Amul, a household name synonymous with dairy products, is taking a bold step by venturing into the tea market. The company, widely known for its milk, butter, and cheese, is now eyeing tea as its next big product. Jayen Mehta, Managing Director of Amul, shared the company’s ambitious plans to challenge industry giants like Tata Tea and Hindustan Unilever Ltd.
A Natural Fit: Milk and Tea
In an interview with NDTV Profit, Mehta emphasized the natural synergy between milk and tea, stating, “Logically, milk and tea go together.” He mentioned that Amul had been in discussions with India’s Minister of Commerce, Piyush Goyal, about working with tea cooperatives in South India. This initiative would mimic Amul’s successful dairy model, empowering local farmers to participate in a cooperative structure.
Collaborating with Farmers in the Nilgiris
To strengthen its foothold in the tea sector, Amul has already started gathering farmers in the Nilgiris region, known for its tea production. Mehta explained that the company is working with the recently established National Co-operative Exports Ltd., a multi-state cooperative aimed at boosting India’s agricultural exports. This collaborative effort seeks to develop a sustainable market for tea, similar to how Amul revolutionized India’s dairy industry.
Product Expansion: Organic and Instant Tea
Amul’s foray into tea is not limited to traditional products. The company has already introduced instant tea to the market and is planning to explore organic tea options. This move aligns with growing consumer demand for organic and natural products. Amul’s entry into the tea segment is expected to focus on both premium organic offerings and mass-market products, expanding its reach to various consumer segments.
Tea-Related Offerings
Amul’s tea venture is an extension of its existing portfolio of tea-affiliated products. The company already offers rusks, cookies, and dairy whiteners — all of which complement tea. By adding tea to its lineup, Amul aims to create a comprehensive breakfast table offering for Indian households.
Conclusion
With its new focus on tea, Amul is poised to disrupt India’s tea market, challenging established brands and offering consumers a range of innovative products. By leveraging its expertise in cooperatives and its extensive distribution network, Amul is well-positioned to become a major player in this space.
