Godrej Jersey To Expand Its Retail Presence and Parlours Across India Company's goal is to become a prominent retail brand by offering products catering to various economical sizes making it accessible across India
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Godrej Jersey, an Indian dairy company, is trying to make a move into the untapped potential of the milk market by addressing the competitive dynamics of the sector. Lucrative opportunities exist in areas such as value-added dairy products, organic/ farm fresh milk and exports. The market growth in Dairy requires support of significant infrastructure investment across processing, chilling, logistics, cattle feed etc.
"Today, we are witnessing a shift in consumers' preference towards convenient and affordable value-added dairy products. Hence,we have been actively introducing new products and variants to cater to this evolving consumer preferences," said Bhupendra Suri, CEO, Godrej Jersey.
India is the highest milk producer and ranks first position in the world; the milk production of India has registered 58 per cent increase during the last nine years i.e., during the year 2014-15 and 2022-23. It increased to 230.58 million tonnes in the year 2022-23 and production is up at a CAGR 5.85 per cent over the past nine years, according to Invest India.
India's per capita milk consumption is estimated to increase by 2.12 per cent during 2023-2024. Uttar Pradesh, Rajasthan, Gujarat, Maharashtra, and Bihar are the major states for the country's dairy consumption. Godrej Jersey has expanded its market presence into regions like Western Uttar Pradesh, Maharashtra and Uttarakhand, where it has observed a substantial demand for south-made ghee in Northern markets. "This strategic move aligns with our ambitious plans for market expansion, focusing on both Southern and gradually Northern India. We aim to solidify our position and capitalize on the increasing demand for dairy products in these regions," the CEO added.
In order to increase its penetration across India, the company last year launched Milky Shots at INR 10.Similarly, Recharge, a rejuvenating drink infused with whey protein continues to receive positive response from the consumers. "In the coming year, we intend to launch low-sugar variants of our products. In sync with our commitment to innovate and meet diverse consumer demands, we will continue to expand our portfolio of value-added dairy products across price points and sizes thereby providing diverse choices to our customers.," the CEO explained.
Currently, the dairy industry's revenue composition leans towards core milk products, constituting around 68 per cent of the market share, while value-added products (VAPs) represent approximately 32 per cent. However, there is a notable trend of growth in VAPs, outpacing the overall milk business with a 20 per cent annual growth rate. "For us, the contribution of VAP to our topline improved to 36 per cent at the end of the quarter ended December 2023 from 32 per cent, a year ago."
The company has elaborate expansion plans for the near future and increasing its retail presence is a key goal, "Our goal is to become a prominent retail brand by offering products catering various sizes and varieties thus enhancing demand and accessibility. Smaller denomination products like Milky Shots and Badam Milkto broaden our penetration in the retail market."
Besides the company is focusing on increasing its New Jersey Parlours across different regions, "These parlors will offer a wide range of SKUs, including milk variants, value-added dairy products and other dairy-based beverages."
The India Dairy market size is estimated at $26.11 billion in 2024, and is expected to reach $35.96 billion by 2029, growing at a CAGR of 6.61 per cent during the forecast period (2024-2029), said a report by Mordor Intelligence, a market research company.
