Amul crosses $2 bn revenue, eyes 22% growth

The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the popular Amul brand of milk and dairy products, today said it was targetting over 22% growth in revenue this fiscal to touch Rs 12,000 crore.

The company had successfully closed the last financial year with sales of Rs 9,774 crore ($2.2 billion).

"In the fiscal year ended March 31, 2011, GCMMF has registered a total turnover of $2.2 billion and in the current fiscal the target is to touch Rs 12,000 crore," GCMMF Managing Director RS Sodhi told PTI.

During the financial year 2010-11, GCMMF registered topline growth of 22.1% compared to the previous fiscal, he added.

Going ahead, the cooperative plans to increase milk procurement of Gujarat and other states as well, besides focussing on marketing and expansion of retail outlets.

"We plan to increase procurement of milk within the state and from other cooperatives outside Gujarat and promote our umbrella brand Amul to touch Rs 12,000 crore turnover this year," Sodhi said.

Four years back, GCMMF had registered $1 billion turnover after 33 years of its operations.

"Turnover of GCMMF registered CAGR of 23% during the last four years. During the year 2010-11, GCMMF paid Rs 8,345 crore to its 30 lakh farmer members. Payout to farmers also registered 23% CAGR in last 4 years," it said.

GCMMF had recently initiated its largest distribution expansion exercise to extend its reach to smaller towns and semi-urban areas.

Through implementation of new 'hub and spoke' model, GCMMF plans to appoint 150 new super distributors and extend its reach to 3,000 additional smaller towns and semi-urban areas in 2011-12, the cooperative said.

Retailing continues to be an important strategic initiative for GCMMF.

"During the year 2010-11, 1,000 new Amul Parlours have been added, taking the total strength to 6,000, thus reinforcing the wide popularity of the concept," it said.