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CHAPTER 1
INTRODUCTION
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1.1 INTRODUCTION
An internship means the position of a student or trainee who works in an organization,
sometimes without pay in order to gain work experience or satisfy requirements for a
qualification. The internship help the students to get real time experience of various aspects
concerned with the organization. It provides more accurate picture of what an individual
doing in certain profession. Due to impact of the widespread of COVID-19 pandemic, the
internship program was not possible to acquire, in order to overcome this difficulty,
University of Kerala suggested to identify any three organizations on a single industry/sector
and thereby submitting a report under the guidance of an assigned faculty.
Internships provide the platform to any B-School student to experience the middle
management experience in real industry. This prepares the students knowledge and enable
them to better prepared and thereby boosting up your profile and career prospects. It also
offers the opportunity to work closely with professionals in the field and to develop
knowledge, competencies and experience related to your career goals. But at the present
scenario, the industries are being forced to avail remote working facilities and internships are
rarely encouraged by the companies as the situations are not favourable. In such a condition,
we have been assigned to carryout a detailed study on any sector of our choice and need to
select any three companies for the purpose of study. A detailed analysis is to be done and the
reports must be submitted based on our inferences. I have opted DAIRY industry and
identified 3 companies for the study. The DAIRY industry is a broad, Milk is very essential
for our daily life. Most people included milk in their diet as it is regarded as the complete
food. Milk contains all the essential nutrients that are needed for humans. Identified
companies from the sector are:
1. AMUL
2. MILMA
3. MURALYA
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1.2 AMUL
Amul is an Indian dairy cooperative society, based at Anand in the Indian state of Gujarat.
Formed in 1946, it is a cooperative brand managed by a cooperative body, the Gujarat Co-
operative Milk Marketing Federation Ltd. (GCMMF). Today is jointly owned by 36 lakh (3.6
million) milk producers in Gujarat. Amul spurred India's White Revolution, which made the
country the world's largest producer of milk and milk products. Kaira District Milk Union
Limited (later renamed to Amul) was founded in 1946 through the efforts of three
men, Tribhuvandas Patel, Verghese Kurien and H. M. Dalaya. Amul's foundation was a
significant contributor to the white revolution in India.Under the chairmanship of
Tribhuvandas, Dr. Kurien was initially the general manager and helped guide the technical
and marketing efforts of Amul. Dr. Kurien was the chairman of Amul . Kurien, founder-
chairman of the GCMMF for more than 30 years (1973–2006), is credited with the success of
Amul's marketing. Amul has ventured into markets overseas. Amul products have been in use
in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray,
Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk
and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in
2005). Today Amul is a symbol of many things like of the high-quality products sold at
reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous
technology, of the marketing savvy of a farmers' organization. And have a proven model for
dairy development (Generally known as “ANAND PATTERN”).
GCMMF
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organisation. It is a state level apex body of Milk cooperatives in Gujarat which
aims to provide remunerative returns to the farmers and also serve the interest of consumers
by providing quality products which are good value for money. Gujarat Cooperative Milk
Marketing Federation Ltd (GCMMF) is the largest Organization in FMCG industry engaged
in marketing of Milk & Milk products under the brand names of AMUL and SAGAR with an
annual turnover exceeding Rs 97.74 billion. GCMMF is a unique organization. It's a body
created by Farmers, managed by competent professionals serving a very competitive and
challenging consumer market. It is a true testimony of synergistic national development
through the practice of modern management methods.
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1.2MILMA
Now well-known by the popular sobriquet ‘MILMA’or, Kerala Co-operative Milk
Marketing Federation (KCMMF) was formed in 1980 as a state adjunct of the National
Dairy Programme ‘Operation Flood’. It is a three-tiered organization. At the grassroots
level MILMA has 3206 Anand model primary milk co-operative societies as on 31.03.2015
with 9.24 lakh local milk producing farmers as members. These primary societies are
grouped under three Regional Co-operative Milk Producers’ Unions viz TRCMPU for
Thiruvananthapuram region, ERCMPU for Ernakulam region and MRCMPU for Malabar
region. At the apex level KCMMF functions from the headquarters at Thiruvananthapuram
kerala,india. From the different units managed directly by KCMMF and the various units
under regional unions MILMA produces and distributes pasteurized Vitamin – A enriched
milk and various milk-based products as well as mango drink throughout the state. MILMA
has been instrumental in achieving the national goal of self-sufficiency in milk production
in the state. Still the goal is receding as Kerala enjoys one of the highest ranges of per capita
milk consumption. KCMMF is totally content in the realization of this vision which was set
before it. KCMMF has achieved the distinction in its performance by close association and
bond with National Dairy Development Board, Animal Husbandry Department and Dairy
Development Department of the State and Kerala Livestock Development Board.
The Organisation has a three-tier structure with the primary milk Cooperative societies at
the village level, Regional Milk Producers’ Unions at the middle level and an apex body at
the State level which is the Kerala Cooperative Milk Marketing Federation Ltd. There are
three Regional Cooperative Milk Producers’ Unions operating at present. The revenue
districts of Thiruvananthapuram, Kollam, Alappuzha and Pathanamthitta. he three-tier
structure ensures that the farmer members are directly responsible for policy level decisions
for the marketing of their produce.
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1.3 MURALYA
Muralya Dairy products private limited is a private incorporated on 28th October 2010. It is
classified as nongovernment company and is registered at registrar of companies, it is one of
the top dairy products retailers in Kerala aims to produce dairy product of international
quality, Muralya Dairy Products Private Limted , and part of the SFC Group based in the
UAE aims to produce Dairy products of international quality. The company also strives to
introduce new benchmarks in milk production, procurement and distribution of dairy
products in the regions it operates in.
Muralya, kerala first international Dairy brand is in the pursuit of making available milk and
milk products that match international quality in the state, by the commissioning of India’s
Largest Dairy Farm with over 4000 heads of cattle, muralya Dairy Farm aims to become
India’s First Fully Integrated and Automated Dairy by producing and processing milk in a
fully automated, state-of-the-art processing plant using German Technology.
Muralya Dairy is committed to the production and supply of Dairy Products of excellent
quality and internationally accepted food safety standards ensuring customer delight,
implementing a strong food safety management system, from “Farm to Plate”, adopting
sustainable environment friendly practices.
Muralya dairy products are Milk- Muralya Milk is available in 1 litre PET bottles and 500 Ml
sachets, Curd- It is available in the market in 90/200/400 g cups and 500 g sachets, Ghee-
Ghee is available in 50/100/200/500 ml bottles, Sambharam- Available in sachets and cups.
At Muralya, we take our commitment to quality very seriously by strictly screening milk at
the production and procurement levels itself for detection of adulterants, hormones,
antibiotics and neutralizers. In fact the pursuit of delivering ‘international quality’ is what
drives us forward.
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1.4 OBJECTIVES
 To analyse the dairy industry as a whole.
 To make a comparison of various players operating in dairy industry.
 To identify the major strength, weakness, opportunities and threats of Amul, Milma,
Muralya
 To conduct porters five forces analysis.
 To analyse the business portfolio using BCG matrix.
1.5 SIGNIFICANCE OF THE STUDY
Dairying is an important source of subsidiary income to small/marginal farmers and
agricultural labourers. The manure from animals provides a good source of organic matter for
improving soil fertility and crop yields. The small/marginal farmers and land less agricultural
labourers play a very important role in milk production of the country. Dairy farming is now
taken up as a main occupation around big urban centers where the demand for milk is high.
The milk produced by the rural milk producers and the same time provide wholesome, clean
and nutritious milk and milk products to the consumers fully eliminating the middlemen in
the dairy sector, thereby providing maximum return to its farmers. This internship program
helps to find true practical knowledge getting from these programs and also understand the
organization and its structure.
1.6 SCOPE OF THE STUDY
The internship program enables to know about the various the scheme for diary, farming
should include information on land, livestock markets, availability of water, feeds, fodders,
veterinary aid, breeding facilities, marketing aspects, training facilities, experience of the
farmer and the type of assistance available from State Government, dairy
society/union/federation. In the scope of the study aims to covers the customers feedback and
availability of products in retail shops and competitors approaches in milk market. The study
gives the details about the milk procurement, production, processing, testing, packing and its
distribution. The study also enables to know about the diary industry in Kerala, special
emphasis given to Kollam district and marketing of milk products in Kerala.
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1.7 LIMITATIONS
 The impact of COVID-19 pandemic had confined the study through the data’s
available on official site.
 Direct interaction with the organization was not possible.
 Some data are not available through secondary method.
1.8 DATA SOURCES
The data utilized for the study is of secondary nature as it was impossible to fetch
primary data due to the COVID-19 pandemic. The data had been collected from
different official sites.
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CHAPTER - 2
INDUSTRY PROFILE
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2.1 DAIRY INDUSTRY
The Indian dairy industry has made rapid progress since independence a large number of
modern milk and milk products factories have been established. These organized diaries have
been successfully engaged in the routine commercial production of pasteurized milk and milk
products. India is the world’s largest milk producer that is certified by the ‘international dairy
industry’.
Dairy is a place where handling of milk and milk products is done and technology refers to
the application of scientific knowledge for practical purpose. Dairy technology has been
defined as that branch of dairy science, which deals with processing of milk and manufacture
of milk products on an industrial scale.
In India, dairying has been practiced as a rural cottage industry since the remote past. Semi-
commercial dairying started with the establishment of military dairy farms and co-operative
milk unions throughout the country towards the end of nineteenth century.
During the earlier years, each household in the countries maintained its ‘family cow’ or
secured milk from their neighbour who supplied those living closed by. As the urban
population increased, fewer households could keep cow for private purpose. The high cost of
milk production, problems of sanitation etc. restricted the practice and gradually the family
cow in the city was eliminated and city cattle were all sent back to the rural areas. Gradually
farmers within easy driving distance began delivering milk over regular routes in the cities.
This was the beginning of fluid milk-sheds which surround the large cities of today. Prior to
the 1850s most milk was necessarily produced within a short distance of the place of
consumption because of lack of suitable means of transportation and refrigeration. The Indian
dairy industry has made rapid progress since independence. A large number of modern milk
plants and products factories have since been established. These organized diaries have been
successfully engaged in the routine commercial production of pasteurized bottle milk and
various western and Indian dairy products. With modern knowledge of the protection of milk
during protection, it become possible to locate dairies where land was less expensive and
crops could be grown more economically.
In India, the market milk technology may be considered to have commenced in 1950, with
the functioning of the Central Dairy of Aarey Milk Colony and milk product technology in
1956 with the establishment of AMUL Dairy, Anand . The industry is still in its infancy and
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barely 10% of our total milk production. The most valuable resources that a dairy business
can have are reliable and productive workers. Today’s tight labour means that workers have
many employment choices. Dairy producers need to do all they can keep their best employees
and attract other excellent workers to their team.
2.2 IMPORTANCE OF DAIRY INDUSTRY
Milk and dairy products play an important role in a healthy, balanced diet. They are rich
sources of calcium which is easily absorbed by the body. This mineral, along with other
nutrients present in dairy foods, such as protein, magnesium and phosphorus, is essential to
build and maintain strong bones.
Milk and milk products rank as a large secondary source of income to the farmer of country.
Good number of Indians population in engaged in the production, processing and marketing
of dairy products and many more are in needed to processes and bottle and deliver.
Dairy farming is an important way for farmers to increase their earnings and access to more
nutritious food for their families. While subsistence dairy farming provides not only fresh
milk and a source of basic income, value-added products, such as yogurt and cheese provide
a higher source of revenue. Dairying is an important source of subsidiary income to
small/marginal farmers and agricultural labourers. The manure from animals provides a good
source of organic matter for improving soil fertility and crop yields. Dairy farming is now
taken up as a main occupation around big urban centers where the demand for milk is high.
The dairy sector is one of the crucial sectors in the Indian economy that not only provides
employment to millions of rural households but also contributes to the economy. Among the
livestock products, milk consists of the highest share, and it accounted for 67.2 per cent of the
livestock sector in 2017. India is self-sufficient in milk production because 73 million dairy
farmers are engaged in the dairy sector, especially women. Regarding benefits to the farmer,
around 60 per cent of the consumer price from milk goes to the farmer, which is the highest
among major milk-producing countries (International Farm Comparison Network, Dairy
Report, 2018).
Importance of Milk in human diet
 Skin glows, moisturisation ( Lactic acid factor).
 Healthy bones and teeth (Calcium and Vit.-D factor).
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 Muscle power enhancement ( protein factor)
 Excess Weight loss (from low fat or skimmed milk ) .
 Less stress ( warm milk relaxes tense muscles and frayed nerves).
 Lowering of high.
2.3 INTERNATIONAL SCENARIO
The international dairy federation, with its head quarters Brussels, was established in 1903
and consists of 32 member countries throughout the world. UNICEF has been the motivating
force for establishing a dairy industry in many under developed countries. One of these is in
India, where large modern processing plants have been set up to process locally produced
milk or to reconstitute milk from donated or purchased milk fat and powder. Domestic milk
production has increased in India and a part of the pasteurized milk is provided free to
children in the larger cities through UNICEF. The first co-operative artificial breeding
association was organized in Denmark in 1936. There are now many such associations which
helped the diary industries. After 1950s dairy industries faced a wide range of development
throughout the world. The global dairy market reached a value of US$ 718.9 Billion in
2019. Dairy is defined as a business enterprise that deals with the processing and
harvesting of animal milk for human consumption. Some of the common milch
animals include cow, goat, buffalo, camel and sheep. The milk obtained from these
animals can be consumed directly and processed into ice cream, cheese, butter,
condensed milk and yogurt. These products offer various nutrients such as calcium,
proteins, zinc, magnesium, and vitamin D and B12. With widespread demand for dairy
products and their proactive function in the global food industry, dairy plays a crucial
role in the growth of the economies worldwide. Over the years, the dairy industry has
witnessed improvements in product safety through specialization, modernization and
consolidation. Moreover, advancements in global trade have also influenced the
profitability of dairy farms.
Market Drivers: The rising demand for milk and milk-based ingredients is one of the
primary factors supporting the market growth. This can be attributed to population
growth, rising incomes, health consciousness and the thriving food and beverage
industry. Another major trend in the industry is the incorporation automation
technologies in dairy farms.
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2.4 NATIONAL SCENARIO
Indian dairy sector has come a long way from price independence era of acute milk shortage
and dependent on foreign aid in the form of milk powder to meet the growing milk demand.
As a result of this a dairy co-operative society was registered in 1913 for meeting this
problem. Later Kaira District milk supply union was formed at Anand. It was an important
land mark in the history of the co-operative dairy sector. Inspired by the achievements of this
institution, the Government of India constituted a National Dairy Development Board in
1965. The White Revolution in India started in 1970 with the organising of small holder dairy
farms under a three-tier co-operative system for organised production, procurement,
processing and marketing of milk. It was implemented in three phases: 1970-81, 1981-85 and
1985-2000.
The emergence of India as a premier dairy nation of the world could be attributed mainly to
the intensive crossbreeding programmes implemented throughout the country over the last
few decades. The population pressure and emerging global opportunities further necessitate
that the efforts for enhancing animal productivity are accelerated. This calls for continuance
of well-proven technologies such as crossbreeding with superior germplasm coupled with
improvement in the productivity of vast population of generally low producing cattle and
buffaloes at faster rate using emerging reproductive and molecular technologies. There is a
great potential for application of multiple ovulation and embryo transfer technology for
production and faster multiplication of superior germplasm of elite animals. There is also
scope for identifying the unique genes specific to indigenous dairy animal genetic resources
using the molecular techniques. It is expected that by the use of such technologies more
number of superior animals per unit time can be obtained by reduction in generation
interval which could further increase the pace of genetic advances by increasing the
intensity of selection. Technologies for raising male buffalo calves economically should be
developed as this potential source of income of farmers is almost going waste. Studies also
need to be conducted to quantify the emission of methane and other green house gases from
Indian dairy sector and methods also need to be devised for mitigating such emission.
Besides meeting domestic demands, it may also be possible to export germplasm to tropical
developing countries. In this context National Dairy Research Institute (NDRI) Karnal has
also set the target of enhancing its semen production from the present level of about 0.1
million doses annually to about 2.5 million doses per year by 2020 A.D. Also about 400-
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500 males from elite herds of Sahiwal, Crossbreds and Murrah, are proposed to be supplied
every year for genetic improvement in the country. For improvement of various breeds of
cattle and buffaloes there is a need to form Breed Societies. These departments could
interact with various developmental agencies including Non-Governmental Organisations
(NGOs) for this purpose. In all interactive programmes involving field recording, progeny
testing and data bank should be taken to supply information on availability of semen, bulls,
females etc. for consistent genetic improvement of livestock. To effectively monitor these
programmes, there is an urgent need for linking them with bio-informatics centres at state,
national and international levels. There is also an urgent need to develop national animal
production and health information system and disease free zones in the country.
The consumption pattern of dairy products in India is quite unique as compared to some of
the Western countries. It has been noticed that Indian consumers are increasingly getting
health- conscious and that the value-added dairy products industry is seeing a marginal
growth. A change in consumer mindsets has led to various changes. Lifestyle alterations have
led to an increase in the demand for value-added dairy products as compared to just the base
product, liquid milk. As the spending capacity of Indians is increasing, so is their willingness
to buy healthier, super foods which we like to call as value-added products. Value-added
products in the dairy industry are products like “cheese, paneer, ghee, yoghurt, probiotic
drinks etc.
There is a strong increase in the demand for milk in India, partly due to the growing number
of inhabitants. People are more attracted towards healthy food in one pack which can be
fulfilled by the dairy products. The country is expected to count 1.5 billion inhabitants by
2035.
ANAND PATTERN ANAND
Anand pattern anand is a small village of farmers in Kaira District of Gujarat. ANAND Milk
Union Limited is a Co-operative Society formed by the farmers of Anand Village for the
purpose of distribution of milk. Now the world famous Anand Milk Union Limited is
popularly known as Amul. The Anand Milk Union Limited has a three tier structure.
