The two top milk brands in India are competing to control the growing dairy market, which has taken an interesting twist as the market leader, ‘Amul’ has announced that it will sell milk and curds in Bengaluru, which is the primary territory of the second-largest dairy brand, Nandini, operated by the Karnataka Milk Federation (KMF).
Former CM Siddaramaiah is accusing the BJP governments at the center and state of trying to destroy the Karnataka milk farmers’ brand, though the state government has promised that nothing can disrupt or harm ‘Nandini’.
“In case of such a threat to the state’s brand, the government will not shy away from stepping up to safeguard Nandini,” cooperation minister ST Somashekhar said. The minister stated that Amul has been selling its products in Karnataka for several years, and they now want to introduce milk and curd just as KMF is expanding into other states by selling various dairy products. “I am sure; they cannot match Nandini’s quality, freshness, and affordability.
Amul sells milk at Rs 54 per litre, and KMF is selling it at Rs 39 per litre. Amul is no competitor to Nandini on any of these parameters.” Jayen Mehta, MD of Amul, said, “We are launching next week in Bengaluru. Amul and KMF have a good relationship. We’ve had our presence in Belagavi and Hubballi for many years now. There’s no question of challenging them. We have looked at the data, and customers have shown interest. We will be selling milk only through Quick Commerce and the e-commerce route, not through vendors or other retailers. Mehta said Amul Taaza, Amul Gold, and Amul Curd will be sold online.
Hari Menon, co-founder and CEO of online grocery BigBasket, said, “We have not yet started to sell Amul fresh milk and haven’t taken any decisions on it as yet.”
“All Kannadigas must vow not to buy any Amul products,” Siddaramaiah tweeted. Meanwhile, officials from KMF plan to write to the National Dairy Development Board and the Centre to highlight the principles of the cooperative movement. “Cooperative principles have it that any market is open to others only if there is a deficit. In Karnataka, there is no shortage of milk,” explained a marketing official from KMF. While KMF officials were aware of Amul’s game plan, the timing of the announcement caught them by surprise. “They have been trying to enter Karnataka for over seven years now and are trying hard with just 300 to 400 litres of milk per day in Belagavi and Hubballi.
With no procurement base in Karnataka, they are sourcing milk from Goa, and now they plan to source another 1,000 litres from Madanapalle in AP for the Bengaluru market,” said a KMF marketing wing official.
Market sources revealed that Nandini is giving a tough fight to Amul in other states. “In less than a few years of foraying into other states since 2015, Nandini has emerged second in Goa and is third in Mumbai and Hyderabad. It has forayed into Nagpur, Delhi, and Chennai. Amul’s latest announcement seems to be a move to pip Nandini on its home turf,” explained a market observer.