homebusiness Newscompanies NewsAmul MD Jayen Mehta expects turnover to breach $10 billion mark this year
Amul MD Jayen Mehta expects turnover to breach $10 billion mark this year
Amul has no plans of getting listed on D-Street as profits are contradictory to the brand’s objective as they buy milk at the highest price and consumers get Amul at the most affordable price, Managing Director Jayen Mehta told CNBC-TV18 at the Growth Summit.
Amul Managing Director Jayen Mehta believes the company's turnover is expected to cross ₹80,000 crore, or $10 billion, this year with its pro-farmer model.
Mehta stressed that profits are contradictory to the brand’s objective as they “buy milk at the highest price and consumers get Amul at the most affordable price.” Therefore, the brand has no plans of getting listed on D-Street, as they aim to keep both sides of the spectrum—producers and consumers—happy, he said.
Mehta believes India can produce more than 33% of the total milk in the world in the next 10 years from 24% now.
Amul’s model of dairy cooperatives in 18,600 villages of Gujarat benefits 3.6 million farmers by whom the brand is owned, Mehta said during a conversation with CNBC-TV18 at the Growth Summit.
“This model got replicated across India, and India became the largest producer of milk in the world,” Mehta said. “The model works not just for consumers but also gives the highest price of consumers rupee back to the producer. For every ₹100, ₹85 goes back to the farmer, the highest ratio anywhere in the world.”
Mehta expects the network of villages with cooperatives to double in the next 5-10 years from 200,000 villages currently. “Almost 60-70% of the population depends on agriculture; this is where a combination of policies, which are pro-farmer, pro-development and pro-market, is the way forward.”
Over the years, Amul has also evolved its advertising strategy, as now it also focuses on "promoting the goodness of milk". This is in addition to its ‘Utterly Butterly’ and ‘Amul-The Taste of India’ campaigns launched in 1965 and 1994, respectively, which are associated with the brand to this date.
(Edited by : Amrita)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
2024 Lok Sabha Elections | What does a low voter turnout indicate for NDA and I.N.D.I.A Bloc
Apr 29, 2024 5:48 AM
'Borrowed' leaders: Congress hits out at AAP for not fielding their own candidates in Punjab
Apr 28, 2024 9:53 PM
EC asks AAP to modify election campaign song and Kejriwal's party is miffed
Apr 28, 2024 9:25 PM