Market Research Report : Dairy Market in India 2011

11
   October 2011

Transcript of Market Research Report : Dairy Market in India 2011

8/3/2019 Market Research Report : Dairy Market in India 2011

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 – 

October 2011

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Executive Summary

Market 

Overview

Dairy market

 is

 growing

 at

 a rate

 of 

 a %

Dairy processing sector to assume more importance in the coming days

Unorganized sector has B % market share

Import‐

Export

Increase in fodder prices

Imports have increased marginally over the years

Exports have

 shown

 a fluctuating

 trend

Major 

Barriers

Low yield of  cattle

Increasing milk prices

Increase in

 per

 capita

 availability

 of 

 milk

Trends 

Growth of  UHT Milk

Packs of  varying size

Government 

Intensive Dairy Development Program

Major Players in the Market

Initiatives  

Dairy Venture Capital Fund

Vision 2030

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•Introduction

 

•Import &

 Export

•Major Barriers

•Trends

•Government Initiatives

•Opportunities

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•Appendix

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Food processing

 industry

 in

 India

 has

 huge

 untapped

 

potential and offers scope for large investments

Introduction Food processing:

 Growth

•The food processing  industry is valued at INR A2 and 

is expected to witness a CAGR of   b% in the period  5,000X% A4

20‐‐‐20‐‐E

• India is one of  the top producers of  milk, pulses, 

sugarcane and tea in the world2,000

3,000

4,000 A2A1

Sector wise food processing

• Government has taken major initiatives towards 

ensuring multi‐fold growth in this sector that has an 

investment opportunity of  about INR A by 20‐‐

0

,

20--e20--e20--20--

• Mega Food Parks are coming up in India to integrate 

the supply chain and promote food processing

C1%Dairy

x1% of  the milk produced is used 

for processing

 , 

Madhya Pradesh are highly attractive for food 

processing industry

C2%Others

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Dairy Market in India needs to grow at a faster rate to catch 

up with the demand

Overview  – Dairy

 Market

 (1/3) Production

 : ABC

• India produces maximum amount of dairy items in

the world 150 x

• Of the total milk produced in India, B % of the milk

comes from the buffaloes• As of Jan 20‐‐, the Indian dairy industry is

a roximatel INR Q bn

50

100BA

• J % of the milk sold is in loose form

• Only H % of the milk sold is trough retail chains

• Since the consumption is on a growing trend so many Global Production Scenario (20‐‐)

20-----20-----20-----20-----

foreign companies are coming to India with a variety

of dairy products

Some of theses companies are taking bottom of the

pyramid approach to reach out to the masses by

India a

• Milk is the only crop where the farmer realizes T % of 

consumer price ‐ against T2 % or so in fruits and

vegetables

Global b

Rest of Asiad

India c

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In‐spite of  India being the largest milk producer exports are 

not picking up due to various internal factors

•New markets from South East Asia, far east, north 

Africa re opening up for the Indian exporters

Dairy Market

‐Exports Exports

‐Value

1.000B

• However, In Feb 20‐‐, the government had imposed a 

ban on the export of  milk powder so as to control 

inflation and

 bring

 prices

 under

 control

• Exports have reduced in the  recent years as the 

500D

CA

 

itself  

Exports Country‐wise (20‐‐‐‐‐)Exports Country‐wise (20‐‐‐‐‐)

20-----20-----20-----20-----

38%

18%cd

e

f

b Country 3

Country 2

Country 1

c

Countr C

Country B

Country A

9%

12% a

Others

Country 5

oun rye

f

a

b

Others

Country E

Country D

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Major Barriers  – Summary 

Rise in fodder prices

Major

Increase in rices Low ield of cattle

Barriers

 

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Trends  – Summary 

Packs of 

 varying

 sizes Increase

 in

 per

 capita

 availability of  milk

Key 

Trends

Growth of  UHT milk New entrants

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Government has placed major emphasis in the development of  the dairy market through a host of  benefits

Government Initiative

The government has put a lot of  emphasis on developing the sector by announcing a set of  incentives and

subsidies for the companies engaged in the manufacturing of  milk and other dairy products

Initiative Analyst  View

De‐licensing of  the Indian dairy 

industry

The Indian dairy sector was growing at a tremendous rate. Private 

investments and

 foreign

 equity

 participation

 was

 allowed

 so

 as

 to

 bridge

 the huge gap between demand and supply. 

Ever since there has been lot of  investments and new brands are coming 

in the processed milk sector.

Foreign equity participation  to the 

tune of  a % is allowed in the Indian 

dairy processing sector

De‐reservation

 of 

 man

 se ments

 De

‐reservation

 of 

 ice

‐cream

 and

 hee

 saw

 the

 entr

 of 

 MNCs

 into

 these

 

like ice‐cream and ghee segments making them more competitive and giving customers a lot to 

choose from

No Excise duty on dairy machinery In order to promote dairy processing sector, excise duty of   c % has been 

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Major Players (x/ y)

Company Snapshot:

 Company

 1

Corporate Information Financial Performance

ea quar ers ace 

Founded 19‐‐

Products Product 1, Product 2

Net Income

0.4

0.6

0.10

0.150.20

R4

R3R2R1

Key People ABC,  XYZ  0.0

0.2

0.00

0.05

20--20--20--20--

•The company, formerly known as  ABC

•The production of  dairy milk & milk products during the year was x1 KL as against x2 KL in the previous year 

representing 

growth 

of  

•The sale of  fresh cream and ice‐cream mix recorded volume growth of  over W % 

•The company gave dividend  of  INR R per share on the Equity Shares of  INR R1 each for the year ended 20‐‐, as 

compared to INR J per share in the previous year

• The Dair   Division of  the com an   is focused on continuousl   on  levera in   the G brand and offerin   different value 

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added milk

 products

 to

 achieve

 higher

 profitability

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Thank you for the attentionThe Dairy Market‐ India report is part of  Food & Beverages Industry Series. 

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