The results of the apex body of dairy cooperatives in Gujarat were declared on May 31, 2012, in the 38th annual general meeting (AGM) of GCMMF. The organisation symbolising the taste of India achieved another milestone by crossing the US $2.5 billion mark.
However, this is not the only feat Amul is celebrating. GCMMF paid Rs 9,901 crore to its member unions, represented by 32 lakh farmers. This way, the maximum share of consumers' money earned by GCMMF is being returned to its member farmers.
GCMMF has closed the year 2011-12 with a turnover of Rs 11,668 crore, which is approximately 20 per cent higher than its previous year's turnover, Rs 9,775 crore.
All over the country and world, where farmers are struggling to make their milk business viable in absence of good returns, the farmers of Gujarat are rejoicing over a 58 per cent increase in their milk prices, over the last three years. Member farmers of GCMMF Ltd received a price of Rs 468 per kg of fat for their milk production this year, the highest price being paid to farmers in the country.
The high growth in turnover is also reflected in the performance of its various mega-brands as the organisation has further enhanced its market share in different product categories in spite of tough competition from local as well as multinational players.
GCMMF has done remarkably well in most of the value-added consumer packs. Amul Milk in pouches has shown an impressive value growth of 29 per cent. The sales of Amul Dahi and Amul Buttermilk have grown by a remarkable 41 per cent and 27 per cent respectively.
The sales of Amul Cheese have shown a consistent and impressive growth of 23 per cent. Its dairy whitener brand Amulya too has shown a growth of 26 per cent over the previous year's sales. Amul ice cream has maintained its lead in the Indian ice cream market, leaving its nearest competitor behind by a wide margin.
GCMMF, last year, initiated its largest distribution expansion exercise to extend its reach to smaller towns and semi-urban areas. Apart from the 750 distributors added in dairy and fresh products segment, GCMMF also added 150 super distributors through the implementation of its new 'hub & spoke' model, to reach the smaller markets.
Retailing continues to be an important strategic initiative for GCMMF. During the year 2011-12, 965 new Amul parlours have been added, taking the total strength to 6,315, thus reinforcing the wide popularity of this concept. Apart from the 170 parlours at railway stations and 303 parlours operating at various centres of excellence, Amul also has 600 air-conditioned ice-cream scooping parlours. With this, Amul has emerged as the largest single-brand retailer in the country.
While commenting on the results, Parthibhai G Bhatol, chairman, GCMMF, informed that this year's performance was even more remarkable, considering the shortage of milk GCMMF faced in the first two quarters of the year. With this, GCMMF has recorded a consistent growth rate of 20 per cent over the last five years.
Increased turnover of GCMMF means better returns for its member farmers, for whom this state apex body has been working relentlessly since last 38 years. He also mentioned about the growth plans, as a part of which GCMMF will be investing Rs 3,000 crore to set up nine processing units in next four years. "This would enhance our milk handling capacity to 180 lakh litres per day against current capacity of 145 lakh litres per day," said the chairman.
He emphasised that in order to make India a milk-surplus country and to pay reasonable returns to the milk producers, the government would need to give policy focus to dairy. Dairy today contributes 26 per cent to the total agricultural output, but still receives only 12 per cent of the public expenditure on agriculture. Further, exempting income tax on dairying, like it is in agriculture, and reduced value-added tax (VAT) rates on consumer products which are currently as high as 12.5 per cent would help boost dairy sector and ensure better returns to milk producers and consumers.
Bhatol further informed that GCMMF plans to achieve a turnover of Rs 14,400 crore in the year 2012-13. As the undisputed leader in the organised Indian dairy sector, GCMMF will continue to focus on expanding category penetration and enlarging the consumer bases of the product categories that it operates in.
