SUMMER TRAINING REPORT ON

Exploration of Whey Powder Industry through B2B

Marketing A New Venture
Marketing-

For

Amul Dairy

By

Jalaj Patel
76

In Partial Fulfillment for the award of the degree

Post Graduate Diploma In Management
2009-11

New Delhi Institute of Management

50(B&C),60, Tughlakabad Institutional Area, New Delhi-110062
Delhi
E-mail: info@ndimdelhi.org Website: www.ndimdelhi.org

1
 SUMMER TRAINING REPORT ON

Exploration of Whey Powder Industry through

B2B Marketing- A New Venture
For
Kaira District Co-op. Milk Producer’s Union Ltd.

Under the supervision

Of
Dr. Gopal Shukla
Sr. Executive (Sales and Marketing)
Submitted By- Submitted to-
Jalaj Patel Prof. Anita Sexena

2
 Certificate

This is to certify that Mr. Jalaj Patel student of P.G.D.M. from New Delhi
Institute of Management has successfully completed his Industrial training at
Amul Dairy, Anand (Gujarat) during the year 2009-10 for a period of 02 months
in partial fulfilment of P.G.D.M.

He also has submitted his report on “Exploration of Whey Powder industry

through B2B marketing- A new venture”.

We wish him success in future endeavours.

J. P. Bhoi

Senior Officer (P&A)

3
 Acknowledgement

I, the author, would like to express my deep gratitude for the support and
encouragement provided by my family, friends, colleagues, and major advisor.
I am thankful to Mr.Rahul Shrivastava, Managing Director, Amul and Dr. K.
Rathnam, General Manager (Production), Amul for their aid in guidance as well
as support throughout this journey.
Dr. Gopal Shukla, Sr. Executive (Sales and Marketing), my guide, deserves
much gratitude for taking a chance on commerce student with no knowledge of
food science what so ever, and for holding my hands and teaching me much.
Special thanks to my support guides, Dr. Preeti G. Shukla, Sr. Executive HR,
Mr. Arun Kumar Singh, Sr. Executive (GCMMF), Ms. K. Bency, AQMC and
Mr. Mukesh Dave, Sr. Executive( Exports).
A particular thanks to Mr. B.D. Patel, Manager, Mr. B. K. Singh, Assistant
Manager, Mr. Ranjeet, Sr. Executive, Mr. Ravindra, Executive, Mr. Milaap, Sr.
Officer and all the staff of Khatraj Satellite Dairy who were friendly,
welcoming and participative in resolving technical issues.
I am grateful to my project coordinator Mr. Jignesh Bhoi for directing me to the
right people and giving freedom to work at my own pace.
I record with appreciation the help rendered by Mr. Devendra J. Parmar and Ms.
Sejal R. Pal, Department of Dispatch.
Sincere appreciation is extended to Prof. Anita Sexena of New Delhi Institute of
Management, for providing me with the assistance for effective and efficient
execution of the project.

4
 Declaration

I, Jalaj Patel, student of New Delhi Institute of Management, Batch 2009-2011

declare that every part of the Project Report “Exploration of Whey Powder
Industry through B2B Marketing- A New venture” that I have submitted is
original.
I was in regular contact with the nominated guide and contacted six times for
discussing the project.

Date of project submission:

Signature of the students:

Faculty’s Comment:

Signature of Faculty guide

Prof. Anita Sexana

5
 Table of Content

Sl. No. CONTENT PAGE NO.

1. EXECUTIVE SUMMARY 8

2. WORLD DAIRY SITUATION 9-14

3. AMUL- THE TASTE OF INDIA 15-21

4. GOVERNMENT POLICIES AND TAXATION. 22

5. OBJECTIVE OF THE PROJECT 23

6. JOB ASSIGNED 24

7. KEY RESPONSIBILITY 25

8. STAGES OF THE PROJECT 26-27

9. LITERATURE REVIEW 28-47

10. MARKET FOR WHEY POWDER 48-59

11. SWOT ANALYSIS 60-61

6
12. RESEARCH METHODOLOGY 62

13. MAJOR LEARNING- BUSINESS TO BUSINESS 63-64

MARKETING

14. CONSTRAINT FACED 65

15. FINDINGS AND CONCLUSIONS 66-67

16. SUGGESTIONS AND RECOMMENDATIONS. 68-69

17. ANNEXURE 70-79

18. REFERENCES 80

7
 Executive Summary

Kaira District Co-Operative Milk Producer’s Union Ltd., popularly known as

Amul, has set up Khatraj Satellite Dairy to process 500000 litres of Cheese
Whey per day into value added products such as Demineralised Whey Powder,
WPC, WPI, Lactose etc. The project has been envisaged keeping in view the
fact that Amul is the largest manufacturer of Processed Cheese and Paneer in
India. The demand for these products is growing and therefore production of all
the varieties of Cheese and Paneer is likely to go up in near future. At present
Cheese plant at Khatraj is generating approximately 350000 litres of Cheese
Whey per day, which is expected to go up to 700000 litres by 2012.

India is the leading milk producer in the world with the milk production of 110
Million Tonnes per annum, and expected to grow to 173 Million Tonnes in next
15 years as per NDDB (National Dairy Development Board). Out of this milk
production 55 percent is sold as liquid milk and remaining 45 percent is
converted into products. During such conversion many by-products are
generated, Whey is one such by-product of cheese, paneer, chhana etc.
Nutritionally the most valuable components are whey proteins.

Whey can be converted into a range of products viz. Whey, lactose, high
protein whey powders, whey protein concentrate, granulated high protein whey
powders that can be used in infant formulas, weaning foods, bakery and
confectionery products, dairy products, pharmaceuticals and nutrition
supplements.

The global whey derivatives market is growing at around an average of 10

percent annually, compared with only 4 percent growth in the ingredient
industry as a whole. The global Whey production in 2008 was 186 million
metric tonne worth US$11.16 billion.

This project’s main objective was to develop business to business relationship,

for the purpose of consumption of 1800 MT per month production of Whey
Powder, for Amul.

8
 World Dairy Market Situation

In 2009, world’s milk production has slowed down, in comparison to 2008. The
total world milk production in 2009 was 695 million tonnes, as compared to 689
million tonnes (approx.) in 2008, as per International Dairy Federation.

800

700

600

500
Other Milk
400
Buffalo Milk
300 Cow Milk

200

100

0
1997 2005 2008 2009

Source: ZMB, IDF, FAOSTAT.

In 1997, cow’s milk constitutes 467 million tonnes, buffalo’s milk 60 million
tonnes and other milk 21 million tonnes. In 2005, cow’s milk production was
million tonnes, buffalo’s milk production was 79 million tonnes and other milk
production was 9 million tonnes. Out of 689 million tonnes of milk production
in 2008, cow’s milk constitutes 577 million tonnes, buffalo’s milk was 88
million tonnes, and other milk constitutes 24 million tonnes. In 2009, cow’s
milk production accounts to 580 million tonnes, buffalo’s milk accounts to 89
million tonnes, and other milk constitutes 26 million tonnes.

With 580 million tonnes in 2009, cow milk hold’s the share of 83.5 percent as
compared to 84 percent in 2008, it increased by 3.5 million tonnes or 0.6
percent to 580 million tonnes. This would be the lowest growth rate since the
mid 1990s. In 2007 and 2008 the growth rates were 1.7 percent.

9
The buffalo milk production is increasing faster than cow milk production. The
worldwide production of buffalo milk was 89 million tonnes in 2009, and will
continue to grow further. Between 1998 and 2008, it increased on an average by
more than 3.5 percent annually. Buffalo milk currently constitutes around 13
percent of the total world milk production compared to 11 percent ten years ago.
Almost 90 percent of the total volumes are solely produced in India and
Pakistan, smaller volumes in Egypt, China and Italy.

GROWTH RATE OF COW, BUFFALO AND OTHER MILK

Cow Milk
3
Buffalo Milk
Other Milk
2

0
2002 2005 2007 2008

Source: ZMIB, IDF, FOASTAT.

Yearly growth rate of milk production in percentage, as per above graph

YEAR COW MILK BUFFALO OTHER MILK

MILK
2002 2.5 4.2 0.9
2005 3.0 3.5 2.8
2007 1.7 4.2 0.5
2008 1.7 5.4 0.1

The deliveries of milk to dairies are increasing worldwide, but not with the
same speed as world milk production. In 2009, 369 million tonnes of milk has
been reported as delivered to dairies, 3 million tonnes more than the previous
10
year, which was 366 million tonnes in 2008. These volumes represent 53
percent of the total world milk production. The share of milk processed in
dairies is very different from region to region. In developed countries like
Northern America, EU-15 and Japan, it is close to 100 percent of cow milk
production. In Eastern Europe the share is below this level, but increasing. In
countries like Russia, India, Pakistan and parts of South America the share is
substantially lower. In some countries a huge “informal sector” with non-
industrial-buyers exists.

GROWTH OF MILK DELIVERIES IS SLOWING

DOWN (FIGURES IN MILLION TONNES)
380
370
360
350
340
330
320
310
300
2002 2005 2008 2009

Source: ZMB, national committees of IDF, National Statistics.

In 2009, a small increase of worldwide industrial milk processing has been

recorded. As response to low milk prices a decline of milk deliveries in some
countries is likely which will compensate the reduced growth in other countries.
The low prices for dairy products, the reduced demand from the international
and single market, the financial crises and desperate dairy farmers are huge
challenges for the dairy industry worldwide.

As in the recent years, the strongest gains in production for 2009 have been
recorded in Asia, in particular in India. In China the growth rate has reduced as
a consequence of weaker demand after the melamine scandal. Moreover, the
milk volumes in Japan and Korea did not change in 2009.

11
In the US, milk production surged in the first half of 2008, whereas grew slowly
in the second half and recorded a decline in 2009, for the first time since 2001
as a response to historically low farm milk prices and relatively high costs of
production.

In the EU, increase in production was a late response to the higher milk prices
since mid 2007, in particular in the first quarter of 2008 and in France. NO
responses of farmers to low milk prices was observed in mid 2009, in most
member countries. The surprising enhancement of milk quotas for all EU
member states by 2 percent, effective from 1st April 2008, did not become
additional driver for production growth. Quotas were further increased in 2009
by 1 percent more.

Production in Brazil and Chile exceeded self-sufficiency and allowed increasing

exports in recent years. In Argentina, more milk was produced because of better
weather conditions.

In the first half of 2009, production stagnated, prices decreased and a sever
crisis was observed in the Swiss dairy sector. In Oceania, weather conditions
seem to have more influence on milk production than in other regions. Milk
output recovered in New Zealand in the 2009 season, which ended in June
2009.

