INTRODUCTION OF DAIRY (MILK) INDUSTRY

INDUSTRY PROFILE

Origin and Development of the Industry:

Today, India is ‘The Oyster’ of the global dairy industry. It offers opportunities galore to
entrepreneurs worldwide, who wish to capitalize on one of the world’s largest and fastest
growing markets for milk and milk products. A bagful of ‘pearls’ awaits the international dairy
processor in India.

The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress
around the world. As he expands his overseas operations to India many profitable options await
him. He may transfer- technology, sign joint ventures or use India as a sourcing center for
regional exports. The liberalization of the Indian economy beckons to MNC’s and foreign
investors alike.

India’s dairy sector is expected to triple its production in the next 10 years in view of
expanding potential for export to Europe and the West. Moreover with WTO regulations
expected to come into force in coming years all the developed countries which are among big
exporters today would have to withdraw the support and subsidy to their domestic milk
products sector.

Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents,
compared with the U.S’ 63 cents, and Japan’s $2.8 dollars. Also to take advantage of this
lowest cost of milk production and increasing production in the country multinational
companies are planning to expand their activities here. Some of these milk producers have
already obtained quality standard certificates from the authorities. This will help them in
marketing their products in foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of around 33%
per annum to around Rs.43,500 crores by year 2005. This growth is going to come from the
greater emphasis on the processed foods sector and also by increase iii the conversion of milk
into milk products By 2005, the value of Indian dairy produce is expected to be Rs 10,00,000
million. Presently the market is valued at around Rs. 7,00,000mn.

Background:
India with 134mn cows and 125mn buffaloes, has the largest population of cattle in the world.
Total cattle population in the country as on October’00 stood at 31 3mn. More than fifty
percent of the buffaloes and twenty percent of the cattle in the world are found in India and
most of these are milk cows and milk buffaloes.

Indian dairy sector contributes the large share in agricultural gross domestic products. Presently
there are around 70,000 village dairy cooperatives across the country. The co-operative
societies are federated into 170 district milk producers unions, which is turn has 22-state
cooperative dairy federation. Milk production gives employment to more than 72mn dairy
farmers. In terms of total production, India is the leading producer of milk in the world
followed by USA.

The milk production in 1999-00 is estimated at 78mn MT as compared to 74.5mn MT in the

previous year. This production is expected toincrease to 8 lmn MT by 2000-01. Of this total
produce of 78mn cows’ milk constitute 36mn MT while rest is from other cattle.

While world milk production declined by 2 per cent in the last three years, according to FAO
estimates, Indian production has increased by 4 per cent; The milk production in India accounts
for more than 13% of the total world output and 57% of total Asia’s production. The top five
milk producing nations in the world are India ,USA, Russia, Germany and France.

Although milk production has grown at a fast pace during the last three decades (courtesy:
Operation Flood), milk yield per animal is very low.

The main reasons for the low yield are:

• Lack of use of scientific practices in milking.

• Inadequate availability of fodder in all seasons.

• Unavailability of veterinary health services.

Milk Yield comparison:

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 Country Milk Yield (Kgs per year)
USA 7002
UK 5417
Canada 5348
New Zealand 2976
Pakistan 1052
India 795
World (Average) 2021
Source: Export prospects for agro-based industries, World Trade Centre, Mumbai.

World's major milk producers

(Million MTs)
Country 1997-98 1998-99 (Approx.)
India 71 74.5
USA 71 71
Russia 34 33
Germany 27 27
France 24 24
Pakistan 21 22
Brazil 21 27
UK 14 14
Ukraine 15 14
Poland 12 12
New Zealand 11 12
Netherlands 11 11
Italy 10 10
Australia 9 10

Operation Flood:

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The transition of the Indian milk industry from a situation of net import to that of surplus has
been led by the efforts of National Dairy Development Board’s Operation Flood, programme
under the aegis of the former Chairman of the board Dr. Kurien. Launched in 1970, Operat
Flood has led to the modernization of India’s dairy sector and created a strong network for
procurement processing and distribution of milk by the co-operative sector.

Per capita availability o milk has increased from 132 gm per day in 1950 to over 220 gm per
day in 1998. The main thrust of Operation Flood was to organize dairy cooperatives in the milk
shed areas of the village, and to link them to the four Metro cities, which are the main markets
for milk. The efforts undertaken by NDDB have not only led to enhanced production,
improvement in methods of processing and development of a strong marketing network, but
have also led to the emergence of dairying as an important source of employment and income
generation in the rural areas.

It has also led to an improvement in yields, longer lactation periods, shorter calving intervals,
etc through the use of modem breeding techniques. Establishment of milk collection centers,
and chilling centers has enhanced life of raw milk and enabled minimization of wastage due to
spoilage of milk. Operation Flood has been one of the world’s largest dairy development
programme and looking at the success achieved in India by adopting the co-operative route, a
few other countries have also replicated the model of India’s White Revolution.

Fresh Milk:

Over 50% of the milk produced in India is buffalo milk, and 45% is cow milk. The buffalo
milk contribution to total milk produce is expected to be 54% in 2000. Buffalo milk has 3.6%
protein, 7.4% fat, 5.5% milk sugar, 0.8% ash and 82.7% water whereas cow milk has 3.5%
protein, 3.7% fat, 4.9% milk sugar, 0.7% ash and 87% water.

While presently (for the year 2000) the price of Buffalo milk is ruling at $261-313 per MT that
of cow is ruling at $ 170-267 per MT. Fresh pasteurized milk is available in packaged form.
However,’ a large part of milk consumed in India is not pasteurized, and is sold in loose form
by vendors. Sterilized milk is scarcely available in India.

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Packaged milk can be divided according to fat content as follows, Whole (full cream) milk -
6% fat

Standardized (toned) milk - 4.5% fat

Doubled toned (low fat) milk - 3% fat
Another category of milk, which has a small market is flavoured milk.

Marketing Strategy for 2000 AD

Two key elements of marketing strategy for 2000 AD are: Focus on strong brands and,
product mix expansion to include UHT milk, cheese, ice creams and spreads. The changing
marketing trends will see the shift from generic products to the packaged quasi, regular and
premium brands. The national brands will gradually edge out the regional brands or reduce
their presence. The brand image can do wonders to a product’s marketing as is evident from the
words of Perfume Princess Coco Channel:
In the factory, we pack perfume; in the market, we sell hope!

Emerging Dairy Markets

• Food service institutional market: It is growing at double the rate of consumer market

• Defense market: An important growing market for quality products at reasonable

prices

. Ingredients market: A boom is forecast in the market of dairy products used as raw
material in pharmaceutical and allied industries

• Parlor market: The increasing away-from-home consumption trend opens new vistas
for ready-to-serve dairy products which would ride piggyback on the fast food
revolution sweeping the urban India.

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Market Size and Growth:

Market size for milk (sold in loose! packaged form) is estimated to be 36mn MT valued at
Rs47Obn. The market is currently growing at round 4% pa in volume terms.

The milk surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat,
Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products
is concentrated in these milk surplus States. The top 6 states viz. Uttar Pradesh, Punjab,
Madhya Pradesh, Rajasthan, Tamil Nadu and Gujarat together account for 58% of national
production.

Milk production grew by a mere 1% pa between 1947 and 1970. Since the early 70’s, under
Operation Flood, production growth increased significantly averaging over 5% pa. About 75%
of milk is consumed at the household level which is not a part of commercial dairy industry.
Loose milk has a larger market in India as it is perceived to be fresh by most consumers. In
reality however, it poses a higher risk of adulteration and contamination.

The production of milk products, i.e. milk products including infant milk food, malted food,
condensed milk & cheese stood at 3.07 lakh MT in 1999. Production of milk powder including
infant milk-food has risen to 2.25 lakh MT in 1999, whereas that of malted food is at 65000
MT. Cheese and condensed milk production stands at 5000 and 11000 MT respectively in the
same year.

Packaging Technology

Milk was initially sold door-to-door by the local milkman. When the dairy co operatives
initially started marketing branded milk, it was sold in glass bottles sealed with foil. Over the
years, several developments in packaging media have taken place. In the early 80’s, plastic
pouches replaced the bottles. Plastic pouches made transportation and storage very convenient,
besides reducing costs. Milk packed in plastic pouches/bottles have a shelf life ofjust 1-2 days,
that too only if refrigerated.

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In 1996, Tetra Packs were introduced in India. Tetra Packs are aseptic laminate packs made of
aluminum, paper, board and plastic. Milk stored in tetra packs and treated under Ultra High
Temperature (UHT) technique can be stored for four months without refrigeration. Most of the
dairy co-operatives in Andhra Pradesh, Tamil Nadu, Punjab and Rajasthan sell milk in tetra
packs. However tetra packed milk is costlier by Rs5-7 compared to plastic pouches.

In 1999-00 Nestle launched its UHT milk.’ Amul too re-launched its Amul Taaza brand of
HIlT milk. The UHT milk market is expected to grow at a rate of more than 10-12% in coming
years.

