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GALÚ
MSc MANAGEMENT CONSULTANCY
Management Consulting Principles
Company Clinic | Team Number 5 | Oct 2018
AGENDA
Galu & The
Project Brief
Canadian Dairy
Market01
02
Milk Cooling &
Bulk Tanks
03
Potential
Partners &
Routes to Entry
04
Competitive
Landscape
05
GALÚ & THE PROJECT BRIEF
Design and manufacturing company that provides storage
solutions such as tanks for renewables. Galu specializes in
custom designs and products.
Founded
2013
Headquarters
Kildare, Ireland
CLIENT QUESTION
Product in Focus
Milk Cooling & Holding Tanks integrated with a
mobile app for monitoring and control for Dairies
“ We want to enter the
Canadian dairy market with
our new product. We believe
entering the market as an OEM
by partnering with an existing
manufacturer is a good idea!
What does your team think &
how should we go about it? “
Sources: GALU; LinkedIn
CANADIAN DAIRY MARKET | Overview
Sources: Canadian Dairy Information Centre
Number of Farms
with Milk Shipments
(as of 01 Aug)
Milk Production at Farms
(cumulative in million hectoliters
for Jan–Dec)
Average Herd
Size Per Farm
2017 10,951 89.84 86945,000
2013 12,234 78.19 79968,200
CHANGE, % (10.49) 14.90 8.86(2.40)
Number of
Dairy Cows
(as of 01 Jan)
2017 TOP 5
PROVINCES
(% share of milk production)
QUEBEC
(37%)
ONTARIO
(33%)
BRITISH
COLUMBIA
(8.8%)
ALBERTA
(8.5%)
MANITOBA
(4.2%)
CANADIAN DAIRY MARKET | PEST Analysis
Sources: Farm Credit Canada; Milk Business; Bloomberg; The Huffington Post
POLITICAL ECONOMIC SOCIAL TECHNOLOGY
High Risk Low Risk Low-Moderate Risk Low Risk
3.69%
Share of dairy market freed
for American producers
CLASS 7
Category restriction of
prices abolished
8-10%
Currently milk per person
is falling, however fluid
milk consumption is
expected to rise slowly
during 2015–24
34.2%
Expected growth in yogurt
consumption, 2015–24
Increase in farmland costs in
Quebec & Ontario in 2017
CAD 500 MM
Increase in the value of dairy
manufacturing shipments
150
Farms on average moving
to automatic milking
systems every year
– Gervais Bisson, expert
dairy production and
milking robots
MILK COOLING AND BULK TANKS | Overview
Sources: Canadian Dairy Information Centre; Norwell Dairy Systems
Key Regulations on Bulk Tanks
300
Seconds
Minimum time period
of controlled agitation
per every hour
0–4
°Celsius
Temperature range
within which milk should
be stored at in tanks
60
Minutes
Time in which any milk
should be cooled to 10°C
or less
120
Minutes
Time in which any
additional milk should be
cooled to 0–4°C
Almost all dairy farms in Canada
use the stainless vertical tanks
— Director of Customer Relations,
Norwell Dairy Systems
POTENTIAL PARTNERS & ROUTE TO ENTRY | The OEM Way
Sources: Canadian Dairy Information Centre; Company Websites (MSD, GreenOak, Milkomax, Mid Line, Equipment PFB and Pro-Line)
Research Methodologies Used
PHASE 1
Industry level research to identify
key trends and locate consolidated
lists/sources for manufacturers
PHASE 2
Geography (Canada) specific research
to generate a list of relevant players
manufacturing dairy equipment
PHASE 3
Targeted deep dive to create a
final list of relevant players for
potential partnership
(Michaels’s Stabling
Developments Inc.)
(GreenOak Dairy
Equipment)
(Milkomax)
Products: Goat & Cattle Milking Parlors; Cattle
Handling | Location: Ontario
Products: Goat & Cattle Milking Parlors; Herd
Management | Location: Ontario
Products: Milking Robot | Location: Quebec Products: Herd Stabling Equipment
Location: Ontario
(Pro-Line
Manufacturing Inc.)
(Mid Valley
Manufacturing)
Products: Cow Stall Equipment; Feeding and
Compost Equipment| Location: British Columbia
(Equipment PFB Inc.)
