Amul’s Bold Gamble Navigating Risks and Seizing Opportunities
In the heart of New York’s bustling Times Square, a unique campaign has caught the eye of half a million people – “Be More Milk.” This 15-second message, playing 20 times an hour and 480 times daily, might seem unexpected in such a cosmopolitan setting. Still, it’s an initiative spearheaded by none other than Amul, one of India’s most iconic brands. Amul’s Bold Gamble This campaign serves as a testament to Amul’s enduring commitment to the cause of milk and marks the dairy giant’s ambitious foray into foreign markets.
Amul, owned by the Gujarat Cooperative Milk Marketing Federation (GCMMF), is a name that resonates with trust and quality. Amul’s Bold Gamble In FY23, GCMMF reported a remarkable turnover of Rs 55,070 crore, reflecting an impressive growth of over 18 percent from the previous year. The vision for FY26 is set even higher, with a target of Rs 1 lakh crore in turnover. The group turnover, encompassing all products under the Amul brand, exceeded Rs 72,000 crore last financial year. While milk and milk products continue to contribute to the lion’s share of GCMMF’s revenue, the cooperative giant is now eyeing expansion into new business areas.
A Shift Beyond Dairy
The dairy industry and food production are inherently different businesses, each presenting unique challenges. India stands as the world’s largest producer of milk, with its dairy sector surpassing the combined worth of wheat, paddy, and oilseeds, amounting to a staggering Rs 10 lakh crore. Amul’s strength lies not only in its dairy prowess but also in the trust it has garnered over the years.
The pivotal moment for Amul came when it began exploring the realm of “organic.” Amul presented the concept of going organic to its farmer cooperatives, promising to find markets for their produce. To consumers, “organic” signifies products free from harmful chemicals, a promise that resonates deeply. Amul’s Bold Gamble This move aims to extend beyond milk and dairy and venture into other kitchen essentials, including whole wheat atta, basmati rice, chana dal, toor dal, rajma, and plans for turmeric, spices, sugar, and jaggery.
Amul’s decision to embrace organic foods prompts the question: why didn’t they enter this space earlier? According to Jayen S. Mehta, Amul’s Managing Director, the time is ripe for scaling up and diversifying. The COVID-19 pandemic has brought about significant changes, Amul’s Bold Gamble leading Amul to innovate and tap into new opportunities. Amul’s success in the probiotics category, becoming the largest probiotic brand globally and selling three million liters of pouched chaos every day, has instilled confidence in their ability to venture into new territories.
A Journey Beyond Dairy Products
Amul’s new journey transcends traditional dairy products, presenting a diverse portfolio that includes over 35 varieties of sweets, chocolates, and beverages. Their product range encompasses marzipan, frozen kheer, and a soon-to-be-launched dodha barfi. Amul’s Bold Gamble Cold coffee in a glass bottle has found its place in the premium coffee market, a new niche following the success of the more affordable Kool in a can. Amul has also established the Amul Ice Lounge, an ice cream-centric venture offering 15 international flavors at an attractive price point.
Moreover, Amul is determined to democratize the organic food segment, making it accessible to all. Amul’s Bold Gamble They plan to source directly from farmer-producer companies (FPCs), Amul’s Bold Gamble empowering both farmers and consumers. Amul’s commitment is not only to provide a range of organic products but also to sell the concept of organic living. They intend to buy the complete produce from farmers, offering consumers a wide array of options, including an organic paneer paratha made with organic atta.
Amul’s deep-rooted connection with farmers extends to diverse product categories. The company established a plant in Gujarat for French fries, which has been a resounding success, with a substantial portion being exported to Japan. In response to high peanut production, Amul introduced peanut butter variants.
A Brand Built on Trust and Quality
Amul’s marketing philosophy has been grounded, straightforward, and product-centric. They’ve never relied on celebrity endorsements, and their success has been driven by their commitment to quality and the integrity of their products. Amul’s Bold Gamble The co-operative model ensures that farmers receive a fair price while consumers enjoy affordable products. Amul’s ability to manage the supply chain, maintain product quality, and uphold product integrity has set it apart in the food industry.
Amul is well aware of the limitless potential in India’s dairy sector. Srideep Kesavan, CEO of Heritage Foods, acknowledges the significant opportunity presented by the country’s per capita consumption of milk products, which is only around 350 grams, less than half of many Western countries. He predicts that packaged milk consumption will continue to grow, driven by urbanization. Additionally, value-added dairy products are experiencing rapid growth and penetration, driven by consumer demand for cleaner, packaged options.
**Looking to the Future: Amul’s
