INDUSTRY PROFILE

Overview
India with the total milk production of 109 million tones is the world's highest milkproducing country for the past one decade now and accounted for about 15% of the world
milk production in 2009. The importance of dairy enterprise in the national economy can be
gauged from the fact that the value of output from milk group is highest among all the
agricultural commodities, accounting for nearly one fourth of the value of output from
agricultural sector. Dairying is one of the most important means of providing livelihood and
nutritional security to the rural masses. The livestock activities, among which dairy farming
predominates, employ about 8.5 million workers in the country. Milk and milk products
account for 9.2 and 12.4 percent of protein intake in rural and urban areas, respectively,
which is higher than the protein intake through non-vegetarian animal products.
performance of the Indian dairy sector has been quite impressive. Milk production in India
increased from 17 million tones in 1950-51 to over 109 million tones by 2008-09. During the
past one and half decades (1990-2006), milk production has grown at a rate of nearly 4% per
annum vis a vis world growth rate of 1.5 percent. The exports of dairy products increased
from Rs. 13.98 million in 1990-91 to Rs.6766.82 million in 2005-06, while imports increased
from Rs.40.52 million to 345.66 million during the same period. Hence, as the net trade
balance of dairy products has changed from negative to positive and the country is now a net
exporter of dairy products.The
Milk Production
The increased production of milk has improved the per capita milk availability to 250 grams
per day. The demand of milk and milk products in India is projected to increase to 142.9
million tones in 2015 and further to 191.3 million tones in 2020. At the existing rate of
growth in milk production, in next ten years, supply will fall short of the demand. Together
with the increase in domestic demand of milk, at the international level, particularly in
developing countries, the three drivers of demand - population growth, urbanization and
income growth- are very strongly in operation. For instance, the import demand of milk and
milk products has shown tremendous increase in several developing countries notably China,
South Korea, Singapore, Srilanka and several other Asian countries many of whom have
become buoyant economies after opening up of the world market. Thus, buoyant markets and
trade liberalization have opened new vistas of international trade for the Indian dairy sector.

However, for tapping the economic benefits of growing demand of milk and milk products
and to compete with the traditional milk exporting countries viz; Australia and New Zealand
the Indian dairy sector has to gear itself to meet the following challenges:

Increase the milk production at the rate that is higher than the existing growth

Increase the production of value added dairy products

Provide complete quality assurance.

Livestock
During the year 2005-06 the country had 19.34 million crossbred (CB) cows, 28.37 million
indigenous (Ind.) cows and 33.17 million buffaloes (Buff.) in milk. The milk production of
the corresponding categories was 19.34 million tones (CB), 20.41 million tones (Ind.) and
52.07 million tones (Buff.). The average milk production of the respective categories was
6.44 kg/d (CB), 1.97 kg/d (Ind.) and 4.3 kg/d (Buff.) thereby indicating that the focus should
continue towards better milk yielders viz. crossbred cows and buffaloes and the strategy for
increasing milk production should focus on increasing animal productivity rather than animal
population. This is particularly important as in relation to recommended feeding standards by
animal nutritionists, the current feed and fodder shortage in terms of crude protein, digestible
crude protein and total digestible nutrients is estimated to be 39.8, 44.3 and 39.6 percent,
respectively. With the increase in feed and fodder production the requirement availability gap
is projected to narrow down, but in 2020, 35.2 percent shortfall in DCP and 26.6 percent in
TDN is likely to persist.
Indian Dairy Sector
The emergence of India as a premier dairy nation of the world could be attributed mainly to
the intensive crossbreeding programmes implemented throughout the country over the last
few decades. The population pressure and emerging global opportunities further necessitate
that the efforts for enhancing animal productivity are accelerated. This calls for continuance
of well-proven technologies such as crossbreeding with superior germplasm coupled with
improvement in the productivity of vast population of generally low producing cattle and
buffaloes at faster rate using emerging reproductive and molecular technologies. There is a
great potential for application of multiple ovulation and embryo transfer technology for
production and faster multiplication of superior germplasm of elite animals. There is also

