An Industrial Visit Report

On
PARAG DAIRY

Submitted by
NAUSHAD SHEKH
Roll No: 2005170700042

(MBA 3rd Semester)

Under the Guidance of

M
Mr. DEVENDRA KUMAR GUPTA
(ASST. PROFESSOR)

KIPM COLLEGE OF MANAGEMENT

GIDA, GORAKHPUR

1
 INDEX
SR.NO PARTICULAR PAGE NO.

1. PREFACE 3

2. ACKNOWLEDGEMENT 4

3. INTRODUCTION 5

4. HISTORY 6-7

5. VISION , MISSION, 8-10

OBJECTIVE
6. ORGANIZATIONAL 11
STRUCTURE
7. PRODUCT LINE 12-14

8. WORKING 15-20

9. MARKETING 21-24

10. COMPETITORS 25

11. PITFALL 26

12. CONCLUSION 27

13. BIBLIOGRAPHY 28

2
 PREFACE
The successful completion of this project was a unique
experience for me because by visiting many place and
interacting various person, I achieved better knowledge about
this project. The experience which I gained by doing this
project was essential at this learning stage of my career. This
project is being submitted which content detailed analysis of the
project under taken by me.
The report provides an opportunity to the students to devote
his/her skills, knowledge and competencies required during this
technical session.

3
 ACKNOWLEDGEMENT

I express my profound gratitude and indebtedness to Mr.

DEVENDRA KUMAR GUPTA, assistant professor, KIPM
College of Management, Gorakhpur for his exemplary
guidance, valuable feedback and constant encouragement
throughout the duration of the report. His valuable suggestions
were of immense help throughout my project work. His
perception criticism kept me working to make this report in a
much better way. Working under his was an extremely
knowledgeable experience for me.

I would also like to give my sincere gratitude to my friends and

colleagues who help me in collecting information and preparing
this report.

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Introduction of “PARAG MILK FOODS
LIMITED”

Parag Milk Foods Ltd (PMFL) founded in 1992 is one of leading dairy
FMCG companies in India. The company manufactures a diverse range
of products like cheese ghee fresh milk whey proteins paneer curd
yoghurt milk powder and dairy based beverages.

It started commercial production in 1992 and commissioned the

Manchar Pune plant for production in 1998 under the Gowardhan
Brand. The company launched Bhagyalaxmi Dairy Farms in 2005 and
started operations at the Palamaner Plant in 2010. The company
launched milk under 'Pride of Cows' Brand in 2011. The company also
launched Mishti Doi which is nutritionally rich in protein. This is a
traditional Bengali dessert. The company believes that the addition of
Mishti Doi to its product portfolio will further build up the
GowardhanDahi category

5
 History of Establishment

The Company was incorporated as Parag Milk & Milk Products Private
Limited on December 29, 1992 with the registrar of companies at
Mumbai with the registered office at Pune as a private limited company
under the Companies Act, 1956. The name of the Company was
changed to Parag Milk Foods Private Limited and a fresh certificate of
incorporation consequent upon change of name was granted by the RoC
on April 11, 2008. the Company was converted into a public limited
company pursuant to approval of the shareholders at an extraordinary
general meeting held on May 16, 2015 and consequently, the name of
the Company was changed to Parag Milk Foods Limited and a fresh
certificate of incorporation consequent upon conversion to a public
limited company was granted to the Company by the RoC on July 7,
2015.
It started as a dairy in Mancher with a 20,000 litre capacity in 1992. It
concentrated on a niche segment, producing skimmed milk powder and
by 2004 became India's largest exporter of the skimmed milk powder.
However, the company faced a challenge when the Government of
India banned export of milk powder on account of local milk shortage.
Thereafter the company began investing in cheese production in
2008. The company invested in a new facility to produce 1200 tonnes of
cheese monthly at a time when the country only produced 600 tonnes of
cheese a month. consumption in India with the expansion of quick-
service restaurants in the country.
Consequently, there was a huge increase in cheese. In 2008, Motilal
Oswald and IDFC alternative fund came in as investors in the
company. As of 2013, Cheese, Ghee and Yogurt contributed 75% of the
company's annual revenue. The company has a second dairy
in palamaner , Andhra Pradesh In 2016, the company turned public with
an initial public offering listing on national stock exchange
and Bombay stock exchange.