1. Village level Primary Co-operative Society called APCOS.
2. District Milk Producers Union.
3. State Level Milk Marketing Federation.
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NATIONAL DAIRY DEVELOPMENT BOARD
National Dairy Development Board was developed by the Government for the purpose of
organising, planning and executing the dairy development programmes in the country. This
board, with the help of government, got assistance valuing Rs. 120 crores under flood
programmes. Under this scheme financial assistance was provided to various state
governments and other agencies for implementing development scheme.
OPERATION FLOOD
Operation Flood is an important move in the history of dairy development in India. Operating
Flood was conceived and formulated by National Dairy Development Board during the fourth
plan. It aimed at establishing a broad base for acceleration and development of the dairy
industry sponsored by the European Economic Community through world food programme.
Operation Flood was conducted to meet India’s rapidly increasing need for milk and milks
product, and making dairy industry capable of viable and self-sustaining growth. The
ideology followed by Operation Flood was the remunerative linking of the rural milk
production center with the urban demand center so as to build up a viable dairy industry.
2.5 STATE SCENARIO
Dairy co-operatives were also developed in Kerala as a part of operation flood. Dairy co-
operatives have a three tier structure in Kerala with primary milk supply society at the base
and milk supply union at the district level and a state level federation. This co-operative
society follows the Anand pattern of dairy development scheme. Apart from the state
federation two regional unions were also formed in our state.
Dairy Industry in Kerala- Market Size, Growth, Prices, Segments, Cooperatives,
Private Dairies, Procurement and Distribution”, offers an in-depth analysis of the
Kerala dairy market. In 2020, the milk production in Kerala reached a volume of 2.5
Billion Litres. The state currently represents the twelfth largest dairy market in India.
The milk production in Kerala mainly consists of cow milk and buffalo milk. The
report’s analysis concludes that cow milk dominates the total milk production,
accounting for majority of the total share. According to the report, the Kerala dairy
market exhibited strong growth during 2015-2020.
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The Kerala dairy market into 18 major product segments:
 Liquid milk
 Ghee
 Curd
 Paneer
 Ice-cream
 Table butter
 Skimmed milk powder
 Frozen/flavoured yoghurt
 Fresh cream
 Lassi
 Butter milk
 Cheese
 Flavoured milk
 UHT milk
 Dairy whitener
 Sweet condensed milk
 Infant food
 Malt based beverages
For each of the product segments, the report provides a thorough analysis of the
current and historical value and volume trends, market share of key players and
market forecast. Currently, liquid milk represents the biggest product segment in
Kerala, accounting for majority of the total market share. Some of the fastest growing
segments include frozen/flavoured yoghurt, cheese, UHT milk, flavoured milk and
butter milk. The competitive landscape of Kerala’s dairy market has also been
examined in this report. Some of the major players covered in the report include
Milma (Kerala Cooperative Milk Market Federation Limited), Malanadu, PDDP
(Peoples Dairy Development Project Central Society) and Jeeva. Looking forward,
IMARC Group expects the Kerala dairy market to grow at a CAGR of 15.7% during 2021-
2026.
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The study provides a detailed evaluation of the dairy market landscape in Kerala,
covering the current, historical and future trends for milk production, milk production
by cattle, milk procurement prices, etc. The report also offers SWOT, Value Chain
and Porter’s Five Forces analysis of Kerala dairy market along with market
segmentation by product type and an analysis of the competitive landscape. The study
is based on both desk research and multiple waves of qualitative primary research.
This report is a must-read for entrepreneurs, investors, researchers, consultants,
business strategists, and all those who have any kind of stake or are planning to foray
into the Kerala dairy market in any manner.
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CHAPTER – 3
COMPANY PROFILE
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3.1 AMUL
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in
India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6
million milk producers in Gujarat, India. AMUL is based in Anand, Gujarat and has been a
sterling example of a co-operative organization's success in the long term. It is one of the best
examples of co-operative achievement in the developing economy. Amul has spurred the
White Revolution of India, which has made India the largest producer of milk and milk
products in the world. It is also the world's biggest vegetarian cheese brand. Amul is the
largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover
of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with milk
collection average of 10.16 million litres per day.
The brand name Amul means “AMULYA”. This word derived from the Sanskrit word
“AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested
the brand name “AMUL”. Amul products have been in use in millions of homes since 1946.
 Amul Butter
 Amul Milk Powder
 Amul Ghee, Amul spray
 Amul Cheese
 Amul Chocolates
 Amul Shrikhand
 Amul Ice cream
 Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India.
Amul Ice Cream was launched on 10th March, 1996 in Gujarat. In 1997, Amul ice creams
entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it
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was rolled out across the country in 1999. In January 2007, Amul introduced SUGAR FREE
& Pro Life Probiotic Wellness Ice Cream, which was a first in India.
Vision and mission of Amul
Vision
Amul ‟s vision is to provide more and more satisfaction to the farmers, employees and
distributers.
Mission
We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavor to satisfy the
tasteand nutritional requirements of the customers of the world, through excellence in
marketing byour committed team. Through co-operative networking, we are committed to
offering quality products that provide best value for money.”
OBJECTIVES
 To capture the large share of the market.
 To provide max. customer satisfaction. Continue product modification and improvement
effort to increase customer benefit and reduce cost.
 To meet the highest international standards of quality.
 To expand production capacity.
DIVERSE PRODUCT MIX
Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice
cream, Nutramul, Milk and Amulya.
AMUL Ice cream is among the Asia’a top 10 Ice cream brands. In a short span of 6 years,
Amul Ice Cream has become No.1 Ice Cream brand in the country. Amul ice cream is now
the only national brand and other Ice Cream brands are regional. Our position in the market:
Amul No.1 brand in India: Amul has achieved a market share of 38% (4.5 times larger than
nearest competitor)
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HISTORYOF MILMA
3.2 MILMA
Milma is the brand name of Kerala co-operative milk marketing federation Ltd(KCMMF)
,the apex cooperative of three Regional Cooperative milk producers union Viz
Thiruvananthapuram Regional union , Ernakulam Regional union and Malabar Regional
union . KCMMF was set up in 1980 to implement the popular operation flood project –II in
Kerala state. The objective of milma is to provide an assured market for the milk produced by
the rural milk producers and the same time provide wholesome, clean and nutritious milk and
milk products to the consumers fully eliminating the middlemen in the Dairy sector, thereby
providing maximum return to its farmers. For the rural community of the country comprising
of 6 lakh villages and lakhs of Dairy farmers, milk has become a commodity that has helped
them to build a new life and provide stable income. Milma believes in developing rural
village community which only helps to develop a strong nation. In its endeavour to meet the
ever increasing consumer demand, milma strives to provide quality products at competitive
prices and at the same time ensures better remuneration to the Dairy farmers of the state.
Thiruvananthapuram Regional Milk Producers Union (TRCMPU) covers the southern most
districts of the state viz Thiruvananthapuram, kollam , alapuzha and pathanmthitta. TRCMPU
operates three modern dairies at • Thiruvanathapuram • Kollam • Pathanamthitta TRCMPU
also undertakes milk procurement and distribution at Alapuzha district. Over the years,
MILMA has developed a long-term health perspective about the people of the state, who
suffer from life style diseases including diabetes and obesity, albeit economic prosperity. So,
MILMA has attuned its products to ensure balanced nutrition as well as reduced cost of
healthcare and also launched new beverages other than milk products. Founded on the basis
of the great democratic principle „of the People, by the People and for the people,’ the
dominant concern of MILMA is to render true service to society while ensuring that it does
not incur losses.
Milma Represents:
 2678 primary milk Co-operative societies.
 8.31 lakhs farmer members.
 Three regional Co-operative milk producers Union
 13 dairies capable of handling 12 lakh litres of milk per day.
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 Fourteen milk chilling centers.
 Two cattle feed plants with cumulative capacity of 500MT per day.
 One milk powder plant 10 MT per day capacity.
 A well-established training center.
 5200 retail outlet.
 Over 32,000 people working either directly or indirectly for the functioning of Milma.
 A part from these Milma serve millions of consumers‟ day in and day out.”
COMPANYLOGO
VISION
To constantly strive to provide valued consumers with the highest quality milk, milk products
and other products with the best standards of service by our passionate and focused work
forces using state of the art technology ensuring sustained growth and simultaneously
ensuring dairy farmer’s delight by better realization of milk price and offering needed service
at his/her doorstep.
MISSION
 ‟Farmers Prosperity through Customer Satisfaction‟ is the mission of the company”.
OBJECTIVES
 Channelize surplus milk from the rural areas to urban deficit areas to maximize the
returns to the producer’s and provide quality milk and milk products to the consumers.
 Carryout activities for promoting Production, Procurement, Processing and Marketing of
milk and milk products for economic development of the farming community.
 Build a viable dairy industry in the State.
 Provide constant market and stable price to the dairy farmers.
22
MAIN FEATURES OF MILMA
 Promote sale of milk and products outside the State and explore export market.
 Federation takes lead role in Brand Management, Brand Promotion, Market Research
and Market Intelligence.
 2678 Primary milk co-operative societies now functioning.
 8.31 lakhs farmer members.
 Three Regional Co-operative Milk Producer’s Union.
 Three dairies capable of handling 12 lakhs liters milk per day.
 Ten Milk Chilling Centers.
 Two Cattle Feed Plants with cumulative capacity of 600MT per day.
 One Milk Powder Plant of 10MT per day capacity.
 5,200 retail outlets.
 Over 32,000 people working either directly or indirectly for the functioning of Milma.
NATURE OF BUSINESS
The Milma is for the welfare of the farmers. The primary share holders of the organization
are farmers. Since it is a Government organization Milma mainly focuses on the benefit of
the farmers and the customer satisfaction. The motto of Co-operation is "of the people, by the
people and for the people". Milma is the foundation of the "three tier system" followed by the
organization. At the village level Milma have the Village Milk Co-operative Societies which
have the local milk producers as its members. The co-operate Social Responsibility (CSR) of
the company is that it provide 2- 3 lakh loan to workers and also provide emergency loans.
There are many welfare activities for the workers like scholarship for their children, provide
subsidies, transportation and compensations. These Village Co-operatives unite at the
Regional level and form Regional Co-operative Milk Producers' Unions. These Unions are
federated at the State level to form State Federation namely Kerala Co-operative Milk
Marketing Federation (KCMMF).
23
DAIRY UNIT
MARKET
DEPT.
QUALITY
DEPT.
PRODUCTIO
N DEPT.
FINANCE
DEPT.
HR DEPT.
Personal
Officer
Accounts
Officer
Asst.
Manager
Quality
Control
Officer
Asst.
Manager
Junior
Superintendent
Assistant
Accounts
Officer
Senior
Supervisor
Dairy
Chemist
Marketing
Officer
Senior
Assistant
Management
Apprentice
Technical
Officer
Lab
Technician
Assistant
Marketing
Officer
Stenographer Operators &
Attenders
Lab
Assistant
Marketing
Organizer
Typist Field
Officers
ORGANISATION CHART
24
FUNCTIONAL DEPARTMENTS
1) Production Department
This department deals with production activities. The main activity of production department
is the processing of milk and other by products. The production department is headed by the
Assistant Manager and is assisted by technical officers, technical superintendents, operators
and attenders. There are mainly two types of milk produced namely, double toned milk and
homogenized toned milk.
PROCESSING OF MILK
 Reception
 Chilling
 Processing
 Packing
 Distribution
2) Human Resource Department
The unit level human resource department is headed by HR manger. Activities like
recruitment of permanent staff, training and development etc centralized in the P&A at the
head office. This department deals with accounting matters related to ranging from
recruitment to retention. main
FUNCTIONS
 Recruitment and Placement
 Selection Process
 Induction and Orientation
 Training and Development
 Promotion
 Performance appraisal
 Motivation
25
3) Finance and Accounts Department
Finance is considered as the life blood of any business organization. In the Accounts and
Finance department which is headed by Accounts Officer and there are 4 employees in total.
The main duty of the finance and accounts department is the procurement of funds and
budgeting, allocation and utilization of funds.
FUNCTIONS
 Providing financial assistance as per the departmental requirements.
 Keeping the monetary transactions in the book of accounts except the marketing
department.
 Finance department also deals with the systems department.
Systems department operates with software which is made by KCMMF, MILMA
Integrated Information System.
4) Quality Control/Assurance Department
Milma works with an aim of giving high quality products to its customers. The quality
control department is headed by Quality Control Officer and is followed by bacteriologist, lab
technician and lab assistant. Milma’s products are tested at each and every stage of
production. This department is maintained mainly for checking the quality of products right
from the reception stage till the final stage of production and thus providing the customers
with best products. Milma collects milk on the APCOS pattern which has been originated
from Amul and has been replicated in Kerala through Milma. It is meant mainly for the
benefit of milk farmers. About 34,000 liters of milk is obtained daily at the dairy. High
quality is maintained within the dairy by not touching the milk with hands except at the time
when it is bought from the societies. A Hot Air Oven is used for the sterilization which is a
dry sterilization method for sterilizing the equipment’s used in testing. The test adopted for
various products are as follows:
 Milk – Acidity test, MPRT, Fat test, SNF test, Bacteriological test
 Lassi – Total Solids test, Acidity test, Bacteriological test
 Peda – Moisture test (the level should be below 10 degree Celsius), Bacteriological
test
26
 Paneer – Moisture test (the level should be below 70 degree Celsius), Fat test (above
50% fat),Total Solids test, Bacteriological test
 Sambharam – Acidity test, Total solids test, Bacteriological test
 SFM (Sweetened Flavoured Milk) – Curdling test, Turbidity test
 Curd – Total solids test, Bacteriological test
5) Marketing Department
Marketing department is headed by Assistant Manager. Marketing department has a key role
to play for the survival and development of any organization. Marketing is the delivery of
customer satisfaction at a profit. The main goal of marketing is to attract new delivering
satisfaction.
Functions
 Sales of milk and other milk products
 Distribution of the products
 Collecting the payments from the agents
 Doing promotional activities
27
ASSOCIATES OF MILMA
1. NATIONAL DAIRY DEVELOPMENTBOARD (NDDB)
Under Dr. Varghese Kurien's guidance set up KCMMF in 1980. Ever since then, there has
been a very close co-operation between NDDB and the Federation. NDDB are the originators
of the Operation Flood Programme and have been our funding agent for the Operation Flood
Projects in Kerala.
2. AMUL
The Dairy Co-operatives of Gujarat have been the inspiration for the development of such a
vast network of dairy co-operatives in Kerala. Among the co-operatives in Gujarat, the
Kerala District Co-operative Milk Producers' Unions (Amul) is the first in this sector. Our
Co-operatives are called "Anand Pattern Co-operative Societies" following the illustrious
lineage of "Amul".
3. GOVERNMENT OF KERALA
The Phenomenal success of the Dairy Co-operatives in Kerala could not have been achieved,
without the foundation of animal husbandry activities, led by the Animal Husbandry
Department, Dairy Development Department and Kerala Livestock Development Board, of
the Government of Kerala.
Kerala Co-operative Milk Marketing Federation is an Indian Dairy company. The company
headquarter is in Kerala, India. The company brand name is ‘Milma’. It is a three-tiered
organization. The company manufactures milk and various milk-based products as well as
mango drink throughout the state.
MILMA has been instrumental in achieving the national goal of self-sufficiency in milk
production in the state. The company goal is “The socio-economic progress of the dairy
farmer through procuring, processing and marketing of milk”. Still the goal is receding as
Kerala enjoys one of the highest ranges of per capita milk consumption. KCMMF is totally
content in the realization of this vision which was set before it. KCMMF has achieved the
distinction in its performance by close association and bond with National Dairy
28
Development Board, Animal Husbandry Department and Dairy Development Department of
the State and Kerala Livestock Development Board.
Type Cooperative
Industry Dairy
Founded 1980
Headquarters Thiruvananthapuram, Kerala, India
Products Milk products & Cattle feeds
Revenue 3003 Crores INR (2017-18)
Website milma.com
PRODUCTS
 Milk
 Fermented Dairy Products
 Fat Rich Dairy Products
 Frozen Dairy Products
 Refreshing Beverages
 Heat Acid Coagulated Products
 Drinking Water
 Dried Milk Products
 Milk Based Sweets & Confectionery
29
COMPETITORS
Milma holds more than 45% market share, who is the front leader in the market. There are
more than 30 competitors in Kerala against Milma. Some of other competitors are:
PRODUCT COMPANY
 Milk Malanadu, Royal, A-one, Ksheera, Balagi, Star etc
 Ghee RKG, Nambeeshan, Namboodiri, Malanadu, Britannia
etc
 Curd Malanadu, Milky mist
 Ice cream Uncle john, Lazza, Amul, Merryboyetc
 Milk powder Every day, Amul, Nestle, Nido
 Sip up Merriboy, Bombay pepsi, Mr.cool sip up etc
 Water Classic, Aquatic, Himalaya, Bisleri water
 Chocolate Cadbury, Nestle, Amul etc
 Mango drink Frooti, Jive
 Paneer Milky mist
30
PRODUCT PROFILE
PRODUCT AVAILABLE IN MARKET
1. MILMA PASTEURIZED MILK
Toned Milk and Double toned Milk are the two types of pasteurized milk from Milma.
 Homoginized Toned Milk
Toned milk is considered as common milk, which contains 3% Fat and 8.5% SNF (Solid
Not Fat). Since the milk is homogenised, whitening capacity is more and less amount of
milk will be sufficient for whitening tea/coffee. This milk mainly focuses on domestic
consumers and is available in 500 ml in blue coloured packet. Price of the toned milk is
Rs21/-. Milma gives 4% of commission for the sale of the each packet of the milk to the
dealers.
