A Report on

Market growth dynamics of Cheese Market in India

at

PARAG MILK FOODS

By

CHANDRAKANT PAWAR
MBA 3rd semester
REGISTER NO: 14SKCMD034
Under the Guidance of

Industry Guide :Mr Ajith

Faculty Guide : Prof Anupama Iyer

EMPOWERING MINDS

ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project
report for Parag Milk Foods Pvt Ltd, Bangalore. It has been a
great experience for me to undergo my summer training at
Parag Milk Foods, which would be possible because of the
support of people around me. I would like to extend my sincere
thanks to all of them.
I would like to express my gratitude to all those who gave
me the encouragement to complete this project. I would like to
thank my guide

Dr. Anupama Director of MBA, College

Authorities, C&PR Cell and for providing me the

opportunity to work with one prestigious organization.
I am highly indebted to Mr.Ajith.S and Mr.Manjunath.B.N of
Parag Milk Foods, for their guidance and constant supervision
as well as for providing necessary information regarding the
project & also for their support in completing the project.
I would like to give my special thanks to my parents, their
love, support and blessing enabled me to complete this Project
work. My thanks and appreciations also go to my colleague in
developing the project and people who have willingly helped
me out with their abilities.

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DECLARATION
I hereby declare that the project entitled Market Growth
Dynamics of Cheese Market in India submitted for the Parag
Milk Foods Pvt Ltd is my original work and the project has not
formed the basis for the award of any degree, associateship,
fellowship or any other similar titles.
Signature of the Student:
Place:
Date:

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EXECUTIVE SUMMARY

Parag Milk Foods is one Indias largest private diary

organisation and the largest producer of cheese in Asia.
The project basic objectives are to understand the diary
needs of institutional buyers and promoting Go and Govardhan
brands of Parag Milk Foods in bangalore at the same time. In
todays competitive world while entering in the market it is very
necessary to have good knowledge of the potential of a
particular market. The information regarding the activities of
competitors existing in the market so that we can plan our
each activity according to that. Also it is necessary to retain the
existing customers apart from attracting the new customers.

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The project was aimed to find out various strategies that

can be implemented to increase the intuitional and retail sales
of Parag Milk foods in Bangalore region. These strategies were
suggested after a research on the milk industry in Bangalore.
There was questionnaire prepared for institutional buyers i.e.
Hotels, restaurants and caterers (HoReCa).
We encountered a little problem in collecting data as the
buyers were reluctant in providing any kind of information on
their relationship with the distributor/company. Also to ensure
that the information was accurate, the buyer had to be cross
questioned on many occasions.

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CONTENTS

Chapter No
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter

1
2
3
4
5
6
7
8

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Particulars
Industry Profile
Introduction and history of the company
Objective and Scope
Research Methodology
Data analysis and Interpretation
Limitations
Findings of the Research
Suggestions and recommendations
Conclusion
References

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INDUSTRY PROFILE
Indian Diary Industry:
India is the worlds largest producer of dairy products by
volume, accounting for more than 13% of worlds total milk
production, and it also has the worlds largest dairy herd. As the
country consumes almost all of its own milk production, India
was neither an active importer nor an exporter of dairy
products

prior

to

year

2000.

However,

since

the

implementation of Operation Flood Programme, the situation

changed significantly and imports of dairy products reduced to
very small quantities. From 2001, India has become a net
exporter of dairy products and after 2003 Indias dairy import
has dipped while exports have increased at a fast rate. Yet the
countrys share in global dairy trade still remains at minor
levels of 0.3 and 0.4 percent for exports and imports
respectively. This is due to the direct consumption of liquid milk
by the producer households as well as the demand for
processed dairy products that has increased with the growth of
income levels, which have left little dairy surpluses for export.
Nevertheless, India consistently exports specialty products such
as casein for food processing or pharmaceuticals. The Indian
dairy sector is also different from other dairy producing
countries as India places its emphasis on both cattle and
buffalo milk. In 2010, the government and the National Dairy
Development Board have drawn up a National Dairy Plan (NDP)
that proposes to nearly double Indias milk production by 2020.
This plan will endeavour to increase the countrys milk
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productivity, improve access to quality feeds and improve

