Indian Dairy Industry (& Potential For Lactose Free Products)

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Landscaping the Dairy and Lactose Free (LI) Market in India
Information Flow
Dairy & Lactose Free Products Potential Market Play
Dairy Market Macro Scenario
Market Dynamics
Key Players & Their Product Portfolio
Consumer Behaviour Milk Products
Lactose Intolerance
Definition & Types of Lactose Intolerance
Incidence
Consumer Behaviour Lactose Free Products
Key Players
Ingredient makers
Ready to consume products
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9/25/2014 Indian Dairy & Lactose Free Market
www.indiabusinessreports.com
Potential Market Play
Scope of Opportunity
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Opportunity Mapping
$ x bn
Milk / Dairy Products
$ x bn, x% growth
Organised: $ x bn
Dietetic Agents /
Supplements
$ x mn; x% CAGR
Protein Supplements
$ x mn; x% CAGR
Infant Formula
$ x mn; x% CAGR

Other Nutrients
$ x mn; x% CAGR
Digestive Enzymes
All Enzymes
$ x mn; x% CAGR
Lactose Free product market would be miniscule of the total market, hence an opportunity;
The Lactose Free market size in Asia Pacific region (of which India is the part), was just $ x
mn in 2013 (source: Euromonitor)
Source: National Dairy Development Board; AIOCD Pharma Data, 2012
Milk / Dairy Products Landscape
Global Milk Production Split
6
17.4%
16.3%
12.6%
6.6%
5.7%
5.0%
4.6%
4.6%
4.3%
3.4%
2.5%
2.0%
1.8%
1.8%
1.7%
1.6%
1.5%
1.5%
1.5%
1.3%
1.2%
1.1%
Rest of World
India
USA
Other EU
China
Pakistan
Brazil
Russia
Germany
France
New Zealand
UK
Turkey
Poland
Netherlands
Ukraine
Mexico
Argentina
Italy
Australia
Canada
Japan
Global milk production around x Mn T; India largest country in terms of
milk production; lags behind in consumption
Source: Global Dairy Farmers, 2010 data
Global Per Capita Milk Consumption
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India lags behind all the developed countries; much better than China
Source: National Statistics; FAO; IMF
Indian Macro Scenario >>> Overview
Current Indias population is 1.25 billion
Estimated to reach 1.53 billion by 2020

x% of world milk production in India
Milk production estimates for 2012-2013 are 132.7 mn tonnes and estimated to reach 190 mn
tonnes by 2015
Per capita availability in India is 300 gm / day (350 by 2020); above global average, but well below
the consumption level in developed countries
India is ranked 18 in the world exports and its share is 1.6%

Total size of the Indian Dairy Industry is around $ x billion
Around $ 15 billion is organised and remaining is unorganised (largely fluid milk & butter)
By 2020, Indian dairy organised industry is estimated to be $ 24 billion; total industry size would be
around $ 140bn, including unorganised segment
Today 31% of milk sold is branded; by 2020 it is likely to be 50%

Milk production has increased on an average by x% y-o-y during last two decades
(1991-92 to 2010-11)
WPI for milk increased by 7.2% in 2012-13 vis--vis 2011-2012