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 Key People

Mr. Devendra Shah (Chairman)

He has taken Parag Milk Foods to new heights and under his leadership,
the Group's revenues have grown manifold. Apart from promoting
India’s largest cow farm called Bhagyalaxmi Dairy farm, he also holds
reputed positions in various ventures like Director- Bhimashankar
Sahakari Sakhar Karkhana, Pargaon, Secretary of National centre for
Rural Development, Chairman, Sharad Sahakari Bank and Director,
NDRI.

Mr. Pritam Shah (Managing Director)

In his current role, Mr. Shah is responsible for the overall growth
strategy of the company and consolidating the market presence. He
brought in the best manufacturing technology for the company so as to
compete globally and his strong understanding in procurement and
distribution channels has helped Parag Milk Foods enhance their overall
sales figures.

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 Vision of the Company

They strive to optimize the potential of milk across a host of exciting

dairy products to fill each day with imaginative and healthy options for
their consumers. They believe that milk in all its wonderful forms is one
of nature’s most nutritious foods and anyone who consumes milk
products daily, benefits from vital nutrients that the body needs.
Fulfilling dietary nutritional requirements is a source of great joy and
creativity for them.

A bigger company also has larger responsibilities. While India is the

largest producer of milk in the world, and the commodity has become
an important source of income for 70m rural households, the output per
animal is dismal. A key area of focus for them is to help farmers and
milk producers to boost animal productivity. The enhanced participation
and involvement of the private sector is key to further agricultural
marketing practices and to make milk and its derivatives more
accessible and affordable to India. In this regard, they deploy state- of-
the- art technology to enhance productivity.

They also seek to drive innovation in milk and milk products through
their well-diversified portfolio of brands that deliver dairy products to
international standards of quality. To add value to people’s lives every
day. They at Parag live and breathe their corporate slogan of ’Ideas for
a new day’.

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 Mission of the Company

Their Consumers -
They should be able to trust their brands. This is why food quality is a
fundamental requirement for Parag. They make every effort to ensure
that their processes are safe, and that high quality standards are
maintained throughout the supply chain.
Dairy innovation -
Focus on dairy innovation, enables them to produce an array of
products that make milk moments nutritious, healthy, and enjoyable and
they market them under well targeted portfolio of brands.
Partnership with the dairy farmers -
They are working with dairy farmers to enrich the lives, and set new
standards for sustainable dairy production. They want to use their
resources in a sustainable manner. By having a long term environmental
strategy they can help make this happen.
Good citizenship -
They want to influence the development of society and set an example
through their best practices. To make quality milk and world class dairy
products accessible to the masses. As a large private sector dairy player,
they have the opportunity to do so.
Building long-term relationship with local communities -
They strive to uphold respectful and constructive community relations,
and contribute to the development of communities by building long-
term relationships with people, businesses and organisations.

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 Objective of the Company

- They strive to optimize the potential of milk across a host of

exciting dairy products to fill each day with imaginative and
healthy options for their consumers. They believe that milk in all
its wonderful forms is one of nature’s most nutritious foods and
anyone who consumes milk products daily, benefits from vital
nutrients that the body needs. Fulfilling dietary nutritional
requirements is a source of great joy and creativity for them.

- A bigger company also has larger responsibilities. While India is

the largest producer of milk in the world, and the commodity has
become an important source of income for 70m rural households,
the output per animal is dismal. A key area of focus for us is to
help farmers and milk producers to boost animal productivity. The
enhanced participation and involvement of the private sector is
key to further agricultural marketing practices and to make milk
and its derivatives more accessible and affordable to India. In this
regard, they deploy state- of- the- art technology to enhance
productivity.