 Double Toned Milk
Double toned milk contains high fat content of about 1.5% Fat and 9.0% SNF. The price of
the double toned milk is Rs. 19/-. Double toned milk is also homogenized. Hence fat will not
settle at the top. Both the above milk can be stored for 2 days under cool condition below 7
degree Celsius.
31
2. SAMBHARAM
Sambharam (Butter milk) which is having 4.5% total solids is a favourite beverage in Kerala.
Milma Sambharam is the only product of its kind in the market and it is very popular
throughout the State. It comes in 200 ml cup. It is a seasonal product, mainly for summer
season. . The price of 200ml Milma Sambharam is Rs.10/- 3.
3. CURD
It is fermented product prepared from pasteurized skim milk using curd culture from
National Dairy Institute (NDRI).Milma curd contains 0.5% fat and 9.0% SNF. It is delicious,
tasty, and free of cholesterol which makes it ideal for curries. Milma curd is available in
400ml cup with a market price of Rs. 45/-, 200 ml cup with market price of 24 /-and 80gm
cup at a market price of 10/- . Double tonned curd of 500ml sachet is available at Rs. 27/- 4.
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4. GHEE
Milma Ghee Contains 99.7 % milk fat and is manufactured by melting fresh cream. Natural
aroma and flavour of ghee is retained since it is produced directly from fresh cream instead of
going in for melting stored butter.
No artificial colours or flavours are added in Milma ghee. Milma Ghee is available in 50 ml,
100 ml, 200 ml, 500 ml, 1 litre, 15 litre and their market price are 31/-, 57/- , 110/-, 260/-,
500/-, 8040/-. Ghee is the only exporting products of Milma.
5. PEDA
An indigenous milk product manufactured by evaporating water content from wholesome
cow‟s milk and sweetened with cane sugar. No colour or preservatives are added. It is
nutritious and delicious sweet bite for children and it is available in 20 gm and in 10 pieces
box which cost Rs. 60/-.
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Also jack fruit peda is also available at Rs. 100/- 6.
6. PANEER
Paneer also called chenna is a milk product made by coagulating boiled hot whole milk with
citric or lactic acid and subsequent drainage of whey.
It is fresh source milk protein and has good flavour and smooth texture. It is used in
preparation of various dishes. paneer is available in 100gm at Rs. 40/- 200 gm at Rs. 75/- 1
kg at Rs. 310/-
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7. STERILIZED TONNED MILK (MILMA PLUS)
It is available in various flavours. The price of these types of sterilized tonned milk is Rs.22/-
. This product is one of the new product that was producing in milma dairy plant .It is
available in 200 ml single service glass bottle.
8. LASSI
Lassi is also available in various flavours like pineapple,mango.It is available in bottles at
Rs.25/-
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3.3 MURALAYA
Muralya Dairy Products Pvt Ltd., part of the SFC Group based in UAE aims to produce dairy
products of international quality. The company also strives to introduce new benchmarks in milk
production, procurement and distribution of dairy products in the regions it operates in.
Vision
Muralya Dairy is committed to the production and supply of Dairy Products of excellent
quality and internationally accepted food safety standards ensuring customer delight,
implementing a strong food safety management system, from “Farm to Plate”, adopting
sustainable environment friendly practices.
Mission
Muralya Dairy ensures continual improvement of its processes by regular reviews, updating
technology, providing adequate resources and through appropriate communication within the
food chain.
Values
Muralya Dairy believes in building strong bonds of TRUST with all stakeholders, customers,
employees, business associates, vendors and investors by adhering to the highest standards of
Corporate Good Governance.
COMPANY LOGO
COMPETITORS
PUBLIC SECTOR
 MILMA
 KSHEERA
PRIVATE SECTOR
 AI MILK AND PRODUCTS
36
Industries Food Production
Company size 51-200 employees
Headquarters Trivandrum, Kerala
Type Privately Held
Founded 2010
Specialties Milk Products, Dairy Products, and Milk
Website http://muralyadairy.com/
 ROYAL MILK AND
 CAVIN’S
 SAKTHI
Muralya Dairy - Kerala's first international milk brand.
CSR ACTIVITIES
Welfare
‘SERVICE is man to service is god’ The Foundation’s effort in this realm are all
encompassing, and phenomenal for an independent initiative of this nature. It has adopted the
agriculture village.
Process
At Muralya, we take our commitment to quality very seriously by strictly screening milk at
the production and procurement levels itself for detection of adulterants, hormones,
antibiotics and neutralizers. In fact the pursuit of delivering ‘international quality’ is what
drives us forward.
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MURALYAPRODUCTS
1. MILK
Muralya Milk has in a very short period of time been able to gain wide spread acceptance for
meeting the highest quality standards in the markets it operates in. The milk we produce is of
far superior standards and comes in an innovative PET bottle – for the first time in South
India.
Muralya Milk is available in 1 litre PET bottles and 500 Ml sachets.
2. CURD
Muralya Curd is made of the freshest and purest milk and processed at our fully mechanized
plant.
It is available in the market in 90/200/400 g cups and 500 g sachets.
3. GHEE
Muralya Ghee is produced from finest cow’s milk and is rich and pure with a distinct golden
colour and aromatic flavour.
Ghee is available in 50/100/200/500 ml bottles.
4. SAMBHARAM
Muralya Sambharam (Buttermilk) is made from the purest milk and has a distinct tangy
flavour from the mix of spices that makes it a pure, energetic and refreshing drink suitable for
everyone. This drink offers the healthiest way to stay refreshed and face the heat at all times.
Available in sachets and cups.
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CHAPTER-4
DATA ANALYSIS
39
4.1 SWOT ANALYSIS
Introduction
SWOT Analysis is nothing but analysis of a company or organization on the basis of its
Strength
Weakness
Opportunity and
Threat
Importance and Uses of SWOT
SWOT analysis is used to identify and categories significant internal factors (i.e. strengths
and weaknesses) and external factors (i.e. opportunities and threats) faced by
the organization. It provides information that is helpful in matching the firms' resources and
capabilities to the competitive environment in which it operates and is therefore an important
contribution to the strategic planning process. It should not be viewed as a static method with
emphasis solely on its output, but should be used as a dynamic part of the management and
business development process.
SWOT analysis involves the collection and portrayal of information about internal and
external factors that have, or may have, an impact on the evolution of an organisation or
business. It generally provides a list of an organisation's Strengths and Weaknesses as
indicated by an analysis of its resources and capabilities, plus a list of the Threats and
Opportunities identified by an analysis of its environment. Strategic logic requires that the
future pattern of actions to be taken should match strengths with opportunities ward off
threats and seek to overcome weaknesses.
People directly involved in various hierarchical levels of decision making in an organisation
or business, or a wider sample of actors are involved if the SWOT analysis concerns a whole
region or nation. Representatives from a variety of stakeholders groups should be involved,
as they would bring in the analysis their own particular perspectives. At least one expert in
SWOT analysis should take part or moderate the process.
40
4.1.1 SWOT ANALYSIS OF AMUL
AMUL’S STRENGTHS
1. Exceptional Growth
Amul has seen exceptional growth in the past seven years. The company continues its
adaptive and evolutionary mechanism as it has done for decades. India has placed many
investments in its dairy industry, and the company has justified its position. Currently, the
company is setting its sight to achieve record growth with its INR 50,000 crores target in
2020.
2. Large Production Capacity
Amul is a brand managed by the GCMMF (Gujarat Co-operative Milk Marketing Federation
Ltd), a cooperative body that provides about 17.7 million liters of milk per day. Its production
capacity led the GCMMF to join the ranks of the top dairy organizations in the world. In Sept
of 2018, Amul was ranked at the 9th position according to the survey of the IFCN
(International Farm Comparison Network).
3. Market Leader
Amul has positioned itself as the market leader in India because of the organized ice cream
sector which has a 1/3rd market share in the country. The ice cream sector is expected to grow
by 30% in the coming years, whereas its flavored milk and cheese products have been
forecasted to grow above 20%.
4. Brand Recall and Equity
Amul has become the favorite for many Indians because of its genius Amul baby
campaign that evokes beauty and emotion on every occasion. It has cemented Amul’s
brand recognition especially when it comes to brand recall and equity. There are only a
handful of milk-based brands available that have the same public image like Amul in
India.
41
5. Best Quality
Amul has been entrusted with a strong and loyal customer base owing to its standard
persistent quality production. Amul has maintained its operation with adequate
transparency for decades forming a good relationship with the government and the health
department. The appraisal from such entities over its products has only added to its
credibility and customer retention.
6. Huge Customer Base
Amul has the amazing quality of transcending the urban demographic and reaching the rural
areas. This allows it to have distinctive leverage over its competition as it expands its
consumer base and maintains a presence in every corner of the country.
AMUL’S WEAKNESSES
1. Lawsuits
The brand faced an internal crisis after it chose to advertise its products by disparaging its
rival competitors. This promotion did not go unnoticed by one of its competitors HUL
(Hindustan Unilever Limited) which filed a lawsuit against the dairy company and took it
to court. HUL won its lawsuit at the Bombay High Court in 2017 and demanded that
Amul should stop its condescending advertising immediately. It has tarnished Amul’s
image as an elitist, utilizing arrogant and unfair methods to beat its competition.
2. Operational Cost
The operational cost for Amul is enormous thanks to its massive structure. This becomes a
liability for the company as Amul experiences multiple pricing changes and is dependent on
its farming unions and community whose needs are growing every day. Amul does not have
an effective mechanism in place to face these challenges which is risky given the
unpredictability of supply.
42
3. Portfolio Expansion
Amul has diversified its dairy products variety, but it has not experienced similar success
in its other productions. The best example is its chocolate products that have not reached
the same level of success as its ice creams. Amul’s portfolio expansion is crucial for its
brand image.
AMUL’S OPPORTUNITIES
1) Per Capital Milk Consumption
Amul can increase its per capita milk consumption which is generally 97 liters per year,
much lower than that of countries like the USA or the EU. The demand for milk products
continues to grow, and Amul has enough resources to capitalize on this demand.
2) International Markets
Amul has the capacity to explore its reach in the international markets. It can access more
Asian markets from neighboring countries to other regions and operate accordingly. Its
international exports will increase their margins and turnovers rapidly.
3) Chocolate Production
Amul can invest generously in its chocolate production and thrive in the chocolate selling
business. With adequate advertising, it can become its greatest
AMUL’S THREATS
1) Increasing Competition
Amul increasingly faces fierce competition in the Ice Cream sector. More and more
companies and brands both local and foreign are invading its markets and overtaking its
sales. Competitors like Kwality Walls, Mother Dairy, Baskin Robbins, London dairy, and
Havmor are a few names that directly threaten its business.
2) Negative Media Coverage
Negative media coverage has not been beneficial for Amul’s operations. It has affected its
sales and forced them to issue statements garnering unwanted media attention.
43
Conclusion
The SWOT analysis of Amul makes it clear that it stands victorious and emerges as a winner
at all fronts. A national pride for its citizens, Amul has to take the plunge and retain
confidence in expanding in the global markets. With sufficient advertising and promotions,
Amul can achieve worldwide success.
4.1.2 SWOT ANALYSIS OF MILMA
STRENGTHS
a) Milma has 9th position in the list of top dairy companies in India.
b) High quality product
c) Milma has and maintains a good brand name in the Kerala dairy market.
d) ISO certification.
e) It meets the market demand properly.
f) Adequate support from NDDB and Government of Kerala .
g) Eco- friendly plant.
WEAKNESSES
a) Increasing cost of procurement of raw milk and material.
b) Inadequate sales promotion campaigns.
c) Inadequate sales outlets in rural areas.
d) Absence of technology up gradation programs.
e) Political interference in formulating policies.
f) Faces milk shortage.
g) There is no Research and Development department which is considered as an
important one in any organization.
h) Just meeting the demands of the market rather creating more demand.
i) Low advertisement and promotional activities for products other than milk.
44
OPPORTUNITIES
a) Scope of product diversification.
b) The company can expand its distribution area.
c) The organization can increase its goodwill and profit if it gives more emphasis on
exports.
d) More opportunities to create demand in rural areas.
e) Government support, i.e. subsidies tax concession.
f) Good scope for capturing huge market share in the milk products category.
g) Scope to process more milk from other states, thus increasing productivity.
h) Large product range.
i) Increasing level of advertisements and related activities can lead to increase in sales at a
higher rate.
THREATS
a) The increasing intervention of milk powders of various companies in market is a major
threat for the organization.
b) Faces milks shortage within state.
c) The pricing mechanism is not flexible, which may lead to change in preference of
customers.
d) Seasonal fluctuations in the availability of raw materials.
e) New competitors may reduce market share.
Conclusion
Milma is observed to be an organisation that not only has an objective of working profitably
but also a socially responsible organisation that cares of different sections of the society viz;
the milk producers, and the milk consumers. Milma has a major role in channelizing milk
from rural areas to urban areas to maximize the return to produce. The motto of Milma,
“Your health is our concern”, has become synonymous for assured quality.
45
4.1.3 SWOT ANALYSIS OF MURALYA
STRENGTHS
1. Enhanced milk production with consequently increased availability of milk processing.
2. Improved purchasing power of the consumer.
3. Improved transportation facilities for movement of milk and milk products.
4. Increased availability of indigenously manufactured equipment.
5. Large number of dairy plants in the country.
6. Vast pool of highly trained and qualified manpower available to the industry.
7. Country's vast natural resources offer immense potential for growth and development of
dairying.
WEAKNESSES
1) Lack of appropriate technologies for tropical climate conditions.
2) Erratic power supply.
3) Lack of awareness for clean milk production.
4) Underdeveloped raw milk collection systems in certain parts of the country.
5) Seasonal fluctuations in milk production pattern.
6) Regional imbalance of milk supply.
7) Species-wise variation in milk quality received by dairy plants.
8) Scarce capital for investment in the dairy development programmes on a priority basis.
9) Absence of proper data records which is essential for preparing development
programmes.
10) Dairy development programmes have not been fully implemented as per the needs of the
region in different agro-climatic zones.
11) Lack of marketing avenues for the dairy produce.
12) Non-availability of software for preparing needed dairy schemes/projects.
13) Lack of infrastructure for offering Dairy Business Management programmes to train dairy
personnel.
46
OPPORTUNITIES
1) Greatly improved export potential for milk products of western as well as traditional
types.
2) Expanding market for traditional dairy products.
3) Increasing demand for fluid milk as well as value added products.
4) By product utilization for import substitution.
5) Employment generation.
6) Growing demand for milk and milk products.
7) Liberalized polices in dairy sector.
8) Availability of large resources of unconventional feeds and fodders.
9) Availability of diverse germ plasm with unique features like heat tolerance, disease
resistance, draftability and ability to survive and produce under stress conditions.
10) Availability of animal production technologies for faster development and effective
implementation.
11) Integrated structure of marketing for milk and milk products.
12) Integrated structure of livestock marketing through regulated markets.
13) Improved collection of data on contract basis through agencies.
14) Market information intelligence system for milk and milk products.
15) Development of software for project formulation for dairy enterprise.
THREATS
1) Introduction of foreign products in Indian market.
2) Increasing chemical contaminants and residual antibiotics in milk.
3) Poor microbiological quality of milk.
4) Export of quality feed ingredients particularly cakes under the liberalization policy.
5) Deficiency of molasses, a rich source of energy and binding agent in feed industry
and constituent of urea molasses mineral lick.
6) Excessive grazing pressure on marginal and small community lands resulting in
complete degradation of land.
7) Extinction of the indigenous breeds of cattle due to indiscriminate use of
crossbreeding programme to enhance milk production.
47
4.2 PORTER’S FIVE FORCES MODEL
Porter’s five forces model refers to a framework based on the competitive analysis,
introduced by Harvard Business School Prof. Michael E. Porter. The model
determines the intensity of competition in any industry is a mix of five competitive
factors operating in different areas of the whole market. The framework is an
outside-in strategy tool for the business unit that evaluates the attractiveness
(profitability) of an industry. Thus,helps the business-persons to identify existing
and potential lines of business. It is a useful tool for accurately diagnosing
important competitive elements in the market, as well as determining the strength
and significance of each five forces.
Source: https://www.google.com
The five forces are frequently used to measure competition intensity, attractiveness, and
profitability of an industry or market. Porter's five forces are:
1. Competition in the industry
2. Potential of new entrants into the industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products
48
4. 2 . 1 A M U L D A I R Y FIVE FORCES MODEL
This is the thorough description of the Porter's design of five forces of Amul Dairy Company.
Competitiveness
Amul Dairy is one of the leading company in this competitive industry with a number of
strong rivals like Unilever, Kraft foods and Group DANONE. Amul Dairy is running well in
this race for last 150 years. The competition of other companies with Amul Dairy is quite
high.
Threat of New Entrants
A number of barriers are there for the brand-new entrants to happen in the customer food
industry. Only a few entrants succeed in this market as there is a need to comprehend the
customer requirement which needs time while recent rivals are aware and has progressed
with the customer commitment over their items with time. There is low risk of new entrants
to Amul Dairy as it has quite big network of distribution worldwide dominating with well-
reputed image.
Bargaining Power of Suppliers
In the food and beverage industry, Amul Dairy owes the largest share of market needing
greater number of supply chains. In reaction, Amul Dairy has also been concerned for its
suppliers as it believes in long-term relations.
Bargaining Power of Buyers
Cost of switching to competitor brands: The switching of brands is seen very much in
products such as ice cream, curd, milk powders, milk additives etc. but it can be seen
comparatively less in liquid milk category. The other brands which provide the same products
as Amul for ice cream are Vadilal, Quality Walls etc. And the competitors for the milk
markets are mainly local or regional marketers. For e.g., Nandini dairy in Karnataka is a
competitor for Amul.
