Prabhat Dairy today announced new strategies for its B2C segment, which included making an entry into dairy beverages and also launching its ‘Prabhat Goodness Zone.’ “With the Indian beverage market sized at Rs 65,000 crore, our target is the 130 crore Indian population and milk beverages, which are already becoming popular among consumers, are witnessing exponential growth of about 54%,” Vivek Nirmal, Joint Managing Director & CEO, Prabhat Dairy Ltd, said here.
Highlighting improved profits and a maintained incremental revenue in line with its Vision 2020, Nirmal said the dairy beverages market growth of 20-23% annually is poised for a further triple increase by 2020 – spurred by high demand in the healthy drink segment. “Prabhat’s major beverages, milkshakes, Lassi and Chaas will be available in tetrapak and the company plans to expand its beverage market in two Phases – Phase I covering Maharashtra and Tier I and II cities which are still +under-penetrated+, and Phase II to witness pan-India expansion in this regard,” he said.
Replying to questions, he said the percentage of carbonated drinks (with barely 3% annual growth) were declining towards healthier alternatives like milkshakes, lassi and chaas (which grew by 20% annually) as consumer were seeking “On-the-Go” nutrition through convenient dairy drinks that comprise exotic and Indian flavours. “With growing per capita income alongside increasing Tier II and III cities (where Malls are yet to be tapped), lack of “cold chain” in rural areas, and lots of manufacturing opportunities being witnessed at present, we are largely focusing on customer sampling of premium dairy products through our +Goodness Zones+
Describing the company’s venture into the retail segment through the launch of its “Prabhat Goodness Zone” in Maharashtra as an ambitious project aimed at increasing its market share in the State’s B2C segment, Nirmal said the target is creation of 500 +Goodness Zone+ stores by FY2022, besides its piloting the Goodness Zones in Ahmednagar district and viewing speedy expansion under its renewed identity across the state.
“Our retail chains will cater as counter sales and local distribution points for Prabhat milk and milk-based products. The Goodness Zones will provide us direct access to newer markets and millions of customers in a short span,” he said while noting that the company’s revenues were growing consistently annually with Total Revenue for FY 2017-18 increased by 10.3% to Rs 1,557 crore against Rs 1,411 crore in FY2016-17, Profit Before Tax growing by 84.6% to Rs 21.9 crore in FY2017-18, and Gross Profit increasing by 26.5% to Rs 348 crore in the same period due to lowering of milk prices.
Attributing this growth to sales of cheese doubling over last year, he said milk, paneer and curd are other products driving major sales and increase in institutional sales and growth in the B2C segment — due to introduction of new products should further provide the base for the company’s overall performance in the coming years. The company is targeting 500 entrepreneurs – who own their own shops — in its distribution and retailing efforts for its dairy products, he added.
