Umang Dairy eyes 2% sales growth, Rs 130cr revenue for FY12

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RC Periwal, Director of Umang Dairy tells CNBC-TV18 that they expect to see a 20% growth in volume and Rs 130 crore revenues this fiscal year. "We are expecting growth in milk powders, butter and ghee," he said exclusively to CNBC-TV18. They are also expecting dairy creamers to see handsome growth.

In term of the pricing growth in the dairy sector, Periwal believes this trend could reverse. "I don't think there will be any significant increase in price till March. If at all, it could be a downward trend," he said.

Below is an edited transcript of his interview with Ekta Batra and Reema Tendulkar. Also watch the accompanying video.

Q: What would your FY12 revenue look like and could you break that up for us with respect to volume and pricing growth?

A: We are targeting a volume growth of say about 20% in the FY12 over FY11. As far as price is concerned, normally the prices should not have gone up to the extent it has. Due to increase usage of milk in other than milk products, the prices are increasing trends.

But now that the flush season is on, I don't think there will be any significant increase in price till March. If at all, it could be a downward trend.

Q: You work in lot of different type of products within milk and dairy space. Could you give us an idea on where exactly are you seeing the maximum amount of volume growth coming from?

A; As far as our product range is concerned, we are expecting growth in milk powders, butter and ghee.

Q: Could you break up who your main clients are within different segments? Where do you see maximum volume coming from?

A: We are making dairy creamers in consumer packs starting from 3 grams to one kilogram and we are selling it through retail outlets. Our main markets are East, North East and parts of Maharashtra. We are operating in about 12 states.

One item which we expect to give handsome growth is dairy creamers of different variety. We make some products with and without sugar, some with fats, and some without fats.

Q: You did around Rs 91 crore sales in FY11, which is an almost 100% increase. What is your target for FY12?

A: We are targeting to reach at about Rs 130 crore.