Category Analysis Report

Indian Dairy Industry

Focus on Probiotic and Milk Ice
Creams
Market Overview
• India is one of the fastest growing markets for milk and milk
products.
• The market size for milk and milk products (formal + informal
sector) is INR 2000 Bn (Euro 30.8 bn).
• The organized market is growing at nearly 10 percent in
terms of value annually.
• The demand for value added milk products (Cheese, Dahi
(Indian yoghurt); probiotic drinks, Paneer, Ice creams, etc)are
increasing at a double digit rate
Market Overview
• The formal sector (Amul model + Private dairies) handles only
18% of the total milk produced in the country.
• There is a huge demand for milk and milk products in India. The
market for most of these products is growing at more than 10%-
15% per annum and specifics to probiotic the growth is 25%
annually
• The market for such products is expanding mainly because of the
increased income coupled with higher tendency to spend. The
demand for milk and milk products is in its growth phase. Gujarat
Co-operative Milk Marketing Federation (GCMMF) with its brand
“AMUL”, is clearly the market leader in various milk products, but
that does not mean that it is serving the whole of the market.
Market Overview
• The reach of GCMMF is limited because of limited level of
procurement which is concentrated mainly in Western region
on India.
• Other major dairy players include Mother dairy, Nestle,
Britannia and various other state co-operatives in India.
 Products Overview
• Milk and Milk Value added products can be broadly
understood as:

Lassi/Chaach/
Butter
Butter Milk

Yogurt /Curd Probiotic

GCMMF Drinks from
Cheese brands
Nestle /Mother /Paneer
Dairy/Britannia and Khoya and
state regional players Cream
 Category Detail

Lassi/Chaach/
Butter Sweets Organized Unorganized
Butter Milk

Probiotic Also Probiotic Local Indian

Yogurt /Curd
Drinks from ice cream preparations
brands like Kulfis
Cheese Yakult/Mother
/Paneer Dairy/Nestle

Khoya

Cream
The Probiotic Category in India
PROBIOTICS

Yogurt/Curd
Milk Drinks Ice Creams
Dahi

Organized Organized Organized Sector :

Sector : Sector : 1.Amul ( Probiotic)
1.Yakult 1.GCMMF 2.HUL
2.Mother Dairy 2.Nestle ( P) 3.Mother Dairy
3.Mother Dairy 4.Vadilal
4.Britannia 5.Cream Bell
5.Other
Regional
Players
India Probiotic Situation
100 Crore Market with handful of players

Amul, Nestle and Yakult are main entrants in Probiotic

Probiotics introduced in 2007 only

Hurdles  Lack of awareness, retail mind set,

lack of cold chain and such facilities.

Market is still nascent with limited consumer

awareness

Competition strategy is on educating

consumers about probiotics and their benefits

Category targets to  Urban consumers in

metros who are health conscious.
PROBIOTIC MILK DRINKS
 Probiotic Drinks
• Yakult Probiotic Milk Drink
Concept
Delicious Probiotic Milk Drink
Yakult is a fermented milk drink
containing over 6.5 billion
Probiotic (friendly) bacteria -
Lactobacillus casei strain
Shirota.
Value Benefit :
The friendly bacteria in Yakult
help to improve digestion, build
immunity when consumed
everyday.
http://www.youtube.com/watch?v=oRuZW_HB_Zk
Price Point Distribution and
Communication
Pack of 5 bottles @ Rs 50 DTC through home delivery
system by Yakult lady
This is a unique distribution
system created to make
consumers fully understand the
product and its benefits
Yakult is available at selected
retail also
Bollywood actress and
superstar Kajol Devgan is the
brand ambassador for
promoting its probiotic health
drink Yakult in the Indian
market
 Probiotic Drinks
• Mother Dairy Nutrifit ( Probiotic Milk Drink)
Concept Price Point Distribution and
Communication
The Probiotic Drink that Builds Rs 10 for 100 ml Sold through Mother Dairy
Immunity: “Small on Size, Big Outlets /Retail Channels across
on Immunity” Delhi NCR

Value Benefit
Focuses on immunity
Mother Dairy’s Nutrifit
contains billions of LA5
friendly bacteria, which
strengthen the body’s
defenses against infections &
diseases over time.
 Fermented Drinks
• Mother Dairy B active ( Pro biotic Lassee)
Concept Price Point Distribution and
Communication
b-Activ Probiotic Lassi SKU : 200ml Sold through Mother Dairy
A tasty, refreshing way to Outlets /Retail Channels across
quench your thirst Mother Delhi NCR
Dairy b-Activ Lassi also gives all
the advantages of Probiotic Communication based on
properties. It is available in an Health
easy to use cup format adding
to the convenience.

