Tasty Dairy Specialities Ltd, which has been predominantly a B2B player, is looking to expand into the B2C segment by entering the manufacturing of an entire range of value added dairy products.

According to Atul Mehra, Chairman, plans are afoot to establish capacities to manufacture a new range of value-added dairy products ,including whey powder, cheese, pouch liquid milk variants, curd, paneer, long shelf-life flavoured milk and dairy whitener among others.

The ₹400 crore company, which was earlier listed on the SME platform of BSE through IPO, recently migrated to the main board of the exchange.

“We have a capacity to process over three lakh litres of milk a day and nearly 95 per cent of our business currently caters to the B2B segment. We have a very small share of B2C (around 5-7 per cent). We plan to increase it to 25-30 per cent in the next four-five years,” Mehra told BusinessLine .

The company is hopeful of commencing manufacturing of these products by the fourth quarter of the current financial year.

Diversifying product basket

While diversification into the consumer segment was always on cards, it has been hastened given the significant change in consumer behaviour and steady rise in demand for value added dairy products.

Tasty Dairy currently has a portfolio of traditional value added products including butter, ghee and gulab jamun mix. The launch of additional products in the category would help diversify its product basket.

The company has plans to scale up the capacity of its existing plant to six lakh liters per day.

Plans are also afoot to venture into the complementing consumer basket, including bread and eggs, the company said in its investor presentation uploaded on the BSE recently. This apart, it is also open to explore and assess the market potential of certain products such as butter milk, yogurt and ice cream to complete its suite of offerings.

Tasty Dairy would also lay emphasis on designing its products appropriately with a clear focus on packaging, composition, shelf life and so on targeted at the HoReCa and retail segment.

Talking about the impact of the Covid-19 pandemic on the dairy industry, he said, while there was an initial setback during the first two months of lockdown with schools, restaurants closing and marriages being postponed, however, demand has been recovering fast.

“There has been an increase in at-home consumption of milk and other value added dairy products and the trend is here to stay,” he said.