Gives a complete picture on Dairy industry in India

1. An Analysis on
Dairy Industry

2. Introduction
• India has the credit of being the largest producer as well as the biggest consumer of
milk in the world.
• Also has the world’s largest dairy herd (comprised of cows and buffalos).
• India’s milk production accounts for 17% of total global output.
• In 2010-11, livestock generated output worth INR 2,075 billion which comprised
4% of the GDP and 26% of the agricultural GDP.
• In the past 20 years, milk production in India has doubled and has reached the
140.6 million tones a year in 2014 thus becoming India’s No.1 farm commodity.

3. Introduction (Contd.)
• 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.
• As per the latest statistics of National Dairy Development Board (NDDB), the dairy
cooperative network in the country includes 177 milk unions covering 346 districts
and over 1, 33,000 village-level societies with a total membership of nearly 14
million farmers.
Source: http://www.indianmirror.com/indian-industries/dairy.html

4. Milk Production in India
Year Production(million tones) Per capita availability(gms/day)
1991-92 55.7 178
2000-01 80.6 220
2004-05 92.5 233
2009-10 116.4 273
2010-11 121.8 281
2011-12 127.9 290
2012-13 132.4 NA
Source: http://www.nddb.com

5. Livestock Population in India by Species(in million)

7. Milk- product mix

10. Indian Dairy industry comprises of barely 12% of
Organized sector and the lions share is hold by the
Unorganized sector with 88%
Source: http://www.dairyuniverseindia.com/Marketdate.html

11. Indian Dairy
industry
(organized)
Private dairies
(national)
Private Dairies
(international)
Cooperative
societies
Government

12. Fluid milk 46%
Ghee 27.5%
Butter 6.5%
Curd 7.0%
Khoa (Partially dehydrated condensed milk) 6.5%
Milk powders including IMF 3.5%
Paneer & Chhana (cottage cheese) 2.0%
Others including cream, ice cream 1.0%

13. Amul
ADF Food
Nestle
Brittania
Kraft foods
Le Bon
Dynamix dairy industry ltd
Heritage foods
Hatson Agro Ltd
Mother Dairy food
Mahaan foods
Parag foods
Vadilal
VRS foods
Vidya Dairy

14. Exports
India's Export of Dairy products was 1,59,228.52 MT to the world for the worth of Rs.
3,318.53 crores during the year 2013-14.
Major Export Destinations (2013-14)
Bangladesh
Egypt
Arab Republic,
United Arab Emirates,
Algeria,
Yemen Republc and
Pakistan. Source: APEDA Website

19. Source: http://apeda.gov.in/apedawebsite/SubHead_Products/Dairy_Products.htm

20. Exports (contd.)
Source: APEDA Website
Major products being exported are:
Butter fresh
Butter Oil
Butter milk
Milk & Cream in Powder
Other fat
Ghee
Fresh Cheese
Milk for Babies
Skimmed milk powder
Whole milk

22. Milk production is growing at 3.3% while consumption is growing at 5% leaving a
gap between demand and supply.
In order to meet the rapid growing demand and to increase the milk production,
Union Govt has started a central scheme National Dairy Plan – Phase 1, for a period
of 2011-12 to 2016 – 17.
This scheme will be implemented with a total investment of about INR 2242 crore.
This scheme main objective is to help provide rural milk producers with greater
access to the organized milk –processing sector and thus to bridge the gap between
the demand and supply of milk in the country.
DEDS through NABARD to encourage the Unorganized sector for generating self
employment
Source: http//www.nddb.org

23. National Dairy Plan
Scientifically planned program to increase bovine productivity and milk production.
The other objectives are:
•Making the organized milk market accessible to rural milk producers
•Enhance breeding, feeding and milk procurement

24. National Dairy Plan (contd.)
This focuses mainly on:
• Production of high genetic merit bulls.
• Semen Production.
• Pilot model for Viable Doorstep A1 delivery service.
• Fodder development.
• ICT for MIS.
• Ration Balancing program.
• Village based milk procurement system.
• Learning and evaluation.

25. Technological advancements
• Indigenous breed development.
• Frozen semen production and A1 delivery.
• Information network for Animal productivity and Health.
• Green fodder production and enhancement.
• Animal vaccines and Diagnosis.
• Solid station fermentation technology.
• Product and process development and innovations.

27. Threat of New Entrants: MEDIUM
• New entrants are encouraged and assisted by various schemes by Government.
• Requires high capital investment and difficult to achieve economies of scale.
• Access to very complex and well established distribution channel.
• Customer Loyalty.

28. Bargaining Power of Buyers: HIGH
Presence of multiple competitors as well as local
Doodhwaalas.
Home delivery and freshness of local dairy products form
local Doodhwaalas make this more complex.

29. Bargaining Power of Suppliers: LOW
Mainly the suppliers are rural milk producers and thus their
bargaining power is low

30. Threat of substitutes: LOW
Although many substitutes in drinking arena when compared
with milk are available, the dairy industry enjoys high
profitability in case of other dairy products.

31. Rivalry among competitors: HIGH
Large number of competitors
Local Doodhwaalas

32. Thank You