Date:17/06/2005 URL: http://www.thehindubusinessline.com/2005/06/17/stories/2005061702320400.htm

Back Mother Dairy to foray into processed cheese segment

Sindhu J. Bhattacharya

New Delhi , June 16

IN a bid to complete its milk products portfolio, Mother Dairy has decided to enter the 6,000-tonnes processed cheese market.

Mother Dairy India, the marketing arm of National Dairy Development Board (NDDB), plans to launch its processed cheese initially in Delhi and the National Capital Region.

The Chief Executive Officer of Mother Dairy India, Mr Paul Thachil, told Business Line: "The foray into processed cheese completes our milk products basket. The cheese will be made from cow's milk at the Dynamix Dairy plant. The milk for this product will be sourced from co-operatives in Maharashtra, where cow milk is easily available. We expect to corner 20 per cent of Delhi's processed cheese market over the next three years."

He said the company decided to source only cow's milk for the cheese to upgrade product quality. The national cheese market is valued at about Rs 125 crore, with Delhi accounting for almost 20 per cent of this. The existing players in this market include Gujarat Cooperative Milk Marketing Federation (GCMMF) with brand Amul, Britannia and Dabon International.

Asked whether any flavours were being launched, Mr Thachil said only plain cheese is being launched since flavours launched by other players over the last few years have not been received well by the consumer.

The existing milk-based products by Mother Dairy include ice-creams, dahi (curd), lassi, flavoured milk, butter, dairy whitener and long-life milk. Mr Thachil said a couple of other new products were on the verge of being launched, but declined to divulge further details. He did say, however, that entry into entirely new product categories was not being contemplated.

Mother Dairy cheese is being launched in three formulations: slices (200 gm pack of 10 at Rs 52), cubes (200 gm pack of 10 at Rs 50) and cheese spread (200 gm pack at Rs 35).

NDDB has chalked out an aggressive growth path this fiscal in a bid to become a national player with its milk-based products. It has set for itself a 33 per cent growth target for the fast moving consumer goods (FMCG) business, making it worth Rs 2,000 crore in 2005-06.

NDDB began its corporatisation initiative in 2001, and was subsequently divided into manufacturing arms — Mother Dairy Food Processing Ltd and Dhara Vegetable Oil and Food Company — besides the marketing arm Mother Dairy India. Besides milk and milk products, Mother Dairy also markets frozen foods and juices under brand name `Safal' and a range of edible oils under `Dhara'.