IndiaRetailBiz

Reliance Dairy Foods, a subsidiary company of Mukesh Ambani-led Reliance Industries Ltd (RIL), which manufactures and markets milk and other dairy under ‘Dairy Pure’ brand, has begun expanding footprint of its dairy products by roping in retailers outside the group. Apart from state cooperatives which operate within their respective states/ regions, Amul, Nestle, Mother Dairy (NDDB) are among the leading dairy brands that are operating across the country in this sector.

Until recently, Reliance Retail was handling retailing of milk products mostly through Reliance Fresh outlets across the North (Punjab, Haryana, Himachal, Rajasthan, and NCR) and the South India (Andhra and Tamilnadu). ‘Dairy Pure’ could register three-fold increase in its sales from Rs Rs 65.77 crore (2007-08) to Rs 178.05 crore (2008-09) largely on account of the efforts put in by Reliance Retail.

Reliance has been popularising dairy products by offering 10 per cent more quantity of products to consumers at the same price as that offered by its competitors. While, welcoming entry of large player like Reliance into the sector, the competitors are not unduly worried about the price advantage offered by Reliance to its customers.

According to R S Sodhi Chief General Manager of Amul, “Reliance Retail’s milk brand has not got much presence in the market as yet. But it is good for the market to have more players and entry of a large corporate house would be beneficial for farmers as well as customers.”

Although tight lipped about future investment and sales targets, Reliance Dairy officials are quite bullish on its future growth and its presence as a major dairy products player in the market.