A STUDY ON SUSTAINABLE PRACTICES &

OPERATIONS IN SANGAM DAIRY GUNTUR

Project Report submitted in partial fulfilment of the requirements for
the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

OF
BANGALORE UNIVERSITY

by
MARAM SAI MANIDEEP
P03AA22M015026

Under the guidance of

Dr . C. Sengottuvelu, CPM (ISM-USA),
Professor and Head -Research

ACHARYA BANGALORE B-SCHOOL

2024

i
DECLARATION BY THE STUDENT

I hereby declare that “A STUDY ON SUSTAINABLE PRACTICES &

OPERATIONS IN SANGAM DAIRY GUNTUR is the result of the project work
carried out by me under the guidance of. Dr. C. SENGOTTTUVELU in partial
fulfilment for the award of Master’s Degree in Business Administration by
Bangalore University.

I also declare that this project is the outcome of my own efforts and that it has not
been submitted to any other university or Institute for the award of any other degree
or Diploma or Certificate.

Place: Bangalore Name: MARAM SAI MANIDEEP

Date: Register Number: P03AA22M015026

ii
BANGALORE UNIVERSITY

Certificate of Originality (Plagiarism)

Name of the Student : MARAM SAI MANIDEEP

Registration Number : P03AA22M015026

Title of Project : A Study on Sustainable practices &

operations in Sangam Dairy Guntur

Name of the Guide : Dr . C. SENGOTTUVELU

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We have verified the contents of the project report, as summarized above and
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Signature of the Guide Signature of the Director

iii
CERTIFICATE OF ORIGINALITY

DATE :

This is to certify that the dissertation A STUDY ON SUSTAINABLE

PRACTICES & OPERATIONS IN SANGAM DAIRY GUNTUR is an original
work of Mr. MARAM SAI MANIDEEP bearing University Register Number
P03AA22M015026 and is being submitted in partial fulfilment for the award of the
Master’s Degree in Business Administration of Bangalore University.

The report has not been submitted earlier either to this University/Institution for the
fulfilment of the requirement of a course of study.

SIGNATURE OF GUIDE SIGNATURE OF DIRECTOR

DATE: DATE:

iv
ACKNOWLEDGEMENT

I take this opportunity to convey my sincere thanks and gratitude to all those who
have directly or indirectly helped and contributed towards the completion of this
project.
I convey my sincere gratitude to Dr. C. SENGOTTUVELU, CPM(ISM-USA),
Professor and Head -Research, Acharya Bangalore B-School, Bangalore
University as my instructor for her timely guidance and continued inspiration and
encouragement for accomplishing qualitative internship project.
I would also like to express my gratitude and thanks to, DR. HR VENKATESHA,
DIRECTOR-Acharya Bangalore B School, for his constant and encouragement
without his outright and energetic motivation, support, and prompt response. It
would not have been possible to do any justice as well as bring authenticity to the
project.
And I also extend my wholehearted thanks to V.S.N.Prasad, Asst Manager,
Training Centre, Sangam Dairy for providing comprehensive learning
atmosphere and industry work setting exposure and directing me to successful
completion of this project report.

Finally, I convey my sincere regards and thankfulness to all those, who supported
my internship journey.

DATE: NAME: MARAM SAI MANIDEEP

PLACE: Bangalore REGISTRATION NUMBER:

P03AA22M015026

v
TABLE OF CONTENTS
CHAPTER NO PARTICULARS PAGE NO
List Of Tables viii
List Of Graphs ix
Executive Summary x
1 Introduction
1.1.Introduction to the Industry 01-19
1.2.Indian Dairy Industry Key Trends
1.3.Technological Innovations in Dairy Industry
1.3.1. Environmental Sustainability
1.3.2. Market and Consumer Trends
1.3.3. Economic and Policy Developments
1.4.Macro and Micro factors influencing Dairy
Industry
2 Research Design
2.1. Literature review
2.2. Statement of the problem
2.3. Need of the study 20-30
2.4. Objectives of the study
2.5. Scope of the study
2.6. Operational Definitions of the concept
2.7. Hypothesis
2.8. Research Methodology
2.9. Data Collection
2.10. Sampling Design
2.11. Plan of Analysis
2.12. Limitations of the study
2.13. The Chapter schemes

3 Company Profile
3.1. Company and Its History
3.2. Vision and Mission Statements
3.3. Product Profile

vi
3.3.1 Dairy Products 31-50
3.3.2 Value-Added Products
3.3.3 Bakery Products
3.3.4 Health and Nutrition
3.3.5 Services
3.3.6 Sustainability and Quality
3.4. Competitors
3.5. Market Share/ Industry Share to GDP
3.6. Milestones Achieved / Awards Received
3.7. Corporate Social Responsibility
3.8. Industry Analysis
3.8.1. SWOT Analysis
3.8.2. Five Force Analysis

4 Data Analysis and Interpretation

4.1. Data Analysis
4.2. Hypothesis Testing 51-80

5 Summary Of Findings, Recommendations, And

Conclusion 81-86

Bibliography 87
Annexure – 1 Questionnaire 88-92

vii
LIST OF TABLES
Sl.No List of tables Pg. No
4.1.1 Gender of respondents 52
4.1.2 Age of the responders 53
4.1.3 Education of the responders 54
4.1.4 Occupation of respondents 55
4.1.5 Residential area of respondents 56
4.1.6 Income of respondents 57
4.1.7 Type of consumption of milk 58
4.1.8 Brand identity 59
4.1.9 Quality of products 60
4.1.10 Purchase history of products 61
4.1.11 Pricing range of products 62
4.1.12 Sustainability and Environmental responsibilities of products 63
4.1.13 Sales of milk products 64
4.1.14 Packaging of products 65
4.1.15 Waste management practices 67
4.1.16 Demand of products variant 68
4.1.17 Reasons behind their sales 69
4.1.18 Outlets in locality 71
4.1.19 Product line improvement 73
4.1.20 Communication to improve purchasing behaviour 75
4.1.21 Influence on local community 77

4.1.22 Key competitors in market 78

viii
LIST OF GRAPHS/FIGURES

Sl.No List of Graphs Pg. No

4.1.1 Gender of respondents 52
4.1.2 Age of the responders 53
4.1.3 Education of the responders 54
4.1.4 Occupation of respondents 55
4.1.5 Residential area of respondents 56
4.1.6 Income of respondents 57
4.1.7 Type of consumption of milk 58
4.1.8 Brand identity 59
4.1.9 Quality of products 60
4.1.10 Purchase history of products 61
4.1.11 Pricing range of products 62
4.1.12 Sustainability and Environmental responsibilities of products 63
4.1.13 Sales of milk products 64
4.1.14 Packaging of products 65
4.1.15 Waste management practices 67
4.1.16 Demand of products variant 68
4.1.17 Reasons behind their sales 69
4.1.18 Outlets in locality 71
4.1.19 Product line improvement 73
4.1.20 Communication to improve purchasing behaviour 75
4.1.21 Influence on local community 77

4.1.22 Key competitors in market 78

ix
EXECUTIVE SUMMARY

This study investigates the sustainable practices and operations at Sangam Dairy in
Guntur, Andhra Pradesh, India, with the goal of understanding and evaluating the
effectiveness of these practices. By focusing on Sangam Dairy, the research aims
to offer detailed insights into how the dairy industry can adopt and optimize
sustainability measures. The geographical focus on Guntur allows for a specific
examination of local environmental, economic, and social factors influencing
sustainability.
The study also explores the broader regional context of the dairy industry in Andhra
Pradesh and South India. This involves examining how regional policies,
environmental conditions, and market dynamics impact the implementation and
success of sustainable practices at Sangam Dairy. Understanding these regional
influences is vital for identifying best practices that can be replicated or adapted in
other areas.
Furthermore, the research considers the historical development of sustainable
practices at Sangam Dairy over the past decade. This historical perspective provides
insights into the long-term impacts and improvements achieved through the
adoption of sustainability measures. By tracing the evolution of these practices, the
study aims to highlight key milestones and transformative changes that have shaped
the dairy's current operations.
Looking ahead, the study projects future trends and potential developments in
sustainable dairy farming. This forward-looking analysis explores anticipated
technological advancements, regulatory changes, and market shifts that could affect
Sangam Dairy and the broader dairy industry. By considering these future
projections, the study provides strategic insights for planning and preparing for
upcoming changes in the industry.
In conclusion, this study offers a comprehensive analysis of the sustainable
practices and operations at Sangam Dairy, focusing on geographical, temporal, and
thematic dimensions. By examining the historical development, current practices,
and future projections, the study aims to provide valuable insights and practical
recommendations for enhancing sustainability in the dairy industry.

x
CHAPTER - 1
INTRODUCTION

1
INTRODUCTION
1.1 Introduction to the Industry
The dairy industry plays a pivotal role in global agriculture, providing essential
nutrients and supporting the livelihoods of millions of people, particularly in rural
areas. However, the sector faces significant environmental challenges that threaten
its sustainability and long-term viability. Traditional dairy operations are often
resource-intensive, with substantial greenhouse gas emissions, high water
consumption, and significant waste production. These environmental impacts have
prompted a critical need for the industry to adopt sustainable practices that balance
ecological stewardship with economic growth.

Global Perspective:
On a global scale, the dairy industry has witnessed significant growth and
transformation. As economies have developed, dietary preferences have shifted
towards dairy products, making them a staple in many regions. Emerging
economies like China and India have played a crucial role in this growth due to their
rising populations and increasing consumption patterns. The demand for dairy
products, including milk, cheese, yogurt, and butter, has led to increased production
and trade, fostering globalization of the industry. Global dairy giants have emerged,
and international trade agreements have further interconnected markets, shaping the
industry's dynamics.

National Perspective:
At the national level, different countries have experienced varying growth
trajectories in their dairy sectors. In developed nations, technological advancements
and efficient supply chains have driven productivity gains. These countries often
prioritize innovation in areas like genetics, animal husbandry, and processing
techniques to boost production and quality. In contrast, in developing countries, the
growth of the dairy sector contributes significantly to rural livelihoods and poverty
reduction. National policies, market dynamics, infrastructure development, and
support from government and non-governmental organizations have influenced the
pace of growth and sustainability of the dairy industry within each nation.

2
Regional Perspective:
Regionally, the growth of the dairy industry can be influenced by climatic
conditions, cultural preferences, and economic factors. Dairy practices can be
intensive in some regions, where high-tech farms and automated processes are
prevalent, while other areas might rely on traditional small-scale farming. Regional
collaborations and trade agreements can impact the flow of dairy products across
borders, affecting prices and market access. Additionally, certain regions might
have a stronger focus on specific dairy products due to local tastes and culinary
traditions.
1.2 Indian Dairy Industry
India is the world’s largest producer and consumer of dairy products. The Indian
dairy industry plays a pivotal role in the national economy and is integral to rural
livelihoods.
• Production and Consumption: India produces over 200 million tons of
milk annually, accounting for about 22% of the world's total milk
production. The country’s dairy industry is characterized by a large number
of smallholder farms, with millions of small and marginal farmers
contributing to milk production. The per capita consumption of milk in India
is also high, reflecting the importance of dairy in the Indian diet.
• Challenges and Opportunities: The Indian dairy industry faces several
challenges, including low productivity per animal, inadequate
infrastructure, and quality control issues. However, there are significant
opportunities for growth and improvement. The government’s initiatives,
such as the National Dairy Plan and the Dairy Entrepreneurship
Development Scheme, aim to enhance productivity, improve milk quality,
and promote sustainable practices.
• Sustainability Initiatives: Sustainability is becoming increasingly
important in the Indian dairy industry. Efforts are being made to reduce the
environmental footprint through better waste management, energy
efficiency, and water conservation. For instance, initiatives to promote the
use of biogas plants on dairy farms are helping to manage waste and
generate renewable energy.

3
1.3 Technological Innovations in Dairy Industry
Precision Dairy Farming: Precision dairy farming involves the use of advanced
technologies to monitor and manage various aspects of dairy farming with high
accuracy. This includes the use of sensors, data analytics, and automation to
enhance productivity, efficiency, and animal welfare.
• Sensors and Wearables: Sensors and wearable devices are used to monitor
the health and behaviour of dairy cattle. These devices can track parameters
such as activity levels, rumination, body temperature, and milk yield. This
data helps farmers detect health issues early, optimize feeding, and improve
overall herd management.
• Automated Milking Systems: Automated milking systems, also known as
robotic milking, allow cows to be milked with minimal human intervention.
These systems increase milking efficiency, reduce labor costs, and improve
milk quality by ensuring consistent milking routines.
• Data Analytics: Advanced data analytics tools process and analyze the vast
amounts of data generated by sensors and wearables. This analysis provides
insights into herd health, milk production, and farm management practices,
enabling farmers to make informed decisions.
Genomic Selection: Genomic selection is a breakthrough in animal breeding that
uses DNA markers to predict the genetic potential of dairy cattle. This technology
allows for more accurate selection of animals with desirable traits, such as high milk
production, disease resistance, and improved fertility.
• Genetic Testing: Genetic testing of young animals enables the
identification of superior breeding stock early in their lives. This accelerates
genetic improvement and enhances the overall productivity and health of
the herd.
• Breeding Programs: Genomic selection supports the development of more
effective breeding programs, leading to improved herd genetics and better
adaptation to changing environmental conditions.
Advanced Feed Technologies: Innovations in feed technology are enhancing the
nutritional quality and efficiency of dairy cattle diets. These advancements help
optimize milk production, improve animal health, and reduce environmental
impacts.

4
• Precision Feeding: Precision feeding systems deliver the right amount of
nutrients to each cow based on its individual needs. This reduces feed waste,
lowers costs, and improves milk yield and quality.
• Alternative Feed Ingredients: Research into alternative feed ingredients,
such as by-products from the food industry and insect-based proteins, offers
sustainable options that reduce reliance on traditional feed sources and
lower the environmental footprint of dairy farming.
1.3.1 Environmental Sustainability
Methane Mitigation: Methane is a potent greenhouse gas produced by ruminant
animals during digestion. Reducing methane emissions from dairy cattle is crucial
for mitigating the environmental impact of dairy farming.
• Feed Additives: Certain feed additives, such as 3-nitrooxypropanol (3-
NOP), have been shown to reduce methane emissions from cattle by
inhibiting methane-producing microbes in the rumen.
• Dietary Adjustments: Modifying the diet of dairy cattle to include more
easily digestible feeds can also reduce methane production. This includes
the use of high-quality forages, grains, and oils.
Renewable Energy Integration: Integrating renewable energy sources into dairy
farm operations helps reduce reliance on fossil fuels and lower greenhouse gas
emissions.
• Biogas Production: Anaerobic digesters convert manure and other organic
waste into biogas, which can be used to generate electricity and heat. This
not only provides a renewable energy source but also reduces waste and
odor.
• Solar and Wind Energy: Many dairy farms are adopting solar panels and
wind turbines to generate renewable electricity. These installations reduce
energy costs and contribute to a more sustainable energy mix.
Water Conservation Technologies: Water conservation is essential in dairy
farming due to the high water usage in milk production and farm operations.
• Efficient Irrigation Systems: Advanced irrigation technologies, such as
drip irrigation and automated sprinkler systems, optimize water use in feed
crop production, reducing water waste.