Indian Dairy Market

India maintains its record of being the world’s largest milk producer, with an
estimated 110 million tonnes in 2008-2009. The NDDB i.e. National Dairy
Development Board prepared a Rs.173 billion plan for the next 15 years to
increase milk production with better productivity, substantially strengthening
and expanding the infrastructure for procurement and human resource
development. The NDDB has also set up a Centre for Analysis and Learning in
Livestock and Food at Anand, in central Gujarat. It would provide reliable and
efficient laboratory services for dairy, livestock and food sectors.

12
Industrial Cheese Production

The world wide cheese production continued its growth in 2008, but with a
reduced speed. In 2008, an increase of 1.1 percent was observed. This was the
lowest rise since the weak year 2003. In 2005, a record increment of 4.3 percent
was recorded. For 2009, only a very modest increase of world cheese
production can be expected.

The major producing regions of cheese being Europe and North America
reported poor growth rates below 1 percent for 2008. Drivers of the rise of
cheese consumption have been food service and pizza industry in the US and
industrial use in Europe. In Eastern European countries more cheese was
brought when income and purchasing power increased after the access to the
European Union. All these distribution channels suffered from higher prices in
2007 and 2008, and weakening economic conditions since autumn 2008.
Another reason for the reduced growth of production in the European Union is
decreasing exports to third countries. In contrast, growth accelerated in Latin
America and Oceania.

Whey products, Casein and Other Ingredients

The generation of liquid whey is developing in line with the industrial

production of cheese and casein. However, advanced technologies in cheese
production might increase yields and reduced the quantity of whey.

Traditional whey is the major source for ordinary sweet whey powder. Acid
whey, which is produced as by-products from quarg, fresh cheese and acid
casein production, is used less for feeding and increasingly for further
processing as a good source of protein with special functional properties.

However, statistical information for the complete range of these products is

hardly available. It can be assumed that world casein production will be reduced
in 2009 because there is surplus of milk protein worldwide and the
manufacturers would prefer to sell their surpluses as skimmed milk powder to
intervention.

The world’s major producers of casein and milk protein are EU, mainly Ireland,
the Netherlands, France and Germany and New Zealand. Also, India and China,
Ukraine, Belarus and Russia produce some volumes.

13
The major producing areas of why powder are the major cheese production
areas: Western Europe and Northern America are estimated to produce around
1.6 million tonnes and 0.5 million tonne, respectively. Also Oceania and South
America produce some volumes.

Increasing shares of whey and permeates are used for production of whey
protein concentrate, demineralised and/or delactosed whey powder, lactose and
other ingredients. The companies that have invested largely into research and
development of the processing and application of these items are reluctant to
publish figures. No comprehensive statistics are available.

14
 Amul- The Taste of India

Kaira District Co-Operative Milk Producer’s Union Ltd., with the brand name
as Amul based in the village of Anand, was established on December 14, 1946.
The brand name Amul is derived from the Sanskrit word “AMULYA” which
means “PRICELESS” with products that have been in use since 1946. Amul
Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul
Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and
Amulya have made Amul a leading food brand and a household name in India.

Today Amul is a symbol of many things. Of the high-quality products sold at

reasonable prices. Of the genesis of a vast co-operative network of the triumph
of indigenous technology. Of the marketing savvy of a farmers' organization
and a proven model for dairy development (known as “The Anand Pattern”).

15
Amul’s History
In the early 40’s, the main sources of earning for the farmers of Kaira district
was through selling of milk. At that time there was a high demand for milk in
Bombay to which the main supplier of milk was the Polson Dairy limited, a
privately owned company situated in Anand. Producers (farmers) travelled long
distances to deliver the milk to the only dairy, the Polsons Dairy which decided
the prices and off takes from the farmers by the season. Moreover with the
monopoly rights given by the government to the dairy to collect milk from
Anand and supply to Bombay lead to exploitation of poor and illiterate farmers
by the private traders.

However, the exploited farmers collectively appealed Sardar Vallabhbhai Patel

and Shri Moraji Desai who advised the farmers to establish a co-operative
union, and sell milk on their own instead of supplying milk to the private traders
(Polsons Dairy). The Kaira district milk producers union was thus established
in ANAND and was registered formally on 14th December 1946 as a co-
operative of the farmers, by the farmers, for the farmers managed by
professionals appointed by the farmers. The Gujarat milk network now covers
2.12 million farmers, who are organised in 10,411 village level milk collection
independent co-operatives called Village Societies that supply milk to fourteen
independent dairy co-operatives called Unions under the overall supervision of
GCMMF which sells the products collectively produced by these co-operative
under the brand umbrella AMUL.

Amul Secret of Success

The system succeeded mainly because it provides an assured market at

remunerative prices for producers' milk besides acting as a channel to market
the production enhancement package. What's more, it does not disturb the agro-
system of the farmers. It also enables the consumer an access to high quality
milk and milk products. Contrary to the traditional system, when the profit of
the business was cornered by the middlemen, the system ensured that the profit
goes to the participants for their socio-economic upliftment and common good.
Looking back on the path traversed by Amul, the following features make it a
pattern and model for emulation elsewhere.

16
Amul has been able to:

• Produce an appropriate blend of the policy maker’s farmer’s board of

management and the professionals: each group appreciating its rotes and
limitations.
• Bring at the command of the rural milk producers the best of the
technology and harness its fruit for betterment.
• Provide a support system to the milk producers without disturbing their
agro-economic systems.
• Plough back the profits, by prudent use of men, material and machines, in
the rural sector for the common good and betterment of the member
producers.
• Even though, growing with time and on scale, it has remained with the
smallest producer members. In that sense, Amul is an example par
excellence, of an intervention for rural change.
• The Union looks after policy formulation, processing and marketing of
milk, provision of technical inputs to enhance milk yield of animals, the
artificial insemination service, veterinary care better feeds and the like -
all through the village societies. Basically the union and cooperation of
people brought Amul into fame i.e. AMUL, a name which suggest THE
TASTE OF INDIA.

Organisation Structure

The organization operates by The AMUL Model (also known as ‘The Anand
Pattern’), a three-tier cooperative structure. The business model includes low
cost high quality operations, low margins at retail and distribution ends and a
high level of sharing of profits amongst the suppliers, i.e., (farmers) in its
strategy implementation with a single purpose of aligning the goals of the
consumer with those of the suppliers. Some essential features of the Anand
Pattern are:

• Inspiring Leadership and Consuming Values

• Building Networks
• Coordination for competitiveness
• Technology for Effectiveness

17
This structure consists of a Dairy Cooperative Society at the village level
affiliated to a Milk Union at the District level which in turn is further federated
into a Milk Federation at the State level. The above three-tier
three tier structure was set-
set
up in order to delegate the various
various functions; milk collection is done at the
Village Dairy Society, Milk Procurement & Processing at the District Milk
Union and Milk & Milk Products Marketing at the State Milk Federation. This
helps in eliminating not only internal competition but also also ensuring that an
economy of scale is achieved. As the above structure was first evolved at Amul
in Gujarat and thereafter replicated all over the country under the Operation
Flood Programme, it is known as the ‘AMUL Model’ or ‘Anand Pattern’ of
Dairy Cooperatives.

18
GCMMF Overview:

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest

food products marketing organisation. It is a state level apex body of milk
cooperatives
tives in Gujarat which aims to provide remunerative returns to the
farmers and also serve the interest
inte of consumers by providing quality products
which are good value for money.

Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the largest

Organisation in FMCG industry engaged in marketing of milk & milk products
under the brand names of AMUL and SAGAR with an annual turnover
exceeding Rs 5000 crores.

GCMMF is a unique organisation. It's a body created by Farmers, managed by

competent professionals serving a very competitive and challenging consumer
market.
t. It is a true testimony of
o synergistic national development through the
practice of modern management methods.

19
Various plants of Amul

AMUL-1 is the first dairy established in 1955 and extended to the one shown in
picture below in 1960.

AMUL-2 is the second dairy established in 1965.

20
AMUL-3 is the third dairy established in 1996.

21
 Government Policies and Taxation Aspects

Real GDP growth is estimated to be 7.1 percent for the year 2008-09. The
estimated milk production for the year 2007-08 was 104 million tonnes.

The bound tariff for major dairy products such as butter fat, cheese and fresh
milk (fat content more than 6 percent) is 40 percent, which is low as compared
to that in many major dairying countries. Unlike other major dairying countries,
India does not have any special agricultural safeguard provision on dairy
products.

The applied basic custom tariff is 30 percent for all dairy products except milk
powders. For milk powder the applied basic custom duty is 5 percent for
imports up to 10000 tonnes during the year under the tariff rate quota (TRQ)
and is 60 percent for imports beyond the TRQ limit.

The government of India restored the Duty Credit scrip benefits to exporters of
milk and milk products under its Special Agricultural and Village Industry
Scheme (VKGUY) in December 2008.

For domestic transactions of whey products, the basic tariff includes Central
Sales Tax (CST) of 2 percent against “FORM C” for inter-state transaction. And
for within Gujarat State transaction, Value Added Tax (VAT) of 5 percent will
be applicable.

22
 Objective

v Understanding the Whey Powder Industry.

v Worldwide exploration of Whey Powder market.

v To locate potential (bulk) buyers for Whey powder all over the world.

v To develop long term relationship with the buyers for selling Whey

Powder.

23
 Job Assigned

The basic job assigned was as follows:

v To explore the Whey market for Amul.

v To develop long term relationship with the potential (bulk) buyers

for the commercialisation of Whey Powder of Amul.

v To register potential (bulk) buyers under Gujarat Co-operative

Milk Marketing Federation Limited (GCMMF).

24
 Key Responsibility

v To locate the potential buyers.

v To interact with the client.

v To negotiate with the client.

v To arrange visit of Whey Powder Plant for client.

v To register client under Gujarat Co-Operative Milk Marketing Federation

Limited, as regular buyer.

25
 Stages of the Project

v Induction Process

Under the supervision of Mr. K. Sunderam, Public Relation, Sr.

Executive, Amul, detailed information about Amul evolution, history and
its organisational structure was enlightened.

v Literature review of Whey Powder.

Whey Powder industry, their types, uses, application and market scenario
were studied in detailed. Core enlightenment, from Dr. Gopal Shukla, Sr.
Executive (Sales and Marketing) and Dr. K. Rathnam, GM (Production),
was indeed a great help for preparing a technical write –up on whey
powder industry.

v Plant Visit.

