CHAPTER-01

INTRODUCTIONs
Mother Dairy is a well-known brand in India that operates in the dairy
and food processing industry. It was established in 1974 as a wholly-
owned subsidiary of the National Dairy Development Board (NDDB),
which was formed by the Government of India to promote, finance, and
support various dairy-related activities across the country.

Mother Dairy plays a significant role in the dairy sector by procuring milk
from farmers, processing it, and distributing a wide range of dairy
products to consumers. The company has a strong focus on quality,
hygiene, and innovation in its product offerings. Besides milk, Mother
Dairy produces and sells a variety of dairy products such as curd, butter,
ghee, ice cream, cheese, and various packaged dairy items.

The brand has become synonymous with reliability and trust, providing
consumers with fresh and nutritious dairy products. Mother Dairy has
established a network of milk procurement from local farmers,
contributing to the economic well-being of rural communities.
Additionally, the company has ventured into other food segments,
offering fruits and vegetables, edible oils, and frozen foods under its
Safal and Dhara brands.

Mother Dairy has a widespread presence across India, serving millions of

consumers with its diverse range of products. The company's
commitment to quality, ethical practices, and sustainable agriculture has
helped it build a strong reputation in the Indian dairy industry.
Mother Dairy is a well-known brand in India that operates in the dairy
and food processing industry. It was established in 1974 as a wholly-
owned subsidiary of the National Dairy Development Board (NDDB),
which was formed by the Government of India to promote, finance, and
support various dairy-related activities across the country.

Over the years, Mother Dairy has become a trusted household name,
known for its emphasis on quality, hygiene, and nutrition. The brand
continues to evolve and adapt to changing consumer preferences while
maintaining its focus on supporting farmers and promoting sustainable
dairy practices.
 CHAPTER-02
ORGANIZATION PROFILE
Mother Dairy is a leading dairy company in India, founded in 1974 as a wholly-
owned subsidiary of the National Dairy Development Board (NDDB). The
company operates in various segments, including milk and dairy products,
fruits and vegetables, and edible oils. Mother Dairy is known for its
commitment to quality and safety in food products.

Key points about Mother Dairy's organizational profile:

1.Ownership: Mother Dairy is a subsidiary of NDDB, which is under the

Ministry of Agriculture, Government of India.

2. Product Range: The company offers a wide range of products, including

fresh milk, dairy products (curd, butter, ghee, cheese), frozen products, fruit
pulp, and various processed foods.

3. Supply Chain: Mother Dairy has a robust supply chain that involves
procurement of milk from farmers through a cooperative model. This ensures a
steady and reliable source of raw material.

4. Quality Assurance: The brand is synonymous with quality and safety.

Mother Dairy emphasizes stringent quality control measures to ensure the
purity and freshness of its products.

5. Distribution Network: The company has an extensive distribution network,

reaching urban and rural areas. Mother Dairy products are available through
various retail outlets and its own outlets.
6. Social Initiatives: Mother Dairy is actively involved in various social
initiatives, including supporting farmers, promoting sustainable agriculture
practices, and contributing to rural development.

7. Technology and Innovation: The company integrates modern technology

and innovation in its production processes to enhance efficiency and maintain
product quality.

8. Certifications: Mother Dairy products often carry certifications attesting to

their quality standards, contributing to consumer trust.

 The Plant is having global certification like FSSC 22000, FSSAI , US FDA
certificate, SGF, Star K Kosher, HALAL ,SEDEX to name a few.
 The plants are regularly being audited & approved by major Food MNC’s.
 In-house R&D innovation center having world class research and testing
in fracture for development of new products and continuous excellences
in quality.

1] Background of the company

Mother Dairy is a leading dairy company in India, established in 1974

under the National Dairy Development Board (NDDB). It was initiated to
promote and support rural farmers by providing them with a market for
their produce. Mother Dairy is known for its diverse range of dairy
products, including milk, butter, yogurt, and ice cream.

The company has played a significant role in the development of the

dairy industry in India, contributing to the White Revolution, which
aimed at increasing milk production. Mother Dairy is committed to
quality and has become a household name, ensuring the availability of
fresh and nutritious dairy products across the country.
2] Nature of the business

Mother Dairy is a well-known company that operates in the food and

dairy industry. It is a subsidiary of the National Dairy Development Board
(NDDB) and was established in 1974. Mother Dairy is involved in the
processing and marketing of a wide range of dairy products, including
milk, butter, ghee, ice cream, and various packaged dairy items.

