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Indian Dairy industry- A Brief Study

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  1. 1. 1
  2. 2. Dept. Of Agricultural Marketing, Co-operation and Business Management, University of Agricultural Sciences, GKVK, Bangalore-65 AGRICULTURAL BUSINESS MANAGEMENT (AMC- 506) 2 Presented To, Dr. G.N. Nagaraja, Proffessor, Dept. Of Ag. Ma. Co. & BM. Presented By, Rashmi Ranjan Moharana, Jr. M.Sc. (Ag.) in Ag.Ma.Co. PALB-4128
  3. 3. 3 Contents Indian Dairy Industry- A Profile Introduction History Importance Breeds Production Indian Industries Product development Consumption Product Export and its potential Market strategy Research & Developments SWOT analysis Case study- AMUL Conclusion
  4. 4. INDIAN DAIRY INDUSTRY a profile 4 Today, India is 'The Oyster' of the global dairy industry. It offers opportunities in large number to entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products. The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around the world. It may transfer technology, sign joint ventures or use India as a sourcing center for regional exports.
  5. 5. 5 Indias dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. Moreover with WTO regulations expected to come into force in coming years all the developed countries which are among big exporters today would have to withdraw the support and subsidy to their domestic milk products sector. Also India today is the lowest cost producer of per litre of milk in the world. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of these milk producers have already obtained quality
  6. 6. 6 India has the credit of being the largest producer as well as the biggest consumer of milk in the world. It also has the worlds largest dairy herd (comprised of cows and buffalos). In 2010-11, livestock generated output worth INR 2,075 billion (at 2004-05 prices) which comprised 4% of the GDP and 26% of the agricultural GDP. Indias milk production accounts for 16% of total global output. A budgetary outlay of INR 31, 560 Crore is recommended by the working group for 12th Five Year Plan of Planning commission of India for animal husbandry and dairy sector to achieve growth rate of 6%. In the past 20 years, milk production in India has doubled and has reached the 116.2 million tonnes a year thus becoming Indias No.1 farm commodity. The current market size of the dairy industry is INR 2.6 trillion and is estimated to grow up to INR 3.7 trillion by INTRODUCTION:
  7. 7. 7 Size of the Industry More than 10 million dairy farmers belong to 96,000 local dairy cooperatives, who sell their product to one of 170 milk producers cooperative unions who in turn are supported by 15 state cooperative Geographica l distribution Delhi, Punjab, Mumbai, Gujarat, Surat, Lucknow, Bihar, Hyderabad Output per annum Growing 5 % per annum Market Capitalizatio n The industry contributes about Rs 1,15,970 to the national economy Table No.-1 A birds eye view to Indian Dairy (As per 2013) Source- www.aavianmilk.com
  8. 8. History : 8 Prior to year 2000, India was not noticed by most international dairy companies, as the country was neither an active importer nor an exporter of dairy products. Although India has imported some milk powder and butter oils as aid between 1970 and 1990, exports from India were insignificantly small and it was not until 2000 onwards, when Indian dairy products started having more presence in global markets. The transition of the Indian milk industry from a situation of net import to that of surplus has been led by the efforts of National Dairy Development Board's Operation Flood programme under the leadership of the former Chairman of the board Dr. Kurien.
  9. 9. REVOLUTION IN DAIRY INDUSTRY: 9 Operation flood: It started by Indias National Dairy Development Board in 1970 Introduced under guidance of Dr . Verghese Kurien(father of operation flood) It also called White Revolution. Objective: To create a nation-wide Milk gride It results in making India the largest producer of milk and milk products.
  10. 10. 10 Operation Flood has led to the modernization of India's dairy sector and created a strong network for procurement processing and distribution of milk by the co-operative sector. Per capita availability of milk has increased from 132 g per day in 1950 to over 220 g per day in 1998. The main thrust of Operation Flood was to organize dairy cooperatives in the milk shed areas of the village, and to link them to the four Metro cities, which are the main markets for milk. Todays per capita consumption has been increased up to 290g per day (2012-13)
  11. 11. 11 Milk production grew from 21 million tonnes in 1970 to nearly 69 million tonnes in 1996 - more than three fold, at the compound growth rate of 4.5 per cent. Some ten million farmers were enrolled as members in about 73000 milk cooperative societies. By 1996, milk cooperatives attained a dominating share of the Indian dairy market - butter 96%, pasteurized liquid milk over 90%, milk powder 59% and processed cheese 85%. The dairy cooperative movement has continued to grow in the post Operation Flood-era.
