Kotmale introduces powdered milk

by Irangika Range

Kotmale Holdings Ltd. launched its new dairy product "full cream milk powder" under the brand name of "Kotmale" to fulfill the local customers' powdered milk demand while continually promoting its fresh milk products at the market.

Chairman, Kotmale Holdings Ltd, Tryphon R. Mirando said that 80 percent of Sri Lankans consume powdered milk. the market for powdered milk is estimated to be in excess of Rs. 15 billion per annum in Sri Lanka.

The company feels the powdered milk goes well with the rest of the product lines because it is a high demandable segment of the market. They have set up a packaging plant with 25,000 packets output per day. The company is keen on maintaining high quality of its products and it has set up the quality assurance laboratory which helps to ensure superiority of the product.

The Sri Lanka Standards Institution (SLSI) has also recommended this powdered milk.

CEO and Director, Kotmale Holdings Ltd, Ramesh Schaffter said that the Kotmale Holdings is the clear market leader in the non-powdered milk segments comprising both ultra heat-treated milk (UHT) otherwise known as long life milk and pasteurised plain and flavoured milk. It has a 50 percent market share in both these segments. It also has a 80 percent market share for cheese.

Schaffter said that the company is targeting a turnover of Rs.500 million per annum. The major problem of the local dairy products industry is getting less fresh milk from a limited number of local cattle and its quality is also not sufficient to compete with other countries.

These reasons are the cause for lower investments an the industry," he said.

He said that the company saw an opportunity in the powdered milk segment, due to its dominance by multinationals and because of the company's wide presence in the dairy sector.

The company is aware that powdered milk is a product that every household in Sri Lanka has experienced at some point of time and thus the company will be using their Kotmale brand, a household name in the country, to penetrate the powdered milk market in Sri Lanka.