Indian milk market battle

A milk market battle has been triggered in India, causing scores of Amul distributors to lose their customers since the launch of rival Sugam in Ahmedabad.

Amul sells about five lakh litres daily in Ahmedabad, but Sugam claims to have reached 50,000 litres daily in the few weeks since it was launched. It says the figure is rising daily.

Both sides are said to be pursuing retailers with commissions, and using hard-selling tactics to gain buyers. Both are trading charges of sales representatives being threatened and areas being marked out. A Sugam manager alleged that his salesmen handing out free samples were stopped by Amul retailers, who said the area was theirs. Amul managers claimed they were monitoring Sugam sales.

Gujarat Co-operative Milk Marketing Federation uses the Amul brand, and the National Dairy Development Board is using the Sugam brand in Ahmedabad. But to add to the confusion, both brands are selling products under similar names and at the same price. Meanwhile, Sugam is planning to launch five-litre milk packs, buttermilk, cheese, butter and ice cream