Products: Cow Stall Equipment
Location: Quebec
POTENTIAL PARTNERS & ROUTE TO ENTRY | Alternatives
Sources: Internal Analysis
1 2 3
Partnership with
Co-ops to gain
market access
Partner with distributors
and suppliers to
establish own brand
Partnership with
manufacturers in
USA
Partner with a dairy farmer co-
operatives to gain access to
manufacturing facilities and clients.
Can also use their events such as
expos for marketing
Dairy farmers majorly source their
equipment from suppliers and
distributors. Most suppliers have
nationwide networks and provide
industry leading equipment
Many small and medium
equipment manufacturers from
USA serve the Canadian market.
Location of manufacturers in close
proximity to Canada’s dairy
provinces is a big advantage
COMPETITIVE LANSCAPE | Player Analysis
Sources: Google Analytics; Google Trends; Internal Analysis; Company Websites (GALU, Boumatic, Mueller, DeLaval, and Qualtech)
# of Models 1 3 5 4 2
VolumeCapacity
ofSilos/Tanks
>12,000 Ltr.
12–30,000 Ltr.
30–50,000 Ltr.
BrandAwareness
Average # of
times company
name was
searched on
Google Canada
per month in
2018
20 260 90 480 880
Global Industry Leaders Canadian
COMPETITIVE LANSCAPE | Product Analysis
Sources: Mueller; Delaval; Galu
Cooling
Comparative
Aspects • Dimple plate transfer
• Double agitator
• Single agitator
• Temp-Plate technology
• Built-in cool start delay
• Agitator rotation speed
automatically adjusts based on
milk volume
• faster cooling system with twin
six cylinder compressor
Cleaning
Monitoring
• Customizable washing
programs
• Automated Cleaning
System
• Water level control
• Automated detergent
and acid dosing
• Water jet rotation with one
limited amount of water for
rinsing
• Remote control of tank
• Milk volume and quality
readings over time
• Mobile app for remote
monitoring
• No monitoring or data
features
• Start/Stop cooling
• SMS notifications
SUMMARY
Sources: Internal Analysis
 Canadian dairy market is strong in terms of production output and is expected to grow
 Political scenario is uncertain and volatile due to US-Canada negotiations
 Farms are moving towards cost efficient solutions for operating farmlands
 Dairy equipment is dominated by global leaders through a channel of well established and
big scale distributors and(or) suppliers
 Only a limited number of small manufacturers exist in the market
 The OEM approach to entering the market should be considered with caution
 Possible alternatives need to be explored further
THANK YOU
Prepared and Presented by –
Robert Sweeney
Himanshu Khatri
Jessica Murray
Alan O Gorman
Shubham Poddar
Honghao Li

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Company Clinic Presentation

  • 1. GALÚ MSc MANAGEMENT CONSULTANCY Management Consulting Principles Company Clinic | Team Number 5 | Oct 2018
  • 2. AGENDA Galu & The Project Brief Canadian Dairy Market01 02 Milk Cooling & Bulk Tanks 03 Potential Partners & Routes to Entry 04 Competitive Landscape 05
  • 3. GALÚ & THE PROJECT BRIEF Design and manufacturing company that provides storage solutions such as tanks for renewables. Galu specializes in custom designs and products. Founded 2013 Headquarters Kildare, Ireland CLIENT QUESTION Product in Focus Milk Cooling & Holding Tanks integrated with a mobile app for monitoring and control for Dairies “ We want to enter the Canadian dairy market with our new product. We believe entering the market as an OEM by partnering with an existing manufacturer is a good idea! What does your team think & how should we go about it? “ Sources: GALU; LinkedIn
  • 4. CANADIAN DAIRY MARKET | Overview Sources: Canadian Dairy Information Centre Number of Farms with Milk Shipments (as of 01 Aug) Milk Production at Farms (cumulative in million hectoliters for Jan–Dec) Average Herd Size Per Farm 2017 10,951 89.84 86945,000 2013 12,234 78.19 79968,200 CHANGE, % (10.49) 14.90 8.86(2.40) Number of Dairy Cows (as of 01 Jan) 2017 TOP 5 PROVINCES (% share of milk production) QUEBEC (37%) ONTARIO (33%) BRITISH COLUMBIA (8.8%) ALBERTA (8.5%) MANITOBA (4.2%)
