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Distribution of Milk Products in Dehradun
An Internal Assessment Project for Introduction to Supply Chain Management
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Under the Guidance of Formatted: Font: Bold

Internal Guide

Dr Neeraj Anand

HOD and Professor

Department of Transportation

Submitted by : Group-2

Sharon Tess Jose

Uppalapati Krishna Vamsi

M. Sudheer Reddy

Lakshay Agarwal

Bharath R

Neenu Mohandas
 DECLARATION

I, hereby declare that this Project Report, entitled “Distribution Of Milk Products In Dehradun”
submitted by us to the University Petroleum and energy studies, in partial fulfilment for the
award of degree of Master of Business Administration under the guidance of Prof. Dr.Neeraj
Anand, is our original work and the conclusions drawn therein are based on the material
collected by ourselves.

The report submitted is our own work and has not been duplicated from any other source.

Place: Dehradun Candidate’s signature

Date: 11 November 2019 Name: Sharon Tess Jose

M.Sudheer Reddy

U. Krishna Vamsi

Bharath R

Neenu Mohandas

Lakshay Agarwal
ACKNOWLEDGEMENT

A successful project is the result of team work and coordination that includes not only the group
of developers who put forth the ideas, logic and efforts but also those who guide them. So, at
the completion of the project, I feel obliged to extent my gratitude towards all those who made
valuable contributions throughout our project.

We are thankful for all the knowledge guidance and support imparted by Prof. Dr.Neeraj
Anand to us who gave us valuable knowledge during the it period.

We also take the opportunity to express our sincere gratitude to each and every person, who
directly or indirectly helped us throughout the project and without anyone of them this project
would not have been possible.

The immense learning from this project would be indelible forever.

Date: 11 November, 2019 Name: Sharon Tess Jose

M. Sudheer reddy

U Krishna Vamsi

Neenu Mohandas

Bharath R

Lakshay agarwal
Distribution of milk products in
Dehradun
INDEX
INTRODUCTION 1

GLOBAL SCENARIO 2

INDIAN SCEENARIO 5

INTRODUCTION OF THE PROJECT 8

FACTS AND FINDING 9

ANALYSIS AND INTERPRETATION 17

SUGGESTION 25

CONCLUSION 26

REFERENCES 27

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Introduction

India with the complete milk production of 110 million tonnes is the topmost milk-
producing nation for as long as multi-decade now and represented about 15% of the world
milk production in 2010. The significance of dairy ventures in the national economy can
be measured from the way that the estimation of yield from milk gathering is most elevated
among all the agricultural commodities, representing almost one-fourth of the estimation
of yield from the agricultural sector. Dairying is one of the most significant methods for
giving job and dietary security to the rural masses. The animal's activities, among which
dairy cultivating prevails, utilize about 8.5 million laborers in the nation. Milk and milk
items represent 9.2 and 12.4 percent of protein admission in the country and urban zones,
individually, which is higher than the protein consumption through non-veggie lover
creature items.

The performance of the Indian dairy segment has been very lucrative. Milk generation in
India has risen from 17 million tones in 1950-51 to more than 109 million tones by 2008-
09. During the previous one and a half decades (1990-2006), milk generation has
developed at a pace of about 4% per annum versus a world development pace of 1.5
percent. The fares of dairy items expanded from Rs. 13.98 million of every 1990-91 to
Rs.6766.82 million out of 2005-06, while imports expanded from Rs.40.52 million to
345.66 million during a similar period. Consequently, as the net exchange parity of dairy
items has changed from negative to positive and the nation is currently a net exporter of
dairy items.
Global Scenario:

Steady growth in demand for dairy and unified items has prompted more significant levels
of innovation selection among the significant dairy delivering nations on the planet. The
worldwide dairy industry is foreseen to clock a turnover worth USD 335.8 billion of every
2014. With a Compound Annual Growth Rate (CAGR) of 5 percent, the industry is
required to create incomes worth USD 442.32 billion out of 2019

Adversely affected by the worldwide financial emergency of 2009, the dairy business
overall endured a significant misfortune. The development of milk production dipped
under one percent and the interest for dairy items backed off altogether during the period.
In any case, the industry is on the way to recuperation. Asia keeps on commanding the
worldwide dairy showcase. China, India, and nations in South East Asia represent a
significant bit of the worldwide dairy industry, however, milk supply in these districts has
not had the option to keep pace with the degree of developing interest. These business
sectors offer the gigantic potential for dairy organizations that are hoping to satisfy the
worldwide need for dairy items.
Worldwide milk yield in 2018 is evaluated at 843 million tons, an expansion of 2.2 percent
from 2017, driven by generation developments in India, Turkey, the European Association,
Pakistan, the United States of America and Argentina, yet halfway balance by decreases in
China and Ukraine, among barely any others. This expansion has come about because of higher
dairy crowd numbers alongside enhancements to drain assortment forms (India and Pakistan),
proficiency upgrades in incorporated dairy creation frameworks (Turkey), expanded yield per
dairy animals (the European Union and the United States of America) and upgraded usage of
inert limit and more appeal from the preparing division and imports (Argentina). Milk yield
decreases to a great extent originated from mechanical rebuilding procedures and downscaling
of little scale ranches (China) and diminished maker edges and homestead entryway costs
(Ukraine).
Over the locales, Asia enlisted the most noteworthy milk yield development by volume in 2018,
pursued Europe, North America. Milk yield extended in every single other area as well,
however by littler volumes. World fares of dairy products1 extended to 75 million tons (in milk
counterparts), an expansion of 2.1 million tons, or 2.9 percent from 2017, basically originating
from the United States of America and 1 See, the factual extension for a rundown of dairy
items. Argentina, yet additionally India, Uruguay, and Mexico. By differentiate, sends out
declined in various nations, in specific in the Islamic Republic of Iran. Over the primary dairy
items, in 2018, SMP enrolled the most elevated fare development (+8.6 percent), trailed by
spread (+7.5 percent), WMP (+1.7 percent) and cheddar (+0.8 percent). With respect to drain
powders, comprising of SMP also, WMP, send out availabilities were inexhaustible from
practically all significant worldwide providers. Huge supplies of SMP, held by the European
Union, the United States of America and India, additionally added to hoist worldwide supply
availabilities. SMP supplies of the European Union, given their age, were for the most part
viewed as less appropriate for human utilization. Notwithstanding prompt human utilization as
milk, powders were additionally in appeal from nourishment processors and makers, boosting
import request from certain nations, for example, Mexico.
Despite the fact that spread fares for the entire year extended, supplies were generally restricted
in the initial a half year.Worldwide supplies rose just when supplies from Oceania started
entering the worldwide markets, beginning from about July, when its milk creation season was
going all out. Spread import request by and by was strong, particularly from Asia, as
urbanization, rising pay and changing nourishment propensities made margarine request less
cost delicate. Cheddar sends out extended at a more slow pace in 2018, contrasted with that of
2017, reflecting import reductions of numerous shippers, including Australia and the United
States of America. A strong market, be that as it may, existed for high esteem cheddar items,
supported by rising buyer interest for particular cheddar assortments, likewise with geographic
marking. Universal dairy costs in 2018, estimated by the FAO Dairy Price Index, declined by
4.6 percent looked at to that of 2017, reflecting decreases in costs of all dairy items spoke to in
the Index, with the most noteworthy fall enrolled for SMP (- 5.6 percent), trailed by cheddar (-
5.2 percent), margarine (- 4.4 percent) and WMP (- 2.9 percent).
The worldwide stock interest adjusts of each ware, initiated by factors talked about above, are
good with these value developments. An extra factor that is essential of referencing on
universal dairy costs was the huge differentials that existed between the European Union and
Oceania on margarine, WMP and SMP costs. Costs for margarine and WMP in the European
Union drifted at more elevated levels than for Oceania, and that costs for SMP from Oceania
were higher than those from the European Union. Market division, related with shopper
inclinations furthermore, topographical nearness to business sectors, was believed to be chiefly
behind the value differentials.

