Parag Milk launches 'Slurp', a mango fruit milk juice

Parag Milk Foods is aiming a revenue of up to Rs 160 crore this financial year on better demand for its products in the northern market. The Mumbai-based company earned a revenue of about Rs 70 crore last fiscal from its manufacturing facility in Sonipat, Haryana, which it acquired from Danone.

In April 2018, Parag Milk acquired Sonepat plant and started commercial operations in August for expanding its footprint in the north and northeast India. The company at present has three plants in Maharashtra, Andhra Pradesh and Haryana with a total processing capacity of 2.9 million litres per day. 

Devendra Shah, Chairman of Parag Milk Foods, said, "Our Sonipat plant is doing very well. It contributed Rs 65-70 crore to our total turnover during the last fiscal. We are targeting a revenue of Rs 130-160 crore during the current financial year."

During 2018-19 fiscal, Parag Milk reported a 22.6% rise in its consolidated revenue from operations to Rs 2,395.7 crore.

"We are currently processing about 60,000 litres per day of milk in the Sonipat plant which is being sourced from Maharashtra, Haryana and Rajasthan. The company expected to reach 100 per cent capacity utilisation of over 1 lakh litre per day in the next financial year," Shah added.

Parag Milk Foods has unveiled its farm-to-home premium milk brand 'Pride of Cows' in Singapore. Dairy FMCG company is airlifting the milk from its dairy farm, located in Manchar, near Pune to Singapore.

Parag Milk claims to be the first Indian company that is selling fresh milk in Singapore. Initially, Pride of Cows will be made available through various home delivery platforms.

Devendra Shah, Chairman of Parag Milk Foods, said, "A typical Pride of Cows consumer has an evolved taste preference and is brand as well as health conscious. With an abundance of such consumers in Singapore, we have identified a huge opportunity for expansion there."

"As the consumption of fresh and organic milk has increased in Singapore, consumers have become mindful of the source of the milk they consume and its nutrient content and we believe that there is a dearth of such products in the country," Shah further stated.

पराग मिल्क, पुणे के पास मंचर के डेयरी फार्म से हवाई जहाज द्वारा दूध लाएगा और दिल्ली में अपने उपभोक्ताओं तक पहुंचाएगा।

पुणे आधारित डेयरी कंपनी पराग मिल्क फूड ने साउथ दिल्ली और एनसीआर में अपना प्रीमियम फ्रेश काउ मिल्क ब्रांड 'प्राइड ऑफ काउज़' लॉन्च किया है। कुछ ही महीनों में कंपनी अपनी इस नई पेशकश का पूरे दिल्ली में विस्तार करेगी।

पराग मिल्क, पुणे के पास मंचर के डेयरी फार्म से हवाई जहाज द्वारा दूध लाएगा और दिल्ली में अपने उपभोक्ताओं तक पहुंचाएगा। इस कदम का उद्देश्य उपभोक्ताओं को नए सिरे से फार्म के ताजे दुध का अनुभव कराना है।

पराग मिल्क फूड के प्रमुख, देवेंद्र शाह ने कहा, 'कंपनी प्रमुख रूप से लॉजिस्टिक्स और वितरण पर फोकस करेगी। साथ ही ये दूध को डिलीवर करने में छ से सात घंटे तक का समय लगाएगी। इस कदम का मुख्य कारण उत्तर में कंपनी की पहुंच को मजबूत बनाना है। दिल्ली एनसीआर देश का सबसे बड़ा दूध बाजार है जिसका मूल्य लगभग 11 हजार करोड़ रुपए है।'

वर्तमान में डेयरी कंपनी मुंबई, पुणे और सूरत में करीब 25,000 घरों में अपनी सेवाएं दे रही है।

प्राइड ऑफ काउज़ की यूएसपी इसकी प्रत्यक्ष फार्म-टू-होम मिल्क अवधारणा है।

शाह ने आगे कहा, 'इससे मिलने वाला कंपनी का रेवेन्यू वित्त वर्ष 13-18 में 28 प्रतिशत के सीएजीआर की दर से बढ़ा है और यह इसी गति से आगे बढ़ता रहेगा।'

Parag Milk Foods, a Pune-based dairy company, has launched its premium fresh cow milk brand 'Pride of Cows' in South Delhi and National Capital Region (NCR). The company will extend this offering to the entire state in the next couple of months.