farmer access to the organised market. These goals will be
achieved through activities that focus on increasing cooperative
membership and growing the network of milk collection
facilities throughout India.
Despite its huge production volume, India nevertheless faces a
milk supply gap due to increasing demand from a growing
middle class population. Estimation suggests that Indian dairy
production is growing at a rate of about four percent per year,
yet consumer demand is growing at approximately double that
rate. Apart from the rapidly increasing demand for milk and
dairy products, other reasons such as the increased cattle feed
cost and low availability of dairy farm labour in the rural areas
have also resulted in increase in the cost of production. On the
other hand, the strong pressure from EU to open up its market
as well as the proposed free trade agreement with Australia
and New Zealand may also put Indias dairy sector in the risk of
being jeopardised. In order to maintain the development of its
dairy industry, focus needs to be placed on several areas. First,
cost of production has to be reduced through increasing
productivity of animals, improve animal health care and
breeding facilities and management of dairy animals. Second,
Indian dairy industry needs to further develop proper dairy
production, processing and marketing infrastructure, which is
capable of meeting international quality requirements. Third,
India can focus on buffalo milk based speciality products, such
as Mozzarella cheese, in order to meet the needs of the target
consumers.
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Beyond Milk: Value Added Dairy Products to boost up

profits
The time has arrived for dairy players to skim the cream out of
the milk business.
Rising consumption coupled with better margins in the value
added dairy products (VADPs) are driving the dairy players to
get into the growth and higher profitable trajectory. Change in
demographics and rapid urbanization have resulted into
manifold surge in the demand for VADPs.
Milk products such as curd which were largely home products
are

currently

available

under

various

brands.

Due

to

convenience, health benefits and increased consumerism, milk

derivatives like buttermilk, low fat yogurt and flavored milk are
nowadays part of regular consumption.

The traditional way.

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For decades, dairy players in India have been engaged in the

liquid milk processing activity only. Backed by operation White
Flood in 1970s, the milk industry in India witnessed the first
wave of development in the milk production which gave India
its status of the largest milk producer in the world.
This was spearheaded by the Co-operatives model which was
supported by the GoI. Ownership being with the farmers
instilled trust among the member milk producers in the
cooperative model, which also ensured transparent returns. In
addition, cooperatives also provided various services like cattle
vaccination, cattle insurance, artificial insemination, installation
of coolers at village level etc to improve productivity.
Further, there was minimal involvement of private players in
the industry as approximately 80% of the retail price of the
liquid milk went back to the farmers leading to low operating
margins (4-5%). This was despite the consistent upsurge in the
retail prices of the liquid milk. Consequently, the dairy
companies were left with insufficient internal funds to plough
back into the operations for adoption of modern technologies or
development of milk variants.
The above reasons coupled with factors such as evolving tastes
and preferences, higher affordability, etc, lead to the entities
venturing into the VADP segment for better profitability.
Going the creamy way.
Over the past decade, significant transformation took place in
the Indian demographic space which led to heightened
consumer interest in VADPs. This shift in the dynamics of the
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industry proved beneficial for the manufacturers since margins

in VADPs are more than double the margins in the liquid milk
segment. The profitability in liquid milk space ranges from 45%,

whereas

the

profitability

in

VADPs

ranges

from

12% to 18%, attracting private participation in the industry.

As per the industry estimates, the share of VADP in the milk
and milk derivatives segment is growing currently at around
25% every year and is expected to grow at the same rate until
2019-20.
Product innovations are likely to accelerate Indias dairy market
which is anticipated to improve industry margins by attaining
greater

scale,

higher

capacity

use

and

an

increasing

contribution from new milk variants. Further, the development

of

processing

and

packaging

technology

along

with

improvement in retail and cold storage infrastructure has

increased the shelf life of dairy products.

.the growth trajectory

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As per NDDB, the Indian dairy industry is all set to experience