49
Large number of buyers: Milk is a necessity product and hence is a mass product. It
has a considerable share of the rupee spent by any Indian. A study shows that in urban areas
about 36% of monthly per capita expenditure was on food items. Out of that, around 10%
was spent on milk and milk products. Moreover the buyers are spread evenly over the country
and do not have any bargaining power. The buyers we are referring to in this scenario are the
common man or any individual who is health conscious and considers milk as a substitute for
daily nutrition value.
Threat of Substitutes
There has been a terrific risk of replacements as there are alternatives of some of the Nestlé's
items such as boiled water and pasteurized milk. There has actually also been a claim that
some of its items are not safe to use leading to the reduced sale. Therefore, Amul Dairy began
highlighting the health advantages of its items to cope up with the substitutes.
Competitor Analysis
Amul Dairys covers a number of the popular customer brands like Package Kat and Nescafe
and so on. About 29 brand names amongst all of its brand names, each brand made an
earnings of about $1billion in 2010. Its major part of sale remains in North America making
up about 42% of its all sales. In Europe and U.S. the leading major brand names sold by
Amul Dairy in these states have a great respectable share of market. Likewise Amul Dairy,
Unilever and DANONE are 2 big markets of food and drinks along with its main rivals. In
the year 2010, Amul Dairy had made its annual revenue by 26% boost since of its increased
food and beverages sale specifically in cooking things, ice-cream, drinks based upon tea, and
frozen food. On the other hand, DANONE, due to the increasing rates of shares resulting a
boost of 38% in its profits. Amul Dairy decreased its sales expense by the adjustment of a
brand-new accounting treatment. Unilever has number of staff members about 230,000 and
functions in more than 160 countries and its London headquarter. It has actually become the
second largest food and drink market in the West Europe with a market share of about 8.6%
with just a distinction of 0.3 points with Amul Dairy. Unilever shares a market share of about
7.7 with Amul Dairy becoming very first and ranking DANONE as 3rd. Amul Dairy attracts
regional costumers by its low expense of the item with the regional taste of the items keeping
its first place in the international market. Amul Dairy business has about 280,000 employees
50
and functions in more than 197 nations edging its competitors in numerous regions. Amul
Dairy has actually also lowered its expense of supply by introducing E-marketing in contrast
to its competitors.
The Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), which markets milk and
dairy products under the Amul brand, said that it will grow at 20% in 2019-20 on the back of
milk-based products and ethnic flavours. Amul have grown by more than 22% and we are
expecting growth of 20% in 2019-20. Last year, we registered 13% growth purely on volume
basis, as there was no increase in product prices. This growth will be driven by increase in
purchasing power, better power infrastructure, which will lead to sale of chilled products in
rural areas, and no increase in prices," said R.S Sodhi, managing director, GCMMF, on the
sidelines of a sponsorship event. Amul announced that it will be the sponsor for the
Afghanistan cricket team for the ICC World Cup. The company reported a total turnover
of ₹33,150 crore, growing at 13% in 2018-19. dairy business, which is growing at 14%,
Sodhi said milk-based products such as lassi and shakes are growing at 15-20%. The recently
launched fruit beverage brand ‘Tru’ is registering 12-15% growth.
“We have witnessed a change in the consumption pattern of Indian consumers as they are
demanding localized products and ethnic flavours. They feel such products are fresh, meet
their taste requirement and are affordable. Our ambition is to become a ‘city brand’ in the
consumer mind space. In the food segment, people want local brands. We are offering lassi,
sweet yoghurt and buttermilk, which is growing because of high demand," added Sodhi.
Amul has been selling more than 25 variants of shakes, lassi, and flavoured milk. The
company, which launched Tru range of fruit beverages with a base of milk solids in four
flavours, plans to make a big splash in the category, with increasing number of consumers
moving away from carbonated drinks.
Allaying fears regarding a slowdown in consumption growth, as is evident in the March
quarter results of some large fast-moving consumer goods (FMCG) companies, Sodhi said
Amul is not worried on a demand slowdown.
“With income levels increasing, the first category any household will spend on is food and
FMCG products. High-end product categories might witness a slowdown, but not food
consumption."
51
4.2.2 MILMA FIVE FORCES MODEL
THREAT OFNEWENTRY
 Milma have well established brand names and fully differentiated price.
 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
 Milma have high brand loyalty among customers 4 0o the threat of new
entry is very low for milma
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
 Consumers have intense knowledge about products of Milma bargaining
 power of suppliers is low in case of Milma.
BARGAINING POWER OF BUYERS
 Concentration of buyers are more
 Buyer has full information about products of Milma
 Milma is comprised of large numbers of relatively small sellers.
 Buyers purchases are a suitable percentage of the selling industrys total sales of the
power of buyers are high in Milma.
THREAT OFSUBSTITUTE
 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
 Here are substitutes in soya based formulas or goats3 milk, but the
 Demand for them are low and does not pose a more threat to cows milk.
 Buyer have less propensity to substitute Milma products of the threat of substitute is
low in Milma.
52
COMPETITIVERIVALRY
Competitors are numerous for Milma
 Products are undifferentiated
 Consumer switching costs are low
 Exit barriers are high.
 Competitors are strategically diverse So competitive rivalry is high in Milma.
4.2.3 MURALYA FIVE FORCES MODEL
THREAT OF NEW ENTRANTS
 New entrants are encouraged and assisted by various schemes by Government.
 Requires high capital investment and difficult to achieve economies of scale.
 Access to very complex and well established distribution channel.
 Customer Loyalty.
BARGAINING POWER OF BUYERS
 Presence of multiple competitors as well as local Doodhwaalas.
 Home delivery and freshness of local dairy products form local Doodhwaalas make this
more complex.
BARGAINING POWER OF SUPPLIERS
 Mainly the suppliers are rural milk producers and thus their bargaining power is low.
 Product and process development and innovations.
 Home delivery and freshness of local dairy products form local Doodhwaalas make this
more complex.
THREAT OF SUBSTITUTES
Although many substitutes in drinking arena when compared with milk are available, the
industry enjoys high profitability in case of other dairy products.
53
RIVALRY AMONG COMPETITORS
 Large number of competitors Local Doodhwaalas.
 Increased advertising expenditures, or spending on service/product improvements and
innovation.
4.3 BCG MATRIX
BOSTON CONSULTING GROUP (BCG) MATRIX is developed by BRUCE
HENDERSON of the BOSTON CONSULTING GROUP IN THE EARLY 1970’s.
According to this technique, businesses or products are classified as low or high performers
depending upon their market growth rate and relative market share. BCG Charts are divided
into four type of scenarios. Stars, Cash Cows, Dogs and Question Marks.
54
STAR HIGH GROWTH, HIGH MARKET SHARE
• Stars are leaders in business.
• They also require heavy investment, to maintain its large market share.
• It leads to large amount of cash consumption and cash generation.
• Attempts should be made to hold the market share otherwise the star will become a
CASH.
COW: CASH COWS LOW GROWTH , HIGH MARKET SHARE
 They are foundation of the company and often the stars of yesterday.
 They generate more cash than required.
 They extract the profits by investing as little cash as possible.
 They are located in an industry that is mature, not growing or declining.
DOGS LOW GROWTH, LOW MARKET SHARE
• Dogs are the cash traps.
• Dogs do not have potential to bring in much cash.
• Number of dogs in the company should be minimized.
• Business is situated at a declining stage.
QUESTION MARKS HIGH GROWTH , LOW MARKET SHARE
 Most businesses start of as question marks.
 They will absorb great amounts of cash if the market share remains unchanged,
(low).
 Why question marks?
 Question marks have potential to become star and eventually cash cow but can also
become a dog.
 Investments should be high for question marks.
55
4.3.1 BCG MATRIX ANALYSIS OF AMUL
The Cash Cows
Amul’s ‘Cash Cow’ is coincidentally its cow milk. Looking at it more closely, we can also
surmise that Amul Butter, and Amul Cheese, are also its ‘Cash Cows’. These three products
generate a steady, high revenue to fuel the other products of the brand. They hold high shares
in markets that have relatively low growth. That is saying something, considering the amount
of brands and popups in the dairy industry due to the changing trends.
The Stars
This category of products is the focus of the show. On one hand you have the ever-reliable
‘Cash Cow’ with a constant influx of cash- as its name suggests, on the other hand you have
the ‘Star’- which not only brings home the bucks, but also rings in 1st in the popularity
contest. Amul yet again has more than one product in this category- Amul Ghee, and Amul
Ice Cream. ‘Star’ products have the characteristic of holding a high market share, in markets
with high growth potential- the most desired quadrant. Companies often invest a lot of cash
that comes in from the ‘Cash Cow’ category into the ‘Star’ products’ promotions, and
development. Amul Ice Creams have very targeted advertisements, and are constantly being
worked on to become more appealing to the public by the use of words like ‘creamy’,
‘medium-fat’, etc.
The Question Marks
As the name suggests, ‘Question Mark’ products aren’t those that have a questionable future.
They are just products that have potential to grow, but require a little more attention and
careful planning to go the right way. Often companies employ funds for researching into the
scope of the ‘Question Mark’ products. These products are in high growth markets with a low
market share. They essentially can also become the rising ‘Star’ products with the correct
attention, and investments. Amul Lassi falls under this category as it already is in a highly
populated market. However, it is steadily making a name for itself against its close
competitors like Aarey and Govardhan. The advertisements for Amul Lassi are also targeted
to make it a faster growing product.
The Dogs
This category kind of suggests that the company/brand does not see much potential in these
products. The ‘Dog’ products for Amul will be Amul Cookies, and Amul Pizza. These
products have a low growth and market share- often seen as not profitable for the company.
56
Thus, the companies don’t invest much in product changes or promotions. They are often
either discontinued, or kept in low production.
Amul products in the BCG Matrix
STARS
-amul pure ghee range
-amul cheese spread
-Amulkool
-Amul icecreams
-Amulya dairy whiteners
QUESTION MARK
-Amul masthidahi
-Amul lassi
-Amul mithaimate
-Amul mithai range
-Boxed milk range(UHT)
CASH COW
-Amul fresh milk range
-Amul butter range
-Mozzarella cheese
DOGS
-Amul chocalates
-Nultramul energy drink
-Amul Shakti
-Infant milk range
-Amul pizza
57
Dogs
4.3.2 BCG MATRIX ANALYSIS OF MILMA
These are the products with low growth or market share
Dogs are those products that have low growth or market share and have a very limited chance
of growing into a profitable business unit for the company.
CASH COWS
These are the products which are in low growth markets with high market share.
When the market share of a product is high and is being sold in an industry that is not
expected to see any significant growth in the future, then the product can be considered as a
Cash Cow.
Cash Cow business units or products are the best revenue generators for the organization and
require very low investment to sustain their profitability.
STARS
These are the products which are in high growth markets with a high market share.
There are some products which have high market share and have the potential to grow more
in the future. The industry dynamics are also supportive of the growth as the industry is in the
phase of development as well. These products have the potential of being positioned as cash
cows owing to the growth prospects.
QUESTION MARKS
Products in high growth markets with a low market share.
These are the business units or products which are the problem child for an organization
because of the uncertainty that they hold. Either these products or business units can become
a revenue generator for the company by taking the position of a star or can become a source
of loss for the company.
58
STAR
High growth markets with a high market share.
Fresh milk,
Ghee, Milk powders
Ice cream
QUESTION MARK
High growth markets with a low market share.
Fat free cooking dessert
Cooking chocolate
Soups
Lassi ,diabetic products,
Healthy products
CASH COW
Low growth markets with high market share.
Products like
Srikhand,
paneer and butter
DOG
Low growth or market share
Products like
sterilized paneer,
cow ghee,
Confectionary items
59
4.3.3 BCG MATRIX ANALYSIS OF MURALYA
CASH COWS
muralya’s ‘Cash Cow’ is coincidentally its cow milk.Muralya commitment to quality very
seriously by strictly screening milk at the production and procurement levels itself for
detection of adulterants, hormones, antibiotics and neutralizers. In fact the pursuit of
delivering ‘international quality’ is what drives us forward.
The eight-step Cold Chain Process is universally proven for its ability to deliver milk
products of the highest quality to consumers. At Muralya Dairy, we use cutting-edge
international technology at all the mechanised stages of the Cold Chain Process.step 1 - The
cow, step 2 - Bulk milk chiller, step 3 - Insulated road milk tankers, step 4 - Processing plant
silos, step 5 - Processing procedure, step 6 - Refrigerated trucks, step 7 - Sale depots,step 8 –
Retailers
 High market share and low market growth.
 Doing well in no growth market with limited opportunities.
DOGS
 Low market share and , low market growth
 Weak in market, difficult to make profit.
STARS
 Highly experienced management team and pleasant work environment.
 Company support is better for ever.
 High market share and high market growth.
 Doing well great opportunites.
QUESTION MARKS
 Low market share and high market growth.
 Don’t know what to do with opportunities; decide whether to increase investment.
60
61
CHAPTER 5
FUTURE PROSPECTS
62
5.1 FUTURE PROSPECTS OF DAIRY INDUSTRY
The future target of the national milk production is 254.5 million tonnes by 2021-22 and to
bring more than 50 % of milk produced under the organized sector for procurement as against
the present 25%.To meet these targets and to enhance the milk handling levels, it is necessary
to produce professionals, who understand the nature of this highly perishable natural food
product. In this scenario, dairy technology education has a lot of scope. After completing
B.Tech (Dairy Technology), the pass outs can get employment in various areas like milk
procurement, milk processing, milk quality check etc in private as well as cooperative milk
plants. They can also get employment in the food industries dealing with functional foods &
infant foods and industries dealing with dairy equipment & machinery.
5.1.1 FUTURE PROSPECTS OF AMUL
Gujarat Co-Operative Milk Marketing Federation, which markets its range of products under
the Amul brand, plans 40-60 new products in the next two years. It believes this will enable
annual turnover of Rs 50,000 crore by 2021.
In the past four years, it has launched 101 products.
The new products, mostly high margin, will primarily belong to the categories of yogurts,
cookies (biscuits), shortbreads (nan khatai), fresh mithai (sweetmeat) and milk-based
beverages.
After coming up with its butter cookies range in the western part of India, the company plans
to launch it across the country within the next quarter. Thereafter, variants like cashew,
cumin seed (jeera) and others.
63
5.1.2 FUTURE PROSPECTS OF MILMA
The Thiruvananthapuram region of the Cooperative Milk Producers’ Union (Milma)
will conduct Milma Gramolsavam 2020 to collect ideas and suggestions from dairy
farmers, milk societies, technical experts, people’s representatives and the public.
“The recommendations will be later catalogued to form Milma 2025, a five-year
plan for the comprehensive development of the sector. Attaining self-sufficiency in
milk production and economic stability of dairy farmers and strengthening of milk
societies will be the major objectives of the plan,”
ISO certification for village-level bulk chilling centres, a ₹40-crore loan scheme in
association with South Indian Bank for buying cattle, product diversification and
training for dairy farmers at Anand, Gujarat, are the other projects to be
implemented this financial year.
Haritha Milma
Milma will launch Haritha Milma, an initiative to promote organic farming, and
Milma Cow Bazar, a mobile app for buying and selling cattle. Dairy farmers will be
encouraged to start organic vegetable farming and 11 farmer groups will be formed
in the four districts under the region.
“As part of the ₹25-lakh project, the farmers will be provided everything from
vegetable seeds to fertilizers to start farming,”
Plastic-free
Milma has also prepared an action plan to go plastic-free in the future. In the first
phase, five milk ATMs will be opened at five centres in Thiruvananthapuram city.
Meanwhile, the Green Kerala Company will be in charge of collecting Milma
covers from customers on a daily basis.
64
5.1.3 FUTURE PROSPECTS OF MURALYA
Muralya Dairy Products Pvt Ltd (MDPL) is a flagship project of SFC Group of Companies,
owned by Mr. K. Muraleedharan, renowned entrepreneur and international business
personality, based at Abu Dhabi in UAE. The SFC Group was formed in the year 1989 and
today it has business interests in diverse fields such as Hospitality & Leisure, Information
Technology, Real Estate, Education and Healthcare with a footprint across UAE and India.
Presently, employing over 2500 people from more than 15 nationalities in these varied
business fields, the group has successful and trusted brands in all their business verticals.
The Dairy is part of an ambitious plan to make available milk and milk products that match
international quality by creating Kerala’s first fully integrated and automated dairy and
international dairy brand. Muralya has already commissioned its own Dairy Farms, which
when fully operated, will become the largest of its kind in India.
In the future, Muralya Dairy aims to pioneer new and innovative products with a diversified
brand portfolio and established a footprint across South India.Muralya Dairy is proud to bethe
first Dairy in Kerala to introduce Fortified Milk (F+ Milk) to consumers. With Fortified
Milk, Muralya Dairy aims to make a positive impact in society with regard to health.
What is Fortified Milk
Milk is fortified by adding essential nutrients such as Vitamin A and Vitamin D. Vitamin A
helps in good vision and in preventing Night Blindness and Vitamin D helps in absorbing
Calcium and for keeping your immune system intact.
Why Fortified Milk
Milk is a good source of Vitamin A and D. However, the levels of both these Vitamins are
not enough to meet the daily requirements of human body. The Food Safety and Standards
Authority of India (FSSAI) permits and advocates the Fortification of staple foods and has
notified standards which will be effective from July 2019. By providing the right nutrition to
the children and our population we help in contributing to a healthier nation. Addition of
these micronutrients serves to enhance further goodness of milk. It is ideal for growing
children’s dietary needs.
65
CONCLUSION
Modern dairies should work by judiciously building an efficient system integrating the
activities of several factors. The Dairy Council, the Cattle Breeders Association, The
Herdbook, veterinary services, insemination services, monitoring of milk, milking parlours
and dairies. All the cow's need should be supplied in its immediate environment so that the
cow's energy is devoted to milk production. The dairy industry has to integrate the feeding
system, genetic data, advanced milking system, milk transport and processing facilities,
administrative tasks, and skilled manpower.
