India needs a second White Revolution: GCMMF Chairman
Gujarat Co-operative Milk Marketing Federation Ltd., (GCMMF) which markets the popular Amul brand of milk and dairy products has registered a turnover of Rs. 33,150 Crores for the financial year 2018-19 which ended on 31st March 2019. The sales turnover achieved by GCMMF is 13% higher than the previous financial year.
The mantra of rapid expansion has yielded rich dividends with the Amul Federation’s sales turnover increasing more than 4 times, from Rs. 8,005 crore in 2009-10 to Rs. 33,150 crore in 2018-19. Results of the apex body of dairy cooperatives in Gujarat were declared on 28th May 2019, in the 45th Annual General Meeting of GCMMF.
In fact, the group turnover of GCMMF and its constituent member unions, representing unduplicated turnover of all products sold under Amul brand is exceeding Rs. 45,000 crores or US$ 6.5 Billion. GCMMF aims to achieve a business turnover of Rs. 50,000 crore and become the largest FMCG organization in India by 2020-21. In the long-term, Amul aims to establish itself as the largest dairy organization in the world, rising up from its current ranking as the ninth largest dairy organization globally to top three.
Ramsinhbhai P Parmar, Chairman, GCMMF informed that during the last nine years, our milk procurement has witnessed a phenomenal increase of 153%. This enormous growth was a result of the high milk procurement price paid to our farmer-members which has increased by 105% in this period.
He further added that considering the urbanization and population growth estimates, it is envisaged that India needs around 600 million metric tonnes of milk per year (65 crore liters per day) in the year 2050-51 from current level of 176 million metric tonnes per year (48 crore liters per day) to fulfill the demand for milk and milk products. This means that India’s milk production needs to grow at around 3.2% CAGR for the next 40 years. This can be possible only when dairy farmers are given stable and remunerative prices through proper market linkage. In order to achieve this estimated growth in demand, the time is ripe for the Second White Revolution in India.
Jethabhai Bharwad, Vice Chairman, GCMMF has informed that for the last 21 years, India continues to be the largest producer of milk in the world and is likely to retain its prime position with an annual growth rate of 5.5% during the last three to four years as against global milk production, which is growing at 2.0%. India contributes almost 50% of the global growth in milk production. The monetary value of milk produced in India is around Rs. 7 lakh crores which is more than which is more than the total value of all pulses and grain put together.
R S Sodhi, Managing Director, GCMMF, emphasized that with double digit value growth in consumer products during last five to six years, we were among the fastest growing FMCG organisations in India. Amul’s success has been driven by its ‘3E’ mantra – Rapid expansion in milk procurement, rapid expansion in manufacturing facilities and rapid expansion in marketing & distribution network. He added we have already upped our total milk processing capacity to 360 lakh litres per day and planned for a 400 lakh litres per day expansion within the next two years. In Gandhinagar, Gujarat, AmulFed Dairy’s capacity expansion from 35 lakh litres per day to 50 lakh litres per day further underlines its status as the largest dairy factory in India.
Several brand new dairy plants have already been commissioned in different parts of India in the last couple of years. These include, two eight lakh litres per day capacity plants – one at Taloja, Navi Mumbai; and the other at Navapura near Ahmedabad– and another two lakh litres per day capacity plants in Junagadh and Porbandar. We are also expanding our milk powder manufacturing capacity at Himmatnagar. Our new chocolate factory has boosted our production capacity to 1,300 MTs per month, enabling us to launch several new and unique flavoured chocolates which have been attracting huge interest from chocolate lovers and being received favourably by consumers.
Sodhi further added that Indian dairy farmers can look forward to golden days ahead with dairy commodity prices firming up over the last three- four months. Shri Sodhi said innovation is key to our success. We have introduced as many as 102 new products in the last four years, with 48 products being revealed in just the last two years, exceeding our target of launching two new products every month.
After Annual General Meeting, On behalf of 36 lakhs milk producer members of Gujarat, Shri Ramsinh Parmar and Shri Jethabhai Bharwad has conveyed his sincere gratitude to Government of Gujarat and Government of India for their continues and timely support for various scheme related to producers.
Source : indiancooperative