Mumbai, Jan 21 (PTI) Parag Milk Foods is expecting adip in revenue growth to up to 15 per cent per annum over thenext three years, and will focus on dairy FMCG products inthis period.
The company's revenue grew by 17 per cent in the lastthree years to reach Rs 1,730.7 crore in FY17 and is lookingat a CAGR (compounded annual growth rate) of 13-15 per cent inthe next three years, the dairy product firm said in aninvestor presentation here.
The company is India's largest private dairy with amilk processing capacity of 2 million litres per day.
The future growth will come mainly from traditionalproducts like liquid milk, ghee, paneer and curd, which areexpected to grow by 15 per cent, while modern products likeUHT milk, flavoured milk, cheese and whey powder may grow by26 per cent by 2020, the company said.
Parag Food plans to increase operation efficiencies byleveraging in-house technological, R&D capabilities andstrengthening brands. It is looking at focusing on introducinghealthy and nutritious products.
India is expected to emerge as the largest dairyproducer by 2020, Edelweiss Securities said in a report.
The Union government implemented the Central SchemeNational Dairy Plan - Phase 1 - during 2012-17 to improveproductivity of dairy cooperatives through several inputactivities, it said.
Investments by private players in the domestic dairysector is also expected to further augment milk productivity.
Going ahead, India's milk production is expected tooutperform global production and grow at similar 4.2 per centCAGR going ahead to 185 million MT per annum/507mn litres perday and surpass EU to emerge the largest dairy producer by2020. It is expected to improve in value terms at 15 per centCAGR to Rs 9.4 trillion over FY16-20, the report said.
Commenting on capex plans, the company said, it hasraised Rs 150 crore last year and have already spent around Rs90 crore for capex as laid out in its IPO objectives.
It has left with Rs 60 crore, of which it will incur acapex of Rs 17.74 crore for expansion of the processingfacility in Manchar plant in Maharashtra.
The company is betting big on its 100 per centvegetarian protein product as the countryÂ’s sports nutritionsegment is estimated at Rs 1,500 crore and given the increasein number of health clubs and fitness centres. PTI AP AARSY.
This is unedited, unformatted feed from the Press Trust of India wire.