Under the name of TATA NQ, it has started selling Skimmed Milk Powder (SMP) in a pack of 25 Kgs to Institutional Customers. SMP is processed at Real Dairy Industries Ltd, Baramati, Maharashtra which is known for its high-quality standards of milk and food safety.
The entry of TATA NQ will change the dynamics of the SMP market
What does this entry mean?
- SMP is mainly used for reconstitution in Dairies and also in Confectionery, Bakery and other areas. Therefore, it is widely used by institutional players.
- The major SMP suppliers in India are big cooperatives (AMUL, KMF, RCDF, COMFED, etc.) and Private players as India is a net exporter of Milk Powders (HS Code: 0402). These players especially in and around Maharashtra will face the competition from the TATA NQ as its target to the institutional market.
- Currently the Powder stock with cooperative and private has crossed 2 Lakh tonnes mark, this new entry in the segment will increase the heat in already stressed SMP Market.
- As TATA is known for its quality products, it is required for cooperatives and private players to match the quality standards and positioned their products accordingly.
- With this entry, it increases the market share of organized players in the segment and will have limited bargaining power to small players.
As per the latest data available, the price of TATA NQ SMP is around Rs 200 per Kg which is at par with current market rate.
