RELIANCE ENTERS IN DAIRY MARKET

Will Reliance do the magic in milk too? Reliance dairy foods, a subsidiary of Reliance retail, it is a relatively new player in the market and has to compete with established players like Amul, Nestle and Mother Dairy. Reliance has called its product as 'life' and its "USP" is 10% extra milk in every packet.
A Reliance retail spokesperson told Economic Times, "Besides selling in Haryana, Punjab, Andhra Pradesh, Tamil Nadu, arjasthan, NCR and Himachal Pradesh, wes see this business growing further with the extention of our product portfolio. Reliance retail currently has processing and packaging facilities in Andhra Pradesh, Haryana and Rajasthan and would look at expanding this over a period of time in other states also."
Competition in organised milk sector has spilled over to the urban areas where there is a large scope due to the increased demand. Analyst say the sector sees high margins of 10-12% that keeps growing as people don't typically spend less on food even when the economy is slow. Competition has increased in urban areas beecause of the increased corporate players in the field . Nestle India has also major plans to increase the its market share in the organised milk sector. However, with the products such as Nestle milk, pro heart milk and slim milk, it mainly caters to niche segment and to the aspirant class
To conclude I would say that whatever reliance does high price or not , extra milk or not , people would buy Reliance 'LIFE' as Reliance has become too much of a reliable brand in India