From the Chairman FY 2020-21


 
 
Dear Shareholders,

Over the years, we have established ourselves as a leading integrated solutions provider to the dairy industry. Throughout its journey of over three decades, IDMC has remained true to its philosophy of empowering customers with indigenous and cost-effective engineering and packaging solutions.

India is the world’s leading producer and consumer of dairy products. Dairy activities form an essential part of the rural economy, serving as an important source of income and employment. Majority of rural households are engaged in milk production, with a large proportion comprising small and marginal farmers.

  
 
The year 2020 redefined the way in which we all think and live. The volatility of the COVID-19 pandemic followed by stringent lockdowns severely impacted economic activity, bringing manufacturing and trading activities to a screeching halt. Prolonged lockdown exacerbated existing vulnerabilities of the country including the weakened financial sector, private investments, and consumption demand. Lockdowns in many regions within the country had limited the Company’s ability to visit potential customers. During the time of lockdown, most of the dairies had limited stock of poly films for packing milk. The Company ensured that the poly films were supplied in time to its customers despite the challenges faced during the lockdown. Also, service teams were available at various states for servicing the Bulk Milk Coolers and other equipment to ensure uninterrupted milk collection at the village level.

Nevertheless, with gradual relaxations in lockdown, the country has progressively seen the economy recovering steadily.

As part of COVID-19 support measures, the Government has announced a ₹15,000 crore Animal Husbandry Infrastructure Development Fund (AHIDF) with an interest subsidy scheme to support private investment in dairy processing, value addition, and cattle feed infrastructure. This is part of the mega ₹20 lakh crore package to revive the economy from the COVID-19 pandemic. The AHIDF will enable greater infrastructure investments in dairy and animal feed plants, which will also boost exports.

Further, the Government has implemented various policies and schemes that are favourable for the growth of the dairy industry. The Department of Animal Husbandry, Dairy and Fisheries has formulated a comprehensive plan named ‘National Action Plan for Dairy Development: Vision 2022’, which envisages building additional milk processing infrastructure and strengthen milk production in major milk producing areas. Other programmes to enhance milk production and improve cattle productivity include Intensive Dairy Development Programme (IDDP); Dairy Entrepreneurship Development Scheme (DEDS); National Programme for Dairy Development (NPDD), etc. IDMC has proficient project execution team and equipment manufacturing capabilities which enables it to supply high-quality, advanced dairy equipment for modernisation and creation of additional milk processing and chilling infrastructure. The Company leverages state-of-the-art technology across all verticals to maximise capabilities and enhance operational efficiency, thereby increasing returns to milk producers.

The Company has been carrying out several research and development activities to provide new products to the dairy sector. These include:

Development of a continuous Khoa manufacturing machine of 200 Kg/hr capacity. At present, most of the Khoa is made through boiling milk in open pans, which are not energy efficient. The continuous Khoa machine apart from reducing the steam consumption, also ensures hygiene in the manufacturing process.

Developed an automatic sampling system mounted on road milk tankers which ensures collection of tamper-proof samples and also reduces the possibility of adulteration enroute from the village society to the main dairy.

A solar bulk milk cooler of 1,000 Litre capacity using the principles of thermal storage system.

As the world adapts to the new normal, our focus remains on ensuring continuity of our operations and driving sustainable business growth. We continue to work towards diversifying the Company’s presence to other segments such as healthcare, food processing, in addition to strengthening position in the niche dairy segment. The future will demand increased commitment from companies making sure that business stays committed to the community, consumers and the planet. I am quite confident that IDMC, backed by its dynamic capabilities and highly talented team, is well placed to capitalise on the market opportunities and strengthen India’s dairy value chain.

I would like to express my sincere gratitude to our customers, our business partners, our employees, and our communities for the unstinted trust and support reposed in us.

VARSHA JOSHI
Chairman
 
  
 
 
 
 
 

 
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