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CII Report on Indian Dairy Industry
Dairy Ind. in Expansion Mode, Says CII Report

CII Report on Indian Dairy Industry
Source: The Times of India, Sunday, March 14, 2004

CII sees second white revolution: The country is poised for a second white revolution as the Rs 50,000 crore indigenous dairy product market offers immense scope for future growth, a CII report said. The dairy Industry is likely to see a major breakthrough, as handmade dairy delicacies have now gone into industrial production. PTI

Dairy Ind. in Expansion Mode, Says CII Report
Our Corporate Bureau
Source: The Financial Express, Monday, March 15, 2004

The dairy industry is poised for major growth as handmade dairy delicacies have now gone into industrial production, according to Confederation of Indian Industry (CII) report.

“This expansion marks the second wave of India’s white revolution,” the report on ‘Emerging Opportunities Beyond Liquid Milk’ said. The market segment is estimated at Rs. 50,000 crore.

The growth is at an impressive Rs. 5, 000 crores per year, covering products such as dahi, paneer, gulbjamun, rasogolla and shrikhand.

The dairy industry needs to recognize the importance of indigenous products to sustain its overall growth. Also, enough attention and investments are necessary to raise the status of this product category from dominantly unorganized to organized and allow it to emerge as matured segment of the industry,” the report said.

According to the report, the indigenous dairy products are India’s largest selling and most profitable segment accounting for 50 per cent of the production.

The industrial production of traditional sweets such as shrikhand, gulabjamun, peda and burfi has made significant headway. India’s dairy market is a multilayered pyramid, with the large base made of low-cost, liquid, raw milk. The narrow tip at the top was a small but affluent market largely for western model fresh packaged dairy products, it said. The CII report has pointed out that there was an emerging market for Indian Milk-based sweets, overseas. “In north America alone the market is estimated at $500 million,” it said.

It, however, cautioned that, “In order to make an enduring presence in the world of food market, ethnic products have to meet the international standards.”

The way ahead is marked by the development of appropriate packaging systems, consistent with international standards, which will help establish national and international marketing networks for mithais. In-depth studies are also needed on the biochemical and microbiological changes during storage, affecting the product shelf life, it said.

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