- The cooperative’s turnover rises 18.46 pc to Rs 8,000 crore in 2021-22: Shamalbhai Patel, Chairman, GCMMF
- A new dairy plant, with an investment of Rs 500 crore, will come up in Rajkot
- Our milk-based beverages business grew by 36% in value terms, despite the peak summer season of 2021 being impacted by the second wave of Covid: RS Sodhi, MD
NE BUSINESS BUREAU
ANAND, JULY 19
Further consolidating its position as the largest food and FMCG brand in India in its 75th anniversary, Amul group, the 8th largest dairy organization in the world, achieved a turnover of Rs 61,000 crores. Post-pandemic recovery, Amul added another Rs 8,000 crores to its group turnover in 2021-22, growing even faster than its 12 year compounded average growth rate.
After the 48th Annual General Body Meeting of GCMMF (the organization that owns and markets products under brand Amul), held on Tuesday, Shamalbhai Patel, Chairman, GCMMF, informed that the cooperative achieved 18.46% growth in turnover in 2021-22, which was even higher than 16% CAGR in turnover over the last 12 years.
The Chairman also emphasized that emphasized the fact that “Over the last 12 years, our milk procurement has increased by a phenomenal 190%. This impressive growth was a result of the high milk procurement price – which has increased by 143% during this 12 year period – paid to our farmer-members”.
“The highly remunerative price helped us retain farmers’ interest in milk production; and better returns from dairying have motivated them to enhance their investments in this sector”, the Chairman added.
The Chairman further emphasized, “Our expansion plans are based on our milk procurement projections. Generally, every year there is capacity expansion through an investment of approximately Rs 800 crore to Rs 1,000 crore. We are also expanding in fresh products (milk, curd and buttermilk). A new dairy plant, with an investment of Rs 500 crore, will come up in Rajkot. Within two years, large dairy plants will also come up in Baghpat, near Delhi, Varanasi, Rohtak and Kolkata”.
Vice-Chairman of GCMMF Valamji Humbal, said, “Amul has been leveraging new-age technology to scale the supply chain across its key business verticals and replace manual interventions with digital apps. Undoubtedly, we have been at the forefront of the digitisation of milk plants and processes. Rural India has a lot of potential for use of emerging technologies compared to urban India.”. The Vice-Chairman added “In the milk value chain, we have recently introduced several new technologies, which are giving good results. We recently built Asia’s biggest milk powder plant. We are also working on a technology which can store perishable Indian milk-based sweets and desserts for up to 45 days & beyond”.
RS Sodhi, Managing Director of GCMMF, informed, “Our dedicated team functioned as Covid warriors and kept the supply chain intact even in the most challenging of times. As we move beyond the pandemic, consumers are rewarding us by displaying higher preference for brand Amul. As out-of-home consumption returns to normalcy, restaurants are witnessing higher footfalls, travel and tourism has resumed and so have functions and gatherings. The combined impact of all these factors is resulting in high growth across most product categories.”
“Our milk-based beverages business grew by 36% in value terms, despite the peak summer season of 2021 being impacted by the second wave of Covid. Our ice-cream business also saw a sharp revival with a more than 50% value growth in 2022. Our flagship brand Amul Butter grew by 17%, while our Ghee business grew by more than 19%, both in value terms. We achieved 17% value growth in Amul long life milk, 44% value growth in Amul Cream, 24% value growth in Amul Dahi, 18% value growth in fresh Buttermilk and impressive 12% value growth in our largest product category, Amul fresh milk. New product innovation is deeply ingrained within our DNA. We launched several new and exciting products such as High Protein Lassi, High Protein Buttermilk, Speciality Cheeses, Amul Peanut Spread, a wide range of fresh ethnic Indian milk-based mithai and Amul Butter-based bread, cookies and bakery products in multiple markets,” Sodhi added..
