The single digit growth in Amul turnover is attributed to the 60 per cent decline in commodity sales because of depressed global and local market conditions. In Picture: Amul Mascot statue in the company’s factory in Anand, Gujarat.
Unduplicated turnover of the member dairies cross ₹40,000 crore in FY18
The Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), which markets Amul brand of dairy and food products on Monday reported provisional turnover of ₹29,220 crore for the fiscal 2017-18, which is 8 per cent higher than ₹27,043 crore reported last year.
According to a statement released by the federation, the provisional unduplicated group turnover of Amul brand, which includes 18 member dairies of the federation, has crossed ₹41,000 crore, 10 per cent higher than last year. The branded consumer products have registered a growth of 14 per cent over previous year with products such as Cheese, Butter, Milk Beverages, Paneer, Cream, Buttermilk and Dahi having grown at 20-40 per cent. The single digit growth in Amul turnover is attributed to the decline in commodity sales by about 60 per cent as a result of depressed global and local market conditions.
Amul Federation has been achieving a Compound Annual Growth Rate (CAGR) of more than 18 per cent since last 8 years because of higher milk procurement, continuous expansion in terms of adding new markets, launching of new products and adding new milk processing capacities across India. “Based on estimated growth in market demand for Amul products and our future marketing efforts, we anticipate at least 20 per cent CAGR growth in the business of Amul Federation during the next five years,” Ramsinh Parmar, Chairman of GCMMF said, adding that Amul plans to enhance its milk processing capacity from the current level of 320 lakh litres per day to 380-400 lakh litres per day in the next two years.
Impact of GST
Commenting on the impact of the Goods and Services Tax (GST), RS Sodhi, Managing Director, GCMMF, said: “There is positive impact of Goods and Service Tax on our business and we are committed to achieve sales turnover of ₹50,000 crore by 2020-21.” For Amul, pouch milk is the highest turnover product with double digit value growth. The dairy products such as cheese, butter, milk beverages, paneer, UHT milk, flavored milk, Paneer and fresh cream have also shown double digit value growth, Sodhi informed. The 18 member Unions of Amul Federation has over 36 lakh farmer members across 18,700 villages of Gujarat. They procure on an average 211 lakhs litres of milk per day (llpd) milk.
Source : Business Line
Published on: April 18, 2018