Up-to-date information on each cow is essential to the achievement of high yield. The data is
to be recorded in Herdbook, which contains information on most of the cows, including the
geneology of many generations. The Herdbook is a reservior of accessible, computersied
data,. It is continuously updated by a flow of data about health and sickness, breeding, milk
production, physical data and any other information essential to sound dairy monitoring and
management. The data bank enabis real time retrieval of information.
The Herdbook is essential to the monitoring and management of herd improvement. A Milk
Monitoring Laboratory keeps track of the yield of cows every month. The lab data is
downloaded directly to the Herdbook's computer. The lab's task is to detect cows with a latent
infection of the udder and to gather milk production statistics on each cow and each dairy
farm.
66
BIBLIOGRAPHY
 https://www.essaycompany.com/essays/biology/dairy-industry-in-india-current-
perspective-and-status-biology-essay
 https://www.google.com/search?q=milma+ghee&tbm=isch&ved.
 https://www. Major advances in applied dairy cattle nutrition".
 https://www.Journal of Dairy Science. :
 https://www.IndiaDairy.
 https://www.investopedia.com/terms/p/porter.asp
 https://www.google.com/search?q=bcg+matrix+of+milma+dairy+images
 https://www.google.com/search?q=porter%27s+five+force+model
 https://pt.slideshare.net/search/slideshow?searchfrom=header&q=
 https://strategicmanagementinsight.com/tools/porters-five-forces.html
 https://www.slideshare.net/syedmohsin4/amul-
 https://www.google.com/search?q=bargaining+power+of+buyers+AMUL&tbm
 https://www.google.com/search?q=BCG+MATRIX+of+amul&tbm
 http://www.netmba.com/strategy/matrix/bcg/

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New print 2 arya

  • 2. 2 1.1 INTRODUCTION An internship means the position of a student or trainee who works in an organization, sometimes without pay in order to gain work experience or satisfy requirements for a qualification. The internship help the students to get real time experience of various aspects concerned with the organization. It provides more accurate picture of what an individual doing in certain profession. Due to impact of the widespread of COVID-19 pandemic, the internship program was not possible to acquire, in order to overcome this difficulty, University of Kerala suggested to identify any three organizations on a single industry/sector and thereby submitting a report under the guidance of an assigned faculty. Internships provide the platform to any B-School student to experience the middle management experience in real industry. This prepares the students knowledge and enable them to better prepared and thereby boosting up your profile and career prospects. It also offers the opportunity to work closely with professionals in the field and to develop knowledge, competencies and experience related to your career goals. But at the present scenario, the industries are being forced to avail remote working facilities and internships are rarely encouraged by the companies as the situations are not favourable. In such a condition, we have been assigned to carryout a detailed study on any sector of our choice and need to select any three companies for the purpose of study. A detailed analysis is to be done and the reports must be submitted based on our inferences. I have opted DAIRY industry and identified 3 companies for the study. The DAIRY industry is a broad, Milk is very essential for our daily life. Most people included milk in their diet as it is regarded as the complete food. Milk contains all the essential nutrients that are needed for humans. Identified companies from the sector are: 1. AMUL 2. MILMA 3. MURALYA
  • 3. 3 1.2 AMUL Amul is an Indian dairy cooperative society, based at Anand in the Indian state of Gujarat. Formed in 1946, it is a cooperative brand managed by a cooperative body, the Gujarat Co- operative Milk Marketing Federation Ltd. (GCMMF). Today is jointly owned by 36 lakh (3.6 million) milk producers in Gujarat. Amul spurred India's White Revolution, which made the country the world's largest producer of milk and milk products. Kaira District Milk Union Limited (later renamed to Amul) was founded in 1946 through the efforts of three men, Tribhuvandas Patel, Verghese Kurien and H. M. Dalaya. Amul's foundation was a significant contributor to the white revolution in India.Under the chairmanship of Tribhuvandas, Dr. Kurien was initially the general manager and helped guide the technical and marketing efforts of Amul. Dr. Kurien was the chairman of Amul . Kurien, founder- chairman of the GCMMF for more than 30 years (1973–2006), is credited with the success of Amul's marketing. Amul has ventured into markets overseas. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for dairy development (Generally known as “ANAND PATTERN”). GCMMF Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of Milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the largest Organization in FMCG industry engaged in marketing of Milk & Milk products under the brand names of AMUL and SAGAR with an annual turnover exceeding Rs 97.74 billion. GCMMF is a unique organization. It's a body created by Farmers, managed by competent professionals serving a very competitive and challenging consumer market. It is a true testimony of synergistic national development through the practice of modern management methods.
  • 4. 4 1.2MILMA Now well-known by the popular sobriquet ‘MILMA’or, Kerala Co-operative Milk Marketing Federation (KCMMF) was formed in 1980 as a state adjunct of the National Dairy Programme ‘Operation Flood’. It is a three-tiered organization. At the grassroots level MILMA has 3206 Anand model primary milk co-operative societies as on 31.03.2015 with 9.24 lakh local milk producing farmers as members. These primary societies are grouped under three Regional Co-operative Milk Producers’ Unions viz TRCMPU for Thiruvananthapuram region, ERCMPU for Ernakulam region and MRCMPU for Malabar region. At the apex level KCMMF functions from the headquarters at Thiruvananthapuram kerala,india. From the different units managed directly by KCMMF and the various units under regional unions MILMA produces and distributes pasteurized Vitamin – A enriched milk and various milk-based products as well as mango drink throughout the state. MILMA has been instrumental in achieving the national goal of self-sufficiency in milk production in the state. Still the goal is receding as Kerala enjoys one of the highest ranges of per capita milk consumption. KCMMF is totally content in the realization of this vision which was set before it. KCMMF has achieved the distinction in its performance by close association and bond with National Dairy Development Board, Animal Husbandry Department and Dairy Development Department of the State and Kerala Livestock Development Board. The Organisation has a three-tier structure with the primary milk Cooperative societies at the village level, Regional Milk Producers’ Unions at the middle level and an apex body at the State level which is the Kerala Cooperative Milk Marketing Federation Ltd. There are three Regional Cooperative Milk Producers’ Unions operating at present. The revenue districts of Thiruvananthapuram, Kollam, Alappuzha and Pathanamthitta. he three-tier structure ensures that the farmer members are directly responsible for policy level decisions for the marketing of their produce.
  • 5. 5 1.3 MURALYA Muralya Dairy products private limited is a private incorporated on 28th October 2010. It is classified as nongovernment company and is registered at registrar of companies, it is one of the top dairy products retailers in Kerala aims to produce dairy product of international quality, Muralya Dairy Products Private Limted , and part of the SFC Group based in the UAE aims to produce Dairy products of international quality. The company also strives to introduce new benchmarks in milk production, procurement and distribution of dairy products in the regions it operates in. Muralya, kerala first international Dairy brand is in the pursuit of making available milk and milk products that match international quality in the state, by the commissioning of India’s Largest Dairy Farm with over 4000 heads of cattle, muralya Dairy Farm aims to become India’s First Fully Integrated and Automated Dairy by producing and processing milk in a fully automated, state-of-the-art processing plant using German Technology. Muralya Dairy is committed to the production and supply of Dairy Products of excellent quality and internationally accepted food safety standards ensuring customer delight, implementing a strong food safety management system, from “Farm to Plate”, adopting sustainable environment friendly practices. Muralya dairy products are Milk- Muralya Milk is available in 1 litre PET bottles and 500 Ml sachets, Curd- It is available in the market in 90/200/400 g cups and 500 g sachets, Ghee- Ghee is available in 50/100/200/500 ml bottles, Sambharam- Available in sachets and cups. At Muralya, we take our commitment to quality very seriously by strictly screening milk at the production and procurement levels itself for detection of adulterants, hormones, antibiotics and neutralizers. In fact the pursuit of delivering ‘international quality’ is what drives us forward.
  • 6. 6 1.4 OBJECTIVES  To analyse the dairy industry as a whole.  To make a comparison of various players operating in dairy industry.  To identify the major strength, weakness, opportunities and threats of Amul, Milma, Muralya  To conduct porters five forces analysis.  To analyse the business portfolio using BCG matrix. 1.5 SIGNIFICANCE OF THE STUDY Dairying is an important source of subsidiary income to small/marginal farmers and agricultural labourers. The manure from animals provides a good source of organic matter for improving soil fertility and crop yields. The small/marginal farmers and land less agricultural labourers play a very important role in milk production of the country. Dairy farming is now taken up as a main occupation around big urban centers where the demand for milk is high. The milk produced by the rural milk producers and the same time provide wholesome, clean and nutritious milk and milk products to the consumers fully eliminating the middlemen in the dairy sector, thereby providing maximum return to its farmers. This internship program helps to find true practical knowledge getting from these programs and also understand the organization and its structure. 1.6 SCOPE OF THE STUDY The internship program enables to know about the various the scheme for diary, farming should include information on land, livestock markets, availability of water, feeds, fodders, veterinary aid, breeding facilities, marketing aspects, training facilities, experience of the farmer and the type of assistance available from State Government, dairy society/union/federation. In the scope of the study aims to covers the customers feedback and availability of products in retail shops and competitors approaches in milk market. The study gives the details about the milk procurement, production, processing, testing, packing and its distribution. The study also enables to know about the diary industry in Kerala, special emphasis given to Kollam district and marketing of milk products in Kerala.
  • 7. 7 1.7 LIMITATIONS  The impact of COVID-19 pandemic had confined the study through the data’s available on official site.  Direct interaction with the organization was not possible.  Some data are not available through secondary method. 1.8 DATA SOURCES The data utilized for the study is of secondary nature as it was impossible to fetch primary data due to the COVID-19 pandemic. The data had been collected from different official sites.
  • 9. 9 2.1 DAIRY INDUSTRY The Indian dairy industry has made rapid progress since independence a large number of modern milk and milk products factories have been established. These organized diaries have been successfully engaged in the routine commercial production of pasteurized milk and milk products. India is the world’s largest milk producer that is certified by the ‘international dairy industry’. Dairy is a place where handling of milk and milk products is done and technology refers to the application of scientific knowledge for practical purpose. Dairy technology has been defined as that branch of dairy science, which deals with processing of milk and manufacture of milk products on an industrial scale. In India, dairying has been practiced as a rural cottage industry since the remote past. Semi- commercial dairying started with the establishment of military dairy farms and co-operative milk unions throughout the country towards the end of nineteenth century. During the earlier years, each household in the countries maintained its ‘family cow’ or secured milk from their neighbour who supplied those living closed by. As the urban population increased, fewer households could keep cow for private purpose. The high cost of milk production, problems of sanitation etc. restricted the practice and gradually the family cow in the city was eliminated and city cattle were all sent back to the rural areas. Gradually farmers within easy driving distance began delivering milk over regular routes in the cities. This was the beginning of fluid milk-sheds which surround the large cities of today. Prior to the 1850s most milk was necessarily produced within a short distance of the place of consumption because of lack of suitable means of transportation and refrigeration. The Indian dairy industry has made rapid progress since independence. A large number of modern milk plants and products factories have since been established. These organized diaries have been successfully engaged in the routine commercial production of pasteurized bottle milk and various western and Indian dairy products. With modern knowledge of the protection of milk during protection, it become possible to locate dairies where land was less expensive and crops could be grown more economically. In India, the market milk technology may be considered to have commenced in 1950, with the functioning of the Central Dairy of Aarey Milk Colony and milk product technology in 1956 with the establishment of AMUL Dairy, Anand . The industry is still in its infancy and
  • 10. 10 barely 10% of our total milk production. The most valuable resources that a dairy business can have are reliable and productive workers. Today’s tight labour means that workers have many employment choices. Dairy producers need to do all they can keep their best employees and attract other excellent workers to their team. 2.2 IMPORTANCE OF DAIRY INDUSTRY Milk and dairy products play an important role in a healthy, balanced diet. They are rich sources of calcium which is easily absorbed by the body. This mineral, along with other nutrients present in dairy foods, such as protein, magnesium and phosphorus, is essential to build and maintain strong bones. Milk and milk products rank as a large secondary source of income to the farmer of country. Good number of Indians population in engaged in the production, processing and marketing of dairy products and many more are in needed to processes and bottle and deliver. Dairy farming is an important way for farmers to increase their earnings and access to more nutritious food for their families. While subsistence dairy farming provides not only fresh milk and a source of basic income, value-added products, such as yogurt and cheese provide a higher source of revenue. Dairying is an important source of subsidiary income to small/marginal farmers and agricultural labourers. The manure from animals provides a good source of organic matter for improving soil fertility and crop yields. Dairy farming is now taken up as a main occupation around big urban centers where the demand for milk is high. The dairy sector is one of the crucial sectors in the Indian economy that not only provides employment to millions of rural households but also contributes to the economy. Among the livestock products, milk consists of the highest share, and it accounted for 67.2 per cent of the livestock sector in 2017. India is self-sufficient in milk production because 73 million dairy farmers are engaged in the dairy sector, especially women. Regarding benefits to the farmer, around 60 per cent of the consumer price from milk goes to the farmer, which is the highest among major milk-producing countries (International Farm Comparison Network, Dairy Report, 2018). Importance of Milk in human diet  Skin glows, moisturisation ( Lactic acid factor).  Healthy bones and teeth (Calcium and Vit.-D factor).
  • 11. 11  Muscle power enhancement ( protein factor)  Excess Weight loss (from low fat or skimmed milk ) .  Less stress ( warm milk relaxes tense muscles and frayed nerves).  Lowering of high. 2.3 INTERNATIONAL SCENARIO The international dairy federation, with its head quarters Brussels, was established in 1903 and consists of 32 member countries throughout the world. UNICEF has been the motivating force for establishing a dairy industry in many under developed countries. One of these is in India, where large modern processing plants have been set up to process locally produced milk or to reconstitute milk from donated or purchased milk fat and powder. Domestic milk production has increased in India and a part of the pasteurized milk is provided free to children in the larger cities through UNICEF. The first co-operative artificial breeding association was organized in Denmark in 1936. There are now many such associations which helped the diary industries. After 1950s dairy industries faced a wide range of development throughout the world. The global dairy market reached a value of US$ 718.9 Billion in 2019. Dairy is defined as a business enterprise that deals with the processing and harvesting of animal milk for human consumption. Some of the common milch animals include cow, goat, buffalo, camel and sheep. The milk obtained from these animals can be consumed directly and processed into ice cream, cheese, butter, condensed milk and yogurt. These products offer various nutrients such as calcium, proteins, zinc, magnesium, and vitamin D and B12. With widespread demand for dairy products and their proactive function in the global food industry, dairy plays a crucial role in the growth of the economies worldwide. Over the years, the dairy industry has witnessed improvements in product safety through specialization, modernization and consolidation. Moreover, advancements in global trade have also influenced the profitability of dairy farms. Market Drivers: The rising demand for milk and milk-based ingredients is one of the primary factors supporting the market growth. This can be attributed to population growth, rising incomes, health consciousness and the thriving food and beverage industry. Another major trend in the industry is the incorporation automation technologies in dairy farms.
  • 12. 12 2.4 NATIONAL SCENARIO Indian dairy sector has come a long way from price independence era of acute milk shortage and dependent on foreign aid in the form of milk powder to meet the growing milk demand. As a result of this a dairy co-operative society was registered in 1913 for meeting this problem. Later Kaira District milk supply union was formed at Anand. It was an important land mark in the history of the co-operative dairy sector. Inspired by the achievements of this institution, the Government of India constituted a National Dairy Development Board in 1965. The White Revolution in India started in 1970 with the organising of small holder dairy farms under a three-tier co-operative system for organised production, procurement, processing and marketing of milk. It was implemented in three phases: 1970-81, 1981-85 and 1985-2000. The emergence of India as a premier dairy nation of the world could be attributed mainly to the intensive crossbreeding programmes implemented throughout the country over the last few decades. The population pressure and emerging global opportunities further necessitate that the efforts for enhancing animal productivity are accelerated. This calls for continuance of well-proven technologies such as crossbreeding with superior germplasm coupled with improvement in the productivity of vast population of generally low producing cattle and buffaloes at faster rate using emerging reproductive and molecular technologies. There is a great potential for application of multiple ovulation and embryo transfer technology for production and faster multiplication of superior germplasm of elite animals. There is also scope for identifying the unique genes specific to indigenous dairy animal genetic resources using the molecular techniques. It is expected that by the use of such technologies more number of superior animals per unit time can be obtained by reduction in generation interval which could further increase the pace of genetic advances by increasing the intensity of selection. Technologies for raising male buffalo calves economically should be developed as this potential source of income of farmers is almost going waste. Studies also need to be conducted to quantify the emission of methane and other green house gases from Indian dairy sector and methods also need to be devised for mitigating such emission. Besides meeting domestic demands, it may also be possible to export germplasm to tropical developing countries. In this context National Dairy Research Institute (NDRI) Karnal has also set the target of enhancing its semen production from the present level of about 0.1 million doses annually to about 2.5 million doses per year by 2020 A.D. Also about 400-
  • 13. 13 500 males from elite herds of Sahiwal, Crossbreds and Murrah, are proposed to be supplied every year for genetic improvement in the country. For improvement of various breeds of cattle and buffaloes there is a need to form Breed Societies. These departments could interact with various developmental agencies including Non-Governmental Organisations (NGOs) for this purpose. In all interactive programmes involving field recording, progeny testing and data bank should be taken to supply information on availability of semen, bulls, females etc. for consistent genetic improvement of livestock. To effectively monitor these programmes, there is an urgent need for linking them with bio-informatics centres at state, national and international levels. There is also an urgent need to develop national animal production and health information system and disease free zones in the country. The consumption pattern of dairy products in India is quite unique as compared to some of the Western countries. It has been noticed that Indian consumers are increasingly getting health- conscious and that the value-added dairy products industry is seeing a marginal growth. A change in consumer mindsets has led to various changes. Lifestyle alterations have led to an increase in the demand for value-added dairy products as compared to just the base product, liquid milk. As the spending capacity of Indians is increasing, so is their willingness to buy healthier, super foods which we like to call as value-added products. Value-added products in the dairy industry are products like “cheese, paneer, ghee, yoghurt, probiotic drinks etc. There is a strong increase in the demand for milk in India, partly due to the growing number of inhabitants. People are more attracted towards healthy food in one pack which can be fulfilled by the dairy products. The country is expected to count 1.5 billion inhabitants by 2035. ANAND PATTERN ANAND Anand pattern anand is a small village of farmers in Kaira District of Gujarat. ANAND Milk Union Limited is a Co-operative Society formed by the farmers of Anand Village for the purpose of distribution of milk. Now the world famous Anand Milk Union Limited is popularly known as Amul. The Anand Milk Union Limited has a three tier structure. 1. Village level Primary Co-operative Society called APCOS. 2. District Milk Producers Union. 3. State Level Milk Marketing Federation.
