Delhi Milk Scheme makes only 2nd profit in 50-odd years

FY15 profit at Rs 6.65 cr; In FY13, it made its first cash surplus since inception in 1959

Government-owned Delhi Milk Scheme (DMS) has made only its second profit in five-odd decades of existence. It has reported a net profit of Rs 6.65 crore for 2014-15.

According to what it told the Union ministry of agriculture, its parent, sales were Rs 402 crore in 2014-15, about 24 per cent higher than the previous year.

In 2013-14, there was a net loss of Rs 15.9 crore. A year before that, 2012-13, was the first cash surplus since inception in 1959, of a little over Rs 8 crore. In comparison, there was a net deficit of Rs 28.3 crore in 2011-12.

"Higher production and sales, coupled with procurement of milk and condensed skimmed milk at the most competitive price, and lesser dependence on commodities like skimmed milk powder and white butter, has primarily helped improve the bottom line," B S Beniwal, general manager, told Business Standard.

He said the loss in 2013-14, after its first year of profit, was because of a low purchase price and the ensuing reluctance of farmers to sell to them (this year, they'll buy at Rs 34.50 a litre). The scheme usually has to abide by the purchase and sale price fixed by other cooperatives; it has barely five per cent of the pouch milk market in this city.

Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns the iconic Amul brand, sells 2.4 million litres daily in Delhi. DMS' output is barely 275,000 litres a day, well below its 500,000 litre a day capacity. It has 1,298 outlets, including some in the suburbs. And, about 800 employees.