Value Benefit :
Focussed on B Active for Pro
Biotic Properties to strengthen
immunity
 Fermented Drinks
• Amul Kool Lassi
Concept Price Point Communication
Healthy Rich Lassi ( Milk drink) 1 Ltr Tetra Pack TV Commercial
Rich in Calcium Based on refreshment and
Health

Value Benefit :

Taste and Refreshment Marketed through retail and

combined with health Amul Parlors

http://www.youtube.com/watch?v=wj653xc_wHM
 Fermented Drinks
• Mother Dairy Lassi
Concept Price Point Distribution and
Communication
Mother Dairy Lassi is a tasty and Available in 2 variants DTC through Mother Dairy
refreshing drink made from Sweet Lassi ( 300 ml) Outlets and Retail
pure, nutritious milk. Drink it Salted Lassi ( 200 ml)
either as an anytime snack or as Based on refreshment and taste
a tasty accompaniment to your platform
food. Either way it's a great
tasting drink.

Value Benefit :
Refreshment with taste
 Fermented Drinks
• Brittania Milkman Sweet Lassi
Concept Price Point Communication
Placed lassi as a traditional Rs 10 for 200 ml tetra pack TVC focus on fun and
Indian yogurt drink into a shake refreshment
hip hopp concept where stunts
are performed to make lassi Available at retail and grocery
stores

Value Benefit :
Refreshment / Fun / Thrill

http://www.youtube.com/watch?v=y41ntmmv99M
YOGURT / CURD / DAHI
 Market Overview
• Dahi is the Indian counter part for Yoghurt. Dahi is consumed on a daily basis in
Indian house hold.
• The market size estimated for Dahi is INR 160 Bn (Eur 2.bn) in value terms and
around 5.2 million tonnes in volume terms in organised segment.

• The market is mostly unorganized with organized players handling only 1% of the
share. The demand for Dahi is increasing at the rate of 20% per annum.

• Products like Yoghurt is manufactured mostly by organized players. The market for
Yoghurt is currently small (~ 1% of Dahi market), primarily because dahi is a
traditional Indian dairy product, also, Yoghurt is in its introductory phase in India
and it will take some time before the prodcut picks up demand.
• The Amul brand from GCMMF is the market leader in the organized Dahi market.
Nestle and Britannia are other players manufacturing Dahi and Yoghurt
 Main Players and Offerings
• Key Players
• Amul Masti Dahi enjoys a market share of 75- 80% except in South
• Nestle : Second biggest player with pressence in North and South
( 30% Market Share)
• In regional players :
• Mother Dairy is in Delhi ( 66% in Delhi)
• Mahananda/Gowardhan is in Mumbai
• Nandini, Aavin , Heritage and Nilgiri is in South
 Market Overview
• The total packaged curd market in India is estimated at 40,000-60,000
tonnes per annum, of which Amul is the market leader ( 70%) and Nestle
has a 30 per cent market share the second largest player

• Milk products market in general and the branded dahi market in particular
is on a high growth trajectory. Pegged at about Rs 200 crore, the market
for branded dahi is growing at 20% year on year. Apart from the three big
players, it also has a clutch of strong regional brands.

• Organised players are growing at 20-25 per cent despite their minuscule
presence.
 Probiotic Curd/ Dahi
• Nestle Nesvita
Concept Price Point Communication
Nestle Nestvita TVC, Social Media portraying
Nestle NESVITA Dahi is a health benefits of Probiotic
deliciously thick ‘n’ tasty low fat foods.
DAHI enriched with the http://www.youtube.com/watc
goodness of more than 100 h?v=Ttux6cMEcuM
CRORE special PROBIOTICS in
every serving (100g), which
work hard everyday to ensure
your digestive system is strong
and healthy.

