CONSUMER SEGMENTATION OF CATTLE FEED IN

RELATION TO PREMIUM, POPULAR AND CLASSIC

PRODUCTS OF

GODREJ AGROVET LTD IN PUNJAB

Page 1
 TABLE OF CONTENTS
- PREFACE

- ACKNOWLEDGEMENT

- EXECUTIVE SUMMARY

CHAPTER -1 INTRODUCTION TO THE SUBJECT

1.1 THEORETICAL FOUNDATION

1.1.1 History of Indian Feed Industry

1.1.2 Introduction to Feed Industry

1.1.3 The live Stock Industry of India

1.1.4 Ingredients in Animal Feed

1.1.5 Uses of Compounded Feed

1.1.6 Future of Indian Feed Industry

CHAPTER – 2 INTRODUCTIONS TO THE ORGANIZATION

2.1 OVERVIEW OF INDUSTRY

2.1.1 History

2.1.2 Landmark

2.1.3 Godrej Mission

2.1.4 Godrej Values

2.2 PROFILE OF ORGANIZATION

2.3 PRODUCT RAGE OF THE COMPANY

CHAPTER-3 OBJECTIVES OF THE STUDY & RESEARCH METHODOLOGY

3.1 OBJECTIVES OF THE STUDY

3.2 SCOPE OF THE STUDY

3.3 RESEARCH METHODOLOGY

3.3.1 Sources of Data

3.3.2 Methodology & Presentation of Data

3.3.3 Tools & Techniques used for analysis

3.3.4 Analysis of Data

3.4 LIMITATIONS OF THE STUDY

CHAPTER-4 DATA PRESENTATION, ANALYSIS & INTERPRETATION

CHAPTER-5 FINDINGS & RECOMMENDATIONS

5.1 BIBLOGRAPHY

5.2 QUESTIONNARIES
 PREFACE

This project report is the result of 45 day training at Godrej Agrovet Ltd. Summer
training is an integral part of “Master in Business management” course and it aims at providing a
firsthand experience of industry to students. This practical experience helps the students to view
the real Business World closely.
I was really fortunate of getting an opportunity to pursue my Summer Training in
reputed, well established, fast growing and professionally managed organization like Godrej
Agrovet. My Project assigned, CUSTOMER SEGMENTATION OF CATTLE FEED IN
PUNJAB (NORTH INDIA) Required a lot of extensive study, as I did a lot of study of feed
industry at various Region of Punjab, I discussed some professors and students at Mata Gujri
College. It gave me a great deal of exposure and practical experience.
 ACKNOWLEDGEMENT

This acknowledgement is not merely a catalogue of names but an expression of a deep sense of
gratitude to all those who helped me in this project directly or indirectly. I owe a great deal to
VAMNICOM for laying the building blocks of logic and pragmatism in my life. This report, in a
way is a reflection of these values. The organizational trainee ship segment (OTS) provided me
with a unique opportunity of working with an organization. An individual cannot do project of
this scale. I take this opportunity to express my acknowledgement and deep sense of gratitude to
the individuals for rendering valuable assistance and gratitude to me. Their inputs have played a
vital role in success of this project.
I am grateful to Chandan Y. Birodkar, Sr. Executive-HR Godrej Agrovet Ltd. who provided
me an opportunity to undertake a project, which enabled me to interact with dealers, customers
of company to have better understanding, practical exposure of industry.
I express my sincere thanks to my project guide Dr. Sanjay Toke, DGM- Product
Management (Animal Feed) Godrej Agrovet Ltd , for his generous support, constant direction
and mentoring at all stages of training.
I am really grateful to Mukul Bhartiya NCM- Aditya Birla Retail Ltd. (Faculty Guide) for
his guidance in making final report.
I am also indebted to Dr. A.Y. Rajendra at Banglore who was a real source of help and
assistance to me during the course of project.
I am also thankful to Mr. M.V. Anand Manager-Sales at PUNJAB who helped me in finding
the markets for Godrej feed.
I am grateful to Dr. Kondal Reddy- LPT Department, Dr. Nalini Kumari, Associate
Professor Naga Laxmi- Nutrition Department at Veterinary College in Hyderabad who give
me some guidelines about cattle feed composition, various brand of cattle feed available in
Hyderabad.
I am also thankful to Mr. Sudhakar (Bangalore), Mr. Rajesh (Nizamabad-AP), Mr.
Nagabhusanam (Adhilabad-AP) who helped me in collecting information for my project.s
I take this opportunity to thank all Farmers, Dealers, milk collection customers who spared their
precious time to provide me with valuable inputs for project without which it would have not
been possible.
Last but not the least; I would also like to thank my family and friends especially Suka Dev and Rajesh
for their continuous support.
I firmly believe that there is always a scope of improvement. I welcome any suggestions for
Further enriching the quality of this report.
 EXECUTIVE SUMMARY
The object of this management training of marketing imparted is to provide us an
insight into the methods, both culture and the ground realities of an industry. I undertook my
training at the Godrej Agrovet Ltd. for a period of 6-7 weeks. I was allotted the duty to survey
rural area in order to know farmers behavior towards different feed brands. And I went to
Dealer’s shop, Distributers and milk collection centers for the collection of information required
for the analysis of the given work. This report is the reflection of what I have assimilated during
the training period at Godrej Agrovet. I have studied about all the marketing aspects and all other
expenses of the company. The first few pages talk about the introduction of the subject and also
of the organization. This is followed by literature review followed by the objectives of the study
and research methodology. The last part consists of findings, Recommendations, and
bibliography.
The objectives of the study which I undertook in Godrej Agrovet Ltd. were to know
the market value of Godrej feed and its competitors. One of my objectives was to study the
buying behavior of farmers like before purchase behavior and after purchase behavior, for this I
have made structure questionnaire and interpretation for the same has been done and also in
order to make it more effective I have used tables, pie charts, and bar charts. Another objective
of my study was to study the actual results given by different feeds by having a comparison
study of quantity of milk given by cattle’s, for this I have made structure questionnaire and
interpretation for the same has been done and also in order to make it more effective I have used
tables and bar charts. Another objective was to study the perception of dairy farmer that how
they perceive different feed brands when they look of at price and other services, for obtaining
the information I went to various farmers personally and now I am able to know about views and
their expectations. I found No. of cattle feed brands in the market which are giving competition
to Agrovet’s products. I also found that there are some complaints about Godrej feed by the
consumer and same has to be looked upon. I also found that consumer has a good perception
toward Local feed and some other brands than Godrej and it is fulfilling their expectations. As
from my all study, I have concluded that Godrej feed has not capture as such market as in other
cities or states. Instead of Godrej has got first place in Indian feed industry, but in the area a very
few people are aware about Godrej feed.
 According to me from various reasons, the biggest reason of non-awareness about
the product is less manpower for marketing and less advertisement of the product. Other brands
that is more preferable than Godrej due to good supply chain, good advertisement strategies used
by them. According to me Godrej should spend a lot of money in order to create a good brand
image and awareness of the product to consumer. Godrej can also think about some good
marketing strategies that can implement in the rural area. As we come to know that some farmers
who have visited to Godrej Agrovet are very impressed by services and various features provided
to farmers. I think the best place for Godrej Agrovet in Chittoor should be in Palamner area
which is 30 Km. far from Chittoor instead of in Chittoor area. People are expecting more good
results from Godrej feed. Overall I found there is no doubt with the quality of Godrej feed users
except some bad stock and looking for a good and loyal relation with the company. It has been in
some cases that agents are not fully satisfied with whatever gets from the company, in monetary
terms or in any other forms of non financial incentives. More emphasis is being given to the
production side in the company rather than to marketing side though marketing and sales
activities are responsible for earning revenue for the company. Less emphasis is being given on
marketing research, which provides the company with the information regarding the market & its
dynamics. Product promotion is an area which required to be geared up. The study revealed that
marketing is the area which seems to be neglected because the company products were in great
demand.
However the Scenario is changing, which makes it necessary for the company to
establish a full-fledged marketing department. The company should change its stance from
production oriented to marketing oriented. Hence the company may concentrate on direct sales
marketing through personal selling or marketing representative follow up with industrial
consumers. The company should develop a marketing information system, at present through its
depot managers and existing agents further with the help of personal selling staff. The company
is advised to formulate a promotion mix keeping in mind a changing scenario of market. To
begin with, the company may advertise the product and the company brand in industrial journals
like “Indian Feed” & in future introduce sales promotion through additional agents and personal
selling staff which would constitute a proper mix. I hope that my experience at Godrej will not
only help me in my future in marketing field but also in my current studies.
 CHAPTER1

