indian dairy industry (& potential for lactose free products)

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Landscaping the Dairy and Lactose Free (LI) Market in India

Information Flow

• Dairy & Lactose Free Products Potential Market Play

• Dairy Market Macro Scenario – Market Dynamics

– Key Players & Their Product Portfolio

– Consumer Behaviour – Milk Products

• Lactose Intolerance – Definition & Types of Lactose Intolerance

– Incidence

– Consumer Behaviour – Lactose Free Products

• Key Players – Ingredient makers

– Ready to consume products

2 9/25/2014 Indian Dairy & Lactose Free Market


Potential Market Play

Scope of Opportunity

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Opportunity Mapping

$ x bn

Milk / Dairy Products

$ x bn, x% growth

Organised: $ x bn

Dietetic Agents / Supplements

$ x mn; x% CAGR

Protein Supplements

$ x mn; x% CAGR

Infant Formula

$ x mn; x% CAGR

Other Nutrients

$ x mn; x% CAGR

Digestive Enzymes

All Enzymes

$ x mn; x% CAGR

Lactose Free product market would be miniscule of the total market, hence an opportunity; The Lactose Free market size in Asia Pacific region (of which India is the part), was just $ x

mn in 2013 (source: Euromonitor)

Source: National Dairy Development Board; AIOCD Pharma Data, 2012 9/25/2014 Indian Dairy & Lactose Free Market


Milk / Dairy Products Landscape

Global Milk Production Split

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17.4%

16.3%

12.6%

6.6% 5.7%

5.0%

4.6%

4.6%

4.3%

3.4%

2.5%

2.0% 1.8%

1.8% 1.7%

1.6% 1.5% 1.5%

1.5% 1.3% 1.2%

1.1% Rest of World

India

USA

Other EU

China

Pakistan

Brazil

Russia

Germany

France

New Zealand

UK

Turkey

Poland

Netherlands

Ukraine

Mexico

Argentina

Italy

Australia

Canada

Japan

Global milk production around x Mn T; India largest country in terms of milk production; lags behind in consumption

Source: Global Dairy Farmers, 2010 data 9/25/2014 Indian Dairy & Lactose Free Market

Global Per Capita Milk Consumption

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India lags behind all the developed countries; much better than China

Source: National Statistics; FAO; IMF

9/25/2014 Indian Dairy & Lactose Free Market

Indian Macro Scenario >>> Overview

• Current India’s population is 1.25 billion – Estimated to reach 1.53 billion by 2020

• x% of world milk production in India – Milk production estimates for 2012-2013 are 132.7 mn tonnes and estimated to reach 190 mn

tonnes by 2015 – Per capita availability in India is 300 gm / day (350 by 2020); above global average, but well below

the consumption level in developed countries – India is ranked 18 in the world exports and its share is 1.6%

• Total size of the Indian Dairy Industry is around $ x billion – Around $ 15 billion is organised and remaining is unorganised (largely fluid milk & butter) – By 2020, Indian dairy organised industry is estimated to be $ 24 billion; total industry size would be

around $ 140bn, including unorganised segment – Today 31% of milk sold is branded; by 2020 it is likely to be 50%

• Milk production has increased on an average by x% y-o-y during last two decades (1991-92 to 2010-11) – WPI for milk increased by 7.2% in 2012-13 vis-à-vis 2011-2012

8 Source: Publically Available Data 9/25/2014 Indian Dairy & Lactose Free Market

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Top 7 milk producing states contributes more than x% of milk production

Per capita consumption varies significantly across various states

State Production (Mn. T.)

Production (Mn. T.)

Population (mn)

Per Capita (Kg / Yr)

