Parag Milk Foods: whey protein line under the Avvatar brand, the management aims to grow the category at 30%-35% CAGR

Parag Milk Foods: whey protein line under the Avvatar brand, the management aims to grow the category at 30%-35% CAGR


  • Founded in 1992, Parag Milk Foods Limited (PMFL) is one of the largest private dairy companies in India. 
  • The company has captured a leading market share in packaged Ghee and Cheese, commanding a 22% and 35% market share in the categories, respectively through its popular brands “Gowardhan Ghee” and “Go Cheese”. 
  • While Ghee contributed 31.2%, Cheese contributed 24.2% to the company’s revenue in FY23 and remain the core category products for PMFL. 
  • PMFL has further strengthened its leadership position in these categories with a 27% and 17% YoY growth, respectively in ghee and cheese over the last 2 years. 
  • Together, the value-added products of ghee, cheese, curd and paneer contributed to ~68% of PMFL’s revenue in FY24. 
  • PMFL procures milk from the states of Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh, and has a pan-India presence spread across 29 depots, 6,200 distributors and ~4.6 lakh retail touch points. 
  • The company has also significantly increased its presence in Delhi, Rajasthan, Madhya Pradesh and Uttar Pradesh, apart from its stronghold in Maharashtra and Gujarat. 
  • With strong presence in the mass and mass affluent segments, PMFL has focused on developing its premium brands Pride of Cows milk and milk products and whey protein Avvatar, which have been growing at a fast pace with positive traction from the market. 
  • Valuation & Recommendation: 
    • Contrary to its peers, PMFL has garnered a dominant market share in the value-added products and created a niche for itself in the Ghee and Cheese segments. 
    • With around ~68% of the revenue coming from value-added products in FY24, PMFL aims to drive further traction from the segment by doubling down on cheese processing capacity and shift to B2C model. 
    • PMFL is a leading player in the institutional and HORECA cheese business and is moving fast in the consumer cheese segment. 
    • The company’s new age business has been growing at industry leading pace and is expected to grow at 25-30% CAGR over the next few years. 
    • With expansion through new product launches in the whey protein line under the Avvatar brand, the management aims to grow the category at 30%-35% CAGR, with an aim to achieve 20%-25% market share in the category by 2027-28. 
    • Rapid growth in new age business, increase in distribution reach and continued momentum in core categories are expected to be key drivers of growth in the company’s aspiration to achieve to clock Rs 10,000 cr revenue mark, 4-5 years down the line.

Parag Milk Foods: Profit after tax INR 27 Cr, growth of 27% YoY

  • Parag Milk Foods Limited, a leading manufacturer and marketer of dairy-based branded products in India
  • Profit after tax INR 27 Cr, growth of 27% YoY
  • EBITDA INR 61 Cr; margin of 8.1%; up by 160 bps YoY 
  • Flagship brand “Gowardhan Ghee” has witnessed 2% improvement in its market share, and now commands 22% market share in the Branded Cow Ghee segment; while the trusted “Go Cheese” brand enjoys a strong and steady market share of 35% in the Cheese market.
  • Improved Market share- As per the latest IMARC report 2024; the flagship brand Gowardhan Ghee commands an improved 22% market share in the branded cow ghee segment, while the brand “Go Cheese” sustained its 35% market share in the Cheese category
  • The company continues to strengthen its building blocks and is well poised to grow exponentially towards achieving INR 10,000 crore turnover target

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