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Source: Publically Available Data
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Top 7 milk producing states contributes more
than x% of milk production
Per capita consumption varies significantly
across various states
State Production
(Mn. T.)
Production
(Mn. T.)
Population
(mn)
Per Capita
(Kg / Yr)
All India 132.7 132.7 1200 110.6
Uttar Pradesh 18.0% 23.9 199 120
Andhra Pradesh 8.8% 11.7 84 139
Rajasthan 8.8% 11.7 69 169
Punjab 8.7% 11.5 28 412
Gujarat 7.7% 10.2 60 170
Maharashtra 6.9% 9.2 112 82
Madhya Pradesh 6.3% 8.4 72 116
Bihar 5.5% 7.3 103 71
Haryana 5.3% 7.0 25 281
Tamil Nadu 5.2% 6.9 72 96
Karnataka 4.2% 5.6 61 91
West Bengal 4.0% 5.3 91 58
Kerala 2.3% 3.1 33 92
Orissa 1.5% 2.0 42 47
Jammu & Kashmir 1.4% 1.9 12 155
Jharkhand 1.4% 1.9 32 58
Uttarakhand 1.1% 1.5 10 146
Himachal Pradesh 0.8% 1.1 7 152
Chhattisgarh 0.8% 1.1 25 42
Assam 0.7% 0.9 31 30
Delhi 0.3% 0.4 17 23
Goa 0.1% 0.1 1 95
Manipur 0.1% 0.1 3 44
Meghalaya 0.1% 0.1 3 44
Indian Macro Scenario >>> Milk Consumption
Source: National Dairy Development Board, and GOI
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Product
Organised Market
Value ($ bn)
Growth
Rate
Remarks
Liquid Milk 11 20%
Dairy cooperatives have a major presence in this segment e.g. Amul, Verka (Punjab),
Nandini (Karnataka), Aavin (TN), Saras (Rajasthan). Private players like Hatsun Agro,
Creamline Dairy also have good market share in liquid milk
Milk Powder /
Sweets / Dairy
Whitener
0.8 10-15%
In Dairy Whitener, Amul is a leader with 45% share, followed by Nestle at 23%,
Britannia at 5%, and others (Dynamix Dairy, Sterling Agro, Harayana Milk Foods,
Mohan Foods, Modern Dairy, K Dairy)
Ghee 0.5 8-10%
Amul and Sagar are two well-known brands. Other strong regional brands Saras,
Verka, Nandini, and Madhusudhan
Ice Cream 0.3 20%
70% ice-cream market is controlled by organised players. Amul (25%), Kwality (15%),
Vadilal (10%) and others (Mother Dairy, Hatsun, Dinshaw, Naturals and many more)
Butter 0.2 8%
Amul is leader with 80% MS. Other strong regional players are Mother Dairy, Verka,
Punjab Dairy, Vijaya etc.
Dahi 0.2 20%
Karnataka Dairy Co-operative (Nadini) is the leader in the pouch dahi, while Amul is
leader in set curd segment. Other players are Mother Dairy, Nestle, Britannia and
Parag
Cheese 0.2 25%
Processed cheese as 70% share of the total cheese sold. Key players are Amul, Vijaya,
Verka, Vadilal, Britannia, Kraft, Dabon and Danone.
Flavoured Milk 0.2 20%
Amul is the leader with 75% share. Other brands are Mother Dairy (7%), Verka,
Nandini, Vijaya, Saras etc.
Paneer 0.06 10-12%
Amul share is around 50%. Share of Mother Dairy, Milkfed have 20% each. Reliance
has also entered this space
Source: National Dairy Development Board
Market Scenario >>> Category Wise Market Size
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Company
Condensed
Milk / UHT
Ghee
Milk
Food
Cheese Paneer Butter Whey Yoghurt
Ice
cream
Milk
Powder
Flavoured
Milk
Lactose
Amul
ADF Food
Britannia
Dynamix
Heritage Foods
Herman Milk Foods
Hatsun Agro
Mother Dairy
Mahaan Foods
Parag Foods
Vadilal
VRS Foods
Vidya Dairy
Kraft Foods
Livon
Nestle
Danone
Macro Environment >>> Key Companies Product Portfolio
Macro Scenario >>> Growth Drivers
The country's dairy market will continue to grow at about x% annually till
2019-20
The market share of value-added products is likely to increase to 31% from the current
21% during this time period
In addition to milk, other categories will also drive growth
The cheese production is increasing by 10-12% by volume and 16-17% by value
Similarly ice-cream industry is growing by 12-15% with per capita consumption of around
250 ml (in-significant compared to global standards)
60% ice-cream market controlled by the organised players
UHT milk consumption will grow by 15-20%, though its base remains smaller
The key factors driving growth are
Increased consumer interest in higher protein diets
High affordability due to growing disposable income & rising awareness
Availability of dairy through channels such as organised retail and food service segments
Concern over the quality of the lose milk
30% of dairy products bought at modern stores compared to just 18% in 2007-2009
Globally this figure is much higher

