Swiggy Instamart's "Milky Ways: Legen'dairy' Brands of India" initiative is making significant strides in bolstering the dairy sector by leveraging the power of quick commerce. Launched in New Delhi, the initiative highlights Swiggy Instamart's commitment to partnering with India's dairy cooperatives and marks a pivotal moment in the evolution of the dairy industry. This initiative aims to boost market access for these cooperatives and stimulate discussions around the White Revolution 2.0, dairy cooperative growth, and the ever-changing retail landscape.
A key highlight of the "Milky Ways" initiative was the signing of a Memorandum of Understanding (MoU) between Swiggy Instamart and the Ministry of Cooperation. This strategic collaboration is designed to support cooperative brands through enhanced marketing, promotion, consumer technology, and capacity building. The MoU signifies a unified approach towards strengthening the cooperative movement in India by utilizing Swiggy's extensive digital platform and outreach.
According to Shriharsha Majety, Co-Founder and Group CEO of Swiggy, milk and dairy products are among the highest-selling categories on Instamart, with over one-third of orders including a dairy component. This underscores the immense potential for dairy cooperatives to expand their reach and connect with a broader consumer base through quick commerce platforms. Dr. Ashish Bhutani, Secretary of the Ministry of Cooperation, emphasized that the collaboration aligns with the government's mission of "Sahakar Se Samriddhi," noting that quick commerce platforms are opening new avenues for dairy cooperatives.
The quick commerce market in India is rapidly expanding, with a projected CAGR of 24% and an estimated market value of $35 billion by 2030. Dairy products, including milk pouches, curd, paneer, and butter, account for over 30% of daily orders in this space. Established brands like Amul and Mother Dairy, along with regional cooperatives, have already experienced increased consumer access through these platforms. Manish Bandlish, Managing Director of Mother Dairy, noted that quick commerce channels have significantly improved product reach, especially in areas with limited access to traditional shops and markets.
Furthermore, Dr. Meenesh Shah, Chairman and Managing Director of NDDB, indicated that quick commerce accounts for 4–5% of total sales for milk cooperatives, with expectations for further growth as urbanization continues. Platforms like Instamart are instrumental in helping smaller cooperatives reach wider audiences, thereby enhancing farmer livelihoods.
To support this increasing demand, Swiggy Instamart is expanding its network of dark stores with larger fulfillment centers, known as "megapods." These facilities can stock up to 50,000 SKUs, a threefold increase compared to standard dark stores, and include a variety of FMCG, D2C, and regional brands tailored to local preferences. For example, customers in Patna can now order Sudha Milk and Maharaja Bread, while those in Raipur have access to Vachan dairy products and Bake’O’Fun bakery items.
Swiggy Instamart is also creating a dedicated "Cooperative" category on its platform, showcasing organic products, dairy, millets, handicrafts, and other items developed by cooperative organizations. This initiative aims to provide preferred access and greater visibility for cooperative entities, connecting them with new-age consumers through modern technology and expanding their digital footprint.
The "Milky Ways" initiative and the MoU with the Ministry of Cooperation represent a significant step towards modernizing and strengthening India's dairy sector. By embracing quick commerce and digital platforms, dairy cooperatives can enhance their market presence, improve farmer livelihoods, and meet the evolving needs of consumers in a rapidly changing retail landscape.
