Indian Company GCMMF to Invest in New Production Lines
Indian dairy manufacturer GCMMF operating under brand Amul, announced its investment into new processing facilities to develop milk manufacturing and set up new production lines for oils. Investment is planned for 2 years ahead and it is estimated that for the sake of development, the company will spend around Rs 1,000 crore over the next two years to set up milk processing plants. Following Rs 500 crore will be spent on facilities for new products line, manufacturing edible oils.
Such investment is dictated by increasing customers’ interest in branded food products. As the representative of the company claims ”Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) expects 12-15 percent growth in revenue in the current fiscal year from Rs 38,550 crore during the last fiscal year despite COVID-19 pandemic”. Relating to the consumption of milk-based products during months affected by the pandemic, Amul saw a 15% increase in sales on a YOY basis. Products like milk, butter, and ghee were bought more often, all thanks to intensified household purchases. Meanwhile, Amul ice-cream sales declined by 30-40% percent on a year-over-year basis. Such decrease was caused by the closure of restaurants and bars who were mainly purchasing such dessert for wedding ceremonies, which were banned as well, due to social distancing restrictions. Planned investment in edible oil, will focus on the manufacturing of groundnut oil, cottonseed oil, sunflower oil, mustard oil, and soybean oil- they will be marked under the new brand “Janmay” GCMF provides 14 000 000 liters of fresh milk per day in the Indian states of Gujarat, Delhi-NCR, and Uttar Pradesh. Western India based company, settled in 1946 is now the largest Indian exporter of dairy products and it’s chains reach mostly South-East Asia but Oceania and Southern America as well.