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Source: Publically Available Data
Structure of Dairy Industry in India
Dairy Structure and Key Players
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Indian Dairy
Industry
Organised
Private Dairies
(National)
Private Dairies
(international)
Cooperative
Societies
Government
Unorganised
Key national players
Aarey Milk Parag
Aravind Foods Mahan Foods
Britannia Vadilal
Dynamic Dairy Vidya Dairy
Mother Dairy Gowvardhan
VRS Foods
International
(Existing)
International
(New)
Nestle Arla Foods
Danone Land O Lakes
Inc.
Hatson Coke
Fonterra Pepsi
Arla Foods
Kerry Group
Schreiber Foods-
Dynamix
Number of milk producers cooperative unions x
Number of local dairy cooperatives x
Number of state cooperatives x
Share of unorganised sector in dairy production x%
Cooperatives control the supply chain linkages in the milk
industry; they account of the x%milk processed in India
Indian Dairy Industry Supply Chain
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Inputs for
Dairying
Milk
Production
Milk
Collection
Chilling &
Bulk
Cooling
Transportation
of Chilled Milk
Processing
&
Packaging
Marketing &
Distribution
Consumer
Large Scale Farmers
Medium Scale Farmers
Small Farmers
Fodder Farming
Animal Feed
Veterinary Aid
Labour
Cooperative
Societies
Milk Aggregators
Chilling Centre at
Village Level
Bulk Cooling at
District Level
Refrigerated Vans
Insulated Milk
Tankers
Cooperative Plant
Private Plant
Govt. Plant
Own Retail Outlets
Supermarkets
Any Retail Outlets
Unorganised Sector
Local Milkmen
Confectionaries /
Restaurants
Value Added
Products
Long supply chain means large gap between cost or production & price to consumer
Cost of production, in India, is around $ x/kg; consumer price is around $ y/kg
Indian Consumer & Milk
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Going to a dairy
farm to buy milk
Lose milk being
delivered at home
Buying pouch milk at
a corner shop
Buying high grade
milk at a mall
With this evolution, market for other dairy products also started to grow faster
Evolution of Milk Purchase by Indian Consumers
Indian Consumer Spoilt of Choices
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Lose / open milk
Pouch Milk UHT Milk
Flavoured Milk
Homemade Yogurt Packed Yogurt Flavoured Yogurt
Frozen Yogurt
Gradually Indian consumer is evolving and is open to explore newer alternate options
Indian Consumer Attitude to Milk
Milk is ingrained very deep in the Indian culture
Its use ranges from for various religious practices to everyday use
Even today, among large sections of masses, cow is a very
revered animal. And as they say:
We should take care of the cow as the cow takes care of us.
Indian family attaches many do good properties with milk
At all levels physical, mental and spiritual
So a mother will insist that her child eats a glass of milk before going to
school, even if s/he miss out on other breakfast
Care giver of a patient will insist that s/he drink milk for sure
A fasting person will either drink milk or eat products based on it only
Thus, in Indian consumer opinion, a milk can do no harm

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Milk has an exalted status in the Indian vegetarian diet; it is superior to other food items
Dairy contributes to 16% spend on food
18% in urban areas and 15% in rural areas
The share of milk and milk products in protein intake is 9% in rural
India and 13% in urban India
It was above the national average in North Indian states
Haryana (rural: 25%; urban: 20%)
Punjab (rural: 23%; urban: 22%)
Rajasthan (rural: 18%; urban: 17%), and
Gujarat (rural: 15%; urban: 16%).
As affluent level rises, contribution of milk and milk products to
protein intake increases
From 5% in the lowest to 18% in the highest class, for urban areas
From 3% in the lowest to 15% in the highest in the rural areas

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In line with the trend, contribution of milk for protein intake is highest in high milk producing states
Milk Key Component in Indian Consumer Diet
Source: National Sample Survey Nutrition Intake
Milk is purchased everyday
Though, people who buy UHT milk, buy supply for 2-3 weeks at one go
Milk being a staple everyday use product
High brand loyalty >>> very reluctantly people buy another brand
No role of advertising or branding
Other milk products, like butter or Dahi, people do buy for 2/3 days to a
week together
For these products also, they have their fixed / preferred brands
Other than national brands, lot of regional brands are also in the market
When it comes to other dairy products (yogurt, cheese, flavoured milk
etc.), then people do get influenced by
Company / product brand name
Packaging
Advertising
Online purchase of grocery products (including packed dairy products) is
slowly gaining traction

