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Dairy business india profitable investing forex economic times indiatimes

Dairy business india profitable investing

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A dairy farm business has a huge potential in India as we are blessed with the highest milk production and consumption worldwide. So if you are looking forward to starting a dairy farm business, the right investment strategy is the foundation. Whether you have already started dairy farming or wants to learn how to start a dairy farm in India, you will know everythingin detail. Apply for Working Capital Loan.

Dairy farming is type of agriculture practice that involves production of milk, which is processed either on the farm or at a dairy plant, either of which may be called a dairy for eventual sale of a dairy product. Like any potential start-up, you must formulate a business plan for a dairy farm.

Good dairy business planning can be done by identifying current market trends, target areas, dairy loan requirements, etc. The eventual goal is to serve customers, conduct thorough research by understanding the geography, average income, culture, household types, etc.

Also, keep in mind the following factors:. Based on the physical plan formulated in the last step, you need to choose an ambient location that fulfills the requirements. Most probably, you would need a business loan to set up a new dairy farm. Hence cost-effectiveness becomes a major factor in deciding the location.

Any new business needs the proper investment structure to become profitable. Yes, your investments will directly depend upon every facility and asset of your dairy farm. However, a wise investment can be the key to a thriving dairy business, starting from getting a dairy loan.

Luckily, various companies provide dairy loans to small businesses. You can avail of a dairy loan of the required amount in a short span of time, with a reasonable interest rate and time. No business can run without a license.

Hence, MSME registration becomes a mandatory step here. With fixed charges by the government, you need to obtain the following permits:. Any small business must stay updated with details and requirements for MSME loans to avoid last-minute hassles and discrepancies. Good and functional infrastructure can significantly improve the rate of production and profits of your dairy farm. You can easily invest a part of your diary loan in the following:. A dairy farm equipped with adequate facilities for both animals and employees can enhance production and quality, eventually generating huge profits.

No business can run efficiently without employees, especially a dairy farm that demands extensive labor. Therefore, a well-run dairy farm must have the following employees:. Different fields require different skills; therefore, hiring employees accordingly can be time-consuming but proves beneficial in the long run. Get Instant Business Loan. Finally, your well-established dairy farm needs to have a name and recognition to make its way in the market.

Therefore, you must invest wisely in the marketing of your brand through various offline and online platforms. Potential marketing strategies include brand campaigns- the quality of milk, variety of products available, social media marketing, commercials, new ventures, and business proposals. All small businesses must utilize some part of their business loans or an MSME loan on marketing to give you huge returns in the future.

There is no doubt that an effective marketing strategy can boost your business in no time. So, a dairy farm is undoubtedly a lucrative business in India. Staying updated and prepared throughout the process is one of the strategies for a successful dairy farm. From a well-planned business idea to a wise investment of your dairy loan, every step counts to build the next big dairy cooperative soon.

We aid small upcoming businesses by providing financial loans. Dairy farming is a type of agriculture that is focused on producing milk. This is different from raising animals to produce meat. The growth story in India is driven largely by small-scale dairy farmers. The Indian dairy market is amongst the largest and fastest growing markets in the world. Read on to know why it is profitable to invest in Dairy Franchise.

Demand for dairy products in India is likely to grow significantly in the coming years, driven by more consumers, higher incomes and greater interest in nutrition. The demand for quality dairy products is rising and production is also rising in many developing countries.

Consumption of processed and packaged dairy products is increasing in urban areas. Consumer demand for healthy products is growing and this is being reflected in spending patterns. The dairy sector is well positioned to capitalise on this trend, due to the increasing use of protein for satiety, training and weight management. Dairy is playing a key role in this sector, through products such as probiotic yoghurts and cholesterol-lowering butters.

Amul is now making way for entrepreneurs by offering franchisees without any royalty or revenue share. The interested person would, however, have to invest something in between Rs 1. The owner can make from Rs 5 lakh to Rs 10 lakh per month through these franchisees. This will not only provide thriving business opportunities for aspiring entrepreneurs but will also boost up the Indian Dairy Sector. This article was originally published on Franchise India by Sneha Santra.

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And other big global dairy companies are all eyeing the market. Experts estimate that investments worth Rs 15, crore will flow into the milk business in India in the next two years. India has always been the largest producer an estimated million litre per day currently and consumer of milk in the world. But it remained a boring market largely because the per capita consumption was low, and most of the milk was consumed in its basic, liquid form, or at best as ghee and some butter.

