Why Did Pran Buy Venture Into The Dairy Industry Essay

B. Why did PRAN wish to venture into the dairy industry? Among the agro industries in Bangladesh PRAN is one of the largest industry. Pran is also exporting its item in more than 80 countries. Beverages like fruit juice, cola, water and many other things are being produced by pran. Late in 2002, key decision makers of Bangladesh’s largest agro-processing company PRAN-RFL Group were forward with a new business idea. As Arong and Milk Vita were leading largest share of the milk in the market. So PRAN also wanted to emerge in the market with dairy business. While other companies expanded their businesses by entering into existing markets. The project is to introduce international best practices and knowledge in efficient dairy farming to poor, small scale dairy farmers in Bangladesh as well as establishing a milk collection system allowing collection and preservation of growing volumes of high quality raw milk. This will lead to increased well being of all people living in the villages covered by the 5 dairy hubs.RAN has the ambition to help increase Bangladesh’s milk production from the present 1.75 billion liters per year to exceed 3.5 billion litres by 2025. By 2025, PRAN expects milk powder imports to be fully replaced by locally produced and collected milk. Why did it decide to enter with UHT milk, which was a relatively new concept for the milk consumers in Bangladesh? Pran decided to sell the UHT milk because there were two market player Arong and Milk vita that hadShow MoreRelatedInternship Report on Milkvita14316 Words   |  58 Pagesto be ventilated by entrepreneurs. Moreover new investment the existing entrepreneurs are in a deep ocean of thoughts in deciding appropriate factors in their business. Neither the new entrepreneur fell safe in putting money for new businesses, nor did the existing business houses fall encouraged to expand their business in diversified ways just at the juncture of period to the new global market pattern. This is because of apprehended competition from the world marketers or entrepreneurs like multinationals