Telangana and Andhra Pradesh Governments Lock Horns Over 'Vijaya' Dairy Brand
HYDERABAD: The governments of Telangana and Andhra Pradesh (AP) have once again found themselves in a heated dispute, this time centering on the usage of the Vijaya Dairy brand logo and the sale of its products within Telangana. The Telangana Dairy Development Cooperative Federation Ltd (TGDDCF Ltd) has formally objected to AP government's franchisee companies marketing their dairy products under the 'Vijaya' brand name, arguing that this practice is creating significant confusion among consumers.
Quality Concerns and Legal Action Sought
In addition to the branding issue, TGDDCF Ltd has expressed serious doubts regarding the quality of the products, particularly ghee, being sold by these franchisees. The federation has raised alarms about potential non-compliance with established food safety standards. As a precautionary measure, samples have been sent for rigorous food safety quality checks to ensure consumer protection.
K Chandrasekhar Reddy, the Managing Director of TGDDCFL, took decisive action last week by writing a letter to the Telangana government. In his communication, he sought permission to initiate legal proceedings against the AP government. Furthermore, he urged the state authorities to escalate the matter to the Central government, highlighting the need to resolve lingering bifurcation issues that continue to fuel such territorial conflicts.
Financial Stakes and Market Dominance
The stakes are particularly high for Telangana, as the Hyderabad market currently accounts for approximately 95% of TGDDCF's total revenue. This market serves as the primary financial backbone supporting dairy farmers and cooperative societies across the state. Any disruption or dilution of the 'Vijaya' brand in this region could have severe financial repercussions for these stakeholders.
Territorial and Branding Issues Surface
Officials have confirmed that territorial disputes have now surfaced with the AP government. The AP government had entered into an agreement with a private firm, designated as a franchisee, to market its dairy products under the 'Vijaya' brand name specifically in Telangana, with a focus on Hyderabad. According to Chandrasekhar Reddy's letter, TGDDCFL discovered that APDDCF Ltd appointed M/s Vijaya Milk Products, based in LB Nagar, Hyderabad, which commenced its marketing operations from March 1, 2026, in the twin cities.
The simultaneous marketing of products under an identical brand name within the same territorial market has led to multiple issues:
- Consumer confusion regarding brand origin, control, and accountability.
- Distortion of established distribution networks and trade channels.
- Dilution of brand equity and goodwill that TGDDCF Ltd has developed within Telangana.
- Significant financial impact on TGDDCF Ltd and the dairy farmers it supports.
Labeling and QR Code Discrepancies
Further complicating the matter are discrepancies related to product labeling and QR codes. These issues raise concerns about the clarity of plant location information, compliance with Food Safety and Standards Authority of India (FSSAI) labeling requirements, and overall consumer protection and safety oversight. Specifically, QR codes on the products showed multiple plant locations, including Chandana Milk Products in Chevella and Prananda Pvt Ltd in Krishna district, AP, without clear batch-wise identification of the manufacturing unit.
Sources indicate that this issue has been brought to the attention of competent food safety authorities for a thorough examination of both samples and labels to ensure regulatory adherence.
Previous Attempts at Resolution
This is not the first time such concerns have been raised. Last year, Gutta Amit Reddy, the Chairman of TGDDCF, wrote to APDDCF and the Chief Secretary of Andhra Pradesh, seeking an amicable resolution to the brand usage and marketing issues. However, the AP government did not respond to this letter, leaving the conflict unresolved and paving the way for the current escalation.
The ongoing dispute underscores the complex post-bifurcation challenges between Telangana and Andhra Pradesh, with both states vying for control over shared assets and brand identities in key economic sectors like dairy production.