Out of the million litres of milk that India produces per day, million litres per day 48 per cent is retained by the producers for their own consumption. The surplus milk that is available for sale is around million litres per day, and out of that only 70 million litres per day is being used by the organised sector — consisting of co-operatives such as Amul , Mother Dairy and Nandini a brand owned by the Karnataka Cooperative Milk Producers Federation KMF , as well as private sector players such as Nestle and Danone.

Over million litres of the surplus milk continues to be with the unorganised sector, comprising traditional domestic. In value terms, the Indian milk economy is worth Rs 5 lakh crore, growing at a CAGR of per cent, out of which the organised milk economy is worth Rs 80, crore.

Betting on Value Addition. The value added market chart. Over 80 per cent of milk consumption in India is that of liquid milk and over 55 per cent of the revenue of large co-operatives, such as Amul and Nandini, comes from selling liquid milk. There are still limited takers for value-added dairy products such as cheese, yogurts or flavoured milk, but this is where much of the action is taking place today simply because of its higher margins, and the ability to differentiate and introduce new products.

Equally, the fact that the milk cooperatives did not tap this market until the multinationals came in made it an area where the competition was relatively equal. The Indian consumer — especially the affluent urban consumer — is consuming more value-added products, which bring in bigger profits for dairy companies than raw milk. The phenomenon of working couples, single men and women with high disposable income also provided the impetus to look at the category with fresh eyes.

The fact that the Indian cooperatives had largely stuck to basic milk, butter, processed cheese slices and ice cream for many decades, had left a gap in the market that allowed some of the new players to come in with new product offerings. Look at how the product is created, whether you produce, milk, butter, cheese or any other dairy product. If the cows used are fed only natural, hormone-free feed, this is something you will want to promote.

If the owners and operators are third-generation dairy farmers or an extension of a business with deep roots and extensive experience, highlight this in your advertising. Understanding the product, the business and the process will help to form your overall marketing strategy. The new players are carving out their place in the segments that include cheese, ice creams, varieties of yogurt and milk-based beverages.

The Chairman of Parag Milk Foods gave out that their strategy is to differentiate and not directly compete with big, entrenched players like Nandini and Amul therefore they decided to move up the value ladder and grab that category completely.

Expand product range in Beverage segment. Parag Milk Foods Ltd. The domestic fruit drink market is valued at Rs 10, crore of which juice segment constitutes Rs 7, crore. Only 18 percent of the Rs 1, crore revenue of Prabhat comes from fresh milk, while the rest is from value-added products such as cheese, milk beverages and yogurts.

The company has as many as 67 varieties of cheese, which it sells at retail outlets as well as in institutes. One big change, says Jochen Ebert, Managing Director, Danone Foods and Beverages India , the company that introduced a few new sub-categories, such as flavoured yogurt and ready-to-eat custard, is that many things that were earlier made at home are now bought by urban couples and single working women. Danone was among the first to introduce a series of yogurts, but its innovations were quickly copied by his rivals, including Amul.

Let us take a look at their promotional video:. Danone India entered the market with its array of yogurts and the conventional dahi in Its products did get accepted but only in niche stores and among a certain class of consumers. But Danone , says Ebert, entered India with a mindset of creating a market for yogurts and focus on increasing the per capita consumption.

Yogurt in India, he says, has a per capita consumption of just liter, as opposed to France, Holland, and Germany, which are at litre. In the past year, it has introduced ambient yogurt and milk-based products with six months of shelf life. It has innovated products, such as smoothies, chaas, and lassi, which are packaged in ultra-high temperature UHT packs.

The most recent launch from the Danone stable has been ready-to-eat-custard. Meanwhile, more stores have started accepting these products now. From being available in just 10,odd stores about a year ago, Danone is today available in over 50, stores. What sells your product? Added values. Value-added, in fact, is the place where the bulk of the innovations and new product launches are taking place. Since they are already into production of cheese, they have also tapped into whey protein a cheese by-product — much sought after by bodybuilders and fitness freaks around the globe say Shah of Parag.

Greek yogurt, which is a super concentrated yogurt, is a swooping category in India and is stocked by premium retailers. It is priced considerably higher than other yogurts, but Arvind Bhandari, General Manager Dairy , Nestle India, is confident that it will pick up. Nestle is present in the entire array of dairy product categories, especially in the value-added space.

ITC, in the last few years, has invested significantly in setting up a robust milk procurement network. But even as private companies are betting on the value-added dairy products, big milk cooperatives have also matched them step for step. Product portfolio. Be it ghee, cheese, butter or yogurt, Amul is clearly the market leader in most value-added dairy categories.

