India’s giant dairy company, Amul is investing US$812 million over the next year to fund an expansion plan that includes the construction of 10 processing plants and a revenue target of over $8 billion by 2020. Amul, which labels itself the fastest growing major dairy group in the world and the 15th largest global dairy by production, states that it is on pace to see revenue of approximately US$3.25 billion this year. However, to reach its expansion goals, the group’s managing director, RS Sodhi states that farmers must focus on animal husbandry and maintaining herd size. In recent years India’s dairy sector growth has been slowing, falling from 5% in 2012 to 3.5% in 2013, while at the same time population growth has maintained a rate of approximately 4%. India’s organized dairy sector represents only 20% of the country’s total industry worth US$65 billion indicating vast potential for commercialization and gain in the business.
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