Mother Dairy, one of the country’s largest milk processors, plans to roll out a chain of exclusive retail outlets, named ‘Gaurav Stores’, to market the entire range of its products across India.
According to company sources, it has planned to launch 350 exclusive stores in New Delhi and 200 retail outlets in Mumbai in the first phase, to be expanded later in all major cities.
The company owns a network of booths in Delhi to market the dairy products. The new concept has been introduced to create a better brand and street visibility, to consolidate its position in the wake of growing competition.
According to Sanjay Sinha, Head (Milk and Dairy Products Business) of Mother Dairy Fruit and Vegetable Ltd, the entire retail operation would be conducted through the franchise route.
He said the first phase should be implemented by the year-end and the final course of action for phase two would be decided after the completion of phase one. The products would be available at the multi-brand retail chains and standalone kirana stores, too, but the ‘Gaurav Stores’ would be a one-stop shop for all Mother Dairy products.
Purnendu Kumar of Technopak, a prominent retail consultancy firm, is of the view that the foray of large companies such as Reliance Retail and Birla Retail, and that of local progressive dairy farmers’ unions in various pockets who, with the assistance of nationalised banks are mulling to set up retail outlets, might be the cause of concern for players like Mother Dairy to take prior initiatives to strengthen presence in the growing market.
Mother Dairy registered year-on-year growth of 30 per cent on product business and 10 per cent growth of milk business last year. The new branding initiatives are a must to face the stiff competition, said Kumar.
He said it processed 3.2 million litres of milk every day and had sufficient capacities to meet the demand for the next few years.
Ice-cream of importance
Mother Dairy also has seven ice-cream plants and nine milk processing plants in Delhi and two milk processing units in Andhra Pradesh. They are associated with over 100,000 farmers in Uttar Pradesh and Andhra Pradesh, whom they provide extension services to get the required quality of milk, he said.
“Ice-cream sales contribute substantially to our business, only followed by milk, so there is a major focus to experiment regularly to retain and increase the market share,” he added.
Source:Business Standard,Komal Amit Gera / Chandigarh June 10, 2010, 0:10 IST
Tags:Milk Franchise, Mother Dairy, Ice-Cream Franchise,Gaurav Stores, franchise route,retail consultancy firm, coffee retail outlets, increase market share franchise, milk stores franchise,
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