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Prabhat Dairy unveils new logo & targets revenue of Rs 2,000 cr by ’20
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Wednesday, 04 October, 2017, 08 : 00 AM [IST]
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Harcha Bhaskar, Mumbai
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Prabhat Dairy Limited, one of the largest integrated milk and dairy product companies, unveiled its new logo and made an announcement about Vision 2020, a roadmap of its expansion activities. It aims to earn a revenue of Rs 2,000 crore by the year 2020.
To achieve this growth target, the company has planned to launch a host of value-added dairy products, including spiced buttermilk, mango lassi and milk variants, and increase its national footprint to enter lucrative markets across India.
With the launch of the new logo, Vivek Nirmal, joint managing director, Prabhat Dairy, stated, “Prabhat is a leading dairy company in the business-to-business (B2B) sector.”
“So now, we would be focusing on acquiring the same space in the business-to-consumer (B2C) segment, for which we need to be a vibrant brand,” he added.
“With the company’s new logo, we intend to create a unique identity for all our consumer products in the dairy market,” Nirmal said.
The new logo indicates the company’s heritage and expertise, besides a tagline that states, “Where goodness begins.”
Nirmal said, “Our prime focus has been on providing value-added products to the ecosystem. To catch the consumers’ attention and increase our market visibility, this new brand identity will help us.”
“A far more evolved packaging and a new identity will help us command a better shelf throw and recall value, making Prabhat a prestigious player in the market,” he added.
The highlights of the agenda are to launch one-litre and 200ml variants of tetra-pack milk, one-litre packs of tetra-pack cream and 200ml packs of tetra-pack lassi and milkshake.
Talking about exports, Nirmal said, “We will be expanding both our national and international footprints. We will launch a range of value-added products in Delhi, Punjab, Himachal Pradesh and Assam and firm up our presence in Madhya Pradesh and Maharashtra.”
“We will be targeting the northern states, particularly for ghee as its demand is high there. Also, we see more consumers opting for cow ghee vis-a-vis buffalo ghee,” he added.
“In the eastern states, tetra-pack products with a long shelf life will be launched. Before March 2018, the brand Prabhat would be present pan-India, including the southern states,” Nirmal said.
“As of now, we have a presence in 26 states and two Union Territories (UTs). Internationally, we export to Bhutan, and plans are afoot to commence exports to the South Asian Association for Regional Cooperation (SAARC) countries,” he added.
Revealing the company’s fiscal growth plan, Nirmal said, “We target that 50 per cent of the revenue will come from consumer business branded products.”
“Currently, our consumer products generate revenue worth Rs 500 crore and we target to double it to Rs 1,000 crore in the next two-and-a-half years. Currently, the company’s revenue is divided 70-30 between the B2B and B2C markets,” he added.
“We also intend to invest in packaging equipment for milk products, utilising the current capacity of the milk plant and a brand-building strategy for the coming years,” Nirmal said.
“Also, from the current procurement of one million tonne every day, we will be procuring 1.4 million tonne to manufacture value-added products,” he added.
Talking about the dairy industry, Nirmal said, “India is not just the largest producer of milk and milk products, but the largest consumer as well.”
“Out of the whole dairy industry, only 35 per cent belongs to the organised players. It is milk co-operatives that have played a major role in the growth and development of the milk industry,” he added.
“Nowadays, it has been noticed that there is an increase in the number of private companies as well,” Nirmal stated.
“Currently, India produces 155 million tonne of milk per annum, and it is predicted that the capacity will increase to 200 million tonne per annum in the coming years. Soon India is going to be number one, among only the cow milk-producing countries,” he added.
In financial year (FY) 2017, the company posted revenues from operations of Rs 1,409.87 crore with a profit after tax (PAT) of Rs 46.94 crore.
In the quarter ended June 30, 2017, the total revenues increased by 22.8 per cent year-on-year (YoY) to Rs 360.23 crore.
Focusing more on value-added products, the company achieved about 85 per cent of the distribution from value-added products, while from milk, it was about 15 per cent.
For the same quarter, the gross profit increased by 37.3 per cent YoY to Rs 75.76 crore, while the earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 15.7 per cent YoY to Rs 28.91 crore.
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