Verka, a popular dairy retail brands in north India, is a flagship brand of the Punjab State Cooperative Federation of Milk Producers Unions Ltd (MILKFED), and has a wide range of products. The brand is largely available in Punjab, Haryana, Himachal Pradesh and Jammu & Kashmir, with strong footprints in Gujarat & Assam. Recently the brand has entered into New Delhi market to offer the best quality products to the local consumers at competitive price. Retail4Growth caught up with D.P. Reddy, Chairman, MILKFED Verka to understand its expansion plan and more.

What is the biggest challenge for Verka to expand in Delhi market and what would be the strategy to overpower the challenges?

For Delhi, our target is selling 1 lakh litres of milk by the year-end. However, the presence of big Cooperative Dairy players namely Amul, Mother Dairy and other private players namely Paras, Madhusudan, Namaste India & Gopal Jee etc, product acceptance,location, logistic strength pose a big challenge for Verka in  Delhi market . However Verka shall yearn to overcome these potential strengths of its competitors by initially focussing on Punjabi community dominated areas of Delhi to make a direct connect with them. 

Further, this activity shall be coupled with the in shop activity for showcasing Verka product strength amongst the other consumers and all business stakeholders thereby. Trade load incentive schemes, consumer oriented schemes and competitive margins shall be afforded for Verka stakeholders. Timely, indented and proper supply chain management shall be ensured by Verka to have an edge.  

How big is Verka’s distribution network? How many retail touch-points do you have so far?

We have recently launched the concept of Centralized Marketing of Ambient Milk Products, thereby appointing dedicated distributors of Verka ambient and long shelf life products. We have appointed 178 distributors with a total 27,421 identified retail points for delivering Verka milk products near to the customers. The exercise shall facilitate the augmentation of width coverage for Verka products.

What business format Verka has implemented to expand its footprints? 

We have implemented; Liquid Milk Distribution Policy, under which the sales and marketing of liquid milk is being done on scientific basis. The distributors are being appointed on exclusive basis by demarcating the size of the market for increasing the retail penetration. The implementation of the said system with appointment of 270 Exclusive Distributors has attributed to a reach of 30,000 Retailers. Whereas in order to expand its footprints and increasing the brand recall value, we are opening strategic point of sales across all tehsils, subdivisions and district headquarters with the authorities of States for facilitating better remuneration to dairy farmers. Presently, Verka has 356 exclusive Verka outlets spread across Punjab, Haryana, and Himachal Pradesh.