Summer Internship Project Report

(MGMB1X301)

On

A study on

At

Parag Milk

Submitted To

S. R. Luthra Institute of Management

Under the Guidance of

Moh.Imran Shaikh

(Assistance Professor)

In Partial Fulfilment of The Requirement of The Award of the Degree Of

Master Of Business Administration (M.B.A.)

Offered By

Sarvajanik University

Surat

Submitted by:

Akbari Surbhi Vipulbhai

LM21MGMB003

MBA (Semester- III)

August, 2022
INTRODUCTION TO THE STUDY
 2. INDUSTRY PROFILE OF MILK

According to an OECD-FAO report, global milk output will rise by 1.6 percent annually between 2020 and
2029, reaching 997 million tonnes in that year. This study demonstrates how closely linked food is to an
increase in milk production. In nations that practise livestock breeding based on grazing, gains in milk
production are mostly correlated with the number of herds, whereas in nations that frequently practise
special feeding, production rises as a result of productivity.

Around 150 million homes worldwide produce milk, according to the Food and Agriculture Organization
(FAO) of the United Nations. While most developing nations produce their food on modest family farms, the
transition to large-scale industrial enterprises is still very active in industrialised nations.

About 850 million tonnes of milk are produced annually by all of these businesses. Cows, buffalo, goats,
sheep, and camels provide the bulk of this produce. Only cows are used to provide more than 80% of the
overall yield across all species. Particularly in industrialised nations, this rate accounts for about 100% of
production.

WORLDWIDE NUMBER OF MILK COWS

According to data from the US Department of Agriculture Foreign Agriculture Service, the number of dairy
cows globally increased from about 136 million heads in 2019 to 137 million heads in 2020. (USDA FAS).
It is predicted that in 2021, there would be more than 138 million heads of the animals in question.

Indian dairy cows are the most numerous in the world. In 2020, there will likely be 56 million dairy cows in
the nation, and by 2021, there will likely be 58 million. With over 22 million people, the European Union
comes in second to India. The number of dairy cows in the European Union is anticipated to slightly decline
in 2021. India and the European Union are followed by Brazil, which has 16 million dairy cows, the US,
which has about 9 million, and Russia, Mexico, and China, which each have about 6 million dairy cows.
WORLD MILK PRODUCTION AND THE CURRENT MARKET STATUS
81 percent of the world's milk production is produced by cows, 15 percent by buffaloes, and 4 percent by
goats, sheep, and camels, according to the OECD-FAO Agricultural Outlook 2020-2029 report. 2019 saw an
increase in total milk output of 1.3 percent, hitting 852 million tons. Data from the FAO show that 843
million tons were produced in 2018.

India produces 22% of the world's total milk production, making it the greatest milk producer in the world.
India is followed by the US, China, Pakistan, and Brazil in terms of world milk output. According to the
OECD-FAO research, India, the largest milk producer in the world, boosted its production in 2019 by 4.2
percent to 192 million tonnes.
INDUSTRY PROFILE OF FMCG
The fourth-largest economic sector in India is fast-moving consumer goods (FMCG). The sector is divided
into three primary subsectors: food and beverage, which makes up 19% of the sector's revenue; healthcare,
which takes up 31% of the sector's revenue; and household and personal care, which makes up the remaining
50% of the revenue. About 55 percent of the revenue share is contributed by the urban segment, and 45
percent by the rural segment. The FMCG market will be driven by an increase in rural consumption.

2.1 GLOBAL SCENARIO

2.2 NATIONAL SCENARIO
India is the top milk producer in the world, accounting for 23% of all milk produced worldwide. From
146.31 million tonnes in 2014–15 to 209.96 million tonnes in 2020–21, milk production has increased in the
nation at a compound annual growth rate of about 6.2%.

The fourth-largest industry in India is fast-moving consumer goods (FMCG), with domestic and personal
care products accounting for half of all FMCG sales there. The primary growth factors for the industry have
been more awareness, better access, and shifting lifestyles. The greatest contributor to the entire income
produced by the FMCG industry in India (accounting for a revenue share of about 55 percent) is the urban
segment. However, compared to urban India, the FMCG market has risen more quickly in rural India during
the past few years. The semi-urban and rural populations are expanding quickly, and 50% of all rural
expenditure is on FMCG items.