Values :
Probiotics / Immunity and
digestion
 Probiotic Curd/ Dahi
• Mother Dairy b-Active Plus
Concept Price Point Communication
Mother Dairy-b –ActivPlus
“Happy Tummy to You”

'With the growing health

consciousness amongst
consumers, the consumption of
the new fiber rich probiotic dahi
provides consumers with the
added benefits of 'improved
nutrient absorption' and a well
balanced digestive system
besides the goodness of dahi”

Values :
Probiotics / Immunity and
digestion
 Probiotic Curd/ Dahi
Concept Concept
'

Amul ProLife
 Probiotic Curd/ Dahi
Company- Brand
Nestle- Nesvita
Mother Dairy-b –ActivPlus
“Happy Tummy to You”
Amul ProLife
Means of communication
Seminars for nutritionists by women to focus
on advantages of probiotic food. Doctor
engagement programs targeting physicians
and dieticians. Sampling at hospital cafeteria,
malls and offices for youth to promote
healthy lifestyle.
TVC. Amul –’ New Taste of India’ campaign to
promote its range of new products including
probiotic dahi and ice cream.
 Probiotic Curd/ Dahi
Company- Brand Product Packaging Price
200 GM Rs. 15
Nestle- Nesvita 400 GM Rs. 25

Mother Dairy-b – 90 GM Rs. 6

ActivPlus 200 GM Rs. 14
“Happy Tummy to You” 400 GM Rs. 24

Amul ProLife
 Nestle Fruit Yoghurt
Company
Concept Price & Size
- Brand
This new innovation combines the
goodness of natural yoghurt and
real fruit. Being 98% fat free, this
product is perfect for that indulgent
Nestle- moment providing the healthy
Milkmaid sweetness.
Fruit Yoghurt Packaged in an attractive shrink 100 GM- Rs. 20
(Strawberry sleeved tub and endorsed by the
& Mango) MILKMAID brand, Nestle MILKMAID
fruit yogurts truly stand up to
delivering on their promise -
“Anytime treat , Anytime health”.
MILK ICE CREAMS
 The industry is growing steadily with the northern and western
regions accounting for the largest consumption

Overview Size and Growth

• Size and Growth
USD mn
– Worth USD 209 mn in 2008 +12% 240
250 209
– Growing at 12% p.a. in 2005-2008 182
200
– Forecast to increase by 15% to reach 148 155
150
USD 240 mn in 2009
100
• Characteristics 50
– Northern and western regions together 0
account for 70% of total market 2005 2006 2007 2008 e 2009 f
consumption
– Profit margins range from 30% to 50% Geographic Distribution
depending on the product segment
– 60% of ice cream sales occur during the North
summer months of April-June
30%
– 80% of sales is through street vendors
– Vanilla is the highest selling flavour and
West 40%
together with strawberry and chocolate it
10%
accounts for 70% of the market East

20%
South

Source: The Economic Times “Showers upset regional sales targets of marketers”, May 2007; IBEF “FMCG companies target consumers
in summer”, March 2008; India Environment Portal “Is our ice cream natural or synthetic?, August 2007; The Financial Express “Fire & Ice”,
June 2008; 51Rainbow company website
Main Players in Ice Cream
Milk Ice Cream Category
• Mother Dairy
– Key Strengths
• Popular ( Delhi)
• Ideal in milk ice creams
• Popular for variety of product offerings : Milk, Curd, Butter
• Trust and reputation
• Milk Ice Creams
• Targeted to teenagers / youth and adults
• Priced at Rs 10-30
• Communication based on health / family fun through TV /OOH
• Most of the sales outside school and market place
• Family Packs at night
 Product Analysis
Mother Dairy Current Offerings Pack Size Cost (INR)
Maximum competition may
come from Lic Lollies
Available in different flavors of Cola, Lemon, Orange, available in 7 flavors priced
Lic Lollies Mango,Mangoraspberry, shararat, chulbuli 55gm/60ml 5 at Rs 5
Cool Buddies Cool buddy choco bitz 40gm/50ml 12  
Smileys Orange Bar 50gm/60ml 18  
Cassatta Cassatta Brick 90gm/150ml 35  
Kulfi Pista 50gm/60ml 18  
  Kesar 50gm/60ml 15  
Cups Chocolate 48gm/90ml 18  
  Kaju Kishmish 48gm/90ml 20  
  Chocochip 48gm/90ml 20  
  Kesar Pista 48gm/90ml 22  
  Butter Scotch 48gm/90ml 18  
  Strawberry 48gm/90ml 10  
  Vanilla 48gm/90ml 10  
Sunday Magic Jamaican Almond Fudge 90gm/150ml 20  
  Coffee Excess 90gm/150ml 20  
  Shahi Mewa Malai 90gm/150ml 20  
Fruit Classic Strawberry Crush 525gm/1ltr 180  
  Mango Marvel 525gm/1ltr 180  
  Litchi Surprise 525gm/1ltr 180  
         
