IBEF: August 26, 2019
The 'Amul' brand, which is marketed by the Gujarat Co-operative Milk Marketing Federation (GCMMF), is planning to introduce 40-60 new value-added dairy products over the next two years. This is expected to help Amul reach Rs 50,000 crore (US$ 6.95 billion) turnover by year 2021.
According to Mr. Jayen Mehta, Senior General Manager, Planning and Marketing, GCMFF, the plan is to present at least two new products every month over the next two years.
The new products will be introduced regionally first and then across the country. Sweet-meats, having longer shelf-life, are being considered as a segment quite aggressively. The launches that comprises of peda, a sweet-dish which is popular in North India, and nan-khatai, a shortbread biscuit popular in Surat. In last four years, Amul has increased its product range and launched over 100 products which are mainly dairy-based.
According to Mehta, “We have a pipeline of 40-60 new products — two new products a month for the next two years. We are expecting a Rs 50,000-crore (US$ 6.95 billion) turnover by 2021.”
Amul has reported a turnover at Rs 33,150 crore (US$ 4.60 billion) in FY19. In FY20, it is focusing on reaching the target turnover of Rs 40,000 crore (US$ 5.56 billion).
Milk sales accounts for 50 per cent of the brand’s turnover.
Amul buys 230,00,000 litres of milk every day from farmer organizations across India. Approximately, 30,00,000 litres per day is obtained from outside Gujarat. Milk procurement is also estimated to see a jump of 8-12 per cent this year.
Amul expect to increase its shore-up-exports to 20-25 per cent from present Rs 1,000 crore (US$ 0.13 billion) turnover.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.