Under the guidance of Mr. B.K. Singh, Manager and Mr. Milaap, Sr.
Officer, Whey Powder Plant, Khatraj Satellite Dairy at Khatraj (Gujarat),
a detailed study on production process of Whey powder was pursued.

v Exploration of potential customers.

In this stage of the project we located many potential buyers of Whey

Powder through internet, business directories and references. A detailed
directory of contacts was created.

v Contacting and interaction with potential buyers.

As per the directory created, we contacted all the potential buyers through
telephone and e-mail and as per their demand; we had dispatch the
samples of different types of Whey Powder to their mailing addresses.

26
v Business Meeting and Plant Visit with the clients.

On clearance of the samples by the buyers, we scheduled business

meetings for buyers with executives at Amul and GCMMF at Amul dairy,
Anand, Gujarat, for negotiation and followed by the plant visit of client at
Khatraj Satellite Dairy, Khatraj, Gujarat, for better understanding and
quality assurance.

v Registration under Gujarat Co-operative Milk Marketing Federation

Limited (GCMMF).

In order to buy Whey Powder of Amul, client must get registered under
GCMMF, to become a valid and regular customer. In this stage of the
project we got some registration for Whey Powder.

v Receiving the orders.

Having completed the registration formalities, we received some orders

of Whey powder through the registration number of clients.

27
 Literature Review

Wheyvolution
Operation Flood resulted in making India the largest producer of milk and milk
products, and hence is also called the White Revolution of India. With this
motivating thought, we aim to revolutionise Whey in terms of “Wheyvolution”.
The basic purpose is to nutritionalise the whole world.

Whey is one of the by-products obtained during manufacturing of cheese,

paneer and channa etc. A slightly pale yellowish liquid which contains about 96
percent of water, valuable proteins, much lactose (milk sugar) and various
dissolved salts ( minerals and vitamins). Traditionally, Whey for, years had been
viewed as nothing more than a waste product, but this is clearly no longer the
case. Now this liquid whey is converted into nutritive product in terms of Whey
powder.

Evolution of Whey Powder over the decades

v 1960 to 1970
Primarily skim milk powder, malt & sugar based weight gainers. High
carbs, sodium & lactose.
Not merely protein powders, but more like today’s growing children
protein powders.

v 1980 to 1990
Skim milk powder and soy based protein formulations. High in lactose,
sodium, fat and low bioavailability, high carb content.

v Throughout 1990’s
Whey protein concentrate based products. High sodium, lactose and fat
content. Some unwanted carbs.

v 2000 to current date

Whey protein isolates based formulations, either made up entirely of

28
 whey isolates Or whey isolate/ concentrate blends/demineralised whey
powder. High protein %, low sodium, lactose, fat and carbs .Good
flavoring systems, fast absorption.

v 2009 & beyond

Multi-fractionated, selective chain length hydrolyzed whey protein
isolates, (Hydro whey).

What is Whey…….?

Whey is the largest by-product of the dairy industry, obtained during the
manufacturing of cheese, paneer, chhana and shrikhand. It contains about 10%
of total milk proteins and most of the water soluble vitamins, lactose and
minerals.

Generally, 100 litres of milk produces about 12kg of cheese or about 13kg of
casein. In either, case about 87 litres of whey is produced as by product. About
20% of milk proteins get transferred to whey.

Importance of Whey

Whey constitute about 80-90% of volume of milk used for conversion into
cheese, chhana, paneer and casein. It retains about 45-55% of the milk nutrients
comprising serum protein, lactose, minerals and vitamins.

Composition of milk, cheese whey and casein whey

Percentage(%) Milk Cheese Whey Casein Whey

by weight
Fat 4.7 0.05 0.03
Lactose(milk 4.5 5.0 4.7
sugar)
Casein Protein 2.7 0.10 0.0
Whey Protein 0.55 0.65 0.57
Minerals 0.85 0.50 0.80
Minor 0.20 0.30 0.50
Components
Water 86.5 93.4 93.4
Total 100.00 100.00 100.00

29
Composition of whey

Constituents (%) Cow Milk Buffalo Milk

Total solid 5.5-6.5 5.0-5.9
Fat 0.6-0.4 0.01-0.2
Protein 0.3-1.0 0.4-0.6
Lactose 4.1-5.2 4.0-4.7

Whey has higher biological value of 104 as compared to 100 of egg, which is
considered, as an ideal protein source. Besides being rich in sulphur- containing
amino acids, whey proteins also supply essential amino acids. Whey protein can
be used as functional food ingredients supplying the flavour, texture and colour
and has good functional properties such as solubility, foaming and water
binding. Whey protein can perform number of technical functions in food
products. They possess solubility over a wide pH range, even near their iso-
electric point, create viscosity through water-binding, form gels, emulsify, bind
fat, facilitate whipping, foaming and aeration, enhance colour, flavour and
texture, and bring with them numerous nutritional advantages.

Whey proteins can usefully replace or supplement meat proteins, soy proteins
products, modified starches and hydrocolloids gums in processed meats. In their
native state, whey proteins are highly soluble and adeptly perform
emulsification and whipping functions in a food application.

They have no flavour on their own and are compatible with cooked meat
flavour and spice/seasoning blends. Their capacity of water-binding make
possible to improve cook yield and to have a positive economic impact. They
give firmness texture and facilitate retention of moisture during process and
cooking.

For example, high solubility over a wide range of pH makes Whey Protein
Concentrate (WPC) a good candidate for a beverage (sport) or meal-
replacement beverage.

In baked goods, whey proteins are used to enhance crust browning, bread
flavour and crumb structure. They can retard staling. The use of whey proteins
is especially interesting in acid food products like beverages. They provide a
high solubility in a large wide pH range, a high dispersibility and good
suspension stability. They impart a smooth mouth feel and are bland of flavour.

30
They can emulsify fat-containing beverages and aerate shake-type drinks and
impart a low viscosity useful in dietary product or convalescent food.

Finally, they provide an economical source of high-nutritional-quality proteins

which makes them particularly useful in sports nutrition: They have an excellent
metabolic efficiency and are easily digested. They have the highest
concentration of branched chain amino-acids (BCAAs), are a good source of
sulphur-containing amino-acids that maintains antioxidant levels in the body,
contain glutamine and high levels of arginine and lysine that may stimulate
growth hormone release and an increase in muscle mass.

Types and Applications of Whey powder

Whey Powder comes in variety of forms depending upon the source and
processing techniques. Some of these Whey Powder types are Demineralised
Whey powder, Whey Powder Concentrate (WPC), Whey Powder Isolate (WPI),
Whey Protein Hydrolysate (WPH), Whey Protein Powder, Whey Permeate.

Whey types in a tabular form:

TYPE OF WHEY DEFINING CHARACTERISTICS

Liquid Whey Produced during cheese making

Whey powder Dried Whey
Whey Protein
Concentrate(WPC)
WPC 35% 35% Protein
WPC 50% 50% Protein
WPC 80% 80% Protein
Whey Protein Isolate(WPI) 90% Protein or Higher
Demineralised Whey (DWP) Less than 7% ash
Acid Whey ( Casein) pH of 5.1 or less
Sweet Whey (Cheese) pH of 5.5 or higher
Whey Permeate Lactose and ash portion of UF
processed whey
Whey Hydrolysate (WPH) 30-80% Protein (hydro whey)
Whey Protein (WP) 10-14 % Protein

31
DEMINERALISED WHEY POWDER

Demineralised Whey Powder (DWP) is a high quality protein ingredient with

high solubility, favourable for the shape and form of products. When mixed
with water, it will generate viscosity and emulsification in the product. In
addition, its flexibility and frothiness is favourable for the flavour of the
product. DWP products have been broadly applied in the food processing
industry due to its special characteristic such as infant food, bakery products,
beverages, frozen foods, candy, meat products, and soup bases etc. DWP uses
dozens of dialysis membrane to reduce minerals and remove soluble minerals
and wet. As a high-class whey powder product, DWP is suitable for infant
growth specially demineralise 70 (DM 70) and demineralise 90 (DM 90),
mainly utilised for the production of infant formula powder.

It is produced using similar equipment to that used to produce milk powder.

Demineralised Whey is subjected to either electro dialysis and/or ion exchange
to reduce the salt minerals and removal of soluble minerals and wet content up
to 90%. The demineralised whey is evaporated to about 58% total solids and
then rapidly cooled to force as much of the lactose as possible into fine crystal
form and then spray dried. The Spray drying gives insufficient time for the
lactose to crystallise, making the whey powders very sticky under humid
conditions. The problem is minimised by first converting as much as possible
of the lactose to the α-monohydrate crystal form, which is not hygroscopic.

Forms of Demineralised Whey powder

v 40% Demineralised Whey Powder is produced by using ion exchange,

evaporation and spray drying. It is used mainly in chocolates, ice-creams
and bakery products. It consists of lactose – 65%, protein- 15 to18%,
moisture – 3.15%, fat- 2.0%, minerals- 8%, ash- 6%. ANNEXURE – 1
and 2.

v 70% Demineralised Whey Powder is produced by using ion exchange,

evaporation and spray drying. It is used mainly in baby food, infant
formulas and bakery products. It consists of protein-15 to17%, ash- 3%,
solubility- 99% moisture – 2.06% and fat- 3.0%. ANNEXURE- 3 AND
4.

32
 v 90% Demineralised Whey Powder is produced by using ion exchange,
evaporation and spray drying. It is used mainly in baby food, infant
formulas and bakery products. It consists of protein- 15 to17%, ash- 1%,
solubility- 99%, moisture – 2.06% and fat- 2.5%.

WHEY PROTEIN CONCENTRATE (WPC)

Whey Protein Concentrates have the highest biological value and protein
efficiency ratio as compared to other proteins, which make it suitable for a wide
range of nutraceutical and functional food system. Whey Protein Concentrate
contains minerals for bone strength, plus essential, semi essential and non
essential amino acids for tissue formation.

Products of Whey Protein Concentrates are:-

v WPC 35
v WPC 60
v WPC 70
v WPC 80

WHEY PROTEIN ISOLATE

WPI is a premium non-fat, whey protein isolate derived from sweet dairy whey.
The whey proteins have been extracted in a highly purified, indentured from
using membrane technology.

WPI’s nutritional properties combined with high solubility, improved flavour

and unique functionality makes it the ingredient of choice for a variety of
applications.

WPI has excellent nutritive value, soluble over a wide pH range, bland flavour,
excellent emulsifying capability and foaming capacity.

33
WHEY PROTEIN

Whey protein is the simplest form of protein with 10-14% of protein content.