Global milk output:

Output increased in key producing countries:

Considering milk yield crosswise over significant locales, Asia was essentially behind the
worldwide yield extension. Milk yield extended modestly in every one of the areas, including
Africa, Focal America and the Caribbean, Europe, North America, Oceania and South
America. In Asia, milk yield expanded to 346.9 million tons, up 3.9 percent from 2017, as
yields rose in India and Pakistan. In India, milk generation expanded by 5.6 percent in 2018,
driven by an extended dairy group and gradual, yet enduring, enhancements to drain assortment
frameworks and higher efficiency. Be that as it may, India's milk yield development in 2018
was somewhat lower than for the going before two years. This came about because of restricted
feed accessibility because of the underneath normal precipitation gotten during the storm. Milk
generation in Pakistan, the fourth biggest milk maker on the planet, has been ascending at
around 3 percent as of late, despite the challenges looked by dairy processors in gathering milk
from little scale ranchers who are dispersed over a huge landscape. Milk yield in China in 2018
is evaluated to have declined by 1.1 percent.

As of late distributed enumeration information for China demonstrated that milk yield during
2015-2017 has been one normal 15 percent underneath that of the first three years, for the most
part

credited to the continuous mechanical rebuilding process and downscaling of little scale
cultivates in perspective on the exacting natural guidelines sought after by the administration.
In Europe, milk yield expanded to 226.4 million tons in 2018, up 0.8 percent from 2017, with
higher yields in the European Union, the Russian Federation and Belarus, in part balance by a
decrease in Ukraine. Milk conveyances in the European Union arrived at 167.3 million tons,
or about 1.7 million tons increasingly, an expansion of 1.0 percent from 2017. The pace of
development of yield development could have been somewhat higher notwithstanding the 2018
summer dry spell that influenced pieces of Europe and the minimal decrease of dairy group
numbers. Milk yield in the Russian Federation expanded to 31.5 million tons, an expansion of
1.1 percent from 2017, as enormous scale dairy ranches started contributing more to yield,
particularly in light of higher milk yields that was satisfactory to remunerate decreases in the
little scale ranch part. Milk yield in Belarus stayed stable, parting from the pattern existed in
earlier years. A sharp decrease in imports of dairy items by the Russian Federation drove to a
collection of stocks and a decrease in farmgate costs. Fares to different goals, particularly to
China, expanded, helping the part to stay stable.

In Central America and the Caribbean, milk yield is evaluated to have expanded by 1.1 percent,
predominantly contributed by Mexico, while yield stayed stable somewhere else. Mexico's
milk yield kept on growing, also, in 2018 by 1.6 percent, as dairy costs remained stable and the
administration took further endeavors to modernize the business.

In Oceania, following two years of decays, milk yield expanded by 1 percent in the 2017/18
generation cycle (June to May), and further 1.8 percent from June to December in the 2018/19
generation season. New Zealand's milk yield extended by 4.4 percent, sufficient to counter a
3.8 percent decrease in Australia. New Zealand's yield extension profited by mellow
temperatures and great soil dampness, while Australia kept on having hotter climate conditions
and water lacks that prompted higher feed costs and expanded winnowing of dairy cows.

Worldwide milk creation was assessed at 650 million tons in 2013; it rose with a CAGR of 2
percent. In general, generation is anticipated to arrive at 732 million tons in 2019. Separated
from a couple of exemptions in Europe, for example, Russia and Ukraine, milk generation has
expanded fundamentally in practically every one of the nations around the globe. Cow milk
represents about 80 percent of worldwide milk generation. When contrasted with cow milk,
buffalo milk is created in fewer nations; it is assessed that in excess of 80 percent of the world's
absolute buffalo milk is delivered in India and Pakistan.

The North American dairy industry is commanded by the United States of America, trailed by
Canada and Mexico. In 2011, showcase incomes in the USA remained at USD 48,506.40
million. It is anticipated that the USA will lead the North American Free Trade Agreement
(NAFTA) alliance by timing incomes worth USD 56,851.60 million of every 2016. Brazil and
Argentina are the main milk acquiring nations in the locale, with Chile and Uruguay are
gradually developing as noteworthy supporters of the South America Dairy Industry.

Milk and partnered dairy items are one of the significant constituents of the animal husbandry
industry in Russia. In worth terms, Russia's dairy industry represents about 40 percent of the
gross result of animal husbandry. The Russian Federation is the fifth biggest milk producer,
internationally, after India, the United States, China, and Pakistan. Asia stays one of the most
different areas on the planet as far as financial development, with changing food consumption
preferences and relative accessibility of assets, both human and ecological. From being a
slowpoke and dairy items bringing in the country in the 1960s, today India has made some
amazing progress to get one of the main milk-producing nations on the planet. As it is
continually looking for independence, the Indian dairy industry attempted auxiliary changes
and milk creation expanded four times in the course of the most recent four decades
As indicated by the World Bank, long term demand for nourishment and dairy items is foreseen
to rise fundamentally, consequently bringing about value instability. The dairy segment is
particularly foreseen to encounter whimsical development in costs in the coming years. As
indicated by a World Bank Survey, creating and developing nations have generally added to
world riches development in the most recent decade. Albeit created nations had been the
significant donors till 2005, the period between 2000-2010 saw huge commitments from the
BRIC (Brazil, Russia, India, and China) locale. This ascent of these creating nations has
assumed an essential job in the development of the worldwide dairy part.

Production (Metric
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 1 United States 91.3 Formatted: Font: (Default) Times New Roman, 12 pt, Font
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2 India 60.6 Formatted: Line spacing: 1.5 lines

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3 China 35.7
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4 Brazil 34.3 Formatted: Font: (Default) Times New Roman, 12 pt, Font
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5 Germany 31.1
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6 Russia 30.3
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7 France 23.7 color: Text 1
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8 New Zealand 18.9
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9 Turkey 16.7 Formatted: Line spacing: 1.5 lines
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10 United Kingdom 13.9 color: Text 1
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Indian Scenario Formatted: Font: 12 pt, Underline, Font color: Text 1

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Dairy activities structure a basic piece of the rural Indian economy, filling in as a Formatted: Font color: Text 1

significant source of employment and income. India additionally has the biggest cattle
populace on the planet. Nonetheless, the milk generation per creature is altogether low
when contrasted with the other significant dairy makers. Additionally, the entirety of the
dairy production in India is expended locally, with most of it being sold as liquid milk.
Because of this, the Indian dairy industry holds gigantic potential for esteem expansion
and by and large improvement. As indicated by the most recent report by IMARC Group,
titled "Dairy Industry in India 2019 Edition: Market Size, Growth, Prices, Segments,
Cooperatives, Private Dairies, Procurement and Distribution", the dairy advertise in India
arrived at an estimation of INR 9,168 Billion of every 2018.

Alongside offering gainful business openings, the dairy business in India fills in as a
device of financial advancement. Keeping this in see, the Government of India has
presented different plans and activities that went for the improvement of the dairy segment
in the nation. For example, the "National Dairy Program (Phase-I)" means to improve
cow's profitability and increment the creation of milk extending and fortifying and
growing the country milk acquisition foundation and give more prominent market access
to the ranchers. Then again, the private interest in the Indian dairy area has likewise
expanded in the course of recent years. Both national and global players are entering the
dairy business, pulled in by the size and capability of the Indian showcase. The center is
being given to esteem included items, for example, cheddar, yogurt, probiotic drinks, and
so forth. They are likewise presenting imaginative items remembering the particular
prerequisites of the Indian purchasers. These players are additionally improving their milk
acquirement arrange which is further encouraging the advancement of the dairy business
in India. Looking forward, the market is required to arrive at an estimation of INR 21,971
Billion by 2024, displaying a CAGR of around 16% during 2019-2024

Demonstration Of Expenditure Amongst Urban and Rural Area’s

There is an upward trend in milk utilization in India, demonstrating a move sought after.
Somewhere in the range of 1983 and 2004, the portion of calories from milk in all out
nourishment calories expanded from 1.8% to 2.4% in the very poor pay gathering and from
8.6% to 9.2% in the high pay gathering. Investigation over a forty-year time span for all nations
too uncovers that the dietary vitality admission from dairy items expanded from 3.4% to 4.4%
Between 1993-94 and 2009-10, the level of family units expending milk likewise expanded
from 80% to 85% and from 66% to 76% for urban and country zones, separately.
Fig: Monthly Per Capita consumer expenditure on milk 2018-2019

Factors affecting milk price in India:

1. Ecological stress

Associative to the improvement in the nature of domesticated animals through the

crossbreeding, there has been an expansion in the helplessness of these creatures to different
maladies, including extraordinary ones. All the while, various illness control programs have
been started with a point of diminishing the dreariness and mortality. Endeavours have been
made to control sicknesses, similar to rinderpest, foot-and-mouth illness, hemorrhagic
septicaemia, dark quarter and Bacillus anthraces. In spite of the fact that rinderpest has been
killed from the nation, the commonness of different ailments keeps on being a significant issue.
Money related imperatives by and large hinder these ranchers' entrance to the sorted out
veterinary administrations regardless they depend on the customary treatment strategies.

