EMPOWERING MINDSAReport onMarket growth dynamics of Cheese Market in IndiaatPARAG MILK FOODByC!A"DRAKA"# PA$ARM%A &rd semesterR'GI#'R "O( )*KCMD+&*,nder the G-idance ofInd-stry G-ide (Mr A.ithFac-/ty G-ide ( Prof An-pama IyerACKNOWLEDGEMENTWithimmensepleasure, I wouldliketopresent thisprojectreport or Para! Milk "oods P#t $td, %an!alore& It has 'een a!reat e(perienceor metounder!om)summer trainin!at*Para!Milk"oods+, whichwould'epossi'le'ecauseo thesupport o people around me& I would like to e(tend m) sincerethanks to all o them&I would like to e(press m) !ratitude to all those who !a#eme the encoura!ement to complete this project& I would like tothank m) !uide Dr& ,nupama Director o M%,, -olle!e,uthorities, -.PR -ell and or pro#idin! me theopportunit) to work with one presti!ious or!ani/ation&I am hi!hl) inde'ted to Mr&,jith&S and Mr&Manjunath&%&N oPara! Milk "oods, or their !uidance and constant super#isionaswell asor pro#idin!necessar)inormationre!ardin!theproject . also or their support in completin! the project&I would like to !i#e m) special thanks to m) parents, theirlo#e, support and 'lessin! ena'led me to complete this Projectwork& M) thanks and appreciations also !o to m) collea!ue inde#elopin!theprojectandpeoplewhoha#ewillin!l)helpedme out with their a'ilities&,IMS InstitutesPa!e 0DECLARATIONI here') declare that the project entitled *Market Growth D)namics o -heese Market in India+ su'mitted or the *Para! Milk "oods P#t $td+ is m) ori!inal work and the project has not ormed the 'asis or the award o an) de!ree, associateship, ellowship or an) other similar titles& Signature of the Student:Plae:Date:,IMS InstitutesPa!e 1E!EC"TI#E S"MMAR$Para! Milk "oods is one India2s lar!est pri#ate diar)or!anisation and the lar!est producer o cheese in ,sia&3heproject'asic o'jecti#esare tounderstandthediar)needs o institutional 'u)ers and promotin! Go and Go#ardhan'rands o Para! Milk "oods in 'an!alore at the same time& Intoda)2s competiti#e world while enterin! in the market it is #er)necessar) to ha#e !ood knowled!e o the potential o aparticular market& 3heinormationre!ardin!theacti#itiesocompetitor2se(istin!inthemarket sothat wecanplanoureach acti#it) accordin! to that& ,lso it is necessar) to retain thee(istin! customers apart rom attractin! the new customers&,IMS InstitutesPa!e 43he project was aimed to 5nd out #arious strate!ies thatcan 'e implemented to increase the intuitional and retail saleso Para! Milk oods in %an!alore re!ion& 3hese strate!ies weresu!!ested ater a research on the milk industr) in %an!alore&3herewas6uestionnairepreparedorinstitutional 'u)ersi&e&7otels, restaurants and caterers 87oRe-a9&We encountered a little pro'lem in collectin! data as the'u)ers were reluctant in pro#idin! an) kind o inormation ontheir relationship with the distri'utor:compan)& ,lso to ensurethat the inormation was accurate, the 'u)er had to 'e cross6uestioned on man) occasions&,IMS InstitutesPa!e ;CONTENTSCha%ter No Partiular&Indu&tr' Pro(leCha%ter ) Introdution and hi&tor' of the o*%an'Cha%ter + O,-eti.e and So%eCha%ter / Re&earh Methodolog'Cha%ter 0 Data anal'&i& and Inter%retationCha%ter 1 Li*itation&Cha%ter 2 3inding& of the Re&earhCha%ter 4 Sugge&tion& and reo**endation&Cha%ter 5 Conlu&ionReferene& ,IMS InstitutesPa!e > million tonnes ') 1>11 rom 041 million tonnes in1>04&Presentl),onl) 1>= o the milk production comes romthe or!ani/ed