#T-Shirt export surplus

[paintkari]

[cherrylng]

The reality of Oxfam's involvement with Coldplay [CROSSBEAT (August 2006)]

In the UK, where philanthropy is very popular, celebrities and individuals often choose one (or more) of a number of organisations and campaigns to support and work with as part of their life's work. Coldplay's commitment to the UK-based development NGO Oxfam's 'Make Trade Fair' campaign is widely known.

The ‘unfair trade’ that prevails in the world is a long-standing problem between the so-called ‘developed’ and ‘developing’ countries. Historically, it has the same roots as the unfair colonial trade once practised by Western countries. Western countries buy raw materials at low prices from developing countries (without teaching them the technology) and export them, while selling goods mass-produced in their own countries to developing countries. Even now, developed countries are forcing developing countries to open their markets, putting pressure on the livelihoods of local farmers and workers. In the 1990s, when people became aware of the problems of unfair trade, it began to become a problem that footballs made by young children in Pakistan and other Asian countries, who were not allowed to go to school and were forced to work for cheap wages, were traded at high prices in the UK. In addition, in the banana industry, where five major corporations control more than 80% of the world market, the struggles of Latin American farmers, who are forced to ship at unfairly low prices, attracted attention and support movements in the late 1990s. As a result, when the first ‘fair trade bananas’ were imported into the UK in 2000, it was widely reported.

In 2002, Oxfam launched an international campaign to bring together the sporadic campaign to correct unfair trade and to call on governments and the WTO to change trade rules and shift policies. In 2002, Chris and his staff visited the Dominican Republic and Haiti in Central America to see first-hand the plight of the local people and the production of coffee beans, which had seen a decline in wholesale prices in recent years. In 2003, they visited Mexico, where they performed as a band at a concert in support of maize farmers fighting against cheap imports from the USA. In 2005, Chris toured Ghana (see photo) and was shocked to learn that cheap agricultural imports from the West were destroying local agriculture and contributing to poverty. Incidentally, Ghana is the second largest producer of cocoa beans in the world, yet it cannot make chocolate. Even if they did, they could not export it because of high tariffs imposed by developed countries.

What is needed is not for rich countries to seek more wealth, but for them to share it with less rich countries. "When I was a child in the 80s, if you saw on TV the miserable situation of farmers, the only solution was to ‘donate money’. But here I see other solutions. I mean, everyone can participate by speaking up. The more I study, the more I think that poverty is also caused by trade imbalances. What I feel is particularly serious is that we are ruining the industries of developing countries by exporting products that are surplus in developed countries at unbeatable prices. It's crazy. It should be easy to stop." (Chris).

Chris has made the movement known by wearing campaign slogan T-shirts in public, including at shows, and by contributing a column to newspapers. "As long as we're providing music with heart, we can talk openly about things we feel are important in the media in developed countries. We can also promote Fair Trade and play our part in putting pressure on governments in the developed world to expand our activities and bring about trade inequalities." -Sumi Imai

[ruman-el-tex]

EL-TEX-Garments Items supplier & Exporter in Dhaka,Bangladesh.

Hello Everyone ! Greeting ! Hope you're well. Herein pleased to introduce "EL-TEX'' as a Manufacturing-Manufacturer-Exporter as well as a supplier of Full Fashion Knitwear's-Woven wear's & Sweaters from Bangladesh. Like: Pull Over-Cardigan-Jumper-Scarf also Polo Shirt-Blouse-T/Shirt-Sweatshirt-Hoodie-Fleece Jacket-Pant-Jacket-All type of Uniforms-Sports Jersey Shirts and Protective Vest-Men's Shirts-Ladies' Tops-Trouser-Leisure Clothing-GYM Wears-Stritch Leggings-Active Tank-Leggings-Swimwear-Short-Running Wear-Tight-Baby Wears-Underwear & Caps-Fashionable Ladies Dress etc.

We are well experienced & skilled through working in this RMG sector from end of 1999 on these mentioned products to produce & export to international market, with to deliver the best because we feel “Customer deserve the best”. We don’t only cater for the best quality also gives utmost importance to timely shipment at competitive price. We lay stress on quality, economy and timely shipment. If you think or have any development for any of your client/customer, Please feel free to advise us with details requirements, hope we can make you happy through our service.

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[eraabsource]

Eraab Source Dhaka Bangladesh

Eraab Source is a garment exporter based in Bangladesh, a country known for its thriving textile and apparel industry. The company specializes in manufacturing and exporting high-quality garments for men, women, and children.