Apart from cheese, yogurt, and smoothies, many of the state-run co-operatives are also looking at traditional Indian mithais. There is a good opportunity to push healthy Indian sweets into the market that has the promise of being unadulterated.

Nandini Milk Products , for instance, is pushing healthy sweets. Trace your potential customers. Sodhi of Amul has a word of caution for the new-age dairy companies. He says while India does have surplus milk for dairy companies to build a robust business, to be successful in India and get the much-needed volume growth, one has to have a presence in liquid milk.

After all, 80 percent of Indians consume only liquid milk! Discern who exactly you are marketing to and what segment of the market would be most inclined to purchase your dairy products. If your dairy products are produced by hormone-free cows that are free to graze and are provided healthy lifestyles, then you need to determine who these facts will resonate with and who may be willing to pay a little extra for these features.

Families in middle to upper-income brackets are likely to be your best clientele. Those interested in what goes into the foods and drinks their children consume and willing and able to pay a little more for your natural and chemical free products are likely a good fit.

Multinationals, on the other hand, are used to operating in a very different way around the globe. In western markets, dairy companies depend on an ecosystem of large corporate dairy farms and bulk of the procurement is done from a single farm. These days preparing vermicompost and organic fertilizer have become a domestic business. This business can be done in low capital investment all you need to have is little awareness of its production process.

This business can be done easily by people living in small cities or rural areas. In the fertilizer distribution business, you have to plan to buy fertilizers from big cities and sell them to rural areas. In the past 10 years, there has been a great increase in the trade of dried flowers. If you have vacant land, you can cultivate flowers in it and dry them and sell them to craft stores or those who are fond of flowers. Tree farming can be a very high return investment when done with a focus on the long term business.

From tree farms, you can earn profits by growing and selling trees. In this business, it takes a long time till the trees grow, due to which the business and its profit will also take time. But it comes under the category of good and profitable agriculture business.

Here are some of the Most Profitable Plants to Grow to get your tree farming business. The use of hydroponics technology is increasing very fast these days. In this business, you can sell many hydroponics equipments in one place. The growth of the organic greenhouse business is also very good because these days the demand for organically grown products is high.

Earlier this business was being done on small scale, but with increasing demand people are now buying land to build organic greenhouses. Due to the increasing demand for tea leaves, a person can earn good profit through this business. But for growing tea leaves, the choice of weather and place is very important. Though capital investment in this business is high but in return profit is also high.

As many people today have become health-conscious, the demand for honey is also increasing. Thus Beekeeping Business in India is emerging as a profitable agri business. However, to start beekeeping you will have to undergo training. Here all you need to do is buy fruits and vegetables from local farms or farmers and supply them to big cities or urban areas. The export of fruits and vegetables is a very profitable business with low investment.

The cultivation of medicinal plants and herbs is yet another profitable agriculture business. If you have basic knowledge of medicinal plants and you have enough land, then you can earn good profits from its cultivation. At the same time, the government also offers subsidies for cultivating medicinal plants. Corn or maize has emerged as the most versatile crop.

It can be grown under different climatic conditions. By selecting good quality seeds of maize, you will get bumper yield which in return will give you good money. The demand for organic spices is all over the world. We need spices at home also. Its processing and packaging process is not very difficult and can be started with less capital investment. The goat rearing business is very popular and profitable all across the world due to the high demand for its meat.

The best thing is that goat rearing can be done in low capital investment. Potato powder is used extensively in the snack food industry. It is now being used in all types of dishes that require mashed potatoes. It is also used in making vegetable gravy and soup. Hence you can think of starting this business. If you have cultivable land and people who can work on it, then you can start growing different vegetables. Good quality and high yields can lead to good profits. Many types of food items like soy milk, soy flour, soy sauce, soybean oil, etc.

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The value added market chart. Over 80 per cent of milk consumption in India is that of liquid milk and over 55 per cent of the revenue of large co-operatives, such as Amul and Nandini, comes from selling liquid milk. There are still limited takers for value-added dairy products such as cheese, yogurts or flavoured milk, but this is where much of the action is taking place today simply because of its higher margins, and the ability to differentiate and introduce new products.

Equally, the fact that the milk cooperatives did not tap this market until the multinationals came in made it an area where the competition was relatively equal. The Indian consumer — especially the affluent urban consumer — is consuming more value-added products, which bring in bigger profits for dairy companies than raw milk. The phenomenon of working couples, single men and women with high disposable income also provided the impetus to look at the category with fresh eyes.