Parag Milk will be airlifting the milk from their dairy farm in Manchar, near Pune, and bring it to consumers in Delhi. The move is aimed at providing farm fresh experience to the consumers.

Devendra Shah, Chairman, Parag Milk Foods, said, "The company will majorly focus on logistics and distribution and it will take between six to seven hours for milk to get delivered. The rationale of the move is to strengthen the company's presence in the North. Delhi NCR is the largest milk market of the country valued at around Rs 11,000 crore."

At present, the dairy company is serving 25,000 households in Mumbai, Pune and Surat.

Pride of Cows’ USP is its direct farm-to-home milk concept.

"The Company's revenues from Pride of Cows have grown at a CAGR of 28 per cent over FY13-18 and it will continue to grow at this pace," Shah added.

मिल्कबास्केट अगले दो साल में 2500 लोगों का हायर करने की योजना बना रहा है। ये एक स्टार्टअप है जो दूध की डिलीवरी करता है।

इस स्टार्टअप ने सबसे पहले बेंगलुरु में अपनी सर्विस लॉन्च करने के बारे में घोषणा की।

मिल्क बास्केट के को-फाउंडर अनंत गोयल ने कहा, 'अगले दो साल के अंदर हम बेंगलुरु में सबसे ज्यादा संचालन की आशा कर रहे हैं और इस प्रक्रिया में 2500 लोगों के लिए रोजगार के अवसर बनाएंगे।'

कंपनी बेंगलुरु में लोगों को अपने संचालन और विकास को बढ़ाने के लिए हायर करने की योजना बना रही है।

ग्राउंड ऑपरेशन्स के साथ कॉर्पोरेट ऑफिस के लिए भी हायरिंग की जाएगी।

इस स्टार्ट-अप के पास दिल्ली एनसीआर और बेंगलुरु में 1500 कर्मचारी हैं और इसने मेफील्ड एडवाइजर्स, बीनेक्स्ट, कलारी कैपिटल, यूनिलीवर वेंचर्स, लेनेवो और ब्लूम वेंचर से करीब 100 मिलियन चॉलर के करीब जुटाएं हैं।

Milk delivery startup Milkbasket is planning to hire 2,500 people over the next two years.

The startup has announced the launch of its services in Bengaluru.

"Within the next two years, we hope to have the largest operations in Bengaluru and will be creating employment for over 2,500 people in the process," said Anant Goel, Co-Founder, Milkbasket.

The company is planning to hire people to support the operations and growth in Bengaluru.

The hiring will be made for ground operations as well as the corporate office.

The startup has 1,500 employees in Delhi-NCR and Bengaluru and has raised close to $16 million from Mayfield Advisors, Beenext, Kalaari Capital, Unilever Ventures, Lenovo and Blume Ventures.

पराग मिल्क फूड लिमिडेट ने गोवर्धन ब्रांड के तहत दो भारतीय रेडी-टू-ईट मिठाई गुलाब जामुन और रसगुल्ला लॉन्च की हैं। ये मिठाइयां शुद्ध गाय के घी और दूध से निर्मित हैं। फिलहाल गोवर्धन गुलाब जामुन और गोवर्धन रसगुल्ला एक किलोग्राम के पैक में उपलब्ध हैं जिनकी कीमत 190 रुपए है।

इस नए लॉन्च के साथ कंपनी ने भारतीय मिठाई कैटेगरी में प्रवेश कर लिया है जो करीब सात से आठ हजार रुपए का बाजार है। पराग मिल्क फूड, रेडी-टू-ईट भारतीय मिठाइयों के सेगमेंट में अपने प्रवेश के साथ वैल्यु एडेड प्रोडक्ट्स कैटेगरी को और मजबूत बनाने की योजना बना रहा है।

पराग मिल्क फूड लिमिटेड के चेयरमैन देवेंद्र शाह ने कहा, 'भारतीय मिठाइयों का बाजार काफी बड़ा है। इस कैटेगरी में गुलाब जामुन और रसगुल्ला दो सबसे प्रसिद्ध भारतीय मिठाइयां हैं जो देश के लगभग हर स्टोर में मिलती हैं।'