scope for identifying the unique genes specific to indigenous dairy animal genetic resources
using the molecular techniques. It is expected that by the use of such technologies more
number of superior animals per unit time can be obtained by reduction in generation interval
which could further increase the pace of genetic advances by increasing the intensity of
selection. Technologies for raising male buffalo calves economically should be developed as
this potential source of income of farmers is almost going waste. Studies also need to be
conducted to quantify the emission of methane and other green house gases from Indian dairy
sector and methods also need to be devised for mitigating such emission.
Besides meeting domestic demands, it may also be possible to export germplasm to tropical
developing countries. In this context National Dairy Research Institute (NDRI) Karnal has
also set the target of enhancing its semen production from the present level of about 0.1
million doses annually to about 2.5 million doses per year by 2020 A.D. Also about 400-500
males from elite herds of Sahiwal, Crossbreds and Murrah, are proposed to be supplied every
year for genetic improvement in the country. For improvement of various breeds of cattle and
buffaloes there is a need to form Breed Societies. These departments could interact with
various developmental agencies including Non-Governmental Organisations (NGOs) for this
purpose. In all interactive programmes involving field recording, progeny testing and data
bank should be taken to supply information on availability of semen, bulls, females etc. for
consistent genetic improvement of livestock. To effectively monitor these programmes, there
is an urgent need for linking them with bio-informatics centres at state, national and
international levels. There is also an urgent need to develop national animal production and
health information system and disease free zones in the country.
Future Challenges
Housing management aspect of the new breeds/ strains of high yielding dairy animals
developed in the country also needs to be addressed adequately as it is essential to realize the
high milk production potential. Animals shelter requirement varies according to the agroclimatic conditions of the region and the socio-economic condition of its farmers. The pattern
of traditional animal, shelters also varies from region to region. In order to make specific
recommendations it is essential to take into consideration the physiological, behavioural and
other related aspects of the animal comfort. It is, therefore, essential to carry out the detailed
investigation on type and system of housing required for different agro-climatic regions and
suggests ideal shelter systems based on these objective criteria.

For meeting the nutritional requirements of the livestock, particularly high yielding milch
animals there is a need to increase the bioavailability of the feeds and fodders by increasing
the research efforts in the area of feed processing using chemical, biological and
biotechnological approaches. Also, it is necessary to improve the productivity of the land for
meeting out the feed and fodder requirements from the limited area available for this purpose.
There is also the need to encourage farmers unions, NGOs and cooperatives to put common
property lands under improved pasture and silvi pastoral systems. There is also a need for
revising and updating the Indian feeding standards to make them more realistic and
internationally accepted systems. An exercise has to be conducted to develop an effective
plan for improving the availability of feed resources of the country, as there is shortage of
feeds, resulting in inadequate supply of nutrients especially protein, energy and minerals.
Besides this, we need to explore new feed resources and evaluate them for livestock feeding
and find out how much these can be useful in bridging the gap between supply and demand
of the nutrients. For updating the information about feed resources, there is a need to generate
information on the level of anti nutritional factors in the feeds. Presently, data on the levels of
aflatoxins, pesticide residues, heavy metals in feeds and fodders is inadequate; therefore, it is
imperative to generate this information so that we will be in a position to specify the quality
of feeds as per international standards in the present era of globalization.
Milk Production Outlook
Indias White Revolution has attracted world-wide attention and Indian performance is
expected to continue to play a major role in the future of the dairy industry in the world in coming
years. It is expected that the world milk production will rise to 867 MMT by 26 per cent from current
714 MMT. However, as per the current CAGR of 4 per cent and optimistic projection of 4.5 per cent,
India`s milk production is estimated to touch 180 million MT by 2020. This will lead to increase of
India`s share in the world milk production from the current 16 per cent to 21 per cent in 2020. The
core of the dairy industry lies with the milk producing farmer, who gets affected by many factors
ranging from fuel and agricultural input prices to government`s foreign policy. Hence, the state of
milk producing farmer is crucial for the dairy industry. To sustain the milk production there has to be
a right mix of social, environmental and economic factors influencing the farmer.