5
• Recycling and Reuse: Technologies for treating and recycling wastewater
enable dairy farms to reuse water for cleaning and irrigation, thereby
conserving freshwater resources.
1.3.2 Market and Consumer Trends
Demand for Plant-Based Alternatives: The growing consumer demand for plant-
based dairy alternatives is reshaping the dairy market. Plant-based milks, such as
almond, soy, and oat milk, are gaining popularity due to health, ethical, and
environmental reasons.
• Product Innovation: Dairy companies are investing in research and
development to create high-quality plant-based products that meet consumer
expectations for taste, texture, and nutritional value.
• Market Expansion: The plant-based dairy segment is expanding rapidly,
with new products and brands entering the market, offering consumers a
wider variety of choices.
Traceability and Transparency: Consumers are increasingly seeking
transparency in the food supply chain, wanting to know where their food comes
from and how it is produced.
• Blockchain Technology: Blockchain technology is being used to enhance
traceability in the dairy supply chain. By recording every transaction and
movement of dairy products on a secure, transparent ledger, blockchain
ensures product authenticity and traceability from farm to table.
• Certification Programs: Certification programs, such as organic and
animal welfare certifications, provide consumers with assurance about the
ethical and sustainable practices used in dairy production.
Health and Wellness Focus: The rising focus on health and wellness is influencing
consumer preferences for dairy products.
• Functional Dairy Products: There is a growing demand for functional
dairy products that offer additional health benefits, such as probiotics,
fortified milk, and lactose-free options.
• Clean Label: Consumers are increasingly looking for clean label products
with simple, natural ingredients and no artificial additives. Dairy companies
are responding by reformulating products to meet these demands.

6
1.3.3 Economic and Policy Developments
• Trade Policies and Agreements: Trade policies and international
agreements significantly impact the dairy industry, affecting export
opportunities, tariffs, and market access.
• Export Markets: Expanding export markets for dairy products is crucial
for industry growth. Trade agreements that reduce tariffs and non-tariff
barriers open up new opportunities for dairy producers.
• Regulatory Changes: Changes in regulations, such as those related to food
safety, animal welfare, and environmental standards, influence the
operational practices and competitiveness of dairy farms.
Government Support and Subsidies: Government policies and subsidies play a
critical role in supporting the dairy industry, particularly in times of market
volatility and economic challenges.
• Support Programs: Programs that provide financial assistance, research
funding, and infrastructure development support the growth and
sustainability of the dairy sector.
• Innovation Incentives: Incentives for adopting sustainable and innovative
practices, such as grants and tax credits, encourage dairy farms to invest in
new technologies and sustainable solutions.
Industry Consolidation: The dairy industry is experiencing consolidation, with
mergers and acquisitions leading to larger, more integrated operations.
• Economies of Scale: Larger dairy operations benefit from economies of
scale, improving efficiency and competitiveness. However, consolidation
also raises concerns about market concentration and the impact on
smallholder farmers.
• Vertical Integration: Vertical integration, where companies control
multiple stages of the supply chain from production to processing and
distribution, enhances supply chain efficiency and product quality control.

7
1.4 Macro and Micro factors influencing Dairy Industry

INDUSTRY PROFILE
Dairy farming was once a subsidiary occupation in rural areas is now an important
Agro-Business. It has developed in to well-recognized industry. Bombay’s Interpol
established in 1834 and military dairy firm at Allahabad in 1839. Organized
dairying has traversed quite a distance on its way to the present position. The
Bombay milk scheme in 1946 and private company Polson at Anand in Gujarat
have been conceived to the mark of real beginning of the organized dairy industry
in India.
Dairying has been of the lift in India since the ancient Vedic time, the modern dairy
industry took roots in 1950 with salve of bottled milk in Bombay from array milk
colony. The first large scale milk products factory was started in 1954 at Anand by
Amul a co-operative venture. With the assistance of UNICE for the production of
milk powder table butter and Ghee. These products were made from the buffalo
milk.
The world’s dairy development program ever undertaken the operation flood
undertook the gigantic task if upgrading and moderning milk production
procurement. Processing and marketing with assistance providing by the world food
programme, the, European Economic Community, the World Bank and other
internal agencies designed and implemented by the National Dairy Development
Board (NDDB) and the Indian Dairy Corporation (IDC) was launched in July 1970.
It basic concepts comprises the establishment co-operative structure of Amul
pattern.

OPERATIONAL FLOOD-1:
Operation flood also referred to as `white revolution is a gigantic project,
propounded by the Government of India for developing dairy industry in the
country. The Operation Flood-2 originally mean to be completed in 1975 actually
took the period of about 9 years from 1970 to 79 for its completion at a total cost of
about a Rs. 116 crores. The operation flood-I was wholly finance any selling in
India free gifts of 1,26,000 Metric tons at skin milk powder and 42,000 Metric Tons
of Buffer Oil donated out of the surplus of European economic community.

8
OPERATION FLOOD-2:
The operation flood-2 that started that in July 1978 is scheduled to be completed in
1985 at a cost Rs. 483 crores. A humble attempt has been made to present a general
appraisal of the achievements made in same sufficient fields during Operation
Flood-I. These achievements if at as all made particularly the Anand Pattern Dairy
Co-operative unions are to serve now as bedrock of operation flood-2. These unions
are to act as the starting nuclear for Co-operative charter federation, the main
instrument for the gigantic project flood-2. The average nuclear charter federation
world in 6 Districts Unions registered and unregistered. The Indian Dairy
corporation, National Dairy Development Board being autonomy National
Institutional probable are not required to indicate the basis on which state with
allocations were made in Operation Flood-I upto end of the 1979, Gujarat State
alone Government the lines shares of 1666.5 lakhs against 5 states Haryana, Bihar,
Rajasthan and Andhra Pradesh put together the total disbursement in their case was
1732 lakhs only. This trend is going to be nationalized in Operation Flood-2.

OPERATION FLOOD-3:
The Phenomenal growth is a result of the National Dairy Development Board
through Operation Flood Programmed. Operation Flood-3 now in this closing
position consolidated the procurement efforts to boost production. The projection
for milk output for 2000 A.D., is nearly 90 million tons at a 5% growth rate. It is
now 5 to 8 percent Dairy Factories established under Operation Flood, which covers
170 milk Co-operative societies. They have a milk drying component of about 697
Tones powder. In 1990-91 the Co-operatives collectively nearly 10 million liters
and marketed 8 million liters of liquid milk per day.
The operation flood being implemented by the National Dairy development Board
aims to enhance the average milk procurement to 13.7 million Kilograms per day
by the year 1996 the concluding year of the operation flood 3 programme. The peak
procurement level curing the period is expected to means 18.3 million Kilograms
packed. The compulsive line figure for both during 1987 the base year of the
operation flood programme to was respectively 8.5 and 11.2 mkg-pd efforts are also
being made to increase capabilities of milk and production of milk powder.8Under
the operation flood improving Animal Health case and good breeding natural

9
making available quality fodder under and incurring area and farm fertilization
under Co-operatives and processing were added. Inventory and animals has broadly
and Dairying from 1950 to 90 was 2.864 Crores achieve of all occasion to the
Operation Flood. The rapid growth in milk production did away with import of milk
powder except for a small quality (26.400 tones) during the drought years.

The transformation of dairy farming from a subsidiary rural occupation to a thriving

agro-business in India has been a remarkable journey. Initially, dairy farming was
localized and fragmented, with limited organization and modernization. However,
significant milestones paved the way for the organized dairy industry we see today.
Historically, dairy farming holds roots in ancient Vedic times, but its modernization
began around 1950. The pivotal moment came in 1946 with the Bombay Milk
Scheme and the establishment of the Polson dairy company in Anand, Gujarat.
These events marked the initiation of organized dairy practices in India. The
cooperative movement gained momentum in 1954 when Amul, a cooperative
venture, set up a large-scale milk products factory in Anand. Supported by
UNICEF, Amul produced milk powder, table butter, and ghee from buffalo milk. A
groundbreaking effort in dairy development was Operation Flood, launched in
1970. This ambitious initiative aimed to enhance and modernize milk production,
procurement, processing, and marketing. International organizations like the World
Food Programme, the European Economic Community, and the World Bank, along
with national entities such as the National Dairy Development Board (NDDB) and
the Indian Dairy Corporation (IDC), collaborated to implement this program. The
core principle of this endeavor was based on the successful cooperative structure of
Amul. Operation Flood successfully bridged the gap between traditional and
modern dairy practices, making India one of the largest milk-producing countries
globally. It streamlined production, distribution, and marketing channels, leading to
increased rural income and improved dairy industry sustainability. This evolution
highlights how dairy farming's humble origins have evolved into a thriving agro-
business through strategic interventions, cooperation, and modernization efforts,
resulting in socio-economic advancement and self-sufficiency.

10
Role of the Dairy Farming Industry in the Support and Growth of Allied
Industries:
The dairy farming sector plays a pivotal role in supporting and driving the growth
of various allied industries, contributing to overall economic development. These
allied industries are interconnected with dairy farming and benefit from its
activities. Some key roles of the dairy farming sector in supporting and fostering
growth in allied industries include:
• Animal Feed Industry: Dairy farming relies heavily on a steady supply of
nutritious animal feed. This demand for feed crops such as grains, forage,
and silage drive the growth of the animal feed industry. Increased dairy
production necessitates efficient feed production, leading to advancements
in crop cultivation techniques, research on animal nutrition, and innovation
in feed formulation.
• Veterinary Services: Maintaining the health and well-being of dairy cattle
is essential for optimal milk production. This creates a demand for
veterinary services and pharmaceuticals. Veterinary professionals provide
regular health check-ups, disease prevention, and treatment services,
contributing to the growth of the veterinary industry.
• Agribusiness and Agri-inputs: Dairy farming requires a range of inputs,
including equipment, machinery, fertilizers, pesticides, and seeds for forage
crops. The demand for these inputs stimulates the agribusiness sector,
promoting technological advancements and innovation in farming practices.
• Processing and Packaging Industries: Dairy products like milk, cheese,
yogurt, and butter need to be processed and packaged before reaching
consumers. This drives the growth of processing and packaging industries.
Innovations in processing techniques, quality control, and packaging
solutions support the dairy sector's expansion.
• Cold Chain and Logistics: Dairy products are perishable and require
proper storage and transportation to maintain quality and safety. The
development of cold chain infrastructure, including refrigerated storage and
transportation, is vital to ensure the smooth flow of dairy products from
farms to markets.

11
• Research and Technology: The dairy sector's growth encourages research
and technological advancements in areas such as animal genetics, breeding,
nutrition, and disease management.
• Retail and Distribution: Dairy products are a staple in most diets, making
them a crucial part of retail and distribution networks. The growth of the
dairy industry drives the expansion of retail outlets, supermarkets, and
distribution networks to meet consumer demands.
• Employment and Rural Development: The dairy sector is a significant
source of employment, especially in rural areas. It provides opportunities
for farmers, labourers, veterinarians, and various professionals engaged in
allied industries, contributing to rural development and livelihood
improvement.

Contribution of Dairy Farming Industry to the GDP of the country and to

economy in general:
The dairy sector plays a vital role in India's economy, contributing 5% to the
country's GDP. With a wide reach, it supports around 8 crore families across the
nation. This sector's significance lies in its multi-faceted impact. Not only does it
bolster the economy through production and trade, but it also acts as a lifeline for
millions, providing sustainable livelihoods. The dairy industry's integration into
rural households uplifts income levels, empowers women, and aids poverty
reduction. As a key driver of economic growth, its contributions extend beyond
financial numbers, touching lives and fostering socio-economic development at the
grassroots level.
The Ministry of Cooperation, National Dairy Development Board (NDDB), and
Department of Animal Husbandry, led by Prime Minister Narendra Modi, plan to
establish rural dairies in 2 lakh panchayats, aiming to boost the sector's growth rate
to 13.80%. The country's milk processing capacity is the world's highest at 126
million liters per day, benefiting farmers with increased income. Currently, 22% of
total milk production is processed, aiding farmers. India's dairy scenario has
evolved significantly; from producing 6 crore liters of milk daily in 1970, the
country is now a significant milk producer with 58 crore liters per day in 2022. This
growth has outpaced population increase, leading to higher per capita milk
consumption, reaching 427 grams, above the global average of 300 grams. Prime

12
Minister Modi's government is committed to the dairy sector's development, aiming
for India to become a leading milk exporter. A second White Revolution is being
pursued, emphasizing cooperative models for holistic development.

Major global players in the dairy industry:

• Nestlé: A Swiss multinational, Nestlé is one of the largest food and beverage
companies globally. It produces a wide range of dairy products, including
milk, yogurt, cheese, and ice cream, under various brand names.
• Amul: An Indian dairy cooperative, Amul is known for its success in
organizing farmers and producers to create a strong dairy network. It produces
a variety of dairy products and is particularly famous for its milk and butter.
• Arla Foods: A European dairy cooperative, Arla Foods is based in Denmark
and has a strong presence in various international markets. It produces a wide
range of dairy products, including milk, cheese, and butter.
• Lactalis: Lactalis Group, based in France, is one of the world's largest dairy
companies. It produces a wide variety of dairy products, including milk,
cheese, and butter, and has a strong presence in international markets.
• Sangam Dairy's: Sangam Dairy's is an effective organization of farmers and
producers, creating a robust dairy network. This cooperative model empowers
small farmers by providing access to technology, market insights, and
collective bargaining power. Renowned for milk and butter production,
Sangam Dairy has expanded into diverse dairy products.13
• Fonterra: Fonterra, based in New Zealand, is a global dairy cooperative. It is
a significant player in dairy exports, producing dairy ingredients, milk
powders, and butter. Fonterra's iconic brand Anchor is recognized worldwide.
• Yili Group: Yili Group is a major player in the Chinese dairy industry. It
produces a wide range of dairy products such as milk, yogurt, and ice cream.
The company focuses on quality and innovation and aims to become a global
leader in the dairy sector.
• Muller Group: Muller Group, based in Germany, produces dairy products
such as yogurt, milk-based drinks, and desserts. It operates in Europe and the
UK, and its dairy brands include Muller Yogurt and Muller Corner.

