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Transcript of Dairy Business in Maharashtra
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PROJECT ON
“BUSINESS PLAN WITH FOREIGN ENTRY
STRATEGY”
MASTER OF BUSINESS ADMINISTRATION
SEMESTER I
2015-2016
SUBMITTED TOPROF. ASHWINI ADAM
BY!
ANIET "ASUDE" JADHA"
ROLL NO. #$
D. Y. P%&'( S)*++( +, M%%//&
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CBD B/(%34
1. E/)3&'/ S3%47
Established in 1999, The “C*'&4%8*%4%” grown up in Maharashtra first when there were
absence of Milk co-operative in most part and now it bellwether in pan ndia! "ur
founder, # $adhav is the persistent investor and a strong visionar% who could see the
spark in the future! &is aspiration, manufactured and developed b% his son A'9/&
J%8*% is the foundation of toda%'s “C*'&4%8*%4% Empire”! t is ndia's most trusted (
health% brand! )hitradhara en*o%s the patronage ( lo%alt% of + millions of ndians
ever% single da%! "ur eoples mean famil% to us! .e are happ% onl% when we see
delighted customer and emplo%ee smile!
.ith / ma*or companies with interests in 0ood and beverages, Milk farming and
production our turnover crosses 1.5 :'(('+ 8+((%4;! .e derive our strength from our
greatest 22ET2 which is E)& and E#E34 "5E of 4"6 that is "63 E"7E! take
this opportunit% to re8uest ever% single one of %ou to continue %our unstained support in
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energiing and even larger success stor% for CHITRADHARA. This *ourne% will not be
complete without %our dedicated contribution ( efforts: and the role that each one of %ou
fulfils admirable in taking us closer to making our dreams a realit%!
t the same time, there is a need to further strengthen our organiational process
with industr% best practices and abide b% them to achieve greater heights! The)hitradhara brand is not onl% a product, but also a movement! t is in one wa%, the
representation of the economic freedom of farmers! t has given farmers the courage to
dream! To hope! To live!
Toda% we are at point in milk histor% when our amaing past is meeting up with
its speculators future head on! C*'&4%8*%4% is learning and relishing being triumph in
world!
2. P4+83)& P(%
2.1 .h% C*'&4%8*%4% has been formed<
D%'47 B3;'/;; I
M%*%4%;*&4%
D';&4')& B/(+; &+ = &7/ +,
I83;&47
;okul +(*%34 "n )o-op! <asis
.arna +(*%34 "n vt basis
)hitale P3/ "n vt <asis
;ovardhan=arag Milk 0ood> P3/ "n vt <asis
Mahananda P3/ M3:%'L%&34S+/
P%4& +, +9% "n co-op <asis
.hat about rest of Maharashtra????
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https@AA%outu!beABf3$fBCmC* lease watch this video at 1!D second! 2o from this we
realie not a single co-operative milk societ% or federation has eCisting in the
Maharashtra up to %ear 1999 to support Maharashtra framers! 2o that we can able to
tackle their problems b% giving them alternate agro based business ( alternate income
source!
n toda%'s scenario, if we see Maharashtra farmer cannot able to get good market
price for milk! <ecause man% private dairies has eCploit them b% offering less price per
7tr! nd sale the milk at higher price in urban area! >I L%&34 = U;%%:%8 8';&4')& &
8%'47 +?/4 :37; %& R3//; 1@ /4(&4 %8 ;%(/ '& M3:%' = P3/ %& 60 R; /4(&4
2o whole profit of farmer is seies b% Fair% owners! Fue to this reason farmers are
committing suicide now da%s!
2.2 N%&34/ +, B3;'/;; !
To tackle this issues, am niket $adhav coming with the <usiness of Milk marketing (
production in the 1999! 2o that can able to give *ustice to ndian farmers b% offering
proper rewards of their sweats in monetar% terms b% giving reasonable market price to
the Milk b% using m% marketing attributes! 2o that can reached up to m% target i!e!
reduction in farmers suicides! t initial stage business operation was like this, we will
see this in point!
