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Amul raises farmers' income four-fold in seven years

Turnover of GCMMF has registered quantum growth of 238%, which implies CAGR of 19%

Dilip Kumar Jha  |  Mumbai 


Farmers supplying milk to Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) have witnessed four-fold increase in their income over the last seven years, claims the company, which markets the popular brand of milk and products.

While farmers' per litre milk realisation has doubled to Rs 49 a litre (Rs 680 per kg of fat) in the financial year 2016-17 from Rs 24.30 a litre ( Rs 337 per kg of fat) in 2009-10, overall milk procurement of the cooperative has also doubled during this period to 17.65 million litres per day from 9.09 million litres per day.

"This effectively shows an increase of four fold in farmers' income over the last seven years which demonstrates the efficacy of model in exceeding our national goal of doubling farmer's income in six years," said R S Sodhi, Managing Director,

During this period, turnover of has registered quantum growth of 238 per cent, which implies an impressive cumulative average growth rate (CAGR) of 19 per cent during this period. The mantra of rapid expansion had yielded rich dividends with the GCMMF's sales turnover increasing 3.5 times from Rs 8,005 crore in 2009-10 to Rs 27,043 crore in 2016-17. The company aims to achieve a turnover of Rs 50,000 crore and become the largest FMCG organisation in India by 2020 - 21. In the long-term, claims to establish itself as the largest organisation in the world, rising up from its current ranking of thirteenth largest organisation to number one.

"Our milk procurement has witnessed a phenomenal increase of 96 per cent in the last seven years. This enormous growth was a result of the high milk procurement price paid to our farmer-members, which has increased by 102 per cent in this period. This highly remunerative price has helped us retain the farmers' interest in milk production. Better returns from dairying have motivated them to enhance their investments in increasing milk production," said Jethabhai Patel, Chairman,

The company has expanded its manufacturing facility three-fold at its plant at Taloja in Maharashtra, Kolkata and Surendranagar. These plants are at various stages of completion. The processing capacity of our AmulFed at Gandhinagar is being enhanced from 3.5 million litres per day to 5 million litres per day.

"We are also enhancing our milk powder manufacturing capacity with a new factory of 150 tonnes per day production capacity coming up at Gandhinagar, along with another new milk powder plant at Himmatnagar. We are also putting into effect significant capacity expansions for chocolates and paneer," said Sodhi.

The company has also enhanced its distribution footprint simultaneously by adding 15 new branch offices in recent years and expanding network of distributors, super-stockists and sub-stockists to reach millions of retail shops across the country. Also, the company has added 1,250 distributors during the year. The company has introduced 50 new products under brand in the last three years.