13
Role of Central and State government as regards to dairy sector:
The Central and State governments in India play pivotal roles in supporting and
regulating the dairy sector to ensure its growth, sustainability, and benefits to both
farmers and consumers. Their roles encompass various aspects, including policy
formulation, infrastructure development, quality assurance, and market support.
• Research and Training Institutes: Governments establish research
institutions and training centers for dairy professionals. These institutions
contribute to skill development, knowledge sharing, and the adoption of best
practices across the sector.
• Research and Development: Both levels of government allocate resources
for research and development in the dairy sector. This includes
advancements in animal genetics, nutrition, veterinary care, and technology
adoption, leading to improved productivity and quality.
• Infrastructure Development: Governments invest in creating dairy
infrastructure, such as milk collection centers, chilling plants, processing
units, and storage facilities. This ensures efficient milk procurement,
minimizes wastage, and supports farmers' access to markets.
• Financial Support: Governments provide financial assistance to dairy
cooperatives and farmers. This could include subsidies for fodder, feed,
equipment, and infrastructure development, making dairy farming more
economically viable.
• Extension Services: Both levels of government offer extension services to
educate farmers about modern farming practices, animal health, and dairy
management techniques. These services help enhance productivity and
efficiency.
• Market Support: Governments work to establish linkages between farmers
and markets by facilitating fair pricing mechanisms, reducing middlemen.
exploitation, and promoting value-added products. They also support
marketing initiatives to increase the demand for dairy products.
• Research and Training Institutes: Governments establish R & D centers
for dairy professionals. These institutions contribute to skill development,
knowledge sharing, and the adoption of best practices across the sector.

14
Production, Distribution, and Consumption Patterns in the Dairy Industry:
The dairy industry in India is a cornerstone of its agricultural landscape,
contributing significantly to the country's economy and rural livelihoods. With a
diverse array of dairy animals including cows, buffaloes, and goats, India holds the
distinction of being the world's largest milk producer. This vibrant industry
encompasses a spectrum of activities, from milk collection and processing to the
distribution of a wide range of dairy products.
• Production: India's dairy production involves a blend of small-scale and
large- scale operations, with farmers spread across rural and peri-urban
regions. The production process begins with milking and extends to the
creation of a diverse array of products. Notably, states like Uttar Pradesh,
Rajasthan, and Gujarat are pivotal in this sector's success. Dairy animals
are crucial contributors, and India has harnessed its extensive cattle
population to produce milk that caters to diverse consumption habits.
• Distribution: The distribution of dairy products in India is a complex web
that involves a mix of traditional and modern channels. Cooperative
societies, exemplified by the renowned Amul model, play an instrumental
role in collecting milk from farmers. This milk is then transported to
processing centers, where it's converted into various products like milk,
butter, cheese, and yogurt. These products reach consumers through an
extensive network of outlets, including local grocery stores, cooperative
shops, urban supermarkets, and more recently, online platforms.
• Consumption Patterns: Dairy consumption in India is deeply ingrained in
its culture and diet. Milk serves as a staple, consumed in various forms such
as tea, coffee, and traditional sweets. Dairy products like yogurt, paneer,
ghee, and buttermilk are integral components of daily meals. Consumption
preferences vary across regions, with urban centers demonstrating higher
demand for packaged and processed dairy products. In rural areas, fresh
milk from local sources remains a primary choice.

15
Challenges and contemporary issues related to the dairy industry
in terms of Indian economy:
The dairy industry plays a significant role in the Indian economy as it contributes
to rural livelihoods, food security, and overall economic growth. However, it also
faces several challenges and contemporary issues that impact its sustainability and
development. Here are some of the key challenges and issues related to the Indian
dairy industry:
• Low Productivity and Technology Adoption: Many small-scale dairy
farmers in India still follow traditional methods of cattle rearing and milk
production. This leads to low productivity and inefficient resource
utilization. Lack of access to modern technologies, breeding techniques,
and quality feed hamper the growth potential of the sector.
• Quality and Safety Concerns: Ensuring consistent quality and safety
standards in milk production is a significant challenge. Contamination,
adulteration, and lack of proper hygiene practices can lead to health risks
for consumers. Maintaining and enforcing quality standards throughout the
supply chain is essential.
• Market Fragmentation: The Indian dairy industry is highly fragmented,
with a large number of small-scale farmers and cooperatives. This
fragmentation makes it difficult to implement cohesive strategies for
improved production, processing, and marketing. Lack of economies of
scale can hinder efficient operations.
• Infrastructure and Cold Chain: Adequate infrastructure for milk
collection, storage, and transportation is crucial for minimizing spoilage
and maintaining quality. The lack of a robust cold chain infrastructure can
result in significant post-harvest losses.
• Price Fluctuations: Milk prices in India can be volatile due to supply-
demand imbalances, seasonal variations, and external factors like changes
in feed costs. This makes it challenging for farmers to stabilize their income
and plan for the long term.
• Climate Change and Environmental Impact: Climate change poses a
threat to dairy farming through its impact on feed availability, water
resources, and animal health. Additionally, the environmental footprint of

16
the dairy industry, including methane emissions from cattle, contributes to
sustainability concerns.
• Access to Finance and Credit: Many small-scale dairy farmers struggle to
access formal credit and financial services, limiting their ability to invest in
modern farming practices, technology, and infrastructure upgrades.
• Value Addition and Processing: A significant portion of India's milk
production is consumed in the form of fresh milk, leaving limited scope for
value-added products like dairy-based processed foods and beverages.
Developing efficient processing and marketing systems for value-added
products is a challenge.
• Supply Chain Efficiency: Efficient milk collection and transportation
systems are essential to prevent spoilage and maintain quality. However,
inadequate transportation networks, especially in rural areas, can lead to
losses and affect the overall supply chain.
• Regulatory Framework: The dairy industry is subject to various
regulations related to quality, safety, labelling, and packaging. Adhering to
these regulations can be a challenge, particularly for small-scale farmers
and processors who might lack awareness and resources.
• Sustainable Practices: As the demand for dairy products continues to
grow, there's a need to balance production expansion with environmental
sustainability. Promoting sustainable farming practices, waste
management, and resource-efficient production methods is crucial.
• Shift in Consumer Preferences: Changing consumer preferences, driven
by health and ethical considerations, have led to an increasing demand for
plant based dairy alternatives. This poses a challenge for traditional dairy
producers to adapt and innovate to meet evolving consumer needs.
• Value Addition and Branding: Enhancing value addition through product
diversification, branding, and marketing is crucial to compete in a
competitive market and capture consumer loyalty.

17
Internal and external factors majorly influencing the selected
industry growth:
The growth of the dairy industry in India is influenced by a combination of internal
and external factors. These factors shape the industry's trajectory and can impact its
performance, development, and sustainability. The major internal and external
factors influencing the growth of the Indian dairy industry:20
a) Internal Factors:
1. Cooperative Movement: The cooperative model, as exemplified by Amul
and other dairy cooperatives, has been a significant driver of the industry's
growth. Cooperative organizations have empowered small-scale dairy
farmers by providing them with collective bargaining power, access to
markets, and support for technology adoption.
2. Government Policies and Support: Government policies related to
agriculture, rural development, and food security play a crucial role.
Subsidies, financial assistance, and infrastructure development initiatives
help boost dairy production and distribution.
3. Technological Adoption: The adoption of modern technologies, such as
improved breeding practices, veterinary care, and mechanization, can
enhance milk yields and overall productivity.
4. Quality Assurance and Certification: Efforts to ensure quality and safety
standards across the dairy supply chain are important for consumer trust and
market expansion. Adoption of quality assurance practices and certifications
can lead to increased market access.
5. Consumer Demand and Preferences: Changing consumer preferences for
dairy products, including value-added and health-focused offerings, can
drive innovation and diversification in the industry.
6. Entrepreneurship and Investment: The involvement of private players,
entrepreneurs, and investors in the dairy sector can lead to increased
investment, technological advancements, and improved supply chain
infrastructure.
7. Research and Development: Ongoing research in animal genetics,
nutrition, and disease management can result in improved cattle breeds, feed
formulations, and health practices, leading to enhanced productivity.

18
b) External Factors:
1. Population Growth: The growing population in India drives an increase in
demand for dairy products, including milk and processed dairy foods.
2. Urbanization and Lifestyle Changes: As more people move to urban
areas, there is a shift in dietary patterns and consumption habits, leading to
higher demand for packaged and convenient dairy products.
3. Income Levels: Rising income levels and disposable incomes among
consumers enable them to afford more diverse and value-added dairy
products.
4. Climate Change and Environmental Pressures: Environmental concerns
and climate change impacts can influence dairy farming practices, feed
availability, and sustainability considerations.
5. Global Trade and Competition: The Indian dairy industry is not insulated
from global trade dynamics. Imports and exports of dairy products, along
with international price trends, can influence domestic production and
consumption.
6. Technology Transfer and Knowledge Sharing: The exchange of
technological know-how and best practices from global players can help
upgrade the Indian dairy sector's efficiency and productivity.
7. Regulatory Changes and Trade Agreements: Changes in regulations,
trade agreements, and quality standards can impact market access and
competitiveness.
8. Health and Nutrition Awareness: Increasing awareness about the
nutritional benefits of dairy products can lead to greater consumption and
demand for dairy items.

19
CHAPTER - 2
RESEARCH DESIGN

20
2.1 REVIEW OF LITERATURE

Jayasree Joshi (2024)

As the global population expands and urbanization continues, the demand for dairy
products is on the rise, leading to increased generation of by-products within the
industry. Among these by-products are whey, skim milk, and ghee residue, each
containing significant amounts of both organic and inorganic components, as well
as elevated levels of COD and BOD. Improper disposal of these by-products poses
environmental risks, necessitating their conversion into value-added products.
Whey, particularly abundant in the cheese production process, stands out as a
valuable source of both macronutrients and micronutrients. Through appropriate
processing methods, whey can be efficiently utilized to produce high-quality protein
concentrates, meeting the growing demand for value-added dairy products.

Narnaware(2022):
The study by Narnaware GN, Devendra Kurrey, and Shinde NW focuses on
significant traditional dairy products in India, including Dahi, Paneer, and Pedha. It
emphasizes the economic analysis of these products to optimize manufacturing
costs and maintain competitiveness in the market. By calculating costs at the milk
producer's level, the study aims to ensure optimal pricing that benefits consumers.

Koduru (2021)
The research paper by Kiran Koduru and Dr. T Sree Krishna investigates consumer
perceptions and preferences for dairy products in Andhra Pradesh's Guntur district.
It examines factors affecting brand preference and satisfaction with different dairy
items. Using a descriptive research design, it combines primary data from
interviews and secondary data from publications. Sampling 160 respondents
through Selective Random sampling, it evaluates four dairy brands—Vijaya,
Heritage, Sangam, and Dodla—using a 5-point Likert scale. Statistical tools include
frequency, percentage, mean, standard deviation, Chi-square, and Kruskal Wallis
tests. Results suggest age influences preferences, while monthly income doesn't
significantly affect satisfaction levels with dairy products.

21
Gottumukkala (2021)
Dr. Malathi Gottumukkala's study on Total Quality Management (TQM) practices
resonates with Sangam Dairy's commitment to excellence in the dairy sector. The
identified Critical Success Factors (CSFs) for TQM implementation establishing a
quality culture, involving employees, operational improvement, customer focus,
and quality assessment—align with Sangam Dairy's core values. By benchmarking
against industry leader Amul, Sangam Dairy could gain insights to enhance its own
quality practices. Utilizing similar methodologies, Sangam Dairy could assess the
gap between its TQM implementation and that of Amul. This study underscores
Sangam Dairy's potential to further elevate its TQM practices, aligning with its
pursuit of operational excellence and meeting evolving customer expectations.

SIMON (2021)
The study by MIRIAM KALPANA SIMON and V. PRAKASH addresses the
evaluation of peer organizations' performance using Data Envelopment Analysis
(DEA). They apply DEA models like CCR and BCC to assess technical efficiency
in Indian dairy product manufacturing units. The research aims to offer insights into
operational effectiveness and
productivity within this specific industry context.

Parida (2021)
The study underscores India's status as the world's foremost milk producer. With
dairy contributing around 67% of the livestock sector's value, it significantly
impacts rural households, supporting the livelihoods of nearly 50% of India's rural
population. This highlights the substantial role of milk and dairy products in India's
agricultural landscape and the significant impact they have on rural communities.

Vyas (2020)
Vyas and Summarwar's study on assessing milk quality and hygiene correlates with
Sangam Dairy's commitment to delivering top-tier dairy products. By following a
similar methodology, Sangam Dairy could enhance its own quality assurance
measures. Analysing bacterial contamination levels as in the study would enable
Sangam Dairy to identify potential issues and implement strategies to uphold milk

22
hygiene standards. This is in line with Sangam Dairy's pledge to provide safe and
pristine milk products. Utilizing their laboratory facilities, Sangam Dairy could
ensure rigorous testing, reflecting their dedication to maintaining the highest quality
across their product range and supply areas.

Hemanth (2020)
The COVID-19 pandemic, the Indian dairy industry has encountered disruptions
despite strong demand for dairy products. Shifts from wholesale to retail markets
due to restaurant and school closures have posed logistical challenges for processing
plants. Trucking shortages and halted exports have exacerbated issues. This
underscores broader problems in the global food supply chain, particularly affecting
dairy due to its perishable nature.
E-commerce and vending machines offer some relief. In this context, a survey by
Hemanth, M. V., Kumar, P. D., Reddy, B. S. P. V., Patra, A. S& Reddy, A. S. aims
to assess consumer perceptions regarding the use of vending machines for milk
products

Senthilkumar (2020)
The study focuses on customer purchasing decisions for prominent dairy brands in
India. It highlights the contrasting consumption patterns between traditional and
Westernized products. The research measures product knowledge, purchase factors,
and preferred information sources. By employing statistical tools such as ANOVA
and Factor Analysis, the study offers insights into influential factors driving dairy
product purchasing decisions, aiding businesses in understanding consumer
expectations for leading brands

Sharma (2020)
Using the Policy Analysis Matrix, the research finds India's dairy industry efficient
despite trade restrictions. However, it highlights the need to protect against unfair
competition from developed countries, emphasizing the importance of reduced
trade-distorting support from these nations to ensure India's global competitiveness.

23
Mor (2019)
The study emphasizes the importance of accurate market demand predictions for
effective marketing and production planning in the dairy industry. The research
compares various forecasting models, such as moving average, regression, multiple
regression, and Holt–Winters, in terms of accuracy. It applies these models to a
perishable dairy product time series in the milk processing industry, employing
error-measuring techniques to identify the most accurate model. This approach
assists the dairy sector in achieving high order fill rates, efficient inventory
management, and increased profits. The model selection process takes into account
factors like data availability and the specific context of forecasting.

2.2 STATEMENT OF THE PROBLEM

The project entitled "A study on Sustainable Practices & Operations at Sangam
Dairy, Guntur" endeavours to tackle various critical challenges within the dairy
industry. One significant issue lies in the inadequate implementation of eco-friendly
methods within Sangam Dairy's operations, posing a threat to environmental
preservation efforts. Furthermore, ineffective waste management practices
contribute to environmental degradation and pose risks to local ecosystems. The
dairy also faces challenges related to energy sustainability, with limited adoption of
renewable sources and inefficient energy consumption patterns jeopardizing its
long-term viability. Balancing economic feasibility with sustainable practices
presents a notable challenge, particularly concerning upfront investment costs.
Compliance with evolving environmental regulations while maintaining
productivity demands innovative and cost-effective solutions. Coordinating
sustainable practices throughout the dairy supply chain, from farm to processing
facilities, poses logistical complexities. Engaging stakeholders, including farmers,
employees, and communities, is imperative for the successful adoption of
sustainable practices. Moreover, meeting consumer preferences for eco-friendly
products necessitates embracing sustainable methods to maintain market
competitiveness

24
2.3 NEED FOR STUDY

This study is essential to understand how Sangam Dairy integrates sustainable

practices in its operations, focusing on waste management, energy efficiency, water
conservation, and sustainable sourcing. It highlights the importance of these efforts
in reducing environmental impact and provides a model for other dairies to follow.