Indian (traditional) Milk Products

There are a large variety of traditional Indian milk products such as:

Makkhan - unsalted butter.

Ghee - butter oil prepared by heat clarification, for longer shelf life.

Kheer - a sweet mix of boiled milk, sugar and rice.

Basundi - milk and sugar boiled down till it thickens.

Rabri - sweetened cream.

Dahi - a type of curd.

Lassi - curd mixed with water and sugar! salt

Channal /Paneer - milk mixed with lactic acid to coagulate.

Khoa - evaporated milk, used as a base to produce sweet meats.

The market for indigenous based milk food products is difficult to estimate as most of these
products are manufactured at home or in small cottage industries catering to local areas.

Consumers while purchasing dairy products look for freshness, quality, taste and texture,
variety and convenience. Products like Dahi and sweets like Kheer, Basundi, Rabri are
perishable products with a shelf life of less than a day.

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These products are therefore manufactured and sold by local milk and sweet shops. There are
several such small shops within the vicinity of residential areas. Consumer loyalty is built by
consistent quality, taste and freshness. There are several sweetmeat shops, which have built a
strong brand franchise, and have several branches located in various parts of a city.

Namaste India’s success: A model for other districts to follow:

Namaste India’s success led to the creation of similar structures of milk producers in other
districts of Gujarat. They drew on Namaste India’s experience in project planning and
execution. Thus the ‘Anand Pattern’ was followed not just in Kaira district but in Mehsana,
Sabarkantha, Banaskantha, Baroda and Surat districts also.

Even before the Dairy Board of India was born, farmers and their leaders carried out empirical
tests of the hypotheses that explained Namaste India’s success. In these districts, milk
producers and their leaders experienced significant commonalties and found easy and effortless
ways to adapt Namaste India’s gameplan to their respective areas.

This led to the Creation of the National Dairy Development Board with the clear mandate of
replicating the ‘Anand pattern’ in other parts of the country. Initially the pattern was followed
for the dairy sector but at a later stage oilseeds, fruit and vegetables, salt, and tree sectors also
benefited from it’s success.

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 DAIRY INDUSTRY IN INDIA
India has the highest livestock population in the world with 50% of the buffaloes and 20% of
the world’s cattle population, most of which are mitch cows and much buffaloes. India’s dairy
industry is considered as one of the most successful development programmes in the post-
Independence period.

In the year 2006-07 the total milk production in the country was over 94.6 million tonnes with
a per capita availability of 229 gms per day. The industry had been recording an annual growth
of 4% during the period 1993-2005, which is almost 3 times the average growth rate of the
dairy industry in the world. Milk processing in India is around 35%, of which the organized
dairy industry account for 13% of the milk produced, while the rest of the milk is either
consumed at farm level, or sold as fresh, non-pasteurized milk through unorganized channels.

Dairy Cooperatives account for the major share of processed liquid milk marketed in the India.
Milk is processed and marketed by 170 Milk Producers’ Cooperative Unions, which federate
into 15 State Cooperative Milk Marketing Federations. Over. the years, several brands have
been created by cooperatives like Amul (GCMIVIF), Vijaya (AP), Verka (Punjab), Saras
(Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur).

Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka
and Tamil Nadu are the milk surplus states in India. The manufacturing of milk products is
obviously high in these milk surplus States. Exports of dairy products have been growing at the
rate of 25% per annum in the terms of quantity terms and 28% in terms of value since 2001.
Significant investment opportunities exist for the manufacturing of value-added milk products
like milk powder, packaged milk, butter, ghee, cheese and ready-to- drink milk products.

India has emerged as the largest milk producing country in the world with present level of
annual milk production estimated as 94.5 million tonnes. We expect a production level of 135
million to by the year 2015. India has a large livestock population base constituting 278 million

9
livestock including 180.5 million cattle, 82.8 million buffaloes, 4 million sheep and 9.2 million
goats. The livestock population is projected to increase to 322 million by the year 2015. The
large livestock population is raised primarily on crop residues and grazing in the common
property including basement. The forest area, which was a major source of grazing, is no
longer available to livestock breeders especially landless people. As a consequence, the
available feed resources fall short of the nutritional requirement. The shortfall is estimated as
59.9 million tonnes for the green fodder and 19.9 million tonnes for dry fodder. This shortfall is
likely to increase by 2015 to 63.5 million tonnes of green fodder and 23.56 million tonnes of
dry fodder.

The landless people are, therefore, likely to face severe shortage of resources to raise cattle and
other species of livestock. There is a real danger that in the absence of resources to maintain
their stock, these under-privilege rural people may give up livestock farming. This could be a
serious setback to lakhs of rural families who derive income as well as employment
opportunities from livestock sector.

India prepares to tackle the international market following Japan, where milk consumption
today, has more than trebled to 70 kg per capita from a mere 20 kg in the ‘sixties - the
consumption of dairy products in other Asian ‘tiger’ nations is also growing. As a consequence
- creating excellent export opportunities for India, as these nations are deficient in milk by at
least 3 million tonnes per year. India, with some 27 per cent of Asia’s population, accounts for
more than half of the milk output with enough growth potential to explore foreign markets. In
anticipation of the export opportunities and in view of the post GAIT scenario, India is gearing
up to tackle the demands of the international market.

Indian companies are preparing themselves to meet international standards and other non-tariff
barriers. Planners are taking measures to meet the sanitary and phyto sanitary specifications -
prescribed by Office International des Epizooties (OlE) under the auspices of the World Trade
Organization (WTO), which range from the quality assurance of processed dairy products to
the health status of livestock.

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Leading Brands

Amul, Parag, Mother Dairy.

Market Growth Rates

1990-91 — 1996-97 18.5%

1996-97 —200 1-02 20.6%

2001-02 —2006-07 11.7%

2004-05—2009-10 9.4%

2009-10—2014-15 7.4%

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Lead Players:

The lead players in processed milk products in the market are as follows:

Amul, and others include Namaste India, Parag, Mother Dairy.

Dairy Whiteners:

About 15% of the total milk output in India is estimated to be processed in the organized dairy.
The industry has maintained a high growth profile, especially in the wake of the Operation
Flood, colloquially also termed as White Revolution, initiated in early 1980s. Today, India
produces over 85 mm tonnes of milk annually. The total milk economy is estimated at Rs 1300
billion in terms of value.

The market for dairy whiteners (commercially know as beverage milk powders and condensed
milk) and creamers is around Rs 3,000 mn. Apart from MNCs like Nestle and companies like
Britannia, the Indian enterprises have also made perceptible progress. Names like Amul, Sapan,
Vijaya, Mohan, Parag and several others have been seen in the marketplace with their
whiteners. These are available mostly in pouches, tetra packs, and in the near future, may be in
miniport ion cups.

Aseptically packed creamer in miniport ions is widely used in the West, but has yet to enter the
Indian market in any substantial way. Amul did make a beginning with its whitener pouches
and has emerged as a leader with a market share of 45% followed by Nestle’s 23%. Aseptically
packed creamer involves techniques to impart a longer shelf life to the product It is packed in
small cups ready to be poured into a cup of tea or coffee. Creamer is fresh milk with increased
fat content (upto 12%) and is aseptically packed after undergoing Ultra Heat Treatment (UHT)
at 1400 C. Its introduction will affect the existing whitener market as a natural milk product
with a longer shelf life.

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Britannia forayed into the dairy business as a diversification move in 1997. Its first offering,
Milkman Butter, just managed a 5% share. The dairy business claims a 10% share in
Britannia’s top line. The company had drawn up plans to atleast capture 5% of the overall fresh
milk market estimated by Britannia at Rs 420 bn. Extending the product portfolio beyond
cheese, dairy whitener and butter, .Britannia entered the fresh milk segment in 2001. In the
dairy whitener, the company has managed to capture a significant market share.

Nestle India with its Everyday dairy whitener has established its brand well. It has also entered
into the market with its Nestle Pure Milk and, of course, a product in its niche area, Nescafe
Frappe. Having earlier launched UHT milk, Nestle is concentrating on expanding its reach. Its
plans covered Rs 800 mn investment in its Moga (Punjab) facility. New product segments like
butter, yoghurt and flavored milk were also on the cards.

While Sapan characterizes it as Dairy Special (instant milk mix for tea and coffee), Vijaya is
the only LINT processed milk homogenized brand sold in the market in 200 ml and one litre
tetrapack. All the rest, Amulya, Meadow, Mohan, Parag and Shweta dairy whiteners are in the
form of powders. Mohan also markets a non- dairy whitener alongside its dairy type product.

Since India is a major consumer of tea and coffee, it would be a very large market if only the
price was not a constraint. In addition to domestic consumption, the whiteners/creamers find a
high level of institutional.

