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Introduction to the company Introduction to the industry Rationale of the study Objective of the study Research methodology Data collection Data capturing tools Process Findings Analysis Inferences Recommendation & suggestions Bibliography Anne ure

THE COMPANY !opaljee !roup is a Delhi"based Rs #$$"crore company and is the city%s third largest li&uid mil' player( It is also readying to ta'e a pie of the fast" gro)ing food retail business by opening *$$ e clusive food outlets in the ne t three years in the +apital( !, Dairy also has a dairy product portfolio )hich consists of flavoured mil' and paneer other than mil'( !, also plans to launch curd under !opaljee brand- soon( +heese and flavoured mil' drin's are e pected to e perience robust gro)th in the coming years- albeit from a small base( .he group at present has three mil' plants )ith a mil' handling capacity of / la'h litres per day 011PD2( 3hile one is located at 4iyan 05P2- )ith a capacity of 67-$$$"*-#7-$$$ litres per day- the second one is at 8arar 0Agra2 and the third plant at Ballabhgarh 09aryana2( .he company is also planning to set up another dairy plant in 1uc'no) )ith a capacity of *"la'h litre per day( !, Dairy has also revamped its pac'aging and has signed on a ne) agency +onfluence( .he company spent about Rs # crore last year on advertising and plans to spend the same amount this year too(

INDIAN DAIRY INDUSTRY Dairy is a place )here handling of mil' and mil' products is done and technology refers to the application of scientific 'no)ledge for practical purposes( Dairy technology has been defined as that branch of dairy science- )hich deals )ith the processing of mil' and the manufacture of mil' products on an industrial scale( In developed dairying countries such as the 5(4(A(- the year *:7$ is seen as the dividing line bet)een farm and factory"scale production( ;arious factors contributed to this change in these countries- vi<( concentration of population in cities )here jobs )ere plentiful- rapid industriali<ation- improvement of transportation facilities- development of machines- etc( )hereas the rural areas )ere identified for mil' production- the urban centres )ere selected for the location of mil' processing plants and product manufacturing factories( .hese plants and factories )ere rapidly e panded and moderni<ed )ith improved machinery and e&uipment to secure the various advantages of large"scale production( =early all the mil' in the 5(4(A( before *>$$ )as delivered as ra) 0natural2 mil'( Once pasteuri<ation )as introduced- it developed rapidly( ?echanical refrigeration helped in the rapid development of the factory system of mar'et mil' distribution( In India- dairying has been practised as a rural cottage industry since the remote past( 4emi"commercial dairying started )ith the establishment of military dairy farms and co"operative mil' unions throughout the country to)ards the end of the nineteenth century(

During the earlier years- each household in those countries maintained its @family co)% or secured mil' from its neighbour )ho supplied those living close by( As the urban population increased- fe)er households could 'eep a co) for private use( .he high cost of mil' production- problems of sanitation etc(- restricted the practiceA and gradually the family co) in the city )as eliminated and city cattle )ere all sent bac' to the rural areas( !radually farmers )ithin easy driving distance began delivering mil' over regular routes in the cities( .his )as the beginning of the fluid mil'"sheds )hich surround the large cities of today( Prior to the *:7$s most mil' )as necessarily produced )ithin a short distance of the place of consumption because of lac' of suitable means of transportation and refrigeration( .he Indian Dairy Industry has made rapid progress since Independence( A large number of modern mil' plants and product factories have since been established( .hese organi<ed dairies have been successfully engaged in the routine commercial production of pasteuri<ed bottled mil' and various 3estern and Indian dairy products( 3ith modern 'no)ledge of the protection of mil' during transportation- it became possible to locate dairies )here land )as less e pensive and crops could be gro)n more economically( In India- the mar'et mil' technology may be considered to have commenced in *>7$- )ith the functioning of the +entral Dairy of Aarey ?il' +olony- and mil' product technology in *>7B )ith the establishment of A?51 DairyAnand( .he industry is still in its infancy and barely *$C of our total mil' production under goes organi<ed handling(

H !"#$% #& I'( )' M)$*+" M ,* I'(-!"$% Beginning in organi<ed mil' handling )as made in India )ith the establishment of ?ilitary Dairy Farms(