Indian Ghee Market to Grow at 14% During 2011-2017

An increase in both rural and urban incomes coupled with an increase in the consumer base
is expected to expand the per capita consumption of ghee in India.
India currently represents both the worlds largest producer and consumer of ghee.
Due to its numerous benefits and the fact that it has represented an integral part of the Indian
diet, ghee represents the second largest consumed dairy product in India after liquid milk.
Ghee is currently used in India for various purposes; these include cooking food, traditional
rituals, medicinal uses, etc.
IMARC Group, one of the worlds leading research and advisory firms, finds that
ghee has a strong penetration in both urban as well as rural households. Findings from their
latest report Indian Dairy Market Report & Forecasts 2012-2017 suggests that an
increase in both rural and urban incomes coupled with an increase in the consumer base is
expected to expand the per capita consumption of ghee in India. Estimates from the report
suggest that during 2011 and 2017, the total sales for ghee are expected to grow at a CAGR
of 14%. The report has also done a comprehensive analysis on the competitive landscape of
ghee and various other dairy products in India. The report found that although the size of the
organized ghee market was significantly smaller than the unorganized market, it is currently
exhibiting a faster growth.
IMARC Groups new report Indian Dairy Market Report & Forecasts 20122017 an updated and far more extensive and analytical version of their popular 2011 study,
provides and draws upon a comprehensive analysis of every major dairy segment in India.
The study, which has been undertaken using both desk research and two waves of qualitative
primary research, has analyzed three aspects of the Indian dairy market. The first section
quantifies the Indian dairy market into fourteen major segments and investigates the current
and future opportunities in each of these segments. The second section provides an in-depth
understanding of dairy consumption patterns among Indian consumers and the potential of
value added dairy products. The third section investigates into the usage of natural
colouration in dairy products and evaluates their current and future potential.
National Policy
Against this backdrop, the national policy on dairy is critical for the growth of dairy industry.
Milk production in US has been growing at a very good pace as a result of policies of the US
government which nurture and protect cooperative marketing by dairy farmers. Experts feel India
should also continue its emphasis on dairy development through cooperatives and private investments
to ensure long term growth and sustainability of the industry. India has the largest bovine population
in the world with a large processing capacity of 98.3 million litres per day. Figures show, milk

producers in India enjoy highest percentage share of consumers` rupee -- 70 to 86 per cent. This is
more than double that in other countries like US, European countries and New Zealand where the
returns to milk producers is less than 40 per cent of the consumers spending on milk.
Challenges
However, there are challenges to dairy in India, mostly in the form of rapid urbanization, low
interest of younger generation in dairy farming and increasing real estate price that leads to loss of
farm lands. Due to these factors, some dairy regions may come under pressure. The preventive
measures would be to implement changes in the dairy production to make farming system more
competitive. In addition, there is a need to develop infrastructure to enhance production, followed by
investment at farm level and improving feeding methods. More importantly, Government could
consider giving relaxation in tax on farmer`s income from milk to encourage him to invest in dairy.
Rising consumption
India is not only the largest producer of milk but also the largest consumer of milk. The policy
approach should be to create growth path for the dairy industry. Currently, milk constitutes 15 per cent
of the average households expenditure on food. However, with increasing urbanization and growing
GDP, income rises are leading to fall in share of food as percentage of total expenditure.
The Cooperatives
A big success story in Indias dairy development is of dairy cooperatives. In the forefront is
Gujarat Cooperative Milk Marketing Federation (CCMMF), the apex body of farmers` milk
cooperatives. It markets the milk products produced by its member cooperatives under the brand name
Amul and Sagar. Milk is sourced from 15,301 village dairy cooperatives where more than three
million farmers collect their milk produce. Amul apart from being Asia`s largest milk brand is a
vehicle for economic and social development through which farmers manage their own resources.
Amul has long been dedicated to providing best prices to its member producers for their milk and at
the same time providing value for money to its consumers. Amul is also developing wide range of
products to meet future demand, including calcium fortified milk, flavored yoghurt, frozen yoghurt,
sugar free ice-cream and pro-biotic products. In order to keep pace with the growing market and
production base, GCMMF has planned a total investment of $600 million for milk processing and
village level infrastructure enhancement in the next five years.
Sustained Growth
Undoubtedly, dairying has provided gainful employment to millions, primarily women, in the
villages. Investments under Operation Flood have resulted in sustained growth and self-sufficiency
in dairy: Amul Model has demonstrated the capacity of a single commodity to have multi dimensional
effect on producers, consumers as well as the economy of the country. This model has also delineated
the importance of commercial approach to development and nil interference of government in
commercial enterprise. By the year 2020, India`s GDP is targeted to cross that of UK and will be
ready for a steep rise till 2050. But it can be realized only by active government support to vital

