Private sector dairy products maker Parag Milk Foods Limited on Wednesday launched fresh cream under its brand name Go. The company, having an annual turnover of about Rs. 1,440 crore claims to be the only national player in the cow milk-made fresh cream segment after the launch.
“There is a big potential for fresh cream in India. Currently, the organised fresh cream market is estimated at Rs. 1,270 crore, which is only 20 per cent of the overall market size. So the 80 per cent unorganised market is still to be tapped,” said Devendra Shah, chairman, Parag Milk Foods Ltd, at the launch of the new consumer and bulk pack of the product. The 200 ml consumer pack is priced at Rs. 45 and bulk pack of 1 litre is priced at Rs. 185.
The fresh cream segment in India has grown at the rate of 17 per cent during 2007-14 period. The northern region remains the biggest market for fresh cream consumption with 37 per cent share in total consumption, Western and Central region hold 26 per cent share in total consumption.
The company has recently filed the draft red herring prospectus with the market regulator for its initial public offer. However, Shah did not divulge the details of the size of the IPO and its objects. But the company is planning to expand its existing capacity in the cheese making and other milk products after the IPO.
Currently, Parag Milk has installed cheese capacity of 40 tonnes per day, which will be increased to meet the rapidly growing demand of cheese in the urban centres.
“Cheese industry is estimated at 29,000 tonnes per annum in India with a turnover of around Rs. 850 crore. This is growing by 25 per cent per annum. Maharashtra is the largest consuming state with about 30 per cent share in the country’s total consumption followed by Gujarat at 22 per cent,” said Shah.
“We will need to increase cheese capacity, but that will be done after the IPO,” he said.
Source: Hindu Business Line
