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Case Study Of Katraj Dairy

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Katraj Dairy

Company

The Pune Zilha Sahakari Dudh Utpadak Sangh Maryadit, popularly

known as 'Katraj Dairy' is a district level co-operative organization
incorporated in 1960. It is involved in processing milk and milk
products and hence is categorized as a manufacturing and distribution
enterprise. The objective of Katraj is to build a value chain of farmers
to source milk at an organized level, manufacture products with high
standards and sale these products in the competitive open market
place. In accordance with the Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006 , Katraj Dairy is classified as a large
scale enterprise, with approximately Rs. 150 crores worth of fixed
assets and investments (55th Annual Report, 2013-14). The sources of
finance for the enterprise include share capital (20,00,000 share of Rs.
100 each) as well as income from grants such as Village Based Milk
Procurement System Grant. As for revenue and costs, sale of milk and
other products is the main source of revenue while purchase of
(unprocessed) milk remains the main cost along with other
manufacturing expenses. By virtue of being such a large scale
enterprise, Katraj is able to accrue economies of scale but in addition,
the large variety of products…show more content…

Milk production in Maharashtra has increased by about 40 percent

from 2003 to 2013. Katraj dairy has a market share of 18 to 20 percent in
cow’s milk and 20 to 22 percent in milk products. The dairy mainly
faces competition from private players like Chitale milk, Parag
Dynamics, other District and taluka level Cooperative, State
Federation’s Mahanand Dairy and Government of Maharashtra’s Aarey Person Creates Hoodie From Blanket

Milk and Milk Products. There are around 80 to 85 brands in Pune in

milk and 30 to 35 brands in milk products. Among all the competitors
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