new delhi indian billionaire ravi jaipuria pepsicos biggest bottler in south asia is looking to enter the countrys highly unorganised rs 3 lakh crore dairy market by extending his creambell ice cream brand jaipuria who runs the largest indian franchisee of kfc and pizza hut restaurants and has exclusive franchise rights for coffee chain costa coffee is looking to buy a dairy plant here to manufacture valueadded dairy products such as cheese butter lassi and yoghurt industry experts say jaipurias move is strategic since pepsico chief indra nooyi had said the food and beverage major will explore bringing dairy products into india such as readytodrink breakfasts pepsicos rival cocacola is also firming up plans to enter the sector indians are increasingly looking at goodforyou products and dairy is one of them jaipuria told toi earlier people made dairy products such as yoghurt and paneer at home but now they prefer buying packaged products the sector will get hotter in the future if pepsico shows an interest in it we are ready to tie up with them it will take us around six to eight months to get everything in place at present jaipuria operates two dairy brands in africa creambell and daima india may be one of the largest producers of milk but per capita consumption is very low compared to the developed markets consumption can only grow when valueadded dairy products become a part of the daily diet of indian consumers like it has happened in the west the market for valueadded dairy products in india is in a nascent stage for instance branded dahi yoghurt is just 10 of the total dahi market in the country these products add to a companys bottomline since margins from plain milk is so low better margins will mean more spends on marketing by dairy companies which we dont see at present said subhasis basu dairy head at mother dairy indias dairy industry is likely to see high growth rates in the future according to the national dairy development board nddb demand for milk is set to touch 200 million tonnes by 2022 from 132 million tonnes in 2013 revealed a care ratings report interestingly valueadded dairy products such as yoghurt and lassi have higher margins 1218 than milk 45 attracting a slew of big private players such as nestle amul mother dairy britannia and danone into the fray even kolkatabased cigarette and fmcg player itc has recently announced plans to enter the sector with a range of valueadded dairy products around 80 of indias dairy industry is unorganised according to industry estimates valueadded dairy products constitute around 20 of total dairy market although branded products in the segment are still niche its share in milk and milk derivatives segment to grow at 25 yoy till 201920 according to care ratings industry experts say jaipurias move is strategic since pepsico chief indra nooyi had said the food and beverage major will explore bringing dairy products into india such as readytodrink breakfasts pepsicos