The Hindu Business Line : Amul to add 20,000 ice cream outlets this year

In sharp contrast to its pricing strategy in the rest of Amul products, GCMMF does not foresee any price increase in ice creams. Amul has already effected 4-5 per cent price increase in the rest of the product categories. "We have decided to enhance our retail network by 20,000 outlets this year," Mr R.S. Sodhi, Chief General Manager (Sales) of GCMMF, told Business Line.

According to him, except in the North-Eastern States where logistics issues holding up rolling out of retail network, Amul ice cream is now available almost across the country. Amul has already established itself as the largest player in the product segment and has registered 20 per cent growth during 2005-06.

Ruling out the possibility of price rise in ice cream segment, Mr Sodhi said that the withdrawal of excise duty in the last Budget has brought home a net benefit of 6-7 per cent (in terms of erstwhile net excise duty liability).

Fresh Milk marketing

Amul is also planning expansion of fresh milk marketing network in a number of central, northern and eastern cities in the country during 2006-07. Fresh milk was the single largest contributor in GCMMF's turnover of Rs 3,780 crore during the last fiscal. Among the cities that are attracting Amul's immediate attention for fresh milk marketing are Gwalior, Mathura, Agra and Allahabad.

No South entry now

"We are not planning any entry in southern States during the year," Mr Sodhi said. It may be mentioned that Amul had previously considered milk marketing in Hyderabad and Chennai.

"We are witnessing robust growth in both processing of fresh milk as well as returns to milk farmers for the last two and half years," he said, adding that for the current fiscal the fresh milk procurement target has escalated from 65 lakh litres to 72 lakh litres.

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