labels: mother dairy, foods / beverages, gujarat cooperative milk marketing federation, marketing - general
Amul scouts for alliances in Delhi NCR to increase capacitynews
Another player gearing u
02 December 2003

New Delhi: The recent activities of Gujarat Cooperative Milk Marketing Federation (GCMMF), Paras Dairy and Britannia in the Delhi market indicate that Mother Dairy, the leader of the milk market in the capital, will soon have a fight on its hands to retain its leadership position here.

Delhi National Capital Region (NCR), among the biggest milk markets in the country, is dominated by Mother Dairy currently. Amul and NDDB's non-compete agreement has prevented the former from launching its liquid milk in the Delhi market till 2003.

With the non-compete agreement having run out this year, Amul fresh milk was launched in Delhi last month in two variants - full cream and toned - priced at par with that of Mother Dairy at Rs 18 and Rs 14 per litre, respectively.

Amul, to its delight, has seen the demand for its milk going up by leaps and bounds in the city and is now planning to enter into alliances with dairies located around Delhi such as Indian Potash and Modern Dairy to cater to the demand.

Amul already has a lease agreement with Kwality Dairy's unit in Faridabad where it is planning to increase capacity and has also decided to set up a new 5-lakh litre per day dairy plant at an investment of Rs 40 crore in Haryana to cater to the northern market.

GCMMF officials say the company's milk capacity has already touched 80,000 litres per day (LPD) and have plans to take it to 3 LPD. Amul is now selling through 2,500 retail outlets and will increase this to 7,500 apart from covering outlets which are selling Amul butter.

Another player gearing up to unseat Mother Dairy from the leadership throne is the Rs 400-crore Paras group. The company has hit upon an innovative strategy of introducing milk vending machines which dispense token milk at Rs 13 per litre. Paras says this strategy targets the unbranded milk segment which accounts for 45 per cent of the total milk consumed in Delhi NCR.

The company plans to put up Paras Milk Point (PMP) machines at various fast-moving consumer goods outlets all over the capital. Over 50 machines - each costing over Rs 2 lakh - will be installed in phases over the next four months to cater to toned milk users.

The PMP machines carry about 250 litres of milk and have an in-built refrigerator. Paras brand currently reaches 9,000 outlets in and around Delhi, and the group is looking at penetrating fresh markets in the northern region. Paras' total processing capacity of its three units, one at Haryana and two at Sahibabad in Uttar Pradesh, is 14 lakh LPD.

The Delhi market comprises 40 lakh litres currently and is dominated by Mother Dairy, which sells 10 lakh LPD. The other organised sector players are Paras Dairy, which sells 3 lakh LPD, state-owned Delhi Milk Scheme (2.5 lakh LPD), Gopaljee (1-1.5 lakh LPD) and Britannia 30-40,000 LPD.

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Amul scouts for alliances in Delhi NCR to increase capacity