The story of Milky Mist is one of ambition, resilience, and innovation. It all began in the small town of Erode, where a 16-year-old T. Sathish Kumar, driven by his dreams, left school to assist his father in a struggling milk business. Through hard work and dedication, Sathish Kumar transformed the business, gaining expertise and achieving operational efficiency.
Recognizing the growing demand for paneer, Milky Mist made a significant leap by establishing a fully automatic, state-of-the-art paneer processing plant with custom-built technology from Germany. Paneer became the signature offering of Milky Mist, setting the foundation for the company's reputation for quality and innovation.
Over the years, Milky Mist expanded its product range, adding curd and butter in 2004 and diversifying into a wide array of value-added dairy products by 2010. Today, Milky Mist manufactures and supplies nearly 20 different dairy products across India and beyond.
A key factor in Milky Mist's success is its fully owned logistics chain, which ensures superior control over quality and distribution. This commitment to excellence has propelled Milky Mist to become a trusted name in the dairy industry, known for its high standards and wide-ranging product offerings.
This report delves into the remarkable journey of Milky Mist, exploring its strategic decisions, technological advancements, and unwavering dedication to quality that have driven its growth and success in the competitive dairy market.Milky mist is a dairy product company, producing a wide range of milk and milk-based products. Each product undergoes meticulous supervision to provide the customers with the best quality. The focus on the quality begins at the stage of milk reception and goes on till the product is delivered in the hands of the customer. Each stage of the process and every small test carried out on the product is being logged to ensure that they have enough data to trace in case of a customer complaint.
ECONOMIC IMPACT:
The company is also striving towards zero waste generation, all the waste produced is converted into bio gas, which produces Methane. This methane is used to run many machineries, thus conserving the electricity. They also have many solar panels that is being used to satisfy their energy needs. Thus, this company powers their plant using renewable sources of green energy. A good hygiene management system is put in place to ensure that the food handlers and the pack handlers follow stringent measures to keep the product clean. As milk is a highly perishable product, hygiene is extremely important in the plant. For the betterment of the community, the company has offered employment for more than 1 lakh people. Some of the products they produce are paneer, curd, butter, ghee, cheese, ice-cream, milkshakes, sweets etc. PRODUCT RANGE:
Milky Mist Product Categories
➢ Paneer
o Soft, creamy paneer in hygienic multilayer thermoforming packaging.
➢ Butter
o Smooth and uniform texture butter for spreading and cooking.
➢ Cheese
o 12 different variants of cheese, rich in calcium and protein.
➢ Curd
o Fresh curd for a healthy tummy and heart, used as a cooking ingredient or eaten as is.
➢ Ghee
o Pure ghee, blending taste and nutrition for various dishes.
➢ Desserts
o Traditional Indian sweets like Shrikhand, Kalakhand, Payasam, Mishti Doi, and Rasgulla.
➢ Food Enhancers
o Khova, Fresh Cream, and other dairy-based enhancers.
➢ Fruit Yogurt
o Eight different flavored yogurts, blending fruity flavors and nutrients.
➢ Premium Yogurt
o Greek yogurt offering a probiotic boost and creamy texture.
➢ UHT Products
o Long shelf life milk products including Milk, Milk Cream, Milkshake, UHT Lassi, and Spiced Milk.
➢ Ready To Drink
o Beverages such as Lassi, Milkshakes, and Buttermilk.
➢ Condensed Milk
o Sweetened condensed milk for baking and dessert recipes.
➢ Ice Cream
o Various flavors of ice cream.
➢ Capella Chocolate
o Roasted and ground seeds of the cacao tree made into chocolate.
➢ Asal
o Half Cooked Chapati for quick preparation.
➢ Smart Chef
o Frozen Pizza, Paneer Crunchies, and Paneer Tikka for quick and easy meals.
PROCESS PRODUCTION FLOW CHART
PANEER PRODUCTION:
Paneer is a type of cheese that is coagulated by an acid and is soft in nature. It
does not need to be aged before consumption nor it melts on cooking. The paneer is commonly used as a protein source in the vegetarian diet as it is a good protein alternative to meat. Since it’s a high protein, low carbohydrate product, it is ideal for a person looking for weight loss. Here in milky mist, paneer is one of the most sold products. This is processing steps are as follows
Standardised milk from LMP comes into the silos
The milk is heated to the required temperature and is filled into multiple basins
The milk is dosed with vinegar
The acid dosed milk is agitated to evenly distribute the vinegar
The milk curdles quickly
The basin overturns and empties it content into a tray (only the casein particles whereas the whey is drained down)
The curdled particles are pushed into the same level so the final blocks are uniform There are different sizes for the final product, the paneer comes in sizes of 100g, 200g, 500g and 1kg blocks. They are packed in the form of fresh paneer using vacuum packaging. And they also come in frozen cube form which is packaged using the modified air packaging method. The packaging machinery that is being used here is extremely advanced and almost all the work is automated, there is very little direct human contact with the food CURD PRODUCTION: Curd making process begins with coagulation of the pasteurised milk using a culture of different thermophilic bacteria. Curd is a fermented dairy product that has a higher SNF and is really important for the healthy functioning of many organs. The curd also acts as the appetite booster and here in milky mist, the different types produced are the set curd, pouch curd, diet curd and the probiotic curd. The curd making process is as follows. Process:
Milk the is standardised for curd comes from LMP
Downstream pasteurisation happens in 2 stages
Culture is added to the milk
The culture added milk is mixed thoroughly for uniform distribution
The mixture is packaged in the containers in the liquid form
The containers are then kept in the incubation room (pH decreases and the acidity increases)
The curd is allowed to set
Once the curd is set, the containers are kept in the blast room to arrest and maintain the pH, so the curd does not get sour, till ready for dispatch.
