“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

 3.2 Review of existing literature from International/ National journals,

conferences, books and reports which are related to the project. 47

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CHAPTER-4 Research Methodology 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

1.1 Introduction of the topic/study:

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“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.

1.2 Objectives of the study: P a g e 8 | 70

• 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 P a g e 13 | 70

consists of consumer non-durable products which broadly consists,  personal care,

household care and food & beverages.

The Indian FMCG industry is l a rge ly c l a s s i f i e d a s o rga n ize d and uno rgan iz ed .

Th i s se c to r i s a l so 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

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• The organized sector processes an estimated 20% of the total milk output in India

• 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 :

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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

2.4 Product/services range :

There are 4 main Products

Product Portfolio of Parag

CheeseThey 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.

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GOWARTHAN GO PRIDE OF COWS TOPP UP

PARAG PRODUCTS

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

Distribution Channel

Company Depot(C&F)

Super Stockiest

Distributer

Dealer

Retailer

Features

Unique from customer

Better quality

Superb taste

Pure Cow milk Products

India’s largest cheese plant

Varieties

Cheddar Cheese

Mozzarella Cheese

Pizza Cheese

Processed Cheese

Available In • Various packaging

ButterThey 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

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Unsalted butter : 500g & 20kg

GheeThey 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

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Store under refrigerator at 4oC

Comes in 6 flavors: strawberry, mango, banana, pineapple, mixed berry and lychee.

Available in :125

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

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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.

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

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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.

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.

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Ready & easy to use.

Store under refrigeration at 4 degree celsius.

Available in: 180gm & 500gm

Won Asia star packaging award for best packaging.

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

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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!

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

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• Strong presence in high growth modern trade and general trade

• Usage of 100% cow’s milk

• 70% increase in processing capacity post expansion

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

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• 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

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

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• Potential increase in competition from global and domestic players

2.6 Past performance 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.

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PMF has been able to generate Free Cash Flow in 2015 and 2016. The FY16 projected

cash flows do not seem to be promising.

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.

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• 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

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:

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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

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:

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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

CHAPTER: 3

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REVIEWS OF LITERATURE/ THEORETICAL BACKGROUND

THEORETICAL   FRAMEWORK

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.

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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.

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

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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 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

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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.

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

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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 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

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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

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

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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 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

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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.

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CHAPTER: 4 RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

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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.

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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.

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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

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CHAPTER-5 DATA ANALYSIS

& INTERPRETATION

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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.

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74%

26%

No. of Customer

NewOld

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

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47%

15%

12%

23%

3%

Old using Which Products of commpany ?

Go-cheezGowardhan Pro-cheeseGo-sliceMozzarella CheeseGo Processed cheese

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

Q.3 which type of outlet?

Table: 3

Figure: 3

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34%

17%7%

20%

2%

20%

Which type of Outlet

Fast FoodBakeryRestaurantPizzacaféOther

Outlet Name Which type of Outlet

Fast Food 20

Bakery 10

Restaurant 4

Pizza 12

Café 1

Other 12

Grand Total 59

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.

Q4. New clients using which Company’s product?

Table: 4

Figure: 4

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66%15%

4%

16%

New clients Using which Company’s product

Amul-cheeseVimalDeliciousOther

Company/Brand Name New clients Using which Company’s product

Amul-cheese 113

Vimal 25

Delicious 7

Other 27

Grand Total 172

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.

Q5. Rate Company’s service? (By old clients)

Table: 5

Figure: 5

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8%

17%

18%57%

Rate company's service ( By old customer)

Highly DissatisfiedNeutralSomewhat satisfiedHighly satisfied

Satisfaction Level Rate company's service ( By old customer)

Highly Dissatisfied 5

Neutral 10

Somewhat satisfied 11

Highly satisfied 34

Grand Total 60

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.

Q6. Where do company stand vs. Competitors?

Table: 6

Figure: 6

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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

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.

Q7.Demand of sample in Old Clients?

Table: 7

Figure: 7

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57%22%

17%3%2%

Company stand VS. Competitors

Much better than competitorsSomewhat better than competitorsNeutralsomewhat worse than competitorsHighly Dissatisfied

Type of product Sample Required Old Customer

Mozzarella 8

Go-slice 8

Gowardhan-Ghee 5

Gowardhan processed cheese 4

No 35

Grand Total 60

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.

Chapter: 6Findings & recommendation

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13%

13%

8%

7%

58%

Sample Required Old Customer

MozzarellaGo-sliceGowardhan-GheeGowardhan proceesed cheeseNo

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.

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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.

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.

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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.

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.

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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.

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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

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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

Reference

1. Research Methodology – C.R Kothari, 2nd revised addition

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 Research in 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 Research in Social Science & Humanities, ISSN 2249‐7315, Vol. 2(2).

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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 Research Review 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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