Godrej Agrovet enters value-added dairy segment with launch of Jersey Thickshakes

M Somasekhar, The Hindu Business Line, 16 May 2018

The Rs 5,200-crore turnover Godrej Agrovet has announced its entry into the value-added products segment in dairy with the launch of ‘Jersey Thickshakes’ in the southern market. It plans to come up with buttermilk and lassi soon in Tetra Paks.

This is part of the company’s strategy to transform itself into an integrated player in the Rs 6 lakh-crore dairy industry. Godrej Agrovet is the largest player in animal feed, and is increasing its presence in cattle genetics and milk procurement through its subsidiary Creamline Dairy Products Ltd (CDPL).

The Managing Director of Godrej Agrovet, Balram Singh Yadav, said the focus would be on consolidation in the five southern states, diversifying into value-added products and growth through expansion and acquisition. It has a 52 per cent stake in the Rs 1,200-crore turnover Creamline Dairy.

The company plans to leverage its linkage to lakhs of farmers through it cattle feed and related services in partnership with the large base of Creamline, which has an installed capacity to process over 10 lakh litres and procures from farmers across the five southern states, to achieve its targeted growth in dairy, he told newspersons on the sidelines of the launch here today.

The demand for milk products is rising at the rate of around 20 per cent annually and the opportunities for growth are huge. The Managing Director of Creamline Dairy, K Bhasker Reddy, said the Jersey Thickshakes, priced at Rs 25 for 180 ml packs, will be available in retail stores across the southern states and will be manufactured at a plant hear Hyderabad. The company is looking at expansion with three new plants in Tamil Nadu and Maharashtra in the next three years.

The Thickshakes will come in three flavours of chocolate, Banoffee (banana & coffee) and strawberry. It is being positioned as a healthy beverage alternative (snack) for kids and teenagers, with 100 per cent real milk and essential nutrients, proteins, calcium and vitamin A, said Raj Kanwar, CEO of CDPL.

Very soon a spiced buttermilk in Tetra Pak will be launched. A strong marketing and advertising pitch is being made to promote the production as a healthy ‘on the go’ snacking option and an alternative in between meals to appeal to mothers, he said.