Académique Documents
Professionnel Documents
Culture Documents
By
Name Exam No.
Krupaben Patel (13044311087)
Madhavikaben Patel (13044311089)
MittalbenPatel (13044311092)
Naitikkumar Patel (13044311093)
MukeshkumarPrajapati (13044311116)
AshavinkumarRabari (13044311119)
RameshjiThakor (13044311139)
December - 2014
CERTIFICATE BY THE GUIDE
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),
AshvinkumarRabari (13044311119) , Ramesh Thakor(13044311139)submitted to V. M. Patel
Institute of Management for the Award of Master of Business Administration (MBA Semester -
III) is original research work carried out by them under my supervision.
This report has not been submitted either partly or fully to any other University or Institute for
award of any degree or diploma.
Date : 05/12/2014
Place : Kherva, Ganpat university
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.
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.
It was really difficult for me to complete the management research project without getting co-
operation 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.
1.2 Overview
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, Dedication, Discipline are forming
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 for production planning and milk procurement and handles the distribution of
milk from surplus union to the deficit areas.
According to Mr. B M Vyas, Managing Director GCMMF: Were in between the two extremes - the
customer and the farmer. Both expect the maximum intake. In one way, the customer wants to have
the best product available at the lower price. On the other, far mer expects the maximum a mount
for his milk. To sustain in the business we have to make sure that we give them what they want.
As all these require a tight integration in the supply and value chain activities, GCMMF is able to
excel it by educating the farmer and providing him the necessary guidance on one end and on the
other end approaching the consumer with the best product and understanding the Indian
consumer better. The information technology and total quality manage ment came together to
help the GCMMF to gain control on the procurement, processing and distribution functions.
VISION MISSION
STRATEGY
TWE
Continuous Improvement
TEI TQC
HR
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 highly distributed system was clearly understood. Close
coordination has been the main feature of the value 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 of the time. The IT related initiatives that GCMMF
undertook include - an ERP initiative to integrate the market related activities. WEB
initiatives made the consumer well aware of Amul. Online Stores and Portal activities like
emailing, greetings gave the consumer a better picture of Amul.
AMCUS, the Automatic Milk Collection Unit Systems are empowering the farmers by
employing IT at village co-operative societies. IT increases the transparency levels in
the system and builds the trust among the farmers. Making the 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 of India under the WTO
agreement, the Indian industry faces a challenge, the co-operative diary sector has
to further improve the production, collection, processing and marketing of milk and
milk products. The National Dairy Development Board has drawn up a program to
P age |6
double milk collection in the next six years. This sharp increase requires an extensive
educational program that should reach millions of farmers and 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. Members elect a managing committee headed by a chairperson responsible for
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 Systems at village societies to enhance the transparency of
transaction between the farmer and the Co-Operative Society. These systems not
only ensured the transparency but also gave Co-Operative societies a unique
advantage by reducing the processing time to 10 percent of what it used to be prior
to this. GCMMF indeed got the entire supplier information through the systems
integration. 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
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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 like Enterprise wide Integrated 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.
Accordingly, a system for improving the milk procurement system was conceived,
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. Starting from day one
the implementation of Information System Plan went in a big way. The
imple mentation of AMCUS gave GCMMF enough experience for the deeper the
exploitation of IT.
Amul is not a food company, it is an IT company in the food business, according to
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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.
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 was basically been implemented at the procurement end 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 mentor. The AMCUS changed the operations of village
societies, by reducing the response time. The data that is being 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
mentoring the societies and providing the guidance that is required for the effective
management of the systems. The village society will be responsible for the operation
of the system. Starting from the purchase of the hardware to software installation
and the service aspects are properly managed by the village cooperative society
officials. These societies have the right to select the service provider. GCMMF limited
itself as a facilitator by empowering the village cooperativesocieties. This
empowerment model facilitated the rapid diffusion of IT. The village cooperatives
learnt quickly with the support of the software companies that are providing them
the software, hardware services. These companies also played a major role in
enhancing the acceptance of the innovative ICT platform.
After automating the milk collection process, it is the turn of DISK to provide the
rural population of Gujarat, the required guidance and education. The DISK is in its
inception stage. It is being pilot tested in the village cooperatives of Gujarat state.
This is being implemented in Uttarsanda Milk Society, which is an ideal cooperative
for testing. The society has 2200 members and collects $350 worth milk per day. It
has applied for ISO9002 quality certification as part of the TQM movement. The
required assistance and support for the pilot test is given by the GCMMF to
encourage the village cooperative to participate in the IT revolution. IIM-A is training
the rural communities to handle the systems effectively. IIMA is involving small
private sector companies to take the DISK project to a large number of rural places.
