While many consumer goods firms are seeking opportunities in India, domestic dairy cooperative dairy Amul is seeking American partners as part of a bid to meet overseas demand for its products.
Despite its massive domestic market, where there are still many opportunities, Amul sees a good future abroad. Amul dairy, part of Gujarat Cooperative Milk Marketing Federation (GCMMF), registered total sales of R9,774 crore during 2010-11 of which exports contributed a tiny R100 crore, this despite a government ban on the export of milk powder since early 2011.
Amul is aiming to double exports in the next one year.
“We already export a number of Amul products to the US and other global markets,” said RS Sodhi, managing director, GCMMF. “While the focus is on domestic expansion there is an opportunity to leverage the Amul brand equity in global markets.”
Amul executives are currently looking at tie-ups with American dairy farms to manufacture Amul products based on the cooperative firm’s guidelines. Having a facility abroad will help Amul cut logistics costs and shipping time.
At present Amul exports products such as ghee, butter, cheese, paneer, gulabjamun and others to this market.
“The market for Indian products is picking up,” said Devendra Shah, chairman, Gowardhan. “Most of the buyers are Asians but natives too are picking up our brands with more presence in sales outlets, especially modern stores.”
While India’s dairy exports are still small, estimates suggest the country will triple its dairy production in the next three years, in which the share of exports will be substantially higher as compared to the present.