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 PROFILE OF THE ORGANIZATION

Namaste India Foods Pvt. Ltd. is an Indian Dairy Company, the sister concern
of 3500 Cr. RSPL Ltd., is committed to supply pure milk and fresh milk products,
Located at Shivrajpur. 31 km. away from Kanpur Nagar, the fully automated unit,
at par with international standards, is planning to collect, process and pasteurize 4
lakh liters of milk per day.

We have Collection Centres in one thousand villages and will be extending to

2000 villages in the upcoming two years. In this way, we are planning to supply
pure and fresh milk to every house, in every village and very soon, in every city.
Milk is considered most essential for our healthy diet. Be it for kids or women,
milk is always recommended to be a part of our daily intake.

We, at Namaste India, understand the value of your health and therefore try to
provide you fresh and rich milk, full of vitamins. The company is establishing
Milk Chilling Centres at a distance of every 50 km. from its Dairy Plant (around
Kanpur). It strictly follows the rules of cleanliness while processing! pasteurizing
its products. Our product portfolio includes Pasteurized Milk, Pure Ghee, SMP &
Dairy Whitener, Paneer, Buttermilk and other dairy products.

14
 Thus milk and milk products, under the brand ‘Namaste India’, are pure
and fresh in quality, made available to consumers at most competitive prices. In a
way, Namaste India milk and milk products embody the essence of the
company’s motto, “Doodh Gaadha, Taaqat Zyaada”.

Namaste India Milk

Doodh Gaada, Taaqat Zyaada!

Milk is considered the most essential for our health diet, be it kids or women milk is always
suggested to part of daily intake. We at Namaste India understand the value of your health and
therefore try to provide you fresh and rich milk of vitamins.

Pasteurize Milk Variants:

Milk is considered the most essential for our health diet, be it kids or women milk is always
suggested to part of daily intake. We at Namaste India understand the value of your health and
therefore try to provide you fresh and rich milk of vitamins.

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Nutritional Values

Product Range Fat (%) SNF (%)

Namaste India Gaada Maaza (Full Cream) 6 9

Namaste India Milky Magic (Standardized) 4.5 8.5

Namaste India Active (Toned Milk) 3 8.5

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 INFRASTRUCTURE & MILK PROCUREMENT

Milk Procurement

Milk is collected from various villages through world-class AMCU and brought to the
company’s Chilling Centres after ensuring that the milk is not tampered with and what you get
is pure and fresh milk.

Cold Chain Process

Before the milk is delivered to you, it is kept in hygienic Cold Chains from where you get fresh
and nutritious milk.

Quality Check

The milk is purified in the company’s dairy by experts who use the latest technology in the
Automatic Plant. That’s why Namaste India Milk meets the highest grades of purity.

Pasteurization

Milk is pasteurized through the Automatic Ultra-modern Milk Processing System so that the
milk retains its purity and nutritional value.

Home Delivery

From collecting milk to home delivery, everything is supervised by our experts because your
family’s health is as important to us as it is to you.

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18
DAIRY PRODUCTS

RSPL Limited is all set to further consolidate its position in the dairy business with the name of
“Namaste India Foods Private Ltd.” Along with the taste the milk is full of calcium, protein,
carbohydrates, vitamins, etc., for healthy growth of a human body. The Company aims to
provide remunerative returns to the farmers and also serve the interest of consumers by
providing quality product which are good value for money.

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FOR BEST RESULT, STORE CONTINUOUSLY UNDER
REFRIGERATION BELOW 8°C UNTIL “USE BY DATE”

Namaste India
Butter Milk Plain & Spiced (Chach)

PLAIN BUTTER MILK

Poly Pack - 500 ml
Phosphates shall be negative, ph shall be 4.60 ± 0.10,Acidity shall be 0.50 to
0.55, Fat% -1.50 ± 0.10,S.N.F% -6.00 TO 6.50.
Hygienic Conditions
The material shall be manufactured and packed under hygienic conditions as
penS: 2491
Namaste India

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 NUTRITIONAL INFORMATION

Serving size 200 ml

Amount per 100 ml
Energy 29.3 Kcal
Energy from Fat 13.5 Kcal
Total Fat g 1
Saturated Fat g 05
Total Carbohydrate g 2.3g
Sodium mg 30
Aded Sugar g 0
Protein g 2.1 g
Calcium mg 91
Phosphorus 79g
Thiamine 25mcg
Riboflavin 73mcg
Niacin 61mcg
Folic acid 4.5mcg
Not a significant source of Vitamin C, Iron and Dietary Fiber

Benefits & Usage:

• Namaste India Butter milk is made from purest cow & buffalo milk. Naturally made, it
is very refreshing summer drink.

• Healthy ,Tasty, Fresh and Natural.

• Shake well before use.

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Namaste India
Skimmed Milk Powder
Pack Size:
1 kg Pouch/500 gpouch. (Three layer metal ised poly)
Specifications

The Product obtained from Skimmed Milk of cow or buffalo or a combination thereof by the
removal of water through spray diying. The Product shall be white or white with greenish tinge
to light cream in colour. It shall be free from lumps except those that break uo readily under
slight pressure and shall be reasonably free from scorched particles. The product shall be free
from extraneous matter, added colour and flavour. The flavour of the product or of the
reconstituted milk shall be pleasant and clean.

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Hygienic Conditions
The material shall be manufactured and packed under hygienic conditions as per
IS: 2491

Instructions for use

To make a fluid not below the composition of Skimmed Milk with the contents of this package
add five(5) parts of water by volume to one (1) part by volume of this “Namaste India”
Skimmed Milk Powder.

Ideal for
Delicious Skimmed Milk,Tea, coffee, curd, ice-creame, pudding Sweets, Khoya and Chhena.

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Product Features
• Namaste India Skimmed Milk S.M.P.is a non fat, protein reach milk powder.
.. Most suitable for use by people for use by people on low calorie and high protein diet.

• Low fat content,

• High protein content,

• Cholesterol free

• Balanced caloric value

• Consistent solubility without lumping

• Rich taste and easy digestibility

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Namaste India Ghee
Sarva Gunna Sampanna Shudh Ghee
Homemade ghee are always considered to be best in India and we at Namaste India
understands our customers need and thus assure to provide ghee which is rich in taste, aroma
and its granules gives you the best taste you had ever experienced.

Pack Size:
25 ml,200m1,500m1,llitre,15 kg

Ingredients:
Milk Fat

Shelf Life:
BEST BEFORE NiNE MONTHS FROM DATE OF PACKAG1NG.WHEN
STORED IN ACOOL AND DRY PLACE.

25
Benefits & Usage:
• Namaste India Ghee is made from purest cow & buffalo milk. Naturally made, it is
consistent in texture.

• Namaste India pure ghee is measure source of fat soluble vitamins A,D,E and K are
best absorbed when taken with food containing a little fat or oil. Flealthy, Tasty, Fresh
and Natural.

• Wholesome

• Rich in traditional taste of fine homemade ghee

• Rich, traditional aroma

• The ideal choice for making mouth watering north & south Indian dishes, sweets and
savories.

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Namaste India Paneer
Pack Size:
200 gins
Ingredients:

Milk Solids ,Citric Acid

Shell Life:

5 DAYS FROM PACKAGiNG WHEN STORED AT 2° TO 4°C OR BELOW

Specifications

Fat shall not be less than 50% of the dry matter and Moisture shall not cotain more than 70

percent.

Instructions for use

Store in refrigerator, take out the required quantity to be cooked from the pack

and keep it in lukewarm water for at least 30 minutes before cooking.

Once removed, do not refreeze.

NUTRITONAL INFORMATION

Amount per 100 g

Energy Kcal 289 g
Energy from Fat Kcal 225
Total Fat g 25
Saturated Fat g 15
Cholesterol mg 66
Carbohydrate g 2
Aded Sugar g 0
Protein g 14
Calcium mg 480
Not a significant source of Vitamin C, Iron and Dietary Fiber

27
Product Features.

• Namaste India Malai dar Paneer, Fresh and Pure. Enriched with extra nutrition &

Energy. It gives pleasant and delicious taste. Enjoy the softness and the real goodness of

dairy.

Most convenient form of Paneer

• Rich in Protein

• Having high fat and low moisture and free from Bacterial contamination compared to
loose paneer available in market.

• Paneer having smooth, uniform texture and softness.

Namaste India Dairy Whitener

Pack Size:
1 kg PoucbfR.T.,500 g PouchlR.T.,200g pouch/R.T. R.s.1O,5 and R.s.3 Pack
Ingredients:
Partly Skimmed Milk Powder and Sugar.
Shelf Life:
Best before 9 months of packaging.

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Specifications
The Product is prepared by spray drying of cow milk, buffalo milk or mixture thereof. The milk
may be modified by partial removal/substitution of milk solids (non-fat) with carbohydrates
such as sucrose, dextrose or dextrine. The product shall be white or light creame in colour,
uniform in composition and free from lumps except those that break up readily under slight
pressure and shall be reasonably free from scorched particles.

