Dear Shareholders,
I am honoured to present Parag Milk Foods Limited's Annual Report for FY24. This year
has been transformative, marked by significant achievements that underscore our commitment
to excellence, innovation, and strategic growth. We continue to focus on harnessing our
strengths and driving forward with renewed vigour and purpose, consequently unlocking
potential and creating value for all our stakeholders.
Despite the complexities and uncertainties in the global economy, the nutrition sector
has shown remarkable resilience. Rising health consciousness and the increasing demand for
protein-rich diets are driving industry growth. According to the IMARC report, the
global dairy industry, in particular, is expected to grow at a compound annual growth rate
(CAGR) of 3.8% from 2024 to 2032.
The Indian dairy industry is in an exceptionally favourable position, growing at a CAGR
of 10.7% from 2018 to 2023, with the organised segment witnessing a growth of 13.5% during
the same period. The Indian dairy market is expected to maintain a CAGR of -14% from 2024
to 2032. These impressive expected growth rates highlight the significant opportunities
available in our domestic market.
Our journey began with a mission to support farmers, and today, we are on a path to
becoming a global leader in health and nutrition segment. Our integrated business model,
from farm to consumer, is our cornerstone. This backward integration ensures the highest
quality products while allowing us to adapt swiftly to market demands. Our flagship
brands-Gowardhan Ghee, Go Cheese, Pride of Cows, and Avvatar—testify our relentless
pursuit of quality and innovation.
We have come a long way from a commodity business to a value- added PAN India FMCG
dairy player and are now moving towards the health and nutrition segments. Our Company's
focus on backward integration has strengthened our brand equity, allowing us to deliver
high-quality products consistently.
We continue to focus on sustainable profitable growth with our strategic initiatives,
efficient operations, and robust governance practices.
Our governance framework is designed to ensure transparency, accountability, and
long-term sustainability. Over the past 12 months, we have strengthened our board and
management teams by onboarding visionary industry leaders with solid domain experience.
These enhancements reinforce our commitment to maintaining high standards of corporate
responsibility and strategic execution as we continue our growth trajectory.
Moreover, our journey towards sustainability is integral to our business strategy. This
year, we have made significant strides in reducing our environmental footprint through
initiatives such as Zero Liquid Discharge and adopting renewable energy sources. Our
commitment to renewable energy continues to grow as we strive to reduce our carbon
footprint and transition to greener energy sources. This commitment to sustainability
extends beyond ecological stewardship to include social responsibility, ensuring ethical
sourcing practices and supporting local communities.
These efforts reflect our dedication to creating a sustainable future while delivering
exceptional value to our stakeholders.
Our strategic priorities include expanding our distribution network, enhancing our
product portfolio, and leveraging technology for operational excellence. We are poised to
capitalise on favourable industry dynamics and drive substantial growth in the coming
years. Given the buoyant industry dynamics, we expect healthy volume and value growth
across our product portfolio, driven by improving market share and enhanced distribution
reach. Our vision is to transform Parag Milk Foods into a global health and nutrition
powerhouse.
We aim to triple our business over the next four years while maintaining strong margins
and governance standards.
We are focussed on the building blocks of talent, technology, distribution, governance,
and innovation. Our ongoing business process transformation exercise aims to streamline
costs and eliminate inefficiencies across the value chain from procurement to
distribution.
We are transforming from a promoter-driven to a professionally managed organisation to
unlock potential and create value for all the stakeholders.
I sincerely thank our shareholders, employees, farmers, partners, and customers for
their unwavering support. Your trust and commitment are the bedrock of our success.
Together, we will continue to drive Parag Milk Foods to new heights, creating lasting
value and positively impacting the global nutrition landscape.
With our robust foundation, strategic vision, and dedicated team, I am confident that
we can achieve our ambitious goals and deliver sustainable profitable growth.
Warm regards,
Devendra Shah
Chairman.