Académique Documents
Professionnel Documents
Culture Documents
December - 2014
This is to certify that the contents of this report entitled In Depth Study of Dairy
IndustrybyKrupaben Patel (13044311087), Madhavika Patel (13044311089), Mittalben Patel
(13044311092),
Naitikkumar
Patel
(13044311093),
MukeshPrajapati
(13044311116),
This report has not been submitted either partly or fully to any other University or Institute for
award of any degree or diploma.
CANDIDATES STATEMENT
We hereby declare that the work incorporated in this report entitled In Depth Study of Dairy
Industry in partial fulfillment of the requirements for the award of Master of Business
Administration (Semester - III) is the outcome of original study undertaken by me and it has not
been submitted earlier to any other University or Institution for the award of any Degree or
Diploma.
Krupaben Patel
13044311087
Madhavikaben Patel
13044311089
MittalbenPatel
13044311092
Naitikkumar Patel
13044311093
MukeshkumarPrajapati 13044311116
AshavinkumarRabari 13044311119
RameshjiThakor
13044311139
Date: 05/12/2014
Place: kherva ,Ganpat university
PREFACE
Practical study plays a vital role in the field of education. It has been introduced for the student
to get practical knowledge along with theoretical knowledge only bookish knowledge is not right
way of learning anything especially for the management students. How management principals
are implemented in business can only be known through practical study, students can be very
well aware about industrial environment like problems, opportunity, different situation etc. this
helps the student to have better understanding and also give them a chance to show their skills
and ability.
The principal concern of this report is to reveal my learning of practical business scenario. In
writing this report I have drawn vast amount of the information from various senior people and
simultaneously supplemented by various other people, annual reports, letters, journals etc.
Here, I am presenting a project on the different concept that I saw, fill and experience, while the
work on the project report. I have tried my level best to do the proper justification with my work
in this project.
Krupaben Patel
Madhavikaben Patel
MittalbenPatel
Naitikkumar Patel
MukeshkumarPrajapati
AshavinkumarRabari
RameshjiThakor
13044311087
13044311089
13044311092
13044311093
13044311116
13044311119
13044311139
ACKNOWLEDGEMENT
It was really difficult for me to complete the management research project without getting cooperation of certain people. In other words there are so many external people who directly or
indirectly help me in my management research project.
First of all, I am very grateful to our collage H.O.D. Prof. MAHENRA SHARMA for his able
leadership and our project Report who providing their valuable time and guideline to me
regarding the management Research project report.
I am also thankful to Dr.HarshaJariwala and Dr. AbhishekParikhwho gives guideline our group
to do management research report in their college and helped me by giving all the required
information for a period . I am also thankful to my friends who help me and guide me.
Krupaben Patel
Madhavikaben Patel
MittalbenPatel
Naitikkumar Patel
MukeshkumarPrajapati
AshavinkumarRabari
RameshjiThakor
13044311087
13044311089
13044311092
13044311093
13044311116
13044311119
13044311139
CONTENTS
Sr. No
Particular
Page No.
ii
Candidates statement
iii
Preface
iv
Acknowledgement
1.1
Introduction of Industry
1.2
Overview
11
2.1
12
2.2
13
2.2.1
Amul dairy
13
2.2.2
Vimal Dairy
22
2.2.3
Dudhsagar dairy
27
2.2.4
37
2.2.5
Banas dairy
39
Strategic analysis
47
3.1
48
3.2
PEST Analysis
49
3.3
51
3.4
54
3.4
55
3.5
Phase of lifecycle
57
3.6
59
Financial analysis
61
80
Conclusion
86
Bibliography
88
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made
the
operation
of
the
dairy
industry
different.
ICT made in
While
it
has
effective, the case of Amul proves that, where there is a will there is a way. Amul
has become rural Indias flag bearer in the IT revolution. This paper analyses the use
of ICT in the dairy industry by the Gujarat Cooperative Milk Marketing Federation
Ltd. The system makes it easy for the farmers to get the cash payment as soon as
the milk
is delivered.
implemented,
platforms
Customization of IT
as a major opportunity
for
change.
1.2 Overview
Gujarat Co-Operative Milk Marketing Federation Ltd. is an Apex Co-Operative Organization. It is
respected for its credentials even after 56 years after its inception. The Co-Operative movement
started with two villages and 247 litres of milk in 1946. It has become a rupees one billion-business
now. The success of Amul explains the reasons for this remarkable growth. Following the strategic
advice from the freedom fighters like SardarVallabhai and Morarji Desai, the Co-Operative
movement started with the slogan Remove middlemen in Gujarat by the village masses. The
collective farmers succeeded in making the British government accept the concept of Co-Operative
societies. The Kaira District Co-Operative Milk Producers union Ltd., Anand was born on Dec 14,
1946.
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negotiate the
increased demand for the milk. The Bombay milk scheme did not accept all the milk
that is procured by the Co-operative society.
was a way to solve the problem. There was a need felt for the Dairy plant to process
and utilize the milk supplied by the society and as a result the dairy was setup in
1995.
The Anand pattern of Dairy Co-Operative includes the Dairy Co-Operative societies at
village level and a processing unit called Union at district level, as shown in Fig.1.
Inspired by this pattern, similar milk unions were started in other districts too. To
market the products of the milk unions, GCMMF was formed in 1973. GCMMF is the
sole marketer for all the range of Amul products. Originally they were only milk
powder and butter. Later it is expanded drastically to cover products such as - ice
creams,
pizza,
ghee,
cheese,
chocolates,
shrikhand,
paneer
and
so
on.
These
made
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Two leading figures of the Indian dairy industry - Tribhuvandas Patel and Dr. V.
Kurein made Co-Operative movement to succeed. The only reason for the success of
GCMMF as Dr. V. Kurein stated: Determination,
the driving forces of the Amul The GCMMF consists of 12 affiliated member Dairies /
District milk unions and it has its own manufacturing unit called Mother Dairy at
Gandhinagar with the
largest
network
in food
industry supported
by marketing and
distribution of liquid milk and a variety of products under the brands - Amul and
Sagar. It is also the sole selling agent for the National Dairy Development Boards
(NDDB) edible oil - DHARA. GCMMF also coordinates with the manufacturing dairy
units
milk
procurement and
TWE
Continuous
TEI
Improvement
TQC
HR
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Information Technology is our thrust area from our inception that is because we are marketing the
perishable goods. There is every chance that we may collapse in between if we dont understand the
market realities and the village farmers. There should be a 24x7 hrs information flow in between us and
the remaining nodes of our supply chain, according to Mr. Rathod, Divisional Manager.
The need
for coordinating a
coordination
has
been
highly distributed
the
main
feature
of
the
value
Close
chain.
They
were well prepared for the systems revolution. GCMMF is one amongst the first few
Indian companies to start a web site and opting for the Domain .coop will prove the fact that they are
well
ahead
undertook
of
the
time.
include - an ERP
The
initiative to
IT
related
initiatives
that
GCMMF
initiatives made the consumer well aware of Amul. Online Stores and Portal activities like
emailing,
greetings
gave
the
consumer
better
picture
of
Amul.
AMCUS, the Automatic Milk Collection Unit Systems are empowering the farmers by
employing IT at village co-operative societies.
IT
farmers.
builds
the
the
in
system automatic
could remove the man in the loop. The use of IT platforms reduces the potential for
discretionary decisions.
GCMMFL is in a state where it is growing rapidly and it is one amongst the most respected Indian
companies in 2003. It is because of the values and systems that are in place. As a Chinese proverb
says, As long as the trunk is firm, worry not about the branches swinging to the wind. GCMMFL is
trying to strengthen its rural base - The Village Cooperatives - to ensure the lead in the dairy
business.
Milk production is important to India, as milk is one of the main sources of proteins and calcium for a
largely vegetarian population. Dairying provides a livelihood for millions of Indian farmers and
additional income for a large number of rural families as well as means for women to participate in the
economic activity in rural areas. India became the largest producer of milk in 1999 primarily due to the
efforts of the co-operative movement initiated by the National Dairy Development Board (NDDB).
The movement, which started at Amul Dairy in Gujarat, is now replicated in 70,000
villages in about 200 districts of India. Following the repeal of the Quantitative
Restrictions
on
food
products
by
the
Government
agreement,
to
further
milk products.
challenge,
of
India
under
the
WTO
has
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double milk collection in the next six years. This sharp increase requires an extensive
educational program that should
dairy workers.
This
case shows how the education can be delivered via rural Internet Kiosks created for
the dairy sector.
The dairy sector already uses computers in 4000 rural locations for processing milk buying/selling
transactions in a transparent manner and exposes 500,000 people daily to the benefits of IT. The
project has been developed through extens ive collaboration with the co-operative dairy unions of
Gujarat.
The village milk co-operative is a society of primary producers formed under the
guidance of a supervisor or milk supply officer of the Co- operative Dairy Union
(District level Co-operative owning the processing plant). A milk producer becomes a
member by buying a share from the co-operative after agreeing to sell milk only to
it.
staff in charge of day-to-day operations. Each society has a milk collection center
where farmers take their milk in the morning and evening. There are 1million farmers organized
into village milk producers co-operative societies andprocurement of milk is 13 million litres
per day.
