New Delhi, May 08 : Gujarat Co-operative Milk Marketing Federation (GCMMF) that owns food brand Amul is anticipating a 20 percent growth in FY20.
According to a Mint report, the company is backing ethnic drinks stimulated by improved power infrastructure and increased purchasing power to boost turnover, especially in rural areas without a hike in price.
“Last year, we registered 13 percent growth purely on volume basis, as there was no increase in product prices. This growth will be driven by an increase in purchasing power, better power infrastructure, which will lead to the sale of chilled products in rural areas, and no increase in prices,” said RS Sodhi, Managing Director, GCMMF at a sponsorship event.
The company is already on track to achieve the earmarked target as it registered a 22 percent increase in turnover in April.
The company reported a total turnover of Rs 33,150 crore, growing at 13 percent in 2018-19.
According to Sodhi, Amul branded cold beverages such as lassi and shakes are growing at 15-20 percent and could catapult the overall turnover to the set target.
Moreover, the newly launched fruit beverage brand ‘Tru’ has been registering a 12-15 percent growth.
“We have witnessed a change in the consumption pattern of Indian consumers as they are demanding localized products and ethnic flavours. Our ambition is to become a ‘city brand’ in the consumer mind space. In the food segment, people want local brands. We are offering lassi, sweet yoghurt and buttermilk, which is growing because of high demand,” added Sodhi.
The dairy company is currently selling around 25 flavours of ethnic beverages and with the launch of Tru range of fruit beverages, it is hopeful of swaying more consumers, who are looking for a healthier option instead of carbonated drinks, this summer.
Reports suggest GCMMF will pump in around Rs 600-800 crore this fiscal to boost its manufacturing capacity and research, and to maintain its market share.
