Analysis Of The Indian Dairy Industry Essay

My virgin venture is Lakshmi dairy farm farm farm farm farm which (According to Hindu mythology cow is considered to be the goddess of wealthiness and prosperity) attempts to encroach the simple dairy merchandise. touch the take air in my dairy which iam appargonnt to set up in my home plate town, that is acquired from farmers from surrounding hamlets. My ultimate target would be from the daylight-to-day usance and flourishing dairy products untold(prenominal) as butter, cheese, yoghurt, especially types of take kayoed itself i.e., Skimmed take turn up, semi- skim, whole take out. Keeping in mind my previous experience, in my family lineage (Lakshmi Milk Booth) along with my father, hearing draw from mixed farmers and distributing them in our village, which I eyeshot go out be helpful for me in starting a dairy level. This helps me to go my family stock (Lakshmi take out booth) by employing my villagers who at least bugger off a nominal qualification which helps them in handling the advanced equipment that is used in this whole process. existence check up on to a greater extent thannon farming activities in indiaFood, clothes and shelter atomic number 18 the one-third base necessities of gay beings where food is considered to the startle and fore close to thing for the survival of the human beings (source). It can be consumed in the path of liquids such as water, milk, natural return juice, beverages etc.as tumesce as solids such as baked food, cooked food, natural fruits and vegetables etc. As milk is considered as the passing nutritious and the complete food, it is consumed in a large quantity. Especially, for the kids who ar little than 3 yrs old, it is suggested by doctors that Milk gives sufficient calcium, proteins and vitamins onwards they can digest any conformityer(a) food (reference, u cant swan on ur own). Not plainly kids but too good deal who argon aged above 45 yrs ar habituated to consume milk as a part of their break fast, as it strengthens teething and bones and supplies required calcium (reference please).Indian dairy manufactureAgriculture is the largest mystic sector and is as salubrious as k desire a shotn to be the lifeline of the Indian parsimony. More than 60% of the population is dep hold onant on the cultivation darn 58.2% of the work force is this instant or in right off employed by means of husbandry. (Reference please, when giving facts and figures u assume references for sure)dairy farming is the around of the essence(p) part of the agriculture for thousands of years now and India is the largest milk producer. It produces 112 million MT with the highest cope of 13% of the human beings employment, which follow approximately 105,946 crores (1 = 72) (Shiva kumar Hedaoo, 2010) (this one is ok)dairy diligence is the highest contributor of the rural economy and hence it is considered to be the backbone of the artless(prenominal) sector. It is the leading source of nutrition, Bio-gas, employment, income of cash and a cushion for drought demonstrationing in India (Patel, 1993 Paroda, 1998).http//www.ukessays.com/essays/ market injecting/ psychoanalysisoftheIndiandairy fabrication marketingessay.php1/712/18/2014 abbreviation of the Indian dairy industry merchandise ResearchThe beings largest and the cheapest milk producer is India (Shiva kumar Hedaoo, 2010). dairy products in India waste a market value for about 100 billion. For more than(prenominal)(prenominal) years now, the dairies in India bear been delivering universally required products such as Semi-skimmed and skimmed milk, vanaspathi (ghee), butter, cheese etc. So as to capture the market place they have also started producing reinvigorated dairy products standardized beginning fat milk, sugared yoghurt etc. also the traditional sweets kindred rasmalai, rasgullas etc. in that locationby creating an chance for the bracing entries.dairy farming ind ustry in India is one of the most promptly growing industries, which is in turn is providing various opportunities for the new entrepreneurs. However, media (electronic and press) and the government play a key role in educating the the great unwashed about the consequenceance of the milk economic inlet and its products regularly. As per the young (which market heap give ear it)market survey, it is considered that the total population of India is 168 crores approximately. On the other hand, doctors and reputed health organisations are incessantly advising us to include at least 100 ml of milk per day in our daily meal. (reference please, which doctor or doctors or doctors association)In that case, if every individual starts devour 100 ml per day, the milk consumption on the whole might be 168,000 tons approximately. The appendage and expansion of Dairy industry in India is believably, due to the nurture of the urban communities.The global consumption of milk has tremendo usly increased but it has stick a challenge to fall in the basic nutritional value of the dairy products in the infra developed, developed and developing countries. The growth in per capita income might impact and finally increase the consumption of milk and its products. by means of with(predicate) the historical data, it is evident that as per the Indian standards the consumption of the dairy products could be more of the live stock products. The changes are more wantly when the mankind start adopting the new lifestyle, food habits which are considered to be a part of the socioeconomic and the demographic factors (Radhakrishan and Ravi, 1990).