PROJECT ON

BUSINESS PLAN WITH FOREIGN ENTRY

STRATEGY
MASTER OF BUSINESS ADMINISTRATION
SEMESTER I
2015-2016
SUBMITTED TO
PROF. ASHWINI KADAM
BY:
ANIKET VASUDEV JADHAV
ROLL NO. 43

D. Y. Patil School of Management,

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CBD Belapur

1. Executive Summary
Established in 1999, The Chitradhara grown up in Maharashtra first when there were
absence of Milk co-operative in most part and now it bellwether in pan India. Our
founder, V Jadhav is the persistent investor and a strong visionary who could see the
spark in the future. His aspiration, manufactured and developed by his son Aniket
Jadhav, is the foundation of todays Chitradhara Empire. It is Indias most trusted &
healthy brand. Chitradhara enjoys the patronage & loyalty of 500 millions of Indians
every single day. Our Peoples mean family to us. We are happy only when we see
delighted customer and employee smile.

With 2 major companies with interests in Food and beverages, Milk farming and
production our turnover crosses 1.5 billion dollars. We derive our strength from our
greatest ASSETS which is EACH and EVERY ONE of YOU that is OUR PEOPLE. I take
this opportunity to request every single one of you to continue your unstained support in

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energizing and even larger success story for CHITRADHARA. This journey will not be
complete without your dedicated contribution & efforts; and the role that each one of you
fulfils admirable in taking us closer to making our dreams a reality.
At the same time, there is a need to further strengthen our organizational process
with industry best practices and abide by them to achieve greater heights. The
Chitradhara brand is not only a product, but also a movement. It is in one way, the
representation of the economic freedom of farmers. It has given farmers the courage to
dream. To hope. To live.
Today we are at point in milk history when our amazing past is meeting up with
its speculators future head on. Chitradhara is learning and relishing being triumph in
world.

2. Product Plan
2.1 Why Chitradhara has been formed?

Dairy Business In
Maharashtra
Gokul
Warna
Chitale
Govardhan(Parag Milk Food)
Mahananda

District Belongs to & type of

Industry
Kolhapur On Co-op. Basis
Kolhapur On Pvt basis
Pune On Pvt Basis
Pune On Pvt Basis
Pune, Mumbai,Latur,Some
Part of Kokan On co-op Basis

What about rest of Maharashtra????

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Presence of Cooprative
Absence of co-op
societies

https://youtu.be/7fRJf7xmxj0 Please watch this video at 10.36 second. So from this we

realize not a single co-operative milk society or federation has existing in the
Maharashtra up to year 1999 to support Maharashtra framers. So that we can able to
tackle their problems by giving them alternate agro based business & alternate income
source.
In todays scenario, if we see Maharashtra farmer cannot able to get good market
price for milk. Because many private dairies has exploit them by offering less price per
Ltr. And sale the milk at higher price in urban area. (In Latur & Usmanabad district pvt
dairy owner buys at Rupees 17 per/ltr and sale it Mumbai & Pune at 60 Rs per/ltr)
So whole profit of farmer is seizes by Dairy owners. Due to this reason farmers are
committing suicide now days.
2.2 Nature of Business :
To tackle this issues, I am Aniket Jadhav coming with the Business of Milk marketing &
production in the 1999. So that I can able to give justice to Indian farmers by offering
proper rewards of their sweats in monetary terms by giving reasonable market price to
the Milk by using my marketing attributes. So that I can reached up to my target i.e.
reduction in farmers suicides. At initial stage business operation was like this, we will
see this in point.

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As I mentioned, I want to captured a District with 7-8 villages and it will goes wider
after getting good response. So we have connected with the Vardha district of
Vidharbha. I explained my milk cooperative society plan and ensured them to give good
earning so that father will not affected in draughts or any other natural calamities so
then dont depend on only on mode of income i.e. farming so I turned them for agro
based business and to take stake into my cooperative society.
Initial level I took loan of 10 lacs form State cooperative society of Maharashtra for the
transportation of milk and supply it to the customer who needed the raw milk for
processing for making beverages and milk food product such as yogurt, cheese and
butter milk so we have targeted to MNCs Hatsun dairy and Nestle was the prime
customer of our business. We assured them by the quality milk; they checked and
approved to take milk supplies from us. So through this deal we come across huge
profit in our business at the first quarter end.
We have supplied 54000 thousand liters of milk and for that we earned huge
amount of profit.
Previous Amt on per/ltr