INTRODUCTION TO SUBJECT

I.I THEROTICAL FOUNDATION

1.1.1 HISTORY OF INDIAN FEED INDUSTRY

The Indian feed industry is about 35 years old. It is mainly restricted to dairy and poultry feed
manufacturing; the beef and pork industry is almost non-existent in our country. The quality
standards of Indian feeds are high and up to international levels. Raw materials for feed are
adequately available in India. The industry's production is about 3.0 million tonnes, which
represents only 5 percent of the total potential, and feed exports are not very high. The feed
industry has modern computerized plants and the latest equipment for analytical procedures and
least-cost ration formulation, and it employs the latest manufacturing technology. In India, most
research work on animal feeds is practical and focuses on the use of by-products, the upgrading
of ingredients and the enhancing of productivity. The country has entered into a period of
liberalization and this is bound to influence the Livestock industry. The per capita consumption
of milk, eggs and broiler meat will grow. The Indian feed industry is undergoing a very exciting
phase of growth for the next decade.

1.1.2 INTRODUCTION TO FEED INDUSTRY

Feed manufacturing on a commercial and scientific basis started around 1965 with the setting up
of medium-sized feed plants in northern and western India. Feed was produced mainly to cater to
the needs of dairy cattle. The poultry sector was not developed at that time and was restricted to
backyard production, with the kept mainly for the production of eggs. Today, the Indian feed
industry is worth approximately Rs 45 billion that is about US$1 billion.

1.1.3 THE LIVESTOCK INDUSTRY OF INDIA

India's animal wealth is quite large in terms of its populations of cattle, poultry, sheep and
goats, camels, horses and pets. Recently, aquaculture has also been growing in
importance in India.
Dairy cattle
Worldwide, India is number one in milk production, at 78.0 million tons per annum, and the
dairy industry is spread across the whole country. India has one of the largest populations of
cattle and buffalo in the world. In a total of 288 million head, there are 10 million crossbred cows,
15 million good milk cows of local varieties and 36 million buffaloes of good milk
Varieties. The remainder of the cattle population is of a non-descript variety and a sizeable
proportion consists of bullocks.
Farms are located on the outskirts of cities and within cities. Almost all villages have a number
of cattle, but there are only a few organized dairy farms. In India, dairy is not so much an
industry as a smallholder farming activity. Growth in the milk sector has occurred mainly
through cooperative efforts. Cooperatives started by supplying milk collection centre, where
milk was collected from villagers in quantities as small as 1 liter, and gradually started to provide
other services to farmers, including education, artificial insemination, veterinary health support
and feeding. The small farmers became prosperous, loan facilities were made available through
banks, and member farmers started to share the profits from cooperatives. Cooperatives also set
up their own modern computerized feed plants. They have modern milk processing plants from
which they produce and market pasteurized milk, butter, butter oil, chocolate, ice-cream and
milk sweets, Which are very popular with Indian consumers? Today, the feed production from
cooperatives is about 0.6 million tons per year.
The National Dairy Development Board (NDDB), which has excellent facilities
for research on breeding, nutrition and health care, has played a pivotal role in setting up
cooperatives. Without NDDB and several of the existing dairy cooperatives, the milk sector in
India would have suffered. The dairy industry in India is expected to grow, but growth will be
restricted to individual small farmers. It is unlikely that India will see the advent of large,
organized dairy farming in the near future.
1.1.4 INGREDIENTS IN ANIMAL FEEDS

