Marketing and supply chain cooperative Amul is planning to get a foothold
in the bottled water segment as part of a strategy to hedge the pressures of rising
input costs in its dairy products business.
board of directors of Amul is scheduled to meet on 1 October to discuss a proposal
to diversify into selling bottled water, which has been proposed by the Baroda
District Cooperative Milk Producers Union (BDCMPU), one of the 13 district unions
of the cooperative giant.
to BDCMPU chairman Madhu Shrivastava, a roadmap would emerge only after the board
investment by Amul is reportedly in the range of Rs6 crore, with more details
to emerge after the board meet concludes.
entry into the new segment is aimed at providing relief to farmers and dairy cooperatives,
since 50 per cent of profits from the new segment would be spent on the welfare
of families involved in dairy production.
Another 25 per cent of the profit would go towards the welfare of families involved
in distribution and collection of dairy production.
has a huge retail network of around five lakh outlets across India. The packaged
water is expected to be branded Narmada Neer to be sold in 200ml pouches, and
one- , five- and 20-litre pet bottles, with the initial launch scheduled in Vadodara.
estimate the total size of packaged bottled drinking water business in India at
about Rs1,800 crore, with growth rates estimated at 40 per cent annually, which
would see the business total Rs2,200 crore by 2010.