Tirumala Milk eyes Rs 2,000cr biz in FY-14
To invest Rs 200 crore in expansion this fiscal; plans foray into Delhi, Maharashtra markets. Hyderabad:...
To invest Rs 200 crore in expansion this fiscal; plans foray into Delhi, Maharashtra markets. Hyderabad: Tirumala Milk Products (P) Ltd, the second largest milk producer in South India, is eyeing Rs 2,000 crore business during the current fiscal, a growth in revenue of 33 per cent from Rs 1,500 crore last fiscal (2012-13), according to B Bramha Naidu, the company's founding Managing Director. The company, which is looking to invest Rs 200 crore on expansion over the next one year, generated profits of Rs 110 crore for the fiscal ended on March 31, 2013. It is expecting significant upswing in profits in the current fiscal. "We are setting up a new plant in Tamil Nadu with an investment of Rs 110 crore to increase our reach in that State. The plant will be ready in six months. Besides, we will also invest Rs 50 crore for our foray into highly-lucrative Delhi milk market this year," Naidu told reporters after unveiling the company's new corporate logo and packing here on Monday. The company, which markets milk and milk products under Thirumala brand, used the occasion to launch several new products including Tringo range of flavoured milk packs and 100 ml UHT milk pouches. The company had conducted an extensive study in Delhi market before taking the decision to enter the national capital. "Our initial target is to sell one lakh litres of milk in the market. We will have our own chilling units there, but plans to take processing unit on lease," he explained. The company is gearing up to enter into the new market, its first one in North India, in next six months. Besides Delhi, it has also set its eyes on Maharashtra market. "We also see good opportunity in Maharashtra and are keen to go there. But it will take some more time as we want to consolidate our position in Delhi market first," Naidu added. The company, promoted by a group of farmers led by Naidu on a modest scale in Guntur district about 15 years ago, is also betting big on valued added products like curd, ghee, butter, flavoured milk, milk-based sweets and a host of other products. "We are currently getting 20 per cent of our revenues from these value added products. We intend to increase focus on this niche area in coming years," he added. Also, it has significance presence in retail space with over 290 parlours across key markets like Chennai, Bangalore and Hyderabad. Tirumala Milk, which is eyeing top slot in South India, procures 12 lakh litres of cow and buffalo milk every day from a network of over 2 lakh farmers. It has 115 chilling centres across Tamil Nadu, AP and Karnataka. Its fresh milk reaches doorsteps of over five lakh consumers in these states with AP leading the pack. The company sells a range of fresh milk products including full cream, standardized, toned and double toned milks besides long shelf-life UHT milk.