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Amul on a launch spree

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Amul on a launch spree

Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) which markets the Amul brand, has lined up many products for launch this year. The products, which are being launched in phases, include Amul Infant Formula - I & II, mini cones and chocobars, frozen pizzas, Snow Cap Softy Mix and Kulfi mix powder.

Amul is the first brand where softy mix will be available in cartons and will be priced at Rs 50 for a one-litre pack unlike other brands which sell at around Rs 64 for a litre. The other products which the Rs 2,500-crore company is working on are tomato soup and kadhi.

According to the company sources, Amul's "Janata pizza" was a huge success. Over 1,000 outlets across the country were selling 30,000 pizzas a day. In Chennai, 1,200 pizzas were being sold everyday. Amul's success in this segment and the ice-cream segment was notable for the triumph of a domestic brand beating multinational players on the strengths of quality and price.

Since its launch four years ago, Amul ice-cream had sold 23 million litres till last year. According to company sources, the brand is expected to beat Kwality Walls, whose sales were stagnating, by 2005.

Both Amul and Kwality Walls had 41 per cent share of the market currently, except in Chennai, where the latter dominated.

GCMMF, which is growing at a rate of 50 per cent, is also planning to launch Funny Faces, Sundaes, Smarties and Milk lollies under the Fundoo clutch of Amul products. Another new launch would be the Tempting Pack. Ice-cream cakes and an extruded ice-cream product called Megabite are also in the pipeline.

In the Rs 460-crore, 25,000 tonne infant milk substitute category, Amul is expected to do well as the main competitor, Nestle's Lactogen, which is priced much higher than Amul's offering, which is Rs 105 for a 500 gm tin. Nestle, which has another similar product, Nestogen, has 62 per cent market share as of now. GCMMF's other offering, Amulspray, has 30 per cent. The company also plans to introduce weaning foods later.

Source: Business Line


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