Glanbia(Cheese) in India

Topics: Milk, Dairy, Dairy product Pages: 12 (3915 words) Published: March 24, 2011
Glanbia (cheese) in India
* Company Background
Glanbia has its origins in the Irish co-operative movement that evolved over the last century. Glanbia plc was formed in 1997 out of the merger of Avonmore Foods plc and Waterford Foods plc. Glanbia operates under three segments: Southwest Cheese in the USA, Glanbia Cheese in the UK and Nutricima in Nigeria and Other. It is a major player in the international cheese nutritional ingredients group with its headquarters based in Ireland. One of Glanbia’s key strengths is its position in global food markets and sectors. Glanbia’s first venture into the market was to take over Kortus Foods, Germany in 2004. They won 2 in a row at Nantwich international cheese show. The group’s vision is to become the leader in the cheese, nutritional ingredients and selected consumer foods internationally and to maintain a successful and profitable business which will benefit stakeholders. Mission is to focus on the best means of delivering service led nutritional and functional ingredient solutions. The Group’s international growth strategy is well established and is based on interconnected businesses incorporating nutritional ingredients and cheese. Glanbia has successfully grown its international businesses - nutritional ingredients and cheese - in recent years and further strategic opportunities exist to develop and grow further in our chosen areas of focus. These growth opportunities are underpinned by ongoing consolidation in fragmented markets, strong structural market growth drivers, favorable consumer trends, and the ability to expand, Performance Nutrition in particular, on a global basis. We have focused scale businesses and well developed science-based innovation capability as a result of significant investment in people and facilities. We have established leading market positions in international growth markets, supported by strong routes to market that include in-country representation through local sales offices and strong agent and distributor relationships.

* Profile of overseas market:

India is one of the world’s busiest, most populated places, and the people are among the most polite, accommodating, humble and smart. In recent years, India has maintained a positive trade balance for dairy products. The government of India has expressed strong interest in maintaining self-sufficiency in dairy and other agricultural products. However, there has been a steady increase in import of dairy products to India after trade liberalization. Dairy industry in India has witnessed a remarkable journey in last few decades. From being a laggard and net importer of dairy products in 1950s and 1960s, India has covered a lot of ground. India now is world’s largest producer of milk and a net exporter of milk products. India is the largest producer of milk producing more than 100 million tons of milk per annum. Yet, her per capita milk consumption is around 250 g per day. On one hand, India has plains with long tradition of milk production and consumption. On the other hand, there are forest and hilly regions with no tradition of dairying. Most of coastal belts also do not have much of dairy tradition. On one hand, India is expected to enter the international market with demand for commodities like skimmed milk powder and butter oil. On the other hand, growing prosperity and fast growth of organized modern retail and western style fast food outlets will lead to increased consumption of products like cheese and table butter. This will throw up opportunities for branded dairy products to enter this huge market of more than a billion people. Because there have too many competitors produce liquid milk. The company will focus on cheese market.

* Key statistics on potential market
The organized cheese industry in India is at best in its nascent stage, accounting for less than 1% of total dairy production and largely limited to urban consumption. The organized cheese industry in India as...
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