Thursday, 9 November 2017

Prabhat Dairy Strengthens its Footprint in North East, Expands Market Presence

Prabhat Dairy Strengthens its Footprint in North East, Expands Market Presence

• Targets 7 lakh litres of milk sale by FY 2020
• Set to launch array of value added products in coming months to boost revenues 

Mrs. Nidhi Nirmal, Chief Marketing Officer and Business Head at Prabhat Dairy Limited launching Ultra-High Processed milk in Guwahati.
Guwahati : Prabhat Dairy Limited, (BSE Code: 53935 & NSE Code: PRABHAT), India’s one of the fastest growing integrated milk and dairy products company catering to retail and institutional customers, is now firming up its presence in North East markets by launching its Ultra-High Processed (UHT) milk. This move comes after the company unveiled its new identity and Vision 2020 last month, where the management had announced an ambitious pan-India expansion plan. A top B2B player, Prabhat Dairy is now on its way to become the fastest growing company in B2C category in the North East markets, where the management is determined to capture 10% market share by FY 2019 and firm up the scale in institutional business. The Company which manufactures fresh, dry, frozen, cultured and fermented dairy products, including pasteurized milk, flavoured milk, sweetened condensed milk, ultra-heat treatment (UHT) milk, yoghurt, dairy whitener, clarified butter (ghee), ice-cream, milk powder, ingredients for baby foods, lassi and chaas is targeting to achieve 7lakh litres of milk sale per month from North East states. The market for UHT milk is growing exponentially with a CAGR of 32% and the company aims to be a major contributor to the industry. To achieve the growth targets, the Company has planned to leverage its existing presence in the region by expanding its product portfolio. On the occasion, explaining the rationale of entering the North East markets, the Chief Marketing Officer and Business Head, Prabhat Dairy Limited, Mrs. Nidhi Nirmal said, “North East India is one of our primary target markets for our national expansion as it is one of the fastest growing in India, especially in Tetra Pak segment. We have strategized our products in line with the local demand as understand the requirements of the region since we already have presence here for a while. The market for UHT is growing fast and so is the demand for Tetra Paks is emerging as a preferred option of milk consumption in the North Eastern states. Our core focus would be to build Strong Consumer Connect as we are looking to launch more products in the region soon.” The Company launched three variants of UHT milk namely Toned, Double-Toned and Skimmed versions which would be available in 1 litre tetra Paks. 
Key Highlights of Prabhat Dairy’s Growth Roadmap of ‘Vision 2020’: 
Prabhat Dairy, through its strong forward and backward integration, has targeted to become a leadership brand of India by expanding its product portfolio, national footprint and higher sales realisations. While expanding the retail products portfolio, the Company is set to leverage the brand Prabhat with further innovation. It will focus more on increasing the share of value added products like Cheese, Paneer, Shrikhand, Curd, Ice-cream, Flavoured & UHT Milk. 
New product launches planned in next six months to boost the sales: New ‘Milk’ variants to stir the market
 Under the new logo, Prabhat is set to launch variants of Tetra Pak Milk. With sound R&D, a new range of pure milk will soon hit in major markets. Further, in Tetra Pak Milk variants, 1 litre and 200 ml. SKU, Tetra PakCream - 1 Ltr and 200 Ml SKU, Tetra Pak Lassi - 200 ML and Milk Shake - 200 MLwill be launched soon. The Company is expecting to achieve an incremental revenue of more than Rs. 100 crore only from all - Tetra Pak.
Products to be sold in four major categories: Health, Taste, Health Plus & Taste Plus 
In order to ensure premium milk and milk products experience to customers, Prabhat has reorganised its product portfolio under four categories, viz. Health, Taste, Health Plus and Taste Plus. The ‘Health’ category will represent ‘Milk’ and ‘Dahi’. The ‘Taste’ category will represent, Lassi, Chaas, Paneer, Ghee, Shrikhand. The ‘Health Plus’ category will have UHT and Fortified products and the ‘Taste Plus’ an Indulgence category with Ice creams and Milk Shakes portfolio. 

Expanding a national and international footprint: Solidifying into Northern, Eastern and Southern Indian markets with its range of products and is planning to commence exports to the SAARC countries: 
By the end of FY 2018, the Company has planned to enter and firm up its presence in various Northern, Eastern, Western and Central Indian markets, mainly Tier II and Tier III towns with higher disposable incomes. Soon, it will launch a range of value added products in Delhi, Punjab, Himachal Pradesh, Assam and firm up its presence in Madhya Pradesh and Maharashtra. Before March 2018, the brand ‘Prabhat’ would be present pan - India including the Southern states. As of now, it has a presence in 26 States and 2 Union Territories. Internationally, it exports to Bhutan and the plans are to commence exports to the SAARC countries. 
Eyes consistent financial growth: 
For FY 2017, the Company posted revenues from operations of Rs. 1,409.87 crore with a PAT of Rs.46.94 crore. In the quarter ended June 30, 2017, the total revenues increased by 22.8 per cent YoY to Rs. 360.23 crore. Focusing more on value added products, the Company achieved about 85 per cent of distribution from value added products and from milk about 15 per cent. On the side lines, for the same quarter, while the Gross Profit increased by 37.3 per cent YoY to Rs 75.76 crore, the EBITDA increased by 15.7 per cent YoY to Rs. 28.91 crore.

About Prabhat Dairy Limited: 
Prabhat Dairy Limited is one of the largest and leading integrated milk and dairy products companies in India catering to institutional, as well as, retail customers. It manufactures fresh, dry, frozen, cultured and fermented dairy products, including pasteurized milk, flavoured milk, sweetened condensed milk, ultra-pasteurized or ultra-high temperature (UHT) milk, yoghurt, dairy whitener, clarified butter (ghee), milk powder, ingredients for baby foods, lassi and chaas. The Company sells its products under its retail consumer brands as well as ingredient products or as co-manufactured products to a number of institutional and multinational companies. Associated with one Lakh plus farmers in and around Ahmednagar district. In the area of financial inclusion, Prabhat Dairy has been recognised as one of the very few players that undertook direct transfer of milk payments tied up with Vodafone m-pesa and the State Bank of India in 2016 much earlier to demonetisation drive of the Government. Prabhat Dairy has the third largest cheese manufacturing facility in India with a capacity to manufacture 30 tonnes cheese daily.