Total Revenue up 14.59% to Rs. 199.24 Cr.
“Company’s good financial performance driven by spurt in demand in fast growing value added segments, strategic changes in its product mix and new customer acquisitions”
Tasty Dairy Specialities Ltd, one of the leading producers of dairy and milk products on Thursday reported 20% jump in its net profit at INR Rs 3.54 Cr for the first half of fiscal year 2020. Despite challenging environment, the company’s total revenue increased from Rs 173.78 Crore to Rs 199.24 Crores, registering a growth of 14.59%. During the period in H1FY20 Company’s EBIDTA margin stood at 3.95% while EPS stood at Rs. 1.73 per share.
Company’s Chairman and Whole Time Director Atul Mehra, said, “We have posted a decent financial performance driven by spurt in demand in fast growing value added segments, strategic changes in its product mix and new customer acquisitions. Having over two and half decades of expertise and experience, we are able to maintain a healthy growth because of our constant efforts to de-risk the business. Dairy business is largely insulated from the weakness in the economic environment as consumers are unlikely to reduce consumption of milk and milk based products. Interestingly Indian consumers are eating more of cheese, ice cream, yogurt, and ethnic dairy products such as butter milk and paneer than liquid milk helping in sustaining demand”
Among other notable development the company is upgrading its facilities and is in the process of increasing milk-processing capacity to five lakh litres of milk per day. It plans to launch many new products focusing on fastest growing categories like Flavoured milk, Butter, Yogurt and Lassi. The Company with the help of Dutch Technology is planning to start a first Flagship Store of Artesian Ice Creams in NCR and also working on strategies to enter Global markets and looking into areas of non-bovine milk.
Accordingly the company is building its retail presence across value chain and have launched exclusive company operated branded stores creating unique customer experience and to make entire range of Tasty Dairy products available under one roof. The Company has also launched several products on E-Commerce platforms to enhance revenue growth from online sales.
Mr Mehra further said, “In the longer run, we believe the dairy consumption is all set to go up significantly in India, which will ultimately benefit the company. The Company is well placed to capitalize on available opportunities in our business segments to achieve a consistent growth that will help in taking our top line to Rs 500 Cr. plus by FY2021 and attain new horizons of accelerated growth. Tasty Dairy is listed on BSE SME since February 2018. The company will be eligible to migrate to main board by early next year”
Tasty Dairy Specialities was founded by Mr AtulMehra – a first generation entrepreneur in 1992. Since then the Company has grown to become one of the leading player in the industry, handling manufacturing of milk and milk based products. Tasty Dairy started its operations with handling 200 litres of liquid milk per day and currentlythe Company have processing facility of about 3.15lakhs litres of milk per day and giving direct and indirect employment to people in and around Kanpur.Plant is approved and Export certified for exporting to non EU Countries, also approved under Halal Certified products.
The Company is situated in Uttar Pradesh, which is one of the largest milk producers State in India. Its state of art ISO 22000:2005 certified manufacturing unit at D-3, UPSIDC Industrial Area, Jainpur, Kanpur Dehat, falls in the richest milk belt of Uttar Pradesh. The Company produces a wide range of quality dairy products like Pasteurized Liquid Milk, Cream, Butter (White/Salted), Pure Desi Ghee (Clarified Butter), Paneer (Fresh Cottage Cheese), Skimmed Milk Powder, Instant Chhena Mix, Skim Milk Concentrate Dairy Whitener, Khoya, Peda (a pure Indian Sweet), Instant GulabJamun Mix, Mithai Powder among others. These branded products are packed in various consumer packing which are available in all major parts of India through a distribution network of more than 20 distributors through which the Company serves a large number of retail outlets.
Additionally, Tasty Dairy is MOO’ving up the Dairy Skills in India. In a big and fast growing country like India, the farmers need to be skilled in a wide range of areas to run profitable and sustainable dairy farming. Hence, the Company is aggressively improving the dairy skill sets of thousands of farmers and other stakeholders in Uttar Pradesh through a self-sustaining social-business model for which the Company has set up INDUCED (Indo Dutch Centre of Excellence on Dairying), an organization born out of an MOU between Tasty Dairy Specialities Limited and PUM Netherlands Senior Experts.
The Company is also passionately working with other key stakeholders such as Trouw Nutrition, Netherlands, Foundation Dutch Greenhouse Delta, Dutch Dairy Cluster and among others, to bring about a complete transformation in the way dairy farmers operate their day to day working. We are looking into the options of Milk production using block chain technology, making farmer an important part of value chain, looking at more institutional customers improving the quality of milk and its impression in people’s mind.