Throughout the last decade, Jayen Mehta, Managing Director of Amul, oversaw an impressive 15-18% growth rate across the dairy sector. This growth was driven by both the increase in demand post-COVID and strong value and volume growth. Topics such as taking charge as the new MD, direction of Amul for the next decade, and increase in prices were discussed to give a better understanding of the current dairy industry.
Amul is a 76-year-old brand renowned for its contribution to the Indian dairy industry. As a cooperative organisation celebrating 50 years this year, it has enabled the success of 36 lakh farmers, becoming the largest FMCG brand in the country with a turnover of Rs 72,000 crores.
Jayen Mehta has been with Amul for 32 years and is confident that this growth will not only continue but also accelerate in the coming years. They are confident of achieving this through the growth of their portfolio and product range, with focus on the development of organic products, and the expansion of the cooperative network across the country.
More importantly, they are supporting two multi-state cooperatives, one for exports and the other one for organics, to help cooperatives build an international market access for their products. Amul also plans to have 200,000 more dairy cooperative societies across India in the next five years, in addition to the 2 lakh current societies.
As for increasing prices, Jayen mentioned that the retail prices are in line with inflation. Although, due to the COVID-19 pandemic, producers have to be compensated for the increased cost, which has led to a price increase in dairy products. Surprisingly, the situation of the dairy industry across the country is quite good and incoming flush season from the northern and southern parts of India will yield more production thus leading to a better market for suppliers.
Amul is committed to providing high-quality products with emphasis on value to users, and undoubtedly this outlook for their growth looks positive for the future.