Gujarat Co-operative Milk Marketing Federation Ltd, which markets the Amul brand of milk and dairy products, reported an 8 percent increase in turnover at Rs 29,220 crores for the financial year ended March 31, 2018.
Its branded consumer products registered growth of 14 percent over the previous year, with products such as cheese, butter, milk beverages, paneer, cream, buttermilk and dahi having expanded 20-40 percent.
The group turnover of Amul brand has crossed Rs 41,000 crores which is 10 percent higher than last year.
The Amul federation has been achieving a compound annual growth rate of more than 18 percent for the past eight years because of higher milk procurement, continuous expansion in markets, launching of new products and adding milk processing capacities, said a press statement.
“We have achieved volume sales growth in all product categories,” managing director RS Sodhi said.
Pouch milk, which is the highest turnover product, posted double-digit growth in value, said Sodhi.
He also informed that there was a positive impact of goods and services tax on the business and the federation was committed to achieving sales turnover of Rs 50,000 crore by 2020-21.
Based on the estimated growth in demand for Amul products and the future marketing efforts, the company anticipates a 20 percent a compound annual growth rate in the business in the next five years, chairman Ramsinh P Parmar said. “Amul plans to enhance its milk processing capacity from the current level of 320 lakh litres per day to 380–400 lakh litres per day in the next two years,” he added.
The 18 member unions of Amul federation, with a network of more than 36 lakhs across 18,700 villages of Gujarat, procured on an average 211 lakhs litres of milk per day in fiscal 2017-18, which was 20 percent higher than the year before.
Amul passes on 80-85 paise of each rupee it makes to milk producers.