Amul brand is setting up its processing unit in Northeast and Kolkata

India: The Gujarat Cooperative Milk Marketing Federation (GCMMF), sells dairy products under the renowned Amul brand is setting up its processing units in UP, one in Kanpur and another in Lucknow and both the units will be operational in 5-6 months. They are planning to set up another unit near Kolkata. The estimated set up cost will be around 200 crores for each unit. The company is expecting to earn a revenue of around INR, 23,000 crores as company have 60 milk processing units in the country and the expectations for earning revenues is due to the volume increase.

The major focus of company is in the domestic market because they export only 250 crores out of the total revenue earned. On the other hand, there production cost is also increasing due to rising cost of production, procurement, cattle feed and labour cost but they are not yet planning to increase the price of the product.

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. 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.

According to TechSci Research “The Gujarat Cooperative Milk Marketing Federation (GCMMF)”, has helped the country to become the largest milk producer in the world and expanding its processing units will also help in meeting the shortages of milk supply all over India. The investment made by the company will help the company to increase its revenues and it will result in increased market share and further to dominate the market and as the company is not yet planning to increase the price will help it to maintain the competitive advantage.