Bad news for Amul, Mother Dairy as this brand enters Delhi market, will bring 1 lakh liter milk daily from 2500 km, its name is…
The dairy market in India has always been a hub of competition, and now the Karnataka Milk Federation (KMF) has introduced its Nandini brand to the Delhi market. Starting on November 21 with milk, curd, and ghee, the brand plans to expand its offerings to include Karnataka’s special idli and dosa batter. This move is being seen as a direct challenge to established players like Amul and Mother Dairy in Delhi.
Delhi-NCR is a significant market, with a daily consumption of approximately 80-90 lakh liters of fresh milk. Of this, Amul accounts for about 40-45%, while Mother Dairy holds a 35-38% market share. With Nandini’s entry, it remains to be seen how much of a foothold the brand can establish in this highly competitive market.
In FY24, Amul achieved a turnover of Rs. 88,000 crore, while Mother Dairy reached Rs. 15,000 crore. KMF, with a turnover of Rs. 23,000 crore, is now eyeing Amul’s dominance. Already popular in states like Karnataka, Maharashtra, Goa, Hyderabad, Chennai, and Kerala, Nandini has begun its journey in the national capital with products like milk and curd.
Delhi’s dairy market, currently dominated by Amul and Mother Dairy with a combined 70% market share, has become even more competitive with Nandini’s entry. To attract consumers, Nandini has priced its products slightly lower than its competitors, aiming to carve out a niche in this crowded market.
KMF has made its strategy clear, aiming to expand into other states like Madhya Pradesh, western Uttar Pradesh, Rajasthan, and northeastern India over the next five years. In Delhi, the brand plans to start with daily sales of 1 lakh liters of milk, with an ambitious target to scale this up to 10 lakh liters.
The competitive spirit was evident during the launch of Nandini in Delhi on November 21, where Karnataka Chief Minister Siddaramaiah made a bold statement. Sounding a metaphorical “call to arms,” he remarked, “If you can’t surpass Gujarat (Amul) in production, you can certainly come close to it.”
How will KMF manage quality over such long distances?
According to a report by The Hindu BusinessLineKMF has devised a plan to supply 1 lakh liters of milk daily to Delhi and Haryana through the Mandya Milk Union. Covering a distance of approximately 2,500 kilometers, the supply chain will utilize five tankers, each with a 33-kiloliter capacity. A total of 25 tankers will transport milk every week. Milk will be processed in Rajasthan before being packed into retail packs and distributed in the Delhi-NCR markets. With this initiative, Nandini aims to convey a strong message that it will not compromise on the quality and freshness of its products despite logistical challenges.
Ambition to double business in five years
KMF’s Managing Director, M.K. Jagadish, shared that Nandini intends to double its business over the next five years. The brand’s product range, which includes milk, curd, and ghee, will later expand to include idli and dosa batter. To ensure smooth distribution in Delhi, Nandini has already established a robust supply network. Additionally, the brand plans to open Experience Centers and brand outlets to enhance product visibility and connect more effectively with consumers.
In July 2024, Nandini set a milestone by collecting 1 crore liters of milk daily, showcasing its production capabilities. However, the Gujarat Cooperative Milk Marketing Federation (Amul) continues to lead the sector, collecting a staggering 2.6 crore liters of milk daily—three times more than Nandini’s capacity.
Nandini in the International Market
The Nandini brand has established its presence not only in India but also in international markets such as Malaysia, Vietnam, Singapore, the UAE, and the USA. Recently, the brand launched an energy drink during the T20 World Cup and sponsored the Scotland and Ireland cricket teams, further boosting its global visibility.
Confidence in Product Quality
M. Raghunandan, Nandini’s marketing head in Delhi, expressed confidence in the brand’s product quality and aggressive distribution strategy, which he believes will make it popular among consumers. Highlighting its reputation, he mentioned that Nandini secured a special contract to supply ghee for Tirupati laddus after a controversy, further enhancing its credibility.
Competition and Market Dynamics
Manish Bandlish, Managing Director of Mother Dairy, welcomed Nandini’s entry, stating that the presence of organized players would drive further growth in the dairy sector. Meanwhile, Amul and Mother Dairy, with their years of experience and significant market share, are well-prepared to face the heightened competition.
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