and contributes 4% to the overall revenue.

We are not much focussed on the liquid milk category. Our growth in this segment is much lower as compared to other consumer products; therefore, as a part of the pie, it is decreasing gradually. Our business focus is on value-added products which contribute 80% to our revenue, whereas the liquid milk category contributes 20%.

Parag Milk Foods is a Maharashtra-based company, slowly venturing into other geographies. We haven’t established our presence completely in the North and East markets yet, like we have in Mumbai, Ahmedabad and Pune. The recent acquisition of a Danone plant in North India is aimed at going deeper.

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