Parag Milk Food LTD

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“Analysis of current market of dairy products in HORECA with special
reference to Parag and Amul”
PARAG MILK FOODS PVT LTD
Industry Internship Project Report
Submitted in Partial Fulfillment
For the award of
Post Graduate Diploma in Management
Submitted By: Chirag Beladiya
Roll No. (12- A)
Batch: 2015-17
Under the guidance of
Faculty Guide name: Industry Guide name:
Prof. Anumeha Mathur Razak Mansuri
Designation: Assistant Professor Designation: Sales Manager
Name of the Institute: Name of Company:
ST.Kabir Institute of Professional Studies Parag Milk Foods PVT LTD
Submitted To
St. Kabir Institute of Professional Studies, Ahmedabad June 2016

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St. Kabir Institute of Professional Studies
(Approved by AICTE, Government of India)
Nr. SAL Hospital, Ahmedabad
CERTIFICATE
This is to certify that the project report titled “Analysis of current market of dairy products in
HORECA with special reference to Parag and Amul” being submitted by Chirag Beladiya -A in
partial fulfillment of the requirement for the award of Post Graduate Diploma in Management, is
a record of bonafide work carried out by him under my guidance and supervision.
Date:
Place: Ahmedabad
Name of the faculty guide: Dr. Gurpreet Singh Arora
Prof.Anumeha Mathur Dean, SKIPS

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DECLARATION
I, Chirag Beladiya a student of PGDM of ST KABIR INSTITUTE OF PROFESSIONAL
STUDIES (SKIPS) hereby declare that the Project entitled “Analysis of current market of dairy
products in HORECA with special reference to Parag and Amul at PARAG FOODS PVT
LTD was carried out by me in the partial fulfillment of PGDM program.
I declare that the work submitted here is done by me and to the best of my knowledge; no
such work has been submitted by any other person for the award of this degree.
I also declare that all the information collected from primary and secondary sources had
been duly acknowledged in this project report.
Date: Chirag Beladiya
Place: 12 (Div-A)

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ACKNOWLEDGEMENT
I was placed at PARAG MILK FOOD for training purpose it has been a pleasure and
honor to work at such a great organization. I am highly thankful to the management of PARAG
FOODS PVT LTD and to all of them who have directly or indirectly helped me in this project.
I am highly thankful to my college St. Kabir Institute Of Professional Studies from
where I got an opportunity to acquire the training PARAG FOODS PVT LTD
My first word of gratitude is due to Mr. RAZAK MANSURI– Sales Manager,
PARAG FOODS PVT LTD, Ahmedabad, my corporate guide, for his kind help and support
and his valuable guidance throughout my project. I am thankful to him for providing me with
necessary insights and helping me out at every single step. I am also thankful to all the employees
of organization who given desirable guidance when it’s required
I would like to thanks my faculty guide Anumeha Mathur for providing best support
and guidance for project as well as also would like to thanks to her professors and friends for
providing me needed information and help during my project work.
Chirag Beladiya
PGDM (2015-17)
12(A)

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Table of content
PARTICULARS
PAGE
NO.
CHAPTER-1 INTRODUCTION 3
1.1 Introduction of the topic/study 4
1.2 Objectives of the study 5
1.3 Scope of the topic/study 6
1.4 Rationale of the study 7
CHAPTER: 2 OVERVIEW OF INDUSTRY AND COMPANY 8
2.1 Introduction to Industry 14
2.2 Introduction to the company (Analysis regarding company, customers &
competitors) 17
2.3 Organization structure 25
2.4 Product/services range 26
2.5 SWOT Analysis 38
2.6 Past performance of the company 41
CHAPTER-3 REVIEWS OF LITERATURE/ THEORETICAL
BACKGROUND 45
3.1 Theoretical framework 46

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3.2 Review of existing literature from International/ National journals,
conferences, books and reports which are related to the project. 47
CHAPTER-4 ResearchMethodology 53
4.1 Problem identification 54
4.2 Type of research 54
4.3 Sources of data 55
4.4 Data collection method 56
4.5 Sampling plan 56
4.6 Statistical tool (If applied) 56
CHAPTER: 5 DATA ANALYSIS & INTERPRETATION 57
CHAPTER: 6 FINDINGS & RECOMMENDATION 65
CONCLUSON 69
BIBLIOGRAPHY 70
REFERENCES 71

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CHAPTER-1
INTRODUCTION

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1.1Introduction of the topic/study:
“Analysis of current market of dairy products in HORECA with special
reference to Parag and Amul”
HO=Hotels
RE=Restaurants
CA=Caterers & Cafeteria
In leading competitive environment it is very important to know that where we stand and
what is our position in market and customer mind. After commencing its business at Surat,
the Company wanted to increase its market share against its competitors like amul.
Topic is related to analysis of current market share of dairy product in HORECA segment include
like Restaurant, Hotel, Cateress, and College canteens with specially reference with amul like to
conduct a customer survey to get knowledge about the customers perception, their loyalty towards
Parag and Amul, market position of PARAG and customers suggestion related to PARAG
products that helps to provide competitive advantage to the company against the competitors.

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1.2Objectives of the study:
• To know the consumer perception about the Parag products and know the positive and
negative aspects of organization
• To determine the appropriate delivery time of the Parag milk product
• To find satisfaction level of consumer with Parag products
• To know the factors which influence a customer to go for particular brand
• To know the comparative analysis of Parag with the other brands
• To know the strength, weakness, opportunities, and threats of Parag products
• To know the market of Parag product
• To study the response and behavior of the customer
• To know brand loyalty of Parag product

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1.3 Scope of the topic/study:
This specially studies on the analysis of current trends of the dairy product and comparative study
on the Parag and Amul to find out the which brand product create their reputation and the loyalty
towards the customer.
The main scope of the study was to put the theoretical aspect of the study into real lifework
experience.
The project will be learning of real market situation and how to deal with clients.
It provide information regarding company current position in the market
It will help us to know about our customer’s satisfaction level.

