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Amul sees 18% year-on-year growth

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By Jim Cornall+

11-Apr-2017

Amul anticipates at least 20% CAGR in the next five years.
Amul anticipates at least 20% CAGR in the next five years.

Indian dairy cooperative Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF, Amul), which markets the Amul brand of milk and other dairy products, has registered a provisional turnover of Rs. 27,085 crores ($4.2bn) for the financial year 2016-17 which ended on March 31, 2017.

This is 18% higher than last financial year's sales turnover. Amul said it plans to achieve sales turnover of Rs. 50,000 crores ($7.7bn) by 2020-21.

Amul said it has been achieving a CAGR of more than 20% in the past seven years because of higher milk procurement, market expansion, new product launches and adding new milk processing capacities across India.

In order to reach interior markets, Amul has created 14 new branches in India in the past four years.

New processing plants

In order to meet milk and milk product demand in the major metropolitan centers of India, the member unions have started creating their own milk processing plants in the states of Haryana, Uttar Pradesh, Maharashtra, Madhya Pradesh, West Bengal and Rajasthan.

Shri Jethabhai Patel, chairman, GCMMF, emphasized that rapid expansion has yielded rich dividends for the company.

“Based on estimated growth in market demand for Amul products and our future marketing efforts, we anticipate at least 20% CAGR growth in the business of GCMMF during the next five years,” Patel said.

He added Amul plans to enhance its milk processing capacity from the current level of 30m liters per day to 38m liters per day in the next three years.

Growth in all categories

Shri R S Sodhi, managing director, GCMMF said the company achieved volume sales growth in all product categories.

Pouch milk, which is the highest turnover product, butter, ghee, ice cream, UHT milk, flavored milk, paneer and fresh cream all showed double digit growth.

Amul said it passes on 80-85% of consumer spending back to milk producer members to encourage more milk production.

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