high growth rates in the next eight years with demand likely to
reach 200 million tonnes by 2022 from 132 million tonnes in
2013. Presently, only 20% of the milk production comes from
the organized sector comprising co-operatives and private
dairies. The paramount factors driving the growth in the dairy
sector include rising disposable incomes, advent of nuclear
families and fast/instant food gaining ground in India. Other
factors such as structural changes in food habits, expansion of
fast food chains and popularity of pizzas and pastas aided the
usage of milk variants of mozzarella cheese, processed cheese
and flavored milk etc.
Increasing participation from the private sector.
Consumer preference towards VADPs is taking forward the dairy
sector. Besides brown-field/ green-field expansion, global dairy
companies too are venturing into milk derivatives business in
this part of the world.
The most recent one is the 100% acquisition of Tirumala Milk
Products Pvt Ltd by GroupeLactalis SA, France, one of the
largest dairy players in the world. Another French dairy major
Danone has also increased its presence in the Indian dairy
sector with slew of product launches such as flavored curd,
yoghurt etc.
Other investments include Nestle Indias acquisition of 26%
stake in Indocon Agro and Allied Activities Pvt
Ltd and Hatsun Agro Products Ltd acquiring 100% stake in
Jyothi Dairy Pvt Ltd.
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Companies such as Parag Milk Foods Pvt Ltd, Prabhat Dairy Pvt
Ltd have augmented their capacities in the recent past to meet
the increased demand of milk products.
.drawing investors attention
India consumption story and diversification by dairy players
into VADPs are drawing interests of investors which have led to
surge in the PE deals.
The

prominent

deals

include

investment

by

IDFC

and

MotilalOswal in Parag Milk Food Pvt Ltd, Rabobank group and

India Agribusiness Fund in Prabhat Dairy Pvt Ltd, IFC into
Modern Dairies Ltd and Blackriver Investment in Dolda Dairy
Ltd.
In one of the most recent investments, Fidelity Growth Partners,
India, along with participation of the existing social venture
investor, Aavishkaar, have invested in Odisha-based Milk
Mantra Dairy Pvt Ltd. Recent deals in the sector are the
indication that the investors perceive value in the deals and see
growth prospects in the Indian dairy space.
Right product mix likely to have a positive impact on the credit
profile of dairy companies traditionally, the credit risk profile of
dairy companies was characterized by low profitability and
moderate liquidity. The dairy companies rated by CARE are
largely in the BBB or BB category (refer the graph below)
primarily on account of moderate solvency profile.
However, Mother Dairy Fruit And Vegetable Private Ltd, Cooperatives associated with Gujarat Cooperative Milk Marketing
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Federation and some private dairies are in the AA and A

rating category on account of their superior procurement and
marketing channels and high share of VADPs in product
portfolio. During FY14, the credit profile of CARE rated dairy
companies have broadly remained stable.

The entities with the right product mix of liquid milk and VADPs
are

expected

to

have

better

profitability

and

solvency

parameters. Consequently, there is a high possibility of

improvement in the credit profiles of such companies given the
robust milk procurement and distribution system.

Cheese: the next big market in India

Among the processed dairy products, the most promising
segment both in terms of consumer demand and business
profitability is the cheese segment. Traditionally, India is not a
cheese-consuming nation as the Indian consumers palate has
been adapted to the softer Indian variant of cheese called
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paneer. But, in recent years, given the magnitude of the

demand from Indian consumers, global industry experts predict
that India is the next big market in terms of cheese
consumption. This forecast also accounts for the fact that,
although Europe and North America are the primary cheese
markets today, a saturation therein is forcing suppliers to look
elsewhere, to such currently major importers as Japan and
Russia, and to developing markets like India.
The Indian cheese market is presently worth around USD 237
mn, but is expected to grow at roughly 15-20 percent annually.
Product-wise, the global market deals in almost 3,000 varieties
of cheese, whereas in India only about 40-45 variants are being
marketed, presenting much room for the markets expansion.
By industry estimates, the current household penetration in
terms of cheese consumption is less than 7-8 percent. The per
capita consumption of cheese in India is a mere 200 gm per
year in contrast to the global average of 7 kg per annum; the
average for urban India, however, is 700 gm per person.
Geographically, the top six cities consume approximately 60
percent of all the cheese sold in India.
In India, the processed cheese market forms almost 45 percent
of the total market that is likely to grow a higher-than-average
CAGR of around 25 percent, which includes all spreads, cubes,
slices, tins, slabs, etc. Within the processed cheese segment,
around 60 percent of the market is dominated by un-spreadable
processed cheese. The segment is well organised, comprises
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regional, Indian, and international players, and is registering

high levels of entrepreneurial activity. On the other hand, the
unprocessed cheese market is largely associated with the soft
cheese category in India, usually associated with paneer. The
traditional soft cheese constitutes over 55 percent of the total
market, with only a small fraction thereof being contributed by
the organised sector and is expected to continually form the
major chunk, given the Indian consumers behaviour, for years
to come.

Chapter 1
INTRODUCTION AND HISTORY OF COMPANY
INTRODUCTION
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Gowardhan, founded by Parag Milk and Milk Products Pvt.