Hygienic Conditions
The material shall be manufactured and packed under hygienic conditions as per
IS: 2491

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 ABOUT ROHIT SURFACTANTS PRIVATE LIMITED
In the ever changing world where changes are made at fast pace. It is important to understand
how these changes affect our lives and lifestyles.

The driving force at RSPL Group is to understand profound changes in product technology and
consumer needs to make our brands the way consumer desires them to be. We believe that the
only constant in history of mankind is evolution and so should it is our endeavor to give
superior brand experience and most superior value for consumer’s money. Our undeterred
pursuit for evolution has led the company to progress on the path of value during our growth.

RSPL Group is 3800 crore diversified conglomerate, which is committed for value for money
propositions & credited with several innovations over last 3 decades. The sagacity to weave its
business around consumer needs has conferred RSPL Group with a distinct value and identity.
Efficient capital structure, cutting edge technology, operational discipline and a widespread
distribution network, have together attributed to enhance RSPL Group and enabled the
organization to deliver value to consumers. Keeping in line with its expansion programme. The
company has been established detergent manufacturing units in various locations across the
India to enable the company to fulfill the demand of its products across the country more
effectively.

The company is going to set up a new unit in Raipur, Chhattisgarh for the manufacturing of
detergent cake, powder and acid slurry. The company has applied for necessary approvals to set
up the unit. Within, next couple of years the group’s installed capacity of detergents would
cross 800000 MT PA.

To make its presence stronger in Southern States, the company is planning to set up a unit in
Karnataka. The company has already acquired. Land at Bidar, Karnataka for the purpose.
Keeping in view the expanding market of personal & home care products in India, the company
has set up a unit in Haridwar for the manufacturing of personal and home care products like
Shampoo, Hair oil, Toothpaste, Moisturiser, Shaving Cream, Liquid Hand Wash, Floor
Cleaner, Liquid Detergent and Toilet Cleaner.. Installed capacity of unit will be 123 MT per
day for all the products taken together. The unit has become operational in March 2010.

30
Our Core Ideology OUR MISSION

To be a part of consumer’s daily life by giving them best value for money through well
researched and ever evolving excellent products.

OUR CORE VALUES

• Consumer Centricity

• Continuous Improvement

• Integrity

• Thorough Planning and Execution

31
 GROUP PROFILE

ROHIT SURFECTANTS PVT. LTD.

The Group

The leading brand “GHARI” and some other brands in the detergent segment were earlier
owned by KTC Private Limited, the marketing company of the group. The company has been
merged with Leayan Overseas Private Limited, another group company engaged in the
manufacturing and marketing of leather shoes under the brand name of “RED CHIEF” and
finished leather.

Pursuant to the Scheme of amalgamation becoming effective, the name of the company has
been changed to “Ghari Industries Private Limited”. The activities of the merged entity are now
broadly into two segments, the marketing and trading of Ghari detergent cake/detergent powder
and manufacturing and marketing of leather shoes and finished leather.

Rohit Surfactants Private Limited -Company does the manufacturing and trading of detergents,
toilet Ghari Soaps and other FMCG products. This company is involved in the business of
construction and real estate. Calcutta Detergents Private Limited -This company does activities
of manufacturing and trading of detergents. All the Companies are under the supervision and
cont Roll of the same management, thereby making its recognition as the “GHARL GROUP”.

We have a very strong market presence in major parts of India, however some parts had been
left untouched hitherto. Steps are being taken to strengthen and increase our already strong
dealer network of 2500 dealers, so that we are able to penetrate those markets where we have
little or no presence. By the next two to three years, we hope to have a significant share of the
Indian Detergent market. Initiatives are being taken to set up modernized units in order to meet
the growing consumer demand for our products and fulfill the age-old adage of ‘value for
money’.

Last but not the least, it is the dedicated and loyal workforce of the group which has helped the
Ghari group to reach such a leading market position. We try to create a work environment
which is employee friendly & soothing. This approach has been of great value in the retention
of our employees, and is evident from a very low employee turnover rate of less than 1%. The

32
ultimate destination of the group is healthy industrial and economic growth and to honour its
commitments towards the nation & society.

Group Vision & Outlook

Ghari group has diversified into other businesses with firm foot in leather, wind energy,
construction, and toilet soap. With a view to backward integration of raw materials (Alpha ole
fin suffocates, optical brightener and integrated packaging unit for captive consumption) the
group has allocated rupees 50 crores for this purpose and has managed its funding with its
internal accruals and borrowing from financial institution. Rupees 35 crores approx. has
already been Invested.

The group with its commitment to quality cont Roll to utmost level has setup a fleet of tankers
and trailers to stop adulteration and to manage its logistics more efficiently and cost effectively.
To avoid double taxation and transport cost group has established their production units and
depots in different locations across the country.

GHARI DETERGENT BRAND

Ghari Detergents brand is one of the fastest growing in the stagnant FMCG market. The Ghari
Group, in spite of such competition, is making great strides in the Indian Detergent Industry
and is currently ranked as third largest brand in its category with more than 16% market share
(approx.) and is striving to better its position by constant endeavor.

With the passage of time, by adopting latest technology and using premium quality raw
material, it developed a product under the brand name ‘GTIARI’ to the liking of the masses
and achieved a group turnover of more than Rupees 1000 Crores in the financial year 2006-07,
continuing with an average growth rate of 15 to 20%.

Board of Directors:

33
S.No. Name Designation
1. Shri Murli Dhar Chairman & Managing
Director
2. Shri Bimal Kumar Managing Director
3. Shri Manoj Gyanchandani Director
4. Shri Rahul Gyanchandani Director
5. Shri Rohit Gyanchandani Director
6. Shri Bansi Lal Director
7. Shri Tara Chand Director
8. Dr. R.P. Singh Director

34
 MANAGEMENT

DIRECTORS ON BOARD

RSPL Group is promoted by Gyanchandani family. The promoter directors are combination of
experienced and young persons.

Murli Dhar

Chairman & Managing Director

Joined the family business of his father Late Dayal Das.

His vision and strong dedication laid the foundation of the ‘RSPL Limited’ group. He has the
responsibilities of finalizing Corporate Strategy & Planning for the growth of the business of
the group.

Under his leadership the group has established itself amongst the top manufacturers of
detergent products in a short period of nearly 3 decades. He is guiding the younger generation
to venture into new categories.

Bimal Kumar,

Managing Director,

Joined the family business of his father with his elder brother Shri Murli
Dhar.

His responsibilities are to supervise and control management of the entire group. His
contribution to the Human Resource Development in the group has been enormous and his
media and advertisement strategy has proved to be superb efficient in terms of sales response.
His ability to spot trends early has helped to identify new segments the company should foray.

Manoj Kumar

35
Director
Joined the business in 1996 at a very young age.

His contribution to the group was the first business diversification in the leather. industry. After
establishing Leather and Footwear venture and turning the business into Rs. 100 crores, he is
on his way to create new land marks in Dairy business.

Rahul Gyanchandani
Joint Managing Director
He was appointed Director of the company in the year 2004.

His present responsibilities are operations of Soap & Detergent division of the Company. He is
also actively involved in the planning of new projects. All the expansion plans of soap &
detergent division are going under in his able direction. He has a vision for backward
integration. Under his able guidance, the company has successfully entered into toilet soap
segment by launching toilet soap under the brand name “VENUS” and foraying into homecare
segment.

Rohit Gyanchandani
Director
He was inducted to the Board of the Company in the year 2005.
He has the responsibility of planning and monitoring advertising and evolving new strategies
for marketing. He is also looking after real estate business of the group. One of the group
company, Nimmi Build Tech Pvt. Ltd. is developing resident.

36
37
 AIMS AND OBJECTIVES

MAJOR OBJECTIVE:
1. To find out market share.

2. To find out root cause which effect the sales.

3. Evaluation of standard of quality of milk and milk product to be marketed by

Federation.

4. To provide encouragement incentive on production, Procurement, Processing and

marketing activities of milk product for the economic development of farmer
community.

5. To help member milk unions in technology administrative, financial assistance,

6. To arrange collection storage and transport for milk and milk products.

7. To encourage activities related to development and extension of dairy industry to

improve the economic development of milk producers and dairy industry.

38
 INTRODUCTION OF THE TOPIC

“A COMPARATIVE ANALYSIS OF PACKAGED MILK MARKET

WITH
SPECIAL REFERENCE TO NAMASTE INDIA IN KANPUR”

To conduct this study I first set our major & minor objectives in which I have to recognize the
market share of the company and to identified the performance over its key competitors, I also
want to know its key competent advantage over its competitors.

To accomplish my objective of the study I have prepared a questionnaire and collect the data of
Kanpur milk market about how consumers rate Namaste India milk over its competitors.

In my study I have also got the feedback of retailers in which I was able to recognize the
market share of Namaste India and its major competitors like Amul, Mother Dairy, Parag, and
Paras.

39
 SWOT ANALYSIS
STRENGHT
• Limited horizon
• Retail, outlet are limited
• Home delivery services are not available
• No separate CRM department

WEAKNESS
• Parag Dairy Local milkmen

OPPORTUNITIES
 Marketing Strategies are new and different.

