India's Kwality to wind up its Dubai Operations

India’s leading dairy products processor, Kwality Ltd. have announced that they are closing its operations in Dubai. The company made the decision following a slump in the market in the UAE.

They also cited the slump in the global prices of skim milk powder (SMP) and anhydrous milk fat (AMF), as a reason for its decision to end operations. The company made the decision public today after made taking the drastic measure during its Board of Directors meeting on July 11th.

Kwality Ltd also sent a statement to the Bombay Stock Exchange (BSE) regarding its decision and the reasons behind it. The company also said that the decision was a unanimous one made by the company’s board of directors.

However, they will not be ending the sales of their products in Dubai straight away. The closure of Kwality’s operations in Dubai will be undertaken “in a phased manner” as per their statement.

The company is currently present in Kwality Dairy Products DZE (KDPF) at Jebel Ali Free Zone through a 100 percent owned subsidiary.

Nobody from Kwality’s headquarters in New Delhi was immediately available to comment on the planned closure. There has been no further statement made by the company on their decision and have also not mentioned when the withdrawal process will begin.

Kwality was initially set up as an integration unit of Kwality Ice Creams India Ltd. A prominent Indian family then acquired it in 2002.

Currently, the company has six manufacturing units around India. The dairy-based company is said to collectively have the capacity to handle 3 million litres of milk per day.

The UAE was not the only country Kwality used to export its products to. It’s reported that they sell their products in nearly 30 countries, including Japan, Seychelles, Bangladesh, Sri Lanka, Jordan, Niger and Morocco.