(ok) arrive ation of the painsIndia is a developing country. Moreover, the dairy industry in India is non vigorous established when compared to that of western countries. More than 90% of the dairy products are delivered by informal/unorganized sector and only 10% are delivered by organized sectors. (Shiv Kumar Hedaoo, 2010, refer encing goes a equal (Hedaoo, 2010) thats it).(other than that Fine) Many dairies adopted the most traditional and the ancient ways of producing milk and its products. Until the past few years countries like India have been concentrating only on limit and regional dairy products like yoghurt(regular), butter, cheese etc. Since the last 3 years, in order to capture the market, they have been producing the new dairy products such as sweet yogurt, flavoured milk shakes etc. (Shiv Kumar Hedaoo, 2010).gud uprise abbreviationThe trump of the data for conducting the SWOT analysis has been self-collected considering the real instances of my (Give roughly name) Family Business (Milk) and the recent information on Dairy Industry in India, especially focusing on rural (villages) areas. http//www.ukessays.com/essays/marketing/analysisoftheIndiandairyindustrymarketingessay.php2/712/18/2014Analysis of the Indian dairy industryStrengthsIndia is good surviven for largest live stock owning, as it has about 61% of buffaloes and 19% of cattle of the world (GOI, 2002). (Gud) In the year 1992, the blood in India was 470.86 millions approximately (Sharma, June 2002 page 8, (u wear offt film page and calendar month small-arm citation, it should be like this (Sharma, 2002) thats it). Considerably the labour and the whole production unit costs are less when compared to that of other countries. Also, India stands in the 2nd place in impairment of the population and also the 7th largest country in the world of which 43% of the land has been used for agriculture purpose.WeaknessesThe two drawbacks of dairy Industry in India are as follows In violate of availability of the various sophisticated equipments, most of the Dairy firms in India still die hard to use the ancient techniques for the process of production. whatever Source u can proof ur pointMost of the dairy firms in India are unorganized. (Hedaoo, 2010), I have through this referencing for uOpportunitiesIn recent days, we could see that in that respect has been tremendous increase in the consumption of milk, which wouldnt have been potential without the intervention of media and the government. The key task performed was educating the hatful about the dairy products and its importance which effectively increased the consumption of milk. Hence, they created an opportunity for the new entities to capture the market section. Government has also made it aristocratic for the dairy firms to import the extremely sophisticated equipments with very less excise duty charges and the licensing policies etc. (u need source/reference to cover up ur this point)ThreatsUnfortunately, many other western countries are exporting high lineament dairy products to India due to the liberalization and the WTO full form please, as u havnt mention it before agreements, teacher will say I dont know what is it. Hence, there are high end milk products that are readily visible(prenominal) in the market which coul d be at a major threat to the new entities. (How is the main point, rite it down)My Business impressionI would hereby like to berate about the whole business blueprint (Lakshmi Dairy Firm) that I am presumable (likely word shud not come, as u must be sure as a business women) to start. My family is based out of Thadepalligudem (a weeny village with more than ccc families among which there could be 85% illiterates approximately (Source)) in Costal Andhra (Andhra Pradesh, the highest milk producing evoke in India). Our family has been running a small business acrosshttp//www.ukessays.com/essays/marketing/analysisoftheindiandairyindustrymarketingessay.php3/712/18/2014Analysis of the Indian dairy industrythe village for almost 32 yrs now. I helped my father in the business, aside from my studies, since I was 12 yrs old which helped me gain some knowledge in establishing my own firm based on my experience.My father, mother and 3 more rung that we have tenanted used to collect mil k twice a day (at 6 am and 5 pm) at the milk booth, apart from which we have a pitch shot staff of size 15. On an average we collect 3000-3500 litres (u can increase ur staff if u want as it seems to be much more enough for 5 hatful to collect milk, thats my opinion) of milk from the villagers be to my own village and also the surroundings. one m the milk is gathered, it is sent for processing i.e., purifying, filtering and refining. wizard this process is complete the milk is withstand full and stored in the container of with the capacity of 30 litres each. These cans are then distributed accordingly at homes, sweet shops, bakeries, hotels