REPORT ON DAIRY PRODUCTS MARKET IN INDIA - big … Industry.pdf · REPORT ON DAIRY PRODUCTS MARKET...
Transcript of REPORT ON DAIRY PRODUCTS MARKET IN INDIA - big … Industry.pdf · REPORT ON DAIRY PRODUCTS MARKET...
REPORT ON
DAIRY PRODUCTS MARKET IN INDIA
BIG STRATEGIC MANAGEMENT CONSULTANTS
3, Hindustan Kohinoor Complex, L B S Marg, Vikhroli (W), Mumbai, India Tel: 022 67427821-29 Fax 022 67427826
P.O. Box 29815, Dubai, United Arab Emirates.
Tel 00971-4-431 5672 Fax 00971-4-431 5673 URL: www.big-consultants.com
Mazustegui 21- 2a Entreplanta Izquierda , 47806 , Bilbao Vizcaya , Spain
BIG Strategic Management Consultants
CONTENTS
1. Indian Economic Overview
3. Understanding Dairy Products
4. Major Players in Dairy Products Industry
5. About BIG Strategic Management Consultants
2
2. Packaged Food Overview
BIG Strategic Management Consultants
-4%
-2%
0%
2%
4%
6%
8%
10%
2008 2009 2010 2011 2012
% C
hang
e O
ver P
revi
ous
Year
Year
GDP SCENARIO
World Baseline World Downside scenario Indian Scenario
After several consecutive
years of strong growth, the
world economy entered into
the worst recession which
started in third quarter of 2008.
All the advanced
economies faced deep
economic crisis , as the world
GDP dropped by 1.3% in
2009.
The signs of recovery shall
be visible from fourth quarter
of 2010.
The Indian economy which
has also been impacted by the
global turmoil, posted a
growth of 5.4% in FY 2009.
Source: International Monetary Fund (IMF)
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INDIAN ECONOMIC SCENARIO
India is among the top 15 countries in the global economy in terms of GDP at current prices.
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CONTENTS
1. Indian Economic Overview
3. Understanding Dairy Products
4. Major Players in Dairy Products Industry
5. About BIG Strategic Management Consultants
4
2. Packaged Food Overview
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UNDERSTANDING PACKAGED FOOD
The dairy exports in 2007–08 rose to US$ 210.5 million against US$ 113.57 last fiscal
PRODUCT DESCRIPTION I. Sauces,
Dressings and Condiment
Ketchups, Pickles, Mayonnaise, Spreads, Salad Dressings, Jams,
Syrups and Cordials.
II. Dairy Products Yogurt, Plain and Flavored Milk, Butter, Cheese, Ice Cream, Buttermilk,
Pudding.
III. Bakery Goods Breads, Cakes, Croissants, Cookies, Bakery Snacks, Sandwiches
IV. Soup and canned food
Soups, Baked Beans, Fruits and Vegetables, Sweets, Canned Meat,
Pulps
V. Snacks and Candy
Wafers, Chocolates and Confectionaries, Namkeens
VI. Processed and Ready to eat Meals
Vegetable and Curry Meals, Rice, Cup Noodles, Cooked Noodles and
Pastas
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CONTENTS
1. Indian Economic Overview
3. Understanding Dairy Products
4. Major Players in Dairy Products Industry
5. About BIG Strategic Management Consultants
6
2. Packaged Food Overview
BIG Strategic Management Consultants
The size of the global processed-food market is estimated at US$ 3.2 trillion and nearly 80 per cent of agricultural products in the developed
countries get processed and packaged.
As nations such as China, India, Brazil and Russia become wealthier, they are changing their eating habits resulting in increase in consumption
of Dairy products. World milk production in 2009 should reach 701 million tonnes
DAIRY PRODUCTS SHARE IN THE GLOBAL FOOD MARKET (2009)
World milk production in 2009 was 701 million tonnes, or an increase of just over one per cent, with production growing faster in developing countries than in developed countries.
