Parag Milk Foods , a leading dairy company in India, has put forward a proposal to remove the Goods and Services Tax (GST) on paneer, a popular dairy product widely used in Indian cuisine. This move could potentially have significant implications for both consumers and the dairy industry.

Proposal Details

The company has suggested the elimination of GST on paneer, which is currently taxed under the GST regime. This proposal, if implemented, could lead to a reduction in the retail price of paneer, making it more affordable for consumers.

Potential Impact

The removal of GST on paneer could have several effects:

1. Consumer Benefits: A potential decrease in paneer prices could make this protein-rich dairy product more accessible to a wider range of consumers.

2. Industry Implications: The proposal could impact the entire dairy industry, potentially leading to increased consumption of paneer and affecting the market dynamics for milk and other dairy products.

3. Government Consideration: The proposal will likely be subject to review by the GST Council and relevant government authorities, who will assess its potential impact on tax revenues and the dairy sector as a whole.

Company Perspective

Parag Milk Foods, known for its 'Gowardhan' and 'Go' brands, has positioned itself as an advocate for this tax reform. The company's proposal aligns with its focus on dairy products and could potentially benefit its paneer business segment.

While the outcome of this proposal remains to be seen, it highlights the ongoing discussions around GST structures in the food and dairy sector. Stakeholders across the industry will be closely watching for any developments on this front.

As the proposal moves through various stages of consideration, it may spark broader debates about taxation on essential food items and its impact on both consumers and the industry.

Parag Milk Foods Limited , a leading player in the Indian dairy industry, has reported strong financial results for the first quarter, showcasing robust growth across its product portfolio and operational metrics.

Record-Breaking Revenue

The company achieved its highest ever first-quarter revenue of ₹852.00 crore, marking a significant 12% year-on-year growth. This performance underscores Parag Milk Foods' strong market position and effective growth strategies.

Core Category Growth

Parag's core product categories, including cheese, ghee, and paneer, demonstrated solid performance:

• 9% growth in volume
• 14% growth in value
• Contributing 57% of total revenue

Market Leadership

The company continues to maintain strong market positions in key segments:

• Gowardhan ghee: 22% market share in the branded cow-ghee segment
• Go cheese: 35% market share

Margin Resilience

Despite facing headwinds from increased milk prices, Parag Milk Foods displayed remarkable resilience:

• Average milk prices rose by 18% to ₹37.00 per litre
• EBITDA grew by 6% with a margin of 7.7%
• Gross profit margins improved sequentially from 25.1% to 27.4%

New Age Business Growth

The company's new age business, comprising Avvatar and Pride of Cows brands, showed impressive growth:

• Now contributes 9% of total revenue, up from 6% last year
• 57% year-on-year growth
• Avvatar brand scaled eight times over the last three Q1s in the sports nutrition market

Operational Highlights

• Daily milk procurement reached 16.5 lakh litres, a 10% increase over the previous quarter

Future Outlook

Parag Milk Foods has set an ambitious target of reaching ₹10,000.00 crore in revenue over the next five years, indicating confidence in its growth trajectory and market potential.

The strong Q1 performance, coupled with strategic focus on core categories and new age businesses, positions Parag Milk Foods for continued growth in the Indian dairy market.