Schreiber Dynamix Dairy Industries Ltd

Business Analysis Pradeep Kumar 09020242026

INTRODUCTION
Dynamix Dairy Industries Ltd. is a joint venture between Sc reiber !oods Inc." US# and t e $oen%a &ami'y wit Sc reiber as t e majority s are o'der in t e com(any

Sc reiber !oods Dynamix dairy dea'

Rabo India !inance *vt Ltd +RI!,

Re('acement o& around Rs -.. crore o& i/ cost debt.

In&usion o& &res e0uity wort Rs )12 3. crore

 1- (er cent contro''in/ sta%e in DDIL. T e association wit t e internationa' &ast &ood /iant a'so (rovides su(('iers an access to overseas mar%ets &or t e ex(ort o& t eir (roducts. 4a%in/ Sc reiber t e 'ar/est s are o'der in Dynamix
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Sc reiber !oods
Sc reiber !oods is a 5)6 bi''ion /'oba' enter(rise and t e wor'd7s 'ar/est customer2brand dairy com(any. T e (roducts to t e bi//est names in &ast &ood c ains. T e wor'd8s 'ar/est su(('ier o& (rivate2'abe' dairy (roducts to /rocery c ains and w o'esa'ers.
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A leader in innovation
!rom manu&acturin/ t eir own (rinted (ac%a/in/ to deve'o(in/ new (roducts.

Desi/nin/ c eese2(rocessin/ e0ui(ment.

Tec no'o/y 'eader.

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Schreiber Dynamix Dairies India

Mexico

China
Schreiber Food , Green Bay , U . S .

Germany

Brazil

*roducts o& Sc reiber !oods

Natura' C eese *rocess C eese Cream C eese S(ecia'ty C eese Substitute and Imitation C eeses Strin/ C eese <utter <'ends =o/urt Tab'e butter $ ee *rocess c eese Dairy w itener U>T ? *'ain @ &'avored mi'% U>T ? !ruit juices

Dynamix <a'was $rou(

*romoted by two &ami'ies" T e $oen%a !ami'y and T e <a'wa !ami'y" bonded to/et er t rou/ a dynamic s(irit.

Dynamix <a'was $rou(

T e $oen%a !ami'y B t e <a'wa !ami'y ave come to/et er to &orm t e Dynamix <a'was $rou( >eaded by youn/ visionaries" t e $rou( is dynamic in its a((roac . # (roactive and strate/ic mind2set ensures t at t e $rou( sur/es &orward" a'ways" wit a dynamic s(irit.
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T e $oen%a !ami'y
Rea' estate business since t e 'ast 21 years >eaded byCMr. K. M. Goenka ,Mentor C Mr. Vinod K. Goenka,Cand 4r. *ramod D. $oen%a. Mr. Vinod K. GoenkaCis t e C airman"

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T e <a'wa !ami'y
>os(ita'ity and Rea' Estate business since t e 'ast A; years" >eaded by 4r. Usman <a'wa 4r. S a id U. <a'wa" 4ana/in/ Director" Dynamix <a'was $rou(.

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han!in! the "ace o" #o$nshi%s and Industries

T e $rou( was born &rom t e dynamic vision o& 4r. D. 4. $oen%a w o started wit an initiative t rou/ a &oray in t e Rea' Estate deve'o(ment. !ue''ed by t e success in Rea' Estate" t e $rou( /ained t e im(etus to diversi&y and ex(and its business interests.C
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CORE F#LUES
Trust" >onesty and Re'iabi'ity Customer !ocus <ui'din/ t rou/ Re'ations i(s Socia' #wareness B Res(onsibi'ity
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R E A L E S TA T E D AI RY G RA! I T E & M A R B LE B L" C # S & $A % E R S & " S$I TA LI TY ED U C ATI "!

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Dairy sector
India is the $orld&s hi!hest milk %roducer.

Accounts "or more than '() o" the $orld and *+) o" Asia,s #otal %roduction.

Lar!est milch animals in the $orld '-. million cattle and ./ million 0u""alo.

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Dairy sector
*otentia' t at can cata(u't india as major dairy ex(ortin/ country /'oba''y.

$rowt rate o& 9G.

#t (resent on'y -1G o& mi'% is *ac%ed.

