June 20, 2012
India's Gujarat Cooperative Milk targets a turnover surge in 2019
India's Gujarat Cooperative Milk Marketing Federation (GCMMF) that sells products under 'Amul' brand, bolstered by booming growth in its dairy business in the last five years, is eyeing over two-fold jump in turnover at INR30,000 crore (US$5.4 billion) in the next seven years.
GCMMF had posted a 19% growth in its turnover during 2011-12 fiscal at INR11,668 crore (US$2.1 billion). This fiscal, it is aiming INR14,400 crore (US$2.6 billion) turnover.
"We expect to achieve a turnover of INR30,000 crore (US$5.4 billion) by 2018-19 as we are growing by over 20% in our milk, ice creams and cold beverages segments. Earlier the target was set to be achieved by 2020," GCMMF Managing Director R S Sodhi told PTI.
GCMMF has 6,315 Amul outlets, out of which 965 were added during last fiscal. It aims to open 1,000 more outlets across the country in the current fiscal.
Currently, Amul's main competition in segments like dairy whitener, baby food and condensed milk comes from Swiss major Nestle, while in frozen food category it plays against regional players such like Vadilal and Kwality.
On the core milk segment, Mother Dairy is its main competitor.
Sodhi expects that sales in milk segment, which presently contribute 40% to the total turnover, would increase as consumption level is growing.
GCMMF is also ramping up its capacity to tap the growing dairy market in the country.
"We are on an expansion mode. We are setting up nine new plants in the next four years at a cost of INR3,000 crore (US$536 million) and expanding the capacity of existing plants to enhance our milk handling capacity from the existing 145 lakh litres per day to 180 lakh litres," Sodhi said.
The Total milk procurement by the company during 2011-12 rose by 6% to an average of 100.30 lakh kilogrammes per day from 94.54 lakh kilogrammes per day achieved during 2010-11.
Formed in 1946, Amul is jointly owned by 3.03 million milk producers in Gujarat.
