Amul is not just a dairy products brand but a supply-chain company that connects 3.6 million milk producers in India to 135 crore Indians. That's according to Gujarat Co-operative Milk Marketing Federation Ltd.'s Managing Director RS Sodhi.
“Demand for packed dairy products is no longer limited to the metros and cities,” Sodhi told BloombergQuint in an interview. “Now, we are getting the maximum traction from Tier-II towns and smaller villages.”
The country's largest dairy maker has clocked 18 percent year-on-year revenue growth so far in the ongoing fiscal even as it took two price increases across its product portfolio. “This comes as India's dairy industry is growing at 6 percent yearly while branded products are clocking double-digit growth,” he said.
Sodhi also ruled out further price hikes in milk or allied products in the near-term, adding that farmers are now “happy” as the procurement prices increased 30-40 percent after remaining largely flat for nearly four years.
Key Highlights From The Interview
- Consumer price hikes for milk products is less than 3 percent in last three years.
- The processors' and intermediaries' margin has now reduced from hefty levels.
- Time has come for any new player or marketer to focus on their supply chains.
- Half of the revenue growth this fiscal is due to price hikes while the rest is on account of volume growth.
WATCH | GCMMF's RS Sodhi On How FY20 Has Panned Out For Amul So Far
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