Gowardhan plans to go global, to invest Rs 260cr in 2 years

The Indian dairy industry is booming. Forget giants like Britannia, even smaller players like Gowardhan are looking to milk this huge opportunity. The company’s cheese portfolio will now be promoted under the "GO" brand. The first set of products will be launched in the next two months. Unperturbed by giants like Britannia and Amul, the company wants to also take on global brands. The company plans to invest Rs 260 crore in the business over the next two years. An IPO by 2011 is also on the cards, reports CNBC-TV18’s Mrinalini Krishna.

Here is a verbatim transcript of Mrinalini Krishna’s comments on CNBC-TV18. Also watch the accompanying video.

Gowardhan is a popular brand among milk and ghee lovers but did you know that the Go fruit fusion yogurts that line the shelves of your nearby supermarket also belong to Parag Milk Foods, the company which owns the Gowardhan brand. The Rs 350-crore, Maharashtra-based company is now going beyond conventional dairy products. It wants a national footprint for its Go yogurt brand. And to expand its range in dairy products, it has big plans for the cheese category.

Looking at new products in the dairy sector, mainly in the cheese category, all the cheese products available worldwide are needed in our country and neighboring countries.

The cheese portfolio will also be promoted under the "GO" brand. The first set of products will be launched in the next two months. Unperturbed by giants like Britannia and Amul, the company wants to also take on global brands.

Says Devendra Shah, Chairman, Parag Milk Foods, “Amul and Britannia are big brands but we are looking at new types of cheese. Consumers compare products on a global basis with brands such as Kraft and Happy/Laughing Cow. I consider such products as competition going forward.”

Shah plans to invest Rs 260 crore in the business over the next two years. An IPO by 2011 is also on the cards.

However, that's after "GO" has established its yogurt and cheese products. For now, the company has a comfortable cash position after Motilal Oswal Venture Capital Advisors invested Rs 60 crore in the last summer. It has recently set up a new plant for cheese, and another one is coming up in South India.