Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets the Amul brand of milk and dairy products is aiming for sales worth Rs 1 lakh crore by 2025 and plans on growing at a compounded annual growth rate (CAGR) of 20 percent over the next seven years.

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For financial year 2023, GCMMF reported overall sales of Rs 55,055 crore, a growth of 18.5 percent from last year, led by demand for its branded consumer products. The provisional, unduplicated group turnover of 18 member unions of the Amul group crossed Rs 72,000 crore, according to a company statement. That figure in financial year 2022 stood at Rs 61,000 crore.

Based on the current figures, GCMMF will have to grow sales by 81.6 percent over the next two years to hit its projected target.

GCMMF aims to scale this target by higher milk procurement, continuous expansion in terms of adding new markets, launch of new products, and adding new milk capacities across India, according to Chairman Shamalbhai Patel.

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Amul's fresh products contributed half of the overall turnover, registering growth of 21 percent from the same period last year. Its range of Ice Cream saw sales grow 41 percent, while consumer products like cheese, butter, UHT Milk, milk beverages, paneer, cream, buttermilk and dahi saw growth of 23 percent.

“We have achieved volume sales growth in all product categories. Pouch milk which is the highest turnover product has shown volume growth in double digit," according to Jayen Mehta, Managing Director in-charge of GCMMF. "Apart from this, our products like butter, ghee, Ice Cream, UHT milk, flavored milk, Paneer, and fresh cream have also shown double digit growth.”

As part of Amul's strategy to transition from a dairy brand to a food and beverage company, GCMMF is investing in new product categories like organic foods, high protein products, probiotic range and fresh sweets. It is also increasing the network of 82 branch and warehouse infrastructure to more than 100, while also increasing the distributors and retail universe.

GCMMF had hiked prices of milk by Rs 2 per litre in Gujarat in markets of Ahmedabad and Saurashtra-Kutch on April 1, translating into an increase of 3-4 percent in MRP.

In an interview with CNBC-TV18, RS Sodhi, former MD of Gujarat Cooperative Milk Marketing Federation (its flagship brand is Amul) and currently the President of the Indian Dairy Association said that he does not foresee any reduction in milk prices until Diwali, which is typically celebrated in October or November. He explained that it is only around this time that we may see price stability in the market.

(Edited by : Hormaz Fatakia)

First Published:Apr 3, 2023 5:58 AM IST