Tuesday 21 May 2024

The Pride of Amul Goes USA: From India's Heartland to Your Homeland! What if the Indian diaspora becomes loyal and drinks only Amul Milk? How much revenue impact would it have on India?

Dear Friends and Students,

India’s largest dairy cooperative, Amul, has started selling fresh milk and other products in the USA in collaboration with the Michigan Milk Producers Association (MMPA), targeting the East Coast and Midwest markets. It is the pride factor for all of us.

For the sake of a business case perspective, let's assume they sell across the entire USA.

Assuming the total Indian diaspora strength is around 5 million, let’s further assume that 50% of Indians buy Amul milk and milk products. If each person drinks 4 gallons (3.8 * 4 = 15 L) per month, the total number of liters consumed is 10 million liters of milk per month across the Indian diaspora.

Let’s assume each gallon (3.8 L) costs around 4 US dollars, hence each liter costs 1.05 dollars (for convenience, let’s assume 1 dollar per liter), resulting in 10 million dollars revenue per month. Assuming additionally that 50% of that amount is spent on milk products, the revenue comes to 15 million USD per month, which is almost 124.5 crore INR. The yearly revenue would be 1,494 crore INR. Assuming they have to pay 50% of that amount to the Michigan Milk Producers Association and other local taxes, it still brings 700 crore in revenue.

Friends, this business case must have 1000 assumptions and flaws in taxation and other complications. However, the real intent is to showcase how Amul has gained international trust and how the taste of Amul is going global. Amul is already present in 50 countries, serving India’s sprawling diaspora families.

The context of this article is to establish similar trust across all food products and to surpass the EtO norms (suspected ethylene oxide contamination). This method helps us to gain global acceptance across all countries. Ultimately, we need to establish traceability (farm-to-plate tracking) for all food products grown in India and establish global trust in our products. That is the true essence of the Atmanirbhar Bharat or Make in India mission.

Let’s wish Amul sets the tone for the rest of the Indian food products!

Amul: Where Every Bite Tells a Story of India!!

Dear Jayen Mehta Sir, Amul (GCMMF) Amul India Amul Dairy- Proud of you!

Ravi Saripalle"


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