Project

Project profile :- ITC in dairy sector

Product:- Dairy Weightner (milk powder), Ghee, Packed Milk in first phase In second phase they are planning to start with paneer & Cheese also.

Month and year of preparation:- January 2015

Prepared By :- Rohit Anand

Introduction:Making its foray into food processing in Bihar, FMCG major ITC today began construction of a milk processing plant in Munger district. The plant will be constructed at an estimated cost of Rs 150 crore in 200 acres campus and the work will be completed in one year. It will have milk processing capacity of 2lakh liters per day and produce 10 tons of ghee, 20 ton milk powder and 20 ton milk in pouches for domestic consumption per day. Stating that Bihar has vast potential for development in food processing and dairy sector so ITC will set up two food processing units in the state soon. In dairy sector they have started animal husbandry as a CSR activity in Munger, Bihar. BIL has now tied up with Schreiber Dynamix Dairy of Baramati in Maharashtra to manufacture its packaged milk brands. Meanwhile, ITC is experimenting with a pilot project in Munger, Bihar, before foraying into the branded dairy business. After seeing the success of its pilot project in Bihar, ITC is planning to extend the model across the country. To take on rivals, the Gujarat Cooperative Milk Marketing Federation (GCMMF) or Amul is beefing up its distribution and marketing strategy to woo consumers. Currently, Amul leads the pack in the branded dairy business and other major players include Nestle India, Mother Dairy and BIL, among others. With the foray of ITC, the R8,500-crore branded dairy sector in India will witness a lot of action in the next few months. As health-conscious consumers today prefer packaged dairy products, there is an increasing demand for these products,

Plant Capacity: - 200000 liters per day

Market and Demand Aspects:After analyzing the market of Munger where there are 4 Amul Distributor and 16 Sudha milk parlor in city. After analyzing the demand from all 4 distributer of amul and 5 parlorss of Sudha we the average demand in sudha parlor is 380 liters and the average supply is 308 liters. Similarly, from distributers of AMUL we found that there is a huge demand of Amul Spray and Amulya in rural areas of Munger district. As per distributers demand of Amul milk product is much higher than its supply. The same thing we found in nearby district such as katihar & Bhagalpur.

In year 2015 when ITC comes into market they will increase the supply and currently limited options are available with customers it will increases so it will affect the sales of Amul and others existing Dairy product.

Their current position:Currently ITC is collection milk on the name sunehra kal under their CSR activity. This program aims at building rural capacity in partnership with local communities to develop water and forest resources, open up new non-farm livelihoods, empower women economically and
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expand primary education. Although 70% of India's rural population owns cattle, milk yields are abysmally low due to poor quality stock. By enabling families to upgrade to high-yield livestock and form co-operatives to market their milk, ITC turns a dormant family resource into an easily adoptable and dynamic rural enterprise. ITC trains and equips technicians to provide an integrated package consisting of artificial insemination, cattle health and nutrition, pregnancy and post-natal services right at the farmer's doorstep. Apart from that ITC is planning to have one new plant at Nandlalpur village, Munger in which they will produce milk powder, Ghee, and Packet milk by 2015. To come into the big picture they have already started developing their network. According to the data collected from milk chilling center (MCC) at Kalyanpur, Munger; the capacity of the MCCs lies between 5000 liters and 8000 liters and there are approximately 15 MCCs in munger district which are collecting milk from 600 Milk pooling points (MPPs) within and nearby Munger district. According to the data collected from Braham Sharai MPP, Munger; the average milk procurement in summers from one farmer is 7.5 liters and in winter it increases to 8.5 liters because of high milk pulling from buffaloes. Winter is the flush season for buffalo belts.

25300 Farmers

600 MPP

15 MCC

120000 Liters per day

Comes to COMFED

Why Nandlalpur, Munger?

Better transport system: Land: Availability of land by government of Bihar for Rural development and CSR. Support and saving of resources by ITC Cigarette factory Within 2 years munger ganga rail bridge will start which will help ITC to connect all major station and it is just 1.5 km from Nandlalpur ITC dairy CSR wing. Better road transport which will help them to connect all major rural areas of Munger, Kahihar, Bhagalpur, Khagari a, Begusari , Mokama and others. A new state which will cross munger.

Conclusion:There are going to give a big competition to Amul in Bihar. They are going to cover the gap of demand and supply Amul milk powder and COMFED milk packet.