SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY

The Covid-19 pandemic-driven lockdown has nearly halted the revenue growth of the Indian
dairy. An increased focus on health and hygiene has become the norm. Online shopping is
the new norm. Initiatives like ‘no-contact delivery’ by key players are accelerating this trend
in online shopping and people will have the luxury of procuring the goods from the comfort
of their homes.

Strengths:
- Milk consumption in India is regular part of the dietary programme irrespective of
the region and hence demand is likely to rise back again continuously.
- Vast pool of highly trained and qualified technical manpower is available at all levels
to support R&D as well as industry operations. Technical manpower is professionally-
trained, technical human resource pool, built over last 30 years.
- A uniform level of quality to the consumer can be provided by maintaining a
standardised processing and testing supply chain network.

Weaknesses:
- Lack of appropriate technologies for proper execution of sanitary and hygienic
conditions.
- Inadequate knowledge amongst the labourers and dairy workers regarding the
transmission of the virus and the strict guidelines to be followed by the FMCG
workers can cause a major challenge for safe procurement and supply of good
quality raw milk.
- Underdeveloped raw milk collection systems in certain parts of the country.
- Lack of infrastructure for offering Dairy Business Management programmes to train
dairy personnel.
- Very little competition to cooperatives because private sector was not allowed to
participate in until recently.

Opportunities:
- Though out-of-home consumption is zero now, consumers are buying products such
as paneer, ghee and cheese in huge quantities from both online/offline retail stores,
as they fear infection.
- Development of mobile applications for keeping all the dairy workers updated about
the entire supply chain operation. Mobile applications for taking orders from the
customers/retailers can also be generated. These steps would make the process
much more transparent and smooth while reducing the need for the customer to
step out of their homes.
- Capitalise on the ongoing Make in India trend in order to beat the MNCs.
- Very few local players with complete knowledge of maintaining a FMCG supply chain
exist in the rural populations which makes it easy for us to penetrate their market.
- Liberalized polices in dairy sector.
- Development of software for project formulation for dairy enterprise.
- There is a great scope for investment in the manufacturing of finished dairy products
such as cheese sauce and cheese powders.
Threats:
- Weak sales of value-added products, VAP like ice cream, cheese, flavoured milk, curd
and yoghurt among others, which are more profitable than liquid milk.
- Requires major capital investment for setting up sanitation units at collection units
and organising regular awareness camps for all workers.
- Introduction of foreign products in Indian market. According to several national
surveys, it has been thoroughly observed that customers identify foreign products as
both safer and of high quality.

- The current scenario of global economic recession largely impacts negatively on

household spending, reducing the purchasing power of the customers towards dairy
products.