Prabhat Dairy is adding cheese to its production line

Prabhat Dairy is adding cheese to its production line

Indian dairy processor Prabhat Dairy has announced the expansion of its plant at its Shrirampur facility in Ahmednagar, Maharashtra, to boost the capacity for value-added products.

It is to add new lines that will produce cheese, paneer, and Indian sweet dish shrikhand. The new lines will be up and running in 2016.

Prabhat Dairy sells retail consumer products under Prabhat, Flava and Milk Magic brands.

"Our facilities are in close proximity to our milk procurement region as well as target market and we have in-built capacities to expand retail consumer product offerings and introduce high growth products such as mozzarella cheese, cheddar cheese, processed cheese, paneer and shrikhand," said Vivek Nirmal, joint managing director, Prabhat Dairy.

Prabhat said cheese in India is the fastest-growing segment in the domestic dairy and milk products industry. The cheese market grew by around 20% CAGR, to reach INR50-55bn in fiscal 2014, from INR26bn in fiscal 2010.

Nirmal added: "As part of our growth strategy, we intend to continue to invest in increasing our manufacturing capacities for our existing dairy products and also develop manufacturing capabilities for new products, particularly high margin products with significant growth opportunities in India."

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Prabhat Dairy sets up new production lines for value-added milk-based products

Introducing high growth products, such as Mozzarella Cheese, Cheddar Cheese, Processed Cheese and Paneer

Mumbai, June 10, 2015: Prabhat Dairy , an integrated milk and dairy products company in India catering to institutional as well as retail customers, has set up new lines of production for value added milk based-products such as Cheese, Paneer (cottage cheese) and Shrikhand at its Shrirampur facility in Ahmednagar district of Maharashtra. The plant is expected to commence commercial production of these products in Fiscal 2016. Prabhat Dairy has automated production facilities with advanced equipment at Shrirampur (Ahmednagar) and at Navi Mumbai, with an aggregate milk processing capacity of 1.5 million litres per day as at March 15, 2015.

Mr. Vivek Nirmal, Joint Managing Director, Prabhat Dairy, said, "Our facilities are in close proximity to our milk procurement region as well as target market and we have in-built capacities to expand retail consumer product offerings and introduce high growth products such as mozzarella cheese, cheddar cheese, processed cheese, paneer (cottage cheese) and Shrikhand. Cheese is the fastest growing segment in the domestic dairy and milk products industry. The cheese market grew by around 20% CAGR, to reach Rs. 50-55 billion in Fiscal 2014, from Rs. 26 billion in Fiscal 2010. Growth was mainly driven by the urban population, which accounted for about 80%-90% of the total cheese consumption in India." He added, "As part of our growth strategy, we intend to continue to invest in increasing our manufacturing capacities for our existing dairy products and also develop manufacturing capabilities for new products, particularly high margin products with significant growth opportunities in India."

According to a CRISIL report, the processed milk segment recorded 14%-15% CAGR, reaching Rs 2,160-2,170 billion in Fiscal 2014, from about Rs 1,250 billion in Fiscal 2010. Milk prices are expected to rise by 7%-8% CAGR over the next three years, primarily driven by an increase in fodder prices, which in turn, are expected to be driven by a similar rise in minimum support prices of key crops. Thus, overall, we expect the segment to grow by 12%-13% CAGR, in value terms, from Fiscal 2014 to Fiscal 2017 to reach Rs. 3,090-3,100 billion, adds the report.

Prabhat Dairy sells retail consumer products under Prabhat, Flava and Milk Magic brands. The company's retail consumer products include pasteurized milk, UHT milk,dairy whitener, milk powder, lassi, curd (dahi), chaas and clarified butter (ghee), flavoured milk, and sweetened condensed milk sold under the Prabhat,Flava and Milk Magic brands, respectively. It markets products across a wide range of product segments and consumer groups and engages in a variety of marketing and promotional activities. It also has a large distribution network which included, as of February 28, 2015, more than 350 distributors. In addition, retail consumer products are distributed in the Mumbai metropolitan area and nearby cities and towns to a large number of retail outlets through more than 100 Prabhat mini stockists. As of February 28, 2015, the company's milk collection facilities included more than 450 milk collection centres, over 15 milk chilling plants and over 80 bulk milk coolers. The milk collection facilities have automatic milk testing equipment and specialized storage facilities, to test, collect and store raw milk at these milk collection facilities before being transported to the production facilities.

Prabhat Dairy is one of the leading suppliers in India of specialty ingredient products to reputed consumer product companies such as milk powder for baby food to Abbott Healthcare Private Limited and sweetened condensed milk to Mondelez India Foods Private Limited. It also supplies co-manufactured products including UHT milk, specialty milk powders, curd (dahi), clarified butter (ghee), flavoured milk, dairy whiteners, yogurts, processed and concentrated milk, and ice creams to various institutional customers including Britannia Industries Limited, Mother Dairy Fruit & Vegetable Private Limited and Heritage Foods Limited.

Prabhat Dairy received several quality certifications for products and production facilities, including certification from Food Safety and Standards Authority of India for pasteurized milk, flavoured milk, butter, ghee and fermented milk products, AGMARK quality certification by the Government of India for ghee and butter, and 'Halal' certifications for UHT milk, skimmed milk powder, whole milk powder, dairy whitener, and sweetened condensed milk. It is also ISO 22000:2005 certified for pasteurized milk, flavoured milk and ghee. Its commitment to quality has been recognized by the Industry, for e.g., it has been awarded the "CII National Award for Food Safety 2014" by the Confederation of Indian Industry for strong commitment to good hygiene and manufacturing practices. Similarly, it has also been awarded for "Commitment to supplier quality expectations" in 2012 by Mondelez International.

Prabhat Dairy continues to identify various strategic initiatives to improve its operational efficiencies and reduce operating costs. For example, the company intends to set up a 3MW co-generation captive power plant to simultaneously produce electric power along with steam required for manufacturing process, from the same fuel, thereby reducing costs of fuel and power.

Besides focusing on investing in automation, modern technology and equipment to address changing customer preferences as well as to improve operational efficiency, Prabhat Dairy has also taken steps to enhance its direct milk procurement network by increasing the number of Prabhat Mitras and increasing engagement with milk farmers by providing additional veterinary services and quality cattle feed. By increasing the volume of raw milk procured directly from milk farmers and registered milk vendors, the company expects that it would benefit from lower raw milk costs.

Original source: Prabhat Dairy