-They also seek to drive innovation in milk and milk products

through their well-diversified portfolio of brands that deliver dairy
products to international standards of quality. To add value to
people’s lives every day. They at Parag live and breathe our
corporate slogan of ‘ Ideas for a new day’.

10
 Organizational Structure

The world’s biggest dairy producing country is growing fast and

looking to become an export powerhouse despite major quality
problems.
- Cow milk production 46.57 million tonnes.
- % of worldwide milk production 17%.
- Buffalo milk production 57.96 million tonnes.
- No of milk producing dairy covers.
- Number of buffaloes 38.10 million.
- The productivity of Indian cattle.
- The average size of herd in India is 2-3 milch animals.
- Dairy Cooperatives account for 60% share of processed liquid.
- The average size of herd in India is 2-3 milch.
- Dairy cooperative account for 60% share of processed liquid milk
marketed in the India.
- About 16% of the world milk is produced in India.
- Milk production is growing at 7% by volume and approximately
10% by value.
- Production level of milk is projected to increase to 190 million
tones , worth 5 lakh crore by the year 2015.
- Account for 21% of agricultural production of India.

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 Product line

Indian Dairy Industry

i) Organized ii) Unorganized
- Private Dairies (national)
- Private Dairies (international)

Brands & Products of Parag Dairy

 Gowardhan

Gowardhan is a brand that caters to the traditional Indian family,

residing in both urban and rural areas. The products under the
Gowardhan brand are every
every-day
day dairy products, ones that the
consumers are highly familiar with which are Ghee, Milk, Paneer, Dahi,
Curd , Butter, Dairy Whitener and Gulab Jamun Mix .
The promise of Cow’s milk, purity and taste are the brand's core
rationale. Through invoking a sense of festivity and association with
customs and tradition, the brand adds life to products.

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Brand values of GO are Innovation, fun, health and lifestyle. This is
reflected in its product range such as flavoured cheese wedges and
cheese spread in a tube; convenience foods such as cheese slices and
cheese angles as well as health foods – such as the naturally flavoured
yoghurt, Go slim milk. Their cheese plant has the largest production
capacity in India, with a raw cheese production capacity of 40 MT per
day.

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  Pride of Cows

Located in the lush greenery of Manchar, close to Pune, the Pride of

Cows dairy farm is spread over 26 acres, perched between the Bheema
River and the Bheemeshwari hills. The farm is the most advanced in
India, equipped with the finest international technology for feeding,
milking and processing, conforming to international dairy practices.
The Pride of Cows brand is a reflection of their passion for milk. Milk
captures the imagination, sparks interest and ideas, adds colour and
flavour, and makes you feel fulfilled and happy. They believe in the
significant part played by milk, strengtheni
strengthening
ng and protecting the body
and mind to live a fuller, more complete life each day. They know that
cow’s milk at its best represents the pinnacle of nutrition and health!

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 Working

The Securities and Exchange Board of India Regulations, 2015

stipulates that the Board of Directors of every listed company shall lay
down a code of conduct for all Board members and Senior Management
personnel of the Company.
This “Code of Conduct for Directors and Senior Management" of
Parag Milk Foods Limited , the "Company envisages that the Board of
Directors and Senior Management must act within the bounds of the
authority conferred upon them and with a duty to make and keep
themselves informed about the development in the industry in which the
Company is involved and the legal requirements to be fulfilled.
The Code is intended to maintain the high standards of transparency,
business conduct ethics, corporate culture and the values. The Code is
also to act as a deterrent from unethical doings and to promote ethical
values and is the manifestation of the Company's commitment to
successful operation of the Company's business in the best interest of
the shareholders, creditors, employees and other business associate.

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 Tools and techniques
Applied

One of the best qualities of milk is that one can turn it into numerous
other products through processing. It’s a great opportunity dairy farms
to offer their customers a wider choice of options after initially only
producing milk. Fortunately, don’t need a whole milk processing
factory to offer different dairy goods.
We can get numerous dairy products through milk processing:

 Cream
 Butter
 Pasteurized milk
 Yogurt
 Cheese
 Ice cream
 Fluid milk
 Buttermilk
 And other products

It processes milk to make it pasteurized because it’s forbidden to

sell raw milk in most countries.