Eraab Source is committed to providing its customers with excellent products and services that meet their specific needs. The company has a team of highly skilled professionals who work closely with clients to understand their requirements and deliver products that exceed their expectations.

The company has a wide range of products that include t-shirts, polo shirts, hoodies, jackets, and more. They also offer customization options to clients, such as adding logos, embroidery, and prints to garments.

Eraab Source is committed to ethical and sustainable business practices. They ensure that their garments are made from high-quality materials and produced in an environmentally friendly and socially responsible manner. They also prioritize fair labor practices and provide their workers with a safe and healthy work environment.

The company has established a strong reputation in the industry for its quality products, on-time delivery, and excellent customer service. They have a loyal customer base that includes businesses in the United States, Europe, and other parts of the world.

In conclusion, Eraab Source is a reputable garment exporter that prioritizes quality, sustainability, and ethical business practices. They offer a wide range of products and customization options, and their commitment to customer satisfaction has earned them a loyal customer base.

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[alljaankari]

These 10 Markets in Delhi Have Affordable and Trendy Clothing for Everyone

Until recently, women were the only ones who went shopping. The metrosexual men of the modern day know how to look sharp, so this summer, prepare to look dashing and fly without spending a lot of money. You’ll find funky graphic tees, cheap jeans, breezy khaki pants, and more at these cool markets in the city. You can give your wardrobe a makeover without the guilt of spending too much on clothes!

1.  Sarojini Nagar Market

Sarojini Nagar was meant to be the setting for the phrase ‘the sky’s the limit’. Can you think of any other place which offers such an incredible variety of everything? Among Delhiites, this flea market is the place to go for all kinds of fashion needs, and for good reason. It is a haven for all the guys in town because they can buy jeans, tie-dyed t-shirts, khaki pants, button-ups, blazers, and just about anything else they need at throwaway prices!

Where | Central Market – Lajpat Nagar II, Lajpat Nagar

Timings | 10 AM – 9 PM

2. Janpath

In terms of fashion clothing and junk jewellery, Janpath is a popular market among college students. The attraction is not only for girls anymore. It is also possible to find many options for men on the market. They have it all, including graphic t-shirts, belts, shoes, and denim, at really affordable prices. You can find some great deals if you use your bargaining skills. During chilly weather, you can find jackets or sweats to keep you warm.

Where | Janpath Market, Janpath Road, Janpath, CP

Timings | 11 AM – 9 PM

3. Karol Bagh Market

There is no better place to get affordable yet trendy clothing than Karol Bagh Market in Central Delhi. A polo shirt can be purchased here for as low as Rs 200, and a sweatshirt can be purchased for as much as Rs 300. In the market, you can find everything you need for a stylish wardrobe, including shoes, accessories, jackets, jeans, and more. You’ll also be able to enjoy some delicious street food while you’re there. Take advantage of your visit to Gaffar by checking out the latest electronics!

Where | Karol Bagh Market, Block 1, WEA, Karol Bagh

Timings | 11 AM – 10 PM

4. Palika Bazaar

You feel as if you’re in another world when you’re in this underground shoppers’ paradise. With around 390 shops, it’s an air-conditioned shopping hotspot where you can score an array of great clothes at affordable prices, among a gazillion other things. In spite of how many criticize the products here as defective, the range and variety you’ll find here is pretty friggin’ impressive. In order to shop here, you need to be a good bargainer because you can even negotiate to have a glow-in-the-dark tee reduced to just 200 for Rs 800.

Where | Palika Bazaar – CP

Timings | 10:30 AM – 8 PM

5. Central Market

When you step foot in Lajpat Nagar’s Central Market, your inner shopaholic will rise from the depths of abyss. You’ve got to keep your eyes peeled for funky graphic tees from roadside stalls at this market, so get ready for a total wardrobe revamp. So gear yourself up to be spoilt for choice with apparel in many styles and colours. This bazaar offers a huge variety of shops, and you’ll never be able to choose between them all!

Where | Central Market – Lajpat Nagar II, Lajpat Nagar

Timings | 10 AM – 9 PM

6. Atta Market

Atta Market in Noida, located in sector 18, is famous for its affordable attire from shops such as New Look Collection, JMD Fashion Zone, and others. Stylish jeans, hoodies, shirts, t-shirts, and hoodies in a variety of fabrics and prints are available in bulk in this store. Clothing stores regularly offer sales starting at Rs 150, isn’t that unbelievable? However, once clothes are sold in these shops, they cannot be taken back! Wear it or throw it! Even though it’s a bit far, you’ll be glad to make the trip when it gives you export surplus clothes!