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Absence of co-op
Presence of Coo rative
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s mentioned, want to captured a Fistrict with B-G villages and it will goes wider
after getting good response! 2o we have connected with the #ardha district of
#idharbha! eCplained m% milk cooperative societ% plan and ensured them to give good
earning so that father will not affected in draughts or an% other natural calamities so
then don't depend on onl% on mode of income i!e! farming so turned them for agro
based business and to take stake into m% cooperative societ%!
nitial level took loan of 1 lacs form “2tate cooperative societ% of Maharashtra” for the
transportation of milk and suppl% it to the customer who needed the raw milk for
processing for making beverages and milk food product such as %ogurt, cheese and
butter milk so we have targeted to M5)'s &atsun 8%'47 and N/;&(/ was the prime
customer of our business! .e assured them b% the 8ualit% milk: the% checked and
approved to take milk supplies from us! 2o through this deal we come across huge
profit in our business at the first 8uarter end!
.e have supplied +H thousand liters of milk and for that we earned hugeamount of profit!
revious mt on perAltr )urrent amt on perAltr rofit on per ltr
1B3s ++3s DG3s
2o we earned huge amount of profit after siC month and we distribute profit in
appropriate wa% HI for people I for business! 0rom that I
6ni8ue 0eature@-
1! #eterinar% check up for cows-t consists with collection of blood and milk sample for testing in laborator%
as per that provide prescriptions! 2o that we can able to enhanced high %ield milk
capacit%/! &igh Milk 2torage and workers friendl% and safet% E8uipments@-
This was the first basic eCpansion process we have adoptedThen slowl% we went
be%ond Milk such as )heese, <utter Milk, Jesar Milk, aneer, ;hee, 4ogurt etc direct
selling to organied retailers in order to eliminate chain of distribution! 2o that we earn
huge profit and that profit shared among the milkman's e8uall% as per their stake
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Mechanical
Pasteurizatio
n
Supply it
Locally
Manual
Collection of
Milk
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Manufacturer Fistributor .holesaler 3etailer )onsumer
Manufacturer "wn Fistribution ( transportation "rganied 3etailer =0uture
;roups, 3eliance 0resh, Trent, Femart, now .almart , eka and carrefour > 4es
fter covering up whole '8*%4:*% we came up with huge amount of profit and then weestablished h%giene and automated machineries of “;'/;” for
• bulk pasteuriation
• bulk storage
• bulk cold storage
•
• bulk deodoriation
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• conve%er
• ultrasonic washer
•0orm fill Machine@-
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• .eeper bsorption=5on )onventional 3esources to keep milk cool after
steaming>
• )omputeried ) =0or cleaning roduction 7ines, 2torage ( Manufacturing
tanks and machines>it monitors floret strength, temperature of cleaning solution
• 7) based boiler for steam generation
This kind of automation techni8ues we have installed in one factor% near #ardha and
better 8ualit% milk produced and it supplies to nearest area metro cities like une,
urangabad, Mumbai and 5agpur! This is all things we done because of pasteuriationand deodoriation process “S+4/; %8 :%)&/4'%( )+&/& )% /& ;/%4%&/8 %8 ?/
)% 8/('/4 3%('&7 %;;34/8 '(9 &+ &*/ /+(/” This kind of thing we have done for
the production Enhancement and Enrichment!
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<ut we also established sia's biggest cow farm in Maharashtra we re8uested to
farmers to keep their cows in our farm so that the health and h%giene of animal breed
can be obtained b% us! n order to take care of cows we did following things@
• Take all the milkman's animal under one roof so that health check up can be
done and 8ualit% of milk can be insured! <ut for those who cannot afford all the
cow feed and pedigree eCpenses! n order to give assistance we start
• )ow health )heck up,
• nimal 5utrition,
• )ow <reeding
• ;enetic@- nimal atholog% 7aborator%
"ur dedicated medical unit K a D-member-strong team, eCtends its eCpertise to
not *ust the in-house livestock but also to the farmers who breed outside the
dair%Ls framework! The trained eCperts, apart from hands-on treatment, also
provide consultation to the farmers on livestock health, supplements and dietar%recommendations! nd control of diseases!
• 0roen 2emen 7aborator%@ - The facilit% annuall% preserves , doses of
semen! ;enetic records spanning over ten generations of chosen breeds have
been maintained as a definitive knowledge base to drive further research
strateg%!
