Modern Dairies Ltd - Stock Valuation and Financial Performance

Modern Dairies, incorporated as Modern Dairies Limited on April 22,1992 under the Companies Act, 1956. The company obtained fresh certificate on February 13,1996 consequent to change of registered office from UT of Chandigarh to State of Haryana with effect from March 20,1996 from Registrar of Companies, NCT of Delhi & Haryana. It is a part of the Modern Business Group, headquarted in Chandigarh.

The company has been promoted by Amarjit Goyal, S/o Late Lala Badri Dass Goyal of Nabha, Krishan Kumar Goyal, Alka Goyal , Modern Steels Limited and Chandigarh Finance (P) Ltd. However, MSL does not hold any shares in the company at present, hence ceased to be promoter. If it acquires any shares of the company, that will be in the capacity of Person Acting in Concert.

The company came with an IPO of Rs.433.00 lakh in the year 1993 to part finance the cost of project and got listed its securities on BSE, DSE and LSE, but the shares of the company got voluntarily delisted from DSE with effect from January 23 ,2004 and LSE with effect from March 26, 2004.

In 1993-94 the company set up a plant with capacity of 3.25 lacs kgs of milk per day based on three shifts (about 21 working hours per day) and is now processing 2.50 Lakh Kgs of milk per day on an average basis for the manufacture of milk products viz. skimmed milk powder, whole milk powder, dairy whitener, mozzarella cheese, pasteurized butter, pure ghee and pasteurized milk in pouches.

In 1997 the company made a reference to BIFR under section 15(1) of the Sick Industrial Companies (Special Provision) Act, 1985. BIFR registered MDL as a sick industrial company under section 3(1) (o) of SICA and appointed IFCI as the operating agency. Various concessions were given by IFCI, Punjab National Bank & Govt. of India (Ministry of Defence) & various steps were also initiated by the company and ultimately the company’s net worth became positive and BIFR in its meeting held on 08.12.2000 decided to take out the company out of the purview of BIFR and as such the nominee director was withdrawn.

In the year 1997, the company started manufacturing table butter and in the year 1998, the company started manufacturing mozzarella cheese. The company commissioned in the year 2002 its state-of-the-art facilities for mozzarella cheese. The company is already selling its dairy products to Glaxo SmithKline Consumer Healthcare Ltd, Britannia New Zealand Foods Pvt. Ltd., Nestle India Ltd., Hindustan Lever Ltd., and Domino’s Pizza.

The company was basically established to carry on the business of manufacturers, producers and processors of and dealers in milk, cream butter , ghee, cheese, condensed milk, malted milk , milk powder, skimmed milk powder, whole milk powder, ice milk, ice cream , milk foods, baby foods, invalids foods and milk products and milk preparations of all kind.

With stringent self-regulation, prudent economic foresight and sheer hardwork, the company has established a significant presence in the food and health space. They have over the years won the appreciation of renowned companies in their domain. 

Product range of the company includes:

Milk & Milk products

• Skimmed Milk Powder 
• Partially Skimmed Milk Powder 
• Full Cream Milk Powder 
• Coffee Whiteners 
• Pasteurized Milk in sachets of all variants 

Cheese

• Cheddar
• Mozzarella
• Cottage Cheese

Nutritional Ingredients

• Edible Casein 
• Milk Protein Concentrates 
• Whey Protein Concentrates 
• Lactose 

Milk Fats

• Butter
• Ghee

Customized Products 

Clientele:

• Glaxo SmithKline Consumer Healthcare 
• Nestle India 
• Britannia - New Zealand Milk 
• Mother Dairies 
• Domino's Pizza 
• Pizza Hut 
• Britannia Industries 
• Coca Cola - India 
• Cadbury's 
• Raptakos Brett 
• Hindustan Lever 

Achievements/ recognition:

• Quality Policy - September1997 
• ISO 9001 - July 1998 
• HACCP (Food Safety) - December 2000 
• ISO 9001:2000 - September 2001 
• Nestec Audit First Priority Level - March 2003 
• ISO 14001 (Environment)- March 2003