Dairy giant expects its turnover to cross Rs6,700 crore mark in the current financial year

The Gujarat Co-operative Milk Marketing Federation (GCMMF) expects its turnover to touch the figure of Rs6,700 crore in the current fiscal with a growth rate of around 26%, against 22% increase recorded in the previous year. The average of daily milk procurement by the federation has also witnessed a significant rise of around 40% and amid global recession, exports are also set to witness a marginal increase.

At a time when companies are reeling under pressure due to ongoing slowdown in the Indian economy, GCMMF is set to become a trendsetter by posting higher growth in its total sales. In 2007-08, total sales of the federation, which markets milk and milk products under Amul brand, grew by 22% to Rs5,300 crore. In 2007-08, the sales figure is expected to jump by over 26% to Rs6,700 crore.

The average milk procurement per day has also increased. In 2007-08, total milk procurement by member unions averaged 7.6 million kg per day, which has increased by over 40% to around 11 million kg per day this year. "The sale of liquid milk has gone up which has helped us in increasing our turnover in this fiscal," said managing director of GCMMF, BM Vyas.

The current economic slowdown has affected all exporting companies.

"But in our case, export has also increased. The volume of exports is very low. Of the total turnover of Rs6,700 crore, exports will contribute less than 2% at around Rs130 crore," said Vyas. In 2007-08, total exports of the federation was around Rs125 crore while in 2006-07, it was around Rs60 crore.

With 30 plants and 13 union dairies in Gujarat, the federation has milk processing capacity of 10 million litres per day. As the population of the state and country is rising, the demand for milk will also continue to rise.

"There is neither shortage nor fall in demand for milk," said Vyas. The federation is exporting consumer packs of milk and milk products to more than 30 countries, including the US, West Asia, Japan, Australia, Singapore and Bangladesh.

"We are exporting to those countries where Indians are residing," said Vyas.

GCMMF has more than 3,000 distributors in small towns across the country to ensure availability of Amul products across India, whether it is in Leh or Lakshadweep, in Kutch or Arunachal Pradesh. Simultaneously, to augment milk distribution in various markets of India, more than 1,400 exclusive milk distributors have been inducted.

DNA Correspondent/ DNA-Daily News & Analysis Source: 3D Syndication