Source: New York Times Database
0%
20%
40%
60%
80%
100%
120%
USA Spain France Mexico Japan Russia Brazil SouthAfrica
China
8% 10% 7% 6% 13% 11% 13% 8% 21%
39% 41% 36%
21% 25% 28% 30%
29%
27%
14% 20%
23% 62%
9%
32% 21% 39% 11% 2%
1% 3%
1%
5%
4% 3%
2%
8% 8%
9% 10%
2%
3%
5% 2%
5%
4%
23% 15% 18%
5%
42%
15% 29%
14% 25%
6% 4% 3% 3% 3% 5% 2% 3% 4%
Sauces, Dressings and Condiments Dairy Products Bakery Goods
Pasta Soup and Canned food Processed/Ready-to-Eat Meals
Snacks and Candy
International Dairy trade is
mostly in manufactured
products, primarily
butter, cheese, and milk powders.
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India’s national dairy plan contains a proposed spend of Rs. 173 billion to increase the country's milk production to meet the
projected demand of 180 million tonnes by 2021-22.
The industry is growing at 3.8% over the past two-three years. The top ten milk producing states of Uttar Pradesh, Rajasthan,
Punjab, Andhra Pradesh, Gujarat, Maharashtra, Madhya Pradesh, Bihar, Tamil Nadu, and Haryana account for more than 80 percent
of India’s milk production.
Almost 46 per cent of milk produced in India is consumed as liquid milk and only 15 per cent of milk is processed and packed.
INDIAN DAIRY PRODUCT MARKET
India is the largest producer of milk producing more than 100 million tons of milk per annum.
Source: National Dairy Development Board Database 2010
The current size of
the Indian dairy
sector is US$ 62.67
billion
80
85
90
95
100
105
110
2004-05 2005-06 2006-07 2007-08 2008-09
92.5
97.1
100.9
104.8
108.5
Tota
l Milk
Pro
duct
ion
(Mill
ion
Tonn
es)
Year
Milk Production
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India is one of the fastest growing markets for cheese with a total consumption of about 7,000 tons a year
Top players of branded cheese manufacturing in India include Amul, Britannia, Le Bon, Mother Dairy and others.
During the last few years, the Indian cheese market has grown steadily at 15 to 20 per cent per annum
INDIAN DAIRY PRODUCT MARKET
The urban population accounts for major cheese consumption in India. Taken together, the four metropolitan cities viz., Delhi, Mumbai, Chennai and Kolkata consume over 60% of the total cheese sold in India.
Source: Intecos – cier’s Market Forecast and Indicators
0
1
2
3
4
5
6
7
8
2004-05 2005-06 2006-07 2007-08 2008-09
4.76 5.3
5.86 6.45
7.06
Dem
and
for P
roce
ssed
Che
ese
(Rs
billi
on)
Year
Processed Cheese The Indian Cheese
market has been
growing at 10% over
the past couple of
years.
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The ice cream market in India can be divided into: the branded market and the grey market. The branded market at present is 100
million litters per annum valued at Rs. 800 crores. The grey market consists of small local players and cottage industry players.
The per capita consumption of ice cream in India is approximately 300 ml, as against the world average of 2.3 litters per annum.
Vanilla, Strawberry and Chocolate together constitute approximately 60% of the market.
INDIAN DAIRY PRODUCT MARKET
The Indian ice cream industry is currently estimated to be worth Rs. 2,100 crores, growing at a rate of approximately 12%.
Source: Intecos – cier’s Market Forecast and Indicators
0
50
100
150
200
250
300
350
400
2004-05 2005-06 2006-07 2007-08 2008-09
286.2 312
340.1 370.7
396.6
Dem
and
for I
ce C
ream
(mill
ion
litre
s)
Year
Ice Cream
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GROWTH DRIVERS FOR MILK & DAIRY PRODUCTS IN IINDIA
Excise duty on ready to eat packaged foods and instant food mixes has been brought down to 8 per cent from 16 per cent.