Whey protein properties are flavourless, easily blended-without imparting any

flavour, stable at lower pH: - 3.5-4.5%

It can be utilised for the purpose of drinks, animal feed, bakery, T.S. raiser
(standardization) in other dairy products.

WHEY PROTEIN HYDROLYSATE

Whey protein Hydrolysate find uses in high value specialist nutritional

applications such as tube-feeding preparations or special dietary supplements.
Appropriately hydrolysed proteins lose the ability to induce allergic reactions in
susceptible people, and so can be used in hypoallergenic infant formulae.
Proteins are chains of amino acids, in which the amine group of one amino acid
is bound to the carboxylic acid group of the neighbouring amino acid by an
amide bond. Proteolytic enzymes catalyse the hydrolysis of these bonds. Small
chains of amino acids are called peptides. In a Hydrolysate, we might seek to
get all the protein into peptides of two to five amino acids, with few free amino
acids and no larger peptides. Interestingly, some peptides released from milk
proteins can be biologically active. Some can transport calcium from the gut
into the blood during digestion, some can inhibit enzymes in the human body
involved in excessive blood pressure and some can induce sleepy feelings.
However, a problem is that some peptides can be very bitter on the tongue.
Choice of the right enzymes and careful control of the hydrolysis process are
required to make the desired Hydrolysate product.

WHEY PERMEATE POWDER

Demineralised Permeate Powders are manufactured in a very similar manner to

demineralised whey powders, but use ultrafiltration permeates of whey as a raw
material. The spray-dried product contains about 95% lactose.

34
Functional properties of Whey powder

Functional Mode of action Food System

Property

Solubility Protein salvation Beverages

Water absorption Binding agent Meat, Cakes, Breads

Viscosity Thickening ,Water Gravies, Salad dressing

binding

Gelation Setting Meat, Curd, Baked goods

Elasticity Bonding & Disulfide of Meat, Bakery products

fat links in gel

Fat absorption Binding & free fat Sausages, Doughnuts

Foaming to entrap Form stable film Desserts, Cakes, Whipped

gas toppings

Emulsification Stabilisation of fat Salad Dressing, Coffee

emulsion whitener, Soups, Infant
formulae

Cohesion- Protein acts as adhesive Meat, sausages, baked goods,

adhesion material. pasta products.

35
Applications of Whey

Whey and whey components have a wide variety of applications on the basis of
their excellent nutritional and functional properties. Whey products are a
combination of high-quality proteins, lactose, bio-active components, minerals
and vitamins. Whey and its components is a value-added ingredient in many
food products including meat and fish products, bakery, confectionery, snack
foods and infant formula. Furthermore, whey is used for many applications in
feed. Moreover it has received growing interest as functional ingredients in
dietetic and health foods such as slimming foods, diets for the elderly, clinical
foods and pharmaceuticals.

WHEY WHEY PROPERTIES APPLICATIONS

COMPONENT PROTEIN
(%)
DEMINERALISED 12-15 Digestable, less Infant formula, baby
WHEY POWDER load on kidney food, bakery
( DM) products, beverages,
frozen foods, candy,
soup bases, meat
products.
WPC 25-89 More biological Sports nutrition,
active baking industry, ice-
components, cream, confectionary,
texture pharmaceutical
development- products.
emulsification,
fat replacer, egg
replacer in cake.
WPI >90 High tryptophan Lactose intolerance,
content child nutrition
product, body
supplement
WPH 30-80 Easily Infant formula
digestible,
reduced
bitterness
WP 10-14 Flavourless, Drinks, animal feed,
easily blended- bakery, T. S
without raiser(standardisation)
imparting in other dairy
flavour, stable at products
lower pH:3.54.5
36
Uses of Whey Powder

In whey beverages: By using the whey as a raw material we can produce

different products for varied purposes such as whey in different forms of liquid,
concentrated, dried and fractioned and fermented products. Liquid whey can be
used as animal feed, since the dairy situation is quite different and is scattered in
the form of milk pockets throughout the country, the total whey output is
limited in a particular which may not serve as a suitable animal feed additive.
An alternative means of whey utilization could be the development of whey
beverages with or without addition of fruit pulp. However, lactic acid
fermentation using Lactobacillus acidophilus and Bifidobacterium sp. would be
one of the alternative avenues for the production of fermented whey beverages
having probiotic properties and helps in returning the wasted milk nutrients into
the human food chain.

The major advantages offered by whey as a substrate for beverages production

are that it has greater nutritive value and is more thirst quenching, than most
soft drinks and is less acidic than fruit juices.

A variety of whey-based drinks are commercially available and popular in

European, American and Japanese markets. On the contrary, there are hardly
few beverages commercially available in India and developments are still under
trail. A technology for producing fermented whey beverage called “Acid Whey”
has been standardized at the National dairy Research Institute, Karnal, and
Whey beer beverages can also be produced where much of the malt is replaced
by deproteinized whey. Whey beverages are compatible with many fruit
flavoured drinks. The shelf life of these can be upto six months at room
temperature.

In Cheese: Whey is suitable for the propagation of lactic cultures used in the
manufacturing of various types of cheeses. In cheeses, the whey protein can be
increased by the use of UF-based cheese manufacturing technology, which
involves initial concentration of cheese milk, by UF. During the coagulation
process whey protein get trapped in the coagulum as a result less moisture is
expelled from the curd with increased retention of water soluble components of
milk in cheese. By increasing the level of whey protein in corporation, the
cheese yield and nutritive value of products are increased. This process has been
widely applied for producing different cheese varieties like Cheddar, Gouda,
Mozzarella and Cottage cheese.

37
 In Soups: In the recent years, whey based ready-to-serve soups are gaining
importance as convenience foods, which can serve as highly nutritious,
energetic and refreshing foods. However, there is a paucity of information
available on the standardization and development of whey-based vegetable
soups. A technology for whey based mushroom soup was formulated at
National Dairy Research Institute. The soup was prepared using 4 percent
mushroom, 5 percent corn flour, and 90 percent of whey and was found to be
more acceptable.

Cheese and Processed Bakery Foods Ice-creams

Cheese

Fish Products Slimming Foods

Whey Powder

Dietic Foods Sprots and Energy

Drinks

Meat Extenders Emulsifiers Confectionary Beverages

In Baked Foods: Uses of whey in bakes foods is claimed to improve the

characteristic including flavour, colour, porosity, consistency and volume. In
addition, baking losses and fermentation time were reduced and increase in the
yield was observed. Dough fortified with 1 percent WPC resulted in bread
which showed a loaf volume depression of 5 percent, while bread fortified with
defatted WPC resulted in depression of 15 percent, which indicated that lipid
fraction in Whey, is indisable for baking properties of WPC in bread. Liquid

38
whey can also be used in bakery and fried food product where the golden crust
is important. It can also be used in caramels, confections and candies to reduce
sweetness prolong shelf life and improve the nutritional quality. Upto 25
percent of milk solids- not fat content of ice-cream and other dairy based frozen
desserts can be replaced with dried Whey without adversely altering their
quality attributes. Upto 8-10 percent lactose hydrolyzed Whey was used
successfully for formulating ice-cream mix and to replace sweetened condensed
milk in bakery and flavoured beverages.

In Meat Products: In met industry, Whey protein contributes desirable

functional properties and has been extensively used as fillers, binders and
extenders in comminuted meat products. These proteins improve the
emulsifying capacity, emulsion stability, water binding and slicing
characteristics with reduced cook shrink and formulation costs. They also
significantly increase the gel strength of meat proteins by the synergistic effect
between Whey and meat proteins through covalent cross linkages. In sausages,
the Whey proteins help to increase the product yield and control flavour and
protein losses. However, calcium present in Whey has to be removed which
interferes with the solubilisation and functionality of meat myofibrillar proteins.
Partial demineralisation can be suitable answer to overcome this problem.

In Health Foods: Whey protein hydrolysates produce by the action of proteases

or acid hydrolysis can be used in various specialty food products. Example
include infant formulae to prevent allergic response to intact proteins, enteral
products for adult with conditions causing poor absorption of nutrients by the
digestive system and various preparations used as dietary and nutritional
supplements. The hydrophobic peptide content of the hydrolysates has potential
functionality for altering the textural properties of food proteins, such as
sterilisation of foams and emulsions and modification of gelation and viscosity.
The oral use of protein hydrolysates is, however limited by their often very
bitter taste, so that they can only be added to food products at relatively low
concentrations. Alcalase, an alkaline protease, having broad specificity with
some preference to terminal hydrophobic amino acid was employed to produce
debittered Whey protein hydrolysates.

Other Uses: The emphasis on Whey fermentation has been largely on the
production of commodity chemicals or biomass as a means of reducing the
effluent load of Whey. The technologies, which have been commercialised,
include the production of ethanol, some organic acids and their derivatives and
39
products derived from yeast biomass (single cell protein). For production of
ethyl alcohol, lactose fermenting yeast like kluyvermyces fragilis and strains of
Candida psedotropicalis have been shown to be effective. Following the ethanol
fermentation the alcohol can be further metabolised to acetic acid by
acetobactoer sp the resulting Whey vinegar finds use in salad dressing. Whey
has been used in feedstock for lactic acid production fermentation using
homofermented strains of L. Baulgaricus and bakery products can produced by
Whey fermentation using strains of Propionilbacterium shermani or P. acidic-
form of Whey using propionibacterium sp. and Chlostridium acetobutylicum,
respectively. Whey and WPC can serve as carbon and nitrogen sources in the
fermentation process of penicillin production.

It has been established that Whey can serve as a substrate for the production of
food grade and feed grade and yeast Whey products. A non conventional
baker’s yeast can be produced by whey fermentation using Kluyvemyces
fragilis, a lactose fermenting yeast which finds its application in bread making.
This process helps to overcome the limitation of Saccharomuces cerevisie,
conventional yeast for bread making, not being able to utilise lactose. Yeast
Whey products have been incorporated into diets of animals and have proved to
be excellent source of protein and vitamins. Feeding of dried yeast Whey to
laying hence increased both egg production and their body weight. The
production of biogas using Whey is catching up fast in the recent years, which
offer the major benefits of efficient waste treatment process coupled with the
production of convenient energy source that can be utilized on site.

40
Technology used in Processing of Whey

For processing, like in any other manufacturing process, the design of the
right plant is crucial for product quality and economy. You will have to rely
on specialists who can recommend the correct unit operations, find the most
optimal processing equipment and erect the plant within the calculated
timetable. You will experience many pitfalls during this process and only the
most experienced and reliable crew is good enough for you in this vulnerable
period. Therefore, the technology used for Whey production is:
GEA Filtration a world-leading supplier of Membrane Filtration Systems to
the Food Industry with a motive to “Increase Yields, Cost Reduction,
Optimized Operations and Better Quality!”

