The Gujarat Milk Marketing Federation-the parent company of the famous Amul is going to operate from DMS counters soon. Winning a tender from Mother Dairy, the cooperative is set to supply milk to NCR residents through DMS counters.
The Delhi Milk Scheme begun way back in 1959 as a part of the union agriculture ministry has been incurring losses over the years.
GCMMF’s move is prompted by certain concrete calculations: using the DMS infrastructure and its great market potential. Amul will pay Rs 42.3 crore as lease rent to use DMS assets in FY19 and FY20 for the DMS’s 550 milk booths located in Delhi and NCR, according to media reports.
The tendering stipulates that the lease amount will be increased by 6-7 percent annually. Amul will handle the operations and management of DMS for 30 years on renewable basis.
This deal will increase amul’s market share in Delhi NCR by 10 percent to 53 percent post FY20.