Current amt on per/ltr

Profit on per ltr

17Rs

55Rs

38Rs

So we earned huge amount of profit after six month and we distribute profit in
appropriate way 40% for people 60% for business. From that 60%

Unique Feature:1. Veterinary check up for cowsIt consists with collection of blood and milk sample for testing in laboratory
as per that provide prescriptions. So that we can able to enhanced high yield milk
capacity
2. High Milk Storage and workers friendly and safety Equipments:Manual
Collection of
Milk

Mechanical
Pasteurizatio
n

Supply it
Locally

This was the first basic expansion process we have adoptedThen slowly we went
beyond Milk such as Cheese, Butter Milk, Kesar Milk, Paneer, Ghee, Yogurt etc direct
selling to organized retailers in order to eliminate chain of distribution. So that we earn
huge profit and that profit shared among the milkmans equally as per their stake

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Manufacturer

Distributor

Wholesaler

Retailer

Consumer

Manufacturer
Own Distribution & transportation
Organized Retailer (Future
Groups, Reliance Fresh, Trent, Demart, now Walmart , Ieka and carrefour )
Yes
After covering up whole vidharbha we came up with huge amount of profit and then we
established hygiene and automated machineries of simens for

bulk pasteurization

bulk storage

bulk cold storage

bulk deodorization

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conveyer
ultrasonic washer

Form fill Machine:-

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Weeper Absorption(Non Conventional Resources to keep milk cool after

steaming)
Computerized CIP (For cleaning Production Lines, Storage & Manufacturing
tanks and machines)it monitors floret strength, temperature of cleaning solution

PLC based boiler for steam generation

This kind of automation techniques we have installed in one factory near Vardha and
better quality milk produced and it supplies to nearest area metro cities like Pune,
Aurangabad, Mumbai and Nagpur. This is all things we done because of pasteurization
and deodorization process Spores and bacterial content can get separated and we
can deliver quality assured milk to the people This kind of thing we have done for
the production Enhancement and Enrichment.

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But we also established Asias biggest cow farm in Maharashtra we requested to

farmers to keep their cows in our farm so that the health and hygiene of animal breed
can be obtained by us. In order to take care of cows we did following things:

Take all the milkmans animal under one roof so that health check up can be
done and quality of milk can be insured. But for those who cannot afford all the
cow feed and pedigree expenses. In order to give assistance we start
Cow health Check up,
Animal Nutrition,
Cow Breeding
Genetic:- Animal Pathology Laboratory
Our dedicated medical unit a 30-member-strong team, extends its expertise to
not just the in-house livestock but also to the farmers who breed outside the
dairy's framework. The trained experts, apart from hands-on treatment, also
provide consultation to the farmers on livestock health, supplements and dietary
recommendations. And control of diseases.

Frozen Semen Laboratory: - The facility annually preserves 600,000 doses of

semen. Genetic records spanning over ten generations of chosen breeds have
been maintained as a definitive knowledge base to drive further research
strategy.

Milk Parlor -: Every milk collection sub-station is equipped with fully integrated
milking systems (sourced from De Laval Agri (I) Ltd.) which accurately measure
individual buffalo and Cow milk production.
Satellite Farms: - The Chitradhara have always believed in empowering farmers
with micro and macro scientific and technical know-how, to help them broaden
the expanses of their operations.
Training and Development: - The training of handling equipment in factory as
well as cow farm to avoid accidental circumstances. the Chitradhara always