All India 132.7 132.7 1200 110.6

Uttar Pradesh 18.0% 23.9 199 120

Andhra Pradesh 8.8% 11.7 84 139

Rajasthan 8.8% 11.7 69 169

Punjab 8.7% 11.5 28 412

Gujarat 7.7% 10.2 60 170

Maharashtra 6.9% 9.2 112 82

Madhya Pradesh 6.3% 8.4 72 116

Bihar 5.5% 7.3 103 71

Haryana 5.3% 7.0 25 281

Tamil Nadu 5.2% 6.9 72 96

Karnataka 4.2% 5.6 61 91

West Bengal 4.0% 5.3 91 58

Kerala 2.3% 3.1 33 92

Orissa 1.5% 2.0 42 47

Jammu & Kashmir 1.4% 1.9 12 155

Jharkhand 1.4% 1.9 32 58

Uttarakhand 1.1% 1.5 10 146

Himachal Pradesh 0.8% 1.1 7 152

Chhattisgarh 0.8% 1.1 25 42

Assam 0.7% 0.9 31 30

Delhi 0.3% 0.4 17 23

Goa 0.1% 0.1 1 95

Manipur 0.1% 0.1 3 44

Meghalaya 0.1% 0.1 3 44

Indian Macro Scenario >>> Milk Consumption

Source: National Dairy Development Board, and GOI 9/25/2014 Indian Dairy & Lactose Free Market

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Product Organised Market

Value ($ bn) Growth

Rate Remarks

Liquid Milk 11 20% Dairy cooperatives have a major presence in this segment e.g. Amul, Verka (Punjab), Nandini (Karnataka), Aavin (TN), Saras (Rajasthan). Private players like Hatsun Agro, Creamline Dairy also have good market share in liquid milk

Milk Powder / Sweets / Dairy Whitener

0.8 10-15% In Dairy Whitener, Amul is a leader with 45% share, followed by Nestle at 23%, Britannia at 5%, and others (Dynamix Dairy, Sterling Agro, Harayana Milk Foods, Mohan Foods, Modern Dairy, K Dairy)

Ghee 0.5 8-10% Amul and Sagar are two well-known brands. Other strong regional brands Saras, Verka, Nandini, and Madhusudhan

Ice Cream 0.3 20% 70% ice-cream market is controlled by organised players. Amul (25%), Kwality (15%), Vadilal (10%) and others (Mother Dairy, Hatsun, Dinshaw, Naturals and many more)

Butter 0.2 8% Amul is leader with 80% MS. Other strong regional players are Mother Dairy, Verka, Punjab Dairy, Vijaya etc.

Dahi 0.2 20% Karnataka Dairy Co-operative (Nadini) is the leader in the ‘pouch dahi’, while Amul is leader in ‘set curd’ segment. Other players are Mother Dairy, Nestle, Britannia and Parag

Cheese 0.2 25% Processed cheese as 70% share of the total cheese sold. Key players are Amul, Vijaya, Verka, Vadilal, Britannia, Kraft, Dabon and Danone.

Flavoured Milk 0.2 20% Amul is the leader with 75% share. Other brands are Mother Dairy (7%), Verka, Nandini, Vijaya, Saras etc.

Paneer 0.06 10-12% Amul share is around 50%. Share of Mother Dairy, Milkfed have 20% each. Reliance has also entered this space

Source: National Dairy Development Board

Market Scenario >>> Category Wise Market Size


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Company Condensed Milk / UHT

Ghee Milk Food

Cheese Paneer Butter Whey Yoghurt Ice

cream Milk

Powder Flavoured

Milk Lactose

Amul √ √ √ √ √ √ √ √ √ √

ADF Food √ √

Britannia √ √ √ √ √ √ √

Dynamix √ √ √ √ √ √ √ √ √

Heritage Foods √ √ √ √ √ √ √ √ √ √

Herman Milk Foods √ √ √ √

Hatsun Agro √ √ √ √ √ √ √ √ √ √

Mother Dairy √ √ √ √ √ √ √ √

Mahaan Foods √ √ √ √

Parag Foods √ √ √ √ √ √ √ √

Vadilal √

VRS Foods √ √ √ √ √ √ √

Vidya Dairy √ √ √ √ √

Kraft Foods √

Livon √ √

Nestle √ √ √ √ √ √

Danone √ √ √

Macro Environment >>> Key Companies Product Portfolio


Macro Scenario >>> Growth Drivers • The country's dairy market will continue to grow at about x% annually till

2019-20 – The market share of value-added products is likely to increase to 31% from the current

21% during this time period

• In addition to milk, other categories will also drive growth – The cheese production is increasing by 10-12% by volume and 16-17% by value

– Similarly ice-cream industry is growing by 12-15% with per capita consumption of around 250 ml (in-significant compared to global standards)

• 60% ice-cream market controlled by the organised players

– UHT milk consumption will grow by 15-20%, though its base remains smaller

• The key factors driving growth are – Increased consumer interest in higher protein diets

– High affordability due to growing disposable income & rising awareness

– Availability of dairy through channels such as organised retail and food service segments