The company is known for its commitment to quality and has a

significant presence in India. It plays a crucial role in supporting farmers
by procuring milk directly from them and providing a platform for them
to sell their produce. Mother Dairy focuses on delivering fresh and
nutritious dairy products to consumers.

3] Vision and Mission statement of the company

Vision:

Provide quality food and beverages to consumers at affordable prices

while ensuring fair returns to the producers.

Mission:

Mother Dairy's heritage is intrinsically linked to the cooperative

in India. With determination and pride we will continue to serve our
farmers, rural India and our consumers. Our values reflect who we
are and what we firmly believe in.

4] Workflow model
1) Collection:
a. Farmers supply raw milk to collection centers.
b. Milk Quality checks are performed to ensure milk meets
standards.
c. Milk is transported to the processing plant.
2) Reception and Testing:
a. Milk is received at the processing plant.
b. Initial quality tests are conducted for temperature, acidity,
and composition.
3) Separation:
a. Milk is separated into cream and skim milk using centrifugal
separators.
b. Cream and skim milk are stored separately.
4) Standardization:
a. Adjustments are made to the fat content of milk to meet
specific product requirements.
b. Standardized milk is prepared by blending cream and skim
milk in the desired proportions.
5) Pasteurization:
a. Milk is heated to a specific temperature for a set duration to
eliminate harmful bacteria.
b. Pasteurized milk is rapidly cooled.
6) Homogenization:
a. Milk is subjected to high-pressure homogenization to break
down fat globules and ensure a uniform texture.
7) Cooling and Storage:
a. Milk is cooled and stored in tanks.
b. Quality checks are performed before further processing.
8) Packaging:
a. Milk is filled into various packaging formats, such as bottles,
cartons, or pouches.
b. Packaging is automated and follows hygiene standards.
9) Quality Control:
a. Ongoing quality checks are conducted to ensure the product
meets safety and regulatory standards.
10) Distribution:
a. Packaged milk is transported to distribution centers.
b. From distribution centers, it is delivered to retail outlets,
supermarkets, and other points of sale.
11) Retail:
a. The product reaches the end consumer through retail
channels.
12) Waste Management:
a. Waste generated during the processing is managed
responsibly, adhering to environmental standards.
13) Maintenance and Cleaning:
a. Regular maintenance and cleaning of equipment and
facilities are crucial for ensuring hygiene and product quality.
14) Compliance and Documentation:
a. The entire process must comply with food safety and
regulatory standards.
b. Documentation of all processes, quality checks, and
compliance measures is maintained.
5] Product/ Service profile

1. Dairy Products:
 Milk: Mother Dairy is known for its fresh and pure milk. They
offer different variants such as full cream, toned, double-
toned, and skimmed milk.
 Curd (Yogurt): Mother Dairy produces and sells a range of
curd products, including plain curd and flavoured yogurt.
 Buttermilk: Mother Dairy offers buttermilk, a traditional
Indian beverage made from cultured milk.
2. Ice Creams:
 Mother Dairy is involved in the production and distribution
of ice creams. They offer a variety of flavours and types,
catering to different consumer preferences.
3. Cheese:
 Mother Dairy produces and sells different types of cheese,
including processed cheese and paneer (Indian cottage
cheese).
4. Ghee:
 Ghee, a clarified butter commonly used in Indian cuisine, is
also a part of Mother Dairy's product line.
5. Fruits and Vegetables:
 Mother Dairy is involved in the procurement and marketing
of fresh fruits and vegetables. They often have a network of
fruit and vegetable booths or kiosks.
6. Grocery and Staples:
 In some locations, Mother Dairy may offer grocery and staple
items, providing a one-stop shopping experience.
7. Safal:
 Mother Dairy operates under the brand name "Safal" for its
range of fresh fruits and vegetables. Safal stores are
commonly found in various cities.
8. Milk Booths:
 Mother Dairy operates a network of milk booths or outlets
where consumers can purchase fresh dairy products directly.
9. Quality Assurance:
 Mother Dairy emphasizes quality assurance and food safety
in its production processes. The brand is often associated
with providing pure and unadulterated products.

