New Delhi: The Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), which markets milk and dairy products under the Amul brand, said that it will grow at 20% in 2019-20 on the back of milk-based products and ethnic flavours.
“In April, we have grown by more than 22% and we are expecting growth of 20% in 2019-20. Last year, we registered 13% growth purely on volume basis, as there was no increase in product prices. This growth will be driven by increase in purchasing power, better power infrastructure, which will lead to sale of chilled products in rural areas, and no increase in prices,” said R.S Sodhi, managing director, GCMMF, on the sidelines of a sponsorship event. Amul announced that it will be the sponsor for the Afghanistan cricket team for the ICC World Cup.
The company reported a total turnover of ₹33,150 crore, growing at 13% in 2018-19.
Apart from its dairy business, which is growing at 14%, Sodhi said milk-based products such as lassi and shakes are growing at 15-20%. The recently launched fruit beverage brand ‘Tru’ is registering 12-15% growth.
“We have witnessed a change in the consumption pattern of Indian consumers as they are demanding localized products and ethnic flavours. They feel such products are fresh, meet their taste requirement and are affordable. Our ambition is to become a ‘city brand’ in the consumer mind space. In the food segment, people want local brands. We are offering lassi, sweet yoghurt and buttermilk, which is growing because of high demand,” added Sodhi.
Amul has been selling more than 25 variants of shakes, lassi, and flavoured milk. The company, which launched Tru range of fruit beverages with a base of milk solids in four flavours, plans to make a big splash in the category, with increasing number of consumers moving away from carbonated drinks.
Allaying fears regarding a slowdown in consumption growth, as is evident in the March quarter results of some large fast-moving consumer goods (FMCG) companies, Sodhi said Amul is not worried on a demand slowdown.
“With income levels increasing, the first category any household will spend on is food and FMCG products. High-end product categories might witness a slowdown, but not food consumption.”
The company will invest ₹600-800 crore this year to boost its manufacturing capacity and research, and to maintain its market share.
