Parag Milk Foods today said it has teamed up with Swedish firm ColoPlus AB for the specialized know-how and patent of ‘colostrum’ for Asia, the Middle East and Africa to create a massive stronghold in health and nutrition market.
The organization today likewise launched first 100% natural immunity booster called ‘GO Colo Power’ in India.
“This collaboration and the launch of GO Colo Power in the country will enable us to strengthen our offerings in the health and nutrition segment,” Parag Milk Foods chairman Devendra Shah told PTI here.
The country’s health and immunity booster market is pegged at around Rs 3,000-3,500 crore and the company is planning to grab 7-9 per cent market share with the new product launch in the next three years, Shah said.
Colostrum is the product is a colostrum milk, which is the first form of milk produced by the cow immediately following delivery of the newborn and it’s very high in immunoglobulin.
The firm will initially implement and set up a electronic distribution channel through leading e-commerce websites in eight metros and 40 level II urban areas, and after that will bit by bit extend it to physical stores, he said.
Shah said the volume of colostrum milk are low, because the ingredient is very rare to find. So we are expected to have a market share of around 10% by 2020 for the health and nutrition segment.
Shah said the organization will center around the residential market for ‘GO Colo Power’ as there is a gigantic potential in the health and immunity booster segment and begin exports around the end of this financial year.
According to Shah, the entire market right now is an imported market. So the market size is around Rs 1,200 crore as of now and we are expecting the market to grow by 25% compound annual growth rate (CAGR) every year. So by 2020, we are expecting the market to be around Rs 1,500-1,600 crore.
The firm has built up an intricate system to gather colostrum milk from dairy producers that Shah asserted not just gives a road to utilize the primary milk which generally would have gone waste, yet additionally gives them substantially higher returns.
We are also expecting revenue of about Rs 2,700-3,000 crore by 2020.