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Company Reports - Parag Milk Foods Pvt Ltd  

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Parag Milk Foods Pvt Ltd

Parag Milk Foods Pvt Ltd: The Company with a difference

Artika Shah

As owners of young and popular brands 'Gowardhan', 'Go' & 'Pride of Cows', Parag Milk Foods aims to promote a 'healthy lifestyle' with its superior and high quality products, targeted to different segments.
 Parag Milk Foods Pvt Ltd: The Company with a difference

Parag Milk Foods is one of India’s largest private dairies established in 1992. It has an output capacity of 2,000,000 liters per daywith two dairy plants; one based at Manchar in Maharashtra and new plant based at Palamner in Andhra Pradesh.  Through its subsidiary, Bhagyalakshmi Dairy Farms, it also owns the largest cow farm in India. Parag has also established Asia’s largest cheese plant at Manchar.  It adheres to international standards of product quality. Parag Milk Foods has a vast range of products which includes Cheeses (raw as well as processed in various forms & flavours), Butter, UHT Milk, Paneer, Dahi, Yogurt, Ghee, Skimmed milk powder, whole milk powder, proprietary foods like gulab jamun mix powder & dairy whitener under the brand names of ‘Go’ and ‘Gowardhan’ all made from 100% fresh cow’s milk.  Apart from its pan-India distribution network covering retail outlets and modern format stores, the Pune-based company supplies its products like cheese, butter, ghee and milk powder to reputed hotels, restaurants, institutions and caterers. It is exclusive supplier of dairy products to major Institutions like Barista, Baskin Robins, Sodexo and Café Coffee Day, major hotel chains like Taj Group as well as to all major Pizza chains like Pizza Hut, Dominos Pizza, US Pizza, Papa Johns, Sbarro, Uncle Sams Pizza, Chilliz, Taco Bell, etc. Parag exports its products like Cheese, Ghee, milk powders, butter & AMF to about 27 countries in the USA, South East Asia, Africa and the Middle East. The company has established its consumer products distribution nnetwork in USA, Middle East, Singapore & Hong Kong. Speaking about continuous improvement strategies in the company, Chairman, Devendra Shah says, “Innovations in products, packing, understanding consumer needs & lifestyle & product development are some of our development strategies. Another is making healthier products.”

Gowardhan & Go as a popular brand

Gowardhan is the only brand in India to have received the ISO 15161 certification from New Zealand and is also registered with USFDA. Its most recent brand ‘Pride of Cows’ is a premium, by-invitation only farm-to-home milk delivery initiative in South Mumbai. “The milk is available at Rs 75 a liter and reaches out to door-step of every consumer. It is 100% safe and hygienic milk available in packed bottle,” says Vice President- Marketing- Rahul Akkara. The ‘Pride of Cows’ milk is extracted by fresh at farm through ultra-modern rotary milk parlour from its herd of specially-bred cross bred herd of Holstein Fresian cows. The company has spent more than Rs 4 crore on its rotary milking parlour, the first in India. The milk obtained in this manner is free from atmospheric exposure and untouched by human hands. The 3,000-plus Holstein cows are treated to a special nutrition diet, tailor-made for each group according to their stage of development. The feed is made & served to the cows by specially imported TMR machine.  

Parag has brought Cheese for its Indian consumers  in different flavors and forms. The cheese is retailed under the brand name of ‘Go Cheese’. The different varieties of cheese ranging from powders and spreads, squeezy tubes, wedges and slices, to shredded Mozzarella and pizza cheese. Different types of Cheese is specially made for different preparation right from Sandwitches, Tacos, Pasta, Pizza, Nachos etc. Its Cheese basket is added with recent product innovations like nacho cheese sauce, cheezoos tubes, shredded cheeses, gourmet cheese like Gouda, Colby, Montero Jack and natural cheddar.The Company recently added one more product in its product basket that is GO UHT Milk available in two variants Double Toned & Slim Milk. Discussing the availability of Gowardhan and Go brands, Mr. Akkara said, “We have expanded our retail presence significantly. The Go and Gowardhan brands are now available at all modern retail and large outlets.” He also added, “Go is a young and fun loving brand. UHT line from TetraPack is a big ticket investment for us. We are confident that we will be able to create a space for ourselves in this segment.” Talking about some current trends, Mr. Shah says, “Currently, cheese consumption in India is increasing rapidly. So cheese business is also growing very fast.”

