Current and Future Prospectus of

Dairy Industry in India

Presented by- Mrigya Bansal
Vikrant Rana
Priya Pal
Introduction:
 Today, India is 'The Oyster' of the global dairy industry. It offers opportunities
in large number to entrepreneurs worldwide, who wish to capitalize on one
of the world's largest and fastest growing markets for milk and milk products.
 The Indian dairy industry is rapidly growing, trying to keep pace with the
galloping progress around the world. It may transfer technology, sign joint
ventures or use India as a sourcing center for regional exports.
 India has the credit of being the largest producer as well as the biggest
consumer of milk in the world. It also has the world’s largest dairy herd
(comprised of cows and buffalos).
 India’s dairy sector is expected to triple its production in the next 10 years in
view of expanding potential for export to Europe and the West. Moreover with
WTO regulations expected to come into force in coming years all the
developed countries which are among big exporters today would have to
withdraw the support and subsidy to their domestic milk products sector.

 Also India today is the lowest cost producer of per litre of milk in the world. Also
to take advantage of this lowest cost of milk production and increasing
production in the country multinational companies are planning to expand their
activities here.
History:
 Prior to year 2000, India was not noticed by most international dairy companies,
as the country was neither an active importer nor an exporter of dairy products.
Although India has imported some milk powder and butter oils as aid between
1970 and 1990, exports from India were insignificantly small and it was not until
2000 onwards, when Indian dairy products started having more presence in
global markets.
 The transition of the Indian milk industry from a situation of net import to that of
surplus has been led by the efforts of National Dairy Development Board's
Operation Flood programme under the leadership of the former Chairman of the
board Dr. Kurien.
Revolution in dairy industry:
• Operation flood:
 It started by India’s National Dairy Development Board in 1970
 Introduced under guidance of Dr. Verghese Kurien(father of
operation flood)
 It also called White Revolution.
 Objective: To create a nation-wide Milk gride
 It results in making India the largest producer of milk and milk products.
 Operation Flood has led to the modernization of India's dairy sector and
created a strong network for procurement processing and distribution of milk
by the co-operative sector.
 Per capita availability of milk has increased from 132 g per day in 1950 to over
220 g per day in 1998.
 The main thrust of Operation Flood was to organize dairy cooperatives in the
milk shed areas of the village, and to link them to the four Metro cities, which
are the main markets for milk.
 Today’s per capita consumption has been increased up to 290g per day (2012-
13)
SWOT Analysis:
• Strength:
• Demand profile: Absolutely optimistic.
• Margins: Quite reasonable, even on packed liquid milk.
• Flexibility of product mixture : Tremendous. With balancing equipment, you
can keep on adding to your product line.
• Availability of raw material: Abundant. Presently, more than 80 per cent of
milk produced is flowing into the unorganized sector, which requires proper
channelization.
• Technical manpower: Professionally-trained, technical human resource pool,
built over last 30 years.
• Weakness:
• Perishability: Pasteurization has overcome this weakness partially.
• Lack of control over yield: Theoretically, there is little control over milk
yield.
• Logistics of procurement: Woes of bad roads and inadequate
transportation facility make milk procurement problematic.
• Problematic distribution: lack of proper milk and milk product
distribution channel.
• Competition: With so many newcomers entering this industry,
competition is becoming tougher day by day.
• Opportunities:
• Value addition: There is a phenomenal scope for innovations in product
development, packaging and presentation.
 Steps should be taken to introduce value-added products like shrikhand, ice creams,
paneer, khoa, flavored milk, dairy sweets, etc
 Addition of cultured products like yoghurt and cheese lend further strength - both in
terms of utilization of resources and presence in the market place.
 A lateral view opens up opportunities in milk proteins through casein, caseinates
and other dietary proteins, further opening up export opportunies.
• Export potential: Amul is exporting to Bangladesh, SriLanka, Nigeria, and the Middle East
• Threats:
• Milk vendors, the un-organized sector: Today milk vendors are occupying the
pride of place in the industry. Organized dissemination of information about the
harm that they are doing to producers and consumers should see a steady
decline in their importance.
Source:Basic Animal Husbandry Statistics, DAHD&F, GOI
Source:Basic Animal Husbandry Statistics, DAHD&F, GOI
Cooperative Milk Flow System:

Source: www.fao.org
Modern milk processing flowchart:

Source: www.researchgate.net
Modern milk processing flowchart:

Source: www.fao.org
Source: www.transparencymarketresearch.com
 Product development:
 Dairy foods can be manufactured and packaged for export to countries
where Indian food enjoys basic acceptance. The manufacturing may
be carried out in contract plants in India. An option to market the
products in collaboration with local establishments or entrepreneurs
can also be explored.
 Products exhibiting potential include typical indigenous dairy foods
either not available in foreign countries. Gulab-jamuns, Burfi, Peda,
Rasagullas, and a host of other Indian sweets have good business
prospects.
 Products typically foreign to India but indigenous to other countries
could also be developed for export. Such products can be
manufactured in retail package sizes and could be produced from milk
of sheep, goats and camel.
Source: www.apeda.gov.in
Source: www.agriexchange.apeda.gov.in