Mahindra & Mahindra entering into dairy market, launched milk in Indore

India: Mahindra & Mahindra is expanding its market by launching milk in Indore, Madhya Pradesh, though the company’s agriculture division is already present in the market and selling pulses, fruits and oilseeds. Company will sell its milk under the brand Saboro for some months in Indore and then it will launch the milk in Bhopal and other big cities. Gradually, the company is planning to introduce more dairy products. The cost of milk would be in between 35-50 per litre and have four variants.

As per the research done by company in Indore, the customers need assurance that the milk will have cream and proper nutrition so all the variants are fortified with Vitamin A and D. Milk production in India has estimated to increase in the year 2015-16 and the per capita availability is also estimated to increase so company is putting in efforts to its milk collection supply chain and collecting milk from villages near to Indore, further it will process the milk with technological advancement and will initially start it with 10,000 litres per day and gradually increase it to 50,000 litre per day. The dairy segment and unbranded milk in India accounts for 75-80% of INR4-lakh crore dairy market.

According to TechSci Research, due to increasing population the demand for the dairy products is increasing simultaneously and more and more milk production is required in India. People are looking forward for the quality and are not ready to compromise on the nutritional value of milk. So technological advancement while processing and different flavours of milk are the latest need of customers.

According to a recent report published by TechSci Research, “India Dairy Products Market By Type (Drinking Milk, Ghee, Butter, Ice Cream, Milk Powder, Cheese, Yogurts, Probiotic Drinks and Others), Competition Forecast and Opportunities, 2011 – 2021”, the market for dairy products in India is projected to grow at a CAGR of over 7% during 2016 - 2021. In 2015, North India dominated the country’s dairy products market, on account of increasing per capita expenditure, rising youth population, introduction of value added dairy products, changing consumption patterns, and growing penetration of international players. Few of the leading players operating in India dairy products market include Gujarat Cooperative Milk Marketing Federation Ltd., National Dairy Development Board, Karnataka Cooperative Milk Producers Federation Ltd., and Tamil Nadu Co-operative Milk Producers' Federation Limited, among others.