India is currently self-sufficient in livestock feeds and does not depend on imports. Instead, the
country exports large quantities of solvent extracted meals, which are a major source of foreign
exchange earnings.
Cereals and grains Maize, sorghum and bajra (a type of millet) are commonly used in
animal feeds. Wheat and rice are mainly retained for human consumption. In cattle feed, in
addition to these meals, others such as cotton seed, Groundnut seed and copra are used as
premium ingredients.
 TABLE-1

Share of Agriculture and Livestock Sector in GDP

(At current prices in Rs. Crore)

GDP (Agriculture) GDP (Livestock Sector)
Year GDP (Total)
Rs. % Share Rs. % Share

2010-11 1,925,017 408,932 21.24 104,745 5.44

2011-12 2,097,726 442,464 21.09 109,254 5.21

2012-13 2,261,415 425,521 18.82 114,872 5.08

2013-14 2,538,171 483,030 19.03 118,316 4.66

2014-15 2,877,706 501,415 17.42 136,108 4.73

2015-16 3,275,670 557,118 17.01 143,208 4.37

2016-17 3,790,063 634,519 16.74 165,407 4.36

20017-18 4,320,892 718,278 16.62 189,990 4.40

Source : National Accounts Statistics-2018; Central Statistical Organisation;GOI

 TABLE-2

Livestock Population in India by Species

(In Million Numbers)
Species 1951 1956 1961 1966 1972 1977 1982 1987 1992 1997 2003
Cattle 155.3 158.7 175.6 176.2 178.3 180.0 192.5 199.7 204.6 198.9 185.2
Adult
Female 54.4 47.3 51.0 51.8 53.4 54.6 59.2 62.1 64.4 64.4 64.5
Cattle
Buffalo 43.4 44.9 51.2 53.0 57.4 62.0 69.8 76.0 84.2 89.9 97.9
Adult
Female 21.0 21.7 24.3 25.4 28.6 31.3 32.5 39.1 43.8 46.8 51.0
Buffalo
Total
198.7 203.6 226.8 229.2 235.7 242.0 262.2 275.7 288.8 288.8 283.1
Bovines
Sheep 39.1 39.3 40.2 42.4 40.0 41.0 48.8 45.7 50.8 57.5 61.5
Goat 47.2 55.4 60.9 64.6 67.5 75.6 95.3 110.2 115.3 122.7 124.4
Horses and
1.5 1.5 1.3 1.1 0.9 0.9 0.9 0.8 0.8 0.8 0.8
Ponies
Camels 0.6 0.8 0.9 1.0 1.1 1.1 1.1 1.0 1.0 0.9 0.6
Pigs 4.4 4.9 5.2 5.0 6.9 7.6 10.1 10.6 12.8 13.3 13.5
Mules 0.1 0.0 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2
Donkeys 1.3 1.1 1.1 1.1 1.0 1.0 1.0 1.0 1.0 0.9 0.7
Total
292.9 306.6 336.5 344.5 353.2 369.4 419.6 445.2 470.9 485.4 485.0
Livestock
 TABLE-3
Estimates of Milk Production – State wise ( tones)

State 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18

All India 84406 86159 88082 92484 97066 100869 104840 108463
PUNJAB 5814 6584 6959 7257 7624 7939 8925 9570
Bihar ** 2664 2869 3180 4743 5060 5450 5783 5934
8386
Gujrat 5862 6089 6421 6745 6960 7533 7911

5745
Haryana 4978 5124 5221 5222 5299 5367 5442

4538
Karnataka 4797 4539 3857 3917 4022 4124 4244

2441
Kerala 2718 2419 2111 2025 2063 2119 2253

6855
Madhya Pradesh 5283 5343 5388 5506 6283 6375 6572

7455
Maharashtra 6094 6238 6379 6567 6769 6978 7210

9387
Andhra Pradesh 7932 8173 8391 8554 8909 9168 9282

9491
Rajasthan 7758 7789 8054 8310 8713 9375 9536

5673
Tamil Nadu 4988 4622 4752 4784 5474 5560 5586

Uttar Pradesh 14648 15288 15943 16512 17356 18095 18861 19537

4176
West Bengal 3515 3600 3686 3790 3891 3982 4087
TABLE-4

Milk Production in India

Per Capita Availibilty
Year Production (Million Tonnes)
(gms/day)

2010-11 84.4 225

2011-12 86.2 230

2012-13 88.1 231

2013-14 92.5 233

2014-15 97.1 241

2015-16 100.9 246

2016-17 104.8 252

2017-2018 108.5 258

Source: Department of Animal Husbandry, Dairying & Fisheries, Ministry of

Agriculture, GoI
1.1.5 USES OF COMPOUNDED FEED

In India, the term "compound feed" refers to feed that is nutritionally balanced and has been
manufactured using the facilities of an analytical laboratory and under the supervision of
nutritionists. There are also a large number of small-scale feed mixers who produce feed for local
consumption. Such feed is termed "self-mixed feed" or "home-mixed feed".
Cattle feed Cattle feeding practices are very traditional. Farmers choose their own ingredients
and prepare their own formulations, believing that by these means they are able to pay more
individual attention to their cattle. The productivity of the cattle is limited because of their poor
genetic make-up, so high-quality compound feed (industry feed) may not necessarily generate a
significant improvement in productivity and this has hampered growth of the cattle feed industry
because most farmers are reluctant to use compound feed fully. Instead they compromise by
using such feed in proportions of 5 to 60 percent, making up the balance with their own
formulations. It is only in the case of highly productive animals that compound feed has been
able to show its real potential and the importance of technology has been demonstrated.

