Gowar dhan Dair y About Gowar dhanWhen Ravi Shastri drove across the Melbourne Cricket Ground in an Audi 100 on March 10, 1985, little would he have realised that he had inspired a budding entrepreneur in a small town back home. Devendra Shah, then 21, who was watching the proceedings live on television in Manchar in Pune district decided he too wanted to become a “champion of champions” just like Shastri, and own an Audi car one day. “Like any other youngster, I was ambitious and dreamt of owning the car. And I wanted to do it with hard-earned money,” says Shah, who is now chairman of Parag Milk Foods, a Rs 320 crore company which manufactures the ‘Gowardhan’ brand of liquid milk and milk products. After graduating in commerce, Shah dabbled in other businesses like clothes retailing but it was not until 1989 that he found his true calling—the dairy business. Courtesy the license Raj, milk procurement was being done only by state agencies and co-operatives. But the agencies used to shut for two days every week (called ‘milk holidays’), forcing dairy farmers to throw away milk accumulated during these days. Shah, who hailed from a family of traders that had settled in Manchar four generations ago, started procuring milk on the milk holidays in 1989 as a “social obligation”. “The benefits of Operation Flood had started accruing but we did not have the infrastructure to put the surplus milk to good use. I tied-up with people in Pune city and started selling the procured milk to them,” says Shah, whose family had been into supplying seeds to local farmers for over a generation. The big break for Shah came in 1991 when the then Finance Minister Manmohan Singh in his budget speech announced de-licensing that included the dairy sector as well. This paved the way for private players to procure milk from farmers. Shah launched Parag Milk Foods in 1992, and being a capital-intensive business he invested Rs 1 crore. The money was raised from a combination of accruals from Shah’s earlier ventures and borrowings from a local co-operative bank. The timing wasn’t right though, as the dairy business was at its lowest point then. Milk went waste due to poor infrastructure and an infamous anecdote goes that a dairy in Mumbai had to flush “It is the herds that go together in a flock. you cannot survive. It’s the same today also. Whenever a farmer waves at his Audi A6—he realised his dream of owning one six months ago— on the roads of Manchar.” he smiles. Ltd. Shah spends more time on new projects. Shah had his first task cut out—addressing issues at both ends of the spectrum—and he did that well enough. Parag now procures over 8 lakh litres of milk daily. this is a recession-proof business as people will continue to consume milk products. “I was taught to take risks by my parents. Without sounding rhetorical. in 1992. founded by Parag Milk Foods Pvt. he adds. If you can’t procure the milk.” Perhaps. adding that from a modest beginning of 20. “In the 1980s. when my family owned a Premier Padmini.excess milk out into the sea.” he quips. and distribution networks were poor in urban areas. and I get some kind of a high by taking risks. Somebody has to act like a cheetah and go for the kill. and now form the core team at the company. And while some of the biggest names in the business come from the cooperative sector. and on branding and ‘farmer relations’ traveling regularly to Mumbai (165 km and three hours away). “At the core of success in a business like this are your relations with farmers. we pride . is one of India's largest private dairies.000. milk powder and butter oil to 47 countries and recently launched its dahi (curd) in the market. Gowardhan. and instead opt for private ownership. everyone in the town knew it belonged to us.” says Shah about his philosophy. Earlier this year the company received Rs 60 crore in private equity funding from India Business Excellence Fund managed by Motilal Oswal Venture Capital Advisors. Located in a lush green village called Manchar in Maharashtra (60 km from Pune). “Thankfully. respectively. While younger brothers Parag and Pritam joined the dairy business in 1993 and 1994. Shah always stops to speak with him. Dairy farmers didn’t have high-yielding varieties of cattle.” he says. The company has been exporting butter.” proclaims Shah. I too have been able to achieve a lot. Shah says he plans to open a factory near Bangalore soon to address the southern market.000 liters per day.000 litres in 1992. With a sizeable brand presence in western India.with an output capacity of 1. “I was ambitious and it’s not a bad thing to be so. We