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Mahanand breaks new ground with ATM, Fresh Cafe
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Saturday, 29 October, 2005, 08 : 00 AM [IST]
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Bosky Christopher
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Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit, better known as Mahanand Dairy, has come up with the first-ever Any Time Milk outlet at Gokuldham complex in Goregaon, a northern suburb of Mumbai. Two weeks after its introduction, it is too early to predict the popularity of such an outlet. Usually associated only with milk, the local milk co-operative plans to carry out a makeover of the Mahanand brand with the launch of its very own 'Fresh Cafe' coffee shop and eatery on New Year on the periphery of its dairy at Goregaon. The outlet is located in a fast-developing area bordering the Western Express Highway. R A Rajeev, Managing Director, Mahanand Dairy, shared his views on its very own Any Time Milk outlet and spelt out his plans for the makeover of the Mahanand brand, in an exclusive interview with Bosky Christopher of Food & Beverage News.
The Any Time Milk outlet sounds like an innovative concept. What has been the response since its inception?
The bulk vending system for milk is not a new one. It is already there in places like Delhi and Kolkata. So the concept of Any Time Milk is known. When we were thinking of alternatives to pouch packing of milk and reaching out to the consumers directly by eliminating the middlemen so that the problem of adulteration is also taken care of, we thought that the bulk vending system should be a good alternative. But when we studied the consumer behaviour in Delhi and Mumbai, we came up with a lot of differences. We were a little apprehensive of the fact that Mumbai consumers may not like to visit a milk booth for collecting milk. If we have the same system of inflexible timings for Mother Dairy bulk vending system as it happens in Delhi with two hours in the morning and two hours in the evening, Mumbai consumers may not like it. We decided that in order to be more consumer friendly we should adapt to the consumer behaviour of Mumbai where people coming from home and going back home is not a uniform pattern. Some of them leave very early in the morning and return home early. Some reach home very late. So we thought of making any time milk centre where, whenever you have time you can come and collect your milk. That may give the flexibility and consumer acceptability also to our bulk vending system. So we termed it as Mahanand ATM. Introduced on October 10, it is now picking up and has now reached a sale of 150 litres a day, which initially was around 80 litres. Gradually, the acceptability is increasing.
How does the system work?
Through this system, processed milk is transported and stored at chilled temperature at the outlet. The automated machine will deliver specific and accurate quantity of milk based on computerised programme.
Instances of milk adulteration have been plaguing supplies in the city of late. What initiatives are taken to rule out this possibility?
There will be no middlemen between the Mahanand Dairy and the consumers. The milk tanker would pour milk straight into the outlet, making any intervention impossible.
Are there any plans to open more such outlets?
The milk federation has already got offers for opening such outlets at Kurla, Dahisar, Mira Road and Bhayander. But we are studying the possibilities, as it also needs some investment. We want to select areas in the same direction so that our milk tankers do not have to make diversions.
While studying the consumer behaviour, we are also planning to introduce one or two near the slums shortly so that we can see the response better.
The price of milk has been kept at Rs 14 per litre, which is low in comparison with the normal cost of milk in Mumbai. So, is it not a loss making proposition?
It's not. The market price is Rs 15. We have reduced it to Rs 14. Through this system, we are cutting the cost of cold storage and there are no plastic pouches involved too as consumers have to come with their containers. So the cost reduced there has been rightly managed at the outlet. We will recover our costs.
What is the capacity of the outlet? Can the outlet be refilled promptly whenever required?
Though the outlet capacity is 1,000 litres, it is estimated that initially the consumption will be 500 litres, which will go up later. With the outlet being close to Mahanand's plant, the outlet can be refilled promptly whenever required.
It is a pilot project started on experimental basis. So, we are still watching consumer behaviour. Besides, we are selling a lot of milk products from that booth.
The experimental booth has been established at an investment of Rs 7 lakh. It provides milk from 5 am to 11 pm. If there is a demand we will extend the night timings. We are also getting feedback from consumers. For instance, providing containers for people going back home from railway stations or bus so that they need not bring their vessels to fetch milk. So, we are planning to stock containers which they can buy and use.
Usually associated only with milk, are you contemplating a makeover of the Mahanand brand?
We have firmed up our plans to inaugurate Fresh Cafe on the New Year. It will be a complete eatery centre, with a range of milk products, coffee, tea, pizzas, sandwiches, and will include an entertainment zone for children. The Fresh Cafe outlet will tap a growing retail market for eateries and cafes, besides serving as a platform to market a range of Mahanand products.
With a seating capacity of 60, the place would have waterfalls, fountains, and a children's play station. It would also have Any Time Money outlet. The children's entertainment area would include a computer with an animated package, which would transport the children into Mahanand's "World of milk".
The location is very strategic because it is right on the Western Express Highway. It adds to the overall beauty and environment of the dairy. It will also be a centre of attraction for people passing through the highway.
Mahanand has also plans to launch its very own brand of ice-cream in the future along with a Fresh Cafe range of flavoured milk and milk products.
What will set your very own coffee shop and eatery apart from the rest?
I hope that it stands out on its own. The concept is completely different here. The trend now is away from Pepsi and Coke. The trend is towards healthier products. Fresh Cafe will only have milk products. It will also set us apart from general restaurants. Anybody who is diabetic and people with cholesterol problem can also come here and have food. The emphasis will be more on the quality and health. The mainstay of this will be a milk bar where you can make milk shakes of your own choice. The idea is to enjoy eating while at the same time healthy entertainment for kids in good environment. It will be value for money and one can spend quality time.
Are there any plans to brand Fresh Café and sell it as a franchise?
The fully run and operated Fresh Cafe will seek franchises for private businesses to open other Fresh Cafes in the city, with each having the same features across the board.
Fresh Café is a concept where it is a fast food restaurant. The USP of which is 'Swadful Sehatful' - tasty and healthy. Everything will be made in-house. We have also developed special bread for the pizzas and Fresh Café is developed on the lines of McDonald's, Pizza Hut where it will be a bran
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