Kwality Dairy Plans $50 million Investment on Dairy Expansion

INDIA - New Delhi based dairy product producer, Kwality Dairy is planning to invest $50 million during the current fiscal year.
calendar icon 30 April 2014
clock icon 2 minute read

The company will be investing in expanding its milk procurement operations as well as on launching more value-added products to its portfolio.

Kwality Dairy currently operates six plants in Haryana, Uttar Pradesh and Rajasthan state with processing capacity of 3 million litres a day.

Speaking on the investment plan, Kwality Ltd cmd, Sanjay Dhingra said: “We are currently procuring about 2.8 million litres of milk per day, of which 500,000 litres is purchased directly through our 22 milk chilling centres and we want to strengthen our milk procurement capacity.”

The company is planning to increase the chilling centers to 90 in the next 2-3 years from the current 22 centers.

The company which is currently selling ghee and skimmed milk powder (SMP) has decided to expand product basket by launching value-added dairy products like flavored milk, yoghurt, cheese and UHT milk.

During the 2012-13 fiscal year, Kwality Dairy posted a turnover of $605 million and is looking for 20-25 per cent growth in this fiscal year.

The company is also planning to raise $165 million through various instruments including equity, but nothing has been finalized, Kwality director, Sidhant Gupta said.
However, he believes the launch of value-added products would boost the company's profit margins.

The company also sells milk to retail consumers that stand at 350,000 liters a day under ‘Dairy Best Brand’.

Kwality has also set up a subsidiary in UAE that is engaged in exports and imports of skimmed milk powder, ghee, butter and another dairy product.


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