Amul scripts fresh growth strategy to take on rivals

Lalitha Srinivasan

Posted: Thursday, Jun 19, 2008 at 2339 hrs IST
Updated: Thursday, Jun 19, 2008 at 2339 hrs IST


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Mumbai, Jun 18: Enthused by its performance in FY 08, the Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is drawing up a fresh game plan for its flagship brand 'Amul Fresh Milk'. Rival Mother Dairy India is not far behind. To sustain its competitive edge, Mother Dairy is chalking out an aggressive growth strategy to reach out to a wider target audience. The Rs 18,000-crore packaged milk sector will soon witness a pitched battle between two lead players Amul and Mother Dairy India, predict industry analysts.

On Amul’s future plans, RS Sodhi, chief general manager, GCMMF said: "We are expanding our processing and packaging capacity to meet growing demands. For starters, we are setting up additional processing facilities in Delhi and Mumbai. Currently, we lead the pack with the production of 50 lakh liters per day."

In a bid to pump up volumes, Amul is also extending its distribution network to reach new markets. "Our core strategy is to further consolidate our operations in existing markets which includes Kolkatta. Also, we are beefing up our marketing and advertising strategy to sustain our leadership,” said Sodhi.

Incidentally, Amul is selling its packaged milk brands on the Net too. The company has recently extended its product portfolio by launching Amul Calci-a fortified milk brand. The company’s long term strategy includes foray into South India. "But, we do not have any immediate plans to enter South Indian markets,” said Sodhi.

Meanwhile, Mother Dairy India is sharpening its marketing focus to promote its milk brand in major metros across the country. "The Rs 18,000-core branded milk sector is steadily growing as consumer opt for hygienic milk products. We plan to go national in the next few years,” said Paul Thatchil, chief executive officer (Dairy & Foods), Mother Dairy Fruit & Vegetables (P) Ltd.

With increasing competition, the packaged milk sector will witness a lot of action this year, predict industry analysts.” The Gujarat Cooperative Milk Marketing Federation is beefing up its resources to strengthen its foothold in the liquid fresh milk market of Delhi, a battleground for the two cooperative giants —National Dairy Development Board (NDDB) and GCMMF,” said an analyst based in Mumbai. In India, the per capita consumption of milk is increasing day by day, according to industry analysts. "Consumers are increasingly opting for packaged milk for health reasons. The sector will register a healthy growth this fiscal,” added analysts.

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» amul strategy
Posted by sunil pandey on 2009-11-20 11:58:26.961343+05:30
how amul became famous

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