CHENNAI: The state-owned Aavin is set to launch a new milk variant, Green Magic Plus, fortified with vitamins A and D, starting December 18. Initially, the product will be available in the Kancheepuram-Tiruvallur, Salem and Coimbatore cooperative milk producers’ district unions. The 900ml pack of standardised Green Magic Plus milk, with 4.5% fat and 9% SNF, will be priced at Rs 49-Rs 50.
Incidentally, Aavin now sells its standardised milk variant Green Magic — which also has 4.5% fat and 9% SNF at Rs 44 per litre. While Green Magic milk has been discontinued in several districts, it is still being sold in Chennai at subsidised prices for cardholders and a minimum quantity supplied to retail shops. According to Aavin’s Managing Director S Vineeth, this new variant is an additional product aimed at expanding their market beyond Chennai city. “To encourage retailers in villages and small towns to store the milk in freezers, a higher profit margin has been set for them,” he said.
While a section of retailers termed it as an indirect price hike disguised as fortified milk, Vineeth denied the allegations and stressed that the initiative was launched purely to provide milk fortified with additional vitamins for the benefit of consumers.
He also mentioned that Magic Plus is the most affordable milk variant in the country, offering a higher protein content. “To start with, we will launch a minimum of 5,000 litres of milk, equivalent to one truckload. Depending on public demand, we plan to expand sales to other regions. We have no intention of discontinuing any of our other milk variants,” he added.
He added that about 31 lakh litres of milk and milk products amounting to Rs 50 crore are sold across the state every day.
A milk retailer from north Chennai said, “Aavin continues to sell Green Magic milk due to high consumer demand and lower price compared to private brands. To offset losses, Aavin has introduced the same milk under a different name,”
When asked whether Aavin incurs losses from subsidised milk sales, Aavin MD Vineeth acknowledged that there may be losses due to lower pricing but clarified that these are compensated by the government.