Dietz Mango /Kesar Bahaar /Butter Scotch 500ml 85/95  
Family Pack Vanilla 525gm/1ltr 120  
  Strawberry 525gm/1ltr 110  
  Butter scotch 525gm/1ltr 150  
  Chocolate 263gm/500ml 80  
  Chocochip 525gm/1ltr 155  
  Chocofudge 394gm/750ml 145  
  Shahi nazrana 263gm/500ml 75  
  Fruit and nut 263gm/500ml 85  
  Pine apple 368gm/700ml 155 Offered as 1+1 Free
  Anjeer 368gm/700ml 180  
Milk Ice Cream

• Kwality Walls Offerings in Milk Formats

– Key Strengths
• Premium Imagery
• Popular
• TV ads
• Trust and reputation
• Varieties in chocolate ice
creams
• Attractive packaging
– Cornetto and Feast are
highest selling products
– Priced at Rs 20-30
– Targeted to youth
– Communication based on
romance and indulgence
through TV, Outdoor Media ,
Social Media
 Product Analysis

Kwality Walls Current Offerings Pack Size Cost ( INR)

Cornetto Choco Fudge 115ml/55gm 20
  Butter Scotch 115ml/55gm 30
  Snackers 45ml/22gm 15
  Flirty Strawberry tease cake 115ml/55gm 30
  ~Double chocolate 115ml/55gm 25
  ~chocolate truffle temp 115ml/55gm 30
  ~Black forest flirt 115ml/55gm 30
       
Feast Chocobar 70ml/34gm 15
  Chocolate 70ml/34gm 25
  Almond Fudge   closed
  Fruit and Nut 70ml/34gm 25
       
Paddle Pops Black Grape Jelly   closed
  Candy Cake Xplosion   closed
  Choco Berry Nova   closed
  Choco Vanilla   closed
  Jelly Burst 55ml/55gm 10
  Twista Ninja 70ml/44gm 15
  Fun Orange 45ml/45gm 5
  Fun Mango 45ml/45gm 5
  Chocobar Junior 45ml/22gm 10
  Crunchy choco dip 45ml/30gm 10
  Rainbow Punch 55ml/42gm 10
  Strawberry jelly kick 65ml/45gm 10
       
 Product Analysis
Selection Caramel Cruch   closed
  Nochiola 750ml/410gm 160
  Cookies and Cream   closed
  Fruit and Nut 800ml/445gm 140
  Mocha Brownie Fudge 800ml/420gm 140
  Tiramisu 750ml/410gm 160
  Litchi Bites 800ml/430gm 140
  Dutch Coconut 800ml/430gm 140
  Strawberry currant 800ml/430gm 140
  Black forest 800ml/430gm 140
  Virenetta vanilla 600ml/285gm 150
  Virenetta coconut 600ml/285gm 150
  Neopolitan 1000ml/475gm 110
  Chocolate xcess 900ml/428gm 120
  Vanilla 740ml/340gm 110
  strawberry 740ml/340gm 110
  Butter scotch 740ml/340gm 169
  kesar pista 740ml/340gm 169
       
Family pack Double Sunday 700ml/340gm 130
       
Moo Sticks   closed
  Sandwich Multi Packs   closed
       
Cup Vanilla cup 80ml/38gm 10
  Strawberry cup 80ml/38gm 10
  Kesar pista 80ml/38gm 20
  Butter scotch cup 80ml/38gm 20
       
