Amul Taking the Brand everywhere: 15 new plants, F&B push this year 2023
GCMMF has committed to investing between Rs 3,000 and Rs 4,000 crore yearly in capacity expansion and innovative activities.
In a few years, customers may be able to discover Amul, the largest dairy brand in India, across practically every food and beverage category, including pulses, atta, sugar, tea, rice, jaggery, frozen goods, bread, fruit drinks, and protein items.
According to Jayen Mehta, MD of the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the Amul brand, the Rs 72,000 crore Amul group, which consists of 18 member unions, has an aggressive diversification plan into non-dairy categories. This initiative started slowly in FY23 but will get a big push in FY24 and beyond.
In addition, the cooperative, which presently has 98 processing facilities nationwide, will construct 15 more facilities in FY24, bringing its total to 113.
The goal is to capitalize on the transition from unbranded to branded products by bringing Brand Amul as near to customers and suppliers (dairy farmers) as feasible. GCMMF aims to increase Amul’s top line by an additional Rs 8000–Rs 10,000 crore in revenue. Mehta anticipates growth rates of 12 to 14 percent annually for the foreseeable future, assisting the cooperative in reaching Rs 1 trillion by FY26.
Following COVID-19, there has been a significant shift in product types from loose to packed to branded. Given that we have established ourselves as a brand for the public, this opens up a large window for expansion, according to Mehta.
High-protein yogurts, milkshakes, probiotic chocolates, ice cream, and curd, as well as a new line of Indian sweets and bakery goods, are among the latest product introductions planned for this year.
Mehta claims that GCMMF has already switched all of its buttermilk pouches, which total over 30 lakh gallons per day throughout its dairy factories, to probiotic buttermilk. He claims, “This has been provided at no additional cost and is also good for the gut.”
More healthy goods, like protein-based buttermilk, lassi, yogurt, and cheese, are in the works to cover customers’ nutritional deficiencies. Business-wise, GCMMF aims to increase sales by between Rs 8,000 and Rs 10,000 crore over the following several years, only through new projects.
For now, GCMMF recorded a 20% increase in fresh milk products in FY23 compared to FY22. 50% of its revenue comes from this sector. Another 35% of GCMMF’s revenue comes from staples like butter, ghee, and cheese, while the remaining 15% comes from impulsive buys like ice cream and drinks.
While the summer season’s unpredictability contributed to a weak start for impulse categories like ice cream and beverages in FY24, Mehta predicts that an early onset of heat in August and a buildup in September and October will help impulse category sales.
Given that there have been no procurement gaps yet and that price lines have held following a rise in package milk of 8–10% (updated by Rs 2 per liter) earlier this year, fresh milk products and basics are likewise anticipated to stay steady this year.
Across its 98 processing units, GCMMF has an installed capacity of 470 lakh liters daily. Mehta stated that it gathers milk (from more than 36 lakh farmers) on average in 300 million liters per day and has plans to increase capacity by 30–40 lakh liters per day over the next two years as existing categories and new initiatives gain momentum.
Amul, synonymous with dairy in India, is poised for an unprecedented expansion in 2023. A testament to its vision of “The Taste of India,” the cooperative is set to inaugurate 15 new manufacturing plants across various states, aiming to increase production capacity and diversify its product portfolio. Alongside these new facilities, Amul is aggressively stepping into the Food & Beverage (F&B) sector with a wide array of innovative products targeted at domestic and international markets.
The expansion is not merely an amplification in size; it’s a strategic metamorphosis designed to meet the changing demands of consumers. Amul’s 15 new plants are expected to fortify its existing dairy stronghold. Still, the cooperative is also branching out to venture into new sub-segments like organic dairy, nutraceuticals, and specialized health beverages.
These new manufacturing hubs must be equipped with state-of-the-art machinery and technology to maintain Amul’s reputation for quality. The venture into the F&B sector is poised to be more than just a business diversification; it is a well-calibrated push to make Amul a global name in dairy and a comprehensive F&B brand.
All these initiatives are part of Amul’s larger vision to take the brand everywhere, to every home and heart in India and worldwide. As it embarks on this ambitious journey, Amul again proves that it’s more than just a dairy cooperative—a dynamic, evolving brand that aims to serve quality and variety to its ever-expanding consumer base.
