Amul proposes acquiring loss-making Delhi Milk Scheme

12 Sep 2012

Gujarat Co-operative Milk Marketing Federation Ltd, which owns the Amul brand, has proposed to acquire the Delhi Milk Scheme (DMS), a loss-making unit under the ministry of agriculture.

DMS, which sells pouched milk in the capital, has about 5 per cent share in the pouched milk segment in Delhi and its suburbs.

''We are making a proposal to the agriculture minister Sharad Pawar to take over the DMS operations,'' said Vipul Chaudhary, chairman of GCMMF.

Chaudhary, who recently took over as GCMMF chairman, was speaking after the launch of Amul's new pouched milk offer, Moti. The new aseptic poly packs contain ultra-high temperature (UHT) treated milk.

Amul currently has nearly 45 per cent share of the pouched milk market in Delhi, where it sells 2.2 million litres of milk a day. DMS currently sells around 3 lakh litres in pouches in Delhi. The total market for pouched milk in Delhi is estimated at 5 million litres.

The Delhi Milk Scheme, launched in 1959 to provide milk for Delhi citizens, however, has been accumulating losses for the past several years.