The fact that the Indian cooperatives had largely stuck to basic milk, butter, processed cheese slices and ice cream for many decades, had left a gap in the market that allowed some of the new players to come in with new product offerings. Look at how the product is created, whether you produce, milk, butter, cheese or any other dairy product.

If the cows used are fed only natural, hormone-free feed, this is something you will want to promote. If the owners and operators are third-generation dairy farmers or an extension of a business with deep roots and extensive experience, highlight this in your advertising. Understanding the product, the business and the process will help to form your overall marketing strategy.

The new players are carving out their place in the segments that include cheese, ice creams, varieties of yogurt and milk-based beverages. The Chairman of Parag Milk Foods gave out that their strategy is to differentiate and not directly compete with big, entrenched players like Nandini and Amul therefore they decided to move up the value ladder and grab that category completely.

Expand product range in Beverage segment. Parag Milk Foods Ltd. The domestic fruit drink market is valued at Rs 10, crore of which juice segment constitutes Rs 7, crore. Only 18 percent of the Rs 1, crore revenue of Prabhat comes from fresh milk, while the rest is from value-added products such as cheese, milk beverages and yogurts. The company has as many as 67 varieties of cheese, which it sells at retail outlets as well as in institutes.

One big change, says Jochen Ebert, Managing Director, Danone Foods and Beverages India , the company that introduced a few new sub-categories, such as flavoured yogurt and ready-to-eat custard, is that many things that were earlier made at home are now bought by urban couples and single working women. Danone was among the first to introduce a series of yogurts, but its innovations were quickly copied by his rivals, including Amul. Let us take a look at their promotional video:.

Danone India entered the market with its array of yogurts and the conventional dahi in Its products did get accepted but only in niche stores and among a certain class of consumers. But Danone , says Ebert, entered India with a mindset of creating a market for yogurts and focus on increasing the per capita consumption.

Yogurt in India, he says, has a per capita consumption of just liter, as opposed to France, Holland, and Germany, which are at litre. In the past year, it has introduced ambient yogurt and milk-based products with six months of shelf life. It has innovated products, such as smoothies, chaas, and lassi, which are packaged in ultra-high temperature UHT packs.

The most recent launch from the Danone stable has been ready-to-eat-custard. Meanwhile, more stores have started accepting these products now. From being available in just 10,odd stores about a year ago, Danone is today available in over 50, stores. What sells your product? Added values. Value-added, in fact, is the place where the bulk of the innovations and new product launches are taking place.

Since they are already into production of cheese, they have also tapped into whey protein a cheese by-product — much sought after by bodybuilders and fitness freaks around the globe say Shah of Parag. Greek yogurt, which is a super concentrated yogurt, is a swooping category in India and is stocked by premium retailers.

It is priced considerably higher than other yogurts, but Arvind Bhandari, General Manager Dairy , Nestle India, is confident that it will pick up. Nestle is present in the entire array of dairy product categories, especially in the value-added space. ITC, in the last few years, has invested significantly in setting up a robust milk procurement network. But even as private companies are betting on the value-added dairy products, big milk cooperatives have also matched them step for step.

Product portfolio. Be it ghee, cheese, butter or yogurt, Amul is clearly the market leader in most value-added dairy categories. Apart from cheese, yogurt, and smoothies, many of the state-run co-operatives are also looking at traditional Indian mithais. There is a good opportunity to push healthy Indian sweets into the market that has the promise of being unadulterated.

Nandini Milk Products , for instance, is pushing healthy sweets. Trace your potential customers. Sodhi of Amul has a word of caution for the new-age dairy companies. He says while India does have surplus milk for dairy companies to build a robust business, to be successful in India and get the much-needed volume growth, one has to have a presence in liquid milk. After all, 80 percent of Indians consume only liquid milk!

Discern who exactly you are marketing to and what segment of the market would be most inclined to purchase your dairy products. If your dairy products are produced by hormone-free cows that are free to graze and are provided healthy lifestyles, then you need to determine who these facts will resonate with and who may be willing to pay a little extra for these features.

Families in middle to upper-income brackets are likely to be your best clientele. Those interested in what goes into the foods and drinks their children consume and willing and able to pay a little more for your natural and chemical free products are likely a good fit.

Multinationals, on the other hand, are used to operating in a very different way around the globe. In western markets, dairy companies depend on an ecosystem of large corporate dairy farms and bulk of the procurement is done from a single farm. The game, in India, is to aggregate milk from many small-sized farmers, which could lead to inconsistencies in both supply volume as well as supply quality. More private players are getting into value-added dairy products. Is this the big opportunity now?

