afaqs! news bureau

Amul MD Jayen Mehta, speaks on the brand's expansion in Karnataka amid backlash

According to Mehta, there is no competition between Amul and Karnataka cooperative dairy brand Nandini.

Amul, a giant in the dairy business recently announced its intention to enter the Bengaluru market and sell milk and curd through online portals. But this move faced a lot criticism, thus upsetting the Kannadigas, who expressed their displeasure on social media with the hashtag #gobackAMUL.

A political slugfest flared up in Karnataka ahead of state's assembly election over Amul's entry into Bengaluru's market. Amul managing director Jayen Mehta in an interview with ET, has replied to the ongoing conrovery. He said that there is no competition between Amul and Karnataka cooperative dairy brand Nandini, seeking to douse the controversy over the country's largest dairy maker's decision to expand in the poll-bound state.

"Just like Amul is a cooperative of farmers in Gujarat, Nandini is a brand of Karnataka Milk Federation (KMF), a cooperative of farmers of Karnataka. There is no question of any competition between two cooperatives and two farmer-owned organisations," Mehta told ET.

"Amul and Nandini have a good relationship and it will continue to be so."

According to sources, Amul may be trying to reach the North Indian community with its online offer, but the KMF is certain it can handle the competition. Amul charges 54 rupees per litre for its toned milk, compared to 39 rupees for KMF's milk that has been tinted with Nandini. From Andhra Pradesh, Amul is anticipated to obtain milk.

Also Read: Amul faces backlash over plans to enter Bengaluru market

The two largest milk cooperatives in the nation do not have a contract, but they are avoiding conflict on their home soil thus far. Despite the fact that it has only recently joined the online marketing field, KMF sources warned that it would foster unhealthy competition.

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