FMCG brand Amul aims to cross Rs 80,000 crore turnover in FY23-24

Slew of product launches in organic and protein ranges lined up ahead of festive season

Amul, India’s largest fast-moving consumer goods (FMCG) brand, aims to cross a turnover of Rs 80,000 crore in the financial year 2023-24 (FY24).

Turnover grew 18.5 per cent to Rs 72,000 crore in the financial year 2022-23 (FY23).

“Last year has been good in terms of growth in consumer products and we expect that to continue this year also. We hope to end this year with a turnover of Rs 65,000 crore for Gujarat Cooperative Milk Marketing Federation (GCMMF),” said Jayen Mehta, managing director (MD) of GCMMF.

GCMMF is the apex organisation of all the dairy cooperative unions in Gujarat and the marketers of the Amul brand. It had reported a turnover of Rs 55,074 crore in FY23. 

GCMMF plans to achieve a sales turnover of Rs 1 trillion by 2025 and further grow at a compound annual growth rate (CAGR) of more than 20 per cent over seven years.

Amul saw high volume growth for its consumer products in FY23, including an increase in sales of milk-based beverages by 34 per cent, while ice creams saw a growth of 40 per cent.  

“There is consistent growth across all our categories, even though some like ice cream, buttermilk and milk-based beverages did not perform well during the first quarter due to heavy rains. But since we were on a strong base, we managed to grow further by decent numbers,” said Mehta.

He added that with a short summer coming in, products that did not perform well in the main summer will contribute to growth.

To continue this growth momentum during the upcoming festive season, the group has a slew of product launches lined up.

“We will be strengthening our organic range with the launch of organic tea, sugar, jaggery, and spices in the next one to one and a half months. This will give us a very good growth momentum,” said Mehta.

The organic portfolio includes flour, pulses, beans, rice and cereals. The group is also bullish on its high protein range and will be strengthening it with the launch of high protein yoghurt in the next 15 days. Other products, including chocolates, milk, cookies, and ice-cream, will be launched within the next two months, Mehta added.

Amul has massive expansion plans for “every single product category across the country,” Mehta said.  

The group’s new 2-million litre per day Rajkot-based milk processing facility will be ready by the end of next year. New plants in Varanasi and Ujjain are ready and will be commissioned this year, Mehta said.

“We have seven-eight new ice cream facilities under the expansion phase and will double our capacity in the next two years,” he said.

The group plans to have 100-112 new plants around the next year.

Mehta said that Amul’s price hikes are in line with the average inflation in the country. 

“Pressure on producers leads to an increase in prices. But with a good monsoon in Gujarat this year, and availability of green fodder, we hope there will be no such pricing and inflationary pressure on our producers,” he added.

Amul expects to cross an average procurement of 30 million litres of milk per day, Mehta said.