Conclusion
Company name Profit after Net sales Net Profit Ratio Rank
Tax
Vimal Dairy 5.21 215.9 2.4131542 3
Amul Dairy 60.71 905.23 6.7065828 1
Dudhsagar Dairy 4.37 142.44 3.0679584 4
Mother Dairy 15.11 744.72 2.0289504 2
Banas Dairy 2.58 191.93 1.3442400 5
2.58
15.21
16.12
Vimal Dairy
Amul Dairy
12.58 Dudhsagar Dairy
Mother Dairy
Banas Dairy
60.71
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
The seeds of this unusual saga were sown more than 65 years back in Anand, a small town in
the state of Gujarat in western India. The exploitative trade practices followed by the local trade cartel
triggered off the cooperative movement. Angered by unfair and manipulative practices followed by
the trade, the farmers of the district approached the great Indian patriot SardarVallabhbhai Patel for a
solution. He advised them to get rid of middlemen and form their own co-operative, which would
have procurement, processing and marketing under their control.
In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the
cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and
Tribhuvandas Patel, they formed their own cooperative in 1946. This co-operative, the Kaira District
Co-operative Milk Producers Union Ltd. began with just two village dairy co-operative societies and
247 litres of milk and is today better known as Amul Dairy. Amul grew from strength to strength
thanks to the inspired leadership of Tribhuvandas Patel, the founder Chairman and the committed
professionalism of DrVergheseKurien,who was entrusted the task of running the dairy from 1950. The
then Prime Minister of India, LalBahadurShastri decided that the same approach should become the
basis of a National Dairy Development policy. He understood that the success of Amul could be
attributed to four important factors. The farmers owned the dairy, their elected representatives
managed the village societies and the district union, they employed professionals to operate the dairy
and manage its business. Most importantly, the co-operatives were sensitive to the needs of farmers
and responsive to their demands.
At his instance in 1965 the National Dairy Development Board was set up with the basic
objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as its
Chairman and asked to replicate this model throughout the country.
P a g e | 14
CHEMICAL ANALYSIS
Lactose Mohohydrate, %,
99.7 99.0
min.
Appearance of solution
Clear,
(3 g in 10 ml. of boiling Odourless.
colourless&odourless.
water)
MICROBIOLOGICAL STANDARDS
Yeasts &Moulds in 1 g,
100 -
Max.
E.Coli in 10 g. Absent -
PHYSICAL CHARACTERISTICS
P a g e | 15
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
Applications
Baking industry
o Enriched breads
o Milk bread
o Cakes
o Pastries
o Cookies
Confectionery
o Milk chocolate
o White chocolate
o Caramel
Dairy Products
o Ice cream
o Dairy- flavoured beverages
o Yogurt
o Cheese
Delicatessens
Baby food
Weight management products
o Meal replacements
o Anti-obesity foods
o Food for seniors
Therapeutic nutritional foods
Pharmaceutical products
P a g e | 18
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
Goal
The main goal of the Amul dairy is to provide employment & product milk& product item to the
people.
He delivered his income almost entirely from seasonal crops. The income from milk as paltry from
milk as paltry 4 could not be depending upon. The main by years were
Milk traders of Polson limited a privately own company as enjoyed monopoly for supply of milk from
kaira to the govts milk scheme Bombay.
The farmer appealed to sardarpatel a great leader at India freedom movement for help Sardar Patel
advice them to market the milk through a co-operative of their own.
Due to the milk through strike by kaira farmers for 15 days not a drop of milk was sold to traders. The
Bombay milk scheme was badly affected. The milk commissioner of Bombay visited Anand assessor
the situation & farmers demand.
Thus was born the kaira district co-operation Milk producers union limited, Anand. It was formally
on December 14, 1946.
At the request of manufacture 40 tones milk powder 720 tones of butter a day was completed in 1963.
In 1974, kaira union set up a plant to manufacture chocolate, about 8 km south of Anand.
P a g e | 20
Professor PualLamber have been defined the co-operative societies are set up primary with the
object of organism, some basic or essential service for the benefits of members. Any surplus entered
by the co-operative societies is in incidental to the motto of service.
Large-scale industries
Medium scale industries
Small scale industries
The size is determined by the investment of the unit &its fixed assets & plant.
