Amul Targets Turnover Of Rs One Lakh Crore By 2025
Amul, which has seen sustained development in its group turnover through its dairy and value-added dairy products over the years, is now looking to go all-in in India's expanding FMCG industry, believing it is the appropriate inflection moment to enter other non-dairy food categories.
In a recent interview with BW Businessworld, Jayen Mehta, the newly appointed managing director of Amul mentioned the company has set a turnover target of INR 1 lakh crore by 2025.
Mehta explained why the brand's targeted income does not appear to be a challenge. “The three crore litres of milk that Amul handles daily comprise 25 per cent of the organised milk sector. The way in which consumer behaviour is shifting, even if 5 percent of Indians shift from loose and unpackaged milk to packaged and branded milk, India can add one more Amul every year in the domestic market.”
Moreover, the dairy industry is getting more organised, and a trend towards non-dairy foods is likely to intensify as customers, particularly the younger population, become more health conscious. However, beyond the dairy sector, Amul is at a crossroads as it aspires to become an all-foods firm.
“The way in which the Indian market is unfolding, we see an excellent opportunity in both the dairy and non-dairy food space. Post-Covid, the Indian consumer started realising that health is vital. This behaviour is seen more in the food segment, where we sense an opportunity”, he added.
GCMMF just took the initial cautious steps, launching protein buttermilk and lassi in limited areas, which will be expanded across the country. To supplement its healthy offering, the cooperative is also developing a line of probiotic products, beginning with buttermilk. Its new mithai portfolio is also being revamped to capitalise on the rising in-house consumption market. Apart from adding extra capacity to create Indian sweets, the cooperative will expand its selection of Indian sweets,
The brand appears hopeful about Indian customers' kitchen items soon being of the brand, Amul, be it organic or dairy products, based on the many product releases in the non-dairy market over the last three years and the expansion it reflected.
