Amul expects INR50,000- crore turnover in next four years

India: Dairy Major, Amul which is a flagship product of Gujarat Cooperative Milk Marketing Federation (GCMMF), is expecting a turnover of INR50,000 crores which is more than double of its current turnover on account of factors such as rising demand for milk and milk related products. The company’s current turnover is INR 23,005 crore and which has increased by 11% from the previous financial year. Amul is expecting a 20% growth in their turnover in nest four years.

Company generates 50 percent of the turnover by selling milk, commodity business contributes 5 to 7 percent and rest is through by the sale of value added products. Company is associated with more than 36 lakh farmers across 18,600 villages of Gujarat.

According to TechSci Research:  In the year 2015-16, Amul procured 186 litres of milk per day which when compared with last years per day milk procurement is 37.5 litres more, this clearly depicts the increasing demand for Amul milk and milk related products.

Also, Amul should not only focus on Key product, Milk, but should emphasis on factors that can lead to increase in sales of other value added products which will ultimately help the company to achieve their target of generating a turnover of INR 50,000 crore.  Also, in order to meet the increasing demand, company should also increase their milk processing as well as production facility.

According to a recent report published by TechSci Research, “India Dairy Products Market Forecast and Opportunities, 2011 – 2021”, the market for dairy products in India is projected to grow at a CAGR of over 7% during 2016 - 2021. In 2015, North India dominated the country’s dairy products market, on account of increasing per capita expenditure, rising youth population, introduction of value added dairy products, changing consumption patterns, and growing penetration of international players. India dairy products market is witnessing a shift towards healthier products such as probiotic drinks, yogurts, etc. Few of the leading players operating in India dairy products market include Gujarat Cooperative Milk Marketing Federation Ltd., National Dairy Development Board, Karnataka Cooperative Milk Producers Federation Ltd., and Tamil Nadu Co-operative Milk Producers' Federation Limited, among others.