The Indian Dairy Industry

Series 2 Dairy Whitener

Market Size

• Rs 900 cr • Amul approx market share 45% • Nestle 23% • Britannia has a significant share• Other brands – Sapan , Vijaya , Mohan , Parag • Configuration – Pouches & Tetrapacks

What is aseptically packed creamer

• Aseptically packed creamer is a technique to impart a longer shelf life to the product . It is packed in small cups ready to be poured into a cup of tea or coffee . Creamer is fresh milk with increased fat content (upto 12%) and is aseptically packed after undergoing Ultra Heat Treatment (UHT) at 1400 C. Its introduction will affect the existing whitener market as a natural milk product with a longer shelf life .

Nestle

• Everyday Dairy Whitener is the brand • Also has Nestle Pure Milk • Butter , Yoghurt ,Flavoured milk on the cards

(status to be checked )

Britannia

• Diversification move in 1997 • First offering Milkman Butter had only 5%

share • Other than cheese , dairy whitener & butter ,

Britannia entered fresh milk in 2001 • Significant market share in dairy whitener

Potential Markets(domestic)

• India large consumer of tea and coffee • Price of whitener should not be a constraint • High level of institutional acceptance • Railways , hotels & restaurants , airlines ,

hospitals , nursing homes , corporate offices • (Airlines , Railways , Hotels are big markets )

Potential Markets (exports)

• Middle East , Gulf & Africa

Leading Players

• Nestle , • Amul , • Britannia , • Dynamix Dairy , • Sterling Agro ,• Haryana Milk Foods , • Mohan Food ,• Modern Dairy ,• K Dairy

Leading Brands • Amul ,• Sapan ,• Vijaya Spray ,• Meadow ,• Mohan ,• Parag ,• Shweta ,• Malkana ,• Gagan , • White Magic ,• Every Day

Technology-Spray Drying

Spray drying makes milk widely available, independent of local supplies of fresh milk,and it expands the use of dairy products in foodstuffs. An increased demand for speciality products with particularfeatures poses new challenges for the plant designer. Whey products in particular are difficult to dry due to their high contents of lactose and minerals, but new techniques, now enable even these products to be dried with success.

Technology-Agglomeration

Small single particles dissolve instantly in water. Powder consisting of smallparticles is, however, difficult to disperse. Big particles are easy to disperse in water, but dissolve only partially. Agglomeration optimises quick dispersion of the agglomerates aswell as quick and complete dissolution of the small particles forming the agglomerate. Furthermore, agglomeration improves the product’s flowability and reduces dust problems during powder handling. Agglomeration is a result of wet and/or semi-dry particle collision.Control is achieved by returning dry fine powder to the wet spray during different stages of spray drying.Mastering the agglomeration techniques is the art of modern spray drying – the art of Niro. Plant operation and economics are other important parameters. Niro product specialists and plant designers keep those factors in mind when designing spray drying plants to meet our customers’ individual needs.

Technology - Agglomerated Whole Milk Powder

In whole milk powders, some of the fat is present as free fat. Free fat rejectswater making it impossible to dissolve these powders properly in cold water.Homogenization of the whole milk concentrate prior to drying reduces the content of free fat in the final powder.However, to be called ‘instant’ wholemilk powder, it must be agglomerated as well as have a surface-active agent(lecithin) applied to improve water affinity. The product then becomes instant – even in cold water.

Leading Technology Supplier- Niro• Niro is easily one of the best in the world in terms of technology supply• GEA Niro is a Danish company that has been a part of the German GEA Group since 1993. GEA Niro specializes in the

development, design and engineering of liquid and powder processing equipment for the manufacture of products in powder, granular or agglomerate form. The GEA Group is a world leader in process engineering, process equipment and plant engineering.

• Spray dryers and coolers, fluid bed systems, freeze drying systems, solid/liquid extractors, evaporators, membrane filtration systems, agglomerators, and granulators are part of a comprehensive delivery programme marketed world-wide through an extensive network of GEA Niro and GEA companies and representatives.

• Many of the world's leading manufacturers have chosen GEA Niro technology for their production of dairy and food products, chemicals and pharmaceuticals. Some of these products are manufactured in a single plant, others in a fully engineered process line designed and installed by GEA Niro in collaboration with leading suppliers of auxiliary equipment.

• Headquarter GEA Niro Gladsaxevej 305 P.O.Box 45 2860 Soeborg Denmark

• Telephone:             + 45-39-545454       Telefax: + 45-39-545800 E-mail: niro@niro.dk Vat no: DK10050715 CVR/SE no: 10050715

•

Relco • RELCO, LLC has a strong history of providing quality products & services, and completing projects on-time and in-budget.

Growth and success has been achieved through continual focus on customer needs and designing sustainable efficient process & control systems for them. Continual improvement and processing innovations have made their customers the low-cost processors of the industry.

• In 1999 RELCO purchased Whey Systems Inc. The KELLER™ Lactose Drying System is recognized around the world as the most efficient, low cost process to produce high quality edible lactose. The addition of KELLER™ Whey Systems added technical expertise in all phases of whey processing and has provided customers a one-stop shop for total dairy process needs

RELCO, LLC2281 Third Ave. SWP.O. Box 1689Willmar, MN 56201 USA +1.320.231.2210

• Sales, Engineering & FabricationDrachten, The Netherlands +31.512.58.3250

• Sales Office: Oceania & AsiaAuckland, New Zealand +64.21.280.1373

Top International Dairy Companies

• Fonterra , New Zealand - 9.1 mln euro • Friesland Campina , Nederland -8.8 mln euro• Dairy Farmers of America ,US -7.4 mln euro • Aria Foods , Denmark – 6.9 mln euro • Land O Lakes ,US – 7.8 mln euro • Humana Milchunion ,Germany – 4.8 mln euro • Tine , Norway – 2.4 mln euro • Glanbia Society , Ireland – 2.1 mln euro • Irish Dairy Board , Ireland – 1.9 mln euro

Entry Strategies

• Initially work as importers/distributors of dairy companies preferably in Italy , France , UK or Switzerland

• Start slowly & steadily and grow the business and partnership .

• Help in product promotions like in-store promotion / sample testing /educating customers on various usages

• Principal should help out with financial incentives , small sample packing etc

Pack Sizes

• Dairy Whitener 500g pouch / 1kg pouch / 500g refill

• Rs 180-200/kg price range • Field research recommended for select towns

amongst top outlets to identify leading brands and pack sizes

Every Day Dairy Whitener

• Shelf life: 12 months• Packaging: 12 x 1 kg• Yield per 1 kg: 8 g per

90 ml cup (125 cups)

Every Day Low Sugar Whitener• On offer from us is a wide collection

of Everyday Low Sugar Premixes, which is processed using premium grade raw material at vendors' end. These sweet whiteners have shelf life of 12 months and are packed in tamperproof pouches. Apart from this, we offer these to the clients at market leading prices.

• • Packaging: 12 x 1 kg• Yield per 1 kg: 8 g per 90 ml cup (125

cups)

Whitener Profitability

• Whitener sells at Rs 192 per kg • The conversion ratio is 1:4 • Hence qty reqd for 1 kg of whitener is 4kg • Or Rs 84 • Pure contribution is Rs 108 per kg