• Concern over the quality of the lose milk

• 30% of dairy products bought at modern stores compared to just 18% in 2007-2009

– Globally this figure is much higher

12 Source: Publically Available Data 9/25/2014 Indian Dairy & Lactose Free Market


Structure of Dairy Industry in India

Dairy Structure and Key Players

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Indian Dairy Industry

Organised

Private Dairies (National)

Private Dairies (international)

Cooperative Societies

Government

Unorganised

Key national players

Aarey Milk Parag

Aravind Foods Mahan Foods

Britannia Vadilal

Dynamic Dairy Vidya Dairy

Mother Dairy Gowvardhan

VRS Foods

International (Existing)

International (New)

Nestle Arla Foods

Danone Land O’ Lakes Inc.

Hatson Coke

Fonterra Pepsi

Arla Foods

Kerry Group

Schreiber Foods-Dynamix

Number of milk producers cooperative unions – x Number of local dairy cooperatives – x Number of state cooperatives – x Share of unorganised sector in dairy production –x% Cooperatives control the supply chain linkages in the milk industry; they account of the x%milk processed in India


Indian Dairy Industry Supply Chain

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Inputs for Dairying

Milk Production

Milk Collection

Chilling & Bulk

Cooling

Transportation of Chilled Milk

Processing &

Packaging

Marketing & Distribution

Consumer

•Large Scale Farmers •Medium Scale Farmers •Small Farmers

•Fodder Farming •Animal Feed •Veterinary Aid •Labour

•Cooperative Societies •Milk Aggregators

•Chilling Centre at Village Level •Bulk Cooling at District Level

•Refrigerated Vans •Insulated Milk Tankers

•Cooperative Plant •Private Plant •Govt. Plant

•Own Retail Outlets •Supermarkets •Any Retail Outlets

Unorganised Sector Local Milkmen

Confectionaries / Restaurants

Value Added Products

Long supply chain means large gap between cost or production & price to consumer

Cost of production, in India, is around $ x/kg; consumer price is around $ y/kg



Indian Consumer & Milk

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Going to a dairy farm to buy milk

Lose milk being delivered at home

Buying pouch milk at a corner shop

Buying high grade milk at a mall

With this evolution, market for other dairy products also started to grow faster

Evolution of Milk Purchase by Indian Consumers


Indian Consumer Spoilt of Choices

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Lose / open milk Pouch Milk UHT Milk Flavoured Milk

Homemade Yogurt Packed Yogurt Flavoured Yogurt Frozen Yogurt

Gradually Indian consumer is evolving and is open to explore newer alternate options


Indian Consumer Attitude to Milk

• Milk is ingrained very deep in the Indian culture – It’s use ranges from for various religious practices to everyday use

• Even today, among large sections of masses, cow is a very revered animal. And as they say: – ‘We should take care of the cow as the cow takes care of us’.

• Indian family attaches many ‘do good’ properties with milk – At all levels – physical, mental and spiritual

• So a mother will insist that her child eats a glass of milk before going to school, even if s/he miss out on other breakfast

• Care giver of a patient will insist that s/he drink milk for sure

• A fasting person will either drink milk or eat products based on it only

• Thus, in Indian consumer opinion, a milk can do no harm

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Milk has an exalted status in the Indian vegetarian diet; it is ‘superior’ to other food items


• Dairy contributes to 16% spend on food – 18% in urban areas and 15% in rural areas

• The share of milk and milk products in protein intake is 9% in rural India and 13% in urban India

• It was above the national average in North Indian states – Haryana (rural: 25%; urban: 20%)

– Punjab (rural: 23%; urban: 22%)

– Rajasthan (rural: 18%; urban: 17%), and

– Gujarat (rural: 15%; urban: 16%).