The GCMMF - Amul has taken the initiative of installing the AMCUS - Automatic Milk
Collection
Unit
transaction
between the
only
ensured
Systems
the
at
village
farmer
and
transparency
but
societies
the
to
enhance
Co-Operative
also
gave
the
Society.
Co-Operative
transparency
These
systems
societies
of
not
unique
GCMMF indeed got the entire supplier information through the systems
The information
related
to
members,
fat content,
volume of the
milk
procured and the amount payable to the member are accessible to the Co-Operative
Society in the form of a database. There are 10755 village co-operatives in Gujarat
that are now able to collect 6.1 million litres of milk from 2 million members. Thanks
to the use of IT, both transparency and trust have been enhanced.
The success of AMCUS prompted the GCMMF to aggressively go on using Information
Technology to capture the end-to-end data. GCMMF planned to cover all aspects of
the value chain.
These
plans
supports
integration
of
the
value
chain
activities
destined towards the Better Management Practices. These efforts of GCMMF triggered the
P age |7
changes
in
the
Villages;
farmers
kept
them
open
for
the
changes.
One of the Co-Operative unions Banas dairy started with educating the rural about
the cattle, cleanliness and so on because of the systems that are already in place at
AMCUS. The Dairy Information and Services Kiosk (DISK) is another initiative that is
started with the help of IIM (A) by GCMMFL. There are many more in the pipeline of
GCMMFL IT Initiatives.
Various things
Application
Systems (EIAS) to integrate the Distribution side of the Supply chain, DISK - to
upgrade the application at the Milk Collection Centers and to connect them to the
Internet to access a specialized dairy portal with content delivered in the local
language
have
already
started
giving
the
fruits
to
the
rural
poor,
which
has
persuaded the rural folks to actively participate in IT Revolution of the dairy industry.
area
for
gaining
competitive edge in its global business operations in 1994, with a view of handling
the rapid
has
studied
its
structure
and
That
operations
and
gave birth to
for GCMMF.
The
prevailing
developments
in
the
was to
make the
Information strategy as an integral part of the business strategy through the end-toend total quality management.
Accordingly,
a system
for
improving
the
milk
procurement
Mr. B. M. Vyas, GCMF gave the lead for the initiative. All the current systems were
redesigned and reorganized as per the need and all activities were focused towards
capturing the important data that is vital for decision- making.
the
implementation
of
Information
System
Plan
went
big
way.
The
exploitation of IT.
Amul is not a food company, it is an IT company in the food business, according to
P age |8
themselves
in the
market.
Various
activities
like
total quality
management
do have their role of getting IT to the rural front. The TQM drive in GCMMF triggered
lot of innovative plans to improve the entitlements of various stakeholders. Everyone started thinking for
the collective well being of the organization. The workshops, counselling meets, awareness programs
and HoshinKanri meetings turned out to get the quality feedback from the participants. The stress on
making things better from day to day has been forced by the Kaizen model of incremental
improvement. To get the rural masses within the TQM boundaries a program such as Internal
Consultant Development was implemented.
At the grass roots level, it is essential to ensure that the implementation is flawless. GCMMF
employed the same approach that was used to make the distribution chain effective. This approach
helped in developing the required internal competencies to transform the village society into a
technology user community.
DISK model has built upon the existing application by expanding the database of the milk societies
to include a complete history of milk cattle owned by the member farmers. The details such as the
breed and a history of diseases, inoculation, and artificial insemination are maintained in the
system. The data history on milk production by individual farmer is also available in the database
at the collection centers. This model is designed by IIM-A.
The test of an organization is not its genius but its capacity to make common
people
achieve
uncommon performances as
per
MrChaudhary of GCMMF.
This
is
idea behind the AMCUS, DISK as well as the other programs were being the initiated
by GCMMF successfully and making the maximum what they are intended to be.
Project Conceptualization
The GCMMF business involves daily collection of milk at 25 supply centres at Gujarat;
the
production
of
butter,
cheese,
ice
cream,
baby
food
and
milk
powder;
the
marketing of these products through 50 sales offices throughout India; and distribution through a
network of 4000 stockists who, in turn, supply of 500,000 retail outlets. Notwithstanding the
traditional nature of its business, the management decided to adopt Informatio n techno logy
integration as a strategic thrust in 1995. The objective was to create new efficiencies in all aspects
of the business, to enhance competitiveness, and to extend the market reach.
Since that time, all of 650 staff has received computer and e-commerce training. E-
P age |9
competencies have been established at the supply and distribution ends of Amulsbusiness value chain.
On the supply side, AMCUS is recording quality and quantity of milk being collected and DISK is in
its inception stage. Cyber stores that GCMMF operates are visited by at least 800 to 1000 people every
day.
Things are changed
The time that is being taken to collect the milk in a society ranges from 5 to 6 hrsaveraging at about 5
minutes per member after installing AMCUS. There is a comparative reduction of more than 75%
of time thats spent on each deal. Each farmer is getting paid for his milk deposited in societys
counter in another counter immediately on a real time basis. Now villagers were able to send their
emails from AMCUS to anywhere in the world and DISK is expected to arrive at the village
cooperatives this year enabling the villagers to learn from the net and connecting with enterprise
systems of GCMMF
Project Co-Ordination
The project
implemented
of the
value
chain of GCMMF i.e. the supply side. Being the largest cooperative in India AMUL
enjoys a vast supplier range. Farmers of Gujarat are today much happier than any
other cluster of farmers. They proudly claim that they are with the society. The
farmers commitment never went down even after 50 years of cooperative movement. Each activity
that is taken up by the society is still given prominence in the villages. GCMMF never let this
confidence go down. It has provided state of the art facilities and it empowered them to take up new
initiatives.
When first GCMMF thought about the complexity of the operations of village societies
they met the village societies and discussed with them about the problem. When
GCMMF announced the implementation of AMCUS, village societies took over the
responsibilities from their
societies, by reducing
mentor.
transferred
by
AMCUS is depicted in Fig 12. The society officia ls have to face some teething
proble ms in the beginning. Now it has become a usual practice. Now they are
arranging Internet sessions in village societies. As there is no hardware cost that is required to be met,
the projects such as interconnecting the societies with the supply chain network of GCMMF and the
others are under implementation.
The project was being coordinated by the GCMMF and the village cooperative society
in which the AMCUS is being imple mented. GCMMF is playing a major role by
P a g e | 10
management of the systems. The village society will be responsible for the operation
of the system.
and
the
service
aspects
are
properly
managed
hardware to
by
the
software
village
installation
cooperative
society
officials. These societies have the right to select the service provider. GCMMF limited
itself
as
empowerment
facilitator
model
by
facilitated
empowering
the
rapid
the
village
cooperativesocieties.
diffusion of IT.
The
village
This
cooperatives
learnt quickly with the support of the software companies that are providing them
the
software,
hardware
services.
These
companies
also
played
major
role
in
assistance
and
support
for
the
pilot
test
is
given
by
the
GCMMF
to
involving
small
private sector companies to take the DISK project to a large number of rural places.
Conclusion
The Amuls IT operations are based on the principles of collaboration, co-operation
and co-evolution as opposed to the conflict, conformation and competition approach
followed by brand marketers. Amul remained as the trendsetter in the whole
operations. Even though Automated Milk Collection Centers and Dairy Information
System Kiosk projects are part of strea mlining its supply chain, Amuls projects
delivered a lot of benefits to the rural community. Unlike the others in the industry
Amul facilitated the rural mass for in becoming an empowered community.
Agricultural Universities and Government Agencies are also getting into the projects
of GCMMFL. Amul itself has seen increased revenues. It also experienced
control over the operations through the Information Technology Projects.
effective
P a g e | 11
P a g e | 12
Company name
Profit after
Tax
5.21
60.71
4.37
15.11
2.58
Vimal Dairy
Amul Dairy
Dudhsagar Dairy
Mother Dairy
Banas Dairy
Net sales
215.9
905.23
142.44
744.72
191.93
2.4131542
6.7065828
3.0679584
2.0289504
1.3442400
Rank
3
1
4
2
5
15.21
Vimal Dairy
Amul Dairy
12.58
Dudhsagar Dairy
Mother Dairy
60.71
Banas Dairy
Interpretation:
Currently there are about 3000 dairie in Gujarat, but four major players in the premium organized
segment dominate the industry. That is the reason for selecting four companies out of seven
companies.
We selected these four companie on the basis of profitability ratio by using net profit ratio of all the
seven companies. From all companies we select four company which gives higher net profit as
compare to others.
In a pie chart it shows the net profit of selected four companies.
From four selected companies the first company is Amul Dairy which highest in profit after tax that is
Rs. 60.71crs and the net profit ration is also high with 6.7065.
The last company is Dudhsagar dairy with net profit ratio of 1.344.