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1.4 Rationale of Study
To benefit the company by giving them a detailed understanding of HORECA segment by
collecting information about old and new customers of company in HORECA
To create more awareness of the functioning of the company and create its brand name in the
minds of the customers because the product Gowardhan, which is a product of the company, is
more famous in the minds of the people.
To promote the company’s new product in the competitive market.

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CHAPTER: 2
OVERVIEW OF INDUSTRY
AND COMPANY
INTRODUCTION TO
FMCG INDUSTRY

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India is the world’s largest producer of dairy products by volume and has the world’s largest dairy
herd with an annual output of 130 MT
• Country accounts for more than 13% of world’s total milk production and is also the
world’s largest consumer of dairy products
• Demand for milk is expected to increase at a compound annual growth rate or CAGR of
5% from 138 million tonnes in 2014 to 200 million tonnes in 2022
India’s FMCG sector is 4th largest Sector in the economy and contribute to around 3mln
employment opportunities.
FMCG SECTOR generally deals with FMCG products or fast moving consumer goods.
Intense competition between the organized and unorganized segments.
Availability of key raw materials, cheaper labour costs and presence across the entire value chain
gives India a competitive advantage.
Even during the slowdown of the economy, the FMCG sector has registered a growth rate of 14.5
per cent for the year 2007-08.
FMCG products have a quick turnover and relatively low cost.
FMCG Industry is characterized by a well-established distribution network, low penetration levels,
low operating cost, lower per capital consumption and intense competition between the organized
and unorganized segments.
The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the
country and over the years has been growing at a very steady pace. The sector consists

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of consumer non-durable products which broadly consists, personal care, household care
and food & beverages.
The Indian FMCG industry is largely classified as organized and unorgani ze d .
This sector is also buoyed by intense competition. Besides competition, this industry is
also marked by a robust distribution network coupled with increasing influx of MNCs
across the entire value chain. This sector continues to remain highly fragmented.

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Overview of Indian dairy
The world’s biggest dairy producing country is growing fast and looking to become an export
powerhouse despite major quality problems…
A note to our readers: the following information on India’s dairy sector is reproduced from india
Infiline.com. India is the world’s largest milk producing country and is growing fast, with an eye
toward becoming a major dairy exporter.
• Cow milk production 46.57 million tonnes
• % of worldwide milk production 17%
• Buffalo milk production 57.96 million tonnes
• No. of milk producing dairy cows 38.50 million
• Number of buffaloes 38.10 million
• The productivity of Indian cattle (944 kg/annum)
• The average size of herd in India is 2‐3 milch animals
• Dairy Cooperatives account for 60% share of processed liquid81 84 86 88 93 97 101 102
109 115 120Total Milk Production (MT) 2
• Dairy Cooperatives account for 60% share of processed liquid milk marketed in the India.
• About 16% of the world milk is produced in India
• Milk production is growing at 7% by volume and approximately10% by value
• Production level of milk is projected to increase to 190 million tones, worth’s 5 Lakh
Crore by the year 2015
• Accounts for 21% of agricultural production of India
• The market size for milk and milk products (formal +informal sector) is estimated INR
3.6 lakh crores.
• The organized market is growing at nearly 10 percent in value terms annually
• Traditional dairy products account for about 50% of the total milk produced
• The organized sector processes an estimated 20% of the total milk output in India

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• Milk is processed and marketed by 170 Milk Producers’ Cooperative Unions
• Dairy Sector Contributes 17% of the Country’s Total Expenditure on Food
• Per capita milk consumption is around 276 g per day
• Dairy contributes to 16% of consumer spend on food –18% in Urban, 15% in rural
• Milk procurement price has grown by about 2.5 times in the last decade

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Key national Private Player
Aarey milk Parag
Aravind foods Mahaan foods
Britannia Vadilal
Dynamix dairy Vidya Dairy
mother dairy Gowardhan
VRS Foods
International Players
(Existing)
International Players
(Upcoming)
Nestle Alra Foods
Danone Fonterra with Britannia
Haston Land O’Lakes, Inc
Kerry Group
Schreiber Food With Dynamix
Coke

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2.1 Company Profile:
Dr. Kurien ushered in ‘White Revolution’ in India with ‘Operation Flood’, the largest project for
dairy development in the world. As a direct result, India became self-sufficient and global leader
in milk production and dairy farmers the architects in their own development.
This revolution led to an increase in milk production many fold which led to the co-operatives
declaring milk holidays around Pune. This adversity was circumvented by Mr. Devendra Shah
(They Founder & Chairman) by helping farmers by collecting their milk on such milk holidays.
And thus was born Parag Milk Foods Ltd.
Gowardhan, founded by Parag Milk and Milk Products Pvt. Ltd in 1992, is one of India's largest
private dairies, with an output capacity of 12,00,000 liters per day.
Located in a lush green village called Manchar in Maharashtra (60 km from Pune), and also owns
the largest cow farm in India as they will as Asia's largest cheese plant.
They are an ISO 9000 and AGMARK certified company, committed to international standards
of product quality. Their product portfolio includes Skim Milk Powder, Whole Milk Powder,
Ghee, Processed Cheese, Butter, Dahi, Dairy Whitener and Gulab0020Jamun, Gowardhan Mix

