Amul posts highest ever turnover at Rs 3,774 cr

Despite troubles with NDDB and internal turmoil, Amul, country's largest milk cooperative, has managed to register a jump of over Rs 852 crore in its total turnover for the last financial year, which is the largest ever in its history. The turnover has jumped from Rs 2,922 crore in 2004-05 to Rs 3,774 crore in 2005-06.

For the first time in the history of Gujarat Cooperative Milk Marketing Federation (GCMMF), its turnover has taken such a big jump in one year, B M Vyas, Managing Director of GCMMF, which owns Amul brand told Business Standard.

"It took us 20 years between 1974 to 1994, to reach Rs 900 crore turnover", said Vyas.

Liquid milk contributed majorly to the rise in total turnover of Amul indicating a substantial jump in milk consumption in the country during last one year. Nearly 30 per cent of the total turnover has come from liquid milk sale, said Vyas.

Amul has a range of value-added milk products but the liquid milk has remained a major business for the milk cooperative.

GCMMF board will meet in June second week for the formal release of the results for the last financial year.

During the year, Amul Anand dairy sold over Rs 100 crore worth liquid milk in Kolkata where it launched its operations recently, said Rahul Kumar, managing director of Amul dairy in Anand.

Along with launch of operations in Kolkata, Amul's decision to launch marketing of milk in Delhi to panetrate NDDB's Mother Dairy market in north India also helped Amul increasing its turnover.

Following NDDB's decision to foray into milk and milk products marketing business, Amul spread its operations further to a number of new destinations all over the country.

Along with liquid milk, Amul also managed to sell more of milk products like ice creams, pizza, milk powder etc during the last year as sales turnover from this segment has jumped by nearly 15 per cent last year.

The export of various products to overseas market like West Asia, the US and Europe has also increased by 15 percent during the last year, said Vyas.

Amul is now exploring markets in Asia-Pacific region, which include markets like Japan and Australia to export its milk products to Indian overseas.

Although the high value milk products help Amul earn revenue, the liquid milk market contributes majorly to Amul's kitty. Major centres like Delhi, Mumbai, Ahmedabad, Kolkata are expected to contribute more to the total revenue of Amul during the current year.