The Hindu Business Line : Amul puts off farm products retail plan

The Gujarat Cooperative Milk Marketing Federation (GCMMF), better known by brand Amul, has put its grand plan to enter into retailing of agri products in the back burner. The co-operative has once again concentrated on capitalising the untapped potential in milk marketing in the country.

Inspired by the success of Amul parlours in Gujarat, Amul was previously toying with the idea of dotting the country with 10,000 parlours. Apart from selling the entire bouquet of Amul dairy products, the federation was considering retailing of fresh and frozen vegetables, fruits and fruit products through these parlours.

The company had already tested the success of the business model in Gujarat. But those thoughts are passé now. "We are not considering entry into retailing of products other than milk or dairy products. We will stick to our strengths," Mr R.S. Sodhi, Chief General Manager (Sales), told Business Line.

The national rollout of parlours (for marketing only Amul dairy products) had also been put on hold.

Export front

While Mr Sodhi was not agreeable to describe the change in plans as a switchover to the traditional business model pursued by GCMMF, the federation was also seemed less aggressive on export front.

Though it targeted 50 per cent rise in exports from Rs 120 crore in 2004-05 to Rs 180 crore in 2005-06, Amul posted an export turnover of Rs 160 crore during the last fiscal. "Our overseas sales were affected in the fourth quarter of 2005-06 as price realisation in the domestic market was better than exports," Mr Sodhi said. Amul has set a target of 25 per cent rise in exports to Rs 200 crore for 2006-07.

While maintaining that there was no apparent reduction in focus on exports, he said that marketing milk in India and improving the returns of milk farmers would be the primary responsibility of the co-operative in the days to come. "Exports will continue".

More Stories on : Co-operatives | Dairy & Dairy Products

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
South Canara co-op bank shows the way

Farm Ministry says no shortage of cereals

Rationing cereals

Need for early completion of pending irrigation projects

Spot rubber rules steady

Coonoor tea prices up

GEAC defers decision on Bt brinjal trials

Plantation woes — Coffee growers feel the pinch of labour shortage

Pepper futures turn cold on liquidation

Rising exports

Doubts over market access in farm sector stall WTO talks

`Iron ore advantage will help Indian steel firms'

Amul puts off farm products retail plan