About the Company

Parag Milk Foods was founded in 1992. It is an integrated dairy company and one of the
largest private dairy players, and has a milk-processing capacity of 2 million litres per day. It
is present in over 17 dairy product categories and markets products under the brands
Gowardhan, Go, Pride of Cows, and Topp-up.

Currently, the biggest contributors to its revenue (>20% each) are fresh milk, ghee/butter, and
cheese/paneer. It intends to increase its dairy-based beverages portfolio under the Go brand,
introduce milk-based high-protein drinks, and a new variant of curd with higher protein and
lower fat content. It also intends to set up a whey-proteins manufacturing facility and increase
its presence in the premium health supplement space. Because of high proportion of sales
from value-added products like cheese, UHT, flavoured milk, buttermilk and curd, and
branding in the otherwise low-margin ghee business, Parag has consistently delivered gross
margins of 22-25% in FY11-16.

Financials of the company

Market Capitalisation 2281.19 Crore

272.10 (NSE)
Current Trading Price
272.20 (BSE)

Total Sales 1730.68 Crore

Operating Profit 159.22 Crore

Return on Capital Employed 16.32%

Sales Growth 5.20%

Profit Growth 46.91%

Market Capital to Sales Ratio 1.15%

48,70% - Promoters Holdings

Holdings 32.06% - FIIs and DIIs

19.24% - Others

Dividend Yield 0%
Vision of the Company
The company strives to optimize the potential of milk across a host of exciting dairy products
to fill each day with imaginative and healthy options for their consumers. They believe that
milk in all its wonderful forms is one of natures most nutritious foods and anyone who
consumes milk products daily, benefits from vital nutrients that the body needs. Fulfilling
dietary nutritional requirements is a source of great joy and creativity for them.

A bigger company also has larger responsibilities. While India is the largest producer of milk
in the world, and the commodity has become an important source of income for 70m rural
households, the output per animal is dismal. A key area of focus for the company is to help
farmers and milk producers to boost animal productivity. The enhanced participation and
involvement of the private sector is key to further agricultural marketing practices and to
make milk and its derivatives more accessible and affordable to India. In this regard, they
deploy state- of- the- art technology to enhance productivity. They also seek to drive
innovation in milk and milk products through their well-diversified portfolio of brands that
deliver dairy products to international standards of quality. To add value to peoples lives
every day, the company lives and breathes their corporate slogan of Ideas for a new day.

Mission of the Company

The company has divided their mission under 5 heads

Their Consumers They should be able to trust their brands. This is why food quality is a
fundamental requirement for Parag. They make every effort to ensure that their processes
are safe, and that high-quality standards are maintained throughout the supply chain.
Dairy Innovation Focus on dairy innovation, enables them to produce an array of
products that make milk moments nutritious, healthy, and enjoyable and they market them
under well targeted portfolio of brands.
Partnership with the dairy farmers They are working with dairy farmers to enrich their
lives, and set new standards for sustainable dairy production. They want to use their
resources in a sustainable manner. By having a long term environmental strategy, they can
help make this happen.
Good citizenship They want to influence the development of society and set an example
through their best practices. To make quality milk and world class dairy products accessible
to the masses and as a large private sector dairy player, they have the opportunity to do so.
Building long-term relationship with local communities The company strives to
uphold respectful and constructive community relations, and contribute to the development
of communities by building long-term relationships with people, businesses and
organisations.