DAIRY PRODUCTS

The dairy and fresh foods company has appointed Chennai-based investment bank Veda Corporate Advisors to help it with the funding process.

Beverage and food companies have written to the Prime Minister’s Office, seeking time to transition to a commercially viable food-grade alternative material to plastic with which to make straws.

Commodities for which the average Indian consumer is now paying a higher buck are increasing, including the ubiquitous milk, that plays an essential role in most Indian households. Wholesale milk prices have increased 5.8% on an annual basis in India, and analysts believe that as demand picks up, consumers will have to shell out more, in the coming months.

Amul made its appeal in a letter reviewed by Reuters, dated May 28, that was sent to Prime Minister Narendra Modi's office ahead of a July 1 ban on straws packaged with small packs of juices and dairy products, a market estimated by an industry body to be worth $790 million. Amul sells billions of small dairy cartons with plastic straws attached every year.

This revenue growth will be driven by a healthy demand for VAP (28 per cent of overall sales), even as sales of liquid milk stays steady and the full-year benefit of retail price hikes implemented last fiscal is realised, it noted.

The improved operating performance, along with adequately managed balance sheets and better control over working capital will support a revival in the capex plans of dairies, and yet keep their credit outlooks ‘stable’. An analysis of 40 dairies rated by CRISIL Ratings, which account for 60% of the organised sector revenue of close to Rs 1.05 lakh crore, indicates as much.

Country Delight will use the funding for geographical expansion, enter new product categories and deepening its existing product portfolio.

Despite being marketed as an alternative, plant-based products may not be the same as dairy.

Bharat Forge, GSK Pharmaceuticals, Century Plyboards, VIP Industries, MCX, Raymond, Ami Organics, Dodla Dairy and Greenply Industries are among companies which will announce their quarterly earnings today.

The agreement was signed by representatives from both sides in presence of Chief Minister Himanta Biswa Sarma at the day-long Northeast Dairy Cooperative Conclave 2022 held at Sankardev Kalakshetra complex.

“We want to widen the range of dairy products from milk, ghee, curd, lassi, paneer. We keep studying consumers' requirement and accordingly launching new products,” ITC Chief Operating Officer for dairy and beverages Sanjay Singal told PTI on the sidelines of a programme at the Bengal Global Business Summit.

India last week refused to waive an impending ban on straws that are packaged with small juice and milk beverage packs, stoking fears in the $790 million industry that includes players like PepsiCo, Coca-Cola, India's Dabur and Parle Agro.