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DAIRY INDUSTRY
IN INDIA
Dept. Of Agricultural Marketing, Co-operation and Business
Management,
University of Agricultural Sciences, GKVK, Bangalore-65

AGRICULTURAL BUSINESS MANAGEMENT (AMC-506)

Presented To,

Presented By,

Dr. G.N. Nagaraja,


Proffessor,
Dept. Of Ag. Ma. Co. & BM.

Rashmi Ranjan Moharana,


Jr. M.Sc. (Ag.) in Ag.Ma.Co.

PALB-4128

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

INDIAN DAIRY INDUSTRY


a profile
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.
4

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 standard
certificates from the authorities. This will help them in
marketing their products in foreign countries in
processed form.

INTRODUCTION:
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 2015.
6

Table No.-1

A birds eye view to Indian Dairy (As per 2013)

More than 10 million dairy


farmers belong to 96,000 local
dairy cooperatives, who sell
Size of the
their product to one of 170 milk
Industry
producers cooperative unions
who in turn are supported by 15
state cooperative
Geographi
cal
Delhi, Punjab, Mumbai, Gujarat,
distributio Surat, Lucknow, Bihar, Hyderabad
n
Output per
Growing 5 % per annum
annum
7
Source- www.aavianmilk.com
Market

History :
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.

REVOLUTION IN DAIRY INDUSTRY:

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.
9

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)
10

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.
11

Importance of Milk in human


diet:
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 blood
pressure and healthy body

Fig no.-1
12

Interesting Facts
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.

13

Dairy Cow Breeds


Indian

14

Exotic Breeds

15

Buffalo Breeds

16

Livestock population in India:

Table no.: 2

(in Millions)
Sl. No.

Year

CATTLE

BUFFALO

1951

155.3

43.4

1956

158.7

44.9

1961

175.6

51.2

1966

176.2

53.0

1972

178.3

57.4

1977

180.0

62.0

1982

192.5

69.8

1987

199.7

76.0

1992

204.6

84.2

10

1997

198.9

89.9

11

2003

185.2

97.9

12

2007

199.1

105.3

vestock Censuses, Dept. of Animal Husbandry, Dairying & Fisheries, Ministry of a


17

Product development:
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.
18

Indian (traditional) Milk Products:

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 manufactured at
home or in small cottage industries catering to local areas.
19

Major products exported from Indian


Dairy Industry (as per 2011)
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 Milk and


Milk Products: A Study, Tamilnadu Journal of Co-operatio
20

Table no.-3

Top 10 milk producers in World


( in 2012)

Sl.
No.

Rank

Country

Production (Metric tonnes)

United States

90,865,000

India

54,000,000

China

37,419,500

Brazil

32,304,421

Russia

31,576,047

Germany

30,506,929

France

23,983,196

New zealand

20,053,000

Turkey

15,977,837

10

10

United Kingdom

13,884,000

21

Source- www.wikipedia.in/indiandairy/

Table no.-4
Sl.
No.

Top 10 Milk producers in India


Dairy Industries

Production (000 litres


per day)

AMUL

2500

OMFED, Odisha

1950

AP Dairy Development Cooperative Federation Ltd.

1500

Haryana Dairy Development


Co-op. Fed. Ltd

1450

Dynamix Dairy Industries


Ltd., Maharastra

1000

Mother Dairy, Delhi

1000

Vasundhara Dairy, Nagpur

1000

Dudhsagar Dairy, Gujrat

950

Hatsun Agro, Chennai

800

10

Sterling Agro, New Delhi

800

22

Source-www.business.mapsofindia.com/food-industry/dairy

MILK PRODUCTION IN
INDIA

Table No.-5
Sl. No.

Year

Production (m
Tonnes)

Per Capita
Availability
(g/day)

1991-92

55.7

178

1992-93

58.0

182

1993-94

60.6

187

1994-95

63.8

194

1995-96

66.2

197

1996-97

69.1

202

1997-98

72.1

207

1998-99

75.4

213

1999-2000

78.3

217

10

2000-01

80.6

220

11

2001-02

84.4

225

2312

2002-03

86.2

230

Contd.

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 Agricult


24
www.nddb.org

Table No.-6

Annual Growth Rate(%)

Sl. No.