Zap Litchi zap 65ml/41gm 20
  Mango zap 65ml/41gm 20
Milk Ice Cream

• Amul
– Key Strengths
• Popular
• TV ads
• Trust and reputation
• Varieties in milk ice creams

Offerings in Milk Formats

• Sticks /Swirls/Cones
• Priced @ 12-25
• Communicates through TVC/OOH
 Product Analysis
Amul Current Offerings Pack Size Cost ( INR)

3 Flavors : Vanilla with chocolate sauce, shahi anjeer,

ProLite Ice Cream chocolate 80 ml /500 ml 110
3 Flavors : Vanilla with chocolate sauce, shahi anjeer,
Sugar Free ProBiotic chocolate 80 ml /500 ml 65
4 Flavors : Cheese and Strawberry/Black Current/Khatta
Swirl Meetha Mango/Chocolate 125 ml 20
Sticks Frostiks /Dollies/Candies. 60-70 ml 20
  Frostik 70 ml 20
  Chocolate 60 ml 15
  Candy : Mango / Orange 60 ml 5
  Dolly: Raspberry and Mango 70 ml 12
       
Cones Tricone 25
  Butter Scotch Available in 50, 80 and 120 25
  Choco Crunch ml 15
       
Novelties Cassatta 150 ml 25
Roll cut of 80 m pack and
  Hum Tum party pack of 1 litre closed
  Sweet Heart Available in 1 litre closed
Cake Magic : Black forest/Very Very Strawberry/Choco
  Delight 1 litre/750 ml 110
       
Malai Kulfi Masti Kulfi 100 and 500 ml 20
  Shahi Pista 60 ml 15
       
Kids Sunday Fundoo 40 ml 20
  Fundoo Balls ( Vanilla) 100 ml closed
  Fundoo Balls ( Mango) 100 ml closed
  Fundoo Chocobar 40 ml 8
       
 Product Analysis
Take Away Family Packs
and Cups Vanilla Royale 135
  Fruit and Nut 170
  Two in one 135
  Alphanso Mango 130
  Butter Scotch 160
  Honey Banana 150
500 ml/ 1 Litre/ 1.25
  Chocolate Passion Litre/2.25 litre 135
       
Exotica Choco bliss 1 Litre 150
  Fruit salsa 1 Litre 130
  Roasted almond bingle 1 Litre 150
       
1+1 Party Packs Rajbhog 500ml/1 ltr/1.25 ltr 180
  Spanish saffron and creambell 500ml/1 ltr/1.25 ltr 180
  kesar pista 500ml/1 ltr/1.25 ltr 180
  Shahi anjeer 500ml/1 ltr/1.25 ltr 170
  Black currant 500ml/1 ltr/1.25 ltr 160
  Fresh litchi 500ml/1 ltr/1.25 ltr 160
  Fruit banana 500ml/1 ltr/1.25 ltr 150
  Kaju draksha 500ml/1 ltr/1.25 ltr 150
  Chocolate 500ml/1 ltr/1.25 ltr 140
 Milk Ice Cream
• Creambell
– Key Strengths
• For masses
• Availability
• Economical

Offerings in Milk Formats

• Bars /Cups //Cones
• Priced at Rs 10-30
• Targeted to mass consumers
• Communicate through DTC medium
Cream Bell Variety Pack Size Cost
Bars Chocobar 42gm/65ml 10
  Choco baby 25gm/40ml 7
  Choco vanilla 42gm/80ml 20
  Choco krunch 50gm/70ml 18
  Choco coffee 42gm/80ml 20
       
Kulfi Kewra kulfi 42gm/60ml 15
  Rose kulfi 42gm/60ml 15
  Pista kulfi 42gm/60ml 15
       
Doubles Mango vanilla 50gm/55ml 15
  Strawberry vanilla 50gm/55ml 15
  Litchi vanilla 50gm/55ml 15
       
Ripples Multi ripple 63gm/120ml 20
  Chocolate 63gm/120ml 20
  Strawberry 63gm/120ml 20
       
Licks Cola 50gm/50ml 5
  Mango 50gm/50ml 5
  Lemon 50gm/50ml 5
  Orange 50gm/50ml 5
  Jal jeera 50gm/50ml 5
       