P a g e | 21
ORGANIZATION CHART
Chairman
Vice chairman
Board of Directors
Managing Director
General Manager
Manager
Control
Workers
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
Vimal is introducing genuine Mozzarella Cheese for pizzas & other exotic dishes.Vimal Pizza Cheese
has Moist, Soft, Elastic texture and has a very timely surface sheen and when fresh, it has a slightly
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%
"Richer, Softer, Better" Paneer made out of fresh milk. Automated production process giving Hygienic
Fresh Paneer unlike the locally made Paneer& being sold in open.
Most convenient form of diced / Block Fresh Paneer which can be stored in deep freeze for usage at
any time.
Composition %
MIlk Fat 80 %
Moisure 16 %
Salt 2.5 %
Curd 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.
VimalPasteurisedDahi (Curd)
P a g e | 25
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.
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
DUDHSAGAR DAIRY
In 1985 UNICEF had expected that they will garnered plenty of milk from the Mehsana region. The
members of UNICEF were discussed with late SHREE MANSINHBHAI PRITVIRAJ PATEL about
this matter. Mansinhbhai always kindly towards the farmers. He got the fact that the duties of the
intermediaries will be eliminate, the producers will have the enormous benefits from the milk and
eventually the customers will get superior quality of milk. Producers could receive their actual price.
With the aid of his idea there was an establishment of MEHSANA DISTRICT CO-OPERATIVE
DAIRY in 8-11-1960.In the beginning period 3000 liters milk procured from the vijapur region
which comprised of 11 villages and delivered to the AHMEDABAD MUNICIPLE CORPORATION
DAIRY. On 2-4-1963 SHREE MORARJIBHAI DESAI had inaugurated of dudhsagar dairy.
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
P E C C A H
R N O O H R
O G M O &
D I M P &
U N E A
S T
C E R I
T E C E
R
I R I
O I A V
N L I
N
G C
E
S
P a g e | 30
Phone No : 02762-253201
Website : www.dudhsagardairy.co.in
City : Mehsana
State : Gujarat
Pin : 384002
Sector :
Private Sector
P a g e | 31
LOCATION
DAIRY PLANT
(1) Dudhsagar Dairy (2) Dudhsagar Dairy (3) Vihar SCM PlnatVihar,
Post Box No. 1, Plot No. 26-D, Vijapur,
Mehsana 384 002. Sector 3, Dist. Gandhinagar
Gujarat State. IMT Manesar, Gujarat State.
Gurgaon,
Haryana State.
CHILLING CENTRES
(1) Vihar Chilling Centres, (2) Khe ralu Chilling Centre (3) Kadi Chilling Centre
Vijapur, Kheralu, Kadi,
Dist. Gandhinagar, Dist. Mehsana, Dist. Mehsana,
Gujarat State. Gujarat State. Gujarat State.
PRODUCT NAME
MILK
BUTTER
POWDER
Dudhsagar spray
GHEE
Sagar ghee
Dudhsagar ghee
Ice-cream
CATTLE FEED
Sagardan
Hyprodan
P a g e | 33
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.
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Milk Farmers
Chilling Center
Storage
Dispatch Federation
Distribution Channel
Consumer
P a g e | 36
1. The milk union identifies the societies whose milk collection is about 1400-1800 litres and
more per day for installing 2000 liters and more capacity bulk milk cooling units taking into
consideration of the likely acceptance of the dairy farmers for the shift in the system.
2. The union guides the society for purchase and installation of BMCU.
3. The union trains the secretary and other staff of the society in the operation and maintenance of
BMCU.
4. The society enters into an annual contract with the equipment supplying firm for maintenance
of BMCU.
5. The society insures the BMCU, provided the subsidy coverage is available.
6. The milk union explores the possibility to get subsidy from other agencies for purchase of
BMCU by the societies.
7. The union provides tie- up arrangement for the repayment of bank loan.
8. The union provides adequate compensation to the societies to meet the chilling cost of milk.
9. The union gives better price for good quality chilled milk supplied by the society.
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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.
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Address Of Unit:-
Banaskantha District co-operative milk
Producers union Ltd.
Banas Dairy
PB no -20, PALANPUR-385001
Contact No:-
Phone no: - (02742) 253881-85
Fax no: - 02742 252723
Corporate Address:-
WEB:-www.amul.com.
Registered Office:-
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.
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:
We hereby pledge severely unanimously to adhere the above commitment in all circumstances to
come.
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Objective of Unit:-
The objective of the Banaskantha District Co-operative milk Producers Union Ltd Palanpur are as
under:-
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.
