May 14, 2014: The consumer pack business in edible oil market which is estimated at Rs.23,000 crore is going to see an interesting turn with Mother Dairy announcing the launch of its edible brand Dhara in small and affordable pack of 100 ml and 200 ml packs. The small packs which cost Rs.15 and Rs.28 each would be the first of its kind for the national edible oil maker. This move is seen as a bid to regain lost ground. Dhara brand which was launched 25 years ago very recently has been losing to Fortune, Saffola and Ruchi Soya.
Dhara which till 2003 was distributed by Gujarat Cooperative Milk Marketing Federation (GCMMF) is looking forward to increase its sales turnover by 800 crore a year by 2020. Mother Dairy is looking forward to sell the small packs in rural markets starting with East. This is seen as a bid to convert rural consumers from loose to packaged oil.
Mother Dairy would be selling the packaged edible oil through the Safal booths but it remains to be seen if it will enjoy the same success as it did when it was distributed through Gujarat Cooperative Milk Marketing Federation.
The consumer pack business in edible is estimated at Rs 23,000 crore and is characterized by wafer-thin margins to distributors.
