You are on page 1of 2

Parag Milk Foods

Parag Milk Foods is a unique end-to-end dairy Indian homegrown dairy company. The
Company’s business model (grass to glass) extends from the purchase of cow fodder to the
management of its captive cow farm to its captive dairy (milk processing) to distribution (chilled,
cold and ambient) to the branded manufacture of downstream dairy products.

Corporate Social Responsibility (CSR)

Parag Milk Foods Limited has always believed in and worked towards “inclusive growth’-
improving the quality of life of the people they touch and in the communities where they operate.
The Company understands its moral, social and business responsibility to protect, preserve &
nurture human values and also to promote socio-economic welfare. Parag Milk Foods Limited
believes in sharing the profits not only with its members but also with the society around it. The
Company through its CSR initiatives will continue to enhance value and promote social
sustainability, sustainable development of the environment and social welfare of the people and
society at large, more specifically for the deprived and underprivileged persons.

The following CSR Activities have been conducted during: 2016-17.

1) Health Care, Education., Empowerment of Women - Designing & construction of


toilets, women rehabilitation & empowerment, adding Advasi, children, students, weaker
section, senior citizen providing medical & educational help, sanitation, health
program,community development etc . These activities were a part of the program
conducted in Maharashtra Through Gurukrupa Vikas Sanstha a nonprofit voluntary
organization.
2) Healthcare – Medical Camp organized at Manchar village in Maharashtra.

Management Discussion & Analysis


The Indian dairy sector is divided into organised and unorganised segments. 54% of the milk
produced is retained by the dairy producers (mainly farmers) for their own consumption and used
by traditional milkmen and vendors. From the remaining 46% of marketable milk, 70% is
unorganised, and 30% is organised.

Growing demand for value-added products, rising disposable income levels, changing consumer
dietary patterns, and increasing awareness regarding the nutritious value of milkbased products,
amongst other factors are driving growth in the Indian dairy market.

The Company recorded a Total Revenue of ` 17,307 Million for FY 16-17, an increase of 5.14%
as against ` 16,452 Million recorded in the previous financial year.

Impacted by the high raw milk prices, EBITDA witnessed a decline of 27% from ` 1,482 Million
in FY 15-16 to ` 1,082 Million in FY 16-17. Subsequently, the PAT margins witnessed a decline
of 190 bps in from 2.9% in FY 15-16 to 1.0% in FY 16-17.
To ensure the competitiveness and sustained growth of the Indian dairy industry, the quality of
animals, technical skills, land availability, capital, credit, infrastructure and other inputs relevant
to the value chain are critical. Tackling such challenges and managing risks and controls forms
an integral part of the business planning and review cycle at the Company.

You might also like