Mother Dairy won’t cut prices despite Patanjali’s cheaper cow milk

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New Delhi, Sep 17: Unfazed by the introduction of cheaper packaged cow milk by new entrant Patanjali group, market leader Mother Dairy Monday said the company will not reduce prices to match competition.
Mother Dairy, which sells around 7 lakh litres of cow milk per day largely in Delhi-NCR market, also expressed confidence that its sales volume will not be affected with more players entering in this segment.
Haridwar-based Patanjali Ayurved has launched cow milk at Rs 40 per litre as against Rs 42 charged by the Mother Dairy.
“We welcome competition. Patanjali group’s entry will lead to an increase in the overall size of the cow milk segment. It will also help farmers and the rural economy,” Mother Dairy Fruit & Vegetable Pvt Ltd Director Saugata Mitra told .
Asked whether the company will cut rates, he said, “We will neither increase nor decrease our price of cow milk”.
Last week, Baba Ramdev’s Patanjali Ayurved announced its entry into the cow milk segment by launching cow milk and milk-based dairy products, targeting sales of around Rs 1,000 crore by FY20.
Amul and Parag Milk, too, have launched cow milk in Delhi-NCR.
“We have been serving the Delhi-NCR market for last 40 years. Our customers are loyal to the brand,” he said, ruling out any adverse impact on its sales volume.
“The packaged cow milk market across the country is estimated to be of around 10-12 lakh litres per day. We sell around 7 lakh per day currently and this is estimated to touch 8 lakh litre per day by March next year,” Mitra said.