Home Retail After parlours, Amul bets big on cafes

    After parlours, Amul bets big on cafes


    After touching a figure of 6,000 parlours across India, Amul, a milk and milk products brand owned and marketed by Gujarat Co-operative Milk Marketing Federation (GCMMF), is now betting on quick service restaurants called Amul Cafes. Tasting success with the two federation owned outlets of Amul Cafes at Ahmedabad, GCMMF is eying to spread the network of cafes across the country in the coming two years. Meanwhile, the country’s leading dairy major has crossed the $2 billion mark (Rs 9774 crore) in turnover during 2010-11 fiscal.

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    Continuing its focus on retail operations, GCMMF plans to open at least 10 Amul Cafe outlets across the major cities of Gujarat within this year. Post that, the dairy major is setting its eye on pan-India expansion starting with Maharashtra, Karnataka, Tamil Nadu among other markets. “Apart from Gujarat, we are coming up with one outlet in Bangalore shortly. We are working on our pan-India network expansion plan, and would decide on the plan of action within the next two months,” said R S Sodhi, managing director, GCMMF.

    He added that the investment per outlet is in the range of Rs 20-25 lakh. The federation now owns and operates two outlets in Ahmedabad, which have a turnover of Rs 1 lakh per day per outlet. Amul Cafe is a quick service restaurant concept spread over an area of 1,000 square feet and serves recipes like Amul Butter pavbhaji, Amul pizzas, Amul cheese burgers, sandwiches, ice cream, sundaes and milk shakes. “We have started serving dosas as well,” Sodhi said.

    Amul has added 1,000 new Amul Parlours during 2010-11, taking the total strength to 6,000 outlets. These parlours that retail the entire range of Amul products under one roof, have generated business of Rs 406 crore during the 2010-11 fiscal, growing by 37 per cent on a year-on-year basis. “The contribution of retailing operations in GCMMF’s business reached four per cent. The average throughput per parlour has also increased by 17 per cent,” Parthibhai G Bhatol, chairman, GCMMF said. Amul is targeting a milestone of 10,000 Amul parlours by the end of March 2012.

    He added that apart from conventional locations like residential and commercial areas, Amul Parlours are also coming up at educational institutions, railway stations, bus stands and other high traffic locations. “We have already created 160 parlours at railway stations and 177 parlours are operating at various centers of excellence. Our Amul Ice Cream Scooping Parlours continue to be popular among individuals and families for relishing value-added Ice cream in attractive ambience. More than 150 ice cream parlours were added during 2010-11, taking their total tally to 375,” Bhatol said.

    Meanwhile, the turnover of the apex body of dairy cooperatives has crossed the $2 billion (Rs 9774 crore) mark in 2010-11. During the year, GCMMF sales grew by 22.1 per cent to reach Rs 9774.27 crore from Rs 8005.36 crore in 2009-10.

    Commenting on the performance, Bhatol noted that the organisation was able to achieve the first one billion dollar mark after 33 years of its operations, and it took just four more years to add another one billion dollar to its turnover. GCMMF has registered a compounded annual growth rate of 23 per cent in the last four years.

    Amul has done well in most of the value-added consumer packs. While sales of Amul milk in pouches has grown by 34 per cent in value terms, Amul Butter has shown a value growth of 26 per cent, sales of Amul Processed Cheese has grown by 29 per cent. Amul’s beverage range including Flavoured milk, Buttermilk and Lassee has shown a growth of 28 per cent in value terms over last year. Sales of Amul Masti Dahi grew by 39 per cent.

    “With enhanced focus on fresh and fermented products, we launched Amul Probiotic Lassee in ready to drink cups, Amul Probiotic Buttermilk in PET bottles and flavoured yoghurt under the brand name Amul Flaavyo. In the infant milk food category, our brand Amulspray registered a value growth of 20 per cent and achieved the unique distinction of becoming a Rs 1000 crore mega-brand,” Bhatol said.

    In the dairy whitener segment, Amulya recorded a growth of 21 per cent.

    In the milk-based dessert range, Amul re-launched Amul Gulab Jamuns with new round shape, registering a quantum growth of 53 per cent.

    Source : Business Standard