Corporatization of mother dairy

Abstract

Dairy industry has undergone considerable transformation and greater importance has been given to the development of dairy co-operation infrastructure. This has resulted in substantial growth in milk production since the early seventies. From the launch of Bombay Milk Scheme to ideological and market fights between various brands, the dairy industry has undergone a stark transformation. Launch of Mother Dairy brand by National Dairy Development Board (NDDB) under Operation Flood in 1974 provided impetus to the industry through investments for infrastructural improvement and provision of marketing and distribution channels state run cooperatives. Dr Varghese Kurien, the founder of NDDB and The Father of White Revolution envisioned an industry where control stays in the hands of the farmers and they remain the largest beneficiaries. The next generation under Dr Amrita Patel, a disciple of Kurien, was oriented more towards profits and dreamt to increase the reach of Mother Dairy through a corporate rather than a cooperative approach. It instituted Mother Dairy Fruits and Vegetables Pvt Ltd to procure, process and sell the products and Mother Dairy Foods Ltd to form joint ventures with state cooperatives to sell their products under Mother Dairy brand. These ventures brought the two milk powerhouses in direct conflict leading to a fierce competition in the market. Amrita was in a dilemma to follow the footsteps of his guru or to create an identity of her own.