Market Research report of Mother Dairy India - Company Overview, Supply Chain, Procurement, Technology Implemented, Future Plans and Key Challenges.

1. “Make the right business decisions, right away.”
Mother Dairy – Market Research

2. Mother Dairy – Company Overview
• Founded in 1974 and is a fully owned subsidiary of NDDB
• Operates 3 brands under the name Mother Dairy (Dairy Products), Safal (Frozen
Vegetables) and Dhara (Cooking Oils)
• 68% market share for the organized dairy sector in and around Delhi NCR with Amul at 8%,
Gopaljee at 4% and other players make up around 18%
• Major Markets include Delhi NCR, Bangalore, Uttar Pradesh, Haryana, Mumbai, Saurastra
and Andhra Pradesh
• Revenue Rs. 7850 Cr. for FY 2016-2017
• Safal has around 600 outlets across Delhi NCR

3. Mother Dairy - Revenue Breakup
65%
13%
12%
10%
Revenue Breakup
Milk Dairy Products Fruits and Vegetables Oil

4. Corporate Structuring
• Corporate office located in Noida
• Main Dairy processing plant is located in Patparganj, New Delhi
• Main F&V distribution centre in Mongolpuri, New Delhi
• Key Stakeholders
• S Nagarajan - MD and CEO
• Sandeep Ghosh – Business Head
• Annie Mathew – CIO
• Meghnad Mitra – Group CFO
• Mihir Mohanta – General Manager F&V Division

5. Procurement Process – Dairy

6. Distribution Process – Dairy

7. Supply Chain – F&V

8. Technology in use
• SAP ERP for on-premises purposes
• Ramco cloud based ERP for Manufacturing Resource Planning, Quality Module Spanning,
Material Tracking, Centralized approval of purchase order
• Distribution Management Software by Ubq for complete visibility of ground activities, selling
pattern and right intervals of ordering
• Sourcing and Procurement Platform by TCS
• Plant Automation Solution for complete visibility at production level
• Vehicle Tracking and Temperature Monitoring using IoT Sensors
• Mobile App that gives daily offers and coupons which can be redeemed at Mother Dairy and
Safal Outlets

9. Future Plans
BUSINESS
• Targeting Rs.10000 Cr. in revenues by FY 2018
• Expansion plans to Eastern and Western India
• Increasing product line for healthy foods and F&V. Recently Safal launched honey
• Plans to boost sales of high profit margin products like Ghee, Ice Cream, Yogurt etc.
• Expansion in shelf life of deep freeze vegetables
TECHNOLOGY
• Plans to leverage predictive analytics on the plant parameters to conduct pre-emptive
maintenance and prevent breakdowns
• Real-time mobile alerts and dashboards to factory managers for remote monitoring
• Plans to implement Salesforce

10. Key Challenges – Dairy
PROCUREMENT LEVEL
• Meeting seasonal spikes in demand and ability to measure the quality of procured milk at the
source
• Complex logic of payments to producers based on fat, solid non-fat (SNF) and quality of
milk received
PRODUCTION LEVEL
• Manual and time-consuming processes for milk standardization calculation, handling
production planning based on nonstandard raw material, addressing growing food concerns
from consumers
• FAT accounting and effective tracking of FAT loss in the production process

11. Key Challenges – F&V
• Meeting seasonal spikes in demand and predicting shelf life of fruits and vegetables
• Raw fruits and vegetables generally get damaged due to mishandling at the first mile
• Major problem is collecting from small farmers and there is a need to create nodal points
where individual farmers can collect small loads so as to consolidate into viable truck loads
• Instability in supply due to frequent variation in trucking rates.
• No predetermined schedule for transportation of goods. A favorable transport environment
will ensure a timed push of inventory into the city instead of random pull from traders
• Ensuring the quality of raw vegetables and fruits

12. References
• http://www.cio.in/cio-interview/mix-iot-mobility-and-big-data-will-transform-way-we-function
• http://cio.economictimes.indiatimes.com/news/internet-of-things/how-plant-automation-
drives-efficiency-at-mother-dairy/57533208
• https://www.tcs.com/tcs-strategic-sourcing-procurement-platform
• www.ramco.com/downloads/ECS-Mother-Dairy.pdf
• http://www.nccd.gov.in/PDF/Analysis_NDDB_veg_model.pdf
• http://cio.economictimes.indiatimes.com/news/case-studies/mother-dairy-deploys-distributor-
management-system-for-its-businesses/52185468

13. THANK YOU
B 23, Sushant Lok 1, Gurgaon 122002
Contact: +91-8527935198