Indian milk brand Amul beats pandemic odds to record 2% growth in revenue for FY21

INDIA – The Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), which markets dairy products under the Amul brand has beaten all odds to record a 2% rise in revenue for the 2021 Financial Year (FY21).  

According to a statement released by R S Sodhi, Managing Director at GCMMF, the cooperative’s total turnover rose to Rs 39,200 crore (about US$5.2 billion) from Rs 38,550 crore (about US$5.189 billion) recorded in the same period last fiscal year. 

During FY21, Sodhi said the company benefitted from a rise in demand for its branded consumer products like fresh milk, cheese, curd, buttermilk, and paneer which resulted in an 8.5-9 percent increase in turnover for these products. 

Additionally, household consumption of milk and other dairy products remained strong helping boost sales.  

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Despite the good performance of the above segments, Amul did not escape the pandemic unscathed as some of its products were adversely impacted by the pandemic.  

Sodhi said sales of ice cream were down 35 percent last fiscal mainly because of the nationwide lockdown during summer. 

He added that the commodity business of products like skimmed milk powder (SMP) was also impacted. 

Demand from hotels, restaurants, and cafeterias (HoReCa segment) was severely affected as people stayed away from these establishments, preferring to enjoy their meals at home. 

As the Asian nation recovers from its worst wave of covid-19, the GCMMF managing director is hopeful that sales will improve 

“We expect to return to higher double-digit growth during the current fiscal year,” Sodhi said. 

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Earlier, Amul raised milk prices by Rs 2 per liter with effect from July 1 noting that the move was compelled by higher input costs. 

The company noted that the price evaluation is necessary for sustaining remunerative milk prices to our milk producers and to encourage them for higher milk production 

This is the first time Amul is reviewing its fresh milk prices in 1.5 years and the review reflects the rising cost of consumer goods due to higher transportation, packaging, and logistic costs. 

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