Friday, August 20, 2010

A Bloody Battle Over Milk

The taste of India is turning spicy with the fight in the branded packaged milk segment intensifying in the heart of India, Delhi and the National Capital Region (NCR). Mother Dairy recently trashed Amul’s claim that the latter is the new leader here. Mother Dairy hit back with vengeance stating that it sells 2.8 million litres per day and not 1.45 million litres per day, as indicated by Amul. Amul had roared a day earlier that it was leading in the branded packaged or pouch milk segment in Delhi/NCR with sales in excess of 1.5 million litres per day. The liquid milk market in the capital is currently above six million litres per day. This includes both packaged milk and loose milk. Amul is not present in the loose milk segment, which also stands at 2.5 million litres in Delhi. Amul still has a long way to go against Mother Dairy since Amul does not have its own milk booths here and it relies on 9,000 retail outlets in the region to push sales. Mother Dairy holds the upper hand with14,000 retail outlets and 845 exclusive stores. However, Amul entered the Delhi market formally in 2005 while Mother Dairy has been present for over 35 years now. The quality at comparatively lower pricing is the factor that makes Mother Dairy beat all other brands that have ever tried to penetrate the heart of India. However, with Amul having a treasure chest far bigger than Mother Dairy, this battle will go right down to the wire.

Anchal Gupta
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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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