Gowar dhan Dair y

About Gowar dhan

When Ravi Shastri drove across the Melbourne Cricket Ground in an Audi 100 on March 10, 1985,
little would he have realised that he had inspired a budding entrepreneur in a small town back home.
Devendra Shah, then 21, who was watching the proceedings live on television in Manchar in Pune
district decided he too wanted to become a “champion of champions” just like Shastri, and own an
Audi car one day. “Like any other youngster, I was ambitious and dreamt of owning the car. And I
wanted to do it with hard-earned money,” says Shah, who is now chairman of Parag Milk Foods, a
Rs 320 crore company which manufactures the ‘Gowardhan’ brand of liquid milk and milk
products.

After graduating in commerce, Shah dabbled in other businesses like clothes retailing but it was not
until 1989 that he found his true calling—the dairy business. Courtesy the license Raj, milk
procurement was being done only by state agencies and co-operatives. But the agencies used to shut
for two days every week (called ‘milk holidays’), forcing dairy farmers to throw away milk
accumulated during these days. Shah, who hailed from a family of traders that had settled in
Manchar four generations ago, started procuring milk on the milk holidays in 1989 as a “social
obligation”. “The benefits of Operation Flood had started accruing but we did not have the
infrastructure to put the surplus milk to good use. I tied-up with people in Pune city and started
selling the procured milk to them,” says Shah, whose family had been into supplying seeds to local
farmers for over a generation.

The big break for Shah came in 1991 when the then Finance Minister Manmohan Singh in his
budget speech announced de-licensing that included the dairy sector as well. This paved the way for
private players to procure milk from farmers. Shah launched Parag Milk Foods in 1992, and being a
capital-intensive business he invested Rs 1 crore. The money was raised from a combination of
accruals from Shah’s earlier ventures and borrowings from a local co-operative bank.

The timing wasn’t right though, as the dairy business was at its lowest point then. Milk went waste
due to poor infrastructure and an infamous anecdote goes that a dairy in Mumbai had to flush
excess milk out into the sea. Dairy farmers didn’t have high-yielding varieties of cattle, and
distribution networks were poor in urban areas. Shah had his first task cut out—addressing issues at
both ends of the spectrum—and he did that well enough. “I was taught to take risks by my parents,
and I get some kind of a high by taking risks,” says Shah about his philosophy. Without sounding
rhetorical, he adds, “It is the herds that go together in a flock. Somebody has to act like a cheetah
and go for the kill.”

Perhaps, it was this trait that led Shah to steer clear of the widely accepted and fairly successful
route of starting a co-operative, and instead opt for private ownership. “I was ambitious and it’s not
a bad thing to be so. And while some of the biggest names in the business come from the co-
operative sector, I too have been able to achieve a lot,” he smiles.

The company has been exporting butter, milk powder and butter oil to 47 countries and recently
launched its dahi (curd) in the market. With a sizeable brand presence in western India, Shah says
he plans to open a factory near Bangalore soon to address the southern market. “Thankfully, this is a
recession-proof business as people will continue to consume milk products. We aim to close 2008-
09 with a turnover of Rs 480 crore,” proclaims Shah. Earlier this year the company received Rs 60
crore in private equity funding from India Business Excellence Fund managed by Motilal Oswal
Venture Capital Advisors.

While younger brothers Parag and Pritam joined the dairy business in 1993 and 1994, respectively,
and now form the core team at the company, Shah spends more time on new projects, and on
branding and ‘farmer relations’ traveling regularly to Mumbai (165 km and three hours away). “At
the core of success in a business like this are your relations with farmers. If you can’t procure the
milk, you cannot survive,” he says, adding that from a modest beginning of 20,000 litres in 1992,
Parag now procures over 8 lakh litres of milk daily.

Whenever a farmer waves at his Audi A6—he realised his dream of owning one six months ago—
on the roads of Manchar, Shah always stops to speak with him. “In the 1980s, when my family
owned a Premier Padmini, everyone in the town knew it belonged to us. It’s the same today also,”
he quips.

Gowardhan, founded by Parag Milk Foods Pvt. Ltd. in 1992, is one of India's largest private
dairies,with an output capacity of 1,000,000 liters per day.

Located in a lush green village called Manchar in Maharashtra (60 km from Pune), we pride
ourselves on owning the largest cow farm in India as well as Asia's largest cheese plant.