6] Ownership pattern

Mother Dairy is a wholly owned subsidiary of the National Dairy

Development Board which is a statutory body under the ownership
of the Ministry of Fisheries, Animal Husbandry and Dairying of the
Government of India that manufactures, markets and sells milk
and dairy products.

7] Achievements / Awards
 Achievement

Mother Dairy is a wholly owned subsidiary of the National

Dairy Development Board which is a statutory body under the
ownership of the Ministry of Fisheries, Animal Husbandry and
Dairying of the Government of India that manufactures,
markets and sells milk and dairy products.

Awards(2023)

 Winner - Best Event-Specific Mobile Ad Campaign.

 Adugully Datamatixx 2023 Awarded For: Mother Dairy Sweets Holi
Campaign. Date: 28 Jul 2023.
 Product Innovator of the Year. India Dairy Summit & Awards 2023.
Date: 02 Jun 2023. Silver
 Dairy Champion of the Year. India Dairy Summit & Awards 2023.
Date: 02 Jun 2023.

8] Future growth and Prospects

Mother Dairy is targeting a growth rate of more than 20% in the

next 3 years, compared to the industry's growth rate of 13% by
making the product available at 50,000 additional retail units in 200
towns across the country.
1) Market Trends:
Understanding and adapting to current market trends can be
crucial. For the dairy industry, trends such as the rising demand for
organic and healthier products, innovations in packaging, and the
growth of online and e-commerce channels can significantly
impact a company's growth prospects.
2) Product Diversification:
Expanding product lines or introducing innovative products can
open up new revenue streams. Mother Dairy may explore
opportunities in the development of value-added dairy products,
health-focused items, or catering to specific dietary preferences.
3) Supply Chain Efficiency:
A robust and efficient supply chain is essential for a company
dealing with perishable products like dairy. Enhancements in the
supply chain, including sourcing, processing, and distribution, can
improve overall efficiency and competitiveness.
4) Technology Adoption:
Embracing technological advancements in manufacturing,
distribution, and marketing can enhance productivity and help
reach a wider audience. This includes technologies like IoT (Internet
of Things) for monitoring and improving production processes.
5) Sustainability Initiatives:
Given the increasing consumer awareness of environmental issues,
companies that adopt sustainable and environmentally friendly
practices may gain a competitive edge. This includes sustainable
sourcing, eco-friendly packaging, and reducing the overall carbon
footprint.
6) Regulatory Landscape:
Changes in regulations related to the dairy industry can impact
operations. Staying compliant with food safety standards and other
regulatory requirements is crucial for long-term success.
7) Market Expansion:
Exploring new geographic markets, both domestically and
internationally, can contribute to growth. Identifying regions with
untapped potential or high demand for dairy products could be a
part of the growth strategy.
8) Brand Image and Marketing:
Maintaining a positive brand image and implementing effective
marketing strategies can influence consumer perception and
loyalty. This includes advertising campaigns, social media presence,
and customers engagement initiatives.
 CHAPTER-04

SWOT Analysis of Mother Dairy

SWOT Analysis represents the Strength, Weaknesses,
Opportunities, and Threats of a company. It is used to
organize and gather the information about the internal and
external environment that affect a company and to tap
the areas of strength, and analyzing the areas of
weakness of a company along with the competitor’s
strength in order to fulfil the gaps in the performance of a
firm and boosting it by also researching upon the
opportunities which can lead to the success of a company
by covering the areas which lack focus by a firm. Swot
analysis basically gives a thorough idea of how, where,
and how much money and other resources to pool in in the
areas which lack the required focus by a firm.

1. Strengths of Mother Dairy

This section includes what a particular firm does the best

in others’ opinions and as per the market review, what
unique resources can a firm draw?, what is the USP, the
strong sides, and the impact of the firm.

 Product lines
The company offers a wide variety of products and is
spread over multiple sectors: Mother Dairy deals with milk
and other dairy products like ice creams, fruits,
vegetables, groceries, edible oil, beverages, frozen food,
under its brand name.