  • 5. CANADIAN DAIRY MARKET | PEST Analysis Sources: Farm Credit Canada; Milk Business; Bloomberg; The Huffington Post POLITICAL ECONOMIC SOCIAL TECHNOLOGY High Risk Low Risk Low-Moderate Risk Low Risk 3.69% Share of dairy market freed for American producers CLASS 7 Category restriction of prices abolished 8-10% Currently milk per person is falling, however fluid milk consumption is expected to rise slowly during 2015–24 34.2% Expected growth in yogurt consumption, 2015–24 Increase in farmland costs in Quebec & Ontario in 2017 CAD 500 MM Increase in the value of dairy manufacturing shipments 150 Farms on average moving to automatic milking systems every year – Gervais Bisson, expert dairy production and milking robots
  • 6. MILK COOLING AND BULK TANKS | Overview Sources: Canadian Dairy Information Centre; Norwell Dairy Systems Key Regulations on Bulk Tanks 300 Seconds Minimum time period of controlled agitation per every hour 0–4 °Celsius Temperature range within which milk should be stored at in tanks 60 Minutes Time in which any milk should be cooled to 10°C or less 120 Minutes Time in which any additional milk should be cooled to 0–4°C Almost all dairy farms in Canada use the stainless vertical tanks — Director of Customer Relations, Norwell Dairy Systems
  • 7. POTENTIAL PARTNERS & ROUTE TO ENTRY | The OEM Way Sources: Canadian Dairy Information Centre; Company Websites (MSD, GreenOak, Milkomax, Mid Line, Equipment PFB and Pro-Line) Research Methodologies Used PHASE 1 Industry level research to identify key trends and locate consolidated lists/sources for manufacturers PHASE 2 Geography (Canada) specific research to generate a list of relevant players manufacturing dairy equipment PHASE 3 Targeted deep dive to create a final list of relevant players for potential partnership (Michaels’s Stabling Developments Inc.) (GreenOak Dairy Equipment) (Milkomax) Products: Goat & Cattle Milking Parlors; Cattle Handling | Location: Ontario Products: Goat & Cattle Milking Parlors; Herd Management | Location: Ontario Products: Milking Robot | Location: Quebec Products: Herd Stabling Equipment Location: Ontario (Pro-Line Manufacturing Inc.) (Mid Valley Manufacturing) Products: Cow Stall Equipment; Feeding and Compost Equipment| Location: British Columbia (Equipment PFB Inc.) Products: Cow Stall Equipment Location: Quebec
  • 8. POTENTIAL PARTNERS & ROUTE TO ENTRY | Alternatives Sources: Internal Analysis 1 2 3 Partnership with Co-ops to gain market access Partner with distributors and suppliers to establish own brand Partnership with manufacturers in USA Partner with a dairy farmer co- operatives to gain access to manufacturing facilities and clients. Can also use their events such as expos for marketing Dairy farmers majorly source their equipment from suppliers and distributors. Most suppliers have nationwide networks and provide industry leading equipment Many small and medium equipment manufacturers from USA serve the Canadian market. Location of manufacturers in close proximity to Canada’s dairy provinces is a big advantage
  • 9. COMPETITIVE LANSCAPE | Player Analysis Sources: Google Analytics; Google Trends; Internal Analysis; Company Websites (GALU, Boumatic, Mueller, DeLaval, and Qualtech) # of Models 1 3 5 4 2 VolumeCapacity ofSilos/Tanks >12,000 Ltr. 12–30,000 Ltr. 30–50,000 Ltr. BrandAwareness Average # of times company name was searched on Google Canada per month in 2018 20 260 90 480 880 Global Industry Leaders Canadian