• As affluent level rises, contribution of milk and milk products to protein intake increases – From 5% in the lowest to 18% in the highest class, for urban areas

– From 3% in the lowest to 15% in the highest in the rural areas

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In line with the trend, contribution of milk for protein intake is highest in high milk producing states

Milk Key Component in Indian Consumer Diet

Source: National Sample Survey – Nutrition Intake 9/25/2014 Indian Dairy & Lactose Free Market

• Milk is purchased everyday – Though, people who buy UHT milk, buy supply for 2-3 weeks at one go

• Milk being a staple everyday use product – High brand loyalty >>> very reluctantly people buy another brand – No role of advertising or branding

• Other milk products, like butter or Dahi, people do buy for 2/3 days to a week together – For these products also, they have their ‘fixed / preferred’ brands – Other than national brands, lot of regional brands are also in the market

• When it comes to other dairy products (yogurt, cheese, flavoured milk etc.), then people do get influenced by – Company / product brand name – Packaging – Advertising

• Online purchase of grocery products (including packed dairy products) is slowly gaining traction

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Buying milk is like a xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Indian Consumer Dairy Products Purchase Behaviour



Lactose Intolerance in India

What is Lactose Intolerance

• Lactose Intolerance is a disorder consisting of an inability to digest milk and milk products – Absence or deficiency of lactase results in an inability to hydrolyze

(break down a compound by chemical reaction with water) lactose

• There are three types of lactose intolerance – Primary lactose intolerance

• Normal result of aging for some people

– Secondary lactose intolerance

• Result of illness or injury

– Congenital lactose intolerance

• Condition you're born with


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Type How it happens Symptoms

Primary Lactose Intolerance

Lactase concentrations are at their greatest shortly after birth and rapidly decline after the usual age of weaning. The timing and rate of this decline is genetically determined. Primary lactase deficiency has a higher prevalence in those ethnic/geographical groups whose ancestors did not drink milk as a nutrient. It is one of the most common type of lactose intolerance

Bloating, Pain or cramps in the lower belly. Gurgling or rumbling sounds in the lower belly. Gas. Loose stools or diarrhoea. Sometimes the stools are foamy. Throwing up. Solution is usually dietary changes

Secondary Lactose Intolerance

It is acquired intolerance and is transitory. It can occur as the result of any gastrointestinal illness that alters the nature of the gut mucosa. This is common in children with rotaviral (and other infectious) diarrhoea. Giardiasis, cryptosporidiosis and other parasitic infections of the proximal small intestine often lead to lactose malabsorption.

Flatulence, dyspepsia, abdominal distension, stomach rumbling, Gas. Solution ranges from diet changes to taking digestive enzymes regularly

Congenital Lactose Intolerance

Also called alactasia, it is the life-long absence of lactase. This is an extremely rare condition that is apparent at birth, with the development of persistent diarrhoea soon after milk is introduced. Children with alactasia have otherwise normal intestinal mucosa. This condition has been diagnosed in less than 50 people world-wide

Constant diarrhoea during early childhood

Primary Lactose Intolerance xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Mapping Different Types of LI


• Key findings of two clinical studies – One done in North India (at AIIMS, on 124 subjects) and

– Another in South India (at Medical College Hospital, Trivandrum and JIPMER Hospital, Pondicherry, on 60 subjects)

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• For South India research, numbers marked with asterisk are lactose intolerant; they total up to 40, indicating 66% intolerance

• For North Indians, though overall lactose intolerance was just 27.4%, it was higher among 31-50 yrs and > 70 yrs segment

Lactose Intolerance in India >>> Clinical Studies

Source: Excerpts from original research report 9/25/2014 Indian Dairy & Lactose Free Market

Similar Findings From the Previous Studies

• Earlier findings of the same research team were re-confirmed – 14.9% of lactose intolerance among Punjabi pregnant and non-

pregnant women

• Among non-Punjabi women it was 34.8%

– In another study, they found lactose intolerance at 27.1% among North Indians

– Another earlier study on Indians and Pakistanis residing in Canada also indicated lower incidence of lactose intolerance


Incidence of Lactose Intolerance in India

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Trivandrum (66.6%)

Pondicherry (66.6%)

Hyderabad (50%)

Mumbai (62%)

Delhi (27.8%)

Some regions of India xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Source: IFCN Report 9/25/2014 Indian Dairy & Lactose Free Market

Global Incidence of Lactose Intolerance

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Overall Lactose intolerance in India is in the range of 40-50%

Source: http://en.wikipedia.org/wiki/File:LacIntol-World2.png 9/25/2014 Indian Dairy & Lactose Free Market

Global Lactose Free Market Size

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Region 2011 2012 2013 2014 2015