2. Low hereditary capability of animals

India has one of the world's biggest domesticated animals populaces for example 185 million
dairy cattle, which is 16% of the total populace and 97 million wild oxen, which is representing
about 57% of the world bison populace and 16% of steers populace (GOI, 2002). Expecting 69
million breed-capable steers (62 million indigenous and 7 million crossbreds), per creature
every day milk yield was 0.92 kg for indigenous dairy cattle and 5.42 kg for crossbred cows
(Gandhi and Sharma, 2005). Normal efficiency of Indian bovine is just 987 kg/lactation as
against the world normal of 2038 kg.

3. Questionable maintaining policy

Beginning with 1970s, it depended altogether on crossbreeding and depended on import of

Holstein-Friesian and Jersey bulls and a couple of institutional crowd based little scale
offspring testing programs which leave high creating cows and wild oxen with ranchers outside
their review . One of the significant reactions of the crossbreeding program is that, after the
underlying spurt underway, the exhibition of crossbred dairy animals with different levels of
intriguing legacy is inclined to stagnation in the later ages. Thus, there is a need to build up
need-based scattered network reproducing programs with the inclusion of domesticated
animals makers and least yet precise account.
4. Lacking nutrient supply

Feed is the fundamental information factor for dairy generation establishing around 60-70% of
the expense of dairy creation. Sufficient supply of value feed and foods is basic for improving
efficiency of dairy creatures. In any case, insufficient feed asset has been one of the significant
imperatives in India; the nation is shy of dry feed by 11%, green feed by 28%, and concentrate
sustains by 35%.

The extension for raising ruminants on pastures/green searches is constrained in a great part of
the tropics, due to slow contracting of arable grounds and expanding water shortage. Thus, the
over-dependence on oat crop deposits as the chief feed assets, which are low in N, is there to
remain. In that capacity there is a need to create encouraging methodologies which would
ensure ideal use/extraction of N from feed biomass while simultaneously limiting its discharge
into nature. Increasingly point by point data on centralisations of unrefined protein (CP),
vitality, minerals, and so on in proportions would be expected to figure relative measures of
supplements discharged in milk and discharged in fertilized. Hypothetically, dietary control to
guarantee the most proficient utilisation of supplements should concentrate on 'exactness
nourishing'. This basically identifies with coordinating supplement supply to the creature's
prerequisite and could be accomplished by a progressively exact appraisal of the necessities.
5. Absence of adequate landholding for development of green grain

The fundamental feeding issue in conventional frameworks of dairy cattle raising is the absence
of value rummage accessible in the dry season. Thus, pastoralists must discover elective
practical methods for sustaining as the brushing land is steadily diving. Feed deficiency is a
significant obstruction for dairy advancement. Because of weight of expanding human
populace, the zone under grub development has stayed static throughout the previous three
decades at 4.5% of the complete cultivable land, because of the inclination for development of
nourishment crops over feed crops. Choices to expand feed generation is through serious feed
creation, particularly utilizing the high yielding assortments of feed crops, through meadow the
board.

6. Poor financial status of dairy ranchers

The greater part of all steers and bison, and practically all sheep and goats, in India have a place
with smallholders who possess ~one hectare land or are landless , who keep domesticated
animals for the most part in customary frameworks with domesticated animals contributing
considerably to their jobs and nourishment security. These prime partners of the whole worth
chain of milk are denied of least assets of land, work and capital and so forth.

7. Absence of awareness

Domesticated animals expansion benefits in India are to a great extent conveyed by open
division creature cultivation office. The helpful segment additionally assumes a critical job in
the conveyance of these administrations however it is constrained to specific locales. Most
domesticated animals administrations, for example, managed impregnation/characteristic help,
immunization and de-worming, are time-touchy, and numerous multiple times the
administration apparatus answerable for these administrations neglects to convey the
equivalent in an opportune way because of budgetary, calculated and regulatory limitations.
There is likewise absence of prepared and gifted specialists who can make the dairy
undertakings progressively practical and profitable endeavor.

The helpful model however effective has not had the option to incorporate every one of the
ranchers into the overlap. There are as yet numerous potential ranchers who utilize the casual
channel of milk deal and conveyance. There is colossal government obstruction in a
considerable lot of the co-employable alliance exercises which prompts lesser state of the
ranchers in numerous essential issues.

8. Unorganized advertising

India is the biggest maker of milk, contributing ~15 percent of world milk generation. Be that
as it may, the sorted out dairy industry represents under 15 percent of the milk delivered and
under 1 percent in worldwide exchange for dairy items . This is mostly a direct result of little
scale casual part, which has customarily been the substance of Indian dairy generation. The
sloppy market contends with the sorted out market in connection to costs. A huge division of
the buyers in India is yet to acknowledge the milk from composed dairies due greater expenses.
The rustic buyers are as yet reliant on the casual and chaotic market channels. There is no
particular least help cost of the milk in the framework which makes it un-gainful for the
ranchers.
Keeping in see the enormous number of middle people like military dairy ranches, milk
provinces, dairy co-agents and so forth associated with the milk assortment systems, the milk
loses its quality all the while. This prompts expanded microbial tainting and variance in the
volume of the milk before arriving at the assortment focuses and mass coolers.

9. Absence of cold chain facilities

There is a deficiency of required foundation of chilling plants and mass coolers because of
which such a large amount of milk goes squander because of decay. Milk being an
exceptionally transient item is required to be handled or cooled as quickly as time permits
subsequent to draining. Anyway to guarantee this, there is a need of refrigerated milk
storehouses for capacity which are absent at the town levels. There are long separations to be
secured to arrive at mass milk coolers from the assortment focus. There is a lack of refrigerated
vans and protected tankers for shipping the chilled milk to the handling plants. The ranchers
having high yielding cows and bison milk their animals 2-3 times in the day and each time they
need to convey this milk to the far off assortment focuses where there is a cooling office or else
the milk goes squander on delay.

10. Contamination and sanitation

Milk before being pooled up at the assortment focus from different homesteads and creatures
are not exposed to any screening for the zoonotic sicknesses, adulterants and contaminants in
a considerable lot of the agreeable social orders. This regularly brings about waste of the whole
group of the pooled milk on the off chance that one of the milk jars goes undetected. The most
significant part of milk preparing is its immaculateness and healthiness. There have been
examples of modest substitution of skimmed milk powder with underneath standard substances
which is risky to wellbeing. Besides, the farmers not having the option to get reasonable and
profitable costs for the milk frequently will in general give contaminated milk at the assortment
focuses. They regularly add added substances to build the fat substance of the drain and show
signs of improvement cost for the parcel. Expansion of vegetable fat, creature fat, starch, and
so on has been very regular among the ranchers to change the fat and strong substance of the
milk.

Future prospects:
 1. Increased production

With the world's highest bovine population, India has tremendous potential to further
strengthen its position on the world market for dairy products. In the national economy and
also in the socio-economic development of millions of rural households, livestock in general
and dairy in particular play a vital role. Livestock will contribute significantly to the way out
of poverty, as demand for livestock products will increase substantially over the coming years.
The demand for milk production in India will more than double by 2020, according to one
projection.

