THE DAIRY DISRUPTORS

New-age dairy firms are promising the discerning Indian consumer not just high-quality milk, but also an array of value-added products such as yogurts, desserts, probiotic milk and much more. But can they outsmart India’s famed milk cooperatives?

- AJITA SHASHIDHAR

MINATI PATNAIK, a 55-year-old homemaker in Bhubaneswar had been buying milk from a local milkman for over three decades. Though the latter was infamous for adulterating the milk, Minati chose to ignore it as she had heard worse stories of adulteration by local milk co-operatives. It’s been five years since Minati switched allegiance to Milky Moo (owned by dairy start-up Milk Mantra). The value-conscious homemaker is now happy to pay even a ₹5 premium per litre for the milk.

“The milk is better than the doodhwala’s milk I bought for ages. The best part is I don’t have to boil it. I have even started buying milk and paneer via their Daily Moo app,” says Minati.

For all those who believe Tier-II and III cities shy away from anything remotely premium, Minati is an example. Odisha, in fact, has dozens of consumers who have embraced Milky Moo. The decade-old firm has a 20% market share (despite selling its milk at a premium of ₹5) in the state, says the CEO of one of India’s biggest milk co-operatives. Though local dairy cooperative OMFED has a 50% market share, it is losing clout to private dairies like Milk Mantra and Pragati.

The Milky Way

200 MMTPA Volume of the Indian dairy industry

₹1.80 LAKH CRORE Size of the organised domestic dairy industry

557-562 LAKH LITRES/DAY Milk procured by private dairies

535-540 LAKH LITRES/DAY Milk procured by cooperatives

* MMTPA: Million metric tonnes per annum’ Source: Alvarez and Marsal, industry