Amul Tightens Grip on Mumbai Milk Market, Sends Ripples Through State Dairy Industry

Mumbai, 14th April 2024: Mumbai, renowned as the largest milk and milk product market in the nation, now witnesses a significant shift in dominance as Amul asserts its authority, surpassing erstwhile regional milk unions. With Amul’s market share in daily milk and milk product sales soaring to 40 percent, the traditional stronghold of Maharashtra state milk unions faces a formidable challenge amidst the aftermath of the pandemic.

Experts in the dairy sector reveal that Mumbai witnesses an average daily sale of 60 lakh liters of milk, with bagged milk from prominent dairies contributing 40 lakh liters, and smaller milk unions and free milk sales making up the remaining 20 lakh liters. Among these, ‘Amul’ alone distributes a maximum of 1.6 lakh liters of milk, followed by Gokul with nine lakh liters, and others like Varana, Nandini, Mother Dairy, and Govardhan each averaging two lakh liters.

The surge in Amul’s market presence post-COVID has notably affected Mahanand, which previously posed a competitive challenge. However, Mahanand’s failure to align its administration with business strategies, instead favoring political influences, has led to its decline, observed industry expert Prakash Kutwal.

In response to queries, Amul’s office in Anand, Gujarat, declined to comment on their Mumbai sales.

Amul’s Dominance Across Product Categories:

– Amul commands over 40 percent share in sales of yogurt, buttermilk, lassi, flavored milk, ghee, butter, paneer, and cheese.

– Approximately five to six lakh liters of curd, buttermilk, and lassi are sold daily in Mumbai, with Amul capturing 35 percent of the market share.

– In the sales of paneer and cheese, Amul holds a 15 percent share.

– The butter segment is overwhelmingly dominated by Amul, claiming over 80 percent share, while Govardhan Dairy leads in ghee sales, with 2.5 thousand tonnes per month in Mumbai.

The intensifying competition among private and cooperative milk unions in the state has led to lucrative commissions for wholesalers but has failed to translate into reduced prices for consumers. Industry expert Prakash Kutwal warns that unless the state’s dairy sector adapts to the changing landscape, it risks losing ground to Amul.

With 30 subsidiaries operating under its banner, Amul’s consistency in quality and aggressive advertising strategies have propelled it to become the largest and fastest-growing brand in the country, according to Arun Narke, former President of the Indian Dairy Association, Delhi.

Bhagwanrao Pasalkar, President of Pune Zilla Sahakari Dudh Sangh Limited (Katraj), laments that while the quality of products from Dudh Sangh remains competitive, Amul’s robust advertising campaigns have tilted the scales in its favor, posing a threat to smaller milk unions in the state.