P a g e | 13
P a g e | 14
PARAMETERS
PRODUCTS SPECIFICATIONS
PROLAC 1100
PROLAC 1200
Lactose Mohohydrate, %,
min.
99.7
99.0
5.5
5.40
0.3
0.10
+54.8 to 55.5
+54.8 to 55.5
12mg / 5g
11 mg
0.1
0.1
0.5 ml.
0.34 ml
Appearance of solution
(3 g in 10 ml. of boiling
water)
Clear,
colourless&odourless.
Odourless.
CHEMICAL ANALYSIS
MICROBIOLOGICAL STANDARDS
100
Yeasts &Moulds in 1 g,
Max.
100
E.Coli in 10 g.
Absent
Salmonella in 100 g.
Absent
PHYSICAL CHARACTERISTICS
P a g e | 15
Appearance
Flavour
Natural
Natural
Taste
Slightly Sweet
Slightly Sweet
Density
Particle size
Whey Proteins have many valuable functional properties desired in eggless cakes, vegetarian sausages,
sauces & soups, spreads, salad dressings, meat products, dairy products, bakery and confectionery
products etc. Whey Proteins act as excellent emulsifier, whipping agent, viscosities, water retention
aid, tecture aid, texture improver etc.
Whey Proteins and Whey Powders as food ingredients can modify organoleptic, visual, hydration, and
surfactant, structural, textural and rheological properties of food, resulting in improved consumer
acceptance of the finished product. In many cases, Whey Proteins serve more than one functional
purpose in foods. For example, as whey proteins remain soluble over a wide Ph range, and in
particular near pH 4.5, they may be used in acidic drinks as protein fortifiers. They may also bring
emulsifying properties to these products and, if desired, may also add turbidity.
Whey Powders with lower protein concentration can be successfully used in Desserts, Soups and
sauces, meats, baby food, ice cream, bakery, fermented products, and chocolate as a substitute to
skimmed milk power / milk powder, with an attractive price differential.
P a g e | 16
Functi onal
Property
Mode of
Action
Food
System
Whipping /
Foaming
Emulsification
Formation and
stabilisation of fat
emulsions
Gelation
Proteins matrix
formation and setting
Viscosity
Thickening, water
binding
Water binding
Hydrogen bonding of
water; entrapment of
water
Solubility
Protein solvation
Beverages
Browning
Undergoes Millard
Reaction
Flavour / Aroma
P a g e | 17
Casein-enriched milk protein concentrate (joint product of whey protein isolates naf)
Applications
Baking industry
o
Enriched breads
Milk bread
Cakes
Pastries
Cookies
Confectionery
o
Milk chocolate
White chocolate
Caramel
Dairy Products
o
Ice cream
Yogurt
Cheese
Delicatessens
Baby food
Meal replacements
Anti-obesity foods
Pharmaceutical products
P a g e | 18
Lactulose (insomnia)
P a g e | 19
Overview
Name ofthe Company
Kaira District Co-Operative Milk Producer Union Ltd.
OR
Amul Dairy
Address
Kaira District Co-Operative Milk Producer Union Ltd.
Station Road,
Anand-388001
Date of Establis hment
14th December 1946.
Size of the unit
Large Scale Co-operation
Goal
The main goal of the Amul dairy is to provide employment & product milk& product item to the
people.
P a g e | 20
Large-scale industries
Medium scale industries
Small scale industries
P a g e | 21
ORGANIZATION CHART
Chairman
Vice chairman
Board of Directors
Managing Director
General Manager
Assistant General Manager (C.F.F. Kanjari)
Manager
Dept.Mang.( C.F.
peration)
Quality
Supri.
Supri.
Store
Control
Sr. Officer (10)
Asst. Officer (10)
Jr. Asst. (12)
Workers
Dept. Supri.
(tech)
P a g e | 22
2.2.2Vimal Dairy
Vimal Dairy Limited (VDL) belongs to the well-known, well established and diversified Group
popularly Known as VIMAL GROUP of Mehsana and State of Gujarat/other States. Vimal Group is
actively engaged in the diversified activities of manufacturing and marketing of a wide spectrum of
products like Edible Refined Oils/De-oiled Cakes, Milk & varied Dairy Products, Cables & Winding
Wires, Capacitors & Transformers, Submersible Pumps, Resins & Paints, Micronized Mineral Powder
etc. The estimated Annual Turnover of the Group is above Rs. 1000 crore for the year 2006-2007
VDL is an established player in Milk & Dairy Products' Industry. It has only largest private sector
Dairy in Gujarat in the midst of the monopolized Co-operative under the white revolution movement
in the country. It has a formidable presence in the local market for supply of Milk & Milk Products
like Cheese, Ghee, Butter, and Skimmed Milk Powder. It has as integrated Plant at Mehsana for the
processing of Milk & Varied Milk Products
Products
VDL is an established player in Milk & Dairy Products' Industry. It has only largest private sector
Dairy in Gujarat in the midst of the monopolized Co-operative under the white revolunaory in the
country. It has a formidable presence in the local market for supply of Milk & Milk Products like
Cheese, Ghee, Butter, and Skimmed Milk Powder. It has as integrated Plant at Mehsana for the
processing of Milk & Varied Milk Products.
VimalPasteurised Milk
Thick and Pure, Fresh and Sure
Vimal Milk a perfect blend of good health and wholesome taste. It's an ideal choice for people in
search of a nutritive balanced diet that does not compromise on taste. It is the right way to stay fit and
fine, jolly and cheerful.
Variety
Fat (%)
Vimal Gold (Whole milk)
6
Vimal Shakti (Standardised
4.5
milk)
VimalTaaza (Toned milk)
3
VimalSarthi (Double toned milk)
1.5
SNF (%)
9
8.5
8.5
8.5
P a g e | 23
salty blandish taste and pleasant aroma. Because of its stretchability , i.e. ability to form strings when
hot, this cheese is ideal for preparing Lasagna, Veal, Cutlet, AllaParmagnia and as a topping on pizzas.
When baked along with pizzas, it melts uniformly, beautifully engulfing all other ingredients of the
pizza surface. Vimal Mozzarella is an excellent source of milk proteins, which are palatable
Currently , available in 200gm and 500gm box packing :
Ingredients
Milk,Common Salk
100% Vegetarian Coagulating
Enzymes
Composition
between
Fat on dry matter
30% to 40
%
between
Moisture
45% to
52%
> 1.1% Salt
1.6%
P a g e | 24
%
80 %
16 %
2.5 %
0.8 %
Calorific Value:
720 kcal./100g
Special Features:
Made from fresh cream by modern continuous butter making machines. Marketed in India since last
decade.
Product Specification:
Meets AGMARK standard.
Calorific Value: 500 kcal./100gm - Every 60g of powder contains minimum 1300 I.U. and 200 I.U.
Vitamin D.
Special Features:
The product is creamy white in colour: Marketed in India since last decade.
VimalPasteurisedDahi (Curd)
P a g e | 25
P a g e | 26
Quality Policy
We at Vimal Dairy Ltd. are Striving for customer Satisfaction with Quality products and Quality
services at reasonable price by adopting appropriate technology.
Quality Objectives
1.Processing of milk & manufacturing of milk products as per standard quality levels.
2.Comply statutory requirements with all applicable standards and specifications.
3.Implement ISO 22000 quality managment system and update it as per future requirements.
4.Promote Hygienic enviroment.
5.Develop prevention based work culture.
6.Develop teamwork for better product quality, productivity & profitability.
7.Develop long lasting relationship with milk supplier for mutual benefits.
HACCP Ce rtified
AGMARK Approved
P a g e | 27
The MEHSANA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD has its
head Quarters & Dairy plant in Mehsana town. The union has five milk chilling centre at Vihar,
Kheralu, Kadi, Hansapur, &Harij, these chilling centers helps to store milk for longer period. All these
centers are located in the rural area. It has two cattle feed plants, at Boriavi&Ubkhal (capacity 300
M.T) & an animal breeding station at Jagudan, this breeding station helps to improve milk produces
animal.
The union provides various technical inputs to its members through village milk co-operative
societies. The milk collected is processed in to various products such as market Milk, Butter, Ghee,
Milk powder & Sweetened condensed milk.
The market milk is sold in Mehsana District directly by the Union, whereas other milk products
exported by the Gujarat Co-operative milk marketing federation into which the union is totally
committed to provide quality & error- free products & services to its customers with the ultimate aim
of satisfying them.
P a g e | 28
MILK CENTRES:
Due to large activities of dairy there are 5 centers (milk collection) established which are50 km
away from Mehsana.(Vijapur, Kheralu, Hansalpur, Harij and Kadi.)With the help of larger numbers of
trucks, it collects milk from several dairy centers then put the stock of milk into the cold storage for
pasteurized and then supply to main plant such as MEHSANA DUDHSAGAR DAIRY MANESAR
(HARYANA) as well as other various centers.