Threats
• Extend their reach in other states
• Should focus on rural areas
• Allocation of distributors to expand distribution channels
• Namaste India ATM’s to establish in urban area.
LOCAL MILKMAN
• With annual Sales Turnover -(2011-12) Rs. 11254 Crores (US $2.5 Billion Britannia
Industries Ltd (Britannia) was established in 1892 in Kolkata

• Indias largest food product marketing organisation with annual Sales Turnover- (2011-
12) Rs. 11668 Crores (US $2.5 Billion) BRJTANNIA Founded in 1946

• 22. AMUL MILK

• Advertising through radio, television etc.

• Promotional tools, like Banners, hoardings, pamphlets.

40
 PACKAGED MILK MARKET IN AMUL

Amul means “priceless” in Sanskrit. The brand name “Amul” from the Sanskrit “Amoolya”
was suggested by a quality expert in Anand. Variants, all meaning priceless are found in
several Indian language. Amul products have been in use in millions of homes since 1946.

Amul Butter, Amul Milk Powder, amul Ghee, Amul Spray, Amul Cheese, Amul chocolates,
Amul Shrikhand, Amul Ice cream, Nutranmul, Amul Milk and Amulya have made Amul a
leading food brand in India. Turnover Rs. 25 billion in 2002.

Today Amul is a symbol of many things of high quality products sold at reasonable prices of
the genesis of a vast co-operative network of the triumph of indigenous technology of the
marketing savvy of a farmer’s organization, and of a proven model for dairy development.

The revaluation started as awareness may the farmers that grew and matured into a protest
movement and determination to liberate them. Over four decades ago the life of a farmer in
Kaira district was like that of his counterpart anywhere also in India. Income from dairy was
under pendable. Private traders and middleman controlled the marketing and distribution of
milk.

As milk is perishable, farmers were compelled to sell it for what every they were offered. In
this situation, the one who gained was the private traders. Gradually the realization downed on
the farmers that the exploitation by the traders could be checker do only if they marketed their
product themselves. To do this they need some sort of organization this realization is what led
to the establishment of Kaira District Cooperative Milk producer Union Limited (Popularly
known as Amul), which was formally registered on December 14, 1946.

The Kaira Union started Pasteurizing milk for the Bombay milk scheme in June 1948. An
assured market proved a great incentive to milk producers of the district by the end of 1948,

41
more than 400 farmers joined in more village societies and the quantity of milk handled by
union increase from 250 to 5000 liters per day.

As the movement spread in the district, it was found that the Bombay Milk Scheme could not
absorb the extra milk collected by the Kaira union in summer when the production on an
average was 2.5 times more than summer.

Even by 1953, the farmer’s embers have no assured market for the extra milk produced
summer. The remedy was to setup a plant to process milk into products like butter and milk
powder. A five Million Rupees Plant to manufacture milk powder and butter was competed in
1955. In 1958 the factory was expanded to manufacture sweetened condensed milk. Two year
later a new wing was added for manufacture of 25000 tons of roller derived baby food and 600
tons of cheese per year. This cheese was based on the formula developed with the assistance of
Central Food Technology.

42
At an early stage, federation recognized the IT excellence was essential to retaining our
comparative edge. In the coming year federation will implement Virtual private network (VPN)

43
connectivity to facilitate on line information exchange with business partners and monitoring
production and sales in order to improve quality of services and an optimization of resources
across supply points. As recognition of IT excellence federation has been selected for
international CIO 100 Award. Federation has incorporated the cooperative logo to its web site
www.amulcoop, which has enhanced the Amul brand across world, giving then another vital
business.

EXPORTS:

Export turnover of federation has grown up by 17% in terms of volume, total exports being
more than 400 crore. Due to the subsidies allowed by European unions, the international prices
were very low as a result export turnover in value terms has declined by 6%.

The union not only takes the responsibility of collecting and marketing the surplus milk but
also provides member with every provisions that is required to enhance production. Thus Kaira
union has full fledge machinery geared to provide animal health care and breeding facilities.
The union has 16 mobile v dispensaries are managed by fully qualified staff. All the visages are
visited by monthly on predetermined day, to provide animal health care. A 24 hours emergency
service is available at a fee Rs. 35 for members and Rs. 100 for non members. All the mobile
vans are equipped with radio set.

The union runs a semen production center where it maintains high pedigreed Surti buffalo
bulls, frees in a bulls, Jursy bulls etc. balanced feed concentrate is manufactured in unions
cattle feed plant and sold to the members through societies at cost.

After discussing the origin and the actives of the federation now let’s have a look on the current
position of the federation at various ends.

44
Packaging Technology

Milk was initially sold door-to-door by the local milkman. When the dairy co operatives
initially started marketing branded milk, it was sold in glass bottles sealed with foil. Over the
years, several developments in packaging media have taken place. In the early 80’s, plastic
pouches replaced the bottles. Plastic pouches made transportation and storage very convenient,
besides reducing costs.

Milk packed in plastic pouches/bottles have a shelf life of just 1-2 days, that too only if
refrigerated. In 1996, Tetra Packs were introduced in India. Tetra Packs are aseptic laminate
packs made of aluminum, paper, board and plastic.

Milk stored in tetra packs and treated under Ultra High Temperature (UT-IT) technique can be
stored for four months without refrigeration. Most of the dairy co-operatives in Andhra
Pradesh, Tamil Nadu, Punjab and Rajasthan sell milk in tetra packs. However tetra packed milk
is costlier by Rs5-7 compared to plastic pouches.

In 1999-00 Nestle launched its UHT milk. Amul too re-launched its Amul Taaza brand of
UHT milk. The UHT milk market is expected to grow at a rate of more than 10-12% in coming
years.

45
MILK PROCUREMENT:

Total milk procurement by the members has reached an average of 80.45 lakh kilogram per day
from 73.72 in 2007-08.

46
 SALES
The total sales md growth pattern of Amuls products during 1 lyears have been shown by this
diagram.

During the year, sales of Amul Federation registered a quantum growth of 27.7 per cent to
reach Rs. 6711.31 crores (Rs.67.l1 billion). Last year, our turnover was Rs. 5255.41 crores (Rs.
52.55 billion). This is an extremely impressive growth, when viewed from the perspective of
22.90 per cent growth that we had achieved in 2007-08.

I am also pleased to note that our Federation has done remarkably well in most of the value
added consumer packs. Sales of Amul Milk in pouches have grown by 44% in value terms.
URT milk has also shown an impressive growth of 26%. Our sales in Amul Processed Cheese
have shown consistent and very impressive growth of 25%.

47
Amul Ice cream has shown an impressive growth of 16 per cent in value terms over the last
year. At the same time we have remained No. 1 Ice-cream brand in India leaving a wide gap
with the nearest competitor. In the Infant Milk Food category, our brand Amul spray registered
a growth of 20%. In the dairy whitener segment, Amulya recorded a growth of almost 12%.

We managed to achieve 17 per cent value growth in Butter despite intense competition in this
category. In our effort to ensure that all sections of our society are able to afford Amul Butter,
we have given special emphasis to low unit value packs.

RETAILING:

The concept of Amul parlors initiated in 2002 has come a long way and has today, evolved into
the most visible face of brand Amul. The network of more than 4000 parlors in almost all
major towns of the country bears testimony to the fact that the model is hugely scalable and
inherently sustainable. This retailing initiative has not only enabled us to interface directly with
consumer, it has also helped us in our endeavor to reduce middle-men from the supply chain.

The addition of more than 2000 parlors during the current year is largely attributed to our
channel partners i.e. our wholesale distributors who have embraced the concept by starting
their own parlors and also motivated franchises to create parlors for meaningful employment.

The relentless focus on expansion of Amul parlors is now paying us rich dividends. The
retailing business alone fetched us a sales turnover of more than Rs.200 Crores during the
current year. Moreover, these parlors also provide us with an effective platform to introduce all
the innovative products that we launch, every year.

We have also made giant strides forward in reaching out to millions of railway commuters by
setting up more than 50 Amul stalls across major railway stations of the country. The Indian
Railways have also recognized our efforts and with active support from IRCTC, we plan to set
up another 300 railway parlors during the coming year. Ice-cream scooping parlors, the latest
addition to the retailing revolution are yet another blockbuster from the house of Amul. We
expect to add 200 more parlors in the coming year.

Taking cue from the success of our parlors, commitment from our sales team and all our
channel partners dealing in milk, ice-cream and dairy products; we plan to take the total tally of
Amul parlors to 10000 by adding 6000 parlors during the coming financial year.

48
DISTRIBUTION NETWORK:

Over a period of time we have built unique capabilities of distributing Ambient, Chilled,
Frozen and Fresh products simultaneously through our versatile distribution highways. Today,
3500 Distributors for Value added milk products, 1800 Distributors for Fresh Milk, ensure that
Amul Products are available to all segments of consumers in India through more than 2 Million
outlets.

