Baba Ramdev’s Patanjali Ayurved is gearing up for a major presence in the dairy segment with the launch of cow milk and other cow milk-based value-added dairy products.

It will formally launch these products in the market on Thursday.

Patanjali spokesperson SK Tijarawala said: “Patanjali will launch cow milk and cow milk-based dairy products such as curd, chaach (buttermilk) and paneer in Delhi-NCR, Rajasthan, Haryana and Maharashtra in the first phase. We will gradually add flavoured milk and ice-cream to our dairy product portfolio.”

Patanjali already retails cow ghee and cow whole milk powder. The company will also be launching frozen products including peas, mixed vegetables and French fries, he added.

Patanjali’s entry into the dairy segment comes at a time when many new dairy product entrants such as ITC and Britannia are looking to step up their presence there.

Tough business

According to a Crisil report, the dairy sector’s revenues will touch the ₹7.5-lakh crore mark by FY21 from ₹5.7 lakh-crore in FY18. The market is dominated by domestic co-operatives such as Amul and Mother Dairy and just 25-30 per cent is controlled by organised players, say experts. Abneesh Roy, Senior Vice-President, Institutional Equities, Edelweiss Securities, said that unlike other FMCG categories, dairy is tough business. “Dairy is an attractive market with a huge growth potential but competition in the organised segment is intense as many new players are entering the segment. It is also a challenging business that requires robust back-end infrastructure in terms of sourcing, and cold-chain and pricing will be crucial,” he added.

Patanjali is training its focus on the cow milk and cow milk-based value-added products segments — a category which has seen a lot of action in recent times. Existing players are working at expanding their presence in new geographies as well as ramping up their product portfolio.

Devendra Shah, Chairman, Parag Milk Foods, said: “The entry of new players will help expand the cow milk segment, especially in the northern region. A brand’s success will depend on whether it sources directly from farmers or depends on vendors for sourcing.”

Last month, the company launched 100 per cent cow milk under the brand Gowardhan in Delhi-NCR.

A spokesperson for Mother Dairy Fruit & Vegetables said: “Mother Dairy cow milk has emerged as the country’s largest selling cow milk with expected annualised sales of approximately ₹1,000 crore. As a consumer-centric organisation, we are constantly working towards addressing the needs of consumers for cow milk and its allied products.”

The company recently has launched curd from cow milk in the northern region. “The branded poly-pack cow milk market size is estimated at 12 lakh litres per day, with category creator Mother Dairy leading with a 60 per cent market share.”

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