Amul,New expansion strategy to open 10,000 outlets


Ahmedabad, India's best-known milk brand is working out a new strategy to remain among the cream of the milk business.Amul is under attack from private biggies, so it is working out to remain among the cream of the milk business.

For starters, Amul is going on a massive retail expansion drive to milk the growing dairy market, which is estimated to be worth about Rs 1,80,000 crore.

B M Vyas, Managing Director, GCMMF,said, "We will open 10,000 outlets in next five years in India at any cost. Our brand is so strong that our outlets will be economically viable to open three outlets a day to reach the target of 10,000 outlets by five years from now."

Amul, which had a turnover of about Rs 4,000 crore has an ambitious plan of becoming a Rs 20,000 crore enterprise by 2011.

And to do that, it will focus on its core strength milk, ice-creams and milk-based beverages. It would be staying away from its less successful products like chocolates and fast food.

"Now GCMMF has identified these categories, traditional milk products, milk and beverages. We are going to expand in these two categories only and chocolate is there but milk is more important," said RS Sodhi, General Manager – Marketing, GCMMF.

Expansion is not going to be that easy, because the biggest factor is land and acquisition is not possible without government support.

Verghese Kurien, Ex-chairman, GCMMF,said, "The brand Amul should remain intact on face of competition from others. But it's the duty and responsibilities of the dairy co-operatives to save the brand like it has been done in past."

Internal politics has weakened Amul over the past few years and it has helped private companies like Reliance and Bharti gain ground in the lucrative milk market.

Finally, Amul has woken up to take guard and is hoping that its ambitious expansion plans will help it retain its position at the top.