Application experience includes:

v Concentration of plant and vegetable proteins.

v Meat brine clarification/bacteria removal.
v Corn syrup clarification.
v Egg white concentration.
v Gelatin de-ashing and concentration.
v Cane and beet sugar clarification and de-colorization.

Services:

v Engineering and process development.

v Process integration and automation.
v Manufacturing and installation.
v After sales services and training.
v Spare parts and replacement membrane inventory.

GEA Filtration specializes in cross flow membrane filtration technologies,

namely Reverse Osmosis (RO), Nanofiltration (NF), Ultrafiltration (UF) and
Microfiltration (MF).

GEA being a committed supplier of process lines for the milk industry has
collected all its whey processing experience into one task force called The
Whey Consulting Team. The Whey Consulting Team is assisting within all
aspects of the utilization of whey. They participate in establishing the
knowledge necessary to calculate the profitability of processing the whey.
Furthermore, the team recommends the right equipment, and participates in
product management and plant operation if required.

41
 Whey Processing at Amul (Khatraj Satellite Dairy, Khatraj)

Liquid Milk

Pasteurization
Pasteurization

Nanofiltration

15-20-25 % TS

Heating
up to 40
degree Electro Dialysis/ Ion Exchange
and
adding
culture
Evaporation with Flash Cooling

55-60-65% TS

Coagulation
and Clotting Crystallization Tank
of milk.
Unprocessed
Liquid Whey
Cheese Spray Drying

(Straight through process)

Demineralised Whey Powder

(40%, 70% and 90%)

The process is used to manufacture Demineralised Whey Powder up to 90

percent.

42
Description of Whey Powder Manufacturing

As Whey is a by-product of cheese manufacture, once the milk is pasteurised, it

is then heated up to a temperature of 40 Degree and culture is added. The milk
is then coagulated until it turns into curds and liquid whey.

Removal of Fat

Whey must be processed as soon as possible after the collection and the very
first step involved in processing of whey is to remove casein fine and separate
the fat through rotating filters or centrifugal seperators.

Cooling and Pasteurization

After whey has been clarified and fines removed, fluid is routed through a
pasteurizer for short time storage to prevent any bacterial growth.

Nanofiltration

Nanofiltration is a pressure driven separation process. The filtration process

takes place on a selective separation layer formed by an organic semi permeable
membrane. The driving force of the separation process is the pressure difference
between the feed (retentate) and the filtrate (permeate) side at the separation
layer of the membrane. For the nanofiltration process, the maximum achievable
demineralization rate is about 35 % with a concentration factor of about 3.5 to
4. To reach a higher demineralization rate it is necessary to dilute the partially
demineralized whey with demineralized water and run the nanofiltration process
again. By applying this so-called diafiltration step, it is possible to achieve a
demineralisation rate of up to 45 %. On using a special pre-treatment of the
whey, developed by SAFIR / EURODIA, it is possible to get a demineralization
rate of up to 75 % with nanofiltration.

The maximum concentration to be achieved by nanofiltration is between 22 %

TS and 24 % TS. Above this concentration, problems can occur due to the
precipitation of phosphates; in addition, the viscosity of the concentrated whey
is increasing exponentially above 24 % TS. (Fig.1).

43
Filtration Process

Different processes have been developed and shall in short be mentioned here

• Ion exchange
• Electrodialysis

ION-EXCHANGE

To visualize this process, two lots of resins with different characteristics are
used. The resins usually consist of polystyrene and divinyl benzene in form of
small spheres with a diameter of 0.4-0.8 mm having a large number of attached
bonds on their surface which can absorb (reversibly) one specific type of ions.
The ions are divided into cations (H+, Na+, K+, Ca++, etc.) and anions (OH-, Cl-,
SO4--, etc.). When the whey is passed through the first lot of resins, the cation-
exchanger, all the cations are replaced by H+, whereas all the anions pass
through the cation-exchanger unaffected. During the subsequent passage of the
decationized whey through the second lot of resins in the anion-exchanger, all
the anions are replaced by OH-. The transfer of whey through the resin beds
continues, until the resins are saturated with cations and anions. This point is
controlled by means of a conductivity meter, after which the resin beds are
purged of whey, washed with water and regenerated by means of acid and alkali
solutions. These solutions should be sufficiently concentrated to remove the
absorbed cations and anions and replace them by H+ and OH- bringing them
back to their previous state. The treatment with acid and alkaline results at the
same time in a sufficient cleaning. After the regeneration the resins are washed
with clean water preferably condensate from an evaporator - and are then
ready for another batch. A typical cycle would be two hours' production and
four hours' regeneration. Whey treated in an ion-exchange plant can be
demineralized upto 90 %.

44
ELECTRODIALYSIS

In an electro-dialysis plant a number of ionselective membranes, made from

approximately the same material as the resins, is applied in form of cells.
Each cell consisting of one cationic and one anionic membrane - is
arranged in a stack analogous to a plate heat exchanger. The spacing
between each membrane is about 1 mm. between each of the above
mentioned cells flows a diluents salt solution.

The entire stack is placed between a series of DC electrodes providing an

electric field. Under influence of the electric field, the cations will migrate in
the direction of the electric current - i.e. towards the -pole - and pass through
the cation membrane into the flushing salt solution which is recycled during
operation. The anions will migrate in the opposite direction of the electric
current - i.e. towards the +pole - and pass through the anion membrane into
the flushing salt solution. Like the flushing salt solution the whey is recycled
during operation via a batch tank with a conductivity meter attached. To
obtain sufficient conductivity of the whey to be treated a pre concentration to
20-28% solids, as well as a processing temperature of 30-45ºC, is necessary.
The recirculation time depends on the required demineralization level and
may reach up to 6 hours, if 90% demineralising is aimed at. As the salt
content decreases in the whey the conductivity decreases, and it is necessary
to increase the applied voltage to compensate for this. To keep the salt
content in the flushing water at an optimum level it is diluted as the process
continues. Excess salt solution is passed to the drain. The cleaning of the
membranes is done by passing acid and alkaline through the plant, an
operation lasting 2 to 6 hours depending on the plant manufacturers.

45
Evaporation

Prior to the drying, the whey is preconcentrated which removes about 90% of
the water. This is carried out in a multi-effect falling film evaporator with vapor
recompression in order to save steam. Apart from the actual evaporating
calandrias the evaporator is equipped with preheaters for heating the whey by
means of vapor before it is finally pasteurized by means of live steam, either
direct or indirect.

Crystallization

In whey powder produced according to the process described above with a

pneumatic conveying system, the lactose is present in an amorphous or glassy
state. This form of lactose is extremely hygroscopic absorbing water from the
air forming α-lactose monohydrate.

The α-lactose monohydrate, which is not hygroscopic, is also formed in liquid

whey concentrates by crystallization of the lactose from supersaturated
solutions. As the α form is less soluble than the β form at a given temperature, α
form reaches the point of supersaturation first and forms crystals of α-lactose
monohydrate.

The removal of v-lactose from the solution due to the crystallization means that
the proportion between α- and β-lactose changes, so that the solution contains
more β-lactose than corresponding to the equilibrium.

Due to the autorotation the solution of α-lactose becomes again supersaturated,

so that the crystallization continues. This process will continue as long as the
solution is supersaturated and will not stop until the saturation point is reached.

The viscosity of the crystallized whey concentrate is mainly influenced by:

• Heat treatment before the evaporation

• Solids content of the concentrate
• Size of the lactose crystals

Spray drying

The process generally takes no more than a few seconds. Spray drying starts
with the atomization of a liquid feedstock into a spray of droplets. Next, the
droplets are put in contact with hot air in a drying chamber. The sprays are
produced by either rotary (wheel) or nozzle atomizers of different types.
Evaporation of moisture from the droplets and formation of dry particles
proceed under controlled temperature and airflow conditions. Powder is

46
continuously discharged from the drying chamber and recovered from the
exhaust gases using a cyclone or a bag filter. The whole

Every dryer consists of:

• A feed pump.
• An atomizer.
• An air heater.
• An air disperser.
•
• A drying chamber.
• Systems for powder recovery.
• Exhaust air cleaning systems.
• Process control systems.

47
 Market for Whey powder

World Scenario

Today, there are three major reasons why dairies are looking at whey in a new
way. The first is environment legislation that has put an effective stop to the
sewage. The second is the fact that there are now highly efficient and cost-
effective ways of refining whey into high-margin products and ingredients. And
the third is that there are now plenty of applications in which these can be used.
In other words, there is a hidden treasure in whey that is waiting to be
discovered and exploited.

In United States, half of the whey production is utilised for WPC, lactose
derivatives products and other products for use in formulating human food and
animal food products.

In Europe, 50% whey is mainly utilized for whey powder manufacturing, which
is a great threat to manufacturers in India.

But in Netherlands, large percentage of whey produced is utilized in products

other than whey powder (application as functional food). This seems to be a big
market for manufacturers of India.

The global whey derivatives market is growing at around an average of 10 per

cent annually, compared with only 6 per cent growth in the ingredients industry
as a whole, and many sectors of the food and beverage industries are benefiting
from the positive health benefits offered by this nature-derived ingredient.

Global whey production in 2004 was 163 million MT and worth US$ 3.4
billion in 2004, which rose to 177 million MT and worth US$ 9 billion in
2006. In 2008, it grew to 186 million MT and worth US$ 11.16 billion. As
per International Dairy Federation, these variations are due to price rise.

The high nutritional value of whey protein, plus its reported effects on specific
conditions such as hypertension, cancer, HIV and high cholesterol, adds to the
appeal of whey as a nutritional ingredient. Furthermore, the high solubility and
water binding properties of whey protein, plus its neutral colour and taste, mean
that incorporation in everyday foods is simple and practical.

48
The increasing awareness of nutrition, health and quality food conscious of
consumer and the keen competition in the market, compel the food industry to
search for those ingredients which impart specific functionalities to food
products, while reserving or enhancing the nutritional quality of food stuffs in
order to sell their products profitably. In this context, the food industry has to
come to realise that milk proteins in general and whey proteins in particular
have potential to improve the quality of food products.

Looking at the market development, 75 per cent of the whey world market is
dominated by EU and US cheese production with an annual growth rate of 3 per
cent out of which 96 per cent is derived from cheese whey and 4 per cent from
casein whey. Global whey business constitutes 95 per cent of cheese whey and
only 5 per cent from casein whey.

