Riding back on the humungous growth in its dairy business for the last five years, Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells popular products under Amul brand is aiming at a two-fold increase in its turnover at Rs 30,000 crore in the next seven years, according to a PTI report.
The Gujarat-based firm had registered a 19 percent growth in its turnover during 2011-12 fiscal at Rs 11,668 crore. This fiscal, Amul has targeted to avhieve a turnover of Rs 14,400 crore, noted the report.
'We expect to achieve a turnover of Rs 30,000 crore by 2018-19 as we are growing by over 20 percent in our milk, ice creams and cold beverages segments. Earlier the target was set to be achieved by 2020,' GCMMF Managing Director RS Sodhi told the agency. 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, said the report.
Sodhi expects that sales in milk segment, which presently contribute 40 percent to the total turnover, would increase as consumption level is growing. GCMMF is also enhancing 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 Rs 3,000 crore 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 pointed out.
The Total milk procurement by the company during 2011-12 rose by six percent to an average of 100.30 lakh kg per day from 94.54 lakh kg per day achieved during 2010-11. Formed in 1946, Amul is jointly owned by 3.03 million milk producers in Gujarat, added the report.