SOURCES OF REVENUE

PROBLEMS/CHALLENGES FACED IN EXISTING SYSTEM

Maintaining the quality of milk when distributed through Container On Wheels(COW) As the milk in COW reduces, temperature inside the container rises because of the empty space and this causes the milk to curdle. Ensuring hygienic environment at the outlets Co-operative Style of Functioning limited freedom in critical decisions like setting tariffs and procurement prices Weak network for milk procurement. Unlike Amul Mother Dairy does not have its own cooperative to source milk Inconsistent and lacks quality milk supply. Competition from MNCs and Domestic players. Amul Food giants like Pepsi, Krafts, HUL and Nestle are also eyeing the fast growing health food and drink market.

PROBLEMS/CHALLENGES FACED IN EXISTING SYSTEMcontd

Low profitability increased fuel prices, power tariff and poly film cost, difficult to keep the prices low low profit margins. Limited presence across the country , southern India is almost untouched Difference in taste in summers and winters Usage of milk powder changes the taste of milk available in summers

RECOMMENDATIONS FOR IMPROVING THE SITUATION

Better training and awareness To counter the lack of cleanliness at outlets by training booth in charge Vertical integration - Own co-operatives for milk production Would ensure the supply of quality milk. Would also assure them to maintain the same taste in both the seasons, summers and winters Expanding outside NCR Improving operational efficiency example through usage of ERP Expanding frozen vegetable business - as it has better margin than milk Mother dairy should utilize their existing distribution network and expand their offerings to include frozen vegetables like frozen beans, frozen onion rings, English carrots etc.

Incremental Innovation