Hyderabad, June 30, 2020: Hyderabad-based Creamline Dairy Products Limited (CDPL), a subsidiary of Godrej Agrovet Limited, is consolidating its operations. The company is keen to make substantial investments in several of its core areas of business that will enhance procurement, manufacturing and processing across India.
With a processing capacity of about 10 lakh litres per day and over 100 collection centres, CDPL has presence in the southern States of Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala and parts of Maharashtra. It also operates own dairy parlours across major cities. In addition to milk, the company has a range of value-added products that hold 30 per cent market share in the markets they are sold.
The Rs 1,193 crore company has 10 units in India. Of these, nine of them are in south, while one unit is in Maharashtra. The company has milk chilling centres, bulk milk cooling units, composite dairy plants and a milk powder plant according to the reports published in telanganatoday.com.
Capacity enhancements
Raj Kanwar Singh, chief executive officer, Creamline Dairy Products Limited, told Telangana Today, “There is a substantial capex happening every year. This fiscal, we are investing primarily in three major areas – modern equipment to improve food safety and quality, debottlenecking of capacity expansion in some plants and direct-to-farmer and direct-to-retail efforts to up procurement levels. We will be adding cold storage capacities as well, closer to the sourcing market pan-India. We have six cold storage facilities as of now.”
He added, “We have a pipeline of products in our research and development, and we will be rolling out new products in the coming months. We have also been adding capacities through new units. We have added three plants in the last 18-24 months both through acquisitions and creating green-field units. We will continue to explore inorganic opportunities.”
The company today sells milk products, right from curd, lassi, buttermilk and flavoured milk to paneer, ghee and other value-added products under the brand name ‘Jersey’. As of today, the company claims to be among the three milk brands in Hyderabad. The company works with close to one lakh dairy farmers.
On Covid-19 induced lockdown impact on sales, he said, hotels, restaurants and catering segments are impacted, and this is resulting in a dip in sales by about 20 per cent, pan-India, compared to pre-Covid sales. However, household consumption has gone up in the last few months.
New launch
The company has launched ‘Protein Plus’ milk. With 30 per cent more protein than regular toned milk, it is positioned to address the protein deficiency in India. The product being manufactured in the company’s plant near Hyderabad is priced at Rs 40 per 500 ml SKU.
He added, “We have started our launch with Hyderabad and will be rolling out the product in other southern markets soon including Bengaluru, Chennai, Vijayawada and Visakhapatnam. Hyderabad remains a key market for us contributing 30 per cent of our sales. Being a novel product, we will focus on Hyderabad for some time for establishing Protein Plus milk, before taking it to other cities and towns.”
The company has a capacity to go up to one lakh litres per day at the Hyderabad unit, Singh added.