 Cost-Effective Supply Chain

The company procures its raw materials from the major
local farmers and cooperatives which gives them the
advantage of manufacturing and selling their products at a
cheaper rate and in turn also creates goodwill and
trustworthy relationship with the farmers improving the
overall efficiency.
 The company offers High product quality
The company is certified with high food safety standards
and offers products with no artificial flavours which are
rich in vitamins and antioxidants leading to increased
brand loyalty as they are known for creating a national
footprint in the competitive market of India.

 Geographical Advantage
Ease of accessibility, very strong and focussed
distribution at low cost and meeting the demands of the
target market has been possible due to the locational
advantage which the company practices.
 Committed Human Capital
The brand has the strength of over 3000 employees who
are loyal and service-oriented in nature giving a
competitive advantage to the brand.
 Efficient marketing solutions
Mother dairy has come up with unique marketing
strategies and solutions to cater to the untapped markets
along with practising the First Mover Advantage in several
market segments, giving them a competitive edge.
 Strong Financial Position
Mother Dairy charges higher prices than their competitors
which leads to a competitive advantage in terms of higher
capacity to invest in market research and development for
innovation. The brand also invests in High tech IT
infrastructure for increased efficiency which is a result of
a stronger financial position.
 Patenting the products
Mother Dairy has generated a wide range of products over
the years which have been patented and copyrighted
under the Intellectual property rights and by buying those
rights from the creators which have in turn given them a
huge competitive advantage.

2. Weaknesses of Mother Dairy

This section includes the areas of improvement along with

the areas which require more focus and resources to be
drawn upon and what others in the market will see as a
weakness or practices of negligence that need
improvement.

 Diversification for sustenance

The per capita consumption of milk in India is very low
which requires companies to diversify to sustain
themselves into producing other milk products which raise
the cost of production for the business.
 Difficulty in maintaining Competitive pricing
The brand needs to revise its pricing policy according to
the products and services offered by them as they are not
considered justified in the market.
ss

 High Packaging Cost

The products offered by the brand are perishable and need
a lot of investment in technology and research &
development to decide their packaging and to keep them
fresh while transporting them throughout the country.
 Inefficient Inventory Management
Mother dairy lacks efficient management of the inventory
and cash cycles, which is resulting in weakening the
operations and efficiency of the brand, but there still lies a
huge scope of improvement. Poor project management
has led the company to lose a greater consumer base.
 Poor waste management practices
Mother Dairy has been unsuccessful in integrating a
sustainability model in its business. Their environment
considerations are not very encouraging and leading to a
deteriorating consumer base.
 Poor Decision Making
Lack of focus on innovation leads to the company’s poor
and delayed decisions about launching new products and
variants in the market-leading to losses. Due to unhealthy
competition employees are discouraged from creative
thinking leading to the company suffering from losses.
 Lack of Technological Development
Mother Dairy is lagging there on creating efficient
technological infrastructure and in their digital
transformation, due to lack of funds, they are unable to
cater to the technological needs of expanding and
restructuring the processes and lack Artificial intelligence
and machine learning technologies in their infrastructure.

3. Opportunities for Mother Dairy

This section highlights the areas of development, opening,

or a new marketplace for the positive growth of a firm,
this section also includes changes in government policies,
population patterns, there and lifestyle changes affecting
the positive growth of a firm.

 Expanding in the Adjacent Markets

Mother dairy can inspect other market segments to further
introduce new product features and services for effective
market growth.
 Greater Consumer Disposable Income
Mother Dairy can take advantage of the more disposable
income that consumers are willing to spend by building a
new business model to attract consumers to spend on
their products progressively and to expand their
competitive strategy.
 Increasing Quality and standards
Mother Dairy can reduce its excess production cost by
just focusing on improving the quality and supply of the
most successful products of the brand.
 Access to Global Market
Mother dairy should tap the international market, but due
to limited budget constraints, they can also expand into
new areas and bring new talent so they can expand in
various segments worldwide.
 Developing New Technology
To assist the production of goods and services the
company should spend on the IT infrastructure to cater to
the demands of the customers worldwide efficiently, As
advanced technology can lead to reduced cost, better
quality products in lesser time.
 Government Aid:
The subsidies given by the government can be used to
make the brand more environmental and consumer-
friendly by opening up new outlets and following the
sustainability model.