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take care of it so at needed

arrange training session for
make familiar with their
machines and work . so
development can be

time we
worker to
used to
that
obtained.
Due to presence of all this above mentioned uniqueness we acquired entire
Maharashtra. Then in order to Grab entire India, for the north east we come to
know Infosys foundation is working over there to enhance the importance of
Education and learning. So we grab the opportunity and tie with Infosys
Foundation and Sudha Murthy. By adding importance of health and hygienity
so we establish rural uplifitment and enhancement committee under that we
started providing.
Health and hygiene habits
Agro based Education
How to care Livestock
Agriculture as Profitable Business Venture Etc with the Help of Infosys
Foundation & Sudha Murthy Maam we could reach up to our target. We
have created social sustainability in their mind and create Brand
awareness of Chitradhara and In 2003 we start new venture in Sikkim
of milk Production and slowly came into Milk By Products such Yogurt,
Fresh cream, Butter Milk, Lassi, Ghee, Cheese, Paneer etc
And in the same year by adding befits to the business and by
understanding the need of tea crop producer by providing market place
to them we come with new venture i.e. Dhara Beverages
In this way we covered entire north east and by adding social values in entire pan India,
due to our better and quality product demand of our product such as yogurt , Ghee,
Butter Milk, Lassi and good quality of Milk increased so for supply purpose we need to
open production plant in southern India, western India, North India as well. So In this
process our marketing attributes are playing very important aspect
All though our product quality is best but we have to promote in such way so that
people willing to buy it and able to purchase it. Because in India people says,

,
So because of this, as well as our people and their continues contribution and
innovation we can served better quality to pan India which has resulted ISO certification

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to our company from New Zeeland. This is lacking to every competitor of us. our
presence in entire India

3.

SWOT ANALYSIS

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STRENGHT ANALYSIS

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 Our company is a very well know and well establish firm, having
a presence in India for more than 16 years.
Along with a great presence since 1999 in India, our company
Chitradhara has a huge Goodwill worth Rs 1.2billion USD
As India is formerly known for its Agro Based Economy and
white Revolution, our company grantees the promising quality
of our products made from the best quality.
All the products in market are has the quality assurance mark.
Quality of products and huge n.o of satisfied cuatomers
Advance technology usage
Satisfied employes,farmers and customers associated with us
Our company has the largest R&D department with over 1200
employees working under it to provide our customers with the
best quality products.
Having Global Standardization certificate

WEAKNESS ANALYSIS
New entry into foreign market.
OPPURTUNITIES ANALYSIS
While deciding on our target market, we had kept
in mind to select that country which has the largest
Indian population staying abroad and largest
usage of milk. So according to that data, Saudi
has the largest Indian population staying there of
about 12 lacs. As the product is from India, our
potential Indian customers will definitely buy it, and
their views will also encourage our potential
foreign costumers to buy them.
Growing adaptability towards innovative products.

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 To explore and market as per their needs and

wants and prefer ability
THREADS ANALYSIS
Changing needs of customers.

PESTLE ANALYSIS
Entering into a completely new market posses any kinds of threads,
and so studying them proper plays a major role to predict and
eliminate the risk factor in business.
For further analysis of our market, a PESTLE Analysis of the GULF
market has been carried out in order to get a criztal clear image of the
Risk.

TECHN
OLOGICA

SOCIA
L

ECONOMIC
AL
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POLITICAL

PESTLE
ANALSIS

LEGAL
Do

ENVIROMENT

1) Political
The political environment of Saudi is a federal republic and much suitable
in relation to our company and its business. The various laws set up by the
Saudi government in relation to manufacturing, Digital Media
advertisements will be followed by us.

Government type
Government stability
Freedom of press
Regulation Trends
Likely Political change
2) Economical

The establishment of company will definitely add to the employment level in

Saudi, and will also help in the growth rate of the country GDP rate.

Growth
Inflation
Globalization
Employment
3) Social

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In order to cater the growing need and demand of foreign customers for the
Dairy Food and fruit pulp products, our companys product are totally safe
and meets the needs of them.

Population Growth/Age
Health
Lifestyle choice
Education
4) Technological

. The new and developed technology if so available there can

be utilized for R& D. we have enriched with huge international equipment
hubs.
Impact of emerging technology
R&D activity
Impact of Internet and reduced communication cost.
5) Legal
We will meet the rules and regulation as laid down by the Saudi govt in
relation to the commerce industry and will take care of issue related to any
volition.
Laws
Regulation
6) Environment
We are manufacturing economically sustainable product by which No
harm to environment