• Milk arlor -@ Ever% milk collection sub-station is e8uipped with full% integrated
milking s%stems =sourced from Fe 7aval gri => 7td!> which accuratel% measure
individual buffalo and )ow milk production!• 2atellite 0arms@ - The )hitradhara have alwa%s believed in empowering farmers
with micro and macro scientific and technical know-how, to help them broaden
the eCpanses of their operations!
• Training and Fevelopment@ - The training of handling e8uipment in factor% as
well as cow farm to avoid accidental circumstances! the )hitradhara alwa%s
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take care of it so at needed
time we arrange training session for
worker to make familiar with their
used to machines and work ! so
that development can be
obtained!Fue to presence of all this above mentioned uni8ueness we ac8uired entire
Maharashtra! Then in order to ;rab entire ndia, for the north east we come to
know nfos%s foundation is working over there to enhance the importance of
Education and learning! 2o we grab the opportunit% and tie with nfos%s
0oundation and “2udha Murth%”! <% adding importance of health and h%gienit%
so we establish rural uplifitment and enhancement committee under that we
started providing!
• &ealth and h%giene habits
• gro based Education
• &ow to care 7ivestock
• griculture as rofitable <usiness #enture Etc with the &elp of nfos%s
0oundation ( S38*% M34&*7 Ma'am we could reach up to our target! .e
have created social sustainabilit% in their mind and create <rand
awareness of “)hitradhara” and n /D we start new venture in 2ikkim
of milk roduction and slowl% came into Milk <% roducts such 4ogurt,
0resh cream, <utter Milk, 7assi, ;hee, )heese, aneer etc nd in the same %ear b% adding befits to the business and b%
understanding the need of tea crop producer b% providing market place
to them we come with new venture i!e! Fhara <everages
n this wa% we covered entire north east and b% adding social values in entire pan ndia,
due to our better and 8ualit% product demand of our product such as %ogurt , ;hee,
<utter Milk, 7assi and good 8ualit% of Milk increased so for suppl% purpose we need to
open production plant in southern ndia, western ndia, 5orth ndia as well! 2o n this
process our marketing attributes are pla%ing ver% important aspect
ll though our product 8ualit% is best but we have to promote in such wa% so that
people willing to bu% it and able to purchase it! <ecause in ndia people sa%s,
“ ज दखत ह वदह दबकत ह।”
2o because of this, as well as our people and their continues contribution and
innovation we can served better 8ualit% to pan ndia which has resulted 2" certification
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to our compan% from 5ew eeland! This is lacking to ever% competitor of us! our
presence in entire ndia
$. SWOT ANALYSIS
STRENGHT ANALYSIS
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• "ur compan% is a ver% well know and well establish firm, having
a presence in ndia for more than 1 %ears!
• long with a great presence since 1999 in ndia, our compan%
)hitradhara has a huge ;oodwill worth 3s 1!/billion 62F
• s ndia is formerl% known for its gro <ased Econom% andwhite 3evolution, our compan% grantees the promising 8ualit%
of our products made from the best 8ualit%!
• ll the products in market are has the 8ualit% assurance mark!
• Nualit% of products and huge n!o of satisfied cuatomers
dvance technolog% usage
2atisfied emplo%es,farmers and customers associated with us
• "ur compan% has the largest 3(F department with over 1/
emplo%ees working under it to provide our customers with thebest 8ualit% products!
• &aving ;lobal 2tandardiation certificate
•
WEANESS ANALYSIS
5ew entr% into foreign market!
OPPURTUNITIES ANALYSIS
• .hile deciding on our target market, we had keptin mind to select that countr% which has the largest
ndian population sta%ing abroad and largest
usage of milk! 2o according to that data, 2audi
has the largest ndian population sta%ing there of
about 1/ lacs! s the product is from ndia, our
potential ndian customers will definitel% bu% it, and
their views will also encourage our potentialforeign costumers' to bu% them!
• ;rowing adaptabilit% towards innovative products!
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• To eCplore and market as per their needs and
wants and prefer abilit%
THREADS ANALYSIS
• )hanging needs of customers!
PESTLE ANALYSIS
Entering into a completel% new market posses an% kinds of threads,
and so stud%ing them proper pla%s a ma*or role to predict andeliminate the risk factor in business!0or further anal%sis of our market, a E2T7E nal%sis of the ;670
market has been carried out in order to get a crital clear image of the
3isk!
