Indian Dairy Leader Amul’s Growth Registers Eight-Year Low in Fiscal 2014-15 due to Tumbling Milk Prices

Indian dairy giant Amul’s growth in 2014-15 has been the slowest in the past eight years. The slide in milk prices globally has dented Amul’s revenue growth rate to a marked degree. The company is the foremost dairy brand in India and leads the bulk dairy commodities market, which includes whole and skimmed milk powder and ghee (clarified butter).

The fiscal of the Gujarat Cooperative Milk Marketing Federation came to a close with revenues to the tune of INR 20,730 crores, which marks a 14.2% increase over the year earlier. The company reported a CAGR of 20% in the last five years, in marketing Amul as the leading dairy brand in India. According to the MD of Amul, R.S. Sodhi, the company has achieved its targeted growth in volume sales across all categories of products. 

The company’s range of consumer products has expanded by an impressive 21%, he said. This growth has been especially evident in the ice-cream, beverages and powdered milk pouches segments. Speaking to The Economic Times, a leading Indian business daily, Sodhi said that the company’s bulk commodity sales had shown a drop of 77%. The stakes in Amul group are owned by approximately 32 lakh farmers, operating across 17 milk co-operatives in various Indian districts. The total turnover of the company approximated INR 29,000 crore the company’s MD said.

The dairy, which is based on a co-operative business model, processes a whopping 154 lakh liters of milk, which it procures from a number of states, including Gujarat. The news report further stated that the company was mulling an expansion of plant capacity by a further 14% so it can process at least 175 lakh liters of milk every day.

The company’s growth strategies in the coming years will be centered on the SAARC region and the Middle East.


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