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powder under the brand names of Gowardhan ,pride of cows ,top up & Go and all made from
100% fresh cow milk.
 Per day approx. 40 tons cheese produced by company.
 They have their own 35 acres farm and around 3000 Cows.
• Infrastructure
Company’s peerless success is greatly dependent upon the high tech manufacturing
plant spread over an area of about 50 acres. Companies make use of the technically
advanced equipment and machinery to carry out the varying process like
manufacturing, packaging, etc. They are also backed up by the separate R&D and
QC labs to deliver the exclusive range Dairy Products to the clients.
• Quality Assurance

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Company is a prominent name in the entire industry because of the quality of the
products & offer to the clients. A great care is taken to assure the best quality of
products for which they have established a separate and complete QC Lab. Their
experts carry out the task of quality checking in accordance with the set industrial
standards.
Name of owner: Mr. DevendraPrakash Shah

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2.2 Introduction to the company (analysis regarding Company,
Customers & Competitors):
 Analysis regarding Company- PARAG MILK FOODS is the company which
produces the dairy products and export in different cities. Its main products are
varieties of cheese and international quality of it.
 They also got chance to visited their plant which is very they will developed and
also all their work are done by machine only there they are no human touch so
that the hygiene will be maintained.
 Customers- Apart from selling its products to customers through retail outlets,
the company also serves hotels, restaurants, institutions, and caterers. The
company exports its products to the Middle East, South East Asian, and African
countries.
 Competitors
Major competitors

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2.3 Organization structure:
Mr. Devendra Shah [Owner]
Office
CEO
Vice President
All India Sales Manager
Zonal Sales Manager
Regional Sales Manager
Area Sales Manager
Assistance Sales Manager
Sales Office
Sales Executive
Sales Representative
Factory Manager
Plant Operator
Quality Controller
Dispatch Team
Logistic Department
Distribution Channel
Company Depot(C&F)
Super Stockiest
Distributer
Dealer
Retailer
Customer

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2.4 Product/services range:
There are 4 main Products
Product Portfolio of Parag
Cheese
They are renowned as the prominent Manufacturer, Exporter and Supplier of the best quality
Cheese. Over the years their Cheese is being demanded greatly by the buyers as it is natural and
available at economical prices. They offer a varying range of Cheese to the clients widely spread
across the globe.
Features
 Unique from customer
 Better quality
 Superb taste
 Pure Cow milk Products
 India’s largest cheese plant
GOWARTHAN GO PRIDE OF COWS TOPP UP
PARAG PRODUCTS

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Varieties
 Cheddar Cheese
 Mozzarella Cheese
 Pizza Cheese
 Processed Cheese
Available In
• Various packaging
Butter
They are a proud Manufacturer, Exporter and Supplier of the premium quality Butter. The demand
for their Butter has gradually increased over the years, because of its better quality and taste. They
offer a varying range of Butter at really affordable prices to the buyers.
Why choose th eir Butter?
 Pasteurized table butter and unsalted butter
 Made by modern continuous butter making machines
 Mild taste and firm consistency
 Store under refrigeration at 4o C
Availability
 Table butter : 100g, 500g & 20kg
 Unsalted butter : 500g & 20kg

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Ghee
They are a prominent Manufacturer, Exporter and Supplier of the preeminent quality Ghee. Their
top quality Ghee is made from the natural or pure clarified milk fat and it is available at very
economical prices. Their Ghee is highly appreciated amongst their clients, owing to its enormous
features.
Features Availability
 100% pure clarified milk fat
 Sweet aroma of pure ghee
 No added color
 Store at ambient temperature.
 Tin : 1 ltr, 5 ltr and 15 ltr
 Poly pack : 200ml and 1 ltr
 Jar : 200ml, 500ml, 1 ltr and 5ltr

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1. Gowardhan
Gowardhan is a brand that caters to the traditional Indian family, residing in both urban
and rural areas. The products under the Gowardhan brand are every-day dairy products,
ones that the consumers are highly familiar with which are Ghee, Milk, Paneer, Dahi, Curd,
Butter, Dairy Whitener and Gulab Jamun Mix. The promise of Cow’s milk, purity and taste
are the brand's core rationale. Through invoking a sense of festivity and association with
customs and tradition, the brand adds life to products.
A) Gowardhan Processed cheese

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Gowardhan processed cheese one of the well-known processors of Gowardhan Processed Cheese.
It is appreciated for its premium quality, excellent flavor and the ingredients used and includes
100% pure cow’s milk. The range is used for the preparation of food items and making salads.
Made from blends of Cheddar cheese of different ages.
High melting properties.
Store under refrigeration at 4 degree Celsius.
Available in: 200gm, 400gm & 1kg blocks
B) Gowardhan Butter
Pasteurized table butter & unsalted butter, made by modern continuous butter making machine.
100% natural, no added colors. Low in salt content, mild taste & firm consistency.
Available in: table butter- 100gm, 500gm & 2kg.
Gowardhan Ghee

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Gowardhan Ghee is the flagship product of Parag Milk Foods Pvt. Ltd. Made from pure cow's
milk, it’s a trusted brand name in the common households. Yellow in colour, rich in aroma
gowardhan ghee signifies purity & goodness of cow's milk.
No added colour & sweet aroma of pure ghee.
Available in: Poly Pack 200ml, 500ml, 1ltr
BB- 100ml, 200ml, 500ml, 1ltr
Tin- 5ltr & 15kg
D) Gowardhan Paneer
Paneer offered by us is produced by curdling the milk with rennet. It is hygienically prepared and
is high in quality & rich in taste. The Paneer offered by us undergoes strict quality tests to ensure
the high nutrition value.
E) Gowardhan Fresh N Thick Dahi

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 Made from pasteurized toned milk
 Contains 3% fat
 Thick and natural taste
 0% cholesterol
 Store under refrigerator at 4oC
 Available in : 80g , 200g & 400g
F) Gowardhan Go Fruit &DhaiFushionDahi
 Made from pasteurized toned milk and active calcium
 Contains 2.7% fat
 Contains 10 % fruit
 Rich and natural taste
 Store under refrigerator at 4oC
 Comes in 6 flavors: strawberry, mango, banana, pineapple, mixed berry and lychee.
 Available in :125

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2. GO
'Go' is derived from Gowardhan and has a dual meaning- apart from resonating with the Sanskrit
word for “Cow”, the brand embodies an energetic spirit with the act of going synergizing well with
the attitude and beliefs of the young generation of today. It caters to families that are modernized
and westernized and who lead both busy and active lifestyles. Go consumers include young
working couples, well-travelled urban centric families with active children.
A) Go Mozzarella Cheese
Avail form us the Gowardhan Mozzarella Cheese. It is made out of traditionally by
the pasta filata process, which gives its soft and smooth stringy texture after it is
baked, making it ideal for pizza and lasagnas.