Gowardhan is an ISO 9000 and AGMARK certified company, committed to international standards
of product quality. Their product portfolio includes Skim Milk Powder, Whole Milk Powder, Ghee,
Processed Cheese, Butter,Dahi, proprietary foods like Dairy Whitener and Gulab Jamun Mix
powder under the brand names of "Gowardhan" and 'Go' ,all made from 100% fresh cow milk.

Parag is also targeting an initial marketing of 300 tonnes a month of cheese in the country, including
150 tonnes in Gujarat alone. Gujarat and Maharashtra account for 70% of cheese consumption in
India. The cheese market is growing at 30 per cent a year in India because of the rising popularity of
fast-foods and snacks such as pizza among youngsters.

The company had recently signed a MoU with a South Korean company, Geo Foods Corporation, to
supply 300 tonnes of mozzarella cheese a month. Parag Milk, which also exports to

Parag, based out of Maharashtra, is one of the few players that use 100% cow milk for all their
products. Its product portfolio includes liquid milk and various dairy products such as milk powder,
cheese, ghee, butter, cream, curd, butter milk and gulab jamun mix. Parag has a state-of-the-art
Bhagyalaxmi dairy farm spread over an area of 30 acres and equipped with the latest rotary parlour
for milking cows. This has been a path breaking initiative by the company and will put the
Company in the league of global dairy companies once scaled up.

According to Mr. Raamdeo Agrawal, Chairman of MOVCAPL, “India is rapidly moving from a
USD 1 trillion economy to a USD 2 trillion economy with steadily increasing disposable incomes.
Rising population coupled with increasing consumerism will boost demand for dairy products.
Following the global trends, Cow milk is also gaining importance in India for its better nutritional
value. Companies like Parag, which have established strong procurement practices and
internationally accepted quality products, will hugely benefit from this upsurge in consumerism.”

Investment in the company offers MOVCAPL an opportunity to participate in an unfolding story of

excellence in entrepreneurship in the fast growing dairy space. The amount will be utilized by
Gowardhan for its capacity expansion along with branding & marketing initiatives.

According to Mr. Devendra Shah, Chairman of Parag, “Company would be investing around Rs 160
crores over the next 2-2.5 years expanding its capacity to procure and process around 20 LLPD and
Rs 50 crores lending to farmers for Backward Integration as well as for development of the Cow &
the Dairy Farm. Gowardhan would concentrate on expanding its value added product portfolio
across India. This investment from funds managed by MOVCAPL will further propel the growth of
Gowardhan.”

Dairy industry in India has come a long way from dependence in 1960s & 1970s to self-reliance.
India is the largest milk producing country in the world, followed by USA, Russia, Germany and
France. According to Dairy Book 2007, Milk production in 2005 was around 94 mn tonnes and is
estimated to be over 100 mn tonnes currently with an annual growth rate of 4%. Cow milk
constitutes about 41% of total annual milk production in India and has started to create a strong
niche as compared to buffalo or mixed milk.

Mumbai based Investment Bank - Ladderup Corporate Advisory Private Ltd. acted as the exclusive
financial advisors to Parag for the deal.

At a dairy farm in Manchar on the outskirts of Pune, a fourhour drive from Mumbai, about 200
cows await their turn to be milked. They wait like shoppers in the billing queue of a supermarket,
quiet and orderly. One by one, the cows step onto a 20-feet rotating circular platform and rubber
hoses are attached to their udders. Once milked, the cows themselves kick away the hoses.
"Minimal human effort, maximum milk produce," gushes Devendra Shah, Chairman, Parag Milk
Foods, which started its operations in Manchar in 1993.

The company has spent over Rs 4 crore on its rotary milking parlour, the first in India. The 3,000-
plus Holstein cows, purchased at Rs 40,000 apiece, are treated to a special diet of calcium-rich feed
and mellifluous bhajans in their sheds. "The music increases their milk produce," claims Shah,
citing that each cow produces 25 litres of milk a day. "It's total cow comfort technology. These are
the standards we need to adopt if we need to compete with international players in products like
cheese," he adds. And cheese is where Shah's immediate ambitions lie.