9andling of mil' in +o"operative ?il' 5nions established all over the country on a small scale in the early stages(

1ong distance refrigerated rail"transport of mil' from Anand to Bombay since *>/7

Pasteuri<ation and bottling of mil' on a large scale for organi<ed distribution )as started at Aarey 0*>7$2- +alcutta 09aringhata- *>7>2Delhi 0*>7>2- 3orli 0*>B*2- ?adras 0*>BD2 etc(

Establishment of ?il' Plants under the Five"Fear Plans for Dairy Development all over India( .hese )ere ta'en up )ith the dual object of increasing the national level of mil' consumption and ensuing better returns to the primary mil' producer( .heir main aim )as to produce more- better and cheaper mil'(

I'( )' .##( P$#/+!! '0 I'(-!"$%

.he ?inistry of Food Processing estimates the si<e of the Food Processing Industry at RsD-*7$bn 054G6$bn2- including Rs>>$bn 054G##bn2 of value added products(

.he Food Processing Industry is estimated to gro) at >"*#C- on the basis of an estimated !DP gro)th rate of B":C- during the tenth plan period(

;alue addition of food products is e pected to increased from the current :C to D7C by the end of #$#7( Fruit & vegetable processing )hich is currently around #C of total production )ill increase to *$C by #$*$ and to #7C by #$#7(

.he industry employs *(Bmn )or'ers directly( .he number of people employed by the industry is projected to gro) to D6mn direct and indirect job )or'ers by #$#7(

.he total e ports of the Food Processing Industry in #$$*"$# )ere Rs*DBbn and the target e ports for #$$#"$D )as at Rs*/Bbn( ?arine products e port )as the single largest constituent of the total e ports of processed foods contributing over /$C of total processed food e ports(

Five"year ta holiday for ne) food processing units in fruits and vegetable processing along )ith other benefits in Budget #$$/"$7 has bolstered the !overnment%s resolution of encouraging gro)th in this sector(

India is the largest producer of mil' in the )orld )ith an estimated production of >*mn tons in the year #$$#"$D( ?il' and mil' products account for a significant *6C of India%s total e penditure on food and the popular mil' products are cheese- butter- ghee- dairy )hiteners and ice"creams(

.he Indian snac' food mar'et comprising ba'ery products- ready to eat mi es- curries- chips- nam'eens and other processed foods is large- diverse and dominated by the unorgani<ed sector(

.he total si<e of the Indian snac' food mar'et is at an estimated over /$$-$$$ tons in volume terms and Rs*$$bn in value terms and is gro)ing at over *$C for the last three years 0#$$$"#$$D2( .he three largest consumed categories of pac'aged foods are pac'ed teabiscuits and soft drin's(

MILK PROCESSING, VALUE ADDITION AND MARKETING .he mil' mar'et in India is predominantly in the non"organised sector and is traditional and fragmented( .he organised dairy industry represents less than #$C of the total mil' produced in the country and is made up of three distinctly different sectorsH the government- the co"operative and the private( In terms of volumes of mil' handled- installed processing capacities and mar'eting infrastructure- the co"operative sector is by far the largest( Furthermore- the co"operative sector includes some *$ million landlessmarginal and smallholder mil' producer families- all members in the nearly :# thousand D+4s across the country( 9o)ever- in terms of installed processing capacities alone- the co"operative and private sectors have more or less matching capacities and the government only a small presence( .ogether they have the capacity to process about DDC of daily average mil' production in the country- but they actually handle I#$C( T)1,+ 11. Milk processing capacity.

4ector +o"operative Private !overnment .otal

=umber plants #*: DBB D> B#D

of +apacity 0*$B litresJday2 D#(/6 D$(#B D(:6 BB(B$

. 0-$+ . Processing capacity (%) by sector. ?uch of the processing capacity created by the private sector in the )a'e of the liberalisation of the Indian economy in *>>* remains idleA only about B$C of the installed capacity of the private sector is operated on a day"to" day basis( In the government sector- too- most of the primary processing facilities installed in rural areas 0mainly mil' chilling centres2 are not functional and dairy plants in the smaller to)ns and cities are grossly under utilised( In the co"operative sector- all plants are used to their full capacity and remain under utilised only during the lean production season( A little over D$C of the mil' produced is retained in producer households( About 7$C of mil' is traded in through the traditional channelsA about half of this is traded )ithout any processing- )hilst the other half- going into traditional product and s)eetmeat manufacture- undergoes some traditional processing 0acid coagulation andJor heat treatment2 before it is traded( .hese processing capacities include li&uid mil' processing and manufacture of productsH mil' po)ders- table butter and )hite butter- cheese- gheecondensed mil' and mil' s)eets( .he special infrastructure for the dairy industry mostly belongs to the co"operative system and the =DDB- )hile the