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Available in: Shredded, diced, Block form
Blocks: 200gm, 1kg, 2kg
B) Go Cheddar Cheese
Traditionally aged over 3 months, already shredded for ease of use, Available in: 2kg
Shredded
C)Go Slice
They range of Cheese Slices-With UHT is considered to be one of the best ways to
incorporate calcium in our diet. Processed using UTH technology and the rest of the process
takes place in a closed sterile system, so as to avoid any contamination and increasing
shelf-life. All through the process they make sure that the taste is maintained.
Store under refrigeration at 4 degree Celsius.
Available in: 100gm, 200gm, 476gm, 750gm, & 900gm.

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D) Go spread cheese
Flavors: Plain, Garlic, Jalapeno, Olives & herbs, Smoked
Paprika, Four pepper.
Available in: 200gm Cups & bottle
E) Go pizza cheese
It is appreciated for its fast melting capability and stringy texture. Go clients can use it for
the preparation of delicious pizzas at home in a hassle free manner.
Blend of Mozzarella and Cheddar Cheese, High melting point, Available in: 200gm & 1kg
F) Go cheese nacho
Made from blends of Cheddar.
Ready & easy to use.
Store under refrigeration at 4 degree celsius.
Available in: 180gm & 500gm
Won Asia star packaging award for best packaging.

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G)Go fresh cream
Go Cream made from cow's milk. Available in 1ltr &
200ml packs
H)Go butter milk

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3) Topp up
Topp Up is a flavoured milk with extra proteins. The protein gives you extra energy &
strength whenever & wherever you need it. This is made from Fresh cow’s milk. Topp up
is available in six distinct Indian flavours i.e. Elaichi, Mango, Rose, Strawberry, Pista &
Butterscotch. It has long shelf life at room temperature.
4) Pride of cow
Pride of Cows, a brand of Parag Milk Foods, is a first-of-its-kind, superior farm-to-home
milk, from India’s most modern dairy farm, with a production capacity of 25,000 liters a
day The Pride of Cows brand is a reflection of our passion for milk. Milk captures the
imagination, sparks interest and ideas, adds colour and flavour, and makes us feel fulfilled
and happy. We believe in the significant part played by milk, strengthening and protecting
the body and mind to live a fuller, more complete life each day. We know that cow’s milk
at its best represents the pinnacle of nutrition and health!

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2.5 SWOT Analysis
Strength
• 57% of sales from value added product
• Asia’s first largest vertical dairy
• Proper and adequate infrastructure
• Low FAT
• Maximum shelf life
• Better quality and Taste rather than other
• 4 brands like Gowardhan, Go Pride of Cow and Topp Up With Distinct
Positioning
• 32% share in high growth modern trade and general trade
• Strong presence in high growth modern trade and general trade
• Usage of 100% cow’s milk
• 70% increase in processing capacity post expansion

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Weakness
• No proper distribution network.
• High working capital intensity at 24%of sales, lack of free cash flows
• Limited pricing power in highly competitive fresh products
• Ineffective supply Chain
• Different offering for GT/MT and Institution
• Interruption between GT/MT and Institution
Opportunity
• More production to supply more
• 24 hour milk supply
• Large market capture, Huge possibility
• Rising demand for value added milk product
• GOVT incentive for organized player in the dairy sector like VAT and tax
benefits
• Rising consumer focus on health and hygiene of milk and milk products
• Strong presence in high growth modern trade

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Threats
• Competitor provides a time to time attractive scheme.
• Large number of competitors
• Same range of product in lower price
• Switch over of old customer
• Aggressive pricing by existing dairy co-operative like amul and Mother
Dairy
• Focus on value addition by small dairies
• Challenges in procurement fresh milk
• Decline in global and domestic prices of SMP
• Availability of electricity for storage and retailing of fresh dairy products
• Potential increase in competition from global and domestic players

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2.6 Pastperformance of the company
Financials of PMF
PMF’s revenue, EBITDA and PAT has grown 21.6%, 20.8% and 24.8% CAGR over the
last 3-4 years.
For 9 months of FY16 the EPS stands at Rs 3.78, whereas it was Rs 3.49in FY15. Thus the
projected EPS for FY16 at Rs 5.04 is up by 44.4% over FY15, thus signaling good growth.
Note FY16P data is a simple extrapolation of data available for the first three quarters of
FY16.
The operating margin has increased from 5.3% (2011) to 10.1 %( 2015) and 11.77% (9m
FY16). The profit margin also rose from 0.10 %( 2011) to 2.04 %( 2015) and 2.59% (9m
FY16). The margins are likely to improve due to falling interest rates and debt repayment.
PMF has been able to generate Free Cash Flow in 2015 and 2016. The FY16 projected
cash flows do not seem to be promising.