Where | Atta Market – Sector 18, Noida

Timings | 10 AM – 9 PM

7. Chor Bazaar

Chor Bazaar offers goods from virtually every manufacturer in the country, and sometimes even from other countries. In the heart of Old Delhi, close to the Lajpat Rai Market, this flea market comes to life on Sunday mornings. You’ll find almost every type of clothing here at really affordable prices that you might forget you’re even in Delhi for a moment. There’s a famous store named Prince Majestic, which sells a wide variety of clothes in abundance, including really dapper sherwanis and traditional Indian suits for men at incredibly low prices.

Where | Chor Bazaar – Chandni Chowk, Behind Red Fort

Timings | 6 – 10 AM (Every Sunday)

8. Monastery Market

Located right in our very own capital, this market feels like a mini Tibet. There are many options to choose from here, such as shirts, t-shirts, jeans, bags, belts, caps, and even shoes at very affordable prices. College-goers & tourists alike are attracted to its Tibetan charm. It is usually filled with woollen clothing, such as pullovers, sweaters, cardigans, and gloves.  A leather jacket is another item that makes people want to shop!

Where | Monastery Market – Bela Road, Monastery Market, Ladakh Budh Vihar Colony,

Timings | 10 AM – 8:30 PM

9. Mohan Singh Place

As we know it, this area was probably the birthplace of the shopping mall. This shop offers custom-made clothing for men since 1968, including suits, jeans, shirts, kurtas, and trousers. A perfect fit is ensured by measuring everything precisely. We can confidently say that their clothing has for sure won over the game of custom clothing since they feel like second skin when worn. The best feature is that they have all kinds of fabrics, so you can bring your own fabric and have them make you a shirt that highlights all your toned muscles. It’s time to throw away those baggy tees & droopy pants & slip into something more classy this summer.

Where | Mohan Singh Place – Baba Kharak Singh Marg, Outer Circle, CP

Timings| 10 AM – 9 PM

10. Yashwant Place Commercial Shopping Complex

This hidden gem is nestled among the affluent suburbs of Chanakyapuri and houses all types of leather items at the most affordable prices and of such high quality, that you won’t believe it’s there! There are a lot of foreigners who come here to purchase high-quality leather clothing, bags, and accessories. For some cool leather jackets this winter, head to this awesome complex!

Where | Yashwant Place Commercial Complex – Opposite Post Office, Satya Marg, Chanakyapuri

Timings | 10 AM – 10 PM

[pricemantra]

Express yourself with stylish t-shirts for men's at Price Mantra-The Export Surplus House.

Kindly inbox us for more details.

Web :www.pricemantra.co.in

[monday4econlive]

In early July, 2018, US President Donald Trump followed through on months of threats to impose sweeping tariffs on China for its alleged unfair trade practices.

So far, the US has already slapped tariffs on US$250 billion worth of Chinese products, and has threatened tariffs on US$267 billion more. This event had a significant impact on the international trade between the two countries, hurting both well-being of U.S and China’s economies. So why is this the case? How much does high tariff affect a country’s economy? These questions bring us to the discussion about international trade.

  In Econ 20A, we have learned that trade can make everyone better off. When regarding international trade, we take the concept ‘comparative advantage’ into account. In order for the countries to specialize and thus maximize profits, they choose to produce and export products that they have a comparative advantage in. For example, China can produce more high-quality T-shirts at lower cost and the US is able to manufacture machines more efficiently, then the US will export machines and import T-shirts from China. Meanwhile, there are always gains and losses of the countries involved in international trade. Let’s take a look at the analysis for an exporting country and an importing country, as shown in Figure 2 above.

  From the welfare calculations, we can conclude that: When a country allows trade and becomes an exporter of a good, domestic producers of the good are better off, and domestic consumers of the good are worse off; trade raises the economic well-being of a nation in the sense that the gains of the winners exceed the losses of the losers. In reverse, if the country becomes an importer of a good, domestic consumers of the good are better off, and domestic producers of the good are worse off.

  And for an importing country, tariff is a tax on goods produced abroad and sold domestically. Now we consider the gains and losses from the tariff. Because the tariff raises the domestic price, domestic sellers are better off, and domestic buyers are worse off. In addition, the government raises revenue.