government and the private sector have only limited infrastructure- such as road mil' tan'ers and a limited cold chain( .he co"operative infrastructure covers all aspects of the industry includingH mil' collection 0bul'ing- chilling and pre"plant transport- through a net)or' of over :# thousand D+4s country)ide2A processing and value addition 0li&uid mil' and mil' products plants2A transport 0road- mil' tan'ers and broad gauge and metre gauge rail mil' tan'ers2A and cold chainJstorage 0cold stores- deep free<es- refrigeration truc's- )arehouses and automatic mil' vending units2( In addition- there are thousands of shops selling mil'"based s)eetmeats- all privately o)ned- )ith their o)n traditional recipes- processes and products- )hich are outside the ambit of the organised dairy industry( 4ome /7C of the mil' produced 0># million litresJday in *>>>2 is consumed as li&uid mil'( .he bul' of it is traded in the traditional channels- most of it through several tiers of contractors( 4ome *B million litres is traded as processed pac'aged mil'H *D(7 million litres by the co"operative sector and #(7 million litres by over D$$ private sector brands( A very large percentage of these private sector brands is substandard- often unhygienic- as &uality and hygiene standards are seldom enforced( .he co"operative net)or' supplies )holesome mil' to some :$$ citiesto)ns and urban

agglomerations daily- mostly as pasteurised- pac'aged mil' but some in modern automatic bul' vending units in metropolitan cities( ?il' products from the organised sector are mar'eted through a vast net)or' of )holesalers- distributors and tens of thousands of retailersseparate chains of them for each brand and company( By far the largest

manufacturer of mil' foods in the country is the !ujarat +o"operative ?il' ?ar'eting Federation 0!+??F2- the ape co"operative body of the !ujarat mil' co"operatives- )hich is also the single largest food company in India)ith both national and global mar'ets( Almost all of the mil' and mil' products produced in India are traded and consumed in India itself- )ith e port forming a tiny share of the )hole( =evertheless- although the volumes are small- India no) has a presence in the )orld mar'ets and regularly e ports mil' products and long"life mil' to countries in 3est Asia- 4outh" East Asia- 4outh Asia and =orth America(

UHT MILK .OR CHANGING LI.ESTYLE 59. mil' is the latest offering in the mar'et( ?il' has undergone a special process called 59. 05ltra 9eat .reatment2 process- thereby ma'ing it completely germ" free( It is then pac'ed in special si "layer pac'aging that preserves the mil'( .he special mil' not only lasts for upto *#$ days )ithout refrigeration- it can be consumed straight from the pac' )ithout boiling( Once opened- the mil' should be 'ept in the refrigerator( 59. mil' is completely natural and contains no preservatives( 59. mil' has initially been launched in the toned mil' variant 0D per cent mil' fat2 in Delhi and the =+R by many players( It )ill soon be available in other 'ey mar'ets( .he one litre pac' has been priced at Rs #/( .he various manufacturers have launched 59. mil' is in response to changing consumer needs( +hanging lifestyle have created a need for greater convenience in purchase- storage and usage of mil'( In addition- )e see the emergence of single )or'ing individuals or double income small families in urban centres- that dictates the need for fle ibility and convenience in buying mil' )henever needed( .he 59. pac'- )hich can be bought any)here- stored in un"refrigerated conditions for long periods and can be used straight from the pac'- is a boon to such consumers(