World 9097.4 9924.5 10859.5 11900.2 13194.2

North America 3775.6 3953.4 4138.6 4327.0 4505.0

Western Europe 2619.1 2743.5 2860.4 2974.4 3086.0

Latin America 1162.9 1526.5 1985.0 2536.3 3344.8

Eastern Europe 844.9 964.7 1100.4 1251.5 1405.8

Asia Pacific 345.8 370.7 398.7 429.3 462.7

Australasia 196.4 206.0 214.1 222.1 230.5

Middle East and Africa 152.7 159.8 162.4 159.6 159.4

India would be xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Source: Euromonitor 9/25/2014 Indian Dairy & Lactose Free Market

Lactose Intolerance Awareness in India

• Low awareness about the disease, though very high awareness about the symptoms – Consumers narrate high incidence / prevalence of lactose intolerance

related symptoms like – bloating, gas, heaviness, stomach pain etc.

• However they attribute these symptoms to gas, acidity, indigestion or chronic gas & acidity

• For them primary source of these symptoms is fatty / oily food, irregular meal habits, stress or other associated reasons

• Hence the treatment they most often adopt is home remedies / OTC antacids / ayurvedic remedies, without so much focusing on the diet part

– When the ‘gas & acidity’ problem persists, they visit the doctor

• However, in most cases doctors prescribe digestive enzymes (with or without Lactase), but don’t mention the reason – lactose intolerance

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Possibly high incidence, low awareness, leading to lesser focus on it


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Gas + Stomach Pain

Burping

Flatulence

Heaviness

Gas + Acidity + Headache

Gas + Acidity

Acidity

Gas

Chronic Cases Handled by Doctors Per Week

Fig in %

In a previous study, it was found that large number of chronic cases of above symptoms were seen by the doctors (GP/CP/specialists); many more never visit

doctors, just keep trying things on their own

Sample: 245 doctors

Average No. of patients with LI related symptoms


Digestive Health Treatment Continuum

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Traditional & Ayurvedic

Digestive pills

‘Gastric‘ OTC Medicines

Self treatment Doctor’s prescription

‘MEDICINAL ‘

majority

Digestive enzymes clearly comes under ‘doctor’s prescription’ domain; they are the preferred choice of doctors for chronic cases

First use of enzymes is through doctors; but, once the doctor prescribes an enzyme, consumers continue to take it on their own for a long period


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Active energy & Mental alertness

Fortification and strength via

protein supply

Building better digestive capacity

Reduces negativity

Removes discomfort

Immediate relief

Combats the effects of an ageing, sluggish

digestive system

Enables digestion of complex

substances eg: fats

Chronic cases >>> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Consumer Perception of OTC Drugs & Enzymes



Digestive Enzyme and Dietetic Agents

Digestive Enzymes

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Company (Value, $ mn, MRP) Brand 2010 2011 2012 CAGR

GROSS TOTAL 53 58 73 17%

ARISTO PHARMACEUTICALS PVT.LTD ARISTOZYME - ARI 10 10 13 16%

UNICHEM LABORATORIES LTD UNIENZYME - UCL 6 6 9 24%

RAPTAKOS, BRETT & CO. LTD. NEOPEPTINE - RPK 6 6 9 24%

ABBOTT INDIA LTD. CREON - ABB 4 6 7 24%

SHREYA LIFE SCIENCES PVT. LTD DIGEPLEX - SLS 4 4 5 12%

BIOLOGICAL E LTD BESTOZYME - BIE 2 2 3 22%

ELDER PHARMACEUTICALS LTD ENZAR - ELD 2 2 3 10%

SUN PHARMACEUTICAL INDUSTRIES LTD PANLIPASE - AML 1 1 2 39%

MEDLEY PHARMACEUTICALS XYMEX - MEL 2 2 2 8%

RANBAXY LABORATORIES LTD PEPFIZ - RBX 2 2 2 -2%

None of the top 10 brands have lactase as one of the ingredient; hence opportunity to explore; as mentioned earlier, enzymes are prescribed for chronic cases; patients take them only on doctor’s

advice

Source: AIOCD Pharma Data 9/25/2014 Indian Dairy & Lactose Free Market

Dietetic Agents >>> Protein Supplements

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ABBOTT INDIA LTD. PEDIASURE - ABB 4 7 11 61%