aim to close 200809 with a turnover of Rs 480 crore. it was this trait that led Shah to steer clear of the widely accepted and fairly successful route of starting a co-operative. This has been a path breaking initiative by the company and will put the Company in the league of global dairy companies once scaled up. Geo Foods Corporation. Rising population coupled with increasing consumerism will boost demand for dairy products. Parag is also targeting an initial marketing of 300 tonnes a month of cheese in the country. The cheese market is growing at 30 per cent a year in India because of the rising popularity of fast-foods and snacks such as pizza among youngsters. butter. Butter.Dahi. Gujarat and Maharashtra account for 70% of cheese consumption in India.ourselves on owning the largest cow farm in India as well as Asia's largest cheese plant. curd. ghee. According to Mr. cheese. Parag Milk. The amount will be utilized by Gowardhan for its capacity expansion along with branding & marketing initiatives.” Investment in the company offers MOVCAPL an opportunity to participate in an unfolding story of excellence in entrepreneurship in the fast growing dairy space. cream. Companies like Parag. Chairman of Parag. Following the global trends. is one of the few players that use 100% cow milk for all their products. Raamdeo Agrawal. The company had recently signed a MoU with a South Korean company. Parag has a state-of-the-art Bhagyalaxmi dairy farm spread over an area of 30 acres and equipped with the latest rotary parlour for milking cows. “India is rapidly moving from a USD 1 trillion economy to a USD 2 trillion economy with steadily increasing disposable incomes. Processed Cheese. to supply 300 tonnes of mozzarella cheese a month. “Company would be investing around Rs 160 crores over the next 2-2. Its product portfolio includes liquid milk and various dairy products such as milk powder.5 years expanding its capacity to procure and process around 20 LLPD and Rs 50 crores lending to farmers for Backward Integration as well as for development of the Cow & the Dairy Farm. Devendra Shah. committed to international standards of product quality. Ghee. butter milk and gulab jamun mix. including 150 tonnes in Gujarat alone. According to Mr. Gowardhan would concentrate on expanding its value added product portfolio . proprietary foods like Dairy Whitener and Gulab Jamun Mix powder under the brand names of "Gowardhan" and 'Go' . based out of Maharashtra. will hugely benefit from this upsurge in consumerism. Whole Milk Powder.all made from 100% fresh cow milk. Gowardhan is an ISO 9000 and AGMARK certified company. Chairman of MOVCAPL. which also exports to Parag. Cow milk is also gaining importance in India for its better nutritional value. which have established strong procurement practices and internationally accepted quality products. Their product portfolio includes Skim Milk Powder. we have cornered a 30 per cent market share of cheese sales at modern retail outlets in Mumbai. Cow milk constitutes about 41% of total annual milk production in India and has started to create a strong niche as compared to buffalo or mixed milk.across India. Germany and France. a fourhour drive from Mumbai. the cows step onto a 20-feet rotating circular platform and rubber hoses are attached to their udders. Chairman. purchased at Rs 40. Mumbai based Investment Bank . "Cheese from this plant is right now being sold in South Korea." claims Shah. The 3. citing that each cow produces 25 litres of milk a day. acted as the exclusive financial advisors to Parag for the deal. At a dairy farm in Manchar on the outskirts of Pune. Parag Milk Foods. ." says Shah. Our competitors are the Krafts and Laughing Cows of the world. They wait like shoppers in the billing queue of a supermarket. It has invested Rs 110 crore to build what it claims is Asia's largest cheese plant (with a capacity to process 40 tonnes of raw cheddar daily).000plus Holstein cows. are treated to a special diet of calcium-rich feed and mellifluous bhajans in their sheds. With a turnover of about Rs 550 crore. "The music increases their milk produce. followed by USA." gushes Devendra Shah. The company has spent over Rs 4 crore on its rotary milking parlour. which started its operations in Manchar in 1993. Russia. Within a few months of our launch. the company's focus has shifted to products like cheese and flavoured yogurt. quiet and orderly.Ladderup Corporate Advisory Private Ltd. "Minimal human effort. the cows themselves kick away the hoses. According to Dairy Book 2007. we are not even competing with the Indian dairy