To achieve that, milk is heated in pasteurizers — special devices

for pasteurization — and then cooled down. This process destroys
disease-causing microorganisms to make milk safer. Also,
pasteurization increases the shelf life of dairy products

However, pasteurization is a basic process that comes before any other

processing be putting the milk through. And while it’s mandatory to
pasteurize milk, most farmers still tend to do it because of the increased
shelf life.

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The real processing that will turn milk into another dairy product will
include some kind of churning or fermentation. For example, butter is
made through the churning process that makes fat clump into butter,
discharging the liquid — that’s what we call buttermilk. And to create
yogurt, need to add active cultures to milk and keep it in a warm place
until it gets fermented.

Also, one can make low-fat and skim milk through processing to cover
the needs of customers who don’t like or can’t consume whole milk.

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 Equiment used

Milk tanks –

Pre-stack tanks, milk tanks, interim tanks, and mixing tanks are used to
store liquid dairy products to keep them fresh for as long as possible.
Therefore, they are crucial pieces of equipment for milk processing if
you want to produce high-quality, fresh, and safe products.

Pasteurizers –

As already mentioned, pasteurization often lies at the core of milk

processing. Pasteurizers are machines that will simplify this step for
you. A milk pasteurization unit will heat the milk and keep it at a set

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temperature for a set duration, stirring it continuously and then cooling
it down to make it ready for storing or further processing.

Separators –

These machines are used for making low-fat and skim milk and cream.
As a cream separator divides fat from milk, get two products
simultaneously — cream and milk that has a lower fat percentage.
Depending on the working time of the cream separator, you can get
milk and cream of different fat percentages.

Butter churns –

This milk processing device will churn milk into butter, leaving with
two products — butter and buttermilk. The second one is just as popular
as butter, and can sell it right away or ferment it to add more nutrients.

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Homogenizers –

This device improves the texture and taste of milk by making it

more homogenized. The machine does it by squeezing milk through
small holes under pressure, making the cells break apart and
homogenize. Usually, this tool is used when you have milk from
different cows and you want to make it more consistent.

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 Marketing
Marketing department –

The basic objective of marketing is to deliver product on time with

strong supply chain management and control the product price because
it is most important aspect for consumer otherwise they will switch to
another brand products.
The comprehensive and intensive marketing activities at are controlled
by the marketing manager. All the marketing staff goes every day in the
market , supervises the distribution of milk and milk products,the
distribution done through milk van in whole Lucknow city.The route in-
charge or super-visitor duty is to see whether the milk and the
milk product are properly distributed to the agents of Parag in due
proper time.
To observe the market trends the competitor activities, the difficulty of
the market. to penetrate the new market area where the agent of
Parag does not exist. They also supervise whether the rates decided by
the company is as it is executed in the marketor or not. They also
supervise whether the behaviour of the transporter is suitable to the
agent as well, as the customers all the activities which are done by the
marketing supervisor are feed back to the manager marketing and GM
of the unit. At present the distribution of the milk and milk product is
done through 20 TATA 407vehicles which are agreement by the
company.
Presently two insulated vans are supplying the milk and the milk
products.
There are ten retail points of Parag. The agent of Parag take milk and
milk product according to the demand through the supplier of the Parag
van, the distribution is done in the evening and morning .Insulated vans
maintain lowest temperature up to the customers unit supply hygienic,
fresh milk through the milk vans.

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Marketing mix –
In market as there many types of products are available so it becomes
difficult for the marketers to pursue the right segment market so that
they can position product effectively to target customer. In order for this
they use mix of tools of marketing, which is known as marketing mix.
Marketing mix is a set of marketing tools that the firm uses to pursue its
marketing objectives in the target market.
These tools can be classified broadly into 4 P’s of
marketing:
 Product
 Price
 Place
 Promotion
Why SCM strategy is important for an Organization?
Supply chain management strategies are the critical backbone to
Business Organizations today.
Effective Market coverage, availability of products at locations which
hold the key to revenue recognition depends upon the effectiveness of
supply chain strategy rolled out. Transportation network design and
management assume importance to support sales and marketing
strategy.

