India's largest dairy outfit GCMMF turnover grows 8% in FY18 to Rs 292 bn

Unduplicated group turnover of Amul brand crosses Rs 410 bn, up 10%

Country's largest dairy outfit Gujarat Cooperative Milk Marketing Federation (GCMMF) that owns and markets the Amul brand has posted an eight per cent year on year (YoY) growth in turnover for 2017-18 to Rs 292.2 billion. 

Releasing the provisional turnover figures for the FY18 fiscal, the cooperative said that branded consumer products have registered a growth of 14 per cent over previous year with products like cheese, butter, milk beverages, paneer (cottage cheese), cream, buttermilk and curd having grown at 20-40 per cent. RS Sodhi, managing director, GCMMF said that pouch milk, which is the highest turnover product, has shown double digit value growth. "We are committed to achieving sales turnover of Rs 500 billion by 2020-21," he added. 

The provisional unduplicated group turnover of Amul brand has crossed Rs 410 billion, up 10 per cent from last year. Most of the member dairies sell milk, ghee, cattlefeed etc in their own districts directly. This turnover is not reflected in GCMMF books. Hence, this is added to GCMMF sales to show the unduplicated turnover of the Amul brand as a whole (local sales by dairies as well as GCMMF sales). 

GCMMF's turnover growth rate slowed down in 2017-18 (at 8 per cent) compared to 18 per cent in 2016-17. The federation said that this was largely due to the decline of 60 per cent in commodity sales as a result of depressed market conditions in the global and local markets. The federation has been clocking a compounded annual growth rate of more than 18 per cent for the last eight years because of higher milk procurement, expansion into new markets, addition of processing capacity and new product launches. GCMMF has launched more than 50 new products in the last two years. 

The 18 member unions of GCMMF with a farmer membership of 3.6 million across 18,700 villages of Gujarat procured an average of 21.1 milion litres of milk per day. This is 20 per cent more than 2016-17. 

Ramsinh Parmar, chairman, GCMMF said, "Based on estimated growth in market demand for Amul products and our future marketing efforts, we anticipate at least 20 per cent CAGR in the business of Amul Federation during the next five years." He also added that Amul plans to increase its milk processing capacity from the current level of 32 million litres per day to 38 - 40 million litres per day in the next two years.