  12. 12. Importance of Milk in human diet: 12 Skin glows, moisturisation ( Lactic acid factor) Healthy bones and teeth (Calcium and Vit.-D factor) Muscle power enhancement ( protein factor) Excess Weight loss (from low fat or skimmed milk ) Less stress ( warm milk relaxes tense muscles and frayed nerves) Lowering of high Fig no.-1
  13. 13. Interesting Facts 13 It takes 2.5 gallons of milk to make one gallon of ice cream. It takes 10 gallons of milk to make one pound of cheese. It takes two gallons of water to create one gallon of milk. 500 gallons of blood have to pass through the udder to produce one gallon of milk. You would have to eat 2.5 cups of broccoli or 1 cup of turnip greens to equal the calcium in two servings of dairy products.
  14. 14. Dairy Cow Breeds 14 Indian Sahiwal Devni Giri
  15. 15. Exotic Breeds Jersy Holstein freision Karan swiss 15
  16. 16. Buffalo Breeds 16 Murrah Bhadawa ri Mehshan a
  17. 17. Livestock population in India: (in Millions) 17 Sl. No. Year CATTLE BUFFALO 1 1951 155.3 43.4 2 1956 158.7 44.9 3 1961 175.6 51.2 4 1966 176.2 53.0 5 1972 178.3 57.4 6 1977 180.0 62.0 7 1982 192.5 69.8 8 1987 199.7 76.0 9 1992 204.6 84.2 10 1997 198.9 89.9 11 2003 185.2 97.9 12 2007 199.1 105.3 Table no.: 2 Source: Livestock Censuses, Dept. of Animal Husbandry, Dairying & Fisheries, M
  18. 18. Product development: 18 Dairy foods can be manufactured and packaged for export to countries where Indian food enjoys basic acceptance. The manufacturing may be carried out in contract plants in India. An option to market the products in collaboration with local establishments or entrepreneurs can also be explored. Products exhibiting potential include typical indigenous dairy foods either not available in foreign countries. Gulab-jamuns, Burfi, Peda, Rasagullas, and a host of other Indian sweets have good business prospects. Products typically foreign to India but indigenous to other countries could also be developed for export. Such products can be manufactured in retail package sizes and could be produced from milk of sheep, goats and camel.
  19. 19. Indian (traditional) Milk Products: 19 There are a large variety of traditional Indian milk products such as Makkhan - unsalted butter. Ghee - butter oil prepared by heat clarification, for longer shelf life. Kheer - a sweet mix of boiled milk, sugar and rice. Basundi - milk and sugar boiled down till it thickens. Rabri - sweetened cream. Misthi Dahi - a type of curd made sweet generally. Lassi - curd mixed with water and sugar/ salt. Channa/Paneer - milk mixed with lactic acid to coagulate. Khoa - evaporated milk, used as a base to produce sweet meats. The market for indigenous based milk food products is difficult to estimate as most of these products are
  20. 20. Major products exported from Indian Dairy Industry (as per 2011) 20 Liquid Milk- 30% of total yield Ghee- 10% Khoa/Paneer- 12% Table butter + Cheese 2% Milk Powder 1% Ethnic sweets/fermented products/Ice-cream 45% Source- C.Gnana,2011, Production and Marketing of Aavin M Milk Products: A Study, Tamilnadu Journal of Co-op