Range of products from Gowardhan

Parag is engaged in manufacturing dairy products that are 100% natural, lighter and rich in calcium. The brands of the company cover a wide range of products that cater to consumers who give preference to taste, nutrition, health, and craftsmanship. The products manufactured by the company includes Gowardhan Mozzarella cheese, Gowardhan Milko Dairy Creamer, Gowardhan dairy whitener, Gowardhan gulab jamun mix, Gowardhan fresh & thick Dahi, Gowardhan trim Dahi, Gowardhan Chass, Gowardhan Gold Milk, Gowardhan Fresh Milk, Gowardhan premium ghee, Gowardhan butter and Gowardhan processed cheese . Talking about the quality of products, Mr. Shah opines, “At every-stage, the quality and hygiene are completely looked into. We are a pan India brand today.”

Employees of Gowardhan

Gowardhan has a staff of more than 1200 employees. The company also has expert consultants for training and also sends its employees abroad for training. Gowardhan also has tie-ups with Institutes of International repute like National Dairy Research Institute, Karnal and Allahabad Agriculture University for recruitment of technical officers as well as recruitment agencies for management graduates. When asked what the programs in place to benefit employees, Mr. Shah said, “Automation trainings, employees self improvements, talent management, multi skilling, and succession planning are some of the programs in place to benefit employees.”

Expansion plans

Parag Milk plans to go national by launching innovative products in the market. It is having one more  plant in Palamner, on the outskirt of Bangalore and planning to add 2-3 more in coming years . The company aims to focus on establishing a strong foot-hold with major cheese consuming institutions and pizza chains. It is having Cheese plant having capacity 40MT per day & plans to expand it to 100MT per day. Besides, it also plans to establish a distribution network for fresh milk products. Talking about expansion plans, Mr. Akkara said, “Our focus lies on driving the cheese business. As a strategy, we take care of quality and taste of the product. He also said, “We are the key players in the dairy segment and innovation is the key driver. I definitely see us garnering a larger share of the dairy market.”  Discussing where Mr. Devendra Shah would see his business in next five years, he said “We wish to achieve a turnover of 6,000 crore in next 5 years. Expand geographically. Build more 2-3 plants to achieve bigger volumes.”

Well-designed infrastructure

Parag Milk Foods gives immense importance to the quality and innovation and it has made huge investments in technology and infrastructure. The company’s dairy and cow farm at Manchar as well as Palamner is expanding fast and catering to the large number of customers in India.

Dairy plant at Manchar:  Parag Milkprocesses a wide range of products at this ultra modern dairy. The plant churns out 1, 000, 000 litres of milk per day. The company also maintains strict no-human-contact through the entire manufacturing process. The dairy plant is fully automated and is equipped with best European technology.

Bhagyalaxmi dairy farm: The Bhagyalaxmi dairy farm boasts of being India’s largest cow farm. It is spread over 35 acres and houses upto 3,000 cows. It is equipped with India’s first rotary parlor which has mechanized whole milking process. The facility follows nurturing, specialized farming and a milking program that makes sure that the milk obtained is of best quality.

Cheese plant, Manchar: The cheese plant with the production capacity of 40MT is one of the only 2 units in Asia with UHT technology. The equipments are imported from Germany, pioneers in cheese processing equipment. This increases the shelf-life in tropical countries like India.

Investment plans

Parag Milk aims to become a 6000 crore company in the next few years. It is also looking at investing in infrastructure and also looks forward to quickly expand and establish the market.  Mr. Devendra also shared his views on some technological advances employed by the company and said, “To give an example, we have cheese plant that boast production capacity of 40MT per day. Only 3 supervisors including logistics are working per shift to manage this whole plant.” “Plus, we have advanced automated plants of international standards for other products as well” he added.

Considering so many advancements, Parag Milk Foods is on its way to achieve bigger milestones.

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