From a brand perspective, the world is your oyster and therefore, an Amul can sell in Bengaluru just as a Nandini can sell in Anand.
However, the Nandini-Amul war, triggered recently by the political fraternity, is certainly not a war for a free market or healthy competition, and if left to continue, two largest dairies in the country (Gujarat Milk Marketing Federation’s Amul with a turnover of ₹72,000 crore and Karnataka Milk Federation’s Nandini with ₹25,000 crore) may suffer irreparable brand erosion, cautioned industry observers.
The fact is Amul has been selling some of its products including milk (cartons), butter, cheese, paneer, ice cream, curds etc. in Karnataka for several decades, but its “utterly butterly” chemistry turned “bitterly’‘ when there was a sort of ‘political intervention’ to install Amul as a competition brand in the State formally, they pointed out.
Free marketplace
V. Balakrishnan, Chairman Exfinity Ventures, a venture capital firm, and former CFO, Infosys told The Hindu, “India is a free market economy and everyone is entitled to sell anywhere in the country. The problem comes when politicians try to take sides and push for a particular product and that too during election time. It is sad that the whole issue now takes a political colour and real reasoning takes a back seat.’‘
The air war between Nandini and Amul was also due to a lack of trust between the Centre and State governments as the regional parties thought that the Centre has been trying to roughshod them and promote agendas that were inimical to the State’s interest, Mr. Balakrishnan opined.
“This is an election issue today. It is ‘Rotti, bhattey, maney and haalu’ politics at play. Even this shall ebb out post May 13,’‘ commented Harish Bijoor, a brand expert and CEO of a boutique consulting firm, Harish Bijoor Consults.
The Nandini-Amul debate is a needless one and it’s udder, butter and milk politics at its best, or at its worst. It’s election time and any possibility of controversy is embraced by the political class, as per Mr. Bijoor.
B.S. Murthy, a political observer and CEO, Leadership Capital was of the opinion that “This Amul push is a corporate ploy to eat market share in the name of competition and free market. If allowed, it will kill the co-operative spirit in Karnataka.’‘
By the way, State milk co-operatives usually follow an unsigned moral/ethical agreement that they will not hit the other States with the basic staple, milk, while value-added dairy-based products are open for all.
“We know what happened to Syndicate Bank, Vijaya Bank and Corporation Bank. There is always a sinister interest to take charge of the co-operative system and hand it over to corporates as co-operatives are clearly not in line with the policy of the current dispensation,’‘ Mr. Murthy added.
It is important to remember that Karnataka Milk Federation supported over 4 million farming families whose primary income is dairy. “Pulling one brick at a time, can loosen up the whole co-operative structure in the State and allow it to collapse,’‘ Mr. Murthy cautioned.
In Mr. Balakrishnan’s opinion, consumer products are better left to the market forces to decide rather than politicising commercial issues.
Renowned locals brands
“Let the consumers decide. In fact, South India has strong local brands — Aavin and Arogya in Tamil Nadu, Heritage in Andhra Pradesh and Nandini in Karnataka — which are difficult to dislodge, although every brand has to be on its toes and work towards being relevant with customers,’‘ he argued.
Also, Bengaluru and Karnataka are increasingly becoming cosmopolitan and consumers, with money in hand, drive brands and their consumption.
“Mixed markets will look for mixed choices. It is obvious,’‘ Mr. Bijoor added.
Well, in terms of pricing, Nandini will certainly have an edge over Amul among most consumers in the State. When a litre of Nandini milk is priced in the range of ₹40 on average, the price of Amul milk (long shelf-life) in Karnataka is way too high in the range of ₹60 to 80.
