'India Is A Priority Market For Amul'

When one talks about dairy products in India, the first name that perhaps comes to mind is Amul. R. S. Sodhi, Managing Director of Gujarat Co-Operative Milk Marketing Federation (GCMMF which owns the brand) Ltd., spoke with The Dollar Business about the USP of the cooperative, the continued relevance of its business model and Amul’s expansion across overseas markets.

- Anishaa Kumar

TDB: When it comes to dairy products, Amul is a well-known name both in India and abroad. What is the secret behind Amul’s success?

R. S. Sodhi (RSS): The Amul brand name that you know has two audiences: our consumers and our farmers or suppliers, and we have been able to gain the trust of both. The reasons for our success has been our business philosophy – ‘Value for Many and Value for Money’. Value for Many means giving value day-after day and at a remunerative price to our 3.6 million milk producers. They are after all the owners of this brand and this growing organisation. When they give milk to us, they are assured that the price that they get will be very good. On the other hand, we provide consumers the best quality products, using the best ingredients, using the latest technology for processing and packaging at a very affordable price. Because of this business strategy of ours, other producers find it difficult to compete with us. Any business would like to buy raw materials at as low a price as possible and would like to sell the finished product at a price as high as possible. When it comes to Amul, we buy our raw material at a price as high as possible and sell at a low price.

TDB: In FY2017, GCMMF saw an increase in turnover by around 17.5%. Has this met your expectations?

RSS: Yes. Most FMCG companies have shown less than double-digits growth, at around 6-7%. We on the other hand have seen a much higher growth rate.