VRS Foods, the New-Delhi-based company that owns dairy brand Paras, is targeting a turnover of Rs 5,000 crore over the next five years, as it looks to tap growing demand for value-added dairy and protein products while expanding its consumer-facing portfolio and pushing its presence into new markets, chief marketing officer VPS Malik said in a conversation with FE.
The company, which currently generates about Rs 3,000-3,200 crore in annual turnover, derives 70% of its topline from the institutional or B2B segment. The B2C segment gives the company around 30% of its turnover. Malik said the company was looking to push up the share of its B2C segment to 50% in five years, driven by rising disposable incomes, growing awareness, and changing lifestyles.
The company is looking to support its growth with substantial capital expenditure, including a potential large manufacturing facility in Uttar Pradesh and investments across its cheese, protein and other dairy businesses. The company mainly operates in the north and west of India supplying fresh milk and other dairy products. It has four manufacturing plants in Uttar Pradesh, one plant in Madhya Pradesh and one plant in Maharashtra.
“Until last year, we were in 120 cities mainly in the north. In the last one year, we have more than doubled our presence to 250 cities, entering the south and expanding our presence in the central parts of India and west, supported by over 300 primary distributors,” Malik said. Among new cities entered include Chennai, Bengaluru and Chennai in the south; Pune, Ahmedabad in the west; Malanpur, Bhind in Madhya Pradesh. The company already has a presence in Mumbai, Bhopal, and Indore and other key consumption centres.
Malik also said the company has earmarked about Rs 100 crore for its cheese business. It has already spent Rs 65-70 crore in the first phase and plans to invest another Rs 10-15 crore in the current phase, with the remaining expenditure expected over the next four to five months.
The latest addition to its cheese portfolio is cream cheese under the Galacia brand, aimed primarily at hotels, restaurants, cafés and bakeries. This follows the launch of mozzarella and processed cheese about a year ago.
The expansion will include categories such as paneer and cow ghee, particularly across north and western India. Paras currently makes paneer at three North Indian locations and plans to expand its presence beyond existing markets. Its fresh milk operations process around 4.5–5 lakh litres a day across Delhi-NCR and Uttarakhand.
Protein and dairy ingredients will remain another key pillar. The company makes whey protein concentrates with protein levels ranging from 35% to 70%.
Malik said the company intends to maintain its position in lactose, whey proteins, and related categories even as it invests in consumer products.