  • 14. 14 NATIONAL DAIRY DEVELOPMENT BOARD National Dairy Development Board was developed by the Government for the purpose of organising, planning and executing the dairy development programmes in the country. This board, with the help of government, got assistance valuing Rs. 120 crores under flood programmes. Under this scheme financial assistance was provided to various state governments and other agencies for implementing development scheme. OPERATION FLOOD Operation Flood is an important move in the history of dairy development in India. Operating Flood was conceived and formulated by National Dairy Development Board during the fourth plan. It aimed at establishing a broad base for acceleration and development of the dairy industry sponsored by the European Economic Community through world food programme. Operation Flood was conducted to meet India’s rapidly increasing need for milk and milks product, and making dairy industry capable of viable and self-sustaining growth. The ideology followed by Operation Flood was the remunerative linking of the rural milk production center with the urban demand center so as to build up a viable dairy industry. 2.5 STATE SCENARIO Dairy co-operatives were also developed in Kerala as a part of operation flood. Dairy co- operatives have a three tier structure in Kerala with primary milk supply society at the base and milk supply union at the district level and a state level federation. This co-operative society follows the Anand pattern of dairy development scheme. Apart from the state federation two regional unions were also formed in our state. Dairy Industry in Kerala- Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution”, offers an in-depth analysis of the Kerala dairy market. In 2020, the milk production in Kerala reached a volume of 2.5 Billion Litres. The state currently represents the twelfth largest dairy market in India. The milk production in Kerala mainly consists of cow milk and buffalo milk. The report’s analysis concludes that cow milk dominates the total milk production, accounting for majority of the total share. According to the report, the Kerala dairy market exhibited strong growth during 2015-2020.
  • 15. 15 The Kerala dairy market into 18 major product segments:  Liquid milk  Ghee  Curd  Paneer  Ice-cream  Table butter  Skimmed milk powder  Frozen/flavoured yoghurt  Fresh cream  Lassi  Butter milk  Cheese  Flavoured milk  UHT milk  Dairy whitener  Sweet condensed milk  Infant food  Malt based beverages For each of the product segments, the report provides a thorough analysis of the current and historical value and volume trends, market share of key players and market forecast. Currently, liquid milk represents the biggest product segment in Kerala, accounting for majority of the total market share. Some of the fastest growing segments include frozen/flavoured yoghurt, cheese, UHT milk, flavoured milk and butter milk. The competitive landscape of Kerala’s dairy market has also been examined in this report. Some of the major players covered in the report include Milma (Kerala Cooperative Milk Market Federation Limited), Malanadu, PDDP (Peoples Dairy Development Project Central Society) and Jeeva. Looking forward, IMARC Group expects the Kerala dairy market to grow at a CAGR of 15.7% during 2021- 2026.
  • 16. 16 The study provides a detailed evaluation of the dairy market landscape in Kerala, covering the current, historical and future trends for milk production, milk production by cattle, milk procurement prices, etc. The report also offers SWOT, Value Chain and Porter’s Five Forces analysis of Kerala dairy market along with market segmentation by product type and an analysis of the competitive landscape. The study is based on both desk research and multiple waves of qualitative primary research. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the Kerala dairy market in any manner.
  • 18. 18 3.1 AMUL Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat, India. AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. It is one of the best examples of co-operative achievement in the developing economy. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand. Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with milk collection average of 10.16 million litres per day. The brand name Amul means “AMULYA”. This word derived from the Sanskrit word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946.  Amul Butter  Amul Milk Powder  Amul Ghee, Amul spray  Amul Cheese  Amul Chocolates  Amul Shrikhand  Amul Ice cream  Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. Amul Ice Cream was launched on 10th March, 1996 in Gujarat. In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it
  • 19. 19 was rolled out across the country in 1999. In January 2007, Amul introduced SUGAR FREE & Pro Life Probiotic Wellness Ice Cream, which was a first in India. Vision and mission of Amul Vision Amul ‟s vision is to provide more and more satisfaction to the farmers, employees and distributers. Mission We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavor to satisfy the tasteand nutritional requirements of the customers of the world, through excellence in marketing byour committed team. Through co-operative networking, we are committed to offering quality products that provide best value for money.” OBJECTIVES  To capture the large share of the market.  To provide max. customer satisfaction. Continue product modification and improvement effort to increase customer benefit and reduce cost.  To meet the highest international standards of quality.  To expand production capacity. DIVERSE PRODUCT MIX Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya. AMUL Ice cream is among the Asia’a top 10 Ice cream brands. In a short span of 6 years, Amul Ice Cream has become No.1 Ice Cream brand in the country. Amul ice cream is now the only national brand and other Ice Cream brands are regional. Our position in the market: Amul No.1 brand in India: Amul has achieved a market share of 38% (4.5 times larger than nearest competitor)
  • 20. 20 HISTORYOF MILMA 3.2 MILMA Milma is the brand name of Kerala co-operative milk marketing federation Ltd(KCMMF) ,the apex cooperative of three Regional Cooperative milk producers union Viz Thiruvananthapuram Regional union , Ernakulam Regional union and Malabar Regional union . KCMMF was set up in 1980 to implement the popular operation flood project –II in Kerala state. The objective of milma is to provide an assured market for the milk produced by the rural milk producers and the same time provide wholesome, clean and nutritious milk and milk products to the consumers fully eliminating the middlemen in the Dairy sector, thereby providing maximum return to its farmers. For the rural community of the country comprising of 6 lakh villages and lakhs of Dairy farmers, milk has become a commodity that has helped them to build a new life and provide stable income. Milma believes in developing rural village community which only helps to develop a strong nation. In its endeavour to meet the ever increasing consumer demand, milma strives to provide quality products at competitive prices and at the same time ensures better remuneration to the Dairy farmers of the state. Thiruvananthapuram Regional Milk Producers Union (TRCMPU) covers the southern most districts of the state viz Thiruvananthapuram, kollam , alapuzha and pathanmthitta. TRCMPU operates three modern dairies at • Thiruvanathapuram • Kollam • Pathanamthitta TRCMPU also undertakes milk procurement and distribution at Alapuzha district. Over the years, MILMA has developed a long-term health perspective about the people of the state, who suffer from life style diseases including diabetes and obesity, albeit economic prosperity. So, MILMA has attuned its products to ensure balanced nutrition as well as reduced cost of healthcare and also launched new beverages other than milk products. Founded on the basis of the great democratic principle „of the People, by the People and for the people,’ the dominant concern of MILMA is to render true service to society while ensuring that it does not incur losses. Milma Represents:  2678 primary milk Co-operative societies.  8.31 lakhs farmer members.  Three regional Co-operative milk producers Union  13 dairies capable of handling 12 lakh litres of milk per day.
  • 21. 21  Fourteen milk chilling centers.  Two cattle feed plants with cumulative capacity of 500MT per day.  One milk powder plant 10 MT per day capacity.  A well-established training center.  5200 retail outlet.  Over 32,000 people working either directly or indirectly for the functioning of Milma.  A part from these Milma serve millions of consumers‟ day in and day out.” COMPANYLOGO VISION To constantly strive to provide valued consumers with the highest quality milk, milk products and other products with the best standards of service by our passionate and focused work forces using state of the art technology ensuring sustained growth and simultaneously ensuring dairy farmer’s delight by better realization of milk price and offering needed service at his/her doorstep. MISSION  ‟Farmers Prosperity through Customer Satisfaction‟ is the mission of the company”. OBJECTIVES  Channelize surplus milk from the rural areas to urban deficit areas to maximize the returns to the producer’s and provide quality milk and milk products to the consumers.  Carryout activities for promoting Production, Procurement, Processing and Marketing of milk and milk products for economic development of the farming community.  Build a viable dairy industry in the State.  Provide constant market and stable price to the dairy farmers.
  • 22. 22 MAIN FEATURES OF MILMA  Promote sale of milk and products outside the State and explore export market.  Federation takes lead role in Brand Management, Brand Promotion, Market Research and Market Intelligence.  2678 Primary milk co-operative societies now functioning.  8.31 lakhs farmer members.  Three Regional Co-operative Milk Producer’s Union.  Three dairies capable of handling 12 lakhs liters milk per day.  Ten Milk Chilling Centers.  Two Cattle Feed Plants with cumulative capacity of 600MT per day.  One Milk Powder Plant of 10MT per day capacity.  5,200 retail outlets.  Over 32,000 people working either directly or indirectly for the functioning of Milma. NATURE OF BUSINESS The Milma is for the welfare of the farmers. The primary share holders of the organization are farmers. Since it is a Government organization Milma mainly focuses on the benefit of the farmers and the customer satisfaction. The motto of Co-operation is "of the people, by the people and for the people". Milma is the foundation of the "three tier system" followed by the organization. At the village level Milma have the Village Milk Co-operative Societies which have the local milk producers as its members. The co-operate Social Responsibility (CSR) of the company is that it provide 2- 3 lakh loan to workers and also provide emergency loans. There are many welfare activities for the workers like scholarship for their children, provide subsidies, transportation and compensations. These Village Co-operatives unite at the Regional level and form Regional Co-operative Milk Producers' Unions. These Unions are federated at the State level to form State Federation namely Kerala Co-operative Milk Marketing Federation (KCMMF).
  • 23. 23 DAIRY UNIT MARKET DEPT. QUALITY DEPT. PRODUCTIO N DEPT. FINANCE DEPT. HR DEPT. Personal Officer Accounts Officer Asst. Manager Quality Control Officer Asst. Manager Junior Superintendent Assistant Accounts Officer Senior Supervisor Dairy Chemist Marketing Officer Senior Assistant Management Apprentice Technical Officer Lab Technician Assistant Marketing Officer Stenographer Operators & Attenders Lab Assistant Marketing Organizer Typist Field Officers ORGANISATION CHART
  • 24. 24 FUNCTIONAL DEPARTMENTS 1) Production Department This department deals with production activities. The main activity of production department is the processing of milk and other by products. The production department is headed by the Assistant Manager and is assisted by technical officers, technical superintendents, operators and attenders. There are mainly two types of milk produced namely, double toned milk and homogenized toned milk. PROCESSING OF MILK  Reception  Chilling  Processing  Packing  Distribution 2) Human Resource Department The unit level human resource department is headed by HR manger. Activities like recruitment of permanent staff, training and development etc centralized in the P&A at the head office. This department deals with accounting matters related to ranging from recruitment to retention. main FUNCTIONS  Recruitment and Placement  Selection Process  Induction and Orientation  Training and Development  Promotion  Performance appraisal  Motivation
  • 25. 25 3) Finance and Accounts Department Finance is considered as the life blood of any business organization. In the Accounts and Finance department which is headed by Accounts Officer and there are 4 employees in total. The main duty of the finance and accounts department is the procurement of funds and budgeting, allocation and utilization of funds. FUNCTIONS  Providing financial assistance as per the departmental requirements.  Keeping the monetary transactions in the book of accounts except the marketing department.  Finance department also deals with the systems department. Systems department operates with software which is made by KCMMF, MILMA Integrated Information System. 4) Quality Control/Assurance Department Milma works with an aim of giving high quality products to its customers. The quality control department is headed by Quality Control Officer and is followed by bacteriologist, lab technician and lab assistant. Milma’s products are tested at each and every stage of production. This department is maintained mainly for checking the quality of products right from the reception stage till the final stage of production and thus providing the customers with best products. Milma collects milk on the APCOS pattern which has been originated from Amul and has been replicated in Kerala through Milma. It is meant mainly for the benefit of milk farmers. About 34,000 liters of milk is obtained daily at the dairy. High quality is maintained within the dairy by not touching the milk with hands except at the time when it is bought from the societies. A Hot Air Oven is used for the sterilization which is a dry sterilization method for sterilizing the equipment’s used in testing. The test adopted for various products are as follows:  Milk – Acidity test, MPRT, Fat test, SNF test, Bacteriological test  Lassi – Total Solids test, Acidity test, Bacteriological test  Peda – Moisture test (the level should be below 10 degree Celsius), Bacteriological test
  • 26. 26  Paneer – Moisture test (the level should be below 70 degree Celsius), Fat test (above 50% fat),Total Solids test, Bacteriological test  Sambharam – Acidity test, Total solids test, Bacteriological test  SFM (Sweetened Flavoured Milk) – Curdling test, Turbidity test  Curd – Total solids test, Bacteriological test 5) Marketing Department Marketing department is headed by Assistant Manager. Marketing department has a key role to play for the survival and development of any organization. Marketing is the delivery of customer satisfaction at a profit. The main goal of marketing is to attract new delivering satisfaction. Functions  Sales of milk and other milk products  Distribution of the products  Collecting the payments from the agents  Doing promotional activities
  • 27. 27 ASSOCIATES OF MILMA 1. NATIONAL DAIRY DEVELOPMENTBOARD (NDDB) Under Dr. Varghese Kurien's guidance set up KCMMF in 1980. Ever since then, there has been a very close co-operation between NDDB and the Federation. NDDB are the originators of the Operation Flood Programme and have been our funding agent for the Operation Flood Projects in Kerala. 2. AMUL The Dairy Co-operatives of Gujarat have been the inspiration for the development of such a vast network of dairy co-operatives in Kerala. Among the co-operatives in Gujarat, the Kerala District Co-operative Milk Producers' Unions (Amul) is the first in this sector. Our Co-operatives are called "Anand Pattern Co-operative Societies" following the illustrious lineage of "Amul". 3. GOVERNMENT OF KERALA The Phenomenal success of the Dairy Co-operatives in Kerala could not have been achieved, without the foundation of animal husbandry activities, led by the Animal Husbandry Department, Dairy Development Department and Kerala Livestock Development Board, of the Government of Kerala. Kerala Co-operative Milk Marketing Federation is an Indian Dairy company. The company headquarter is in Kerala, India. The company brand name is ‘Milma’. It is a three-tiered organization. The company manufactures milk and various milk-based products as well as mango drink throughout the state. MILMA has been instrumental in achieving the national goal of self-sufficiency in milk production in the state. The company goal is “The socio-economic progress of the dairy farmer through procuring, processing and marketing of milk”. Still the goal is receding as Kerala enjoys one of the highest ranges of per capita milk consumption. KCMMF is totally content in the realization of this vision which was set before it. KCMMF has achieved the distinction in its performance by close association and bond with National Dairy
  • 28. 28 Development Board, Animal Husbandry Department and Dairy Development Department of the State and Kerala Livestock Development Board. Type Cooperative Industry Dairy Founded 1980 Headquarters Thiruvananthapuram, Kerala, India Products Milk products & Cattle feeds Revenue 3003 Crores INR (2017-18) Website milma.com PRODUCTS  Milk  Fermented Dairy Products  Fat Rich Dairy Products  Frozen Dairy Products  Refreshing Beverages  Heat Acid Coagulated Products  Drinking Water  Dried Milk Products  Milk Based Sweets & Confectionery
  • 29. 29 COMPETITORS Milma holds more than 45% market share, who is the front leader in the market. There are more than 30 competitors in Kerala against Milma. Some of other competitors are: PRODUCT COMPANY  Milk Malanadu, Royal, A-one, Ksheera, Balagi, Star etc  Ghee RKG, Nambeeshan, Namboodiri, Malanadu, Britannia etc  Curd Malanadu, Milky mist  Ice cream Uncle john, Lazza, Amul, Merryboyetc  Milk powder Every day, Amul, Nestle, Nido  Sip up Merriboy, Bombay pepsi, Mr.cool sip up etc  Water Classic, Aquatic, Himalaya, Bisleri water  Chocolate Cadbury, Nestle, Amul etc  Mango drink Frooti, Jive  Paneer Milky mist
  • 30. 30 PRODUCT PROFILE PRODUCT AVAILABLE IN MARKET 1. MILMA PASTEURIZED MILK Toned Milk and Double toned Milk are the two types of pasteurized milk from Milma.  Homoginized Toned Milk Toned milk is considered as common milk, which contains 3% Fat and 8.5% SNF (Solid Not Fat). Since the milk is homogenised, whitening capacity is more and less amount of milk will be sufficient for whitening tea/coffee. This milk mainly focuses on domestic consumers and is available in 500 ml in blue coloured packet. Price of the toned milk is Rs21/-. Milma gives 4% of commission for the sale of the each packet of the milk to the dealers.  Double Toned Milk Double toned milk contains high fat content of about 1.5% Fat and 9.0% SNF. The price of the double toned milk is Rs. 19/-. Double toned milk is also homogenized. Hence fat will not settle at the top. Both the above milk can be stored for 2 days under cool condition below 7 degree Celsius.
