Brands
Amul to invest Rs 5000-crore in expansion to achieve 2020 revenue target: RS Sodhi
MUMBAI: A household name in India, Amul, will invest Rs 5,000 crore to set up around 10 milk processing plants in the next financial year including two plants in Delhi, three in Uttar Pradesh, one each in Kolkata and Maharashtra and the rest in Gujarat.
“The endeavour is to achieve its revenue target of Rs 50,000 crore by 2020,” said Amul managing director RS Sodhi.
Speaking at an interactive session on the third and final day at the India Food Forum 2015, Sodhi, in conversation with Future Retail CEO Sadashiv Nayak, said, “Amul will be able to achieve annual revenues of Rs 20,000 crore this year.”
While increasing milk productivity and improved breeds and feeding practices in India is a challenge for Amul, Sodhi emphasised on the need to encourage the next generation of the rural farmer to remain in animal husbandry business.
“It is possible to earn Rs 40,000 per month with 30-40 cows and buffaloes at project cost of Rs 21 lakh including a loan component of Rs 15 lakh,” Sodhi said.
Unperturbed about the new entrants in the dairy segment from the private sector and MNCs, Sodhi, welcoming the competition, said, “India’s organised sector only constitutes 20 per cent of the Rs 4 lakh crore market size for dairy products in the country and there is space and scope for everyone.”
“Our philosophy for the past 60 years have been to ensure remuneration prices for our 3.5 million members and value for money for the consumer, using the best ingredient at a fair price,” Sodhi said.
Stating that butter making was not a rocket technology and every housewife knows how to make butter, Sodhi said, that 100 grams of Amul butter was still be cheaper than 100 grams of premium soap, which was possible only because of Amul’s philosophy of keeping in mind the farmer and consumer.
“Unlike industry practices, where you buy raw material cheaper and realised better in sales, Amul ensures that raw material is at the best price and selling price remains lower compared to peers,” he said.
“Hence, we cannot spend more than one per cent of our revenue on advertising while other food companies spend 8-15 per cent annually,” Sodhi said, indicating that its advertising expenditure last year was 0.8 per cent.
Sharing the secret of Amul remaining a youthful brand, Sodhi said, “Most of the top members of the management are at their first job working for over four decades and hence have neither changed their campaign nor their agency. Hence, continuity and consistency in communication has kept Amul young with the butter girl.”
Brands
Malaika Arora launches accessories brand Maejoy
The Bollywood star’s lifestyle brand, built with Myntra and Exceed Entertainment, promises aspirational fashion without the high price tag
MUMBAI: Malaika Arora is not the first Bollywood star to put her name on a brand, and she will not be the last. But Maejoy, the accessories label she has launched in partnership with Myntra Jabong India Private Limited (MJIPL) and talent outfit Exceed Entertainment, at least has a sharper pitch than most. The brand drops with 250-plus styles spanning handbags and lab-grown diamond jewellery, two categories that sit squarely in the sweet spot between aspiration and affordability, and lands on Myntra’s platform from day one, putting it in front of millions of shoppers without breaking a sweat.
The handbag range covers the full gamut: crossbody bags, structured shoulder bags, bucket bags, totes, workwear classics, backpacks and clutches, rendered in synthetic leather, raffia, braids, satin, rhinestone and metallic finishes. The jewellery line runs to rings, earrings, pendants, bracelets and tennis bracelets in silver, gold and rose-gold tones, set in 925 sterling silver with IGI and GCI certified lab-grown diamonds. The brand’s guiding philosophy, “The Joy of Being Me,” stakes its claim on individuality and self-expression; its three brand pillars, Authentic, Empowering, Accessible, are the usual suspects, though the lab-grown diamond bet is savvier than it sounds. Lab-grown stones now sell at a fraction of the price of mined ones, and the category is growing fast in India as younger buyers wise up to the arbitrage.
“Maejoy is a labour of love. Throughout my career, whether on screen, in business, or through my personal style, I’ve championed the idea that fashion should be empowering yet effortless. The brand aims to democratise global fashion trends while offering women something that extends the feeling of luxury every day, be it a lab-grown diamond or a perfectly crafted handbag,” said Malaika Arora, founder of Maejoy
MJIPL, the B2B wholesale arm of Myntra, is putting its design and brand-building muscle behind the venture. Suman Saha, chief experience officer and head of house of brands at MJIPL, was bullish on the tie-up.
“Maejoy brings together Malaika Arora’s distinctive style perspective with a strong proposition in the accessible yet elevated accessories space. We believe the brand’s fashion-forward designs and thoughtful positioning will connect strongly with discerning consumers.”
Suman Saha, chief experience officer, head of house of brands, MJIPL
Afsar Zaidi, chief executive of Exceed Entertainment, the talent management firm that helped broker the deal, has worked with MJIPL before and was characteristically direct about what makes Arora an unusually bankable partner.
“Building celebrity-led brands requires a delicate balance of authenticity and market viability. Malaika is a rare talent who commands equal respect as a fashion icon and a savvy businesswoman. We are proud to facilitate this partnership that brings together her creative clout and Myntra’s brand-building excellence,” said Zaidi
Celebrity fashion brands live or die on one question: does the star actually wear it, or is the cheque the only thing they signed? Arora, who has spent three decades as one of Bollywood’s most-watched style references, has at least built a plausible case. Maejoy is live now on www.myntra.com and the Myntra app. The real test, whether shoppers buy the handbag or just the hype, starts today.
