Market Analysis of Paras Dairy

1.0 ESTABLISHMENT OF THE COMPANY

1.1 Industry Profile
The milk surplus states in India are Punjab, Haryana, Uttar Pradesh, Gujrat, Rajasthan, Andhra
Pradesh, Maharashtra, Tamil Nadu and Karnataka. In these milk surplus sates, milk product
manufacturing in plainly high. Since 2001, dairy exports have increased at a pace of 25% per
year in terms of quantity and 28% in terms of value. Manufacturing value- added milk products
such as milk powder, cheese, ghee, butter, packaged milk and ready-to-drink milk products
offers significant business prospects.
India has arisen as the biggest milk creating country on the planet with present degree of yearly
milk creation assessed as 94.5 million tons. We expect a creation level of 135 million tons
continuously 2015. India has an enormous domesticated animals’ populace base comprising 278
million domesticated animals including 180.5 million cows, 82.8 million wild oxen, 4 million
sheep and 9.2 million goats. The animal’s populace is projected to increment to 322 million
continuously 2015.

India, with around 27% of Asia's populace, represents the greater part of the milk yield with
sufficient development potential to investigate unfamiliar business sectors. Fully expecting the
product openings and considering the post GATT situation, India is equipping to handle the
requests of the global market.
Indian organizations are setting themselves up to fulfill worldwide guidelines and other non-duty
hindrances. Organizers are going to lengths to meet the sterile and Phyto – clean particulars -
recommended by Office International des Epizooties (OIE) under the support of the World Trade
Organization (WTO) -, which range from the quality confirmation of handled dairy items to the
wellbeing status of animals.

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Market Analysis of Paras Dairy

1.1.1Central parts Of Indian Dairy Industry:

The dairy business is overwhelmed by the co-usable area. Around 60% of the introduced
handling limit is in the co-usable area. The National Dairy Development Board (NDDB) is a
central part in the market with its significant image, Amul. Driving brands like Amul, Nestle,
Mother Dairy and Britannia are in the competition to tap the developing business sector.
Smith Kline Beecham Consumer Healthcare, Nestlé India and Heinz India are among the huge
MNCs that overwhelm the high-esteem milk items market. Different players incorporate Indian a
Dairy Specialties, Jagatjit Industries Ltd and different other state cooperatives.

The milk and dairy items section are set for up degree of cold-stockpiling chains for
development. Mother Dairy, a completely claimed auxiliary of National Dairy Development
Board intends to make solid presence in the market of milk and milk items under the Mother
Dairy brand through retail outlets the nation over notwithstanding its own 300 outlets with
arrangement of cold stockpiling and cold chains.

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Market Analysis of Paras Dairy

 Lactose Regular Lite Nutrition in Milk

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Market Analysis of Paras Dairy

 Milk Procurement

Milk Production in India Production in India

Year Production (Million Per Capita Availability

Tonnes) (gms/day)
1991-92 55.7 178

1992-93 58.0 182

1993-94 60.6 187

1994-95 63.8 194

1995-96 66.2 197

1996-97 69.1 202

1997-98 72.1 207

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Market Analysis of Paras Dairy

1998-99 75.4 213

1999-2000 78.3 217

2000-01 80.6 220

2001-02 84.4 225

2002-03 86.2 230

2003-04 88.1 231

2004-05 90.7 229

2005-06 94.6 220

1.2 Company Profile

PARAS’s history reflects back to 1960, when the procurement of milk started with 60 Liters of milk.
The only fundamental that worked right from day one is the quality, which got reinforced every day
of progress. Ch. Ved Ram, the founder and promoter of our company is one of the connoisseurs in
the dairy farm industry. Ved Ram & Sons started as our partnership company in April 1986. Our first
unit was established in 1987 under company's name VRS Foods Limited and since then in tune with
the rapidly changing technology, production units are well armed with the latest equipment. These
facilities enable us to cater to the needs of our clients by selling over 2, 50,000 liters of milk per day
in Delhi Metro.

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Market Analysis of Paras Dairy

MILK gets its unique, great taste from dedication to monitoring quality, special care, and attention to
detail in the processing and packaging steps of production. Through our careful processing and
packaging, we have been able to retain great taste. We're still delivering bright and early. What's
more, we stick to what got us here ...Lifelong commitment to quality and service.
We've built a bigger, better facility, expanded our product line and opened retail stores. Whether we
deliver right to your door, or you visit one of our dairy stores, you can be confident that our quality
and service will always be "The Best". We believe that milk should taste just like milk- pure and
simple. We don't believe in adding anything to our milk.
WEBSITE http://www.parasdairy.com

Industries Dairy
Company size 501-1000 employees
Headquarters New Delhi, New Delhi
Type Public Company
Founded 1960
Specialties Milk, Flavored milk, UHT Milk, Ghee, Milk Shakes, Paneer
(Cheese), Chaach, Chhena Kheer, Casein, Whey Protein, Whey
Powder, Lactose, and SMP, WMP, MPC

Quality is believed to be a dynamic process which requires continuous monitoring and upgradation.
Thus, it is our constant endeavor to make quality an integral part of the entire value chain rather than
the end point.