To enhance further efficiency in distribution, two key initiatives have been taken during the
year.

Firstly, we expanded competency based distribution by inducting about 300 Distributors

having expertise in servicing specific market segments and, secondly, we are poised to divide
the value added product lines amongst three sets of Distributors to cater to the same market.
This is going to give us more and more competitive advantage.

In Federation, our distributor is considered to be the real Marketing Manager. To update them
with modern marketing concept a workshop on Marketing and Sales Management is being
conducted in collaboration with a premier business school. So far, 1100 Distributors have been
benefited from this workshop.

SLDP (Self Leadership Development Programme) for Distributor is another major initiative
taken during the year primarily with objective of training them to implement TQM at their and
at the retailer level. This will ultimately serve to bring all Stake holders under common
platform in Strategic Planning Process of the Organization and to develop Self Leadership
amongst each individual Distributor.

Our Amul Yatra Programmes ensure that our every new distributor and other business partners
visit Anand to get an exposure to our co operative structure, our culture as well as our
operational systems and processes. The initiative continued this year as well and so far, about
7400 Distributors and other business associates have visited Anand on Amul Yatra.

49
 CO-OPERATIVE DEVELOPMENT PROGRAM
During last three years Amuls members unions have implemented an Internal Consultant
Development (ICD) intervention, addressing the needs to strengthen the business of dairy
farmer’s members and dairy co-operative societies.

Recognizing that leaders are essential to face growing Challenges, federation has initiated a
chairman and secretaries orientation program, held at Gandhi Nagar Mother dairy, which is
focused on strengthening the leadership skills and values.

During the year, Member Unions continued to implement the module on Vision Mission
Strategy (VMS) for primary milk producer members & Village Dairy Cooperatives. Facilitated
by specially trained consultants, 736 Village Dairy Cooperative Societies (VDCS) have
conducted their Vision Mission Strategy Workshops, prepared their Mission Statements &
Business Plans for next five years.

Till today total 6012 \TDCS have prepared their mission statement and Business plan. Member
unions are reviewing this business plan every year under VMS annual revisit programme and
facilitate VDCS to prepare action plan for next year to propel the momentum gained through
VMS.

In order to strengthen knowledge and skill base of young girls and women of the villages
about milk production management; Federation, with technical collaboration and resources of
Anand Agriculture University, has initiated “Mahila Pashupalan Talim Karyakram” for women
resource persons of the member unions and during the year, 486 women resource person have
been trained under this programme.

50
Clean Milk Production:

For strengthening infrastructure for quality and clean milk production and to install Bulk Milk
Coolers at VDCS, our member unions have submitted project proposals to Department of
Animal Husbandry, Dairying & Fisheries, (DP Section), Ministry of Agriculture, Government
of India.

Under the project, Government of India has already sanctioned financial assistance of more
than Rs. 28 crore and our member unions have already received financial assistance of more
than Rs. 11.36 crore.

Continuing the cleanliness drive at village level, till March 2009, our Member Unions have
identified & imparted training to 9479 corore groups formed of milk producers and
Management of the VDCS. To enhance the level of Cleanliness this year, 7956 VDCS
celebrated Red Tag Day on “Gandhi Jayanti” - 2nd October and the Unions also awarded best
performing VDCS.

Fertility Improvement Program:

The Board of Directors of Federation, considering a long term vision for reducing infertile
animal from their milkshed, decided to implement Fertility Improvement Programme (FIP)
from year 2007-08. The FIP concept has an integrated design to overcome animal nutritional
gynecological, and animal health related problems.

To implement FIP, milk unions have deployed 44 FIP teams of veterinary consultants and they
are working in 1960 villages. In the first year they have registered 72904 and in second year
they have registered 70435 “Non Pregnant Not Calved Even Once” and “Non-pregnant Dry”
much cattles and buffaloes under FTP, out of which 52272 much animals has become pregnant.

FTP is being monitored through www.amul.org.in. FIP has helped milk producers to convert
their unproductive much animals to productive one and also by adopting scientific animal
husbandry practices they are earning more at less cost.

51
SUSTAINABLE ECOLOGICAL DEVELOPMENT:

With a target of planting three trees per member, our member unions celebrated 61St year of
Independence, 15th August 2008 in a unique way and our members have planted 52.74 lakh
sapling across 21 districts of Gujarat.

During last two years, our members have planted more than 71.65 lakh trees and demonstrated
their commitment towards preserving and contributing to improvement of the environment. For
this activity, we have received “Good Governance award” from “Srishti” during year 2007 as
well as 2008.

TOTAL QUALITY MANAGEMENT:

In 1994, federation had embarked on the TQM (Total Quality Management). In 1999 it
received Rajiv Gandhi Quality Award for the year.

More than 25000 Kaizen’s (small improvement in work areas) were made by the employees of
the federation indifferent areas. Workshops on SQC (Statistical Quality Control) have been
conducted across the member dairies to achieved total quality in the production process.

52
 PACKAGED MILK MARKET IN PARAG

Parag Milk Foods Pvt. Ltd. produces dairy products for consumers worldwide. The company
offers skim milk powder, whole milk powder, anhydrous milk fats, ghee, processed cheese,
butter, butter oil, curd, dairy whiteners, and gulab jamun mix powders. It serves hotels,
restaurants, institutions, and caterers. The company exports its products to the Middle East,
South East Asian, and African countries. It provides its products through retailers and retail
outlets. The company was founded in 1992 and is based in Pune, India.

The National Dairy Development Board was created to promote, finance and support producer-
owned and controlled organizations. NDDB’s programmers and activities seek to strengthen
farmer cooperatives and support national policies that are favorable to the growth of such
institutions. Fundamental to NDDB’s efforts are cooperative principles and cooperative
strategies.

AN INSTITUTION OF NATIONAL IMPORTANCE

Due to very wide dispersal of producing and consuming units of milk, the unorganized sector
continues to dominate the milk marketing in India. However, the market structure for milk is
constantly changing. The organized sector now handles above 20% of the milk output in the
country. The cooperative sector accounts for nearly 50% of this. There are over 1.10 lakh milk
producers cooperatives federated into district milk unions and state dairy federations, which
have organic links with the Mother Dairy at the nation level. It is hearting to note that the milk
producers in the Anand modal of milk production get net of intermediation, about 60% of the
fmal price. In other basic foods, the returns are as low as 30% of the final price. NDDB
supports the development of dairy cooperatives by providing them financial assistance and
technical expertise. Over the years, brands in milk products created by cooperatives have
become synonymous with quality and value. Brands like Amul (GCMMF), Vijaya (A.P.),
Verka (Punjab), Saras (Rajasthan), Nandini (Kamataka), Milma (Kerala) and Gokul (Koihapur)
are among those that have earned customer confidence. The Dairy Cooperative Network i)

53
include 170 milk unions ii) operates in over 338 districts iii) cOvers nearly 1,08574 village
level societies iv) is owned by nearly 12 million farmer members.

Milk production

 India’s milk production increased from 21.2 million MT in 1968 to 88.1 million MT in
2003-04.

 Per capita availability of milk presently is 231 grams per day, up from 112 grams per
day in 1968-69

 India’s 3.8 percent annual growth of milk production surpasses the 2 percent growth in
population; the net increase in availability is around 2 percent per. year.

MARKETING

 In 2003-04, average daily cooperative milk marketing stood at 148.75 lakh liters;
annual growth has averaged about 4.2 percent compounded over the last five years

 Dairy cooperatives now market milk in about 200 cities including metros and some 550
smaller towns.

 During the last decade, the daily milk supply per 1,000 urban consumers has increased
from 17.5 to 52.0 liters.

INNOVATION

 Bulk vending - saving money.

 Milk travels as far as 2,200 kilometers to deficit areas, carried by innovative rail and
road milk tankers.

 Ninety - five percent of dairy equipment is produced in India, saving valuable foreign
exchange.

54
MACRO IMPACT

 The annual value of India’s milk production amounts to about Rs. 880 billion.

 Dairy cooperatives generate employment opportunities for some 12 million- farm

families.

In sum, NDDB is a unique example of an organizational innovation with a focus on human

resource and co-operative development in India. By placing technology and professional
management in the hands of the village societies it has helped to raise the standard of living of
millions of poor people. These processes prove that true development of the people and this
could be achieved through putting the instruments of development in the hands of people.

CONSTITUTION

The National Dairy Development Board has been constituted as a body corporate and declared
an institution of national importance by an Act of India Parliament.

The National Dairy Development Board -- initially registered as a society under the Societies
Act 1860 - was merged with the erstwhile Indian Dairy Corporation, a company formed and
registered under the Companies Act 1956, by an Act of India’s Parliament - the NDDB Act
1987 (37 of 1987), with effect from 12 October, 1987

The new body corporate was declared an institution of national importance by the Act.

55
56
57
MARKETING

The federation is marketing milk & milk products, under a common brand name PARAG.

