Table of Contents
Analyst Meeting on 25 October 2024
Meeting summary for Dindigul Farm Product Limited’s Meeting (10/25/2024)
Quick recap
Ravi Chandran Ranganathan (CEO), representing Dindigul Farm Product Limited, presented on the company’s history, production process, and expansion plans, including the addition of new product lines and international partnerships. The discussion also covered the company’s financial analysis, product sales, and the progress of their business, particularly the deployment of funds into machinery and the expansion of product lines. The conversation ended with a discussion on the company’s growth for the next year and the need for more recent data for a comprehensive understanding of the business’s performance.
Next steps
• Dindigul Farm Product Limited (DFPL) to complete installation of new machinery for infant milk powder line by February-March.
• Dindigul Farm Product Limited (DFPL) to publish September quarter results on the company website and BSE shortly.
Summary
Company History, and Zoom Recording
Ravi, representing Dindigul Farm Product Limited, introduced himself as the CEO and began a presentation about the company’s history and other related topics. He also mentioned starting a Zoom meeting recording.
Company’s Production Process and Expansion
Ravi discussed the company’s production process, which includes skim milk powder, milk protein concentrates, and casein proteins. By 2016, they started producing dairy products and by 2019, they entered a joint venture with a French company to manufacture fat filter products. The company has raised funds to produce infant milk ingredients and has a processing facility spread over 15 acres of land. They procure milk from around 6,000 farmers and have a network of 150 plus village collection centers. The company markets its products under the name EnNutrica and has sold products in more than 15 states domestically and three countries internationally.
Top Revenue Generating Dairy Products
DFPL discussed the company’s top revenue-generating products, including milk, protein concentrates, Casein, Skimmed Milk powder, whey powder, dairy Whitener, and sodium caseinate. These products are primarily used in the nutrition, dairy, ice cream, and baking industries. The company also produces skim milk powder, dairy whitener, Butter, milk protein concentrate, baketex, sodium caseinate, milk whey powder, and acid casein. These products are used for various applications such as protein fortification, texture enhancement, and emulsification. The company’s manufacturing facility was also showcased, highlighting the various stages of production and storage.
Company Expansion and Investment Plans
DFPL discussed the company’s history, vision, and expansion plans. Founded in 2010, the company aims to add value to the Indian dairy industry by processing milk using advanced filtration technologies. The company’s production capacity includes skim milk powder, and it is steadily entering the dairy protein market. The company has received necessary approvals and is supplying premium protein products to several nutrition companies. DFPL also mentioned plans to expand into infant milk lines and work with international companies as a 3rd party manufacturer. The company has raised investments to expand into Caseinate lines and fat filled milk powder lines, with the aim of entering Asian markets and increasing brand visibility. The company’s financial analysis and product sales were also discussed.
Clarifying Data Presentation and Relevance
DFPL clarified that the data presented was from December 23, due to restrictions preventing the sharing of current numbers. Deepak expressed concern about the relevance of this data, given that it was over 10 months old. Jaideep suggested that the latest details were available on the BSE’s website. Deepak requested a comparison with the latest September numbers, to which DFPL agreed to provide a presentation with the latest data shortly. The date for the release of the September results was not confirmed.
Business Expansion and Performance Discussion
Deepak and DFPL discussed the progress of their business, particularly the deployment of funds into machinery and the expansion of product lines. DFPL mentioned that the results of their efforts would be visible after the civil works and machinery installations are completed, expected to be by February or March. Deepak requested more details and asked about the business’s performance over the past six months, to which DFPL responded that the industry is doing well and they are adding new product lines. DFPL also mentioned that they are not allowed to share the exact numbers due to BSE regulations. Deepak asked for guidance on the company’s growth for the next year, to which DFPL responded that they expect a positive growth starting from February , when prices for dairy ingredients tend to be higher. The conversation ended with Ravi Chandran Ranganathan (CEO) thanking everyone for their support.