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ENTPOLITICAL
ECONOMIC
AL
LEGAL
TECHNOL-
OGICA
SOCIA
L
PESTLE
ANALSIS
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1> olitical
The political environment of 2audi is a federal republic and much suitable
in relation to our compan% and its business! The various laws set up b% the
2audi government in relation to manufacturing, Figital Media
advertisements will be followed b% us!
• ;overnment t%pe
• ;overnment stabilit%
• 0reedom of press
• 3egulation Trends
• 7ikel% olitical change
/> Economical
The establishment of compan% will definitel% add to the emplo%ment level in
2audi, and will also help in the growth rate of the countr% ;F rate!
• ;rowth
• nflation
• ;lobaliation
• Emplo%ment
D> 2ocial
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n order to cater the growing need and demand of foreign customers for the
Fair% 0ood and fruit pulp products, our compan%'s product are totall% safe
and meets the needs of them!
•
opulation ;rowthAge• &ealth
• 7ifest%le choice
• Education
H> Technological
! The new and developed technolog% if so available there can
be utilied for 3( F! we have enriched with huge international e8uipment
hubs!
• mpact of emerging technolog%
• 3(F activit%
• mpact of nternet and reduced communication cost!
+> 7egal
.e will meet the rules and regulation as laid down b% the 2audi govt in
relation to the commerce industr% and will take care of issue related to an%
volition!
• 7aws
• 3egulation
> Environment
• .e are manufacturing economicall% sustainable product b% which 5o
harm to environment
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#. O/4%&'+%( P(%
0ormation@-
was started milk marketing societ% on cooperative basis in “vidharbha”!
3eason behind choosing behind vidharbha is the% don't have an% cooperative
societ% which can give market place to the huge liters of milk! 2o due to absence
of co-operative societ% in vidharbha especiall% in #ardha, kola, #ashim, &ingoli,
4avatmal this districts milk production is ver% low so that the farmers earning was
low! 2o to provide an alternate business for them, i need to come with m%
business! fter establishment of co-op! societ%, need to create an awareness, faith and
assurance in the mind of farmers about the milk marketing concept! 2o that
visited to the man% village of #idharbha, and shown them m% business plan,
assured them if %ou will with me for one %ear can give %ou this much of earning
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which triple than whatever that the% were earning at that time! said them being
Milkman's %ou all will form polic% of m% compan% and will going to eCecute it in
proper wa% and the% find a spark in me the% started trust me a lot so got their
cooperation at needed point so we in-depth stud% all the thing and started
collecting milk form B-G village at initial level and started suppl%ing huge litter of
milk to the nternational beverages and food producing companies! nd in the
first month we have earned rupees of profit against per litter! 2o totall% we
earned near around + lacs of rupees! .hich is more than our estimation so
ever%one start will get allocated as per the stake of milk! nd remaining amount
we have invested in our business! fter few month for milk marketing activit% we
have got connected with / additional villages and at the end of %ear in last fiscal
we have earned total revenue of rupees D,/9,, out of that we have allocate
1/9 e8uall% among the stake holders milkman's
N+. +,
%%'(%:(/
'((%/; ,+4 1;&
7/%4
N+. +,
('/;&+)9 +,
)+?;
N+. +,
%%'(%:(/ M'(9
/4 8%7>'
L'&/4
P/4 +&* I
('&/4
P/4 7/%4 '
L'&/4
/ 1,G 1G, +,H, +,B,
This was the first basic eCpansion process we have adopted
• roduct Fevelopment@-
nitial "peration@-
t initial level, we were onl% market the milk to those business houses
whoever needed in larger no of 8uantities! 2o that the% will give me good
amount of return and this good return have allocated it to the milkman's real
owner of the compan%! s customer will increase ll also increased no! of target
districts =milkman> and also the other part of Maharashtra i!e! O%4%&*?%8% latur,
usmanabad , solapur! fter increasing business turnover i will go for eCpansion of business b% providing pasteuried milk and market it locall% for D month then
went in cities nearb%! 0or pasteuriation purpose we came with mechanical
process of “2iemens” and we also enhance / more part of companies@-
!
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Mechanical
Pasteurizat
ion
Suppl it
Locall
Manual
Collection
o! Mil"
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1! Nualit% ssurance for suppl%ing better 8ualit% of milk!