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4. Operational Plan
Formation:I was started milk marketing society on cooperative basis in vidharbha.
Reason behind choosing behind vidharbha is they dont have any cooperative
society which can give market place to the huge liters of milk. So due to absence
of co-operative society in vidharbha especially in Vardha, Akola, Vashim, Hingoli,
Yavatmal this districts milk production is very low so that the farmers earning was
low. So to provide an alternate business for them, i need to come with my
business.
After establishment of co-op. society, I need to create an awareness, faith and
assurance in the mind of farmers about the milk marketing concept. So that I
visited to the many village of Vidharbha, and I shown them my business plan, I
assured them if you will with me for one year I can give you this much of earning

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which triple than whatever that they were earning at that time. I said them being
Milkmans you all will form policy of my company and I will going to execute it in
proper way and they find a spark in me they started trust me a lot so got their
cooperation at needed point so we in-depth study all the thing and started
collecting milk form 7-8 village at initial level and started supplying huge litter of
milk to the International beverages and food producing companies. And in the
first month we have earned 60 rupees of profit against per litter. So totally we
earned near around 50 lacs of rupees. Which is more than our estimation so
everyone start will get allocated as per the stake of milk. And remaining amount
we have invested in our business. After few month for milk marketing activity we
have got connected with 20 additional villages and at the end of year in last fiscal
we have earned total revenue of rupees 3,29,00,000 out of that we have allocate
12900000 equally among the stake holders milkmans
No. of
available
villages for 1st
year
20

Manual
Collection
of Milk

No. of
livestock of
cows
1,800

No. of
available Milk
per day(in
Liter)
18,000

Mechanical
Pasteurizat
ion

Per month In
liter

Per year in
Liter

5,40,000

65,70,000

Supply it
Locally

This was the first basic expansion process we have adopted

Product Development: Initial Operation:At initial level, we were only market the milk to those business houses
whoever needed in larger no of quantities. So that they will give me good
amount of return and this good return I have allocated it to the milkmans real
owner of the company. As customer will increase I ll also increased no. of target
districts (milkman) and also the other part of Maharashtra i.e. marathwada latur,
usmanabad , solapur. After increasing business turnover i will go for expansion of
business by providing pasteurized milk and market it locally for 3 month then
went in cities nearby. For pasteurization purpose we came with mechanical
process of Siemens and we also enhance 2 more part of companies:.

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1. Quality Assurance for supplying better quality of milk.

2. Regular Check Up of cows and testing of milk sample for hygienist and
healthy.
Through this we have got special recognition from the news and media
channel and through this we explore in much better way. Our continuous
innovation brought larger amount of customers and our people dignity courtesy to
add more and more value to the company make consumers brighter through thi,
we could bring profit of 5-7 corer in the second fiscal(2001-02)
Turnaround Management: After getting enough revenue and growth in business, I Have started
manufacturing milk by product and pasteurization of milk. So that more
rural employment has been created by the Chitradhara. So it was the
great initiative taken by company into Rural Marketing.
Systematic Operation:Chitradhara after 2006 it is to be converted as co-operative to an
industry because need raised at that time. So to match our operation
as per industrial standards, we have updated our company with
Technological Advances.

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Ultra Model cow

research and
development form has

been formed. Under that automatic milk feeding stands has been
installed, in order to feed more no of cows and buffalos at a time, so we
could save time. Through this, the quality and quantity of milk is
automatically read by computerized system. Record of each animal and
their bread and their capacity to milk and other details has been stored
automatically in computer database as well as central database cloud
(connected with the cloud service/ satellite) we Chitradhara was 1st
companies in Asia who have stored their Cows on Cloud.
SAP is the channel partner with us by providing high database cloud
service.
Animal health is utmost concern for us. To ensure that we have set up Nursing
of calf breeding, animal medical center
Calf breeding is for to ensure pregnancies of cows and buffalos in order to
provide good precaution to the cows and calf.
Animal medical centers for cows facilitates blood sampling for the detection
of bacteriological and viral infection, as well as ultra detection sonography
techniques has been used to detect pregnancies in initial stage which ensure the
calf better health program.

By taking care of this entire factor we have ensured we will get good quality of milk
for milk production and milk by product such as yogurt cheese and butter milk etc.

