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COMPANY REPORT

Amul becomes an international brand, goes to 40 countries
Saturday, 14 June, 2008, 08 : 00 AM [IST]
Our Bureau, Mumbai
The Gujarat Cooperative Milk Marketing Federation (GCMMF), the country's largest milk marketing federation, had a turnover of Rs 5,255 crore during 2007-08 and this would grow to Rs 6,000 by the end of this fiscal. The largest milk brand in Asia, today Amul is the largest exporter of dairy products in the country. Amul is today available in over 40 countries. It is exporting a wide variety of products. The major markets are the US, West Indies, countries in Africa, the Gulf region, the Saarc neighbours, Singapore, the Philippines, Thailand, Japan and China, according to B M Vyas, managing director, GCMMF. In an interview to Financial Express, Vyas said, "We have demonstrated that if a level-playing field is provided, Indian dairy products are successful in the global market. Growth in consumer pack exports has been creditable and we have consolidated our exports."

From conventional milk products like paneer and cheese, the brand has evolved over over time and now caters to the wellness market as well with its sugar-free and probiotic milk products. According to Vyas, the company is continuously introducing innovative products that meet the aspirational needs of the consumers. Amul has introduced a range of milk-based products such as flavoured milk, buttermilk, yoghurt, probiotic products and energy drinks.

"Although if you analyse the household expenditure of Indian homes, the bulk of the money is spent on milk and products like butter, ghee, cheese, and a very small amount on items like ice creams and pizzas. However, it is important for us to register our presence in the entire food basket of the Indian household where and dairy product is involved. Our recent forays into pizzas, paranthas is through our Amul parlours, which are one-stop shops for all our products. We have plans for creating a large chain of such outlets to be managed mainly by franchisees throughout the country. Currently, we have 1,500 parlours and plan to open 10,000 of them by 2010," Vyas said.

Amul liquid milk contributes as much as Rs 2,000 crore to GCMMF's sales. Apart from this, direct sale by District Cooperative Milk Producers Unions accounts for another Rs 1,500 crore. With the introduction of pouch milk in towns like Jaipur, Kanpur, Lucknow, Bhopal and Pune, besides the metros of Delhi, Kolkata and Mumbai, Amul liquid milk has crossed the boundaries of Gujarat.

During 2007, the 13-member unions of GCMMF took a revolutionary step forward by integrating liquid milk marketing operations in all districts of Gujarat under the common brand name of Amul. Consequently, Amul has now emerged as the largest milk brand in Asia.

Amul is an institution covering 13,000 villages benefiting 2.7 million farmers. "We would want this coverage to expand further with more farmers to join the Amul umbrella nationally. Coming to business, we would be handling more than twice the quantity of milk and our sales turnover would be nearly Rs 20,000 crore in the next five years."

India is a developing country. Therefore, the focus is India. However, if there was a need to export in order to attain equilibrium in the domestic market, it would be under Amul brand in consumer packs only and that too to cater to the Taste of India.

"India is the largest milk producer in the world and GMCCF is the largest food products marketing organisation in India. We are confident that Amul would emerge as the world's largest food products organisation in the not too distant future," Vyas said.
 
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