Prabhat Dairy announced yesterday after market hours that it has forayed into animal nutrition business.
Already in the cattle-feed business, the company has now got into comprehensive animal nutrition business. It has increased the focus on this by expanding the farmer base buying cattlefeed for its animals. Further to this, the company has also taken preliminary steps in the area of mineral premixes by executing a joint development agreement with DLG, Denmark, based world leader in high-quality vitamin-mineral feeds for the development of two products in Denmark for the improvement of health and to increase milk productivity and quality of the cattle.
These two products, one for "Milking Cow" and another for "Dry Cow", will be given to 150 selected farms to administer on 1000 cows. This pilot phase will be for 4-6 months. Post successful pilot, commercial launch will be planned by the company. With this the company shall strengthen its production chain but also further build their current strong association with the farmers.
The company had ended Q2FY19 with a 36% (YoY) rise in net profit at Rs.12 crore on a 9% rise in total revenue at Rs.419 crore.
The market has reacted positively to this news today morning. The stock price rose 6% to Rs.97.90, with volumes going up almost 2 times.