Reliance not to bite Mother Dairy's bait
Reliance Fresh has decided to stay away from the price war unleashed by NDDB’s Mother Dairy for seasonal vegetables in Delhi and the national capital region.
By Ratna Bhushan, TNN |
GURGAON: Reliance Fresh has decided to stay away from the price war unleashed by NDDB’s Mother Dairy for seasonal vegetables in Delhi and the national capital region.
As an industry source said, “At a time when Reliance Fresh is de-emphasising fruit and vegetables, the least they would want is a price war. It wouldn’t like to kick up a fresh controversy.”
When contacted, a Reliance spokesperson said, “We have decided not to react to Mother Dairy’s price game,” adding that Reliance Fresh follows a strategy of taking daily stock of fruit and vegetable prices. “We monitor the situation every day at 5pm, and depending on the demand and supply, we decide the pricing strategy,” the Reliance Fresh official said.
He maintained that the company is not impacted by Mother Dairy’s price offensive. Another supermarket retailer, Subhiksha, has, however, brought down prices of some seasonal vegetables to Rs 4 following Mother Dairy price cuts.
However, a repeat backlash from local vegetables vendor and assorted trader associations seems to be hindering Reliance Fresh’s aggressive plans to sell fruit and vegetables.
The company had to down shutters in UP following strong protests from local vendors. The latter accused Reliance of selling below market rates and spoiling their business prospects.
The UP government had to intervene in the issue and Reliance had to shut shops even in urban centres like Noida, Ghaziabad and Kausambi.
"In any case, our prices, on a consistent basis, were 8-10% cheaper than Mother Dairy’s. This is a seasonal gimmick by Mother Dairy,” said the Reliance official.
Mother Dairy, however, feels it’s a sustainable game. Last week a company official told ET that it wants to sell seasonal vegetables at uniform price points and drive consumption. “The idea is to cut our margins and increase volume to give a better price to the consumers and farmers both,” a Mother Dairy offical had said.
As an industry source said, “At a time when Reliance Fresh is de-emphasising fruit and vegetables, the least they would want is a price war. It wouldn’t like to kick up a fresh controversy.”
When contacted, a Reliance spokesperson said, “We have decided not to react to Mother Dairy’s price game,” adding that Reliance Fresh follows a strategy of taking daily stock of fruit and vegetable prices. “We monitor the situation every day at 5pm, and depending on the demand and supply, we decide the pricing strategy,” the Reliance Fresh official said.
He maintained that the company is not impacted by Mother Dairy’s price offensive. Another supermarket retailer, Subhiksha, has, however, brought down prices of some seasonal vegetables to Rs 4 following Mother Dairy price cuts.
However, a repeat backlash from local vegetables vendor and assorted trader associations seems to be hindering Reliance Fresh’s aggressive plans to sell fruit and vegetables.
The company had to down shutters in UP following strong protests from local vendors. The latter accused Reliance of selling below market rates and spoiling their business prospects.
ADVERTISEMENT
The UP government had to intervene in the issue and Reliance had to shut shops even in urban centres like Noida, Ghaziabad and Kausambi.
"In any case, our prices, on a consistent basis, were 8-10% cheaper than Mother Dairy’s. This is a seasonal gimmick by Mother Dairy,” said the Reliance official.
Mother Dairy, however, feels it’s a sustainable game. Last week a company official told ET that it wants to sell seasonal vegetables at uniform price points and drive consumption. “The idea is to cut our margins and increase volume to give a better price to the consumers and farmers both,” a Mother Dairy offical had said.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