POTENTIAL TO CONSUME: As a developing nation with a healthy growth in per capita income, unlike in the developed world, there is an increasing
acceptance of milk and milk products in India. This potential can only increase with the rise in disposable income levels,
increasing urbanisation and distribution levels.
STRONG CO-OPERATIVE EFFORTS: With support from the government, the Co-operative movement is gaining strength in the country. This has lead to better
prices for farmers and a more organised method of collection, processing and distribution. Many private sector players have
now entered the business and their efforts will only help to market, distribute and popularise the consumption of milk and milk
products.
SURGE IN RETAIL TREND: The arrival of food multinationals, rising popularity of quick-service restaurants, modern retail trade and technological
advancements
POTENTIAL TO STORE: The government plans to open 30 mega Food Parks and many Cold Storage by the end of the 11th five year plan
(2007-2012).
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BIG Strategic Management Consultants
CONTENTS
1. Indian Economic Overview
3. Understanding Dairy Products
4. Major Players in Dairy Products Industry
5. About BIG Strategic Management Consultants
12
2. Packaged Food Overview
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Sr. No Name Sales Turnover 2008-09
(Rs. crore) 1 Amul 6,705
2 National Dairy Development Board 3,200
3 Britannia 2,738
4 Vijaya 2,500
5 Nestle India Dairy Products 2,311
6 Gowardhan Heritage 320 7 Kraft 233
8 Vadilal Group 189
COMPETITION ANALYSIS
The industry is mainly unorganized with 75% of the processing units belonging to the unorganised category, the
organised category though small, is growing fast.
Recognising the growth potential of the branded health food sector in India, fast moving consumer goods (FMCG) majors are foraying into this sector in a big way.
The other Prominent companies in India are Vijaya, Verka, Fromageries Bel, Dabur
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BIG Strategic Management Consultants
CONTENTS
1. Indian Economic Overview
3. Understanding Dairy Products
4. Major Players in Dairy Products Industry
5. About BIG Strategic Management Consultants
14
2. Packaged Food Overview
BIG Strategic Management Consultants 15
ABOUT US Foundation BIG Strategic Management Consultants, established in 2008, is a fusion of the vast experience of
industry veterans and its synergy with the young blood, which blends to give superior consulting services
to both domestic and international clients in fields as diverse as strategic consulting, technology
consulting, financial consulting, market research and analysis, feasibility studies and manpower planning. Our Goal To exceed the expectations of every client by providing outstanding services which are timely, accurate
and innovative.
Our Associates Are distinguished by their functional and technical expertise along with their hands-on experience,
thereby rendering the most effective and professional service.
Our Services help clients
Define new areas of businesses.
Give a competitive edge to current and new businesses.
Service with inventive business solutions which are realistic and achievable.
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OUR SERVICES
The regional exposure has a reach in Asia-Pacific, Middle East and Europe.
The various industries covered by the panel are divided into 3 different sectors covering the various
industries as mentioned below. A - Government Departments and Organizations
(Policy Formulations, Organization Redesign, Impact Assessment Studies)
B – Manufacturing Industry
(Automotive,Chemicals,Consumer Goods, Food & Beverage, Pharmaceuticals, Textiles, Cement,Building
Materials)
C - Service Industry
(Advertising, Financial Services, Banking & Insurance, Media and Telecom, Healthcare, Hospitality,
Transportation & Logistics, Travel & Tourism, Aviation, Shipping)
D – Miscellaneous Industry
(Agriculture, Construction and Real Estate, Power and Water, Oil and Gas, Infrastructure)
BIG Strategic Management Consultants BiG Strategic Management Consultants 17
HOW CAN HELP? G
RO
WTH
Assessment of the Current Dairy
Product Market In India.
Market Research for foraying into new Product and
Demand Assessment for
the same.
Competitive Positioning,
Branding and Acquiring Market
Share
Strategy Formulation for Entering New
Segments and Portfolio
Expansion
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Thank You
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