उन्होंने आगे कहा, 'हमने ये प्रोडक्ट्स छोटे स्केल पर निकाले हैं जिसे हम धीरे-धीरे पूरे भारत में बढ़ाएंगे। हालांकि हमने अभी भारतीय मिठाइयों में सबसे ज्यादा प्रचलित गुलाब जामुन और रसगुल्ला की ही रेंज निकाली है लेकिन भविष्य में हम मायसोर पाक, शाही गुलाब जामुन आदि लॉन्च करने की योजना भी बना रहे हैं। हम बाजार में मिठाइयों की इस रेंज को लाने के लिए बहुत उत्सुक हैं।'

Parag Milk Foods Ltd has unveiled two ready-to-eat Indian desserts, namely Gulab Jamun and Rasgulla, under the brand Gowardhan. These desserts are made from pure cow milk and cow ghee. Presently, Gowardhan Gulab Jamun and Gowardhan Rasgulla are available in 1kg pack sizes, priced at Rs 190.

With this launch, the company has entered into the Indian sweets category, which is worth approximately Rs 7,000-8,000 crore. Parag Milk Foods is planning to further strengthen its value added products (VAP) category with its entry into the ready-to-eat Indian desserts segment.

Devendra Shah, Chairman of Parag Milk Foods Ltd, said, "The market for the Indian sweets category is extremely large. In this category, Gulab Jamun and Rasgulla are the two most popular Indian desserts, with nearly every store in the country serving some version of them."

"We have introduced these two products on a small scale, which we will gradually scale up across India. Although we have started by introducing the regular range in Indian sweets that consists of Gulab Jamun and Rasgulla, we plan to introduce Mysore Pak, Shahi Gulab Jamun, etc., in the future. We are excited to bring this range of desserts to the market," he further stated.

Daily top-up grocery player Milkbasket, has announced an additional infusion of $7 million to its Series-A funding, led by Mayfield Advisors, a US-based venture capital firm, with participation from existing investors.

The latest round brings Milkbasket's total Series-A funding to $14 million.

“We are excited to support the Milkbasket team in chasing their impressive mission of making grocery delivery as hassle free as possible. Regarded as the future of the industry, The company’s pioneering model has reinvented everyday lives of its customers.” said Nikhil Khattau, MD, Mayfield India

Milkbasket is recording 15 per cent growth month-on-month and has raised a Series-A investment led by Kalaari Capital in May.

In January, it announced a pre-Series-A investment by Unilever Ventures, Blume Ventures and Lenovo Capital.

“The backing from Mayfield validates our model and acknowledges the scale of our ambition. The funding will accelerate our goal of making Milkbasket synonymous with grocery delivery, nationally. The funds will also enable us in investing adequately in developing the technology and hiring for the next growth phase,” added Anant Goel, Founder, Milkbasket.

Parag Milk Foods Ltd., one of the largest private dairy company in India, has collaborated with ColoPlus AB, a Swedish research organization to launch its first 100 percent natural immunity booster called GO Colo Power in India. This strategic collaboration enables Parag Milk Foods to strengthen its offerings in the health and nutrition segment, which further reiterates its leadership in the value added products category.

Made from the first milk of cows just after calving, Colo Power is enriched with immunoglobulins and probiotics and has the same goodness equivalent to that of a mother’s first milk. Go Colo Power, a product in powder form, which can be mixed into porridge, contains high colostrum values which helps fight diseases like AIDS, diarrhea, etc that reduce the body’s immuno-defensive powers. The use of colostrum helps to build long-term immunity and improves and strengthens the digestive system.

Highlighting the need for Colo Power, Conny Hagman, CEO, ColoPlus said, “Colostrum is rich in essential immunoglobulins and nutrients that helps in increasing the resistance to diseases. The health benefits of this milk is not just limited to the new borns but is beneficial for people of all age groups. Earlier you could only get Colostrum in a capsule or pure powder form, which could not be completely absorbed completely by the body; but now with Colo Power, one can get the same benefits of Colostrum in food form, as a porridge, and with our patented technology, it provides much higher absorption. Colo Power is also good in taste, easier to prepare and has a longer shelf life. Swedish Embassy was instrumental in linking us with a high quality and reputed partner like PMFL that aims to provide health benefits to the citizens of India, a key step towards improving public health.”