Supply chain Management encompasses

planning, design, control and implementation of all business processes
related to procurement, manufacturing, distribution and sales order
fulfilment functions of a business.

Distribution strategy –
Distribution of milk should be more through retailers or direct from the
company
Company adopt a new distribution channel as home delivery because
the time is more important

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Promotional strategy –

A) Pulling strategy –

The company should use sales promotion method to attract the

consumers like off discount coupons , poster of pleasing
personality , and creative advertisement of PARAG should be
given on television and radio

Advertisement plays an important role in creating image and top

of mind awareness

B) Pushing strategy –

As retailer plays an important role in promoting the product to the

end users , so schemes and prizes should be given as incentives
for achieving high performance. This will help in providing the
required push for the product. Special display of PARAG at
outlets should be done to attract the consumer to the final
purchasing decision are made at the time of purchase. The
retailers are not satisfied with the commission providing by
PARAG company so company must increase commission on sale.

Pricing Strategy –

Dugdh Sangh should make a strategy to analyze the consumer’s

capability and then set accordingly prices. It should make its products
keeping in the mind of consumer’s wants and demand because in
today’s marketing concept `Consumer is eking´.

Marketing of products should be consumer oriented i.e. marketing of

goods and services according to the needs and wants of consumers. The
management of the company should visit the market on a periodical
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base to give the direct feedback on the market equation. The company
must provide training and refrigerator to their good retailers. Facility of
replacement of milk is very time consuming so company must provide
an inspector who has full power to replace the milk at the retail point.

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 Competitors

Basically PARAG dairy has a peer competition with these companies –

Dean Foods –
Dean Foods is a food and beverage company that processes and
distributes fresh fluid milk and other dairy and dairy case products.

Weston Foods –
Weston Foods is a producer of baked goods.

Saputo Inc. –
Saputo is a producer and distributor of dairy products.

 Tastefully Simple
 Tastefully Simple
 Tastefully simple is a food and beverage company.

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 Pitfalls
Parag Milk Foods shares declined 9 per cent on Monday after the
company reported a net loss in the quarter ended March 31.

The company's net loss stood at Rs 9.64 crore in the fourth quarter of
the financial year 2020-21. It had posted a net profit of Rs 10.11 crore
for the corresponding period a year ago.

The scrip fell as much as 8.91 per cent to Rs 133.45 in morning deals
before recovering some of those losses. At 11 the counter traded at Rs
136.70 apiece on BSE, down 6.69 per cent, sharply underperforming
the S&P BSE Sensex index, which was down 0.47 per cent at
52,228.24.

Parag Milk Foods shares have delivered a negative return in the last one
month, falling up to 7 per cent. The scirp has gained 19 per cent so far
in 2021, and has soared over 41 per cent in the last one year.

Sales of the company declined 18.85 per cent to Rs 434.35 crore in the
quarter ended March 2021 from Rs 535.23 crore in the year-ago period.

For the financial year 2020-21, Parag Milk's net profit came in at Rs
20.71 crore, a decline of 77.90 per cent from its profit of Rs 93.69 crore
for the previous fiscal year.

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 Conclusion
I have studied and analyzed the dairy food product market of
PARAG DAIRY PRODUCTS on different aspects of the
market , organisational structure , pitfalls and marketing
strategy.

The project reports conclude that PARAG DAIRY are easily

available in various parts of country. The PARAG distribution
channel is much strong as they own outlet in the city.
According to the consumer perception and data collection it is
found that there various competitors and also majority people
are satisfied with the quality and taste of PARAG milk
products.

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 Bibliography

 http://www.paragmilkfoods.com/

 https://economictimes.indiatimes.com/

 https://en.wikipedia.org/

 https://www.scribd.com/

 https://www.thehindubusinessline.com/

 https://economictimes.indiatimes.com/

 https://www.moneycontrol.com/

 https://www.goodreturns.in/

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