Parag Milk Foods gains on securing PLI nod for Category 1 of Mozzarella Cheese

Parag Milk Foods advanced 2.11% to Rs 118.75 after the company received an approval for the application made under the Product Linked Incentive (PLI) scheme - Category 1 of Mozzarella Cheese segment.

Parag Milk Foods, a manufacturer and marketer of dairy-based branded products in India, through the PLI application on 15 June 2021, had received an approved from the Competent Authority for sales-based incentive for mozzarella cheese product for the period 2021- 27, subject to the condition of fulfilment of all the required criteria.

The PLI scheme is based on the strategy of 'Atmanirbhar Bharat - Strategies for enhancing India's manufacturing capabilities and enhancing exports in ten sectors', which had been approved by the Union Cabinet on 24 February 2021.

The PLI scheme for the food processing industry, is to be implemented during 2021-22 to 2026-27 with an outlay of Rs 10,900 crore, was approved by the Cabinet on 31 March 2021. The scheme is essentially meant for Indian companies and subsidiaries of MNCs operating in India with minimum sales of food products manufactured in India, it added.

The scheme will encourage investment in four food segments: Ready to Cook/ Ready to Eat (RTC/RTE), including millet-based foods, processed fruits and vegetables, marine products, mozzarella cheese.

According to the Government, the objective of the scheme is to support the creation of global food manufacturing champions; support Indian brands of value-added food products in the international markets; increase employment opportunities for off-farm jobs and ensure remunerative prices of farm produce and higher income to farmers.

Under the scheme, the maximum permissible amount is Rs 71 crore to be spread over the next six years' time frame. It would entail a minimum investment Rs 29 crore to be spread over three years time frame from FY21-23, and capacity to be increased by 10 metric tonne per day (MTPD), with a minimum CAGR of sales 15%.

Parag Milk Foods' consolidated net profit soared 43.2% to Rs 22.77 crore on a 6.8% increase in net sales to Rs 532.32 crore in Q2 FY22 over Q2 FY21.

Parag Milk Foods is engaged in manufacturing and processing of milk and milk products. The company offers a range of products, which include cheese, ghee, whey proteins, paneer, curd, yoghurt, milk products, liquid milk, milk-based beverages and milk powders.

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