by Suman Gupta
Targets Rs. 2000 crore revenues by FY 2020
Announces entry into key Indian markets to expand national footprint of ‘Prabhat’ brand
Set to launch array of value added products in next 6 months to boost revenues
Mumbai, October , 2017: Prabhat Dairy Limited, (BSE Code: 53935 & NSE Code: PRABHAT), India’s one of the fastest growing integrated milk and dairy products company catering to retail and institutional customers, today, launched its new Corporate Identity and on the side lines, announced its growth roadmap, ‘Vision 2020’. Mr. Vivek Nirmal, Joint Managing Director, unveiled the Company’s new corporate identity, its new logo and the ‘Vision 2020’ agenda in a Press Conference in Mumbai.
With the launch of a new corporate identity and a logo, Prabhat Dairy, is set to expand its presence in the retail – B2C – category and firm up the scale in institutional business. Currently, the Company manufactures fresh, dry, frozen, cultured and fermented dairy products, including pasteurized milk, flavoured milk, sweetened condensed milk, ultra-heat treatment (UHT) milk, yoghurt, dairy whitener, clarified butter (ghee), ice-cream, milk powder, ingredients for baby foods, lassi and chaas under the brand ‘Prabhat’. The Company has carved out a new identity to keep up the pace with the current lifestyle trends and the new smart, evolving consumers. On the occasion, explaining the rationale of the new corporate identity, Mr. Vivek Nirmal said, “Prabhat is a strong brand in a B2B ecosystem for dairy products. As we are planning out to be an equally strong B2C player, we need to be a vibrant brand. With the all-new identity and the logo, Prabhat Dairy will be able to stand out more as a milk expert company, which will help us leverage our whole milk, food portfolio.”
The new logo of ‘Prabhat’ indicates a more customer centric brand ‘where goodness begins’. Added Mr. Nirmal, “Our prime focus has been to provide value added products to the eco-system. To catch consumer’s attention and market visibility, this new catchy brand identity will help us. With a far more evolved packaging with a new identity, will help us command a better shelf throw and recall value making Prabhat a prestigious player in the market.”
Laying an ambitious growth plan as a part of ‘Vision 2020’, Mr. Vivek Nirmal announced that the Company had targeted to achieve Rs. 2,000 Crore of revenues by the year 2020. To achieve the growth target the Company has planned to expand its product portfolio and national footprint to enter into lucrative markets across India.
Key Highlights of Prabhat Dairy’s Growth Roadmap of ‘Vision 2020’: Prabhat Dairy, through its strong forward and backward integration, has targeted to become a leadership brand of India by expanding its product portfolio, national footprint and higher sales realisations. While expanding the retail products portfolio, the Company is set to leverage the brand Prabhat with further innovation. It will focus more on increasing the share of value added products like Cheese, Paneer, Shrikhand, Curd, Ice-cream, Flavoured & UHT Milk.
New product launches planned in next six months to boost the sales: New ‘Milk’ variants to stir the market
Under the new logo, Prabhat is set to launch variants of Tetra Pack Milk. With sound R&D, a new range of pure milk will soon hit in major markets. Further, in Tetra Pack Milk variants, 1 litre and 200 ml. SKU, Tetra Pack Cream – 1 Ltr and 200 Ml SKU, Tetra Pack Lassi – 200 ML and Milk Shake – 200 ML will be launched soon. The Company is expecting to achieve an incremental revenue of more than Rs. 100 crore only from all – Tetra Pack.
Products to be sold in four major categories: Health, Taste, Health Plus & Taste Plus
In order to ensure premium milk and milk products experience to customers, Prabhat has reorganised its product portfolio under four categories, viz. Health, Taste, Health Plus and Taste Plus. The ‘Health’ category will represent ‘Milk’ and ‘Dahi’. The ‘Taste’ category will represent, Lassi, Chaas, Paneer, Ghee, Shrikhand. The ‘Health Plus’ category will have UHT and Fortified products and the ‘Taste Plus’ an Indulgence category with Ice creams and Milk Shakes portfolio.
Expanding a national and international footprint: Entering into Northern, Eastern, Western and Central Indian markets with its range of products and is planning to commence exports to the SAARC countries: By the end of FY 2018, the Company has planned to enter and firm up its presence in various Northern, Eastern, Western and Central Indian markets, mainly Tier II and Tier III towns with higher disposable incomes. Soon, it will launch a range of value added products in Delhi, Punjab, Himachal Pradesh, Assam and firm up its presence in Madhya Pradesh and Maharashtra. Before March 2018, the brand ‘Prabhat’ would be present pan – India including the Southern states. As of now, it has a presence in 26 States and 2 Union Territories. Internationally, it exports to Bhutan and the plans are to commence exports to the SAARC countries.
Eyes consistent financial growth: For FY 2017, the Company posted revenues from operations of Rs. 1,409.87 crore with a PAT of Rs. 46.94 crore. In the quarter ended June 30, 2017, the total revenues increased by 22.8 per cent YoY to Rs. 360.23 crore. Focusing more on value added products, the Company achieved about 85 per cent of distribution from value added products and from milk about 15 per cent. On the side lines, for the same quarter, while the Gross Profit increased by 37.3 per cent YoY to Rs 75.76 crore, the EBITDA increased by 15.7 per cent YoY to Rs. 28.91 crore.