Pasteurized packed milkSubtitle

Current scenario India is the largest producer of milk in the world (87 million tons) Near self sufficiency in milk and milk products Marginal and small households will continue to be the major producer

of milk in future Current growth rates of 4-5% in milk production per annum

Current scenario Sustained rise in per capita income and urbanization are fuelling

rapid growth in demand for milk. The per capita availability of milk is 226 grams per day. The world average of 285 grams per day The minimum nutritional requirement is 280 grams per day as per

Indian Council of Medical Research.

Indian Dairy Industry One of the fastest growing sectors in India, with a total size of about

INR1160 billion (INR 1,16,000 crore) OR US$ 26.5 billion. In Dairying, 75 million women are engaged as against 15 million

men.

Indian Dairy Scenario

Position Of Milk Production

By Farm Level -45%

Unorganised -42%

Organised -13% 0

51015202530354045

Farm Level Unorganised OrganisedSector

Position Of Milk Utilization

Consumed as Milk - 46%

Traditional - 47%

Western - 7%

05

101520253035404550

Consumed TraditionalProducts

WesternProducts

Major Player in organized sector

Sabse Bada KhiladiAMUL Origin from the Sanskrit word ‘Amoolya’. Amul is a brand under which GCMMF markets its products. Birth of GCMMF is closely linked to India’s freedom struggle.

The Birth of Amul First Co-operative formed on 4th Jan 1946. Kaira District Co-operative Milk Producers Union Ltd. formed 14th Dec 1946.

Gujarat Co-operative Milk Marketing Federation (GCMMF) was formed in 1973.

Dr. Verghese Kurien was the architect of Amul’s success.

Dr.Kurian’s Mantra for Amul Quality Economy Availability Service

Aaj Ka Amul GCMMF is India’s largest food products marketing

organisation. 12 district co-operative milk producers’ union. 2.5 million producer members. 2.28 billion litres milk collected in 2005-2006. Sales turnover stands at Rs.37736 million in 2005-06

(Rs.13790 million in 1995-96)

Amul Products

Amul Butter

Milk powder

Toned Milk

Dahi

85% 1

60% 1

65% 1

60% 1

Market MarketShare Position

Amul Products

Flavoured Milk

Ice Creams

Cheese

Ghee

55% 2

75% 1

90% 1

8% 2

Market MarketShare Position

Mother Dairy No.1 Regional Player in India. It was set up in 1974 under the Operation Flood Program.

It is now a subsidiary company of a wholly owned company of the National Dairy Development Board (NDDB).

Products Mother Dairy markets & sells dairy products under the Mother Dairy

brand (like Liquid Milk, Dahi, Ice Creams, Dairy Whitener and Butter) Mother Dairy sources its entire requirement of liquid milk from dairy

cooperatives

PORTERS FIVE FORCE ANALYSIS

THREAT OF NEW ENTRY

It has the capacity to retaliate when new firm enter into the industry

Capital requirement in the initial phase is high because plant and machinery is expensive hence it acts as an entry barrier to new firm

BARGAINING POWER OF SUPPLIERS

There is ample supply of cows and bulls for rearing and cross breeding purposes

They are available at very low prices also. Consumer switching cost is low

BARGAINING POWER OF BUYERS

Concentration of buyers are more Buyer has full information about products of

various companies Buyer's purchases are a sizable percentage of

the selling industry's total sales – So the power of buyers are high.

THREAT OF SUBSTITUTE

Demand of fresh milk in domestic and overseas market is increasing.

Milk has been universally accepted as it possess the essential vitamins and minerals required for good health

There are substitutes in soya based formulas or goats’ milk, but the demand for them are low and does not pose a major threat to cows’ milk.

Buyer have less propensity to substitute products – So the threat of substitute is low.

COMPETITIVE RIVALRY

Competitors are numerous Products are undifferentiated Consumer switching costs are low Exit barriers are high Competitors are strategically diverse – So

competitive rivalry is high.