Talk about companies looking to 'milk' money. Firms are lining up ambitious plans to tap into the fast growing Indian dairy market, betting that a combination of rising disposable income, and a preference for quality and healthier foods offers huge potential for organised players.
Last month, the Economic Times reported that Coca Cola was planning to introduce its global milk-based beverage brand Vio in India, in a bid to strengthen its presence in the dairy market here.
A couple of weeks later, Ravi Jaipuria, PepsiCo's biggest bottler in South Asia, announced plans to enter the Indian dairy space by bringing his Creambell brand of ice cream. In addition, he also plans to buy a dairy plant to manufacture value-added dairy products such as cheese, butter, lassi and yoghurt
The Godrej group is the latest to throw its hat into the ring, with unlisted Godrej Agrovet today announcing that it has hiked its stake in Creamline Dairy Products to 51 percent from 26 percent earlier.
"The value added milk business is growing very rapidly in our country," Godrej Group Chairman Adi Godrej told CNBC-TV18 , adding that the growth opportunity was "considerable."
"We will look at all opportunities in dairy products; it could be any value added milk product including things like cheese, etc," he said. Rating firm CRISIL estimates the revenues of the organised dairy segment at Rs 75,000 crore in FY2015. CRISIL is bullish on the dairy industry, saying rising disposable income and increasing quality consciousness would lead to greater preference for branded milk and milk products. It estimates that the processing capacity of organised dairies (that have grown 22 percent in last five years) is likely to grow 40 percent in the next three years. Sometime back, Pepsico chief Indra Nooyi had said there were plans to introduce some of Pepsi's global dairy brands in India.
A Times of India report quoted Jaipuria as saying that his company was willing to tie up with Pepsi in case they were keen to foray into the dairy space in India. "Earlier, people made dairy products such as yoghurt and paneer at home," Jaipuria told ToI. "But now, they prefer buying packaged products. The sector will get hotter in the future," he said.
According to CRISIL, given rising demand for branded products and investments being made by organised sector players, the share of organised segment will increase to about 25 percent by fiscal 2018 (from 19 percent currently).
Resource: http://www.moneycontrol.com/news/business/companies-look-to-milk-moneyfast-growing-dairy-market_4685801.html
Last month, the Economic Times reported that Coca Cola was planning to introduce its global milk-based beverage brand Vio in India, in a bid to strengthen its presence in the dairy market here.
A couple of weeks later, Ravi Jaipuria, PepsiCo's biggest bottler in South Asia, announced plans to enter the Indian dairy space by bringing his Creambell brand of ice cream. In addition, he also plans to buy a dairy plant to manufacture value-added dairy products such as cheese, butter, lassi and yoghurt
The Godrej group is the latest to throw its hat into the ring, with unlisted Godrej Agrovet today announcing that it has hiked its stake in Creamline Dairy Products to 51 percent from 26 percent earlier.
"The value added milk business is growing very rapidly in our country," Godrej Group Chairman Adi Godrej told CNBC-TV18 , adding that the growth opportunity was "considerable."
"We will look at all opportunities in dairy products; it could be any value added milk product including things like cheese, etc," he said. Rating firm CRISIL estimates the revenues of the organised dairy segment at Rs 75,000 crore in FY2015. CRISIL is bullish on the dairy industry, saying rising disposable income and increasing quality consciousness would lead to greater preference for branded milk and milk products. It estimates that the processing capacity of organised dairies (that have grown 22 percent in last five years) is likely to grow 40 percent in the next three years. Sometime back, Pepsico chief Indra Nooyi had said there were plans to introduce some of Pepsi's global dairy brands in India.
A Times of India report quoted Jaipuria as saying that his company was willing to tie up with Pepsi in case they were keen to foray into the dairy space in India. "Earlier, people made dairy products such as yoghurt and paneer at home," Jaipuria told ToI. "But now, they prefer buying packaged products. The sector will get hotter in the future," he said.
According to CRISIL, given rising demand for branded products and investments being made by organised sector players, the share of organised segment will increase to about 25 percent by fiscal 2018 (from 19 percent currently).
Resource: http://www.moneycontrol.com/news/business/companies-look-to-milk-moneyfast-growing-dairy-market_4685801.html
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