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Past performance of the company and current performance is bullish trend
Source: Money control
Benchmarking
• They benchmark the Parag Milk Foods financials against dairy peers, and foods
companies.
• The PE and P/B of PMF appears to be in line with the peers. The firm has not left
enough on the table for investors. See Exhibit 9.
• Growth rates are again average, neither poor nor high. The IPO will lower debt
levels here.
• Margins are low, but in line with dairy sector peers.
• Overall we feel that there is ample room to grow in this sector, and an acceleration
in revenues over the years can allow PMF to ramp up margins and ROE

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Parag milk food makes a range of branded milk and dairy products.
PMF had revenues and profits of Rs 1442 cr. and Rs 29.47 cr. in FY15.PMF’s revenue,
EBITDA and PAT has grown 21.6%, 20.8% and 24.8% CAGR over the last 3-4 years.
Source: India note
Few Key observations are:
 At bottom-line, the company has been has posted growth@ CAGR of around 90 per
cent from FY12 to FY15 and has posted PAT of Rs 26 crore in FY15 and Rs 31.9
crore in the first nine months of FY16.
 Operating margin for the company has remained stagnant at 7.5% for over 5 years
 Total debt (long term and short term) is around Rs 365 crore, however over Rs 100
crore will be paid by the net proceeds after the IPO.
 The valuation of the company is around Rs 1,900 crore, around 1.2 times the
annualized revenue of the company which is fair when compared to peers like
Hatsun Agro whose market cap is over 1.5 times its revenues

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 Cash flow from operation has posted an unmatched growth@ CAGR of around 80
per cent from FY12 to FY15.
 Shareholder’s wealth more than doubled in a period of 4 years.
Few key observations from this table are:
 Operating Profit margin of the company is second highest and PAT margin is highest
among the peers, which means the company can post higher profits if it scales up its
operation, contributing to shareholder’s wealth
 PE ratio is around 44.6 times on post issue as we annualized 9MFY16 earnings
whereas Prabhat Dairy is currently trading at P/E of 46.6x on TTM basis with EPS
of Rs 2.4.
 M-Cap to sales around ratio is around 1.2 which is second highest among the peers.
Source: The Money Roller

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CHAPTER: 3
REVIEWS OF LITERATURE/
THEORETICAL
BACKGROUND
THEORETICAL FRAMEWORK

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3.1 Theoretical framework
Parag Milk Foods Pvt. Ltd. is manufacturer of dairy products and they have Asia’s largest cheese
plant. Company’s head office is in Mumbai, Maharashtra. They have two plants one in Manchar
in Western Maharashtra and another plant at Palamner in Southern Andhra Pradesh.
The project was given by company only and they want to conduct survey in different cities of India
to generate lead about their products and also knowing about how much they have market share.
In project HORECA my project title is “Analysis of current market of dairy products
in HORECA with special reference to Parag and Amul”. To prepare this report I
visited various hotels and restaurants in Surat and collected data from them. I have analyzed that
at different location of Surat the client have different preferences or taste.
I also found out what the major problems of the company are and why they were not so good in
Surat. And by conducting this survey company also get few big Restaurants and Hotels in their
list.

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3.2 Review of the existing literature from international/ national journals,
conferences, books, and reports which are related to the project
Sharma M.L.et al, (2007) analysed the inefficiencies existing in improving milk production,
procurement pattern, marketing channels, and price spread of a dairy cooperative, Uttaranchal
Cooperative Dairy Federation Ltd (UCDFL), also known as ‘Anchal’ in the Kumaun region of
Uttarakhand and has proposed a model for eliminating these inefficiencies. It has been found that
UCDFL is focused mainly on liquid milk marketing and has not adopted product diversification,
which is the need of the day. It has been found that due to insufficient margins, the number of
agents working for other private dairies has increased. Different marketing channels for milk have
been identified and price spread has been calculated for all the channels.
Nargunde A. Satish (2013) highlighted the role of dairy industry in uplifting the weaker sections
of the society viz. small landholders, landless labourers and women. It is estimated that up to 60-
65 percent of the income of this group (marginal and small-scale farmers) now comes from
dairying. Studies have shown that dairying in rural areas surpassed crop production in terms of
profit in marginal, small and mediumsized holdings. For small-scale farmers with irrigated land,
dairying and crop production together, were more profitable than crop farming alone. Over the
period, dairying has also acquired the contours of a fully-fledged industry in the country and has
positively improved the life of those engaged in this business, directly or indirectly, bringing
significant socio-economic changes.
Dakurah A. Henry (2005) studied the attitude towards, and satisfaction of residents of Alberta to
their cooperatives. Results of the analysis also show a population that has a general positive attitude
towards and is satisfied with their cooperatives as is reflected in assessing the performance of their

P a g e 45 | 68
cooperatives as good. Further analysis using the theory of planned IBWL 2020: Needs &
Strategies- a Management Perspective behavior show that respondents’ attitude towards their
cooperatives is the single most important and significant predictor of their patronization behavior.
Rathod Prakashkumar et al (2012) conducted in Western Maharashtra region to know the
perception of farmers towards livestock marketing services delivered by dairy cooperatives with
regards to timely availability, amount paid and satisfaction level of the farmers towards the
services. The farmers perceived that they were benefited by marketing services of the dairy
cooperative to a great extent with regards to credit facilities, getting more income and access to
market facilities. The study concluded that Gokul Dairy Cooperative provided various livestock
marketing services for the farmers mostly on time at free or nominal rates. There is an urgent need
to improve upon the quality of marketing services so that farmers would be more content and
satisfied with the services of dairy cooperatives.
Ashok, D. (2012) throws light on the usage pattern and the reasons behind low sensitivity of
packaged dairy products. It reveals information concerning consumers' preferences and knowledge
of processing organic/dairy products. It also identifies those consumers who are most likely to get
processed organic/dairy products.
Ramanjaneyalu. N (2012) studied consumers’ behaviour and dealers’ perception towards
Nandini brand in compare with other competitors’ brands. To excel in the highly competitive
business the company needs to evolve their production, marketing and pricing strategies
effectively. For doing this a clear perception about consumer preference with regard to product
and service quality and price is of utmost importance.

