🤔 Amul v/s Nandini: Who will Win?
Amul's entry in Karnataka has caused a lot of controversy. Why? ReadOn!
‘Amul doodh peeta hai India’.
You read it in the ad jingle tune, right?
Well, what if we tell you that not the whole of India drinks Amul milk?
Yes, South India’s refrigerators (especially Karnataka) are dominated by Nandini.
From milk to curd to paneer, Nandini rules the state with a 65% market share.
But now, Amul is finally entering Karnataka.
And while this may be good news for all the north Indians who have moved to Bengaluru, this announcement has started a major tussle in the State.
The tussle is no longer restricted to Amul v/s Nandini.
It has now triggered a political BJP v/s Congress fight, right before the elections.
Let us look at why this intense fight over milk is heating up.
ReadOn!
📖 Context First
First, let’s give you some context.
Amul is the brainchild of the Gujarat Cooperative Milk Marketing Federation, while Nandini is the brainchild of the Karnataka Milk Federation.
Both are co-operatives that were born with one vision: to empower dairy farmers by helping them earn more for the milk they produce.
Both these cooperatives have been super successful.
While Amul has reached a wider audience pan-India, Nandini is giving it a fair fight in the South.
This dynamic could change with Amul now entering Karnataka.
But why the sudden interest in Karnataka, Amul?
🥛 Amul Milking Karnataka: Why?
Karnataka is one of the biggest consumers of milk in India.
Source: The Print
And with more people from northern India now shifting to Bengaluru for jobs, Amul’s target audience in the North is declining.
Its target audience is shifting to the South.
So is Amul.
It wants to serve its audience wherever they go.
Plus Amul is in its expansion phase. It wants to expand to other items like atta, sodas etc.
So, capturing a larger audience makes sense.
Now, why are others vehemently opposing this logical strategy?
🤨 Karnataka Opposing Amul: Why?
People are afraid Amul’s strategy might be a little too effective.
It might create a super high brand recall and push Nandini to the sidelines.
And that would be disastrous for the 23 lakh dairy farmer families that KMF supports.
These dairy farmers are already going through a lot right now.
Inflation has raised their costs and lumpy skin disease has reduced production.
Amul’s entry could make things worse for them.
So, the people of Karnataka are trying to save their farmers.
Hotel associations have pledged their support to Nandini and even the common people are supporting this cause.
And to be fair, Nandini does have advantages on the home ground.
First, it can provide fresher milk. Amul will have to procure its milk from Goa or other nearby states, which could result in less fresh milk.
Second, Amul is much more expensive than Nandini. While one litre of Nandini costs Rs. 39, one litre of Amul will cost Rs. 54 - Rs. 64.
The competition is tough. The space is boiling.
But thanks to the upcoming elections in Karnataka, this whole competition has turned into a political controversy.
🔍 The Political Lens
Well, we don’t delve into the political realm much, but today, it's important.
The Congress claims this is BJP’s agenda to sideline Nandini and promote Amul.
They’re blaming the government for a decline in KMF’s milk procurement from 99 lakh litres to 71 lakh litres.
This decline, however, could be just due to the lumpy skin disease epidemic which impacted cattle in India and killed lakhs of cows.
Many citizens are also claiming that the move intends to weaken Nandini so it agrees to a merger with Amul (something that had apparently been hinted at earlier).
Karnataka’s citizens are rightly worried about the farmers, as they could see a drastic fall in milk consumption after Amul’s entry.
The government on the other hand is not worried.
It claims Nandini is not just a state brand, it's an established national brand that can take the competition, especially on its home ground.
Now, we’ll have to wait and watch which one of them is right.
What are your thoughts on Amul’s entry into Karnataka?
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cooperative should do tought competition to amul in gujarat. i'm surprised that 1 litre milk cost 39rs by nadini. we pay 62rs in gujarat to amul. we also want 39rs price. nadini should come to gujarat.