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.
Go deeper with GlobalData
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."
