New Delhi: The Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells the Amul brand of dairy products, is expanding its presence with a focus on premium offerings. The cooperative is establishing upscale ice-cream parlours pan-India with 100 Amul Ice Lounge stores in FY24.
Additionally, after introducing organic flour last year, it is preparing to launch organic tea and spices, to tap the growing demand for such products, said Jayen Mehta, in-charge managing director, GCMMF.
“We have created premium ice-cream lounges, offering the finest flavours from every country in the world in a very upmarket ambience. We have launched five such stores: four in Ahmedabad and one in Jaipur. We are planning a few more stores in Mumbai and Delhi. We have signed the best malls in India, and definitely achieve 100 outlets in this fiscal year. We’re expanding in international markets as well, and will have hundreds of parlours,” Mehta added.
While Amul boasts of a significant share of the mass market ice-cream segment, it now aims to capture the premium segment, he added. Initially, Amul Ice Lounges are being established through internal accruals. The franchise model is also available for entrepreneurs looking at high-yielding investment opportunities, he said. “Ice-creams will be available at a premium to Amul prices—a scoop will be for ₹200.”
This strategic move places the dairy cooperative in direct competition with well-known ice-cream brands such as Baskin Robbins and Naturals.
Recently, the firm announced a group turnover of ₹72,000 crore for the FY23. Notably, Amul’s milk-based beverages business saw 34% rise from a year ago, while its ice-cream division saw 40% growth. Amul butter grew by 19%, and ghee consumer packs grew over 9%. The cooperative reported 20% growth in long-life milk, 40% for dahi, 16% growth in fresh buttermilk.
However, unseasonal rains in the last two months dampened demand for its beverages and ice-cream portfolio, said Mehta.
Meanwhile, in January, the Union cabinet approved the setting up of a national-level cooperative society for organic products. GCMMF is among the five promoters of the society, which will manage various activities related to organic sector by providing certified and authentic organic products. Amul is set to scale the launch of products under this initiative. “We have launched 9-10 products within the Amul organic range. This month we’re going to launch organic chai…and different spices,” said Mehta.
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Updated: 22 Aug 2023, 11:43 PM IST
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