Milk & milk products of Kwality, India dairy products ltd: a tale of frozen joy

Of late the Director of the Kwality Limited had overseen the company’s growth and strategic planning. He concluded it as the premier Dairy product company in India.

The company processes milk and milk products like  milk, both in the form of bulk pouch and tetra pack,pure ghee, pure cow ghee, Livilite-85%, less cholesterol ghee, curd, skimmed milk  powder, wake up creamer, chaach, lassi, and milk products of Kwality under the Brand name ‘Dairy Best’.

This company possesses its milk processing units across the country like Uttar Pradesh, Haryana, and Rajasthan and in the pan Indian distribution network. Apart from catering its various products to its retail customers, kwality Ltd also supplies its products to institutional customers including the leading MNCs and the Indian companies.

In fact the Kwality Limited had been selected as the top Indian company falling under the sector of Food and Agro Processing in the Dun and Bradstreet Corporate Award in the year 2014.The Director of the Kwality Ltd had responded to Yash Ved of IIFL saying that they will be focusing on launching various new products which will fulfill the increasing health needs of the Indian Consumers

In the view of briefing the company’s Financials, he boldly mentioned that statistically they found the Net Sales to increase by 12.7% for Q3FY15 from Rs 1286.11 crores to Rs. 1147.07 crores in the corresponding quarter of last year. Also in that corresponding quarter of the last year there has been observed an increment of Net Profit by 12.4% against the previous ended 31st December. Also the EBIDTA stood up by 22% against Rs.69.70 crores   in the corresponding quarter of the last year, where it was increased by 24% against Rs. 194.76 crores in that last year only. He told that the company is in the way of launching variants like flavored milk, milk products, variants of cheese, drinking yoghurt, butter in tubs, cream in tetra packs, etc. He confessed the fact that about 58% of their revenue comes from liquid milk products; the remaining of it comes from SMP, butter, curd and other milk products.

Their current debt stands nearly as Rs.1160 crores, with the company growing rate by 20% at CAGR with their top lines grown by around 20% in the current 9 months over the corresponding period of last year. Their   Capex plan includes setting up of MCC and strengthening farmer milk procurement processes, expanding the capacity in the existing units for the current and new products respectively and setting up of new units following new investment.

In the last nine months period time in 2014, there has been a boosting of the Net Sales by 20% from Rs.3256.37 crores to Rs.3909.21 crores, intensifying the Net Profit by 18% from Rs.90.32 crores to Rs.106.79 crores. In the third quarter of 2014-15 fiscal, the Net Profit consistently increased to Rs.106.79 crore from Rs.90.32 crore by 18%. During the same quarter of that previous fiscal, Net Sales stood up by 12.7% for Q3FY15 from Rs.1286.11 crore to Rs.1141.07 crore.

The Chief Financial Officer of Kwality Ltd, Sunit Shangle had revealed the fact behind their growth as maintaining the consistency in their growth which is now projected at 20-22% year on year.

He further mentioned that the company had been focusing on consumer packs and fresh products which is having a huge demand in the market.

As such they had focused on quality procurement of milk products for launching new milk products like flavored milk.

Further he mentioned to the Business Line that their company is in the verge of setting new potentialities at their existing plant located close to Palwal in Haryana in view of expanding its produce to serve the North Indian markets with fresh dairy products and other value added products in the coming two to three years. They will try to enter new markets outside North India with packed products like ghee in the next fiscal. On Wednesday in the BSE the Kwality stock peaked to Rs.39.25   by 3.7%.

In fact Milk & milk products of Kwality, India dairy products ltd is planning its expansion by forecasting and fulfilling the needs of the consumers in the present and for the nearer future.

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