Business Today – August 25, 2019

By AJITA SHASHIDHAR

PHOTOGRAPH BY REUBEN SINGH

In April this year, Mehsana Dairy, the fourth biggest

union of India’s largest milk cooperative, Gujarat Cooperative

Milk Marketing Federation (GCMMF, which owns brand

Amul), announced that it would break away from the parent

cooperative to register as a multi-state cooperative and sell its

products under the brand Dudh Sagar. The reason given by

the Mehsana Chairman was lack of adequate patronage from

GCMMF. Mehsana Dairy has been at loggerheads with GC-

MMF ever since its former Chairman Vipul Chaudhary was

removed as GCMMF Chairman after the BJP came to power

at the Centre in 2014. Three months later, the revolt has died

out, and the milk federation’s Chairman, Ramsinh Parmar,

and Managing Director, R.S. Sodhi, dismiss the threat as a

political gimmick.

“Just before elections, Mehsana always announces that it

wants to split and become a multi-state cooperative, but the

hype dies out after elections. The truth is that it can’t survive

without the Amul brand,” says Parmar.

The root cause of the rift has been politics between the

state’s Congress and BJP arms that have been using the milk

unions as their vote banks. “The Mehsana chairman had am-

LOSING

FLAVOUR

Dairy cooperatives

need to shed their

political tone and

focus on business

to stay afloat.

THE HUB CORPORATE

68 IBUSINESS TODAYIAugust 25 I 2019

SIZE OF

INDIAN DAIRY

INDUSTRY:

`5,67,0 00

crore