Amul plans a major investment to enhance its processing and distribution capabilities, aiming for significant growth in revenue.
The Gujarat Cooperative Milk Marketing Federation (GCMMF), the marketer of the Amul brand, announced a significant ₹10,000 crore (~$1.2 billion USD) expansion plan. This investment aims to scale up processing capacity and enhance value-added production and distribution reach.
Amul, already reporting a turnover of ₹90,000 crore (~$10.8 billion USD) in FY25, targets crossing the ₹1 lakh crore (~$12 billion USD) mark within 24 months. The expansion will focus on strengthening its presence in fresh and long-life milk, butter, ghee, paneer, curd, cheese, chocolates, and lactose-free products.
Key areas of investment include new processing plants, cold chain & storage enhancements, and expansion of its retail and digital distribution networks. The recent reduction in GST on dairy items to 5% has provided an additional impetus to organized players like Amul.
The investment also highlights a strategic shift, supported by upcoming GST reforms, that favors organized and tax-compliant players. Amul’s comprehensive approach integrates procurement, processing, logistics, and branding within its cooperative model, aiming to leverage economies of scope and strengthen its competitive edge.
News Courtesy : Dairynews