The Hindu Business Line : TN private dairies form a team to sell branded milk

SELECT milk processing dairies in the private sector from Erode, Madurai, Tiruchy, Kancheepuram and Chennai have come together to market their product under a single brand name `Navaa Milk'.

Navaa Milk promoted by Aamazzing Agro Products Private Ltd was formally launched here on Monday.

According to Mr S. Kannan, Director, Aamazzing Products, the branded milk Navaa would be introduced at Madurai in November, followed by Tiruchi and Kancheepuram before the close of the current calendar year.

The company is planning to roll out the product in Andhra Pradesh and Kerala next year. "We have identified three syndicate partners in Karnataka too," he said.

Stating that the syndicate-marketing model was prevalent in Europe and China, as well as in Indian co-operatives, he said that Aamazzing Agro was experimenting this model for the first time in the private dairy segment.

Industry sources estimate the potential for milk and milk products in the country at Rs 35,000 crore. About 60 per cent of the supply is said to come from the unorganised sector.

According to Mr Kannan, Tamil Nadu's daily milk production stood at 50 lakh litres, of which 32 lakh litres came in the packet form, 12 lakh litres in loose form and about 6 lakh litres were disbursed at the farm gate. Milk consumption has been growing at 4 per cent annually.

Considering the huge potential in this space, Aamazzing Agro Products decided to rope in private dairies that could not make it big. Nigetha Milk Foods, for instance, has become a syndicate partner. The Bhavani-based dairy already produces milk products worth Rs 3-crore and supplies milk in and around Erode, Salem and Coimbatore.

The Managing Director of Nigetha Milk Foods, Mr S. Anbhazhagan, said that he expected to capture five cent of the market (25,000 litres per day) within six months.

"We have a production capacity of 60,000 litres per day. The syndicate model would be cost effective. The reach would be better."

More Stories on : Dairy & Dairy Products | Brands | Tamil Nadu

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