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With small packs, Amul eyes rural markets

To cater to the low income group consumers in the rural markets, India’s largest milk cooperative, Gujarat Cooperative Milk Marketing Federation (GCMMF) is planning to introduce small size packs

In order to cater to the low income group consumers in the rural markets, India’s largest milk cooperative and the producer of Amul brand dairy products, Gujarat Cooperative Milk Marketing Federation (GCMMF) is planning to introduce small size packs.

According to a Business Standard report, the Anand -based dairy cooperative, Amul is going to launch low cost packs of milk, curd, ghee along with other dairy products, ranging from Rs 10, Rs 20 an even smaller packs to cater to the rural consumers.

Amul’s products have been available in metros, tier-2 and tier-3 cities, but the emerging rural markets are yet to be tapped by the brand.

The report has quoted GCMMF managing director, RS Sodhi as saying, “There is a big market in rural India. With our unique quality and taste, our dairy products are becoming very popular among rural consumers. Hence, we are planning to launch smaller packs to address this demand.”

The company is selling Amul dairy products such as curd and ghee in half- and one-litre packs in the urban and semi-urban markets. But, there has been huge demand for such products in Rs 20 and Rs 10 pack size as rural consumers are more price-sensitive.

According to Sodhi, while product quality will remain the same, only pack size will differ for rural consumers, who they are not willing half- or one-litre packs as the entire quantity is not consumed at once.

GCMMF has reported consistent growth in turnover the past few years. The firm, which sells milk and milk products, has posted a 13 percent increase in its standalone turnover to Rs 33,150 crore for the financial year 2018-19. Its consolidated turnover was also up 13 percent to over Rs 45,000 crore.

Pouch milk which generates the highest turnover reported growth in almost all markets of its presence. Amul also launched value added products like flavoured milk, chocolates, fruits-based Amul Tru, camel milk and an entire new kulfi range recently to fuel its growth.

Amul Federation, the milk collection arm of GCMMF, has 18 member unions with around 35 million litres of milk processing capacity. The Federation plans to increase its milk processing capacity to 35-38 million litres. The company has more than 3.6 million farmers registered across 18,700 villages in Gujarat and procures around 23 million litres of milk every day. Its milk procurement capacity has grown by 10 percent in the financial year 2018-19.

Read more: Dairy should be given relaxation from taxation

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