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@
 Absolutely optimistic.
@ a Quite reasonable, even on packed liquid milk.
@   !  Tremendous. With balancing equipment, you can keep on adding
to your product line.
@ " #  Abundant. Presently, more than 80 per cent of milk produced is
flowing into the unorganized sector, which requires proper channelization.
@ !!# Professionally-trained, technical human resource pool, built over last 30
years.

$
@   Pasteurization has overcome this weakness partially. UHT gives milk long
life. Surely, many new processes will follow to improve milk quality and extend its shelf
life.
@ !$! " Theoretically, there is little control over milk yield.
However, increased awareness of developments like embryo transplant, artificial
insemination and properly managed animal husbandry practices, coupled with higher
income to rural milk producers should automatically lead to improvement in milk yields.
@  !!   Woes of bad roads and inadequate transportation facility
make milk procurement problematic. But with the overall economic improvement in
India, these problems would also get solved.
@  !   Yes, all is not well with distribution. But then if ice creams
can be sold virtually at every nook and corner, why can¶t we sell other dairy products
too? Moreover, it is only a matter of time before we see the emergence of a cold chain
linking the producer to the refrigerator at the consumer¶s home!
@   With so many newcomers entering this industry, competition is becoming
tougher day by day. But then competition has to be faced as a ground reality.
The market is large enough for many to carve out their niche.

Top

  
"Failure is never final, and success never ending´. Dr Kurien bears out this statement perfectly. He
entered the industry when there were only threats. He met failure head-on, and now he clearly is an
example of µnever ending success¶! If dairy entrepreneurs are looking for opportunities in India,
the following areas must be tapped:

@ ‰   There is a phenomenal scope for innovations in product development,
packaging and presentation. Given below are potential areas of value addition:
’ Steps should be taken to introduce value-added products like O
 , ice
creams, 

 , flavored milk, dairy sweets, etc. This will lead to a
greater presence and flexibility in the market place along with opportunities in
the field of brand building.
 ’ Addition of cultured products like yoghurt and cheese lend further strength -
both in terms of utilization of resources and presence in the market place.
’ A lateral view opens up opportunities in milk proteins through casein, caseinates
and other dietary proteins, further opening up export opportunities.
’ Yet another aspect can be the addition of infant foods, geriatric foods and
nutritionals.
@ å    Efforts to exploit export potential are already on. Amul is exporting to
Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty,
opportunities will increase tremendously for the export of agri-products in general and
dairy products in particular.

Top

 
a$"%  &'!  Today milk vendors are occupying the pride of place in
the industry. Organized dissemination of information about the harm that they are doing to
producers and consumers should see a steady decline in their importance.

The study of this c
 analysis shows that the µstrengths¶ and µopportunities¶ far outweigh
µweaknesses¶ and µthreats¶. Strengths and opportunities are fundamental and weaknesses and
threats are transitory. Any investment idea can do well only when you have three essential
ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and
marketing) and values (of quality/ethics).

The Indian dairy industry, following its delicensing, has been attracting a large number of
entrepreneurs. Their success in dairying depends on factors such as an efficient yet economical
procurement network, hygienic and cost-effective processing facilities and innovativeness in the
market place. All that needs to be done is: to innovate, convert products into commercially
exploitable ideas. All the time keep reminding yourself: Benjamin Franklin discovered electricity,
but it was the man who invented the meter that really made the money!
Ô
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India's dairy market is multi-layered. It's shaped like a pyramid with the base made up of a vast market
for low-cost milk. The bulk of the demand for milk is among the poor in urban areas whose individual
requirement is small, maybe a glassful for use as whitener for their tea and coffee. Nevertheless, it adds
up to a sizable volume - millions of litres per day. In the major cities lies an immense growth potential
for the modern sector. Presently, barely 778 out of 3,700 cities and towns are served by its milk
distribution network, dispensing hygienically packed wholesome, quality pasteurized milk. According to
one estimate, the packed milk segment would double in the next five years, giving both strength and
volume to the modern sector. The narrow tip at the top is a small but affluent market for western type
milk products.

(#‰ 
The effective milk market is largely confined to urban areas, inhabited by over 25 per cent of the
country's population. An estimated 50 per cent of the total milk produced is consumed here. By the end
of the twentieth century, the urban population is expected to increase by more than 100 million to touch
364 million in 2000 a growth of about 40 per cent. The expected rise in urban population would be a
boon to Indian dairying. Presently, the organized sector both cooperative and private and the traditional
sector cater to this market.

The consumer access has become easier with the information revolution. The number of households with
TV has increased from 23 million in 1989 to 45 million in 1995. About 34 per cent of these households
in urban India have access to satellite television channel.

Top

    # 
Of the three A's of marketing - " %!!   , Indian dairying
is already endowed with the first two. People in India love to drink milk. Hence no efforts are
needed to make it acceptable. Its availability is not a limitation either, because of the ample scope
for increasing milk production, given the prevailing low yields from dairy cattle. It leaves the third
vital marketing factor affordability. How to make milk affordable for the large majority with
 limited purchasing power? That is essence of the challenge. One practical way is to pack milk in
small quantities of 250 ml or less in polythene sachets. Already, the glass bottle for retailing milk
has given way to single-use sachets which are more economical. Another viable alternative is
to sell small quantities of milk powder in mini-sachets, adequate for two cups of tea or coffee.

a$ c  )***


Two key elements of marketing strategy for 2000 AD are: Focus on strong brands and, product
mix expansion to include UHT milk, cheese, ice creams and spreads. The changing marketing
trends will see the shift from generic products to the packaged quasi, regular and premium brands.
The national brands will gradually edge out the regional brands or reduce their presence. The brand
image can do wonders to a product's marketing as is evident from the words of Perfume Princess
Coco Chanel: In the factory, we pack perfume; in the market, we sell hope!

å
a$ 
@ "!  $  It is growing at double the rate of consumer market
@
$  An important growing market for quality products at reasonable prices
@  $  A boom is forecast in the market of dairy products used as raw
material in pharmaceutical and allied industries
@  $  The increasing away-from-home consumption trend opens new vistas
for ready-to-serve dairy productswhich would ride piggyback on the fast food revolution
sweeping the urban India.

India, with her sizable dairy industry growing rapidly and on the path of modernization, would
have a place in the sun of prosperity for many decades to come. The one index to the statement is
the fact that the projected total milk output over the next 15 years (1995-2010) would exceed
1457.6 million tonnes which is twice the total production of the past 15 years!

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@ £    953 million (70 million dairy farmers)

@ a$ !  74.3 million tonnes (203.5 million lpd)
 @ " #  +,--.&)***/ 5.6%
@ ! $"  214 g/day or 78 kg/year
@ a!57 million cows; 39 million buffaloes
@ a$"&$ 1,250 kg
@   ! +'! / 1.5 million tonnes
@  "" ! !›s. 550 crores
@
     20 mlpd
@   !   $   10
@ ‰   $ +,--0&-./1 ›s. 50,051 crores
@ ‰     11›s. 105,000 crores

   

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