The Gujarat Co-operative Milk Marketing Federation (GCMMF), that owns and markets dairy products under the brand Amul is aiming to emerge as India’s largest FMCG company by 2018-19.
According to R.S. Sodhi, Managing Director, GCMMF, Amul intends to overtake Hindustan Unilever as by 2018-19.
”The target is to overtake HUL and be India’s largest FMCG player by 2018-19,” he said. Sondhi was in the city to announce Amul being the principal sponsor for thr New Zealand cricket team for the upcoming ICC Champions Trophy.
Outlining his strategy, the MD pointed out that Amul has for the last seven years seen a 19 per cent CAGR and in FY-17 witnessed an 18 per cent growth. A sustained high growth at 20 per cent growth in sales which include ramping up capacities, new launches and probable price hikes – will make it possible for Amul to reach the top.
GCMMF reported a turnover of Rs. 27,000 crore in FY17, while Hindustan Unilever had around Rs. 32,000 crore turnover in FY-16. The later is yet to declare its earnings.
Ramping up capacity
According to Sodhi, Amul will be investing around Rs. 2,500 crore over the next three years to ramp up its milk procurement and processing capabilities to 380 lakh litres per day. Its current capacity stands at 300 lakh litres per day.
The company is also ramping up its procurement from non-Gujarat states that include Rajasthan, Uttar Pradesh, Haryana, Punjab, Maharastra and West Bengal. Currently 15 per cent of its total daily milk requirement is met from these states other than Gujarat.
“Around 13-14 per cent growth in procurement is expected in the coming days,” he added.
Source : Business line
Published on: June 1, 2017