P a g e 46 | 68
Sharma. M.L., Raka Saxena, and Dipan Das (2007) of their opinion that India is the leading
milk producer in the world and the dairy cooperatives are the backbone of Indian dairy industry.
This study has analyzed the inefficiencies existing in improving milk production, procurement
pattern, marketing channels, and price spread of a dairy cooperative, Uttaranchal Cooperative
Dairy Federation Ltd (UCDFL), also known as the Kumaun region of Uttarakhand and has
proposed a model for eliminating these inefficiencies. It has been found that UCDFL is focused
mainly on liquid milk marketing and has not adopted product diversification, which is the need of
the day. Nainital and Almora districts of Kumaon region have been selected for the study; these
cover almost 40 per cent of cattle population in the division, except Udham Singh Nagar. It has
been found that due to insufficient margins, the number of agents working for other private dairies
has increased. Different marketing channels for milk have been identified and price spread has
been calculated for all the channels. Lack of business development services related to dairy
industry has been found leading the farmers to disassociate from Anchal. The study has suggested
that Anchal should evolve a definite policy with regard to procurement of milk in both lean and
regular periods and to sustain its members, incentive package should be provided. Anchal should
find ways to establish fodder banks at strategic locations for providing fodder during emergencies
and periods of fodder scarcity. Local sale of milk at the society level should be encouraged to
increase the popularity of Anchal brand.
University of British Columbia, Vancouver, British Columbia, Canada V6T 1Z4
To assess the possible impact of increased intakes of dairy products or calcium on body weight or
composition, a MEDLINE search was conducted to identify randomized trials of supplementation

P a g e 47 | 68
with calcium or dairy products. Nine studies of dairy product supplementation were located: In
seven, no significant differences in the change in body weight or composition were detected
between treatment and control groups. However, two studies conducted in older adults observed
significantly greater weight gain in the dairy product groups. The interpretation of these findings
is complicated by the inability to accurately determine the extent of dietary compensation for the
increment in energy intake provided by the added dairy products. This is not an issue in the
interpretation of studies of calcium supplementation, of which 17 were identified. Only one study
found greater weight loss in the supplemented group; in the remaining studies, changes in body
weight and/or body fat were strikingly similar between groups. In conclusion, the data available
from randomized trials of dairy product or calcium supplementation provide little support for an
effect in reducing body weight or fat mass. However, the studies reviewed were not specifically
designed or powered to address this issue; such studies are required.
G. G. Pandit, S. Sharma, P. K. Srivastava & S. K. Sahu
Published online: 10 Nov 2010
Monitoring of milk and dairy product samples of various brands from different cities in
Maharashtra, India, was carried out to determine if there is any contamination due to
organochlorine pesticide residues. The measurements were made using a gas chromatograph-
electron capture detector system. Trace levels of DDT and HCH were detected in the samples.
Total HCH levels in milk and milk product samples were lower than total DDT levels, which
could be attributed to earlier extensive antimalaria sanitary activities. Butter had higher levels of
DDT than cheese and milk powder. All levels of organochlorine pesticide residues in milk and
milk products were well below the maximum permissible limits given by the FAO/WHO. More

P a g e 48 | 68
importantly, as compared with an earlier report, present levels of the contaminants are
substantially lower, which indicate the gradual phase out of these compounds.
Rangasamy. N. and Dhaka. J.P. (2008) analysed the marketing of milk and milk products by
dairy plants of co-operative and private sectors in Tamil Nadu and compared. The study is based
on the data collected for toned milk, standardized milk, full cream milk, flavoured milk, butter and
ghee from the selected co-operative and private dairy plants of the Coimbatore district for the
financial year 2001-2002. It has been found that the marketing cost for toned milk is the same in
both the dairy plants, whereas it is higher for standardized milk, full cream milk and flavoured
milk in the co-operative dairy plant. The marketing cost has been found less in the cooperative
plant for products like butter and ghee. All the dairy products earn more marketing margins in the
private sector than in co-operative dairy plant, except for toned milk. The marketing efficiency of
cooperative dairy plant for all dairy products has been observed relatively less than that of private
dairy plant, except for toned milk. The study has suggested the development of co-operative dairy
industry in a sustainable manner, and the co-operative dairy plants should formulate long-term
vision and strategy. The study has observed that value addition in dairy products should be done
without compromising the quality and consumer-oriented market research and development
should be accorded greater attention.
Sharma (2000) conducted an opinion survey in Andhra Pradesh regarding the consumer
perception and attitude towards the different sources of milk purchase. It revealed that a majority
of the families purchase milk from private vendors due to non-availability of Dairy milk within
the reasonable distance from the consumer’s residence. Several households reported that the
housewives are unable to collect the milk in person from the milk booths as it involves time and
energy and they are forced to employ servants for collection of milk from the booths, which

P a g e 49 | 68
involves additional cost and delay. Further, they also expressed dissatisfaction with the present
arrangement of milk supply from the booths and suggested home delivery. Nearly, 60 percent of
the families felt that the home delivery of milk in polythene sachets is advantageous and indicated
willingness to pay additional costs/service charges for the same. So, the co-operatives may have
to seriously think about the system of home delivery of milk in order to bring more consumer
families under its fold. Other reason for household preference to private vendor was non-
availability of milk in small packing of less than half litre with the Dairy as several small families
and those belonging to lower income groups strongly felt that such facility is essential to enable
them to purchase the Dairy milk. It is also true with small size families irrespective of their
economic status. Similarly, it was also noticed that in Orissa, a majority of higher income group
(85.6%) were not purchasing OMFED milk due to absence of home delivery, poor taste, less
cream, bad smell and nonavailability of credit structure in co-ops. There was also strong
correlation between income and proportion of home delivered milk. For example, in Orissa, the
percent of milk that was home delivered increased from 40 percent for those with income less than
Rs.4,000 to 63 percent for those with income more than Rs.10,000.

