Milma To Evolve New Marketing Strategy

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Kochi, Aug 1: : Kerala Milk Marketing Federation (Milma), which has formed a new marketing venture, Milma Foods with NDDB subsidiary, Mother Dairy is to evolve new marketing strategies. As part of this move, NDDB would provide Rs 38 crore for the venture, according to Milma chairman PT Gopalakurup.

The thrust would be to recapture Milma's market share that has been taken away by private milk producers. For this Milma would raise its capacity to 13.5 lakh litres from its present 9 lakh. For maintenance of uniform quality, the venture would go in for chilling plants and bulk coolers. The venture would take up diversification after steadying its milk market. Milma would enhance production of its milk powder, ice cream and butter. It was also considering door delivery. Among the diversification plans would include distribution of other products like coffee and Dhara cooking oil of NDDB.

Mr Kurup felt that though nearly four lakh litres of milk flowed into the state from outside daily, there was a market for the product in the state, provided Milma ensured quality.

The company would utilise its present marketing system with a staff strength of 250. However, it could consider a VRS scheme after talks with the unions. Milma Foods was a joint venture with Mother Diary where the latter had a 51 per cent stake, which according to a section of workers would affect the interests of Milma.

During last year, Milma's turnover crossed Rs 550 crore. Details of its financial performance would be available only after the annual general meeting soon. The federation had suffered a Rs 3.5 crore loss in its cattlefeed sector which was mainly owing to the high price of raw materials.

The state government owed the federation Rs 6 crore through its much publicised government programme of a `cup of milk and handshake' for school children.