Total production- 186 million MT, Value- US$ 11.16 billion in 2008

GLOBAL WHEY BUSINESS

CASEIN WHEY (9.9; 5%)

CHEESE WHEY (176.7; 95%)

Source: 3A Business Consulting.

The highest growth rate in the US is shown by high concentrate WPC whereas
the increase in mainstream products remains moderate. But, WPC 80 requires
ten times the cheese production compared to standard whey powder. Due to the
lower input of whey powder in feed (21%) compared to food (36%) or
nutrition/pharmaceuticals (43%) the feed industry can switch within three
months to other ingredients with plant origin. This is considered to be one of the
major risks for the dairy industry in the situation of increasing prices of whey.

49
 WHEY UTILISATION

FEED INDUSTRY (21%)

FOOD INDUSTRY(36%)

NUTRITION/PHARMACEUTICAL(
43%)

Source: 3A Business Consulting.

Asia is the most important market with an input of approximately 400,000 MT.
However, whey powder prices have varied over 300 per cent within the last
years, whereas WPC 34 fluctuates less than whey powder and WPC 80
fluctuates even less than WPC 34. The market driven downsizing of ice cream
in terms of applied WPC concentrates has made ice-cream ever since cheaper.
In EU, WPC greater than 50 has followed the price of SMP, in the US price
curves vary but still follow very closely. Increasingly, Lactose (by-product of
whey at the time of manufacturing) replaces refined sugar. In mid 2007, Lactose
was very expensive but since the beginning of 2008 prices has dropped offering
new opportunities.

Major Exporting Countries of Whey in 2008

YEAR COUNTRY RANK VALUE PERCENTAGE

(000USD) SHARE
2008 GERMANY 1 4,36,230 18.53%
2008 FRANCE 2 4,30,032 18.27%
2008 USA 3 3,24,455 13.78%
2008 NETHERLANDS 4 2,59,348 11.02%
2008 IRELAND 5 1,09,846 4.67%
2008 ITALY 6 74,495 3.16%
2008 POLAND 7 74,117 3.15%
2008 AUSTRALIA 8 69,344 2.95%
2008 UNITED 9 62,469 2.65%
KINGDOM
2008 DENMARK 10 60,980 2.59%
2008 INDIA 25 7422 0.32%
TOTAL
Source: COMTRADE, UNITED NATION.

50
Major Importing Countries of Whey in 2008.

YEAR COUNTRY RANK VALUE PERCENTAGE

(000USD) SHARE
2008 Netherlands 1 4,81,266 20.44%
2008 China 2 3,06,575 13.02%
2008 France 3 1,90,292 8.08%
2008 Germany 4 1,65,093 7.01%
2008 Japan 5 96,304 4.09%
2008 Italy 6 87,326 3.71%
2008 Belgium 7 85,531 3.63%
2008 Mexico 8 69,292 2.94%
2008 Malaysia 9 64,113 2.72%
2008 Thailand 10 58,361 2.48%
2008 INDIA 46 3,539 0.15%
TOTAL
Source: COMTRADE, UNITED NATION

Worldwide, whey proteins have been utilized in the development of infant’s

foods, bakery products, sports nutrition, meat products, etc. The complete
benefit of the whey proteins are yet to be explored by the Indian food industry.
Indigenous effort is needed in utilizing WPC/WPI in Indian traditional dairy
and food products. This calls for more new product development, which suits
the Indian palate. Isolation and utilization of WPC/WPI not only solves the
pollution problems of most dairy industries, but also gives advantages the health
benefits to the conscious consumer.

51
Indian Scenario

In the absence of systematic surveys/statistics, the predicted value of whey

production in India is estimated at 4.84 million tonnes per annum. The Chhana,
and paneer whey give the major contribution (about 80%), in total whey
production. Cheese market for India was estimated at US$ 244 million for the
year 2007-08, however the cheese consumption in India is comparatively low,
but there has been a considerable rise in the production of cheese resulting in
increased availability of whey.

Whey Exports from India in 2008-09.

Country Value(Rs.) Quantity(Kg.) Percentage Share

EGYPT A RP 45,02,900 75,000 45.19
CHINA P RP 29,09,050 31,862 29.2
PAKISTAN IR 22,91,790 25,000 23
AUSTRALIA 90,899 840 0.91
USA 79,240 700 0.8
MAURITIUS 54,144 2,000 0.54
PHILIPPINES 28,974 127 0.29
ITALY 6,990 120 0.07
Total 99,63,987 1,35,649
Source: DGCIS Annual Export

Most of the whey production is either dumped or is being used in bakery and
confectionary market. Market for export of whey powder is increasing at rapid a
rate in context to India.

Asia is one the most important market, particularly India and China, with an
input of approximately 400000 MT. Growing populations and increasing
consumption in India, makes it a big market in the world.

52
Major Imports of India in 2008.

COUNTRY VALUE (000 USD) PERCENTAGE

SHARE
USA 1761 49.76
DENMARK 1284 36.27
CHINA 196 5.54
URUGUAY 145 4.10
CANADA 123 3.47
SWITZERLAND 25 0.71
SINGAPORE 02 0.067
MALAYSIA 02 0.065
TOTAL 3538

Source: COMTRADE, UNITED NATION.

Whey industry structure in India comprises of very few producers and few bulk
buyers. It has major application in food and pharmaceutical industry. One of the
important cause for whey as lucrative business is the environmental concern on
the part of government regulation. There are very few domestic private players
and hence no Multinational Corporation (MNC) or Co-operative is engaged in
production, except Amul. It involves high cost due to high investment required.
What makes whey a lucrative business is the growing demand, higher return
and more margin is the basic driver for whey producers. Whey producers in
India are mainly concentrated in North India because milk availability is the
basic criteria. Entry barrier for this industry is the raw material procurement and
exit barrier includes relatively high investment, equipments cannot be used for
other products and due to less awareness of whey, there are very few buyers.

Some of the major producers of whey in Indian market are VRS foods Ltd.,
Mahaan Protein Ltd., Modern Dairies Ltd., Dynamix Dairies Ltd., Milk Food
Ltd., Cepham Limited, Bhole Baba dairy industries Ltd., Crown Milk Spl. Ltd.

53
Whey Processors in India

Name Milk Casein WPC- Lactose Industry

handling (MT/day) WP(MT/day) (MT/day) oncentration
capacity (%): Whey
(lakhs
ltr/day)
VRS 15 40 20 25 22.6
foods ltd.
Mahaan 6 15 10 18 14.1
Proteins
Modern 10 25 15 18 16.6
dairies
ltd.
Dynamix 5 8 5 8 12.6
dairies
ltd.
Milk 8 15 10 15 6.5
foods ltd.
Cepham 6 14 8 12 10.1
ltd.
Bhole 10 24 14 15 14.6
baba
dairy
Crown 5 10 6 0 3.0
milk spl.
Ltd.
Total 65 151 88 111
Annual 17793.75 33069 19272 24309 43581
(2007)

54
Whey Processor Concentration in 2008

WHEY PROCESSOR CONCENTRATION

90
80
70
60
50
40
30
20
10
0
VRS Foods Mahaan Modern Dynamix Milk Foods Cepham Bhole Baba Crown Milk
(85) Protein (43) Dairies (58) Dairies (21) Ltd. (40) ltd. (34) dairies (53) Spl. Ltd.
(16)

Conduct of whey Producers in India

Name Brand Major selling Any alliance Future

Activity Targets/
remarks
VRS foods Paras Export, Nestle Nestle- Handling
ltd. Production capacity to
Contract ( increase by 6
28%DWP, lakhs/day
600 MT/
Month-
Lactose)
Mahaan Mahaan Export, UF line
proteins Wockhardth, _ revamped
GSK, Novartis
Modern Nulife Export Olam Handling
dairies ltd. International capacity to
increase by 5
lakhs.
Dynamix Export, Nestle Olam
dairies ltd. _ and International _
Pharmaceutical
companies.
Milk foods Milk Food Export _ _
ltd.
Bhole baba Krishna Export,
dairy Pharmaceutical _ _
Companies.

55
Whey Business: Lucrative....???

120

100
61%
80

116%
60 No. of whey producers
Capacity (Lakh ltrs/day)
40

20

0
Till 2005 (4;30) 2005-07 (8;65) 2007-09(13;105)

Whey industry has expanded 250% since 2005 and it will continue to grow at a
faster rate because of five new plants are coming up in 2 years. These are Anik,
Etah, VRS Foods-Nasik, Nector-Pathankot, Halsun-Chennai, Doaba Foods-
Palwal.

Whey has been traded like commodity in India and it has not been utilized for
value addition and for developing branded products. Currently due to certain
tariff related issues and very high demand, the processors are getting more
return from export business. Value addition seems to be another option for
Indian Whey Processors.

56
Amul’s Scenario

Kaira District Co-operative Milk Producer’s Union Limited, has set up Khatraj
Satellite Dairy at Khatraj, Gujarat to manufacture Whey powder. Amul has a
huge source of liquid whey, as it is already into manufacturing of cheese and
paneer, which is the source of liquid whey. Whey powder plant has the capacity
of handling 500000 litres of liquid whey per day and it will increase to 700000
litres by 2012. Presently, it is processing only 350000 litres of whey per day.

The plant has the full-fledge capacity of producing 60 MT per day or 1800 MT
per month of whey powder. The plant presently produces whey powder in two
varieties, 40% Demineralised and 70% Demineralised Whey Powder. Both the
products are available in bulk packing of 25kg, presently.

Market Exploration through Research

Since Whey Powder is a new venture for Amul, it has decided to go for
Business to Business marketing for bulk selling rather than going for branding
of the product, in order to have a close monitor on the buying patterns of
ultimate consumers, level of production, investment and consumer spending.
The basic aim is to slowly expand the Consumer Market through proper
distribution, pricing, customer servicing, segmentation positioning and
communication of Whey Powder.

The database of directory comprises of 71 companies from all over India and
contacts were made to all the companies in the directory list. Some of the major
buyers in the directory list include Parle Agro, ITC Foods, Hindustan Unilever
Limited, Agri Best B.V., Surya Foods, Bakesman, British Biologicals,
Wockhardt Ltd., Nestle India, Cadbury India, Godrej-Hershey and many more.

Out of 71 companies contacted, 27 companies responded in order to buy whey

powder. These companies have the applications majorly in export, bakery &
confectionary, feed industry and pharmaceutical industry. Conclusion derived
out the responses received from these companies has been represented in the
pie-chart. For database and response sheet see attachment at the end.