P a g e 50 | 68
CHAPTER: 4
RESEARCH
METHODOLOGY

P a g e 51 | 68
RESEARCH METHODOLOGY
All the findings and conclusion obtained are based on the survey done in the working area, within
a 45 days, I have collected data from the various Restaurants, Hotels, Caters and canteens.
4.1 Problem identification
 To understand the various strategies adopted by the company for promoting
their products in the market and their understanding about the competitors
strategy.
4.2 Type of research
 In this research used descriptive research method in this used survey method with
the help of questionnaire tool. In which I have approached the various Hotels,
Restaurants and Caterers (HORECA) and tried to figure out whether they are Old or
New customers of Parag Milk Foods Ltd.

P a g e 52 | 68
4.3 Sources of data
The research must determine what source of information he will use. There are two types
of data collection method use
1. Primary data
2. Secondary data
1. Primary data: Primary data consists of originally collected in hand through
questionnaire and survey and interview. The primary data is collected from
HOTEL, RESTAURANT, CATERESS, COLLEGE CANTEENS AND FAST
FOOD.
2. Secondary data: Secondary data consists of information that ready exist
somewhere collected for some other purpose. They are not collected specially to
achieve the objective of the particular project at hand source are government
publication, magazines etc.
The survey was done through personal interview method because only in this
method the researcher gets immediate information by face to face interviewing
so the survey was done through personal interview method.
For the survey method used by the researcher for to collection a primary data.
He has prepared a questionnaire for to measuring the attitude of consumers.

P a g e 53 | 68
4.4 Data collection method of primary data collection
1. Survey
2. Observation
3. Questionnaire
Here I selected survey method for data collection
4.5 Sampling plan
 Sample size: 232 Respondents
 Sampling method: In this research convent sampling method is used as per
researchers convenient I have chosen 232 respondents to conduct research.
4.6 Statistical tool (If applied)
No Statistical tool

P a g e 54 | 68
CHAPTER-5
DATA ANALYSIS
&
INTERPRETATION

P a g e 55 | 68
Q1. Who are using company’s product?
Table: 1
Customer Type No. of customer
New 172
Old 60
Grand Total 232
Figure: 1
Interpretation: I took 232 respondents out of which 60 are old clients and 172 are new
entries.
74%
26%
No. of Customer
New
Old

P a g e 56 | 68
Q2. Old Customers are using which product of the company?
Table: 2
Product Old using Which Products of company?
Go-cheez 28
Gowardhan Pro-cheese 9
Go-slice 7
Mozzarella Cheese 14
Go Processed cheese 2
Grand Total 60
Figure: 2
Interpretation: Out of 60 old clients 25 using Go cheez, 9 using Gowardhan Cheese, 2
using Go Processed Cheese, 14 using Mozzarella Cheese and 7 using Go-slice
47%
15%
12%
23%
3%
Old usingWhichProducts of commpany ?
Go-cheez
Gowardhan Pro-cheese
Go-slice
Mozzarella Cheese
Go Processed cheese

P a g e 57 | 68
Q.3 whichtype of outlet?
Table: 3
Figure: 3
Interpretation: From collected data 20 are Fast food, 10 are Bakery, 4 are Restaurant,12 Pizza out lets,
are café and 12 are other clients.
Outlet Name Which type of Outlet
Fast Food 20
Bakery 10
Restaurant 4
Pizza 12
Café 1
Other 12
Grand Total 59
34%
17%7%
20%
2%
20%
Whichtype of Outlet
Fast Food
Bakery
Restaurant
Pizza
café
Other

P a g e 58 | 68
Q4. New clients using which Company’s product?
Table: 4
Figure: 4
Interpretation: From new entries 113 are using Amul’s Products, 25 are using Vimal’s Product, 7 are
using Delicious Products, and 27 are using other company.
Company/Brand Name New clients Using which Company’s product
Amul-cheese 113
Vimal 25
Delicious 7
Other 27
Grand Total 172
66%
14%
4%
16%
NewclientsUsingwhich Company’sproduct
Amul-cheese
Vimal
Delicious
Other

P a g e 59 | 68
Q5. Rate Company’s service? (By old clients)
Table: 5
Figure: 5
Interpretation: Out of 60 old clients, 5 reviewed that they are highly dissatisfied with company’s
service, 10 reviewed that they are neutral, 11 reviewed that they are somewhat satisfied with
company’s service and 34 reviewed that they are highly satisfied with company’s service.
Satisfaction Level Rate company's service ( By old customer)
Highly Dissatisfied 5
Neutral 10
Somewhat satisfied 11
Highly satisfied 34
Grand Total 60
8%
17%
18%
57%
Rate company's service ( By old customer)
Highly Dissatisfied
Neutral
Somewhat satisfied
Highly satisfied

P a g e 60 | 68
Q6. Where do company stand vs. Competitors?
Table: 6
Figure: 6
Interpretation: Interpretation: Out of 60 Old clients, 34 Reviewed that much
better than competitors, 13 Reviewed that somewhat better than competitors, 10
Reviewed that Neutral, 2 reviewed that somewhat worse than competitors and
Highly dissatisfied.
Row Label Company stand VS. Competitors
Much better than competitors 34
Somewhat better than competitors 13
Neutral 10
somewhat worse than competitors 2
Highly Dissatisfied 1
Grand Total 60
56%
22%
17%
3%2%
Company stand VS. Competitors
Much better than
competitors
Somewhat better than
competitors
Neutral
somewhat worse than
competitors
Highly Dissatisfied