The share of compound cattle feed manufactured by the industry, in relation to the overall
potential, is low for the following reasons:

The cattle population is fragmented and spread over large parts of the country. Farmers' low
level of education and strong traditional beliefs mean that there is generally little awareness of
compound cattle feed.

More than 50 percent of the country's total milk production comes from a very large number
of low-yielding cows and buffaloes. A further 25 percent of milk production comes from
buffaloes and only the remaining 25 percent of the total is produced by crossbred and improved
cows.

Industrially manufactured compound cattle feed has proved its value for crossbred cows and
buffaloes but not for low-yielding cattle because of their genetic limitations. Home-mixed feed is
very frequently used for buffaloes and low-yielding cattle.
1.1.7 SCOPE OF INDIAN FEED INDUSTRY

The Indian economy is growing at the rate of 6 to 8 percent per annum. The livestock
industry in India is the second largest contributor to gross domestic product (GDP), after
agriculture, and accounts for 9 percent of the total. Consumption is likely to increase as follows:
per capita milk from 240 to 450 g per year; per capita eggs from 40 to 100 per year; and per
capita broiler meat from 1000 to 2000 g per year. A major change is occurring in India on the
economic front. The country has adopted a model that lays midway between liberal and public
sector production, but growth has been affected by the poor performance of most of the public
sector units, rising government costs and fiscal deficit, and the economy has suffered. A process
of liberalization was set in motion by the government and has been implemented for the last
eight to ten years. This has caused India to open up and invite investment from multinationals,
liberalize imports, reduce government expenditure and remove public sector businesses. It also
means that the days of nationalization, unnecessary government controls and restrictions will
soon be over thanks to progress in the country's economy. India has entered into an agreement
with its trade partners under the World Trade Organization (WTO). The changes brought about
by the liberalization process will be slow but certain. The government is opening up imports in a
phased manner, and it is expected that this process will be completed by April 2003. In the
meantime, about 930 items, including agricultural products, will be open for import under open
general license from April 2001, making it possible to import dressed chicken, milk and milk
products. Various livestock industry associations have taken issue with such imports in an
attempt to protect their members. If the livestock industry is affected, the feed industry will also
be affected.
The Government of India has raised the tariff on all poultry and poultry products
from 35 percent to the WTO boundary level of 100 percent. It therefore appears that there will
be a level playing field. In view of the expected rise in per capita consumption of chicken meat,
eggs and milk, livestock production and productivity will grow. The dairy industry, which is
cooperative based, is growing with the increased capacities of milk processing units. The
population of crossbred cattle and buffaloes is also growing. Milk is very popular in India. The
next decade will see significant changes in restructuring, mergers, acquisitions, amalgamations,
joint ventures, diversification, integration and efficient service chains, ecommerce and use of the
latest information technology in global tenders, trading, export/import and other commercial
activities. At the root of all these developments will be the scientific development of feed
manufacturing technology. The Indian feed industry will increasingly use biotechnology, more
scientific formulations, new molecules and natural and herbal products to improve animal
productivity. Indian agriculture will also use biotechnology and genetically modified organisms
(GMOs) to support the feed industry, which is entering a very exciting phase of growth for the
next decade.
 CHAPTER-2

INTRODUCTION TO ORGANIZIATION

2.1 OVERVIEW OF THE INDUSTRY

2.1.1 History
The Company celebrated its centenary in 1997. In 1897 a young man named
Ardeshir Godrej gave up law and turned to lock making. Ardeshir went on to make safes and
security equipment of the highest order, and then stunned the world by creating toilet soap from
vegetable oil. His brother Pirojsha Godrej carried Ardeshir's dream forward, leading Godrej
towards becoming a vibrant, multi-business enterprise. Pirojsha laid the foundation for the
sprawling industrial garden township (ISO 14001-certified) now called Pirojshanagar in the
suburbs of Mumbai. Godrej touches the lives of millions of Indians every day. To them, it is a
symbol of enduring ideals in a changing world. Time and again, with the launch of every new
product, Ardeshir Godrej changed perceptions in the Industry by adding exciting new
dimensions. Be it the manufacture of the finest range of security equipment or soap from
vegetable oils, the world was thrilled and stunned too. His dream had become a huge movement,
which was carried forward by another just as capable Godrej. The man, who did so, was
Ardeshir Godrej's own brother Pirojsha Godrej. He laid the foundation of the Godrej Empire.

2.1.2 LANDMARK

Incorporation
Established in 1897, the Company was incorporated with limited liability on March 3, 1932,
under the Indian Companies Act, 1913.

The Beginning
The beginning of the Godrej Group can be traced to India's freedom struggle. Its founder,
Ardershir Godrej, a lawyer by profession and a staunch nationalist, believed that India could
attain freedom only by being self-reliant. In doing so, India would overcome economic
degradation.
The Godrej Name
The Godrej Name displaced well-established foreign brands from the Indian market. The name
'Godrej' engraved into the shiny metal of the Godrej Locks came to be known as a symbol of
self-reliance, trust-worthiness, assertiveness and progressiveness for a new generation of Indians.

1971 Started as Animal Feeds division of Godrej Industries Ltd.

1984 Diversified into Agricultural Inputs

1992 Godrej Agrovet born as a separate corporate entity expanded into

Chemical Pesticides.

1993 Acquired Unicorn Biotech a Tissue Culture business.

1995 Foray into branded chicken- Real Good Chicken.

1997 Acquired Oil Palm Plantation business of Godrej Industries Ltd.

1999 Acquired India Poultry Farm breeding and hatchery business to

Become an integrated player.

