INDUSTRY OVERVIEWDairy Product Sector in North East India

Dr M. Islam BarbaruahDirector, Vet Helpline India Pvt.Ltd

IIE, Guwahati, India

The volume of milk consumptionin South Asia is growing at 2-3

per cent. The growth rates of over5 per cent for many dairy product

categories in India are muchhigher than the mature markets of

the developed world and this isprompting several global players

to target entry into the Indianmarket. – The Hindu

IIE, Guwahati, India

Approx 48% of Milk output in India is used toproduce a variety of Indian dairy products

Milk& Milk

Products

Meat&

Egg

TotalFood

FamilySize

RURAL 42.56 16.14 288.80 5.00URBAN 74.18 26.77 410.10 5.00

Per Capita Monthly Consumption Expenditure ( In Rupees )

55th NSS ( July 1999 – June-2000)

THE STATISTICS – AT A GLANCEIndia’s Total Milk Production & Per Capita Availability of Milk

(2001-02)84.6 MT & 226gm respectively.

L.Milk Ghee Curd Makkan Khoa MilkPowder

Cheese Others

46% 28% 7% 6.5% 5.5% 3.8% 2% 1.2%

Milk Utilization Pattern – 1989-90

IIE, Guwahati, India

Over 45 per cent of the country's milk is retainedat farm level in rural regions; another 42 per centis handled by the unorganized sector. A mere 13per cent goes for value addition by the organized

sector.

The combined size of the butter and cheesemarket at Rs 630 crore. Against this, the

packaged liquid milk market is valued at Rs7,200 crore, while that of curd and curd-basedproducts, made by the unorganized sector, isset at Rs 12,000 crore. Value of ethnic sweets

is still higher at Rs 27,000 crore.

SOME FACTS

IIE, Guwahati, India

The country became the world'slargest milk producer in 2001. Yet notone player from India features in thelist of global top 20 dairy companies.

SOME OF THE KNOWN COMPANIES ACTIVE IN THIS SECTOR

• Britania Industries Ltd•Cadbury India Ltd

•Gujarat Co-op Milk Marketing Federation•Hindustan Lever Ltd

•Nestle India Ltd•Parle Products Ltd

•ITC Agro Tech•Satnam Overseas Group

•Marico Industries Ltd•Smithkline Beecham Consumer Health Care Ltd

•Perfetti Van Melle India etc.

IIE, Guwahati, India

Do you Know?

According to Unconfirmed Estimates:

Organized sector represented by brands “Purabi” and “DairyFresh” besides “Government Central dairy”

together markets only in an average of 12000 lit of Milk perday within Guwahati as processed milk.

Guwahati market requirement of liquid Milk is 1,25,000 lit per day.

Branded dairy products produced & marketed by local playerWAMPUL & G.R.Dairy Products is slowly gaining market sharein Guwahati and providing consumers an alternative to those

marketed by majors like AMUL and Nestle.AMUL processed milk “AMUL Taaza” sale within

NE India is 450 -500 MT per day.IIE, Guwahati, India

PURCHASE OF MILK – IN GUWAHATI CITY

From Published source

IIE, Guwahati, India

PENETRATION OF MILK PRODUCTS IN GUWAHATI

Unconfirmed estimates put sale of Curd in Guwahati City byunorganized sector at 3000 to 5000 lit per day (summer) and that

of cream at >100 lit per day.

From Published source

IIE, Guwahati, India

MAJOR DAIRY PRODUCT PRODUCINGORGANIZATIONS IN NORTH EAST INDIA

DIMAPUR ( KOHIMA ) DISTRICT CO-OPT MILKPRODUCERS UNION LTD. (KOMUL)

Dimapur, NagalandBrand : KOMUL

TRIPURA CO-OPERATIVE MILK PRODUCERS' UNION LTD.Agartala

Brand: GOMATI

G R DAIRY AND FOOD PRODUCTS (P) LTDKhanapara, GuwahatiBrand : DAIRY FRESH

WEST ASSAM MILK PRODUCERS CO-OPERATIVE UNION LTDGuwahati

Brand : PURABI

IIE, Guwahati, India

PURABI BRAND OF PRODUCTS

IIE, Guwahati, India

DIMAPUR ( KOHIMA ) DISTRICT CO-OPT MILK PRODUCERSUNION LTD. (KOMUL)

Sweetened Card

Pasteurized Lassi

Cow Ghee Packed Milk

Ice Cream Paneer

PRODUCT PROFILE

IIE, Guwahati, India

SOME OBSERVATIONS

There are 678 registered manufacturingunits of Milk Products in India. Most of

them are in to milk powder and ghee. It isimportant to note that they uses 29 million

litres of Milk per day against installedprocessing capacity of 73 million litres per

day.

Existing product profile at global dairy majorsalready active in India indicates eventual growth

for the organized sector. The trend in comingyears will be towards more value-added products.

IIE, Guwahati, India

SURVIVING THE COMPETITION FROM MNC’SAND OTHER DAIRY MAJORS

It is not the strongest of the species that survive, nor the mostintelligent, but the one most responsive to the CHANGE

Charles Darwin

Be Informed – Know your Customers & Market

Focus on – Innovation and Quality

Be Techno-savvy

Innovative distribution and customerconvenience

Realistic Marketing Plan : Clear vision , Goal Fixation &Continuous Performance Monitoring

IIE, Guwahati, India

IIE, Guwahati, India