Aavin looks to set footprints in 10 more countries from June

Dairy Minister KT Rajenthra Bhalaji, accompanied by a high-level team, will visit the countries to hold talks with the officials there, sources added.

In more than a year when export to the three countries began, the milk major has recorded a turnover of more than Rs 4 crore. This has led the decision to expand to other countries.

The success of flavoured milk has resulted in increasing demand for ghee from the diaspora, following which arrangements are currently underway to export it to 13 countries. Easy availability of ghee, especially from the Vellore dairy that sends most of its ghee production to Chennai, will ensure that the product can be shipped directly from the Chennai port.

Sources said that products shipped through sea route reached Singapore in 6 days, while it takes 10-15 days to reach Hong Kong and Qatar. Agents pay in Indian currency at the Salem Dairy, which manufactures flavoured milk.

Meanwhile, a team of officials from Chennai Aavin are currently on a visit to Bengaluru to scout for a location to set up a sales point there. This follows the Karnataka government dairy starting sales of its milk products in Chennai recently at highly discounted rates.

“Initially we did not want to enter the Karnataka, as we felt that there should no competition between cooperative units. But when Karnataka started sales in Chennai at reduced prices, we felt we should also start sale of Aavin products in Bengaluru,” sources added.

Asked if Karnataka Nandini’s lower priced products would affect sales of Aavin, officials said, “We have a market share of more than 44 per cent, which Nandini will find hard to beat. So we do not fear competition from Karnataka’s Nandini milk products.”