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Due to these aggressive marketing strategies, the unit has been able to run profitably in the first six months of the year, Mr Sebastian said.

KOCHI, July 23

THE Ernakulam Regional Co-operative Milk Producers Union Ltd, one of the zones of Milma, has initiated several sales promotional activities in the current year in a phased manner in order to meet the competition in the market.

The strategies include 14 ATM (`anytime milk') booths in various parts of the city for an uninterrupted supply of milk, redistribution system to deliver milk to dealers through telephone, cash `n' cash system for the supply of milk for the agents, etc., Mr P.S. Sebastian, Chairman of the Ernakulam unit, told newspersons on Tuesday.

The strategies adopted by the unit have started yielding results, as there has already been a four per cent increase in sales, which is expected to touch nine per cent by the end of the year and go up to 20 per cent.

Due to these aggressive marketing strategies, the unit has been able to run profitably in the first six months of the year, Mr Sebastian said.

The Chairman said that the accumulated loss of the Ernakulam unit had been reduced from Rs 15 crore to Rs 11 crore through a rehabilitation programme of the National Dairy Development Board (NDDB), under which the Kerala Government had given a grant of Rs 4 crore.

He said that the unit had been facing severe financial crisis during the last few years.

However, it has overcome its difficulties through the rehabilitation package extended by the Government and has been able to fully repay the dues owed to milk producers and societies.

According to Mr Sebastian, the board meeting of the Ernakulam union has decided to approve the joint venture of Milma with Mother Dairy of NDDB for the marketing drive.

The Malabar Union has also given its approval for the tie-up.

However, the procurement and processing of milk would be vested with Milma itself, he added.

A joint venture company for marketing purposes was absolutely necessary, as a lot of sub-standard milk has been flowing into Kerala from neighbouring States of late.

Moreover, liberalisation has resulted in stiff competition from several private players in the industry, Mr Sebastian said.

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