Indiantelevision.com Team

(29 December 2007 6:00 pm)

MUMBAI: Reliance Retail and Dabur India are the latest players planning to embark on the dairy business worth Rs 1 billion, which is expected to be more than double by 2011.

Reliance Retail is in talks with food manufacturer and exporter Himalaya International, for a strategic alliance or a possible buyout, stated moneycontrol.com.

Reliance already sells liquid milk under the Dairy Pure brand name across its Reliance Fresh outlets. The company has now started a pilot project in Delhi, to explore tying up with other grocery stores and even milk booths. It may even look at home delivery.

On the other hand, FMCG major Dabur India is also reportedly planning to foray into the milk-based drink segment. Dabur already markets fruit juice in the beverage segment.

Dabur is considering the possibility of entering into the value-added milk-based drink segment. However, it is yet to decide on a time to launch a product in this category.

Reliance may set up its main dairy base in five agricultural hubs in Punjab, with an investment of approximately Rs 30-40 billion.

After liquid milk, processed dairy products like butter, cheese, paneer and ice creams are also in the pipeline for Reliance Retail.

Global beverage giants Pepsi Co and Coca Cola have already announced plans to tap the milk-based drinks market in India. Over the past few months, there has been considerable flutter in the the flavoured milk category, with majors Nestle and Amul having entered the market.

With increasing health awareness amongst Indian consumers, players such as Britannia, Parle, Mother Dairy and regional stalwarts such as Vijaya, Energee and the Delhi-based Paras group are also reported to be developing their own flavoured milk plans.