It’s not Amul vs Nandini, but Amul and Nandini: Amul MD Jayen Mehta amid backlash

Mehta told The Indian Express in an exclusive interaction, “It is not about Amul versus Nandini but it is Amul and Nandini. Both are farmer-owned cooperatives working on similar interests. We are not here to compete with Nandini”.

Responding to the criticisms and slogans like ‘BoycottAmul’ and ‘GoBackAmul’, Mehta said, “We cannot comment or criticise the reactions coming our way. Even those who are opposing us are also our customers. They are free to speak their mind. But nothing will change the good relationship we enjoy between Nandini and Amul.” “We work closely with Nandini on several accounts. For the last decade, we have been packing Amul ice cream using Nandini milk in the Mother Dairy plant in Bengaluru. Even when we had a shortage of cheese, we bought cheddar cheese from Nandini while they were in surplus.”

Mehta also ruled out Amul’s supply of milk and curd in the general trade (retail), and said that the company is instead planning to sell them through e-commerce and quick commerce platforms in Bengaluru. With Amul’s pouched milk and curd going to hit the e-commerce platforms this week, Mehta said the company already has a presence in the Karnataka market with these products being sold in Belgaum and Hubli. “We have been already selling our pouched milk and curd in the northern region of Karnataka for the past seven-eight years. It is not a new entry of Amul into Karnataka in the fresh milk market,” he said.

While Karnataka Milk Federation’s Nandini still remains a dominant player in Belgaum and Hubli, Amul stands third and sometimes fourth to the local brand. According to Mehta, Amul is selling 6000-8000 litres per day in the two cities, compared to Nandini which sells 1.25-1.3 lakh litres per day. The major sale is for toned milk which is priced at Rs 54 per litre compared to Nandini’s Rs 40 per litre.

Meanwhile, the price of Amul pouched curd is Rs 66 for a kg, and Nandini’s is priced at Rs 40 for 1 kg. In addition, Amul is also planning to sell ‘Amul Gold Special Milky Milk’ priced at Rs 32 for 500 ml.

Mehta also stated that one of the primary reasons for Amul entering the fresh milk market in Bengaluru is after learning about the increase in search for Amul’s dairy products on e-commerce platforms. “We saw that there was quite a reasonable amount of search for Amul milk and curd on e-commerce for Bengaluru and other cities in south India. We do not have a plant in Bengaluru, hence we will be sourcing the milk from our nearest plant in Madanapalle, Andhra Pradesh, which is over 100 km from Bengaluru,” said Mehta ruling out plans of setting up a manufacturing unit in Bengaluru as of now.

Mehta added, “Nandini has an edge over Amul in terms of pricing. Hence, we won’t be able to compete with Nandini in retail even for the next 10 years. When it comes to e-commerce, every sector has a market share of less than 5 per cent.”

Opposition leaders in Karnataka, including Congress’ D K Shivakumar and Siddaramaiah, and H D Kumaraswamy of the JD(S), have accused the Basavaraj Bommai government in Karnataka of giving ‘back door’ entry to Amul’s products which spells trouble for the local brand Nandini. On Monday, KPCC president Shivakumar also visited a Nandini shop in Hassan to purchase its products as a symbolic gesture of supporting the local brand.

Meanwhile, Bommai has downplayed any threat to Nandini and said the government cannot stop the entry of Amul into the fresh milk market in Karnataka and that it will take steps to make Nandini a competitive product.

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