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#'' India 4i'% (roduction

SourceH De(artment o& #nima' >usbandry" Dairyin/ B !is eries" 4inistry o& #/ricu'ture" $oI
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4i'% *roduction in India

SourceH De(artment o& #nima' >usbandry" Dairyin/ B !is eries"

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4i'% *roduction to( 1 states

SourceH De(artment o& #nima' >usbandry" Dairyin/ B !is eries" 4inistry o& #/ricu'ture" $oI
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PerCapita !nthlyC!nsu"pti!n#$pen%iture!n&r!a% 'r!ups!()te"s

(inRs*) +,, R!un% il-an% il- Pr!%u.ts 34era0e eat/#00/ 2!tal ,i5e!( 2!tal1!!% 2!tal#$p* 1ish +!n-1!!% 6!useh!l % 1.02 1.9 1.09 2.07 18.6 28.47 25.98 34.04 32.16 40.84 307.6 447.41 9.33 18.81 12.01 22.49 251.19 604.95 35.31 52.85 44.17 63.33 558.78 1052.36 5.22 4.72 5.08 4.55

25th(1970-1971) Rural Urban Rural Urban Rural Urban 3.03 5.01 3.22 5.91 47.31 83.3

27th(1972-1973)

61st(July2004-June2005)

Source 1 Level 2 3attern o" consumer ex%enditure, Various issues, 4ational Sam%le Survey 5r!anisation, Ministry o" Statistics 2 3ro!ramme Im%lementation, G5I

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,!ur.e7Central,tatisti.al8r0anisati!n/9ept*!(,tatisti.s/'8)
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4i'% B Dairy Industry Structure

State co2o(eratives B (rivate'y owned Indian com(anies dominate t e 'i0uid mi'% sector. $ujarat Coo(erative 4i'% 4ar%etin/ !ederation Ltd. +#mu', and Nest'e are t e 'eadin/ ('ayers in t e va'ue2added se/ment
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Dairy Coo(eratives
T e Dairy Coo(erative Networ% +on 4ar 2..A, Inc'udes -:: mi'% unions O(erates in over )39 districts Covers -"))")3A vi''a/e 'eve' societies Owned by around -).A mi''ion &armer members o& w ic ).A mi''ion were women.
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Dairy Coo(eratives
Tired o& ex('oitation by traders and 'oca' (rivate dairy" t e mi'% (roducers or/aniIed t emse'ves into vi''a/e dairy coo(eratives. Daira 4i'% *roducers Union ad its &irst dairy ('ant. It started (roducin/ and mar%etin/Cmi'% (roducts under t eCbrandCnameC#mu'.
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Dairy Coo(eratives
Under t e 'eaders i( o& F. Durien" t e &at er o& mi'% revo'ution" t e #mu' mode' o& coo(eratives soon became an exam('e &or ot ers to emu'ate. T e /overnment wanted t e #mu' mode' to be re('icated in ot er (arts o& t e country. Its own contro''ed dairy coo(eratives ad &ai'ed. #mu' is today t e most

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Dairy Coo(eratives
T e de2'icensin/ o& t e dairy industry as not t reatened dairy coo(eratives.

T ey seem to marc a ead des(ite t e entry o& t e (rivate sector and mu'tinationa's.

<ritannia as been &orced to wit draw &rom t e 'i0uid mi'% mar%et in many (arts o& t e

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Stren/t O& Dairy Coo(eratives

T e bi//est stren/t o& dairy coo(eratives is t eir 'abour intensiveness. Cost e&&ectiveness is anot er im(ortant &actor.

Dairy coo(eratives ave e&&ective'y used t e toi' o& &armers to deve'o( se'&2re'iance.

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4ar%etin/
In 2..;2.A" avera/e dai'y coo(erative mi'% mar%etin/ stood at 2...3 'a% 'itresJ annua' /rowt as avera/ed about 9.- (ercent com(ounded over t e 'ast &ive years.

Durin/ 2..-22..A t e dai'y mi'% su(('y by Coo(eratives to eac -... urban consumers as

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4acro Im(act
T e annua' va'ue o& India8s antici(ated mi'% (roduction amounts to more t an Rs.-"3). bi''ion in 2..;2.A.

Dairy coo(eratives /enerate em('oyment o((ortunities &or around -).A mi''ion &arm &ami'ies.
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4acro Im(act
Livestoc% contributes about 21.9 (ercent to t e $D* &rom a/ricu'ture. #bout 22.31 mi''ion (eo('e wor% in 'ivestoc% sector" w ic is around 1.;G o& t e tota' wor% &orce in t e country.

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<y2%roducts o& dairy industry

urd Cheese pieces Milk fat, curd pieces and coagulated milk Whey assein %rotein

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6S7S 58 #7 94I AL AS7I4

Tec nica' Casein can be used in &o''owin/ (roductsH $'uesCosmetics Leat er C emica's *aints *'astics #'uminium !oi' Sa&ety 4atc es *i/ments Coated *a(er *'ywood Industry *a(er Cones *a(er tubes *a(er C emica's

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A33LI A#I54 : 6S7S 58 I4D6S#;IAL AS7I4

It is used in *a(ercone Industry in bu'% 0uantity &or t e (ur(ose o& to stic% (a(er wit cone. It is used in #d esive Industry" *aint Industry" Leat er Industry and *a(erc emica' Industry.