BACTO.UGATION Pasteurisation involves par"boiling 0heating belo) boiling point2 the mil' to about 67 degrees +elsius for roughly *7 seconds using continuous"flo) Khigh temperature"short timeL 09.1.2 process heat e changers( .his process 'ills more than >$ per cent of the bacteria- especially the harmful pathogens such as Mycobacterium bovis 0)hich causes bovine tuberculosis that also affects humans2 and Salmonellae 0responsible for gastrointestinal diseases and typhoid fevers2( Pasteurisation does not- ho)ever- destroy the spoilage bacteria that cause curdling( Also- it leaves out certain heat"resistant bacteria 0including dead bacteria2 and spores 0seeds2 that can brea' do)n the mil' proteins or- in certain cases- cause Ks)eet curdlingL( .o address this- dairies resort to 59. treatment- )hich involves heating the mil' up to *D6 degrees +elsius for t)o seconds and then pac'aging it under aseptic conditions( ?il' processed in this )ay is virtually sterile and can be 'ept un"refrigerated in tetrapac's for several months( But 59. mil' is e pensive because it re&uires pac'ing the mil' in tetrapac's- )hich costs about Rs B- compared to just 7$ paise for ordinary plastic pouches(

Bactofugation- achieves the objective of getting rid of all heat"resistant bacteria and spores )ithout entailing much additional cost( .he bactofuged mil' also has a higher shelf life than the normal pasteurised mil'( 5nli'e pasteurisation and 59. treatment- bactofugation is a non"thermal process for removing bacteria- particularly the heat"resistant spores- using a high"speed centrifugal separator or KbactofugeL( Essentially- it employs the principle of e pelling the bacterial spores 0)hich are heavier than mil'2 through centrifugal force action( ?oreover- the need for bactofugation really arises only for ma'ing cheese or other cultured products( .he primary objective of this treatment is to remove heat"resistant spores li'e those of butyric acid bacteria- )hich may germinate during the ripening of hard cheeses and negatively affect product &uality( For li&uid mil'pasteurisation is more than sufficient since it destroys the major disease" causing micro"organisms(

MILK AND MILK PRODUCT ORDER 2 1332 .he !ovt( of India had promulgated the ?il' and ?il' Product Order 0??PO2 *>># on >($B(*>># under the provisions of Essential commodity Act- *>77 conse&uent to de"licencing of the Dairy sector in *>>*( A4 per the provisions of this order- any personJdairy plat handling more than *$$$$ liters per day of mil' or 7$$ ?. of mil' solids per annum needs to be registered )ith the registering authority appointed by the +entral !overnment( .he main objective of the order is to maintain and increase in supply of li&uid mil' of desired &uality in the interests of the general public and also for regulating the production- processing and distribution of mil' and mil' Products( Recogni<ing the necessity for suitable amendments in ?il' and ?il' Product Order *>># for faster pace of gro)th in the Dairy sector- !ovt( of India has amended ?il' and ?il' Product Order *>># from time to time in order to ma'e it more liberal and oriented to facilitate the dairy entrepreneurs( .he !ovt( of India has notified the amendment proposals in the official ga<ette on #BJ$DJ#$$#( =o) there is no restriction on setting up of ne) capacity- )hile noting that the re&uirement of registration is for enforcing the prescribed standards of &uality and food safety(

.he salient features of the ne) amendments made are as follo)sH .he provision of assigning mil'shed has been done a)ay )ith( .he registrations under ??PO"># )ill no) cover sanitary- hygienic condition- &uality and food safety(

.he provision of inspection of dairy plant has been made fle ible( .he provision to grant registration in >$ days has been reduced to /7 days(

.he po)er of registration of 4tate registering Authority has been raised from *($$ 11PD to #($$ 11PD(

Altogether the +entral and the 4tate Registering Authorities have registered B:: units )ith combined capacity of :$D(6/ 11PD in +ooperative- Private and !overnment 4ector as on D*(D(#$$D(

