Kwality Ltd gets branding push; clears legal hurdle

Delhi-based Kwality Ltd is making a strategic business shift from business-to-business to business-to-consumer category

Dairy products player Kwality Ltd, which has plans to invest Rs 500 crore for expansion, today said it has successfully come out of a branding-related legal dispute after Graviss holding withdrew its case on May 31.

"The case was pending before Delhi High Court for a short span of time. We have successfully come out of the legal suit with Graviss withdrawing the case on 31st May, 2016. It is a very positive development in line with our expectations and it is business as usual for us," Kwality Ltd President and Head Business Transformation Nawal Sharma said in a BSE filing.

The company is making a strategic business shift from business-to-business (B2B) to business-to-consumer (B2C) category with plans to roll out various high margin value-added dairy products, he said.

Kwality has plans to invest close to Rs 500 crore to expand production capacities to increase the share of retail sales to 70% from current 30% of its turnover over a period of time, he added.

The company has roped in Bollywood actor Akshay Kumar, as its brand ambassador to boost its presence in the retail segment. It has also engaged Ernst and Young as its IT transformation partner to facilitate transition from a B2B to a B2C company.

Delhi-based Kwality Ltd has six milk processing units 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.

It is in the process of launching value-added products such as flavoured milk, numerous variants of cheese and table butter, among others.