The document provides an overview of the dairy product sector in North East India. It notes that milk consumption in South Asia is growing 2-3% annually and dairy product categories in India are growing over 5% annually. It then details India's total milk production and per capita availability. It also outlines the major companies operating in the sector and local dairy product producers in North East India like KOMUL and Purabi. Finally, it emphasizes the need for local producers to focus on innovation, quality, and being responsive to change to survive competition from large multi-national companies.

1. INDUSTRY OVERVIEW
Dairy Product Sector in North East India
Dr M. Islam Barbaruah
Director, Vet Helpline India Pvt.Ltd
IIE, Guwahati, India

2. The volume of milk consumption
in South Asia is growing at 2-3
per cent. The growth rates of over
5 per cent for many dairy product
categories in India are much
higher than the mature markets of
the developed world and this is
prompting several global players
to target entry into the Indian
market. – The Hindu
IIE, Guwahati, India

3. Approx 48% of Milk output in India is used to
produce a variety of Indian dairy products
Milk
& Milk
Products
Meat
&
Egg
Total
Food
Family
Size
RURAL 42.56 16.14 288.80 5.00
URBAN 74.18 26.77 410.10 5.00
Per Capita Monthly Consumption Expenditure ( In Rupees )
55th NSS ( July 1999 – June-2000)
THE STATISTICS – AT A GLANCE
India’s Total Milk Production & Per Capita Availability of Milk
(2001-02)
84.6 MT & 226gm respectively.
L.Milk Ghee Curd Makkan Khoa Milk
Powder
Cheese Others
46% 28% 7% 6.5% 5.5% 3.8% 2% 1.2%
Milk Utilization Pattern – 1989-90
IIE, Guwahati, India

4. Over 45 per cent of the country's milk is retained
at farm level in rural regions; another 42 per cent
is handled by the unorganized sector. A mere 13
per cent goes for value addition by the organized
sector.
The combined size of the butter and cheese
market at Rs 630 crore. Against this, the
packaged liquid milk market is valued at Rs
7,200 crore, while that of curd and curd-based
products, made by the unorganized sector, is
set at Rs 12,000 crore. Value of ethnic sweets
is still higher at Rs 27,000 crore.
SOME FACTS
IIE, Guwahati, India

5. The country became the world's
largest milk producer in 2001. Yet not
one player from India features in the
list of global top 20 dairy companies.
SOME OF THE KNOWN COMPANIES ACTIVE IN THIS SECTOR
• Britania Industries Ltd
•Cadbury India Ltd
•Gujarat Co-op Milk Marketing Federation
•Hindustan Lever Ltd
•Nestle India Ltd
•Parle Products Ltd
•ITC Agro Tech
•Satnam Overseas Group
•Marico Industries Ltd
•Smithkline Beecham Consumer Health Care Ltd
•Perfetti Van Melle India etc.
IIE, Guwahati, India

6. Do you Know?
According to Unconfirmed Estimates:
Organized sector represented by brands “Purabi” and “Dairy
Fresh” besides “Government Central dairy”
together markets only in an average of 12000 lit of Milk per
day within Guwahati as processed milk.
Guwahati market requirement of liquid Milk is 1,25,000 lit per day.
Branded dairy products produced & marketed by local player
WAMPUL & G.R.Dairy Products is slowly gaining market share
in Guwahati and providing consumers an alternative to those
marketed by majors like AMUL and Nestle.
AMUL processed milk “AMUL Taaza” sale within
NE India is 450 -500 MT per day.
IIE, Guwahati, India

7. PURCHASE OF MILK – IN GUWAHATI CITY
From Published source
IIE, Guwahati, India

8. PENETRATION OF MILK PRODUCTS IN GUWAHATI
Unconfirmed estimates put sale of Curd in Guwahati City by
unorganized sector at 3000 to 5000 lit per day (summer) and that
of cream at >100 lit per day.
From Published source
IIE, Guwahati, India

9. MAJOR DAIRY PRODUCT PRODUCING
ORGANIZATIONS IN NORTH EAST INDIA
DIMAPUR ( KOHIMA ) DISTRICT CO-OPT MILK
PRODUCERS UNION LTD. (KOMUL)
Dimapur, Nagaland
Brand : KOMUL
TRIPURA CO-OPERATIVE MILK PRODUCERS' UNION LTD.
Agartala
Brand: GOMATI
G R DAIRY AND FOOD PRODUCTS (P) LTD
Khanapara, Guwahati
Brand : DAIRY FRESH
WEST ASSAM MILK PRODUCERS CO-OPERATIVE UNION LTD
Guwahati
Brand : PURABI
IIE, Guwahati, India

10. PURABI BRAND OF PRODUCTS
IIE, Guwahati, India

11. DIMAPUR ( KOHIMA ) DISTRICT CO-OPT MILK PRODUCERS
UNION LTD. (KOMUL)
Sweetened Card
Pasteurized Lassi
Cow Ghee Packed Milk
Ice Cream Paneer
PRODUCT PROFILE
IIE, Guwahati, India

12. SOME OBSERVATIONS
There are 678 registered manufacturing
units of Milk Products in India. Most of
them are in to milk powder and ghee. It is
important to note that they uses 29 million
litres of Milk per day against installed
processing capacity of 73 million litres per
day.
Existing product profile at global dairy majors
already active in India indicates eventual growth
for the organized sector. The trend in coming
years will be towards more value-added products.
IIE, Guwahati, India

13. SURVIVING THE COMPETITION FROM MNC’S
AND OTHER DAIRY MAJORS
It is not the strongest of the species that survive, nor the most
intelligent, but the one most responsive to the CHANGE
Charles Darwin
Be Informed – Know your Customers & Market
Focus on – Innovation and Quality
Be Techno-savvy
Innovative distribution and customer
convenience
Realistic Marketing Plan : Clear vision , Goal Fixation &
Continuous Performance Monitoring
IIE, Guwahati, India

14. IIE, Guwahati, India