/! 3egular )heck 6p of cows and testing of milk sample for h%gienist and
health%! Through this we have got special recognition from the news and media
channel and through this we eCplore in much better wa%! "ur continuousinnovation brought larger amount of customers and our people dignit% courtes% to
add more and more value to the compan% make consumers brighter through thi,
we could bring profit of +-B corer in the second fiscal=/1-/> Turnaround Management@-
• fter getting enough revenue and growth in business, &ave started
manufacturing milk b% product and pasteuriation of milk! 2o that more
rural emplo%ment has been created b% the “”C*'&4%8*%4%”! 2o it was the
great initiative taken b% compan% into 3ural Marketing!
• 2%stematic "peration@-
C*'&4%8*%4% %,&/4 2006 '& '; &+ :/ )+/4&/8 %; )+-+/4%&'/ &+ %'83;&47 :/)%3;/ //8 4%';/8 %& &*%& &'/. 2o to match our operation
as per industrial standards, we have updated our compan% with
“T/)*+(+')%( A8%)/;”!
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U(&4% M+8/( )+?
4/;/%4)* %8
8//(+/& ,+4 *%;
:// ,+4/8. 6nder that %3&+%&') '(9 ,//8' ;&%8; has been
installed, in order to feed more no of cows and buffalos at a time, so we
could save time! Through this, the 8ualit% and 8uantit% of milk is
automaticall% read b% computeried s%stem! 3ecord of each animal and
their bread and their capacit% to milk and other details has been stored
automaticall% in computer database as well as )/&4%( 8%&%:%;/ )(+38
=connected with the cloud serviceA satellite> we “C*'&4%8*%4%” was 1st
companies in sia who have stored their C+?; + C(+38. SAP is the “)*%/( %4&/4 ” with us b% providing *'* 8%&%:%;/ )(+38
;/4')/.• nimal health is utmost concern for us! To ensure that we have set up N34;'
+, )%(, :4//8' %'%( /8')%( )/&/4
• C%(, :4//8' is for to ensure pregnancies of cows and buffalos in order to
provide good precaution to the cows and calf!
• nimal medical centers for cows facilitates :(++8 ;%(' for the 8/&/)&'+
+, :%)&/4'+(+')%( and '4%( ',/)&'+, as well as 3(&4% 8/&/)&'+ ;++4%*7
techni8ues has been used to detect pregnancies in initial stage which ensure the
)%(, :/&&/4 */%(&* 4+4%!
<% taking care of this entire factor we have ensured we will get good 8ualit% of milkfor milk production and milk b% product such as %ogurt cheese and butter milk etc!
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+roMilkantoistrictcollectoranfroistrictcollector
Collectionofilk
Testinofilksapleilksapleshoulbechekebeforeitointhro
pasturization,
processin
• Fistribution lan@-
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+inal Processin
processeilkoestoelivereprouctline/esoeforbuttterilk,soeforilkpackae,soeforcheeseetc0anpackinitasperinustrial stanseal
Transportaion
Throuhtheconveyers1e2ll thetransportvechicle
arraneitanstore1ithcolvan
Distribution
istributeinetropolitancitiestotheliceseilkist
#. M%49/&' P(%F+4/' E&47 %49/& ;&4%&/7!
pril /1D we had witness a beautiful &4%8/ ,%'4 %8 ,3 ,++8 ,/;&'%(
at A(9*+:%4 S%38' A4%:'% where there was participant from the entire
globe in &*%& I&/4%&'+%( ,++8 ,/;&'%(! ndian roduct made b%
“C*'&4%8*%4%” was appreciated b% ever%one so inspired b% them and
have started felling to emerge m% business for mango pulp and products in
to 2audi and entire ;ulf Market!
The decision of mine was getting more strong when A(%4%' CEO
A:83(4%*% A( F%8(/7 as for venture with them in 2audi! 2o we have
one entire da% meeting where come across their business houses of
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2audi and their global presence! <ut their business houses littlie wider than
mine! 2o we decided to form a J+'& "/&34/ ?'&* /3%( 4+,'& ;*%4'
4%&'+. 2o all the technological assistance will be contributed b% both!
Fistribution of product in their own hand, manufacturing m% hand again
marketing divide in e8ual base! 2o this was organiational structured wasdecide b% them!