  21. 21. Top 10 milk producers in World ( in 2012) 21 Sl. No. Rank Country Production (Metric tonnes) 1 1 United States 90,865,000 2 2 India 54,000,000 3 3 China 37,419,500 4 4 Brazil 32,304,421 5 5 Russia 31,576,047 6 6 Germany 30,506,929 7 7 France 23,983,196 8 8 New zealand 20,053,000 9 9 Turkey 15,977,837 10 10 United Kingdom 13,884,000 Table no.-3 Source- www.wikipedia.in/indiandairy/
  22. 22. Top 10 Milk producers in India 22 Sl. No. Dairy Industries Production (000 litres per day) 1 AMUL 2500 2 OMFED, Odisha 1950 3 AP Dairy Development Co- operative Federation Ltd. 1500 4 Haryana Dairy Development Co- op. Fed. Ltd 1450 5 Dynamix Dairy Industries Ltd., Maharastra 1000 6 Mother Dairy, Delhi 1000 7 Vasundhara Dairy, Nagpur 1000 8 Dudhsagar Dairy, Gujrat 950 9 Hatsun Agro, Chennai 800 10 Sterling Agro, New Delhi 800 Source-www.business.mapsofindia.com/food-industry/dairy/ Table no.-4
  23. 23. MILK PRODUCTION IN INDIA 23 Sl. No. Year Production (m Tonnes) Per Capita Availability (g/day) 1 1991-92 55.7 178 2 1992-93 58.0 182 3 1993-94 60.6 187 4 1994-95 63.8 194 5 1995-96 66.2 197 6 1996-97 69.1 202 7 1997-98 72.1 207 8 1998-99 75.4 213 9 1999-2000 78.3 217 10 2000-01 80.6 220 11 2001-02 84.4 225 12 2002-03 86.2 230 Table No.-5
  24. 24. Contd. 24 Sl. No. Year Production (m Tonnes) Per Capita Availability (g/day) 13 2003-04 88.1 231 14 2004-05 92.5 233 15 2005-06 97.1 241 16 2006-07 102.6 251 17 2007-08 107.9 260 18 2008-09 112.2 266 19 2009-10 116.4 273 20 2010-11 121.8 281 21 2011-12 127.9 290 22 2012-13 132.4 295 Source: Dept. of Animal Husbandry, Dairying & Fisheries, Ministry of A www.nddb.org
  25. 25. Annual Growth Rate(%) 25 Sl. No. Year Milk(AGR%) 1 1950-51 to 1960-61 1.64 2 1960-61 to 1973-74 1.15 3 1973-74 to 1980-81 4.51(white revolution) 4 1980-81 to 1990-91 5.48 5 1990-91 to 2000-01 4.11 6 2000-01 t0 2009-10 5.77 Table No.-6 Source : www.nddb.com
  26. 26. State-wise share of milk production (in year 2009-10) 26 Sl. No. state Cow milk (in 1000tonne) Buffalo milk (in 1000tonne) 1 Andhra Pradesh 2828 7601 2 Bihar 3097 2807 3 Gujrat 3327 5285 4 Haryana 925 5020 5 Karnataka 3263 1506 6 Rajasthan 2701 5840 7 Maharashtra 4042 3355 8 Uttar Pradesh 5142 13902 INDIA 47825 59201 Table No.:7 Source : www.nddb.com
  27. 27. Key facts of Indian Dairy Industry 27 217 233 265 78 93 115 1999-00 2004-05 2009-10 Per capita availability in grams milk production in million tonnes Data Source- www.faostat.org.in/keyfacts_dairy Fig No.-2
  28. 28. 28 Sl. No . STATE CONSUMPTION Sl. No. STATE CONSUMPTIO N 1 ALL INDIA 290 12 MANIPUR 80 2 A.P. 391 13 MEGHALAYA 74 3 ARUNACHAL PRADESH 44 14 MIZORAM 35 4 ASSAM 70 15 NAGALAND 108 5 BIHAR 175 16 ODISHA 112 6 GOA 113 17 GUJRAT 445 7 KARNATAKA 244 18 HARYANA 720 8 KERALA 223 19 H.P. 447 9 M.P. 308 20 J & K 352 10 MAHARAST RA 206 21 A & N ISLANDS 187 11 W.B. 140 22 CHANDIGAR H 117 Table No.- 8..STATEWISE PERCAPITA CONSUMPTION IN 2011-12
  29. 29. 29 Sl. No. STATE CONSUMPTION 23 DADRA & NAGAR HAVELI 89 24 DAMAN & DIU 11 25 DELHI 82 26 LAKSHADWEEP 9 27 PONDICHERRY 99 28 CHATTISGARH 120 29 UTTARAKHAND 384 30 JHARKHAND 145 31 PUNJAB 945 32 RAJASTHAN 539 33 SIKKIM 202 34 TAMILNADU 265 35 TRIPURA 83 36 U.P. 310 Source: Dept. of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, GOI, www.nddb.org Contd..
