With the launch of Sunfeast Wonderz Milk, ITC has taken that big step in the intensively competitive organised Indian dairy industry. Valued at Rs.1,000 billion, with liquid milk accounting for around 65% of that, the company’s decision to launch a ready-to-drink milk based beverages is not entirely surprising. After all, this segment is less than Rs.30 billion and has doubled in three years, indicating some serious growth potential.
Since the time its Aashirvaad Svasti ghee hit the market in late 2015, ITC has been fairly dormant in dairy. It was only this October when it announced the launch of pouched milk and dahi, again under the Aashirvaad brand name, that some momentum has picked up. The decision to launch milk beverages under the Sunfeast umbrella, marks a clear intent to break its own dairy business into two – one that is commoditised, which is what Aashirvaad will be and Sunfeast presenting an opportunity to create a branded business with a differentiation. Acco