Amul will not be increasing its prices owing to the hustle bustle with respect to prices in the industry lately. R S Sodhi, MD, Amul said, “For the next one year, we will not be increasing prices for our products.”
With a turnover of Rs 11,668 crore in 2011-12, it plans to enhance to Rs 14,400 crore in 2012-13 fiscal. Amul has witnessed a growth of 20 per cent in the last five years. Milk is the growth engine for them and caters to 40 per cent of the brand’s turnover. Its procurement for milk stands at 110 lakh litres. Production is also being ramped up and an investment of Rs 3,000 crore has been made for nine production capacities. In the next two to three months, production at the plant in Mumbai should be underway. This will take the production up to 180 lakh litres and even more.
Exports will also get a boost and will surge with a 20 per cent increase. Exports are being made for butter, ghee, cheese and shrikhand. The price of products increase when exported owing to export and import duties, however people still prefer to buy an Amul product due to its popularity.
Marketing spends stands at less than one per cent of the revenues and include all their advertising activities. They have also associated with the upcoming London Olympics and are looking at investing in the football league in India.