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OVERVIEW OF INDIAN DAIRY INDUSTRY

The highest milk producer in the entire globe ± India boasts of that

status. India is otherwise known as the µOyster¶ of the global dairy

industry, with opportunities galore to the entrepreneurs globally.

Anyone might want to capitalize on the largest and fastest growing

milk and mil products' market. The dairy industry in India has

 been witnessing rapid growth. The liberalized economy provides

more opportunities for MNCs and foreign investors to release the

full potential of this industry. The main aim of the Indian dairy

industry is only to better manage the national resources to enhancemilk  production and upgrade milk processing using innovative

technologies.

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OVERVIEW OF THE INDIAN DAIRY SECTOR 

CONTI«««

The country is the largest milk producer all over the world, around 100 million

MT

Value of output amounted to Rs. 1179 billion (in 2004-05) (Approximately

equals combined output of paddy and wheat!!) 1/5thof the world bovine population

Milch animals (45% indigenous cattle, 55 % buffaloes, and 10% cross bred

cows)

Immensely low productivity, around 1000 kg/year (world average 2038 kg/year)

Large no. of unproductive animals, low genetic potency, poor nutrition and lack of services are the main factors for the low productivity

There are different regions ± developed, average, below average (eastern states

of Orissa, Bihar and NE region) in the dairy industry.

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PRESENT THE FACTSHEET OF THE INDIAN DAIRY

INDUSTRY

Focus on new insights, analysis and ideas in milk production, processing and R & D

Serve as a business mart to buy and sell Indian dairy products, inputs and services,

including equipment

Provide a Directory of leading organizations and specialists in the industry Host Home pages of prominent dairy and related companies in public, cooperative and

 private sectors in India and abroad

Source consultancy services

Publish a Newsletter to provide an update on news and views about Indian dairying by

identifying new trends, market opportunities and investment prospects.

Also included will be articles, extracts from annual reports, statistical data and future

 projections

Project facilities for education, research and training in the country and

Provide links to other dairy web sites in India and abroad

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SWOT ANALYSIS

Weaknesses

Strong dependency on weak

infrastructure & completely dependent

on villages for its raw materials

Risks of highly complex supply chain system Short self life of its Product

Alliance with third parties who do not belong to the organized sector

Opportunities

Penetrate international markets Diversify product portfolio to enter new product categories and

expand existing categories like processed foods, chocolates etc.

Use internet to sell its products

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SWOT ANALYSIS

Threats

Competitors - Hindustan Lever, Nestle, Britannia and local players

Stiff competition from MNCs in butter

Growing price of milk and milk products

Ban on export of milk powder The yield of India cattle still much lower than other dairy countries.

Strengths

Largest food brand in India& AsiaHigh Quality, Low PriceIntroduced TQMWorld's Largest Pouched Milk BrandAnnual turnover of 4300 Crore(2006-07)Highly Diverse Product MixRobust Distribution Network

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POTENTIAL FOR INVESTMENT IN THE

DAIRY INDUSTRY

Some areas of Indian dairy industry can be toned up by the evocationof differentiated technologies and equipment from overseas. Theseinclude:Raw milk handling: The raw milk handling needs to beelevated in terms of physicochemical and microbiological properties

of the milk in a combined manner. The use of clarification andbactofugation in raw milk processing can aid better the quality of themilk products.

Milk processing : Better operational ratios are required to amendthe yields and abridge wastage, lessen fat/protein losses during processing, control production costs, save energy and broaden shelf 

life. The adoption of GMP (Good Manufacturing Practices) and HACCP(Hazard Analysis Critical Control Points) would help produce milkproducts adapting to the international standards.

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CONTI««

Packaging: Another area that can be improved is the range of packing machines for the manufacture of butter, cheese and alike.Better packaging can assist in retaining the nutritive value of products packed and thus broaden the shelf life. A cold chaindistribution system is required for proper storage and transfer of 

dairy products.

Value-added products: There's vast scope for value-addedproducts like desserts, puddings, custards, sauces, mousse, stirredyoghurt, nectars and sherbets to capture the dairy market in India.

The Indian dairy industry has aimed at better managment of the

national resources to enhance milk production and upgrade milkprocessing involving new innovative technologies. Multinational dairygiants can also make their foray in the Indian dairy market in thischallenging scenario and create a win-win situation for both

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CUSTOMER BASED MARKET

SEGMENTATION

For kids: dairy industry cool, Chocolate, MilkNutramul Energy Drink,dairy industry cool Milk

For women: dairy industry Calci +

For Youth : Utterly Delicious Pizza, dairy industry Cheese Spread,dairy industry Pizza Cheese

Calorie conscious: dairy industry Light, Sugar Skimmed

Milk Powder, dairy industry Light Slimand Trim Milk

Health conscious: Nutramul, dairy industry Shakti, September 20,2009 Health Food Drink

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INDUSTRY BASED MARKET

SEGMENTATION

Milk:

Ice-cream Manufacturers

Restaurant/Food Chains

Coffee shop chain

Butter/Cheese/Ghee

Bakery & Confectionaries

Pizza Retailers Snacks Retailers

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GOVERNMENT POLICIES FOR DAIRY

FARMING

Current dairy policies approved by the Agricultural Policy andPlanning Committee on 20th February, 1987 are as follows:

-To promote the expansion of raw milk production in order to

Reduce importation of dairy products,

- To increase the efficiency and quality of dairy farming, milk

Collection, milk processing and milk marketing,

- To strengthen dairy cooperatives as profit oriented

Organizations, - To encourage the private sector to be involved in dairy

Development, and

- To organize an independent Milk Board with representation from

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PRODUCT STRATEG Y OF DAIRY

INDUSTRY

Product Positioning StrategyProduct Re-Positioning Strategy

Product Overlap StrategyProduct Design StrategyProduct EliminationDiversification Strategy

Value Marketing Strategy

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WHAT MORE C AN DAIRY INDUSTRY

DO?

To improve further dairy industry can try out the following ideas:

I) dairy industry can venture out on new products like Toned milk,

Condensed milk that can be used for sweets, Baby food products,

II) There are certain product like dairy industry basundi, gulab jamoon, chocolates etc which are not as popular as dairy industry icecream.dairy industry must try to understand the cause of this throughthoroughmarket research and work on improving these products

III) Though A dairy industry hoardings are a huge success, it canpenetrate even better in the rural areas by advertising through themedia viz cable channels and newspapers. Sponsoring shows in TV,

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WHY DAIRY INDUSTRY

Personality: Simple, Indian

Self-Image : Proud Indian, Fun loving 

Reflection :value oriented

Relationship:sociable

Culture:cooperative,sharing 

Physique:taste,quality

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