Uttar Pradesh (14.9 percent, 31.4 MMT), Rajasthan (14.6 percent, 30.7 MMT), Madhya Pradesh (8.6
percent, 18.0 MMT), Gujarat (7.6 percent, 15.9 MMT), and Andhra Pradesh are the top 5 milk-producing
states (7.0 percent, 14.7 MMT).
In June 2020, the Indian government announced a $ 2.1 billion infrastructure development fund with an
interest subsidy programme to encourage private players and MSMEs to invest in dairy, meat processing,
and animal feed factories, which is estimated to result in the creation of 3.5 million employment.
In order to support the development of international food manufacturing leaders who are commensurate with
India's natural resource endowment and support Indian brands of food products in the international markets,
the Ministry of Food Processing Industries has released comprehensive operational scheme guidelines and
launched an online portal for the "Production Linked Incentive Scheme for Food Processing Industry"
(PLISFPI).
Rural consumption of FMCG surged 58.2 percent YoY in September 2021, which is two times as much as
urban consumption (27.7 percent). From April to June 2021, the domestic FMCG market had a year-over-
year growth of 36.9%.
From US$ 110 billion in 2020, the FMCG market in India is projected to grow at a CAGR of 14.9 percent to
US$ 220 billion by 2025. The market for processed foods in India is anticipated to grow from US$ 263
billion in 2019–20 to US$ 470 billion by 2025.
Rural consumers of FMCG raised their consumption by 58.2 percent YoY in September 2021, which is
twice as much as urban consumers (27.7 percent).
Due to several government programmes (such packaged staples and hygiene categories); high agricultural
produce; reverse migration; and a decreased unemployment rate, FMCG in rural India saw a double-digit
growth rebound of 10.6 percent in the third quarter of FY20. The FMCG market will be driven by a rise in
rural consumption. The market for processed foods in India is anticipated to grow to US$ 470 billion by
2025 from US$ 263 billion in 2019–20.
FMCG behemoths that have long controlled the Indian market, such Johnson & Johnson, Himalaya,
Hindustan Unilever, ITC, Lakmé, and others are now facing up against D2C-focused start-ups like
Mamaearth, The Moms Co., Bey Bee, Azah, Nua, and Pee Safe. While new-age D2C businesses like
Mamaearth and Sugar took four and eight years, respectively, to reach the Rs. 100 crore (US$ 13.4 million)
revenue threshold, market titans like Revlon and Lotus needed over 20 years.

2.3 STATE LEVEL SCENARIO

2.4 MAJOR PLAYERS ACCORDING TO CURRENT TRENDS

1) Nestle
The biggest food and beverage corporation in the world is Nestle. The company operates in 187 countries
and has more than 2000 brands, ranging from local favourites to global classics. among the top fmcg brands,
largest.

Gross sales: $ 94 billion

Nationality: Switzerland

The Anglo-Swiss Condensed Milk Company was established in 1866, marking the beginning of Nestle's
fmcg manufacturing career. The biggest FMCG company in the world is Nestle.

2) Procter & Gamble Company

William Procter and James Gamble formed the Procter & Gamble Company (P&G), an American
international consumer products firm with its headquarters in Cincinnati, Ohio, in 1837. of the best global
FMCG brands.

Revenue: 67 billion dollars

nation: the United States

The FMCG industry specialises in a broad range of personal care, consumer health, and hygiene products.
These items are divided into numerous categories, including beauty, grooming, health care, fabric & home
care, and baby, feminine, & family care. second-largest FMCG brands worldwide.

Prior to being sold to Kellogg's, Pringles' product line also comprised a variety of meals, snacks, and drinks.
Ohio is where P&G is incorporated. The business is among the largest US manufacturers of consumer
goods.

3) Pepsi Co.

More than one billion people worldwide use PepsiCo products every day in more than 200 nations and
territories. Considering revenue, PepsiCo ranks third among FMCG Brands.

Including Frito-Lay, Gatorade, Pepsi-Cola, Quaker, and Tropicana in its complementary food and beverage
portfolio, PepsiCo produced more than $67 billion in net sales in 2019.

Gross sales of $65 billion

Nation: United States

In 1965, Herman Lay, the CEO of Frito-Lay, and Donald Kendall, the CEO of Pepsi-Cola, identified what
they later referred to as "a marriage made in heaven"—a single business that provided precisely salted
snacks with the greatest cola on earth. PepsiCo, one of the top food and beverage corporations in the world,
was born as a result of their ambition.

4) Unilever
For more than 120 years, Unilever has been a pioneer, an inventor, and an influencer. Currently, 2.5 billion
individuals will utilise the company's products to look nice, feel good, and enjoy life more. top FMCG
Brands in the list.

Revenue: $ 60 Billion

Nation: United Kingdom

These are only a few of the 12 Unilever brands with yearly sales of more than €1 billion, along with Lipton,
Knorr, Dove, Rexona, Hellmann's, and Omo. among the best global manufacturers of FMCGs.

Three sections make up the Company. In 2019:

 The €21.9 billion in revenue from Beauty & Personal Care represented 42% of our total revenue and
52% of operating profit.
 With a €19.3 billion revenue, Foods & Refreshment represented 37% of our total revenue and 32%
of operating profit.
 Home Care contributed €10.8 billion in revenue, or 21% of our total revenue, and 16% of operating
profit.

5) JBS S.A.
Brazilian multinational JBS S.A. is regarded as a leader in the global food sector. The Company, with its
headquarters in Sao Paulo, operates in 15 nations. The business is ranked fifth among the top FMCG Brands.

$ 49 billion in revenue
Nation: Brazil

JBS offers a wide range of products available, from fresh and frozen meats to prepared meals. These
products are sold under well-known names in Brazil and other nations, including Friboi, Swift, Seara,
Pilgrim's Pride, Plumrose, and Primo, among others.

The Company also engages in adjacent companies that are creative and support the sustainability of the
whole company value chain, including leather, biodiesel, collagen, natural casings for cold cuts, hygiene &
cleaning, metal packaging, transportation, and solid waste management solutions.

3. COMPANY PROFILE OF PARAG MILK FOODS

3.1 HISTORY AND COMMENCEMENT INFORMATION

3.2 DETAILS ABOUT PRODUCTS
BIBLIOGRAPHY
https://www.ibef.org/industry/fmcg-presentation#:~:text=The%20domestic
%20FMCG%20market%20increased,263%20billion%20in%202019%2D20.

https://www.feedandadditive.com/global-dairy-industry-and-trends/
https://firmsworld.com/top-10-fmcg-companies-in-world/
https://www.ibef.org/industry/fmcg