MOTHER DAIRY: CRAFTING A NATIONAL

FOOTPRINT
PESTEL ANALYSIS
1.

POLITICAL FACTORS

MOTHER DAIRY HAS GOVERNMENT SUPPORT AND IS A SUBSIDIARY

OF NDDB BUT THIS HAS MADE IT IMPOSSIBLE FOR THEM TO MAKE
AGGRESSIVE AND TIME-BOUND DECISIONS ON ITS OWN BEHALF
CAUSING
ITS GROWTH AT SLOW PACE.
Government of India promulgated a set of laws and regulations for
the dairy processing industry in order to ensure safety, hygiene and
service standard
GoI has deregulated this sector and there are no licence required
and allowance of 100% FDI

2. ECONOMIC FACTORS
There is an increase in urban population and the demand of milk is
increasing at a higher rate.
Indian dairy products market is expected to grow at 5% CAGR,
annual turnover was likely to be INR 500 billion.
NDP being implemented by NDDB with a budget of INR 1.73 billion
with an objective of doubling the countrys milk production by 2020.
3. SOCIAL FACTORS
Increasing young population of India and burgeoning middle class.
Due to religious as well as cultural reasons, major population is
lacto vegetarian.
People are looking for convenience and health which in turn
increase consumption of package goods dairy products and health
goods
4. TECHNOLOGICAL FACTORS
Use of Vending machine-network to sell loose milk.
Manufacturing processes of Mother Dairy are benchmarked against
best-in- class
Standards with a view towards continual improvement for
infrastructure and system requirements.
There are modern facilities which include filtration, clarification,
pasteurization, chilling, filling, packing, and storage of milk.
5. ENVIRONMENTAL FACTORS

The introduction of Token distribution system the firm has been able
to save 5.5 to 6 tons of plastic entering the Delhi market every day.
Ensuring the plants to produce minimal carbon footprint along with
effective supply chain management thereby reducing wastage.
6. LEGAL FACTORS

MMPO enforces and regulated the supply of liquid milk of desired

quantity in the
Interest of general public and regulated the production and
distribution.
BIS Order:- It Formulates standards in the processed foods. BIS can
obtain the ISI mark that can be exhibited on product packages.

MOTHER DAIRY: CRAFTING A NATIONAL

FOOTPRINT
PORTER-5 FORCES
1. THREAT OF NEW ENTRANTS

MOTHER DAIRY ENJOYS A GREAT HOLD OVER ORGANIZED MILK

PRODUCERS AND THEIR SUPPLY.SO NEW ENTRANTS WILL FIND
IT DIFFICULT TO OVERPOWER THEM.
ONLY AMUL HAS BEEN ABLE TO DISTORT THEIR MARKET
SHARE BEING A NATIONAL BRAND
2. BARGAINING POWER OF BUYERS

HUGE YOUNG AND LACTO VEGETARIAN POPULATION A HUGE

DEMAND FOR MILK AND MILK PRODUCTS.
MAJOR PLAYERS AND GOVERNMENT HAVING STRONG HOLD
OVER ORGANIZED MILK PRODUCERS AND SUPPLIERS SO NO
SCOPE OF PRICE DIFFRENTIATION.SO LESSER BARGAINING
POWER
3. BARGAINING POWER OF SUPPLIERS

MOTHER DAIRY PROCURES MILK FROM COOPERATIVE

SOCIETIES AND ITSELF IS REGULATED BY GOVERNMENT.THUS
GIVING BARGAINING POWER TO SUPPLIERS
BEING A STATE COOPERATIVES 3/4TH OF THE CUSTOMER
SALES PRICE GOES TO MILK PRODUCER(MOTHER DAIRY)
4. THREAT OF SUBSTITUTES

IN INDIA MAJORITY BEING A LACTO-VEGETARIAN SUBSTITUTE

OF MILK AND MILK PRODUCTS IS NOT THERE

5. COMPETITIVE RIVALRY

DUE TO MANY GOVERNMENT INITIATIVES THE POSSIBILITY OF

NEW ENTRANTS IS QUITE HIGH
THE CHALLENGE OF STRONG AND EFFICIENT SUPPLY CHAIN
FROM CATTLE OWNERS TO CONSUMERS MILK BEING
PERISHABLE IN NATURE,IT IS VERY ESSENTIAL TO BUILD THIS

ROBUST CHANNEL AND HENCE SEASONED PLAYERS HAVE

STRONGER ADVANTAGE.