Amul goes global with a partnership with MMPA.

In 2014, I recall reading a piece of news regarding the Indian Dairy Sector: "Amul to be manufactured in US from Feb 2014." This initiative saw Amul partnering with NRI Piyush Patel to produce 50 tonnes of shrikhand, 100 tonnes of paneer, and 200 tonnes of ghee per month in New Jersey. However, this ambitious plan did not materialize.

Fast forward to 2024, a decade later, and this dream appears to be finally taking shape. Amul (GCMMF) is embarking on a significant endeavour by launching its brand in the USA, collaborating with the Michigan Milk Producers Association (MMPA) to introduce fresh milk into the US market. MMPA will handle the collection and processing of the milk, while GCMMF will focus on marketing and branding Amul fresh milk.

This development is undoubtedly positive news for Indian dairy businesses venturing into the global arena. However, let's analyze the current situation:

1. Amul is evidently targeting the Indian diaspora to drive its market penetration. According to a 2018 report from the Ministry of External Affairs, there are approximately 4,460,000 (44.60 Lakhs) Indians residing in the United States.

2. While Michigan itself has a relatively small Indian population of around 124 thousand, sales could benefit from nearby major cities with significant Indian communities.

3. The launch of liquid milk serves as a gateway for introducing other products, especially considering the decline in liquid milk consumption observed in the US market.

The significance of Amul's expansion into the US market extends beyond merely increasing revenue streams. It sets a precedent for other Indian dairy businesses to explore global opportunities, tapping into the immense potential of international markets. Here's how this move can catalyze motivating other Indian enterprises to go global:

• Showcasing Success Stories: Amul's foray into the US market demonstrates that Indian dairy products can compete globally. By establishing a presence in a competitive market like the US, Amul sets an example for other Indian dairy companies, showcasing that success beyond national borders is achievable with the right strategy and execution.
• Building Confidence: The successful launch of Amul in the US can instil confidence in other Indian dairy businesses regarding their global potential. Seeing a familiar brand thrive in international markets can encourage other companies to take the leap and explore opportunities abroad, confident in their product quality and market appeal.
• Access to New Markets: With its diverse consumer base and high purchasing power, the US market presents a lucrative opportunity for Indian dairy businesses. By venturing into such markets, these companies can access new customer segments and expand their customer base beyond domestic borders, thus diversifying their revenue streams and reducing dependency on a single market.
• Learning from Experience: Amul's journey into the US market will undoubtedly come with its share of challenges and learning experiences. Other Indian dairy businesses can leverage these insights to navigate their paths to global expansion more effectively. Understanding market dynamics, consumer preferences, and regulatory requirements in international markets can significantly mitigate risks and enhance the chances of success.
• Enhancing Brand Image: Establishing a presence in global markets enhances the brand image and credibility of Indian dairy businesses. It signifies a commitment to quality, innovation, and global competitiveness, which can resonate positively with domestic and international consumers. This, in turn, can strengthen brand loyalty and foster trust among consumers worldwide.

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