  • 10. COMPETITIVE LANSCAPE | Product Analysis Sources: Mueller; Delaval; Galu Cooling Comparative Aspects • Dimple plate transfer • Double agitator • Single agitator • Temp-Plate technology • Built-in cool start delay • Agitator rotation speed automatically adjusts based on milk volume • faster cooling system with twin six cylinder compressor Cleaning Monitoring • Customizable washing programs • Automated Cleaning System • Water level control • Automated detergent and acid dosing • Water jet rotation with one limited amount of water for rinsing • Remote control of tank • Milk volume and quality readings over time • Mobile app for remote monitoring • No monitoring or data features • Start/Stop cooling • SMS notifications
  • 11. SUMMARY Sources: Internal Analysis  Canadian dairy market is strong in terms of production output and is expected to grow  Political scenario is uncertain and volatile due to US-Canada negotiations  Farms are moving towards cost efficient solutions for operating farmlands  Dairy equipment is dominated by global leaders through a channel of well established and big scale distributors and(or) suppliers  Only a limited number of small manufacturers exist in the market  The OEM approach to entering the market should be considered with caution  Possible alternatives need to be explored further
  • 12. THANK YOU Prepared and Presented by – Robert Sweeney Himanshu Khatri Jessica Murray Alan O Gorman Shubham Poddar Honghao Li

Editor's Notes

  1. http://aimis-simia-cdic-ccil.agr.gc.ca/rp/index-eng.cfm?report_format_type_code=31&action=gR&signature=CC445BF71DB0910A490DDBC221B6168B&pdctc=&r=220&pTpl=1&btnDownload=View http://aimis-simia-cdic-ccil.agr.gc.ca/rp/index-eng.cfm?report_format_type_code=31&action=gR&signature=A502039861FEE476AFFCD607FF1EA7E8&pdctc=&r=219&pTpl=1&btnDownload=View http://aimis-simia-cdic-ccil.agr.gc.ca/rp/index-eng.cfm?report_format_type_code=31&action=gR&signature=03259FF16162856FBC9D384C26CF77E7&pdctc=&r=219&pTpl=1&btnDownload=View
  2. https://www.fcc-fac.ca/content/dam/fcc/knowledge/ag-economist/outlook-dairy-2018-en.pdf https://www.fcc-fac.ca/content/dam/fcc/about-fcc/reports/fcc-ag-economics-the-canadian-dairy-sector.pdf https://www.milkbusiness.com/article/canadas-growing-milk-output-outpacing-demand https://www.bloomberg.com/news/articles/2018-10-01/new-nafta-will-spoil-canada-s-dairy-prospects-farmers-say https://www.huffingtonpost.ca/2018/05/04/yes-these-cows-actually-milk-themselves-automation-dairy-farming_a_23427523/
  3. http://www.dairyinfo.gc.ca/index_e.php?s1=dr-rl&s2=canada&s3=ndc-cnpl&s4=09-2013
  4. https://www.greenoakna.com/rapid-exit-milking-parlours/ http://www.sgate.ca/milking_parlor.php
  5. http://aimis-simia-cdic-ccil.agr.gc.ca/rp/index-eng.cfm?report_format_type_code=31&action=gR&signature=CC445BF71DB0910A490DDBC221B6168B&pdctc=&r=220&pTpl=1&btnDownload=View http://aimis-simia-cdic-ccil.agr.gc.ca/rp/index-eng.cfm?report_format_type_code=31&action=gR&signature=A502039861FEE476AFFCD607FF1EA7E8&pdctc=&r=219&pTpl=1&btnDownload=View http://aimis-simia-cdic-ccil.agr.gc.ca/rp/index-eng.cfm?report_format_type_code=31&action=gR&signature=03259FF16162856FBC9D384C26CF77E7&pdctc=&r=219&pTpl=1&btnDownload=View
  6. http://aimis-simia-cdic-ccil.agr.gc.ca/rp/index-eng.cfm?report_format_type_code=31&action=gR&signature=CC445BF71DB0910A490DDBC221B6168B&pdctc=&r=220&pTpl=1&btnDownload=View http://aimis-simia-cdic-ccil.agr.gc.ca/rp/index-eng.cfm?report_format_type_code=31&action=gR&signature=A502039861FEE476AFFCD607FF1EA7E8&pdctc=&r=219&pTpl=1&btnDownload=View http://aimis-simia-cdic-ccil.agr.gc.ca/rp/index-eng.cfm?report_format_type_code=31&action=gR&signature=03259FF16162856FBC9D384C26CF77E7&pdctc=&r=219&pTpl=1&btnDownload=View
  7. https://uk.paulmueller.com/mediadepot/79411b1bd322/EN-BulkmilksiloA309-2015.pdf https://uk.paulmueller.com/products/milk-cooling-tanks/new-mueller-milk-cooling-tanks/silo-tank https://www.delaval.com/globalassets/inriver-resources/document/brochure/silotank-dx3s.pdf
  8. https://uk.paulmueller.com/mediadepot/79411b1bd322/EN-BulkmilksiloA309-2015.pdf https://uk.paulmueller.com/products/milk-cooling-tanks/new-mueller-milk-cooling-tanks/silo-tank https://www.delaval.com/globalassets/inriver-resources/document/brochure/silotank-dx3s.pdf