Dutch Lady (M) RM1b sales target on track

Dutch Lady Milk Industries Bhd is on track to reach its RM1 billion
sales target for 2013, despite the slowdown in the local dairy
industry, Managing Director Rahul Colaco says.

He said the
growth of the local dairy industry was expected to reach between six
per cent and seven per cent this year, compared with last year's eight
per cent to nine per cent.

"However, we believe we will reach
the RM1 billion target, driven by the strength of our brand and market
position," he told a press conference after the group's annual general
meeting today.

Colaco also said the group is always striving to
not increase its products' prices substantially and aimed to minimise
the effects on consumers.

"In 2011, we took price increases
selectively on our range of products and the total impact of this was
somewhere close to five per cent, broadly in line with inflation.

"This
year, price increases will be less than two per cent, but at the same
time, the volatile economy has made it hard to predict the price of
dairy raw materials as well as the currency movement," he said.

Dutch
Lady Malaysia, which operates mainly in two segments, powdered milk for
children and liquid milk for families, holds a 19 per cent market share
in the local dairy market.

However, the group has captured a 22
per cent market share in the powdered milk segment and 50 per cent of
the liquid milk segment.

"Our liquid milk business has been
growing significantly and over the long term, the segment has the
opportunity to grow fourteen times.

"We have also planned to
increase the production capacity of our liquid milk next year to cater
to our growing consumer base in this segment," he said. -- Bernama