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Sep, 18 2018

Mother Dairy won't reduce prices despite cheaper cow milk by Patanjali

Mother Dairy sells cow milk at Rs 42 per litre while Haridwar-based Patanjali Ayurved has launched it at Rs 40 per litre.

Mother Dairy has said that it will not reduce prices despite cheaper packaged cow milk by Baba Ramdev’s Patanjali Group. The company expressed confidence by saying that it doesn’t matter how many players enter this segment, its sales volume will not be affected.

Mother Dairy is selling around 7 lakh litres of cow milk per day, largely in the Delhi-NCR market.

Mother Dairy sells cow milk at Rs 42 per litre while Haridwar-based Patanjali Ayurved has launched it at Rs 40 per litre.

Saugata Mitra, Director of Mother Dairy Fruit & Vegetable Pvt Ltd, said, "We welcome competition. Patanjali group’s entry will lead to an increase in the overall size of the cow milk segment. It will also help farmers and the rural economy. But, we will neither increase nor decrease our price of cow milk." 

Patanjali had last week announced its foray into the cow milk segment by launching cow milk and milk-based dairy products. The company is targeting sales of around Rs 1,000 crore by FY20.

Mitra said, "We have been serving the Delhi-NCR market for last 40 years. Our customers are loyal to the brand. The packaged cow milk market across the country is estimated to be of around 10-12 lakh litres per day. We sell around 7 lakh per day currently and this is estimated to touch 8 lakh litre per day by March next year."

Mother Dairy supplies about 36-37 lakh litres of milk per day. Out of which, 32 lakh litres per day is supplied in Delhi-NCR.

Earlier, Baba Ramdev had said, "Our milk would be cheaper than other established brands by Rs 2 at Rs 40 per litre. We are aiming to have a business of Rs 1,000 crore by next fiscal. This fiscal, we would have a business of Rs 500 crore."

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