57
 WHEY UTILISATION IN INDIA AS PER OUR
FINDINGS

FEED INDUSTRY (10%)

BAKERY & CONFECTIONARY

INDUSTRY (20%)
EXPORT (50%)

PHARMACEUTICALS (12.5%)

MISCELLANEOUS (7.5%)

From the above pie chart is clearly known that majority of the whey powder is
exported. It also has some application in bakery & confectionary industry. Very
less percentage of usage was observed from feed and pharmaceutical industry.
Since it is a new concept for Indian market, the usage of the product is not very
well known to the people and high level of awareness is required for marketing
the product.

As per the responses received from the companies, it was observed that
demineralised whey powder, particularly 70% DM, accounts for major share in
the market. Moreover, WPC 35 and WPC 80 are also increasing in their market
share at faster rate. WPI is also increasing moderately.

58
 PRODUCT CONCENTRATION AS PER OUR
FINDINGS

40% DM (19.56%)
70% DM (50%)
WPC 80 (10.86%)
WPC 35 (15.24%)
ISOLATE (4.34%)

On the successful registration of few clients such as BOMBAY AMPOULES

PRIVATE LIMITED, MUMBAI (please find the registration copy at the end),
it was found that, what Amul is offering to them is more qualitative than what
he was earlier buying it from a Poland based company. Certificate of Analysis
of Whey powder of Poland based company has been attached in the project.
ANNEXURE-5.

On the other hand, AGRI BEST B.V., Holland based company having its
country establishment at Faridabad, requires 3000 MT per month of whey
powder completely for export purposes. Profile of the company has been
provided in ANNEXURE-6

59
 SWOT ANALYSIS

Strength:

v India, including the project’s region, has a large herd of buffalo, milk of
which produces more milk in the organised sector.
v The delivery price of milk in India is one of the cheapest in the world.
v Since Amul is using state-of-the-art technology, which has been sourced
from the best of the equipment from India and rest of the world from
renowned manufacturers. This has promised quality production.
v The high profitability has generated substantial retained profit which will
lead to the scope for doubling the plant in 2 years’ time.
v Raw material is readily available and at a minimum cost within Gujarat.
v Good export potential to EU, USA, Middle East, Asia, Africa, and China
etc.
v Support of strong technical experts.
v Benefits of value addition.
v Abundant availability of cheap, skilled and unskilled labour.

Weakness:

v Unlike most of the other manufacturing industries dairy is an industry

which calls for strict observance of the requirements of Preservation of
Food Adulteration Act, Food & Drug Administration (USA), Pollution
safety and norms of other similar and other regulatory bodies.
v Pershability of the milk and low productivity of milk animals.

Opportunity:

v Demand for whey powder is very high in the EU, USA, Middle East,
Asia, Africa, China etc. markets.
v Value addition to the whey is another way of exploring and penetrating
market.

60
Threats:

v Inability of WTO, and EU and other countries, to seriously enforce the

goal for a subsidy-free global market.
v Continuous changes in government policies.
v Delicensing of the Dairy Industry which will attract the large number of
the entrepreneurs.

61
 Research Methodology

The research was conducted from 10th May, to 10th June, 2010. The research
included:

Desk research

The research involves the discussions with Senior Executive (Sales and
Marketing) and General Manager (Production) regarding the marketing and
technical aspects of Whey Powder.

Moreover, production related technicalities and queries were handled by

Assistant Manager (production) and Senior Officer (production), at Khatraj
Satellite Dairy.

Primary Research

This research was carried out with the purpose of collecting data from the
source. Different research instruments used for collecting the data are:

v Letter and Sample Dispatch: Letters were drafted on the name of the
concern person and samples were dispatched along with the letters to
their mailing addresses. ANNEXURE- 7.

v Telephonic Discussions: Data’s were collected through telephonic

conversation with regard to price, quality, quantity, dispatch etc.
Information regarding their current suppliers, quality and prices were also
collected.

v E-Mails: Technical queries and further communications like other query

handling, feedback and arranging for business meeting and plant visit
were done through e-mails on a regular basis. ANNEXURE- 8. (Draft
and a filled copy of feedback form).

v Business Meeting: Personal interaction is indeed a requirement for

further round of negotiation followed by plant visit and registration.

62
 Business to Business Marketing

As the project involved exploration of Whey Powder industry through B2B

marketing, the major learning was to embrace the holistic marketing principles
in context to Business Market keeping in mind Amul as a Co-operative. Amul
has the hierarchical system known as the “Anand Pattern”. The role of GCMMF
for the support services and technology in marketing the products has made
Amul a leading brand. Brand building does not happen only with advertising,
there has to be an integrated brand strategy and the success of a brand depends
on a number of factors like Distribution, Pricing, Customer servicing,
Segmentation, Positioning and Communication. A brand can be bought, but
building it requires time, effort and involvement. Amul believes in creating a
Brand image by offering Quality products at affordable prices, and has been
successful in doing so.

Since Whey Powder is a new venture for Amul, it has decided to go for
Business to Business marketing for bulk selling rather than going for branding
of the product, in order to have a close monitor on the buying patterns of
ultimate consumers, level of production, investment and consumer spending.
The basic aim is to slowly expand the Consumer Market through proper
distribution, pricing, customer servicing, segmentation positioning and
communication of Whey Powder. The project gave a deep insight on Business
Market with respect to the following:

• The geographical concentration of the buyers (few and bulk buyers).

• The technical complexities (documentation & registration).
• Customized products timely delivery and services.
• Purchase decisions based on technical expertise sought (senior
management and technical expert’s involvement).
• Involvement of cross functional teams (buyers and sellers).
• Direct channel with emphasis on personal selling (eliminating
middlemen).
• Price negotiation.
• Building strong interpersonal relationship.

The task involved a great opportunity and a challenge in terms of product

specifications, price limits, delivery terms and time, service terms, payment
terms, order quantities, acceptable and selected buyers on the basis of their
demands. However, Amul a well known Brand for its Quality products, helped

63
serve the buyers with the best as a Brand plays an important role in establishing
trust and customer’s willingness to consider change.

In case of Business Marketing, the market for a product or service is smaller

and has more specialized needs reflective of a specific industry, therefore an
understanding of the organizations hierarchy system, procedures, purchase
process, roles played by different people and criteria used by different
functionaries for decision purposes helps in targeting the market. Amul
concentrated on multilevel in-depth selling of Whey Powder targeting high
volume customers being traders, exporters, pharmaceutical and nutrition
supplements industry, bakery and confectionery, and the manufacturers. Focus
being on the key players, Amuls business marketing strategy for Whey Powder
selling was to reach out for maximum buyers allover India and to have a good
business intelligence in order to increase the scope from the response rates to
final selling and building long term relationship.

64
 Constraints Faced

This report had to work under several constraints. Some of the key constraints
are:

1. Time period of the project was 8 weeks, which was little bit short to

explore the whey market fully.

2. Few responses have been received and some of the parties took long time

to respond.

3. Some of the clients did not know the technical know-how for whey

utilization.

65
 Findings and Conclusion

Findings:

v “Quality is remembered long after the prices are forgotten”, this is indeed
a long term strategy of Amul to provide quality goods. As per the
research and comments received from the clients, it was observed that the
quality of Whey Powder offered by Amul was far better than others
including the international players, in the market. ANNEXURE- 5.
v Offering quality goods at reasonable prise is also a long term vision of
Amul, which was indeed implemented in selling Whey Powder.
v Amul is one of the most recognised brands in the world, which was
indeed a great help in the execution of the project.
v As explained before, for Indian Producers, export seems to be the biggest
option for marketing Whey Powder of different varieties.
v Amul does not have the Export Inspection Agency (EIA) certificate,
required for the export of Whey Powder.
v Demineralised Whey Powder has a big market but also the consumption
of Whey protein concentrate and Whey Protein Isolate is also increasing
at a faster rate.
v Since, in India, whey powder market seems to be at initial stages, it
indeed requires a great level of awareness to be created among the
consumers.
v Value addition seems to be another option for Whey.
v Whey Powder is likely to replace Skimmed Milk Powder, to a certain
level, in terms of cost reduction.
v Khatraj Satellite Dairy is one of its kinds in terms of the technology and
production capacity of whey powder.

66
Conclusion:

v Amul was successful enough in providing quality product at reasonable

prices.
v This project aimed at selling 1800 MT per month capacity of Whey
Powder but it is ensured to receive orders of 3000 MT per month, leading
Amul to a shortage of 1200 MT per month.
v Presently, Amul is producing Demineralised Whey Powder, which has
big market share, but WPC and WPI are also gaining importance in terms
of market share. So, Amul’s Research and Development should think in
this direction.
v Since, export of whey powder has greater advantage for Indian Producers
of Whey Powder, but Amul is still not into the exports of whey powder.
v Value addition to the product is the basic core requirement for the success
in Whey powder Industry.
v Last but not the least, “All’s Well That Ends Well” as Amul’s brand
image was indeed a great help in the success of this project.
v Availability of whey powder was observed in different attractive
packaging with different packaging sizes and in different types too like
heat sealed packaging demanded for export of whey powder.

67
 Suggestions and Recommendations

“Suggestions and recommendations are not only meant to be analysed but

a hard core implementation is advised”.

v EIA Certificate: As export has got the major stake in the Indian Market,
it is highly recommended that Amul should get the EIA certificate
required for export of whey products.
v Awareness: Since Indian market is at the initial stage of whey, there are
so much of opportunities to be exploited which require aggressive
promotion and awareness campaign.
v Value Addition to Existing Products: Amul has varied range of
products such as Amul Butter, Amul Milk Powder, Amul Ghee, Amul
Infant Milk Food, Amul Cheese, Amul Chocolates, Amul Shrikhand,
Nutramul, Amul Dairy Whitener, Amul Ice-Creams, Amul Kool, and
Amul Bread. Application of Whey Powder to these products would
certainly add value to these products and will assist Amul in “Captive
Consumption.”
v Innovation: Innovation is the key to success in every prospect of life.
This in turn has got much relevance in whey industry. It is highly
recommended that Amul should come out with a “Whey Based
Supplement” having its concentration in WPC and WPI, because as per
the research and comments received from the clients, it was observed that
WPC and WPI are gaining importance in terms of market share with help
of innovative products like supplements.

PRODUCT CONCENTRATION AS PER OUR

FINDINGS
40% DM
70% DM
WPC 35
WPC 80
ISOLATE

68
As per the research data of 3A Business Consulting, WPC 35, WPC 80 and WPI
have growth rates of 5 percent, 15 percent and 11 percent respectively, around
the world. Moreover, WPH is also growing at faster rate of 14 percent annually.