P a g e | 29
BOARD OF DIRECTOR
CHAIRMAN
MANAGING DIRECTOR
FUNCTIONAL DIVISIONS
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P a g e | 30
Level of Office :
Head Office
Phone No :
02762-253201
Website :
www.dudhsagardairy.co.in
Industry :
Sub Industry :
City :
Mehsana
State :
Gujarat
Pin :
384002
Company Type :
Industry Best
Total Turnover :
1000-2500 Crs
No. of Employees :
1001-2500
Sector :
Private Sector
P a g e | 31
LOCATION
DAIRY PLANT
(1) Dudhsagar Dairy
Post Box No. 1,
Mehsana 384 002.
Gujarat State.
CHILLING CENTRES
(1) Vihar Chilling Centres,
Vijapur,
Dist. Gandhinagar,
Gujarat State.
(4)
(5)
(1)
Boriavi CF Plant
Boriavi,
Dist. Mehsana
(2)
Ubkhal CF Plant
Ubkhal, Vijapur,
Dist. Mehsana.
P a g e | 32
PRODUCT NAME
MILK
Sagar Shakti milk
Sagar Gold milk
BUTTER
Dudhsagar pasteurized table butter
Dudhsagar pasteurized white butter
POWDER
Dudhsagar spray
Dudhsagarya (Dudhsagarya rich, Dudhsagarya pure)
Sagar skim milk powder (non fat)
GHEE
Sagar ghee
Dudhsagar ghee
P a g e | 33
For Quality
ISO 9001
In 2000
For Environment
ISO 14001
In 1996
For Safety
C.I.C.H.P.9000
In 2002
P a g e | 34
Dudhsagar processes raw milk procured from its member VCS which are spread across Mehsana
district, Patan district and a part of Gandhinagar district in Gujarat. The region, known as the 'Mehsana
milk shed area', is one of the largest milk producing regions in India. Dudhsagar's infrastructure
includes dairy units in Mehsana (Gujarat) and Manesar (Haryana), five chilling centers, one SCM
(sweetened condensed milk) plant and two cattle feed plants. It has total milk handling capacity of 25
llpd (lakh litters per day) at its Mehsana and Manesar units.
Dudhsagar's products include processed milk, ghee, butter, SMP (skimmed milk powder), WMP (
whole milk powder), SCM (sweetened condensed milk), flavored milk, buttermilk, ice-cream
and curd. Milk supply by member VCS to Dudhsagar during FY10 was 64.8 crore kg and decreased at
a CAGR of -2.6% over the last five years. The average price paid per kg of fat by Dudhsagar to its
member VCS is 341Rs, Price of milk are continuously increase from the last ten years.
GCMMF is the sole marketing agency for products manufactured by Dudhsagar. GCMMF has been
successful in building and establishing the 'Dudhsagar' brand which is one of the strongest brands for
food products in the country. Being the apex body of the cooperative structure, GCMMF is able to
exercise significant influence on the operations of the member DPUs, including Dudhsagar, with its
involvement in production planning, capital expenditure planning, product standardization, pool
purchase of packaging material, financial support and other critical managerial decisions.
GCMMF is run by professional management consisting of strong management team with offices/
warehouses across 47 locations in India. GCMMF is the market leader in majority of the dairy
products marketed by it in India.
P a g e | 35
Chilling Center
Powder Section
Storage
Dispatch
Distribution Channel
Consumer
Federation
P a g e | 36
P a g e | 37
Mother Dairy is one of the leading fully computerized liquid milk processing plants with an installed
capacity of handling & processing 10 lacks liters of milk/day. This unit came into existence in the year
1994 & started manufacturing commercial products on 19th September 1994.Mother Dairy has very
limited manpower requirement because it is fully computerized .In order to recruit people at senior
position advertisement are given & for all the remaining position, they select people whose names are
suggested by apprentice institutes or employment exchange. The people are selected after their
interviews have been taken. All the people employed in the organization have minimum qualification
of ITI .The unit does note employ any unskilled worker permanently but the unit on the contact bases
their services. They are given wages as per the factory act .The unit works in the three shifts. In each
shifts about 75 workers are working.
Mother dairy produces milk and milk items and their items packed under the brand name of the
AMUL. All the products of mother dairy are marketed by GCMMF (Gujarat co-operative milk
marketing federation). Productions of this unit are distributed not only In India but also in other
countries. This unit distributes nearly 5.5lacks liters of milk per day. This unit exports
full
cream
milk produces and ghee to Gulf countries, Japan, European, countries south Asian countries etc. These
are large number of unit some of them are nestle, Britannia, Vadilal etc. There marketing is about 55%
to 60% in milk and its products marketing.
P a g e | 38
PLOT NO.35
NR. INDIRA BRIDGE
VILLAGE: -BHAT
DIST: - GANDHINAGER
GCMMF
Registed office: -
GCMMF
Brand name:-
AMUL
Products: -
P a g e | 39
02742 252723
P a g e | 40
History of the Company:India is an agri- oriented country of the world. 70% people are living in rural area so we can say Indian
people are living in village the majority of population.
The dream of late Galbabhai Patel, founder chairman and the selfless sage to uplift socio- economical
status of village farmers came true after creation of a co- operative milk union for banaskantha district,
on the foot print of Amul Dairy of kaira presently Anand) district on the model of true co operative
milk societies in Vadgam and palanpurtaluka of district were registered and started collecting and
pouring milk at DudhSagar dairy, Mahesana from 10th march 1969.With this grass-root level work,
followed by the registration of the milk union under co operative act on 31st January 1969 as
Banaskantha district co-operative milk producers union limited palanpur, popularly known as
BANAS DAIRY.
A legend thus goes on, the foundation stone laid down by late Galbabhai Patel on 14th January 1971 at
122 acres land acquired near Jagana village In order to set up a dairy plant under the Operation Flood
Programmer launched by National Dairy Development Board. on 5th February 1971, the day of
VasantPanchmi, a dairy started functioning at the same place with handling capacity of 1.5 lac liters of
milk. This dairy plant was expanded later on with processing capacity of 4 lakh liters milk per day.
As a result of subsequent relentless efforts of dedicated and committed leadership by founder chairman
late GalbabhaiNanjibhai Patel, chairman late GalbabhaiNanjibhai Patel, Ex Parthibhai G. Bhatol,
working on co-operative principles won the trust of milk producers. Ultimately, a real shape of todays
modern dairy complex, the second largest dairy co-operative in India carved out.
A small step, organizing some societies and collecting few hundred liters of milk in the year 1966 has
turned into a quantum leap, when the ambitious and ultra modern automated dairy plant of Asia
continent has taken a real shape adjoining to first dairy plant (banas 2 dairy) with cost of is. 130 corers
to meet not only present but also future need to handle 10.5 lac liters milk per day. This banas 2 dairy
plant has highly sophisticated computer driven milk handling and processing facilities to produces 60
metric tones milk powder, 40 metric tone table butter with a 6.5 lac liter milk handling capacity per
day respectively. Te foundation stone of banas 2 project laid on 2nd October (dasera- vijyadasmi ) by
Dr. V. Kurien, the then chairman of NDDB and GCMMF, Anand, father of white revolution and the
milkman of India
P a g e | 41
Vision:The main vision of the company is providing maximum benefit to the members who are connecting
with the company.
The union will procure 12 lakh litters of milk daily. The milk processing capacity of the plant will be
12 litter per day & cattle feed processing capacity will be 500 MT per day ERP (enterprise resources
planning) will be implemented.
Mission:
Applying the principles of Quality Management System and food safety management for
continuous enrichment of our management processes.
Providing remunerating returns, quality input services, introducing innovative and appropriate
schemes and services to our milk producers.
Quality Policy of Unit:We, the Banas dairy, commit and aspire to fulfill the needs and expectations of our internal as well as
external customers and delight them through our quality products and services. We shall achieve this
goal through the followings:
Motivating and encouraging and providing appropriate training for skill up
Gradation of our employees of our employees.
Protecting our value system and the environment by judicious use of all
Natural
resources
Introducing innovative and appropriate schemes and services to milk Producers.
We hereby pledge severely unanimously to adhere the above commitment in all circumstances to
come.
P a g e | 42
Objective of Unit:The objective of the Banaskantha District Co-operative milk Producers Union Ltd Palanpur are as
under: To cater primary to the training needs of farmers involved in.
Management of primary dairy co operative societies
To impart knowledge and skill required for artificial insemination and
Other related animal husbandry activities for milk production enhancement
To train village level functionaries in effective operation of dairy coOperative societies
To upgrade sill on extension education for milk union personnel. To
Organize tailor mad training programmers in TQM for milk union
To impart training on behavioral change.
Size of the Unit of TheOrganisation:There are many forms in the business like, sole traders, partnership firms, joint stock company, etc. the
forms of Banas dairy is co-operative sector because Banas dairy.
Established on the basis of co-operative of the farmer cattle racer and milk producer.
Co-operative societies are set up primary with the object of organism. Some basis or essential services
for the members. Any surplus entered by co-operative society in incidental to the motto of the service.
There are types of industry unit, on the basis of investment.
1. small scale industry
2. medium scale industry
3. large scale industry
The Banas Dairy can classify as a large scale unit.
