August 29, 2013

India's Parag Milk aims to more than double exports to US$44 million

With the hope to gain from the rupee's fall against the US dollar, India's Parag Milk Products Ltd, which sells products under 'Gowardhan' and 'Go' brands, is planning to more than double its exports to INR300 crore (US$44 million) this fiscal year.

"We are looking at more than doubling our exports to INR300 crore (US$44 million). Our share of export in our turnover last fiscal was INR120 crore (US$18 million)," Parag Milk Products Ltd chairman and managing director, Devendra Shah said.

The company exports cheese and ghee to 27 countries in the Middle East, South East Asia and North Africa and is looking to increase export volume to these markets.

"Rupee's depreciation is good opportunity for us to increase margins," Shah said.

The rupee has fallen by over 20% against the US dollar since April. It closed at new all-time low of 68.80, down INR2.56 (US$0.04) - the worst single day fall -from Tuesday (Aug 27).

The company is also targeting 40% increase in its domestic sales on the back of increased focus on value-added products. It had reported domestic sales of INR1,000 crore (US$148 million) in the last fiscal.

He said the value added dairy products market in India is estimated to be up to INR12,000 crore (US$1.8 billion). The products include cheese, variety of yogurt, flavoured milk, curd, ghee, paneer, whey protein, skimmed milk powder and dairy whitener.

It has recently entered into fresh paneer (fresh cheese) category. The potential for growth in this market is huge, he said, adding that the firm was also looking at expanding its distribution reach by adding 14 more depots. At present, the company has 18 distribution depots.