Prabhat Dairy Eyes Revenue of Rs 2,000 Crore By 2020
Prabhat Dairy does not expect margins to expand in the near term
Prabhat Dairy Ltd. expects its revenue to touch Rs 2,000 crore in the year to March 2020, as the company renews its focus on value-added milk products for retail consumers.
The dairy major plans to earn half its revenue from the retail segment in next three years by targeting fresh milk, cow ghee, ultra high density milk and cheese, Vivek Nirmal, joint managing director and chief executive officer, told BloombergQuint in an interview.
The consumer segment comprises 30 percent of Prabhat Dairy’s revenue, which stood at Rs 1,411 crore in the last financial year.
Despite pushing for a growth in retail business, the company does not expect its margins to go up since it will be investing heavily to expand the distribution network and cold chain, said Nirmal.
The company is pushing its products through the modern retail outlets in northern and eastern states. Prabhat Dairy also plans to export its products to Sri Lanka through its business-to-business clients that have operations in the island nation, Nirmal said.