Milma ties up with Lulu Group, to sell products in Middle East
Trivandrum / November 3, 2023
Thiruvananthapuram, Nov 3: Kerala Cooperative Milk Marketing Federation (KCMMF), known by its brand name Milma, signed an agreement with Lulu Group today for the sale of its dairy products through the retail major’s vast network of hypermarkets and malls in the Middle East.
The MoU was signed by KCMMF Managing Director Mr Asif K. Yusuf and Lulu Group Director Mr Salim M.A. in the presence of Kerala Industries Minister Mr P.Rajeeve, Kerala Principal Secretary (Industries and Norka) Shri Suman Billa, Lulu Group Chairman and Managing Director Mr M.A. Yusuff Ali and KCMMF Chairman Mr K.S. Mani on the sidelines of the World Food India-2023 at the Pragati Maidan in New Delhi.
Initially, Milma's five products with long shelf-life will be available in Lulu's hypermarkets. They are ghee, premium dark chocolates, golden milk mix powder (health drink), instant paneer-butter masala and palada payasam mix.
Mr Mani said Milma, on realising that its traditional products (milk and curd) alone cannot take the cooperative forward, has been boosting its sales on value-added products such as ghee, butter, cheese and yoghurt to cater to the tastes of the modern generation. “Our tie-up with Lulu is set to open new avenues for Milma products in the Middle East,” he pointed out.
While according priority to consumer satisfaction, Milma also ensures decent remuneration to the dairy farmers in the cooperative, Mr Mani said. “We give the farmers 83 per cent of the proceeds of the sale. No other cooperative society does it in the country,” he added. “Our pact with Lulu will make Milma an international brand. The ultimate beneficiaries of it will be the farmers themselves.”
KCMMF MD Mr Asif K. Yusuf said the pact with Lulu is estimated to generate a sale of Rs 1,000 crore in the first two years. “We aim to increase the product list to 25 to be sold at Lulu outlets,” he added.
Lulu CMD Mr Yusuff Ali termed the industrial climate in Kerala as healthy, hailing the government’s efforts towards improving Ease of Doing Business that permits start of business within 48 hours of application. “Our MoU with Milma will better the prospects of the dairy farmers of the state,” he added.
Lulu Director Mr Salim M Asaid the company had found that the Milma products were of high quality. “Currently, we are selling only those products which have a decent shelf-life. We are in talks with Milma on finding ways to ensure a better range of their other dairy products,” he revealed.
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