Parag Milk Foods Limited, a prominent manufacturer and marketer of dairy-based branded products in India, has reported a high revenue for the financial year ending March 31, 2024. The company achieved consolidated revenues surpassing INR 3,000 crore, driven by strong brand equity and competitive market positioning. The gross profit for the year was INR 749 crore, with a gross profit margin of 23.9%, reflecting a significant increase from INR 569 crore in FY23 and a year-over-year margin expansion of 4.2%. The company also reported robust operating cash flows of INR 99 crore for FY24.
Devendra Shah, Chairman of Parag Milk Foods Ltd, expressed his pleasure at the company’s performance, highlighting the milestone of crossing INR 3,000 crore in consolidated revenues. The profit after tax stood at INR 91 crore, complemented by healthy operating cash flows. Shah noted that while milk procurement prices have been favorable, the company is prepared to maintain and improve its margin profile despite potential price increases.
The company’s growth has been bolstered by its strategic investments in modern trade and e-commerce channels, which have significantly contributed to overall revenue. The expansion of the value-added product portfolio and premiumization efforts have also enhanced the gross margin profile. Advertising and promotion expenses increased to 4.2% of revenue in FY24 from 2.5% in FY23, reflecting the company’s commitment to brand building.
In terms of core categories, Ghee and Cheese have seen continuous traction throughout the year and have posted a growth of 3.5 % YoY. The company’s in-house consumer brand ‘Avvatar’ is consistently growing at 100% CAGR for two years in a row.
In addition to it, the General Trade, Modern trade & e-commerce posted a growth of 3% YoY, and 6% YoY, respectively for FY 24. Moreover, the average milk procurement of the company stood at 16 lakh liters per day; the average milk price stood at INR 33.8 per liter.
Parag Milk Foods’ premium brand ‘Pride of Cows’ continues to perform well, expanding its product portfolio and distribution footprint across seven cities. The Company is also expanding its Bhagyalakshmi Dairy Farm, a 100% subsidiary dairy farm that supplies exclusively to the Pride of Cows brand.
The Company has strengthened its brand equity reach by adopting impact marketing campaigns like participation in ‘Kaun Banega Crorepati’ (KBC), which enables the company to widen its reach in tier 2 and tier 3 towns and cities through brand messaging ‘Garv Se Gowardhan.’ The company’s brand ‘Go Cheese’ has also participated in shows like India’s Got Talent and has undertaken very focused print marketing.
Apart from this, some of the new developments in the company are:
Entered into the Sweets category under the brand Gowardhan: The Company has forayed into the traditional sweet segment under the brand ‘Gowardhan’. Currently, the brand has seven delectable sweet ranges namely Kaju Katli, Malai Pedha, Kesar Pedha, Kaju Pista Roll, Mawa Gujiya, Mysore Pak, and Malai Modak. With an estimated branded market size of INR 7000-8000 crore, the Indian sweets market presents vast opportunities for growth and innovation.
Expansion in the International market: The company plans to incorporate a n wholly-owned subsidiary in Dubai, UAE. This strategic move aims to enhance the company’s global reach and streamline its supply chain operations
‘‘We would continue to enhance our industry-leading R&D capabilities and infrastructure to drive innovation and delight our consumers across the globe. With strong foundation in place, we are confident of posting industry leading growth and profitability ahead.” says Shah.
