Dynamix Dairy Industries Ltd is a joint venture between Schreiber Foods Inc. and the Goenka family, with Schreiber as the majority shareholder. Dynamix operates a large, high-tech milk production plant in Baramati, India and procures milk from over 100 villages in western Maharashtra. The company produces and sells a wide range of dairy products for major brands in India and abroad.

1. Schreiber Dynamix Dairy Industries Ltd Business Analysis Pradeep Kumar 09020242026

2. INTRODUCTION Dynamix Dairy Industries Ltd. is a joint venture between Schreiber Foods Inc., USA and the Goenka family with Schreiber as the majority shareholder in the company 2

3. Schreiber Foods Dynamix dairy deal Rabo India Finance Pvt Ltd (RIF) Replacement of around Rs 100 crore of high cost debt. Infusion of fresh equity worth Rs 35-40 crore 3

4. 51 per cent controlling stake in DDIL. The association with the international fast food giant also provides suppliers an access to overseas markets for the export of their products. Making Schreiber the largest shareholder in Dynamix 4

5. Schreiber Foods Schreiber Foods is a $3+ billion global enterprise and the world’s largest customer-brand dairy company. The products to the biggest names in fast food chains. The world's largest supplier of private-label dairy products to grocery chains and wholesalers. 5

6. A leader in innovation From manufacturing their own printed packaging to developing new products. Designing cheese-processing equipment. Technology leader. 6

7. Schreiber Dynamix Dairies India Mexico China Schreiber Food, Green Bay, U.S. Brazil Germany 7

8. Products of Schreiber Foods Natural Cheese Process Cheese Cream Cheese Specialty Cheese Substitute and Imitation Cheeses String Cheese Butter Blends Yogurt Table butter Ghee Process cheese Dairy whitener UHT – Plain / flavored milk UHT – Fruit juices 8

9. Dynamix Balwas Group Promoted by two families, The Goenka Family and The BalwaFamily, bonded together through a dynamic spirit. 9

10. Dynamix Balwas Group The Goenka Family & the Balwa Family have come together to form the Dynamix Balwas Group Headed by young visionaries, the Group is dynamic in its approach. A proactive and strategic mind-set ensures that the Group surges forward, always, with a dynamic spirit. 10

11. The Goenka Family Real estate business since the last 25 years Headed by Mr. K. M. Goenka ,Mentor Mr. Vinod K. Goenka, and Mr. Pramod K. Goenka. Mr. Vinod K. Goenka is the Chairman, Dynamix Balwas Group. 11

12. The Balwa Family Hospitality and Real Estate business since the last 98 years, Headed by Mr. UsmanBalwa Mr. Shahid U. Balwa, Managing Director, Dynamix Balwas Group. 12

13. Changing the face of Townships and Industries The Group was born from the dynamic vision of Mr. K. M. Goenka who started with an initiative through a foray in the Real Estate development. Fuelled by the success in Real Estate, the Group gained the impetus to diversify and expand its business interests. 13

14. CORE VALUES Trust, Honesty and Reliability Customer Focus Building through Relationships Social Awareness & Responsibility 14

15. REAL ESTATE DAIRY GRANITE & MARBLE BLOCKS & PAVERS HOSPITALITY EDUCATION 15

16. Dairy sector India is the world's highest milk producer. Accounts for more than 14% of the world and 57% of Asia’s Total production. Largest milch animals in the world 198 million cattle and 86 million Buffalo. 16

17. Dairy sector Potential that can catapult india as major dairy exporting country globally. Growth rate of 6%. At present only 15% of milk is Packed. 17

18. All India Milk production Source: Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, GoI 18

19. Milk Production in India 19 Source: Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, GoI

20. Milk Production top 5 states Source: Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, GoI 20

21. Source : Level & Pattern of consumer expenditure, Various issues, National Sample Survey Organisation, Ministry of Statistics & Programme Implementation, GOI 21

22. Source: Central Statistical Organisation, Dept. of Statistics, GOI 22

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24. Milk & Dairy Industry Structure State co-operatives & privately owned Indian companies dominate the liquid milk sector. Gujarat Cooperative Milk Marketing Federation Ltd. (Amul) and Nestle are the leading players in the value-added segment 24

25. Dairy Cooperatives The Dairy Cooperative Network (on Mar 2009) Includes 177 milk unions Operates in over 346 districts Covers 1,33,349 village level societies Owned by around 13.9 million farmer members of which 3.9 million were women. 25