BRITISH BIOLOGICAL B PROTIN - BRI 8 8 10 14%

ABBOTT INDIA LTD. PEDIASURE COMPLETE - ABB 5 8 10 35%

ZYDUS CADILA GRD - ZYD 5 7 9 28%

HEINZ INDIA LTD COMPLAN - HEI 3 5 9 70%

BRITISH BIOLOGICAL D PROTIN - BRI 7 7 9 12%

RAPTAKOS, BRETT & CO. LTD. THREPTIN - RPK 3 4 6 26%

ALBERT DAVID ALAMIN SN - ALB 3 3 4 11%

BRITISH BIOLOGICAL PRO PL - BRI 3 3 4 18%

GALPHA LABORATORIES LTD PROTIRON - GAL 0 1 3 246%

Among top 10 brands, none is lactose free; however in this segment there are few Soya based products, like Prosoyal (FDC), Isomil (Abbott); they are positioned as supplements and an alternate to

milk; Isomil is positioned for kids; most of these supplements are also taken on doctor’s advice


Dietetic Agents >>> Infant Nutrition

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Products like Zerolac, Simyl, Nusobee Soya (not in top 10) are targeted at infants who are milk intolerant or lactose intolerant; the category is largely doctor driven; all the top

brands are doctor marketed



WOCKHARDT LTD DEXOLAC 1 - WCK 6 8 10 29%

DANONE DEXOLAC - DANO 7 8 10 20%

RAPTAKOS, BRETT & CO. LTD. ZEROLAC - RPK 5 6 9 34%

ABBOTT INDIA LTD. PEDIA COMP - ABB 4 9 8 43%

DANONE NUSOBEE CASEIN - DANO 3 4 7 47%


RAPTAKOS, BRETT & CO. LTD. LACTODEX - RPK 3 4 5 26%

FDC LTD. SIMYL MCT - FDC 2 3 4 37%


DANONE EASUM - DANO 2 3 4 39%


Dietetic Agents >>> Other Nutrition

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Ensure is the only product, among the top 10, which is lactose free and gluten free; most of the brands are for people with deficiency or recovering from some illness; hence again used based on

doctor’s advice



ABBOTT INDIA LTD. ENSURE - ABB 4 6 7 33%

ABBOTT INDIA LTD. HEPTRAL - ABB 0 3 5 354%

ALEMBIC LTD SHARKOFERROL - ALE 3 3 4 5%

ABBOTT INDIA LTD. GLUCERNA - ABB 1 2 3 51%

WOCKHARDT LTD SAMMY - WCK 3 3 3 2%

MANKIND PHARMACEUTICALS LTD. ARGIPREG - MKP 0 1 2 214%

MEYER ORGANICS PVT. LTD OVACARE FORTE - MEY 0 2 2 546%

ABBOTT INDIA LTD. MAMA S BEST - ABB 0 1 2 52%

SUN PHARMACEUTICAL INDUSTRIES LTD ADESAM - AML 1 2 2 19%

MEYER ORGANICS PVT. LTD OLIGOCARE - MEY 1 1 2 7%



Different Companies in Lactose Free Domain

Ingredients >>> Richcore Lifesciences

• Richcore Lifesciences – Bangalore based, Richcore is an application

research oriented biotech company dedicated to developing sustainable and eco-friendly enzyme solutions that improve the quality of life and help conserve Food, Water and Energy.

– Richcore’s lactase enzyme, RichLacto™ - a form of lactase enzyme, enables conversion of lactose into more easily digestible glucose and galactose thereby eliminating ill-effects arising due to non digestibility of lactose

– Richcore's RichLacto™ enables hydrolysis of lactose in milk making milk sweeter and easily digestible by the lactose intolerant population.

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• Richlacto™ produces milk and other dairy products that are ‘lactose free’ bringing a larger population under the umbrella of consumers of dairy products

• Richlacto™ can be added to milk at home itself to produce lactose-free milk

• Richlacto™ treated milk, when used for making dairy products like ice-creams, eliminates the possibility of sandiness

• Increase sweetness: Richlacto™ produces glucose and galactose as end products that are 60% sweeter than lactose which makes the milk naturally sweeter. Thus lesser amounts of sweetener is required


Ingredients >>>

• Novozymes A/S – A Denmark headquartered company, it’s

a industrial biotechnology company • It’s core business focus is industrial

enzymes, microorganisms, and biopolymers.

– It set up liaison office in India in 1983, and in 2013, it started High throughput screening in R&D and was recognized as top “Bioindustrial Company in India’ by Biospectrum-ABLE for the 6th time

– Lactozym® Pure - Novozymes Lactozym® Pure increases your potential customer base while improving your customers’ ability to savor milk products. This exceptionally pure, cost-effective technology reliably eliminates lactose based on nature’s know-how.