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Distribution Plan:-

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T
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4. Marketing Plan
Foreign Entry market strategy:
April 2013 we had witness a beautiful trade fair and fun food festival
at Alkhobar Saudi Arabia where there was participant from the entire
globe in that International food festival. Indian Product made by
Chitradhara was appreciated by everyone so I inspired by them and I
have started felling to emerge my business for mango pulp and products in
to Saudi and entire Gulf Market.
The decision of mine was getting more strong when Almarai CEO
Abdulrahman Al Fadley as for venture with them in Saudi. So we have
one entire day meeting where I come across their business houses of

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Saudi and their global presence. But their business houses littlie wider than
mine. So we decided to form a Joint Venture with equal profit sharing
ratio. So all the technological assistance will be contributed by both.
Distribution of product in their own hand, manufacturing my hand again
marketing divide in equal base. So this was organizational structured was
decide by them.
Marketing Plan:In order to sell a milk product ofChitradhara. With the gulf giant Saudi
based Almarai having revenue of 4 billion USD. It is tough but marketing
is only medium which can make us strong. As India is the great producer of
milk and alphanzo mango. So from mixer of both we come up with the
mango pulp and mango juice, for which entire Saudi market is looking for?
So I tie up with them for manufacturing mango juice and pulp we have
formed venture with the Almarai with the brand name Al-Fruits Al
means king in the Arabic and mango is a national fruit of India so it is to be
stated as king of all fruits. So ultimately title meaning king of the fruits.
So we start manufacturing fruit pulp and mango juice and mango
Chiikki, Ambavadi this entire product has got tremendous and fabulous
response in gulf food festival and trade fairs from the different different
Middle East countries like Kuwait, Qatar, Dubai and Oman so in this way
we represent our product in the market and got huge response.
But to make mango drink and pulp salable we ll come with campaign its
a digital campaign which is wider mode of promotion so that we can gain
confidence and willingness of more people in comparatively low amt of
money so that we would like to choose Google platform YouTube as
medium of launching our digital campaign. Campaign is totally based on
storytelling movie and which has a celebrity impact. So to design a story for
our venture we appoint Sameera Aziz she will write the script and direct
it as she is bellwether in this kind of business

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Before deciding marketing strategy we need to come up with analysis so

we choose Michele Porters 5 Forces of Analysis

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 Industry Rivalry: it consists with the existing business in mango milk

and mango pulp manufacturing. But as Saudi and Oman market is
concern not a single player in mango pulp. They import it and then
use it so its aid for the Chitradhara. To gain high consumer
awareness towards them.
Buyers Powers: - buyers are frequently available for such kind of
products because Chitradhara has prime business of milk
manufacturing and fruit pulp making. And we have participated into
gulf trade fair and food festival where we have got good feedback so
that we formed joint venture in equal profit sharing ratio.
Threats from other competitor is exist
Entry of new player may be happen in future so before they come we
want established our repo in this prime business.

6. FINANCIAL PLAN
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As in financial year 2014-2015 the company

Chitradhara has made a profit of 0.66 billion USD this saved
profit will be utilized by the company for expansion purpose.
Once the company enters into GULF market after a
time period of 6 months the company will issue new IPO in
Indians market for capital requirement. This will also help to
maintain and build on the Goodwill of our companys image.
In case of emergence the company can utilize the Mutual fund
Investment made in companys name of Rs.899 cr.

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7. GROWTH PLAN
Once our company Vedic Treat becomes well established in USA
market with good number of customers, after a time period of two
and a half years we will expand our market further. For the
expansion purpose, we will again target that country with high
population of Indians.
As per 2015 data after USA, the country with the
highest Indian population is UAE.
Please note- UAE has been selected as our potential expansion
market for year 2017 as per the data of 2015, however before
expansion fresh data related to the population will be taken again
for confirming the potential market country.

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As the expansion
plan comes into action after two years, fresh data related to the
population will be taken again to decide the expansion country. So
India is huge producer & exporter of both the item milk and
mango. So we have to increase GDP of nation by enhancing
foreign income of the nation. So we are contributing for that on
continuous basis. And basically its our vision towards
Chitradhara.

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CONCULSION
As we all know Chitradhara is a much known established
Milk and Food and Beverage brand of India, which aims to satisfy
the needs of its customers through the touch of Hygiene and
Systematic Operation
Chitradhara will definitely gain a good share in Gulf market
which will increase the companys brand name and brand image
which will further help in future expansion around the globe and
ultimately fulfill its mission and vision statement.

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