Gujarat Cooperative Milk Marketing Federation (GCMMF) has revealed plans to establish a new chain of fastfood outlets across India. The marketing arm of Indian food co-operative Amul, GCMMF is pinning its hopes on the venture as a way to give some threatening competition to the plethora of multinationals who have set up shop in the country.

Markets watchers are unsure if the chain, representing new territory for the company more widely recognised for its dairy brands Utterly Butterly and Mithai Mate can succeed in forcing a price war. Amul has already battled competitors Cadbury, HLL and Nestlé and even pressured them into giving some concessions on the price front, but the fastfood venture may well be a slow mover as the company treads cautiously.

Outlets are planned for western cities Mumbai, Ahmedabad, Baroda and Surat. Only if these are successful will Amul roll out the venture into other parts.

The signs are promising however, backed by a strong brand name and a good cash flow, Amul is picking the right time to enter the market, albeit cautiously. The eating out trend is gathering pace among Indian consumers and it seems that Amul will be offering a good choice. Company officials revealed: "The choice is between a quick thali meal or a spread out of sandwiches, burgers, pizza, shakes and the like."