Amul is a big brand, and the trust it enjoys is its “currency”. For FY23, Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns the Amul brand name, reported a turnover of Rs 55,070 crore, an increase of over 18 per cent on the previous year. The target for FY26 is Rs 1 lakh crore. If the farmer-owned co-operative can churn a perishable product such as milk into a portfolio of products, it reckons it can do better with farm produce. Under MD Jayen S. Mehta, the dairy major is looking to make a big play in the foods space
Milk and milk products brought in 96 per cent of Amul’s Rs 55,070-crore revenue in FY23 and make up for the traditional categories under the dairy giant
Amul’s decision to move beyond dairy into foods has been interesting and perplexing. The two are very different businesses with unique challenges. India is the world’s top producer of milk, which is also its largest agricultural product. “At Rs 10 lakh crore, milk is larger than wheat, paddy, and oilseeds put together,” says MD Jayen S. Mehta
Other than Amul’s core milk products, Amul Ice Cream, Amul Fresh Cream, Amul Pro, Amul chocolates and more such offerings are part of its big growth areas
Everything changed when the management began looking into the word “organic”. Amul told farmer-co-operatives: go organic, and we will find you the market. “To consumers, it is a product promise free of chemicals. If we get it right, we can be in every item of the kitchen,” says MD Jayen S. Mehta confidently. He adds, “It’s not as if organic has not been there but the trust is missing, and we have a right to win.”
Amul sees an opportunity in the $1.3-billion organic food market (in 2022) in India, one that is fragmented and has several small players. Per a report by research firm IMARC Group, the organic foods market in India has the potential to reach $4.6 billion in 2028. Amul has benefitted by offering hygienic packaged products. In foods, the opportunity is similar and by choosing specific segments like organic, the growth story can really take off
“It is not a rich man’s game; we want to democratise it. Middlemen make the money, and my assurance to the farmers is on all crops, be it organic or inorganic,” explains Amul MD Jayen S. Mehta. That means Amul will buy out the complete produce and can offer a large portfolio to consumers. He adds, “I can make a paneer paratha using my organic atta. It is about selling the concept of organic and not the range.”
From Amul Lactose Free Milk, Amul Organic Dal, Amul’s protein range to Amul Camel milk, Amul Probiotic offerings and more, these products from the dairy giant have the potential to disrupt the market
Check out these quick facts on India’s largest co-operative society Gujarat Cooperative Milk Marketing Federation Ltd
Amul has 122 products ready for launch and 50 at various stages of ideation. Taking a product category mass is not an unknown territory for Amul. The plan is to invest Rs 5,500 crore in new projects. MD Jayen S. Mehta says it will include a new AmulFed dairy (the manufacturing unit of GCMMF) in Rajkot, new plants across Pune, Ujjain, Kolkata, and Goa, and the expansion of eight ice cream plants. Amul is also creating beachheads in south India
The dairy major also wants to go beyond the Indian diaspora. On October 8, Amul’s campaign titled ‘Be More Milk’ went live with a 15-second message that played out 20 times an hour and 480 times daily for four weeks. This was at the Nasdaq MarketSite in New York’s Times Square. The move is expected to strengthen the base of the Indian dairy major’s journey into foreign markets
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