Nandini VS Amul row: Reputed dairy co-ops caught in ‘political talks’ may suffer brand erosion, warns market watchers

From a brand perspective, the world is your oyster and therefore, an Amul can sell in Bengaluru just as a Nandini can sell in Anand. However, the Nandini-Amul war, triggered recently by the political fraternity, is certainly not a war for a free market or healthy competition, and if left to continue, two largest dairies in the country (Gujarat Milk Marketing Federation’s Amul with a turnover of ₹72,000 crore and Karnataka Milk Federation’s Nandini with ₹25,000 crore) may suffer irreparable brand erosion, cautioned industry observers.

From a brand perspective, the world is your oyster and therefore, an Amul can sell in Bengaluru just as a Nandini can sell in Anand.

However, the Nandini-Amul war, triggered recently by the political fraternity, is certainly not a war for a free market or healthy competition, and if left to continue, two largest dairies in the country (Gujarat Milk Marketing Federation’s Amul with a turnover of ₹72,000 crore and Karnataka Milk Federation’s Nandini with ₹25,000 crore) may suffer irreparable brand erosion, cautioned industry observers.

The fact is Amul has been selling some of its products including milk (cartons), butter, cheese, paneer, ice cream, curds etc. in Karnataka for several decades, but its “utterly butterly” chemistry turned “bitterly’‘ when there was a sort of ‘political intervention’ to install Amul as a competition brand in the State formally, they pointed out.

V. Balakrishnan, Chairman Exfinity Ventures, a venture capital firm, and former CFO, Infosys told The Hindu, “India is a free market economy and everyone is entitled to sell anywhere in the country. The problem comes when politicians try to take sides and push for a particular product and that too during election time. It is sad that the whole issue now takes a political colour and real reasoning takes a back seat.’‘

The air war between Nandini and Amul was also due to a lack of trust between the Centre and State governments as the regional parties thought that the Centre has been trying to roughshod them and promote agendas that were inimical to the State’s interest, Mr. Balakrishnan opined.

“This is an election issue today. It is ‘Rotti, bhattey, maney and haalu’ politics at play. Even this shall ebb out post May 13,’‘ commented Harish Bijoor, a brand expert and CEO of a boutique consulting firm, Harish Bijoor Consults.

The Nandini-Amul debate is a needless one and it’s udder, butter and milk politics at its best, or at its worst. It’s election time and any possibility of controversy is embraced by the political class, as per Mr. Bijoor.