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Buying milk is like a xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Indian Consumer Dairy Products Purchase Behaviour
Lactose Intolerance in India
What is Lactose Intolerance
Lactose Intolerance is a disorder consisting of an inability to
digest milk and milk products
Absence or deficiency of lactase results in an inability to hydrolyze
(break down a compound by chemical reaction with water) lactose
There are three types of lactose intolerance
Primary lactose intolerance
Normal result of aging for some people
Secondary lactose intolerance
Result of illness or injury
Congenital lactose intolerance
Condition you're born with
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Type How it happens Symptoms
Primary
Lactose
Intolerance
Lactase concentrations are at their greatest shortly after
birth and rapidly decline after the usual age of weaning.
The timing and rate of this decline is genetically
determined. Primary lactase deficiency has a higher
prevalence in those ethnic/geographical groups whose
ancestors did not drink milk as a nutrient. It is one of
the most common type of lactose intolerance
Bloating, Pain or cramps in the lower belly.
Gurgling or rumbling sounds in the lower belly.

Gas. Loose stools or diarrhoea. Sometimes the
stools are foamy. Throwing up.
Solution is usually dietary changes
Secondary
Lactose
Intolerance
It is acquired intolerance and is transitory. It can occur as
the result of any gastrointestinal illness that alters the
nature of the gut mucosa. This is common in children
with rotaviral (and other infectious) diarrhoea.
Giardiasis, cryptosporidiosis and other
parasitic infections of the proximal small intestine often
lead to lactose malabsorption.
Flatulence, dyspepsia, abdominal distension,
stomach rumbling, Gas.

Solution ranges from diet changes to taking
digestive enzymes regularly
Congenital
Lactose
Intolerance
Also called alactasia, it is the life-long absence of lactase.
This is an extremely rare condition that is apparent at
birth, with the development of persistent diarrhoea soon
after milk is introduced. Children with alactasia have
otherwise normal intestinal
mucosa. This condition has been diagnosed in less than
50 people world-wide
Constant diarrhoea during early childhood
Primary Lactose Intolerance xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Mapping Different Types of LI
Key findings of two clinical studies
One done in North India (at AIIMS, on 124 subjects) and
Another in South India (at Medical College Hospital, Trivandrum and
JIPMER Hospital, Pondicherry, on 60 subjects)

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For South India research, numbers marked with asterisk are lactose intolerant; they total up to 40,
indicating 66% intolerance
For North Indians, though overall lactose intolerance was just 27.4%, it was higher among 31-50 yrs and
> 70 yrs segment
Lactose Intolerance in India >>> Clinical Studies
Source: Excerpts from original research report
Similar Findings From the Previous Studies
Earlier findings of the same research team were re-confirmed
14.9% of lactose intolerance among Punjabi pregnant and non-
pregnant women
Among non-Punjabi women it was 34.8%

In another study, they found lactose intolerance at 27.1% among
North Indians

Another earlier study on Indians and Pakistanis residing in Canada also
indicated lower incidence of lactose intolerance
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Incidence of Lactose Intolerance in India
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Trivandrum
(66.6%)
Pondicherry
(66.6%)
Hyderabad
(50%)
Mumbai
(62%)
Delhi
(27.8%)
Some regions of India xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Source: IFCN Report
Global Incidence of Lactose Intolerance
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Overall Lactose intolerance in India is in the range of 40-50%
Source: http://en.wikipedia.org/wiki/File:LacIntol-World2.png
Global Lactose Free Market Size
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Region 2011 2012 2013 2014 2015
World 9097.4 9924.5 10859.5 11900.2 13194.2
North America 3775.6 3953.4 4138.6 4327.0 4505.0
Western Europe 2619.1 2743.5 2860.4 2974.4 3086.0
Latin America 1162.9 1526.5 1985.0 2536.3 3344.8
Eastern Europe 844.9 964.7 1100.4 1251.5 1405.8
Asia Pacific 345.8 370.7 398.7 429.3 462.7
Australasia 196.4 206.0 214.1 222.1 230.5
Middle East and Africa 152.7 159.8 162.4 159.6 159.4
India would be xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Source: Euromonitor
Lactose Intolerance Awareness in India
Low awareness about the disease, though very high
awareness about the symptoms
Consumers narrate high incidence / prevalence of lactose intolerance
related symptoms like bloating, gas, heaviness, stomach pain etc.
However they attribute these symptoms to gas, acidity, indigestion or
chronic gas & acidity
For them primary source of these symptoms is fatty / oily food, irregular
meal habits, stress or other associated reasons
Hence the treatment they most often adopt is home remedies / OTC
antacids / ayurvedic remedies, without so much focusing on the diet part
When the gas & acidity problem persists, they visit the doctor
However, in most cases doctors prescribe digestive enzymes (with or
without Lactase), but dont mention the reason lactose intolerance

