The entry of a major brand such as Gujarat-based Amul into the territory of its Karnataka counterpart Nandini, has triggered a political storm. The opposition has used the perceived battle of the dairy cooperatives to take aim at the ruling party in Karnataka.
To provide further clarity, Amul's newly appointed Chief Executive Officer Jayen Mehta has dismissed speculation about its competition with Nandini.
Firefight against political heat
Mehta reiterated that since both Amul and Nandini are owned and run by dairy farmers, the question of a turf war between the two doesn't arise.
He added that Amul will only be selling milk and curd in Karnataka through online platforms, and won't compete directly with Nandini.
Mehta also went on to say that Nandini's position in the market is safe since it can offer lower prices thanks to subsidies in the state.
Rules out Amul vs Nandini angle
He further mentioned how Amul has been selling milk in two districts of Karnataka for almost eight years, without competing with Nandini.
Mehta also dismissed claims about the merger of the Nandini brand worth Rs 21,000 crore, into Amul.
He allayed fears about a threat to Nandini, by mentioning that both cooperatives have been working together for decades, and highlighted how Amul bought cheese from Nandini to support farmers in FY21.
Citing a price disadvantage due to subsidies that Nandini gets in Karnataka and Amul doesn't, Mehta also ruled out a full-fledged launch in the state.
