Amul reaps a creamy profit of Rs. 27,085 crore
Dairy-major Amul has reported a 18% hike in its turnover, raking a profit of Rs. 27,085crore for the 2016-17 fiscal. Gujarat Co-operative Milk Marketing Federation which runs Amul said that the brand has scaled up 3.5 times in the last seven years. Amul is perhaps the true-blue example of an Indian success story which rakes steady gains. Here is a look at its journey.
The secret of being a giant success
GCMMF said that they have been able to manage a compound annual growth rate (CAGR) of more than 20% for the last seven years. They attribute their success to higher milk procurement, meticulous expansion by including new markets, launching of new products to stay ahead of the curve and expanding by setting-up new production facilities in India to meet the needs of their consumers.
Not slowing down anytime soon
According to MD, R.S. Sodhi of Amul, demonetization has failed to have any adverse effects on their operations. The co-operative now aims to scale up its milk processing production up to 380 lakh litres per day, from the 300 lakh litres it produces currently. The firm aims to achieve sales turnover of Rs. 50,000 crore by 2020-21.
How did Amul escape the demonetization effect?
Amul, managed to bypass demonetization effect by paying the milk producer members directly into their bank accounts. 60% of its milk producer members have bank accounts and they took the necessary steps to ensure that others followed. GCMMF makes Rs. 450 crore payoff on a weekly basis to 36 lakh milk producers spread out in 18,500 milk cooperatives in Gujarat.
Desi-brand gets a US presence via Amazon
Thanks to Amazon's Global Selling Programme outreach, USA will now get to have a taste of Amul's Ghee and Gulab Jamun. The e-commerce platform plans to include products like cheese and butter eventually to the list. Amazon aims to tap into 30 lakh Indian NRIs that currently reside in various part of USA.
Amul girl, the face of a native brand's success story
Over the years Amul girl has been a success story in advertisement for its witty take at prevalent issues. When she tweeted birthday wish to PM Modi last year, he replied, "Thank you. Your sense of humour has always been widely admired."