26. Dairy Cooperatives Tired of exploitation by traders and local private dairy, the milk producers organized themselves into village dairy cooperatives. KairaMilk Producers Union had its first dairy plant. It started producing and marketing milk products under the brand name Amul. 26

27. Dairy Cooperatives Under the leadership of V. Kurien, the father of milk revolution, the Amul model of cooperatives soon became an example for others to emulate. The government wanted the Amul model to be replicated in other parts of the country. Its own controlled dairy cooperatives had failed. Amul is today the most popular brand of milk. 27

28. Dairy Cooperatives The de-licensing of the dairy industry has not threatened dairy cooperatives. They seem to march ahead despite the entry of the private sector and multinationals. Britannia has been forced to withdraw from the liquid milk market in many parts of the country. 28

29. Strength Of Dairy Cooperatives The biggest strength of dairy cooperatives is their labour intensiveness. Cost effectiveness is another important factor. Dairy cooperatives have effectively used the toil of farmers to develop self-reliance. 29

30. Marketing In 2008-09, average daily cooperative milk marketing stood at 200.4 lakh litres; annual growth has averaged about 6.1 percent compounded over the last five years. During 2001-2009 the daily milk supply by Cooperatives to each 1000 urban consumers has increased from 57.8 to 73.1 Kg per day. 30

31. Macro Impact The annual value of India's anticipated milk production amounts to more than Rs.1,430 billion in 2008-09. Dairy cooperatives generate employment opportunities for around 13.9 million farm families. 31

32. Macro Impact Livestock contributes about 25.6 percent to the GDP from agriculture. About 22.45 million people work in livestock sector, which is around 5.8% of the total work force in the country. 32

33. By-products of dairy industry Curd Cheese pieces Milk fat, curd pieces and coagulated milk Whey Cassein protein 33

35. GluesCosmetics

36. Leather

37. Chemicals

38. Paints

39. Plastics

40. Aluminium Foil

41. Safety Matches

42. Pigments

43. Coated Paper

44. Plywood Industry

45. Paper Cones

46. Paper tubes

47. Paper Chemicals34

48. APPLICATION / USES OF INDUSTRIAL CASEIN It is used in Papercone Industry in bulk quantity for the purpose of to stick paper with cone. It is used in Adhesive Industry, Paint Industry, Leather Industry and Paperchemical Industry. 35

49. Biodegradable protective films are being made from dairy and biofuel byproducts by combining the milk protein casein with water and glycerol The film can be used as an edible coating, which extends the shelf life of food products 36

50. SWOT analysis of Dairy sector 37

51. Dynamix Dairy Industries Limited (DDIL) Headquartered at Mumbai, the Group companies are managed by well-qualified and experienced professionals, known for their dynamism and ability to achieve Corporate Goals. The slogan "Dynamism at work" says it all and it is the team's constant endeavor to meet the high standards set by them. 38

52. Dynamix Dairy Industries Limited (DDIL) The Company is ISO 9002 certified with revenues in excess of INR 3 billion in 2005-2006. State-of-the-art technology and back-up extension services. One of the front-runners and the most trusted names in milk processing in India. 39

53. Dynamix Dairy Industries Limited (DDIL) Dynamix Dairy Industries Limited Deepak Jain, its managing director. The Milk shed of Dynamix covers seven districts in western Maharashtra. 40

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55. Dynamix Dairy Industries Limited (DDIL) Dynamix has made substantial investments in setting up bulk cooling facilities - which protect the milk from contamination - at several collection centres around its plant in Baramati. The company works with the Baramati Milk Union Cooperative to create awareness among farmers on hygiene and veterinary care. 42

56. Manufacturing Plant DDIL has a high-tech milk producing plant located at Baramatinear Mumbai. The Plant, designed by the renowned Valio of Finland, sprawls over an area of more than 25 hectares. Processes more than one million liters of cow milk every day. 43

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58. Manufacturing Plant The plant is fully automated by Siemens India with inputs from Tachenhagen, U.S.A. and Ireland. The plant strictly works on the guidelines laid down by the GMP and Hazard Analysis Critical Control Point (HACCP) programmes. 45

59. Backward Integration The backward integration programme of DDIL is the result of its commitment to produce dairy products par international standards. The Company has set up hundreds of bulk cooling stations in 110 villages to preserve the quality of milk. 46

60. Backward Integration A demonstration dairy farm has also been setup to educate the rural milk producers to improve and upgrade their native skills regarding genetic improvement of the milch-cattle, disease control and regulated feeding. 47