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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 industries-
conferred 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.
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
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Selection of Location:-
There are some reasons for location selection which are given below:-
B OARD OF DIRECTOR
CHAIRMAN
MANAGING DIRECTOR
AGM A GMA GM DEPUTY DEPUTY MANA GER DEPUTY DEPUTY MANA GER CFP AM
MANAGER MANA GER MANAGERMA NA GER
P & E CC SO & RPO
QA FINANCE COMM ADM IN & HRD DH
FIVECENTERS
SA LES PURCHASE
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.
There are latest technologies, BANAS DAIRY imports technology and machine from well known places like,
ORANGABAD,
GERMANY,
ITALY,
DENMARK.
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Opportunities
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;
Opportunities for improvement in technology infrastructure such as packing, storage, and
transportation, additional value added processing are marketable areas for investment; and
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!
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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).
Technological factors include technological aspects such as R&D activity, automation,
technology incentives and the rate of technological change. They can determine barriers to
entry. Furthermore, technological shifts can affect costs, quality, and lead to innovation.
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
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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 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:
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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.
Amul Dairy
Vimal Dairy
Dudhsagar Dairy
X X
Mother Dairy
Banas Dairy
X X X
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.
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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.
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W R WS R WS R WS R WS R WS
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Another way of classifying industry industries is in a cyclical framework, that is, by how they react to
upswings and downswings in the economy. The general classifications in this framework are growth,
cyclical, defensive and cyclical-growth.
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.
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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.
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The major dominant economy features which are related to cement industry are given below.
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.
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.
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.
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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.
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An aspect of technical analysis that tries to predict the future movement of a stock based on past data.
Trend analysis is based on the idea that what has happened in the past gives traders an idea of what
will happen in the future.
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.
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.
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
% 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.
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Table 4.3 Trend Analysis of the Industry On the Basis of Total Expenditure
120%
115%
110%
100%
95%
90%
2011 2012 2013
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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.
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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
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1. Curre nt Ratio:
The current ratio establish a relationship between current assets and current liabilities
The objective of the current ratio is to measure the ability of the industry to meet its short term
financial solvency of the industry. In the other words to measure the margin of safety for short term
creditor. The ideal current ratio is 2:1. Which means every 1Rs. of current liability there has to be a
2Rs. of current assets.
Current Ratio
2.55
2.5
2.45
2.4
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
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Quick ratio establishes a relationship between quick asset and current liability
The objective of quick ration is to measure absolute liquidity by comparing quick assets with current
liability. The ration is calculated to know that whether the firm will be able to pay its current liability
immediately. Also it used to analyze the liquidity position of the industry in detail. The ideal quick
ratio is 0.5:1 which means every 1Rs. of current liabilities there has to be 0.5Rs of quick asset.
CURRENT LIABILITY
Quick Ratio
2.55
2.5
2.45
2.4
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.
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The gross profit ratio indicates how much of each sales dollar is available to meet expenses and
profits after merely paying for the goods that were sold.
Gross profit ratio (GP ratio) is the ratio of gross profit to net sales expressed as a percentage. It
expresses the relationship between gross profit and sales.
12
10
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.
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The net profit ratio is net profit expressed as a percentage of total sales. Net profit is taken
before tax and other indirect costs.
Essentially the net profit ratio tells us about how the company's profits relate to their sales. Different
industries have fundamentally different net profit ratios. The net profit ratio can tell us about the nature
of the industry the company is operating in as well as serving to compare past performances of a
company.
0
2011 2012 2013
Inte rpretation:
From the above chart, we interpret that the net profit ratio of the industry. In the year 2012-
2013 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%.
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The operating profit margin ratio indicates how much profit a company makes after paying for
variable costs of production such as wages, raw materials, etc. It is expressed as a percentage of
sales and shows the efficiency of a company controlling the costs and expenses associated with
business operations. Phrased more simply, it is the return achieved from standard operations and
does not include unique or one time transactions. Terms used to describe operating profit margin
ratios this includes operating margin, operating income margin, operating profit margin or return
on sales (ROS).
4
Operating Profit Ratio
3
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.
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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
0.7
0.6
0.5
0.4
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.
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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
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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.
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.
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Liter of Sale
Production milk per price
Non of milk per animal per annual Qt of per
Animal lactative lactative days day milk liter Amount
156,300 3,917,400
Sale male calves 17.00 4,859 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.
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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
Buffalo
8
Total 46.78
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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
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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
Porters five force model - Existing rivalry and bargaining power of buyer
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.
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