The main difference between the set curd and the pouch curd is the SNF percentage. The culture is the difference in the set curd and the probiotic curd. The diet is curd is very similar, only the fat percentage is very less. The cip carried out here also involves the use of fresh water, lye, acid and hot water. The shelf life of the products are as follows: • BSet curd – 40 days • Pouch curd – 40 days • Probiotic curd – 30 days • Diet curd – 15 days • Export curd – 60 days FRUIT YOGHURT PRODUCTION:
Yoghurt is a fermented milk product, that uses different bacterial culture for its fermentation. The milk sugar ferments because of the microorganisms in the culture and produces lactic acid. This acid interacts with the proteins in the milk and contributes to the texture and the taste of the yoghurt. Fruit yoghurt is a simple dessert that is obtained by adding fruit pulp and flavouring to the yoghurt.
Process:
Milk from curd section, cream and skim milk powder is mixed
This mixture is pasteurised
Pasteurisation is followed by the homogenisation process
The mixture is immediately cooled
It is heated again to a specified temperature
Culture is added at this stage
This mixture after adding the culture is allowed to sit in the
tank for incubation
chilling
This mixture after cooling is sent to the curd section
Fruit crush/pulp/colour is added
Fruit crush is mixed with the yoghurt in appropriate quantity
Mix well
Packaging – the yoghurt is put in plastic cups and the top is sealed off with a foil layer using heat induced sealing
Sent to blast room for storage
PROCESSED CHEESE PRODUCTION:
The processed cheese is a type of cheese that is made by blending the natural cheese or the original cheese along with ingredients like emulsifiers, stabilisers, water etc. this begins by melting the cheddar cheese and then adding all the ingredients. This improves the flavour of the cheese and also drastically increases the shelf life of the product. This kind of cheese is extremely smooth and soft and well and it melts very quickly. The types of processed cheese produced in milky mist, or as follows, the cheese cubes, the cheese slices, that in the cheese and cheese blocks. Hence, the main primary ingredient here is the cheddar cheese. Based on the requirement or the formulation, the young, medium or the sharp cheese is chosen.
Process:
The cheddar cheese is ground
The cheese is blended/mixed along with water, stabilisers and emulsifiers
The mixture is cooked
The cheese is packed while it’s still hot
For the cheese blocks, the processed cheese is filled in the aluminium foil that’s shaped in the form of cuboid, the edges are folded over to cover the top of the cheese and for a 1kg pack, two 500g packs are fed into the laminated mono cotton box, which has the ability to remain intact even in the presence of heat. The box then heads over to the printing area to get the batch code, packaging date, expiry date and the MRP printed. These cheese blocks are sent inside a spiral cooler for a few hours to cool the temperature of the blocks before they are packed into the carton boxes for dispatch. If the cheese slices are being packed, the cheese is allowed to run and fill the LDPE packets, and this is passed through a set of rollers to thinly and evenly spread the cheese into a slice. This packet, as it is extremely hot, is run under cold water to cool down its temperature. The long strip of the slice is cut into the set size and is stacked according the sku before a secondary package is applied. The secondary package is packaged using the MAP technology and by flushing it with nitrogen gas to increase the shelf life. UHT AND ICECREAM PRODUCTION:
The ultra-high temperature processing is one of the most commonly used
methods in the milk product/ dairy industry. This method is used in the preparation of products like milkshake, lassi, buttermilk
Process:
Milk comes from the LMP
Pasteurisation and homogenisation
UHT treatment- it’s heated to a pre-set temperature and cooled immediately
Aseptic storage
The outer package - the bottom is sealed and it’s sprayed with hydrogen peroxide
The residue is removed using hot air
The product is filled
The top is sealed and the side flaps are folded
The cap is applied
Tertiary packaging Ice cream is a frozen dessert that is usually made with milk or mostly cream from the milk, along with it some stabilisers and flavouring are added to bring a difference to the taste. Some stabilisers and preservatives are also being added by the company to improve the shelf life and the texture as quality of the product that is received by the customers for consumption. It has a very smooth texture and it is almost solid at very low temperatures.
