Thacker plans integrated dairy complex

To invest Rs 45 crore, roll out several new products.

Kolkata-based Thacker Dairy, which sells 'Farm Fresh' milk and 'Cold Rush' icecreams, is investing close to Rs 45 crore in setting up an integrated cattle-shed where all activities would be managed and monitored through computer networking systems to ensure hygienic conditions.

The idea is to get into backward integration and start production by 2009.

The company is in the process of finalising land within West Bengal.

It is also looking at acquiring sick units and revamping them to suit its needs.

"As we plan to get into backward integration, we are scouting for at least 50 acre for setting up the computerised cattle-shed that would house at least 3,000 cows. We would have our own computerised cattle-shed where all activities would be managed under extremely hygienic conditions," said Nishit Thacker, director of the company.

At present, the company is sourcing part of its milk from Visakha Dairy of Andhra Pradesh as well as from 25,000 farmers through four chilling centres across West Bengal.

In products, Thacker offers five types of milk - buffalo milk, cow milk, toned milk, double toned milk, and skimmed milk - under its 'Farm Fresh' brand.

It also offers 'gawa Ghee' and 'lassi' under the 'Farm Fresh' brand.

This year, the company is also looking at rolling out paneer, dahi, flavoured milk and fresh cream.

"The idea is to expand our product basket to offer more under one roof. Also, our USP is to provide products that go down well with the consumers' preferences and taste as dairy is an extremely taste-driven market," said Thacker.

For example, flavoured milk and flavoured dahi need a lot of value-additions in the face of competition and would therefore need to be marketed as thirst-quenchers as well products that encourage impulse-buying.

"Therefore understanding the local taste is most important, coupled with value-additions in terms of different flavours," explained Thacker.

"With newer product launches, we are also planning to get into organised retailing," informed Dinesh Thacker, managing director of the company.

It plans to set up 25 stores in Kolkata and a few in suburbs in and around Kolkata in the next three months.

Christened 'Thacker's Shoppee, these stores would be run on franchisee model and would cover 300 sq ft on an average per store. These would be set up only in residential areas in locations like Salt Lake, Bhowanipore, Ballygunge, Eastern Metropolitan Bypass and essentially in areas where new residential complexes are coming up.

Thacker's Shoppee would house all of Thacker's dairy products as well as its non-dairy products - chips, dry fruits, chutneys, pickles, and cashew nuts - that are sold under the 'Thacker's brand.

"Our non-dairy products are manufactured in three of our factories in Kolkata, and so far were primarily for exports. Once we have our stores in place, all our products would be available under one roof," Dinesh Thacker said.

The company is also planning to increase capacity of its icrecream production from 7,000 litres per day at present to 10,000 litres per day in the next 2 months with an estimated investment of Rs 50 lakhs. The icecreams are sold under the 'Cold Rush' brand.

The company is also currently producing 1 lakh litres of milk per day that it sells in pouches under the 'Farm Fresh' brand.

"We are a Rs 300 crore company, with the dairy business contributing close to Rs 60 crore. With expansion of our product basket we are looking at atleast a 20 per cent growth year on year," informed Dinesh Thacker. The company is also looking at strengthening its institutional sales as it expects 25 per cent of its overall turnover to come from this segment.

"This would also mean tailor-making icecreams and other dairy products according to the requirements of the hotel or restaurant that we would cater to," said Nishit Thacker.

Among the hotels, Thacker Dairy products are at present used at the Taj, Park, Hyatt, ITC and Oberoi hotels in Kolkata, claimed Dinesh Thacker.