Search for Cases

Case Details

Case Code: OPER125
Case Length: 8 Pages 
Period: 2009-2017      
Pub Date: 2018
Teaching Note: Available
Price:Rs.300
Organization : Reliance Retail
Industry : Indian Dairy Industry
Countries : India
Themes: Marketing Management/Supply Chain Management  
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

Supply Chain Practices of Reliance Dairy

 

ABSTRACT

 
In 2009, Reliance Dairy Foods Ltd (Reliance Dairy), a subsidiary of Reliance Retail, entered the country’s branded milk product market. It introduced a range of dairy products including milk, curd, butter, and flavored milk. Reliance Dairy had 75,000 to 80,000 liters of milk sale per day, out of which 10 percent was sold through the Reliance Dairy stores and 90% through its distributors. The price of Reliance Dairy was only Rs 28/- per liter which according to some analysts seemed to be value for money. The company claimed that strict hygiene was maintained in production and that its milk was of the best quality. Also, the product was considered to be free from chemicals and preservatives and adhered to the best packaging technology. The milk variants were also modified as per the geographical requirement of customers. The company tried to capture the market by following a strong supply chain and branding strategy. However, sustaining itself in the dairy business was difficult as the market was highly competitive and flooded with several brands such as Amul, Mother Dairy, and Nestlé. In April 2017, Reliance Diary was acquired by Hyderabad-based dairy company Heritage Foods Limited (Heritage). Heritage planned to achieve breakeven in Reliance’s dairy business by closing down milk procurement on loss making routes and shifting the processing and packaging of milk from third party facilities to Heritage’s own facilities. .
 
Operations Case Studies | Case Study in Management, Operations, Strategies, IT and Systems, Case Studies
or
Operations Case Studies | Case Study in Management, Operations, Strategies, IT and Systems, Case Studies
or
PayPal (7 USD)

 

Issues

The case is structured to achieve the following teaching objectives:
  • Study the dairy industry in India.
  • Study the importance of supply chain management in dairy products.
  • Understand the need for managing a balance between demand & supply for a perishable product like milk
Contents
INTRODUCTION
BACKGROUND NOTE
THE INDIAN DAIRY SECTOR
THE LAUNCH OF RELIANCE DAIRY
SUPPLY CHAIN OF RELIANCE DAIRY
THE ROAD AHEAD
EXHIBITS

Keywords

Supply chain management,Reliance dairy,Branding,Competitor analysis,Dairy industry,Mergers

INTRODUCTION - Next Page>>