Amul MD expects Rs 22,000 crore turnover in 2014

India’s largest milk producer Gujarat Co-operative Milk Marketing Federation (GCMMF), Amul said on Thursday said that the company’s turnover this year would touch Rs 22,000 crore.

Addressing delegates at the Project Management Institute’s (PMI) annual Project Management Practitioners’ Conference here, Amul India Managing Director Rupinder Singh Sodhi said, “When Amul began operations in 1946, around 250 litres of milk was produced. Today, our annual milk yield is 165 lakh litres. We have been growing well and expect to close this year with a turnover of Rs 22,000 crore.”

Last year, the organisation’s turnover was Rs 18,143 crore. Amul has been growing at a rate of 23 per cent per annum for the last five years, while the Compounded Annual Growth Rate (CAGR) has remained steady at 5 per cent during the same period.  

Sodhi attributed the success for this growth to the constant demand for milk in India. Besides, Amul produces a host of different dairy products such as packaged milk, ice creams and probiotic products, among others. It has introduced technological innovations in terms of processing, commercial systems and payment systems, and a unique C2C model.

“Our C2C model stands for ‘Cow to Consumer’. Our co-operative is owned by 3.5 million farmers from 17,000 villages in Gujarat. They collect milk each day from their cows and buffaloes and deposit it at their regional milk distribution centre. Our 49 dairy plants process the milk, which is then distributed through a network of 10,000 distributors, and sold to our customers by 10,00,000 retailers,” he said.