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Time is ripe for second White Revolution in India, states Amul chairman
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Wednesday, 29 May, 2019, 13 : 00 PM [IST]
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Our Bureau, Mumbai
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 Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), which markets the popular Amul brand of milk and dairy products, has registered a turnover of Rs 33,150 crore for the financial year 2018-19, which ended on March 31, 2019. The sales turnover achieved by GCMMF is 13 per cent higher than the previous financial year.
The mantra of rapid expansion has yielded rich dividends with the Amul Federation’s sales turnover increasing by over four times, from Rs 8,005 crore in 2009-10 to Rs 33,150 crore in 2018-19.
The results of the apex body of dairy cooperatives in Gujarat were declared during GCMMF’s 45th annual general meeting (AGM).
In fact, the group turnover of GCMMF and its constituent member unions, representing the unduplicated turnover of all products sold under Amul brand is exceeding Rs 45,000 crore or $6.5 billion.
GCMMF aims to achieve a business turnover of Rs 50,000 crore, and become the largest FMCG organisation in India by 2020-21. In the long-term, Amul aims to establish itself as the largest dairy organisation in the world, rising up from its current ranking as the ninth largest dairy organisation globally to the top three.
Ramsinhbhai P Parmar, chairman, GCMMF, said, “During the last nine years, our milk procurement has witnessed a phenomenal increase of 153 per cent. This enormous growth was a result of the high milk procurement price paid to our farmer-members, which has increased by 105 per cent in this period.
He added that considering the urbanisation and population growth estimates, it was envisaged that India needed around 600 million metric tonne of milk per year (65 crore litre per day) in the year 2050-51 from the current level of 176 million metric tonne per year (48 crore litre per day) to fulfill the demand for milk and milk products.
“This means that India’s milk production needs to grow at a compound annual growth rate of 3.2 per cent for the next 40 years. This can be possible only when dairy farmers are given stable and remunerative prices through proper market linkage. In order to achieve this estimated growth in demand, the time is ripe for the second White Revolution in India,” Parmar said.
Jethabhai Bharwad, vice-chairman, GCMMF, informed that for the last 21 years, India has been the largest producer of milk in the world and is likely to retain its prime position with an annual growth rate of 5.5 per cent during the last three to four years as against global milk production, which is growing at two per cent.
India contributes almost 50 per cent of the global growth in milk production. The monetary value of milk produced in India is about Rs 7 lakh crore, which is more than the total value of all pulses and grains put together.
R S Sodhi, managing director, GCMMF, said, “With the double-digit value growth in consumer products during the last five to six years, we were among the fastest growing FMCG organisations in India.”
“Amul’s success has been driven by its 3E mantra – rapid expansion in milk procurement, rapid expansion in manufacturing facilities and rapid expansion in marketing & distribution network,” he added.
He said, “We have already upped our total milk processing capacity to 360 lakh litre per day and planned for expansion of 400 lakh litre per day within the next two years. In Gandhinagar, Gujarat, AmulFed Dairy’s capacity expansion from 35 lakh litre per day to 50 lakh litre per day further underlined its status as the largest dairy factory in India.”
Several brand new dairy plants have already been commissioned in different parts of India in the last couple of years. These include two plants with a capacity of eight lakh litre per day – one at Taloja, Navi Mumbai; and the other at Navapura near Ahmedabad– and two plants with a capacity of two lakh litre per day in Junagadh and Porbandar.
“We are also expanding our milk powder manufacturing capacity at Himmatnagar. Our new chocolate factory has boosted our production capacity to 1,300 MT (metric tonne) per month, enabling us to launch several new and unique flavoured chocolates, which have been attracting huge interest from chocolate lovers and being received favourably by consumers,” Sodhi said.
He added that Indian dairy farmers can look forward to golden days ahead with dairy commodity prices firming up over the last three-four months, stating that innovation was the key to our success.
“We have introduced as many as 102 new products in the last four years, with 48 products being revealed in just the last two years, exceeding our target of launching two new products every month,” Sodhi said.
After the AGM, on behalf of 36 lakh milk producer members of Gujarat, Parmar and Bharwad has conveyed his sincere gratitude to the Government of Gujarat and the Government of India for their continuous and timely support for various schemes related to producers.
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