Ltd in 1992, is one of India's largest private dairies, with an
output capacity of 1,000,000 liters per day.
Located in a lush green village called Manchar in
Maharashtra (60 km from Pune), and also owns the largest cow
farm in India as well as Asia's largest cheese plant.
We are an ISO 9000 and AGMARK certified company,
committed to international standards of product quality. Our
product portfolio includes Skim Milk Powder, Whole Milk
Powder, Ghee, Processed Cheese, Butter, Dahi, proprietary
foods like Dairy Whitener and GulabJaab, Govardhan Mix
powder under the brand names of "Gowardhan" and 'Go' and
all made from 100% fresh cow milk.
A dairy plant consist of all manufacturing section used for
milk treatment and processing begins with milk reception and
ending with dispatch of the finished products. They operate
within the framework of the milk regulation and consist of a
production program and regulation, flow sheet, energy flow
sheet and functional descriptive.
The Genesis: He had a "Vision" to set up institution to help
the famous of near village to grow economically. He believed in
this vision of faluire as he conceptualized marketing of
successful milk which was unused by the farming community to
the village with his scientific way and the political to increase
milk production, he led to the step to his dream "PARAG MILK.

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Thus the pure intension of the entrepreneurship of

Shri.Devendra Shah, PARAG MILK & MILK Products Pvt. Ltd. is
one of the most popular dairy in the state of Maharashtra. It is
located on NH 50, Pune-Nashik highway, 65 km from industrial
city Pune, near Awasariphata at western of Mancher. The
factory spread over an area of 8 acres. The company hosts
plant and machinery supplied and erected by the world leaders
"Alfa-Laval" .Initially the plant was started with a handling
capacity of 30.000 Liters/day. At present the dairy handle milk
upto 8 Lakhs Liter/day in lean season. It has an annual growth
of 50%.
Parag milk is a multi-products dairy plant manufacturing
different milk products like Ghee, Butter, Dahi, Chass, Liquidmilk, Skim Milk Powder, Whole Milk Powder, Dairy Whitener,
Real Milk Powder, Cheese ,GulamJGovardhann ,UHT Milk,
Cheese(Cheddar cheese, Process cheese, Mozzarella cheese).It
is an ISO-9001 HACCP certified company. The brand name of is
"GOWRDHAN" Company also has the certificate of MMPORC
No.310/r-MPO/2003.
Vision:

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Infrastructure & Technology

Our commitment to quality and innovation has resulted in
huge

investments

in

infrastructure

and

technology.

Our

integrated dairy and cow farm at Manchar, is rapidly scaling up

to cater to the ever expanding circle of customers in India, who
seek all-natural, wholesome and delicious dairy products.

Dairy Plant, Manchar, Pune

The extensive ranges of our products are processed at this
ultra modern dairy. Our dairy plant is fully automated, of
international standards and equipped with the best European
technology. Right from reception of milk to the finished product,
we

maintain

strict

no-human-contact

through

the

entire

manufacturing process. Our plant churns out 1,000,000 litres of

milk per day, has an output capacity upto 10 MT of butter, 25
MT of ghee and 10 MT of dahi (yoghurt) and 65 MT of milk
powder.

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Our cheese plant with a production capacity of 40 MT, it's

one of the only two facilities in Asia with UHT technology. The
equipment,

imported

from

Stephan

Machinery

Germany,

pioneers in cheese processing equipment, allows the UHT

treated cheese to be stored in ambient condition without
refrigeration up to a period of 6 months in tropical countries like
India. The company is readying itself to flood the national
markets with its UHT treated, superior quality cheese which will
be available in a variety of forms such as slices, wedges
spreads and a range of exciting flavours under a new brand
name, Go.
DAIRY FARM
Gowardhan manufactures dairy products that are not just
100% natural, but also lighter and rich in calcium.
That's because the milk, procured from its own cow farm the largest in Asia - is 100% natural cow's milk.
What's more is the use of latest European technology in
our manufacturing units ensures the superior quality and
freshness of our products, giving them the unique Gowardhan
taste and flavors.
The plant have the dairy farm also it have nearly about
2500 cows. Each cow gives milks about 20 to 25 Liter/day.

