SWOT Analysis - Indian Dairy

Download as pdf or txt
Download as pdf or txt
You are on page 1of 3

8/19/2017 SWOT Analysis: Indian Dairy

Swot Analysis : Indian Dairy

You are Here: IndiaDairy.Com / Facts & Figures / SWOT Analysis: Indian Dairy

ON THIS PAGE:
The study of this SWOT analysis shows that the strengths and
opportunities far outweigh weaknesses and threats. The
strengths and opportunities are fundamental and weaknesses and
threats are transitory.....
Strengths Opportunities
Weaknesses Threats

SWOT ANALYSIS OF INDIAN DAIRY


INDUSTRY
Strengths:

Demand profile: Absolutely optimistic.


Margins: Quite reasonable, even on packed liquid milk.
Flexibility of product mix: Tremendous. With balancing equipment, you can
keep on adding to your product line.
Availability of raw material: Abundant. Presently, more than 80 per cent of
milk produced is flowing into the unorganized sector, which requires proper
channelization.
Technical manpower: Professionally-trained, technical human resource pool,
built over last 30 years.

Weaknesses:

Perishability: Pasteurization has overcome this weakness partially. UHT gives


milk long life. Surely, many new processes will follow to improve milk quality
and extend its shelf life.
Lack of control over yield: Theoretically, there is little control over milk
yield. However, increased awareness of developments like embryo transplant,
artificial insemination and properly managed animal husbandry practices,
coupled with higher income to rural milk producers should automatically lead
to improvement in milk yields.
Logistics of procurement: Woes of bad roads and inadequate transportation
facility make milk procurement problematic. But with the overall economic
improvement in India, these problems would also get solved.
Problematic distribution: Yes, all is not well with distribution. But then if ice
creams can be sold virtually at every nook and corner, why cant we sell other
dairy products too? Moreover, it is only a matter of time before we see the
emergence of a cold chain linking the producer to the refrigerator at the
consumers home!
Competition: With so many newcomers entering this industry, competition is
becoming tougher day by day. But then competition has to be faced as a ground

http://www.indiadairy.com/ind_swot.html 1/3
8/19/2017 SWOT Analysis: Indian Dairy

reality. The market is large enough for many to carve out their niche.

Top

Opportunities:
"Failure is never final, and success never ending. Dr Kurien bears out this statement
perfectly. He entered the industry when there were only threats. He met failure head-
on, and now he clearly is an example of never ending success! If dairy entrepreneurs
are looking for opportunities in India, the following areas must be tapped:

Value addition: There is a phenomenal scope for innovations in product


development, packaging and presentation. Given below are potential areas of
value addition:
Steps should be taken to introduce value-added products like shrikhand,
ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will
lead to a greater presence and flexibility in the market place along with
opportunities in the field of brand building.
Addition of cultured products like yoghurt and cheese lend further
strength - both in terms of utilization of resources and presence in the
market place.
A lateral view opens up opportunities in milk proteins through casein,
caseinates and other dietary proteins, further opening up export
opportunities.
Yet another aspect can be the addition of infant foods, geriatric foods
and nutritionals.
Export potential: Efforts to exploit export potential are already on. Amul is
exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following
the new GATT treaty, opportunities will increase tremendously for the export
of agri-products in general and dairy products in particular.

Top

Threats:
Milk vendors, the un-organized sector: Today milk vendors are occupying the pride
of place in the industry. Organized dissemination of information about the harm that
they are doing to producers and consumers should see a steady decline in their
importance.

The study of this SWOT analysis shows that the strengths and opportunities far
outweigh weaknesses and threats. Strengths and opportunities are fundamental and
weaknesses and threats are transitory. Any investment idea can do well only when you
have three essential ingredients: entrepreneurship (the ability to take risks), innovative
approach (in product lines and marketing) and values (of quality/ethics).

The Indian dairy industry, following its delicensing, has been attracting a large number
of entrepreneurs. Their success in dairying depends on factors such as an efficient yet
economical procurement network, hygienic and cost-effective processing facilities and
innovativeness in the market place. All that needs to be done is: to innovate, convert
products into commercially exploitable ideas. All the time keep reminding yourself:
Benjamin Franklin discovered electricity, but it was the man who invented the meter
that really made the money!

Top

http://www.indiadairy.com/ind_swot.html 2/3
8/19/2017 SWOT Analysis: Indian Dairy

http://www.indiadairy.com/ind_swot.html 3/3

You might also like