1. Indian Dairy IndustryIndian Dairy Industry

2. Global Scenario of Dairy IndustryGlobal Scenario of Dairy Industry
 Europe remains the largest market in the dairy Industry
 US Follows Europe as the second largest market
 Preference for rich, fortified, fat-specific, and organic variants
of various dairy products in the market
 CAGR(2011-2014) drinking milk sector:
◦ Global : 1.9 % , APAC: 3.5%, Western Europe: 0.2%, Africa: 2.2%,
Eastern Europe:2.4, Latin America: 2.8%
 India is going to be a major market for international players
◦ Growing population
◦ Increasing income levels
 It is projected to account for over 1/3 of the global milk
consumption by 2020
Source: Datamonitor

3. Some numbers about Indian DairySome numbers about Indian Dairy
IndustryIndustry
 India produces 17% of worldwide milk production
 No. of milk producing dairy cows are 38.50 million
 No. of buffaloes are 38.10 million
 Milk production is growing at 7% by volume and 10% by
value
 Dairy accounts for 21% of agricultural production of India
 The market size for milk and milk products is estimated INR
3.6 lakh crores
 The organized market is growing at nearly 10% in value
terms annualy
 Per capita milk consumption is around 276 gm per day
Source: National Dairy Development Board, International Dairy federation 2010

4. Indian dairy industry estimated to have grown 6.8%Indian dairy industry estimated to have grown 6.8%
over the last decadeover the last decade
Indian Dairy Scenario
•Dairy contributes to 16% of consumer spend on food – 18% in Urban, 15% in rural
•Estimated value of market - INR 3.6 lakh crores.
•Driven by increasing population, life expectancy and preference for dairy products
•High value processed products estimated to be growing at 15 to 25%
•Market dominated by unorganised sector (80%)
*CSO- 1997 and 2008 census, value terms, PwC analysis

5. Structure Of Indian Dairy IndustryStructure Of Indian Dairy Industry

6. State Cooperatives in IndiaState Cooperatives in India

7. Milk Butter Ghee Buttermilk Lassee Dahi Ice
Crea
m
Amul – Gujarat       
Vijaya – Andhra
Pradesh
    
Nandini -
Karnataka
      
Gokul
Kholhapur
      
Verka - Punjab      
Milma - Kerala     
Mahanand –
Maharashtra
    
State cooperatives and its Offerings

8. Cheese Paneer Mithai
range
Milk
powders
Cream
/Dairy
Whiteners
Amul – Gujarat     
Vijaya – Andhra
Pradesh
 
Nandini - Karnataka    
Gokul Kholhapur    
Verka - Punjab     
Milma - Kerala 
Mahanand –
Maharashtra
 
State cooperatives and its offerings

9. Indian Private PlayersIndian Private Players
•In 2002- joint venture with Fonterra(New Zealand), world’s
second largest dairy company
•Bangalore
• Turnover - 293.06 crores
•Mother dairy was set up in 1974
• Uttar Pradesh
•Turnover – Rs5,200 crores
•In 1970 with Arun Ice Cream, which is famous in south
•Chennai
•Turnover – 336.88 crores
•Founded by parag Milk Foods Pvt Ltd in 1992
•Pune
•Turnover – 1000crores

10. Milk Butter Ghee Buttermilk Lassi Dahi Ice
Cream
Britannia     
Hatsun Agro
Product Ltd
     
Mother Dairy       
Parag Milk
Foods Pvt Ltd -
Gowardhan
     
Indian private players and its offerings

11. Cheese Paneer Mithai
range
Milk
powder
s
Cream /
Dairy
Whitener
Frozen
Yogurt
Britannia   
Hatsun Agro
Product Ltd
  
Mother Dairy    
Parag Milk Foods
Pvt Ltd –
Gowardhan
    
Indian Players and its offerings

12. Global Players
Switzerland , started in 1866 with sales
turnover Rs 1,471.30 crore
New Zealand, started in 2001 with
sales turnover US $17 billion.
Denmark , started in 1881with annual
turnover of Danish krone (DKK) 64 billion
Barcelona, Spain started in 1994,

13. Cheese Paneer Mithai
range
Milk
powders
Cream
/Dairy
Whiteners
Frozen
Yogurt
Nestle    
Fonterra  
Arla Foods    
Global Players and its offerings

14. Milk Butter Ghee Buttermi
lk
Lasse
e
Dahi Ice
Cream
Nestle
(switzerland)
  
Fonterra
(Swedish and
German Based
Farmers )
  
Arla Foods (New
Zealand )
 
Global Players and its offerings

16. ValueValue Parameters of DairyParameters of Dairy
0
1
2
3
4
5
6
7
Amul
Nestle
Mother Dairy
Britannia

17. StakeholdersStakeholders

18. SUPPLY
CHAIN

20. Milk procurement price has grown by about 2.5Milk procurement price has grown by about 2.5
times in the last decade….times in the last decade….
Trend expected to continue in the near futureTrend expected to continue in the near future

21. Key sector constraints acrossKey sector constraints across
the value chainthe value chain

22. Increasing demand and high inefficiencies acrossIncreasing demand and high inefficiencies across
supply chain open up diverse businesssupply chain open up diverse business
opportunitiesopportunities

23. Growth Drivers of Dairy IndustryGrowth Drivers of Dairy Industry
 Population Growth
 Economic Growth: Indian economy is the
second fastest growing economy in the
world after China and growing at an
average rate of 8%(Y-O-Y)
 Rapid Urbanization: At present about
28.40% of India’s population live in urban
area and is expected to touch 40.76% by
2030
 Rising Income Levels: Average income of
Indians is growing continuously
 Technical innovation in milk products
processing
 The fast changing food habits
 Increased use of fast foods, modified foods
and instant foods
 Health food is a sunrise industry in India
 Value added milk products

28. ThankThank YouYou