– It’s India is also located in Bangalore

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• Lactozym® Pure - Making milk digestible – Naturally good business

• Lactozym® Pure allows increased process flexibility as Lactozym Pure is available in a variety of formulation strengths, while the higher product purity also enables improved filterability in UHT processes.

• Lactozym® Pure primarily degrades lactose into glucose and galactose, making the products naturally sweeter. Ice cream additionally boasts a smoother, less grainy mouthfeel as no lactose crystals form in treated products.


Ingredients >>>

• Kerry Group

– Set-up in 1972, it is an Ireland headquartered company with a revenue of € 5.8 billion

– Company provides the most innovative portfolio of Taste & Nutrition Systems and Functional Ingredients & Actives for the global food, beverage and pharmaceutical industries. Our consumer foods division, Kerry Foods, is also a leading consumer foods processor and supplier in selected EU markets.

– Kerry Ingredients India is the leading supplier of functional ingredients, Dairy Stabiliser blends & Davinci range of speciality Beverage solutions.

– Its two brands - Chees-Treme™ and Chez-Tone™, offers spray dried powders manufactured from natural cheese, dairy products and other functional ingredients.

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• Last year Kerry Ingredients Pvt Ltd acquired Lactose (India), a company listed on the BSE.

• Lactose (India) Limited is an India-based company engaged in the manufacturing and trading of pharmaceutical products. The Company produces lactose powder. The Company’s plant is located at Vadodara, Gujarat.

• It’s 2012-2013 revenue was close to $ 7.8 mn, with net profit of less than $ 0.16 mn


Ready-to-Consume Products >>>

• Valio Ltd. – Valio is owned by Finnish milk producers

and is the guardian of the healthy Finnish lifestyle.

– Valio’s vast portfolio of milk drinks, cheeses, spreads, juices and functional foods make up many of the most loved brands in the Finnish marketplace. Sales in Finland totalled 2000 million Euros in 2012.

– For more than ten years Valio has successfully developed and manufactured lactose free products in many markets and has successfully licensed the technology to dairy partners.

– In India, it is present through its tie-up with Cavinkare

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• CavinKare – it’s dairy portfolio comprises milk, UHT milk, curds. Paneer, ghee and others

• With Valio technology, it has launched Cavin’s Pro Health , a Probiotic curd (local style thick yoghurt)


• Bega Cheese Limited. & Pauls

– An Australian company with 100 years heritage with core expertise in cheese , with many variants in its portfolio

– The company was founded as a dairy co-operative in 1899, and many of the current owners of Bega Cheese are 100 plus dairy farmers that supply milk to the factory which is then turned into many of our famous Bega cheddar cheeses.

– Pauls has been making delicious dairy products for 80 years. Pauls is Australia’s number 1 milk and dairy brand

– In India these brands are available through iMBiz India Pvt Ltd, an importer

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• iMBiz India Pvt Ltd specialises in import of Branded Dairy Products such as Bega Cheese, Pauls Milk Products and other FMCG processed food items such as Baby food, fruit juice, confectionaries etc.

• Currently, Bega cheese and Pauls Zymil easy to digest milk, are available in Kolkata only.

• Its product range is - Pasteurized Creams, Sterilized Creams, Whipping Creams, Reduced Fat Creams, Milk Powder, Cheeses, Milk, Whey Powders, Cream Butters, Margarines, Condensed Milk



• The Lactalis Groupe

– Lactalis, a family-owned dairy group based in Laval (Mayenne), in west of France.

– It is the number 1 dairy group in the world. Number 1 dairy and cheese group, number 1 milk collector and number 1 cheese producer in Europe.

– President (dairy product brand) is sold in more than 145 countries and represent more than € 1.6 billion of turnover and Galbani (cheese) is sold in more than 100 countries with €1.4 billion of turnover.

– In India, it recently acquired Tirumala Milk Products from PE funds & owners

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• Tirumala Milk Products (P) Ltd., established in 1998. It is one of the fastest growing private sector enterprises in India

• At the time of acquisition by Lactalis, company turnover was around $ 250 mn. Lactalis paid $ 275 mn for the acquisition

• The company’s lead brand is Gowardhan

• Product range, besides milk, includes sterilized Flavoured Milk, Lassi, Khova, Milk Cake, Mysore pak, Panner,Ice creams, Buttter, Ghee and Milk Powder



• White Cub

– A brand owned by the company - Compassionate Choices Pvt. Ltd., based in Gurgaon.

