Dairy giant Amul is now a $ 2.2-billion company

Wednesday, 6 April 2011 00:01 - - {{hitsCtrl.values.hits}}

Ahmedabad: Dairy giant Amul has become a $2.2-billion company. The Gujarat Cooperative Milk Marketing Federation Limited (GCMMF) that markets Amul brand of dairy products reported a sales turnover of Rs. 9,780 crore 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 Rs. 12,000 crore 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 Rs. 8,002 crore. The group turnover of Amul, consisting of 13 district unions, is estimated to have reached close to Rs. 13,500 crore. GCMMF member unions look after sale 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 Rs. 4,300 crore this year, up from Rs. 3,000 crore in 2009-10. Sale 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 Rs. 1,000 crore. 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. Further to expand the network and make chilled products available, the coopertaive will be hiring 200 super distributors this year.

During 2010-11, Amul brand sold 70-lakh litre of packaged milk every day. GCMMF is selling 17-lakh litre of Amul pouched milk in Delhi alone out of the total 35 lakh litre milk sold outside Gujarat. Milk procurement by the co-operative giant in 2010-11 was 93 lakh kg per day which has now touched 96 lakh kg milk per day. In addition, six to seven lakhs kg per day milk and milk solid is 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 Rs. 337 per kg fat last year to average prices of Rs. 425 per kg fat.