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PRODUCT PROFILE
We are offering our clients a wide range of milk products. All our products are
processed under hygienic conditions, so that it is safe for our clients to
consume. As the whole process is mechanized, it keep the products safe from
the germs and contaminations spreading by hands. As a result of the unmatched
quality of our products, these are demanded in various world famous companies
in various regions of the world.
The range includes the following products: Gowardhan Milk

Gowardhan Gold

Pasteurized and Homogenized from 100% pure cows milk, Gowardhan Gold
packs a major nutritional punch for mega active people! Its Rich calcium
content promises stronger bones. It Has a Rich Creamy Taste and texture that
both children and adults will love.
Gold milk is available in 500 ml and 1 liter packets.

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 Gowardhan Fresh

Homogenized and Pasteurized toned milk, Made from 1005 pure cows milk,
High calcium content, store under refrigeration at 4C , Available in 250ml,
500ml and 1liter.

Gowrdhan Premium Ghee

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100% pure clarified milk fat, sweet aroma of pure ghee, no added color, store at
ambient temperature, Available in poly pack 200ml,500ml,and 1liter,Ghee Jar
200ml,500ml, 1ltr and 5ltr, BB 100 and 200ml, RT500ml and 1ltr, Tin 5ltr and
15kg.

Gowardhan Butter
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Pasteurized Table butter & unsalted butter, Made from modern continuous
butter making machines, 100% natural, no added colors, Low salt content, Mild
taste and firm consistency, store under refrigeration at4c , Available in table
butter 100g,500g,and 20kg, unsalted butter 500g and 20kg.

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Gowardhan Processed Cheese

Blends of Cheddar cheese of different age, Firm consistency and smooth

texture, High melting point, Store under refrigeration at 4C , Available in 200g,
400g, and 1kg.
Blends of Cheddar cheese of different age, firm consistency and smooth texture,
High melting point, Store under refrigeration at 4c , Available in 200g, 400g,
and 1kg.

Go Mozzarella Cheese

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Made from pasteurized cow milk, using Italian technology, Excellent

stretch ability, High melting point, Store at-18C , available in 200g, 1kg,
2.5kg, Diced available 2kg.
Mozzarella Cheese Shredded:
Available in 500g, 1kg, and 2kg, also available in Mozzarella Blend with
Cheddar in 2kg.

Gowardhan Dairy Whitener

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Contains 18% fat, Rich & smooth taste, Sweetened powder, Made from partially
skimmed spray dried milk, store at ambient temperature, available in pouches
16g, 32g, 500g, 1kg, 10kg, jar and 25kg bag.

GowardhanGulabJamun Mix

G Gowardhan Trim Dahi

Gowardhan Fresh 'n' Thick Dahi

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Made from Pasteurized toned milk and active culture , Contains, 3% fat, Thick
and natural taste, 0% cholesterol ,Store under refrigeration at 4C , Available in
80g, 200g, 400g,1kg, and 2kg.

GowardhanChass

Cheddar Cheese

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Traditionally aged over 3months, Rich and natural taste, Store under
refrigeration at 4C, Available in block 1kg, 2.5kg, 20kg, and Diced kg.

Go Topp up

Milk based instant Energy Drink (charge up!) , 10% extra proteins , Made
from 100% cows milk, unique taste, Distinct Indian flavors: Rose ,
Mango, Elaichi, Strawberry, Butterscotch &Pista , convenient Ring crown
pull cap, long shelf life of 6 months at room temperature available in 200/
180ml glass bottles.

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Creamy Cheese Spread

Go Cheezooz

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Pizza Cheese

Blend of Mozzarella and Cheddar cheese, Firm and smooth texture, High
melting point, excellent strechability, Store under refrigeration at 4C,
Available in 200g and 1kg.
Cheese Shredded

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Available in 500g, 1kg, and 2kg, Also available in Mozzarella Blend with
Cheddar in 2kg.

GO Slice Cheese

Made from processed Cheddar cheese, Worlds best German UHT technology
ensures longer shelf life, Rich and natural taste, High calcium content, Store
under refrigeration at 4C , Available in 40g, 100g, 200g, 47g, and 750g.
GO FRESH CREAM

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Low fat cream, 25%, Made from 100% pure cows milk, unique taste,
All-purpose cream, ideal for tea, coffee, cakes, truffles, pastries, fruit,
salads and favorite. Indian curries, Clean flavor and free flowing, long
shelf life of 6 months when stored at ambient temperature, Available in
200ml and 1ltr UHT bricks.
GO Butter milk
Traditional Indian drink with spices provides a lactic taste with thirst
quenching qualities.
Garnished with Ginger, Salt, and Jeera.
Ideal replacement for carbonated beverages , ideal appetizer as well, as
being pro-biotic, aids in digestion and prevents gastri ailments, shelf
life; 10days when stored below 4C for pouches, 180 days when stored in
ambient conditions for UHT bricks, Available in plain & spicy variants,
pouch 200ml and 1ltr,UHT brick 200ml and 1ltr, UHT fino 200ml.