Marketing lan@-
n order to sell a milk product of”C*'&4%8*%4%”! .ith the gulf giant 2audi
based “lmarai” having revenue of H billion 62F! t is tough but marketing
is onl% medium which can make us strong! s ndia is the great producer of
milk and alphano mango! 2o from miCer of both we come up with the
mango pulp and mango *uice, for which entire 2audi market is looking for?2o tie up with them for manufacturing mango *uice and pulp we have
formed venture with the lmarai with the brand name “A(-F43'&;” l
means king in the rabic and mango is a national fruit of ndia so it is to be
stated as king of all fruits! 2o ultimatel% title meaning” 9' +, &*/ ,43'&;”.
2o we start manufacturing fruit pulp and mango *uice and mango
)hiikki, mbavadi this entire product has got tremendous and fabulous
response in 3(, ,++8 ,/;&'%( %8 &4%8/ fairs from the different different
Middle East countries like Juwait, Natar, Fubai and "man so in this wa%
we represent our product in the market and got huge response!
<ut to make mango drink and pulp salable we ll come with campaign it's
a digital campaign which is wider mode of promotion so that we can gain
confidence and willingness of more people in comparativel% low amt of
mone% so that we would like to choose G++(/ (%&,+4 Y+3T3:/ as
medium of launching our digital campaign! )ampaign is totall% based on
stor%telling movie and which has a celebrit% impact! 2o to design a stor% for our venture we appoint “S%//4% A'” she will write the script and direct
it as she is bellwether in this kind of business
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<efore deciding marketing strateg% we need to come up with anal%sis so
we choose “M')*/(/ P+4&/4; 5 F+4)/; +, A%(7;';”
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• ndustr% 3ivalr%@ it consists with the eCisting business in mango milk
and mango pulp manufacturing! <ut as 2audi and "man market is
concern not a single pla%er in mango pulp! The% import it and thenuse it so it's aid for the )hitradhara! To gain high consumer
awareness towards them!
• <u%ers owers@ - bu%ers are fre8uentl% available for such kind of
products because )hitradhara has prime business of milk
manufacturing and fruit pulp making! nd we have participated into
gulf trade fair and food festival where we have got good feedback so
that we formed *oint venture in e8ual profit sharing ratio!
•
Threats from other competitor is eCist• Entr% of new pla%er ma% be happen in future so before the% come we
want established our repo in this prime business!
6. FINANCIAL PLAN
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s in financial %ear /1H-/1+ the compan%
C*'&4%8*%4% has made a profit of ! billion 62F this saved
profit will be utilied b% the compan% for eCpansion purpose!
"nce the compan% enters into ;670 market after atime period of months the compan% will issue new " in
ndians market for capital re8uirement! This will also help to
maintain and build on the ;oodwill of our compan%'s image!
n case of emergence the compan% can utilie the Mutual fund
nvestment made in compan%'s name of 3s!G99 cr!
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@. GROWTH PLAN
"nce our compan% #edic Treat becomes well established in 62
market with good number of customers, after a time period of two
and a half %ears we will eCpand our market further! 0or the
eCpansion purpose, we will again target that countr% with high
population of ndians!
A; /4 2015 8%&% %,&/4 USA &*/ )+3&47 ?'&* &*/
*'*/;& I8'% +3(%&'+ '; UAE.
lease note- 6E has been selected as our potential eCpansion
market for %ear /1B as per the data of /1+, however before
eCpansion fresh data related to the population will be taken again
for confirming the potential market countr%!
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s the eCpansion
plan comes into action after two %ears, fresh data related to the
population will be taken again to decide the eCpansion countr%! 2o
ndia is huge producer ( eCporter of both the item milk and
mango! 2o we have to increase ;F of nation b% enhancing
foreign income of the nation! 2o we are contributing for that oncontinuous basis! nd basicall% it's our vision towards
)hitradhara!
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CONCULSION
s we all know C*'&4%8*%4% is a much known established
Milk and 0ood and <everage brand of ndia, which aims to satisf%
the needs of its customers through the touch of &%giene and
2%stematic "peration
)hitradhara will definitel% gain a good share in ;ulf market
which will increase the compan%'s brand name and brand image
which will further help in future eCpansion around the globe and
ultimatel% fulfill its mission and vision statement!
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