2.4 Objectives of the study

The main objectives of this study are :

i. To assess consumer perceptions and preferences regarding Sangam Milk's
products
ii. To analyse the effectiveness of Sangam Milk Producer Company Ltd.’s
current marketing and communication strategies in conveying the value
proposition to the target audience.
iii. To examine the zero-waste management process of their products in
Sangam Dairy
iv. To explore their strategies of their sustainability in the market of Andhra
Pradesh and Telangana
2.5 Scope of the Study

This study centers on Sangam Dairy, located in Guntur, Andhra Pradesh, India,
providing a detailed examination of the sustainable practices and operations
employed there. By focusing on this specific dairy, the research aims to offer
comprehensive insights that could be beneficial for other dairies in similar regions.
Sangam Dairy serves as a case study for understanding how sustainable practices
can be implemented and optimized within the local context. This focus allows for
an in-depth analysis of the specific environmental, economic, and social factors
influencing sustainability in dairy farming in this region.

25
Beyond the primary focus on Sangam Dairy, the study also considers the broader
regional context of the dairy industry in Andhra Pradesh and South India. This
includes evaluating how regional policies, environmental conditions, and market
dynamics impact the implementation and effectiveness of sustainable practices. By
examining these regional influences, the study aims to provide a more holistic
understanding of the challenges and opportunities faced by dairies in adopting
sustainable operations. This regional perspective is crucial for identifying best
practices that can be replicated or adapted in other parts of the region or in similar
geographical contexts.

2.6 Operational Definitions of the Concept

i. Sustainable Practices: Methods and strategies employed by Sangam Dairy

to balance environmental protection, economic viability, and social
responsibility. Environmental sustainability, economic sustainability, and
social sustainability.

ii. Environmental Sustainability: Efforts to reduce the ecological footprint

of dairy operations through practices that conserve natural resources and
minimize pollution. Waste management, energy use, water conservation,
and reduction of greenhouse gas emissions.

iii. Waste Management: Processes involved in the collection, transportation,

processing, recycling, and disposal of waste materials produced by the dairy.
Composting, biogas production, effluent treatment, and waste-to-energy
initiatives.

iv. Energy Use: Consumption of energy resources in dairy operations, with a

focus on reducing energy consumption and increasing the use of renewable
energy sources. Renewable energy integration, energy efficiency, and
monitoring of energy consumption.

v. Water Conservation: Strategies and technologies employed to reduce

water usage, recycle water, and ensure sustainable water management in

26
dairy operations. Water recycling, rainwater harvesting, efficient irrigation
systems, and monitoring of water usage.

vi. Economic Sustainability: Practices that improve the economic viability of

dairy operations, ensuring long-term profitability and cost-effectiveness.
Cost efficiency, revenue generation, financial planning, and investment in
sustainable technologies.

vii. Social Responsibility: Initiatives that promote the well-being of

employees, support local communities, and ensure ethical treatment of all
stakeholders. Fair labor practices, community engagement, and corporate
social responsibility (CSR) activities.

viii. Precision Dairy Farming: Use of advanced technologies to monitor and

manage various aspects of dairy farming with high accuracy to optimize
productivity and animal welfare. Sensors and wearables, automated milking
systems, and data analytics for herd management.

ix. Genomic Selection: Breeding method that uses DNA markers to predict
the genetic potential of dairy cattle for traits such as milk production and
disease resistance. Genetic testing, breeding programs, and selection of
animals with optimal genetic traits.

x. Economic Viability: Ability of Sangam Dairy to maintain profitable

operations and sustain its business over the long term. Effective cost
management, revenue generation, investment in sustainable practices, and
long-term financial planning.

2.7 HYPOTHESIS OF THE STUDY

Null Hypothesis (H0): There is no significant practices and operations to sustain

in the dairy industry at Sangam Dairy
Alternative Hypothesis (H1): There is significant practices and operations to
sustain in the dairy industry at Sangam Dairy

27
2.8 Methodology
A study on sustainable practices and operations at Sangam Dairy is a mixed-method
approach combining both qualitative and quantitative techniques. Initially,
qualitative methods such as Survey will be used to gather insights from key
administrators, and customers regarding their experiences, challenges, and
expectations with products of Sangam Dairy. The survey data will be analysed
using descriptive statistics to understand the company operations and sustainability
in market. Additionally, quantitative analysis techniques such as Hypothetical
analysis by using Chi Square test is employed to explore the relationships between
variables such as quality control, availability of products and customer satisfaction.

2.9 Data Collection

Data can be collected using two methods. Below are the two methods used for data
collection.
• Primary Data
• Secondary Data

PRIMARY DATA : Primary data will be collected from the selected respondents
through interaction with the consumers ,vendors, distributors through a couple of
instructed interviews. Questionnaire is the main aspects for collection of primary
data.

SECONDARY DATA : Data collected through the annual reports, manuals, and
other relevant documents produced by the firm, text books, journal, magazines,
newspapers, and collection of data through the literature provided by the firm, and
data collected from the internet were also constitute the secondary data sources.

2.10 Sampling Design

Sampling Plan: The research aims to assess retailer perceptions towards Sangam
Dairy's brand and service. The target population includes retailers in the town of
Guntur and its neighbourhoods who are associated with selling Sangam Milk
Products. Hypothesis is analysed by using Chi-Square test whereas the survey is
taken from the consumers of Sangam Dairy products
Sampling Method: The study utilizes a non-probability convenience sampling
technique due to practical constraints. Who sell Sangam Milk Products in Guntur

28
and surrounding areas are selected based on accessibility and willingness to
participate. This method is chosen for its feasibility and convenience in data
collection.
Sampling Unit: Consumers of Sangam Dairy products (The sampling unit is
individual retailers who are part of the sampling frame, actively involved in selling
Sangam Milk Products in Guntur and nearby localities.)
Sampling size: Study comprises of 100 people.

2.11 Plan of Analysis

This study utilizes a quantitative approach, employing survey to collect data from a
sample of 50 respondents in Guntur. The sampling method employed will be Non-
Probability Convenience Sampling (This allows for the selection of respondents
who are readily available and willing to participate). The collected data will be
analysed using appropriate statistical and thematic analysis techniques, particularly
the Chi-Square test is used to analyse the hypothesis. The primary data source will
be the responses obtained from the questionnaire administered to the selected
respondents, while secondary data will be gathered from annual reports, manuals,
academic literature, and online sources. Few methods used to analysis the data
collected are:
• SWOT analysis
• Porter`s five Force Model
• Chi-Square test

2.12 Limitations of the study

The study has been carried out with the following limitations.

i. Availability of data, it may not disclose the fair and true statements
ii. Since the study has been conducted with selected respondents, the results
may not be accurate.
iii. The questionnaire method used for collecting the data in this study has own
limitations which means the responses from the respondents may not be true
and fair.

29
iv. Due to time constraints, the survey was limited to the Guntur region
exclusively.
v. The study reveals the results based on the sample size.
vi. The sample survey of the marketplaces in the city of Guntur serves as the
sole foundation for this research. It's possible that other regions of India will
produce different facts and numbers. However, I have provided my opinion
in light of my observations from a survey that was carried out in the city of
Guntur. Therefore, these observations may contain inaccuracies.

30
CHAPTER 3
COMPANY PROFILE

31
3.1 COMPANY HISTORY/INCEPTIONS

The SANGAM DAIRY FOODS, it is established on 1976 march at Vadlamudi at

Guntur. It is a milk manufacturing or milk product company. This company major
role is to supply or producing the mile product to the customer with good quality
and quantity of products. It produces the milk till establishing the factory without
any remark. It functions with good brand and efficient work. The machinery
technology is bought or bring from Gujarat and Maharashtra. The worth of the
machinery is Rs: 60,00,000/- (sixty lakhs). The company occupying the space
within five acres. The value of the asset is (land) is 1.40 crores. It brings the loan
from the banks at Rs; 40, 00,000/- (forty lakhs). The Guntur District Milk Producers'
Co-operative union was registered on 23 February 1977 under the Andhra Pradesh
co-operative societies act 1964 with register number 836 DD, with main objective
of enhancing milk production and procurement in the district. In the beginning 85
village dairy co-operative societies were affiliated to the union with an intention of
procuring milk from the societies. Besides procuring milk the union also manages
the Dairy plant and markets milk and milk products.

The cooperative organization covering the milk producers based on a 3-tier system.
At the bottom of the network is the primary milk producers' society organized in
each village. For getting the society registered by the co-operative registrar, it has
to 37 satisfy the criteria of economic viability and feasibility of transportation,
which required an uninterrupted supply of milk of at least hundred liters per day on
average during the preceding six months. Each primary milk producers' co-
operative society will elect five directors who in their turn elect the President for a
term of three years. Each society appoints a paid secretary to maintain its accounts,
supervise milk collection, testing of milk procured and render other services.

32
The bigger societies appoint milk testers to look after the fat content of the milk. At
the middle of the 3-tier network is the district co-operative union of milk producers.
Presidents of all the primary societies are its members. The constitution of district
union provides for an executive committee of 12 directors, elected by the members
and five nominees of the government. The board of directors elects the chairman of
the district union.

At the upper level of the 3-tier network is Andhra Pradesh Dairy Development Co-
operative federation, which is the apex body at the state level. The organization of
this top-level body consists of the members of the cooperative institutions engaged
in dairy development in the state. It acts as a chief policy-making body and
marketing agency for the entire state. The installed capacity of the plant has been
2.25 lakh liter of milk per day. The dairy was established at a total cost of Rs. 2,79
lakhs. In 1981 a cattle feed plant was started with a production capacity of 100 MT
of cattle feed per day at a total cost of Rs. 3 crores. In 1985, Aseptic Milk Packaging
station, popularly known as tetra pack unit was established at a total cost of Rs. 2.5
crores.
Organizational Hierarchy of the company:

Board of Directors:

• K. Rajan Babu – Chairman

• Narendra Kumar Dhulipalla – Director
• Venkatakrishna Prasad Narra – Director
• Valiveti Dharma Rao - Director
• Gogineni Dhanunjaya Rao - Director
• N. Venkata Krishna Prasad – Director
• Sambi Reddy - Director
• Nageswara Rao - Director
• Popuri Seshagiri Kumari - Director
Management:

• GOPALAKRISHNA P - Managing Director

• SAMBA SIVA RAO PEDDI - Chief Financial Officer (CFO)
• BRAHMAIAH MUTHINENI - General Manager, Operations

33
• VENKATESWARA RAO BN - Senior Manager, Engineering
• NAGESWARA RAO S - Senior Manager, Production
• SARATH BABU BODALA - Senior Manager, Operations
• SURESH BABU KODATI - Senior Manager, Quality Assurance

3.2 Vision, Mission and Objectives:

Vision: To be the best co-operative transforming according to time needs and
challenges, following the best practices of clean milk production from farmer to
dairy and providing qualitative services to farmers, Quality is their motto. Utilizing
advanced technologies and continuous research for manufacturing of products,
Mission: Ensuring the prosperity of milk producers through sustainable dairying,
transforming the spirit of co-operative principles in to reality and assuring quality
of products by utilizing latest technologies and continuous research for product
development.
Objectives:
• Quality Milk Production: Ensure the production of high-quality and safe
milk by implementing best practices in cattle management, nutrition, and
hygiene.
• Sustainable Farming Practices: Promote sustainable farming techniques
that prioritize animal welfare, resource conservation, and reduced
environmental impact.
• Farmers' Welfare: Support dairy farmers' livelihoods by offering fair
prices for their milk, providing training in modern farming methods, and
enhancing them overall well-being.
• Product Diversification: Expand product offerings beyond raw milk to
include value-added dairy products like yogurt, cheese, butter, and other
processed items.
• Market Expansion: Increase market penetration and geographic reach by
establishing strong distribution networks and entering new markets.
• Technological Advancement: Invest in advanced technologies for milk
collection, processing, and packaging to improve efficiency, product
quality, and shelf life.

34
• Customer Satisfaction: Prioritize customer satisfaction by consistently
delivering safe, nutritious, and high-quality dairy products that meet
consumer preferences.
• Research and Innovation: Invest in research and development to create
innovative dairy products, improve production methods, and stay
competitive in a dynamic market.
• Employee Development: Focus on training, skill development, and
providing a conducive work environment to attract and retain talented
employees.
• Community Engagement: Engage with local communities through
initiatives such as farmer training programs, health and nutrition awareness
campaigns, and social responsibility projects.
• Financial Sustainability: Maintain financial stability and profitability
through efficient resource management, cost control, and effective business
strategies.
• Compliance and Quality Standards: Adhere to industry regulations,
safety standards, and quality certifications to ensure consumer trust and
product integrity.

3.3 Product and Service Profile:

3.3.1 Dairy Products:
a) Milk: Sangam Dairy offers a diverse range of milk options to cater to
different preferences. This includes whole milk for those who prefer the
natural taste and texture, skim milk for individuals watching their fat intake,
and low-fat milk for a compromise between richness and reduced fat
content.
b) Yogurt: The yogurt selection at Sangam Dairy includes an array of choices
to suit various tastes. This includes plain yogurt for versatile use in cooking
and as a base for toppings, fruit-infused yogurt in flavours like strawberry,
mango, and blueberry for a delightful snack, and Greek yogurt for those
seeking a thicker, protein-rich option.
c) Cheese: Sangam Dairy's cheese offerings span a spectrum of flavours and
textures. From the mild and versatile cheddar to the stretchy and melty

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mozzarella, customers can find cheeses suitable for snacking, cooking, and
grating over dishes.
d) Butter: In addition to traditional butter, Sangam Dairy provides flavoured
butter options to elevate culinary experiences. Garlic-infused butter, herb
butter, and even sweet cinnamon butter are available for consumers looking
to enhance the taste of their meals or baked goods.
e) Cream: Sangam Dairy's cream range covers various needs in the kitchen.
Whipping cream is perfect for creating light and airy desserts, heavy cream
adds richness to sauces and soups, and sour cream is a tangy addition to both
savoury and sweet dishes.
f) Ice Cream: A highlight of Sangam Dairy's product lineup, their ice cream
offerings include an assortment of flavours to satisfy every palate. From
classics like chocolate and vanilla to innovative combinations like cookie
dough caramel swirl, customers can enjoy a wide variety of frozen treats.
g) Milk Powder: Sangam Dairy's instant milk powder provides convenience
and versatility. It can be used to prepare milk quickly and efficiently,
making it a practical option for cooking, baking, or even for those times
when fresh milk isn't readily available.
h) Malai Laddu: Sangam Dairy's malai laddu is a luxurious treat that
showcases their expertise in working with dairy cream. These laddus are
rich, melt-in-your-mouth spheres of indulgence, a perfect way to experience
the creamy side of Sangam Dairy's offerings.
i) Kalakand: Sangam Dairy's kalakand, a popular Indian milk-based sweet, is
a blend of traditional craftsmanship and modern quality. The sweet's soft
texture and sweet, milky taste reflect Sangam Dairy's dedication to crafting
sweets that capture the essence of Indian cuisine.
j) Kaju Burfi: Sangam Dairy's kaju burfi is a premium treat made with
cashew nuts and Sangam Dairy's dairy products. The creamy texture and
nutty flavour showcase Sangam Dairy's focus on quality ingredients and
skilled preparation.
k) Badaam Burfi: Sangam Dairy's badaam burfi, made with almonds and
enriched with dairy goodness, offers a delightful combination of flavors and
textures. These burfis are a manifestation of Sangam Dairy's commitment to
providing sweets that cater to various tastes.

