Mukesh Ambani’s Reliance Industries is in talks to acquire an equity stake in Haryana-based Modern Dairies which would strengthen its presence in the high-volume, low-margin liquid milk market.
Reliance Retail, through which Reliance Industries is extending its presence in the organised retail sector, last month launched its own milk brand in Hyderabad, and it plans to make it available in other cities shortly.
The packaged milk, Dairy Pure, is available at Rs 18 a litre through nearly 50 outlets in and around Hyderabad.
Modern produces packed liquid milk, skimmed milk powder, whole milk powder, infant milk food, pure ghee and butter. Reliance Retail, which has so far set up over 200 retail outlets, procures 10,000 litres of milk a day at Atmakur, in Nellore district, of Andhra Pradesh. The packaging has been outsourced.
The company is pitted against such established leaders like Mother Dairy and Vijaya. There are a host of regional players in the Rs 15,000-crore branded packaged milk market.
According to sources, Reliance plans to make Punjab and Haryana a hub for its dairy products. It intends to procure 10 million litres of milk daily, over the next four years. This is more than the combined procurement of all players in the co-operative and private sectors.
(Source: Business Standard)
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