2001 Acquired Hindustan Unilever Feed business - GOLDMOHUR

FOODS & FEEDS LTD. (Now a 100% subsidiary of Godrej Agrovet Limited)
2.1.3 GODREJ MISSION
Our Mission is to operate in existing and new businesses, which capitalize on the Godrej
brand and our corporate image of reliability and integrity. Our objective is to delight our
customer both in India and abroad.

We shall achieve this objective through continuous improvement in quality, cost and
customer service. We shall strive for excellence by nurturing, developing and empowering our
employees and suppliers.

We shall encourage an open atmosphere, conducive to learning and teamwork.

2.1.4 GODREJ VALUES

Commitment to Quality

Customer Orientation

Dedication & Commitment

Discipline

Honesty & Integrity

Openness & Transparency

Respect/Care & Concern for People

Trust
2.2 PROFILE OF THE COMPANY

Godrej Agrovet was formerly a division of Godrej Soaps Limited. It was set up as a
separate company with focus on the Agri-sector. Over the years, the company has developed and
nurtured a close relationship with farmers. Providing them with innovative Products as well as
educating them on world-class farming practices. Together with its subsidiaries Goldmohur
Foods and Feeds Limited and Golden Feed Products Limited , Godrej Agrovet has revenues
close to Rs 1000 Crores (US $ 250 million -FY 2007). The activities of the company are vast:
Compound Animal feeds, Agricultural Inputs, Integrated Poultry Business, Oil Palm Plantations,
Plant Biotech, Retailing of Fresh Farm Produce in urban areas, and rural retailing of a wide range
of products including Agricultural inputs.
Godrej Agrovet acquired Goldmohur Foods and Feeds Limited from Hindustan Lever, a
Unilever subsidiary in India, in 2001.Goldmohur Foods and Feeds Limited enjoys strong brand
equity due to its poultry and cattle feed brands. Goldmohur Foods and Feeds Limited have a
state-of-the-art R&D centre in Bangalore named 'ANIC' (Animal Nutrition Innovation
Centre). This centre is devoted to development of innovative animal feed products. Today,
Godrej Agrovet together with its subsidiaries has manufacturing facilities spread over 40
strategic locations and a network of over 10,000 distributors, dealers and C&F agents. In its
journey of growth, Godrej Agrovet has set new standards of corporate performance, reliably
delivering quality products and services to all its customers at competitive prices.

GLOBAL FORAYS: Having successfully grown to be the leader in many segments, Godrej
Agrovet feels confident to take on global competition and has started making its presence felt in
the international arena too. A joint venture with ACI Group of Bangladesh for poultry and feed
operations in Bangladesh, and acquisition of controlling stake in Al-Rahaba, which runs
broiler farms in UAE exemplify this confidence.
Board of Directors

 Nadir B. Godrej Chairman

 Jamshyd N. Godrej
 Ardeshir B. Godrej
 Balram Singh Yadav Executive Director & President
 Dr. Sudheer L. Anaokar
 Vijay M. Crishna
 Tanya A. Dubash
 Kavas N. Petigara
 Amit B. Choudhury- additional Director
 Nisaba A. Godrej

Strategic Tie-Ups:

Strategic tie-ups and acquisitions have been a way of life at Godrej Agrovet Limited.
Meaningful alliances and useful acquisitions have been providing impetus to its growth. The
acquisition of business has been in different segments ranging from Goldmohur Foods and Feeds
(Animal Feed), to India Poultry Farm (Poultry), Krithika (Oil Palm Plantations), and
Higashimaru (Marketing of Shrimp Feed). Strategic investments have been made in business,
which have a strategic fit and which complement our business e.g. Creamline (Diary), Polchem
(Bio-technology).
2.5 PRODUCT RANGE OF THE GODREJ AGROVET

ANIMAL FEED DIVISION

Godrej Agrovet has a rich experience of over 3 decades in the business of Animal Feeds.
Starting from humble beginnings of a single feed mill in Mumbai, it has grown into the largest
producer of commercial Animal Feed in India, with a strong presence in Dairy Feed, Aqua Feed
and Poultry Feed sectors. Its production facilities are spread over 40 locations across the country.
Despite the vast geographical and cultural diversity of India, Godrej Agrovet has managed to
develop quality feeds appreciated by farmers across the country. This can only be attributed to its
strong grass root level understanding of India. Godrej Agrovet's success in the livestock sector is
based on a single guiding principle what’s good for the consumer is good for the business. A
great example of this philosophy in action is Manthan - a highly creative and effective demand
creation model that guides and provides customized solutions to help cattle farmers increase milk
output and also market the end produce. Such successful initiatives have not only benefited the
farmers, but have also made Godrej Agrovet the leader in this business.

Key Highlights

 No. 1 in cattle feed

 1st to market poultry feed in crumb form

 1st to market poultry feed in pellet form

 No. 1 in commercial broiler feed

 State-of-the-art R&D centre 'ANIC'

