Dindigul Farm Product Ltd IPO

About Dindigul Farm Product Limited

Dindigul Farm Product Limited, established in 2010, specialises in processing whole and skimmed milk to produce a range of dairy ingredients. These include milk protein concentrates, skimmed milk powder, dairy whitener, whey protein concentrate, milk whey powder, casein, unbranded cream, butter, and fat-filled powders for infant milk formula. The processing facility is located in Dindigul, covering 15 acres, and adheres to stringent quality standards such as FSSC 22000, FSSAI, Halal, Kosher, and European regulations. The company is also registered with APEDA (The Agricultural and Processed Food Products Export Development Authority).

The company procures approximately 50,000 liters of milk daily from farmers and between 30,000 to 100,000 liters from the open market or third-party suppliers. The procurement network includes over 150 village collection centers, connecting directly with more than 4,000 farmers and 50 dairy farms. Milk quality is ensured through automatic milk analysers and rigorous testing at village collection centers and chilling centers.

Dindigul Farm Product Limited markets its products under the brands EnNutrica and ActivDay, catering to various industries such as dairy, food ingredients, nutrition, ice cream, and baking. In the financial year 2022-23, the company sold products in over 15 states in India and three international markets. Plans are underway to expand further into ASEAN and European countries.

The company's leadership, headed by Chairman & Managing Director R. Rajasekaran, boasts over 20 years of experience in the dairy industry. The company also collaborates with FSSAI on regulatory matters concerning milk protein concentrates.

Dindigul Farm Product Limited focuses on quality control and assurance, adhering to documented SOPs and regular audits. The company's manufacturing facility in Dindigul is equipped with advanced machinery for various dairy processing techniques, ensuring high standards of production. The company is also expanding its product portfolio to include butter and customised solutions for different age groups under its B2C brand ActivDay.

To enhance brand visibility, the company engages in various promotional activities and aims to improve operational efficiencies through best practices in dairy processing. By leveraging its management's expertise and strategic expansions, Dindigul Farm Product Limited is well-positioned for continued growth in both domestic and international markets.

Industry Outlook:

1. India’s economic growth in FY23 is forecasted to be between 6.5% and 7.0%, driven by private consumption and capital formation. This growth indicates India's resilience despite global challenges. With India's economy set to grow robustly, Dindigul Farm Product Limited can expect increased consumer spending power, driving demand for its dairy products.
2. India leads globally in milk production, achieving 221.06 million tonnes in 2021-22, up from 209.96 million tonnes in 2020-21, indicating a 5.29% growth rate. The per capita availability of milk reached 444 grams per day in 2021-22, surpassing the global average of 320 grams per day. The steady growth in milk production and increasing per capita milk availability create a fertile market for Dindigul Farm Product Limited.
3. The dairy market is projected to grow from ₹ 13.17 lakh crore in 2021 to ₹ 30.84 lakh crore by 2027, with liquid milk and dairy products like cheese and organic milk expected to grow significantly. Providing ample opportunities for Dindigul Farm Product Limited to diversify its product range and enhance market share.

Dindigul Farm Product Limited IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

1. Funding Capital Expenditure with ₹ 1,212.33 lakh to enhance infrastructure, diversify products, and increase market share.
2. Allocating ₹ 1,384.00 lakh for working capital requirements ensuring efficient daily operations and quick market response.
3. The remaining funds will be allotted for general corporate purposes, providing financial stability and flexibility for unforeseen expenses and growth opportunities.

Peer Details

The following are the listed peers of Dindigul Farm Product Limited:

1. Dodla Dairy Limited
2. Parag Milk Foods Limited
3. Modern Dairies Limited

How To Check the Allotment Status of the Dindigul Farm Product Limited IPO?

Steps to check IPO allotment status on Angel One’s app:

• Log in to the Angel One app.
• Go to the individual order details page of the IPO that you had applied for.
• Check the IPO allotment status. As such, Angel One will notify you of your IPO allotment status via push notification, email, and SMS.

Contact Details of Dindigul Farm Product Limited

Registered office: 2/52-3, Pillaiyarnatham Pithalaipatty Post, Dindigul, Tamil Nadu, India, 624002

Phone: +91 94980 99930

E-mail: cs@ennutrica.com