Amul's Revenue Surges by 18.5% in FY 2022-23: Plans to Expand Distribution and Product Categories.

In the financial year 2022-23, Amul's revenue increased by 18.5% to reach Rs. 55,055 crores.

According to a statement released on Sunday by the Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), which sells dairy products under the brand name Amul, its revenue increased by 18.5% in the last fiscal year due to stronger demand. GCMMF reported a provisional turnover of Rs 55,055 crore for the financial year 2022-23.

The significant increase in turnover by 18.5% is primarily attributed to the higher demand for branded consumer goods, as stated by GCMMF. The statement further revealed that the fresh products segment experienced a growth of 21%, which accounted for half of the total GCMMF turnover. Additionally, the ice cream range witnessed an impressive growth of 41%.

GCMMF reported that its consumer products, including cheese, butter, UHT milk, milk beverages, paneer, cream, buttermilk, and dahi, witnessed a year-on-year growth of 23%, with growth rates ranging from 20% to 40%.

Last fiscal year, the provisional unduplicated group turnover of member unions belonging to the Amul group surpassed Rs. 72,000 crore (which is equivalent to USD 9 billion), according to the statement.

GCMMF intends to expand its distribution to the top 400 towns based on population, and therefore, it plans to augment its network of 82 branches and warehouses to over 100 in the upcoming fiscal year, 2023-24. The company also plans to increase its number of distributors and retail outlets in these towns.

GCMMF comprises 18 member unions, which have a collective farmer member strength of over 36 lakh individuals residing in 18,600 villages in Gujarat. These unions, on average, procure 270 lakh litres of milk per day.

A network of 98 dairy plants has been established by the member unions of GCMMF to cater to the demand for milk and milk products in the major metropolitan areas of India.

GCMMF has set its sights on becoming India's largest FMCG (Fast-Moving Consumer Goods) company in the food and beverage sector. To achieve this goal, the company is expanding into new product categories such as organic foods, high protein products, probiotic range, and fresh sweets.

Shamalbhai Patel, the Chairman of GCMMF, has asserted that the company has gained considerable advantages as a result of its rapid expansion strategy.

Patel has stated that GCMMF is aiming to achieve a sales turnover of Rs. 1,00,000 crore by 2025, taking into account the projected increase in market demand for Amul products, as well as the company's future marketing efforts. Moreover, the company plans to sustain a compound annual growth rate of over 20% in the next seven years.

The Chairman added that GCMMF's progress will be supported by several factors, such as augmenting its milk procurement, continually expanding into new markets, launching fresh product lines, and setting up additional milk processing facilities throughout India.

Jayen Mehta, the in-charge Managing Director of GCMMF, has affirmed that the company has witnessed growth in sales volume across all product categories. Mehta also highlighted that the highest-selling product, pouch milk, has recorded double-digit volume growth. Additionally, other products such as butter, ghee, ice cream, UHT milk, flavored milk, paneer, and fresh cream have also experienced double-digit growth.