Amul with a taste of Reliance

Reliance Retail is ready to give the world's biggest vegetarian cheese brand Amul, a run for its money as the biggest procurer and retailer of dairy products ranging from milk to ghee.

Reliance Retail intends a milk procurement target of 10 million litres per day over the next four years, when its retail stores are fully rolled out across the country, as per the reports.

The projected amount is more than the combined procurement of all players in the co-operative and private sectors. Reliance, unlike other co-operatives, contemplates to set up a national manufacturing base of dairy products to feed its retail network.

Amul, which has spurred the White Revolution of India and has made the country one of the largest milk producers in the world, procures around 64 lakh litres of milk per day. Amul Federation’s sale stood at Rs. 3,773 crore in the last financial year.

Though Reliance declined to comment, sources close to the development said the company’s overall dairy business was likely to be four to five times the size of Amul’s.

The company is also looking at the probability of acquiring existing private players in the segment. The launch of dairy products will initially take place in Andhra Pradesh and Punjab, and then be extended to other states.

While disclosing his retail plans at the company’s annual general meeting recently, RIL Chairman Mukesh Ambani had said the company would invest Rs. 25,000 crore in the sector, with a sales target of Rs. 100,000 crore over the next four years.

Calling it an idea which had the potential to revolutionize the Indian socio-economic framework, he said that conceptually, Reliance is creating a virginal circle of prosperity by bringing together farmers, small shopkeepers, and consumers in a win-win association.