GROWTH O. PACKAGED MILK IN DELHI In Delhi- one of the biggest mar'ets of pouched mil'- the difference has been most perceptible( At present- the si<e of the mil' mar'et in Delhi is estimated to be in the range of /$ la'h litres a day( Of this- the pouch mil' accounts for *: la'h litres a day )ith cooperative behemoth ?other Dairy cornering more than /$ per cent of the mar'et and the balance being shared among brands such as Paras- D?4- !opaljee and Britannia( In addition- ?other Dairy operates through thousands of designated vending outlets( Appro imately *$ la'h litres of mil' flo)s through these vending outlets( .he local mil'man- thus- has to supply only *# la'h litres of mil' to the customers in various parts of the city( .here are various factors behind the gro)th of pouch mil'( .hese include increased a)areness of people about cleanliness and hygiene( ?oreoverthe pouch is easier to carry as it does not re&uire a utensil at the point of delivery( Apart from the li&uid mil' segment- the local dairy vends have also suffered because of the increasing number of value"added products being offered by the major brands( Almost all the established players today have value"added products such as curd- cream- ghee- butter- paneer and cheese( And some of them such as ?other Dairy has separate arms for ice"cream and vegetables as )ell(


high degree of credibility associated )ith an established brand is

primarily behind the gro)th of pouched mil' and pac'aged value"added mil' products( It is &uite possible to find some degree of adulteration in loose food products li'e mil' and )hen that happens- these products- that are considered to be health supplements- turn out to be more harmful than healthy( ?ost of the branded products follo) stringent &uality measures )hile processing the products( In addition to the pac'aged value addition- the local mil'man cannot match the infrastructure and mar'eting might of the larger brands( For instance- there are several thousand designated and integrated ?other Dairy vending outlets in the =ational +apital Region covering all the localities(

MILK PACKAGING In the past the essential commodity " mil'- used to be brought home fresh from the dairy farm by the local dhoodhwalla in the )ee hours of the day( .hen- as there arose a dearth of mil'men- young boys cycled distances to deliver bottled mil' at doorsteps( 1ater- came the plastic era )hen mil' began to be sold in plastic pouches( .here is a gro)ing consciousness of the importance of healthy food and hygiene( .he mother is ta'ing a hard"long loo' at food & beverage her child is consuming( .he samosa or noodles in the school canteen or the neighborhood juice")ala is no longer loo'ed at as the @complete healthy" hygienic% food for her child( 4he has a)a'ened to the fact that lot of )hat her family is consuming is not healthy & hygienic because of the )ay the food has been processed- pac'aged- transported or stored( Recently the controversy regarding purity of mineral )ater has further fuelled the concern about hygiene in the masses( Also- the Delhi !overnment%s proposed initiative of banning the jun' food at school canteens is another step- )hich has highlighted the need for healthy & hygienic food( .he factor that plays the important part in maintaining the hygiene & healthy benefit of mil' is its processing and pac'aging( +onsumers are not a)are of the benefits of the technology- )hich delivers safe- natural and hygienic food( In a country li'e India )here roads are not developed- there is irregular or no po)er supply and cold chain is almost missing( Aseptic pac'aging is a

solution to dairy & food processing industry to come up to international standards( 4ince processed food products had to compete in the )orld mar'et- it )as essential that the industry adopted the 9A++5P and 4P4 major in processing- pac'aging and transportation of food products( .his )as the bac'ground under )hich .he Aseptic Food Processing & Pac'aging Industry Association of India 0AFPPA2 )as born in the year #$$# so that in the processing of the fruits and mil' and other similar products most hygienic- safe and international standard of pac'aging could be adopted )hich aseptic pac'aging ensured( As !overnment opinion is one of the most influencing factor for the industry behavior and practice- AFPPA 'eeps this as one of the most crucial objective of its functioning( A!+4" / 4)/*)0 '0 (+, 8+$)1 , "% #& 7 ,*9 ?il' is the most important inta'e for a child%s balanced diet( It has also become a cause of concern for the mother( Aseptic pac'aging is the surest )ay of maintaining the healthy deliverability of mil'( .he aseptically pac'aged mil' is usually referred to as 5(9(. ?il'( It has been specially processed and pac'aged so that it can by transported and stored )ithout refrigeration( 5(9(.( stands for 5ltra 9igh .emperature( Aseptic pac'aging means that after the mil' has been sterili<ed it is pac'aged in such a )ay that no outside bacteria or contaminants can come into contact )ith the mil' after it has gone through the 5(9(.( process( ! "5+ !-$+!" 6)% #& 7) '") ' '0 "5+ 5+),"5%

