Business

Amul’s turnover up 14% at Rs 20,730 crore in FY15

Dairy major GCMMF, which sells milk and other dairy products under the Amul brand, has reported a 14% rise in turnover at Rs 20,730 crore for the last fiscal on the back of growth in its consumer products segment.

Gujarat Co-operative Milk Marketing Federation (GCMMF) had posted a revenue of Rs 18,143 crore in the 2013-14 financial year.

“Our revenue has grown by 14.2% during last fiscal at Rs 20,730 crore,” GCMMF Managing Director R S Sodhi said.

GCMMF’s revenues have grown by over 50% in the last two financial years, he added.

“GCMMF paid 8-10% higher price to farmers during 2014-15 as compared to the previous year,” Sodhi said.

In contrast, the milk procurement prices dropped by 15-20% in the domestic market, he added.

During 2014-15 fiscal, the growth in consumer products segment was 21%. However, revenues dropped by over 70% in bulk commodities like skimmed milk powder (SMP) and ghee due to fall in global prices, Sodhi said.

“Our revenues of bulk commodities declined by over 70% due to drop in prices in international markets. We did not sell much and held back the quantities,” he said, adding that the cooperative would wait for markets to improve.

When asked about milk prices, he said that there would be no immediate increase as supplies have increased by 15%.

Sodhi said expansion of the GCMMF is underway as per the plan. Amul is setting up facilities in different parts of the country to increase milk processing capacity to 320 lakh litres per day in the next two years from the current 230 lakh litre per day.