Kerala milk brand Milma has reached an agreement with Lulu International Group for the sale of its dairy products through the vast network of hypermarkets and malls in the Middle East.

The MoU was signed by Asif K. Yusuf Managing director of Kerala Cooperative Milk Marketing Federation (KCMMF) – better known by its brand name Milma – and Lulu Group director Salim MA in the presence of Kerala Industries Minister P Rajeeve, Kerala Principal Secretary (Industries and Norka) Suman Billa, Lulu Group CMD M A Yusuff Ali and KCMMF Chairman K S Mani on the sidelines of the World Food India-2023 at the Pragati Maidan, New Delhi.

Initially, Milma’s five products with long shelf-life – ghee, premium dark chocolates, golden milk mix powder (health drink), instant paneer-butter masala and ‘palada payasam’ mix will be available in Lulu’s hypermarkets.

Asif K Yusuf said the deal is estimated to generate a sale of Rs1,000 crore in the first two years. “We aim to increase the product list to 25 to be sold at Lulu outlets,” he added.

Since its traditional products milk and curd alone could not take the cooperative forward, Milma boosted its sales to cater to the tastes of the modern generation with value-added products such as ghee, butter, cheese and yoghurt. “Our tie-up with Lulu is set to open new avenues for Milma products in the Middle East,” said Mani. “Our pact with Lulu will make Milma an international brand. The ultimate beneficiaries will be the farmers themselves,” he added.

Milma, a cooperative, ensures decent remuneration to the dairy. “We give farmers 83 per cent of the proceeds of the sale” said Mani. “No other cooperative society does it in the country,” he added.

Salim, Lulu director said Milma products are of high quality. “Currently, we are selling only those products that have a decent shelf-life. We are in talks with Milma on finding ways to ensure a better range of their other dairy products,” he said.