 Strong brand equity for poultry feed brands

Segmenting Rural Markets:-
For the purpose of targeting decisions, rural markets can be segmented multiple
dimensions such as geographic ( north, west, south, east), demography ( age, gender, occupation,
and so users status), psychographic ( social class, life style) and behavioral (Benefit sought,
usage occasions, user status). One useful segmentation scheme for rural areas is the
socioeconomic classified (SEC) using the occupation of the chief wage earner and the type of
house that they live. This characteristic of these four classes have been described by Kashyap
and Raut as follows:-
SEC R1 Landlord farmers, educated, exposed to urban environment, their child studying in
nearby town; exhibit lifestyle closer to urban areas, adopted modern technology; owns
consumer-durable products such as tractor, refrigerator, and two-wheeler.
SEC R2 Rich farmer, with about 5 acres of land; may not be educated, but want their children to
be educated; aspires to have high social status; own some of the consumer-durable products like
television, tractor and two-wheeler.
SEC R3 Landholding size between 2 and 5 acres; children studying in village school;
conservative in technology adoption; own some consumer-durable products.
SEC R4 Agricultural labor has a low income; subsidized food grain and other products
distributed through the public-distribution system.
SEC classification developed for rural areas is useful to classify the consumer and to specify the
target segment. Another useful method of segmentation of 459 districts in India based on 42
socioeconomics indicators using various data sources. MICA rural rating are based on linear
combination of six variables, namely, the total number of cultivators, total cropped area, total
irrigated area, fertilizer consumption, bank credit, and value of agricultural output. Based on a
detailed analysis of data, the index classifies districts based on development index point. This
approach provides a useful basis for marketers to analyze and choose geographical market to
focus on.
 CHAPTER-3

RESEARCH METHODOLOGY

3.1 OBJECTIVES

 To know the market value of Godrej feed and its competitors.

 To study the buying behavior of dairy farmers like before purchase behavior and after
purchase behavior.
 To study the actual results given by different feeds by having a comparison study of
quantity of milk given by cattle’s.

3.2 SCOPE OF THE STUDY

The scope of study was not limited up to one FEED Industry but it also covers the survey of
the sample that represents the whole population. It is done in order to know the customers
awareness of feed Industry.

3.3 RESEARCH METHODOLGY

3.3.1 SOURCES OF DATA

Primary data collection-
 Farmers
 Dealers/ Distributers
 Milk Collection Centers

ii) Secondary data:-

 AP Dairy Development Cooperative Federation
 Veterinary Journals
 Govt. Publications
  Magazines
 Websites

3.3.2 SAMPLING AREA

Sample is taken from 4 Districts of PUNJAB.

• Mohali
• Ropar
• Ludhiana
• Fatehgarh sahib

3.3.3 SAMPLE PLAN

 SAMPLE SIZE: A sample of minimum respondents will be selected from various areas
of PUNJAB. An effort has been made to select respondents evenly. The survey is carried
out 171 Samples.
Farmers- 107
Dealers/Distributers- 42
Milk Collection Centers- 22

 SAMPLING UNIT: - It indicates who is to be surveyed. The researcher must define the
target population that will be sampled. In this project sampling unit is all the farmers,
dairy farmers, feed buyers, etc of PUNJAB.

 SAMPLING TECHNIQUE: For the purpose of research random sampling is being used.
Randomly I catch the different people from different areas of different districts of
PUNJAB.
 It was difficult to get questionnaire filled by a farmer so I asked them
indirectly without a questionnaire and later filled that. The entire respondents are chosen
randomly.

3.3.4 METHODOLOGY & PRESENTATION OF DATA

The data so collected is than coded in the Excel tables to make the things presentable in
more effective. Diagrams and Bar charts, Pie charts which helps me out in easy and effective
presentation and hence results are being obtained.

3.4 LIMITATIONS OF STUDY

Carrying the survey was a general learning experience for me but i also faced
some problems, which are listed here:

 First 5-6 days I faced Language problem because in the villages farmers use typical hindi.

 It was difficult to get questionnaire filled by a farmer so I asked them indirectly without a
questionnaire and later filled that.

 The market of Godrej Agrovet is too vast and it is not possible to cover each and every
dealer/Distributers, and Milk collection centers in the available short span of time.

 Generally the respondents were busy in their work and were not interested in responding
rightly.

 Respondents were reluctant to discover complete and correct information about

themselves and their organization.

 Most respondents were not maintaining proper records of their feed consumption, so they
were unable to provide exact information.
 CHAPTER-4
DATA ANALYSIS & INTERPRETATIONS

4.1 ANALYSIS AND INTERPRETATION OF SURVEY (FARMER)

4.1.1 Farmer Distribution Based on Age wise:-

Category(Age) No. of Respondent

20-30 9

30-40 36

40-50 32

More than 50 yrs 27

 During the survey I analyzed Most of the Farmers were in the age of 30-50 yrs which is
65% of the total farmers. The reason for that because in 30-50 yrs of farmers were giving
good response for my survey. Above 50yrs were not showing the interest.
4.1.2 Cattle Head Distribution

 From my analysis 28% cow of total cattle were in Mohali area only where I hardly found
5-6 buffaloes, and rest other districts I found mix combination of cattle but as farmers
think buffaloes give more milk than to cow so they buy more buffaloes compare to cow.
4.1.3 Distribution of farmers based on Their Livelihood sources:-

 Above Bar graph shows 64% farmers were Agri-Dairy farmers and only 5% farmers
were depend on only Dairy 27%Farmers depend on Agriculture but they earns from
cattle’s milk as side business. Only 4% farmers were having poultry, horti-orchards.
4.1.4 Types of cattle Feed (Pellets/mash) using by Farmers

 Most of the farmers are using cattle feed in the range of 10-20 Rs/kg. Some small and
poor farmers who do not believe in concentrate feed uses small quantity and lesser price
of feed.
4.1.5 Average Purchase of Compound (Pellets/ mash) Cattle Feed Bags
/Month

 Most of the farmers uses only 2-3 bags of compound feed which is depend on no. of
cattle feed. Generally they give 500-600grm to cow and 600-800 gram to buffalo per day.
Some big dairy farmers are using 7-9 bags/month or more than 10 bags/month uses twice
a day of cattle feed.
4.1.6 Feeding Schedule for concentrate feed

 As bar graph shows most of the farmers use concentrate feed once a day because farmers
think that more concentrate feed generate heat in cattle’s body. Those who use twice a
day they expect more milk from cattle. And non user farmers are poor farmers and who
don’t believe in concentrate feeding.
4.1.8 Farmers Distribution based on age wise in Ludhiana and Fatehgarh
towards Godrej- Agrovet Feed

