Parag Milk Foods

Last updated

Parag Milk Foods Limited
Type Public
BSE:  539889
NSE:  PARAGMILK
Industry Dairy
Founded1992;31 years ago (1992)
Headquarters,
Area served
India
Key people
Devendra Shah (Chairman) [1]
Products Milk, butter, cheese, ghee, cottage cheese, yogurt and whey protein
RevenueIncrease2.svg1,923 crore (US$240 million) (2018) [2]
Increase2.svg1,865 crore (US$230 million) (2018) [2]
Total assets Increase2.svg1,367 crore (US$170 million) (2018) [2]
Number of employees
1,787 (as on 31 March 2018) [2]
Website paragmilkfoods.com

Parag Milk Foods is an Indian company that manufactures, markets and sells milk and milk products. The company is India's second largest producer of cheese under its brand Go and the country's largest producer of cow ghee under its brand Govardhan. [3] In 2015, the company began producing whey protein powder and since then has launched branded protein powder products as well. [3] [4] As of 2017, the company's daily procurement of milk was 1.2 million litres. [5]

Contents

History

Parag Milk Foods started as a dairy in Manchar with a 20,000 litre capacity in 1992. It concentrated on a niche segment, producing skimmed milk powder and by 2004 became India's largest exporter of the skimmed milk powder. However, the company faced a challenge when the Government of India banned export of milk powder on account of local milk shortage. Thereafter the company began investing in cheese production in 2008. [6] The company invested in a new facility to produce 1200 tonnes of cheese monthly at a time when the country only produced 600 tonnes of cheese a month. Consequently, there was a huge increase in cheese consumption in India with the expansion of quick-service restaurants in the country. [3]

In 2008, Motilal Oswal and IDFC Alternative Fund came in as investors in the company. As of 2013, Cheese, Ghee and Yogurt contributed 75% of the company's annual revenue. The company has a second dairy in Palamaner, Andhra Pradesh. [6]

In 2016, the company turned public with an initial public offering listing on National Stock Exchange and Bombay Stock Exchange. [7] [8]

Brands

Gowardhan Cow Ghee Gowardhan ghee.jpg
Gowardhan Cow Ghee

The company's brands include Gowardhan, Go, Pride of Cows and Topp Up. The company launched the Go brand in 2009, Pride of Cows in 2012 and Topp Up in 2013. [9] The company sells milk, ghee, dahi and paneer under the Govardhan brand and cheese, milk, chaas, lassi, yoghurt under Go brand. [10] The company is India's second-largest producer of cheese under its brand Go and the country's largest producer of cow ghee under its brand Govardhan. [3]

The company supplies milk directly from farms to customers homes under the brand Pride of Cows. The milk is produced at Bhagyalaxmi Dairy in Manchar, and procured from 3,800 Holstein Freisan cows. The milk is supplied to households in Mumbai, Pune, Surat and is airlifted to customers in New Delhi daily. The company uses an invitation-only mobile application subscription-based distribution model for this brand. [11] [12] In June 2019, Pride of Cows claimed to become the first Indian brand to sell fresh milk in Singapore. The company airlifts the milk from Pune to Singapore daily and uses a home delivery model to reach the product to the end consumer. [13]

In 2015, the company began producing whey protein powder. [4] In 2019, the Parag Milk Foods introduced whey protein produced from cow milk and branded it under the names Go Protein Power and Avvatar. [3] Parag Milk Foods' Avvatar whey protein brand is the first 100% vegetarian whey protein made in India. [14] The company also sells milk based energy drinks under the brand Topp Up. [15]

Acquisitions

In 2018, Parag Milk Foods acquired Danone's facility in Sonipat, Haryana after Danone decided to shut its dairy operations in India. [16] [17] Parag Milk Foods paid a consideration of 30 crore (US$3.8 million) to Danone for the facility which it now uses to service the North India market. [18] The facility has a milk processing capacity of 75,000 litres a day along with 15 tonnes of yogurt. [16]

Related Research Articles

<span class="mw-page-title-main">Dairy product</span> Food product made from milk

Dairy products or milk products, also known as lacticinia, are food products made from milk. The most common dairy animals are cow, water buffalo, nanny goat, and ewe. Dairy products include common grocery store food items in the Western world such as yogurt, cheese, milk and butter. A facility that produces dairy products is known as a dairy. Dairy products are consumed worldwide to varying degrees. Some people avoid some or all dairy products either because of lactose intolerance, veganism, or other health reasons or beliefs.

<span class="mw-page-title-main">Dairy</span> Place where milk is stored and where butter and cheese are made or sold

A dairy is a place where milk is stored and where butter, cheese and other dairy products are made, or a place where those products are sold. It may be a room, a building or a larger establishment. In the United States, the word may also describe a dairy farm or the part of a mixed farm dedicated to milk for human consumption, whether from cows, buffaloes, goats, sheep, horses or camels.

