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Mumbai-based dairy products manufacturer Parag Milk Foods Pvt Ltd is planning to increase its turnover to around Rs 2,400 crore in 2015-16, up from the current around Rs 1,500 crore.
The company, which today launched its buttermilk brand Go Buttermilk, said, it would primarily focus on expanding its distribution network in the south this year.
Currently, around 80 per cent of the company’s around Rs 1,500 crore turnover comes from value-added products, and 20 per cent from fresh milk and dairy products. Its flagship products Go Cheese and Govardhan Ghee had contributed around Rs 700-750 crore to its total turnover, said Devendra Shah, chairman of Parag Milk Foods.
Speaking to reporters after the launch of its products in the region, he said, “We want to see growth in value-added products. In terms of market, this year our focus is primarily to expand distribution in south India.”
Led by new product launches, he expects exports to contribute 20 per cent of its total business, up from 10 per cent in the last year.
According to earlier reports, the company, which had raised around Rs 190 crore from private equity investors Motilal Oswal Private Equity, IDFC and IFC (which was a debt financing) starting from 2010, has been looking for raising funds through private equity and also through initial public offering. However, Shah refused to comment on the fund-raising plans.
On the export market for skimmed milk category, he said the market had been slow in the recent past, and the company was expecting the market to return to growth in two-three months from now.
The current capacity utilisation for the company is around 80 per cent for milk products. For cheese, it is utilising almost the whole capacity, and would have to look for capacity expansion.