 Non user of the Godrej feed have some major reasons that keep away farmers from
Godrej feed like feed is less soluble in water and high price of the feed than to others.
Some of farmers were showing loyalty towards the other brand feed. Most of the users
are 30-50 yrs. Age group.
 4.2 ANALYSIS AND INTERPRETATION OF SURVEY (DEALERS)

4.2.1 Nature of Dealers:-

 Above 4.2.1 pie chart is showing that Most of the Dealers are exclusive in nature, which
shows loyalty towards the company product and it also shows scope for new feed product
which give high margin to the dealers.
4.2.2 Premium Cattle feed Price Range (Pellets/mash)

 91% dealers are selling feed in the range of 500-700 Rs. Generally MRP for Pellets/mash
per bags are 430-540 Rs. Dealers does not buy high priced feed due to less margin
4.2.3 Margin of the Dealers

 Most of the dealers are getting margin in the range of 60-80 Rs. Some of Dealers are
getting 100 Rs or more than 100 Rs per bag. In Ludhiana and Fatehgarh District Godrej
dealers are getting 80-100 Rs. Which means farmers are getting feed with higher price
which is not good for a company, and farmers are not getting any discount or promotional
offer from company side?
4.2.9 Farmer’s expectation from Dealers

 Most of the Farmers are very particular about the feed quality and they expect from the
dealers a quality feed which can increase the milk production.
4.2.10 Dealer’s Expectation from new product and company:-

 Most of the Dealers expect a good quality feed product with good margin. As some of
dealers are facing shortage of feed so they expect sufficient supply of the feed.
4.3 ANALYSIS AND INTERPRETATION OF SURVEY (MILK
COLLECTION CENTERS)
4.3.1 No. of Subscribers at milk collection centers:-

 As most of the Milk collection centers have 40-60 no. of Farmers as subscribers.
 Milk collection man is getting average 160 liters milk per day.
 As milk collection man is getting 1-1.5 Rs margin from cooperative dairies. He gives the
price 24-30 Rs per liter for milk to farmers on the basis of fat content.
4.3.2 Payment to Farmers:-

 Most of the farmers are getting their payment biweekly. So they does not feel any
shortage of money. If farmers don’t have any shortage of money they can easily buy the
feed products.
4.3.3 Whether milk collection centers are selling cattle feed or not?

 Most of the milk collection centers does not buy any cattle feed for the farmers. Because
most of farmers buy cattle feed direct from market. But they are agree with some big
company feed if they gets good margin and they can sell to farmers.
4.3.4 Promotational tools are using for competition with the other milk
collection
Center in the same village:-

 Most of the milk collection men say they gives timely payment to the farmers.
 Some of them provide loan facility, veterinary services under cooperative milk dairy.
4.3.5 Milk collection center’s expectation from new feed product and company

 Most of the milk collection centers expect good quality feed product and they expect
good margin if they sell their feed product.
 71% milk collection centers expect good quality with better margin of the feed.
 CHAPTER-5

FINDINGS & RECOMMENDATIONS

Findings

• Farmers look for specificity in feed. Ex.- customized feed for buffalo, cows etc
• A few Farmers are observed to highly loyal towards other brands like Nandi, SKM.
• I found 30-50 yrs age group farmers like Godrej feed because they are much experienced
about the cattle feed.
• As most of the farmers are using 10-20 Rs range of cattle feed so that price should not be
exceeded.
• As most of the farmers are using concentrate feed once in a day
• Godrej feed has got market share of 9% of total cattle feed consumption in PUNJAB, the
consumption pattern of Godrej Agrovet is not uniformly distributed in PUNJAB.
• Godrej feed has good market penetration in Ludhiana and Fatehgarh Districts as
compared to other districts.
• Dealers are the major source of information and purchasing force behind the Farmers.
• Some of Farmers are tied up with the milk Cooperative centers (Dairy) and the dairy are
providing to farmers cattle feed @ 10-15 Rs/kg which is available 18-22 Rs/kg in the
market.
• Dealers are stocking the premium cattle feed in the price range of 500-600 Rs
• 41% of the total milk collection centers are having 40-60 no. of farmers as subscribers.
• The farmers are not facing any shortage of money because they are getting payment
biweekly at milk collection centers.
• In Mohali 4 km far from Balongi village there is a Verka dairy project going to open. It’s
a very big project in Mohali which is 700 crore rupees’ project.
• As Godrej dealers are getting margin of 80-100 Rs per bag which is higher than to other
brand feed due to this farmers are getting feed at higher prices.
• There is a shortage of feed in most of the areas due to lesser availability of outlets.
• Virgin market for Premium cattle feed since they are using traditional cattle feed like
Ground nut oil cake, Cotton oil cake, Rice bran, Wheat bran, Dalwaste.
Recommendations

Promotional activities should be carried out throughout the year in one form or
the other to attract the customers.
Varieties and Range of the products should be increased so that company can
capture the age group of 20-35 yrs. Farmers.
Awareness programs and other extension activities should be organized by
Godrej Agrovet Ltd regarding the Scientific methods of farming, Health, Hygiene
etc along with providing complete Agri-solution to the Farmers.
Potential Market for Godrej Agrovet Feed in the PUNJAB.
As quality of the Godrej feed is good but the price of the feed is higher than others.
As some Farmers are loyal towards to some brands so that it’s better to focus on 30-
50 yrs age group segment in order to get higher volume of sale so that they will
initiate to other farmers.
As some farmers were complaining about feed solubility in water, for this company
should take some steps to avoid such type of problems.
Company should offer some discount offers and discount cards.
Gap between supply and demand should be rectifying.
 5.1 BIBLOGRAPHY
 www.google.com
 www.apdairy.com
 www.feedmachinery.com/articles/feed
 www.oregonfeed.org/mehren.htm
 www.godrejagrovet.com
 Kotler Philip, Keller Kevin Lane, Koshy Abraham and Jha Mithileshwar Marketing
Management: A South Asian Prospective.