P a g e 61 | 68
Q7.Demand of sample in Old Clients?
Table: 7
Figure: 7
Interpretation: Out of 60 old clients 25 want sample in which 8 want Mozzarella, 8 want Go
Slice, 5 want Gowardhan Ghee and 4 Gowardhan Processed cheese.
Type of product Sample Required Old Customer
Mozzarella 8
Go-slice 8
Gowardhan-Ghee 5
Gowardhan processed cheese 4
No 35
Grand Total 60
13%
13%
8%
7%
59%
Sample Required Old Customer
Mozzarella
Go-slice
Gowardhan-Ghee
Gowardhan proceesed
cheese
No

P a g e 62 | 68
Chapter: 6
Findings & recommendation

P a g e 63 | 68
Finding
According to the survey done by me, I conclude that out of 242 sample 162 are Already existing
customer. I also found that Parag dairy do not advertise much, as compared to Amul. Also in Surat
city Parag products have only captured market in cheese other products are also available, but milk
is unavailable. And my finding will certainly help Parag Dairy to take further decision and its sale
and maximum its profits.
1. Given the competitive scenario in the Dairy products in India, Where competitors such as Amul
are introducing several innovative products Parag is able to well in cheese category.
2. Increasing price of Parag milk and other products will be a big challenge for Parag, because
these products are available in the market at comparatively lower price.
3. Most of the customers are satisfied with the quality of the Parag Products.
4. Customer want to make the availability of the Parag products nearer to their home.
5. They Should Establish Parag Milk vending machine gives the Parag a competitive advantage
and enhance the availability among the customers.
6. Gowardhan Processed Cheese of company is high in demand among customers.
7. Most people were not aware about the company and their products other than GO and
Gowardhan.

P a g e 64 | 68
Recommendation
After completion of the research work I came to some conclusion which could help the company
in development and improvement of service process. This is helpful in future development of the
company. The following points come in the suggestion parts which came after analysis and
conclusion of the research.
2. Company should continuously take feedback from market and consumer about
dairy based products
3. Open go & Gowerthan outlets for direct selling like (Amul)
4. The company should provide some incentive schemes for retailer also.
5. Should have same pricing for distributors with similar market coverage and
Improve sales strategy which automatically increase buffer stock to
distributor point
6. The company should associate itself with some games or tournaments like football,
cricket and so on.
7. Company should provide sponsored seminar market intelligence – company should
maintain the healthy relationship with market distribution channel i.e. Whole seller,
distributor, retailers which will boost the brand image.
8. Distribution channel should be arranged according to the convenient of the
customer.

P a g e 65 | 68
9. More milk ATM should be established to enhance the availability of Parag milk
10.Make the customers aware about the Parag products through different mode
of advertisement
11.Parag should offer refrigerators on installment to retailer
12.Parag should provide home delivery facility to their consumers.

P a g e 66 | 68
Conclusion
I have studied and analyzed the dairy based food product market of Parag dairy Products
on different aspects of the markets, outlets, distribution and consumers. The survey was
conducted in various areas of Surat city with great enthusiasm. This project report
concludes that Amul and Parag Dairy are easily available in various part of Surat. The
Parag distribution channel of the Amul is much strong because they own outlet in Surat
city. According to the consumer perception and data collection it is found that the Amul is
strongest competitor, and also majority people are satisfied with the quality and taste of
Parag milk products.

P a g e 67 | 68
Bibliography:
www.ssrn.com
www.paragmilkfood.com
www.amul.com
www.google scholar.com
www.google.com
www.moneycontrol.com
www.the money roller.com
www.gowardhanindia.com
www.india note.com
www.livemint.com
www.gowardhanindia.co.in
www.timesofindia.com
www.business-standard.com
www.thehindubusinessline.com
www.reseachgate.net

P a g e 68 | 68
Reference
1.ResearchMethodology –C.R Kothari, 2nd revisedaddition
2. Schiffman Leon and Kanuk, (1994) Consumer Behaviour (Fifth Edition), New Delhi:
Prentice Hall of India.
3. Mary C. Jothi (2013) “A Study on Consumer Behavior of Aavin Milk in Bhel Township:
Trichy” International Journal of Advance Researchin Computer Science and Management
Studies, ISSN: 2321-7782 (Online) Vol.1(4).
4.Ramanjaneyalu n. (2012) “Consumers’ behaviour and dealers’ perception towards dairy
products – a case study of dharwad milk union of karnataka milk federation (kmf)”Asian
Journal of Researchin Social Science & Humanities, ISSN 2249‐7315, Vol. 2(2).
5. Sarvesh Kumar and Sirohi Smita (2003), “Performance of Dairy Industry in Post-
Liberalisation Period”, Indian Journal of Agricultural Economics, Vol. 58, No. 3, July-
Sept, Pp. 631.
6. Rangasamy N. and Dhaka J.P (2008) Marketing Efficiency of Dairy Products for
Co-operative and Private Dairy Plants in Tamil Nadu - A Comparative Analysis.
Agricultural Economics ResearchReview Vol. 21 July-December, Pp: 235-242.
7. Sarvesh Kumar and Sirohi Smita (2003), “Performance of Dairy Industry in Post-
Liberalisation Period”, Indian Journal of Agricultural Economics, Vol. 58, No. 3, July-
Sept, Pp. 631.
8. Sharma. M.L., Raka Saxena and Dipan Das (2007), “Potential and prospects of Dairy
Business in Uttarakhand: A Case study of Uttaranchal Co-operative Dairy Federation
Limited”, Agricultural Economics Research Review, Vol. 20, Issue 2007, P. 23.

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