Umang Dairies goes on expansion mode

Umang Dairies Ltd. | Consumer Food | FMCG | BSE: 500231 | NSE: UMANGDAIRY

16 May 2013 Evaluate

Umang Dairies is in an expansion mode and during the financial year 2012-13, it enhanced capacity of its Drying Plant from 3 lakh litres per day to 4.5 lakh litres per day. It is also exploring possibilities of acquisition of some existing dairy company having synergy with its product portfolio.

It has already achieved a robust growth in its Sales and Profit for the year ended March 31, 2013. In the backdrop of an overall depressed economic scenario, an increase of 16% in the top line and 17% in the bottom line seems to be good performance.

It also operates and manages, under a long term agreement, another dairy facility belonging to the Group where it processes and packs over 5 lakh litres per day of Liquid Milk in poly pouches for Mother Dairy. Capacity utilization in 2012-13 was 101% in 2012-13 vis-a-vis 87% in 2011-12.

Capacity of this facility has also been increased from 5 lakh litres per day to 6 lakh litres per day. This makes Umang one of the few companies in India having processing facility of over one million litres of milk per day at single location.

In a bid to expand its product portfolio, Company has launched a new product Flavoured Milk on 8th May 2013. Initially the product, under the brand name 'DOODZ', has been launched in National Capital Region (NCR). Company, later on, plans to take it Pan India. Company is also working on some more products and hopes to launch some of it in second half of calendar year 2013.