Following the footsteps of global fast-moving consumer goods companies in India, dairy major Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets its products under the Amul and Sagar brands, is in the process of setting up a separate cell to handle modern retail. Apart from managing the supply chain, the unit will also work to create consumer schemes and offers to be run at the outlets.
RS Sodhi, general manager, GCMMF, said that a few executives from Amul’s headquarters in Gujarat have been dedicated to the channel. This will be rolled out to the branch level over a period of time.
The company is also working on increasing its retail presence, both through branded outlets and in-store presence. In the past year, Amul has set up close to 900 Amul Priority Outlets (APOs) and these will be increased to 10,000 over the next three years.
VJ Matthai, assistant general manager, GCMMF, said that by March 2008, the total number of outlets would go up to 3,000. Since these are being set up on a franchisee model, it requires almost no investment from the company. In addition, “We will increase our presence at various points of sale like railway stations, highways, chemists and BPOs, apart from the supermarket and kirana outlets,” Sodhi informed.
With a current turnover of over Rs 4,000 crore, Amul intends to touch the Rs 20,000 crore mark by 2011. There are approximtely 2.5 million GCMMF members at present.