“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,” Devendra Shah, Chairman, Parag Milk Foods was quoted by PTI as saying.
According to a PTI report: The addition of the new facility will add 6-7 percent to the company’s overall topline 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 was further quoted by PTI as saying.
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 strenghten 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 told PTI. The plant is spread across 5,500 square metre 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 tonne.
“We aim to educate farmers on best practises and help enhance their income. Initially we have associated with over 2,000 farmers (to procure cows milk) and we will keep on adding to these numbers going forward,” he was quoted by PTI as saying.
In the coming months, the company is planning to expand the new manufacturing facility by installing processing units for pouch milk, flavoured milk, pouch butter milk, cup curd, misthi dahi as well as expand the existing yoghurt facility.