?any companies li'e =estle India- Britannia- !ujarat +o"operative ?il' ?ar'eting Fed( 1td(- 0Amul2- ?other Dairy- Punjab 4tate " ;er'a ?il'- 8aipur Dairy- .ropicana Beverages- Pepsi +ola India- 9industan +oca +ola 1imited 0+o'e2- !odrej- 911- Dabur Foods are using the benefits of Aseptic pac'aging( Aseptic Pac'aging is a process in )hich pac'aging material is sterili<ed using chemical or thermal energyA maintained in a sterile regionA filed )ith product and hermetically sealed( .his process of pac'aging ma'es sure that micro"organisms are prevented from entering into the pac'age during and after pac'aging( Aseptic pac'aging ma'es available to the Indian consumers- pure- freshhygienically pac'aged food products in better"cost efficient pac'ages for total consumer satisfaction( T+"$) P)/*9 .oday- they come right off the supermar'et shelves in conveniently pac'ed cartons that can be pic'ed up at any time of the day( .he concept gained popularity )ith .etra Pa'Ls mil' pac'aging solutions( .oday their pac'aging solutions are )idely utilised not just by mil' and mil' products- but also by fruit juices- beverages and the li'e( .etra Pa' is a company that considers its customer 'ing- " its pass)ord to success being Kcustomer satisfactionL( A company of 4)edish origin- .etra Pa' has completed 7$ years of e istence and ma'es use of the latest and

most innovative techni&ues to give the Indian consumer pure- fresh and hygienically pac'aged food products in cost efficient pac'ages( .he 59. mil' is processed employing the innovative state"of"art technology.etra .herm ;.I4 processing " )hich helps sterili<e mil' )ithout the mil' getting a boiled taste( .his involves direct steam injection- )here steam instantly heats the mil' under pressure to */$ degrees +elsius( After treating it for D seconds- the mil' is introduced into a vacuum chamber in )hich the same amount of )ater- injected as steam- is flashed off( .he mil' is cooled at the same time to the same temperature- as before )hen the steam )as introduced( .he mil' leaving the .etra .herm Aseptic ;.I4 process has the same composition as before 59. treatment( .etra Pa' cartons also minimise )astage of food products by protecting sensitive foods for months )ithout the need for preservatives and chilled distribution(

O1:+/" 8+! #& "5+ !"-(%9 *( .o study the ?ar'eting 4trategies of ! , Dairy M manufacturers of !opaljee ?il'((

R+!+)$/5 M+"5#(#,#0%9 .he study being underta'en )as e ploratory research( 3here in all these approaches of e ploratory research li'e the literature survey )as underta'en( DATA COLLECTION APPROACH .he base on )hich a study rests is the information that is embedded in it( .he data for this study )as obtained as a blend of both 4econdary and Primary sources( S+/#'()$% D)") Already published data formed the starting point for the study( It includedH " 3ebsite of !opaljee and other Dairy Organi<ations(

P$ 7)$% D)") Data )as collected specifically for the study at hand by intervie)ing the officials at !, Dairy( All the data collected is presented in this Report(

.INDINGS AND ANALYSIS From scouting around for suitable dairies to ac&uire- to intensifying efforts to deliver !opaljee products at your door"step N the !opaljee group has lined up a sle) of activities in the forthcoming year to)ards increasing its presence in the national dairy scene( .outed to be the third largest supplier of poly"pac' mil' in the +apital- after ?other Dairy " !opaljee is actively loo'ing for dairies that it can ac&uireparticularly in other metros- to establish a national presence( .he company is open to ac&uisitions- provided t)o basic re&uirements )ere satisfied N access to good &uality mil' and &uality processing infrastructure( .hough contract manufacturing )as the order of the day- the company )as not open to such alliances as it )as difficult to 'eep a chec' on &uality( Another initiative that the company has embar'ed on is a pilot project to have a dedicated !opaljee retail outlet )here all company products )ould be available under one roof( 3hile this plan )as still at a nascent stage- it made more economic sense- as it )as a one"time investment- as against a multi"vending outlet- )hich )as a recurring e penditure for the company( .he idea )as to have a K!opaljee privilege clubL- )here consumers could call for all their products and have them delivered at a time convenient to them( O!iven that product differentiation across the brands is difficult in this segment- it is the services that )ill ma'e a difference( And rightly so- considering that the dairy segment has long"distance runners such as Amul- ?other Dairy- =estle and Britannia( !opaljeeLs dairy segment

