January 26: Sitaram Gokul Milks Private Limited is preparing to diversify its products with an investment of Rs 60 million. The company informed that it is making preparations to diversify its products as per the demand of the consumers.
The company is pouring an investment of Rs 60 million for the purchase of equipment, expansion of human resources and physical infrastructure in order to diversify its products.
Sitaram Gokul Milks Private Limited has been producing and selling milk and ghee since the last 25 years. The company was struggling to expand its production due to lack of technical manpower. But the company decided to expand its products due to demand from the consumers.
In the first phase, the company has already sent samples of curd, lassi, ice cream, cottage cheese, and flavoured milk to the market. The company’s chairman Sumit Kedia informed that they will soon begin mass production as they have already received positive feedback from the consumers.
According to him, the company’s operation cost will increase by 20 percent after increasing production. The company is also increasing its human resource by 10 percent. The company is providing direct and indirect employment to 450 persons. Likewise, more than 100,000 families of farmers of Chitwan, Nawalparasi, Kavre, Morang, Bara and Sarlahi are associated with the company. The company has been spending Rs 2.4 million per day to purchase milk from the producers.
The company had been selling 40,000 litres of milk on a daily basis before the start of the coronavirus pandemic. But it later reduced production by 50 percent and hasn’t been able to return to the previous mode of production.
The consumption of milk had reduced due to the closure of big hotels, restaurants, schools and colleges since a long time. The company says it was forced to reduce its production because the purchasing power of the consumers has also diminished at the moment.