  30. 30. Industry structure: 30 State co-operatives & privately owned Indian companies dominate the liquid milk sector India has around 70,000 village dairy co-operatives, 22 co- operative dairy federations at state level & 170 milk producer unions at district level as in 2011. Infant Milk Food, Milk Powder, Whitener, Condensed Milk, Malted Milk Food, Butter, Cheese, Ice Cream and Ghee are the major value added products from the Indian dairy sector Gujarat Cooperative Milk Marketing Federation Ltd. (Amul) and Nestle are the leading players in the value-added segment
  31. 31. Structure of Indian dairy industry (in 2012) 31 Indian Dairy Industry Organized 20% Private Dairies 532 Cooperative Societies 254 Government 46 Unorganized 80% Fig. no.-3
  32. 32. 32 Sl.No Company Brands Major Products 1 Nestle India Limited Milkmaid, Cerelac, Lactogen, Milo, Everyday Sweetened condensed milk, malted foods, milk powder and Dairy whitener 2 Milkfood Limited Milkfood Ghee, ice cream, and other milk products 3 SmithKline Beecham Limited Horlicks, Maltova, Viva Malted Milkfood, ghee, butter, powdered milk, milk fluid and other milk based baby foods. 4 Indodan Industries Limited Indana Condensed milk, skimmed milk powder, whole milk powder, dairy milk whitener, chilled and processed milk 5 Gujarat Co-operative milk Marketing Federation Limited Amul Butter, cheese and other milk products 6 H.J. Heinz Limited Farex, Complan, Glactose, Bonniemix, Vitamilk Infant Milkfood, malted Milkfood DIFFERENT COMPANY PROFILES:Table No.-9
  33. 33. Dairy industries in Karnataka: 33 Dempo Dairy Industries Ltd Godavari Sugar Mills Ltd K C Das, Pvt Ltd Karnataka Cooperative Milk Producers' Federation Ltd: Bangalore, Belgaum, Dharwad, Gejjalagere, Gulbarga, Hassan, Kolar, Kudige, Mangalore, Mysore, Shimoga, Tumkur Lakshmi Srinivasa Milks Pvt Ltd Mother Dairy Bangalore (KMF) Nilgiri Dairy Farm Ltd Ocean's Milk Food's Pvt Ltd Pankaj Dairy Farm Shree Milk Supply Sri Lakshmi Srinivasa Milks Pvt Ltd Sri Ramakrishna Dairy Sri Sannati Food Processors Srikrishna Milks Pvt Ltd Trishna Dairy Vintage Foods & Industries Ltd Vitamilk India
  34. 34. Emerging Dairy Markets 34 Food service institutional market: It is growing at double the rate of consumer market Defense market: An important growing market for quality products at reasonable prices Ingredients market: A boom is forecast in the market of dairy products used as raw material in pharmaceutical and allied industries Parlour market: The increasing away-from-home consumption trend opens new vistas for ready-to- serve dairy products which would ride piggyback on the fast food revolution sweeping the urban India.
  35. 35. 35 Fig. no.-4
  36. 36. Export Potential: 36 India has the potential to become one of the leading players in milk and milk product exports. Locational advantage : India is located amidst major milk deficit countries in Asia and Africa. Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located close to India. Low Cost Of Production : Milk production is scale insensitive and labour intensive. Due to low labour cost, cost of production of milk is significantly lower in India. Quality : Significant investment has to be made in milk procurement, equipments, chilling and refrigeration facilities. Also, training has to be imparted to improve the quality to bring it up to international standards. Productivity : To have an exportable surplus in the long-term and also to maintain cost competitiveness, it is imperative to improve productivity of Indian cattle. There is a vast market for the export of traditional milk products such as ghee, paneer, shrikhand, rasgolas and other ethnic sweets to the large
  37. 37. Research and development works in Indian context of Dairy sectors: 37 Intensive Dairy Development Programmed (IDDP): The Schemes, modified under this programmes are on the basis of the recommendation of the evaluation studies which were launched during Eighth Plan period and is being continued through out the Eleventh Plan with an outlay of Rs. 32.49 core for 2009-10. Strengthening Infrastructure for Quality and Clean Milk Production (CMP): this is a centrally sponsored scheme which was launched in October 2003, which had the main objective of improving the quality of raw milk produced at the every village level in the India. Dairy Venture Capital Fund- this is introduced in the Tenth Fiver Year Plan to bring about structural changes in unorganized sector, which would measure like milk processing at village level, marketing of pasteurized milk in
  38. 38. Review of existing Government initiatives: 38 IDDP(Intensive Dairy Development Plan) Cooperative scheme NPCBB(National Programme for Cattle and Buffalo Breeding) DVCFS(Dairy Venture Capital Fund Scheme) National Dairy Plan Delhi Milk Scheme Central Fodder Scheme
  39. 39. 39
  40. 40. STRENGTH 40 Demand profile: Absolutely optimistic. Margins: Quite reasonable, even on packed liquid milk. Flexibility of product mixture : Tremendous. With balancing equipment, you can keep on adding to your product line. Availability of raw material: Abundant. Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which requires proper channelization. Technical manpower: Professionally-trained, technical human resource pool, built over last 30
  41. 41. WEAKNESSES 41 Perishability: Pasteurization has overcome this weakness partially. Lack of control over yield: Theoretically, there is little control over milk yield. Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk procurement problematic. Problematic distribution: lack of proper milk and milk product distribution channel. Competition: With so many newcomers entering this industry, competition is becoming tougher day by day.
