During the recent Food Conclave 2023 in Hyderabad, media representatives spoke with the Managing Director of Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), the company behind the Amul brand, about topics such as new strategies for the development of the dairy market, the one region, one product concept, margin pressures, and some Amul-related controversies.
The person who followed RS Sodhi as the chieftain, Jayen Mehta, would know better than anybody else how difficult it is to hold the position of Amul Managing Director. Amul, a symbol of the white revolution in India, has experienced its share of controversy. Mehta remarked, “We take controversy in stride.
Here are a few excerpts from the conversation:
Amul is the best child of debate. You appear to be drawing controversies like nobody’s business. So, how do you handle that while in this circumstance?
The most crucial information in this book is that Amul handles issues with facts and composure. The objective is to present the truth regarding any topic, and the goal is to collaborate regularly with producers and customers throughout the entire nation. As a result, the brand may survive, remain relevant, and occasionally even profit from controversies.
The Amul brand has long been regarded as revolutionary. People are still bringing up the sachet economy nowadays. What do you think of the idea of a sachet economy with more competitors?
Consumers have historically been moving away from loose, unorganized sectors and toward packaged, branded goods in urban regions. Post-Covid, this transition has been expedited throughout India, with companies like Amul offering high-value goods at competitive costs.
Even 5% of Indians switching from loose milk to packaged milk each year might result in the creation of a new Amul, a $9 billion corporation that produces close to 300 lakh liters of milk every day.
We can clearly feel this transition taking. Hence, Amul is taking advantage of this chance to grow by developing its milk processing capabilities, visiting many areas, and urging more farmers to join organized co-operative dairy. They are taking advantage of this chance to get traction and expand their business so that both the manufacturers and the consumers profit.
The industry is discussing regionally tailored categories right now. What exactly does “one region, one product” mean?
For producers to meet this need by building a portfolio around them, the idea of premium items is crucial. Products like paneer and buffalo mozzarella are valued more highly than normal cheese on a worldwide scale. By adding value and overcoming the technological difficulties of manufacturing pure cow milk, Gir cow milk, or pure buffalo milk, this unmet demand can be communicated at a higher value to the customers. We are collaborating with camel breeders in the Kutch region to expand that market.
Where do we expect growth amid greater pressure to enhance milk production?
Given that the consumer shift is supporting it, the opportunity for the organized sector and all of the stakeholders is enormous. The entire supply chain, from feeding the cows in the villages to building cutting-edge processing facilities and milk delivery networks, will contribute to growth.
With fresh products having a 48-hour shelf life sent from the plant to the market, ambient products moving at room temperature, chilled products like butter, cheese, and chocolates moving at 0-4°c, while ice cream and frozen range at -20°c, we have a special supply chain to handle milk and milk products in all four different distribution highways. As we work with millions of producers and provide value to our millions of consumers, we conduct business in a cost-effective manner.