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l) Doodh Pada: Sangam Dairy's doodh pada, a milk-based sweet, is a
testament to their mastery over dairy products. With a smooth and satisfying
texture, these sweets embody Sangam Dairy's dedication to delivering
authentic Indian desserts.
m) Gulab Jamun: Sangam Dairy's gulab jamun, a classic Indian sweet,
continues to uphold the company's reputation for quality. These syrup
soaked dough balls are made with precision and care, embodying Sangam
Dairy's commitment to providing time-honored treats.
n) Milk Pudding: Sangam Dairy's milk pudding is a comforting dessert made
using their dairy products. The pudding's creamy consistency and sweet
flavor reflect Sangam Dairy's expertise in transforming milk into delightful
creations.

3.3.2 Value-Added Products:

a) Flavoured Milk: Sangam Dairy's ready-to-drink flavoured milk options
offer a convenient and delicious on-the-go solution. Flavours might include
chocolate, strawberry, and coffee, appealing to both children and adults.
b) Lassi: This traditional Indian yoghurt-based drink is a favourite among
consumers. Sangam Dairy offers a variety of lassi flavours, from the classic
sweet lassi to the savory and spiced version.
c) Paneer: As a staple in Indian cuisine, paneer is a fresh and versatile cheese
used in dishes like curries and grilled kebabs. Sangam Dairy ensures the
quality and freshness of its paneer, making it a reliable choice for cooking
at home.
d) Ghee: Sangam Dairy's ghee is carefully prepared and known for its rich
flavour and aroma. It is a key ingredient in Indian cooking and is also used
in religious rituals and ceremonies.
e) Desserts: Sangam Dairy provides a selection of traditional Indian sweets
and desserts, offering customers the opportunity to enjoy authentic flavours
without the need for elaborate preparation.

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3.3.3 Bakery Products:
a) Cup Cake: Sangam Dairy offers delectable cupcakes made using their high-
quality dairy products. These cupcakes are not only soft and flavourful but
also reflect the commitment to using premium ingredients. Customers can
enjoy a variety of flavours, from classic vanilla to rich chocolate, each
adorned with delicious toppings.
b) Sweet Bread: Sangam Dairy's sweet bread selection brings together the
goodness of freshly baked bread and a touch of sweetness. The bread is
enriched with Sangam Dairy's dairy products, resulting in a moist and
flavourful treat that can be enjoyed as is or toasted for added warmth and
texture.
c) Milk Rusk: Sangam Dairy's milk rusks offer a crunchy and delightful snack
that pairs perfectly with tea, coffee, or milk. These twice-baked treats are
made using milk-infused dough, resulting in a unique flavor and texture
that's both satisfying and nostalgic.
d) Milk Bread: Sangam Dairy's milk bread is a staple in many households due
to its softness and versatility. Made with care and enriched with Sangam
Dairy's dairy products, this bread is perfect for sandwiches, toasts, and more.
e) Cream Bread: Sangam Dairy's cream bread is a testament to the company's
commitment to quality and taste. This bread has a rich and tender crumb,
thanks to the inclusion of dairy cream, making it an excellent choice for
those who appreciate a touch of indulgence in their bread.
f) Brown Bread: Sangam Dairy's brown bread offers a healthier option for
those looking to incorporate whole grains into their diet. Made with the
goodness of whole wheat flour and Sangam Dairy's dairy products, this
bread is a wholesome choice for sandwiches and toasts.
g) Bar Cake: Sangam Dairy's bar cakes are a delightful treat for any occasion.
Whether it's a classic pound cake or a creatively flavoured creation, these
cakes are made using Sangam Dairy's dairy products to ensure a moist and
flavourful experience with each bite.

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3.3.4 Health and Nutrition:
a) Fortified Products: Sangam Dairy acknowledges the importance of
nutrition and offers fortified milk products enriched with essential vitamins
and minerals, catering to consumers who seek additional health benefits.
b) Probiotic Yogurt: With a focus on gut health, Sangam Dairy introduces
probiotic yogurt containing live cultures that contribute to a healthy
digestive system.
c) Low-Fat Varieties: Recognizing the demand for healthier options, Sangam
Dairy provides low-fat and skim milk products that align with the
preferences of health-conscious consumers.

3.3.5 Services:
a) Home Delivery: Sangam Dairy offers the convenience of home delivery,
ensuring that customers can access their favorite dairy products without
leaving their homes.
b) Bulk Orders: Institutions such as schools, hospitals, and restaurants can
place bulk orders with Sangam Dairy to meet their high-volume
requirements.
c) Educational Workshops: Beyond products, Sangam Dairy is committed to
community well-being. Through workshops, it educates about dairy
benefits, nutrition, and farming practices, building trust and loyalty.
d) Cattle Insurance: By offering cattle insurance with low premiums, Sangam
Dairy supports farmers' financial security and ensures a stable milk supply,
reflecting its holistic industry vision.
e) Training Programs: Sangam Dairy's training centre uplifts its workforce's
skills. From veterinary care to milk production, these programs showcase
its dedication to quality and professionalism.

3.3.6 Sustainability and Quality:

a) Organic Products: Sangam Dairy acknowledges the growing interest in
organic products and offers a selection of organic dairy items for
environmentally conscious consumers.

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b) Quality Assurance: Sangam Dairy maintains rigorous quality control
measures to ensure that all their products meet the highest standards of
safety and quality.
c) Animal Welfare: Sangam Dairy is committed to ethical practices in dairy
farming, emphasizing the welfare of the animals involved in the production
process.

3.4 Competitor profile and Analysis:

a) Heritage Dairy:
Heritage Dairy is a prominent dairy company known for its extensive range of dairy
products. With a legacy of providing quality products, Heritage Dairy has built a
strong reputation for reliability and taste. They offer a wide variety of traditional
and modern dairy items, catering to a diverse customer base. Heritage Dairy is
committed to maintaining high production standards and meeting consumer
expectations. Their products are widely available in local markets, making them a
familiar choice for consumers looking for a reliable source of dairy products.
b) Vishaka Dairy:
Vishaka Dairy is a dynamic player in the dairy industry, known for its innovative
approach to dairy product development. They have gained recogniti on for
introducing unique flavours and products that resonate with modern consumer
preferences. Vishaka Dairy often caters to changing tastes and trends in the market,
appealing to a younger demographic. Their emphasis on innovation and staying
ahead of the curve sets them apart as a brand that's not afraid to experiment and
explore new avenues in the dairy sector.
c) Nandini:
Nandini is a well-established dairy brand with a strong regional presence.
Originating from a cooperative movement, Nandini has a reputation for quality and
affordability. Their products are sourced from local farmers, contributing to the
livelihoods of the farming community. Nandini's focus on sustainability and
community engagement resonates with consumers who prioritize supporting local
initiatives. They have a wide range of dairy offerings and a deep-rooted connection
with the communities they serve.

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d) Amul:
Amul is a national dairy cooperative that has become synonymous with dairy
products in India. Known for its vast product portfolio, Amul offers everything from
milk to ice cream to cheese. Amul's widespread distribution network ensures that
their products are available in almost every corner of the country. They are known
for their iconic advertising campaigns and their commitment to providing quality
products at competitive prices. Amul's cooperative model and dedication to farmers'
welfare have contributed to their immense popularity and success.
Competitive Analysis: While Sangam Dairy's competitors have their unique
strengths and offerings, Sangam Dairy stands out by placing an emphasis on
community engagement, personalized experiences, and educational initiatives. By
offering workshops and focusing on transparent sourcing and ethical practices,
Sangam Dairy creates a strong connection with consumers who value not only the
taste and quality of dairy products but also the stories behind them. This approach
positions Sangam Dairy as a brand that respects tradition while embracing
innovation and sustainability.
3.5 Market Share
Sangam Milk Producer Company Limited is an unlisted private company
incorporated on 18 June, 2013. It is classified as a private limited company and is
located in Krishna, Andhra Pradesh. It's authorized share capital is INR 150.00 cr
and the total paid-up capital is INR 95.67 cr.

Sangam Milk Producer Company Limited's operating revenues range is Over

INR 500 cr for the financial year ending on 31 March, 2023. It's EBITDA has
decreased by -0.48 % over the previous year. At the same time, it's book net worth
has increased by 10.79 %.

Description: The company is engaged in production of milk and other milk related
products and services such as milk powder, butter, paneer, full cream milk, training
to farmers, paraveterinary services, homogenised standardized milk, toned milk etc.

Products & Services: Milk powder, butter, paneer, full cream milk, training to
farmers, paraveterinary services, homogenised standardized milk, toned milk etc.

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3.6 Milestones
• Establishment and Inception: Sangam Dairy is founded with a vision to
contribute to the dairy industry while empowering local farmers. This
milestone marks the beginning of its journey to provide high-quality dairy
products and support the rural economy.
• Geographic Expansion: The opening of new branches or outlets beyond the
original location showcases Sangam Dairy's growth ambitions. This
expansion allows the dairy to cater to diverse markets, adapting its strategies
to regional preferences.
• Introduction of New Products: The diversification of product offerings
demonstrates Sangam Dairy's commitment to staying relevant in a dynamic
market. By introducing a variety of dairy products, the dairy addresses
changing consumer preferences and enhances its potential for growth.
• Expansion of Distribution Network: The expansion of distribution channels
increases Sangam Dairy's accessibility to consumers. With more outlets and
points of sale, the dairy can serve a wider customer base and reinforce its
presence in the market.

Best Practices:
• Scholarships for Children: Through the Janasri Scheme in collaboration
with LIC, Sangam Dairy provides scholarships to the children of its
members. This initiative supports the educational aspirations of the next
generation, ensuring that they have opportunities to pursue higher education
and achieve their potential.
• Encouraging Dairy Farms: Sangam Dairy offers additional rates to farmers,
providing them with a financial incentive to maintain and grow their dairy
farms. This practice encourages farmers to continue their dairy operations,
contributing to the dairy industry's growth and sustainability.
• Support for Cow Rearers: The dairy acknowledges the important role of
cow rearers by covering their transportation and insurance costs. This
support not only reduces the financial burden on cow rearers but also
recognizes their contribution to the dairy's supply chain.

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• Subsidized Bull Procurement: Sangam Dairy promotes the development of
superior cattle breeds by procuring bulls from Haryana and providing them
to farmers at a 50 percent subsidy. This practice enhances the quality of
cattle, leading to increased milk productivity and improved breed
characteristics.
• Group and Cattle Insurance: In addition to scholarships, Sangam Dairy
extends benefits like group insurance and cattle insurance to its members.
This comprehensive approach safeguards the interests of members, their
families, and their livestock, enhancing their overall well-being and peace
of mind.
Challenges:
• Fluctuating Demand and Consumer Preferences: Sangam Dairy might be
affected by changing consumer preferences for dairy products, prompting
them to adapt their product portfolio to align with evolving dietary trends
and preferences.
• Price Volatility: Fluctuations in milk prices could impact Sangam Dairy's
profitability and pricing strategies, necessitating effective cost management
and supply chain optimization.
• Regulatory Compliance: The dairy industry is subject to strict food safety
regulations and labelling requirements, which can be complex and
challenging to navigate.
• Food Safety Standards: Dairy products are perishable and can be susceptible
to contamination, spoilage, and bacterial growth. Regulatory authorities set
strict standards for food safety to prevent the occurrence of foodborne
illnesses. Dairy companies like Sangam Dairy must ensure that their
production processes, storage, and transportation meet these stringent
requirements to minimize the risk of contamination.
• Competition and Innovation: The dairy industry faces competition not only
from traditional rivals but also from alternative sources of protein, like
plant-based and lab-grown alternatives.
• Regulatory Compliance: The dairy industry is subject to strict food safety
regulations and labelling requirements, which can be complex and
challenging to navigate.

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Future Plans
• Diversification of Product Portfolio: Sangam Dairy might consider
expanding its product range to include a wider variety of dairy products,
catering to changing consumer preferences and trends. This could include
introducing new flavours, formats, or healthier options.
• Sustainable Practices: In response to growing environmental awareness,
Sangam Dairy could focus on adopting more sustainable and eco-friendly
practices in dairy farming and production. This might involve reducing
water usage, minimizing waste, and exploring renewable energy sources.
• Digital Transformation: Embracing technology could be on Sangam Dairy's
radar. This might include implementing advanced dairy management
systems, improving supply chain visibility, and enhancing customer
engagement through digital platforms.
• Health and Wellness Offerings: As consumers continue to prioritize health
and wellness, Sangam Dairy might explore the development of dairy
products that align with specific dietary needs, such as low-fat, high-protein,
or lactose-free options.
• Global Market Expansion: Sangam Dairy could have plans to expand its
market presence beyond its current region, tapping into new domestic or
international markets and reaching a broader customer base.
• Value-Added Services: To enhance its relationships with dairy farmers and
consumers, Sangam Dairy might introduce value-added services such as
farmer training programs, customer loyalty initiatives, or educational
campaigns.
• Innovative Packaging: Innovative and sustainable packaging solutions could
be part of Sangam Dairy's future plans, catering to environmentally
conscious consumers and differentiating its products on the shelf.
• Strategic Partnerships: Collaborating with other players in the dairy
industry, suppliers, or research institutions could help Sangam Dairy access
new expertise, resources, and opportunities for growth.
• E-Commerce and Direct-to-Consumer Channels: In response to changing
shopping habits, Sangam Dairy might explore e-commerce channels and

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direct-to-consumer sales, allowing them to connect directly with consumers
and offer a convenient buying experience.