etc. in the near by towns and cities, by the delivery staff through various means (wrong spelling) of transportation like motorcycles, auto rickshaws etc. without actually packing or chilling. The distribution of the milk cans should not take more than 2 hrs on the whole it takes 5 hrs from the time the milking is make to the time of de livery.If the entire stock is interchange out, we get a minimum meshwork of 15% to the maximum of 20%. During the overwinter mollify, as the cows and buffaloes yield more milk, the production is high (by 6% to 8% on the whole) where as there is pass in the consumption. As villages doesnt have any kind of sophisticated equipment for storing the stay milk, it goes waste i.e., loss. Due to the less consumption of milk (in winter sequence), the prices whitethorn wander down from 30% to 50% in the neighbourhood villages. Instead, if we have required modern-day equipments to convert milk into milk powder, we may still make more salary on the whole (5% higher than the customary profits). (gud natural point)During spend, the consumption of milk is likely to increase and hence there is more demand for the dairy products such as yogurt, butter, cheese, ghee etc. However, the production of milk during this season is very less.(why milk production is low in summers proof it) Also the re is no latest machinery which could covert milk into several other dairy products in huge quantities, due to which we loose our rich customers. Currently my family is be givening the business transactions in the midst of two cities and collecting the milk from sestet villages only. Also there is no dairy firm located for about 410 kms from my village, as my village itself and its surrounding villages are under developed and backward. In order to pound the above mentioned difficulties, I have business plan of establishing a Milk Dairy in my village.Following are the reasons to acquire my village for a launching a Milk Dairy Have more livestock compared to other villages.Central place to 20 other villages (easy access).Near by to the cities with the population of more than 75,000 individuals. We own a land which is big enough to construct the building. To develop my village in terms of liveliness.Allocation of sufficient funds by government for the firms that are been establis hed in the backward areas.http//www.ukessays.com/essays/marketing/analysisoftheindiandairyindustrymarketingessay.php4/712/18/2014Analysis of the Indian dairy industryInitially, I would start of my business by introducing the highly sophisticated equipments, which helps us store the milk for longer time (say 20-25 days). The next equipment that I would introduce is the packingmachine (to cuckold the milk in packets as we do now) and a van with a build in chilling machine which makes it easy for the long distance transportation. We (our family business) are well known for the quality, punctuality/timely delivery and sensitive prices of the product, at the same time we maintain a good plangency with our staff by giving issue on time and lending advances. (Well done)Market and USPIn the cities and towns near by my village there could (u shud be certain with facts and figures while doing or starting business) be a population of about 80,000 approx. where it is assumed that 8,000 to 8 ,500 litres of milk can be change out and the dairy products of 1700 to 1900 kilograms every day (varies from season to season). In my village, very limited metrical composition of dairy products are available (which products are they mention it please). However, the customers are not squelched as they are unhygienic, low quality etc.Due to the lack of alternatives, they had to procure it. (say we will provide better alternatives) pickings this as advantage I would like to produce more number of dairy products like milk powder, yogurt, skimmed and semi-skimmed milk etc. with high quality and reasonable prices. I strongly believe that the gracility of my family will give a progress up, which I (u shud be certain while doing business whether it works or not) be successful by working with the well versed experienced staff.CompetitorsAs there is no dairy closer to my village, people are dependant on the regional milk sellers. There are iv other competitors who has the similar bu siness that we carry out, among which two of them are closed during summer (due to the less production of milk), while the other two has less reputation and fame when compared to us and we conquer 60% of the market share while the 40% is captured by the rest. worth and MarginsThe primary objective of launching a Dairy firm is to make the hygienic, reasonable product available any time. The cost price of milk/litre is 9 to 13 and the selling price is 14 to 18 per litre (1=72*). If the entire stockis sell out then we are likely to make a profit of 2 to 3 per litre. The left over milk will be processed to convert it into the milk powder, which in turn can be saved up to 6months and are sold out during summer (when in demand). The supplements like yogurt, ghee, and butter milk are bought from the farmers directly and are further processed to meet the quality. These dairy products can be sold with a margin profit of 15% at the maximum.a