P a g e | 43
1992 -93 :- The award for the best performance in productivity dairy development & production in
co-operative sector- conferred upon by Dr. BalramJakhar, Union Minister of Agriculture at New
Delhi.
1993 -94 :- The award in recognition of performance in productivity dairy processing industriesconferred upon by Dr. ShankerDayal Sharma Hon. President of India at New Delhi
1993 -94:- There is another award conferred upon by Dr. Shanker, the Hon. President of India at
New Delhi for development &production in coop. and Public Sector.
1996 -97:- Best performancedairy processing industries conferred upon by shriSikanderBakht,
Minister of industries at New Delhi
1997 98:- The another award for same work upon by ShriKrishan Kant, Hon. Vice President of
India at New Delhi
2006:- Award from GCMMF for the best ice-cream making unit
P a g e | 44
Selection of Location:There are some reasons for location selection which are given below: Company can easily obtain the raw material
Obtain the cheaper land.
Company investment
Main points this GER provided he power supply.
It was far from the city that is why there is no problem of pollution to
the city people.
DEPUTY
MANAGERMA NA GER
P & E CC
SO & RPO
QA
DH
FIVECENTERS
INSTRUM ENT
AUDIT
A/C
TK
SA LES
PRODUCT
SECURITY PROC
SECURITY
PURCHASE
MATERIAL TESTING
LIQUID
BUTTER
MILK
& GHEE
POWDER GENERA L
STORE
FINA L
PRODUCT
SENIOR OFFICER
TQM & MR.
P a g e | 45
Introduction:The production process is the heart and blood of an industry. Production department plays an
important role in manufacturing of the production. It converts raw material in to finished goods. The
main and important raw material of dairy is milk. The BANAS DAIRY collects the raw material from
near village.
The Dairy has produced milk powder, butter, ghee, buttermilk, butter, chocolates in different pouches
and tins etc
The having an industry based upon agriculture is much needed to provided the main stream of
marginal and land ness farmers whose live wood is earned through milk business.
The total geographical area of the district is 12248 square km of which 72 percentage is cultivate while
12 percentage land is irrigated by tube wells canals, etc the area covered under forest is only 1106 sq.
km.
The New Launched Product:BANAS DAIRY launched some new products like:
Banas tea
Primia detergent cake
Primia detergent powder
Primia rose bath soap
Primia plus bath soap
P a g e | 46
Technology:
There are latest technologies, BANAS DAIRY imports technology and machine from well known places like,
ORANGABAD,
GERMANY,
ITALY,
DENMARK.
P a g e | 47
P a g e | 48
The dairy industry has been liberalised, providing new investment opportunities in milk
processing for local and regional markets. Production of high value milk products such as milk
powder, fermented milk and butter for export is encouraged.
Artificial Insemination plays an important role in the development of the dairy sub-sector. The
government is in the process of privatising these services thus providing an opportunity for
investment by the private sector.
Dipping services are important in control of tick-borne diseases that hinder the development of
high quality beef and dairy products. In the past the government has been providing the
services, which are now being privatised. This area offers another opportunity for private
investment.
Like dipping services, the government is also privatising clinical services. This area requires
large capital investment and is thus encouraged for private sector participation.
Provision of low cost/affordable technologies and equipment for small scale processing;
Introduction of value-added products with different flavours of Shrikhand, Ice creams, Paneer,
Flavored milk, Dairy sweets, etc. are to be undertaken.
Threats
Milk vendors of the un-organized sector are occupying the pride of place in the industry.
Organized dissemination of information and creation of public awareness about the harm that
the Un-organized venders do to the producers and the consumers will show a steady rise day
by day!
P a g e | 49
Political factors are how and to what degree a government intervenes in the economy. Specifically,
political factors include areas such as tax policy, labour law, environmental law, trade restrictions,
tariffs, and political stability. Political factors may also include goods and services which the
government wants to provide or be provided (merit goods) and those that the government does not
want to be provided (demerit goods or merit bads). Furthermore, governments have great influence
on the health, education, and infrastructure of a nation.
Governmental regulation
Economic factors include economic growth, interest rates, exchange rates and the inflation
rate. These factors have major impacts on how businesses operate and make decisions. For
example, interest rates affect a firm's cost of capital and therefore to what extent a business
grows and expands. Exchange rates affect the costs of exporting goods and the supply and
price of imported goods in an economy.
Tax rates:
Service tax:
Social factors include the cultural aspects and include health consciousness, population growth
rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the
demand for a company's products and how that company operates. For example, an aging
P a g e | 50
population may imply a smaller and less-willing workforce (thus increasing the cost of labour).
Furthermore, companies may change various management strategies to adapt to these social
trends (such as recruiting older workers).
P a g e | 51
intensifies the more frequently and more aggressively that industry members fresh actions to
boost their market standing and performance- perhaps at the expenses of rivals.
Switching cost:
There is very low switching cost for consumers in this industry making rivalry even more intense.
So it may affect the industry very strongly.
Buyer Demand:
These dairies specialize in delivering important or sensitive packages that need to be received in the
local area because of time concerns. So it plays moderate role in the industry.
Dominate Players:
When one or two rivals have powerful strategies and other rivals are scrambling to stay in the
game. Four major players in the premium organized segment dominate the industry. So it affect
P a g e | 52
very strong to the industry. But there is very less chance in the dairy industry because some of the
players (like Amul dairy) create very strong position in the market and also in the mind of
consumers.
Threat of New Entrants
The competition in an industry will be the lower; that is not easy for other companies to enter this
industry. In such a situation, thereat of new entrants is low in compare of other industries. The
threat of new entries will depend on the extent to which there are barriers to entry.
Industry Growth:
The industry has exhibited a growth of about 30% over the past four years and is expected to grow
at 25% for the next two to three years.
Entry Barrier:
The main entry barrier to the industry is it fixed cost of operating in the industry it requires lots of
resources as well as capital for the new entrants. So company need to take very important decision
while entering into the industry.
Threat of Substitutes:
Threats of substitute goods are very low in this industry because consumers have no other option
of the dairy products like milk, butter, buttermilk, etc...
Bargaining Powe r of Suppliers
Supplier bargaining power is likely to be high. The buying industry often faces a high pressure
on margins from their suppliers. The relationship to powerful suppliers can potentially reduce
strategic options for the organization.
Availability of input:
The packaging material is also easily available from the other supplier. So the bargaining power
of the supplier is low with weak impact on industry.
Supply of Labour:
P a g e | 53
Dairy industry mainly requires unskilled labour for performing jobs so the industry people dose
not requires finding skilled people from the market. That has become their task easy. Only at the
top level management they require few skilled people.
Bargaining Powe r of Customers
Bargaining power of customers is very low because customers have no more options in this
industry.
Force
Threats to Industry
Reasons
Existing rivalry
Strong
Improvement in quality.
Weak
Substitute products
Weak
Weak
Weak
P a g e | 54
Milk
Ghee
Buttermilk
Ice
cream
Milk
Powder
Dahi
Amul Dairy
Vimal Dairy
Dudhsagar Dairy
Mother Dairy
Banas Dairy
Inte rpretation:
Here in this competitive analysis we had taken five companies and different kind of six
products offered by them to their customers such as milk, Ghee, Buttermilk, Ice cream,
Milk powder. Dahietc.
P a g e | 55
The CPM identifies a firms major competitors and their particular strengths and weakness and
relation to a sample firms strategic position. The weights and total weighted scores in both CPM
and EFE have the same meaning. However, the factors in the CPM include both internal and
external issues; the rating refers to strength and weakness.
There are some important differences between the EFE and CPM. First of all critical success
factors in a CPM are broader; they do not include specific data and may even focus on internal
issues. The critical success factors in a CPM also are not grouped in to opportunities and threats as
they are in an EFE.
In a CPM the ratings and total weighted scores for rival firms can be compared to the sample firm.
The comparative analysis can be provide important internal strategic information
4. Then we multiply each factors weight by its rating to determine a weighted score.
5. Sum the weighted scores for each variable to determine the total weighted score for the
organization.
P a g e | 56
Critical Success
Factor
Amul Dairy
Dudhsagar
Dairy
Vimal
Dairy
Mother
Dairy
Banas
Dairy
WS
WS
WS
WS
WS
Market Share
0.16
0.64
0.32
0.48
0.48
0.48
Price
0.13
0.39
0.13
0.26
0.39
0.26
Financial Position
0.20
0.80
0.40
0.60
0.60
0.62
Service Quality
0.17
0.51
0.51
0.51
0.68
0.51
Customer Loyalty
0.18
0.36
0.36
0.38
0.54
0.36
Reputation
0.16
0.48
0.16
0.48
0.64
0.48
TOTAL
Competitiveness
3.18
1.88
2.71
3.33
2.71
Financial position is the most important critical success factor, as indicated by a weight of 0.20.
The sample company (Amul Dairy),market share and financial position are superior, as
evidenced by a rating of 4.
Competitors 1s (Vimal Dairy) price competitiveness and reputation are poor, as indicated by
rating of 1.
