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Durga Ghee has a good brand recall in Odisha. But like we know there are also many duplicates around. My understanding is, the particular flavor that Durga uses, is easy to copy by other vendor’s. With a similar flavour, it’s hard to tell the difference between fake and original in matter of Ghee. Probably it’s not a crime if another local company uses a brand name sounding like durga and sell’s same quality ghee. Devi is another popular “duplicate” one, if i remember correctly and has good support from good local film star in endorsements.
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Odisha in particular, never had a very effective milk cooperative like the kind of Gujarat(Amul) or Karnataka(Nandini) had . Not sure of milk cooperative effectiveness in Andhra. Odisha has Omfed, but it was primarily happy to supply to milk and not so enterprising to enter into value added products like ghee, paneer etc. Need to watch if we can expect Durga to have similar success in Karnatka and other markets as it had in Odisha & AP, Nandini (KMF) is a strong brand and has strong products in most value added categor. http://www.kmfnandini.coop/
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Even in Odisha, things are now changing, with a strong private company like Milky Mu entering into fray. They are considered to be good and have provided good challenge to Omfed’s monopoly in milk and are entering into value added products category. Also the ghee market now has options from national brands like Britannia, Amul etc… and ITC is going to be the new one to market soon.
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Last years Virat’s result had a support from new Andhra Govt’s largesse to distribute free ghee packet’s to the tune of 3.7 cr. So we can consider it into our estimates.
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Gross margins have seen a sharp jump in last few qtrs. However, company say’s it’s raw material “milk prices has increased and it was able to smooth it out and increase PAT margins. Any clue on this ?
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