Parag Milk Foods Ltd will supply 10,000 litres of premium fresh cow milk per day in the Delhi-NCR market directly to customers by airlifting the product from its dairy farm near Pune, a top company official said Thursday.
Parag Milk, which posted Rs 1,950 crore turnover last fiscal, has three plants in Maharashtra, Andhra Pradesh and Haryana with a total processing capacity of 2.9 million litres per day. It sells milk and other dairy products under different brands including 'Gowardhan', 'Go', and 'Pride of Cows'.
In April last year, Parag Milk acquired Danone's manufacturing facility in Sonepat to expand its footprint in the north and northeast India. In August, it commenced commercial operations of this plant and launched the pouched cow milk in Delhi-NCR.
"We are now launching our premium milk brand 'Pride of Cows' in the Delhi-NCR market. We will sell this cow milk at Rs 120 per litre. Initially, we will supply 10,000 litres per day and in the next six months, this will increase to 20,000 litres per day," Parag Milk Foods Chairman Devendra Shah told reporters here.
The company is already selling an average of 34,000 litres of this premium cow milk directly to customers in Mumbai, Pune and Surat, he added.
The price of this premium cow milk is higher than Mumbai and Pune markets where it is selling at Rs 95 per litre because of logistics cost.
"Pride of Cows is a farm-to-home milk concept catered to the consumers who believe in leading a healthy lifestyle and consuming natural and unadulterated products," Shah said, adding the milk under this brand is sourced from its state-of-art dairy farm 'Bhagyalaxmi Dairy' consisting of about 3,000 Holstein Freisan cows.
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This farm is equipped with the latest global technology for feeding, milking and processing of fresh milk.
"The company's revenues from 'Pride of Cows' brand has grown at a CAGR of 28 per cent over FY'13-18 and it will continue to grow at this pace. NCR is the largest milk market of the country valued at around Rs 11,000 crore and with Pride of Cows, we are going one-step further in strengthening our presence in cow's milk in the region," Shah said.
Akshali Shah, Senior VP (strategy - sales and marketing), said, "As the direct consumption of fresh milk has increased, consumers have become mindful of the source of the milk they consume and the nutrient content, which has led them to invest more in premium milk...With an abundance of such consumers in Delhi NCR, we have spotted a huge opportunity for expansion in the region."