– Company motto is – “India's very own Dairy Free Ice cream. 100% Cholesterol Free | 100% Trans Fat Free”

– It offers range of three products – dairy free ice creams, frappes, and Sundaes

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• Benefits of White Cub – Dairy Free Icecream

– A whole new concept of looking at foods. E.g., milk need not be always the dairy produce, rather it may be from interesting stuff like Almonds, Coconut, Soy

– It lets lactose intolerant people enjoy creamy ‘ice creams’

– It promises Zero Cholesterol, Zero Transfats & abundance of Lauric acid, Minerals like Calcium, Magnesium, Potassium, Iron, Phosphorus and Zinc, Phytochemicals like Saponin, Phytosterols and Phenolic acid and

Anticarcinogens like Genistein.




Few Known Food & Dairy Companies in South India

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• Wide product portfolio – Cavinkare has presence across 6 segments – Personal Care,

Professional Care, Food, Snacks, Dairy Products and Beverages

• Dairy Portfolio – Milk, UHT Milk, Paneer, Diet Paneer, Curd, Milkshake and Ghee

• Strategic Alliances – CavinKare has alliances in both personal care and consumer health

– It has alliance with COTY Corporation (a French cosmetic company) – it markets Adidas and Jovan brands

– It also has alliance with Haw Par Corporation for its well-known topical analgesic brand – Tiger Balm (earlier it was sold by Elder)

• Company Revenue: close to $ 200 mn


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• Wide product portfolio – Supplements across General Health, Women’s Health, Children’s

Health, GI Health, Weight Management, Diabetes Management etc.

• Well Known Brands – B-Protin, D-Protin, Kids Pro, Meno Pro, Pro Gurt and others

– B-Protin and D-Protin are leading bands in their respective segments – General Health Supplements and Diabetic Supplements

– Many of these brands enjoy good doctor equity, consumer equity and trade equity

• Company Revenue: around $ 18 mn


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• Product Portfolio – Dairy Whitener, Skimmed Milk Powder, Agmark Certified Ghee, Butter,

Cooking Butter, Milk, Varieties of Curd, Paneer and Buttermilk through the Brand Hatsun Milk & Milk Products

• Key Brands are – Arakya: its milk brand with full cream, toned and double toned milk

– Hatsuns: Ghee, Butter, Cooking Butter, Rich Curd, Lite Curd, Classic Curd, Dairy Whitener, Skimmed Milk Powder, and Buttermilk

– Arun: Ice cream

– Dairy Ingredients: Milk Powder, Full Cream Milk Powder, Skimmed Milk Powder, Dairy Whitener, Cream Powder, AMF, Butter Oil, Frozen Cream, Ghee, Lactic Butter, Salted Butter, Unsalted sweet cream butter

– Ibaco: Chain of ice cream parlours



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• Product Portfolio – Milk, Curd, Butter Milk, Flavoured Milk, Ghee, Paneer, Cooking Butter,

and Doodh Peda (a type of milk based sweet)

• All the products are sold under the corporate brand name – With different product functional description

• Company also has its own chain of parlours – They are also under Dodla name, and stock their entire product

portfolio; currently there are 100+ exclusive parlours

• Company Revenue: little over $ 100 mn


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• Product Portfolio – Milk, Milk Products, Ghee & Skimmed Milk Powder, Ice creams

• All its products are sold under Jersey brand name – Jersey Milk: its milk has 9 sub-brands – Fresh, Premium, Bandhan,,

Super, Rich, Gold, Healthy, FarmCow, and Slim,

– Jersey Milk Products: Curd (including low fat curd), lassi, buttermilk, paneer, cooking butter, flavoured milk, and swwets

– Jersey Ghee: cow ghee, buffalo ghee, full boiled ghee and skimmed milk powder

– Jersey ice cream: wide range

– Jersey Parlours:



Disclaimer

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indian dairy industry (& potential for lactose free products)

Business

x mn x

mother dairy

punjab dairy

creamline dairy

dairy cooperatives

modern dairy

dynamix dairy

x bnmilk dairy products