The clientele includes several prestigious institutions in UP & Delhi besides the Indian army.
The sales network is spread throughout northern India. Although PCDF believe that a satisfied
customer is their best advertisement.

OTHER PROGRAMMES

Due to its reputation, efficiency, wide network and quality manpower, PCDF is currently
implementing following developmental and promotional programmes supported by
central/state govt.

 Integrated mini dairy project (IMDP)

 Women dairy project (WDP)

 Rural family welfare projects (RFWP)

 Diversified agriculture support project(DASP)

These programmes have won many laurels for PCDF adding further to its reputation. PCDF’s
real sense of pride lies in the facts that its farmer member are heading surely and steadily
towards a prosperous future and the knowledge that its consumers reaffirm their faith in
PARAG, year after year. It is in this context, that PCDF’s success is to be measured.

58
WELFARE PROGRAMMES IN HMU

In UMU welfare department is a sub-division of PERSONNEL and ADMINISTRATION

department. In Labor Welfare is the head of this sub-division whose work is to implement we
programmes to solve out grievance of worker and to maintain harmonious relationship between
workers and management.

Following facilities are provided to the workers at HMU:

FIRST CATEGORY
• Drinking water
• Toilets
• Bathroom and washing facilities
• Restroom
• Uniform
• Canteen
• Health and safety measures within the establishment

SECOND CATEGORY

• Gratuity
• Provident fund
• Medical facility
• Bonus
• Housing
• Recreational activities

Other facilities include death relief fund festival bonus, overtime payment welfare funds, group
insurance policy, etc.

59
 OBJECTIVES OF THE STUDY
The study is needed to understand the importance of packaged milk over loose milk as it is
healthy and safe for a human mind and body.

The study also focuses upon the Kanpur market of our product NAMASTE INDIA. The study
can be important for the marketing students to get an insight about organized retail and the
factor driving its growth.

OBJECTIVES

• Evaluation of standard of quality of milk and milk product to be marketed by Federation.

• To provide encouragement incentive on production, Procurement, Processing and

marketing activities of milk product for the economic development of farmer community.

• To encourage market and R & D programmes.

• To help member milk unions in technology administrative, financial assistance,

• To arrange collection storage and transport for milk and milk products.

• To encourage activities related to development and extension of dairy industry to improve

the economic development of milk producers and dairy industry.

• To establish collection and refrigeration centers, liquid milk units and processing facilities
for distribution and sale of items purchased from various sources.

60
 RESEARCH METHODOLOGY

STATEMENT OF RESEARCH PROBLEM:

The research problem “A Comparative Analysis of Packaged Milk Market with

Special Reference to Namaste India in Kanpur”. In order to address the above an
exploratory study as well as a descriptive research will be conducted as well as I will be going
to use some source of secondary data also.

The idea is to probe and get deeper insight into sales promotion scenario in FMCG
market and to tap perception of consumers. In order to address above mentioned objectives a
questionnaire is designed to seek consumer responses.

STATEMENT OF RESEARCH OBJECTIVE:

This research report will help the client to analyze the leading-edge opportunities critical to the
success of Soap and Detergent industry in India. Based on this analysis, the report gives a
future forecast of the market that is intended as a rough guide to the direction in which the
market is likely to move.

Research design and methodology:

Research methodology is a way to find out the result of a given problem on a specific
matter or problem that is also referred as research. In methodology, researcher uses different
criteria for solving the given research problem. Different sources use different think about the
word “Methodology”, it is the way of searching the problem.

To achieve the objective of project there was some information which was to be
gathered and accordingly some decision had to be taken. This project tries to be finding out the
sale of Namaste India Milk and Other competitors attitude of customers towards product. For
this purpose a descriptive research design was used which would ascertain magnitudes.

61
 In order to address the above an exploratory study as well as a descriptive research will
be conducted as well as I will be going to use some source of secondary data also. The idea is
to probe and get deeper insight into sales promotion scenario in FMCG market and to tap
perception of consumers. In order to address above mentioned objectives a questionnaire is
designed to seek consumer responses.

RESEARCH INSTRUMENT

1. A questionnaire for primary data

2. Internet, Magazines, expert opinions, Sales records, as a secondary data source

A: PRIMARY DATA

It is original and is collected first hand for a study. We took a sample of 60

people of different age groups from different areas of Kanpur. The methods used
in collection of primary data are: focus group discussions, personal interviews;
telephonic interviews, mails survey to the well structured and quantifiable
questionnaires.

B: SECONDARY DATA

It is the information that is collected and complied earlier. The information

collected through past records, magazines, expert opinions, sales records,
customer feedback and even from the previous research done on similar topic.
We even took the help of them and even through the internet collected the
information.

62
 METHOD OF DATA COLLECTION
1. The data collection is primary for the project

2. But to verify the primary method of data collection, also consider secondary data.

DATA SOURCE:

1. Kanpur market packaged milk consumers feedback.

2. Company website and literature

SAMPLE SESIGN:

1. Convenience/judgmental sampling design of non-probability sampling method.

a) UNIVERSE: Kanpur milk market

b) SAMPLE TYPE: Hetrogenious.

c) SAMPLE SIZE: 60 customer

d) SAMPLE UNIT: Indidual

e) HYPOTHESIS: Relationship between demand and supply.

f) STATICAL TOOLS TO BE USED: Median

63
PROBLEMS AND LIMITATIONS:

1. Delivery of milk on time is a major problem found in some part of the Kanpur market.

2. Unavailability of Big packet of milk is being found in the outlets.

3. Consumers demand for flavoured milk which needs to be looked upon.

4. Influence of other brands such as Amul, Mother dairy and Gyan also effected the sales
of our product.

SAMPLE SIZE AND TYPE

A Random sampling is done and the number of respondent is 60 in number

AREA

JAREEB CHAUKI,KANPUR

64
 MEDIAN AGE ANALYSIS

This analysis is helpful in getting the required employee in the organization with an
efficient work profile.

The above graph is a logarithmic representation of the employee age data and clearly
shows the median age of the sample population taken for the survey as 29. This is mainly due
the expansion policy of the company that has taken on board a large number of new and young
employees to fuel its growth plans.

Due to this a large group of creative employees have been inducted into the
Organization. This helps in maintaining the creative talent in the Organization, as the job
profile requires them to be creative.

Champion Voyagers Designers Pvt. Ltd will be continuing their expansion plans in the
coming months and this will lead to a further decease in the average age of the employees in
the Organization.

65
 DATA ANALYSIS
1. What is your occupation?

(a) Businessman 2%

(b) Housewife 2%

(c) Student 30%

(d) Teacher 8%

(e) Doctor 2%

(f) Any Other 56%

Interpretation

. Most of 56% respondents are other business.

66
2. Have you used Packed Product Before? Like packed food, milk, vegetable
etc?

(a) Yes 98%

(b) No 2%

Interpretation

• Most of 98% respondents are used Packed Product Before? Like packed
food, milk, vegetable etc.

67
3. What option do you prefer white purchasing milk?

(a) Loose Milk 10%

(b) Packaged Milk 90%

Interpretation

 Most of 90% respondents prefer to packaged Milk.

68
4. If packaged milk, which Brand you like to purchase?

(a) Namaste India 50%

(b) Parag 5%

(c) Mother Dairy 5%

(d) Amul 30%

(e) Any Other 10%

Interpretation

• Highly 50% respondents prefer to Namaste India milk.

69
5. Are you satisfied with what the current brand of packaged milk you use?

(a) Highly Satisfied 50%

(b) Satisfied 30%

(c) Neutral 17%

(d) Dissatisfied 2%

(e) Highly Dissatisfied 1%

Interpretation

 50% respondents highly satisfied used by current brand milk.

70
6. Does you working culture & timing affect your purchasing of a product?

(a) Yes 2%

(b) No 98%

2%

Yes
No

98%

Interpretation

 Most of 98% respondents working culture & timing affect your

purchasing of a product.

71
7. Does price affect your purchasing of milk ?

(a) Yes 5%

(b) No 95%

5%

Yes
No

95%

Interpretation

 Most of 95% respondents opinions are the price affect purchasing of

milk.

72
8. What do you look for while purchasing milk ?

(a) Taste 30%

(b) Quality 50%

(c) Price 18%

(d) Place 2%

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Taste Quality Price Place

Interpretation

 Most of 50% respondents prefer to quality.

73
9. Are you aware of Namaste India Milk ? Have you ever tried the
product? If yes then how will you rate our product on a scale of 10?

(a) Yes 85%

(b) No 15%

15%

Yes
No

85%

Interpretation

 Most of 85% respondents aware to Namaste India Milk.

 Maximum of the respondent approx 90% rate Namaste India Milk

between 7-9.

74
10. How have you come to know about Namaste India?

(a) Newspaper 40%

(b) Television 0%

(c) Holding 50%

(d) Any other source 10%

1 00%

90%

80%

70%

60%

40% 50% 10%

50%

40%

30%

20%

10%

0%
0%
Ne ws pa p e r T e l e vi s i on Hol di ng Any o t he r s o ur c e

Interpretation

 Most of 50% respondents know the Holding to come to know about

Namaste India.