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 <iode/radab'e (rotective &i'ms are bein/ made &rom dairy and bio&ue' by(roducts by combinin/ t e mi'% (rotein casein wit water and /'ycero' T e &i'm can be used as an edib'e coatin/" w ic extends t e s e'& 'i&e o& &ood (roducts
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SKOT ana'ysis o& Dairy sector

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Dynamix Dairy Industries Limited +DDIL,

>ead0uartered at 4umbai" t e $rou( com(anies are mana/ed by we''2 0ua'i&ied and ex(erienced (ro&essiona's" %nown &or t eir dynamism and abi'ity to ac ieve Cor(orate $oa's. T e s'o/an LDynamism at wor%L says it a'' and it is t e team8s constant endeavor to meet t e i/ standards set by t em.

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Dynamix Dairy Industries Limited +DDIL,

T e Com(any is ISO A..2 certi&ied wit revenues in excess o& INR ) bi''ion in 2..122..9. State2o&2t e2art tec no'o/y and bac%2 u( extension services. One o& t e &ront2runners and t e most trusted names in mi'% (rocessin/ in India.
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Dynamix Dairy Industries Limited +DDIL,

Dynamix Dairy Industries Limited Dee(a% Main" its mana/in/ director.

T e 4i'% s ed o& Dynamix covers seven districts in western 4a aras tra.

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Dynamix Dairy Industries Limited +DDIL,

Dynamix as made substantia' investments in settin/ u( bu'% coo'in/ &aci'ities 2 w ic (rotect t e mi'% &rom contamination 2 at severa' co''ection centres around its ('ant in <aramati. T e com(any wor%s wit t e <aramati 4i'% Union Coo(erative to create awareness amon/ &armers on y/iene and veterinary care.

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Manu"acturin! 3lant
DDIL as a i/ 2tec mi'% (roducin/ ('ant 'ocated at <aramati near 4umbai. T e *'ant" desi/ned by t e renowned Fa'io o& !in'and" s(raw's over an area o& more t an 21 ectares. *rocesses more t an one mi''ion 'iters o& cow mi'% every day.
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Manu"acturin! 3lant
T e ('ant is &u''y automated by Siemens India wit in(uts &rom Tac en a/en" U.S.#. and Ire'and.

T e ('ant strict'y wor%s on t e /uide'ines 'aid down by t e $4* and >aIard #na'ysis Critica' Contro' *oint +>#CC*, (ro/rammes.
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<ac%ward Inte/ration
T e bac%ward inte/ration (ro/ramme o& DDIL is t e resu't o& its commitment to (roduce dairy (roducts (ar internationa' standards.

T e Com(any as set u( undreds o& bu'% coo'in/ stations in --. vi''a/es to (reserve t e 0ua'ity o& mi'%.
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<ac%ward Inte/ration
# demonstration dairy &arm as a'so been setu( to educate t e rura' mi'% (roducers to im(rove and u(/rade t eir native s%i''s re/ardin/ /enetic im(rovement o& t e mi'c 2catt'e" disease contro' and re/u'ated &eedin/.
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$'oba' Tec no'o/y

T e mi'%" be&ore bein/ sent &or (re2 (rocessin/" is c ec%ed &or 0ua'ity usin/ a series o& strin/ent 0ua'ity contro' measures. T e best 0ua'ity mi'% is t en (re2 (rocessed by means o& s(ecia' e0ui(ment im(orted &rom $ermany" %nown as <acto&u/es" to render it abso'ute'y bacteria2&ree.
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$'oba' Tec no'o/y

T e tec no'o/y to manu&acture C eese as been (rovided by Sc reiber !oods" U.S.#. T e Casein tec no'o/y as been im(orted &rom Kest( a'ia" $ermany" w ic are considered to be t e 'eaders in t is science. K ey Systems" U.S.# as su(('ied t e %now2 ow to manu&acture Lactose.

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4i'% (rocurement
In 4a aras tra" to (rocure mi'% as an a/reement wit t eC<aramati coo(erative" we ave been ab'e to estab'is a system t at ensure t e su(('y o& i/ 20ua'ity o& mi'%. *ayment is done accordin/ to t e &at content. 4ore o&ten e /ets a better (rice t an w en e su(('ies direct'y to t e coo(erative.

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4i'% (rocurement
T e dairy as t e seven districts o& *une" So'a(ur" # medna/ar" <eed" Satara" San/'i and Do' a(ur as its mi'% s ed area. Satara" san/'i and %o' a(ur are (redominant'y bu&&a'o mi'% re/ion w ic is used to (re(are cream c eese.
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4i'% (rocurement
Dynamix Dairy devised a 0ua'ity (ro/ramme &or mi'% (rocurement and invested si/ni&icant'y in settin/ u( bu'% coo'ers at a'' mi'% co''ection centresC<aramati area. <u'% coo'in/ centres were 'ocated at an accessib'e 'ocation so t at t e &armer ad to trave' on'y a distance o& -22 %m &rom is &arm to t e co''ection centre.

