Kwality India dairy products ltd – expanding its dairy products business by opening up new plants and entering into the FMCG sector

Recently, the Kwality India dairy products ltd had enrolled into a memorandum of understanding (MoU) with the Jharkhand Government in connection with the setting up a project of milk and dairy products at Ranchi, Rs 100 crore being the minimum investment in that dairy business. This project will make a motion from the financial year 2018-19; which will bring about an employment to 300-500 people. Rightly, this company has various dairy processing plants being located at Palwal, Bulansahar, Saharanpur, Jarar, Sitapur and Ajmer with an integral capacity to handle 3 million litres of milk daily.

On 27th April, 2015, it has been told by the company in a BSE filing that apart from arranging various programs like skill up gradation for youth, running ITI in private mode, etc. as per policy of the state government an investment following Corporate Social Responsibility (CSR) will be also made by them.

Of late, the Hindustan Unilever Limited had recounted in the fourth quarter of 2014-15, their net profit to be Rs.1, 018 crore, with a growth of 17%. During that period, operating profit of the company was up to 23.3% at Rs.1, 247.66 crore and the net sales were up to 9% at Rs.7, 555 crore which was the outcome of lower commodity costs. As such it has been rightly told by the Chairman of HUL; Harish Manwari that performance during that quarter was due to the broad based growth across all their categories.

The HUL’s domestic consumer business grew by 10% rise following a 5% underlying volume growth in 2014-15. As subsidized by the exceptional income originating from the sale of the property, the net profit subsequently rose to 12% as Rs.4, 315 crore. Fundamentally, its net sales rose to 10% as Rs.30, 170 crore, operating profit flourished to 17% and heightened to 90 basis points respectively. It has been fairly told by the Managing Director and the CEO of HUL, Sanjiv Mehta that during the year when the skin and hair colour grew at double digits, Surf, Rin and Wheel detergents were altogether Rs.2, 000 crore brands each and their dairy product of Kwality Wall’s  Magnum ice cream had become a Rs 500 crore brand.

 Mehta further added that the growth of the rural market accelerated faster than the urbanized market. During a year, on an average the company cuts prices of its products by 5-6%. The stock price was found to have climbed to 3.34%on BSE to close at Rs.894.60 on 8th May, 2015.

Not long ago, it was reported that the Kwality India dairy products ltd apart from the dairy business which is involved in the manufacturing of dairy products, will be introducing product categories such as packaged food, juices, water, food products for health-conscious people and also energy and protein drinks within the coming few years. It has been found that besides the Indian industries which are concerned with the mass production of dairy products like the Amrit Foods, Umang Dairy, Vadilal Industries, Amul, Mother Dairy and Param Dairy in a position to experiment the water.

The MNCs associated with the manufacturing of Kwality India dairy products ltd dairy products are also in a position to experiment the water.

According to the chairman and the Managing Director of Kwality India dairy products ltd, Sanjay Dhingra, the Institutional sales of Kwality caters 75% of its revenue and the consumer sale caters 25%of its revenue. As Kwality India dairy products ltd is growing at the rate of 25% per year, in a period of three years, 60% contribution from the consumer sales in the total revenue will be a common phenomenon.

In a word, it may be concluded that, recently, the Kwality India dairy products ltd had enrolled into a memorandum of understanding (MoU) with the Jharkhand Government in connection with the setting up a dairy project of milk and dairy products at Ranchi, where Rs 100 crore would the minimum investment. Of late, the Hindustan Unilever Limited had recounted in the fourth quarter of 2014-15, their net profit to be Rs.1, 018 crore, with a growth of 17%. During that period, operating profit of the company was up to 23.3% at Rs.1, 247.66 crore and the net sales were up to 9% at Rs.7, 555 crore which was the outcome of lower commodity costs.

The Kwality India dairy products ltd apart from manufacturing of dairy products, will be introducing product categories such as packaged food, juices, water, food products for health-conscious people and also energy and protein drinks within the coming few years.

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