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The Gujarat Cooperative Milk Marketing Federation (GCMMF) is targeting a turnover of Rs 50,000 crore by 2020 by aggressively marketing its products under the iconic Amul brand, with the tagline, ‘The Taste of India’.
In 2014-15 Amul is expected to achieve a turnover of Rs 21,000 crore.
Amul has planned rapid expansion across its entire value chain. With increased milk procurement, Amul’s processing capacities across all member unions has also been enhanced from 170 lakh litres per day to 232 lakh litres daily in the last three years.
GCMMF Managing Director Rupinder Singh Sodhi said Amul’s new dairy projects in Amreli, Surendranagar, Bharuch, Bhavnagar, and Kutch will help further enhance capacities. Also, Amul has new dairy projects in the pipeline at Faridabad, Rohtak, Kolkata and Lucknow.
“With the completion of these projects, Amul’s combined processing capacity will increase by another 90 lakh litres daily to 322 lakh litres.”
In addition, Amul is adding more people to its distribution team. New milk depots are being set up and distribution capacity being increased by 30 per cent. “We are launching a new product almost every month.”
Currently, Amul products are available at more than a million retail outlets through its network of over 10,000 distributors. It has 60 depots with dry, cold, and frozen warehouses to buffer inventory of the entire range of products. It also has the largest cold chain network with 18,000 refrigerators as compared to any other company in India.
In this business of “cow to consumer”, Amul has so far connected 35 lakh milk-producing farmers in Gujarat through 12,000 villager cooperative societies, who transport milk to processing and manufacturing units. Amul has a unique business model. Within 12 hours of milk procurement, the farmer gets payment, he said.
The products are then transported to the company depots across India, then sent to wholesale distributors and to retailers. Milk is transported in more than 2,000 milk tankers to 71 dairy plants where milk is converted into various by products.
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