players. But in the last one year. the first in India. And cheese is where Shah's immediate ambitions lie. Once milked. maximum milk produce.000 apiece. Milk production in 2005 was around 94 mn tonnes and is estimated to be over 100 mn tonnes currently with an annual growth rate of 4%." he adds. This investment from funds managed by MOVCAPL will further propel the growth of Gowardhan.” Dairy industry in India has come a long way from dependence in 1960s & 1970s to self-reliance. With our superior product quality. about 200 cows await their turn to be milked. India is the largest milk producing country in the world. These are the standards we need to adopt if we need to compete with international players in products like cheese. "It's total cow comfort technology. Parag Milk Foods has been selling milk and ghee in Pune and Mumbai since the mid-90s. One by one. After all." Bagla's also exploring tie-ups with international companies. With Cadbury's distribution strengths. Kraft. there's Amrit Group in Kolkata.7 million farmers wake up early each morning to milk their cows and then give it to us is our biggest strength. that has increased over six times to Rs 6. and huge. lounging in his spartan office in Anand in Gujarat. He is no stranger to pretenders challenging Amul's dominance. Groupe Danone is looking at tapping into the small. "We hope to bring some of our big brands like Kraft Cheese and Oreo cookies to India. multinational giants like Kraft (which recently acquired Cadbury globally. Amul was viewed as a brand that would not survive the pressures of competition in the post-liberalisation era. Vyas and Amul have not just survived the onslaught of competition. but the brand name under which the cooperative sells its products. It really does not worry us. Today. Other than Parag. as MD of India's largest and only billion-dollar cooperative dairy player. unlike Parag Milk Foods' state-of-the-art dairy farm.Some 450 km away. MD. is. "The fact that 2. the Gujarat Cooperative Milk Marketing Federation (GCMMF). Says Harish Bagla. cheese. recently told BT. Finally. But the threat today is different. Vyas has managed the cooperative since 1994. Amul. GCMMF sounds like a mouthful. When he took over Amul. Vyas has seen competitors make more audacious claims in his 16-year tenure as MD. which plans to launch valueadded milk products.700 crore. but fast-growing flavoured milk market. "Amul has seen competition in the past." he says matter-of-factly. Taking on competitors in a category or two at the same time is something Amul has done before. dahi. paneer and ice cream. don't forget . This despite the fact that. Vyas would be tempted to disagree with Shah's claims. are upping the tempo.000 crore. perhaps. That's because never before has Amul been buffeted by as much competition as it is today. but have often taken the fight to their territory (as it did in ice creams a decade ago. Amul's milk is collected by dairy farmers every morning largely by hand. when it dethroned Hindustan Unilever Ltd (HUL)—then Hindustan Lever Ltd—from pole position). lassi. thereby getting a passage into India) and Groupe Danone are beginning to flex their muscle." Sanjay Khosla. the mecca of the Indian cooperative movement. A mildmannered.M. across every category it operates in—right from pouched milk and butter to cheese and ice creams. B. Regional players. President (Developing Markets)." says Vyas. we can push some of these brands in India. Back then. Other than HUL and Nestle. It's currently testing a chocolate-flavoured fortified milk in Hyderabad. too. GCMMF's turnover was a little over Rs 1. portly man of 59 years. butter. the most recognised and revered dairy brand across the country. Amrit Group: "We are coming up with various value-added products like flavoured milk. In mid-February. manufacturers of Gowardhan one of India’s largest private dairies. craftsmanship and sheer indulgence Gowardhan manufactures dairy products that are not just 100% natural. procured from its own cow farm .is 100% natural cow's milk. "Mother Dairy sells approximately 29 lakh litres of milk per day in Delhi NCR. That's because the milk. Mozzarella. Amul made a bold claim when it declared itself as the #1 player in the branded packaged milk segment. 2010: Parag Milk Products (P) Ltd. Spreads. Mother Dairy Fruit & Vegetable. 22th February. the New Delhi-headquartered Mother Dairy shot back. with sales of 1.