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Amul records stupendous 500% growth, aims to become World No1
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Tuesday, 16 November, 2004, 08 : 00 AM [IST]
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P N V Nair in Anand
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ry produce in the world and Amul will be the Number One brand, exhorted B M Vyas, Managing Director, Gujarat Co-operative Milk Marketing Federation (GCMMF) that markets Amul products. The Federation has achieved 500% growth in 10 years since 1994 when it forayed into the brave new world of product diversification from its traditional "utterly butterly" products. From Rs 600 crore turnover then, the Federation had a turnover of about Rs 3,000 crore in 2003-04. The company has emerged as a major food organization with the most diversified product portfolio, ranging from ice-cream and dahi to long life and flavoured milk.
While Amul has launched Lassi recently, it is all set to market Amul Cool Café and milk fruit drinks. Other new products in the pipeline include Kheer, Payasam, Double Milk, Fresh Whip Cream and more Indian ethnic sweets.
Talking to Food & Beverage News, Vyas said Amul Kool in different flavours was doing well and would touch sales of Rs 100 crore in one year of its launch. Amul Shakti was also very popular and would bring in Rs 45-50 crore in the first year itself.
In order to substantiate his optimism, Vyas reeled out figures that show Amul leading in 15 categories in the market share. Amul takes the third and fourth positions in chocolates (10%) and brown beverages (15%). Here is the all-India market share in 2003-04 and Amul holds the first rank in the following categories:
Infant milk food (Amul Spray) 65%, dairy whitener (Amulya) 60%, Whole milk powder (Amul WMP) 80%, skim milk powder (Sagar SMP) 40%, butter 80%, breadspread 80%, cheese 60%, cheese spread 80%, fresh milk (Amul in A'bad) 60%, Long-life milk (Amul Taaza) 60%, fresh curds (Amul Masti Dahi) 75%, pure ghee 25%, ice-cream 40%, condensed milk ( Mithai Mate) 55 %, ethnic sweet (Amul Shrikhand) 50 %.
According to Vyas GCMMF was India's largest exporter of dairy products worth more than Rs 100 crore a year. Amul products are exported to Middle East, USA, South-East Asia, Philippines, Australia, Sri Lanka, Bangladesh etc.
Starting with two village societies and 247 litres of milk in the year 1946 to serve the interest of milk producers and to provide quality products to consumers at affordable prices, the Amul pattern now includes 2.3 million milk producers in Gujarat and 11 million farmers in the country, 11,200 villages in Gujarat and 1,00,000 villages in India, 12 district unions in Gujarat and 170 unions all over India, GCMMF in Gujarat and 22 State Federations in India. The concept behind the cooperative movement is member control of production, procurement, processing and marketing, thereby eliminating exploitation of milk producers at the hands of middlemen. With one of the strongest cold chain distribution network in the country, GCMMB today owns 13 state-of-the-art cold rooms at various depot locations. From village level procurement centre to the retail centre at the consumer level, the cold chain is operative.
Asked about the success story, Vyas said Amul products were cheaper when compared to other products in the market. " Our overheads are very low with minimum staff and that too without any fancy salaries. Through the cooperatives, we have an edge over the others in production, procurement and marketing of milk and milk products. As milk production goes up prices tend to come down. This also results in diversification of products and more and more people get the taste of Amul. Above all, we are able to establish Amul as an international brand. Any model is bound to succeed if the people who manage are honest and professional."
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