Amul's New Products: Penetration into Market Segments

Pages: 25 (6066 words) Published: September 14, 2011

Dairy is a place where handling of milk and milk products is done and technology refers to the application of scientific knowledge for practical purposes. Dairy technology has been defined as that branch of dairy science, which deals with the processing of milk and the manufacture of milk products on an industrial scale. The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world. The dairy sector has developed through co-operatives in many parts of the State. During 1997-98, the State had 60 milk processing plants with an aggregate processing capacity of 5.8 million liters per day. In addition to these processing plants, 123 Government and 33 co-operatives milk chilling centers operate in the State. Also India today is the lowest cost producer of per liter of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of these milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products.

Milk Production from 1950 to 2020
1950 – 17 million tones
1996 – 70.8 million tones
1997 – 74.3 million tones
(Projected) 2020 – 240 million tones

Expected to reach 220 to 250 million tones in 2020.
India contributes to world milk production rise from 12-15 % & it will increase up to 30-35% (year 2020).

Research and Development in Dairy Industry
The research and development need to the dairy industry to develop and survives for long time with better status. The various institute and milk dairy companies R&D results provide base for today’s industry growth and development. The research and development of products of dairy, like yogurt and cheese market research and company reports provides insights into product and market trends, analysis opportunities, sales and marketing strategies will help local milk unions to develop and spread world wide through obtaining this knowledge. Specific on market share, segmentation, size and growth in the US and global markets are also helps industry to expand its market worldwide even small union also.

Development of Food Processing Industry
The food processing industry sector in India is one of the largest in terms of production, consumption, export and growth prospects. The government of accorded it is a high priority, with a number of fiscal relieves and incentives, to encourage commercialization and value addition to agriculture produce, for minimizing harvest wastage, generating employment and export growth.

Food processing industry is providing backbone support to the milk industry. The development food products by using milk can give good market opportunities to produces milk.

Products and Industry Status
Among the products manufactured by organized sector are Ghee, Butter, Cheese, Ice-Creams, Milk powders, Melted milk food, Infant food, condensed milk etc. some milk products like Casein and Lactose are also being manufactured lately. Therefore, there is good scope for manufacturing these products locally. Liberalization of the economy has led to a flood of new entrants, including MNCs due to good prospects and abundant supply.

Investment Potential in Milk Products
At the present rate of growth, India is expected to overtake the US in milk production by the year 2010, when demand is expected to be over 125.69 Being largely imported, manufacture of casein and lactose has good scope in the country.

Exports of milk products have...

Bibliography: Marketing Management: - Philip Kotler, The Millennium Edition, Prentice Hall Of India Private Limited, New Delhi.
Marketing Research: - G.C Brek, Tata Mc Graw-Hill Publishing Company Limited, New Delhi
Periodical: - Business Word
DFPI, Annual Report-2008-2009
Research Methodology: - C.R.Kothari , 2nd edition.
S.N Murty and U Bhojanna
Website Address: -
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