Nandini brand homogenised milk will be sold from Friday through hundreds of distributors across the twin cities of Hyderabad and Secunderabad.
Apart from the formal launch, what makes the entry of the famous milk brand from Karnataka is its attractive pricing – Rs. 36 a litre. “Compared to other brands, our [price] is less,” asserted S.N. Jayaram, managing director of Karnataka Co-operative Milk Producers’ Federation (KMF) Ltd, the entity behind the Nandini brand.
The initial response to the trial marketing has been favourable with the official pointing out that the entry led to competitors dropping their prices. Noting that quality is the strong point of Nandini, he said there were no plans to set off a price war in the milk market.
Beneficiary ultimately should be the customer, he said, adding how once consumers start using Nandini brand milk, they do not mind increase in the price. KMF, he added, however, has no plans to change the price.
On Thursday, it could supply 35,000 litres of buffalo milk in the city, whereas the indents were for 40,000 litres. “We will increase the supply… our aim is to reach one lakh litres per day [sales] in Hyderabad, Mr. Jayaram said. The milk for the twin cities is being procured from Vijayapura and Belagavi and processed at a franchise facility in Hyderabad.
KMF is looking to expand its network in Karnataka and invest Rs. 2,000 crore over the next two years on a number of facilities, including bulk milk coolers, processing unit besides packaging and marketing facilities.
If need be, it will set up its own facilities for processing in Telangana, he said, adding there are plans to foray into other locations in the State. In Hyderabad, the marketing network comprises a wholesale agent, 40 distributors and 400 retail dealers.
This market is not new to KMF as its Good Life milk, with a shelf life of 90 days, was popular in the city and there were plans to also introduce several other products, including curd, ghee and sweets.
Mobile app
On the online marketing by KMF, Mr. Jayaram said in a couple of days, a mobile app is to be launched in association with BigBasket.com using which customers in Bengaluru could order Nandini milk home. The order will be executed within an hour.
On similar plans for Hyderabad, he said the Federation may consider this.
Karnataka Co-op Milk Producers’ Federation prices it at Rs. 36 a litre
