 "Dairy player Kwality plans to invest Rs 500 cr to increase focus on retail")
Dairy company Kwality Ltd today said its new unit in Haryana, which has been set up mainly for manufacturing of value-added products like flavoured milk, has started commercial production.
The unit, when fully operational, will have milk handling capacity of 0.9 million litres per day primarily for manufacturing value-added products with total capital outlay of about Rs 400 crore, the company said in a BSE filing.
With this unit, cumulative milk processing capacity of Kwality would reach 4.3 million litres per day across its six plants, it said.
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Kwality Ltd President and Head, Business Transformation, Nawal Sharma said: "This is a significant development, as we continue to shift towards B2C by shifting our product mix towards consumer-oriented products, primarily fresh and value-added products."
"We are moving in the right direction in sync with our business plans towards new orbit of growth. This would enhance our profitability, strengthen our balance sheet and cash flows in the coming years," he added.
The company is strategically shifting its business model from B2B to B2C by adopting a structured holistic approach.
The Delhi-based Kwality Ltd's milk processing units are located in Uttar Pradesh, Haryana and Rajasthan.
The company sells dairy products such as milk (bulk, pouched and tetra-packs), ghee, curd and skimmed milk powder.
The shares of the company rose by 1.49 per cent to Rs 140 a piece at 1300 hours on the BSE today.
