Manufacturers of Dairy products in India
Recently, it has been found that as a result of lack of interest being shown by the upcoming new generation, a large number of mid sized private dairy firms in India are being sold to the foreign companies. The increased risk factor andabating profit associated with the production of the dairy products in India have led to this drastic condition. It has been ascertained by the investment bankers that the large number of mid-sized dairy players likes the Cream-line Dairy, Dodla Dairy and the Dinshaw’s Dairy are on the risk to be bought by the foreign players, like the Tirumala Dairy.
Measurably, 20 companies throughout the country, having an annual turnover between Rs.300 crore and Rs.1000 crore are facing this problem with their new generation. The Global investors are putting heads together with these dairy firms for several months involving the dismantling of their business. It has been estimated by the India Ratings that the sector involved in the manufacturing of dairy products in India is being expected to reach Rs.5.54 lakh crore by March 2016. India is being forecast to accelerate its production of milk from 138 million tonnes of milk in March 2014 to 151 million tonnes of milk in March 2016.
It has been a matter of concern that the most private dairies producing the dairy products in India, being previously set up by the multiple promoters initially will not persist in the future due to the curtailment of interest shown by their next generation. As a result of which the Multinational dairy giants and private equity firms are taking hold of this golden opportunity and standing as a stiff competitor towards the existing mid-sized dairy firms. It has been disclosed by the dairy sector analyst of the India Ratings, JB Sivakumar that they are in a position to compete with the various state cooperatives.
Summary- In a word, it may be concluded that,the increased risk factor and abating profit associated with the production of the dairy products in India have led to the situation of the mid-sized to be sold to the foreign companies.Measurably, 20 companies throughout the country, having an annual turnover between Rs.300 crore and Rs.1000 crore are facing this problem with their new generation who are very reluctant to stay in this business.Due to this phenomenon, the Multinational dairy giants and private equity firms are taking hold of this golden opportunity and standing as a stiff competitor towards the existing mid-sized dairy firms.
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