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 GO PANEER

Soft , fresh and easy to cut into pieces, High in calcium and protein , Low
fat content , store under refrigeration at 4C , shelf life 75 days, Available
in block 100g, 200g, 500g and 1kg, Diced 200g and 1kg.
GO YOGHURT

Made from pasteurized toned milk and active culture , come in 8 flavors
strawberry, Mango, pineapple, Mixed Berry, Lychee, Guava ,Vanilla,
and Kesar, Contains 2.7%fat, Contains 10%fruit, Rich and naturals taste,
Store under refrigeration at 4C.
Available in 80g.

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o Go Milk

Double toned milk, 100% natural, 0% preservatives , Extra protein & calcium ,
Made from cows milk, shelf life 6 months, store at ambient temperature ,
Available in tetra packs 200ml and 1ltr, Fino packs 200ml and 500ml ( shelf life
3 months ), unique flip top cap.
Some of the features of our products are as follows:

Low fat content

Longer preserving time

Smooth texture

Easily spreadable

Fast melting capacity

Free from contamination

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Fresh Nutritious

Chapter 2
OBJECTIVE AND SCOPE
PROBLEM STATEMENT
Market growth dynamics of the Cheese Market
1. OBJECTIVES OF PROJECT HORECA
Project HORECA was undertaken by keeping the following
objective in the mind
A.PRIMARY OBJECTIVE
1. To find the market penetration of cheese products and
Parag Milk products among institutional buyers.
2. To understand the cheese usage among the institutional
buyers.
3. To find the problems faced by existing customers.
4. To collect the information about the competitors
B.SECONDARY OBJECTIVE
1. To educate and generate awareness of Go and
Govardhan products
2. SCOPE OF PROJECT
The study carried out in Malleshwaram and Jayanagar
regions of Bangalore city so, its scope is mainly limited to that
area only.
It gives information about the parags current
market situation.
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 It gives information about the cheese usage

pattern among institutional buyers.
It gives information about the services given by
distributor to their buyers.
It

gives

information

about

the

competitors

products
It will serve consumer in better manner

Chapter 3
RESEARCH METHODOLOGY
RESEARCH DESIGN FOLLOWED
Descriptive

Research

is

the

research

method

used

because descriptive studies embrace a large proportion of

market research. The purpose is to provide an accurate
snapshot

of

some

aspect

of

the

market

environment.

Descriptive research is more rigid than exploratory research

and seeks to describe users of a product, determine the
proportion of the population that uses a product, or predict
future demand for a product. As opposed to exploratory
research, descriptive research should define questions, people
surveyed, and the method of analysis prior to beginning data
collection. In other words, who, what, where, when, why, and
how aspects of the research should be defined.
SAMPLING:SAMPLING TECHNIQUE USED

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In this project the technique of sampling used was

Judgment sampling. Judgment sampling involves the choice
of subjects who are most advantageously placed or in the best
position to provide the information required.
SAMPLE UNIT
In this project case sample were the hotels

and

restaurants in the Malleshwaram and Jayanagar region

of Bangalore city

& the aim was to know the what diary

products theyve been using and the brands.

SAMPLE SIZE: 60 restaurants.

DATA COLLECTION TECHNIQUES

SOURCES OF DATA

PRIMARY DATA
To collect primary data from Retailers Questionnaires
were used. Questionnaire was prepared very carefully so that it
may prove to be effective in collecting the right information.
SECONDARY DATA
Secondary data collected from different website. This
secondary data formed the conceptual background for the
project. This secondary data was compared with the primary
data collected in area.
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RESEARCH INSTRUMENT
The

research

instrument

used

in

the

project

was

Questionnaire to collect primary information, it provided

flexibility by using more close ended and few open ended
questions.
METHOD OF DATA COLLECTION
Information

was

collected

by

personally

contacting

institutions through interviews.

