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Indian <keyword id="34523" type="CITY" weightage="100" keywordseo="fmcg">FMCG</keyword> brands are giving a tough time to foreign brands. While much hullabaloo is about Yoga guru <keyword id="6369109" type="PERSON" weightage="20" keywordseo="Ramdev">Ramdev</keyword>’s Patanjali, <keyword id="26280" type="COMPANY" weightage="20" keywordseo="amul">Amul</keyword> is all set to give a tough time to <keyword id="6365619" type="CITY" weightage="100" keywordseo="Hindustan-UniLever">Hindustan Unilever</keyword> now. Amul, marketed by the <keyword id="110794" type="ORGANIZATION" weightage="20" keywordseo="Gujarat-Co-operative-Milk-Marketing-Federation">Gujarat Co-operative Milk Marketing Federation</keyword>, plans to zoom ahead Hindustan <keyword id="45009" type="CITY" weightage="20" keywordseo="Unilever">Unilever</keyword> as the country’s largest FMCG firm over next two years. As GCMMF is growing at a CAGR of 19% for last seven years and confident to continue such high pace of growth Amul’s managing director RS Sodhi expressed the positivity, while talking to The Economic Times. GCMMF touched Rs 27,000 crore sales in 2016-17, while Hindustan Unilever had touched Rs 31,987 crore revenue in 2015-16. Hindustan Unilever is yet to declare its result for last fiscal, according to the ET. "Around 13-14% of our growth will come from milk procurement expansion and 6-7% from the average price hike. We are expanding milk procurement outside <keyword id="6354766" type="COMPANY" weightage="20" keywordseo="Gujarat">Gujarat</keyword> in states like Uttar Pradesh, Rajasthan, Haryana, Punjab, West Bengal and Maharashtra," Sodhi told the financial daily.

