Dairy industry in India. Data are to be updated. Good collection of literature.

1. 1

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
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. 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
 India’s 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
 India has the credit of being the largest producer as well
as the biggest consumer of milk in the world. It also has
the world’s 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.
 India’s 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 India’s 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
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 bird’s eye view to Indian Dairy (As per 2013)
Source- www.aavianmilk.com

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. REVOLUTION IN DAIRY INDUSTRY:
9
Operation flood:
 It started by India’s 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
 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.
 Today’s per capita consumption has been increased
up to 290g per day (2012-13)

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. 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. 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. Dairy Cow Breeds
14
Indian
Sahiwal
Devni
Giri

15. Exotic Breeds
Jersy
Holstein
freision
Karan
swiss
15

16. Buffalo Breeds
16
Murrah
Bhadawa
ri
Mehshan
a

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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
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
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. 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. 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
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. 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. 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
Fig. no.-4

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. 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. 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

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. 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. 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. 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. 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. 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

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
• 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. White Revolution. (1966)
Verghese Kurien’s 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

51. “Liberate our farmers from
economic oppression and
lead them to prosperity.”
51
Vision

52. Mission2020 :- dairy co
operatives of Gujarat turnover
of Rs.27000 crores by the year
2020.
52
Mission

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. 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
AMUL
•ANNUAL
BUSINESS

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. Marketing
channels
Marketing channels
57

58. 58
Fig. No.-5

59. AMUL PRODUCTS:
59

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
 Pure Ghee
a) Amul Pure Ghee
b) Sagar Pure Ghee
c) Amul Cow Ghee

62. 62
 Chocolate & confectionery
a) Amul Milk Chocolate
b) Amul Fruit & Nut Chocolate
c) Amul Bindass
d) Amul Rejoice

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. Milk Powders
a) Amul Full Cream Milk Powder
b) Amulya Dairy Whitener
c) Sagar Skimmed Milk Powder
64

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. 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. Health Conscious
Kids Women
Youth Calorie Conscious67

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

69. Women
Amul Calci
69

70. Youth
I. UtterlyDelicious
Pizza
II. Amul Emmental
Cheese
III.Amul Cheese
Spreads
70

71. Health Conscious
I. Nutramul
II.Amul Shakti Health
Food Drink
71

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

73. SWOT Analysis
73

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

77. 77
Chocolates & Confectionaries
 Cadbury
 Nestle
Pizza
 Pizza Hut
 Dominos
 Nirula’s Frozen pizza
Curd
 Nestle
 Mother Dairy
Ultra High Treated Milk
 Nestle
 Britannia

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Sweet Condensed milk
 Nestle
Cottage Cheese(Paneer)
 Britannia
Milk Additives
 Cadbury
 Smithkline Beecham
Flavored Milk
 Britannia
 Nestle

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. 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. 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. 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

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