Our Value Chain
We have an integrated business model that encompasses the entire value chain of the dairy based food and beverages business and includes a range of activities including manufacturing and processing to branding and distributing a wide variety of products. We have well established relationships, developed over several years, with farmers in the proximity of our facilities, and our continuous engagement with them enables us to consistently procure raw milk and at competitive prices.
Farmers
We enjoy a well established relationship with the farmer fraternity in the region – they are our partners in progress and the most vital link in our supply chain.
VILLAGE COLLECTION CENTRE
Our supply chain network includes procurement from 29 districts across Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu, through over 3,400 village level milk collection centres.
CHILLING CENTRE
We require raw milk from cows’ for all our manufacturing operations, which we procure from milk farmers and through chilling centres and bulk coolers in the vicinity of our manufacturing facilities and the production volumes of our products are dependent upon the amount and quality of raw milk that we are able to procure. We currently procure milk from 29 districts across the states of Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. Further, we propose to increase our milk procurement by setting up new collection centres for both our manufacturing facilities and access new districts to procure cows’ milk. We also propose to purchase new 75 bulk milk coolers and 100 automated milk collection systems and install them at villages in the vicinity of our facilities and establish new village level milk collection centres in under-penetrated areas, thereby further increasing our milk procurement base.
DAIRY PLANT
Today, we have two state-of-the-art facilities: In Manchar, Maharashtra and in Palamaner, Andhra Pradesh. We also own dairy farms, located near Pune - which is spread across and has over 2,000 cows. We are nurturing only Holstein cows, which are among the world’s finest breeds. Our Rotary Parlour facilitates an automated milking process, maximizing hygiene and quality. Our technology orientation tells our capacity story in numbers 20,00,000 litres of milk, 110 metric tonnes of milk powder, 40 metric tonnes of cheese, 70 metric tonnes of ghee, 60 metric tonnes of dahi, 1,65,000 litres of UHT products, 4,00,000 litres of whey processing. Our manufacturing facilities at Manchar and Palamaner have automated production facilities to ensure operational efficiencies and quality control. We produce cheese and whey products only at our Manchar facility, UHT products only at our Palamaner facility and other products at both facilities. Our facility at Manchar has a milk processing capacity of 1.20 million litres per day and a raw cheese production capacity of 40 MT per day. We anticipate that our cheese plant will reach its peak utilization in the near future and we propose to utilise a portion of the net proceeds to expand our existing raw cheese production capacity from 40 MT per day to 60 MT per day. Our facility at Palamaner has a milk processing capacity of 0.80 million litres per day, UHT product manufacturing capacity of 0.17 million litres per day and is capable of producing several UHT treated products in Tetra Pak brick and fino formats. We use a continuous and automated process to manufacture cheese, spray drying process to produce milk powder, filtration process to produce whey powder and thermisation process to manufacture curd.
DEPOTS
We currently have 14 depots located across the country and we propose to establish seven more depots during the financial year 2016, of which two depots would be located in northern India, two in southern India, two in western India and one in eastern India. We believe that increasing the number of our depots will enable retailers to source a greater number and a wider range of our products more efficiently. Currently we have depots in Bhiwandi, Manchar, Raipur, Indore, Raipur, Kolkata, Guwahati, Palamner, Hyderabad, Bangalore, Delhi, Kanpur, Parwanoo and Chandigarh.
DISTRIBUTORS
We have a structured PAN-India distribution network to cater to our retail and institutional customers. Our widespread distribution network comprising of 14 depots and 103 super stockists, caters to over 3,000 distributors - who in turn caters to several retail outlets. We intend to appoint additional distributors and super stockists to increase the availability of our products in smaller towns in India.
RETAILERS
We have a dedicated chain of distribution to cater to Retailers PAN India. We have over 3000 distributors to further feed retailers at PAN India Level.
CONSUMERS
We believe that a strong and recognizable brand is a key attribute in our industry, which increases customer confidence and influences a purchase decision. We sell our products under our ‘Gowardhan’, ‘Go’, ‘Pride of Cows’ and ‘Topp Up’ brands, which we believe are well recognized brands and have been developed to cater to various sections of the market for dairy based food and beverage products. Our ‘Gowardhan’ brand was ranked among the top 25 most trusted brands in the food products category by The Economic Times in 2014. We sell fresh milk, ghee, butter, cheese, curd, milk powder, paneer and gulab jamun mix under our ‘Gowardhan’ brand, which is targeted at consumer consumption at home. We sell UHT milk, fresh cream, cheese, yoghurt and beverages such as buttermilk and lassi under our ‘Go’ brand, which is targeted at children and the youth generation, primarily for direct consumption. Our ‘Pride of Cows’ brand offers farm-to-home fresh milk and is targeted at customers seeking premium quality cow milk. We sell our beverages for instant consumption under our ‘Topp Up’ brand, which is targeted at the youth generation and travellers as a source of instant nourishment. We also believe that the strength of our brands helps us in many aspects of our business, including expanding to new markets, entering into agreements with distributors and retailers and building relationships with our customers, investors and lenders.