Asia's largest dairy Gujarat Cooperative Milk Marketing Federation Limited (GCMMF), which markets the Amul brand, is planning to achieve a turnover of Rs 30,000 crore (Rs 300 billion) by 2018, two years ahead of its target date "considering the consistent growth that it has been recording over the last five years."
"We ended 2011-12 with a turnover of Rs 11,670 crore (Rs 116.7 billion), recording a growth of 20 per cent for the fifth consecutive year. The way we are growing, I think, we will achieve our target two years before 2020," RS Sodhi, managing director of GCMMF), told reporters here on Wednesday.
To take the Amul label to the next level of growth, Sodhi said, the federation was going all out to make dairy farming a contemporary and trendy business by encouraging youth to take up farming, besides increasing payments to them.
"Over the last three years, payments to farmers have increased at least 50 per cent. Also, Amul has started procuring milk from outside Gujarat -- from Rajasthan, Haryana, Punjab, Uttar Pradesh, West Bengal, Bihar and Maharashtra -- to broaden the reach of its brand," he said.
Demand for milk and milk-based products is growing by the day on account of the increasing per capita income and consumption, which at present is at 280 millilitre per day in India. Milk production in the country is expected to touch 130 million tonne this year as against 90
GCMMF is charting an expansion plan involving an outlay of Rs 3,000 crore (Rs 30 billion), which would see the number of its milk processing units increase to 49 from the present 40, and the capacity touching 18 million litre, from the present 14.5 million litre per day in the next four years.
Announcing the launch of Amul Pro, a new whey protein brown beverage in Hyderabad today, taking its product portfolio to 41, Sodhi said the product had a price advantage over competitor brands.
The milk food drinks market in India, currently pegged at Rs 3,000 crore or 80,000 tonne a year in volume terms, is dominated by global brands Horlicks and Complain (white beverage), and Bournvita and Boost (brown beverage). While Horlicks is the market leader, enjoying a 50 per cent share, Bournvita is currently the largest brown beverage brand with a 19 per cent share.
"Amul loves fighting MNCs. Amul Pro is the most value for money offering in the category and is priced at Rs 150 per 500 gram jar, as against Rs 175 (Bournvita) and Rs 165 (Horlicks)," he said, adding that the federation was aiming at a 10 per cent of the pie of the segment in the next two years.
Replying to a query on Cafe Amul, the federation's quick service restaurant business, Sodhi said they were running six cafes in Gujarat and West Bengal. "We are still in the learning stage," he said while declining to comment further.
