India’s branded milk market is given a new lease of Life

A new branded milk product is being launched in India by Reliance Dairy Foods, a subsidiary of Reliance Retail.

Life will be sold through general milk distributors and will be available in Haryana, Punjab, Andhra Pradesh, Tamil Nadu, Rajasthan, National Capital Region (NCR) and Himachal Pradesh.
The Mukesh Ambani-controlled company will continue to sell its existing Dairy Pure brand through Reliance Retail stores.
Companies like Nestle India and Parag Milk Foods have also drawn up investment plans in an effort to keep themselves at the forefront of the milk distribution business, which is growing 10-12% a year.
A study jointly published by the Central Ministry of Food Processing Industries and Federation of Indian Chambers of Commerce and Industry, claims that around 35% of the total milk produced in India is processed.
The study, prepared by consulting firm Ernst & Young, says there are currently 676 dairy plants in the organised sector, which combines cooperative, private and government sector units. India’s total milk production totals 10.28 crore tonnes.
Demand for milk and milk products has increased in urban areas despite
recent price hikes. Govardhan increased price of its milk products by 5%
over the past two months due to increased prices of cattle food and
below-average rainfall.
The National Dairy Development Board, a nodal agency for the country’s dairy programmes, says that feed accounts for about 70% of the cost of milk
production.