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Amul to Invest $769 million in Next Two Years

22 May 2014

INDIA - Amul brand name of Gujarat Cooperative Milk Marketing Federation (GCMMF) will be investing $700 million to $769 million for processing higher quantity of milk in the next two years.

The cooperative plans to achieve $3.69 billion during 2014-15 financial year. It had reported a 32 per cent increase in turnover to $3.07 billion during 2013-14 on strong sales from $2.34 billion in 2012-13.

Speaking on developments, RS Sodhi, managing director, GCMMF, informed that Amul has planned rapid expansion across its entire value-chain, as expansion has been our mantra and will remain so in the coming years.

“We are in line with increase in our milk procurement, our processing capacities across all member unions, which has enhanced from 17 million litres per day to 23.2 million litres per day, in the last three years,” Sodhi adds.

Sodhi also said that our new dairy projects of 200,000 liters capacity in Amreli, Bharuch, Surendranagar, Kutch and Bhavnagar at Saurashtra region in its home state Gujarat will help to further enhance our capacity.

The cooperatives new dairy projects at Rohtak, Faridabad in the Haryana state will have a capacity of 1 million liters and 1.5 million liters respectively, whereas the three dairy projects in Kanpur, Lucknow and Varanasi in Uttar Pradesh state will add another 1.5 million liters.

The cooperative is also working on 1 million liters capacity dairy project in the West Bengal state.

“Once all these new plants are commissioned, our combined processing capacity will be enhanced by another 6 million litres per day,” Sodhi stressed.

For the last four years, GCMMF has recorded 59 per cent increase in milk procurement price to its farmers, resulting in 46 per cent growth in milk procurement during the same period.

During 2013-14, Amul long-life ultra-high temperature (UHT) milk had shown an impressive value growth of 40 per cent and sales of Amul UHT cream also increased by 37 per cent in value terms.

Amul’s innovative milk beverages range showed quantum value growth of 25 per cent. In Ghee, their two mega-brands Amul & Sagar together achieved very impressive growth of 46 per cent in value terms.

Sales of Amul butter and cheese achieved impressive 21 per cent & 22 per cent value growth respectively.

Amul fresh milk sales increased by 23 per cent and became the leading brand of fresh milk in several major cities of India.

Making its presence in top six global dairy trade platform, Amul is at present associated with about 3.3 million farmers and has around 50 milk processing units. Besides milk, the company is also produces major dairy products like butter, cheese, paneer, ice-cream and others.

TheMeatSite News Desk

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