Indian dairy & dairy products industry holds an inimitable space in the country for its high employment potential and for ensuring the availability of nutritious yet affordable food for India’s vast population. India is the largest producer as well as largest consumer of milk in the world. It contributes ~19% to the world milk production and consumes almost whole of its milk production by itself.

The profit margin and value chain analysis of dairy processing companies involved in the business segments of ice-cream, milk powder, cheese, butter, cottage cheese, yoghurt, flavoured milk and probiotic dairy products industry, Sweets like Cadbury, Khoya Sweets, Condense Milk.

The milk processing industry in India is expected to expand at a compound annual growth rate (CAGR) of ~14 to 15% between FY 2012 and FY 2023, the market size of butter is expected to grow by 14.5%, curd by 14.4%, paneer by 14.1% and ghee by 14.1%, among others.

Dairy farming is an important way for farmers to increase their earnings and access to more nutritious food for their families. While dairy farming provides not only fresh milk and a source of basic income, value-added products, such as yogurt and cheese provide a higher source of revenue. Dairying is an important source of subsidiary income to small/marginal farmers and agricultural labourers. The manure from animals provides a good source of organic matter for improving soil fertility and crop yields. Dairy farming is now taken up as a main occupation around big urban centres where the demand for Organic milk & milk product is high.

Road Ahead

We expect growth of 14-15%. The Industry has Organised & Unorganised player but branding and other marketing strategies have proved Organised sector gaining market share.

The Sector remains under essential category & commodity, so slowdown impact does not hamper the growth.

BENEFICIARIES :   NESTLE, HATSUN AGRO, PARAG MILK, BRITANNIA, VADILAL