‘80 pc of milk products sector is unorganised and waiting to be tapped', says Pradosh Kumar Rout, Pragati Milk

Company: Pragati Milk

Founder: Pradosh Kumar Rout

Place: Cuttack, Odisha

Turnover: Rs 300 crore

In 2008, budding entrepreneur Pradosh Kumar Rout saw great potential in the milk and milk products sector in Odisha. He identified that only around twenty percent of the organised sector was covered by existing suppliers, but the other eighty percent, i.e the unorganised sector, was waiting to be tapped.

He felt that a new player, with a novel and unique setup, could come in. With this in mind, he decided to become an entrepreneur, and launched Pragati Milk in the same year.

Excerpts from an interaction with SMBStory:‍

SMBS: How did the business start?

Pradosh Kumar Rout: Looking at the potential opportunity, I launched the company with the aim to offer milk and milk products at reasonable prices. We wanted to be unique by ensuring quality products, timely payments, quality equipment and strong quality control. So far, I have invested Rs 6 crore in the business: Rs 2 crore from my own pocket, and Rs 4 crore in loans from a bank.‍

SMBStory: How did the company grow and diversify into different categories?

PKR: We had started in 2008 with the production of five thousand litres of milk. Through strong planning, hard work and recognising the potential market demand for related products, we ventured into milk products in 2010 and cream milk in 2011. Now, we cover around forty percent of the market share in Odisha.‍

SMBS: What has been the impact of your work on the customers and society? ‍

PKR: Our customers are getting quality products right at their doorsteps. Further, around 10,000 employees are working directly in our industry, and another one lakh farmers are benefiting from this company through indirect employment.‍

SMBS: What are your challenges in terms of sustaining and growing the business?

PKR: Payment of tax was a challenge initially. However, no further challenges come up since there is great scope in the milk products sector. To stay clear of issues, we use cold chain management systems through refrigerated vehicles. We also take a hundred percent cash advancement from retailers, and do our own capital management.

SMBS: What is your dream for your business in the future?

PKR: The company is planning to set up a skimmed milk powder plant in order to safeguard the excess milk production by the farmers. We also need more support from the state government, at the earliest.‍

(This story is published in partnership with the MSME Ministry to showcase success stories of SMEs)