Milk Revolution

Major PlayersParag Milk

Foods

Heritage

FoodsAmul

Mother Dairy

Danone Foods & Bevera

ges

Nestle

Andhra Pradesh Dairy

Development Co-operative Federation

Fonterra

Tirumala Milk

products

Creamline Dairy Products

Rajasthan Co-

operative Dairy

Federation

Milkfed Punjab

Co-operative

s

Dairy Market

Rabobank expects the organized dairy market to more than double from the current $10 Billion(app 60000 crores)to $ 24 Billion(144000 crore)by 2020

The demand for milk is likely to reach 180 million tonne by 2022 from the current 128 million tonne

(NDDB)

To supply to the market average incremental increase of 5 Mn tonne/annum over the next 15 years would be needed

Milk Mania

Product Portfolio

Milk Powder

Milk

Creamline Dairy

Products

Rajasthan Co-operative

Dairy Federation

Ghee

Cheese

Gulab Jamun

Dahi/Yoghurt

Dairy WhitenerChass

Parag Milk Foods

Bread Spreads

MilkChees

e

UHT Milk

Beverage

Range

AMUL Pro

Ice-Crea

m

Paneer

Dahi

Ghee

Milk Powders nutramul

Mithai Range

Mithai Mate

Chocolates

Fresh Cream

Pouch Butter Milk

AMUL

Milk Products-

FreshMilk

Milk Products-Long Shelf Life

Ice-Cream

Beverages

Heritage Foods

Flavored Milk

Ghee

Basundi Butter

Sweets

Paneer

Tirumala Milk Products

Milk powder Curd Butter

Milk

Lassi Junnu

Ice-Cream

Milk Tetra Pack

Problems faced

High Investment 250-300 Crores required to set up a

plant that can produce 5-6 lakh liters of milk per day

Inadequate Livestock population in India

1950-155 million 2010-199 million

Low margin on Liquid Milk Business A dairy player makes just about 4-5%

margin

Low yielding Indian cows The yield of Indian cows at 1600 kg per

annual lactation is close to negligible compared with the global average of 9000 per annual lactation.

Break-even after a long time Ex:Parag Milk Foods took 6-7 years to

break-even the business

Value-Added Products

Ghee

Paneer

Milk Powder

Ice-Cream

Yoghurt

Butter

Cheese

Case Study-Parag Milk Foods

Introduced in 2008More

consumption of cheese

Demand due to International Pizza

Chains entering India

• 48% market share in premium cheese segment

• Parag Milk Foods has decided to increase their cheese capacity to 100 million tonne.

Cheese Segment

Founded in 1973Founder-Varghese KurienMilk Man of India)Parent-GCMMF

GCMMF-An overview

Members-17 District Cooperatives Milk producers Union(16 Members+1(Nominal Member)No of Producer members-3.18 MillionNo of Village Societies-16914Total Milk handling capacity-16.8 Million litres/dayMilk Collection-12.7 Million liters(on an average-2012-13)Cattlefeed Manufacturing capaity-5890 mts/daySales Turnover-Rs.13735 Crores(2012-13)(US $2.54 Billion)

THE RETURN ON VALUE ADDED PRODUCTS(VAP) (AMUL CASE STUDY)

Offices across nation

Effects of VAP on Milk

• Atleast 30% of the Milk procured by 2018 will come from outside Gujarat

• AMUL sells 15 lakh units of Packaged Lassi & Butter Milk daily

• AMUL started sourcing Milk outside Gujarat from states such as Maharashtra Rajasthan,Uttar Pradesh,Madhya Pradesh,Haryana(Due to demand in VAP)

External Investors

Motilal Oswal PE -60 Cr (2008)

IDFC PE-155 Cr(2012)

IFC-27.9 Cr(2008)

Kotak Ventures-35 Cr(2008)

Premji Invest(2013)

BritanniaIndia

Agribusiness Fund-140 Cr(2013)

Hatsun Agro-65 Cr(2013)

Parag Milk Foods

Modern Dairies Heritage Foods

Fonterra Prabhat DairyJyothi Dairy

Tirumala Milk Products

Carlyle-119.4 Cr(2009)

Indocon Agro

Nestle(2013)

Neo Anurena TristarAmbit

Pragma(2012)

Karnataka Milk Federation Brand “Nandini”

 It is the second largest dairy co-operative amongst the dairy cooperatives in the country

KMF has 13 Milk Unions

Product Portfolio

Curds & other

fermented products

Milk Milk Powd

er

Ghee &

Butter

Ice-Cream & Frozen

Desserts

Milk Sweet

s

ChocolateUHT

Milk

Anup George RebelloAsst.Manager

The Catholic Syrian Bank Ltd