3.7 Corporate Social Responsibility

While specific CSR activities of Sangam Dairy may vary based on its priorities,
resources, and the needs of the communities it serves, here are some potential CSR
initiatives that Sangam Dairy could undertake
• Education Support: Sangam Dairy can support education by providing
scholarships, sponsoring school infrastructure development, or organizing
educational programs for students in rural areas where the company operates.
• Healthcare Initiatives: The company can organize health camps, provide
medical assistance to underprivileged communities, or support healthcare
facilities through donations of medical equipment or funding for healthcare
programs.
• Women Empowerment: Sangam Dairy can promote women's empowerment
by providing vocational training, supporting women-owned businesses, or
implementing initiatives aimed at improving access to education and
healthcare for women and girls.
• Environmental Conservation: The company can undertake environmental
conservation initiatives such as tree planting drives, waste management
programs, or water conservation projects to minimize its environmental
footprint and contribute to sustainable development.
• Livelihood Enhancement: Sangam Dairy can support rural livelihoods by
providing training in dairy farming practices, facilitating access to credit and
markets for dairy farmers, or promoting alternative income-generating
activities such as agroforestry or livestock rearing.
• Employee Welfare Programs: The company can invest in employee welfare
programs such as health insurance, wellness programs, or skill development
training to enhance the well-being and professional development of its
workforce.
• Community Development: Sangam Dairy can engage in community
development initiatives such as building community centers, improving

45
infrastructure facilities like roads or sanitation, or supporting local cultural
and recreational activities.
• Promotion of Dairy Farming: The company can educate and train farmers
on modern dairy farming techniques, provide access to quality cattle breeds,
and offer veterinary services to improve productivity and livelihoods in rural
areas.
• Disaster Relief Efforts: Sangam Dairy can contribute to disaster relief efforts
by providing emergency supplies, shelter, or financial assistance to
communities affected by natural disasters such as floods, cyclones, or
droughts.
• Promotion of Dairy Industry: The company can collaborate with
government agencies, industry associations, and NGOs to promote the dairy
industry's growth, advocate for policy reforms, and raise awareness about the
importance of dairy farming for rural development and nutrition.

3.8 INDUSTRY ANALYSIS

3.8.1 SWOT Analysis
Strengths:
• Established market position: SMPCL has been in operation since 1977 in

Guntur, Andhra Pradesh. The company is one of the largest players in the
state with installed processing capacity of 8 lakh litre per day. It has a wide
product portfolio and a strong distribution network along with an aggressive
marketing strategy, which will continue to support its market position.
• Improving business performance: Expanding market reach has enabled the

company to achieve increase in revenue to Rs 1,600 crore in fiscal

2023 from Rs 914 crore in fiscal 2020. Contribution from value-added
products is also improving and contributing significantly to the topline.
Furthermore, with the commencement of the new processing unit in
Hyderabad, the growth momentum will continue. The company achieved
revenue of Rs 921 crore in the first half of fiscal 2024.
• Efficient working capital management: The working capital cycle
is managed efficiently with moderate reliance on working capital
borrowing. The company offers minimal credit and most of the

46
inventory is related to purchase of skim milk powder (SMP) during
March and April. Gross current assets are expected at 45-55 days over the
medium term, in line with past trends.
• Strong procurement network, backed by a cooperative
model: The company is part of a cooperative structure, wherein farmers are
owners and suppliers to district cooperative milk unions that supply milk and
milk products to SMPCL for marketing. It follows a two-step price payment
mechanism, wherein the final price paid during the year is based on the
performance of the fiscal depending on the decision of the Board, reflecting
strong control over the effective price paid to unions. It procures milk from
more than 330 villages in Andhra Pradesh and around 1.5 lakh farmers are
directly associated with the company, which ensure sufficient procurement.
• Moderate financial risk profile: Capital structure was healthy owing to
limited reliance on external funds yielding gearing and total outside
liabilities to adjusted networth ratio of 0.82 time and 1.8 times, respectively,
as on March 31, 2023. Debt protection metrics were comfortable, as
reflected in interest coverage and net cash accrual to total debt ratios of 8.82
times and 0.24 time, respectively, in fiscal 2023, and are expected to
remain healthy over the medium term.

Weaknesses:
• Modest operating margin: Intense competition in the dairy industry and the
perishable nature of products will continue to constrain scalability, pricing
power and profitability. Operating margin was average at 2.2% in fiscal
2023 (2.7% in fiscal 2022) owing to high proportion of milk sales and
expensing share of profit to farmers through the profit and loss statement.
The operating margin is expected in the range of 2-3% over the medium
term.
• Susceptibility to changes in government regulations and environmental
conditions: SMPCL, like all dairy players, is susceptible to government
regulations including the duty on import of milk and milk products and risks
related to volatility in global milk powder prices. Furthermore, it is
susceptible to failure in milk production because of external factors such as
cattle diseases and cattle feed availability.

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Opportunities:
• Market Expansion: There are opportunities for Sangam Dairy to expand its
market reach beyond its current geographic areas, tapping into new regions
and consumer segments to drive growth.
• Product Innovation: Introducing new dairy products or variants, as well as
exploring value-added products or functional foods, can help Sangam Dairy
differentiate itself in the market and attract new customers.
• Sustainability Focus: Further investing in sustainability initiatives and
promoting them effectively can resonate with environmentally conscious
consumers and enhance brand reputation.
• E-commerce and Digitalization: Leveraging e-commerce platforms and
digital marketing strategies can help Sangam Dairy reach a wider audience,
enhance customer engagement, and drive sales growth.
• Partnerships and Collaborations: Collaborating with other companies,
retailers, or agricultural cooperatives can expand distribution channels and
enhance market penetration.

Threats:
• Market Competition: Intense competition from both local and national dairy
brands poses a threat to Sangam Dairy's market share and profitability,
requiring continuous efforts to stay competitive.
• Raw Material Price Volatility: Fluctuations in the prices of raw materials
such as milk can impact production costs and profit margins, affecting the
company's financial performance.
• Regulatory Environment: Changes in government regulations, quality
standards, or food safety requirements can impose compliance costs and
operational challenges on Sangam Dairy.
• Changing Consumer Preferences: Shifts in consumer preferences towards
plant-based alternatives or health-conscious products may pose a threat to
traditional dairy products, requiring Sangam Dairy to adapt its product
offerings accordingly.
• Supply Chain Disruptions: Disruptions in the supply chain, such as
transportation bottlenecks, labor shortages, or natural disasters, can disrupt
operations and affect product availability and distribution.

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3.8.2 PORTERS FIVE FORCE ANALYSIS

Competitive Rivalry
• High Competition: The dairy industry is intensely competitive with

numerous local and national players. Sangam Dairy faces significant

competition, impacting its market share and pricing power.
• Product Differentiation: Despite having a strong market position, Sangam

Dairy's operating margins are modest due to high competition and the
perishable nature of its products.
Threat of New Entrants
• Barriers to Entry: High capital investment and established distribution

networks create moderate barriers to entry. However, new entrants with

innovative products or technologies could pose a threat.
• Brand Loyalty and Economies of Scale: Sangam Dairy benefits from brand

loyalty and economies of scale, reducing the threat of new entrants

somewhat.
Bargaining Power of Suppliers
• Low Supplier Power: Sangam Dairy has a strong procurement network,

backed by a cooperative model involving 1.5 lakh farmers. This reduces

supplier power as the company has control over the effective price paid to
unions.
• Stable Supply Chain: The cooperative structure ensures a stable supply of

milk from more than 330 villages, mitigating the risk of supplier power.

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Bargaining Power of Buyers
• High Buyer Power: Buyers in the dairy industry have significant power due

to the availability of numerous alternatives and low switching costs.

Consumers can easily switch to other brands if they find better quality or
lower prices.
• Pricing Sensitivity: Intense competition and the need to maintain

competitive pricing limit Sangam Dairy's pricing power, further increasing

buyer power.
Threat of Substitutes
• High Threat of Substitutes: The growing popularity of plant-based

alternatives and health-conscious products poses a significant threat to

traditional dairy products. Sangam Dairy needs to innovate and diversify its
product range to mitigate this threat.
• Consumer Preferences: Changing consumer preferences towards
sustainable and health-oriented products necessitate continuous adaptation
and product innovation.

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CHAPTER 4
DATA ANALYSIS AND INTERPRETATIONS

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4.1 DESCRIPTIVE ANALYSIS

4.1.1 Gender

TABLE 4.1.1: Gender of the responders

Particulars No. of responders % Of responders

Female 26 26%
Male 74 74%

Grand Total 100 100%

GRAPH 4.1.1: Gender of the responders

INTERPRETATION

The majority of respondents (74%) are male, while a smaller proportion (26%) are
female. This significant gender disparity in the respondent pool could potentially
influence the overall results and insights derived from the survey, as men and
women might have different preferences and behaviours regarding milk
consumption and other aspects under study.

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4.1.2 Age

TABLE 4.1.2: Age of the responders

Particulars No. of responders % Of responders

21-30 52 52%
31-40 33 33%
41-50 9 9%
51-60 4 4%
Above 60 2 2%
Grand Total 100 100%

GRAPH 4.1.2: Age of the responders

INTERPRETATION
The majority of respondents (52%) are in the age group of 21-30, followed by those
aged 31-40 (33%). Smaller proportions of respondents fall into the older age
brackets: 41-50 (9%), 51-60 (4%), and above 60 (2%). This age distribution
indicates that the survey is predominantly reflecting the preferences and behaviours
of younger adults, particularly those in their 20s and 30s. This demographic detail
could have significant implications for interpreting the survey results, as
preferences and behaviours related to milk consumption and other factors might
vary considerably across different age groups.

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4.1.3 Education

TABLE 4.1.3: Education of the responders

Particulars No. of responders % Of responders

Under Graduate 46 46%
SSLC 17 17%
Post Graduate 35 35%
Phd/ Doctorate 2 2%
Grand Total 100 100%

Graph 4.1.3: Education of the responders

INTERPRETATION
The majority of respondents (46%) have an undergraduate degree, followed by
those with a postgraduate degree (35%). A smaller proportion have completed
SSLC (17%), and a very small number hold a PhD or doctorate (2%). This
educational distribution indicates that the survey predominantly reflects the
preferences and behaviours of individuals with higher education levels
(undergraduate and postgraduate), which could influence their purchasing
decisions, including their choice of milk processing type. Those with higher
education levels might have different preferences for milk based on factors such
as health awareness, income levels, and access to information about product
quality.

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4.1.4 Occupation

Table 4.1.4: Occupation of respondents

Particulars No. of responders % Of responders

Employed 38 38%
Student 30 30%
Business 18 18%
Unemployed 14 14%
Grand Total 100 100%

Graph 4.1.4: Occupation of respondents

INTERPRETATION
The largest group of respondents (38%) is employed, followed by students (30%).
Those involved in business make up 18%, while the unemployed constitute 14% of
the total. This occupational distribution indicates a diverse range of respondents,
with a significant portion being employed or students. These groups might have
different purchasing behaviours and preferences for milk processing types based on
factors such as income stability, time availability, and lifestyle choices. For
example, employed individuals might prefer the convenience of milk packets, while
students might have varied preferences based on their living situations and budgets.

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4.1.5 Residential

Table 4.1.5: Residential area of respondents

Particulars No. of responders % Of responders

Andhra Pradesh 65 65%
Telangana 27 27%
Karnataka 5 5%
Meghalaya 1 1%
Bangalore 1 1%
Tamil Nadu 1 1%
Grand Total 100 100%

Graph 4.1.5: Residential area of respondents

INTERPRETATION

The majority of respondents (65%) reside in Andhra Pradesh, followed by those in

Telangana (27%). A smaller proportion of respondents come from Karnataka (5%),
with individual respondents from Meghalaya, Bangalore, and Tamil Nadu each
accounting for 1% of the total. This residential distribution suggests that the survey
results are predominantly reflective of the preferences and behaviours of individuals
from Andhra Pradesh and Telangana. This regional concentration could influence
the overall findings, especially in terms of local milk consumption patterns,
availability of milk types, and regional preferences.

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4.1.6 Income

Table 4.1.6: Income of respondents

Particulars No. of responders % Of responders

Less than Rs.15000 23 23%
Rs.15001-Rs.50000 42 42%
Rs.50001-Rs.100000 22 22%
Rs. 100001-Rs.200000 8 8%
Above Rs.200000 5 5%
Grand Total 100 100%

Graph 4.1.6: Income of respondents

INTERPRETATION

The data shows that the majority of respondents (42%) have a monthly income
between Rs. 15001 and Rs. 50000, followed by those earning less than Rs. 15000
(23%) and those earning between Rs. 50001 and Rs. 100000 (22%). Smaller
proportions of respondents fall into the higher income brackets of Rs. 100001 -
Rs. 200000 (8%) and above Rs. 200000 (5%). This distribution indicates that a
significant portion of the respondents are in the lower to middle-income range,
which could influence their purchasing decisions, including their choice of milk
processing type.

57
4.1.7 Milk Consumption

Table 4.1.7: Type of consumption of milk

Particulars No. of responders % Of responders

Milk Packets 66 66%

Vendor Milk 34 34%

Grand Total 100 100%

Graph 4.1.7: Type of consumption of milk

INTERPRETATION

The majority of respondents (66%) prefer milk packets, suggesting a preference for
the convenience, perceived safety, and consistency of packaged milk. In contrast, a
smaller proportion (34%) opt for vendor milk, which might be preferred for reasons
such as supporting local businesses, perceived freshness, or personal relationships
with the vendor. This data can be useful for businesses and policymakers to
understand consumer preferences and potentially address any concerns related to
milk quality, availability, and trust in different sources.

58
4.1.8.Are you familiar with the brand called Sangam Dairy in
your locality?
Table 4.1.8: Brand identity

Particulars No. of responders % Of responders

Yes 94 94
No 6 6%
Grand Total 100 100%

Graph 4.1.8: Brand identity

INTERPRETATION

An overwhelming majority of respondents (94%) are familiar with the brand

Sangam Dairy, while only a small fraction (6%) are not familiar with it. This high
level of brand awareness suggests that Sangam Dairy is well-known and potentially
popular within the surveyed localities. This familiarity could influence consumer
preferences and choices regarding milk products, indicating a strong market
presence and brand recognition for Sangam Dairy in the area.

59
4.1.9.How would you rate the quality of Sangam Dairy's products
in terms of taste and freshness?
Table 4.1.9 : Quality of products

Particulars No. of responders % Of responders

Excellent 51 51%
Fair 8 8%
Good 41 41%
Grand Total 100 100%

Graph 4.1.9 : Quality of products

INTERPRETATION
A majority of respondents (51%) rate the quality of the products as excellent, while
41% rate them as good, and a smaller portion (8%) rate them as fair. This indicates
a generally positive perception of the product quality, with a significant portion of
respondents expressing high satisfaction. These high ratings suggest that the
products, presumably from Sangam Dairy, are well-regarded in terms of quality,
which likely contributes to the brand's strong familiarity and market presence as
reflected in the previous data.

60
4.1.10. From how many years you are purchasing Sangam Dairy
milk?
Table 4.1.10: Purchase history of products

Particulars No. of responders % Of responders

Less than 1 year 16 16%
1-2 years 23 23%
2-5 years 32 32%
Above 5 years 29 29%
Grand Total 100 100%

Graph 4.1.10: Purchase history of products

INTERPRETATION
The data indicates that a substantial portion of respondents (32%) have been
purchasing the products for two to five years, followed by those who have been
buying for more than five years (29%). Respondents who have been purchasing for
one to two years make up 23%, and those who have been purchasing for less than
one year constitute 16%. This distribution suggests a loyal customer base, with a
significant number of respondents having a long-term purchase history with the
brand. The relatively high percentage of respondents with more than two years of
purchase history (61% in total) indicates sustained satisfaction with the brand’s
products, which aligns with the earlier data showing high ratings for product quality
and strong brand familiarity.

