Reliance to enter UP dairy market
Two leading players of the dairy industry, Parag and Amul, are gearing up for a major war to corner milk supplies in the state, reports Santosh Chowdhury.india Updated: Aug 08, 2007 04:45 IST
Two leading players of the dairy industry, Parag and Amul, are gearing up for a major war to corner milk supplies in the state. Soon another big name, the Mukesh Ambani-controlled Reliance Retail Ltd, will join them.
RRL has already begun “farmer-contact” surveys in more than 50,000 Uttar Pradesh villages for the dairy venture.
“The survey focusses on the quantum of daily milk production in village households, quantity of milk consumed, number of cows and buffaloes owned by them. This part of a preliminary survey before charting out a roadmap for RRL's dairying foray,” a senior RRL official said.
He said RRL’s pilot projects are operating in Andhra Pradesh, Punjab and Haryana. “Their success will help us evolve a strategy for Uttar Pradesh,” he said.
“We are open to tying up with all the milk co-operative unions in UP to strengthen RRL's milk supply chain when it launches operations,” he said.
Analysts say nearly 88 per cent of UP’s dairies are in the unorganised sector. Only 12 per cent milk processing is in the organised sector, leaving enough space for bigger players.
“Our initial surveys focus on a major part of western UP belt from Lucknow to Fathepur,” the RRL official said.
General Manager, Parag Dairy S K Prasad in Lucknow said they had “invested heavily in modernizing milk collection and distribution infrastructure in Lucknow region. Sixty automatic collection units have been set up in villages and 15 more are in the offing”. “Parag dairy has a co-operative structure. If RRL wants to compete it would have to fight on the price front,” he said.