GROWTH RATE
16

14

12

10

0
DM WPH WPC 35 WPC 80 WPI

Source: 3A Business Consulting

v Brand: Amul, the flagship brand of the country, is highly recognised in

the world for providing quality goods at reasonable prices, so it is highly
recommended that Amul should introduce a Whey Based Product in the
market as recommended above and due advantages are likely to be from
its strong Supply Chain Management.
v Packaging: Apart from selling whey powder in bulk quantities, Amul
should come out with attractive and different packaging types and sizes
of whey powder for retail commercialization.

69
 Annexure-1

Product Specification- 40% Demineralized Whey Powder.

Description: A non-hygroscopic food grade powder resulting from the drying of

pasteurized and demineralized Whey.

Analysis Max / min as noted

Moisture (vacuum) ≤5 %
Butterfat (ether extraction) ≤1.5 %
Protein 11 % min.
Lactose 73 – 79%
Titratable Acidity (6.5% sol as ≤ 0.15 %
lactic acid)
Salt ≤ 3%
PH (6.5% solids basis) 5.3 min
Ash (g) ≤6%
Bacterial estimates (SPC) ≤20,000 cfu/g
Coliforms ≤10 cfu/g
Salmonella (2x375gcomposite) Negative to Test
+
Staph c (1x/shift individual plates) Negative to Test
Scorched Particles ≤Disk B (15mg)
Granulation NA

Appearance Uniform white to light cream in color, free flowing and free of
lumps that do not break up under slight pressure.
Flavor Normal whey flavor, but may have fermented, bitter, storage
and utensil flavor with definite whey and feed flavor possible.
Shelf Life and Storage 12 months, storage in ambient temperature as dried product
can absorb odor and moisture, store in a cool dry and place for
maximum shelf life.
Information printed Details of the product, address, manufacturing and expiry date,
quantity and weight.

70
 Annexure-2

Certificate of Analysis of 40% Demineralized Whey Powder of Amul

This is to certify that the Demineralized Whey Powder having Batch No H100
conforms to the following as stated below.

Parameters Analytical results

Moisture % Max. 3.15
Fat % Max. 2.0
Protein % Min. 15-18
Whey Protein Min. 10 %
Lactose Min 65 %
Minerals Max. 8 %
Neutralizers test Negative
pH of Reconstituted 6.90 – 7.0
product( in 10% Solution )
Acidity Max. 1.40 %
Solubility Min. 99 %
Bulk Density 620g/cc +/- 10 %
Physical condition Free flowing and free from any foreign
objects/substances, solution of the reconstituted
product with water on boiling is free from clots.
Organoleptic Product having clean, pleasant and free from any
Characteristics objectionable odor and taste

Shelf and Storage Life 9 months from manufacturing date when stored in a
cool and dry place.

71
 Annexure-3

Product Specification- 70% Demineralized Whey Powder.

Description: A non-hygroscopic food grade powder resulting from the drying of

pasteurized and demineralized Whey.

Analysis Max / Min

Moisture Max. 3 %

Butterfat Max. 1.2 %

Protein Min. 12 %

Lactose Min. 75%

Acidity Max. 0.12 %

Salt Max. 2%

PH (6.5% solids Min.5.3

basis)
Ash Max. 3%

Solubility index Max. 0.3

Characteristics Tinge of yellowish color, free flowing and

free from any foreign particle.

72
 Annexure-4

Certificate of Analysis of 70% Demineralized Whey Powder of Amul

This is to certify that the 70 % Demineralized Whey Powder having Batch No

H139 conforms to the following as stated below.

Parameters Analytical results

Expiry 9 Months from packaging when stored in cool & dry

place

Organoleptic Product having clean, pleasant and free from any

Characteristics objectionable odor and taste

Physical condition Free flowing and free from any foreign

objects/substances, solution of the reconstituted
product with water on boiling is free from clots.

Moisture % 2.06

Fat % 3.0

Protein % 15 – 17

Ash % Max. 2.60

Neutralizers test Negative

pH of Reconstituted 6.43
product

( in 10% Solution )

Acidity 1.53 %

Solubility Min. 99 %

Bulk Density 620g/cc +/- 10 %

73
 ANNEXURE-5

SPECIFICATION OF DEMINERALISED WHEY POWDER BY

M/S BOMBAY AMPOULAS OF A POLAND BASED
COMPANY
Sl. No PARAMETRES SPECIFICATION

Rev. No. : 001

A. PHYSICAL AND CHEMICAL QUALITY

1. Description Product is free from hard
lumps and extraneous
matter
2. Flavour and Taste Sweet
3. Colour Light Yellow
4. Scorched Particles max Upto to disc C (22.5 mg)
5. Moisture % max. 4.00
6. Fat % max. 1.00
7. Protein % max. 8.00
8. Ash (Minerals) % max. 8.20
9. Titrable Acidity % max. 1.30
10. Lactose % min. 78.80
B. Bacterial Analysis
11. S.P.C. /G max. 40000

12. Coliform / 0.1g Nil

74
 ANNEXURE-6

PROFILE

OF

AGRI-BEST B.V.

Background: With our Head-Office based in Holland and Offices in

Australia, China, Egypt, United Kingdom and the USA. We have the capability
and resources to market and trade dairy products worldwide. Our global
approach enables us to source from important milk producing areas in the world
(in Australia, Eastern Europe, European Union, South America and the USA).
Our Products are exported to countries all over the world.

Products: We offer a wide range of dairy products- in bulk packaging for

industrial use and in consumer packaging- which are sourced from reputable
and approved manufacturers in various countries in Australia, Eastern Europe,
European Union, South America and the USA.

Our products are marketed under AGRI-BEST and BEST WAY brand for
bulk packaging and ROYAL DELITE and ROYAL FRISIA , for consumer
packaging. In addition we can offer a range of blended dairy products as
replacement or as ingredients in food application.

Our Activities: For many years, AGRI-BEST has been a leading exporter in
dairy products to countries all over the world. We have a broad base of
customers in the recombining industries, ice-cream and confectionery
industries, and manufacturers of bakery products, wholesaler and distributors of
dairy products in bulk and consumer packages. We are accredited suppliers of
major users in many countries.

Our Drive: AGRI-BEST’s drive is always to satisfy for dairy products in a

reliable way and competitive prices.

“Big enough to Serve, Small enough to Care”

75
 ANNEXURE-7

No: Whey Powder/ Date: 18/05/2010

Mr. Gopal Sharma

Agri Best B. V.
SCF 166, Second Floor,
Sec.-9 Market
Faridabad-121006, Haryana, India.

Subject: Sample of 40% & 70% Demineralised Whey Powder

Dear Sir,

We are Kaira District Cooperative Milk Producers Union Limited,

popularly known as AMUL.

We have started manufacturing whey powder at our Khatraj plant, using

state of the art- GEA microformula with a new membrane system.
The plant presently produces whey powder in two varieties, 40% & 70
% demineralised whey powder.

Our full-fledged operational capacity is 60 MT per day. Moreover, we

have capacity to match the specification as per demand. We offer you,
both the product in bulk packing of 25 kg, presently. We are sending you
the sample of both the product for your reference please.

It would be a great honour for us to work with your esteemed

organization and we definitely ensure to serve you in the best interest of
your organization.

Your positive response would be greatly appreciated.

Dr. Gopal Shukla

Sr .Executive (Sales & Marketing)

76
 ANNEXURE-8

FEEDBACK FORM

NAME OF THE COMPANY: ..............................................................

CONTACT PERSON: ...........................................................................
ADDRESS: .............................................................................................
.............................................................................................
PHONE: ..................................................................................................
E-MAIL ID: ............................................................................................

Q.1. WHAT KIND OF A BUSINESS CONCERN ARE YOU?

MANUFACTURING TRADING
BOTH

Q.2. HOW LONG HAVE YOU BEEN IN THIS BUSINESS?

LESS THAN 5 YEARS 5 – 10 YEARS

10 – 15 YEARS MORE THAN 15 YEARS

Q.3. WHICH WHEY POWDER DO YOU SELL? (MULTIPLE WHEY

PRODUCT TYPES).

PLEASE SPECIFY....................................................................

77
Q.4. WHO ARE YOUR ULTIMATE BUYERS? (MULTIPLE
SELECTION)

FOOD INDUSTRY (BAKERY AND CONFECTIONARIES)

PHARMACEUTICAL INDUSTRY

HEALTH SUPPLIMENT

OTHERS IF ANY...................................

Q.5. IN WHICH WHEY POWDER CONCENTRATE ARE YOU

INTERESTED IN? (MULTIPLE SELECTION)

SPECIFY IF ANY OTHER...............................................................................

Q.6. HAVE YOU LAB TESTED OUR SAMPLES OF WHEY POWDER?

YES NO

IF YES, THEN PLEASE PROVIDE US WITH Q.C. REPORT OF THE

SAMPLE & IF NO, THEN PLEASE PROVIDE US WITH YOUR
PRODUCT SPECIFICATION.

Q.7. WHAT YOU FEEL ABOUT AMUL WHEY POWDER? (Please write
in the space provided)

PRICE – QUANTITY – PROTEIN CONTENT –

FLOWABILITY – SOLUBILITY – TASTE –

(RANK ON THE SCALE OF 1-5, WHERE 1 BEING THE HIGHEST

AND 5 BEING THE LOWEST)

78
Q.8. FROM WHICH COMPANY DO YOU BUY WHEY POWDER
(PLEASE SPECIFY).

(1)................................................
(2)...................................................

Q.9. AT WHAT PRICE DO YOU BUY THE WHEY POWDER?

PLEASE SPECIFY..................................................................................

Q.10. IN WHAT PACKING DO YOU BUY WHEY POWDER?

PLEASE SPECIFY.....................................................................

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 References

Literature Review:

v Managing Complex Network in Emerging Market: The story of Amul, by

Pankaj Chandra and Devanath Tirupati, IIM- Ahmedabad, Working Paper
No. 2002-05-06.
v Marketing Management, 13e : A South Asian Perspective by Abraham
Koshy, Mithileshwar Jha, Philip Kotler and Kevin Keller.

Websites:

v www.amul.com
v www.gea-india.com
v www.geagroup.com
v ta@3abc.dk
v www.indiamart.com
v www.tradeindia.com
v www.alibaba.com
v www.fil-idf.org
v www.wikipedia.org

Other References:

v Yellow Pages
v Amul Food Guide by GCMMF

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