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Revolution through Evolution

Amul: A stagnant phase?

The dairy behemoth, Amul, has recorded its slowest growth in the past eight years for 2014-15.
Gujarat Cooperative Milk Marketing Federation ended the fiscal with the revenue of Rs 20,730 crore. That was an increase of 14.2% over the previous year whereas it has achieved a compounded growth rate of 20% over the past five years in marketing its Amul brand of milk and milk products.

The head honchos maintain that the consumer product line has grown by 21% especially in the beverages, small milk powder pouches and ice-cream. But the management admits that the company suffered a 77% drop in revenue in sale of bulk commodities.  The total turnover of the Amul group, owned by close to 32 lakh farmers from 17 district cooperatives, including sale of liquid milk by member unions, other dairy products and cattle feed in their respective districts, is estimated at almost Rs 29,000 crore.

The cooperative dairy, aims on expanding its plant capacity by 14% to process 175 lakh litres of milk per day.With the current expansion in setting greenfield projects and expanding existing units, a turnover of Rs 25,000 crore (for Amul brand) is set as a target for 2015-16.

On the international front, Amul plans to expand its operations in the SAARC and Middle East countries. 

In the domestic market the dairy plans to add another 1,000 retail outlets to its 8000 –strong chain of exclusive parlours ,during the current fiscal year. In addition, 900 wholesale distributors will be added this year to the existing 4,800.

With such pragmatic approach and concrete business plans, whether or not Amul succeeds in raking in the profits and achieve substantial growth, remains an inscrutable mystery.

Chhavi Srivastava

A bibliophile, with an inquisitive bend of mind, I truly believe the pen is mightier than the sword.