According to CRISIL, the Indian dairy market is set to witness a boom in the coming years. The estimated investment in the next three years is approximately Rs 140 billion.
Strengthening the claims by CRISIL, Amul, one of India’s leading dairy product manufacturers, is set to acquire a dairy plant in Wisconsin, USA. The first ever dairy union in India to do so, Amul will be starting its dairy operation in America, after the acquisition process is complete.
Wisconsin, which is the top producer of cheese in America, caters to around 27 per cent of the production. With the present tripartite agreement between Amul Dairy, Gujarat Co-operative Milk Marketing Federation and a local US based partner, Amul manufactures three products – ghee, paneer and shrikhand.
Next in the market, is another major Indian brand that peaked with its beauty and healthcare product range, Patanjali. Started by Yog guru Baba Ramdev, Patanjali took over the market in no time, and has since, never looked back. A recent announcement by the brand to enter the India dairy market took everyone by surprise.
Initially, the only dairy product covered under Patanjali’s belt was ghee. Now, the company plans to sell milk, and claims that the price will be Rs 2 less than that of the current market rate.
The dairy market in the country, which has emerged from once being milk deficient at 20 million MT in 1970 to world’s largest milk producer at 160 MT, with a share of 18.5 per cent in the global milk market, is now set to expand even further.
Capitalizing the opportunity with the increase in demand, the announcements by the two major brands have brought it to a new pedestal. The estimated compound growth for the market stands at 14 – 15 per cent annually. According to Economic Times,Indian dairy market 2018, is expected to be the leader by 2020.
While two brands are making headlines, looking closely at the business strategies of other major players like Mother Dairy, Heritage Foods, Kerala Co-operative Milk Marketing Federation and others is also crucial. The estimates of the Indian dairy market being the top player by 2020 will not be complete without their contribution.
From a country that ran on agriculture and dairy to a country that is treading on the path to become a world leader in the field, the journey is noteworthy. Is the future a gold mine waiting to be explored, or will milk take a different turn, only time will tell.