Amul is now $3 bn brand

Co-operative dairy giant Amul is now a three billion dollar brand. The Gujarat Co-operative Milk Marketing Federation (GCMMF) that markets brand Amul has reported a sales turnover of Rs 9,780 crore for the fiscal year 2010-11, a growth of 22 per cent over previous year when it had registered Rs 8,002 crore annual turnover. Putting together direct sales done by all the 13 district dairy unions of Gujarat, which are member unions of GCMMF, sales turnover of brand Amul has touched the Rs 13,500 crore mark - US $ 3 billion.

"We have now set the target of crossing sales turnover mark of Rs 12,000 crore for the current fiscal year, which is in tune with our target of achieving sales turnover of Rs 30,000 crore by 2020," managing director of GCMMF R S Sodhi told TOI on Saturday. Amul had achieved the distinction of becoming country's first billion dollar co-operative brand just four years ago in 2007.

At the same time, sales of Amulspray, which is India's largest selling infant food, has crossed Rs 1,000 crore mark turning the infant food into a Rs 1,000 crore brand.

"In all major product categories, we have received double digit volume growth. In spite of increase in prices, there is tremendous growth in sales of Amul milk, butter, Amulspray, Amulya, cheese and paneer," says Sodhi.

Sale of Amul milk has brought in revenues to the tune of Rs 4,300 crore during 2010-11 up from Rs 3,000 crore during 2009-10 and Rs 2,200 crore in 2008-09. Sale of Amul brand milk is around 70 lakh litres per day at present even as the provisional procurement of milk is three per cent up in Gujarat as all dairies put together are procuring 96 lakh kilogram milk per day against 93 lakh kilogram milk per day, which they were collecting, last year.

The average procurement price paid to farmers including yearly bonus was Rs 337 per kilo fat in 2009-10 which this year will be Rs 425 per kilo fat after counting bonus above Rs 400 per kilo fat presently being paid to the farmers by the dairy unions.

"Farmers have been able to earn Rs 1,700 crore more this year because of increase in price of milk," says Sodhi. "Milk is the only agriculture commodity where in spite of increase in production, farmers have got good returns." For this financial year, GCMMF is aiming to expand its reach to 3,000 smaller towns and cities, especially for its chilled products by hiring 200 super stockists.