Year

Milk(AGR%)

1950-51 to 1960-61

1.64

1960-61 to 1973-74

1.15

1973-74 to 1980-81

4.51(white revolution)

1980-81 to 1990-91

5.48

1990-91 to 2000-01

4.11

2000-01 t0 2009-10

5.77

25

Source : www.nddb.com

Table No.:7

State-wise share of milk production


(in year 2009-10)

Sl.
No.

state

Cow milk (in


1000tonne)

Buffalo milk (in


1000tonne)

Andhra
Pradesh

2828

7601

Bihar

3097

2807

Gujrat

3327

5285

Haryana

925

5020

Karnataka

3263

1506

Rajasthan

2701

5840

Maharashtra

4042

3355

Uttar Pradesh

5142

13902

INDIA

47825

59201

26

Source : www.nddb.com

Fig No.-2

Key facts of Indian Dairy Industry

Per capita availability in grams


milk production in million tonnes
265
233

217

78

1999-00

93

2004-05

115

2009-10

Data Source- www.faostat.org.in/keyfacts_dairy


27

Table No.- 8..STATEWISE PERCAPITA CONSUMPTION IN 2011-12


Sl. STATE
CONSUMPTI
Sl.
STATE
CONSUMPTI
No
ON
No.
ON
.
1

ALL INDIA

290

12

MANIPUR

80

A.P.

391

13

MEGHALAYA

74

ARUNACHA
L PRADESH

44

14

MIZORAM

35

ASSAM

70

15

NAGALAND

108

BIHAR

175

16

ODISHA

112

GOA

113

17

GUJRAT

445

KARNATAKA

244

18

HARYANA

720

KERALA

223

19

H.P.

447

M.P.

308

20

J&K

352

10

MAHARAST
RA

206

21

A&N
ISLANDS

187

140

22

CHANDIGAR 117
H

11 W.B.
28

Contd..

29

Sl.
No.

STATE

CONSUMPTION

23

DADRA & NAGAR HAVELI

89

24

DAMAN & DIU

11

25

DELHI

82

26

LAKSHADWEEP

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

Industry structure:
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
30

Structure of Indian dairy industry


(in 2012)
Fig. no.-3

31

Table No.-9

DIFFERENT COMPANY PROFILES:

Sl.N Company
o
1
Nestle India Limited

Brands
Milkmaid,
Lactogen,
Everyday
Milkfood

Milkfood Limited

SmithKline
Limited

Beecham Horlicks,
Viva

Indodan
Limited

Industries Indana

Gujarat Co-operative Amul


milk
Marketing
Federation Limited

Major Products
Cerelac, Sweetened condensed milk,
Milo, malted foods, milk powder and
Dairy whitener
Ghee, ice cream, and other
milk products
Maltova, Malted Milkfood, ghee, butter,
powdered milk, milk fluid and
other milk based baby foods.
Condensed milk, skimmed
milk powder, whole milk
powder, dairy milk whitener,
chilled and processed milk
Butter, cheese and other milk
products

6
32

H.J. Heinz Limited

Farex,
Complan, Infant
Glactose,
Milkfood
Bonniemix, Vitamilk

Milkfood,

malted

Dairy industries in Karnataka:


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

Vintage Foods & Industries Ltd


Vitamilk India

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
33

Trishna Dairy

Emerging Dairy Markets


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 readyto-serve dairy products which would ride
piggyback on the fast food revolution sweeping
the urban India.
34

Fig.
no.-4

35

Export Potential:

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 number of
Indians scattered all over the world
36

Research and development works in


Indian context of Dairy sectors:
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
37
Tenth Fiver Year Plan to bring about structural

Review of existing Government


initiatives:
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
38

WOT ANALYSIS OF DAIR


INDUSTRY

39

STRENGTH

40

Demandprofile:Absolutely optimistic.
Margins:Quite reasonable, even on packed liquid
milk.
Flexibilityofproduct mixture : Tremendous. With
balancing equipment, you can keep on adding to your
product line.
Availabilityof raw material:Abundant. Presently,
more than 80 per cent of milk produced is flowing into
the unorganized sector, which requires proper
channelization.
Technicalmanpower:Professionally-trained,
technical human resource pool, built over last 30 years.

WEAKNESSES

41

Perishability:Pasteurization has overcome this


weaknesspartially.
Lackof control over yield:Theoretically, there is
little control over milk yield.
Logisticsof procurement:Woes of bad roads
andinadequate transportation facility make milk
procurement problematic.
Problematicdistribution:lack of proper milk and
milk product distribution channel.
Competition:With so many newcomers entering
this industry, competition is becoming tougher day
by day.

OPPORTUNITIES

42

Valueaddition:There is a phenomenal scope for


innovations in product development, packaging and
presentation.
Steps should be taken to introduce value-added
products likeshrikhand, 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 upopportunities in milk proteins
through casein, caseinates and other dietary proteins,
further opening upexport opportunies.
Exportpotential:Amul is exporting to Bangladesh, Sri
Lanka, Nigeria, and the Middle East

THREATS
Milk vendors, the unorganizedsector:Today milk vendors are
occupying the pride of place in the
industry.Organized dissemination of
information about the harm that they are
doingto producers and consumers should see
a steady decline in their importance.

