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INTERVIEW

“Tremendous response from Gujarat, MP, N-E”
Monday, 29 January, 2018, 08 : 00 AM [IST]
Harcha Bhaskar, Mumbai

Prabhat Dairy Limited is one of the largest integrated dairy companies in India catering to institutional, as well as, retail customers in Ahmednagar, Maharashtra. It has a vast product portfolio,which includes fresh, dry, frozen, cultured and fermented dairy products, including pasteurised milk, flavoured milk, sweetened condensed milk, ultra-pasteurised or ultra-high temperature (UHT) milk, yoghurt, dairy whitener, clarified butter (ghee), milk powder, ingredients for baby foods, lassi and chaas.

The company is manufacturer and seller of products under retail consumer brands as well as ingredient products or as co-manufactured products to a number of institutional and multinational companies. It is associated with one lakh plus farmers in and around Ahmednagar district.

It has the third-largest cheese manufacturing facility in India with a capacity to manufacture 30 tonne cheese daily.

Vivek Nirmal, joint managing director, Prabhat Dairy Ltd, in an email interaction with Harcha Bhaskar, on the onset of the new year, speaks about the emerging trends in dairy industry and scope of growth and company’s vision for 2020.Excerpts:

Share information on the infrastructure facilities of dairy plants and chilling centres. How much milk is processed per day and dispatched? What are the other dairy products that are manufactured?
At Prabhat Dairy, we have two strategically located state-of-the-art multi-product manufacturing units at Shrirampur and Turbhe, Navi Mumbai, having close proximity to milk generating regions and target market for end-products. We have an integrated business model with robust procurement infrastructure. We have established automated production facilities at our Shrirampur and Navi Mumbai facilities equipped with technology which ensures operational efficiencies including lower production losses, strict quality control and ability to process large orders. In addition, the technology infrastructure connects the procurement and production processes. We also use computerised milk testing facilities and comprehensive enterprise management programs which cover production, purchase and sales, finance, stores, inventory, storage, and payroll functions. The manufacturing facility is complemented with a wide range of packing and filling machines supplied by Indian and overseas suppliers. At least 13-15 lakh litre of milk is procured and processed every day. Prabhat Dairy manufactures almost all of the dairy products, right from UHT milk, sweetened condensed milk, skimmed milk powder, whole milk powder, dairy whitener, paneer, cheese, ghee, ice cream, dahi, chaas, lassi, flavoured milk, and shrikhand.

Which are the various villages and centres from where the milk is procured? How much is the per day collection of the milk?
Majority of the milk is procured from the Ahmednagar district, which is one of the largest area for cow milk procurement. Prabhat Dairy is directly connected with more than 100,000 farmers in about 1,200 villages in Ahmednagar, Pune, Nashik and adjoining districts in Maharashtra from whom we directly source 70% of milk everyday. We collect about 1 million litre milk everyday.


How this milk is further divided to be used in the processing of various dairy products? What are the various quality checks done at various steps of manufacturing?

We have robust quality control system set up as per the requirements of our various reputed multinational clients having stringent quality and procurement norms. At every stage, right from procurement to transport to manufacturing and to delivery, the raw material and products are tested for quality norms and proper records of testing are maintained for each and every batch of manufacturing for the tenure agreed with the clients and as per the law.

Currently which are your strong markets in India with regard to your various products?
Being based out of Maharashtra, of course, it is our strongest market. Since we are expanding, we are receiving tremendous response from other markets such as Gujarat, Madhya Pradesh, and North- Eastern states.

What are the various technologies that are used in manufacturing the product? Are they from India or imported, if imported, from which country?
Prabhat uses the best technology for manufacturing so as to meet the specific demand of its multinational clients with new packing technologies. Mainly, we have adopted indigenous technology, however, as per the specific requirement for any product, we have also imported machines from different countries.

What are your new product launch and expansion plans?
Since we are increasing our focus in B2C segment, we are also lining up a number of new products for retail purpose. We would be making announcements for the same whenever we are ready.

What are the various innovations happening in dairy sector in India? How do you see Indian future market for flavoured milk and desserts?
Lot of innovation is happening in the value-added products segment. As people are exposed to variety of products, the demand for the same is also growing simultaneously. The flavoured milk and desserts market is going to grow further in the coming years. Although the growth for flavoured milk segment might be slower than ice cream, there is a continuous demand for the products throughout the year. Ice cream, on the other hand, would be growing at 8-10% CAGR every year.

Tell us about your key clients or tie-ups with companies, hotels, caterers and restaurants for B2B segment.
Mondelez India Foods Pvt. Ltd, GSK Consumer Healthcare, Heinz, Abbot Healthcare Pvt. Ltd, Britannia Industries Ltd, Mother Dairy Fruit & Vegetable Pvt. Ltd, D Mart, Parle, Patanjali, Domino’s, Haldirams are some of our major clients for B2B segment.

How are the factors contributing to the demand of ghee consumption in India? How has Prabhat ghee grown over the years?
Ghee is one of the key ingredients in Indian kitchens. No  Indian food is complete without ghee being a part of it. The demand for ghee has grown over the years and is still one of the highest product in the dairy sector. We started manufacturing ghee in 2005. Although initially we used to make major supplies only to B2B segment, we have increased the ghee supply in our own brand since last few years and have received tremendous response for the same.

Is your company into exports? If yes, give details.
Yes,we export our products such as cheese, milk powders, etc. to GCC and SAARC countries.
 
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