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
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


  • English
  • Arabic

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.

SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
%3Cp%3E%3Cstrong%3EProcessor%3A%3C%2Fstrong%3E%20Apple%20M3%2C%208-core%20CPU%2C%20up%20to%2010-core%20CPU%2C%2016-core%20Neural%20Engine%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%2013.6-inch%20Liquid%20Retina%2C%202560%20x%201664%2C%20224ppi%2C%20500%20nits%2C%20True%20Tone%2C%20wide%20colour%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMemory%3A%3C%2Fstrong%3E%208%2F16%2F24GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStorage%3A%3C%2Fstrong%3E%20256%2F512GB%20%2F%201%2F2TB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EI%2FO%3A%3C%2Fstrong%3E%20Thunderbolt%203%2FUSB-4%20(2)%2C%203.5mm%20audio%2C%20Touch%20ID%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConnectivity%3A%3C%2Fstrong%3E%20Wi-Fi%206E%2C%20Bluetooth%205.3%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%2052.6Wh%20lithium-polymer%2C%20up%20to%2018%20hours%2C%20MagSafe%20charging%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECamera%3A%3C%2Fstrong%3E%201080p%20FaceTime%20HD%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EVideo%3A%3C%2Fstrong%3E%20Support%20for%20Apple%20ProRes%2C%20HDR%20with%20Dolby%20Vision%2C%20HDR10%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAudio%3A%3C%2Fstrong%3E%204-speaker%20system%2C%20wide%20stereo%2C%20support%20for%20Dolby%20Atmos%2C%20Spatial%20Audio%20and%20dynamic%20head%20tracking%20(with%20AirPods)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EColours%3A%3C%2Fstrong%3E%20Midnight%2C%20silver%2C%20space%20grey%2C%20starlight%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%3C%2Fstrong%3E%20MacBook%20Air%2C%2030W%2F35W%20dual-port%2F70w%20power%20adapter%2C%20USB-C-to-MagSafe%20cable%2C%202%20Apple%20stickers%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh4%2C599%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
New UK refugee system

 

  • A new “core protection” for refugees moving from permanent to a more basic, temporary protection
  • Shortened leave to remain - refugees will receive 30 months instead of five years
  • A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
  • To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
  • Under core protection there will be no automatic right to family reunion
  • Refugees will have a reduced right to public funds

 

 

Another way to earn air miles

In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.

An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.

“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.

Film: Raid
Dir: Rajkumar Gupta
Starring: Ajay Devgn, Ileana D'cruz and Saurabh Shukla

Verdict:  Three stars 

UAE currency: the story behind the money in your pockets
LA LIGA FIXTURES

Thursday (All UAE kick-off times)

Sevilla v Real Betis (midnight)

Friday

Granada v Real Betis (9.30pm)

Valencia v Levante (midnight)

Saturday

Espanyol v Alaves (4pm)

Celta Vigo v Villarreal (7pm)

Leganes v Real Valladolid (9.30pm)

Mallorca v Barcelona (midnight)

Sunday

Atletic Bilbao v Atletico Madrid (4pm)

Real Madrid v Eibar (9.30pm)

Real Sociedad v Osasuna (midnight)

RESULTS FOR STAGE 4

Stage 4 Dubai to Hatta, 197 km, Road race.

Overall leader Primoz Roglic SLO (Team Jumbo - Visma)

Stage winners: 1. Caleb Ewan AUS (Lotto - Soudal) 2. Matteo Moschetti ITA (Trek - Segafredo) 3. Primoz Roglic SLO (Team Jumbo - Visma)

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
Aggro%20Dr1ft
%3Cp%3EDirector%3A%20Harmony%20Korine%3Cbr%3EStars%3A%20Jordi%20Molla%2C%20Travis%20Scott%3Cbr%3ERating%3A%202%2F5%3C%2Fp%3E%0A