While many FMCG companies reported slow growth rates in FY20 owing to slowdown, the Gujarat Cooperative Milk Marketing Federation Ltd (Amul) has reported a 17% increase in its turnover for the last fiscal 2019-20.
While many FMCG companies reported slow growth rates in the last financial year 2019-20 owing to an economic slowdown, the Gujarat Cooperative Milk Marketing Federation Ltd (Amul) has reported a 17% increase in its turnover for the last fiscal 2019-20. “Gujarat Co-operative Milk Marketing Federation Ltd., which markets the popular Amul brand of milk and dairy products, has registered a provisional turnover of Rs 38,550 crore for the financial year 2019-20 which ended on 31st March 2020,” the company said in a statement on 1 April 2020. The company attributed its double-digit growth rate to “higher milk procurement, continuous expansion in terms of adding new markets, launching of new products and adding new milk processing capacities across India,” GCMMFL added.
Amul’s provisional unduplicated group turnover has crossed Rs 50,000 crore. This is also a jump of significant 17% from last year. Amul Federation has over 36 lakh farmer members who work across 18,700 villages of Gujarat. “Amul Federation has achieved turnover inspite of adverse market condition for dairy products at National as well as at International level,” the company said.
Meanwhile, as the country has been put under a lockdown for 21 days due to the spread of coronavirus, dairy companies are facing headwinds of decreased demand. With restaurants, catering business and tea stalls remaining shut across the nation, Amul has witnessed a 30% decline in demand in the last few days, Managing Director RS Sodhi wrote in The Indian Express recently. The company has not been facing any troubles from the supply side and has been able to procure milk in usual quantities. However, the demand slump because of various other reasons is now threatening a surplus milk situation for the FMCG major, he added. To that extent, Amul has sought government intervention to take stock of the surplus milk situation. Amul, which has seen many lockdowns, curfews and riots in the past, has said that this particular one has brought new set of challenges to the company.