Risks
Commodity Price Volatility: Fluctuations in milk procurement prices (due to feed costs, weather, supply-demand imbalances) can impact margins.
Supply Chain Disruptions: Perishable nature of products makes the company vulnerable to logistics failures, quality control issues, and transportation strikes.
Intense Competition: From large integrated dairy players with their own production and distribution, as well as a multitude of local traders, leading to potential margin pressure.
Regulatory Compliance: Adherence to evolving food safety standards, quality checks, and packaging regulations in the dairy sector.
Inventory Management & Spoilage: Risk of inventory write-offs due to the short shelf life of many dairy products if sales forecasts are inaccurate.
Customer Concentration Risk: Over-reliance on a few large retail chains or institutional clients for a significant portion of revenue.