With a turnover of about Rs 550 crore, Parag Milk Foods has been selling milk and ghee in Pune
and Mumbai since the mid-90s. But in the last one year, the company's focus has shifted to products
like cheese and flavoured yogurt. It has invested Rs 110 crore to build what it claims is Asia's
largest cheese plant (with a capacity to process 40 tonnes of raw cheddar daily). "Cheese from this
plant is right now being sold in South Korea. Within a few months of our launch, we have cornered
a 30 per cent market share of cheese sales at modern retail outlets in Mumbai. Our competitors are
the Krafts and Laughing Cows of the world. With our superior product quality, we are not even
competing with the Indian dairy players," says Shah.
Some 450 km away, lounging in his spartan office in Anand in Gujarat, the mecca of the Indian
cooperative movement, B.M. Vyas would be tempted to disagree with Shah's claims. After all, as
MD of India's largest and only billion-dollar cooperative dairy player, the Gujarat Cooperative Milk
Marketing Federation (GCMMF), Vyas has seen competitors make more audacious claims in his
16-year tenure as MD. GCMMF sounds like a mouthful, but the brand name under which the
cooperative sells its products, Amul, is, perhaps, the most recognised and revered dairy brand across
the country.

This despite the fact that, unlike Parag Milk Foods' state-of-the-art dairy farm, Amul's milk is
collected by dairy farmers every morning largely by hand. "The fact that 2.7 million farmers wake
up early each morning to milk their cows and then give it to us is our biggest strength," says Vyas.
He is no stranger to pretenders challenging Amul's dominance. "Amul has seen competition in the
past. It really does not worry us," he says matter-of-factly.

A mildmannered, portly man of 59 years, Vyas has managed the cooperative since 1994. When he
took over Amul, GCMMF's turnover was a little over Rs 1,000 crore. Today, that has increased over
six times to Rs 6,700 crore. Back then, Amul was viewed as a brand that would not survive the
pressures of competition in the post-liberalisation era. Vyas and Amul have not just survived the
onslaught of competition, but have often taken the fight to their territory (as it did in ice creams a
decade ago, when it dethroned Hindustan Unilever Ltd (HUL)—then Hindustan Lever Ltd—from
pole position).

Taking on competitors in a category or two at the same time is something Amul has done before.
But the threat today is different, and huge. That's because never before has Amul been buffeted by
as much competition as it is today, across every category it operates in—right from pouched milk
and butter to cheese and ice creams. Other than HUL and Nestle, multinational giants like Kraft
(which recently acquired Cadbury globally, thereby getting a passage into India) and Groupe
Danone are beginning to flex their muscle. "We hope to bring some of our big brands like Kraft
Cheese and Oreo cookies to India. With Cadbury's distribution strengths, we can push some of these
brands in India," Sanjay Khosla, President (Developing Markets), Kraft, recently told BT. Groupe
Danone is looking at tapping into the small, but fast-growing flavoured milk market. It's currently
testing a chocolate-flavoured fortified milk in Hyderabad.

Regional players, too, are upping the tempo. Other than Parag, there's Amrit Group in Kolkata,
which plans to launch valueadded milk products. Says Harish Bagla, MD, Amrit Group: "We are
coming up with various value-added products like flavoured milk, dahi, lassi, cheese, butter, paneer
and ice cream." Bagla's also exploring tie-ups with international companies. Finally, don't forget
Johnnies-come-lately like Zydus Wellness—which has carved a niche for itself in butter alternatives
—that are opening up new markets.

The biggest threat to Amul, though, could well come from its one-time friend but now a bitter rival,
Mother Dairy, a subsidiary of the National Dairy Development Board (NDDB). In mid-February,
Amul made a bold claim when it declared itself as the #1 player in the branded packaged milk
segment, with sales of 1.45 million litres daily, in the Delhi market, a traditional stronghold of
Mother Dairy. Within a day, the New Delhi-headquartered Mother Dairy shot back. "Mother Dairy
sells approximately 29 lakh litres of milk per day in Delhi NCR, which is about twice as much as
that of the nearest competitor," says Paul Thachil, CEO (Dairy & Foods), Mother Dairy Fruit &
Vegetable.