Competitor 2 (DUDHSAGAR DAIRY) customer loyalties and price competitiveness are poor as
indicate by rating 2.
Competitor 3 (MOTHER DAIRY) is the strongest firm overall as indicated by total weighted
score of 3.33
A word on interpretation: just because one firm receive a 3.33 rating and the receive 2.71 rating in
a CPM, it does not follow that the first firm is 22% better than second.
From the CPM analysis we can say that Mother Dairy take the dominate position in the Dairy
industry followed by Amul Dairy as a sample company.
P a g e | 57
Start-up:
This stage is also known as pioneering stage is typified by rapid growth in demand for the output
of the industry. In the earliest stage, demand not only grows but grows at an increasing rate. As
large number of companies attempt to capture their share of the market, there arise a high business
mortality rate, many of the weaker companies attempting to survive in this new industry are
eliminated and a lesser number of companies survive the initial phases of the pioneer stage.
Consolidation:
The expansion or growth stage is characterized by the appearance of the companies surviving
from the pioneering stage. This few companies continue to get stronger, both in share of the
market and financially.
P a g e | 58
Maturity:
The growth of the industry, which had moderated in the expansion stage, begins at some point to
moderate even further and perhaps even begin to stagnate. In other word sales may be increasing
at a slower rate than that experience by competitive industries or by the overall economy.
Decline:
The industry is in decline stage, its indicates the rapid decline in demand for the output of the
industry. The reason behind decline stage may be the industry reach at the stage where more
innovation require to apply in the industry so that it helps the industry to reach at the profitable
stage.
The industry has exhibited a growth of about 30% over the past four years and is expected to grow
at 25% for the next two to three years, making it one of the fastest growing segments in the
transportation of cargo. It is forecasted to reach 40% by 2017.
So from the above figure we can analyze that in this particular dairy industry, the stage of
introduction has been already completed. It is in its growing stage. This shows increasing
competition, demand, and requires higher investment on the other hand it will also give good
return to market player of the industry.
P a g e | 59
The major dominant economy features which are related to cement industry are given below.
Market size & Growth Rate:
dairy industry is one of the important industries in India and there are many dairy producers in
India. In India about more companies are working in dairy industry. Major five companies hold
50.4% of total production. Dairy industry growth is one of the main reasons for economy
growth.
Scope of competitive rivalry:
Most of the dairy companies in India are competing each other and the global companies
presence in India is low so the competition is between domestic levels. Most of the companies
are working in West, South and North regions of the country. The East side of the country has
the lower presence of dairy companies.
Number of Rival:
As we seen above, there are major more companies in India which are working in food &
beverage field with a more number of small dairy companies. Yet dairy industry is dominated
by main five companies.
Buyers needs and requirements:
Most of the buyers of food & beverage industry are residents. They use more portion dairy
consumption. Government also plays a major role of buyer of the dairy. People buy the dairy
on their requirements with such features brand, quality, cost, etc.
Production capacity:
The production capacity of food & beverage is different in the different company. Five major
companies hold 50.4 % portion of total production and rest is held by smaller companies.
P a g e | 60
Product innovation:
Dairy industries
is homogeneous product and there are only few uses of it. So product
innovation is not seen in it. Yet companies are trying to differentiate their products with the
rivals and for it they always trying for innovation.
P a g e | 61
P a g e | 62
Trend analysis tries to predict a trend like a bull market run and ride that trend until data suggests a
trend reversal (e.g. bull to bear market). Trend analysis is helpful because moving with trends, and not
against them, will lead to profit for an investor.
Company Name
Amul Dairy
Dudhsagar Dairy
Vimal Dairy
Mother Dairy
Banas Dairy
TOTAL
2011
Net Sales % Change
808.72
100%
152.81
100%
279.36
100%
457.37
100%
114.57
100%
1812.83
100%
2012
Net Sales % Change
975.46
120.61%
174.81
114.39%
210.22
75.25%
552.07
120.70%
87.62
76.47%
2000.18
110.33%
2013
Net Sales % Change
905.23
111.93%
191.93
125.60%
215.9
77.28%
618.08
135.13%
106.35
92.82%
2037.59
112.40%
P a g e | 63
Net Sales
100%
98%
96%
94%
92%
2011
2012
2013
Inte rpretation:
On the basis of the Net sales of the selected companies, we can interpret that overall Net sales of the
industry is increasing constantly.
From the above chart we can interpret that in the year 2011, Net sales is increase with 10.33%
compare to the year of 2011, because of Amul Dairys Net sales is increasing with the 20.61% as
well as Mother Dairys sales is increasing with 20.70%, Dudhsagar dairys Net sales is increasing with
14.39% . But we can see that in the Banas dairys and Vimal dairys Net sales of 23.53% and 24.75%
simultaneously.
On the basis of above interpretation we can analyze that out of five companies majorities Net sales is
increasing with 10.33% so, industrys 2011-12 trend go upside.
While in the year 2012-103Net sales increases with 2.10% in the industry and industrial trend goes
slightly upside because in the selected companies Net sales is slightly increases.
P a g e | 64
4.1.2 Trend Analysis of the Industry On the Basis of Earning Per Share
Table 4.2 Trend Analysis of the Industry On the Basis of Earning Per Share
Company Name
EPS
Amul Dairy
29.26
Dudhsagar Dairy
87.62
Vimal Dairy
9.47
Mother Dairy
3.09
Banas Dairy
27.74
TOTAL
157.18
Figure 4.2 % change in EPS
2011
% Change
100%
100%
100%
100%
100%
100%
EPS
32.38
86.67
0
2.67
21.33
143.05
2012
% Change
110.66%
98.91%
0
86.40%
76.89%
91%
EPS
25.38
102.38
4.04
0
7.13
138.93
2013
% Change
86.73%
116.84%
42.66%
0
25.70%
88.39%
% change in EPS
102%
100%
98%
96%
94%
92%
EPS
90%
88%
86%
84%
82%
2011
2012
2013
Inte rpretation:
On the basis of above chart we can interpret that the EPS of the industry is decrease 9% in the
year of 2008-09. Because of selected companies EPS is also decreasing.
In the year of 2011-12 Mother dairys EPS is decreases by 13.6%, In case of Banas dairy. The
EPS decrease from the year 2011-12 is 23.11%, it is more than other companies, while in the
Dudhsagar dairy. Minor decrease in EPS that is 1.09%.
On the other hand in the Amul dairy, The EPS is increase by 10.33% but its not show the
increasing trend of industry because major companys EPS are decrease.
So, the overall trend of the EPS in the industry is decrease. On the basis of above chart we can see
that EPS is also in decreasing trend in the year of 2012-13. It is less decrease compare to 2011-12.
Because there is less fluctuation of the EPS in the selected companies.
P a g e | 65
2011
EPS
% Change
680.83
100%
106.35
100%
2012
EPS
% Change
849.35
124.75
121.94
114.65%
2013
EPS
% Change
801.49
117.72%
133.22
125.26%
312.24
412.15
141.9
1653.47
253.93
519.77
162.35
1907.34
257.41
585.68
187.34
1965.14
100%
100%
100%
100%
81.33%
126.11%
114.4%
115.35%
105%
100%
95%
90%
2011
2012
2013
82.44%
142.1%
132.02%
118.84%
P a g e | 66
Inte rpretation:
From the chart we can says that there is more fluctuation of expenditure in the year of 2011-12
compare to 2011-12. In the year 2011-12 there is 15.35% increases in the expenses of the
industry because out of five selected companies four companys expenses are increases such as
Dudhsagar dairy 14.65%,Banas dairy 14.4%, Mother dairy. 2.11%, Amul dairy 24.75%.
And the only one companys expenses are decrease that is 18.67%. So its doesnt make any
impact on the trend of industry.
So at last we can says that total expenditure of the industry is less increases in the year 2012-13
compare to 2011-12, so its beneficial for the industry.
P a g e | 67
It helps in analysing the probable causal relationships among different items after analysing the past result
This rations that are derived after analysing the past results helps the management to prepare budgets, to
formulate policy, and to prepare a future plan of action
Ration analysis helps in making inter-firm comparison and also comparison between the different divisions
of the company
The short term liquidity position of the industry can be easily found by applying the liquidity ratio.
2. Types of ratio:
Profitability ratio
Liquidity ratio
P a g e | 68
Curre nt Assets
Curre nt Liability
202.1
257.28
282.92
27.76
37.94
45.35
115.86
90.84
80.92
147.52
263.16
278.59
43.46
59.67
64.21
536.7
708.89
751.99
94.15
99.42
107.99
17.63
24.69
29.09
57.27
57.56
60.07
31.9
86.78
57.45
29.42
37.59
47.38
230.37
306.04
301.98
Curre nt
Ratio
2.15
2.59
2.62
1.57
1.54
1.56
2.02
1.58
1.35
4.62
3.03
4.85
1.48
1.59
1.36
2.33
2.32
2.49
P a g e | 69
Current Ratio
2.55
2.5
2.45
2.4
Current Ratio
2.35
2.3
2.25
2.2
2011
2012
2013
Inte rpretation:
In the above table we can see in the assets of the Vimal dairy is decrease from the year 2011 to
2012. Same in the case of current liability it increases Almost 55crs. in the Mother dairy in year
2011 to 2012.
