The diversified fast moving consumer goods major CavinKare bets big on its dairy business, and plans to focus more on expanding its retail horizon for its dairy products.

“Considering the ever-expanding demand for dairy products and the innovation strength our company has, I have enough reasons to believe that our dairy business will lead us to the next phase of growth,” said CK Ranganathan, Chairman and Managing Director, CavinKare.

The company’s dairy products, such as milk, curd, milk powder, cheese, ghee and paneer under the brand Cavin, are currently available across Tamil Nadu.

It recently took its ‘milkshake’, which does not require a cold-chain to distribute, to the North. At present, this segment contributes roughly ₹250 crore, which is 20 per cent of the company’s turnover of ₹1,250 crore.

It is also exploring possibilities of exporting its dairy products to milk-starved countries such as Singapore, Malaysia and Indonesia.

“We have already sent a few consignments of milkshake and milk powder to these countries, and hope to bag some big orders from there.”

Before expanding is retail footprint, the company wants to ensure manufacturing facilities are in place.

It currently owns two facilities – in Kanchipuram and Erode.

“Henceforth, our expansion will be through outsourcing. There are a lot of co-operatives willing to come onboard. We are currently in talks with such co-operatives in Dindigul and Pollachi in Tamil Nadu,” Ranganathan said.

According to him, the market for dairy products in the country is close to ₹2 lakh crore, with not many big players at the national level. Of course, there are brands such as Amul and Nestle.

But barring its curd, Nestle is predominantly a non-cold chain player, he said.

Related Topics
comment COMMENT NOW