Amul Dairy's plant in Anand, in Gujarat. © Shankar Narayan/Wikimedia
India’s Gujarat Co-operative Milk Marketing Federation (GCMMF) plans to invest the equivalent of almost $390 million over the next three years to expand the processing capabilities of its Amul brand.
The cooperative will invest INR 25 billion overall, including at least $124 million a year in constructing new processing plants to help meet the increased output.
It plans to grow Amul by 20% in the current fiscal year to become the biggest FMCG company in India by 2018-19, overtaking Hindustan Unilever, according to managing director R S Sodhi.
The company currently sources 20 million litres of milk a day but will need to increase this by 13-14% in order to achieve the growth target.
That will include sourcing a greater proportion of its milk from outside its traditional market of Gujarat, in the west of the country, including procuring milk for the first time from the states of Bihar, Jharkhand, Tamil Nadu and Kerala.
This will increase the amount of milk procured from outside Gujarat beyond the current level of around 15%.
GCMMF posted turnover of INR 270.85 billion ($4.19 billion) in the 2016/17 financial year, up 18% from the year before.
© FoodBev Media Ltd 2017