If we look at the total scenario of all the company then current assets of the industry increases by
32% and current liabilities also increases 33% which is more than the current assets which shows
little bit decrease in the year 2012.
In the year 2012 to 2013 the current assets of the Amul dairy is increase by 25 crs and the liability
decrease in case of Mother dairy by 21crs. The industrys overall effect is shows increasing trend.
The current ratio is increase from year 2012 to 2013 by 0.17
P a g e | 70
QUICK RATIO =
CURRENT ASSETS-INVENTORY
CURRENT LIABILITY
Particular
(Rs. in Crs.)
Amul dairy
Dudhsagar
dairy
Vimal dairy
Mother
dairy
Banas dairy
TOTAL
Year
Curre nt Assets
Inventory
Curre nt Liability
Quick Ratio
2011
2012
2013
2011
2012
2013
2011
2012
2013
2011
2012
2013
2011
2012
2013
2011
2012
2013
202.1
257.28
282.92
27.76
37.94
45.35
115.86
90.84
80.92
147.52
263.16
278.59
43.46
59.67
64.21
536.7
708.89
751.99
2.04
2.19
2
0.31
0.51
0.83
0.54
1.29
1.36
1.53
2.76
4.54
0
0
0
4.42
6.75
8.73
94.15
99.42
107.99
17.63
24.69
29.09
57.27
57.56
60.07
31.9
86.78
57.45
29.42
37.59
47.38
230.37
306.04
301.98
2.11
2.57
2.60
1.56
1.52
1.53
2.01
1.56
1.32
4.58
3
4.77
1.48
1.59
1.36
2.31
2.294
2.461
P a g e | 71
Quick Ratio
2.55
2.5
2.45
2.4
Quick Ratio
2.35
2.3
2.25
2.2
1011
2012
2013
Inte rpretation:
In this ratio absolutely liquid assets are consider and includes only cash in hand. Cash at bank
and short term marketable securities. Inventories are excluded because there is doubt of its
reliability in cash at a time.
From the above table the assets of Amul dairy in the year 2012 to 2013 increase by 55crs.
And inventory decrease by 0.19crs. In the year 2012-2013the liability decreases in case of
Mother dairy by 21crs. So its overall increases the liquidity position of the industry.
The major reason for increase in the liquidity of the industry in the year 2013 is increase in
quick ratio of the Mother dairy Dairy which reflects the whole industries quick ratio. So we
can say that the overall liquidity position of the Dairy industry is very good.
P a g e | 72
Dudhsagar
dairy
Vimal dairy
Mother
dairy
Banas dairy
TOTAL
Year
Gross Profit
Net Sales
2011
2012
2013
2011
2012
2013
2011
2012
2013
2011
2012
2013
2011
2012
2013
2011
2012
2013
130.6
135.31
110.79
8.09
8.4
9.46
28.2
5.5
16.97
43.11
46.01
9.24
17.47
15.83
8.62
227.47
211.05
115.08
808.72
974.46
905.23
114.57
130.22
142.45
297.36
210.22
215.9
457.37
552.07
618.08
152.81
174.81
191.93
1812.83
1951.78
2801.59
P a g e | 73
6
4
2
0
2011
2012
2013
Inte rpretation:
From the selected companies the gross profit ration of the year 2011-2012 was decrease in Amul
dairy 2.26%,Vimal Dairy 0.61%, Mother dairy 1.1%, Banas dairy 2.37% and the major decrease
in Vimal dairy company by 8.28% because the gross profit of the company was highly decrease
by 22.7crs Rs. So it affects Vimal dairys GP ratio.
In the case of year 2012-2013there very fluctuation in the gross profit. There is increase in gross
profit ratio of two companies such as Dudhsagar dairy is 0.19%, Vimal dairy 5.24% because there
is highly increase in gross profit of 11.47 crs.
There are three companies which gross profit goes down such as Amul dairy with 1.65%, Banas
dairy with 4.57% and the major decrease in Mother dairy by 6.84% because gross profit suddenly
decrease by 36.77crs.
So from all the above interpretation we a can says that the gross profit of the dairy industry is
going down the reason behind that is highly decrease in the gross profit ratio in the year 2012
2013 by 5.27% which is double then the earlier year. This is a result of sudden increase in net
sales by 849.81crs.
P a g e | 74
Dudhsagar
dairy
Vimal dairy
Mother
dairy
Banas dairy
TOTAL
Year
2011
2012
2013
2011
2012
2013
2011
2012
2013
2011
2012
2013
2011
2012
2013
2011
2012
2013
Profit After
Tax
69.93
77.35
60.71
3.75
3.71
4.37
12.23
-3.56
5.21
23.36
23.78
-15.06
9.52
7.38
2.58
118.79
108.56
57.81
Net Sales
808.72
974.46
905.23
114.57
130.22
142.45
297.36
210.22
215.9
457.37
552.07
618.08
152.81
174.81
191.93
1812.83
1951.78
2801.59
P a g e | 75
3
2
1
0
2011
2012
2013
Inte rpretation:
From the above chart, we interpret that the net profit ratio of the industry. In the year 20122013 is decrease by 3.5% because the PAT is decrease by 50.75crs. It is double than in
previous year and net sales is more increase by 849.81 crs. So overall effects is decrease the net
profit ratio.
The effect of decrease in net profit ration of the industry come from highly decreases in one of
the company called Mother dairy by 6.74%.
In the year 2011-2012the net profit ratio of the industry was minor decrease by 0.09%.
P a g e | 76
Year
EBIT
Other
income
Net Sales
Amul dairy
2011
2012
2013
2011
2012
2013
2011
2012
2013
2011
2012
2013
2011
2012
2013
2011
2012
2013
106.99
119.26
93.58
6.39
6.33
7.33
24.64
0.23
12.21
40.33
41.17
21.64
15.1
13.55
6.48
193.45
180.54
141.24
3.13
10.71
3.13
0.06
0.07
0.06
67.51
53.57
63.83
6.21
23.44
12.25
7.15
4.46
5.31
84.06
92.25
84.58
808.72
974.46
905.23
114.57
130.22
142.45
297.36
210.22
215.9
457.37
552.07
618.08
152.81
174.81
191.93
1812.83
1951.78
2801.59
Dudhsagar
dairy
Vimal dairy
Mother
dairy
Banas dairy
TOTAL
Ope rating
Profit Ratio
(%)
12.84
11.13
9.99
5.53
4.81
5.19
-15.34
-25.37
-23.90
7.46
3.21
1.51
5.20
5.19
0.60
6.034
4.523
2.022
P a g e | 77
3
2
1
0
2011
2012
2013
Inte rpretation:
In the year 2011-2012 dairy industrys operating profit ratio was decrease by 1.511% because
of neMotherDairy have operating profit earn by Vimal dairy. In case of Vimal dairy operating
profit ratio decrease by 10.03% and in case of Mother dairy it decrease by 4.25% the reason
behind it was minor change in EBIT and other income was increase by 17.23crs.
In the year 2012-2013 the industrys operating profit was decrease by 2.501%, it is double
decrease then earlier year. One of the main reason of decrease is the operating profit ratio of
Banas dairy is drastically decrease by 4.59% because the EBIT decrease by 7.07crs.
P a g e | 78
4. DEBT-EQUITY RATIO
A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders'
equity. It indicates what proportion of equity and debt the company is using to finance its assets. Also
known as the Personal Debt/Equity Ratio, this ratio can be applied to personal financial statements as
well as corporate ones.
DEBT-EQUITY RATIO =
TOTAL DEBT_____
SHAREHOLDERS EQUITY
Dudhsagar
dairy
Vimal dairy
Mother
dairy
Banas dairy
TOTAL
Year
Debt
Equity
2011
2012
2013
2011
2012
2013
2011
2012
2013
2011
2012
2013
2011
2012
2013
2011
2012
2013
0
0
0
0.42
0.77
0.97
41.61
49.76
46.08
189.87
223.82
470.11
4.2
7.5
0.99
236.1
281.85
518.15
317.3
391.87
449.81
16.23
19.13
23.01
90.06
75.56
80.76
177.48
303.78
277.74
23.51
30.22
31.62
624.58
820.56
862.94
Debt-Equity
ratio
0
0
0
0.025
0.040
0.42
0.46
0.65
0.57
1.06
0.73
1.69
0.17
0.24
0.031
0.378
0.343
0.6
P a g e | 79
Debt-equity ratio
0.7
0.6
0.5
0.4
Debt-equity ratio
0.3
0.2
0.1
0
2011
2012
2013
Inte rpretation:
From the above graph we conclude that in the year 2011-12 the debt-equity ratio was decrease
0.035. the reason behind that was two companys ratio was decrease such as
Mother dairy by 0.33 it indicates the debt & equity both were increases
Banas dairy by 0.07 because equity increases by Rs.6.71crs
The debt-equity ratio of Vimal dairy and Dudhsagar dairy was increase by 0.19 and 0.015
respectively. In case of Vimal dairy the reason behind increase in the ratio was increasing debt by
8.15crs and decrease in equity by 14.5crs.
