The Pune-based Parag Milk Foods Pvt Ltd is set to expand into South India with its Rs 85-crore milk processing facility going on stream in Chittoor, Andhra Pradesh.

The company will launch Go Kids brand of liquid milk in Chennai before rolling it out in other markets, according to Mr Devendra Shah, Chairman Parag Milk. The “Go” brand will also include a range of milk products including cheese and fruit flavoured yoghurt.

In a telephone interview to Business Line , Mr Shah said that the 12-lakh litre a day milk processing facility at Palamner, Chittoor District, commenced operations recently. This plant gives it reach to the southern markets and the export markets because of its proximity to the ports in Chennai and Andhra Pradesh.

Milk procurement for the Chittoor plant has started in Andhra Pradesh and Tamil Nadu. The company will soon expand into Karnataka also. It now handles about 2.5 lakh litres of liquid milk daily. The capacity available in the South adds to its 10 llpd in Pune where it commenced operations in 1992. Like Maharashtra, the rest of the southern markets are cow milk-based, which complements Parag Milk's traditional products lines.

As part of its expansion into South India, the company has floated a new brand Go Kids which is now going through a soft launch. Go Kids cow milk has been launched first in Chennai. It will also launch shredded cheese under the “Go” brand. Suitable for pizza and pasta dishes, shredded cheese will be launched next month in Chennai. It is now being launched in Mumbai and Bangalore, he said. GO is a brand that will target the modern segment. Parag Milk's traditional brand has been Gowardhan which will cover traditional products like ghee and butter. The market for this range is also being expanded. Earlier it was available in Maharashtra and in the last two months Gowardhan has been marketed in Bangalore.

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