  • 31. 31 2. SAMBHARAM Sambharam (Butter milk) which is having 4.5% total solids is a favourite beverage in Kerala. Milma Sambharam is the only product of its kind in the market and it is very popular throughout the State. It comes in 200 ml cup. It is a seasonal product, mainly for summer season. . The price of 200ml Milma Sambharam is Rs.10/- 3. 3. CURD It is fermented product prepared from pasteurized skim milk using curd culture from National Dairy Institute (NDRI).Milma curd contains 0.5% fat and 9.0% SNF. It is delicious, tasty, and free of cholesterol which makes it ideal for curries. Milma curd is available in 400ml cup with a market price of Rs. 45/-, 200 ml cup with market price of 24 /-and 80gm cup at a market price of 10/- . Double tonned curd of 500ml sachet is available at Rs. 27/- 4.
  • 32. 32 4. GHEE Milma Ghee Contains 99.7 % milk fat and is manufactured by melting fresh cream. Natural aroma and flavour of ghee is retained since it is produced directly from fresh cream instead of going in for melting stored butter. No artificial colours or flavours are added in Milma ghee. Milma Ghee is available in 50 ml, 100 ml, 200 ml, 500 ml, 1 litre, 15 litre and their market price are 31/-, 57/- , 110/-, 260/-, 500/-, 8040/-. Ghee is the only exporting products of Milma. 5. PEDA An indigenous milk product manufactured by evaporating water content from wholesome cow‟s milk and sweetened with cane sugar. No colour or preservatives are added. It is nutritious and delicious sweet bite for children and it is available in 20 gm and in 10 pieces box which cost Rs. 60/-.
  • 33. 33 Also jack fruit peda is also available at Rs. 100/- 6. 6. PANEER Paneer also called chenna is a milk product made by coagulating boiled hot whole milk with citric or lactic acid and subsequent drainage of whey. It is fresh source milk protein and has good flavour and smooth texture. It is used in preparation of various dishes. paneer is available in 100gm at Rs. 40/- 200 gm at Rs. 75/- 1 kg at Rs. 310/-
  • 34. 34 7. STERILIZED TONNED MILK (MILMA PLUS) It is available in various flavours. The price of these types of sterilized tonned milk is Rs.22/- . This product is one of the new product that was producing in milma dairy plant .It is available in 200 ml single service glass bottle. 8. LASSI Lassi is also available in various flavours like pineapple,mango.It is available in bottles at Rs.25/-
  • 35. 35 3.3 MURALAYA Muralya Dairy Products Pvt Ltd., part of the SFC Group based in UAE aims to produce dairy products of international quality. The company also strives to introduce new benchmarks in milk production, procurement and distribution of dairy products in the regions it operates in. Vision Muralya Dairy is committed to the production and supply of Dairy Products of excellent quality and internationally accepted food safety standards ensuring customer delight, implementing a strong food safety management system, from “Farm to Plate”, adopting sustainable environment friendly practices. Mission Muralya Dairy ensures continual improvement of its processes by regular reviews, updating technology, providing adequate resources and through appropriate communication within the food chain. Values Muralya Dairy believes in building strong bonds of TRUST with all stakeholders, customers, employees, business associates, vendors and investors by adhering to the highest standards of Corporate Good Governance. COMPANY LOGO COMPETITORS PUBLIC SECTOR  MILMA  KSHEERA PRIVATE SECTOR  AI MILK AND PRODUCTS
  • 36. 36 Industries Food Production Company size 51-200 employees Headquarters Trivandrum, Kerala Type Privately Held Founded 2010 Specialties Milk Products, Dairy Products, and Milk Website http://muralyadairy.com/  ROYAL MILK AND  CAVIN’S  SAKTHI Muralya Dairy - Kerala's first international milk brand. CSR ACTIVITIES Welfare ‘SERVICE is man to service is god’ The Foundation’s effort in this realm are all encompassing, and phenomenal for an independent initiative of this nature. It has adopted the agriculture village. Process At Muralya, we take our commitment to quality very seriously by strictly screening milk at the production and procurement levels itself for detection of adulterants, hormones, antibiotics and neutralizers. In fact the pursuit of delivering ‘international quality’ is what drives us forward.
  • 37. 37 MURALYAPRODUCTS 1. MILK Muralya Milk has in a very short period of time been able to gain wide spread acceptance for meeting the highest quality standards in the markets it operates in. The milk we produce is of far superior standards and comes in an innovative PET bottle – for the first time in South India. Muralya Milk is available in 1 litre PET bottles and 500 Ml sachets. 2. CURD Muralya Curd is made of the freshest and purest milk and processed at our fully mechanized plant. It is available in the market in 90/200/400 g cups and 500 g sachets. 3. GHEE Muralya Ghee is produced from finest cow’s milk and is rich and pure with a distinct golden colour and aromatic flavour. Ghee is available in 50/100/200/500 ml bottles. 4. SAMBHARAM Muralya Sambharam (Buttermilk) is made from the purest milk and has a distinct tangy flavour from the mix of spices that makes it a pure, energetic and refreshing drink suitable for everyone. This drink offers the healthiest way to stay refreshed and face the heat at all times. Available in sachets and cups.
  • 39. 39 4.1 SWOT ANALYSIS Introduction SWOT Analysis is nothing but analysis of a company or organization on the basis of its Strength Weakness Opportunity and Threat Importance and Uses of SWOT SWOT analysis is used to identify and categories significant internal factors (i.e. strengths and weaknesses) and external factors (i.e. opportunities and threats) faced by the organization. It provides information that is helpful in matching the firms' resources and capabilities to the competitive environment in which it operates and is therefore an important contribution to the strategic planning process. It should not be viewed as a static method with emphasis solely on its output, but should be used as a dynamic part of the management and business development process. SWOT analysis involves the collection and portrayal of information about internal and external factors that have, or may have, an impact on the evolution of an organisation or business. It generally provides a list of an organisation's Strengths and Weaknesses as indicated by an analysis of its resources and capabilities, plus a list of the Threats and Opportunities identified by an analysis of its environment. Strategic logic requires that the future pattern of actions to be taken should match strengths with opportunities ward off threats and seek to overcome weaknesses. People directly involved in various hierarchical levels of decision making in an organisation or business, or a wider sample of actors are involved if the SWOT analysis concerns a whole region or nation. Representatives from a variety of stakeholders groups should be involved, as they would bring in the analysis their own particular perspectives. At least one expert in SWOT analysis should take part or moderate the process.
  • 40. 40 4.1.1 SWOT ANALYSIS OF AMUL AMUL’S STRENGTHS 1. Exceptional Growth Amul has seen exceptional growth in the past seven years. The company continues its adaptive and evolutionary mechanism as it has done for decades. India has placed many investments in its dairy industry, and the company has justified its position. Currently, the company is setting its sight to achieve record growth with its INR 50,000 crores target in 2020. 2. Large Production Capacity Amul is a brand managed by the GCMMF (Gujarat Co-operative Milk Marketing Federation Ltd), a cooperative body that provides about 17.7 million liters of milk per day. Its production capacity led the GCMMF to join the ranks of the top dairy organizations in the world. In Sept of 2018, Amul was ranked at the 9th position according to the survey of the IFCN (International Farm Comparison Network). 3. Market Leader Amul has positioned itself as the market leader in India because of the organized ice cream sector which has a 1/3rd market share in the country. The ice cream sector is expected to grow by 30% in the coming years, whereas its flavored milk and cheese products have been forecasted to grow above 20%. 4. Brand Recall and Equity Amul has become the favorite for many Indians because of its genius Amul baby campaign that evokes beauty and emotion on every occasion. It has cemented Amul’s brand recognition especially when it comes to brand recall and equity. There are only a handful of milk-based brands available that have the same public image like Amul in India.
  • 41. 41 5. Best Quality Amul has been entrusted with a strong and loyal customer base owing to its standard persistent quality production. Amul has maintained its operation with adequate transparency for decades forming a good relationship with the government and the health department. The appraisal from such entities over its products has only added to its credibility and customer retention. 6. Huge Customer Base Amul has the amazing quality of transcending the urban demographic and reaching the rural areas. This allows it to have distinctive leverage over its competition as it expands its consumer base and maintains a presence in every corner of the country. AMUL’S WEAKNESSES 1. Lawsuits The brand faced an internal crisis after it chose to advertise its products by disparaging its rival competitors. This promotion did not go unnoticed by one of its competitors HUL (Hindustan Unilever Limited) which filed a lawsuit against the dairy company and took it to court. HUL won its lawsuit at the Bombay High Court in 2017 and demanded that Amul should stop its condescending advertising immediately. It has tarnished Amul’s image as an elitist, utilizing arrogant and unfair methods to beat its competition. 2. Operational Cost The operational cost for Amul is enormous thanks to its massive structure. This becomes a liability for the company as Amul experiences multiple pricing changes and is dependent on its farming unions and community whose needs are growing every day. Amul does not have an effective mechanism in place to face these challenges which is risky given the unpredictability of supply.
  • 42. 42 3. Portfolio Expansion Amul has diversified its dairy products variety, but it has not experienced similar success in its other productions. The best example is its chocolate products that have not reached the same level of success as its ice creams. Amul’s portfolio expansion is crucial for its brand image. AMUL’S OPPORTUNITIES 1) Per Capital Milk Consumption Amul can increase its per capita milk consumption which is generally 97 liters per year, much lower than that of countries like the USA or the EU. The demand for milk products continues to grow, and Amul has enough resources to capitalize on this demand. 2) International Markets Amul has the capacity to explore its reach in the international markets. It can access more Asian markets from neighboring countries to other regions and operate accordingly. Its international exports will increase their margins and turnovers rapidly. 3) Chocolate Production Amul can invest generously in its chocolate production and thrive in the chocolate selling business. With adequate advertising, it can become its greatest AMUL’S THREATS 1) Increasing Competition Amul increasingly faces fierce competition in the Ice Cream sector. More and more companies and brands both local and foreign are invading its markets and overtaking its sales. Competitors like Kwality Walls, Mother Dairy, Baskin Robbins, London dairy, and Havmor are a few names that directly threaten its business. 2) Negative Media Coverage Negative media coverage has not been beneficial for Amul’s operations. It has affected its sales and forced them to issue statements garnering unwanted media attention.
  • 43. 43 Conclusion The SWOT analysis of Amul makes it clear that it stands victorious and emerges as a winner at all fronts. A national pride for its citizens, Amul has to take the plunge and retain confidence in expanding in the global markets. With sufficient advertising and promotions, Amul can achieve worldwide success. 4.1.2 SWOT ANALYSIS OF MILMA STRENGTHS a) Milma has 9th position in the list of top dairy companies in India. b) High quality product c) Milma has and maintains a good brand name in the Kerala dairy market. d) ISO certification. e) It meets the market demand properly. f) Adequate support from NDDB and Government of Kerala . g) Eco- friendly plant. WEAKNESSES a) Increasing cost of procurement of raw milk and material. b) Inadequate sales promotion campaigns. c) Inadequate sales outlets in rural areas. d) Absence of technology up gradation programs. e) Political interference in formulating policies. f) Faces milk shortage. g) There is no Research and Development department which is considered as an important one in any organization. h) Just meeting the demands of the market rather creating more demand. i) Low advertisement and promotional activities for products other than milk.
  • 44. 44 OPPORTUNITIES a) Scope of product diversification. b) The company can expand its distribution area. c) The organization can increase its goodwill and profit if it gives more emphasis on exports. d) More opportunities to create demand in rural areas. e) Government support, i.e. subsidies tax concession. f) Good scope for capturing huge market share in the milk products category. g) Scope to process more milk from other states, thus increasing productivity. h) Large product range. i) Increasing level of advertisements and related activities can lead to increase in sales at a higher rate. THREATS a) The increasing intervention of milk powders of various companies in market is a major threat for the organization. b) Faces milks shortage within state. c) The pricing mechanism is not flexible, which may lead to change in preference of customers. d) Seasonal fluctuations in the availability of raw materials. e) New competitors may reduce market share. Conclusion Milma is observed to be an organisation that not only has an objective of working profitably but also a socially responsible organisation that cares of different sections of the society viz; the milk producers, and the milk consumers. Milma has a major role in channelizing milk from rural areas to urban areas to maximize the return to produce. The motto of Milma, “Your health is our concern”, has become synonymous for assured quality.
  • 45. 45 4.1.3 SWOT ANALYSIS OF MURALYA STRENGTHS 1. Enhanced milk production with consequently increased availability of milk processing. 2. Improved purchasing power of the consumer. 3. Improved transportation facilities for movement of milk and milk products. 4. Increased availability of indigenously manufactured equipment. 5. Large number of dairy plants in the country. 6. Vast pool of highly trained and qualified manpower available to the industry. 7. Country's vast natural resources offer immense potential for growth and development of dairying. WEAKNESSES 1) Lack of appropriate technologies for tropical climate conditions. 2) Erratic power supply. 3) Lack of awareness for clean milk production. 4) Underdeveloped raw milk collection systems in certain parts of the country. 5) Seasonal fluctuations in milk production pattern. 6) Regional imbalance of milk supply. 7) Species-wise variation in milk quality received by dairy plants. 8) Scarce capital for investment in the dairy development programmes on a priority basis. 9) Absence of proper data records which is essential for preparing development programmes. 10) Dairy development programmes have not been fully implemented as per the needs of the region in different agro-climatic zones. 11) Lack of marketing avenues for the dairy produce. 12) Non-availability of software for preparing needed dairy schemes/projects. 13) Lack of infrastructure for offering Dairy Business Management programmes to train dairy personnel.
  • 46. 46 OPPORTUNITIES 1) Greatly improved export potential for milk products of western as well as traditional types. 2) Expanding market for traditional dairy products. 3) Increasing demand for fluid milk as well as value added products. 4) By product utilization for import substitution. 5) Employment generation. 6) Growing demand for milk and milk products. 7) Liberalized polices in dairy sector. 8) Availability of large resources of unconventional feeds and fodders. 9) Availability of diverse germ plasm with unique features like heat tolerance, disease resistance, draftability and ability to survive and produce under stress conditions. 10) Availability of animal production technologies for faster development and effective implementation. 11) Integrated structure of marketing for milk and milk products. 12) Integrated structure of livestock marketing through regulated markets. 13) Improved collection of data on contract basis through agencies. 14) Market information intelligence system for milk and milk products. 15) Development of software for project formulation for dairy enterprise. THREATS 1) Introduction of foreign products in Indian market. 2) Increasing chemical contaminants and residual antibiotics in milk. 3) Poor microbiological quality of milk. 4) Export of quality feed ingredients particularly cakes under the liberalization policy. 5) Deficiency of molasses, a rich source of energy and binding agent in feed industry and constituent of urea molasses mineral lick. 6) Excessive grazing pressure on marginal and small community lands resulting in complete degradation of land. 7) Extinction of the indigenous breeds of cattle due to indiscriminate use of crossbreeding programme to enhance milk production.
  • 47. 47 4.2 PORTER’S FIVE FORCES MODEL Porter’s five forces model refers to a framework based on the competitive analysis, introduced by Harvard Business School Prof. Michael E. Porter. The model determines the intensity of competition in any industry is a mix of five competitive factors operating in different areas of the whole market. The framework is an outside-in strategy tool for the business unit that evaluates the attractiveness (profitability) of an industry. Thus,helps the business-persons to identify existing and potential lines of business. It is a useful tool for accurately diagnosing important competitive elements in the market, as well as determining the strength and significance of each five forces. Source: https://www.google.com The five forces are frequently used to measure competition intensity, attractiveness, and profitability of an industry or market. Porter's five forces are: 1. Competition in the industry 2. Potential of new entrants into the industry 3. Power of suppliers 4. Power of customers 5. Threat of substitute products
  • 48. 48 4. 2 . 1 A M U L D A I R Y FIVE FORCES MODEL This is the thorough description of the Porter's design of five forces of Amul Dairy Company. Competitiveness Amul Dairy is one of the leading company in this competitive industry with a number of strong rivals like Unilever, Kraft foods and Group DANONE. Amul Dairy is running well in this race for last 150 years. The competition of other companies with Amul Dairy is quite high. Threat of New Entrants A number of barriers are there for the brand-new entrants to happen in the customer food industry. Only a few entrants succeed in this market as there is a need to comprehend the customer requirement which needs time while recent rivals are aware and has progressed with the customer commitment over their items with time. There is low risk of new entrants to Amul Dairy as it has quite big network of distribution worldwide dominating with well- reputed image. Bargaining Power of Suppliers In the food and beverage industry, Amul Dairy owes the largest share of market needing greater number of supply chains. In reaction, Amul Dairy has also been concerned for its suppliers as it believes in long-term relations. Bargaining Power of Buyers Cost of switching to competitor brands: The switching of brands is seen very much in products such as ice cream, curd, milk powders, milk additives etc. but it can be seen comparatively less in liquid milk category. The other brands which provide the same products as Amul for ice cream are Vadilal, Quality Walls etc. And the competitors for the milk markets are mainly local or regional marketers. For e.g., Nandini dairy in Karnataka is a competitor for Amul.