Sluppy Butter 72gm/120ml 20
  Chocolate 72gm/120ml 20
  Pista 72gm/120ml 20
       
 Cassatto Cassatto chop 79gm/150ml 30
  Malai chop 79gm/150ml 30
       
Centre treat centre treat rum 55gm/70ml 20
  orange soft centre 55gm/70ml 20
  chocolate centre 55gm/70ml 20
       
Joostick Nimbupani 55gm/55ml 10
  Black grapes 55gm/55ml 10
  Pine apple 55gm/55ml 10
  Strawberry 55gm/55ml 10
       
Sacch Mucch Sacch Much Aam 50gm/70ml 15
       
       
Family pack Kaju kishmish 357 gm 130
  Vanilla 357 gm 100
  Butter scotch 1250ml/625 gm 130
  Plan pista 357 gm 100
  Strawberry 357 gm 100
  Chocolate 357 gm 120
  Tuti fruity 357 gm 120
  Kesar badam 357 gm 130
  Three in one 357 gm 130
Fantasia Chocolate coffee 53gm/100ml 20
  Almod fudge 53gm/100ml 20
  King alphanso 53gm/100ml 20
  Strawberry fam 53gm/100ml 20
       
Cups Vanilla 24gm/45ml 5
  Mango 24gm/45ml 5
  Strawberry 24gm/45ml 5
       
  Vanilla 48gm/90ml 10
  Strawberry 48gm/90ml 10
       
  Kesar badam 48gm/90ml 15
  Butter scotch 48gm/90ml 15
  Kesar pista 48gm/90ml 15
  Kaju kishmish 48gm/90ml 15
       
 Milk Ice Cream
• Vadilal Offerings in Milk Formats
– Key Strengths
• Low pricing • Bars /Cups //Cones
• Easy availability • Priced at Rs 10-25
• Targeted to mass consumers
• Communicate through DTC
medium
• Regularly runs schemes and
offers
 Vadilal Current Offerings Pack Size Cost (INR)
Funtastic candy, choco bar candy,mini
chocobar, raspberry dolly, mango dolly,
pineapple dolly,orange dolly, litchi
dolly,mango tango dolly, mini mango tango,
Dollies/Bar mini funbhari raspberry tango 50gm/60ml 15
Tiranga ice candy, kachi kerry ice candy,black
currant juicy, mango juicy,orange, kala
khatta, jaljeera. Butter candy, choco cream
candy,bomber candy, beat chocobar,
chococream candy,beat chocobar, nutty
Candies chocobar 55gm/60ml 5
Cups vanilla 90gm 10
  Chocolate Chips 90gm 22
  Kaju Draksh 90gm 10
  Butter Scotch 90gm 10
  Two In One 90gm 10
  Ripe Strawberry 90gm 12
  Super Vanilla 90gm 10
  Super Kaju Draksh 90gm 10
  Super Butter Scotch 90gm 10
     
Kulfis Matka Kulfi 50gm/60ml 20
  Mango kulfi 50gm/60ml 20
  Mawa kulfi 45gm/50ml 15
  Pista kulfi 45gm/50ml 15
  Malai masti 50gm/60ml 20
     
 Cone Pine apple 72gm/110ml 25
  Chocolate 72gm/110ml 25
  Butter scotch 72gm/110ml 20
  Kesar pista 72gm/110ml 20
  Big treat 72gm/110ml 15
  Mango treat 72gm/110ml 20
  Rajbhoj cone 72gm/110ml 25
  Vadilal cone 72gm/110ml 25
  King cone 72gm/110ml 25
     
Novelties Quick Sunday 72gm/120ml 25
  Easy Sunday 72gm/120ml 25
  Choco Sunday 72gm/120ml 25
  Cassatta 72gm/120ml 25
  Badam kulfi 72gm/120ml 25
  Kewra flavor 72gm/120ml 25
  Sajan sajni 52gm/100ml 25
  Matka kulfi 70gm/100ml 30
     
Party pack Kesar 750 ml/400gm 140
  Chocolate 750 ml/400gm 150
  Pista 750 ml/400gm 150
  Carame 750 ml/400gm 150
  Badam 750 ml/400gm 120
  Pine apple 750 ml/400gm 120