Elaborating on the association, Devendra Shah, Chairman, Parag Milk Foods said, “The launch Colo Power by Parag Milk Foods is the reflection of responsibility of giving back to the society. We are the first company to create a unique colostrum-based health food, which provides long-term immunity not just to ill people but also helps to build preventive immunity for one’s lifetime with its high immunoglobulin content. We have established an elaborate mechanism to collect colostrum milk from dairy farmers which not only provides an avenue to use the first milk which otherwise would have gone waste, but also provides them much higher returns. This high value colostrum is then converted into Go Colo Power by using the patented technology. It is scientifically proven that the colostrum present in Colo Power helps in increasing the immunity of patients suffering from Cancer, Diarrhea, apart from building one’s long-term immunity.”

Colo Power is available in 200 gms and is priced at Rs 750. The product will be available in e-commerce platforms and all metro cities.

Strong development projections given by the Parag Milk management during the experts meet sparked a rally in the shares of dairy product manufacturers on Monday. Analysts are optimistic on the sector, with expectations of a normal monsoon and fall in milk procurement prices.

Shares of Parag Milk Food gained 9 per cent to Rs 337 while Umang Dairies and Prabhat Dairy gained 5 per cent each to close at Rs 90.75 and Rs 179, respectively. Tasty Dairy Specialities gained 14 per cent to Rs 49.

The Parag management revealed its Vision 2020 wherein it plans to achieve revenue of Rs 2,700-3,000 crore by FY 2020, implying a CAGR of 18-24 per cent over the period FY 2018-20.

“India’s organised dairy sector is up for accelerated growth with present share at just around 20 per cent of total dairy sector, given higher disposable incomes and low penetration of value added products (VAP),” said Mehul Mehta, senior analyst, Sharekhan.

With the Parag management significantly increasing guidance for revenue growth and operating profit margin, analysts increased their earnings estimates and expect the company’s bottom-line to register 40 per cent CAGR over FY 2018-20, led by higher contribution to revenue from value-added products.

“Rising innovation agenda, scaling up presence in health & nutrition segment, and increasing the distribution network along with a professional management team would provide greater visibility to Parag’s earnings trajectory going forward,” said Harit Kapoor, analyst, IDFC Securities.

“Further, improved profitability and minimal capex requirement will drive positive free cash flow and uptick in overall return profile, thereby driving re-rating in the stock” he added.

The stock of Parag Milk Foods has been range bound for the past few months. It is back on investors’ radar considering the company’s increasing share of value-added products, lower milk procurement cost and cheaper stock valuation.

Milk procurement prices have corrected by 8-10 per cent in March quarter from their peak in June 2017 quarter. Milk prices are expected to stabilise at lower levels for next few months considering lower fodder prices as well as decline in global SMP prices.

Analysts say they expect lower input prices to aid margin expansion of dairy firms. The trend may persist given the prognosis of a normal rainfall in the current year as well.

“With monsoons expected to be normal and the government push likely in the next few months, the firms in the dairy products and other agri related firms would get a lot more business opportunities than in the previous few years,” industry body ASSOCHAM said recently.

Parag Milk Foods is expecting a dip in revenue growth to up to 15 per cent per annum over the next three years, and will focus on dairy FMCG products in this period.

The company's revenue grew by 17 per cent in the last three years to reach Rs 1,730.7 crore in FY17 and is looking at a CAGR (compounded annual growth rate) of 13-15 per cent in the next three years.

The company is India's largest private dairy with a milk processing capacity of 2 million litres per day.

The future growth will come mainly from traditional products like liquid milk, ghee, paneer and curd, which are expected to grow by 15 per cent, while modern products like UHT milk, flavoured milk, cheese and whey powder may grow by 26 per cent by 2020.

Parag Food plans to increase operation efficiencies by leveraging in-house technological, R&D capabilities and strengthening brands. It is looking at focusing on introducing healthy and nutritious products.

The Union government implemented the Central Scheme National Dairy Plan Phase 1 during 2012-17 to improve productivity of dairy cooperatives through several input activities.

Going ahead, India's milk production is expected to outperform global production and grow at similar 4.2 per cent CAGR going ahead to 185 million MT per annum/507mn litres per day and surpass EU to emerge the largest dairy producer by 2020. It is expected to improve in value terms at 15 per cent CAGR to Rs 9.4 trillion over FY16-20.