is an estimated Rs #$$ crore business and the company e pects to double this by end of #$$7( Also on the anvil are innovative products such as drin'ing yoghurt and flavoured mil'( !opaljee is also loo'ing to re"introduce its table"butter in the mar'et )ith a more contemporary pac'aging( ?ean)hile- the company is loo'ing to boost its e ports from Rs /$ crore in the last fiscal to about Rs B$ crore in the current fiscal( Intensifying e ports in the present mar'ets- besides tapping ne) frontiers( !opaljee e ports its full mil' po)der- casein- demineralised )hey po)der and s'immed mil'( At present- the company e ports to the 54- !ermany- 4outh"East Asia- 3est Asia and Africa( It is loo'ing to enhance its presence in these mar'ets and loo' at ne) mar'ets(

;UALITY CONTROL AT GOPALJEE .he &uality control standards have been made stringent to ensure supply of good &uality mil'( An instant sodium meter has been installed in Puality +ontrol 1aboratory for rapid assessmentJdetection of neutralisers or al'aline adulterants 0if any2 added to mil' and mil' products by unscrupulous elements( For detection of contaminants & pollutants in mil'- a !as 1i&uid +hromatogram has also been installed( For further up"grading the &uality control )or'ing follo)ing testing instruments have been purchased by !opaljeeH ?il'o 4can M *DDB Electronic ?il' .esting +entrifuges Potentiometric .itractor )ith ,arl Fischer attachment(

Processing of ?il'

.he installed capacity of the plant )as for processing 7 la'h litres of mil' per day( .he !opaljee is processing about D(7$ la'h litres of mil' per day(

CONCLUSION T5+ U4! (+ I'/$+)! '0 )6)$+'+!!9 As India enters an era of economic reformsagriculture- particularly the livestoc' sector- is positioned to be a major gro)th area( .he fact that dairying could play a more constructive role in promoting rural )elfare and reducing poverty- is increasingly being recogni<ed( For e ample- mil' production alone involves more than 6$ million producers- each raising one or t)o co)sJbuffaloes( +o) dung is an important input as organic fertili<er for crop production and is also )idely used as fuel in rural areas( +attle also serves as an insurance cover for the poor households- being sold during times of distress( S-44,% 7)"/5+! (+7)'(9 Efforts to increase mil' production by dairy farmers are strongly influenced by the degree to )hich demand signals are transmitted through the mar'eting system( +ooperatives have played an important role in transmitting the message of urban mar'et demand to them( 4ince the demand in the urban scenario is rapidly increasing so is the supply generated by the farmers( S-$4,-! /)4)/ "%9 Further- the ne) dairy plant capacity approved under the ?il' & ?il' Products Order 0??PO2 has e ceeded *$$ million lpd( .he ne) capacity )ould surpass the projected rural mar'etable surplus of mil' by about /$ per cent by #$$7 AD(

T5+ D#6'! (+ T+/5'#,#0 /), 0)4!9 4everal areas of the dairy industry can be strengthened by the induction of state"of"the"art technologies from overseas( .hose )ho bring in ne) technologies or sign joint ventures )ith foreign companies stand to benefit the most( .o ma'e the best out of the present situation- the follo)ing areas re&uire immediate remedial action on the part of dairy entrepreneursH Ra) mil' handling needs to be upgraded in terms of physico"chemical and microbiological attributes of the mil' collected( .he use of clarification and bactofugation in ra) mil' processing can help improve &uality of the mil' products( Better operational efficiencies are needed to improve yields- reduce )aste- minimi<e fatJprotein losses during processing- control production costs- save energy and e tend shelf"life( .he adoption of !ood ?anufacturing Practices 0!?P2 and 9A++P )ould help manufacture mil' products conforming to international standards and thus ma'e their e ports competitive( 1atest pac'aging technology can help retain nutritive value of pac'aged products and e tend their shelf"life( For proper storage and

transportation- cold chain needs to be strengthened( !ood scope e ists for value"added products li'e desserts- puddingscustards- sauces- mousse- stirred yogurt- nectars and sherbets( .hree aspects of India%s modern dairy sector are particularly note)orthy(