Process:
High fat milk comes from LMP
Sugar, liquid glucose, stabilisers and milk solids are added
Blending or mixing Heating
Pasteurisation of the mixture
Homogenisation
Aging
Flavouring
Freezing (air is incorporated to get the scooping consistency)
Packing
Hardening CHALLENGES AND STRATEGIES :
Challenges Faced by Milky Mist
➢ Commodity Market Dynamics: The dairy industry posed significant challenges due to commoditization, low profit margins, and intense competition from established players like Amul.
➢ Supply Chain Fragmentation: The fragmented nature of milk sourcing from numerous small dairy farmers presented logistical and quality control challenges.
➢ Farmer Loyalty and Quality Assurance: Gaining the trust and loyalty of dairy farmers while ensuring consistent quality standards proved to be a daunting task.
Strategies Employed by Milky Mist
➢ Value Addition and Branding: By shifting focus from commoditized milk to value- added products like paneer and ghee, Milky Mist differentiated itself and increased profit margins significantly. ➢ Partner Collaboration: Milky Mist adopted a collaborative approach with dairy farmers, offering financial assistance, veterinary services, and technological support to improve milk quality and ensure a stable supply chain.
➢ In-House Logistics Management: Recognizing the importance of quality control in
logistics, Milky Mist invested in its fleet of refrigerated trucks and cold storage facilities to maintain product integrity and efficiency.
ANALYSIS
➢ Value Addition Mitigates Price Wars: Transforming commodities into value-added
products allows companies to escape price wars and enhance profitability.
➢ Collaborative Partnerships Drive Success: Rather than exploiting partners, fostering
collaborative relationships with stakeholders can lead to mutual benefits and long-term success.
➢ In-House Control Over Quality: While outsourcing may offer short-term cost savings, maintaining in-house control over critical operations like logistics ensures quality and efficiency, ultimately leading to sustainable growth.
The power of innovation, collaboration, and strategic management in building a legendary brand, consider the following points:
1. Innovation: Milky Mist's success can be attributed to its innovative approach to product development and marketing strategies. For instance, the company introduced a range of dairy products beyond traditional offerings, catering to evolving consumer preferences and dietary trends. This innovative product diversification helped Milky Mist differentiate itself in the market and capture new segments of customers.
2. Collaboration: Collaboration played a crucial role in Milky Mist's growth trajectory. By
forging strategic partnerships with suppliers, distributors, and retailers, the company was able to expand its reach and distribution network rapidly. Collaborating with farmers and dairy cooperatives also ensured a steady supply of high-quality raw materials, enabling Milky Mist to maintain consistency and reliability in its products.
3. Strategic Management: Under the leadership of Satish Kumar, Milky Mist
demonstrated effective strategic management practices that fueled its success. This includes meticulous market research to identify emerging trends and consumer preferences, proactive decision-making to capitalize on growth opportunities, and agile adaptation to changing market dynamics. By staying ahead of the curve and anticipating industry shifts, Milky Mist was able to stay competitive and sustain its momentum. 4. Value Addition: Milky Mist's focus on value addition set it apart from competitors. Through continuous investment in technology and process improvement, the company enhanced product quality, extended shelf life, and optimized production efficiency. By offering superior value to customers in terms of taste, freshness, and nutritional content, Milky Mist built a loyal customer base and strengthened its brand reputation over time.
5. Quality Control: Quality control was non-negotiable for Milky Mist, reflecting its commitment to excellence. Rigorous quality assurance measures were implemented at every stage of the production process, from sourcing raw materials to packaging and distribution. This unwavering dedication to quality not only ensured customer satisfaction but also earned Milky Mist various certifications and accolades, further reinforcing its credibility and trustworthiness in the market.
In summary, the journey of Milky Mist and the entrepreneurial vision of Satish Kumar serve as an inspiring blueprint for aspiring business leaders navigating the complexities of today's competitive landscape. Their story highlights the transformative impact of innovation, collaboration, and strategic management in not only surviving but thriving in dynamic market environments. As we reflect on their remarkable achievements, let us be reminded that success is not merely about overcoming obstacles, but about embracing change, seizing opportunities, and relentlessly pursuing excellence. By embracing these principles, entrepreneurs can chart their own path towards building legendary brands that leave an indelible mark on industries and communities alike. So, as you embark on your entrepreneurial journey, remember the lessons from Milky Mist: dare to innovate, cultivate meaningful partnerships, and always strive for the highest standards of quality and integrity. The possibilities are limitless, and the potential for greatness knows no bounds.
