The Indian Cheese Industry: Distribution

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One of the biggest problems in the marketing of cheese is the lack of existing infrastructure, especially cold chains from the producer to the consumer. Existing players, especially Amul that also uses such facilities for its other dairy products like milk, already has a fairly well established national network. However, new entrants, including importers need to make extra infrastructural investments. This can be quite daunting for companies that are making a market entry into the dairy and cheese industry, particularly with limited existing knowledge of current distribution issues.

The lack of cold storage facilities cause the biggest problems to regional players who are trying to gain a national presence. They neither have existing infrastructure nor the financial muscle of international companies. To improve logistical issues, some regional players, like Mother Dairy are positioning their plants in different geographical regions.

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