2. Export potential

Dairy and milk products have emerged in recent years as the growing value-added class for
agricultural commodities. India can become one of the leading players in the export of milk
and milk products. Concentrated milk and cream products such as skimmed milk powder
remain the largest export item, accounting for nearly 78 percent of net exports of milk and milk
products in 2016-17. Skimmed milk power exports in 2016-17 reached Rs 343 crore compared
to Rs 78 crore in 2010-12. Butter, butter oil, ghee and other milk fat together accounted for just
over 10% of India's net exports of milk and milk products in 2016-17.

3. Employment Opportunity

For an estimated 27.6 million people, the dairy sector is the main source of income. Among
these are micro, marginal and landless peasants, 65 to 70 percent. Therefore, the dairy sector
is considered by many to be one of the poorest sectors with any positive development that
translates to millions across the country through increased income and jobs.

4. Nutrients

The average dairy consumption per capita in India over the past decade was 71.8 kg (equivalent
to 245 grams per day per capita milk consumption; USDA-FAS, 2007) compared to 97.6 kg in
Japan, 80 kg in South Korea, and 10.2 kg in China (Dong, 2006). Those levels in the EU (330
kg), Australia (310 kg) and the United States (251 kg) were significantly lower than per capita
consumption (Muhammad et al, 2009). In other words, there is ample room to increase milk
production in India to ensure the human population's food and nutritional safety.In many
developing countries where the rate of human population growth is 2.5 percent per year
compared to 1 percent for developed countries, the amount of protein and energy consumed by
humans is below the recommended levels, and the proportion of protein from animal sources
is also very small. Milk is considered the most important commodity for livestock, followed
by eggs, meat and fish. Most people in low-and middle-income strata were suffering from
shortages in micronutrients; food from livestock such as milk and meat could be used to
mitigate undernutrition problems.

5. Co-operatives

With the advent and proliferation of AMUL-type cooperatives in the country and a restrictive
trade policy for milk products, remarkable trends in milk production were evident in the 1970s;
milk production subsequently increased at an exponential rate. Farmers have begun to obtain a
good price for their milk and the milk production process, which was essentially self-contained,
is now being turned into a business proposal.

6. Public private partnerships

With the advent of better technology and the entry of organized retail into the Indian markets,
India's dairy industry has been able to market offers of both ethnic and exotic goods. The
introduction of public private partnerships (PPPs) in the Indian dairy sector can be a major step
towards people's growth and prosperity to India's grass roots and economy.

Dairy Market:

The dairy market is expected to be estimated at USD 703.5 billion by 2024, while a CAGR of
5 percent will be reported over the forecast period.

• The global milk production was estimated at 843 million tons in 2018, a rise of 2.2
percent from the 2017 estimate. This increase can be attributed primarily to the expansion of
production in India, Turkey, the European Union, Pakistan, the United States, and Argentina.
However, a decline in milk production, especially in China and Ukraine, partially offset this
factor.

• Increasing demand for dairy products is driven by increasing population, higher income
levels, and increased awareness of nutrition. The world market is dominated mainly by the
dairy group, followed by sections of butter and cheese. The segments of yogurt and dairy
desserts are expected to be the world's fastest growing segments.

• Globally, butter exports rose by 7.5 percent in 2018, mainly from countries such as New
Zealand, the United States, and India. Nevertheless, there has been a fall in demand for butter
in the European Union.

Sales of dairy products contribute more than 50 percent to global sales in developing countries.
The Western market is seeing slow growth rate, driven primarily by product innovation, while
developing countries are recording higher growth rates, driven primarily by increasing
understanding of health. The South American region, followed by the Middle East & Africa,
is the fastest growing region. There is a growing demand for dairy products worldwide. In
developing countries, this has contributed to the modernization of dairy production. In addition,
factors such as efficient and sustainable production of dairy in these countries affect the growth
of the market.

Dairy is an important food component. Whether as an end product (such as milk or yogurt) or
as a vital input for items such as cheese pizza, it is important in both food service and packaged
good categories. Thanks to its inherent nature, dairy is a food industry microcosm, with dairy
consumers ' tastes largely influenced by the same patterns that impact the food industry. With
the presence of numerous companies, the dairy market is considerably large. It is highly
competitive because of the diverse and staple nature of the market. In addition, the introduction
of new companies is strong, as entry barriers are not well established.
 Formatted ...
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Milk production and per capita availability of milk in India Formatted ...

Per Capita Formatted ...

Production Formatted
Year Availability ...
(Million Tonnes) Formatted
(gms/day) ...
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1991-92 55.6 178 Formatted ...
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1992-93 58.0 182
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1993-94 60.6 186 Formatted ...
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1994-95 63.8 192
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1995-96 66.2 195 Formatted ...
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1996-97 69.1 200 Formatted ...
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1997-98 72.1 205
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1998-99 75.4 210 Formatted ...
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1999-2000 78.3 214
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2000-01 80.6 217 Formatted ...
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2001-02 84.4 222 Formatted ...
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2002-03 86.2 224
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2003-04 88.1 225 Formatted ...
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2004-05 92.5 233
Formatted ...

2005-06 97.1 241 Formatted ...

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2006-07 102.6 251 Formatted ...
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2007-08 107.9 260
Formatted ...
2008-09 112.2 266 Formatted ...
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2009-10 116.4 273 Formatted ...

2010-11 121.8 281 Formatted ...

Formatted ...
2011-12 127.9 290 Formatted ...
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2012-13 132.4 299
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2013-14 137.7 307 Formatted ...
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2014-15 146.3 322 Formatted ...
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2015-16 155.5 337
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 2016-17 165.4 355 Formatted: Font: Times New Roman
Formatted: Font: Times New Roman, 12 pt
2017-18 176.3 375 Formatted: Font: Times New Roman
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Source: Basic Animal Husbandry Statistics, DAHD&F, GoI
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 Formatted: Font: Times New Roman, 12 pt
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Table 2: Flow of milk through different channels Formatted: Font: (Default) Times New Roman, 12 pt
Formatted: Line spacing: 1.5 lines
Share of
Formatted Table
Total production
marketable % of production Use Formatted: Font: (Default) Times New Roman, 12 pt
(million tonnes) Formatted: Line spacing: 1.5 lines
surplus
100% 100 Formatted: Font: (Default) Times New Roman, 12 pt
Formatted: Line spacing: 1.5 lines
45% 45 Home consumption
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Marketable surplus sold in urban and Formatted: Line spacing: 1.5 lines
55% 55 Formatted: Font: (Default) Times New Roman, 12 pt
rural markets (informal and formal)
Formatted: Line spacing: 1.5 lines
Sold in urban markets as loose
34.5% 19% 19 Formatted: Font: (Default) Times New Roman, 12 pt
unpackaged milk Formatted: Line spacing: 1.5 lines

Sold as processed products through

40% 22% 22 Formatted: Font: (Default) Times New Roman, 12 pt
informal markets Formatted: Line spacing: 1.5 lines

Sold as packaged milk through formal

14.5% 8% 8 Formatted: Font: (Default) Times New Roman, 12 pt
markets Formatted: Line spacing: 1.5 lines
 Sold as packaged milk products
12.7 % 7% 7 Formatted: Font: (Default) Times New Roman, 12 pt
through formal markets Formatted: Line spacing: 1.5 lines

Formatted: Font: Times New Roman

Cooperatives are the focal players in the conventional dairy segment. The cooperatives Formatted: Font color: Text 1
Formatted: Justified, Line spacing: 1.5 lines
have a three-level structure i) primary societies at the village level, ii) unions at the district
level and iii) federations at the state level – At present, there are 14 alliances in India.