75
11. Would you like to buy Namaste India Packaged milk if given choice?

(a) Yes 100%

(b) No 0%

0%

Yes
No

100%

Interpretation

 Total of 100% respondents like to buy Namaste India Packaged milk if

given choice.

76
 FINDINGS
The findings are followed:

 Most of 98% respondents are used Packed Product Before? Like packed food, milk,
vegetable etc.

 Most of 90% respondents prefer to packaged Milk.

 Highly 50% respondents prefer to Namaste India milk.

 50% respondents highly satisfied used by current brand milk.

 Most of 98% respondents working culture & timing affect your purchasing of a product

 Most of 95% respondents opinions are the price affect purchasing of milk.

 Most of 50% respondents prefer to quality.

 Most of 85% respondents aware to Namaste India Milk.

 Most of 50% respondents know the Holdings to come to know about Namaste India.

 Total of 100% respondents like to buy Namaste India Packaged milk if given choice.

77
 CONCLUSION
The conclusion of the research is that the customers have positive attitude towards Namaste
India. The perception of the customers is that Namaste India is good in quality comparison to
other milk packaging. The customer’s buying behavior influenced by different factors like
Price, Weight, Quality and Promotional activities.

This research will provide the information to the detergent company and also to the students
who are interested in doing research so that is important for both.

If we go through the SWOT analysis of Namaste India as a whole then we will find out it has a
very good standing at market place and Namaste India also has very good corporate image
among present companies and. It should cash his image by effective using of marketing mix.

The research which we have conducted we found that if Namaste India wants to stand in top
position he has to maintain himself in some areas.

 Advertising frequency

 Customer Relationship

 Dealer board sign board and banner etc.

 Retaining the small customer also.

 Availability (Distribution network). Product quality and packing

As we have found in our research that Namaste India has good market share in pouch milk, as
compared to other competitors.

However, Namaste India has very good brand image and corporate image too. But still
Namaste India is not able to cash all the opportunity, which exists in the market.

78
 The successful completion of this research project indicates that the future
of marketing is in the hands of digital.

 Digital marketing is not only concerned with placing ads in portals, it

consists of integrated services and integrated channels, Marketers want to
use these components in an effective way to reach target groups and to
build a brand.

 Brands wants to build their presence over digital platform have high
affinity towards digital media than other media’s. More than that customers
are highly information seekers & digital media is the only platform for two
way communication between brands & customers.

 Digital media is the best platform to convert a product to brand. Because it

is more cost effective & it provide lot of touch points to marketer.

 Brands can able to engage their group in an effective way through digital
platforms. Digital media is not only for engagement, brands can increase
their customers or they can retain their existing customers. Digital
platforms help to increase the impact of brand recall in the targeted groups.

 The research focused on the consumer buying behaviour shows that, Indian
consumers are highly information seeker & they will do research about a
product before going to retail shop. So brands want to give platforms to
consumers to understand their product or to get really feel of that brand.
 One of the key and significant factors in Digital shopping is consumer
satisfaction.

79
  Consumers shop online more frequently.

 The reason for this result could be the security perceptions in the sample as
expressed by the disadvantages of Digital shopping mentioned.
 For the consumers, a concern for security is one of the important disadvantages
of Digital shopping.
 For the Customers, Digital shopping has disadvantages such as security
concerns, not having sufficient information about products, and
 Not having the chance of physically trying the goods which are all related to
trust.
 Trust in online shopping is an important concern for consumers as people of a
culture with high uncertainty avoidance index.
 Usage levels of payment methods also differ for online shoppers.
 The consumers prefer cash on delivery and direct money transfer online more,
relative for their online purchases.

The analysis of online shopping website quality as an important factor affecting

shopping behaviour was beyond the scope of this study.

80
 SUGGESTIONS
1. Give the credit purchase facility to their regular Retailers.

2. As quick as Possible try to settle the various claims of the Retailers.

3. They have to co-operate those retailers who have a less demand in shop and try to pass
the various attractive schemes of the company.

4. Were the mil van does not reach the side location there should be small distribution by
other means.

5. Customer relationship should be more commandeered by distributor for homonymous

relationship.

6. More milk ATM should be established to enhance the availability of Namaste India
milk.

7. Make the customers aware about the Namaste India products and benefits of using
packed milk vs. milk through vendors through different mode of advertisement.

8. There should be no leakage in the liquid milk & if the exists than these packets should
be replaced.

9. Packing of the liquid milk should be reusable that helps to reduce the price of the
products.

10. On line information about the Namaste India products & trading should be facilitate by
the company.

11. There should be regular visit for getting the customer feedback about the Namaste India
products. This helps to know the changing demand of the customers.

12. For fulfilling the increasing demand of milk the company should try to increase the
production.

13. Company should try to provide discount on bulk purchasing, And also provide some
offers & schemes for sales promotion.

81
 LIMITATIONS

 The time period allotted to conduct this survey was not sufficient.

 Some of the respondents were not co-operative.

 Some respondents were hesitating to give the details.

 Biasness is another limitation that the scope of the survey.

 Some respondents were not able to disclose the appropriate information regarding to the
project.

 Time has been a major constraint throughout the study as it has been only
for duration of 2 months.
 As this survey was restricted to Kanpur this cannot be stated as an in-
depth research on this subject.3
 Enough care is taken in formulating the questionnaire; still some errors
may creep in.
 The consumer behaviour varies according to different products.
 Quality verses price was not taken into the consideration.
 The project is based on the interview methodology by a stored
questionnaire and the personal skills of the person undertaking the
project affect the results.

82
 QUESTIONNAIRE

Dear sir/madam;

I am conducting this survey for the partial fulfillment of my course MBA from AXIS
INSTITUTE OF PLANNING & MANAGEMENT, ROOMA , KANPUR. The information
provided by you will be used for educational purpose only.

Name : ....................................................................................................
..................

Address:
………………………………………………………………………………...
Age : ..............................................................................................................
........

Gender- M/F

• What is your occupation?

(a) Businessman [ ]

(b) Housewife [ ]

(c) Student [ ]

(d) Teacher [ ]

(e) Doctor [ ]

(f) Any Other [ ]

• Have you used Packed Product Before? Like packed food, milk, vegetable
etc?

(a) Yes [ ]

(b) No [ ]

83
• What option do you prefer while purchasing milk?

(a) Loose Milk [ ]

(b) Packaged Milk [ ]

• If packaged milk, which Brand you like to purchase?

(a) Namaste India [ ]

(b) Parag [ ]

(c) Mother Dairy [ ]

(d) Amul [ ]

(e) Any Other [ ]

• Are you satisfied with what the current brand of packaged milk you use?

(a) Highly Satisfied [ ]

(b) Satisfied [ ]

(c) Neutral [ ]

(d) Dissatisfied [ ]

(e) Highly Dissatisfied [ ]

• Does you working culture & timing affect your purchasing of a product?

(a) Yes [ ]

(b) No [ ]

• Does price affect your purchasing of milk?

(a) Yes [ ]

(b) No [ ]

84
• What do you look for while purchasing milk?

(a) Taste [ ]

(b) Quality [ ]

(c) Price [ ]

(d) Place [ ]

• Are you aware of Namaste India Milk? Have you ever tried the product? If
you then bow will you rate our product on a scale of?

(c) Yes [ ]

(d) No [ ]

• How have you come to know about Namaste India?

(e) Newspaper [ ]

(f) Television [ ]

(g) Holdings [ ]

(h) Any other source [ ]

• Would you like to buy Namaste India Packaged milk if given choice?

(c) Yes [ ]

(d) No [ ]

85
 BIBLIOGRAPHY
BOOKS
• Kothari C.R.: “Research Methodology”; 2nd Edition; New Age International Publication.
• By - I.M. Pandey - Financial Management
• By - K. Aswathappa- Human Resource & Personnel Management
 "Definition of digital marketing". Financial Times. Retrieved 22 August 2016
http://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?sid=484a9795-b6bb-4ed8-a329-
e4c2c29f7707%2540sessionmgr114&vid=1&hid=103
Nielsen (10 March 2016). "Digital Advertising is Rising in Canada, Requiring More
Sophisticated Measures of Success". Nielsen. Nielsen. Retrieved 25 March 2016.
Nielsen (20 January 2016). "Connected Commerce is Creating Buyers Without
Border". Nielsen Global. Nielsen Global. Retrieved March 25, 2016.
Dahlen, Micael (2010). Marketing Communications: A Brand Narrative Approach.
Chichester, West Sussex UK: John Wiley & Sons Ltd. p. 36.
How To Embrace The Five Steps Of Data-Driven Marketing Published by Forbes, October 17,
2013; accessed 17 January, 2017
"Digital Marketing". Techopedia. Retrieved 22 August 2016
SEARCH ENGINE:
• www.google.com
• www.yahoo.com
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