This Indian brand will overtake FMCG king Hindustan Unilever by 2018-19

<ul><li>The year 2020 was a roller coaster ride for businesses of all kinds and sizes and negatively impacted <keyword id="47276" type="PERSON" weightage="20" keywordseo="Economic-growth">economic growth</keyword> worldwide. </li><li>However, after June 2020, one industry that continued to see stable cash flow and income was FMCG. </li><li>In today’s feature, we speak to leading FMCG brands on their outlook for 2021 as we move forward. </li></ul>The pandemic has taught the brandverse to be prepared for the unexpected. Owing to the fear of contracting the virus by going out, brands had to rethink and realign their strategies to reach out to consumers in new ways. Online shopping platforms opened up their services to deliver 24*7 and people started hoarding daily essentials, including FMCG products. So, many FMCG brands partnered with e-commerce platforms like Dunzo, Flipkart, Grofers, BigBasket, etc to deliver within the comfort of consumers’ homes. Consumer habits also evolved with COVID and ‘immunity’ became the buzzword in the FMCG industry. Marketers reverted by launching ready-to-eat meal options and immunity-based packaged goods. However, with COVID vaccine now a reality, consumer sentiment is already picking up and the economy is in revival mode. Going by the latest reports, 2021 will augur well for small retailers leading to an increased sales from local markets and <keyword id="6513856" type="COMPANY" weightage="20" keywordseo="kirana-stores">kirana stores</keyword>. According to <keyword id="346535" type="COMPANY" weightage="20" keywordseo="Nielsen-India">Nielsen India</keyword>, after an unprecedented decline of -19% in the Jan-Mar quarter, FMCG industry displayed signs of recovery in Q3’20 with a 1.6% growth (versus Q3 ‘19). In 2020, rural markets outperformed urban India and became critical for FMCG giants. Brands relied on rural markets to drive growth during the trying times. FMCG witnessed a double digit growth of 10.6% in Q3’20 in Rural India, while the bigger cities (&gt;1 Lakh population including metros and Town Class 1) played catch-up. The rural markets bounced back in Q3 handsomely on the back of support provided by the government as well as good agriculture, reverse migration and a lower unemployment rate. With immunity being the focus in the ‘new normal’, new launches have been made in the health and hygiene basket including categories like hand sanitisers, floor cleaners, toilet cleaners, antiseptic liquids. These new launches contributed to 37% (in value) of all new launches in the COVID period (Nielsen India). According to Kantar Worldpane, FMCG sector in India is expected to report a 4-5% volume growth in FY21, driven by rural areas that are expected to grow two percentage points ahead of the urban regions that are hit harder by COVID-19 pandemic. While COVID-19 has curtailed economic growth in the FMCG sector, experts are now optimistic that the industry will see an appreciable improvement this year. Here are some of the trends they expect to see in 2021: R S Sodhi, MD, GCMMF (AMUL): <cmsannotation type="cmsannotation" annotationid="The biggest impact i" comment="inlineshare" text="The biggest impact in FMCG food is the shift among the consumers from loose and unbranded to trusting packed food and affordable brands in Tier II and III. There, people have come from loose to smaller packs and brands.">The biggest impact in FMCG food is the shift among the consumers from loose and unbranded to trusting packed food and affordable brands in Tier II and III. There, people have come from loose to smaller packs and brands.</cmsannotation> I don't think the demand in high end consumer products will grow as much now. There'll be a tremendous increase in demand for branded FMCG products that are affordable, available in smaller packs and mainly cater to Tier II III cities. For the past two years, at Amul, we have been trying to ensure we reach the towns that have over 10,000 population, which helps us cover the 15 to 20 bigger villages around those towns. Currently, we are working with 10,000 distributors. We have already covered 50% of these 10,000 population towns in India and in another one year, we'll cover all the towns. We're mainly investing in Tier II and III cities, opening our own branches and depots all over India. We recently opened a centre in Leh. Anil Viswanathan, senior director, marketing (chocolates), insights and analytics, <keyword id="2200852" type="COMPANY" weightage="20" keywordseo="Mondelez-India">Mondelez India</keyword>: The pandemic has accelerated the growth of snacking. As per Mondelēz International’s recently released second annual State of Snacking report, 9 in 10 Indian adults (88%) say they are snacking more or the same (22%) during the pandemic than before it, with millennials being especially likely to say they prefer snacks over meals (85%). A majority expect this trend to continue, saying they plan to continue eating small snacks throughout the day, as opposed to fewer large meals (82%), and that snacking will be part of their “new normal” even after the pandemic ends (81%). Ultimately, 8 in 10 believe “the current pandemic will have a long-term impact on how we consume snacks as a society” (81%). This unprecedented year has also brought about a significant behavioral change especially on how consumers are purchasing snacks. A majority say they have started to buy snacks online more often than they do in-store or offline (74%), with 8 in 10 planning to continue shopping for snacks online once the pandemic is over (81%). A similar percentage also say the pandemic has opened their eyes to so many more ways to get snacks than they knew existed before (80%), including half who have discovered snacks to try on social media (50%). It was also very heartening to note that, even while at home this year, Indians are social snackers. With health and safety continuing to be a priority, consumers are trying to strike a balance between indulging and being mindful (80%), and in doing so; they (80%) are relying on trusted snacking brands like Cadbury, OREO, and Bournvita, seeking assurance of safety and superior quality. At Mondelez India, we understand the role our products play in our consumers’ life and the aim is to leverage these trends to empower them with more choice, creating greater shopping opportunities and innovating, while keeping our promise of consumer-centricity intact, throughout our growth journey. Sudhir Langer, CEO, Raymond Consumer Care: Conscious Communication Today’s young ‘woke’ consumers were already moving away from the excesses of consumerism and leaning towards sustainable conscious brands before the pandemic and lockdowns hit their lives. The all-round strain of the pandemic from volatile job markets and a possible looming global recession to health and environment concerns; along with the way lockdowns were framed as health versus economy predicaments—as if one has to be sacrificed for the other—has left many questioning the very basis of our consumer-driven economy. I feel, the months in lockdown have only strengthened that introspection and has further fueled the young consumers’ move towards purpose and value, making them think-twice before buying by taking in to consideration the long-term impact of their spends not only on their finances, but on their own beliefs, on society and on the planet. So, with conscious consumption here to stay, when consumers buy, it is going to be as much for brand values as it is for product payoff. Keeping this in mind a big communication trend I see emerging as we move into 2021 is brands engaging more purposefully with deeper more sentient conversations. These could include brands talking about their environmental and sustainability efforts, community initiatives, health impact and most importantly value addition. Fortunately for us this is not a shift to adapt to; but a way of operating. We have always believed in empowering, enabling and operating consciously. Hence, it’s not only our communication like our recent Park Avenue Germ Protect soap film about our protagonist helping his community but at every level we are constantly taking steps to enhance efficiencies for a better world like our soon to be launched sustainable and eco-friendly packaging. Sumit Mathur, Director Marketing Kellogg South Asia: The pandemic is a black swan event that brought several changes at the economic and societal levels. Consumers had to face economic stress which made them more discretionary in their consumption choices. Our virtual connects with over 450 consumers amidst the lockdown made it clear that items which they do not deem to be too essential are unlikely to find a place in their shopping carts. Come 2021, only brands solving a real consumer problem or adding value to their lives will be on top of their minds. It has become increasingly important for brands to feel the pulse of the consumer and provide authentic solutions to stay relevant. Kellogg’s has paid attention to the consumer’s shifting needs and adapted with agility to ensure it solves consumers’ nutritional demands in the most convenient manner and this will continue to be our focus in the coming year.

