Reliance plans to enter into dairy business, but why?

Reliance Industries is quietly entered the milk distribution and retail market by pursuing an aggressive pricing strategy. The company will be competing with cooperative giants like AMUL, and Mother Dairy. The investments are projected to touch Rs.5000 Cr by 2010. The company’s stated objective is to improve the quality of milk better testing, collection and procurement infrastructure. The daily production of milk is 2.6 Cr liters. And, one-third of the milk entering into the market (1.5 Cr liters) is managed by the organized retail chain such as Amul.

The opinion of some of the Reliance milk consumers is not satisfactory. The quality of the milk is not up to the mark. Another most important point is: why big business house like Reliance should enter into sectors which are predominantly managed well by the cooperative sector? Already, the company started fresh fruits, grains and vegetable business and hurt a lot of small traders. At this rate, the cooperative sector is facing extinction slowly but surely. There are many hi-tech fields in engineering, nuclear and bio-tech where there is a need of big players such as reliance. Ambanis are listening?