Gowar dhan Pr oducts

Gowardhan brands cover a wide range of products to cater to consumers around the world who put
a premium on taste, nutrition, health, craftsmanship and sheer indulgence

Gowardhan manufactures dairy products that are not just 100% natural,but also lighter and rich in
calcium. That's because the milk, procured from its own cow farm - the largest in Asia - is 100%
natural cow's milk. What's more,the use of latest European technology in our manufacturing units
ensures superior quality and freshness of our products, giving them the unique Gowardhan taste and
flavour.

Parag Milk Products (P) Ltd, manufacturers of Gowardhan one of India’s largest private dairies,
launched its new brand of cheese- ‘GO’ Cheese. The company’s cheese products will include
Cheddar, Mozzarella, Spreads, Wedges and Powders made from 100% cow’s milk.

Bangalore, 22th February, 2010: Parag Milk Products (P) Ltd, manufacturers of Gowardhan one of
India’s largest private dairies, launched its new brand of cheese- ‘GO’ Cheese. The company’s
cheese products will include Cheddar, Mozzarella, Spreads, Wedges and Powders made from 100%
cow’smilk.
GO cheese promises to bring for the Indian consumers many exciting forms and flavours of cheese
for the first time in India. The cheese will range from wedges and slices, powders and spreads, to
pizza cheese and shredded Mozzarella. Go Cheese is the only cheese in India made to match
International Standards.

Mr. Devendra Shah, Chairman, Parag Milk Foods said, “We have always cared about the quality of
the products that we offer to our consumers. Our motive is not only to provide the products that are
high on taste and contemporary but at the same time we ensure that it is absolutely pure and
matches international quality standards. With our state-of-art cheese plant, we are now ready with a
delectable range of cheese never before offered to the Indian consumer. Keeping with our dairy
philosophy, all of our cheeses are made from 100% cow's milk.”

GO Cheese is made in Parag Milk Foods’ cheese plant located in Manchar, near Pune which is also
the Asia’s largest cheese plant and has a capacity of over 40 tons per day. Go Cheese is made from
100% pure cow's milk. The milk for the cheeses is procured from one of the best milk shed areas in
Western India, renowned for the quality of its cow milk. The farm follows specialized farming,
nurturing, breeding, milking practices and immediate chilling; thus the milk obtained is wholesome
and ideal for making superior quality Cheddar, Mozzarella and Processed cheeses to international
specifications.

GO Cheese comes with some exciting variety like Go Cheese Slices, Cheddar Cheese Powder,
Cheddar Cheese, Pizza Cheese, Mozzarella Pizza Topping, Creamy Cheese Spread, Processed
Cheese and Cheese Wedges.

GO Cheese Slices:

GO cheese has high calcium content. This high quality cheese is made using UHT technology,
which ensures a longer shelf life.

GO cheese has high calcium content. This high quality cheese is made using UHT technology,
which ensures a longer shelf life.

GO Cheddar Cheese Powder :

To give a rich cheesy flavour to food Go Cheddar Cheese Powder acts wonder. Enhance the flavour
of the food by just sprinklings this delicious powdered Cheddar cheese topping onto vegetables,
pasta, soups or even popcorn.
To give a rich cheesy flavour to food Go Cheddar Cheese Powder acts wonder. Enhance the flavour
of the food by just sprinklings this delicious powdered Cheddar cheese topping onto vegetables,
pasta, soups or even popcorn.

GO Cheddar Cheese:

Made from mild Cheddar cheese, traditionally aged over 6 months. It has a creamy texture and a
clean cheddar flavour that gives great taste to food.

Made from mild Cheddar cheese, traditionally aged over 6 months. It has a creamy texture and a
clean cheddar flavour that gives great taste to food.

GO Pizza Cheese:

Go Pizza Cheese is a blend of mild Cheddar and traditionally made Mozzarella cheese with superior
melting and a stringy texture. It has the perfect mix of texture and taste for making delicious pizzas
at home!

Go Pizza Cheese is a blend of mild Cheddar and traditionally made Mozzarella cheese with superior
melting and a stringy texture. It has the perfect mix of texture and taste for making delicious pizzas
at home!

GO Mo zzarella Pizza Topping:

Soft and stringy, Go Shredded Mozzarella is a cheese with a firm close texture that lends itself to
many dishes. It is apt for adding on flavour to pizza or to delectable pasta!

Soft and stringy, Go Shredded Mozzarella is a cheese with a firm close texture that lends itself to
many dishes. It is apt for adding on flavour to pizza
or to delectable pasta!