‘GO’ Cheese. in the Delhi market. The company’s cheese products will include Cheddar. The biggest threat to Amul. CEO (Dairy & Foods). a subsidiary of the National Dairy Development Board (NDDB). Bangalore. The company’s cheese products will include Cheddar. which is about twice as much as that of the nearest competitor. manufacturers of Gowardhan one of India’s largest private dairies. Mozzarella. launched its new brand of cheese. Wedges and Powders made from 100% cow’s milk. What's more. launched its new brand of cheese. GO cheese promises to bring for the Indian consumers many exciting forms and flavours of cheese .45 million litres daily. Mother Dairy.the largest in Asia .the use of latest European technology in our manufacturing units ensures superior quality and freshness of our products. though.but also lighter and rich in calcium. health. giving them the unique Gowardhan taste and flavour." says Paul Thachil. Parag Milk Products (P) Ltd. Spreads. nutrition. Wedges and Powders made from 100% cow’smilk.Johnnies-come-lately like Zydus Wellness—which has carved a niche for itself in butter alternatives —that are opening up new markets. Within a day.‘GO’ Cheese. a traditional stronghold of Mother Dairy. could well come from its one-time friend but now a bitter rival. Gowar dhan Pr oducts Gowardhan brands cover a wide range of products to cater to consumers around the world who put a premium on taste. powders and spreads. Mr. Parag Milk Foods said. to pizza cheese and shredded Mozzarella. Go Cheese is the only cheese in India made to match International Standards. near Pune which is also the Asia’s largest cheese plant and has a capacity of over 40 tons per day. which ensures a longer shelf life. Our motive is not only to provide the products that are high on taste and contemporary but at the same time we ensure that it is absolutely pure and matches international quality standards. pasta. Enhance the flavour of the food by just sprinklings this delicious powdered Cheddar cheese topping onto vegetables. Mozzarella Pizza Topping. Pizza Cheese. The cheese will range from wedges and slices. nurturing. This high quality cheese is made using UHT technology.for the first time in India. “We have always cared about the quality of the products that we offer to our consumers. all of our cheeses are made from 100% cow's milk. Cheddar Cheese Powder. GO Cheese comes with some exciting variety like Go Cheese Slices. Devendra Shah. The farm follows specialized farming. Processed Cheese and Cheese Wedges. Keeping with our dairy philosophy. . Cheddar Cheese. The milk for the cheeses is procured from one of the best milk shed areas in Western India. Creamy Cheese Spread. Chairman. soups or even popcorn.” GO Cheese is made in Parag Milk Foods’ cheese plant located in Manchar. thus the milk obtained is wholesome and ideal for making superior quality Cheddar. GO Cheddar Cheese Powder : To give a rich cheesy flavour to food Go Cheddar Cheese Powder acts wonder. which ensures a longer shelf life. we are now ready with a delectable range of cheese never before offered to the Indian consumer. This high quality cheese is made using UHT technology. breeding. Go Cheese is made from 100% pure cow's milk. Mozzarella and Processed cheeses to international specifications. renowned for the quality of its cow milk. milking practices and immediate chilling. With our state-of-art cheese plant. GO cheese has high calcium content. GO Cheese Slices: GO cheese has high calcium content. pasta. It has a creamy texture and a clean cheddar flavour that gives great taste to food. traditionally aged over 6 months.Mexican Twist. Made from mild Cheddar cheese. It is apt for adding on flavour to pizza or to delectable pasta! GO Creamy Cheese Spread: Go Creamy Cheese Spread is available in three delicious flavours . Enhance the flavour of the food by just sprinklings this delicious powdered Cheddar cheese topping onto vegetables. GO Cheddar Cheese: Made from mild Cheddar cheese.Mexican Twist. Go Shredded Mozzarella is a cheese with a firm close texture that lends itself to many dishes. It has the perfect mix of texture and taste for making delicious pizzas at home! Go Pizza Cheese is a blend of mild Cheddar and traditionally made Mozzarella cheese with superior melting and a stringy texture. soups or even popcorn.To give a rich cheesy flavour to food Go Cheddar Cheese Powder acts wonder. Go Creamy Cheese Spread is available in three delicious flavours . GO Pizza Cheese: Go Pizza Cheese is a blend of mild Cheddar and traditionally made Mozzarella cheese with superior melting and a stringy texture. traditionally aged over 6 months. A smooth spreadable texture and versatility in cooking is what makes Go Creamy Cheese Spread a must have item in all household. soup or as a creamy pasta sauce