McDowell's joins Amul in $2bn sales club

Discussion in 'Economy & Infrastructure' started by Yusuf, May 22, 2012.

  1. Yusuf

    Yusuf GUARDIAN Administrator

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    MUMBAI/VADODARA: Guess which are the top two consumer brands in India? Here's a hint: Both are liquids, but poles apart as far as their consumption pattern is concerned.

    McDowell's No.1 trademark, the flagship of United Spirits, crossed $2 billion in retail sales, closely trailing Amul as the second largest brand franchise in India's fast moving consumer goods market. The two brands, growing in robust double digits, also highlight India's contrasting but broad based consumption economy.

    Gujarat Co-operative Milk Marketing Federation (GCMMF) owned Amul clocked $2.5 billion sales in the last fiscal. McDowell's No.1-with presence across whisky, rum and brandy flavours-clocked sales of $2.15 billion last year, said Impact International, a New York-based research digest on alcoholic beverage sector, in March this year. "The unduplicated sales of Amul products, including those sold by district dairy unions of Gujarat, will not be less than Rs 13,500 crore (about $2.5 billion)," said GCMMF general manager Jayen Mehta.

    The McDowell's No.1 brand sales were split between whisky ($930 million), rum ($645 million) and brandy ($485 million). The trademark spread across three dominant spirits flavours contributed over 46% of company's profits last fiscal, said USL managing director Ashok Capoor.

    Amul and McDowell's No.1 possibly represent two end ends of the domestic consumption story. India ranks among the top markets in terms of per capita milk intake. The iconic Amul, dating back to pre-independence era, symbolized White Revolution, which made India the world's largest milk producer. GCMMF is based in Gujarat where state laws prohibit sale of alcoholic beverage products. Liquor remains a social taboo in many sections of the society even though an urbanizing economy and changing lifestyles are slowly making it a broad-based consumption theme. State imposed duties make up over 65% of liquor retail prices, which is regularly hiked to subsidize public welfare measures.

    Amul has grown stronger since 2006 when GCMMF made Amul an umbrella brand to sell liquid milk and milk products directly and through member unions, like the district unions of Gujarat, which previously operated local brands. Liquid milk accounts for 50% of Amul sales. USL adopted umbrella brand strategy with McDowell's No.1 to build business in a heavily regulated industry where brand mortality is high, said Sanjay Jain, a director with New Delhi based investment boutique Taj Capital. "The trademark has withstood international competition in sector that's becoming more aspirational," he added.

    http://m.timesofindia.com/PDATOI/articleshow/13365943.cms
     
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  3. Aayush

    Aayush Regular Member

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    At last some good news for Vijay Mallya,after such a nightamare time...
     
  4. pankaj nema

    pankaj nema Senior Member Senior Member

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    I guess many people ; here in our forum as well ; consume the products of both companies

    Amul butter at breakfast and Mcdowell's whisky in the evening :laugh:
     
  5. Yusuf

    Yusuf GUARDIAN Administrator

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    Yeah, right. He will drink to that.
     

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