  • 49. 49 Large number of buyers: Milk is a necessity product and hence is a mass product. It has a considerable share of the rupee spent by any Indian. A study shows that in urban areas about 36% of monthly per capita expenditure was on food items. Out of that, around 10% was spent on milk and milk products. Moreover the buyers are spread evenly over the country and do not have any bargaining power. The buyers we are referring to in this scenario are the common man or any individual who is health conscious and considers milk as a substitute for daily nutrition value. Threat of Substitutes There has been a terrific risk of replacements as there are alternatives of some of the Nestlé's items such as boiled water and pasteurized milk. There has actually also been a claim that some of its items are not safe to use leading to the reduced sale. Therefore, Amul Dairy began highlighting the health advantages of its items to cope up with the substitutes. Competitor Analysis Amul Dairys covers a number of the popular customer brands like Package Kat and Nescafe and so on. About 29 brand names amongst all of its brand names, each brand made an earnings of about $1billion in 2010. Its major part of sale remains in North America making up about 42% of its all sales. In Europe and U.S. the leading major brand names sold by Amul Dairy in these states have a great respectable share of market. Likewise Amul Dairy, Unilever and DANONE are 2 big markets of food and drinks along with its main rivals. In the year 2010, Amul Dairy had made its annual revenue by 26% boost since of its increased food and beverages sale specifically in cooking things, ice-cream, drinks based upon tea, and frozen food. On the other hand, DANONE, due to the increasing rates of shares resulting a boost of 38% in its profits. Amul Dairy decreased its sales expense by the adjustment of a brand-new accounting treatment. Unilever has number of staff members about 230,000 and functions in more than 160 countries and its London headquarter. It has actually become the second largest food and drink market in the West Europe with a market share of about 8.6% with just a distinction of 0.3 points with Amul Dairy. Unilever shares a market share of about 7.7 with Amul Dairy becoming very first and ranking DANONE as 3rd. Amul Dairy attracts regional costumers by its low expense of the item with the regional taste of the items keeping its first place in the international market. Amul Dairy business has about 280,000 employees
  • 50. 50 and functions in more than 197 nations edging its competitors in numerous regions. Amul Dairy has actually also lowered its expense of supply by introducing E-marketing in contrast to its competitors. The Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), which markets milk and dairy products under the Amul brand, said that it will grow at 20% in 2019-20 on the back of milk-based products and ethnic flavours. Amul have grown by more than 22% and we are expecting growth of 20% in 2019-20. Last year, we registered 13% growth purely on volume basis, as there was no increase in product prices. This growth will be driven by increase in purchasing power, better power infrastructure, which will lead to sale of chilled products in rural areas, and no increase in prices," said R.S Sodhi, managing director, GCMMF, on the sidelines of a sponsorship event. Amul announced that it will be the sponsor for the Afghanistan cricket team for the ICC World Cup. The company reported a total turnover of ₹33,150 crore, growing at 13% in 2018-19. dairy business, which is growing at 14%, Sodhi said milk-based products such as lassi and shakes are growing at 15-20%. The recently launched fruit beverage brand ‘Tru’ is registering 12-15% growth. “We have witnessed a change in the consumption pattern of Indian consumers as they are demanding localized products and ethnic flavours. They feel such products are fresh, meet their taste requirement and are affordable. Our ambition is to become a ‘city brand’ in the consumer mind space. In the food segment, people want local brands. We are offering lassi, sweet yoghurt and buttermilk, which is growing because of high demand," added Sodhi. Amul has been selling more than 25 variants of shakes, lassi, and flavoured milk. The company, which launched Tru range of fruit beverages with a base of milk solids in four flavours, plans to make a big splash in the category, with increasing number of consumers moving away from carbonated drinks. Allaying fears regarding a slowdown in consumption growth, as is evident in the March quarter results of some large fast-moving consumer goods (FMCG) companies, Sodhi said Amul is not worried on a demand slowdown. “With income levels increasing, the first category any household will spend on is food and FMCG products. High-end product categories might witness a slowdown, but not food consumption."
  • 51. 51 4.2.2 MILMA FIVE FORCES MODEL THREAT OFNEWENTRY  Milma have well established brand names and fully differentiated price.  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  Milma have high brand loyalty among customers 4 0o the threat of new entry is very low for milma 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  Consumers have intense knowledge about products of Milma bargaining  power of suppliers is low in case of Milma. BARGAINING POWER OF BUYERS  Concentration of buyers are more  Buyer has full information about products of Milma  Milma is comprised of large numbers of relatively small sellers.  Buyers purchases are a suitable percentage of the selling industrys total sales of the power of buyers are high in Milma. THREAT OFSUBSTITUTE  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  Here are substitutes in soya based formulas or goats3 milk, but the  Demand for them are low and does not pose a more threat to cows milk.  Buyer have less propensity to substitute Milma products of the threat of substitute is low in Milma.
  • 52. 52 COMPETITIVERIVALRY Competitors are numerous for Milma  Products are undifferentiated  Consumer switching costs are low  Exit barriers are high.  Competitors are strategically diverse So competitive rivalry is high in Milma. 4.2.3 MURALYA FIVE FORCES MODEL THREAT OF NEW ENTRANTS  New entrants are encouraged and assisted by various schemes by Government.  Requires high capital investment and difficult to achieve economies of scale.  Access to very complex and well established distribution channel.  Customer Loyalty. BARGAINING POWER OF BUYERS  Presence of multiple competitors as well as local Doodhwaalas.  Home delivery and freshness of local dairy products form local Doodhwaalas make this more complex. BARGAINING POWER OF SUPPLIERS  Mainly the suppliers are rural milk producers and thus their bargaining power is low.  Product and process development and innovations.  Home delivery and freshness of local dairy products form local Doodhwaalas make this more complex. THREAT OF SUBSTITUTES Although many substitutes in drinking arena when compared with milk are available, the industry enjoys high profitability in case of other dairy products.
  • 53. 53 RIVALRY AMONG COMPETITORS  Large number of competitors Local Doodhwaalas.  Increased advertising expenditures, or spending on service/product improvements and innovation. 4.3 BCG MATRIX BOSTON CONSULTING GROUP (BCG) MATRIX is developed by BRUCE HENDERSON of the BOSTON CONSULTING GROUP IN THE EARLY 1970’s. According to this technique, businesses or products are classified as low or high performers depending upon their market growth rate and relative market share. BCG Charts are divided into four type of scenarios. Stars, Cash Cows, Dogs and Question Marks.
  • 54. 54 STAR HIGH GROWTH, HIGH MARKET SHARE • Stars are leaders in business. • They also require heavy investment, to maintain its large market share. • It leads to large amount of cash consumption and cash generation. • Attempts should be made to hold the market share otherwise the star will become a CASH. COW: CASH COWS LOW GROWTH , HIGH MARKET SHARE  They are foundation of the company and often the stars of yesterday.  They generate more cash than required.  They extract the profits by investing as little cash as possible.  They are located in an industry that is mature, not growing or declining. DOGS LOW GROWTH, LOW MARKET SHARE • Dogs are the cash traps. • Dogs do not have potential to bring in much cash. • Number of dogs in the company should be minimized. • Business is situated at a declining stage. QUESTION MARKS HIGH GROWTH , LOW MARKET SHARE  Most businesses start of as question marks.  They will absorb great amounts of cash if the market share remains unchanged, (low).  Why question marks?  Question marks have potential to become star and eventually cash cow but can also become a dog.  Investments should be high for question marks.
  • 55. 55 4.3.1 BCG MATRIX ANALYSIS OF AMUL The Cash Cows Amul’s ‘Cash Cow’ is coincidentally its cow milk. Looking at it more closely, we can also surmise that Amul Butter, and Amul Cheese, are also its ‘Cash Cows’. These three products generate a steady, high revenue to fuel the other products of the brand. They hold high shares in markets that have relatively low growth. That is saying something, considering the amount of brands and popups in the dairy industry due to the changing trends. The Stars This category of products is the focus of the show. On one hand you have the ever-reliable ‘Cash Cow’ with a constant influx of cash- as its name suggests, on the other hand you have the ‘Star’- which not only brings home the bucks, but also rings in 1st in the popularity contest. Amul yet again has more than one product in this category- Amul Ghee, and Amul Ice Cream. ‘Star’ products have the characteristic of holding a high market share, in markets with high growth potential- the most desired quadrant. Companies often invest a lot of cash that comes in from the ‘Cash Cow’ category into the ‘Star’ products’ promotions, and development. Amul Ice Creams have very targeted advertisements, and are constantly being worked on to become more appealing to the public by the use of words like ‘creamy’, ‘medium-fat’, etc. The Question Marks As the name suggests, ‘Question Mark’ products aren’t those that have a questionable future. They are just products that have potential to grow, but require a little more attention and careful planning to go the right way. Often companies employ funds for researching into the scope of the ‘Question Mark’ products. These products are in high growth markets with a low market share. They essentially can also become the rising ‘Star’ products with the correct attention, and investments. Amul Lassi falls under this category as it already is in a highly populated market. However, it is steadily making a name for itself against its close competitors like Aarey and Govardhan. The advertisements for Amul Lassi are also targeted to make it a faster growing product. The Dogs This category kind of suggests that the company/brand does not see much potential in these products. The ‘Dog’ products for Amul will be Amul Cookies, and Amul Pizza. These products have a low growth and market share- often seen as not profitable for the company.
  • 56. 56 Thus, the companies don’t invest much in product changes or promotions. They are often either discontinued, or kept in low production. Amul products in the BCG Matrix STARS -amul pure ghee range -amul cheese spread -Amulkool -Amul icecreams -Amulya dairy whiteners QUESTION MARK -Amul masthidahi -Amul lassi -Amul mithaimate -Amul mithai range -Boxed milk range(UHT) CASH COW -Amul fresh milk range -Amul butter range -Mozzarella cheese DOGS -Amul chocalates -Nultramul energy drink -Amul Shakti -Infant milk range -Amul pizza
  • 57. 57 Dogs 4.3.2 BCG MATRIX ANALYSIS OF MILMA These are the products with low growth or market share Dogs are those products that have low growth or market share and have a very limited chance of growing into a profitable business unit for the company. CASH COWS These are the products which are in low growth markets with high market share. When the market share of a product is high and is being sold in an industry that is not expected to see any significant growth in the future, then the product can be considered as a Cash Cow. Cash Cow business units or products are the best revenue generators for the organization and require very low investment to sustain their profitability. STARS These are the products which are in high growth markets with a high market share. There are some products which have high market share and have the potential to grow more in the future. The industry dynamics are also supportive of the growth as the industry is in the phase of development as well. These products have the potential of being positioned as cash cows owing to the growth prospects. QUESTION MARKS Products in high growth markets with a low market share. These are the business units or products which are the problem child for an organization because of the uncertainty that they hold. Either these products or business units can become a revenue generator for the company by taking the position of a star or can become a source of loss for the company.
  • 58. 58 STAR High growth markets with a high market share. Fresh milk, Ghee, Milk powders Ice cream QUESTION MARK High growth markets with a low market share. Fat free cooking dessert Cooking chocolate Soups Lassi ,diabetic products, Healthy products CASH COW Low growth markets with high market share. Products like Srikhand, paneer and butter DOG Low growth or market share Products like sterilized paneer, cow ghee, Confectionary items
  • 59. 59 4.3.3 BCG MATRIX ANALYSIS OF MURALYA CASH COWS muralya’s ‘Cash Cow’ is coincidentally its cow milk.Muralya commitment to quality very seriously by strictly screening milk at the production and procurement levels itself for detection of adulterants, hormones, antibiotics and neutralizers. In fact the pursuit of delivering ‘international quality’ is what drives us forward. The eight-step Cold Chain Process is universally proven for its ability to deliver milk products of the highest quality to consumers. At Muralya Dairy, we use cutting-edge international technology at all the mechanised stages of the Cold Chain Process.step 1 - The cow, step 2 - Bulk milk chiller, step 3 - Insulated road milk tankers, step 4 - Processing plant silos, step 5 - Processing procedure, step 6 - Refrigerated trucks, step 7 - Sale depots,step 8 – Retailers  High market share and low market growth.  Doing well in no growth market with limited opportunities. DOGS  Low market share and , low market growth  Weak in market, difficult to make profit. STARS  Highly experienced management team and pleasant work environment.  Company support is better for ever.  High market share and high market growth.  Doing well great opportunites. QUESTION MARKS  Low market share and high market growth.  Don’t know what to do with opportunities; decide whether to increase investment.
  • 60. 60
  • 62. 62 5.1 FUTURE PROSPECTS OF DAIRY INDUSTRY The future target of the national milk production is 254.5 million tonnes by 2021-22 and to bring more than 50 % of milk produced under the organized sector for procurement as against the present 25%.To meet these targets and to enhance the milk handling levels, it is necessary to produce professionals, who understand the nature of this highly perishable natural food product. In this scenario, dairy technology education has a lot of scope. After completing B.Tech (Dairy Technology), the pass outs can get employment in various areas like milk procurement, milk processing, milk quality check etc in private as well as cooperative milk plants. They can also get employment in the food industries dealing with functional foods & infant foods and industries dealing with dairy equipment & machinery. 5.1.1 FUTURE PROSPECTS OF AMUL Gujarat Co-Operative Milk Marketing Federation, which markets its range of products under the Amul brand, plans 40-60 new products in the next two years. It believes this will enable annual turnover of Rs 50,000 crore by 2021. In the past four years, it has launched 101 products. The new products, mostly high margin, will primarily belong to the categories of yogurts, cookies (biscuits), shortbreads (nan khatai), fresh mithai (sweetmeat) and milk-based beverages. After coming up with its butter cookies range in the western part of India, the company plans to launch it across the country within the next quarter. Thereafter, variants like cashew, cumin seed (jeera) and others.
  • 63. 63 5.1.2 FUTURE PROSPECTS OF MILMA The Thiruvananthapuram region of the Cooperative Milk Producers’ Union (Milma) will conduct Milma Gramolsavam 2020 to collect ideas and suggestions from dairy farmers, milk societies, technical experts, people’s representatives and the public. “The recommendations will be later catalogued to form Milma 2025, a five-year plan for the comprehensive development of the sector. Attaining self-sufficiency in milk production and economic stability of dairy farmers and strengthening of milk societies will be the major objectives of the plan,” ISO certification for village-level bulk chilling centres, a ₹40-crore loan scheme in association with South Indian Bank for buying cattle, product diversification and training for dairy farmers at Anand, Gujarat, are the other projects to be implemented this financial year. Haritha Milma Milma will launch Haritha Milma, an initiative to promote organic farming, and Milma Cow Bazar, a mobile app for buying and selling cattle. Dairy farmers will be encouraged to start organic vegetable farming and 11 farmer groups will be formed in the four districts under the region. “As part of the ₹25-lakh project, the farmers will be provided everything from vegetable seeds to fertilizers to start farming,” Plastic-free Milma has also prepared an action plan to go plastic-free in the future. In the first phase, five milk ATMs will be opened at five centres in Thiruvananthapuram city. Meanwhile, the Green Kerala Company will be in charge of collecting Milma covers from customers on a daily basis.
  • 64. 64 5.1.3 FUTURE PROSPECTS OF MURALYA Muralya Dairy Products Pvt Ltd (MDPL) is a flagship project of SFC Group of Companies, owned by Mr. K. Muraleedharan, renowned entrepreneur and international business personality, based at Abu Dhabi in UAE. The SFC Group was formed in the year 1989 and today it has business interests in diverse fields such as Hospitality & Leisure, Information Technology, Real Estate, Education and Healthcare with a footprint across UAE and India. Presently, employing over 2500 people from more than 15 nationalities in these varied business fields, the group has successful and trusted brands in all their business verticals. The Dairy is part of an ambitious plan to make available milk and milk products that match international quality by creating Kerala’s first fully integrated and automated dairy and international dairy brand. Muralya has already commissioned its own Dairy Farms, which when fully operated, will become the largest of its kind in India. In the future, Muralya Dairy aims to pioneer new and innovative products with a diversified brand portfolio and established a footprint across South India.Muralya Dairy is proud to bethe first Dairy in Kerala to introduce Fortified Milk (F+ Milk) to consumers. With Fortified Milk, Muralya Dairy aims to make a positive impact in society with regard to health. What is Fortified Milk Milk is fortified by adding essential nutrients such as Vitamin A and Vitamin D. Vitamin A helps in good vision and in preventing Night Blindness and Vitamin D helps in absorbing Calcium and for keeping your immune system intact. Why Fortified Milk Milk is a good source of Vitamin A and D. However, the levels of both these Vitamins are not enough to meet the daily requirements of human body. The Food Safety and Standards Authority of India (FSSAI) permits and advocates the Fortification of staple foods and has notified standards which will be effective from July 2019. By providing the right nutrition to the children and our population we help in contributing to a healthier nation. Addition of these micronutrients serves to enhance further goodness of milk. It is ideal for growing children’s dietary needs.
  • 65. 65 CONCLUSION Modern dairies should work by judiciously building an efficient system integrating the activities of several factors. The Dairy Council, the Cattle Breeders Association, The Herdbook, veterinary services, insemination services, monitoring of milk, milking parlours and dairies. All the cow's need should be supplied in its immediate environment so that the cow's energy is devoted to milk production. The dairy industry has to integrate the feeding system, genetic data, advanced milking system, milk transport and processing facilities, administrative tasks, and skilled manpower. Up-to-date information on each cow is essential to the achievement of high yield. The data is to be recorded in Herdbook, which contains information on most of the cows, including the geneology of many generations. The Herdbook is a reservior of accessible, computersied data,. It is continuously updated by a flow of data about health and sickness, breeding, milk production, physical data and any other information essential to sound dairy monitoring and management. The data bank enabis real time retrieval of information. The Herdbook is essential to the monitoring and management of herd improvement. A Milk Monitoring Laboratory keeps track of the yield of cows every month. The lab data is downloaded directly to the Herdbook's computer. The lab's task is to detect cows with a latent infection of the udder and to gather milk production statistics on each cow and each dairy farm.
  • 66. 66 BIBLIOGRAPHY  https://www.essaycompany.com/essays/biology/dairy-industry-in-india-current- perspective-and-status-biology-essay  https://www.google.com/search?q=milma+ghee&tbm=isch&ved.  https://www. Major advances in applied dairy cattle nutrition".  https://www.Journal of Dairy Science. :  https://www.IndiaDairy.  https://www.investopedia.com/terms/p/porter.asp  https://www.google.com/search?q=bcg+matrix+of+milma+dairy+images  https://www.google.com/search?q=porter%27s+five+force+model  https://pt.slideshare.net/search/slideshow?searchfrom=header&q=  https://strategicmanagementinsight.com/tools/porters-five-forces.html  https://www.slideshare.net/syedmohsin4/amul-  https://www.google.com/search?q=bargaining+power+of+buyers+AMUL&tbm  https://www.google.com/search?q=BCG+MATRIX+of+amul&tbm  http://www.netmba.com/strategy/matrix/bcg/