61. Global Technology The milk, before being sent for pre-processing, is checked for quality using a series of stringent quality control measures. The best quality milk is then pre-processed by means of special equipment imported from Germany, known as Bactofuges, to render it absolutely bacteria-free. 48

62. Global Technology The technology to manufacture Cheese has been provided by Schreiber Foods, U.S.A. The Casein technology has been imported from Westphalia, Germany, which are considered to be the leaders in this science. Whey Systems, U.S.A has supplied the know-how to manufacture Lactose. 49

63. Milk procurement In Maharashtra, to procure milk has an agreement with the Baramaticooperative, we have been able to establish a system that ensure the supply of high-quality of milk. Payment is done according to the fat content. More often he gets a better price than when he supplies directly to the cooperative. 50

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65. Milk procurement The dairy has the seven districts of Pune, Solapur, Ahmednagar, Beed, Satara, Sangli and Kolhapur as its milk shed area. Satara, sangli and kolhapur are predominantly buffalo milk regionwhich is used to prepare cream cheese. 52

66. Milk procurement Dynamix Dairy devised a quality programme for milk procurement and invested significantly in setting up bulk coolers at all milk collection centres Baramati area. Bulk cooling centres were located at an accessible location so that the farmer had to travel only a distance of 1-2 km from his farm to the collection centre. 53

67. Computerised MILK COLLECTION As soon as a farmer arrives at the collection centre, a sample of the milk poured into a tube. The sample's fat content instantly flashes up on a flickering computer screen. This determines the price of the milk. 54

68. Computerised MILK COLLECTION The can is then weighed. A printed receipt for the farmer displays the milk's fat content, weight and price and he collects his money. Every day of the 1.5 million litres of milk is been monitored throughly through various stages. 55

69. Dynamix dairy products Cheese, Butter, Ghee, Dairy Whitener, Non-Dairy Creamer, Skimmed Milk Powder, Yogurt, Lactose, Casein and Whey Protein Concentrate. 56

70. Dynamix dairy products The company is also into UHT flavored milk and fruit juices packed in tetra packs, which do not require the cold chain. 57

71. Dynamix Manufactures The Milkman brand of Britannia, Tropicanjuices, Nestle milk and curds, Lipton lemon tea Provides 100 per cent of the cheese used by the McDonalds chain. Pepsi -Mango Slice in tetra paks. 58

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74. LIQUID FRESH MILK BUTTER CHOCOLATES PIZZA ICE CREAM, Cheese 61

75. Pre-McDonald’s era owing to lack of infrastructure while within the region the market was not large enough. "Consequently, milk producers were throwing away the excess milk and increasingly opting out of the milk business,". 62

76. Mcdonalds Making india export hub for it products. Slice-on-slice cheese for McDonald's It provides an opportunity to expand their business, have access to the latest technology and exposure to advanced practices as well as the ability to grow as McDonald’s expands in India 63

77. Britannia DDIL's Rs 200-crore plant contract manufactures a range of products for leading multinational brands in the country. These include processed cheese, butter, UHT-Tetrapakflavoured milk, ghee and dairy whitener for Britannia (marketed under the latter's Milkman brand), 64

78. Yoghurt (dahi), butter and UHT plain-cum-flavoured milk for Nestle. 65

79. Dynamix also uses its UHT-cum-aseptic packaging facility for producing Pepsi's Tropicana brand pure fruit juices. The plant makes milk powder and other bulk commodities such as industrial and edible grade casein, lactose and whey protein concentrates, which are largely exported. 66

80. Hindustan Lever (Kwality, Walls, Max, Magnums) Glaxo Smithkline, Pizza Hut. 67

81. Milk holidays Stopping of milk procurement Feb 2009 Dairies claim to have been hit by cheap imports from New Zealand and the subsidizes of the US, EU, New Zealand and Australian governments. Ban on imports of dairy products and an increase in export incentives. 68

82. SWOT ANALYSIS 69

83. SBI MoU Dynamix Dairy Contract farming has commenced with financing of cows and bulk cooling stations for collection of milk. Funding has come from State Bank of India’s contract farming and value chain financing, while Schreiber Dynamix Dairies Ltd has brought in the processing power and this has touched a wide base of one lakh milk producers in the milk shed area of seven districts of western Maharashtra 70

84. Conclusion Several global brands have been acquiring top domestic dairy companies in India like Amul and Dynamix to use their distribution strength and build India as a hub for low-cost milk supplies. Especially at a time when global milk supplies are hitting through the roof. 71

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