  From Figure 4, we find a decrease in total surplus (deadweight loss of the tariff). Like most other taxes, tariff distorts incentives and pushes the allocation of scarce resources away from the optimum. A simulation conducted by the state backed Guangdong University of Foreign Studies' Research Center for International Trade and Economics and the Chinese Academy of Social Sciences' Institute of World Economics and Politics measured the potential implications of a trade war between the United States and China. By using a multi-country global general equilibrium model, the simulations produced numerical values that represent the effects of a US-China trade war. Overall, the results indicate that China "will be significantly hurt by tariff trade war in all indicators, including welfare, gross domestic product (GDP), manufacturing employment and trade." However, it is pointed out that although there will be definite impacts on China, the costs should be maintainable and will not severely damage the Chinese economy. In regard to the United States, the simulation produced results that described, "the US will gain on welfare, GDP and non-manufacturing production, but hurt employment and trade (both export and import).” Since each nation maintains a large economy, their actions not only effect each other but also the entire world. 

  So, to put it into a nutshell, tariffs hurt overall economic well-being and the government should reduce it to put into building public facilities and infrastructure, making the society better off.

[blog-generic-flipper]

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[grydry99-blog]

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[essayprof]

1 suppose that the world price of a t shirt is 20 does this country import or export t shirts how many 2 suppose that this country engages in trade a calculate the amount of consumer surplus that results in this market b calculate the amount of

1 suppose that the world price of a t shirt is 20 does this country import or export t shirts how many 2 suppose that this country engages in trade a calculate the amount of consumer surplus that results in this market b calculate the amount of

1.Suppose that the world price of a t-shirt is $20. Does this country import or export t-shirts? How many?

2.Suppose that this country engages in trade.

a)Calculate the amount of consumer surplus that results in this market.

b)Calculate the amount of producer surplus that results in this market.

3.Suppose that the government imposes a $10 import tariff on t-shirts.

a)How many t-shirts do…

[businessliveme]

Energy Markets Need Winter, and Climate Change Is Taking It Away

(Bloomberg) — Even before the deadly virus struck, another menace confronted the global energy industry: the warmest winter anyone can remember.

Russia’s winter was so balmy that snow was trucked into downtown Moscow for New Year, and bears came out of hibernation. In Japan, ski competitions were canceled and the Sapporo Snow Festival had to borrow snow.

On the shores of Lake Michigan, Chicago residents watched playgrounds and beaches disappear under the waves as warm weather swelled the water level. Norwegians basked in T-shirts in January. London’s spring daffodils have already flowered.

For global energy markets it’s a disaster—and as the world continues to get hotter it’s something producers, traders and government treasuries will have to live with long after the acute dislocation of the coronavirus has passed. The industry relies on cold weather across the northern hemisphere to drive demand for oil and gas to heat homes and workplaces in the world’s most advanced economies.

Climate activists might find a certain poetic justice in energy markets suffering from the global warming caused by fossil fuels. Burning natural gas, oil and other fuels to heat homes and businesses accounts for as much as 12% of the greenhouse-gas emissions blamed for raising the world’s temperatures.

The loss in global oil demand due to mild temperatures is probably about 800,000 barrels a day in January, according to Gary Ross, chief investment officer of Black Gold Investors LLC and founder of oil consultant PIRA Energy. That’s the equivalent of knocking out Turkey’s entire consumption. The natural gas market has taken a similar hit.

“The oversupply keeps coming and winter so far hasn’t really showed up,” said Ron Ozer, chief investment officer of Statar Capital LLC, an energy-focused hedge fund in New York.

Last month was the hottest January ever in Europe, the Copernicus Climate Change Service reported. Surface temperatures were 3.1 degrees Celsius (5.6 degrees Fahrenheit) warmer than average.

Northern Europe was particularly hot, with some areas from Norway to Russia more than 6 degrees above the 1981-2010 January average. Temperatures in Tokyo took until Feb. 6 to hit freezing point, the latest date on record. Globally, the last five years have been the hottest for centuries, as greenhouse gases change the Earth’s ecosystem.

Natural gas prices have collapsed globally as the weather crimped the need for heating. U.S. futures are trading at the lowest levels for this time of the year since the 1990s. Asian spot prices for liquefied natural gas have crashed to a record low as demand slumps in the world’s three biggest importers—Japan, South Korea and China.

Based on weather-driven demand data, the U.S. and Asia are having their warmest winters on record and Europe is having its second warmest, according to Joe Woznicki, a meteorologist for Commodity Weather Group LLC. A key measure of heating demand, known as heating degree days, is 12% below the 10-year average in the U.S., 14% lower in Asia and 13% in Europe.