The company is betting big on its 100 per cent vegetarian protein product as the country's sports nutrition segment is estimated at Rs 1,500 crore and given the increase in number of health clubs and fitness centres.

Parag Milk Foods announced it has tied up with TajSATS Air Catering for supply of cow milk-based products on international flights.

Parag Milk Foods Chairman Devendra Shah said “We have entered into an MoU for the first time with TajSATS to supply our products on international flights. This is just the beginning of the relationship and the company is looking to strengthen this partnership in the months to come. Although we already export our products to several countries, this is another step to introduce our products to international customers”.

Parag Milk sells its products under the brand "Gowardhan" and "Go". Shares of the company rose 8.33 per cent to Rs 264.70 a piece on BSE.

Indian dairy companies have taken a hit on their margins due to the fall in international prices of skimmed milk powder (SMP) and doubling of domestic tax on ghee. Dairies have cut milk procurement prices 10-22 per cent in the past few months.

Prakash Kutwal, secretary, Doodh Utpadak Va Prakriya Vyavasayik Kalyankari Sangh (milk producers and processors’ welfare federation) said “SMP price has declined from Rs 260 per kg to Rs 120 per kg in the international market in the last 3-4 months. Maharashtra produces about 30 million litres of milk every day, of which only about eight million is used as liquid pouched milk. The bulk of milk procured is used for making various dairy products such as butter, SMP, ghee, cheese, curd, etc. Maharashtra’s milk farmers are more vulnerable to international price fluctuations since state is the leader in export of milk products. Sale of ghee has fallen substantially as the price has increased from Rs 30 per kg of smaller brands to Rs 55 per kg in case of national brands. Maharashtra government increased the procurement price of cow’s milk to Rs 27 per litre for 3.5 per cent fat and 8.5 per cent SNF (solid not fat), up about 12 per cent”.

The tax on ghee increased to 12 per cent under GST from 6 per cent before the implementation of the GST regime.

The Q1 profit margins for the dairy industry this year have seen a sharp decline as compared to that of Q1FY17. While Chandrababu Naidu-promoted Heritage Foods posted net profit of Rs 17.11 crore last year, this year, it has only been Rs 10.37 crore. Similarly, Kwality Ltd reported a sharp decline in its June quarter profits to Rs 27.88 crore, from Rs 42.27 crore a year ago, while Umang Dairies posted a loss of Rs 2.90 crore compared to a Rs 1.48 crore profit. Interestingly, net sales of both companies jumped by 7 per cent and 11 per cent, respectively.

Companies with increased focus on value-added products, such as Parag Milk Foods and Hatsun Agro Products, however, have maintained their profit margins in the June quarter despite interruption in milk supply due to the farmers' mass protest and roadblock. While organised sector players are adjusting increase in compliance cost of GST (goods and services tax), rollout without an increase in product prices, unorganised sector players are considering raising milk prices by Rs 2-4 a kg to pass on the increased cost burden to consumers. "

"Gross margins of Heritage Foods were impacted by an increase in milk procurement cost which the company was unable to pass on to the consumers completely. EBITDA margins at 4.4 per cent was also hit by loss making Reliance Dairy business and increase in other expenditure which grew by 37.8 per cent yoy a function of higher branding expenditure. However, the company is confident with initiatives taken on cost optimization and expectation of lower milk procurement cost post monsoons. We expect the recovery to be gradual," said Dhaval Mehta, an analyst with Emkay Global Financial Services Ltd.

According to R S Sodhi, Managing Director, Gujarat Cooperative Milk Marketing Federation (GCMMF) which sales Amul brand dairy products, "Milk prices had declined drastically over the last one year. Milk prices, therefore are recovering. Prices are likely to remain stabilised now."

"We intend to increase our direct procurement to over 50% over the next 3-4 years. This would accelerate the transition towards B2C by enabling faster shifting of our product mix towards consumer products, primarily fresh milk and value-added products. With our persistent focus on B2C segment, strong position in north markets, and planned product rollouts of value-added products, we shall continue to witness strong growth in the forthcoming years. We believe favourable demographics such as rising disposable income and changing consumer lifestyle would further support our growth story," said Nawal Sharma, president & head business transformation, Kwality Ltd. 

