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MINI PROJECTA STUDY ON INDUSTRY AND COMPANY ANALYSIS(WITH REFERENCE TO DAIRY INDUSTRY)A Mini Project report submitted in partial fulfillment ofthe requirements for the completion of II SemesterSubmitted byT.VENKATA GOPI(Reg. No. 13471E0094)

Under the guidance ofVENKAIAH BABUM.B.A, (Ph.D)Associate Professor

DEPARTMENTOF M.B.A.NARASARAOPETA ENGINEERING COLLEGE,NARASARAOPET-522601, GUNTUR (DT).Affiliated toJawaharlal Nehru Technological University,Kakinada(2013 2015)

INTRODUCTION TO DAIRY INDUSTRY:The popular adage nothing succeeds like success is applicable to the dairy development in India. If the country witnessed the green revolution leading to self-reliance in food grains in the sixties and the seventies, the decades of the eighties and the nineties witnessed the white revolution. Indian total milk production is ranked first in the world followed by the United States. Initially dairying was largely an unorganized activity. By and large land holding farmers kept cattle mainly for bullock production. Milk was essentially a byproduct. The surplus after domestic consumption was either converted into conventional products mainly ghee and sold to middle men who cater to the needs of the market.HISTORY OF DAIRY INDUSTRY:

The origin of dairy farms under public management dates back to 1886 when the department of Defense established a few dairy farms in that year to supply milk and milk products to the British troops. The next step was initiated during the First World War

In 1914, the Department of Defense on the advice of the Board of Agriculture advised the Government in 1916, to appoint imperial dairy expert. The next important step was the decision to conduct a census of livestock. The Board of Agriculture carried out the livestock census in 1919 as a preparatory action for planned dairy development. In 1920, the imperial expert recommended to the Government for the establishment of a training center to meet the manpower requirements for managing the Defiance Dairy Farms. By this time there were three dairy farms and until 1923 the British Governments approach towards dairying was confined to milk requirements of the military only. After 1923, diploma course in dairy were started at Bangalore.

Major competitors in industry:

Andhra Pradesh Dairy Development Cooperative Federation Ltd: Anantapur, Chittoor, Cuddapah, Guntur, Hyderabad, Kakinada, Karimnagar, Khammam, Kurnool, Nandyal, Nizamabad, Ongole, Rajahmundry, Vijayawada, Vishakhapatnam, WarangalBangarupalyam DairyBastion Dairy Products LtdCreamline Dairy Products LtdDodla Dairy LtdDurga Dairy LtdEsteem Foods LtdHeritage Foods (India) LtdJyothi Dairy Pvt LtdKamdhenu Cheese Specialities Ltd

Problems in industry:

Milk distribution is limited to urban and peri-urban areasLow milk prices because of lower prices declared by cooperatives, which results in low prices of milk paid by all playersAd hoc export policies and a ban on exportsQuality of milk and milk products are a barrier to entry to the export market, especially the EU and the USALack of policy focus on strengthening indigenous breedsNon-existent extension facilitiesFarmers prices are not based on fat measurement, which affects their profitabilityBecause of low access to credit and risk-taking ability, farmers cannot increase their herd size

POLICY OF GOVERNMENT FOR DAIRY INDUSTRY Policy

The total amount of milk produced has more than tripled from 23 million tonnes back in 1973 to 74.70 million tonnes 26 years later in 1998. The tremendous rise in milk production is primarily the fallout of the dairy farming policy reflected in Operation Flood. Following the success of dairy farming policy, the Government has set up a dairy processing policy, reflected in the Milk and Milk Products Order. In addition, the Government uses a variety of import restrictions to protect its domestic dairy market.

SUGGESTIONS OF INDUSTRY

Strengthen economic viability of dairy farms by interventions on the input side as well as ensuring more fair farmer prices Increase the link between rural production areas and urban markets Focus on quality issues even in the informal channel by training traders and by enforcing food quality regulations Develop infrastructure and training for clean milk production Create policies and activities geared towards enhancing dairy farming activity by increasing, production, productivity and ensuring fair farmer price of milk Establish enabling policy environment to enhance investment

COMPANY PROFILE Introduction:

Under the operation flood I programs, Guntur district was selected to develop dairy activities on annual patterns keeping in view the three-tier system of village dairy cooperative society at the village level, managed by the elected representatives of milk producers, a co-operative union Ltd., was registered under A.P. Co-operative societies act 1964 with registration no: 83DD dated 23/02/1997 with 81 affiliated Milk producers cooperative societies. Later the Union has converted into AP Mutually Aided co-operative society Act 1995 with a registration number: AMC/GNT/DCI/97/28 DT 1-2-1997. It is the first union Registered Under model act in India.VISION / MISSION

Vision statement of Sangam diary: A place with growing friendly communities filled with young people.A place filled with healthy cows & healthy people; and urban dwellers of all ages bottle feeding calves.A place where successful producers owned organization market the highest quality dairy products is in the world.

Promoters of the company:

Guntur, Krishna and West Godavari districts of dairy products a day to make a donation kimmattu 34.46 yakaramula place by the NDDB and dairy boom in 1973-74 to buy 1 of the plan was the establishment of the Association for dairy. The dairy co-operative union of Guntur district was later registered on 23.02.1977. The installation was appointed President of the Union gausri yadlapati venkatravu law. The next was to buy another 53 yakaramulu. The cooperative groups have been registered under the rule of the number of dairy farms vistarillinadi 81. The next election in 1979 by the union of Mr. Chowdhury, Chairman of Sri dhulipalla VEERAIAH. ORGANIZATIONAL STRACTURE

Products:

Badam MilkBasundi Cattle feedcova

LussyGhee Milk Milk CakeMajor competitors in company:

Competitors of Sangam Diary

The major competitors of Sangam dairy are

Vijaya DiaryThirumala DairyHeritage.Prabath dairyJersey

AWARDS OF THE COMPANYHistory was made India 1995-96 when India surpassed the USA India milk production. While sangam stood in the forefront to come into the new mutually aided co-operative societies act as a model institution for the entire country.Sangam is the forerunner India getting 'A' certificate from the audit point of view since its inception.Sangam is the recipient of excellence Award and udyogRatna award during the year 1997 from the Institute of Economic studies - New Delhi.

SWOT ANALYSISStrengthsLarge number of small and marginal farmers involved in dairyingAn effective marketing channel helps to meet the demands of the urban consumerVery large number of animals and huge scope to enhance productivitySelf-sufficiency in medicine production and do not have to rely on exportsWeaknessesLarge share of milk (7085%) of marketable surplus goes through informal channel where quality is a big concernVery little competition to cooperatives because private sector was not allowed to participate in until recently

OpportunitiesIncreased farmer income by exploiting the high demandIncreased consumer sophistication and awareness of quality reception of quality packaged products (though slowly)

ThreatsLarge portion of the population does not care about quality issues in milkBecause of high price sensitivity for dairy products, people are not willing to pay for qualitySignificant increase in maize prices can increase feed prices