  42. 42. OPPORTUNITIES 42 Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets, etc Addition of cultured products like yoghurt and cheese lend further strength - both in terms of utilization of resources and presence in the market place. A lateral view opens up opportunities in milk proteins through casein, caseinates and other dietary proteins, further opening up export opportunies. Export potential: Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East
  43. 43. THREATS 43 Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance.
  44. 44. Challenges faced : Challenge at the small holder level 44 Inadequate feeding of animals More disease incidence Low genetic potential of animals Lack of chilling capacities High production cost Delayed and irregular payment Challenges at collection level Milk base consisting of small holder. Involvement of too many intermediaries Gaps in information Absence of screening system Lack of infrastructure Manipulation of the quality of milk by farmer
  45. 45. Challenges at processing level 45 Seasonality of production and fluctuating supply Absence of quality standard Adulteration and food safety Lack of trained and skilled workers Challenges at storage and logistics level Lack of cold storage facilities Lack of transport facilities Challenges for marketing Majority of the market is still un-organised Acceptability of the consumer base Less penetration to the rural market Lack of transparent milking pricing system
  46. 46. 46
  47. 47. A MUL: A n Introd uction 47 AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand. Amul products have been in use in millions of homes since 1946. Amul a leading food brand in India with a Turnover: Rs. 6711 crore in 2008-09. In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award. Shri Ramsingh Prabhatsingh Parmar is the present chairman and R.S.Sodhi is the present Chief GM of AMUL. Amul (ANAND MILK UNION LIMITED) formed in 1946 , is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organization, Gujarat cooperative milk Marketing Federation Ltd. (GCMMF) , which today is jointly owned by some 3 million milk producers in Gujarat, India.
  48. 48. 48 Dr.Verghese Kurien who is also well-known as The Father of White Revolution in India and the MILK-MAN. He is also known as the brain behind the success of the largest dairy development programme in the world by the name of Operation flood.
  49. 49. White Revolution. (1966) Verghese Kuriens Amul experiment in Gujarat soon blossomed into the much larger Operation Flood, spread over 23 states, 170 districts and 90,000 village cooperatives. It changed India from an importer to the world's largest milk producer and exporter. 49
  50. 50. 50
  51. 51. Liberate our farmers from economic oppression and lead them to prosperity. 51 Vision
  52. 52. Mission2020 :- dairy co operatives of Gujarat turnover of Rs.27000 crores by the year 2020. 52 Mission
  53. 53. 53 Strategy of Amul Uses automated milk collection system units for collection of milk. Uses data analysis software for forecasting milk production and increasing productivity One of the first five Indian organizations to have a Web presence Has made IT education compulsory for all its employees .
  54. 54. Industry Profile: Members: 13 district cooperative milk producers' Union No. of Producer Members: 3 million No. of Village Societies: 12,792 Total Milk handling capacity: 10.16 million liters per day Milk collection (Total - 2006-07): 2.38 billion liters Milk collection (Daily Average 2006-07): 6.5 million liters Cattle feed manufacturing capacity: 2640Mts per day Milk Drying capacity: 594Mts. Per day.54
  55. 55. 55 AMUL ANNUAL BUSINESS
  56. 56. Annual Turnover 4300 10000 2000 0 2000 4000 6000 8000 10000 1946 1999 2007 2008 2009 2010 Time Frame INRCrores Annual Turnover Of Rs 4300 Crore (2006-07) Rs 10,000-crore mark over the next three years. Four decades to become Rs 2,000-crore entity But, the turnover doubled to over Rs 4,300 crore within nine years from 1999 to 2007 56 Source- www. timesofindia.indiatimes.com/ Fig. No.- 4
  57. 57. Marketing channels Marketing channels 57
  58. 58. 58 Fig. No.-5
  59. 59. AMUL PRODUCTS: 59
  60. 60. Types of Products 60 Bread spreads a) Amul Butter b) Amul Lite Low Fat Bread spread c) Amul Cooking Butter d) Delicious Margarine
