India: Dairies to milk 13-14 pc revenue growth this year on strong demand

New Delhi [India], August 4 (ANI): India’s dairy industry is expected to see healthy revenue growth of 13-14 per cent this financial year 2024-25, asserted Crisil Ratings, as strong consumer demand continues along with an improved supply of raw milk. A rise in raw milk supply will also lead to higher working capital requirements for dairy players. That, along with continued capital expenditure (capex) by organized dairies over the next two fiscals will result in debt levels inching up. Nevertheless, credit profiles will be stable supported by strong balance sheets, a CRISIL Ratings analysis of 38 dairies accounting for 60 per cent of the organised segment revenue indicates so. Mohit Makhija, Senior Director, CRISIL Ratings, says, “Amidst modest growth of 2-4 per cent in realization (rates), the dairy industry’s revenues are seen rising on healthy 9-11 per cent growth in volumes.” The value-added products segment – a 40 per cent contributor to the industry revenues – is expected to ...