The Gujarat Cooperative Milk Marketing Federation (GCMMF) which produces popular dairy products under the Amul brand has stated that it has grown a staggering 187% in the last six years. In the last three years itself, Amul registered a growth of 67%.
The Amul Story
The GCMMF was founded in 1946 to give dairy farmers the chance to control the sale of their own products following a milk strike. The GCMMF went on to establish the Amul model, which includes a direct link between milk producers and consumers, professional management as well as giving farmers the control of procurement, processing and marketing. Today, Amul works with farmers to create a range of dairy products including butter, fresh cream, ghee, cheese and packaged milk.
The Amul model helped India become one of the world’s largest milk producers; it’s processed across 194 district co-operative unions and marketed by 22 state marketing federations. There are 15 million member producers across India.
Amul’s revenue and reach has been rapidly expanding over the past couple of years. In the year 2015-16, it clocked in a turnover of Rs.23,004 crore. Additionally, Amul has helped double the income of farmers it is involved with over the last six years.
Commenting on the growth, the GCMMG Chairman Jethabhai Patel said “during the last six years, our milk procurement has witnessed a phenomenal increase of 87 per cent. This enormous growth in milk procurement was a result of high milk procurement price paid to our farmer-members which too has increased by 90 per cent during this period.”
Indeed, a recent report from Euromonitor recently found that Indian consumers prefer domestic brands over international brands. The report said that Amul is currently at the head of the packaged food market in India with 7.2% retail value shares.