Amul makers eye Delhi market with tie-up offer

Gujarat Cooperative Milk Marketing Federation,which sells milk and other dairy products under Amul brand,on Thursday said it has evinced interest to manage government-owned Delhi Milk Scheme in order to expand presence in the national capital.

Written by Press Trust Of India | Ahmedabad | Published:September 14, 2012 3:06 am

Gujarat Cooperative Milk Marketing Federation (GCMMF),which sells milk and other dairy products under Amul brand,on Thursday said it has evinced interest to manage government-owned Delhi Milk Scheme (DMS) in order to expand presence in the national capital.

“We have evinced interest in partnering with DMS operating under Union Ministry of Agriculture and have submitted a proposal for the same to the ministry,” GCMMF Managing Director R S Sodhi said.

The DMS,which was founded in 1950,has milk production and packaging capacity of 6-7 lakh litres per day besides a network of around 400 parlours,he said.

“Partnering with DMS would enhance our presence in Delhi,where we are selling close to 21 lakh litres of milk per day,” Sodhi said.

According to sources,the Agriculture Ministry has been scouting for a partner to manage DMS as it is not doing well.

Mother Dairy,which sells more than 30 lakh litres of milk per day,is its main rival in national capital region (NCR).

GCMMF had posted a 19 per cent growth in its turnover during 2011-12 fiscal at Rs 11,668 crore. This fiscal,it is aiming at Rs 14,400-crore turnover. Formed in 1946,Amul is jointly owned by 3.2 million milk producers in Gujarat.

Buoyed by robust growth in its dairy business in the last five years,GCMMF is targeting a more than two-fold jump in turnover at Rs 30,000 crore in the next seven years.

The co-operative is also ramping up its capacity to tap the growing dairy market in the country.

“We are setting up nine new plants in the next four years at a cost of Rs 3,000 crore and expanding the capacity of our existing plants to enhance the milk handling capacity from existing 145 lakh litres per day to 180 lakh litres,” a federation official said.

Amul recently launched its new product ‘Amul Moti’,an ultra high temperature (UHT) treated milk in Delhi.

According to Amul,this milk remains fresh for three months even if it is stored at room temperature. This will ensure that branded milk can be made available to consumers in remote and milk-deficient areas of the country.

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