Employees tend to an ice cream prodution line at the Mother Dairy factory, which manufactures the Amul brand of ice cream, near Ahmedabad. AFP
Employees tend to an ice cream prodution line at the Mother Dairy factory, which manufactures the Amul brand of ice cream, near Ahmedabad. AFP

Creaming it in from Indian dairy



The Amul girl is probably one of India's most admired social commentators, even though she is a 50-year-old cartoon character and brand mascot for the Gujarat Cooperative Milk Marketing Federation, one of the country's largest dairy companies.

She is so well known all over the subcontinent and the Arabian Gulf for her witty and topically barbed comments she is often hailed as one of the biggest brand successes of modern India.

The little cartoon girl in a polka-dot bow and dress is quick to take aim at anything making the headlines in the country - from cricket scandals to Bollywood gossip and even government corruption.

"Because the people behind the brand are not some huge multinational corporation but a dairy collective consisting of thousands of small farmers, Indian people really connect with the brand," says Prashant Pinge, a partner at the branding consultancy Media Panther in Mumbai.

"We can safely say that the brand has revolutionised the Indian dairy industry."

But now the Amul girl is facing tough competition on a new front with foreign rivals lining up to steal her limelight and cash in on an Indian dairy industry set to grow at annual rate of 10 per cent. By 2015, the sector is expected to hit US$90 billion (Dh330.57bn), according to the Associated Chambers of Commerce and Industry of India (Assocham).

While they may not have the Amul girl's charm, the international players do have pots of cash and the drive and corporate savvy to succeed.

The French company Danone, which makes yogurts and curds, has invested heavily in getting its retail connections and supply chains right and is increasing its production in the country.

The Swiss company Nestlé is another global brand planning to invest millions of dollars to expand into the dairy industry, which is also made up of thousands of smaller co-operatives.

"The Indian dairy sector is largely unorganised [small cooperatives]," says Shushmul Maheshwari, the chief executive of RNCOS, a research agency in the New Okhla industrial development authority. "Because of this structure, there remain ample opportunities for branded dairy products and, in my opinion, foreign food giants like Danone can reap profits by penetrating into a small but steadily growing, organised sector."

But in a fragmented market, competition is tough and is getting tougher now global groups have moved in.

"For national and international players like Amul, Nestlé& Britannia, local brands and state government cooperatives such as Verka and KMF [Karnataka Milk Federation] will become major challengers," says Pratichee Kapoor, the associate vice president of food services & agriculture at Teknopak, a management consultancy. "These players are better positioned to procure milk from village centres."

Dairy products are the top-ranked commodity in India accounting for 16 per cent of the total global production, Assocham has reported.

"High per capita consumption due to rising population and increasing disposable income are driving the growth of this industry," says Mr Maheshwari. "Also, increasing health-consciousness among Indians is boosting the demand for healthy products, which will further drive the industry in the coming years."

But being able to cater for local tastes is a key factor for foreign dairy groups trying to build market share.

"Companies can gain competitive advantage with the introduction of new value-added products like yogurt and fermented milk products," says Ms Kapoor. "Increasing product ranges to suit Indian tastes such as zeera, raita, lassi is another key advantage."

Yet it is not just everyday staples that are growing. Indians are hungry and thirsty for new products.

"Flavoured milk drinks have been the most dynamic products within this industry - we have seen volume growth of between 17 to 22 per cent every year over the past five years," says Parita Chitakasem, a research manager for Euromonitor International. "These products continued to benefit from the consumer trend to switch from carbonated soft drinks to healthier alternatives."

But there are other factors driving the market, as Indian shoppers are split into different groups when it comes to buying dairy products.

"The urban population in general is more inclined towards branded products, whereas it is totally different in case of the rural population," says Mr Maheshwari. "Packaged milk and dairy products are not used much by people in rural areas but ghee, butter, cream are produced at home."

Urban, health-conscious shoppers are also looking for new alternatives, according to market-watchers.