61
4.1.11.What is the opinion of the Customers on the price of Sangam
Milk?
Table 4.11: Pricing range of products
Particulars No. of responders % Of responders

High 24 24%

Low 15 15%

Moderate 61 61%

Grand Total 100 100%

Graph 4.1.11: Pricing range of products

INTERPRETATION
The majority of respondents (61%) perceive the pricing of the products as moderate,
suggesting that most customers find the prices to be reasonable and within an
acceptable range. A smaller portion of respondents (24%) perceive the prices as
high, while 15% consider the prices to be low. This perception of moderate pricing
aligns with the generally positive feedback on product quality and the strong brand
familiarity indicated in earlier data. It suggests that the brand's pricing strategy is
well-received by the majority of its customers, contributing to their overall
satisfaction and long-term loyalty.

62
4.1.12. Do associate Sangam Dairy's products with sustainability
and environmental responsibility?
Table 4.1.12: Sustainability and Environmental responsibilities of products

Particulars No. of responders % Of responders

Agree 55 55%
Strongly Agree 30 30%
Neutral 13 13%
Strongly Disagree 1 1%
Disagree 1 1%
Grand Total 100 100%

Graph 4.1.12: Sustainability and Environmental responsibilities of products

INTERPRETATION
The majority of respondents (85%) either agree (55%) or strongly agree (30%) that
the products are sustainable and environmentally responsible. A smaller portion
(13%) is neutral, and only 2% of respondents (1% strongly disagree, 1% disagree)
express a negative opinion on this aspect. This overwhelmingly positive response
indicates a strong belief among customers that the brand, likely Sangam Dairy, is
committed to sustainability and environmental responsibility. This perception can
enhance the brand's reputation and attract environmentally conscious consumers,
reinforcing customer loyalty and potentially drawing in new customers who
prioritize sustainability.

63
4.1.13. Which Sangam Milk Product is having more sales other
than milk?
Table 4.1.13: Sales of milk products
Particulars No. of responders % Of responders
Curd 41 41%
Butter milk 40 40%
Lassi 14 14%
Doodpeda 4 4%
Cheese 1 1%
Grand Total 100 100%

Graph 4.1.13: Sales of milk products

INTERPRETATION
The data indicates that the most popular milk products other than milk are curd
(41%) and buttermilk (40%), which are nearly equally favored by respondents.
Lassi is also fairly popular, with 14% of respondents purchasing it. Doodh peda and
cheese are less commonly purchased, with only 4% and 1% of respondents,
respectively, buying these products. This distribution suggests that curd and
buttermilk are significant secondary products for the brand, likely contributing a
substantial portion of sales alongside milk. The lower percentages for lassi, doodh
peda, and cheese indicate more niche markets or less frequent purchases of these
items. Understanding these preferences can help the brand focus on maintaining and
potentially expanding its offerings in the more popular product categories while
exploring strategies to increase the popularity of less purchased items.

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4.1.14. What are your thoughts on the packaging used for Sangam
Dairy's products?
Table 4.1.14: Packaging of products
No. of
Particulars responders % Of responders
Acceptable 19 19
Acceptable, Excessive 7 7
Acceptable, Excessive, Not
Environmentally Friendly 1 1
Acceptable, Not Environmentally
Friendly 1 1
Eco-friendly 14 14
Eco-friendly, Acceptable 37 37
Eco-friendly, Acceptable, Excessive 6 6
Eco-friendly, Acceptable, Excessive, Not
Environmentally Friendly 5 5
Eco-friendly, Acceptable, Not
Environmentally Friendly 1 1
Eco-friendly, Excessive 6 6
Excessive 2 2
Not Environmentally Friendly 1 1
Grand Total 100 100

Graph 4.1.14: Packaging of products

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INTERPRETATION
• The majority of respondents (37%) find the packaging both eco-friendly and
acceptable. Additionally, 14% find the packaging eco-friendly, and 19% find it
acceptable. A smaller portion of respondents express concerns about excessive
packaging (7%), or packaging that is not environmentally friendly (1%).
• There are nuanced perceptions, with some respondents noting combinations of
eco-friendliness, acceptability, and excessiveness. Specifically, 6% find the
packaging eco-friendly but excessive, while a few (5%) see it as eco-friendly,
acceptable, excessive, and not environmentally friendly.
• Overall, the data suggests that most respondents are satisfied with the
packaging's acceptability and eco-friendliness, but a notable minority have
concerns about excessiveness and environmental impact. This feedback could
help the brand consider adjustments to reduce packaging excess and enhance its
environmental friendliness.

66
4.1.15.How can Sangam Dairy improve its waste management
practices related to product packaging and processing?
Table 4.1.15: Waste management practices

Row Labels No. of responders % Of responders

Reduced packaging 24 24%
Recycling initiatives 67 67%
Composting 9 9%
Grand Total 100 100%

Graph 4.1.15: Waste management practices

INTERPRETATION
The majority of respondents (67%) are involved in recycling initiatives, indicating
a strong emphasis on recycling as a key waste management practice. A smaller but
significant portion (24%) participates in reduced packaging efforts, while 9% are
engaged in composting. These results suggest that recycling initiatives are the most
prevalent waste management practice among the respondents. The data reflects a
good level of engagement in sustainable practices, with a focus on recycling, which
aligns with the previously noted positive perceptions of the brand's sustainability
and environmental responsibility. Reduced packaging and composting are also
important, though less commonly practiced, areas that could be further promoted to
enhance overall waste management efforts.

67
4.1.16. Which packet of Sangam milk is having more demand from
customers?
Table 4.1.16: Demand of products variant
Particulars No. of responders % Of responders
1 litre 35 35%
½ litre 58 58%
200ml 6 6%
Tetra pack 1 1%
Grand Total 100 100%

Graph 4.1.16: Demand of products variant

INTERPRETATION
The data indicates preferences for different product volumes among respondents.
Among them, 58% favor the half-litre option, followed by 35% for the one-litre
option. A smaller percentage, 6%, opt for the 200ml size, while only 1% prefer the
Tetra pack. This breakdown suggests a clear preference hierarchy, with the half-
liter being the most popular choice and the Tetra pack being the least favored.

68
4.1.17.Can you guess the reason why customers purchase the
Sangam Milk Products?
Table 4.1.17: Reasons behind their sales

Particulars No. of responders % Of responders

Cost 5 5%
Cost, Healthy 13 13%
Cost, Healthy, Tasty 7 7%
Cost, Tasty 5 5%
Healthy 6 6%
Healthy, Tasty 4 4%
Quality 7 7%
Quality, Availability 1 1%
Quality, Cost 5 5%
Quality, Cost, Healthy 14 14%
Quality, Cost, Healthy, Tasty 12 12%
Quality, Cost, Tasty 1 1%
Quality, Healthy 3 3%
Quality, Healthy, Tasty 9 9%
Quality, Tasty 6 6%
Tasty 2 2%
Grand Total 100 100%

Graph 4.1.17: Reasons behind their sales

69
INTERPRETATION
The data insights into respondents preferences regarding various attributes
associated with a product. It reveals that while 5% prioritize the cost alone, 6%
prioritize healthiness, and only 2% prioritize taste as the sole factor. However, a
significant portion of respondents consider combinations of attributes. For instance,
13% weigh both cost and health, 5% factor in both cost and taste, and 4% consider
both health and taste. Quality emerges as an important consideration for 7% of
respondents, with only 1% emphasizing both quality and availability. Additionally,
5% consider both quality and cost, while 3% consider both quality and health, and
6% consider both quality and taste. Moreover, multiple attribute combinations are
evident, with 7% considering cost, health, and taste together, 14% weighing quality,
cost, and health, and 12% considering quality, cost, health, and taste collectively.
Overall, this data highlights the diverse array of factors influencing respondents'
product preferences, from singular attributes to the simultaneous consideration of
multiple criteria.

70
4.1.18. Are you satisfied with the number of milk Booths sufficient
in your locality? (1- Extremely poor , 5 – Excellent)
Table 4.18: Outlets in locality

Particulars No. of responders % Of responders

1 - -
2 6 3%
3 18 13%
4 41 40%
5 35 43%
Grand Total 100 100%

Graph 4.1.18: Outlets in locality

INTERPRETATION
The respondents satisfaction levels regarding the adequacy of milk booths in their
locality, measured on a scale from 1 (extremely poor) to 5 (excellent). No
respondents rated the situation as extremely poor, indicating that there is a baseline
level of satisfaction among the respondents. However, a small portion (3%) rated
the situation as a 2, suggesting some dissatisfaction with the current number of milk
booths. A larger percentage (13%) rated it as a 3, indicating a moderate level of
satisfaction. The majority of respondents (40%) rated the situation as a 4, suggesting
a high level of satisfaction with the existing number of milk booths. The highest
rating of 5 (excellent) was given by 43% of respondents, indicating that a significant
portion of the population is highly satisfied with the abundance of milk booths in

71
their locality. Overall, the data suggests that while there may be some room for
improvement, the majority of respondents are content with the current availability
of milk booths in their area.

72
4.1.19. How important is it for Sangam Dairy to introduce new
sustainable products or variants to its existing product line? (1- Not
at all Important , 5 - Very Important)
Table 4.1.19: Product line improvement

Particulars No. of responders % Of responders

1 3 1%
2 3 2%
3 25 19%
4 33 33%
5 36 45%
Grand Total 100 100%

Graph 4.1.19: Product line improvement

INTERPRETATION
The data portrays the perceived importance of Sangam Dairy introducing new
sustainable products or variants to its existing product line, with ratings ranging
from 1 (Not at all Important) to 5 (Very Important). While a small portion of
respondents (3%) considered it not important (rated 1) and another 2% somewhat
unimportant (rated 2), the majority voiced varying degrees of significance. Nineteen
percent rated it as moderately important (rated 3), while a considerable proportion
(33%) deemed it fairly important (rated 4).

However, the most striking revelation is that 45% of respondents rated it as very
important (rated 5), highlighting a strong consensus among a significant portion of

73
the respondents regarding the necessity for Sangam Dairy to expand its product line
with sustainable offerings. This data underscores a growing consumer demand for
environmentally friendly products and signals a clear opportunity for Sangam Dairy
to enhance its market position by aligning with sustainability initiatives.

74
4.1.20. How can Sangam Dairy better communicate its sustainable
practices to consumers to influence purchasing behaviour?
Table 4.1.20: Communication to improve purchasing behaviour

Particulars No. of responders % Of responders

Clear labelling 60 60%
Educational campaigns 25 25%
Social media 15 15%
Grand Total 100 100%

Graph 4.1.20: Communication to improve purchasing behaviour

INTERPRETATION
The data highlights several strategies through which Sangam Dairy can effectively
communicate its sustainable practices to consumers and influence purchasing
behaviour. With 60% of respondents advocating for clear labelling, Sangam Dairy
could utilize packaging that prominently displays symbols or information
showcasing its sustainability initiatives, providing transparency and easy
comprehension for consumers. Additionally, 25% of respondents suggest
educational campaigns as a powerful tool, indicating the potential impact of
workshops, seminars, or online content to inform consumers about the dairy's
sustainability efforts.
Furthermore, 15% of respondents view social media as a valuable platform,
underscoring the importance of engaging content and updates on platforms like

75
Facebook, Instagram, or Twitter to reach a broader audience and foster consumer
engagement. By prioritizing clear labelling, educational campaigns, and effective
social media presence, Sangam Dairy can effectively communicate its commitment
to sustainability, thereby influencing consumer purchasing decisions positively.

76
4.1.21. In your opinion, how does Sangam Dairy's production and
operations impact the local community?(1- Negative Impact , 5-
Positive Impact)
Table 4.1.21: Influence on local community

Particulars No of responders % Of responders

1 2 2%
2 4 4%
3 11 11%
4 52 52%
5 31 31%
Grand Total 100 100%

Graph 4.1.21: Influence on local community

INTERPRETATION
The data indicates that the majority of respondents view Sangam Dairy's production
and operations as having a positive impact on the local community. Specifically,
52% of respondents rated the impact as positive (4), while 31% rated it as highly
positive (5), totalling 83% with favourable views. A smaller portion of the
respondents, 11%, rated the impact as neutral (3), suggesting moderate or mixed
feelings. Only a minimal percentage of respondents perceived the impact
negatively, with 4% rating it as slightly negative (2) and just 2% rating it as highly
negative. Overall, the data reveals strong community support and approval for
Sangam Dairy, highlighting the positive contributions and influence of its
production and operations on the local community

77
4.1.22. Which companies are the key competitors of Sangam Dairy
in the industry?
Table 4.22: Key competitors in market

Row Labels No of responders % Of responders

Heritage Dairy 50 50%
Thirumala Dairy 36 36%
Vijaya Dairy 13 13%
No one 1 1%
Grand Total 100 100%

Graph 4.1.22: Key competitors in market

INTERPRETATION
The data indicates respondents' perceptions of Sangam Dairy's competitors. A
significant portion, 50%, identified Heritage Dairy as a competitor, making it the
most recognized rival. Thirumala Dairy followed closely, with 36% of
respondents viewing it as a competitor. Vijaya Dairy was considered a competitor
by 13% of respondents. Interestingly, only 1% of respondents believed Sangam
Dairy has no competitors. This suggests that Heritage Dairy and Thirumala Dairy
are perceived as the primary competitors in the market, with Vijaya Dairy also
being noted but to a lesser extent. Overall, the data highlights the competitive
landscape in which Sangam Dairy operates, with a clear emphasis on Heritage and
Thirumala Dairies as its main rivals.