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Possibly high incidence, low awareness, leading to lesser focus on it
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Gas + Stomach Pain
Burping
Flatulence
Heaviness
Gas + Acidity + Headache
Gas + Acidity
Acidity
Gas
Chronic Cases Handled by Doctors Per Week
Fig in %
In a previous study, it was found that large number of chronic cases of above
symptoms were seen by the doctors (GP/CP/specialists); many more never visit
doctors, just keep trying things on their own
Sample: 245 doctors
Average No. of patients with LI related symptoms
Digestive Health Treatment Continuum
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Traditional &
Ayurvedic
Digestive pills
Gastric
OTC Medicines
Self treatment Doctors prescription
MEDICINAL
majority
Digestive enzymes clearly comes under doctors prescription domain; they are the
preferred choice of doctors for chronic cases
First use of enzymes is through doctors; but, once the doctor prescribes an enzyme,
consumers continue to take it on their own for a long period
33
Active energy &
Mental alertness
Fortification and
strength via
protein supply
Building better
digestive capacity
Reduces
negativity
Removes
discomfort
Immediate relief
Combats the effects of
an ageing, sluggish
digestive system
Enables digestion
of complex
substances eg:
fats
Chronic cases >>> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Consumer Perception of OTC Drugs & Enzymes
Digestive Enzyme and Dietetic Agents
Digestive Enzymes
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Company (Value, $ mn, MRP) Brand 2010 2011 2012 CAGR

GROSS TOTAL 53 58 73 17%
ARISTO PHARMACEUTICALS PVT.LTD ARISTOZYME - ARI 10 10 13 16%
UNICHEM LABORATORIES LTD UNIENZYME - UCL 6 6 9 24%
RAPTAKOS, BRETT & CO. LTD. NEOPEPTINE - RPK 6 6 9 24%
ABBOTT INDIA LTD. CREON - ABB 4 6 7 24%
SHREYA LIFE SCIENCES PVT. LTD DIGEPLEX - SLS 4 4 5 12%
BIOLOGICAL E LTD BESTOZYME - BIE 2 2 3 22%
ELDER PHARMACEUTICALS LTD ENZAR - ELD 2 2 3 10%
SUN PHARMACEUTICAL INDUSTRIES LTD PANLIPASE - AML 1 1 2 39%
MEDLEY PHARMACEUTICALS XYMEX - MEL 2 2 2 8%
RANBAXY LABORATORIES LTD PEPFIZ - RBX 2 2 2 -2%
None of the top 10 brands have lactase as one of the ingredient; hence opportunity to explore; as
mentioned earlier, enzymes are prescribed for chronic cases; patients take them only on doctors
advice
Source: AIOCD Pharma Data
Dietetic Agents >>> Protein Supplements
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ABBOTT INDIA LTD. PEDIASURE - ABB 4 7 11 61%
BRITISH BIOLOGICAL B PROTIN - BRI 8 8 10 14%
ABBOTT INDIA LTD. PEDIASURE COMPLETE - ABB 5 8 10 35%
ZYDUS CADILA GRD - ZYD 5 7 9 28%
HEINZ INDIA LTD COMPLAN - HEI 3 5 9 70%
BRITISH BIOLOGICAL D PROTIN - BRI 7 7 9 12%
RAPTAKOS, BRETT & CO. LTD. THREPTIN - RPK 3 4 6 26%
ALBERT DAVID ALAMIN SN - ALB 3 3 4 11%
BRITISH BIOLOGICAL PRO PL - BRI 3 3 4 18%
GALPHA LABORATORIES LTD PROTIRON - GAL 0 1 3 246%
Among top 10 brands, none is lactose free; however in this segment there are few Soya based
products, like Prosoyal (FDC), Isomil (Abbott); they are positioned as supplements and an alternate to
milk; Isomil is positioned for kids; most of these supplements are also taken on doctors advice
Dietetic Agents >>> Infant Nutrition
37
Products like Zerolac, Simyl, Nusobee Soya (not in top 10) are targeted at infants who are
milk intolerant or lactose intolerant; the category is largely doctor driven; all the top
brands are doctor marketed

