April 4, 2011
Amul is worth US$2.2 billion
Dairy giant, Amul, is officially a US$2.2 billion organisation.
The Gujarat Cooperative Milk Marketing Federation Limited (GCMMF) that markets Amul brand of dairy products reported a sales turnover of INR97.8 billion (US$2.2 billion) for the fiscal 2009-10.
Expanding market and upward price revision helped the cooperative dairy giant achieve the feat. It has now set the target of crossing the envious sales turnover mark of INR120 billion (US$2.7 billion) for the current fiscal year. Amul achieved the distinction of becoming a billion-dollar brand four years ago in 2007.
Growing market for dairy products and inflation enabled GCMMF to grow at 22% during 2010-11 over the financial year 2009-10 that witnessed sales turnover of INR80 billion (US$1.78 billion).
The group turnover of Amul, consisting of 13 district unions, is estimated to have reached close to INR135 billion (US$3 billion). GCMMF member unions look after the sales of liquid milk, other dairy products and cattle feed in their respective districts.
The leading district unions, which contribute approximately 50% of GCMMF turnover, are Mehsana, Banaskantha, Sabar Kantha and Kaira. GCMMF managing director, RS Sodhi, said, "Sale of Amul milk brought in revenues to the tune of INR43 billion (US$967 million) this year, up from INR30 billion (US$674.8 million) in 2009-10. Sales of butter, cheese and curd saw a double digit growth in volume during the year. However, export market remained stagnant for Amul brand of products due to limited milk production and ban on export."
He added that the Amulspray baby food had become India's largest selling baby food with a turnover of INR10 billion (US$224.9 million).
GCMMF's plan to add 2,000 more outlets during the current fiscal year take the total number of exclusive parlours in parts of the country to 8,000. In order to expand the network and make chilled products available, the cooperative will be hiring 200 super distributors this year.
During 2010-11, Amul brand sold seven million litres of packaged milk everyday. GCMMF is selling 1.7 million litres of Amul pouched milk in Delhi alone out of the total 3.5 million litres milk sold outside Gujarat. Milk procurement by the co-operative giant in 2010-11 was 9.3 million kg/day which has now touched 9.6 million kg/day.
In addition, 600,000-700,000 kilogrammes per day milk and milk solid are being procured from other co-operatives in the country to take care of additional demand of the consumers. The average milk price paid to farmer has also increased from INR337/kg (US$7.58) fat last year to average prices of INR425/kg (US$9.56) fat. "Gujarat farmer has got INR17 billion (US$382.4 million) extra income this year,"added Sodhi.