 |
|
|
 |
|
SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY
- Demand profile:
Absolutely optimistic.
- Margins:
Quite reasonable, even on packed liquid milk.
- Flexibility of product mix: Tremendous. With balancing
equipment, you can keep on adding to your product line.
- Availability of
raw material: Abundant. Presently, more than 80 per cent of milk produced
is flowing into the unorganized sector, which requires proper channelization.
- Technical manpower:
Professionally-trained, technical human resource pool, built
over last 30 years.
|
|
|
|
|
|
- Perishability:
Pasteurization has overcome this weakness partially. UHT
gives milk long life. Surely, many new processes will follow to improve milk quality and
extend its shelf life.
- Lack of control over
yield: Theoretically, there is little control over milk yield. However, increased awareness of developments like embryo transplant, artificial insemination
and properly managed animal husbandry practices, coupled with higher income to rural milk
producers should automatically lead to improvement in milk yields.
- Logistics of
procurement: Woes of bad roads and inadequate
transportation facility make milk procurement problematic. But with the overall
economic improvement in India, these problems would also get solved.
- Problematic
distribution: Yes, all is not well with distribution. But then if ice creams can be sold virtually at every nook and corner, why
can’t we sell other dairy products too? Moreover, it is only a matter of time
before we see the emergence of a cold chain linking the producer to the refrigerator at
the consumer’s home!
- Competition:
With so many newcomers entering this industry, competition is becoming tougher
day by day. But then competition has to be faced as a ground reality. The market is large enough for
many to carve out their niche.
 Top
|
|
|
|
|
|
"Failure is never final, and success never
ending”. Dr Kurien bears out this statement perfectly. He entered the industry
when there were only threats. He met failure head-on, and now he clearly is an example of
‘never ending success’! If dairy entrepreneurs are looking
for opportunities in India, the following areas must be tapped:
- Value addition:
There is a phenomenal scope for innovations in product development, packaging and
presentation. Given below are potential areas of value addition:
- Steps should be taken to introduce value-added products like shrikhand,
ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a
greater presence and flexibility in the market place along
with opportunities in the field of brand building.
- Addition of cultured products like yoghurt and cheese lend further
strength - both in terms of utilization of resources and presence in the market place.
- A lateral view opens up opportunities in milk
proteins through casein, caseinates and other dietary proteins, further opening up export opportunities.
- Yet another aspect can be the addition of infant foods, geriatric foods
and nutritionals.
- Export potential:
Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri
Lanka, Nigeria, and the Middle East. Following the new GATT treaty,
opportunities will increase tremendously for the export of agri-products in general
and dairy products in particular.
Top |
|
|
|
|
|
Milk vendors, the un-organized
sector: Today milk vendors are occupying the pride of place in the
industry. Organized dissemination of information about the harm that
they are doing to producers and consumers should see a steady decline in their
importance.
The study of this SWOT
analysis shows that the ‘strengths’ and ‘opportunities’ far outweigh
‘weaknesses’ and ‘threats’. Strengths and opportunities are
fundamental and weaknesses and threats are transitory. Any
investment idea can do well only when you have three essential ingredients:
entrepreneurship (the ability to take risks), innovative approach (in product lines and
marketing) and values (of quality/ethics).
The Indian dairy industry, following its delicensing, has been
attracting a large number of entrepreneurs. Their success in dairying depends on factors
such as an efficient yet economical procurement network, hygienic and cost-effective
processing facilities and innovativeness in the market place. All that needs to be done
is: to innovate, convert products into commercially exploitable ideas. All the time keep reminding yourself: Benjamin Franklin discovered electricity, but it
was the man who invented the meter that really made the money!
Top |
|
