As a dairy economist, Amul’s announcement of a five-fold expansion in its protein production capacity and rising prominence in Rabobank’s Global Dairy Top 20 list underscores its transformative trajectory in the global dairy industry. By leveraging its sponsorship of nine out of ten teams in the Indian Premier League (IPL) 2025, Amul is promoting its 15-product protein range and embedding a nuanced narrative around daily protein consumption—one gram per kilogram of bodyweight—into India’s cultural fabric. This strategic pivot, rooted in a direct-to-consumer (D2C) model, positions Amul to reshape dietary habits while scaling its value-added portfolio. Below, I analyse Amul’s protein strategy, its ascent in global rankings, and compare it with the approaches of two global dairy titans: Nestlé and Fonterra.
Amul’s Protein Play: Scale, Strategy, and Cultural Leverage
Amul, under the Gujarat Cooperative Milk Marketing Federation (GCMMF), is capitalising on its daily production of three million litres of whey protein to fuel its ambitious growth. The company’s D2C approach—selling whey protein directly via its Amul shop, mobile app, and web portal—provides deep consumer insights, enabling targeted marketing and product innovation. Managing Director Jayen Mehta’s emphasis on converting whey into high-margin, value-added products reflects a strategic shift from commodity dairy to functional foods, a segment with growing demand among health-conscious consumers.
The IPL sponsorship is a cultural masterstroke. By aligning with India’s most-watched sporting event, Amul transcends the “gym bro” stereotype, pitching protein as essential for all Indians, from urban millennials to rural families. The “one gram per kilo” guideline simplifies nutrition science into an actionable mantra, potentially driving mass adoption. However, scaling production five-fold presents challenges: ensuring consistent whey quality, managing supply chain logistics, and maintaining affordability in a price-sensitive market. Amul’s cooperative structure, with its farmer-owned model, provides cost efficiencies, but the capital expenditure for such expansion will test its financial resilience.
Amul’s Rise in Rabobank’s Global Dairy Top 20: A Growth Trajectory
Amul’s entry into Rabobank’s Global Dairy Top 20 list in 2020 at position 16, with a turnover of $5.5 billion, marked a historic milestone as the first Indian dairy company to achieve this feat. Despite slipping to 18th in 2021 with a turnover of $5.3 billion, Amul rebounded impressively, climbing to 13th in 2022, driven by a reported brand revenue of ₹90,000 crore ($11.25 billion) in FY25 and a GCMMF turnover of ₹65,911 crore, reflecting an 11-12% year-on-year growth. Over the past decade, this ascent is underpinned by a 17% compound annual growth rate (CAGR), fueled by increased milk procurement (215.96 lakh litres daily in FY19- 20), expanded processing capacity, and new product launches.
Amul’s ranking growth is remarkable given the global dairy industry’s challenges, including lower milk prices in 2023 and currency fluctuations, which slowed the Top 20’s combined turnover growth to a mere 0.3% in USD terms. Amul’s cooperative model, supported by 3.6 million farmers and government incentives from Gujarat, has enabled it to navigate these headwinds. For instance, during the 2020 lockdown, Amul procured 35 lakh litres of milk daily, injecting ₹800 crore into the rural economy, showcasing its resilience and farmer-centric approach.
Amul’s protein expansion could propel it further up the rankings. The global whey protein market is projected to grow at a 7% CAGR through 2030, and Amul’s focus on value-added products aligns with this trend. If Amul achieves its FY26 revenue target of ₹1 trillion ($12.5 billion), it could potentially break into the top 10, challenging companies like FrieslandCampina or Arla Foods, which reported turnovers of $13-15 billion in recent years. However, sustaining this growth requires overcoming export barriers, enhancing processing infrastructure, and competing with global giants’ R&D capabilities. Amul’s domestic focus and cultural marketing provide stability, but international expansion will be critical to cement its top-tier status.
Market Nuances and Economic Implications
Amul’s protein push taps into India’s rising health consciousness, driven by urbanisation, fitness trends, and increasing disposable incomes. However, low per capita protein consumption and cultural dietary preferences—often vegetarian or low in animal-derived proteins—require Amul to educate consumers while ensuring affordability. With their global expertise, competitors like Nestlé and Fonterra could intensify competition if they tailor strategies to India’s market dynamics.
Amul’s expansion could economically stimulate rural dairy economies by increasing demand for milk solids, benefiting its 3.6 million farmer-members. The cooperative’s daily payments of ₹200 crore to farmers underscore its role as a rural economic engine. Yet, the capital-intensive nature of scaling whey processing may strain margins unless offset by premium pricing or government subsidies. Globally, Amul’s protein focus aligns with the whey market’s growth, but navigating trade barriers and quality certifications will be critical to compete with Fonterra’s export dominance or Nestlé’s premiumization.
Conclusion
Amul’s five-fold protein production target, underpinned by its IPL sponsorship and D2C model, is a calculated bid to democratize protein consumption in India while strengthening its global standing. Its climb from 16th to 13th in Rabobank’s Global Dairy Top 20 reflects a robust growth trajectory, with the potential to reach the top 10 by FY26 if it sustains its momentum. Compared to Nestlé’s premium, global approach and Fonterra’s B2B focus, Amul’s strategy is uniquely rooted in cultural resonance and affordability, giving it a domestic edge. However, scaling production, sustaining consumer adoption, and expanding internationally will require balancing innovation, cost, and quality. As Amul redefines protein as a household staple, its success could reshape India’s dairy economy and set a benchmark for regional players in the global dairy race.
