You are here » Home » Companies » Company Overview » Parag Milk Foods Ltd

Parag Milk Foods Ltd.

BSE: 539889 Sector: Agri and agri inputs
NSE: PARAGMILK ISIN Code: INE883N01014
BSE 12:39 | 30 Jun 75.30 -0.90
(-1.18%)
OPEN

77.05

HIGH

77.05

LOW

74.75

NSE 12:29 | 30 Jun 75.10 -0.85
(-1.12%)
OPEN

75.95

HIGH

76.70

LOW

74.70

OPEN 77.05
PREVIOUS CLOSE 76.20
VOLUME 8723
52-Week high 159.85
52-Week low 69.00
P/E 14.26
Mkt Cap.(Rs cr) 718
Buy Price 75.20
Buy Qty 200.00
Sell Price 75.35
Sell Qty 29.00
OPEN 77.05
CLOSE 76.20
VOLUME 8723
52-Week high 159.85
52-Week low 69.00
P/E 14.26
Mkt Cap.(Rs cr) 718
Buy Price 75.20
Buy Qty 200.00
Sell Price 75.35
Sell Qty 29.00

Parag Milk Foods Ltd. (PARAGMILK) - Chairman Speech

Company chairman speech

Building blocks in place; geared for growth

Dear Shareholders

The last year has been a true litmus test for all of us. It pushed us to extremes andmade us reimage lives and businesses to prepare for the next normal. It was a year ofcare compassion and determination.

Unlike the other crises in the world which have been related to financial markets thisone has been much unknown and unaware and the world was taken by surprise with the speedand vastness of this sudden pandemic with health and nourishment taking the centre stagefor all we do to live.

The response to this sudden event by the scientific community was swift and currentfast paced vaccination is a positive sign. We hope that we all together come out of thisWorld's worst health crisis.

On the business front it has been a time of significant upheaval and a test ofresilience that strikes once in a century. Yet it led us to adapt re-orient andaccelerate learning while keeping the safety of our employees and business partners atthe forefront.

In these difficult times we stood committed towards our - Farmers as this uncertainty& lockdowns resulted in demand destruction posing a threat to their survival. At PMFLwe mounted a rapid response in order to ease the farmers' worries and extended support byincreasing our procurement at the fair market price. During the year on an average ourmilk procurement increased by 30-35%. We firmly believe that this solidarity with farmersand trust will go a long way in firming our association with this most critical part ofour ecosystem.

While the pandemic impacted our financial performance we continued our operations withregulatory approvals even during the lockdown phase being an essential service provider.We also ensured that the health and safety of our employees at our plants was notcompromised. We implemented standard operating procedures to maintain safety and hygieneat workplaces.

We continued to clock healthy double digit growth in our core consumer value addedcategories. On the flip side the demand from hotels restaurants and catering (HoReCa)segment was severely affected. Further due to lockdown and related restrictions ourfresh milk and commodity business also suffered impacting our overall revenueperformance.

Milk prices continued to display their upward journey impacting our margins andprofitability. After peaking in Q4FY21 the prices have softened and stabilized in thelast few months.

During the year we continued our cost rationalisaiton efforts to minimise the impacton the Company's profitability. We also looked at adapting our distribution model andsupply chain management systems to suit the current situation and prepare for the newnormal

Consumer centricity

At strategic levels we have been evaluating our process to remove bottlenecksstrengthen brand image and de-risk business to realise better value for our consumers andbusiness. As part of our plan we are building new products capacities and marketskeeping consumers and their evolving needs at the core.

Wholesome living is an evolving idea and catching up attention of people especiallyyounger generation. It is this evolving idea that has kept us busy and would define ParagMilk Foods of future.

During the year we focused on strengthening our brands -

"We continued to clock healthy double digit growth in our core consumer valueadded categories. On the flip side the demand from hotels restaurants and catering(HoReCa) segment was severely affected. Further due to lockdown and related restrictionsour fresh milk and commodity business also suffered impacting our overall revenueperformance."

Gowardhan Ghee Gowardhan Paneer Go Cheese and Avvatar - Whey protein. Ourconcentrated and single-minded approach on putting muscle on our key chosen categoriesenabled us to achieve highest ghee sales in summer and cheese sales in winterrespectively.

Living by our tagline "Ideas for a new day" - we continued to bringinnovative products for our consumers. We expanded our premium Pride of Cows portfolio bylaunching Pride of Cows- single origin ghee Pride of Cows - Curd and Pride of Cowspremium Fat free milk to cater to discerning consumers focused towards health andnutrition. We are extremely delighted with the initial response and would continue toexcite our consumers with our new bouquet of launches ahead. This year with long shelfproducts like Ghee in our arsenal we embarked our journey of taking Pride of Cows frommetro centric subscription led brand to a national on the shelf brand

Strengthened balance sheet- All geared towards growth

In the month of May 2021 we raised funds through preferential allotment of equityshares FCCBs/Warrants and other Instruments. This will help reduce the overall debtburden. The funds will also be utilized for meeting our capex requirements over the next 2years and would free up our cash flows during that period.

Additionally the proceeds shall be utilised to enhance working capital for futuregrowth. We at PMFL ensure that this shall provide enough firepower to bolster the balancesheet and propel the company for exciting growth ahead.

Sustainable Company

Keeping technology and innovation at the core our Company has been working on creatingvalue-added products for sustainable living.

As part of our ESG efforts we are looking at alternate packing materials for ourproducts and also promoting the practice of reuse recycle and reduce. In a bid to gogreen with reduced carbon footprint we are working on renewable energy better wastewatermanagement & reduction of carbon emissions along-with areas like lower usage ofchemical fertilisers antibiotics etc.

Way forward

While the second wave of COVID-19 and newer variants of the deadly virus continue toremain a concern for the world our continued emphasis towards empathy and businesscontinuity will remain the guiding force for growth.

We remain focused on innovation and development of newer products backed by in-depthresearch as we look at the current times as hidden opportunities.

We have focused on putting in place the right building blocks for the future. Theseinclude identifying our strategic priorities and categories enhancing our distributionand product portfolio and driving digital to name a few. With these building blocks inplace PMFL is well positioned for accelerated growth. Going forward building on thefoundation we have and executing on our strategies will be critical for consistent valuecreation for our shareholders.

Yours faithfully

Mr. Devendra Shah Chairman

.