Parag Milk Foods expects margin growth of 12-13% in FY19
Parag Milk Foods is expecting margin growth of around 12-13 percent in financial year 2019, said Devendra Shah, chairman of the company, adding that the firm is maintaining sales guidance of Rs 3000 crore by FY20.
The company launched Gowardhan-fresh cow milk in the NCR region.
The company said the liquid milk business in the NCR region is around Rs 10000-12000 crore for buffalo milk and around Rs 400-1000 crore for cow milk. The company is eyeing 10 percent market share in the cow milk market, said Shah.
When asked how the low price of liquid milk is not impacting them, he said it is because the company is more into the value added products like ghee, paneer, cheese, yoghurt, etc. "80 percent of their revenues come from value added products, while 20 percent from liquid milk," he said.
Giving the revenue break-up, he said out of the 80 percent of value added products, 68 percent is value-added products, while 12 percent is skimmed milk and whole milk power, which is basically supplied to pharma companies.
Out of the 68 percent value added, 23 percent is cow ghee, while 22 percent is cheese and yoghurt is 7-8 percent.
First Published: Aug 29, 2018 1:52 PM IST
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