4. Threats to Mother Dairy

This section highlights all the possible areas, practices,

and organizations which can affect the firm’s reputation
negatively and can cause harm to the image of the firm in
the market. It involves analyzing the competitors and
negative changes in the market to avoid them.

 Barriers to Entry
There are barely any barriers to entry in the industry
which leads to the emergence of new competitors causing
a threat to the brand. There are new entrants in the
market because of the reduced costs and increasing
efficiencies in terms of customer reach through media
platforms globally and domestically.
 Big Competitors
A few famous brands are directly aligned with the
products also sold by mother dairy lie Amul, Britannia
Kisan, Heinz, and Nestle
 Debt:
the brand is majorly dependent on debt to expand from the
past decade, which should be avoided, else it will lead to
huge interest costs.

 Greater bargaining power in the hands of the

consumer
due to this reason, there is a negative effect on the pricing
of the products, the company should focus on changing its
business model than making other cosmetic changes.
 Government Policies
brand should look upon the environmental and other
safety aspects which are made compulsory by the
government to follow to sustain properly. The changing
regulations and stricter rules might be challenging to
overcome for the brand.
 Environmental Issues
The Sustainability trends around the world might affect
the brand’s image negatively, and the brand might get
criticism from the environmental influencers ultimately
leading to declining in sales.
 Labour Force
The negative word of mouth regarding the organizational
problems might lead to exhaustion of the labour force and
the low availability of skilled labour in the market can
make it difficult to employ labour.
 CHAPTER-04

SWOT Analysis of Mother Dairy

1. Strengths of Mother Dairy
SWOT Analysis represents the Strength, Weaknesses,
Opportunities, and Threats of a company. It is used to
organize and gather the information about the internal and
external environment that affect a company and to tap
the areas of strength, and analyzing the areas of
weakness of a company along with the competitor’s
strength in order to fulfil the gaps in the performance of a
firm and boosting it by also researching upon the
opportunities which can lead to the success of a company
by covering the areas which lack focus by a firm. Swot
analysis basically gives a thorough idea of how, where,
and how much money and other resources to pool in in the
areas which lack the required focus by a firm.

This section includes what a particular firm does the best

in others’ opinions and as per the market review, what
unique resources can a firm draw?, what is the USP, the
strong sides, and the impact of the firm.
 Product lines
The company offers a wide variety of products and is
spread over multiple sectors: Mother Dairy deals with milk
and other dairy products like ice creams, fruits,
vegetables, groceries, edible oil, beverages, frozen food,
under its brand name.
 Cost-Effective Supply Chain
The company procures its raw materials from the major
local farmers and cooperatives which gives them the
advantage of manufacturing and selling their products at a
cheaper rate and in turn also creates goodwill and
trustworthy relationship with the farmers improving the
overall efficiency.
 The company offers High product quality
The company is certified with high food safety standards
and offers products with no artificial flavors which are rich
in vitamins and antioxidants leading to increased brand
loyalty as they are known for creating a national footprint
in the competitive market of India.
 Geographical Advantage
Ease of accessibility, very strong and focussed
distribution at low cost and meeting the demands of the
target market has been possible due to the locational
advantage which the company practices.
 Committed Human Capital
The brand has the strength of over 3000 employees who
are loyal and service-oriented in nature giving a
competitive advantage to the brand.
 Efficient marketing solutions
Mother dairy has come up with unique marketing
strategies and solutions to cater to the untapped markets
along with practising the First Mover Advantage in several
market segments, giving them a competitive edge.
  Strong Financial Position
Mother Dairy charges higher prices than their competitors
which leads to a competitive advantage in terms of higher
capacity to invest in market research and development for
innovation. The brand also invests in High tech IT
infrastructure for increased efficiency which is a result of
a stronger financial position.
 Patenting the products
Mother Dairy has generated a wide range of products over
the years which have been patented and copyrighted
under the Intellectual property rights and by buying those
rights from the creators which have in turn given them a
huge competitive advantage.

2. Weaknesses of Mother Dairy

This section includes the areas of improvement along with
the areas which require more focus and resources to be
drawn upon and what others in the market will see as a
weakness or practices of negligence that need
improvement.