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om%uterised MILK 5LL7 #I54

#s soon as a &armer arrives at t e co''ection centre" a sam('e o& t e mi'% (oured into a tube. T e sam('e8s &at content instant'y &'as es u( on a &'ic%erin/ com(uter screen. T is determines t e (rice o& t e mi'%.
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C!"puterise% ):;C8::#C2)8+

T e can is t en wei/ ed. # (rinted recei(t &or t e &armer dis('ays t e mi'%8s &at content" wei/ t and (rice and e co''ects is money. Every day o& t e -.1 mi''ion 'itres o& mi'% is been monitored t rou/ 'y t rou/ various sta/es.

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Dynamix dairy (roducts

C eese" <utter" $ ee" Dairy K itener" Non2Dairy Creamer" S%immed 4i'% *owder" =o/urt" Lactose" Casein and K ey *rotein Concentrate.

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Dynamix dairy (roducts

T e com(any is a'so into U>T &'avored mi'% and &ruit juices (ac%ed in tetra (ac%s" w ic do not re0uire t e co'd c ain.

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Dynamix 4anu&actures
T e 4i'%man brand o& <ritannia" Tro(ican juices" Nest'e mi'% and curds" Li(ton 'emon tea *rovides -.. (er cent o& t e c eese used by t e 4cDona'ds c ain. *e(si 24an/o S'ice in tetra (a%s.
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9.

LA CO O H C

ES

LIQUID FRESH MILK

T BU T ER

ICE CREAM, Cheese

PIZZA
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 *re24cDona'd7s era owin/ to 'ac% o& in&rastructure w i'e wit in t e re/ion t e mar%et was not 'ar/e enou/ .

LConse0uent'y" mi'% (roducers were t rowin/ away t e excess mi'% and increasin/'y o(tin/ out o& t e mi'% business"L.
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4c dona'ds
4a%in/ india ex(ort ub &or it (roducts. S'ice2on2s'ice c eese &or 4cDona'd8s It (rovides an o((ortunity to ex(and t eir business" ave access to t e 'atest tec no'o/y and ex(osure to advanced (ractices as we'' as t e abi'ity to /row as 4cDona'd7s ex(ands in India

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<ritannia
DDIL8s Rs 2..2crore ('ant contract manu&actures a ran/e o& (roducts &or 'eadin/ mu'tinationa' brands in t e country. T ese inc'ude (rocessed c eese" butter" U>T2Tetra(a% &'avoured mi'%" / ee and dairy w itener &or <ritannia +mar%eted under t e 'atter8s 4i'%man brand,"
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 =o/ urt +da i," butter and U>T ('ain2 cum2&'avoured mi'% &or Nest'e.

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 Dynamix a'so uses its U>T2cum2 ase(tic (ac%a/in/ &aci'ity &or (roducin/ *e(si8s Tro(icana brand (ure &ruit juices.

T e ('ant ma%es mi'% (owder and ot er bu'% commodities suc as industria' and edib'e /rade casein" 'actose and w ey (rotein concentrates" w ic are 'ar/e'y

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 C9industan LeverC+Dwa'ity" Ka''s" 4ax" 4a/nums, $'axo Smit %'ine" *iIIa >ut.

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4i'% o'idays
Sto((in/ o& mi'% (rocurement !eb 2..A

Dairies c'aim to ave been it by c ea( im(orts &rom New Nea'and and t e subsidiIes o& t e US" EU" New Nea'and and #ustra'ian /overnments.

C<an on im(orts o& dairy (roducts

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SWOT ANALYSIS
Tec nical manp!"er #emand $ar%ins &c rei'er deal

Pr!'lem in dis(ri'u(i!n Peris a'ili(y )!mpe(i(i!n

*le+i'ili(y in mar,e( -+p!r( p!(en(ial

$il, .end!rs )!mpe(i(i!n

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S<I 4oU Dynamix Dairy

Contract &armin/ as commenced wit &inancin/ o& cows and bu'% coo'in/ stations &or co''ection o& mi'%. !undin/ as come &rom State <an% o& India7s contract &armin/ and va'ue c ain &inancin/" w i'e Sc reiber Dynamix Dairies Ltd as brou/ t in t e (rocessin/ (ower and t is as touc ed a wide base o& one 'a% mi'% (roducers in t e mi'% s ed area o& seven districts o& western

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Conc'usion
Severa' /'oba' brands ave been ac0uirin/ to( domestic dairy com(anies in India 'i%e #mu' and Dynamix to use t eir distribution stren/t and bui'd India as a ub &or 'ow2cost mi'% su(('ies. Es(ecia''y at a time w en /'oba' mi'% su(('ies are ittin/ t rou/ t e roo&.C
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