The dairy industrys debt equity ratio increases in the year 2012-2013 by 0.257 because the debt
highly increases by 236.3crs whereas equity has less fluctuation. Increase in the ratio of three
companies which are Dudhsagar dairy by 0.02, Mother dairy by 0.96 because the debt are highly
increases by Rs. 246.29 crs and equity decrease by Rs.26.04crs.
One of the company Vimals debt-equity ratio decrease by 0.08. Because debt are decreasing by
3.68crs and equity are increase by 5.2crs so we can conclude by saying that the position of the
capital structure of the dairy industry was good during 2011-2012 because it includes more equity
portion than debt but in the year 2012-2013the graph shows high increase in ratio which may be
harmful for the company and shareholder in future.
P a g e | 80
P a g e | 81
5.PROJECT EXECUTIVE SUMMARY
1.PROJECT BRIEF
Dairy production is an all- inclusive activity, related to animal care, reproduction, feeding,
and management. It is defined as all those aspects and activities relating to raising of dairy
animals during their various phases of life to get wholesome milk. The proposed project is
to be in the vicinity of indian dairy.
The role oflivestock in the rural economy may be assessed by the fact that 30 to 35 million of the
totalrural population is engaged in livestock farming, having 2 to 3 cattle/buffalo and 5 to 6
sheep/goats per family deriving 30 to 40 per cent of income from it
The main product of the dairy farm will be milk which will be sold on daily basis, the
production of milk will be 156,300 Liters, and the annual sales will touch Rs 4 million with
50 adult animals.
The initial total investment is of Rs 5,128,691. The Project can be completed in 03 months
time. The best quality animals are readily available in the Mansehra region and can be
transported to the project easily. The market is readily accessible. Eight persons will be
employed at the farm, while more jobs will be created indirectly with the farm.
2 .PROJECT RATIONALE
Dairy farming is an agro-based project, which comprises of two aspects: dairy production
and dairy technology. Dairy production is an all- inclusive activity, related to dairy animal
care, reproduction, feeding, and management and is defined as all those aspects and
activities relating to raising of dairy animals during their various phases of life to get
wholesome milk. Dairy technology relates to all aspects of processing milk to convert it into
various products.
This conversion of milk into product is practicable only if it iseconomically viable. Dairy animals,
mainly buffaloes and cows are purchased from theanimal markets or breeders located in peri urban
areas of cities like , Islamabad, Lahore,Okara, mehasana, Sheikhupura, surat, Multan, gandhinagar and
Faisalabad. Dairyanimals are fed on protein sources (concentrate) along with plenty of green fodder.
Animalsare milked twice a day i.e. morning and evening. The milk is sold at the farm or may
bedirectly sold in the urban market. The milk price varies according to its quality and the
season. Buffalo milk is sold at Rs 24-26 per liter at the farm gate and Rs 20-22 in the urban
market. Cow milk is sold at Rs 21-23 per liter at the farm and Rs. 28-30 in the urban
markets. The demand and supply both have shown increasing trend over the last decade.
The demand for good quality milk is high. The table below shows this trend.
Population of livestock (million)
Species 2011-12 2013-14
Cattle 23.3 23.8
Buffalo 24.8 25.5
Sheep 24.6 24.7
Goats 52.8 54.7
Production of Livestock Products
Product
Milk (million tones) 27.031 27.811
Mutton (000, tones) 683 702
P a g e | 82
Dairy farming is considered the backbone and mainstay of economy. It provides raw
material for food & leather industry. The produce is a major source of food, i.e. milk and
meant. The byproducts of dairy farming such as farmyard manure (FYM) are not only
environment friendly but also provide valuable earnings. Sizeable foreign exchanges
earnings are also possible through export of its various products.
3. MARKET OPPORTUNITY
Raw milk is used for drinking and tea making purpose. Inrural areas, milk is used to make desi ghee
(clarified butter) , yogurt, whey (lasi) and butter.Rural as well as the urban households are the major
consumers of milk.
The provincial economy is primarilyagrarian with a limited industrial base. General studies and
surveys indicate that this projectcan obtain a good market response and healthy earnings.
The daily milk intake of Manshera and surrounding areas is0.020 million liters respectively.
The demand for milk increases during summers as the consumption of whey (lassi) rises
due to hot weather. Ghee is obtained by heating the milk to evaporate water and removing
the curd. Liquid butter oil with 93% fat content and a much smaller volume results. It is
easy to store and resists spoilage even at tropical temperatures. The ghee from buffalo milk
is white and that from cow milk yellow. Dahi or curd (similar to yogurt) is another popular
product.
If not refrigerated it must be consumed within 24 hours. Khoya is a popular sweet.
It is prepared by condensing the milk to about 20% fat. Sugar and some spices are added in
order to obtain desirable flavors. It is a high value product however it also has a relatively
short shelf life. Milk processing companies use milk as a raw material to formulate different
types of milk i.e. pasteurized milk, UHT treated milk, condensed milk, skim milk & milk
powder, etc.
Different value added products like yogurt, ice cream, butter and cheese are
also prepared from the raw milk. The processed milk quality and market share has increased
considerably over the last five years and provides numerous opportunities to the dairy farm
investor to benefit from it.
4. BUSINESS PLAN
The good quality lactating adult animals will be purchased; their milk giving ability will be
optimized by giving them quality feed and taking proper care. The profitability of the
project will be maximized by selling both to the end consumers as well as to the
wholesalers.
P a g e | 83
5. PRODUCT SALES OF BUSINESS PLAN
annual Qt of
milk
Sale
price
per
liter
Amount
Animal
Non
lactative
lactative
Production
of milk per
days
cows
5.00
30.00
285
14
119,700
26.00
3,112,200
buffaloes
3.00
12.00
305
10
36,600
22.00
805,200
17.00
156,300
4,859
3,917,400
82,600
Total
4,000,000
The good quality lactating adult animals will be purchased; their milk giving ability will be
optimized by giving them quality feed and taking proper care. The profitability of the
project will be maximized by selling both to the end consumers as well as to the
wholesalers.
P a g e | 84
RAW MATERIALS
The main material required at farm are cattle feed, Dry & Green roughage,
water and
The cost of feed are detailed below.
medicines.
Daily Feed Requirements
Animal Daily Requirement (kg)
Cow
Green Fodder
40.00
Dry Roughage
5.00
Concentrate
3.18
Cost/kg
Total
45.78
Amount
0.10
2.00
10.00
4.00
10.00
31.78
0.10
2.00
10.00
5.00
10.00
31.78
Buffalo
8
Green Fodder
Dry
Concentrate
Total
50
5
3.18
46.78
P a g e | 85
The product for sales are given for ready reference as well the expected sales at full capacity
is also worked out in the table below.
Milk/Cow/Day 14 Ltrs
Milk/Buffalo/Day 10 Ltrs
Wet Cows as % Total no. of Cows 80%
Wet Buffalos as % Total no. of Buffalos
70%No. of Days in Year 365 Days
Sale Price of developed progeny
Cow 60,000 Rs.
8. PRODUCTION PROCESS
Dairy animals, mainly buffaloes and cows are purchased from the animal markets or
breeders located in peri urban areas of cities like , Islamabad, Lahore, ahemadabad,
Sahiwal,gandhinagar Bahawalpur, Mehasana, Sargodha and surat. Dairy animals are
fed on protein sources (concentrate) along with plenty of green fodder. Animals are
milked twice a day i.e. morning and evening. The milk is sold at the farm or may be
directly sold in the urban market. The milk price varies according to its quality and the
season. Buffalo milk is sold at Rs 20-22 in the urban market. Cow milk is sold at Rs. 18-20
in the urban markets.
9. DISTRIBUTION CHANNELS
It is suggested that milk will be sold on farm door through contractors, gawalas or people
around that area or may be pasteurized at farm by the farmer and then deliver it to the near
by city. Following are some of the target clients for a dairy farmer.
1. Local people
2. Gawalas
3. Milk collection companies
4. Contractors
P a g e | 86
P a g e | 87
We had started with the introduction of the Dairy industry followed by global scenario, scenario of
Gujarat and silent feature of the industry.
Then we move to major player of the industry in which we selected five major players on the basis of
filtration with help of net profit and give in depth information about those five selected companies
those are Amul Dairy, Dudhsagar Dairy, Vimal Dairy, Mother Dairy (Gandhinagar), and Banas Dairy.
Next we applied strategic analysis tool which affect the performance of the Dairy industry such as
Driving forces
Technology
Opportunity-threat Analysis -
Competitive Analysis
compare to other
At the end we focused on the financial performance of the selected five companies and analyse
industry performance with the help of trend analysis, liquidity ratio and profitability ratio.
P a g e | 88
P a g e | 89