May 22 Mumbai

CRISIL Ratings webinar on dairy sector: Pandemic halts Indian dairy’s cream run



The organised Indian dairy sector registered a healthy 8-9% growth in revenues for the past two years prompted largely by faster growth in sale of value added products (VAP).


However, the sector’s cream run is expected to be halted this fiscal.


The Covid-19 pandemic and nationwide lockdown has resulted in closure of hotels, restaurants and cafes, for over a month. Further, supply chain disruptions have also resulted in shortage of VAP in the market, besides loss of sale of some VAP sub-segments consumed largely in summer months. This will severely curdle the growth prospects of the VAP segment (~35-40% of sector’s revenues), even as demand for liquid milk, which is an essential product, remains steady at 3-4%. Consequently, the sector is expected to register flattish revenue this fiscal.


Moderation in input prices, though, should come as a relief for dairy firms.


Given this scenario, CRISIL is conducting a webinar where its experts will discuss the following topics:


  • Demand-supply dynamics and the road ahead, including segmental expectations
  • Opportunities and impact on market share dynamics
  • Profitability trends for various dairy segments
  • Capital spending and working capital management
  • Credit quality trends


This will be followed by a panel discussion by industry leaders, and a Q&A session.



For any assistance/ query, please call: Nupura Paigankar | +91 22 3342 8415 | Nupura.Paigankar@ext-crisil.com