This video is a business case study about how a 17-year-old boy named Satish Kumar built a 2,000 crore dairy company named Milky Mist. The video discusses the challenges faced by the dairy industry and the strategies that Satish used to overcome those challenges.
The Indian dairy industry is a brutal one with low margins and short shelf life of products. Amul, a giant competitor, had established a strong presence in the market. Satish’s family business was struggling due to low margins and lack of logistics.
Satish identified that adding value to milk products was the key to increase margins. He started selling paneer and ghee instead of just milk. This strategy helped Milky Mist to increase their margins significantly.
Another challenge was logistics. Since milk products are perishable, they have a short shelf life. Outsourcing logistics was not an option because it would result in lack of control over quality. Milky Mist decided to buy their own trucks and built a return logistics system to improve efficiency.
In conclusion, the video talks about the importance of value addition and branding to escape the price wars in a commoditized market. Collaboration with partners and control over quality are other important takeaways from this case study.
<aside> 💡 MARGIN OF PRODUCT IS DIRECTLY PROPORTIONAL TO THE VALUE YOU ADD TO THE PRODUCT
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<aside> 💡 LESSON 1
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SUPPLY PROBLEM:
One issue is that farmers werent loyal to any company
so to build trust milky mist did three things
allow them loans based off milky mist reputation
started animal health care for those farmers