Amul expects 20% revenue growth in FY24; no plans to hike milk prices for now

GCMMF, which sells dairy products under the Amul brand, is expecting 20 per cent growth in its revenue this fiscal to around Rs 66,000 crore on rising demand, its MD Jayen Mehta said.

Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF) registered a turnover of Rs 55,055 crore in 2022-23, up 18.5 per cent from the previous year.

In an interview with PTI, the GCMMF MD (in charge) said it had clocked a strong growth in revenue last fiscal, as demand for branded dairy products rose significantly post-Covid.

“We expect the sales momentum to continue across our product portfolio. Demand is shifting from unorganised to organised players,” he said.

Mehta said the federation is also focusing on growing organic food and edible oil businesses, which are currently very small.

Asked about milk prices, Mehta said, “We have no plans to increase rates as of now”.

He pointed out that input cost has risen by 15 per cent in the last one year, forcing the cooperative to hike retail prices to some extent last year.

GCMMF did not hike prices in 2020 and 2021 because of Covid, he said, adding that rates were raised a few times last year.

GCMMF passes on around 80 per cent of retail prices to dairy farmers.

Mehta said the GCMMF’s milk procurement increased in March and will rise this month as well.

“Farmers are getting good prices. So, milk supply is improving,” he said, the flush season will also start soon in South India, which will boost supply.

Mehta noted that the demand rose sharply in 2022 post-Covid and the trend would continue, although the pace of growth should moderate this year on base effect.

He also said the demand-supply situation would remain balanced in near future.

GCMMF currently has 98 milk processing plants across the country with an installed capacity of 470 lakh litres per day. It is collecting on an average of 270 lakh litres per day.

The federation will expand capacity by 30-40 lakh litres per day in the next two years, the MD said.

In the last fiscal, GCMMF reported 21 per cent growth in fresh products, which contributes 50 per cent to its turnover.

Ice cream range grew by 41 per cent.

“We have achieved volume sales growth in all product categories. Pouch milk, which is the highest turnover product, has shown volume growth in double digits. Apart from this, our products like butter, ghee, Ice Cream, UHT milk, flavoured milk, paneer, and fresh cream have also shown double-digit growth,” Mehta had said recently.