Dairy Essay

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Western Milk Products Western milk products such as butter, cheese, yogurt have gained popularity in the Indian market only during the last few years. However consumption has been expanding with increasing urbanisation. Butter Most Indians prefer to use home made white butter (makkhan) for reasons of taste and affordability. Most of the branded butter is sold in the towns and cities. The 50,000 ton branded butter market valued at Rs6bn is estimated to be growing at 8-10% pa. The major brands are Amul, Vijaya, Sagar, Nandini and Aarey. Amul is the leading national brand while the other players have greater shares in their local markets. The latest entrant in the butter market has been Britannia. Britannia has the advantages of a wide distribution reach and a strong brand recall. Priced at par with the Amul brand, it is expected to give stiff competition to the existing players. Cheese Branded cheese market is estimated to be 9,000 tons pa valued at Rs1.8bn (MRP). Cheese is mainly consumed in the urban areas. The four metro cities alone account for more than 50% of consumption . Mumbai is the largest market (accounting for 30% of cheese sold in the country), followed by Delhi (20%). Calcutta (7%) and Chennai (6%). Mumbai has a larger number of domestic consumers, compared to Delhi where the bulk institutional segment (mainly hotels)is larger. Demand for various types of cheese in the Indian market Type of cheese % of total consumption Processed 50 Cheese spread 30 Mozzarella 10 Flavoured/Spiced 5 Others 5 Before the entry of multinational Britannia in 1997, Amul was the undisputed leader in the cheese market with a market share of about 70%. Other major brands were Vijaya, Verka and Nandini (all brands of various regional dairy cooperatives) and Vadilal. In the past, the market was growing at 7-8% pa.

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