India's Dairy Industry Set for Robust Revenue Growth: Report

India's dairy industry is forecasted to experience revenue growth of 13-14% this financial year. Strong consumer demand for value-added products and expected good monsoon improving raw milk supply are key growth drivers. Increased working capital needs and stable credit profiles, despite rising debt levels, are noted.

The Indian dairy industry is poised for a healthy revenue growth of 13-14% in this financial year, driven by strong consumer demand and an improved supply of raw milk, according to a report released on Wednesday.

The report, issued by Crisil Ratings, indicates that rising consumption of value-added products and good monsoon prospects will bolster this growth. Consequently, dairy players will face higher working capital requirements due to the increased supply of raw milk.

Despite the industry’s continued capital expenditure over the next two years potentially raising debt levels, the report assures that credit profiles will remain stable thanks to strong balance sheets. Enhanced milk supply, aided by various measures such as better monsoon and genetic improvements in cattle, is forecasted to support ongoing demand and profitability.