Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), the company behind the Amul brand, has launched a new product called Tru, a dairy-based fruit drink priced at ₹10 for 150ml. This move is part of the company’s plan to increase its presence in the low-priced beverage market, which has become increasingly competitive in recent years. The company plans to introduce more beverages at this price point.
The ₹10 price point has become popular in India, as it is seen as an affordable option for the country’s large middle and lower-middle-class population. Other companies, such as Reliance Consumer Products Limited, have also launched products at this price point, including Campa, a brand that has disrupted the low-priced beverage market. The ₹10 price point is expected to account for a significant portion of the market, with the global beverages market estimated to reach ₹1.47 trillion by 2030.
GCMMF’s Tru product competes indirectly with other brands such as Dabur’s Real, Varun Beverages’ Tropicana, Britannia’s Winkin Cow, and Parle’s Smoodh. The company plans to expand its distribution network to increase its reach and volume.
However, the ₹10 market is also expected to face challenges, including inflation, which has forced companies to lower quantities to sell at the same price. Additionally, some analysts have cautioned against aggressive pricing tactics, which can hurt incumbents. Despite these challenges, the ₹10 market is expected to continue to grow, driven by increasing demand for affordable beverages.