IFFCO,the fertilizer major is attempting its hand at dairy business. It proposes to come up with Rs 1000 crore dairy plant at Nellore to follow in the footsteps of Amul . The state of the art plant attached to a dairy farm where 1500 milch animals will produce milk—is something even Amul can only envy.
If the fertilizer major is going alone in this project or it has partners, words are not coming. It is being said that some Israeli company is in talks with IFFCO for partnership. Well, in the coming days veil from this will be lifted.
The choice of Nellore is also quite strategic in the sense that it is close to capitals of majority of Southern states like Chennai, Banglore and Hyderabad. Obviously the company will find it easy to market its products in these cities along with tier-2 and tier-3 cities. Given its brand value company may not face difficulties on this count. Plus, it intends to give a new brand name to its dairy product along with, of course the brand name of IFFCO. The number of dairy products will also be large with cheese included.
Well, is IFFCO in some kind of competition with Amul? The company vehemently denies it and says that dairy market is large enough to accommodate many players. Coming days would be interesting to watch if IFFCO earns a name for itself in dairy products in the same way it has done in the field of fertilizers.