sector comprisin! coJoperati#es and pri#atedairies& 3he paramount actors dri#in! the !rowth in the dair)sector includerisin!disposa'leincomes, ad#ent o nuclearamiliesandast:instant ood!ainin!!roundinIndia& Otheractors such as structural chan!es in ood ha'its, e(pansion oast ood chains and popularit) o pi//as and pastas aided theusa!e o milk #ariants o mo//arella cheese, processed cheeseand Fa#ored milk etc&Inrea&ing %artii%ation fro* the %ri.ate &etor9:-onsumer preerence towards E,DPs is takin! orward the dair)sector& %esides 'rownJ5eld: !reenJ5eld e(pansion, !lo'al dair)companies too are #enturin! into milk deri#ati#es 'usiness inthis part o the world&3he most recent one is the 0>>= ac6uisition o 3irumala MilkProducts P#t $td') Groupe$actalis S,, "rance, oneo thelar!est dair) pla)ers in the world& ,nother "rench dair) majorDanonehas alsoincreasedits presenceintheIndiandair)sector withslewo product launchessuchasFa#oredcurd,)o!hurt etc&Other in#estments includeNestleIndia2s ac6uisitiono 1A=stake in Indocon ,!ro and ,llied ,cti#ities P#t$tdand7atsun,!roProducts $tdac6uirin!0>>=stakeinL)othi Dair) P#t $td&,IMS InstitutesPa!e 00-ompanies such as Para! Milk "oods P#t $td, Pra'hat Dair) P#t$td ha#e au!mented their capacities in the recent past to meetthe increased demand o milk products&9:dra8ing in.e&tor&; attentionIndiaconsumptionstor)anddi#ersi5cation')dair)pla)ersinto E,DPs are drawin! interests o in#estors which ha#e led tosur!e in the PE deals&3he prominent deals include in#estment ') ID"- andMotilalOswalin Para! Milk "ood P#t $td, Ra'o'ank !roup andIndia ,!ri'usiness "und in Pra'hat Dair) P#t $td, I"-intoModernDairies$tdand%lackri#erIn#estment inDoldaDair)$td&In one o the most recent in#estments, "idelit) Growth Partners,India, alon!withparticipationo thee(istin!social #enturein#estor, ,a#ishkaar, ha#e in#ested in OdishaJ'ased MilkMantra Dair) P#t $td& Recent deals in the sector are theindication that the in#estors percei#e #alue in the deals and see!rowth prospects in the Indian dair) space&Ri!ht product mi( likel) to ha#e a positi#e impact on the creditpro5le o dair) companies traditionall), the credit risk pro5le odair) companies was characteri/ed ') lowpro5ta'ilit) andmoderateli6uidit)& 3hedair)companies rated')-,REarelar!el)inthe%%%or %%cate!or)8reer the!raph'elow9primaril) on account o moderate sol#enc) pro5le&7owe#er, Mother Dair)"ruit ,ndEe!eta'lePri#ate$td, -oJoperati#es associated with Gujarat -ooperati#e Milk Marketin!,IMS InstitutesPa!e 01"ederationandsomepri#atedairiesareintheI,,2 andI,2ratin! cate!or) on account o their superior procurement andmarketin! channels and hi!h share o E,DPs in productportolio& Durin!"?0;, thecredit pro5leo -,RErateddair)companies ha#e 'roadl) remained sta'le&3he entities with the ri!ht product mi( o li6uid milk and E,DPsare e(pected to ha#e 'etter pro5ta'ilit) and sol#enc)parameters& -onse6uentl), there is a hi!h possi'ilit) oimpro#ement in the credit pro5les o such companies !i#en thero'ust milk procurement and distri'ution s)stem&Chee&e: the ne>> #arietieso cheese, whereas in India onl) a'out ;>J;< #ariants are 'ein!marketed, presentin! much room or the market2s e(pansion&%)industr)estimates, thecurrent householdpenetrationinterms o cheese consumption is less than DJG percent& 3he percapita consumption o cheese in India is a mere 1>> !m per)ear in contrast to the !lo'al a#era!e o D