The achievement of the Gujarat Cooperative Milk Marketing Federation (GCMMF), Formatted: Justified

known for its Amul image and its Amul model of helpful, is acclaimed. In any case, there
is a recognition that helpful associations, by and large, have flopped in different pieces of Formatted: Font: (Default) Times New Roman

the nation. A less perceived truth is that the cooperatives in different states are sorted out Formatted: Font color: Text 1

uniquely in contrast to the GCMMF cooperatives. The GCMMF cooperatives work as a

genuine delegate of ranchers and are controlled by expertly qualified directors. In most
different states, the cooperatives are overseen by government workers, work more as
government bodies and are powerless agents of ranchers.

Formatted: Justified, Line spacing: 1.5 lines

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Introduction of The Project Formatted: Font: 12 pt, Font color: Text 1

Formatted: Line spacing: 1.5 lines

Uttarakhand Co-operative Dairy Federation Ltd. (abridged as UCDF Ltd.) is a zenith level Formatted: Font color: Text 1
Formatted: Line spacing: 1.5 lines
State Federation of District Milk Co-operative Unions in the province of Uttarakhand.It was
built up in the year 2001, under registration no. 555, dated 12-03-2001, with its head office at
Mangal Parao, Haldwani (Nainital) for the fruitful usage of the dairy program inside the state.
Association has enrolled brand name, known as "aanchal". The Uttarakhand Co-operative Formatted: Font: (Default) Times New Roman
Formatted: Font color: Text 1
Dairy Federation Ltd. (UCDF Ltd.) appeared as a successor body to the Uttar Pradesh
Cooperative Dairy Federation Ltd., after the development of Uttarakhand as 27th state on ninth
Nov 2000. UCDF Ltd. was enlisted under the Uttarakhand State Co-usable act in the year 2001.

Facts and Findings

Distribution Centre Observation and In-Depth Interview Polaris Marketing

• SKU of Dairy product – 161 (Approx.)

• Product Lines- Bread spreads, Cheese, Beverages, Paneer, Ghee, Milk Powder, Mithai Range,
Milk. • Overall Procurement- GCMMF, Dehradun
• Ordering Frequency - 2-5 days
• Lead time – 1-2 days
• Types of shippers – 100L, 150L, 200L, 320L
• Sequencing – Arrangement of product inside the boxes is done area wise- (LIFO)
• The distributor does not stock any other brand apart from Amul and Ananda for the dairy
products.
• The order is always delivered on time and is always in good condition.
• At times, there is a difference between the number of units ordered by the distributor.
• An excellent rating was given to the quality.
• Safety stock of 1 week is maintained.
• Beat – Area wise division of different stores and supermarkets.
• Total Beats-12
• 4-6 beats are covered in a single day.
• Total vehicles for distribution –6

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FIELD VISIT-1

• Area’s Covered – Garhicantt, Kaulagarh, Jakhan, Prem Nagar, Rajpur Road

• Order is placed twice a week
• Timely delivery
• There is no fixed pattern according to which retailers order
• Order is delivered next day itself
• While transportation, any damage to the goods is bearded by the distributor.
• SFA application is used by the salesperson for taking the order
• Product lines ordered vary from 2-12 in Garhicantt while in Jakhan the range is from 0-26
• For big supermarkets, sometimes the salesperson himself identifies the number of products
to be required by counting the units and comparing it with the ordered quantity previously.
• In the case of small retail stores, he directly asks from retailers.
DELIVERY

• Route - Garhi Cantt.

• A single-vehicle makes 2 trips in a day.
• There is no official credit policy, although the relaxation is given to a few trusted retailers.
• There is no fixed launch pattern for a new SKU, Salesman directly takes it to the marketplace.
• The distributor is highly brand loyal and won’t switch to any other brand even in case of
price fluctuation.

DISTRIBUTION CENTRE – SHIVAY TRADERS

• Location: - Prakarti Vihar, Turner Road
• Product lines: - Cheese, Beverages, Paneer, Ghee, Milk Powder, Mithai Powder, Milk,
Chocolates, cream
• Overall Procurement: - GCMMF Dehradun
• Ordering frequency: - 2-5 days
• Lead Time: - 1-2 days
• The distributor is satisfied with the order processing & delivery timing and rated excellent to
these aspects.
• The distributor does not stock any other brand apart from Amul and Ananda for the dairy
products
• Order is always delivered on time and is always in good condition
• The excellent rating was given to the quality
• One-week safety stock is maintained by the center
• The beat concept is followed for the coverage of routes
• Total beats- 5

FIELD VISIT -2
• The order is delivered next day itself
• Some of the beats are covered on a daily basis
• Total vehicles for distribution- 2
• Vehicles are self-owned
• A single-vehicle makes 2 trips in a day
• The distributor will shift to another brand in case of price fluctuation.

The Global Dairy Sector

Milk is one of most delivered and important farming products around the world. In 2013, with
an all out creation of 770 billion litres esteemed at USD 328 billion, milk positioned third by
generation tonnage and was the top horticultural product in esteem terms the world over.i Milk
contributes 27% to the worldwide worth added of animals and 10% to that of farming.

Milk is a local commodity. It is delivered and expended in essentially the entirety of world's
nations and, in the greater part of them, it positions among the best five agrarian wares in both
amount and worth term.ii Whole crisp cow milk speaks to 82.7% of worldwide milk creation,
trailed by milk from wild oxen (13.3%), goats (2.3%), sheep (1.3%) and camels (0.4%).

Milk is a global item. Milk and dairy items represent about 14% of worldwide horticultural
exchange. Specifically, entire milk powder (WMP) and skimmed milk powder (SMP) are the
most exchanged rural wares comprehensively as level of creation exchanged, while crisp dairy
items, with under 1% of generation exchanged, are the least exchanged farming commodity.iii

The dairy segment is developing quick: World milk generation is anticipated to increment by
177 million tons by 2025, at a normal development pace of 1.8% per annum in the following
10 years. Over a similar period, per capita utilisation of dairy items is anticipated to increment
by 0.8% and 1.7% every year in creating nations, and somewhere in the range of 0.5% and
1.1% in created economies.iv Because of the sheer size of the dairy business, these
development rates can deliver huge improvement adjustments for individuals' jobs, for the
earth and for general wellbeing.

The dairy sector is heterogeneous. World milk creation to a great extent gets from steers, wild
oxen, goats, sheep and camels. Milk creatures are brought up in a huge number of generation
frameworks, which can be adapted in four. Particular landless frameworks, whose primary
objective is the generation of milk. Market-situated and subsistence-arranged coordinated
dairy-crop frameworks, that focus on the joint creation of a few yields, including milk, meat
and harvests. Peaceful frameworks that depend on portability to create milk and, to a lesser
degree, other animals items and administrations.

Dairy animals are a well known resource in rural areas. More than one out of four of the 570
million homestead property around the world, that is more than 150 million ranchers, keep at
any rate one milk animal, including cows, wild oxen, goats and sheep. Specifically, there are
around 133 million property keeping dairy steers; 28.5 million keeping wild oxen; 41 and 19
million keeping goats and sheep separately. Ranchers regularly keep blended crowds in with
more than one types of dairy animal.v Cows are by a wide margin the most well-known dairy
animal, with ranchers in creating nations as a rule keeping them in groups of 2 or 3 heads. In
industrialized economies, be that as it may, groups are regularly bigger: the normal dairy
cultivates in the UK and the US oversee 90 and 300 dairy bovines respectively.However,
ranches with in excess of 100 cows speak to under 0.3% of all dairy cultivates all around.