"Soya-based beverages are still a niche market among affluent urban consumers," says Ms Chitakasem. "But soya milk performed very strongly, registering 14 per cent growth last year with the support of new product developments."

For the Amul girl, things are unlikely to go sour in the near future.

"The well-established dairy players, such as Amul, will continue to influence consumers positively in the coming years," says Mr Maheshwari. "They will be successful in maintaining the strong market position due to their diversified products catering the taste of Indian consumers."

twitter: Follow and share our breaking business news. Follow us

iPad users can follow our twitterfeed via Flipboard - just search for Ind_Insights on the app.

Results for Stage 2

Stage 2 Yas Island to Abu Dhabi, 184 km, Road race

Overall leader: Primoz Roglic SLO (Team Jumbo - Visma)

Stage winners: 1. Fernando Gaviria COL (UAE Team Emirates) 2. Elia Viviani ITA (Deceuninck - Quick-Step) 3. Caleb Ewan AUS (Lotto - Soudal)

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%3A%3C%2Fstrong%3E%20Eco%20Way%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20December%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Ivan%20Kroshnyi%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Electric%20vehicles%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Bootstrapped%20with%20undisclosed%20funding.%20Looking%20to%20raise%20funds%20from%20outside%3Cbr%3E%3C%2Fp%3E%0A
UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Match info

Manchester United 0-0 Crystal Palace

Man of the match: Cheikhou Kouyate (Crystal Palace)

TRAP

Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue

Director: M Night Shyamalan

Rating: 3/5

Blackpink World Tour [Born Pink] In Cinemas

Starring: Rose, Jisoo, Jennie, Lisa

Directors: Min Geun, Oh Yoon-Dong

Rating: 3/5

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EAlmouneer%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Dr%20Noha%20Khater%20and%20Rania%20Kadry%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EEgypt%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%20%3C%2Fstrong%3E120%3Cbr%3E%3Cstrong%3EInvestment%3A%20%3C%2Fstrong%3EBootstrapped%2C%20with%20support%20from%20Insead%20and%20Egyptian%20government%2C%20seed%20round%20of%20%3Cbr%3E%243.6%20million%20led%20by%20Global%20Ventures%3Cbr%3E%3C%2Fp%3E%0A
Rankings

ATP: 1. Novak Djokovic (SRB) 10,955 pts; 2. Rafael Nadal (ESP) 8,320; 3. Alexander Zverev (GER) 6,475 ( 1); 5. Juan Martin Del Potro (ARG) 5,060 ( 1); 6. Kevin Anderson (RSA) 4,845 ( 1); 6. Roger Federer (SUI) 4,600 (-3); 7. Kei Nishikori (JPN) 4,110 ( 2); 8. Dominic Thiem (AUT) 3,960; 9. John Isner (USA) 3,155 ( 1); 10. Marin Cilic (CRO) 3,140 (-3)

WTA: 1. Naomi Osaka (JPN) 7,030 pts ( 3); 2. Petra Kvitova (CZE) 6,290 ( 4); 3. Simona Halep (ROM) 5,582 (-2); 4. Sloane Stephens (USA) 5,307 ( 1); 5. Karolina Pliskova (CZE) 5,100 ( 3); 6. Angelique Kerber (GER) 4,965 (-4); 7. Elina Svitolina (UKR) 4,940; 8. Kiki Bertens (NED) 4,430 ( 1); 9. Caroline Wozniacki (DEN) 3,566 (-6); 10. Aryna Sabalenka (BLR) 3,485 ( 1)

The specs
Engine: Long-range single or dual motor with 200kW or 400kW battery
Power: 268bhp / 536bhp
Torque: 343Nm / 686Nm
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
On sale: Later this year
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Director: Venkat Prabhu
Rating: 2/5
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3C%2Fstrong%3E%3A%20ASI%20(formerly%20DigestAI)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Quddus%20Pativada%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Artificial%20intelligence%2C%20education%20technology%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%243%20million-plus%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20GSV%20Ventures%2C%20Character%2C%20Mark%20Cuban%3C%2Fp%3E%0A