American-Indian Dairy Manufacturer Starts Second Plant In Punjab

Monday, July 18th, 2016 | 1134 Views

Dairy company Schreiber Dynamix Dairies Pvt Ltd (SDDPL), a joint venture between US-based dairy manufacturer Schreiber Foods and the Indian dairy company Dynamix Dairies, has started operations of its second aseptic food processing and packaging facility in Punjab.

The facility, located at Fazilka International Food Park, has been set up with an investment of about INR 100 crore (US$14.9 million), and will initially manufacture juice products. The technology partner for the company is Tetra Pak.

SDDPL is a contract manufacturer of dairy and juice products for various leading fast-moving consumer goods (FMCG) players like PepsiCo, Nestle, Danone, Britannia and Hector Beverages. It is the country’s first dedicated packer of beverage products in Tetra Pak cartons. Aseptic beverages offer high quality and safe products with long shelf life, without the need for refrigeration or preservatives. Currently, brands like Tropicana, Nestle and Paper Boat are processed and packed in SDDPL’s plant at Baramati, Maharashtra.

Inaugurating the Fazilka facility, Amitabha Ray, managing director, SDDPL said: “India is an important market for Schreiber Foods as its food and beverage sector has been witnessing good organic growth here. Our plant at Baramati is now running at full capacity. The second plant gives us geographical advantage and helps us move closer to our consumers.”

President of Schreiber Foods’ Francois Salamon also commented: “The market for aseptic beverages in India is showing exponential growth and there still is a lot of untapped potential. This along with the Government of India’s support in developing Food Parks has given us the impetus to invest in a second facility. We are confident that with Tetra Pak we will continue to build strong relationships with beverage manufacturers, as we have in the past, to offer consumers safe and high quality products.”

Currently, nearly half of the products manufactured at the Baramati plant are being transported to northern India with the company incurring high logistic costs. This was one of the key reasons to open the second plant at Punjab. The opening of the Punjab facility will help increase its production capacity by nearly 70 percent. The company hopes to start processing and packaging of milk products in the Fazilka plant by next year.

“Our current turnover is about INR 1,500 crore and we aim to double it in the next five to six years,” added Mr Ray.

Kandarp Singh, managing director, Tetra Pak South Asia Markets, pointed out current market trends: “Indian consumers are now increasingly switching to value-added and fortified milk products. There is also a significant growth in on-the-go consumption of beverages. So, besides, traditional products, this capacity expansion will also facilitate introduction of innovative products and packaging.”