ABSTRACT

Manufacturing process is a very integral

part of industry. Every process is need to
developed and implement smoothly.
Every products quality and cost is
integrally depends upon the
manufacturing process.

Aarti Turkane
Master of Commerce

MANUFACTURING
PROCESS
(Dairy Product-Cheese)
Introduction
Indian dairying is emerging as an important growth leverage of the economy. For
sheer numbers, dairying here has no match in the world. The figures are simply mind
boggling. Milk production has come a long way over the years from a low volume
of 17 million tons in 1951 to 180 million tons in 2019. The Indian dairy market is
growing at an annual growth rate of 7% at current prices. More than 50% of the total
fluid milk produced in the country is consumed in the urban market. The reason for
the rise in consumption of the milk is that its demand is highly income elastic. The
dairy expenditure, particularly of value added products of the richest household are
ten times that of the poorest. This is in contrast with most other countries where rich
substitute milk with other sources of protein including meat and poultry. Further, the
domestic market for value added products like butter, cheese, ice cream, dairy
whiteners and spreads is galloping at 8 10% per year.
The future of Indian dairy industry as a sustaining enterprise in the national and
international market is promising and its growth potential is high. A few decades
ago, India was more of a ‘butter’ country. Butter finds place in the breakfast in many
urban homes. We could rarely find a cheese block somewhere in the house. Except
for the popular Indian variety of cottage cheese - Paneer,
India is not traditionally a ‘cheese nation’. Cheese was more or less kept for
sandwiches, or to create dishes that would go along as evening dishes or
accompaniments to cocktails.
Now, the mainstream use of cheese and cheese spreads has increased in the urban
mainstream. Cheese is used as cheese blocks, grated cheese and cheese spreads.
With the growing saturation of cheese consumption in the West and the encouraging
successes in other ‘non-cheese’ Asian countries like Japan and China; overseas
cheese producers are eyeing the Indian market for its huge promise. While a few
years ago Indians had access to only one type of basic cheese, several companies
have entered the foray and there are multiple cheese types that are available at the
stores.

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Industrial Profile
Being the world’s largest producer of milk, India has an enormous dairy market in which cheese
plays only a minor role.
The world’s primary cheese markets in Europe and North America are saturated, a situation that
is forcing suppliers to look elsewhere, such as to Japan and Russia, which are currently major
importers, and to developing markets like India. The Indian cheese market is presently worth
around US$237 million, but is expected to grow at roughly 15 to 20% annually in the coming
years. The Indian cheese market is expected to grow at a CAGR of nearly 18% between 2015 and
2020. Measured by sales, it is forecast to grow at a CAGR of 31% during the same period.

Estimated Market Share %

80
US$280 Million
60
40
60
20
25
0 10 5
Amul Britania Regional Imported US$237
Brand Brand Million

Cheese Market Growth in India

PARIPEX - INDIAN JOURNAL OF RESEARCH

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Research Methodology:-
Cheese contains a host of nutrients like calcium, protein, phosphorus, zinc, vitamin A and vitamin
B12. Calcium is one of the nutrients most likely to be lacking in the American diet. According to
government statistics, nine out of 10 women and six out of 10 men fall short of calcium
recommendations. The high-quality protein in cheese provides the body with essential building
blocks for strong muscles.
Is cheese is complete food it and proper mixture of nutrients it has many health benefits. It shall
be incorporate in daily food will improve the human health.
We have identified the, basic cheese manufacturing in our milk shade areas and studied the cheese
manufacturing process. The basic types of chees are as bellows:
Cheddar Cheese
Processed Cheese
Mozzarella cheese
Gouda Cheese
Ricotta Cheese
Indian is making highest Cheddar cheese which is going to convert in Processed Cheese.
Mozzarella is another popular variety basically using for Pizza huts and Dominos’ which is highly
nutritional. We have studied the Manufacturing process of Cheddar Cheese

Cheese Manufacturing Flow Diagram:

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Branding Theory:-
Brand is a term closely linked to a product or place’s image and reputation in that it “captures the
idea of reputation observed, reputation valued and reputation managed”
At its simplest, a brand is “a product or service or organization, considered in combination with
its name, its identity and its reputation”
Current cheese brands and its merits and Demerits

Company Brand Logo Merits Demerits

Name
AMUL 1.Tagline covers the region 1-
or Country Name.
(Amul-The Taste of India)
2.Attractive packaging with
delicious cheese photo
3. India’s Largest Cheese
Producer.
Britannia 1.Second largest Cheese 1. Customer searches the
manufacturer in India product with the product
2.Tagline related to the name. Name should be
better human health clearly highlighted on
3. Colour combination product.
highlighting the company
Logo.

Gowardhan Upcoming brand in market Product name should be

spreading over the India. clearly mentioned on the
brand.

Brand selection Conclusion:-

1. Brand name should cover the company name and product name.
2. Nation and human health should be highlighted in logo.

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Production Cost and Data Analysis:-
Product cost is mainly depends upon the following factors:

Raw Milk & Ingradients

Raw Material
Cost
Biproduct Recovery
(Whey)

Manufacturing
Manpower
Product Cost Cost Electricity
Refrigeration
etc

Manufacturer
Margine

Basic average cost:-

Basic Costs
Sr.No Raw Material Amount INR
1 Raw Material Cost/Kg of Milk 24.4
2 Manufacturing Cost/kg of Cheese 23
3 Manufacture Margin 10% on MRP 30

Details:-
QTY for 1kg
A)Raw Material cheese Rate (INR) Amount (INR)
Milk 10 24 240
Ingredient’s 0.2 50 10
Total 250
B)Manufacturing Cost
Particulars Amount (INR)
Manpower cost 12
Electricity 4
Maintenance 2
Refrigeration 4
Other 1
Total 23

C)Mfg. Margin
MRP of Products -310/kg 31

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Final Cost:-

QTY Rate Amount Cheese Whey

Particulars (Kg) (INR) (INR) Yield (Kg) Total
Raw Material 100 24 2400 9 91 100
Cheese Manufacturing
Cost - 23 207 - - -
Margin - 31 279
Total 2886

Rate Amount
QTY (Kg) Cost Recovery (INR) (INR) Total
Whey
Fat Powder Fat Powder Fat Powder
91 0.02275 5.46 400 55 9.1 300.3 309.4

Final Product Cheese Cost 2886

Cost = Cheese Whey Cost 309
mfg Cost-
Whey Cost Total 2577

Cost/kg of
Cheese (INR) 286

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Conclusion:-

1. In current market scenario of dairy industry, cheese is good marginable products.

2. Cheese is highly compatible products as per the manufacturing aspects.
3. Effective branding and proper marketing will enhance the sale of product.
4. Small manufacturers can start the business easily with indigenous methods, it will
improve the financial capability of human beings.

References:-
Research Paper:- A Strategic Analysis of Cheese and Cheese Products Market in India-ISSN-
2250-1991

Newsletter:- India - The next big cheese market- Dairy Times Report

Industry Analysis Project on Dairy etc.

-: End :-

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