<span class="mw-page-title-main">Whey</span> Liquid remaining after milk has been curdled and strained

Whey is the liquid remaining after milk has been curdled and strained. It is a byproduct of the manufacturing of cheese or casein and has several commercial uses. Sweet whey is a byproduct resulting from the manufacture of rennet types of hard cheese, like cheddar or Swiss cheese. Acid whey is a byproduct brought out during the making of acid types of dairy products, such as strained yogurt.

<span class="mw-page-title-main">Curd</span> Result of curdling milk

Curd is obtained by coagulating milk in a sequential process called curdling. It can be a final dairy product or the first stage in cheesemaking. The coagulation can be caused by adding rennet, a culture, or any edible acidic substance such as lemon juice or vinegar, and then allowing it to coagulate. The increased acidity causes the milk proteins (casein) to tangle into solid masses, or curds. Milk that has been left to sour will also naturally produce curds, and sour milk cheeses are produced this way. Producing cheese curds is one of the first steps in cheesemaking; the curds are pressed and drained to varying amounts for different styles of cheese and different secondary agents are introduced before the desired aging finishes the cheese. The remaining liquid, which contains only whey proteins, is the whey. In cow's milk, 90 percent of the proteins are caseins. Curds can be used in baking or may be consumed as a snack.

<span class="mw-page-title-main">Paneer</span> Type of fresh cheese commonly used in Indian subcontinental cuisine

Paneer, also known as ponir, is a fresh acid-set cheese common in cuisine of the Indian subcontinent made from full-fat buffalo milk or cow milk. It is a non-aged, non-melting soft cheese made by curdling milk with a fruit- or vegetable-derived acid, such as lemon juice.

<span class="mw-page-title-main">Whey protein</span> Protein supplement

Whey protein is a mixture of proteins isolated from whey, the liquid material created as a by-product of cheese production. The proteins consist of α-lactalbumin, β-lactoglobulin, serum albumin and immunoglobulins. Glycomacropeptide also makes up the third largest component but is not a protein. Whey protein is commonly marketed as a protein supplement, and various health claims have been attributed to it. A review published in 2010 in the European Food Safety Authority Journal concluded that the provided literature did not adequately support the proposed claims. For muscle growth, whey protein has been shown to be slightly better compared to other types of protein, such as casein or soy.

<span class="mw-page-title-main">Nutricia</span>

Nutricia is a Danone brand that specialises in therapeutic food and infant formula, including medical nutrition for babies with specific needs.

<span class="mw-page-title-main">Strained yogurt</span> Yogurt thickened by draining whey

Strained yogurt, Greek yogurt, yogurt cheese, sack yogurt, or kerned yogurt is yogurt that has been strained to remove most of its whey, resulting in a thicker consistency than normal unstrained yogurt, while still preserving the distinctive sour taste of yogurt. Like many types, strained yogurt is often made from milk enriched by boiling off some water content, or by adding extra butterfat and powdered milk. In Europe and North America, it is often made from low-fat or fat-free cow's milk. In Iceland, a similar product named skyr is made.

<span class="mw-page-title-main">Lactalis</span> French multinational corporation

Lactalis is a French multinational dairy products corporation, owned by the Besnier family and based in Laval, Mayenne, France. The company's former name was Besnier SA.

<span class="mw-page-title-main">Chhena</span> Type of cheese curds originating in India

Chhena or chhana are a style of cheese, originating from the Indian subcontinent, made from water buffalo or regular cow milk by adding food acids such as lemon juice and calcium lactate instead of rennet and straining the whey through filtration.

In 2013, a wide-scale recall of products sold by dairy producer Fonterra was announced after suspected botulism-causing bacteria were found during safety tests. The contaminated whey products had been sold to third parties who use it to produce infant formula and sports drinks. Approximately 1,000 tonnes of consumer product was affected by the recall across seven countries, but no cases of sickened consumers were reported. China, which imports most of its powdered milk from New Zealand, instituted a temporary ban on the import of the ingredient from New Zealand.

<span class="mw-page-title-main">Dudhsagar Dairy</span> Division of Gujarat Cooperative Milk Marketing Federation

The Mehsana District Cooperative Milk Producers' Union Limited, popularly known as Dudhsagar Dairy, is a division of Gujarat Cooperative Milk Marketing Federation which is under the ownership of Ministry of Cooperation of the Government of Gujarat.

<span class="mw-page-title-main">Kwality Ltd.</span> Indian dairy company

Kwality Ltd. is a processor and handler of dairy products in India listed on Bombay Stock exchange as public Limited Company. The company produces various types of dairy products, which include milk, ghee, butter, milk powder, curd, yogurt, cheese etc. The company has established procurement network which comprise 350,000 farmer families across 4,700 villages in North India. Kwality Ltd. has six plants in Haryana, Uttar Pradesh and Rajasthan with processing capacity of 3.4 million liters milk per day.