WOCKHARDT LTD DEXOLAC 1 - WCK 6 8 10 29%
DANONE DEXOLAC - DANO 7 8 10 20%
RAPTAKOS, BRETT & CO. LTD. ZEROLAC - RPK 5 6 9 34%
ABBOTT INDIA LTD. PEDIA COMP - ABB 4 9 8 43%
DANONE NUSOBEE CASEIN - DANO 3 4 7 47%
RAPTAKOS, BRETT & CO. LTD. LACTODEX - RPK 3 4 5 26%
FDC LTD. SIMYL MCT - FDC 2 3 4 37%
DANONE EASUM - DANO 2 3 4 39%
Dietetic Agents >>> Other Nutrition
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Ensure is the only product, among the top 10, which is lactose free and gluten free; most of the
brands are for people with deficiency or recovering from some illness; hence again used based on
doctors advice

ABBOTT INDIA LTD. ENSURE - ABB 4 6 7 33%
ABBOTT INDIA LTD. HEPTRAL - ABB 0 3 5 354%
ALEMBIC LTD SHARKOFERROL - ALE 3 3 4 5%
ABBOTT INDIA LTD. GLUCERNA - ABB 1 2 3 51%
WOCKHARDT LTD SAMMY - WCK 3 3 3 2%
MANKIND PHARMACEUTICALS LTD. ARGIPREG - MKP 0 1 2 214%
MEYER ORGANICS PVT. LTD OVACARE FORTE - MEY 0 2 2 546%
ABBOTT INDIA LTD. MAMA S BEST - ABB 0 1 2 52%
SUN PHARMACEUTICAL INDUSTRIES LTD ADESAM - AML 1 2 2 19%
MEYER ORGANICS PVT. LTD OLIGOCARE - MEY 1 1 2 7%
Different Companies in Lactose Free Domain
Ingredients >>> Richcore Lifesciences
Richcore Lifesciences
Bangalore based, Richcore is an application
research oriented biotech company
dedicated to developing sustainable and
eco-friendly enzyme solutions that improve
the quality of life and help conserve Food,
Water and Energy.

Richcores lactase enzyme, RichLacto - a
form of lactase enzyme, enables conversion
of lactose into more easily digestible
glucose and galactose thereby eliminating
ill-effects arising due to non digestibility of
lactose

Richcore's RichLacto enables hydrolysis of
lactose in milk making milk sweeter and
easily digestible by the lactose intolerant
population.

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Richlacto produces milk and other dairy
products that are lactose free bringing a larger
population under the umbrella of consumers of
dairy products

Richlacto can be added to milk at home itself
to produce lactose-free milk

Richlacto treated milk, when used for making
dairy products like ice-creams, eliminates the
possibility of sandiness

Increase sweetness: Richlacto produces
glucose and galactose as end products that are
60% sweeter than lactose which makes the milk
naturally sweeter. Thus lesser amounts of
sweetener is required
Ingredients >>>
Novozymes A/S
A Denmark headquartered company, its
a industrial biotechnology company
Its core business focus is industrial
enzymes, microorganisms, and
biopolymers.

It set up liaison office in India in 1983,
and in 2013, it started High throughput
screening in R&D and was recognized as
top Bioindustrial Company in India by
Biospectrum-ABLE for the 6th time

Lactozym Pure - Novozymes Lactozym

Pure increases your potential customer
base while improving your customers
ability to savor milk products. This
exceptionally pure, cost-effective
technology reliably eliminates lactose
based on natures know-how.