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Market Analysis of Paras Dairy

At the heart of the entire network of Paras are hundreds of Village level collection centers covering
5000 villages across Western U.P., Haryana, Rajasthan, Maharashtra and Gujarat from where the
milk is collected every day. The farmers are not only helped in Finance but also in buying cattle,
feed, providing veterinary services and other infrastructure supports. The trust of the farmers has
grown stronger and so has the network.
There is continuous monitoring and up gradation of quality. The stress therefore is on ensuring
sanitation and hygiene right from village level. That’s the reason why every Village level collection
center is equipped for field testing, efficient chilling and speedy transport to processing and
manufacturing facilities.

Our large manufacturing capacity at 5 different locations across most part of India is backed by an
impressive distribution network, to ensure that our products find their way to every household in
India.

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Market Analysis of Paras Dairy

Domestic Market
 Jammu and Kashmir
 Himachal Pradesh
 Punjab
 Uttarakhand
 Haryana
 Delhi
 Rajasthan
 Uttar Pradesh (Plant)
 Bihar
 Jharkhand
 West Bengal
 Guwahati
 Madhya Pradesh (Plant)
 Chhattisgarh
 Orissa
 Maharashtra

Procurement & Process

Operating procedure of milk procurement:
To meet the milk requirement for manufacturing different milk products, VRS Foods Limited
procures good quality milk from 3 sources:

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Market Analysis of Paras Dairy

(A). Through Franchise:

In this procedure we provide our infrastructure for milk chilling, staff for grading & testing of
milk and tankers for timely lifting of milk from MCC, to a person who procures milk on our
behalf. Milk comes directly to our MCC dock, where after proper grading and testing milk is
accepted.

(B). Through Supplier:

In this system, people who have their own chilling facilities, procure milk through small vendors
and after proper chilling of milk, send the milk to our dairies through their own tankers. At dairy,
after proper testing on different parameters, if milk is found as per prescribed norms is accepted.

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Market Analysis of Paras Dairy

(C). Through VLC System (Direct from producers at village level):

Salient features of this system are as follows
1. Procurement and collection of milk is undertaken with most modern management
systems and IT intervention. It involves use of Automatic Milk Collection Unit
(AMCU/DPMCU). The person is selected as VSP after proper screening.
2. The milk is collected in both shifts i.e. morning and evening throughout the year, through
the Village Level Milk Collection Centers. (VLCs).
3. Each VLC is staffed and equipped with the following: -

One educated person called Village Service Provider (VSP), having a minimum
qualification of matriculation, from the same village, who is adequately trained in clean milk
production, collection and testing of milk, dispatching and transportation of milk, operating
AMCU/DPMCU, pricing of milk, record keeping and reporting etc.
4. Each VSP is required to have adequate space for collection and testing of milk, which can
accommodate testing equipment’s, milk collection and transporting milk cans and keeping
records etc.
5. Each producer is trained in hygienic milking procedure and carrying milk in a steal bucket,
with a cover on it to VLC.
6. A team of qualified and trained supervisors is engaged to control& monitor the activities at
VLC level. They also train, guide and facilitate the VSP to accomplish his task of procuring
good quality milk from the producers.
7. Milk from VLCs is brought to MCC through milk vans in 40-liter aluminum cans, as per the
schedule time table so that quality of milk remains good and it is immediately chilled below
40C, to keep the quality of milk intact.
8. At dairy dock of MCC, qualified staff is deputed for proper grading and testing of milk and
as per norms, only good quality of milk is accepted.

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Market Analysis of Paras Dairy

9. VRS Foods Ltd. is already catering the demand of urban masses of milk & milk products
through a network of distributors and through door-to-door delivery system, in NCR, Delhi
and western part of UP.
10. From Dairies as per the demand of market, milk & milk products are supplied through
insulated vans so that quality of milk & milk products could be maintained as per norms and
government guidelines.
11. The left out urban areas would be covered through direct selling of milk & milk products
through distributors and vendors’ network.

PROCESSING & LOGISTICS:

To maintain the quality of milk procured from the rural areas approximately 100 milk chilling
centers would be hired in the area of operation (In the 5th year of operation) so that within 2.30
hrs. milk would be chilled after procurement, VRS Foods Ltd. is having its processing units at
Sahibabad, Gulaothi, Sandila,Malanpurand Ahmednagar for providing milk and milk products to
urban masses. These dairies will cater liquid milk and indigenous milk products demand of
neighboring districts. These dairies are meeting the demand of butter, ghee, cheese and export
quality milk products. From the dairies, milk and milk products would be transported through
insulated vans to neighboring districts so that quality of milk & milk products could be
maintained as per prescribed norms and guidelines.

QUALITY ASSURANCE

Paras fresh milk represents good hygienic quality at source of milk collection. Paras Milk is
collected from milk sheds of western UP belt with stringent quality control that ensures clean
hands, clean utensils, clean hygienic sanitation at the time of milking the milch cattle, during
storage and transportation to chilling centers, on way to hi-tech ISO 9001 and HACCP certified
Paras Milk Plants at Gulaothi and Sahibabad.

DEFINING QUALITY:

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Market Analysis of Paras Dairy

 Quality is an outcome of intelligent efforts and a strong will to produce superior and safe
food articles of internationally accepted standard.
 Customer satisfaction is at the focus of the latest international standards for quality
 Quality as defined by the international organization for standardization is " the totality of
features and characteristics of a product and service that bears on its ability to satisfy stated
or implied needs”.

The quality is been certified by

 ISO 9001

 HALAL Assured

 HACCP

 Food and Drug Administration (FDA)

 APEDA

 Govt. Of India

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Market Analysis of Paras Dairy

 Others

Types of Product Produced

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