Amul managing director Jayen Mehta on Monday said there is “no question of competition” between Amul and Karnataka cooperative dairy brand Nandini, seeking to douse the controversy over the country’s largest dairy maker’s decision to expand in the poll-bound state.

“Just like Amul is a cooperative of farmers in Gujarat, Nandini is a brand of Karnataka Milk Federation (KMF), a cooperative of farmers of Karnataka. There is no question of any competition between two cooperatives and two farmer-owned organisations,” Mehta told ET.

Gujarat Cooperative Milk Marketing Federation (GCMMF)-backed Amul’s recent tweet announcing its Bengaluru plan had snowballed into a political controversy with opposition parties and some local residents alleging that the move is a “conspiracy” to kill Nandini brand and undermine cooperative movement in the state.

“Amul and Nandini have a good relationship and it will continue to be so,” Mehta said. Some industry experts said the whole controversy is “bizarre” and could have long-term consequences on the companies’ business plans.

“This is more than just another brand-related controversy which usually fades away after a while,” social commentator and brand specialist Santosh Desai said. “This is concrete and it’s about a company’s right to sell in a particular market. It’s bizarre to stall any company from selling their products in any market they choose to,” he said.

Nandini is the largest supplier of milk in Bengaluru with a dominating three-fourths share.

Amul present in Karnataka for years, says Mehta
Mehta, who took over as Amul’s managing director in January this year, said the company has “always been supportive” of dairy development in Karnataka.

“Amul fresh milk and curd will only be sold through ecommerce and quick-commerce platforms, which will be launched soon. We won’t even sell these fresh range products through our parlours in Bangalore,” he said.

Amul had on April 5 tweeted, “A new wave of freshness with milk and curd is coming to Bengaluru. More information coming soon.”

That triggered a backlash in Karnataka where social media hashtags like #SaveNandini and #GobackAmul went viral soon after.

On Sunday, Congress leader Siddaramaiah tweeted, tagging Prime Minister Narendra Modi: “Is your purpose of coming to Karnataka to give to Karnataka or to loot from Karnataka? Are you now trying to steal Nandini (KMF) from us?”

A hotel association in the state, Bruhat Bengaluru Hotel Association, on Saturday said it has directed all hotel owners to support Nandini milk in support of the state’s dairy farmers. In a statement, the association said Kannadigas should only promote Nandini milk products.

Mehta said Amul has been present in Karnataka for years, selling pouch milk and fresh products in Hubballi and Belgaum since 2015. The upcoming planned launches from its fresh category in Bengaluru are toned milk, gold milk and curd, he said.

Mehta pointed out Amul ice-cream is being manufactured at KMF’s flagship plant at Bengaluru for more than a decade, using the milk procured from farmers of Karnataka. Amul has also purchased large quantities of cheddar cheese from KMF in the past, he said, adding, “So, Amul has always been supportive of the dairy development in Karnataka.”

Late last year, Union home minister Amit Shah had called for a merger between KMF and Amul, saying if Amul and Nandini worked jointly, they will be primary dairies in three years and that their coming together will benefit the farmers all over the country.

At that time, too, other political parties had come out against the plan.

Amul sells milk, curd, ice-cream, butter, cheese and chocolates. GCMMF reported a turnover of Rs 55,055 crore in 2022-23, an 18.5% year-on-year increase. The cooperative has 98 milk processing plants across the country with an installed capacity of 470 lakh litres per day. New categories under the Amul franchise include sports drinks, cookies and organic staples such as atta.

Karnataka Cooperative Milk Producers’ Federation (KMF) is the second-largest dairy cooperative in the country, and has 16 milk unions covering all districts of the state, according to its website. Its products include milk, curd, butter, ice-cream, frozen dessert, and chocolates. The federation said on its website that its vision is to compete with multinationals and private dairies with better quality of milk and milk products and, in the process, sustain invincibility of cooperatives.