78
e) HYPOTHESIS TESTING
Chi-square Test:
Objective: To examine sustainable practices in between quality and price of the
Sangam Diary products
Null Hypothesis (H0): There is no significant practices and operations to sustain
in the dairy industry at Sangam Dairy between quality and price of the Sangam
Diary products
Alternative Hypothesis (H1): There is significant practices and operations to
sustain in the dairy industry at Sangam Dairy between quality and price of the
Sangam Diary products.
Data Entry

Quality High Low Moderate Grand Total

Excellent 12 8 31 51

Fair 1 1 6 8

Good 11 6 24 41

Grand Total 24 15 61 100

Expected Frequency

Quality High Low Moderate Grand Total

Excellent 12.24 7.65 31.11 51

Fair 1.92 1.20 4.88 8

Good 9.84 6.15 25.01 41

Grand Total 24.00 15.00 61.00 100

Chi – Square Calculation:

Calculate the square of the difference between the observed frequency and
expected frequency and divide by expected frequency.
• Formula: - (O-E)2/E
• ex: - =(B2-B9) ^2/B9

79
Row Labels High Low Moderate
Excellent 0.0047 0.0160 0.0004
Fair 0.4408 0.0333 0.2570
Good 0.1367 0.0037 0.0408

Chi square (X2), degrees of freedom (df), P-value calculation:

X2 0.9335

df 4

p-value 0.919703646
Interpretation:
Chi-Square Statistic and Critical Value:
• The chi-square statistic (𝜒2χ2) is 0.9335
• For 12 degrees of freedom and a significance level of 0.05, the critical
value from the chi-square statistic
P-value:
The p-value is 0.919703646, which is greater than the significance level of 0.05.
Decision rule: If P >0.05, Accept the Null Hypothesis
The obtained P value is 0.91, which is greater than 0.05, therefore Accept Null
Hypothesis
Interpretation: There is no significant practices and operations to sustain in the
dairy industry at Sangam Dairy between quality and price of the Sangam Diary
products

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CHAPTER 5

SUMMARY OF FINDINGS, CONCLUSIONS

AND SUGGESTIONS

81
5.1 SUMMARY OF FINDINGS
i. In total of 100 Respondents, the survey results suggest that most respondents
are male, followed by female respondents. This shows that mostly male
respondents actively participated in this Survey.
ii. The survey data indicates that most respondents are male, accounting for
74% of the total. Female respondents make up 26%, showing that mostly
male respondents actively participated in this survey.
iii. The survey data consists of 46% of respondents possessing undergraduate
qualifications, followed by 35% with post-graduate degrees, underscoring a
strong foundation of higher education within the sample. Only 17% of the
respondents have qualifications at the SSLC level, and 2% hold a
PhD/Doctorate, indicating minimal representation from these educational
backgrounds.
iv. The survey data indicates that the majority of respondents are from Andhra
Pradesh, accounting for 65%. Telangana follows with 27%, while the
remaining 8% are from other locations including Karnataka (5%),
Meghalaya (1%), Bangalore (1%), and Tamil Nadu (1%).
v. The survey data shows that a substantial majority, 94% of respondents, are
familiar with the brand Sangam Dairy in their locality. Only 6% are not
familiar with the brand.
vi. The survey data indicates that 51% of respondents rated the quality of
Sangam Dairy products as excellent, 41% rated it as good, and 8% rated it
as fair, showing a high level of satisfaction with product quality.
vii. The survey data shows that 32% of respondents have been purchasing
Sangam Dairy products for 2-5 years. 29% have been customers for over 5
years, 23% for 1-2 years, and 16% for less than 1 year.
viii. The survey data indicates that 61% of respondents find the pricing of
Sangam Dairy products to be moderate. 24% perceive the pricing as high,
while 15% consider it low.
ix. The survey data shows that 55% of respondents agree that Sangam Dairy
products are sustainable and environmentally responsible. 30% strongly
agree, 13% are neutral, and 1% each strongly disagree and disagree.

82
x. The survey data indicates that curd is the most frequently purchased product,
with 41% of respondents buying it. Buttermilk follows closely at 40%, lassi
at 14%, doodh peda at 4%, and cheese at 1%.
xi. The survey data consists of 37% of respondents finding the packaging eco-
friendly and acceptable. 19% find it acceptable, 14% find it eco-friendly,
and smaller percentages have other perceptions, including concerns about
excessive packaging and lack of environmental friendliness.
xii. The survey data indicates that 67% of respondents are involved in recycling
initiatives. 24% participate in reduced packaging efforts, and 9% are
involved in composting.
xiii. This data suggests that 78% of respondents consider it important to very
important for Sangam Dairy to introduce new sustainable products or
variants. Sangam Dairy should prioritize developing and marketing new
sustainable products to meet this strong consumer demand and further
enhance their sustainability credentials.
xiv. Heritage Dairy and Thirumala Dairy are seen as the main competitors,
suggesting that Sangam Dairy should monitor their activities and strategies
closely to stay competitive. Differentiating Sangam Dairy's products
through unique selling propositions (USPs), particularly in sustainability
and quality, could help maintain and grow market share.
xv. These findings indicate that Sangam Dairy has a strong presence and
positive perception among both dealers and customers. To capitalize on this,
the company should continue focusing on product quality, pricing, and
diversification while nurturing dealer relationships and expanding market
reach. Regular feedback and adaptation to market dynamics will be key to
sustained success.
xvi. Company could consider collecting customer feedback on its policies and
services to better align with customer expectations and enhance overall
customer satisfaction.
xvii. Hypothesis There is no significant practices and operations to sustain in
the dairy industry at Sangam Dairy between quality and price of the
Sangam Diary products

83
5.2 Conclusion
Sangam Milk, a renowned player in the dairy industry, has a strong foundation but
faces the evolving challenges of a competitive marketplace. The findings emphasize
the importance of differentiating the brand through a unique value proposition and
maintaining unwavering product quality and consistency. Customer engagement
and loyalty are pivotal, necessitating a focus on effective communication,
innovative product offerings, and exceptional customer service. Embracing
sustainability, fostering transparency, and continuous improvement are integral
aspects of securing a prominent and enduring brand position.

Sangam Milk has the potential to not only meet but surpass consumer expectations
by implementing these recommendations, solidifying its standing as a trusted and
preferred choice in the dairy sector. In an ever-changing market, the brand's ability
to adapt, resonate with its target audience, and consistently deliver on its promises
will be the key to its continued success. By embracing sustainable sourcing
practices and promoting transparency in its operations, the brand can resonate with
environmentally and socially conscious consumers.

Survey Conclusion
The data underscores the company's strengths in product quality, brand recognition,
and sustainability efforts, while also highlighting areas for improvement and
opportunities for growth. With a majority of respondents expressing satisfaction
with product quality and acknowledging Sangam Dairy's sustainability initiatives,
the company is well-positioned to capitalize on consumer preferences for high-
quality and environmentally responsible products. Moreover, the data points
towards untapped market potential in regions beyond Andhra Pradesh and
Telangana, suggesting avenues for expansion and market penetration. To maintain
and enhance its competitive edge, Sangam Dairy should prioritize customer
engagement, innovation, and community impact initiatives. By leveraging its
strengths, addressing areas for improvement, and staying attuned to evolving
consumer preferences and market trends, Sangam Dairy can continue to thrive in
the dairy industry while making a positive impact on both the market and the
community it serves.

84
5.3 Suggestions/ Recommendations:
Based on the survey findings, it is evident that Sangam Dairy is a sustainable brand
and big player in dairy industry in Andhra Pradesh and Telangana, but the company
should be concentrate on the expansion of their market
i. Identify and communicate a unique value proposition that sets Sangam Milk
apart from competitors. This could be related to product quality, sourcing
practices, or a specific aspect of the brand's story.
ii. Invest in building a strong and consistent brand identity, including logo,
packaging, and messaging, to create a memorable and recognizable brand
image.
iii. Continuously focus on maintaining high-quality standards and consistency in
product offerings to build trust and meet customer expectations.
iv. Showcase positive customer testimonials and reviews to build social proof and
reinforce the brand's credibility.
v. Be transparent about sourcing practices, product ingredients, and quality
control measures to build trust among consumers.
vi. Explore opportunities for market expansion in regions beyond Andhra Pradesh
and Telangana, such as Karnataka, Meghalaya, Bangalore, and Tamil Nadu.
vii. Implement personalized marketing strategies, loyalty programs, and customer
feedback mechanisms to foster customer loyalty and retention, catering to the
diverse needs and preferences of the customer base.
viii. Invest further in sustainability initiatives, including eco-friendly packaging,
energy-efficient operations, and ethical sourcing practices, while effectively
communicating these efforts to consumers through clear labelling, educational
campaigns, and social media engagement
ix. Consider diversifying the product portfolio to meet evolving consumer
demands and preferences, introducing new sustainable products or variants to
appeal to environmentally conscious consumers.
x. Address concerns related to packaging perceptions by exploring sustainable
packaging alternatives and clearly communicating the company's efforts to
reduce environmental impact.

85
xi. Embrace technology solutions for production, distribution, and customer
engagement, leveraging data analytics and automation to streamline
operations and enhance customer experiences.
xii. In the recent time there is lot of scope given to health aspect and the consumers
are shifting from high calorie to low calorie food products to stay fit and fine.
The company should take this also into consideration and
manufacture low calorie or diet drinks to enhance the customer base.

86
Bibliography
1. Jayasree Joshi, T. H. (2024). Value Addition and Sustainable
Management of Dairy Industry Byproducts.
2. Narnaware, G. N. (2022). Traditional Dairy products in India.
3. Koduru, K. &. (2021). Perception of consumers towards dairy products
in Guntur district:.
4. Gottumukkala, M. (2021). Total Quality Management (TQM) practices
resonates with Sangam Dairy's commitment to excellence in the dairy
sector.
5. SIMON, M. K. (2021). PERFORMANCE EVALUATION OF
MANUFACTURE OF DAIRY PRODUCTS IN INDIA-DEA
APPROACH.
6. Parida, Y. G. (2021). India's status as the world's foremost milk
producer.
7. Vyas, M. &. (2020). Study on assessing milk quality and hygiene
correlates with Sangam Dairy's commitment to delivering top-tier dairy
products.
8. Hemanth, M. V. (2020). Marketing of Milk and Milk products through
Vending Machines.
9. Senthilkumar, S. K. (2020). Customers cognizance factors influencing
purchasing decision of designated dairy products.
10. Sharma, V. P. (2020). India's dairy industry efficient despite trade
restrictions.
11. Mor, R. S. (2019). Demand forecasting of the short-lifecycle dairy
products.

Website links:
• https://sangamdairy.com/
• https://www.exportersindia.com/sangam-dairy-4252501/
• https://economictimes.indiatimes.com/company/sangam-milk-
• producer-company-limited/U15122AP2013PTC088443
• https://zaubee.com/biz/sangam-dairy-distributors-jdckhvo3

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Questionnaire
A STUDY ON SUSTAINABLE PRACTICES & OPERATIONS IN
SANGAM DAIRY

1. Name
2. Phone Number/Mail
3. Gender
4. Age
• 21-30
• 31-40
• 41-50
• 51-60

5. Education
• SSLC/HSC
• Under Graduation
• Post Graduation
• PhD/Doctorate

6. Occupation
• Student
• Employed
• Business
• Unemployed

7. Residential
• Andhra Pradesh
• Telangana
• Other:

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8. Monthly Income
• Less than 15000
• 15001-50000
• 50001-100000
• 100001-200000
• Above 200000

9. Which type of milk processing you consume ?

• Milk Packets
• Vendor Milk

10. Are you familiar with the brand called Sangam Dairy in your locality ?
• Yes
• No

11. How would you rate the quality of Sangam Dairy's products in terms of taste
and freshness?
• Excellent
• Good
• Fair
• Poor

12. From how many years you are purchasing Sangam Dairy milk?
• Less than 1 year
• 1-2 years
• 2-5 years
• Above 5 years

13. What is the opinion of the Customers on the price of Sangam Milk?
• High

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• Moderate
• Low

14. Do you associate Sangam Dairy's products with sustainability and

environmental responsibility?
• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree

15. Which Sangam Milk Product is having more sales other than milk?
• Curd
• Butter Milk
• Lassi
• Doodpeda
• Cheese
• Butter
• Yogurt

16. What are your thoughts on the packaging used for Sangam Dairy's products?
• Eco-friendly
• Acceptable
• Excessive
• Not Environmentally Friendly

17. How can Sangam Dairy improve its waste management practices related to
product packaging and processing?
• Recycling initiatives
• Reduced packaging
• Composting

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• Other
18. Which packet of Sangam milk is having more demand from customers?
• 1 litre
• ½ litre
• 200ml
• Tetra pack

19. Can you guess the reason why customers purchase the Sangam Milk Products?
• Quality
• Cost
• Healthy
• Tasty
• Other

20. Are you satisfied with the number of milk Booths sufficient in your locality?
(Rate from 1 to 5)
• Extremely poor
• Excellent

21. How important is it for Sangam Dairy to introduce new sustainable products
or variants to its existing product line? (Rate from 1 to 5)
• Not at all important
• Very Important

22. How can Sangam Dairy better communicate its sustainable practices to
consumers to influence purchasing behaviour?
• Clear labeling
• Educational campaigns
• Social media

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23. In your opinion, how does Sangam Dairy’s production and operations impact
the local community? (Rate from 1 to 5)
• Negative Impact
• Positive Impact

24. Which companies are the key competitors of Sangam Dairy in the industry?
• Heritage Dairy
• Thirumala Dairy
• Vijaya Dairy
• Others

25. Any Suggestions

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MBA
Dissertation
PROGRESS REPORT-1
SI.NO PARTICULARS DETAILS
1 Name of the student MARAM SAI MANIDEEP
2 Registration Number P03AA22M015026
3 Name of the college Guide Dr. C. Sengottuvelu CPM(ISM-USA)
Professor and Head -Research

4 Name and contact no of V.S.N.Prasad, Asst Manager,

the co- Training Centre 9440117663
guide/ external guide
(corporate)
5 Title of the dissertation A Study on Sustainable Practices & Operations
in Sangam Dairy Guntur

6 Name and Address of the Chebrolu Mandal, Vadlamudi Village, Guntur -

company/organization Tenali Rd, Guntur, Andhra Pradesh 522213
where dissertation
undertaken with date of
starting dissertation
7 Progress report: A brief note Internship Started on 1st of May 2024 at Sangam
reflecting, number of Dairy. Training with the Product Line and their
meetings with guide, place Quality Management of dairy products
visited,
libraries visited, books With reference to project: The title of the project
referred, meeting with was chosen on 3rd May 2024, with suggestions
persons, activities taken up, from both 1the Company Guide and College
preparations done for Guide. The synopsis includes details about the
collection and analysis of sector, Research design, literature of review,
data etc.…,) objectives, and methodology. Chapters 1,2 of the
project report which utilizes secondary data has
been completed. Chapter 3,4 are yet to prepare &
questionnaire is prepared, and chapter 5 stills need
to be completed

Date: 25-05-2024

Signature of the candidate Signature of the college guide

93
MBA
Dissertation
PROGRESS REPORT-2
SI.NO PARTICULARS DETAILS
1 Name of the student MARAM SAI MANIDEEP
2 Registration Number P03AA22M015026
3 Name of the college Guide Dr. C. Sengottuvelu CPM(ISM-USA)
Professor and Head -Research

4 Name and contact no of V.S.N.Prasad, Asst Manager,

the co- Training Centre 9440117663
guide/ external guide
(corporate)
5 Title of the dissertation A Study on Sustainable Practices & Operations
in Sangam Dairy Guntur

6 Name and Address of the Chebrolu Mandal, Vadlamudi Village, Guntur -

company/organization Tenali Rd, Guntur, Andhra Pradesh 522213
where dissertation
undertaken with date of
starting dissertation
7 Progress report: A brief note The first progress report was submitted on May
reflecting, number of 25, 2024. Chapters 1, 2, and 3 have been fully
meetings with guide, place completed. For Chapter 4, a questionnaire was
visited, circulated among respondents for data
libraries visited, books collection. The next step is to analyze and
referred, meeting with interpret this data. Chapter 5 will be addressed
persons, activities taken up, afterward.
preparations done for
collection and analysis of As my internship is going on I may not get chance
data etc.…,) to meet the guide and after completion of my
internship I will meet the guide with final draft

Date: 29-05-2024

Signature of the candidate Signature of the college guide

94