Turnover grew by 18.46% YoY – faster than its 12-year CAGR of 16%
Dairy major and Amul marketer, Gujarat Cooperative Milk Marketing Federation (GCMMF), on Tuesday reported group turnover of ₹61,000 crore for the fiscal 2021-22. The dairy federation held its 48th Annual General Body Meeting on Tuesday. GCMMF is a federation of 18 members district dairy unions of Gujarat.
Amul milk cooperative movement is celebrating its 75th anniversary. The dairy major is currently ranked as the eighth largest dairy organization in the world. Amul, added another ₹8,000 crore to its group turnover in 2021-22, growing at 18.46 per cent —faster than its 12-year compounded average growth rate of 16 per cent, a statement said.
The turnover got a boost after rapid post-pandemic recovery in out-of-home consumption and demand from restaurants, catering, travel and hospitality segment.
Shamalbhai Patel, Chairman, GCMMF, informed, “Over the last 12 years, our milk procurement has increased by a phenomenal 190 per cent. This impressive growth was a result of the high milk procurement price – which has increased by 143 per cent 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.
Investment
Amul said it is making an investment of approximately Rs 800 crore to Rs 1,000 crore towards capacity addition.
The dairy major is expanding fresh products (milk, curd and buttermilk) capacities.” A new dairy plant, with an investment of ₹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,” Patel added.
Amul is also said to be working on a technology which can store perishable Indian milk-based sweets and desserts for up to 45 days and beyond.
R S Sodhi, Managing Director of GCMMF, informed, “Our milk-based beverages business grew by 36 per cent 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 per cent value growth in 2022. Our flagship brand Amul Butter grew by 17 per cent, while our ghee business grew by more than 19 per cent, both in value terms.” Amul achieved 17 per cent value growth in Amul long-life milk, 44 per cent value growth in Amul Cream, 24 per cent value growth in Amul Dahi, 18 per cent value growth in fresh buttermilk and impressive 12 per cent value growth in largest product category, Amul fresh milk. Amul has also launched the organic initiative to encourage farmers to adopt organic farming and natural farming. Special testing labs will be set up by Amul across India to enable all farmers involved in organic and natural farming to test their farm produce at reliable and affordable rates.
Source : The Hindu Business line 19th July 2022 by Rutam Vora