Shares of Parag Milk Foods and KMG Milk Food gained up to 4 per cent in early trade after media reports that the government has banned milk, milk products and confectionary items from China for one year.

At 11:18 hours IST, Parag Milk Foods was trading 2.18 per cent up at Rs 222.80. The scrip opened at Rs 219.85 and touched a high and low Rs 227.10 and Rs 218.35, respectively, in trade so far. Benchmark BSE Sensex was up over 200 points, or 0.66 per cent, at 31,490. KMG Milk Foods was trading 3.76 per cent up at Rs 26.20. 

For the quarter ended March 31, 2017, Parag Milk Foods reported consolidated net sales of Rs 428.30 crore, up 3.38 per cent, against Rs 414.26 crore in the corresponding quarter last year. Net profit of the company jumped 86 per cent Year-on-Year to Rs 29.96 crore during the quarter under review. It had posted net profit of Rs 16.09 crore in the same quarter last year.

On the other hand, net sales of KMG Milk Foods dipped 88 per cent to Rs 0.35 crore from Rs 3.02 crore during the same quarter. Its net profit also dipped 45 per cent YoY to Rs 0.26 crore in Q4FY17 from Rs 0.48 crore in Q4FY16.

Dairy-based branded foods manufacturer and marketer Parag Milk Foods has forayed into whey protein range - Avvatar Absolute - and is eyeing 20-22 per cent market share in five years, a top official said.

Devendra Shah, Chairman, Parag Milk Foods, said, "We are entering the Rs 2,500 crore (Rs 1000 crore through organised and rest through unorganised channel) market with an initial 10 per cent market share. In one year we expect to capture 20-22 per cent market share of this premium product category."

Avvatar Absolute is claimed to be the first 100 per cent vegetarian whey protein made in India. It is made during the process of manufacturing cheese using fresh grass fed cow's milk.

"However, through e-commerce we will be available across the country," Shah said.

"We have invested Rs 110 crore in the plant for cheese and whey in Manchar in Maharashtra as we foresee huge demand from the retail consumers. Protein-based foods are becoming popular among people from all walks of life. With changing lifestyle there is growing interest of the younger generation in sports and nutrition," he said.

The manufacturing unit will initially produce 1.5-2 tonne whey and expand to 4-6 tonne in 12 months, he said.

The company is also planning to export Avvatar Absolute to all neighbouring countries.

It is mainly planning business to business marketing strategy for brand building, he said.

"We will reach out to nutrition supplement stores, pharmacies, modern retail stores and e-commerce portals for creating brand awareness and distribution," company's Chief Marketing Officer Mahesh Israni said.

He said, "Educating gym trainers and owners who are the key influencers in this category is going to be our key platform."

The Avvatar Absolute whey protein comes in three flavours - Double Chocolate, Vanilla Snow Creme and Cafe Mocha - in two sizes 2 lbs and 5 lbs.

"After establishing the brand, during our phase three expansion, which is in a couple of year, we are planning for natural extension of the product category like sports drink and energy drink," he said.

Parag Milk Foods, established in 1992, has manufacturing facilities at Manchar in Maharashtra and Palamaner in Andhra Pradesh.

Under brand 'Gowardhan', the company offers traditional products like ghee, dahi, paneer among others and under 'Go', they offer products like cheese, UHT milk and yoghurt.

Parag Milk Foods, a dairy company based in Pune, has planned to open 120-150 Gowardhan Shops by the end of FY-16.

It claims to be the second largest share of India's cheese market is available in both packages milk and milk products.

The company is palnning to convert all its existing shops in Maharshtra to uniform format to be designed under Gowardhan Shop.

Mahesh Israni, Chief Marketing Officer, Parag Milk Foods Ltd., said that it is looking forward to open these shops on franchise basis.

It has also planned to expand its existing number of brands from four to seven by the end of next year.

Israni also added, "It will not be just re-branding of the existing Gowardhan dairy whitener. We will be launching an entirely new product of a better quality than the existing one."

Parag will be launching its sixth brand in the category of whey products. "We are about to complete the setting up of a separate factory for the consumer products like protein mix powder," said Devendra Shah, chairman, Parag Milk Foods.