k! per annumM thea#era!e or ur'an India, howe#er, is D>> !mper person&Geo!raphicall), thetopsi(citiesconsumeappro(imatel)A>percent o all the cheese sold in India& In India, the processed cheese market orms almost ;< percento the total market that is likel) to !row a hi!herJthanJa#era!e-,GR o around 1< percent, which includes all spreads, cu'es,slices, tins, sla's, etc& Within the processed cheese se!ment,around A> percent o the market is dominated ') unJspreada'leprocessedcheese& 3hese!ment iswell or!anised, comprises,IMS InstitutesPa!e 0;re!ional, Indian, andinternational pla)ers, andisre!isterin!hi!h le#els o entrepreneurialacti#it)& On the other hand, theunprocessed cheese market is lar!el) associated with the sotcheese cate!or) in India, usuall) associated with paneer& 3hetraditional sot cheese constitutes o#er >= resh cow milk&, dair) plant consist o all manuacturin! section used ormilk treatment and processin! 'e!ins with milk reception andendin!withdispatcho the5nishedproducts& 3he)operatewithintherameworko themilkre!ulationandconsisto aproductionpro!ramandre!ulation, Fowsheet, ener!)Fowsheet and unctional descripti#e& 3he GenesisQ 7e had a PEisionP to set up institution to helpthe amous o near #illa!e to !row economicall)& 7e 'elie#ed inthis #ision o aluire as he conceptuali/ed marketin! osuccessul milk which was unused ') the armin! communit) tothe #illa!e with his scienti5c wa) and the political to increasemilk production, he led to the step to his dream PP,R,G MI$O+&,IMS InstitutesPa!e 0A3hus the pure intension o the entrepreneurship oShri&De#endra Shah, P,R,G MI$O . MI$O Products P#t& $td& isone o the most popular dair) in the state o Maharashtra& It islocated on N7 , PuneJNashik hi!hwa), A< km rom industrialcit) Pune, near ,wasariphata at western o Mancher& 3heactor)spreado#er anareao Gacres& 3hecompan)hostsplant and machiner) supplied and erected ') the world leadersP,laJ$a#alP &Initiall) the plant was started with a handlin!capacit) o 4>&>>> $iters:da)& ,t present the dair) handle milkupto G $akhs $iter:da) in lean season& It has an annual !rowtho =&Para! milk is a multiJproducts dair) plant manuacturin!di@erent milk products like Ghee, %utter,Dahi, -hass, $i6uidJmilk, SkimMilkPowder, WholeMilkPowder, Dair)Whitener,Real Milk Powder, -heese ,GulamLGo#ardhann ,B73 Milk,-heese8-heddar cheese, Process cheese, Mo//arella cheese9&Itis an ISOJH>>0 7,--P certi5ed compan)& 3he 'rand name o isPGOWRD7,NP -ompan)alsohas thecerti5cateo MMPOR-No&40>:rJMPO:1>>4i&ion:,IMS InstitutesPa!e 0DInfra&truture > Tehnolog' Our commitment to 6ualit) and inno#ation has resulted inhu!e in#estments in inrastructure and technolo!)& Ourinte!rated dair) and cow arm at Manchar, is rapidl) scalin! upto cater to the e#er e(pandin! circle o customers in India, whoseek allJnatural, wholesome and delicious dair) products&Dair' Plant? Manhar? Pune 3he e(tensi#e ran!es o our products are processed at thisultra modern dair)& Our dair) plant is ull) automated, ointernational standardsande6uippedwiththe'estEuropeantechnolo!)& Ri!ht rom reception o milk to the 5nished product,we maintain strict noJhumanJcontact throu!h the entiremanuacturin! process& Our plant churns out 0,>>>,>>> litres omilk per da), has an output capacit) upto 0> M3 o 'utter, 1M3o dahi 8)o!hurt9andA M3, itNsone o the onl) two acilities in ,sia with B73 technolo!)