HYDERABAD: Indian private sector dairies are increasingly scouting for global alliances to avail technologies that could help them launch fast-moving value-added products like yoghurt, colostrum, milk powder and ghee.
Hyderabad-based Heritage FoodsBSE 0.14 %, a private sector dairy founded by Andhra Pradesh chief minister N Chandrababu Naidu, recently roped in a European partner, while Mumbai-based firms Parag Milk Foods and Prabhat Dairy have teamed up with a Swedish dairy and a Th ..
“These (technology) arrangements are primarily aimed at gaining rich experience from global players on the line of FMCG (fast moving consumer goods) companies like BritanniaBSE 0.21 % and Hindustan UnileverBSE -0.62 %, as it has become imperative for dairy players to come up with new and innovative value-added products that give higher margins,“ said Dhaval Mehta, research analyst at financial services firm Emkay GlobalBSE 3.25 %.
According to analysts, while liquid milk fetches a margin of 8-10%, valueadded products yield up to 40% mar gins in the case of beverages and ice creams. “It doesn’t involve huge investments in tying up with a global player for developing a new product, so they are getting added benefits,“ said Mehta.
India is the world’s largest milk producer, accounting for nearly one-fifth of global milk production, followed by the United States, China, Pakistan and Brazil.