Milk demand is growing by 6 million to 7 million tonnes per year. Last year, we even exported , tonnes of skimmed milk powder. You will see more yoghurt, ice cream, butter and cheese being consumed. Even Amul has diversified into the value-added segment. Smaller cooperatives are still largely restricted to liquid milk, though they are diversifying into traditional sweets. With overall growth, we will see more such diversification. With the invention of technology and E-Commerce, people find it very wasteful to spend hours buying day-to-day groceries.

People prefer ordering groceries to be delivered at their doorsteps. You can start E-shopping portal and become entrepreneur. Tree farm grows trees and earns money by selling them. The waiting period of earning money in this business is quite high as the growing of trees requires considerable time.

This is one of the best small farm business ideas to start. This might need some maintenance cost. Vermicompost or organic fertilizer production has become a household business. It does not require much investment and very easy to initiate with a little know-how of the production process. This business is suitable for people who live in small towns or rural areas.

In this business, you are required to buy fertilizers from big cities and make them available in rural areas. This could be one of the best small agricultural business ideas in India to start in small towns. The business of dry flowers has flourished over the last 10 years. If you have vacant land, you can grow flowers, make them dry and sell to craft stores or hobbyists.

The business of growing mushrooms can fetch you big profits in a short period of time. It can be started with low investment and it requires less space also. Mushrooms are in great demand at hotels, restaurants, and households. The poultry farming business has transformed into a techno-commercial industry.

In the last few decades, it is one of the fastest-growing industries. If you are looking for small farm income ideas, this could be best fit for you. Hydroponics is a new plantation technology that does not use soil for growing plants. A hydroponic retail store deals in hydroponic equipment and also develops plants to be sold for both commercial and home use.

An organic greenhouse business has good potential to grow because the demand for organically grown products has been increasing consistently. Beforehand, this business was done on small family-run farms, but with increasing demand as people are now buying land for making organic greenhouse. With the increasing awareness for health, the demand for honey is growing day by day.

This way, beekeeping has become a great business opportunity. This business demands day-to-day monitoring of the bees with close supervision. You can initiate the business of exporting fruit and vegetables in which you have to collect fresh fruits and vegetables from local farmers and sell them internationally.

For this business, you need to know the import and export policies as well as local markets. This is one of the best agriculture export business ideas to start. The demand for milk as well as milk products always remains high. Hence we can say that the dairy business is the most profitable agri business in India. To start a dairy business you need good capital investment and some guidance from dairy experts. But if done with full passion, it gives very good business.

This business can be done easily by people living in small cities or rural areas. In the fertilizer distribution business, you have to plan to buy fertilizers from big cities and sell them to rural areas. Selling flowers are a very profitable retail business. Flower arrangement and bouquets are always in high demand for gifting, at weddings, etc. With some innovation and creativity. You can do wonders in this business. For centuries, the broom has been used for sweeping up the floor and removing the dirt and dust in and around workplaces and homes.

The process of broom production is quite simple and the project can be initiated with low capital investment. Maintaining a good quality and competitive prices can give you good profits in a short span of time. If you can procure good quality raw material groundnuts for this business, you can initiate it with moderate capital. Processed groundnuts have very good market potential all over the world.

Quail farming is about raising quails for profitable eggs and meat. At the global levels, quail farming business is gaining importance as it fulfills daily family nutrition demand. With the increasing demand for tea leaves, this business has huge potential.

Tea plants typically required acidic soil and heavy rainfall, although they can be grown anywhere from sea level to high altitudes. So, if your demographic situation is suitable for growing tea, you should go in this business. This is one of the good agriculture business ideas in India that requires high capital. The use of hydroponics technology is increasing very fast these days.

In this business, you can sell many hydroponics equipment in one place. Growing of medicinal herbs at the commercial level is one of the most profitable agriculture business ideas. If you possess good knowledge about the herbs and have sufficient land, you can initiate the farming of medicinal herbs.

You may need to take certain licenses from local government in the case of medicinal herb business. Source: Ag News. Photo created by jcomp - freepik. Eindhoven, the Netherlands — Tomato grower Looye is transitioning to a hybrid installation with Philips Fleuroselect, the international organisation for the ornamental plants industry, is proud to announce that the Follow on Instagram , Twitter en Facebook.

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India being one of the largest agrarian economies has a deep connection with dairy farming since the past, which contributes 4% of its total GDP. The Indian dairy market is amongst the largest and fastest growing markets in the world. Growing private sector investment in dairy farming. The dairy farming business can be highly profitable if the costs are managed effectively. The major running cost in the dairy farming business.