Parag Milk Foods buys Danone’s Sonipat factory

Parag Milk Foods Ltd said it purchased the manufacturing plant of French dairy giant Danone in Sonipat near Delhi.

The Mumbai-based company has so far been supplying the North Indian market from its factory in Maharashtra.

The plant’s current milk processing capacity is 0.75 LLPD (Lakh Litre Per Day) along with curd processing capacity of 15 tons.

In the coming months, the company is planning to expand the new manufacturing facility by installing processing units for pouch milk, flavored milk, pouch butter milk, cup curd, misthi dahi as well as expand the existing yoghurt facility.

“This acquisition will bring us closer to the End Consumer and will give us an edge to understand the consumer preference in Northern India and expand our product offerings,” said Chairman Devendra Shah.

The company called the acquisition “a strategic investment in strengthening Parag Milk Foods fresh category distribution” in the North and North-East regions of India.

“The company thrives to deliver the freshest dairy products available in the market. To maintain freshness, it is imperative to have a manufacturing unit close to the market,” it said.

Financial details of the deal were not disclosed.

As a part of investment, the company said, it will refurbish the new facility with additional amenities to increase its product portfolio in the region.

Parag Milk Foods is a strong dairy brand in Western India, and owns brands such as “Go”, “Gowardhan”, “Topp Up”, “Slurp” and “Milkrich”.

The manufacturing plant is spread across 5,500 sq. mtr. on the outskirts of Delhi NCR and provides easy accessibility to target consumer segment.