base. Go Shredded Mozzarella is a cheese with a firm close texture that lends itself to many dishes. It is perfect to use in all sorts of savoury food items or can be drizzled on bread slices. It is apt for adding on flavour to pizza or to delectable pasta! Soft and stringy. Tomato . It has the perfect mix of texture and taste for making delicious pizzas at home! GO Mo zzarella Pizza Topping: Soft and stringy. It has a creamy texture and a clean cheddar flavour that gives great taste to food. Tomato Salsa and Black Pepper. GO Cheese Wedges Go Cheese Wedges have a delicious. A versatile cheese can be added to a casserole or grate over a salad or even as a slice for a sandwich. Dair y Plant. Tomato Salsa and Black Pepper. wholesome and delicious dairy products. who seek all-natural. mild creamy taste and is available in 3 delicious flavours Mexican Twist. A versatile cheese can be added to a casserole or grate over a salad or even as a slice for a sandwich. Tomato Salsa and BlackPepper . Right from . This cheese is mild in flavour. It is perfect to use in all sorts of savoury food items or can be drizzled on bread slices.of international standards and equipped with the best European technology. with a medium-firm consistency and made from blends of Cheddar cheese. soup or as a creamy pasta sauce base. Go Cheese Wedges have a delicious. It comes in a portable form that's perfect for the lunch box or as an on the go snack. with a medium-firm consistency and made from blends of Cheddar cheese. Manchar. It comes in a portable form that's perfect for the lunch box or as an on the go snack.Salsa and Black Pepper. A smooth spreadable texture and versatility in cooking is what makes Go Creamy Cheese Spread a must have item in all household. mild creamy taste and is available in 3 delicious flavours Mexican Twist. GO Processed Cheese This cheese is mild in flavour. Pune The extensive range of our products are processed at this ultra modern dairy. Our dairy plant is fully automated . is rapidly scaling up to cater to the ever expanding circle of customers in India. Infr astr uctur e & Technolog y Our commitment to quality and innovation has resulted in huge investments in infrastructure and technology. Our integrated dairy and cow farm at Manchar. housing upto 2500 cows and equipped with one of India's first Rotary Parlors. Cheese Plant.reception of milk to the finished product. Morocco (world famous manufacturers of cheese) Institutional Sales: Gowardhan is a one-stop. Bha g yalaxmi Dair y Far m Spread over 35 acres. South East Asia and Africa. wedges spreads and a range of exciting flavours under a new brand name. nurturing. which has mechanized the whole milking process and in turn maximized quality and hygiene. we maintain strict no-human-contact through the entire manufacturing process.allows the UHT treated cheese to be stored in ambient condition without refrigeration upto a period of 6 months in tropical countries like India. The company is readying itself to flood the national markets with its UHT treated. has an output capacity upto 10 MT of butter. Some of our significant customers include Yakult for our skimmed milk powder and BEL. This world class facility meticulously follows specialized farming. efficient and reliable supplier to reputed hotels. butter. superior quality cheese which will be available in a variety of forms such as slices. 25 MT of ghee and 10 MT of dahi (yoghurt) and 65 MT of milk powder. . institutions and caterers. The wide range of products we supply include cheese. restaurants.000. imported from Stephan Machinery Germany. Our plant churns out 1. Go Expor ts Gowardhan exports milk powder. anhydrous milk fats and ghee to 27 countries in the Middle East. pioneers in cheese processing equipment . Pune Our cheese plant with a production capacity of 40 MT. The equipment. it's one of the only two facilities in Asia with UHT technology.000 litres of milk per day. ghee and milk powder. We are soon going to include cheese in the product mix. butter and butter oil. Manchar. breeding and a milking program that makes sure that the milk obtained is wholesome and of the highest quality. the Bhagyalaxmi farm boasts of being India's largest cow farm. Café Coffee Day etc.Each of these products comes with the Gowardhan assurance of purity and quality. We have also expanded our retail presence significantly: Gowardhan and Go brands of are now available at large retailers and modern retail outlets. We have a national tie-up with companies like Baskin Robins. Barista. . reaching out to more and more customers with the promise of a healthy. active life.