DATA ANALYSIS AND INTERPRETATION

1. Cheese usage among restaurants and hotels

Regularly
Sometimes
Never
Total

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respondents
15
40
5
60

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Responses

Never; 8%
Regularly; 23%

Sometimes; 69%

Interpretation : Only 23% of the respondents used cheese

regularly and
8% have never used cheese till date

2.Most used cheese among restaurants and hotels

Cheese type
Processed
Mozerella
Cheddar
Others

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responses
50
15
07
05

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responses

other; 6%
cheddar; 9%

mozerella; 19%
processed; 65%

Interpretation : Processed cheese is the most widely used

cheese among the restaurants

3.Most widely used cheese brand among the restaurants

and hotels

Amul
Milky mist
Go
Total
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Respondents
40
28
2
70
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customers

Go; 2%

milkymist; 40%
amul; 58%

Interpretation :amul is the most preferred cheese brand with

58% restaurants using it,next to milky mist with 40%

4. Place of purchase
Place
Distributors
Departmental
Bazaar)
Total

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store

Responses
20
Metro/Big 40
60

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Distributor; 33%

departmental store; 67%

Interpretation:

57%

of

the

buyers

prefer

buying

from

departmental store such Metro cash and carry, Reliance fresh,

More, Big bazaar and others.

5. Are you familiar with Go/Govardhanproducts

Yes
No
Total

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Responses
10
50
60

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Yes; 17%

No; 83%

Interpretation: Only 14% of the surveyed restaurants were

familiar with the products of Parag Milk Foods

Other Findings :

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1)

Most of the restaurants/ eat outs did not have any

knowledge regarding different varieties of cheese
available

2)

Those who used cheese, used it very occasionally

3)

Some of them were ready to try and requested for

samples to try

4)

Some were ready to switch if the prices were

competitive and were given credit facilities.

Chapter 5
LIMITATIONS OF THE RESEARCH

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 The survey is limited only to the regions of Malleshwaram

and Jayanagar areas of Bangalore city.
Time period of the project was 5 weeks, which may not be
enough to understand the whole market.
Respondent hesitate to give true response to question.

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Chapter 6
FINDINGS OF THE RESEARCH
From the survey conducted and interacting with various
owners and purchase managers of restaurants I came to know
that the cheese usage among the consumers is pretty low and
people had little or no knowledge about different varieties of
cheese and how to use them. And also the brand awareness of
Go/Gowardhan products is very much low and consumers were
very hesitant of buying an unfamiliar brand mostly with
concern that would affect the taste of their existing products
and also they were very price sensitive and were ready to
switch only the prices of the products were less than what they
are currently buying. Few also were ready to switch if given
credit facility. There were only few who were ready to switch
based on the quality of the product.

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Chapter 7
SUGGESTIONS AND RECOMMENDATIONS
As consumers are continuously gaining exposure to
different varieties of cuisine and are ready to try and
experiment with different varieties of dishes especially foreign
cuisine and as the trend is going to continue, it is going to
provide to huge opportunity for Parag Milk Foods to be a part of
this trend especially in the cheese market since only 1% of the
total dairy sales comes from cheese.
These are some suggestions and recommendations, I think will
help Parag Milk foods

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 Govardhan/Go products are relatively less known brands in

south India, so they should educate and generate
awareness of their existence
Company should spend more on digital marketing since
there presence on social media sites and the engagement
with consumers is pretty low
Company should do more of content marketing,
Increase their presence in modern retail formats
Educate consumers and institutions (restaurants/hotels)
about the varieties of cheeses and their usage
The company should position its Cheese spreads and
cheese sauces as an alternative to ketchups and jams
Should do product placements on cookery shows
Increase ATL advertising

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Chapter 8

Conclusion
Cheese value sales will see a value CAGR of 13% at constant
2014

prices

over

the

forecast

period.

The

increased

availability of cheese varieties like mozzarella and cheddar,

coupled with the growing awareness about the usage is likely
to

drive

further

unconventional

growth.

cheese

However,

variants

the

would

popularity
remain

of

largely

restricted to urban areas like Bangalore, Mumbai and

Delhi.Parag Milk Foods should keep its focus of value added
products and make the most of this growing trend among
consumers looking for new experiences.

References

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http://indiamicrofinance.com/indian-dairy-industry-report-2014pdf.html
http://www.indiaretailing.com/FoodGrocer/7/42/46/10104
http://www.gowardhanindia.com
http://www.euromonitor.com/cheese-in-india/report

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