& 3hee6uipment, imported rom Stephan Machiner) German),pioneers in cheese processin! e6uipment, allows the B73treated cheese to 'e stored in am'ient condition withoutreri!eration up to a period o A months in tropical countries likeIndia& 3hecompan) is read)in!itsel to Foodthenationalmarkets with its B73 treated, superior 6ualit) cheese which will'e a#aila'le in a #ariet) o orms such as slices, wed!esspreadsandaran!eoe(citin!Fa#oursunderanew'randname, Go&DAIR$ 3ARMGowardhan manuactures dair) products that are not just0>>= natural, 'ut also li!hter and rich in calcium&3hatNs 'ecause the milk, procured rom its own cow arm Jthe lar!est in ,sia J is 0>>= natural cowNs milk& WhatNs more is the use o latest European technolo!) inour manuacturin! units ensures the superior 6ualit) andreshness o our products, !i#in! them the uni6ue Gowardhantaste and Fa#ors& 3he plant ha#e the dair) arm also it ha#e nearl) a'out1> cows& Each cow !i#es milks a'out 1> to 1< $iter:da)&,IMS InstitutesPa!e 0HPROD,C# PROFIL'We are offering our clients a wide range of mi/k prod-cts. All our products areprocessed under hygienic conditions, so that it is safe for our clients toconsume. As the whole process is mechanized, it keep the products safe fromthe germs and contaminations spreading by hands. As a result of the unmatchedquality of our products, these are demanded in various world famous companiesin various regions of the world. The range includes the following products !owardhan "ilk Gowardhan Go/d#asteurized and $omogenized from %&&' pure cow(s milk, !owardhan !oldpacksama)ornutritional punchformega*activepeople+,ts-ichcalciumcontent promises stronger bones. ,t $as a -ich .reamy Taste and te/ture thatboth children and adults will love.!old milk is available in 0&& ml and % liter packets.,IMS InstitutesPa!e 1> Gowardhan Fresh$omogenized and #asteurized toned milk, "ade from %&&0 pure cow(s milk,$ighcalciumcontent, storeunderrefrigerationat 1(.,Availablein20&ml,0&&ml and %liter. Gowrdhan Premi-m Ghee,IMS InstitutesPa!e 10%&&' pure clarified milk fat, sweet aroma of pure ghee, no added color, store atambient temperature, Available in poly pack 2&&ml,0&&ml,and %liter,!hee 3ar2&&ml,0&&ml, %ltr and 0ltr, BB %&& and 2&&ml, -T0&&ml and %ltr, Tin 0ltr and%0kg. Gowardhan %-tter,IMS InstitutesPa!e 11#asteurizedTable butter 4unsaltedbutter, "ade frommoderncontinuousbutter making machines, %&&' natural, no added colors, 5ow salt content, "ildtasteandfirmconsistency,storeunderrefrigerationat1(c, Availableintablebutter %&&g,0&&g,and 2&kg, unsalted butter 0&&g and 2&kg.,IMS InstitutesPa!e 14 Gowardhan Processed CheeseBlends of .heddar cheese of different age, 6irmconsistency and smoothte/ture, $igh melting point, 7tore under refrigeration at 1(. , Available in 2&&g,1&&g, and %kg.Blends of .heddar cheese of different age, firm consistency and smooth te/ture,$igh melting point, 7tore under refrigeration at 1(c , Available in 2&&g, 1&&g,and %kg. Go Mo00are//a Cheese,IMS InstitutesPa!e 1;"adefrompasteurizedcowmilk, using,taliantechnology, 8/cellentstretch ability, $igh melting point, 7tore at9%:(. , available in 2&&g, %kg,2.0kg, ;iced available 2kg.Mo00are//a Cheese hredded(Available in 0&&g, %kg, and 2kg, also available in "ozzarella Blend with.heddar in 2kg.Gowardhan Dairy $hitener,IMS InstitutesPa!e 10>;httpQ::www&!owardhanindia&comhttpQ::www&euromonitor&com:cheeseJinJindia:report,IMS InstitutesPa!e