As Patanjali eyes Rs 1 lakh crore sales, Amul sets target of Rs 75,000 crore turnover in three years; dairy major plans to expand in Maharashtra, West Bengal, Bihar and southern states
Patanjali is not the only home-grown fast-moving consumer goods (FMCG) major that is looking to give sleepless nights to multinational companies.
After Baba Ramdev came up with a Rs 1 lakh crore sales target in five years last week, domestic dairy major Gujarat Cooperative Milk Marketing Federation (GCMMF), famously known as Amul, is planning to emerge as the biggest FMCG brand in the country leaving all the multinationals far behind.
By 2021, brand Amul would just shy of a quarter way to the Rs 1 lakh crore turnover mark.
"Our target is that by 2021 the federation would reach a turnover of Rs 50,000 crore. Adding the sales of cooperative societies that own us, the brand Amul would touch Rs 75,000 crore," GCMMF managing director R S Sodhi said.
Amul is already much bigger than Hindustan Unilever Ltd, claims Sodhi.
"GCMMF's turnover of Rs 27,000 crore achieved in fiscal 2017 excludes the sales of Amul brand made by co-operative societies in several districts of Gujarat. So, if you take the turnover of the federation as well as all the societies that sell the brand, Amul's sales would be Rs 38,000 crore," he said.
In FY16, rival HUL posted a turnover level of Rs 32,000 crore and in the nine months to December 2016, it touched Rs 25,122 crore, a growth of 2% over the year-ago period.
The federation has 18,000 village cooperative societies, from which milk is collected by 18 district unions having processing plants and packs them under Amul brand. These unions first sell these Amul products through their separate entities within the districts and the balance is handed over to the federation for selling all over India.
"When I took over as MD in 2010-11, our turnover was Rs 8,000 crore. And in the last six years, we have multiplied three-and-a-half times. Growing in the dairy industry is not a problem because of the industry opportunities."
Amul plans to reach the Rs 75,000 crore mark by rapidly expanding to and strengthening the brand in those market so far remained neglected like Maharashtra, several eastern states like West Bengal, Bihar and Jharkhand and particularly the southern region.
"In Maharashtra, we are putting up two processing plants, one near Mumbai and another in Pune. We are also setting up plants at Dhulagarh in West Bengal and one in Jharkhand. In South, we plan to expand beyond Andhra Pradesh to all the other states where we aren't present," he said.
But it's not that the competition is sitting idle.
The maverick yoga guru Baba Ramdev wishes to take Patanjali Ayurved to the stratospheric level of Rs 1 lakh crore revenue by 2020.
ITC Ltd plans to take its non-cigarette FMCG revenue base of Rs 1 lakh crore by year 2030 under its new leadership of Sanjiv Puri.
GRAND DREAMS
- Rs 1 lakh crore
sales Patanjali is targeting in the next five years
- Rs 50,000 crore
GCMMF is eyeing on standalone basis by 2021
- Rs 1 lakh crore
non-cigarette FMCG revenues ITC is eyeing by 2030
...& ANALYSIS
- Amul plans to reach the Rs 75,000 crore mark by rapidly expanding in under-explored markets
- It plans to tap markets like Maharashtra, several eastern states like West Bengal, Bihar
- In fiscal 2016, rival Hindustan Unilever posted a turnover level of Rs 32,000 crore
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