EnNutrica Proteins Division, Dindigul Farm Product Pvt Ltd., is Established In 2011 and has started the Production of Skimmed Milk Powder, Milk Protein Concentrates, Milk Whey Powder, Whey Powder, Whey Protein Concentrates, Evaporated Milk, Whole Milk Powder, Dairy Whitener, and Casein from Skimmed Milk By 2015. The Procurement of milk is from Raaj Group’s Milk Division “Raaj Milk“, a 250,000 Litre milk per day Liquid Milk Dairy viz., A.R Dairy Food Pvt Ltd (Estd: 1998) at Dindigul, 50 Kms Away From The Dindigul Farm Product Pvt Ltd (DFPPL) and has a well-established network of 14 Chilling Centers And effectively have a procurement zone of almost 18 Different Districts in Tamilnadu.
The Packed Liquid Retail Pouch Milk and Curd, is Marketed in Tamilnadu (Brand: Raaj) And Kerala (Brand: Malabar). The Proteins are supplied to Businesses in the name of Formula 7+, Formula 8 And Formula 8+. The High Quality Proteins are also available directly via The ActivDay Retail Packs. The Retail Version of the Proteins are named PRIME, CHOCO, Premium And JUNIOR to cater to all customers.
Company's procurement operations consist of an average procurement of approximately 50,000 litres per day of milk directly from farmers and around 30,000-1,00,000 litres per day of whole milk from open market or third-party suppliers. They have built a network of more than 150 village collection centers, with direct access to more than 4,000 farmers and more than 50 dairy farms. They procure whole milk either directly from the farmers and through third party suppliers.
Dindigul, market their products under the brand name ENNUTRICA, Activday and currently supply to a wide number of customers from different industries. For financial year 2022-23, they have sold products in more than 15 states domestically and 3 countries internationally. However, they aim to expand their international operations by looking to enter more ASEAN and European countries. They mainly supply products to Dairy Industry, Food Ingredients industry, nutrition industry, dairy industry, ice cream industry and baking industry.
INDIAN DAIRY INDUSTRY
The Dairy sector in India has grown substantially over the years. As a result of prudent policy interventions, India ranks first among the world’s milk producing nations, achieving an annual production of 221.06 million tonnes during the year 2021-22 as compared to 209.96 million tonnes during 2020-21 recording a growth rate of 5.29%. FAO Food Outlook (November 2022) reported 1.34% increase in world milk production from 912.6 million tonnes in 2020 to 924.8 million tonnes in 2021 (estimates). This represents a sustained growth in the availability of milk and milk products for the growing population.
The total size of dairy market was about Rs. 13.17 lakh crore in 2021. The dairy market has been growing at about 15 % per annum during last 15 years and is expected to reach a market size of about Rs. 30.84 lakh crore by 2027 as per International Market Analysis and Consulting Services Private Ltd. (IMARC) 2021 report. The liquid milk market represents about half of the total dairy market in the country. It is projected that market for liquid milk will grow by about 16% during next 5-6 years while for products like cheese, flavoured milk, lassi, butter milk, whey and organic milk will grow at more than 20 % per annum. The annual growth of other traditional dairy products like paneer, ghee, ice-cream, khoa, curd, etc. would be in the range of 11 % to 20%.
In terms of volume, the total household consumption of milk and milk products was 16.1 crore tonnes. This is expected to grow to 26.7 crore tonnes by 2030. Milk production in the country in 2021-22 has been estimated at about 22 crore metric tonnes registering a growth of 6% per annum during last 5 years. The per capita availability of milk has reached to 444 grams per day in 2021-22. The milk production is estimated to reach about 30 crore tonnes by 2030 as per NITI Aayog report. Therefore, strengthening of dairy processing infrastructure is required for catering to the growing dairy market in the country.
SHARE OF MILK PRODUCTION AND SUPPLY
India, about 46% of the milk produced is either consumed at the producer level or sold to nonproducers in the rural area, he balance 54% of the milk is available for sale to organised and unorganised players. Organised sector comprise of Government, Producers’ Owned Institutions (Milk Cooperatives & Producer Companies) and Private players which provides fair and transparent system of milk collection round the year at the village level. Unorganized/informal sector involves local milkman, dudhias, contractors etc. and they are mostly found to be opportunistic, as there is no uniformity of milk price paid to producers and it varies depending upon the situation. Possibility of adulteration of milk is higher among these unorganized groups. In the areas where competition is high and presence of formal sector is strong, they generally give higher prices and at the same time, they don’t offer remunerative prices to the producers where organized sector is not present.
ROLE OF DAIRY DIVISION
▪ Increase in livestock production and productivity and increasing share of organised sector through improvement in procurement, processing and marketing of milk and milk products.
▪ Trade policy relating to milk & milk products.
▪ Monitoring of milk situation and Policy decisions to maintain supply of milk & milk products to the consumers and reasonable prices for milk to the milk producers.
▪ Approval of schemes/projects, review of progress, re-appropriation of physical & financial targets, audit and inspection, scheme/project governance, signing of loan agreements with external/ domestic agencies, hedging liability, repayment of external loans etc.
▪ Quality improvement of milk and milk products in compliance to FSSAI Act.
▪ Formulation of national action plan and policy for implementation.
▪ Collection and updation of requisite data for suitable policy interventions.
DOMESTIC MILK SCENARIO :
The average milk procurement during the month of November, 2022 was about 5.45% higher while liquid milk sale was about 8.37% higher when compared to November 2021. During November 2022, the stock of Skimmed Milk Powder (SMP) in cooperative sector is lower by about 55% and the stock of white butter decreased by about 78%. This scenario is mainly due to decreased procurement of milk and higher sales reported by Dairy Federation/Cooperatives.
DINDIGUL FARM PRODUCT LIMITED (ENNUTRICA) STRENGTHS & STRATEGIES
1. Diverse product basket
2. Milk procurement process
3. Manufacturing Facility
4. Quality Assurance and Standards
5. Experienced Promoters and Management Team
6. Continue to invest in their manufacturing capabilities thereby expanding their offerings
7. Expand their presence across geographies and diversify their customer base
8. Focus on increasing operational efficiencies to improve returns
DINDIGUL FARM PRODUCT LIMITED (ENNUTRICA) RISK FACTORS & CONCERNS
1. Real or perceived product contamination could result in reduced sales.
2. The company do not receive firm and long-term volume purchase commitments from their customers.
3. Company's proposed expansion plan relating to their processing facility are subject to the risk of unanticipated delays in implementation, cost overruns.
4. Dindigul generate their major portion of sales from their operations in certain geographical regions especially Tamil Nadu, Gujarat and Himachal Pradesh.
5. The business is subject to seasonal volatility which may contribute to fluctuations in their results of operations and financial condition.
6. Their Corporate Promoter Indrayani Biotech Limited does not possess the relevant experience in dairy industry.
7. Their processing operations are dependent upon availability of skilled and unskilled labour.
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