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Jayant Mundhra

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Dexter Capital Advisors • 7m

Amul sells so much cheese in India, that the none of the No.2, 3 or 4 players sell even 10% as much as Amul sells. And the dairy cooperative giant is set to push this skew further. This is really exciting! .. Amul’s gearing to bring a riot to Indian nascent cheese market. And despite the rise of several competitors over the years, it commands a massive 70-75% market share. No other player holds a double digit market share. And this is when cheese consumption is booming in the country, and when there is no dearth of powerful dairy cooperatives in India. .. And Amul doesn’t care. It’s set to expand its cheese production capacity by 55% over the next year. That’s a big investment, which will bring in even more scale, efficiency and pricing power, which driving on the top of Amul’s nightmarish deep distribution might will be a tsunami! .. Meanwhile, let’s think from the consumer’s perspective. I’m someone who probably consumes manifold higher amounts of cheese a week than the avg Indian consumes in a month. And I’ve observed over time, that when shopping at BigBasket or DMart, Britannia’s cheese and spreads are at steep discounts, while Amul’s products are never sold that way. .. I know that Britannia is anyway struggling to grow its dairy biz. But, clearly, when almost every other player except Amul is resorting to discounts, it suggests, this is not just about Amul’s deeper distribution. For many Indian families, Amul has been synonymous with dairy for generations. These habits are hard to break. Competitors need to offer something truly exceptional to disrupt that. What do you think?

9 replies22 likes
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Replies (9)
Anonymous

Anonymous 3

Stealth • 7m

Anand Milk Union ltd. is one of the biggest co-operatives in India which is jointly owned by 36 lakh Milk producing farmers in Gujarat. Amul,as a brand is renowned in the country for their wide range of milk products and the high quality of its products Amul has been able to set up a monopoly for themselves because of they fact that they have huge amount of money, which has been used for the following- 1. Setting up the best R&D labs in the country to ensure the use of best technology. 2. Legacy Mascot marketing The entire range of the products. 3. High quality products to ensure customer satisfaction to the best level. Virtually no other company has the amount of resources and the R&D present with Amul and no other competitor has till date been able to beat the utterly butterly delicious butter. :))

0 replies3 likes

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