Its India is also located in Bangalore

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Lactozym Pure - Making milk digestible
Naturally good business

Lactozym Pure allows increased process
flexibility as Lactozym Pure is available in a
variety of formulation strengths, while the
higher product purity also enables improved
filterability in UHT processes.

Lactozym Pure primarily degrades lactose into
glucose and galactose, making the products
naturally sweeter. Ice cream additionally boasts
a smoother, less grainy mouthfeel as no lactose
crystals form in treated products.
Ingredients >>>
Kerry Group
Set-up in 1972, it is an Ireland
headquartered company with a revenue of
5.8 billion

Company provides the most innovative
portfolio of Taste & Nutrition Systems and
Functional Ingredients & Actives for the
global food, beverage and pharmaceutical
industries. Our consumer foods division,
Kerry Foods, is also a leading consumer
foods processor and supplier in selected EU
markets.

Kerry Ingredients India is the leading
supplier of functional ingredients, Dairy
Stabiliser blends & Davinci range of
speciality Beverage solutions.

Its two brands - Chees-Treme and Chez-
Tone, offers spray dried powders
manufactured from natural cheese, dairy
products and other functional ingredients.

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Last year Kerry Ingredients Pvt Ltd acquired
Lactose (India), a company listed on the BSE.

Lactose (India) Limited is an India-based
company engaged in the manufacturing and
trading of pharmaceutical products. The
Company produces lactose powder. The
Companys plant is located at Vadodara,
Gujarat.

Its 2012-2013 revenue was close to $ 7.8
mn, with net profit of less than $ 0.16 mn
Ready-to-Consume Products >>>
Valio Ltd.
Valio is owned by Finnish milk producers
and is the guardian of the healthy
Finnish lifestyle.

Valios vast portfolio of milk drinks,
cheeses, spreads, juices and functional
foods make up many of the most loved
brands in the Finnish marketplace. Sales
in Finland totalled 2000 million Euros in
2012.

For more than ten years Valio has
successfully developed and
manufactured lactose free products in
many markets and has successfully
licensed the technology to dairy
partners.

In India, it is present through its tie-up
with Cavinkare

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CavinKare its dairy portfolio comprises
milk, UHT milk, curds. Paneer, ghee and
others

With Valio technology, it has launched
Cavins Pro Health , a Probiotic curd (local
style thick yoghurt)

Bega Cheese Limited. & Pauls
An Australian company with 100 years heritage
with core expertise in cheese , with many
variants in its portfolio

The company was founded as a dairy co-
operative in 1899, and many of the current
owners of Bega Cheese are 100 plus dairy
farmers that supply milk to the factory which is
then turned into many of our famous Bega
cheddar cheeses.

Pauls has been making delicious dairy products
for 80 years. Pauls is Australias number 1 milk
and dairy brand

In India these brands are available through
iMBiz India Pvt Ltd, an importer

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iMBiz India Pvt Ltd specialises in import of
Branded Dairy Products such as Bega Cheese,
Pauls Milk Products and other FMCG processed
food items such as Baby food, fruit juice,
confectionaries etc.

Currently, Bega cheese and Pauls Zymil easy to
digest milk, are available in Kolkata only.

Its product range is - Pasteurized Creams,
Sterilized Creams, Whipping Creams, Reduced
Fat Creams, Milk Powder, Cheeses, Milk, Whey
Powders, Cream Butters, Margarines,
Condensed Milk

The Lactalis Groupe
Lactalis, a family-owned dairy group based
in Laval (Mayenne), in west of France.

It is the number 1 dairy group in the world.
Number 1 dairy and cheese group, number
1 milk collector and number 1 cheese
producer in Europe.

President (dairy product brand) is sold in
more than 145 countries and represent
more than 1.6 billion of turnover and
Galbani (cheese) is sold in more than 100
countries with 1.4 billion of turnover.

In India, it recently acquired Tirumala Milk
Products from PE funds & owners

45
Tirumala Milk Products (P) Ltd., established in
1998. It is one of the fastest growing private
sector enterprises in India

At the time of acquisition by Lactalis, company
turnover was around $ 250 mn. Lactalis paid $
275 mn for the acquisition

The companys lead brand is Gowardhan

Product range, besides milk, includes sterilized
Flavoured Milk, Lassi, Khova, Milk Cake, Mysore
pak, Panner,Ice creams, Buttter, Ghee and Milk
Powder
White Cub
A brand owned by the company -
Compassionate Choices Pvt. Ltd., based in
Gurgaon.

