Amul becomes 1st Indian FMCG company with ₹1L crore turnover
What's the story
Gujarat-based dairy giant Amul has achieved a major milestone by becoming the first Indian fast-moving consumer goods (FMCG) company to cross ₹1 lakh crore in turnover. The achievement comes at a time when many consumption-driven companies are struggling with demand. Jayen Mehta, the Managing Director of Amul, attributed this success to decades of steady growth supported by a strong farmer network and continuous product innovation.
Growth strategy
Focus on expanding reach
Mehta emphasized that Amul has always focused on expanding its reach, from strengthening milk procurement at the village level to building modern processing facilities, and a robust distribution network. He said, "This is indeed a milestone achievement for Amul, a cooperative movement which started eight decades back," he said. Despite global uncertainties like rising packaging costs and geopolitical disruptions, Amul has managed to maintain stable operations.
Operational stability
Fuel supply issues and government support
Amul has been largely unaffected by fuel supply issues, thanks to government support. Mehta said cost pressures on packaging are likely to ease over time. Despite the challenges, he remains confident about Amul's growth prospects. The firm has been witnessing strong double-digit growth in both fresh milk and consumer product segments, which is expected to continue.
Market reach
Global expansion and competition
Amul is also expanding its global presence. In the US, the company has started selling fresh milk in several states and is witnessing steady volume growth. Exports of other dairy products are also on the rise, aided by the easing duties. On competition from foreign dairy players entering India, Mehta said that the Centre has kept the dairy sector protected in trade agreements.