Dairy brands Amul and Nandini are set to compete in Bengaluru, one of India’s largest milk markets, as Amul enters the market via e-commerce channels. Amul’s announcement created a social media storm, with hashtags such as #SaveNandini and #GobackAmul trending on social media platforms.
Nandini, marketed by the Karnataka Milk Federation (KMF), is the largest milk supplier in Bengaluru, accounting for 70% of the market. The company keeps price points low at Rs 39 a litre for its packet milk in a bid to protect its market share, while Amul’s milk will retail at higher prices. Jayen Mehta, managing director of Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul, confirmed that Amul Taaza and Amul Gold, its packet milk brands, will retail for Rs 54 a litre and Rs 64 a litre respectively in Bengaluru.
While Amul is only looking at e-commerce and quick commerce channels at the moment, there are no plans to bring down price points for general trade. A modern trade entry of Amul into Bengaluru will happen six months later, according to Mehta.
The entry of Amul may change the dynamics of the market, as Nandini has had no competition from a rival co-operative milk brand in Bengaluru so far. However, experts believe that Nandini may play on the aspect of milk being a fresh product that is best supplied locally.
Amul is sourcing milk from neighbouring Andhra Pradesh for supply into Bengaluru. “We have three plants in Andhra Pradesh, one unit is around 120 km from Bengaluru, from where we are supplying milk to Bengaluru right now,” Mehta said.
