The Hindu Business Line : Amul targets Rs 150-crore export turnover

AFTER becoming the first Indian dairy products company to treble export sales and cross the Rs 100-crore mark last fiscal, the Gujarat Co-operative Milk Marketing Federation (GCMMF) is looking at a further 35 per cent growth.

The federation, which markets the Amul brand of milk and milk products, is targeting export turnover of Rs 150 crore this fiscal since it expects milk product sales to rise in overseas markets such as West Asia, the US, and Sri Lanka this year.

"We are targeting Rs 150 crore export turnover this year on higher anticipated demand from overseas markets for our milk products," the Managing Director of GCMMF, Mr B.M. Vyas, told Business Line.

The reduced subsidies by European Union countries provided growth opportunities to the federation last fiscal for exporting skimmed and whole milk powder, and exports of its consumer packs grew by 40 per cent; growth was also seen in exports of ultra heat treatment milk, ghee, and paneer.

This year, the federation is looking at a further demand boost across many overseas markets.

Meanwhile, with sales of Rs 626 crore, Amul Milk in pouches became the largest contributor to the federation's turnover last fiscal; there are plans to take this product to new markets within the country.

Currently, Amul Milk in pouches is present in several markets including the four metros as well as smaller towns such as Ahmedabad, Indore, Nagpur, Pune, and Nashik.

In the new markets, the federation would be targeting those consumers who buy loose milk, Mr Vyas said.

Besides concentrating on expansion of the pouch milk business, the federation would look at strengthening its vast distribution network.

"We added 900 distributors across small towns last fiscal in a bid to further expand our reach. This year, our endeavour will be to strengthen this network but there are no plans to expand it."

In 2004-05, the federation's sales were Rs 2,922.53 crore.

While topline growth was lower than expected, its consumer pack business performed well during the year to record a 12 per cent growth.

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