Amidst the raging controversy surrounding the two dairy giants, the head of Amul has clarified that the company has no intention of entering Karnataka’s market to compete with Nandini, the local dairy brand.
Dismissing the reports and allegations made by the Karnataka Milk Federation (KMF), the second-largest milk cooperative after Amul, the top executive of Amul stated that the company had no plans to enter Karnataka’s market and compete with Nandini. The controversy has now taken a political turn in the state, which is approaching an Assembly election next month.
Amul MD Jayen Mehta, said, “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’s recent tweet announcing its expansion into the Bengaluru market has caused a political uproar in poll-bound Karnataka. Opposition parties such as the Congress and the JD(S), along with various Kannadiga groups, have expressed concerns that Amul’s entry would harm the market share of the home-grown Nandini and pose a threat to its business in the state.
The executive contended that the controversy was unfounded since Amul had only announced its plans to sell fresh milk and curd (dahi) through e-commerce channels and not through the mass market distribution network, thereby clarifying that there was no intention to directly compete with Nandini.
“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 INR 54 per litre, while Nandini sells milk at a much cheaper price.”
According to the executive, Amul had already commenced the sale of its fresh milk through a niche market approach in select districts of North Karnataka a few years ago, and this had not posed any threat or competition to Nandini in any way.
“Contrary to the reports of competition, we have a strong collaboration. During Covid-19 period, Amul got INR 200 crore worth of cheese from Nandini,” he said. “Moreover, Amul gets ice creams worth INR 100 crore manufactured in the plants of Nandini every year.”
Mr. Mehta further added that Amul and Nandini were both owned by farmers and their commercial partnership aimed to benefit the farming community as a whole.
