In a significant move, the Gujarat Cooperative Milk Marketing Federation (GCMMF), renowned for its Amul brand of dairy products, is embarking on an expansion journey with a strong focus on premium offerings. The cooperative’s endeavor includes the establishment of upscale ice cream parlors across India, with plans to open 100 Amul Ice Lounge stores in the fiscal year 2024.
Jayen Mehta, the in-charge managing director of GCMMF, announced the cooperative’s expansion strategy, which not only involves the introduction of premium ice-cream lounges but also the upcoming launch of organic tea and spices to cater to the escalating demand for such products.
“We’re introducing exclusive ice-cream lounges that bring the finest flavors from around the world to a sophisticated ambiance. While we have already inaugurated five stores – four in Ahmedabad and one in Jaipur – we’re gearing up to unveil more in Mumbai and Delhi. By collaborating with some of the best malls in India, we are poised to achieve our target of 100 outlets within this fiscal year. Moreover, our global expansion plans are underway, aiming to establish numerous parlors internationally,” Mehta shared.
Although Amul has enjoyed a substantial market share in the mainstream ice cream segment, this strategic move marks its entry into the premium segment. The Amul Ice Lounges are currently being established through internal funds, while the franchise model is also available for entrepreneurs seeking lucrative investment opportunities. The premium nature of these offerings is reflected in their pricing, with scoops of ice cream set to be available for ₹200.
This ambitious stride puts the dairy cooperative in direct competition with renowned ice cream brands such as Baskin Robbins and Naturals, signaling a new era of competition and innovation in the premium ice cream market.
In a recent announcement, GCMMF reported an impressive group turnover of ₹72,000 crore for the fiscal year 2023. The report highlighted remarkable growth figures, including a 34% increase in the milk-based beverages business compared to the previous year, a notable 40% surge in the ice-cream division, a 19% rise in Amul butter sales, and over 9% growth in ghee consumer packs. The cooperative also witnessed substantial growth in long-life milk (20%), dahi (40%), and fresh buttermilk (16%).
However, challenges emerged as unseasonal rains over the past two months dampened the demand for GCMMF’s beverages and ice cream portfolio, causing a temporary setback.
Simultaneously, the Union cabinet’s approval for the establishment of a national-level cooperative society for organic products has paved the way for GCMMF’s involvement as one of the five promoters of this initiative. The cooperative is set to leverage this opportunity by introducing a range of organic products. Mehta shared, “We have already introduced 9-10 products in the Amul organic range. This month, we are excited to launch organic chai (tea) and a variety of organic spices.”
In conclusion, GCMMF’s strategic expansion into premium offerings and its proactive approach to organic products not only reflect its commitment to catering to evolving consumer preferences but also underscore its determination to maintain its leadership position in the dairy industry.
