Amul to Double Chocolate Plant Capacity Amid Surging Demand (Image Source: iStockphoto)
Amul, India’s leading dairy cooperative, is set to double the capacity of its chocolate plant. Jayen Mehta, Managing Director of the Gujarat Cooperative Milk Marketing Federation (GCMMF), shared that the expansion follows an earlier five-fold increase in capacity when Prime Minister Narendra Modi visited Mogar in 2018. The current capacity, achieved within two years, has already been exhausted, prompting the new expansion initiative that has been underway for the past year.
Mehta highlighted Amul’s extensive distribution network, noting its significant penetration into rural areas. “A few years ago, we were not present in towns with populations of 5,000 to 10,000. Now, we are deeply entrenched in these areas. Our value-for-money pricing in small packs is driving this demand,” Mehta explained.
According to The Economic Times report, Mehta projected a revenue of Rs 80,000 crore for the fiscal year ending in March, up from last year’s turnover of Rs 72,000 crore for the Amul brand. GCMMF’s turnover is also expected to exceed Rs 60,000 crore, up from Rs 55,000 crore last year. “We are managing double-digit growth and will continue to build on this momentum in the coming years,” Mehta stated.
Amul recently celebrated the golden jubilee of GCMMF, an event attended by Prime Minister Modi. The Prime Minister’s vision for Amul to become the world’s best and strongest dairy brand serves as inspiration for the cooperative’s 3.6 million farmer members. GCMMF operates across 18,600 villages, making it the world’s largest farmer-owned cooperative. This extensive reach underpins the high expectations placed on the organisation.
The current summer season promises further growth, particularly in ice cream, which saw a 25-30% increase last year despite a less favourable summer. This year, normal summer conditions are expected to boost sales across various product categories. “February was quite good, and the first two weeks of March have shown promising results,” Mehta concluded, expressing optimism for continued growth.
