Indian food producer Britannia is to pull out of the Delhi liquid milk business.

Britannia has already withdrawn from the milk markets in Kerala and Tamil Nadu, but said it plans to stay in Mumbai, Pune, Hyderabad and Kolkata. According to the Economic Times, Britannia has been able to control costs and has been forced to sell milk at uncompetitive high prices. Given that most consumers view milk as a commodity item, they were unwilling to shell out the extra rupees for Britannia's Milkman brand.

The company reacted by lowering retail prices by one rupee (US$0.02) but they were still higher than milk sold by rivals Mother Dairy, Amul and Paras.

In March 2002, Britannia unveiled a milk JV with New Zealand dairy giant Fonterra.