 Diversification for sustenance

The per capita consumption of milk in India is very low
which requires companies to diversify to sustain
themselves into producing other milk products which raise
the cost of production for the business.
 Difficulty in maintaining Competitive pricing
The brand needs to revise its pricing policy according to
the products and services offered by them as they are not
considered justified in the market.
 High Packaging Cost
The products offered by the brand are perishable and need
a lot of investment in technology and research &
development to decide their packaging and to keep them
fresh while transporting them throughout the country.
 Inefficient Inventory Management
Mother dairy lacks efficient management of the inventory
and cash cycles, which is resulting in weakening the
operations and efficiency of the brand, but there still lies a
huge scope of improvement. Poor project management
has led the company to lose a greater consumer base.
 Poor waste management practices
Mother Dairy has been unsuccessful in integrating a
sustainability model in its business. Their environment
considerations are not very encouraging and leading to a
deteriorating consumer base.
 Poor Decision Making
Lack of focus on innovation leads to the company’s poor
and delayed decisions about launching new products and
variants in the market-leading to losses. Due to unhealthy
competition employees are discouraged from creative
thinking leading to the company suffering from losses.
 Lack of Technological Development
Mother Dairy is lagging there on creating efficient
technological infrastructure and in their digital
transformation, due to lack of funds, they are unable to
cater to the technological needs of expanding and
restructuring the processes and lack Artificial intelligence
and machine learning technologies in their infrastructure.

3. Opportunities for Mother Dairy

This section highlights the areas of development, opening,
or a new marketplace for the positive growth of a firm,
this section also includes changes in government policies,
population patterns, there and lifestyle changes affecting
the positive growth of a firm.

 Expanding in the Adjacent Markets

Mother dairy can inspect other market segments to further
introduce new product features and services for effective
market growth.
 Greater Consumer Disposable Income
Mother Dairy can take advantage of the more disposable
income that consumers are willing to spend by building a
new business model to attract consumers to spend on
their products progressively and to expand their
competitive strategy.
 Increasing Quality and standards
Mother Dairy can reduce its excess production cost by
just focusing on improving the quality and supply of the
most successful products of the brand.
 Access to Global Market
Mother dairy should tap the international market, but due
to limited budget constraints, they can also expand into
new areas and bring new talent so they can expand in
various segments worldwide.
 Developing New Technology
To assist the production of goods and services the
company should spend on the IT infrastructure to cater to
the demands of the customers worldwide efficiently, As
advanced technology can lead to reduced cost, better
quality products in lesser time.
 Government Aid:
The subsidies given by the government can be used to
make the brand more environmental and consumer-
friendly by opening up new outlets and following the
sustainability model.

4. Threats to Mother Dairy

This section highlights all the possible areas, practices,
and organizations which can affect the firm’s reputation
negatively and can cause harm to the image of the firm in
the market. It involves analyzing the competitors and
negative changes in the market to avoid them.
  Barriers to Entry
There are barely any barriers to entry in the industry
which leads to the emergence of new competitors causing
a threat to the brand. There are new entrants in the
market because of the reduced costs and increasing
efficiencies in terms of customer reach through media
platforms globally and domestically.
 Big Competitors
A few famous brands are directly aligned with the
products also sold by mother dairy lie Amul, Britannia
Kisan , Heinz, and Nestle.

 Debt:
the brand is majorly dependent on debt to expand from the
past decade, which should be avoided, else it will lead to
huge interest costs.
 Greater bargaining power in the hands of the
consumer
due to this reason, there is a negative effect on the pricing
of the products, the company should focus on changing its
business model than making other cosmetic changes.
 Government Policies
brand should look upon the environmental and other
safety aspects which are made compulsory by the
government to follow to sustain properly. The changing
regulations and stricter rules might be challenging to
overcome for the brand.
 Environmental Issues
The Sustainability trends around the world might affect
the brand’s image negatively, and the brand might get
criticism from the environmental influencers ultimately
leading to declining in sales.
 Labour Force
The negative word of mouth regarding the organizational
problems might lead to exhaustion of the labour force and
the low availability of skilled labour in the market can
make it difficult to employ labour.