FNB News - "Government should be flexible to keep prices in check"

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INTERVIEW

"Government should be flexible to keep prices in check"

Monday, 08 February, 2016, 08 : 00 AM [IST]

Dinshaw's Dairy Foods Ltd was started in 1933 as a small dairy business. Later it focussed on other dairy products including ice cream. Today, the company has presence in many Indian states. In an email interaction with Anurag More, Zervin Rana, executive director, Dinshaw’s Dairy Foods Ltd, spoke about the company in particular and Indian dairy industry in general. Excerpts:

At what rate is the Indian dairy industry expected to grow by 2020?
Some 11-15 per cent is achievable. With availability of milk improving at 4-6 per cent per year, growth in terms on volume and value is possible.

How will increase in import duty on dairy products affect the domestic market?
For India, dairy exports is 95 per cent SMP only. It will only safeguard interest of bulk SMP manufacturers and sellers. It will also help in keeping raw milk prices stable. However, government should be flexible in changing import duties and maintain fund circulation to keep the prices in check. It’s not good to see profitability get affected on cyclic basis. Consistency is the key. Only then, the dairy industry will grow and flourish.

What are the driving factors for the growth of the sector?
Value-added products like yogurts, flavoured milk etc. in tier II and III towns.

What are the barriers for the growth of the industry?
1. Product innovation is slow. 2. Quality cold chain storing facility in general stores will be critical factors that slow down growth. 3. If raw milk prices are stable, growth becomes long term.

What is the consumption pattern in India?
On an average 300gm/ day would be overall consumption rate. This should increase with deeper penetration in tier II and III towns. Value-added products like dahi and paneer, still have a long way to go.

Tell us about products offered by Dinshaw’s.
Ice cream, packaged milk, paneer, butter, shrikhand, dahi, ghee and SMP. Bakery products have also been launched.

Tell us about your expansion plans.
Another 1 lakh lit per day ice cream plant will be set up in Western Maharashtra in the next two years.

How much will you be raising for the same?
Rs 60-70 crore.

Any plans to launch any new products?
Frozen yogurt and frozen bakery products (R&D going on).