Explore Business Standard
Dairy Companies
Dairy companies are likely to witness 11-13 per cent revenue growth this financial year on strong demand, increasing share of value-added products (VAP) and higher milk prices, a report said on Monday. The profitability will improve by 20-30 basis points (bps), aided by better realisations, healthy milk supply keeping procurement prices in check and a favourable shift towards VAP, which fetches higher margins, Crisil Ratings said in a report. The rating agency further stated that to capitalise on the healthy growth momentum, companies will ramp up capital expenditure (capex) by 10 per cent this fiscal. A sizable portion of this capex will be to enhance capacities for VAP, a segment that continues to outpace the traditional liquid milk category, it added. Despite the higher capex, credit profiles of dairy companies are expected to remain stable because of improving cash flows and strong balance sheets, the report said. "The VAP segment is expected to clock a strong 16-18 per cent .
The government on Tuesday decided to set up three new multi-state cooperative societies for the dairy sector to focus on animal feed, dung management and circular use of dead cattle residues. Cooperation Minister Amit Shah, who chaired a meeting on sustainability and circularity in the cooperative dairy sector, said the goal should be to create a sustainable dairy ecosystem that promotes a circular economy. "As we move towards White Revolution 2.0, our goal should not only be to expand dairy cooperatives and make them efficient and effective but also to create an ecosystem of dairy which is sustainable," Shah said. According to an official statement, the first society will work on animal feed production, disease control and artificial insemination, the second will develop models of dung management, and the third will promote circular use of dead cattle residues. Shah emphasised that carbon credit benefits should directly reach farmers through scientific models. He highlighted the n
The West Assam Milk Producers' Co-operative Union Ltd (WAMUL), which operates under the brand Purabi Dairy, on Sunday said it has joined hands with the National Dairy Development Board (NDDB) to double production to 3 lakh litres per day. The two organisations signed a Memorandum of Understanding (MoU) at the recent 'Advantage Assam 2.0' business summit for the Guwahati-based milk producer's expansion exercise. "The expansion project, estimated at Rs 100 crore, will increase Purabi Dairy's Panjabari plant's capacity from 1.5 LLPD to 3 LLPD, ensuring a steady supply of quality dairy products to meet growing consumer demand," WAMUL said in a statement. It will also see an increase in fermented milk product capacity from 20 metric tonnes per day (MTPD) to 50 MTPD and the establishment of a new ice cream plant with a capacity of 20 TLPD. Along with enhancing the supply chain, this will also ensure better returns for dairy farmers through value-added products, the company said. In July
Mother Dairy is likely to achieve 15 per cent growth in turnover this fiscal to more than Rs 17,000 crore on strong demand for its food products and expansion of production capacity as well as distribution network. Besides fresh milk and other dairy products, Mother Dairy sells edible oils under 'Dhara' brand and horticulture (fresh and frozen fruits & vegetables) items under 'Safal' brand. It is the leading milk supplier in Delhi-NCR. In an interview with PTI, Mother Dairy Managing Director Manish Bandlish noted that fiscal year 2024-25 marks a momentous milestone for the company as it completed 50th year of inception. "We are poised to conclude the year with an impressive growth of approximately 15 per cent, achieving a turnover exceeding Rs 17,000 crore," Bandlish said. In 2023-24, Mother Dairy had achieved a turnover of Rs 15,037 crore. Dairy business contributed about 75 per cent to the total annual revenue. "This strong performance is a testament to our strategic ...
The Madhya Pradesh government has given its consent to hand over for the next five years the operations of the Madhya Pradesh State Cooperative Dairy Federation and the milk unions affiliated to it to the National Dairy Development Board (NDDB). This decision was made during a meeting chaired by Chief Minister Mohan Yadav on Tuesday here in Bhopal. The opposition Congress, however, resisted the move, claiming that it was Gujarat co-operative dairy Amul's "backdoor" attempts to take over MP's state-run milk brand Sanchi. "During the meeting, it was agreed that the Madhya Pradesh State Cooperative Dairy Federation and its associated milk unions will be managed and operated by the NDDB for the next five years. For this, necessary approvals will be obtained and legal action will be taken," an official release said. CM Yadav said that there is a consensus on giving responsibility to the NDDB to increase the income of farmers and cattle keepers by making the state a leader in milk ...
The Karnataka Milk Federation (KMF) on Tuesday announced a hike in milk prices with effect from June 26, but it also said it would be enhancing the quantity of milk in its half and one litre packets by 50 ml. This comes days after the Karnataka government hiked sales tax on fuel, following which petrol prices have gone up by Rs 3 per litre and diesel by Rs 3.5 per litre in the state. "As it is the current harvest season, the storage of milk in all district milk unions is increasing every day and the current storage is close to one crore litres. In this background, the price of each packet is being increased by Rs 2 with an additional 50 ml of milk being given to the consumers only for each half liter (500ML) and one liter (1000ML) packets," KMF said in a statement. Currently, the 500 ml toned milk packet of Nandini costs Rs 22. With this hike, the 550 ml packet will now cost Rs 24. Similarly, the 1000 ml (1 litre) packet was priced at Rs 42 and will now be sold as 1,050 ml at Rs ...
Prime Minister Narendra Modi on Thursday gave the target of making GCMMF, which owns Amul brand, the number one dairy company in the world from its current eighth position. The PM was speaking at the golden jubilee celebration of the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets its products under the brand 'Amul', at the Narendra Modi stadium here. "While the global dairy sector is developing at 2 per cent per annum, India's dairy sector is developing at 6 per cent," Modi said. "Today Amul (GCMMF) is the eight largest dairy company in the world, your target is to make it number one, the government will give all its support. This is Modi's guarantee," he said. Addressing thousands of members of the co-operative dairy union who had come from all over the state, Modi said after India's independence many brands were created, but none of them is like 'Amul'. PM Modi also said that the contribution of women is paramount in the development of the country's dairy .