Company motto is India's very own Dairy
Free Ice cream. 100% Cholesterol Free |
100% Trans Fat Free

It offers range of three products dairy free
ice creams, frappes, and Sundaes

46
Benefits of White Cub
Dairy Free Icecream

A whole new concept of looking at foods.
E.g., milk need not be always the dairy
produce, rather it may be from interesting
stuff like Almonds, Coconut, Soy

It lets lactose intolerant people enjoy creamy
ice creams

It promises Zero Cholesterol, Zero Transfats
& abundance of Lauric acid, Minerals like
Calcium, Magnesium, Potassium, Iron,
Phosphorus and Zinc, Phytochemicals like
Saponin, Phytosterols and Phenolic acid and
Anticarcinogens like Genistein.
Few Known Food & Dairy Companies in South India
xxxxxxxxxxxxxxxxxx
Wide product portfolio
Cavinkare has presence across 6 segments Personal Care,
Professional Care, Food, Snacks, Dairy Products and Beverages
Dairy Portfolio
Milk, UHT Milk, Paneer, Diet Paneer, Curd, Milkshake and Ghee
Strategic Alliances
CavinKare has alliances in both personal care and consumer health
It has alliance with COTY Corporation (a French cosmetic company) it
markets Adidas and Jovan brands
It also has alliance with Haw Par Corporation for its well-known topical
analgesic brand Tiger Balm (earlier it was sold by Elder)
Company Revenue: close to $ 200 mn

48
xxxxxxxxxxxxxxxxxxxxxxxx
Wide product portfolio
Supplements across General Health, Womens Health, Childrens
Health, GI Health, Weight Management, Diabetes Management etc.
Well Known Brands
B-Protin, D-Protin, Kids Pro, Meno Pro, Pro Gurt and others
B-Protin and D-Protin are leading bands in their respective segments
General Health Supplements and Diabetic Supplements
Many of these brands enjoy good doctor equity, consumer equity and
trade equity
Company Revenue: around $ 18 mn

49
xxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Product Portfolio
Dairy Whitener, Skimmed Milk Powder, Agmark Certified Ghee, Butter,
Cooking Butter, Milk, Varieties of Curd, Paneer and Buttermilk through the
Brand Hatsun Milk & Milk Products
Key Brands are
Arakya: its milk brand with full cream, toned and double toned milk
Hatsuns: Ghee, Butter, Cooking Butter, Rich Curd, Lite Curd, Classic Curd,
Dairy Whitener, Skimmed Milk Powder, and Buttermilk
Arun: Ice cream
Dairy Ingredients: Milk Powder, Full Cream Milk Powder, Skimmed Milk
Powder, Dairy Whitener, Cream Powder, AMF, Butter Oil, Frozen Cream,
Ghee, Lactic Butter, Salted Butter, Unsalted sweet cream butter
Ibaco: Chain of ice cream parlours
50
xxxxxxxxxxxxxxxxxxxxxxxxx
Product Portfolio
Milk, Curd, Butter Milk, Flavoured Milk, Ghee, Paneer, Cooking Butter,
and Doodh Peda (a type of milk based sweet)
All the products are sold under the corporate brand name
With different product functional description
Company also has its own chain of parlours
They are also under Dodla name, and stock their entire product
portfolio; currently there are 100+ exclusive parlours
Company Revenue: little over $ 100 mn

51
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Product Portfolio
Milk, Milk Products, Ghee & Skimmed Milk Powder, Ice creams
All its products are sold under Jersey brand name
Jersey Milk: its milk has 9 sub-brands Fresh, Premium, Bandhan,,
Super, Rich, Gold, Healthy, FarmCow, and Slim,
Jersey Milk Products: Curd (including low fat curd), lassi, buttermilk,
paneer, cooking butter, flavoured milk, and swwets
Jersey Ghee: cow ghee, buffalo ghee, full boiled ghee and skimmed
milk powder
Jersey ice cream: wide range
Jersey Parlours:

52
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53
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54 9/25/2014 Indian Dairy & Lactose Free Market

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