Dairy animals help generating jobs. Dairy animals are source well of nourishment and money
for farmers, who either expend or sell milk and dairy items consistently, which isn't the
situation with yields or meat. Dairy animals are a store of wealth and enhance strength: farmers
can offer them in desperate hour to produce money; use animals as security for loans; and
transport them in any event, for long separations, in this manner keeping up a significant
resource base when driven away from their estate. Dairy creatures produce manure, which is
significant as compost, fuel and development material, and can be additionally showcased.
They likewise add to edit efficiency through creature footing and give economic wellbeing and
social capital, in this way encouraging systems administration, which is at the center of
powerful market and production network relations and coalitions.
Dairy items are vital to nutrition and wellbeing. Milk and dairy items are supplement thick
nourishments providing vitality and noteworthy measures of protein and micronutrients
including calcium, magnesium, selenium, riboflavin, nutrients B5 and B12, which are
fundamental to diminish craving and lack of healthy sustenance especially among the most
defenceless (for example pregnant ladies and youngsters). Most nations with dietary rules
prescribe dairy as a part in a fair diet. At worldwide level, milk contributes all things considered
134 kcal of vitality/capita every day, 8.3 g of protein/capita every day and 7.6 g of fat/capita,
or 5%, 10% and 9% to the worldwide stock of vitality, protein and fat individually. It is the
fifth biggest supplier of vitality and the third huge supplier of protein and fat for person. Dairy
items are a wellspring of moderate nourishment to meet prescribed level. For instance in the
US, at about $0.23 per 100 kcal, drain and drain items cost less per kcal than meat, poultry and
fish ($0.41 per kcal), leafy foods; like eggs, sugars, desserts and different refreshments; and
barely more costly than grains, dry beans, vegetables and nuts.viii In Germany, the cost of 100
kcal of drain and milk items is about €0.19: just fats, that incorporate spread and margarine
(€0.08 per kcal); noodles, rice and bread (€0.11); and desserts and snack (€0.13) are less
expensive.

Milk generation helps generating jobs for women. Domesticated animals are perhaps the most
well known resource among country ladies in creating nations as creatures are all the more
effectively procured – for example through legacy or markets – than land and other physical
and money related resources. Dairy cows are straightforwardly possessed by ladies in 25% of
cows keeping households, which infers that more than 37 million of dairy ranches are female-
headed. Ladies, be that as it may, paying little heed to their owning milk creatures, assume a
significant job in dairy generation frameworks: they frequently feed the creatures; milk them;
clean the creatures and their slow down; fertilizer compost and are regularly liable for
reproducing, wellbeing and the closeout of milk. Dairy regularly fills in as the first venturing
stone for provincial ladies to begin uniting a superior spot for themselves in the general public,
particularly in country areas. As about 22% of world's ladies of working age are utilized in
horticulture and around one fourth of agrarian possessions keep milk animals, both male and
female headed, around 80 million ladies are somewhat occupied with dairy farming.

The dairy business makes employments. Dairy makers are regularly composed in cooperatives
or liaise with other worth chain on-screen characters to process and deal milk and dairy items
to shoppers. At worldwide level, skimmed milk (75%), cheddar (12%) and margarine (3%)
speak to over 90% of all prepared milk. Preparing exercises, from purification to yogurt
producing, increase the value of crude drain as well as make employments. Business is a
significant pathway out of destitution and occupation creation is a worldwide test: 470 million
employments are required universally for new participants to the work showcase somewhere
in the range of 2016 and 2030.Evidence from Bangladesh, Kenya and Ghana proposes that for
each 100 litres of milk exchanged somewhere in the range of 1.2 and 5.7 all day occupations
are created.In Great Britain, there are around 13,000 dairy cultivates that make an aggregate of
28,000 all day occupations just at ranch level. The 6,200 Australian dairy ranches produce
around 39,000 occupy time jobs.The more than 736 Chinese dairy endeavours utilize more than
270,000 people.Overall, around 240 million individuals are probably going to be
straightforwardly or in a roundabout way utilized in the dairy sector.With an expected 150
million dairy ranches around the world, all things considered, the dairy segment underpins the
vocations of up to one billion individuals around the world.

MATERIAL HANDLING EQUIPMENT

Material handling equipment (MHE) is mechanical gear utilized for the development,
stockpiling, control and assurance of materials, merchandise and items all through the way
toward assembling, conveyance, utilization, and transfer. The various kinds of taking care of
gear can be arranged into four significant classes: transport equipment, positioning equipment,
unit load formation equipment, and storage equipment. At GCMMF (Dehradun) they utilized
basic pushcarts. Pushcarts are the basic trucks that are pushed or moved by the hands.

STACKING
Stacking refers to arrange goods in a systematic way. To stack the products, beds are utilized.
The size of the beds as standard. No variety in the beds was seen. All were of the same sizes.

TYPES OF STORAGE AREA IN THE OFFICE PREMISES

Dry Area
Different product lines like Beverages, Desi Ghee, Lassi, Fresh Cream, Etc are stored in this
dry area.
Following are the shelf life of some products: -
Toned milk- 90 days
Full Cream -180 days,
Ghee- 1 year
Beverages- 6months
Refrigerated Temperature Controlled Storage

• The temperature varies in the range of 0-4 degrees.

• The product stored here is – Butter, Cheese, Paneer, Cheddar Dice Mozzarellas.
• Safety stock- There is no fixed criteria for safety stock, it varies according to the goods in and
goods out.
• Order Quantity- The purchase order is made only for the products which are short. Rest the
remaining order is prepared by the company itself according to the calculation of per year per
day considering a scale of 2-5% growth.
• Damaged Goods- After the auditor checks the damaged stock, it is destroyed (Nagar Nigam)
• Payment- Advance payment is followed in both cases whether making payment to the
company or receiving payment from the distributors
• Bill will generate only when the payment is done
• No salespersons are employed for the purchase order, all the orders are managed through
DMS application i.e., Distribution Management system.

Lead Time
Lead time refers to the time between the initiation and completion of a production process.
• Lead-time varies according to the distance in which the order has to travel.
• In case the order is coming from Manesar, Gurgaon – lead time will be 24 hours.
• In the case of Gujarat – Lead time will be 3-4 days.

Delivery
The delivery of the order takes place with the help of Various transportation agencies: -
• In case of delivery within Dehradun – Praveen Kumar and Sarika Tushar (HUF).
• In case of delivery beyond Dehradun that is within Uttarakhand – Bharat Transportation.
• They use Tata Ace and Trucks for their delivery

Stack Card
• It is basically a control mechanism and it has to be filled only at the time of dispatch.
• Details to be filled: -Date, branch invoice number, distributor’s name, and town, vehicle
number, quantity, balance, etc.
RECORDS

• This is the Daily stock statement which is updated regularly.

• The daily stock statement also includes- Pending arrival, weekly blocked and expired stock,
weekly age of stock.
• All the SKU’s are listed and information regarding MRP, Manufacturing date, Batch number,
shelf life, and stock are recorded here.

APPLICATIONS

SFA- Sales Forecasting application

This is a sales automation app used by the salesperson at the distribution centers for managing
the daily sales and other sales-related processes of Milk Products.

DMS- Distribution Management System DMS

It is a mobile application designed to enhance sales officer operations by streamlining the
Retailer, purchase order and claim approval.
Sources of data and types of data:

Data source:

The data and information required for the study were collected from primary and secondary
sources.

Primary data:

Primary data was collected by conducting a survey in the selected area for the study.

Both quantitative and qualitative were done during the collection of data. Such as constructing
questionnaires, interviewing the respondent and statistical techniques to analyze data.
The information was also acquired from the dairy farmers, cooperative employees, and other
stakeholders. Data regarding the procurement and frequency of procurement and opportunities
with UDCFL association and the pattern of other commercial diaries and local milk distribution
system was also gathered from dairy farmers.

Secondary data:

Secondary data on milk cooperatives for studying the procurement and marketing strategies
and existing patterns were culled from magazines, internet and other official records of the
veterinary department and dairy research and development authority to get estimates of
livestock population.

ANALYSIS AND INTERPRETATION

The following data was collected from aanchal milk diary in Dehradun.

