India-based dairy company Prabhat is planning to improve its net profit in 2015-16 by using INR1.85bn ($27.9m) out of its INR3bn ($45m) public issue to reduce debt.
The company, which recently ventured into value-added products such as cheese, shrikhand and paneer, is planning to expand its retail business within the next five years.
The introduction of value-added products is expected to contribute towards the profitability of the company in the long term.
Prabhat was late to enter the retail business when compared to its competitors such as Heritage Foods and Umang Dairies.
The company presently has two production facilities in the state of Maharashtra at Shrirampur and Navi Mumbai, and the plants have a total milk processing capacity of 1.5 million litres, supplied to customers in the states of Maharashtra, Gujarat and Madhya Pradesh.
Prabhat's institutional business includes specialty ingredient products such as sweetened condensed milk and milk powders, full cream, partially skimmed, fully skimmed. It is also engaged in co-manufacturing of dairy products for Britannia Industries, Mother Dairy and Heritage Foods, which account for three-fourth of the overall revenues.