FMCG: The trends to watch out for in 2021

New Delhi, Apr 21 () GCMMF, which markets dairy products under Amul brand, expects its turnover to grow 15 per cent this fiscal year from Rs 38,550 crore in 2019-20 despite economic slowdown caused by the nationwide lockdown to control coronavirus outbreak.The household consumption of milk and other dairy products is expected to rise and will compensate any temporary loss of sales caused by closure of hotels, restaurants and cafeterias (HoReCA segment) during the ongoing lockdown period, said R S Sodhi, the managing director of Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF)."COVID-19 will not have any impact on demand of the food products. Our sales in value terms during this month are at par with the same month last year. The demand of some products has come down but at the same time sales of many products have risen," Sodhi told  in an interview. Asked about the outlook for this fiscal year, he said: "We expect our turnover to grow by 15 per cent."GCMMF clocked 17 per cent growth in its turnover at Rs 38,550 crore during the 2019-20 fiscal year.On the current situation of its milk operation, Sodhi said, "Gradually things are settling down."Regarding sales, he said the demand for fresh milk has declined by 8 per cent as hotels and restaurants are closed.  "HoReCa segment contributes 12-15 per cent of the total demand. But, fall is less as household consumption of fresh milk and butter milk has increased."Sodhi noted that sales of butter, ghee, paneer, cheese and milk powder have gone up in the range of 20-35 per cent as people are consuming more. However, he pointed out the demand of ice-cream has fallen sharply by 85 per cent, while sales of cream and mozzarella cheese are down by 70 per cent and 50 per cent, respectively. Sodhi said the company has diverted the idle supply chain of ice-cream into distribution of other dairy products."Our milk procurement from farmers has increased by 15 per cent as unorganised players are not buying", he said. The surplus milk is being processed to manufacture skimmed milk powder (SMP), whose price has crashed to Rs 250 per kg from Rs 320 before lockdown, he said. "Our capital is getting blocked because of higher milk procurement. But we need to support farmers during this period," Sodhi said. The GCMMF has not increased or decreased the milk procurement rates, he said, but added that prices have fallen by Rs 7-10 per litres across various states.Sodhi said the fall in procurement rate is more in states like Uttar Pradesh where there are no cooperatives in the dairy business. Amul sells 140 lakh litre milk per day mainly in Gujarat, Delhi-NCR, Uttar Pradesh. Its dairy products are sold across the country. It has milk processing plants in many states.  MJH  ANS SHWSHW