43

Challenges faced :
Challenge at the small holder level

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

44

Challenges at processing level


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
45

Lack of transparent milking pricing system

46

AMUL: An Introduction
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.

47

Dr.Verghese Kurien who is also wellknown 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.

48

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

d's
l
r
o
W
st
e
g
r
a
L
ed
h
c
u
Po
nd
a
r
B
Milk

t
s
e
g
g
i
's B
d
l
r
o
W
an
i
r
a
t
e
Veg
d
n
a
r
B
e
Chees
50

Vision
Liberate our farmers
from economic
oppression and lead
them to prosperity.

51

Mission
Mission2020 :- dairy co
operatives of Gujarat
turnover of Rs.27000
crores by the year 2020.

52

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 .
53

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
54

Milk Drying capacity: 594Mts. Per day.

55

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

Fig. No.- 4

56

32%
:
R
AG

Source- www. timesofindia.indiatimes.com/

57

Fig. No.-5

58

AMUL PRODUCTS:

59

Types of Products

60

Bread spreads
a) Amul Butter
b) Amul Lite Low Fat Bread spread
c) Amul Cooking Butter
d) Delicious Margarine

Pure Ghee

a) Amul Pure Ghee


b) Sagar Pure Ghee
c) Amul Cow Ghee

61

62

Chocolate & confectionery


a) Amul Milk Chocolate
b) Amul Fruit & Nut Chocolate
c) Amul Bindass
d) Amul Rejoice

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

Milk Powders
a) Amul Full Cream Milk Powder
b) Amulya Dairy Whitener
c) Sagar Skimmed Milk Powder

64

Amul Product Portfolio in Graph


90%

Market Share (in 2011)

80%

Market share

Fig. No.-6

70%
60%
50%
40%
30%
20%

Market Share

10%
0%
Chocolate Drink

Cheese

Milk Powder

chocolate
Products

65

Source- www.business-standard.com/

Amul "Utterly
Delicious" Parlours
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 run by the company or its
66 wholesale dealers.

Women

Kids

Customer Based
Market
Segmentation
67

Youth

Calorie Conscious

Health Conscious

Kids

I. Amul Kool
II. Chocolate Milk
III.Nutramul Energy Drink
IV. Amul Kool
V.
68

Millk Shaake

Women

Amul Calci

69

Youth
I. UtterlyDelicious
Pizza
II. Amul Emmental
Cheese
III.Amul Cheese
Spreads

70

Health Conscious

I. Nutramul
II.Amul Shakti Health
Food Drink

71

Calorie Conscious

I.Amul Lite
II.Sagar Skimmed
Milk Powder
III.Amul Lite Slim
and Trim Milk
72

SWOT Analysis

73

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

OPPURTUNITIES
Penetrate international
markets
Use internet to sell its
products
Diversify product
portfolio to enter new
product categories
74

WEAKNESSES
Strong dependency on
weak infrastructure
Risks of highly complex
supply chain
Short self life of its
product
Alliance with third
parties

THREATS
Competitors
Competition from MNCs
in butter
Ban on export of milk
powder
Growing price of milk

CRITICAL SUCCESS FACTORS

1)
2)
3)
4)
5)
6)
7)
8)
75

Supply Chain
Developing demand
Introducing high value products
Distribution network
Coordination
Small group activities
Just-in-Time
Kiosks

AMULs Competitors

76

Butter
Britannia
Nestle
Cheese
Britannia
Baby Food
Nestle
Heinz
Dairy Whitener Segment
Nestle
Britannia
Ice creams
HLL

Chocolates & Confectionaries


Cadbury
Nestle
Pizza
Pizza Hut
Dominos
Nirulas Frozen pizza
Curd
Nestle
Mother Dairy
Ultra High Treated Milk
Nestle
Britannia
77

Sweet Condensed milk


Nestle
Cottage Cheese(Paneer)
Britannia
Milk Additives
Cadbury
Smithkline Beecham
Flavored Milk
Britannia
Nestle
78

CONCLUSION:
Changing Dynamics in the Indian Dairy
Industry Self-sufficiency to Shortfall
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 180200 mn. tonnes
Indicators of imminent shortfall
Consumption of nonfat dry milk is forecast to surpass

79

Indian production in 2012, reflecting the small but


growing deficit
Butter consumption exceeded domestic production in
2010 and is forecast to do so again in 2011 and 2012.

Contd..
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

80

News regarding investments:

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

81

References:
business.mapsofindia.com
www.socialsciences-ejournal.org/4.6.Parames

hwara%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
82

K
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A
H
T

U
83

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