Keventer Agro aims to double dairy revenue in 2 years

Keventer Agro Ltd has drawn up plans to double its dairy revenue to Rs 800 crore over the next two years, Chairman and Managing Director Mayank Jalan said Tuesday.

The city-based food and beverages company is focusing on expanding market footprint and working on branding for the dairy business under 'Metro Dairy'. The vertical accounts for 40 per cent of its topline.

"We have a strategy in place to double the dairy revenue (including ice-creams) to Rs 800 crore over the next two years," Jalan said.

It is investing Rs 282 crore to augment capacity, which would be completed by December.

"Most of the investment would be in dairy - be it fresh milk processing capacity or ice-creams," Jalan said.

Keventer Agro is looking to raise milk storage capacity to 6 lakh litres per day from 4 lakh litres, and eventually take it to 1 million litres.

Besides dairy, Jalan said he was bullish about organised banana retailing, which has potential be a major revenue churner. "We want to be the country's largest banana retailer in future and the opportunity is immense," he said.

The company said it will be foraying into a new product segment in December, but did not divulge details.

Meanwhile, Jalan did not rule out an IPO for Keventer Agro in future, but said such a step would be considered only when the company would be able to add enough value to all stakeholders on a continuous basis.

"We want to be the top player in the sector and in the markets where we operate and even in the ones where we do not. We have started foraying into eastern region markets like Odisha and Bihar," the top company official said.

Keventor Agro had raised USD 25 million from Singapore-based Mandala Capital in September 2017, with the PE firm acquiring close to 15 per cent stake in the company.

The West Bengal Cabinet had last year given its nod to divest the state government's equity in Metro Dairy to Keventer Agro.