Amul maker to invest Rs. 3,000 cr over 5 yrs to boost capacity | business | Hindustan Times
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Amul maker to invest Rs. 3,000 cr over 5 yrs to boost capacity

business Updated: Sep 13, 2012 01:54 IST
Debobrat Ghose
Debobrat Ghose


Gujarat Cooperative Milk Marketing Federation (GCMMF), that manages and markets the brand Amul, has planned to invest Rs. 3,000 crore in the next five years in capacity expansion and exploring new territories outside Gujarat.

"GCMMF will open five processing plants outside Gujarat and four in the Saurashtra region and explore new marketing territories in Jammu and Kashmir, Chhattisgarh, Rajasthan, Madhya Pradesh and may be in the northeast states," said chairman, GCMMF, Vipul Chaudhary.

Apart from going for 25% to 30% capacity expansion of its 40 existing plants, the nine new plants will come up in Delhi and NCR, West Bengal, Kanpur and Saurashtra region. The federation has poised to handle 125 lakh litre of milk per day in 2012-13 and increase it to 200 lakh litre by 2020.

The federation, whose seed was sown 66 years ago, will re-strategize and reposition itself to compete with other domestic and multi-national brands.

As a tribute to legendary Dr Verghese Kurien – the father of white revolution and the icon behind Amul's phenomenal success, who died on September 9, Chaudhury wants to take Amul model a step forward from three-tiered to four-tier structure. The existing model has dairy cooperative societies at village, district and state levels.

"As Dr Kurien wanted the nation to be benefitted by the Amul brand, we're planning to have a fourth tier at the centre level, so that Amul can eventually become an umbrella brand to several other cooperative brands," chairman said.

Chaudhary said GCMMF has been in Gujarat for over five decades, but in many states where cooperatives do not have a strong presence the MNCs may have a foothold there.

"So, in this case, we want to have Amul as an umbrella brand and extending our services and products to these areas," he said.

"We also want to ensure 24 hours availability of our latest product Amul Moti pouch, which is cheaper to tetra-pack milk packets, but little higher than fresh milk but needs no refrigeration and has a shelf life of 90 days," he said.

Amul's latest product ultra high temperature (UHT) homogenized toned milk Moti has no chemical or preservative added to it and can be kept for 90 days without refrigeration.

"It'll be in Delhi market by first week of October," Chaudhary said.

The federation wants the ministry of agriculture to decide on milk pricing like minimum support price in rice, wheat and other commodities.

"I'll be meeting the agriculture minister and take up this issue, and also request the government to consider Dr Kurien's name for awarding Bharat Ratna to him," added Chaudhary.