Distribution Routes in Dehradun

Milk typeRoutes (Beat)
Cow MilkRace Course Road
SNFTotal Distance Covered
Milk FAT: 3.5% & Milk SNF:
8.5%
contentConsumption in
(crates)
Energy(kcal): 62.0 |
Protein: 3.10 g |
Formatted: Font: (Default) Times New Roman, 12 pt
Formatted: Font: Bold
Formatted: Font: (Default) Times New Roman, 12 pt
Formatted: Normal (Web), Space After: 15 pt, Font
Alignment: Baseline

Carbohydrate: 4.6 g | Formatted Table

12 Fat: 3.5 g | Calcium: 102 mg Formatted: Font: Bold

Aanchal Full Cream Milk
Cargi Chowk
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Nutritional Information Per Formatted: Font: Bold
100 ml Formatted: Font: (Default) Times New Roman, 12 pt
Formatted: Font: (Default) Times New Roman, 12 pt
105-110 Formatted: Font: (Default) Times New Roman, 12 pt
Formatted: Normal (Web), Space After: 15 pt, Font
6% milkfat. Nutritional Information Per Alignment: Baseline
Milk Fat 6.0 % & Milk SNF 100-105 100 ml Formatted: Normal (Web), Space After: 15 pt, Font
9.0 % Alignment: Baseline

Energy(Kcal): 73 | Formatted: Font: (Default) Times New Roman, 12 pt

14 Protein: 3.1 g | Formatted: Font: (Default) Times New Roman, 12 pt

Carbohydrate: 4.8 g |
Fat: 4.5 g | Calcium: 142 mg
Formatted: Font: (Default) Times New Roman, 12 pt
Formatted: Strong, Font: Not Bold, Border: : (No border)
Formatted: Font: (Default) Times New Roman, 12 pt
Formatted: Normal (Web), Space After: 15 pt, Font
Alignment: Baseline

Milk Fat 3.0% Min. & MILK 100 Nutritional Information Formatted: Normal (Web), Space After: 15 pt, Font
Toned Milk Alignment: Baseline
SNF 8.5 % Min. Per 100 ml
DL Road Formatted: Normal (Web), Space After: 15 pt, Font
Energy(Kcal): 46 Alignment: Baseline
15 | Protein: 3.15 g Formatted: Font: (Default) Times New Roman, 12 pt
| Carbohydrate: 5.1 g
Formatted: Font: (Default) Times New Roman, 12 pt
| Fat: 1.5 g | Calcium: 150 mg
Formatted: Strong, Font: Not Bold, Border: : (No border)
Formatted: Font: (Default) Times New Roman, 12 pt
Formatted: Normal (Web), Space After: 15 pt, Font
Shahastradhara Road 17 105 Alignment: Baseline
Formatted: Normal (Web), Space After: 15 pt, Font
Alignment: Baseline
Khurbura Road 13 103
Formatted: Normal (Web), Space After: 15 pt, Font
Alignment: Baseline

Milk Fat 1.5% & Milk SNF Nutritional Information Per Formatted: Font: (Default) Times New Roman, 12 pt
Aanchal Double Toned Milk 9.0 % 100 ml Formatted: Font: (Default) Times New Roman, 12 pt
Raipur Energy(Kcal): 46 Formatted: Font: (Default) Times New Roman, 12 pt
12 | Protein: 3.15 g Formatted Table
| Carbohydrate: 5.1 g Formatted: Normal (Web), Space After: 15 pt, Font
| Fat: 1.5 g | Calcium: 150 mg Alignment: Baseline
100-105 Formatted: Normal (Web), Space After: 15 pt, Font
Alignment: Baseline
Formatted: Normal (Web), Space After: 15 pt, Font
Routes (Beat) Total Distance Covere9(km) Consumption in (crates) Alignment: Baseline

GMS Road 20 140

 Milk Fat 0.5%max & MILK Nutritional Information Per Formatted: Font: (Default) Times New Roman, 12 pt
Skimmed Milk SNF 8.70 %min 100 ml Formatted: Font: (Default) Times New Roman, 12 pt
Kishan Nagar Energy(Kcal): 33 | Formatted: Font: (Default) Times New Roman, 12 pt
12 Protein: 3.2 g | Formatted Table
Carbohydrate: 4.9 g | Formatted: Font: Not Bold
Fat: 0.1 g | Calcium: 145 mg
Formatted: Normal (Web), Space After: 15 pt, Font
140-145 Alignment: Baseline
Formatted: Normal (Web), Space After: 15 pt, Font
Alignment: Baseline
Garhi Cantt 15 130-135
Formatted: Font: Not Bold
Formatted: Normal (Web), Centered, Space After: 15 pt,
Premnagar-Panditwadi 13.5 130-135 Font Alignment: Baseline
Road Formatted: Font: Not Bold

Shimla Bypass Road 12 75-80

Climentown 12 110-115

Aanchal Flavoured Milk
Routes (Beat)
Chocolate, Kesar Elaichi &
Vanilla.Total Distance
Covered (km)
Nutritional Facts Per 100gm
Energy(kcal): 89 | Total
Fat: 3.1 g | Saturated Fat: 2.0
g | Trans Fat: 0.1 g | Total
Carbohydrate: 12 g | Added
Sugar: 8 g | Protein: 3.2 g |
Calcium: 120 mg |
Consumption in (crates)
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Formatted Table
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Formatted: Font: (Default) Times New Roman, 12 pt
Formatted: Normal (Web), Space After: 15 pt, Font
Alignment: Baseline
Formatted: Font: Not Bold
Formatted: Font: Not Bold
Formatted: Normal (Web), Space After: 15 pt, Font
Alignment: Baseline

Rajpur Road 22 110-120 Formatted: Font: Not Bold

Hathibarkala 21 90

Rispana Pul (Jogiwala) 25 90-100

Patel Nagar 8 75-80

Mussorie 40 100

Selaqui 42 30-35

1 Formatted: Font: (Default) Times New Roman, 12 pt

Formatted: Font: (Default) Times New Roman, 12 pt

LIST OF COMPETITORS IN DEHRADUN

1
aanchalmilk.com/milk/
 • Mother Dairy
• Prayag
• Shwetdhara
• Patanjali
• Madhusudan
• Param
• Ananda
• Aanchal
• Heritage
• Paras
• Gopaljee
• M-Milk
• Arleys
• Gowdhara
G-plus

DISTRIBUTION ROUTES IN DEHRADUN

Routes (Beat) Total Distance Covered Consumption in (crates) Formatted: Font: (Default) Times New Roman, 12 pt

(km)

Rajpur Road 22 110-120 Formatted: Font: (Default) Times New Roman, 12 pt

Hathibarkala 21 90 Formatted: Font: (Default) Times New Roman, 12 pt

Rispana Pul (Jogiwala) 25 90-100 Formatted: Font: (Default) Times New Roman, 12 pt

Patel Nagar 8 75-80 Formatted: Font: (Default) Times New Roman, 12 pt

Mussorie 40 100 Formatted: Font: (Default) Times New Roman, 12 pt

Selaqui 42 30-35 Formatted: Font: (Default) Times New Roman, 12 pt

Formatted: Font: (Default) Times New Roman, 12 pt

 Routes (Beat) Total Distance Covere9(km) Consumption in (crates)

GMS Road 20 140 Formatted: Font: (Default) Times New Roman, 12 pt

Kishan Nagar 12 140-145 Formatted: Font: (Default) Times New Roman, 12 pt

Garhi Cantt 15 130-135 Formatted: Font: (Default) Times New Roman, 12 pt

Premnagar-Panditwadi 13.5 130-135 Formatted: Font: (Default) Times New Roman, 12 pt

Road

Shimla Bypass Road 12 75-80 Formatted: Font: (Default) Times New Roman, 12 pt

Climentown 12 110-115 Formatted: Font: (Default) Times New Roman, 12 pt

Routes (Beat) Total Distance Covered Consumption in (crates)

Race Course Road 12 105-110 Formatted: Font: (Default) Times New Roman, 12 pt

Cargi Chowk 14 100-105 Formatted: Font: (Default) Times New Roman, 12 pt

DL Road 15 100 Formatted: Font: (Default) Times New Roman, 12 pt

Shahastradhara Road 17 105 Formatted: Font: (Default) Times New Roman, 12 pt

Khurbura Road 13 103 Formatted: Font: (Default) Times New Roman, 12 pt

Raipur 12 100-105 Formatted: Font: (Default) Times New Roman, 12 pt

CATEGORY MANAGEMENT OF MILK DISTRIBUTION IN DEHRADUN

Consumer focus was kept in mind as the distributors keep in mind that before 8:00 am the
milk products are distributed to their respective centers for the distribution.
We choose four main centers in Dehradun to calculate the time taken and the mode of
transport for the milk distribution