A vast mar'et for dairy products is being built as disposable incomes increase( Its focus is the increasingly affluent middle class- numbering some D$$ million N almost the population of the 5nited 4tates N )hich is confined to )ell"defined urban poc'ets and is easily accessible( ?il' occupies pride of place as the most coveted food in the Indian diet- after )heat and rice( ?il'"based s)eets are a culinary delight in all homes throughout the year( .he mil' production is pre"dominantly rooted in the cooperative system( ItLs focus is on the small rural farmer having one or t)o co)sJbuffaloesyielding #"D litres of mil' per animal( .his system is the basis of Operation Flood- the )orld%s largest dairy development program( .he preferred dairy animal is the buffalo( 4ome B7 per cent of the )orld buffalo mil' is produced in India( It has D$ per cent higher total solids compared to co) mil' N an average of *BC vs( *#C for co) mil'( ;alued for its high fat content 06C vs( D(7C2- it is also high in calciumphosphorus- lactose and proteins( Buffalo mil' is the delight of the mil' processor for its more profitable handling(

Potential for further gro)th Of the three ALs of mar'eting " )8) ,)1 , "%, )//+4")1 , "% )'( )&&#$()1 , "% Indian dairying is already endo)ed )ith the first t)o( People in India love to drin' mil'( 9ence no efforts are needed to ma'e it acceptable( Its availability is not a limitation either- because of the ample scope for increasing mil'

production- given the prevailing lo) yields from dairy cattle( It leaves the third vital mar'eting factor affordability( 9o) to ma'e mil' affordable for the large majority )ith limited purchasing po)erQ .hat is essence of the challenge( One practical )ay is to pac' mil' in small &uantities of #7$ ml or less in polythene sachets( Already- the glass bottle for retailing mil' has given )ay to single"use sachets )hich are more economical( Another viable alternative is to sell small &uantities of mil' po)der in mini"sachetsade&uate for t)o cups of tea or coffee(

ANNE<URE D+7)'( )'( !-44,% &#$ 7 ,* )'( 7 ,* 4$#(-/"! ?il' and mil' products constitute an integral part of the daily diet of all Indian households- )ithout e ception- across all regions and all social and economic categories( 9o)ever- consumption levels vary considerablydepending on income levels( Per capita availability of mil' in India is approaching the nutritional norm- but consumption of mil' and mil' products is yet to reach its per capita potential( Rising incomes country)ide and the high disposable incomes of the top #$C of the urban Indian population- are rapidly changing mil' consumption patterns( End use of the national mil' output is a measure of the diverse household preferences and priorities in the consumption of mil' and mil' products *2( T)1,+ 1. End uses o milk.

Product 1i&uid mil' Butter ?il' po)der +ream Ice cream !hee#

Percentage of .onnes total mil' output 0R *$B2* 0C2 DD(B# /(:B *(>/ $(D6 $(D6 #$(># /7($ B(7 #(B $(7 $(7 #:($

Dahi ,hoa +hhanaJpaneerJcheese Others

7(#D /(:B *(/> *(#6

6($ B(7 #($ *(6

?il' and mil' products are both income and price elastic in rural as )ell as urban India 0more so in rural2A the demand elasticity estimates of the Indian dairy industry for mil' and mil' products combined are *(B7 in rural and *(*7 in urban India 0Datta and !anguly #$$#2( E penditure elasticity of demand for mil' and mil' products for the lo)er income class in India is considerably greater than t)o and therefore- rising incomes country)ide )ill maintain healthy demand and robust demand gro)th in the dairy sector( Demand forecasts for mil'- based on differential gro)th rates of the !DP for the period up to #$#$- are presented in .able #( T)1,+ 2. !emand orecasts or milk "###$"#"#.

Product ?il' ?il' ?il'

!DP gro)th 0C2* #$$$ / 7 6 6#(/$ 67(D$# :*(D$

#$*$ >7(B$ *$D(6$ *##($$

#$#$ *#B($$ */#(6$ *:#(:$

*( !DP and national income have both been gro)ing at the rate of bet)een 7 and BC over the past five years( #( Actual production e ceeded the forecast in #$$$(