Amul eyes 15 pc growth in turnover this fiscal despite COVID-19 from over Rs 38K cr in FY'20

India’s top dairy product brand Amul is planning to triple its cheese output for which it is planning to invest Rs 600 crore in a Greenfield cheese plant, Palanpur, Gujarat. 
 "We want to reach out to hotels and restaurants where we see serious growth in our revenues," <keyword id="110794" type="ORGANIZATION" weightage="100" keywordseo="Gujarat-Co-operative-Milk-Marketing-Federation">Gujarat Co-operative Milk Marketing Federation</keyword>’s (GCMMF) Managing Director RS Sodhi told Economic Times, adding “most of the HoReCa (hotel/restaurant/cafe) industry is dependent on local brands for cheese. 
 
For starters, the plant will produce mozzarella and processed cheddar cheese. Amul, which is owned by GCMMF, is planning to increase its share in the Indian cheese market from current 65%. 
 
Amul’s value added products like butter, curd, ice-cream and milk-based beverages have seen impressive growth over the past few years. Amul butter holds 90% share in the Indian market while its fresh milk share is 40%-45%. 
 
 
Sodhi said that the brand would continue to focus on the domestic dairy products market, which is swelling with each passing day. 
 
The GCMMF had posted annual turnover of Rs 20,730 for the last fiscal ended March which was up 14% from the previous year’s Rs 18,143 crore.

Know what Amul is spending Rs 600 crore in India on

In a small town called <keyword id="2648" type="PERSON" weightage="20" keywordseo="Anand">Anand</keyword> in western India in 1946 farmers were having a difficult time having to deal with the exploitative trade practices followed by the local trade cartel. Refusing to be cowed down by the cartel, farmers of this area went on a milk strike. And they approached the great Indian patriot Sardar Vallabhbhai Patel for a solution. His advice was natural, start a cooperative movement. 
 
And they did. 
 
Inspired by India’s freedom struggle, it all began when farmers in a small town near Anand city in Gujarat made milk as a symbol of protest. Tribhuvandas Patel was a local leader who had been imprisoned number of times during India’s struggle for freedom. With the help of his supporters, he found a dairy co-operative in 1946 in Anand. The cooperative movement was a movement against the atrocities of Polson Dairy, a locally-owned dairy in Anand, which procured milk from farmers at very low rates to sell to the Bombay (now Mumbai) government. 
 28 year old Mechanical Engineer from Kerala, <keyword id="168701" type="PERSON" weightage="20" keywordseo="Verghese-Kurien">Verghese Kurien</keyword> arrived in Anand in 1949 as a government employee to manage a dairy. Fed up with his monotonous and unchallenging job he had already made up his mind to leave but upon Tribhuvandas Patel’s request he agreed to stay back for few months to oversee installation of the newly ordered machineries. No one then knew that Dr. Kurien would never leave Anand and make it the milk capital of India. In 1955 <keyword id="26280" type="COMPANY" weightage="100" keywordseo="amul">Amul</keyword> (then short for Anand Milk Union Ltd) was born. Verghese Kurien was in almost every way the architect of Amul. He went from helping farmers repair their machinery to revolutionising the Indian dairy industry by scripting Operation Flood, a cooperative movement that turned India from a net importer of milk into one of the world’s largest producers. Not for nothing was Dr. Verghese Kurien called the Milkman of India. 
 
The first dairy, Kaira District Co-operative Milk Producers’ Union, which created Amul in 1955, handed over the brand name to Gujarat Cooperative Milk Marketing Federation (GCMMF) in 1973. Thus, in 1973 the GCMMF was established to market milk and milk products manufactured by six district cooperative unions of Gujarat. 
 
