My apologies @Akshada_Deo, company name is “Salma”.
I am attaching the concall transcript with this comment (Source: researchbytes)
Parag Milk Q4FY18 transcript.pdf (293.8 KB)
Also, apart from this I have a doubt about their paneer and whey protein.
Comparing gowardhan paneer with amul paneer on bigbasket
Amul paneer 200gm at MRP 65
Gowardhan paneer 200 gm at MRP 75
Amul paneer has shelf life of 6 months while gowardhan paneer has shelf life of 75 days. I can’t see why a shopkeeper (or anyone else) will prefer Gowardhan Paneer instead of Amul paneer when Amul paneer has higher shelf life and lower price. Even amul has strong network compare to gowardhan. What is the product differentiation for Gowardhan paneer. (In terms of nutritional value, Gowardhan paneer has 2 gm more protein per 100gm compare to Amul paneer but it has also higher cholesterol.)
Same goes with Avatar whey protein. It is even expensive than “ON” whey protein (premium one in whey protein segment) and “ON” has higher nutritional value and stronger distribution channel compare to “Avatar”. What is the product differentiation. And why anyone will prefer avatar compare to ON when ON has high brand value and lower price.
One differentiation is the pilot project they have started earlier in Borivali, Mumbai. This is good initiative but it has their own pros and cons… Pros are - This can boost sales to an extent as retaile shops will prefer to have a little stock with more churning as they will get to earn more with low investment. Cons are it will increase the cost as the frequency for distribution will increase. Also, it will be conducted in metro cities like mumbai only. So don’t know the real impact of this.
Now second possibility is, they might be providing higher margins to retail shopkeepers. This might be the reason why retail shops will promote PMFL products and thats why it might be priced higher. This is need to be checked if they are providing a higher margin to sellers.
Also, can anyone check through their networks if possible that at what rate Amul and PMFL provide cheese and paneer to other businesses like dominos, MacDonalds, and other hotel chains.