Amidst the raging controversy over the two dairy giants, Amul’s top boss clarified that Amul was not making a foray into Karnataka to compete with local dairy brand, Nandini.
He refuted reports and allegations that the Amul was going to Karnataka to eat into the market share of Nandini, brought out by the Karnataka Milk Federation (KMF), the second largest milk cooperative after Amul. The issue has taken a political turn in the State that is facing the Assembly election next month.
“Amul and Nandini have strong collaboration and respect for each other. We are not into competition. Amul’s launch of fresh milk and curd (dahi) is only for a niche market through e-commerce channels and not through a mass distribution network,” Amul MD Jayen Mehta told The Hindu.
Recently, a tweet from the country’s largest dairy player Amul has generated a political storm in poll-bound Karnataka. After Amul announced it was making a foray into the Bengaluru market, the Opposition Congress, the JD(S) and other sections of Kannadigas expressed fears that Amul would eat into the market of home-grown Nandini and would pose a threat to its business in the State.
He contended that there was no scope for the controversy since Amul had only announced its decision to sell its fresh milk and curd (dahi) through e-commerce channels and not through the mass market distribution network.
“It’s a niche and selective foray, not a full-fledged entry as is being made out,” he said, adding “there would be no competition since Amul would be selling its milk at ₹54 per litre, while Nandini sells milk at a much cheaper price.”
‘Sale already began a few years ago’
He said that in a few districts of North Karnataka, Amul had started selling its fresh milk through niche foray a few years ago and it did not pose a threat or become a competitor of Nandini in any manner.
“Contrary to the reports of competition, we have a strong collaboration. During COVID-19 period, Amul got ₹200 crore worth of cheese from Nandini,” he said. “Moreover, Amul gets ice creams worth ₹100 crore manufactured in the plants of Nandini every year.”
Mr. Mehta also added that both Amul and Nandini are owned by the farmers and their commercial collaboration work for the benefits of the farming community.
“Contrary to reports of competition, we have a strong collaboration. During COVID-19 period, Amul got ₹200 crore worth of cheese from Nandini. Moreover, Amul gets ice creams worth ₹100 crore manufactured in the plants of Nandini every year” Jayen MehtaAmul MD