Driven by its organizational and brand philosophy to emerge the way the 125 year old heritage brand started – quintessential Milk Company, Keventer, on Tuesday forayed into UHT milk in Tetra Pak under Keventer brand name. Interestingly, Metro Dairy, which is now a 100 per cent subsidiary of Keventer Agro, already has a milk portfolio under the Metro Dairy brand name, which includes sub-brands such as Rich (Standardized Milk), Metro (Toned Milk), Diet (Double Toned Milk) and GO (Cow Milk) and it also sells curd and ice-cream.
While Keventer has no plan to do away with its pouched milk portfolio under Metro Dairy brand name, it is gearing up to emerge as one of the top two players (and eventually number 1) in the UHT (ultra high temperature) milk served in Tetra Pak category by March, 2020, said Mayank Jalan, chairman and managing director, Keventer Agro. At present, Amul is the market leader in the category. “By March, 2020, we will have a 25 per cent market share in this new category and therefore will be one of the top two players. We will then become number one milk brand in eastern India,” he said.
While the overall dairy consumption in the world is estimated to be 227 billion litre, in India, it is 66 billion litre. The eastern India market, which contributes 29 per cent to India’s overall dairy portfolio, is growing at a CAGR of 23 per cent. And Keventer is keen on tapping this large market with the new offering from its stable. At present, only 3-3.5 per cent of India’s overall milk market comes from organized sector UHT milk players, but it is expected to grow fast.
Interestingly, the roll out of the UHT Tetra Pak milk under the Keventer brand has come just two months after Metro Dairy, the prime revenue driver for Keventer Agro Limited, decided to have a fresh and younger brand identity with Tollywood super star Dev and Tollywood-Bollywood diva Raima Sen endorsing the entire range of its products- milk, curd and ice cream. Metro Dairy, which contributes nearly 50 per cent of the Keventer Agro’s total turnover, is also in the process of strengthening its distribution network and the brand, in its new avatar has set a target of doubling its revenue from Rs 400 crore now to Rs 800 crore over the next two years.
Jalan said that the company shelled out nearly Rs 150 crore to put up this 55,000 sq ft, state-of-the-art UHT milk plant at Barasat, which is eastern India’s largest UHT milk plant with a processing capacity of 2 lakh LPD (litres per day).
“The market has a huge potential to grow as UHT milk only accounts for 2-3 per cent of India’s organised sector, whereas in countries like China, it contributes more than 60 per cent of the total milk consumption. Venturing into UHT milk business was a natural progression for us at Keventer,” said Jalan.