sectors like dairying and implementation of well formulated ideas provided by dairy scientists and
experts.
Highlights of the DairyTech India 2015
The highlights of the DairyTechIndia 2015 exhibition were the presence of 400 national and
international exhibitors over 35,000 Visitors. Farmer delegations from over 22 states, presence of
delegations from Sri Lanka, Nepal, Bangladesh, among others. Participation from overseas countries
like Holland, USA, Canada, Spain, Italy, China, UK, Czech Republic, Turkey, Denmark, Taiwan,
Bulgaria, Germany, Thailand and Cyprus directly, apart from display of products of overseas
companies through their agents in India.
The 6th DairyTech India 2016 exhibition will held concurrently with 8th India FoodEx 2016,
5th International Poultry & Livestock Expo 2016 , 7th GrainTech India 2016 and 8th AgriTech India
2016. The event is actively supported, sponsored and guided by Union Ministry of Agriculture,
National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED), Food Processing and
Packaging Machinery Industry Association (FPPMIA), Karnatka Milk Federation (KMF) and
National Center for Cold-chain Development (NCCD).

COMPANY PROFILE
Introduction
Ajantha Ghee Allied Products is a leading manufacturer of Ghee and is known for its
quality, purity and divinity. The company was established in the year 2005. The company has
recently celebrated 11 years of business, and the fifth generation is presently a main part of
the company.
For every occasion Ajantha Ghee will be a main part may it be marriages, festivals,
vacation, pilgrimage trip and parties
Our brand Ajantha Ghee' is a synonym for Premium Quality and Reliability. Due to
our uncompromised focus on quality, we have managed to earn market leadership position in
the states of Andhra Pradesh.
Quality & Consistency

The brand Ajantha Ghee has grown over the years due to consistency in its Quality,
Purity, Flavour and Supply. The product quality is maintained right from procuring raw
material till the final product is rolled out from the factory.
The brand Ajantha Ghee has grown over the years due to consistency in its Quality,
Purity, Flavour and Supply. The product quality is maintained right from procuring raw
material till the final product is rolled out from the factory.

Procuring Raw Material

We procure raw material from reliablle sources namely from leading dairiers all over
India and sometimes imported raw material also. Once raw material is procured and bought
to our factory we do all the necessary tests in order to check the quality before we unload into
our cold storage. We have cold storage facility to maintain our butter at -20 degree celcius in
order to avoid fungal and bacterial entry into raw material stored.
Production
The butter is then taken out from our cold storage daily depending on production plan.
The butter is melted to 120 degree celcius untill all moisture from butter is completely
removed for better shelf life.
Production Facility
Our company is proud to have the best production machines supplied by Tetra Pak
which supplies one of the best dairy equipments worldwide. The machine runs fully on steam
drawn from a wood fired boiler. The production vessels are made from SS 304 Grade and the
inner side of vessel is made from SS 316 Grade which is the highest grade of stainless steel.
Production Capacity
We have the capacity to produce upto 12.800 MT of Ghee Per Shift. We have separate
production facility for domestic and export requirements.
Purity
We have confidence in our purity because we pass the produced ghee through an
equipment , ghee clarifier which filters and cleans the hot ghee from minute dust particals
which may not be even visible to eyes nor will get filtered in normal regular filters.
Granulation
Ajantha Ghee is then cooled in a temperture controlled room in order to from granuals
which gives the special aroma to our ghee.

Agmark Grading
We send a sample of our ghee to the nearest State Agmark Grading Lab(SAGL) for
approval before packing. We also do a cross at our own lab before we pack the ghee. We get
each batch of ghee agmark certified.
Packing
The room temperature ghee is taken for packing after 48 hours for production. The
ghee taken for packing is made sure that it is nor hand touched anywhere in order to maintain
the 18 months shelf life printed on label. The ghee is transferred in SS 316 Grade Pipelines to
each packing machine in gravity to order to avolid brekage of granuals before packing.
Packing Machines
We have separate packing machines for each SKU and all the machines are built with
SS 304 Grade material.
Packing Material
We purchase packing materials from very well renowned manufacturers and they
certify their products food grade. We mainly pack ghee in Tins, Pet Jars, Stand up Pouches
and Sachets.
Final Product
The final product is pallatised and dispatched on First In First Out(FIFO) method.
Export Packing
Packing is done in a separate packing hall for export products in order to avoid
confusion and maintain any International Standards wherever required.
Product Coding
We print the Batch No, Date Of Packaging and MRP on each product using Inkjet
Printers before packing. We can mention that we a one of the few companies which mentions

specific Date Of Packaging and not just month of packing for better tracability. We have
counter sample for each batch at our lab for tracability.
Export Product Coding
Ajantha ghee mentions the Batch No, Production Date, Expiry Date in both English
and Arabic using high bonding inks.