How Milk magic is Planning to Expand in the B2C Category

JGF has been exporting its array of products under its brand names 'Milk Magic' (dairy products) and 'Inde-Chef's' (non-dairy) to countries such as the USA, New Zealand, Egypt, Jordan, Sri Lanka, and Mauritius.
How Milk magic is Planning to Expand in the B2C Category
Kishan Modi

Jayshri Gayatri Food Products (JGF), one of the leading dairy product manufacturers in Central India, was founded in 2013. Headquartered in Bhopal (MP), the company has an expansive state-of-the-art manufacturing facility at Sehore (MP), which the biggest dairy products manufacturing unit in Central India. 

“In 2013, we started as a B2B manufacturing and supplying of dairy products in domestic and international markets. Over the years we have expanded our products portfolio to non-dairy products as well and grew exports globally to over 20 countries,” says Kishan Modi, Managing Director, Jayshri Gayatri Food Products.

“We started our exports business with the flagship product paneer, and today they are exporting cheese, butter, skimmed milk powder, and other value-added products to various countries and soon we will reach a cumulative volume of exports to 300 MT per month,” he adds. 

Foraying Into B2C Category

The household demand for dairy products saw an exponential rise due to the pandemic led lockdown imposed in India.  However, due to supply chain interruptions, many national brands were unable to fulfill this heightened B2C demand. 

“We saw this as a huge opportunity to penetrate the dairy products range under the brand ‘Milk Magic’ in the B2C domestic market and penetrated in states like Madhya Pradesh, Chhattisgarh, Rajasthan, Orissa, and Telangana among others,” he states. 

“Customers loved the superior international quality of the products and repeat orders were received. Moreover, due to the scare of the pandemic consumers have now started to prefer packaged dairy products over lose/unbranded products for hygiene and safety concerns,” he adds.

The wide product basket under the brand Milk Magic includes the fresh and frozen varieties of paneer, which is one of their most popular product offerings, butter-salted and unsalted varieties, pure ghee variety, an assortment of cheese, khoya, and Indian sweets such as gulab jamun, rasgulla, and rasmalai.

Retail and Marketing Strategy

The target audience for the B2C domestic market for the brand ‘Milk Magic’ belongs to Sec A and B households that consume dairy products. The brand has been communicating via newspaper ads and social media brand handles and influencer engagement.

“Currently, we are setting up the national retail network via distributors, direct tie-ups with large format food and grocery retailers like Reliance Fresh. In phase 2, we will start looking at e-retailing platforms. We have robust plans to build our own distribution channel with hubs in each city followed by retail outlets. We have recently opened our first exclusive retail outlet for Milk Magic in Bhopal,” he asserts. 

How Milk magic is Planning to Expand in the B2C Category

Product/ Category Expansion Plans

Under the brand Milk Magic, building on the strength of the flagship product paneer, the company has innovated variants of ready-to-eat variety that is infused with natural spices. Exclusively developed for the domestic market, this product range is designed to handle ambient temperature and is enriched with vitamins and proteins. Additionally, the company is also launching a range of flavored milk with some unconventional variety as well. 

“Under the dairy products category, we are expanding our product offering to include cheese spreads, filler cheese, margarine, mayonnaise, khoya, and Indian sweets like gulab jamun, rasgulla, chena kheer along with curd, buttermilk, lassi, and liquid milk in pouches, and much more,” he says.

Besides dairy products, JGFP has robust plans to expand its product portfolio to the ready-to-eat snacks segment as well under the brand ‘Inde’s Chef’.

“We are developing an additional 15,000 sq. ft. production space in the existing plant in Sehore, at producing a variety of snacks under categories such as multigrain, red and white quinoa, organic brown rice and quinoa, ready-to-eat curries, ready-to-eat pasta, ready-to-cook sauces, among others. The ready-to-eat segment has a huge potential in the international markets (exports) with a potential business opportunity of approximately Rs 30-32 crore in the first year for JGFP,” he shares.

Expanding Capacity of Manufacturing Facility 

Jayshri Gayatri Food Products is self-manufacturing all its products at the facility at Sehore (MP). Presently, the Sehore plant of the company processes 4 lakh liters of milk per day to produce high-in-demand dairy products such as fresh and frozen varieties of paneer (25 MT capacity), butter (30 MT capacity), whey powder (15 MT capacity), cheese variants (20 MT capacity), and skimmed milk powder (30 MT capacity) on a daily basis.   

“In our endeavor to produce hygienic and high-quality dairy products (taste, aroma & nutritive value) we continue to invest in the latest technology of global standards. We are setting up another new plant with modern dairy equipment for manufacturing of salted table butter (2 MT per hour capacity), mayonnaise (1 ton per hour capacity), table margarine (1 ton per hour capacity), along with cold storage with 800 BPD capacity,” he asserts.

“An additional manufacturing facility is being developed adjacent to the existing plant, which will enhance the production capacity by multiple folds. This 16,000 sq.ft. the facility will be a multi-story complex with highly sophisticated and state-of-art technology to produce high nutritive value products. Having a capacity to process 5 lakh liters of milk daily and storage facility of 4000 MT of products this well-equipped and modern facility will get operational by end of this year 2021,” he further adds.  

After commissioning the new production plant, the existing plant will be utilized exclusively for processing Whey powder, which is incidentally a by-product of paneer manufacturing. 

Expansion Plans

The key milestones for the company have been the continuous expansion opportunities in the export market and acceptance of their products in the Indian as well as foreign markets. 

Over the years, the company has established the export business to the Middle East - Dubai, Kuwait, Oman, Qatar, Sharjah, Bahrain, and many Southeast Asian countries like Hong Kong, Singapore, Malaysia, Japan. JGF has also been extremely successful in developing many co-branded dairy products with well-known multinational brands in the Middle East and Asian countries.

Furthermore, JGF has been exporting its array of products under its brand names ‘Milk Magic’ (dairy products) and ‘Inde-Chef’s’ (non-dairy) to countries such as the USA, New Zealand, Egypt, Jordan, Sri Lanka, and Mauritius.

“Milk Magic brand is very popular in Rajasthan, Bihar, Chhattisgarh, Orissa and Telangana among others and is also being subsequently launched in Karnataka, Tamil Nadu and Kerala and later in it will entre Maharashtra, Gujarat, Punjab, Jammu & Kashmir, Uttar Pradesh, Himachal Pradesh, and North Eastern states as well,” he states.

The company is the exclusive dairy products supplier to global brands in international markets such as McDonald’s, Domino’s, Subway, and Indian domestic market majors like ITC, Britannia, Anik Dairy, Vadilal, Top N Town, Kwality Wall's, Tasty Bytes, Vista Food, Vimal Agro, and Sanjeevani Agro Food among many other national and regional brands across the country.

“For growth, we will continue to tap international and domestic markets for B2B businesses for supplying value-added-products to manufacturers and HORECA segment, and also explore co-packaging/ branding opportunities to expand the brand portfolio,” he shares.

The company has marked tremendous growth year-on-year in exports and is getting more inquiries from across the world from dairy brands, business traders, manufacturers, and suppliers. 

Kishan Modi