Amul is set to diversify its product range by entering the organic tea, sugar, and spices market. This expansion marks a significant step beyond its traditional dairy business as the company strives to position itself as a full-scale FMCG giant. The move is part of Amul’s broader strategy to tap into new markets and strengthen its presence in the fast-moving consumer goods sector.
Strategic Expansion and Revenue Goals
In FY25, Amul’s revenue reached ₹66,000 crore, making it the largest FMCG company in India, surpassing its multinational competitors by 10%. Building on this success, Amul is aiming for a ₹1 lakh crore turnover by FY26. Managing Director Jayen Mehta emphasized that this expansion into organic products aligns with Amul’s strategy of growth and diversification.
Growth in Other Categories
Amul’s growth is not limited to new product lines. The company expects a 35-40% increase in ice cream sales this year and is set to expand its production capacity for protein beverages by five times, starting May 1, 2025. These initiatives will further solidify Amul’s position in the FMCG market.
Global Expansion Plans
Amul, which has already made strides in the United States, is now looking to expand further into international markets such as the Middle East, South Asia, and Africa. These regions have a growing demand for Indian food products, providing a promising opportunity for Amul’s global footprint.
Challenges and Strategic Approach
Despite facing inflationary pressures on input costs, Amul has managed to keep milk prices stable, absorbing the additional cost rather than passing it on to consumers. This strategic approach highlights Amul’s commitment to maintaining affordability while expanding its product offerings.
Competing with Established FMCG Players
The company’s entry into organic staples is a significant shift as it competes more directly with established FMCG players. This diversification beyond dairy aligns with Amul’s vision of becoming a leading player in various consumer goods categories.
