Amul's Entry Won't Impact Aavin's Sales, Says TN Dairy Development Minister
Amul’s entry into Chennai and northern Tamil Nadu is not expected to affect Aavin’s sales, according to Mano Thangaraj, Tamil Nadu's Dairy Development Minister. Speaking at a press conference on Wednesday, Thangaraj emphasized that Aavin is equally open to market expansion, similar to Amul's strategy of entering new territories.
Thangaraj highlighted that while Amul is broadening its reach in the United States, Aavin has significant potential to expand into the Middle East, Europe, and Singapore. However, the current focus for Aavin remains on stabilizing and improving its local market presence, despite possessing the necessary licenses for international expansion.
Efforts to enhance milk procurement from local farmers have been successful, with the Tamil Nadu Cooperative Milk Producers’ Federation now procuring over 3.4 million liters of milk daily, Thangaraj noted.
Thangaraj also assured that there would be no changes to the retail prices of Aavin products. This assurance comes amidst reports of private dairies reducing the selling prices of milk and curd by Rs 2 per liter and Rs 4 per kg, respectively, due to a decline in sales over the summer. In contrast, Aavin has seen significant growth in dairy product sales, with a 23% increase in milk sales compared to the previous year, according to an official release.
Efforts to enhance milk procurement from local farmers have been successful, with the Tamil Nadu Cooperative Milk Producers’ Federation now procuring over 3.4 million liters of milk daily, Thangaraj noted.
When questioned about potential increases in procurement prices for farmers, Thangaraj stated that the matter is under consideration, with Chief Minister MK Stalin set to make the final decision. The procurement price has already been raised by Rs 6 per liter on two occasions since the current administration assumed office.
Thangaraj also assured that there would be no changes to the retail prices of Aavin products. This assurance comes amidst reports of private dairies reducing the selling prices of milk and curd by Rs 2 per liter and Rs 4 per kg, respectively, due to a decline in sales over the summer. In contrast, Aavin has seen significant growth in dairy product sales, with a 23% increase in milk sales compared to the previous year, according to an official release.
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