 
 Branding played a major role for Amul’s success, the (original) Amul Girl was created by <keyword id="245066" type="PERSON" weightage="20" keywordseo="Sylvester-daCunha">Sylvester daCunha</keyword> (daCunha Communications) to counter the Polson dairy girl. Polson’s sexy village belle didn’t stand a chance to the tubby little moppet in the polka-dotted dress and a matching ribbon. Amul ads were cleverly designed to add a tinge of nationalism to an essentially rural revolution. The first Amul Ad campaign came in 1967 in Bombay (now Mumbai). And the response was phenomenal... and continues to be. Amul is also credited with a Guinness world record for longest running ad campaign of the world for its Utterly Butterly girl portraying day-to-day issues since 1967. In 1977, the Amul story was showcased through a Hindi movie titled Manthan directed by Shyam Benegal starring Naseeruddin Shah, Girish Karnad, Smita Patil and Amrish Puri which also won National award for best film. The movie again demonstrated the power of collective might as the movie was financed by a contribution of Rs. 2 by 5 lakh farmers. 
 
And then, Amul became a brandname in its own right. It is said that for Operation Flood, Kurien’s idea of having farmers own the brand went a long way in creating a sense of ownership and, in turn, responsibility for the product’s quality. Since the mid-90s, Amul has been able to take the range outside the security of traditional products, milk powder and butter. Amul diversified to everything from ice-cream, curd to long-life flavoured milk. Brand Amul is now present in over 50 countries. 
 
 
 
Amul has come a long way since its inception. The contribution of Amul in development of rural India as well as economic growth of the nation is legendary.

Inspired by India’s Freedom Struggle: Amul - The Brand, The Revolution, and The Campaign

Following the recent crackdown by regulators over safety issues, food companies such as <keyword id="75190" type="CITY" weightage="80" keywordseo="Nestle">Nestle</keyword>, Amul, <keyword id="6357073" type="ORGANIZATION" weightage="20" keywordseo="ITC">ITC</keyword> and <keyword id="6376312" type="COMPANY" weightage="80" keywordseo="Mother-Dairy">Mother Dairy</keyword> have realized the importance of reaching out to its customers and have hence started consumer engagement exercises. 
 While Nestle has launched videos which show bachelors professing their love for <keyword id="6369404" type="PERSON" weightage="20" keywordseo="Maggi">Maggi</keyword> and articulating how much they miss it, Kolkata-based food and cigarette major ITC has come up with films that highlight the safety of Sunfeast Yippee noodles. The latest Youtube video show Yippee noodles being made in a sanitized environment in its factory. 
 Similarly, <keyword id="3026737" type="UNKNOWN" weightage="80" keywordseo="Gujarat-Cooperative-Milk-Marketing-Foundation">Gujarat Cooperative Milk Marketing Foundation</keyword> (GCMMF), the maker behind the Amul brand of dairy products has been running ads emphasizing on the fact that their products are undergoing regular quality checks. Its rival, Mother Dairy is also not behind. Its ad campaign doing the rounds on social media shows its consumer on a plant visit. 
 
Meanwhile Nestle, the brand which was worst hit by regulators is already plotting the comeback of Maggi, piggybacking on its recent Maggi videos attracting around nine lakhs views in three days. 
 
"These short films reflect the spontaneity and affection between consumers and Maggi. We are making efforts to get Maggi Noodles back on the shelves and have been overwhelmed by the messages of love and support that we receive each day. Such messages strengthen our resolve to be back with our beloved consumers. We want to share the warmth of our relationship through these films," told a Nestle Indian spokesperson to Economic Times. 
 
Image credit: Indiatimes

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This Indian brand will overtake FMCG king Hindustan Unilever by 2018-19

BI India Bureau

FMCG: The trends to watch out for in 2021

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Amul eyes 15 pc growth in turnover this fiscal despite COVID-19 from over Rs 38K cr in FY'20

PTI

Know what Amul is spending Rs 600 crore in India on

BI India Bureau

Inspired by India’s Freedom Struggle: Amul - The Brand, The Revolution, and The Campaign

Nazia Bijal

Nestle, ITC, Amul among companies to start consumer engagement exercises

BI India Bureau

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