<span class="mw-page-title-main">Vega (company)</span>

Vega is a brand of plant based nutritional products. The company was started in Burnaby by Charles Chang and Brendan Brazier in 2004. In 2015, Vega was sold to Denver-based giant Whitewave Foods for US $550 million.

<span class="mw-page-title-main">Milky Mist Dairy</span> Indian dairy company

Milky Mist Dairy, Milky Mist Dairy Food Private Limited (MMD), one of India's largest manufacturers of dairy products, is located at Perundurai, 20 km (12 mi) from the Erode district in Tamil Nadu. Formed in 1997 by T. Sathish Kumar, Milky Mist is engaged in milk procurement, processing, and manufacturing of other dairy products. K Rathnam is the CEO of Milky Mist and dairy industry expert.

<span class="mw-page-title-main">Dairygold</span> Irish dairy co-operative

Dairygold Co-Operative Society Limited is an Irish dairy co-operative based in Mitchelstown, County Cork, Ireland. With its catchment area mostly in the Golden Vale, Dairygold processes an annual volume of approximately 1.43 billion liters of grass fed pastureland milk, making it Ireland's second largest dairy co-operative and the island's third largest milk supplier. Formed after the 1989 merger of the Mitchelstown and Ballyclough co-ops, by 2020 it had 7000 shareholder members and reported an operating profit of €26 million from a turnover of €1.02 billion.

<span class="mw-page-title-main">Perfect Day (company)</span> Food technology company

Perfect Day, Inc. is a food technology startup company based in Berkeley, California, that has developed processes of creating dairy proteins, including casein and whey, by fermentation in microbiota, specifically from fungi in bioreactors, instead of extraction from bovine milk.

<span class="mw-page-title-main">Dairy in India</span> Dairy in India

Dairy plays a significant part in numerous aspects of Indian society, including cuisine, religion, culture, and the economy.

References

  1. Ananya Saha, Ananya (12 June 2018). "'Swimming is my favourite workout': Devendra Shah, Chairman, Parag Milk Foods". The Financial Express. Retrieved 5 May 2019.
  2. 1 2 3 4 "Parag Milk Foods Limited Annual Report 2017-18" (PDF). Retrieved 5 May 2019.
  3. 1 2 3 4 5 Singh, Rajiv (25 April 2019). "Parag Milk Foods: Whey to go". Forbes India. Retrieved 5 May 2019.
  4. 1 2 Kshirsagar, Alka (6 April 2015). "Parag forays into whey powder production". The Hindu Businessline. Retrieved 1 December 2022.
  5. "Parag Milk Q4 net profit up 86% at Rs 29.95 crore". The Economic Times. PTI. 30 May 2017. Retrieved 5 May 2019.
  6. 1 2 "How Parag Milk Foods Got it Right with Cheese". Forbes India. Retrieved 5 May 2019.
  7. Mudgill, Amit (19 May 2016). "Modest debut: Parag Milk Foods lists at Rs 217.50, a premium of 1.2% over issue price". The Economic Times. Retrieved 5 May 2019.
  8. "Parag Milk shares stage decent debut, surge 14% against issue price". Business Today. Retrieved 5 May 2019.
  9. Mishra, Lalatendu (5 January 2016). "Parag Milk Foods unveils Rs 150-cr expansion". The Hindu. Retrieved 5 May 2019.
  10. "Rs 120 per litre! This farm-to-home milk will be airlifted daily from Pune to Delhi". Business Today. PTI. Retrieved 5 May 2019.
  11. "Parag Milk Foods Launches Premium Milk Brand 'Pride Of Cows' In Delhi; Worth Rs 120 Per Litre". BW Businessworld. Retrieved 5 May 2019.
  12. "Parag Milk to airlift premium milk brand to Delhi-NCR". The Hindu Business Line. Retrieved 5 May 2019.
  13. "Parag Milk Foods launches premium milk brand in Singapore". The Hindu Business Line. PTI. 10 June 2019. Retrieved 20 June 2019.
  14. ETBrandEquity (16 February 2017). "Parag Milk Foods launches 'Avvataar' a made-in-India whey protein range - ET BrandEquity". ETBrandEquity. Retrieved 1 December 2022.
  15. Kulshrestha, Ashish (17 May 2017). "Dairies, aerated drink companies eye high-margin milk-based beverages". The Economic Times. Retrieved 5 May 2019.
  16. 1 2 Mitra, Sounak (20 April 2018). "Parag Milk buys Danone dairy factory in Haryana". Live Mint. Retrieved 5 May 2019.
  17. Pinto, Viveat Susan (23 April 2018). "Danone's loss is Parag's gain: Are dairy MNCs facing challenges in India?". Business Standard India. Retrieved 5 May 2019.
  18. "Parag Milk to buy Danone's facility for Rs 30 crore". The Economic Times. 19 April 2018. Retrieved 5 May 2019.