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Vimala Vasan

ABU DHABI, July 3

AMUL's long-life UHT milk, introduced recently in the UAE, has received a good response, expanding Amul's presence in the Gulf market, where it has carved out a sizeable niche market over the past few years.

Amul's UHT (ultra high temperature) milk, in one litre cartons of four month validity, has elicited a positive response from consumers in the UAE since its launch in April and is now available in over 250 outlets, mainly in Dubai. Mr Debasis Dhal, Country Manager, Middle East, Gujarat Cooperative Milk Marketing Federation, told Business Line, "We plan to make the UHT milk available in Abu Dhabi and other Emirates on a wider scale and also have plans to launch the product in Kuwait and Bahrain in a couple of months. The response has been good as people like the taste of fresh milk, compared to the powderish taste that other UHT products in the market have," he said.

Currently, around 50 tons per month of UHT milk is being imported and sold. The target is to corner 20 to 25 per cent of the market within a couple of years, as milk is a universal product and there is a demand for UHT milk in the Gulf, he said. The company's focus is on introducing new products on a regular basis, Mr Dhal said. It is exploring the possibility of launching Amul ice cream in the Gulf in the coming months. The market demand for pizzas is also being surveyed, with the possibility of setting up a pizza parlour in the UAE, he said.

Amul's branded products, particularly its ghee and frozen dairy products like butter and panneer, have been doing well in the Gulf, registering satisfactory growth levels over the past few years. There has been a 20-25 per cent growth in business in sales of Amul butter, while panneer sales have grown by 25 per cent, backed by demand for the typically Indian product. "These products have done well due to consistent availability and very competitive pricing, particularly in the case of panneer," Mr Dhal said.

Currently, around 250 tonnes per annum of butter is imported. Amul ghee, which has been in the Gulf market for several years, records close to 500 tonnes per annum of imports. Apart from branded products, Amul has made successful inroads in the area of supplying milk powder in bulk for local dairies in the UAE for making yoghurt. From a small market share in this segment a couple of years ago, it jumped to market leader position last year, with regard to bulk milk powder supplies, as a result of high milk prices in Europe. It also supplies milk powder to dairies in other Gulf states.

With the launch of more products and increasing volumes, Mr Dhal said that plans are on to set up a warehouse this year to facilitate storage, either at the Jebel Ali Free Trade Zone (JAFZA), or in Dubai city. The federation established a liaison and coordination office at this zone in 1997. It operates through agents in the Gulf states, who directly import the products, while the JAFZA office is involved in liaison work. It also tenders for dairy products in other West Asian countries, though the focus is on major branded items. The Gulf and West Asia is the largest overseas market for Amul products, with the UAE being the biggest buyer in the region.

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