Amul is now world’s 13th largest dairy, posts 67% revenue growth in FY16
The world’s 13th largest dairy organization and India’s largest dairy cooperative, Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the popular Amul brand of dairy products today said that it has registered a 67 per cent growth in turnover to Rs 23,004 crore during 2015-16.
Declaring its financial results for the last fiscal at its 42nd annual general meeting at Anand today, the cooperative, which passes on every 80 paise from every rupee earned on the sale of Amul products to its dairy farmers, said that it has grown by 187 per cent during the past six years. This translates into a compounded annual growth rate (CAGR) of 19.2 per cent during the period.
In fact, the group turnover of GCMMF and its constituent member unions, representing unduplicated turnover of all products sold under Amul brand was Rs 33,000 corer or $5 billion.
Rapidly moving up the global rankings, Amul has is now the thirteenth largest dairy organisation in the world, as per the latest data released by International Farm Comparison Network (IFCN). Amul is ranked well ahead of other dairy companies such as Land O’Lakes & Schreiber Foods of the US, Muller of Germany, Groupe Sodiaal of France & Mengniu of China.
Jethabhai Patel, chairman, GCMMF, emphasized the fact that “In last two years, when dairy farmers across the world have witnessed a sharp decline in farm-gate prices of milk, only farmer-members of Amul cooperative family have witnessed growth in milk procurement price. For example, dairy farmers in New Zealand suffered 47 per cent decline in farm-gate prices of cow milk during the last two years.
The chairman added that during the last six years, GCMMF’s milk procurement has witnessed phenomenal increase of 87 per cent, and the milk procurement price paid to its farmer-members which has increased by 90 per cent during last six years.
R S Sodhi, managing director, GCMMF said “By aggressively promoting dairy entrepreneurship among rural youth, the benefits of ‘make in India’ initiative can also be extended to rural India”.
Sodhi also informed that “In line with our expansion plans, we have already achieved expansion in our milk processing capacity to 28 million liters per day (mlpd). During the year, several major expansion projects were successfully completed, with commissioning of our new dairy plant at Faridabad with capacity of 1 mlpd LLPD, expandable to 2 mlpd.”
On the other hand, thanks largely to the focus on marketing value-added milk and dairy products in consumer packs, farmer-members of Amul family witnessed 17 per cent in their milk procurement price during the same period.”
GCMMF’s new plant at Rohtak, also started operations with current capacity of 600,000 lpd expandable to one mlpd. Its new dairy plant at Amreli, Gujarat, commenced operations with a capacity of 200,000 lpd and the Kutch plant expanded capacity from 50,000 lpd to 200,000 lpd with new production facilities for buttermilk and dahi (curd).