Milma inks pact with HPCL to set up fuel outlets on its land in Alappuzha district
MoU to augment revenue; give greater visibility to Milma products
Trivandrum / October 9, 2023
Thiruvananthapuram, Oct.09: Kerala Co-operative Milk Marketing Federation (KCMMF), known by the brand Milma, today signed an agreement with Hindustan Petroleum Corporation Limited (HPCL) to facilitate the public sector oil major to set up two retail fuel outlets on plots of KCMMF at Pattanakkad and Punnapra in Alappuzha district, which will be operated by Milma.
These fuel stations will also have Milma parlour-cum-restaurant, as part of its market expansion and revenue increasing initiatives. The agreement will enhance Milma’s revenue from its landed assets, as part of the rebranding exercise it had successfully launched.
An MoU in this regard was inked by KCMMF Managing Director Shri Asif K Yusuf and HPCL Cochin Retail Regional Office Senior Regional Manager Shri Arun K at the Milma Head Office at Pattom here, in the presence of Milma Chairman Shri K S Mani and HPCL General Manager (in charge of southwest zone retail) Shri M Sandeep Reddy.
Ernakulam Regional Cooperative Milk Producers Union (ERCMPU) Chairman Shri M T Jayan, and Thiruvananthapuram Regional Cooperative Milk Producers Union (TRCMPU) Administrative Committee Convener Shri N Bhasurangan were also present.
The MoU will facilitate HPCL to set up the retail fuel outlets with Electric Vehicle (EV) charging stations, a Milma restaurant and parlour and an amenity centre on its land along the National Highway adjacent to the Cattle Feed Plant (CFP) Pattanakkad, and Central Products Dairy (CPD) at Punnapra near Alappuzha.
As per the pact, HPCL will spend Rs 3.5 crore each for setting up the proposed outlets. The agreement will run for 20 years. Also, HPCL will obtain the licenses and mandatory approvals for setting up the facilities, besides the training of Milma’s employees to run the outlets.
Terming the tieup is “a milestone” in the history of the co-operative dairy major, Shri K S Mani said through such innovative programmes and by introducing new products, Milma aims at increasing its revenue and profit to achieve the targeted turnover of Rs 10,000 crore in the near future.
“For the long-distance travellers passing via this busy highway, the upcoming fuel stations with Milma’s eatery will be a convenient spot to refuel and relax. Similar initiatives will further help Milma’s market expansion and diversification plans, thus further strengthening its ambitious Repositioning Milma 2023 project”, Shri Mani said.
Mr M Sandeep Reddy noted this HPCL-Milma tie up is a momentous event as it is the first tie up with a cooperative federation in the state. And HPCL looks forward to open more such retail outlets in the state by joining with Milma.
This partnership will enable Milma to provide fuel for its vehicles at a lesser running cost. This initiative will also help Milma in meeting its fuel requirements and saving on the fuel expenses of its vehicles. Through this tie-up, Milma will be able to enhance its income, reduce its running costs besides ensuring greater visibility of and easy access to its products, Shri Mani said.
As part of its rebranding exercise Milma will be launching a bouquet of new products soon. Though Milma has the highest brand acceptability in the dairy sector, it needs to work towards improving its supply chain management. Also, it is making constant efforts to improve the quality of its packaging and design to tap the global market demands, he said.
Also, discussions are on to explore the possibility of opening Milma Shoppees in retail fuel outlets of similar entities in other parts of the state, he added.
Shri Asif K Yusuf welcomed the gathering while Mr Arun K proposed a vote of thanks. ERCMPU MD Shri Wilson J Puravakkatt and Malabar Regional Cooperative Milk Producers Union (MRCMPU) MD Dr Muraly P were also present.