5.2 QUESTIONNAIRES

FARMER’S QUESTIONNAIRE
1. LOCATION IDENTIFICATION:
Investigator:................................................................, Date..................................,
State:.................................................., District:.....................................................,
Mandal/taluka/tehsil...........................................................................................,
Village:.................................................................................., Code*:..................,
Name of the farmer:.............................................................................................,
Address:..............................................................................................................,

2. What is your main source of livelihood ?

(a) agriculture (b) farm dairy (c) both (d) other....................

3.LIVESTOCK RESOURCES DETAILS

Name of No. Of Value of Total Milk production Selling milk Selling

Livestock units unit(Rs) value(Rs) /day (quantity) price
Buffalo

Cow

4.EARNING SOURCES:

Product Buffalo Cow Total Production Total earnings

Milk

Ghee

Curd

Others

5.CATTLE FEED DETAILS:

Feed Quantity/day/unit Price/bag Brand name/company

material milking Non-milking
Green fodder

Oil cakes

Others

Type of cattle feed using by farmer

a. Type 1 (>20 Rs) b. Type 2 (10-20 Rs) c. Type 3 (<10 Rs)

Total Expense on Concentrate= Rs. ................................................................

( Raw material Rs. Pellet/Mash Rs. )
Total Expense on Roughages= Rs......................................................................
(Greens Rs. Dry Rs.)

6.Farm Spent:
a. Feed (roughage + Concentrates): Rs

b. Electricity

c. Labour

d. Medicine/Veterinary doctor consultation: Rs

 e. Purchase of animals

f. Other

7.What is the schedule for feeding of concentrate feed?

(a) once a day (b) twice a day

8. Why do you prefer these cattle feed (rank factor in the scale 1-5)

1 – Highest rank, 5 – Lowest rank.

S.no Factors Rank

1 Enhance milk productivity
2 Easily available
3 Health
4 Saves cost

9. From whom you took advice in purchasing cattle feed?

a) Neighbour/ farmer’s friends
b) Shop keeper/ Dealer
c) Own decision
d) Extension officer
e) Others
10. Farmer’s feed Back regarding new cattle feed (company’s product)
a. will try
b. will not try
c. Neutral

DEALER’S QUESTIONNAIRE

LOCATION IDENTIFICATION:

Investigator:................................................................, Date..................................,
State:.................................................., District:.....................................................,
Mandal/taluka/tehsil...........................................................................................,
Village:.................................................................................., Code*:..................,
Name of the Dealer:.............................................................................................,
Addresss:..............................................................................................................,

(1) Type of Dealer?

 a. Exclusive
b. Non exclusive

(2) Average sale per month of cattle feed company wise?

S.no Company name Average Price /bag Avg. Sale per Margin(per bag)
quantity month (no.
(kgs) per Of bags)
bag
1
2
3
4
5
6

(3) Mention the different type of cattle feed sold by you price per kg and quantity?

S.no Name of cattle Name of The Target cattle Price/bag margin (per
feed Brand bag)Dealer/Distribution

1
2

3
4

(4) For which cattle feed is mostly sold?

(a) cow (b)buffalo (c)cow & buffalo (d) other

(5) What is expectation of farmers buying Popular products (other than Premium)

a. Particular about Feed Quality

b. Very Particular/Less particular/ do not care/ any other
c. Particular about Price
 d. Particular about results (milk production improvement)

(6) Which Brand products are preferred by farmers while purchasing?

a......................................
b.....................................
c......................................

(7) Difference between local, branded and cooperative cattle feed? Rank the criteria
on scale of 1-5. (1-highest rank, 5- lowest rank)

S.no Reasons Branded Local Cooperative

1 Profit margins
2 Farmer’s satisfaction
3 Avoiding farmer’s complaint

(8) What is your expectation from product and company? Rank the criteria
On scale of 1-5. (1-highest rank, 5- lowest rank)

S. no Reason Rank

1 Regular availability

2 Profit margin

3 Innovative product

4 Consistent quality

(9) Which inputs company should give to improve sales:

1. Superior quality

2. Competitive pricing

3. Better margin
 MILK COLLECTION CENTER’S QUESTIONNAIRE

LOCATION IDENTIFICATION:

Investigator:...................................................................................,Date..................................,
State:........................................................................District:.....................................................,
Mandal/taluka/tehsil...........................................................................................,
Village:...........................................................................................Code*:..................,
Name of the milk collection centre:.......................................................................,
Addresss:..............................................................................................................,

3. No. of subscribing farmers:

4. How much liters milk collected per day :

5. Whom do you supply the milk:

processing centre directly to customer self processing other

Qty.

6. Which months milk production goes :

(a) Up: …………………………………………………….

(b) Down: …………………………………………………

7. What do you purchase for cattle feed and what is its quantity?( if any)

Pellet Mash Other

Quantity
Brand
Pack size

8. What is the payment schedule to the milk producer :

Daily Weekly Biweekly Monthly

9. On what basis you decide the price for the milk
(a) Fat content (b) SNF (c)
other…………………………………..

10. What they do to deal with competition with another Milk Collection centers in the same
town (if so then ask this question)
(a) Dealer margin

(b) High milk price to the farmers

(c) Veterinary services

(d) Cattle feed to the farmers

(e) Loan facilities

(f) Timely Payment

11. What do you expect from product (Cattle feed)

(a) Better margin
(b) Superior quality
(c) Technical services
(d) Competitive pricing