The Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets dairy products under the ‘Amul’ brand, is looking at 40-60 new value-added dairy products over the next two years. The launches, which could include high-margin offerings, are expected to help Amul achieve a ₹50,000-crore turnover by 2021.
According to Jayen Mehta, Senior General Manager, Planning and Marketing, GCMFF, the plan is to launch at least two new products every month over the next two years.
The new products will be launched regionally and later across the country. Sweet-meats, with longer shelf-life, are being looked at as a segment quite aggressively. Launches include peda, a sweet-dish popular in North India, and nan-khatai, a shortbread biscuits popular in Surat. Over the last four years, Amul has launched over 100 products, primarily dairy-based ones.
“We have a pipeline of 40-60 new products — two new products a month for the next two years. We are expecting a ₹50,000-crore turnover by 2021,” he told BusinessLine.
Driven by strong volume growth, Amul reported a turnover at ₹33,150 crore in FY19. In FY20, it is targeting a turnover of ₹40,000 crore.
Milk sales account for 50 per cent of the brand’s turnover.
Mehta said that Amul is a planning a capex of ₹600-800 crore this fiscal, as it looks to adding new capacities and increasing milk sourcing. Part of the capex will also go towards ramping up distribution and marketing plans.
Amul procures 230,00,000 litres of milk every day from farmer cooperatives across India. Nearly, 30,00,000 litres (a day) is procured from outside Gujarat. Milk procurement is also expected to see a jump of 8-12 per cent this year.
“Over the next five years, capex will be up to ₹3,000 crore,” he said.
Plans are also afoot to shore-up exports, which stood at ₹1,000 crore of Amul’s turnover last fiscal and is expected to see a 20-25 per cent jump.