  61. 61. 61 Pure Ghee a) Amul Pure Ghee b) Sagar Pure Ghee c) Amul Cow Ghee
  62. 62. 62 Chocolate & confectionery a) Amul Milk Chocolate b) Amul Fruit & Nut Chocolate c) Amul Bindass d) Amul Rejoice
  63. 63. 63 Fresh Milk a) Amul Taaza Milk 3% Fat b) Amul Gold Full Cream Milk 6% Fat c) Amul Shakti Standardizes Milk 4.5% Fat d) Amul cow Milk
  64. 64. Milk Powders a) Amul Full Cream Milk Powder b) Amulya Dairy Whitener c) Sagar Skimmed Milk Powder 64
  65. 65. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Market Share (in 2011) Market Share Products Amul Product Portfolio in Graph Marketshare 65 Source- www.business-standard.com/ Fig. No.-6
  66. 66. Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlours created in major cities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat. Amul has plans to create a large chain of such outlets to be managed by franchisees throughout the country. AMUL created Amul Parlours at some prominent locations in the country, which are 66 Amul "Utterly Delicious" Parlours
  67. 67. Health Conscious Kids Women Youth Calorie Conscious67
  68. 68. Kids I. Amul Kool II. Chocolate Milk III.Nutramul Energy Drink IV. Amul Kool V. Millk Shaake 68
  69. 69. Women Amul Calci 69
  70. 70. Youth I. UtterlyDelicious Pizza II. Amul Emmental Cheese III.Amul Cheese Spreads 70
  71. 71. Health Conscious I. Nutramul II.Amul Shakti Health Food Drink 71
  72. 72. Calorie Conscious I.Amul Lite II.Sagar Skimmed Milk Powder III.Amul Lite Slim and Trim Milk 72
  73. 73. SWOT Analysis 73
  74. 74. 74 STRENGTHS largest food brand in India & Asia High quality , low price Introduced TQM World's largest pouched milk brand Very highAnnual turnover Highly diverse product mix WEAKNESSES Strong dependency on weak infrastructure Risks of highly complex supply chain Short self life of its product Alliance with third parties OPPURTUNITIES Penetrate international markets Use internet to sell its products Diversify product portfolio to enter new product categories THREATS Competitors Competition from MNCs in butter Ban on export of milk powder Growing price of milk
  75. 75. CRITICAL SUCCESS FACTORS 75 1) Supply Chain 2) Developing demand 3) Introducing high value products 4) Distribution network 5) Coordination 6) Small group activities 7) Just-in-Time 8) Kiosks
  76. 76. 76 Butter Britannia Nestle Cheese Britannia Baby Food Nestle Heinz Dairy Whitener Segment Nestle Britannia Ice creams HLL
  77. 77. 77 Chocolates & Confectionaries Cadbury Nestle Pizza Pizza Hut Dominos Nirulas Frozen pizza Curd Nestle Mother Dairy Ultra High Treated Milk Nestle Britannia
  78. 78. 78 Sweet Condensed milk Nestle Cottage Cheese(Paneer) Britannia Milk Additives Cadbury Smithkline Beecham Flavored Milk Britannia Nestle
  79. 79. Changing Dynamics in the Indian Dairy Industry Self-sufficiency to Shortfall 79 India emerged as the leading producer of milk in 1998 In 2010-11 milk production was 121 million tons (4% growth rate). Based on NDDB estimates, milk demand is growing at twice this rate, estimated demand in 2020 is 180-200 mn. tonnes Indicators of imminent shortfall Consumption of nonfat dry milk is forecast to surpass Indian production in 2012, reflecting the small but growing deficit
  80. 80. Contd.. 80 Increase in the volume of marketed surplus going through organized sector as more private sector players enter the market Major National and Multinational companies investing in scaling up operations: Hatsun, Reliance, HKB (Hariyali Kisan Bazar), Nestle, Dannon, Britannia, Fonterra. Setting up of large commercial farms Dairy Motels model
  81. 81. News regarding investments: 81 IFFCO and New Zealands Fonterra set up investment World Bank to provide $352 millions for dairy development in India Source- The Hindu, Jagaran news letters
  82. 82. References: 82 business.mapsofindia.com www.socialsciences- ejournal.org/4.6.Parameshwara%20Reddy Ravishankar, 1997. Case in India, The Case of Cooperative Dairying in India-Report on an International Workshop at the International Institute, Histadrunt, Betberi, Israel, COOPNET, p-42. http://www.wikipedia.org/wiki/Amul http://www.nddb.org/English/Pages/default.aspx http://www.indiadairy.com/ http://www.aavinmilk.com/dairyprofile.html
  83. 83. 83