Amul atta to hit market soon: ITC’s Aashirvaad, Godrej’s Pillsbury, others need to watch out

Updated: Jun 17, 2020 12:16 PM

Gujarat-based Amul is ready to foray into branded atta segment. It is expected that Amul's move to expand its portfolio will raise competition for existing players such as ITC which retails Aashirvaad.

atta, amul, itc, aashirvaadSince many dairy farmers are also wheat growers, and Amul has a connect with 3.6 million farmers, it could forge partnerships with them to procure wheat.

By Prabhudatta Misra

Dairy major Amul is planning a foray into the Rs 15,000 crore –Rs 17,000 crore branded atta or wheat flour market. With a pilot project in Anand, Gujarat, under way, a formal launch can be expected around Diwali, persons familiar with the development said.

While Amul will no doubt leverage its pan India network of 10,000 distributors and one million retail outlets, through which it sells chocolates, cheese and cake, analysts point out the competition could be keen. Among the major players in the branded atta space are ITC Limited which has the lion’s share of the market and sells under the Aashirvaad brand, the Godrej Group which retails Pillsbury and the Adani Group which sells atta under the Fortune brand.

“While the brand is strong, spends on marketing and advertising could nonetheless be high,” an analyst said. Amul typically spends 2-3% of revenues on brand-building efforts.

Since many dairy farmers are also wheat growers, and Amul has a connect with 3.6 million farmers, it could forge partnerships with them to procure wheat. Moreover, at some point there could be a foray into the biscuits segment.

In the four years to FY19, Amul introduced 101 new products or roughly two every month.

Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns the Amul, Amulya and Sagar brand, refrained from commenting on the diversification into the branded atta segment. Amul’s revenues grew 16.1% to Rs 38,550 crore in FY20. In FY19, revenues rose by 13.5% to Rs 33,194 crore while net profits were Rs 52.8 crore, up 8.3%.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Boycott China effect? DPIIT meeting with e-commerce firms on mentioning ‘country of origin’ on each product likely on July 8
2Record low tariff bidding for new solar projects, due to chance coming together of many positives
3TikTok predicts over USD 6 billion loss from India’s ban: Report