SAHARNPUR

PANDITWADI

PREMNAGAR

VIKAS NAGAR

COST OF TRANSPORTATION WAS INCURRED ALONG WITH COST SAVING

ANNUALLY

• Distance from Saharanpur Chowk to Panditwadi= 4.6 km (To & Fro distance= 9.2
km)

• Distance from Saharanpur Chowk to Premnagar= 7.5 km (To & Fro distance= 15 km)

• Distance from Saharanpur Chowk to Selaqui= 20 km (To & Fro Distance= 40 km)

• Vehicle used for Panditwadi= Piaggio Ape (Mileage= 30kmpl)

• Vehicle used for Premnagar= Tata Ace (Mileage= 15kmpl)

• Vehicle used for Selaqui= Tata Ace (Mileage= 15kmpl)

• Daily fuel consumption for Panditwadi= 20 Rs, Monthly consumed= 20*30= 600 Rs,
Yearly consumed= 600*12= 7200 Rs
 • Daily fuel consumption for Premnagar= 66 Rs, Monthly consumed= 66*30= 1980 Rs,
Yearly consumed= 1980*12= 23760 Rs

• Daily fuel consumption for Selaqui= 175 Rs, Monthly consumed= 175*30= 5250 Rs,
Yearly consumed= 5250*12= 63000 Rs

• Total cost of fuel consumed yearly= 7200+23760+63000= 93960 Rs

• Vehicle used for Transhipment is Ashok Leyland Dost Plus

• To and Fro Distance from Saharanpur chowk to Selaqui= 40 Km

• Mileage of the vehicle= 14 kmpl

• Daily fuel consumption= 188.5 Rs

• So, Monthly fuel consumption= 188.5*30= 5655 Rs

• Yearly fuel consumption= 5655*12= 67860 Rs
• Total Annually cost can be saved through transhipment is =

• Cost Consumption by these 3 Distributors Vehicle for taking delivery from ADA
point - Cost Incurred by Transhipment Vehicle

• = 93,960 – 67,860

• = 26,100 Rs.
• The cost saved annually through transshipment is around 26,100 Rs.

SUPPLY CHAIN NETWORK MILK PRODUCTS IN OF DEHRADUN

 DEVELOPED A STRATEGY FOR COST INCURRED WHILE
TRANSPORTATION

MODE OF SHIPMENT

• Transshipment is the shipment of goods to an intermediate destination before being

shipped to its final destination. One possible reason for transshipment is to change the
means of transport during the journey which is also known as transloading.

• Transshipment can only use when all stations or distribution points are connected with
each other on a single route.

• The main objective of using transshipment in this project because all operational
areas (Panditwadi, Premnagar, Selaqui, and Vikas Nagar) are on the same route and
we can modify distribution networks by using transshipment which is cost-effective
or to minimize transportation cost.

• After analysing the loop holes of late delivery and field study, we observed that
distributor collects the payment from supplier at the time of distribution. So, it
consumed 2-3 mins at each shop while collecting the cash at the time of distribution
and if there is any customer on retail shop at that time it takes on an average 3
minutes.

• If a distributor has 35-40 retailers on its distribution route and takes 2 mins on each
retail shop, the last mile delivery time will increase automatically.
 • While conducting the field study Premnagar -Panditwadi distribution route,
distribution starts at 6 am and ends at approx. 10:30 am. It covers 46 retailers daily
which have throughput consumption around 110 crates.

If distributor collects their money through E-payment from retailers, it can save up
more than 1 hour at this route.

COST THAT CAN BE SAVED THROUGH TRANSPORTATION

Initial Distance (initial To& fro Distance covered Daily Fuel Monthly Fuel Yearly Fuel
Intermediate
Destination to by distributor (initial to Vehicle Used Mileage Consupmtion consumption Consumption
Destinations
(ADA Point) intermediate) Intermediate destination) Cost (in Rs) cost (in Rs.) Cost (inRs.)

Panditwadi 4.6 9.2 Piaggo Ape 30 km/l 20 600 7200

Saharanpur
Premnagar 7.5 15 Tata Ace 15 km/l 66 1980 23760
Chowk
Selaqui 20 40 Tata Ace 15km/l 175 5250 63000

Total Annually Fuel Consumption cost 93960

COST INCURRED BY TRANSHIPMENT VEHICLE

Daily Fuel Monthly Fuel Yearly fuel

Payload Distance covered
Vehicle Used Mileage Consumption Consumption consumption
Capacity (ADA point- Selaqui)
Cost ( inRs.) Cost ( in Rs.) cost ( in Rs.)

Ashok Leyaland 2.5 -3

14 km/l 40 188.5 5655 67860
Dost Plus tonnes
EXAMPLE OF TIME-SAVING

A route calculation on Premnagar – Panditwadi route was done

• Route- Panditwadi-Premnagar Route

• Starting time of distribution – 6 am.

• Distribution time of End Retailer- 10:30 am.

• Total time is taken in distribution- 4 hours 30 minutes.

• Average Time consumption at each Retail store- 2 minutes.

• No. of retailers on this route- 46

• Percentage of Retailers agree for paying through E- Payment to the suppliers- 55%

• No. of Retailers agree- 25

• Time save through E-Payment:

• If there were 25 retailers agree with E-payment to pay their supplier and average time
consumption at each retail store is approx. 2 minutes. We can save time for up to 50
minutes.

• Time Save- 25 retailers * 2 mins

• = 50 minutes.

• Distribution time at the end retailer after using E- payment– 9:40 am.

• Time is taken by distributor now- 3 hours 40 minutes.

SUGGESTIONS

• After analyzing the loopholes of late delivery and field study, we observed that the
distributor collects the payment from the supplier at the time of distribution. So, it
consumed 2-3 mins at each shop while collecting the cash at the time of distribution
and if there is any customer on retail shop at that time it takes on an average of 3
minutes.

• If a distributor has 35-40 retailers on its distribution route and takes 2 mins on each
retail shop, the last mile delivery time will increase automatically.

• While conducting the field study Premnagar -Panditwadi distribution route,

distribution starts at 6 am and ends at approx. 10:30 am. It covers 46 retailers daily
which have throughput consumption around 110 crates.

• If the distributor collects its money through E-payment from retailers, it can save up
more than 1 hour on this route.

• Frequently visit the retailers from the company representatives which will help in
building a close relationship between the retailers and company,

• Initiating E-Payment in the operations will save a lot of time.

• Take a weekly report from the PSM’s to know what is really going in the market.

• Tie up with local farmers to increase production because on peak times supply can be
short due to procurement from one place only and it will reduce procurement cost as
well.

• Provide a reasonable margin to retailers as compared to competitors. This motivates

them to PROMOTE company milk and milk products
 • Third-Party Logistics vehicle for distribution. It is a never-ending cost to dairy. By
forwarding integration, it is suggested to acquire vehicles of its own in a phased
manner and save expenditure in the near future.

• Special offers should be there for dealers, retailers, and consumers at the time of
festivals.

• Maintaining its quality because bi-products like paneer, malware and ghee are
produced in large quantities by the retailers and if the quality goes down then they can
switch to another company.

• Conducting continuous surveys with retailers and consumers to develop new markets
and improve the existing market.

• Giving incentives and rewards to the PSMs to motivate them because they play a
major role to enhance the relationship with retailers and develop the new market.

CONCLUSION

The distribution of milk products in Dehradun was resolved by using two main methods
i.e. transshipment of goods to control the cost incurred and then e- payment to save time
while the distribution of the products. To increase the sales and to maintain the company
loyalty of the customers the following measures were taken Maintaining its quality
because bi-products like paneer, malware and ghee are produced in large quantities by the
retailers and if the quality goes down then they can switch to another company.

Conducting continuous surveys with retailers and consumers to develop new markets and
improve the existing market.

Giving incentives and rewards to the PSMs to motivate them because they play a major role
to enhance the relationship with retailers and develop the new market.
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