GO Creamy Cheese Spread:

Go Creamy Cheese Spread is available in three delicious flavours - Mexican Twist, Tomato Salsa
and Black Pepper.

A smooth spreadable texture and versatility in cooking is what makes Go Creamy Cheese Spread a
must have item in all household. It is perfect to use in all sorts of savoury food items or can be
drizzled on bread slices, soup or as a creamy pasta sauce base.

Go Creamy Cheese Spread is available in three delicious flavours - Mexican Twist, Tomato
Salsa and Black Pepper.
A smooth spreadable texture and versatility in cooking is what makes Go Creamy Cheese Spread a
must have item in all household. It is perfect to use in all sorts of savoury food items
or can be drizzled on bread slices, soup or as a creamy pasta sauce base.

GO Processed Cheese

This cheese is mild in flavour, with a medium-firm consistency and made from blends of Cheddar
cheese.

A versatile cheese can be added to a casserole or grate over a salad or even as a slice for a sandwich.

This cheese is mild in flavour, with a medium-firm consistency and made from blends of Cheddar
cheese.
A versatile cheese can be added to a casserole or grate over a salad or even as a slice for a
sandwich.

GO Cheese Wedges

Go Cheese Wedges have a delicious, mild creamy taste and is available in 3 delicious flavours -
Mexican Twist, Tomato Salsa and Black Pepper. It comes in a portable form that's perfect for the
lunch box or as an on the go snack.

Go Cheese Wedges have a delicious, mild creamy taste and is available in 3 delicious flavours -
Mexican Twist, Tomato Salsa and BlackPepper
. It comes in a portable form that's perfect for the lunch box or as an on the go snack.

Infr astr uctur e & Technolog y

Our commitment to quality and innovation has resulted in huge investments in infrastructure and
technology. Our integrated dairy and cow farm at Manchar, is rapidly scaling up to cater to the ever
expanding circle of customers in India, who seek all-natural, wholesome and delicious dairy
products.

Dair y Plant, Manchar, Pune

The extensive range of our products are processed at this ultra modern dairy. Our dairy plant is fully
automated ,of international standards and equipped with the best European technology. Right from
reception of milk to the finished product, we maintain strict no-human-contact through the entire
manufacturing process. Our plant churns out 1,000,000 litres of milk per day, has an output capacity
upto 10 MT of butter, 25 MT of ghee and 10 MT of dahi (yoghurt) and 65 MT of milk powder.

Bha g yalaxmi Dair y Far m

Spread over 35 acres, the Bhagyalaxmi farm boasts of being India's largest cow farm, housing upto
2500 cows and equipped with one of India's first Rotary Parlors, which has mechanized the whole
milking process and in turn maximized quality and hygiene. This world class facility meticulously
follows specialized farming, nurturing, breeding and a milking program that makes sure that the
milk obtained is wholesome and of the highest quality.

Cheese Plant, Manchar, Pune

Our cheese plant with a production capacity of 40 MT, it's one of the only two facilities in Asia with
UHT technology. The equipment, imported from Stephan Machinery Germany, pioneers in cheese
processing equipment ,allows the UHT treated cheese to be stored in ambient condition without
refrigeration upto a period of 6 months in tropical countries like India. The company is readying
itself to flood the national markets with its UHT treated, superior quality cheese which will be
available in a variety of forms such as slices, wedges spreads and a range of exciting flavours under
a new brand name, Go

Expor ts
Gowardhan exports milk powder, butter and butter oil, anhydrous milk fats and ghee to 27 countries
in the Middle East, South East Asia and Africa. We are soon going to include cheese in the product
mix. Some of our significant customers include Yakult for our skimmed milk powder and BEL,
Morocco (world famous manufacturers of cheese)

Institutional Sales:

Gowardhan is a one-stop, efficient and reliable supplier to reputed hotels, restaurants, institutions
and caterers. The wide range of products we supply include cheese, butter, ghee and milk powder.
Each of these products comes with the Gowardhan assurance of purity and quality. We have a
national tie-up with companies like Baskin Robins, Barista, Café Coffee Day etc.

We have also expanded our retail presence significantly: Gowardhan and Go brands of are now
available at large retailers and modern retail outlets, reaching out to more and more customers with
the promise of a healthy, active life.