GCMMF (Amul) sees 18.5% growth for fiscal year

Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets the Amul brand of milk and dairy products in India, has registered a provisional turnover of R55,055 Crores, or 550.5bn rupees (€6.15bn) for the financial year 2022-23, which ended 31 March 2023. GCMMF turnover growth of 18.5% which is largely due to demand for branded consumer products. Fresh products grew by 21% with a contribution of 50% to total turnover, while the ice cream range grew by 41% and consumer products have registered a growth of 23% year-on-year with products such as cheese, butter, UHT milk, milk beverages, paneer, cream, buttermilk and dahi having grown at 20 to 40%. The provisional unduplicated group turnover of the member unions of Amul group has crossed R72,000 Crores (€8.2bn).

With a focus of increasing its distribution across top 400 towns in terms of population, GCMMF is increasing its network of 82 branches and warehouse infrastructures to more than 100 in 2023-24, while also increasing the distributors and retail universe in these towns.

The 18 member unions of the GCMMF, with farmer member of more than 36 Lakh (3.6m) across 18,600 villages of Gujarat, are procuring on an average 270,000 Lakhs (2.7bn) litres of milk per day. To meet milk and milk product demand in the major metropolitan areas of India, the member unions of GCMMF have set up a network of 98 dairy plants.

GCMMF ranks eighth among the top 20 dairy companies in world in terms of milk processing as per the International Farm Comparison Network (IFCN) and Amul is also the strongest dairy brand as per the Brand Finance 2022 report in the UK. It annually distributes 2,000 crores packs of products across India.

GCMMF is investing in new products categories such as organic foods, high protein products, probiotic ranges and fresh sweets. Each of these product categories will help Amul transition from India’s largest dairy brand to India’s largest food and beverages (FMCG) company, the firm says.

GCMMF recently launched its first international ice cream lounge in Pune, with 13 flavours of ice cream to be experienced, and each flavour representing a country of its origin. This model will be replicated across all major cities and airports.

Shri Shamalbhai Patel, chairman of GCMMF, says, “Based on estimated growth in market demand for Amul products, GCMMF plans to achieve sales turnover of Rs.1,00,000 crores by 2025 and further grow with a compound annual growth rate of more than 20% over the next seven years because of higher milk procurement, continuous expansion in terms of adding new markets, launching of new products, and adding new milk processing capacity across India.”

GCMMF passes on 80-85% of the consumer rupees back to milk producer members, thus encouraging them to produce more milk, it notes.

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