Mother Dairy Market Research

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Mother Dairy Company Overview

Founded in 1974 and is a fully owned subsidiary of NDDB

Operates 3 brands under the name Mother Dairy (Dairy Products), Safal (Frozen

Vegetables) and Dhara (Cooking Oils)

68% market share for the organized dairy sector in and around Delhi NCR with Amul at 8%,

Gopaljee at 4% and other players make up around 18%

Major Markets include Delhi NCR, Bangalore, Uttar Pradesh, Haryana, Mumbai, Saurastra

and Andhra Pradesh

Revenue Rs. 7850 Cr. for FY 2016-2017

Safal has around 600 outlets across Delhi NCR

Mother Dairy - Revenue Breakup

Revenue Breakup

10%
12%

13%
65%

Milk Dairy Products Fruits and Vegetables Oil

Corporate Structuring

Corporate office located in Noida

Main Dairy processing plant is located in Patparganj, New Delhi

Main F&V distribution centre in Mongolpuri, New Delhi

Key Stakeholders

S Nagarajan - MD and CEO

Sandeep Ghosh Business Head

Annie Mathew CIO

Meghnad Mitra Group CFO

Mihir Mohanta General Manager F&V Division

Procurement Process Dairy
Distribution Process Dairy
Supply Chain F&V
Technology in use

SAP ERP for on-premises purposes

Ramco cloud based ERP for Manufacturing Resource Planning, Quality Module Spanning,

Material Tracking, Centralized approval of purchase order

Distribution Management Software by Ubq for complete visibility of ground activities, selling

pattern and right intervals of ordering

Sourcing and Procurement Platform by TCS

Plant Automation Solution for complete visibility at production level

Vehicle Tracking and Temperature Monitoring using IoT Sensors

Mobile App that gives daily offers and coupons which can be redeemed at Mother Dairy and

Safal Outlets
Future Plans

BUSINESS

Targeting Rs.10000 Cr. in revenues by FY 2018

Expansion plans to Eastern and Western India

Increasing product line for healthy foods and F&V. Recently Safal launched honey

Plans to boost sales of high profit margin products like Ghee, Ice Cream, Yogurt etc.

Expansion in shelf life of deep freeze vegetables

TECHNOLOGY

Plans to leverage predictive analytics on the plant parameters to conduct pre-emptive

maintenance and prevent breakdowns

Real-time mobile alerts and dashboards to factory managers for remote monitoring

Plans to implement Salesforce

Key Challenges Dairy

PROCUREMENT LEVEL

Meeting seasonal spikes in demand and ability to measure the quality of procured milk at the

source

Complex logic of payments to producers based on fat, solid non-fat (SNF) and quality of

milk received

PRODUCTION LEVEL

Manual and time-consuming processes for milk standardization calculation, handling

production planning based on nonstandard raw material, addressing growing food concerns

from consumers

FAT accounting and effective tracking of FAT loss in the production process
Key Challenges F&V

Meeting seasonal spikes in demand and predicting shelf life of fruits and vegetables

Raw fruits and vegetables generally get damaged due to mishandling at the first mile

Major problem is collecting from small farmers and there is a need to create nodal points

where individual farmers can collect small loads so as to consolidate into viable truck loads

Instability in supply due to frequent variation in trucking rates.

No predetermined schedule for transportation of goods. A favorable transport environment

will ensure a timed push of inventory into the city instead of random pull from traders

Ensuring the quality of raw vegetables and fruits

References

http://www.cio.in/cio-interview/mix-iot-mobility-and-big-data-will-transform-way-we-function

http://cio.economictimes.indiatimes.com/news/internet-of-things/how-plant-automation-

drives-efficiency-at-mother-dairy/57533208

https://www.tcs.com/tcs-strategic-sourcing-procurement-platform

www.ramco.com/downloads/ECS-Mother-Dairy.pdf

http://www.nccd.gov.in/PDF/Analysis_NDDB_veg_model.pdf

http://cio.economictimes.indiatimes.com/news/case-studies/mother-dairy-deploys-distributor-

management-system-for-its-businesses/52185468
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