And it’s not just markets that are reeling. It’s also an issue for government treasuries. Russia, for example, relies on its oil and gas companies for around 40% of budget revenues.

Oil exports have been holding steady, but gas exports are dropping. Sergei Kapitonov, gas analyst at Moscow-based Skolkovo Energy Center, estimates Gazprom’s exports to Europe and Turkey fell in January by about a quarter from a year earlier. Gazprom stock is down 11% this year.

The collapse in oil prices—spurred by the coronavirus but pushed along by the warm weather—prompted Saudi Arabia to press its OPEC+ allies for a production curb this week. Three days of wrangling in Vienna didn’t produce a clear result, but it’s a reminder that the kingdom can’t run its state finances with oil prices in freefall. From Algeria to Venezuela, similar dynamics are in play.

This year’s especially warm winter was triggered by events in the Arctic. An intense weather pattern there kept the cold locked in the Arctic region, leaving North America and Eurasia relatively mild.

“When the winds are stronger they act as a barrier to keep Arctic air focused over the pole and keeps them from spilling southward,” said Bradley Harvey, a meteorologist with Maxar in Gaithersburg, Maryland. “That is likely to continue for the balance of the month and even into March.”

Rain patterns have also been unusual—and that’s added to volatility too. In Norway, the biggest source of electricity comes from running water through turbines. The wettest January since records began turned a deficit of water in reservoirs in December to a huge surplus in January—and sent prices crashing in the Nordic power market.

The abnormal winter could hardly have come at a worse time for the U.S. gas market, which is already suffering a glut. U.S. shale drillers have delivered two years of unprecedented production growth and in the Permian Basin of West Texas and New Mexico there’s so much gas—the byproduct of drilling for oil—that producers are even paying to get rid of it.

Europe and Asia were set to become important export outlets for American gas. Then the weather changed.

“It’s unfortunate that we’re making all this LNG that’s not worth very much around the world,” Corey Grindal, senior vice president of supply at Cheniere Energy Inc., said.

The post Energy Markets Need Winter, and Climate Change Is Taking It Away appeared first on Businessliveme.com.

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[coolmohnishahluwalia]

Amul's going utterly butterly digital

Amul, a brand almost as old as the nation itself, is gearing up for a phase of growth that includes many of today's tools of disruption, including apps and e-commerce. The biggest assets, though, continue to be its dairy farmers

Fifty years ago, the four-year-old National Dairy Development Board (NDDB) in Gujarat’s Anand flagged off what went on to become the world’s largest dairy development program. ‘Operation Flood’ or ‘White Revolution’ had one objective: To take the Amul model out of Gujarat and replicate it across India. Amul, of course, was the brand the milk farmers of Anand’s Kaira district had launched to process surplus buffalo milk—a first in the world—into powder, butter, and cheese. This was possible thanks to a dairy that was inaugurated in 1955 by then Prime Minister Jawaharlal Nehru.

From an era in which women could be seen lining up outside a shed in Kaira to deposit milk to the age of e-commerce, the Amul brand has sustained, thrived and evolved. Delivery boys sporting Amul T-shirts are a a common sight on the streets of Ahmedabad, going door-to-door to deliver its products to customers who order online. What started as Verghese Kurien’s accidental tryst in the milk business—he had left a government job to start Kaira’s milk cooperative movement along with freedom fighter and farmer leader Tribhuvandas Patel—today sells over 80 products with dairy at the core.

A lot, though, has changed in the past 73 years. “No educated girl in the 21st century wants to marry a dairy farmer who has 20-30 animals,” grins RS Sodhi, managing director of the Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), which manages the Amul brand and is collectively owned by some 3.6 million milk producers in Gujarat.

“The youth no longer find dairy farming sexy enough,” adds Sodhi, who Kurien took under his wing in the early ’80s and who became GCMMF’s chief in 2010. The next generation of farmers has been going to the big cities for education, and most are not too keen to return. Sodhi is counting on technology to encourage them to have a go at running their family dairy farms. For, instance, automated milking machines have been brought in in the dairy farms. Amul’s 79 factories across India are also keeping up with technology. And then, there is e-commerce.

In Ahmedabad, consumers can have products delivered by placing orders online on Amul Online, an app and a website. Locate Amul is another app that helps sales executives find distributor information of Amul parlors, of which there are some 8,000 across India.  Though Locate Amul is for internal sales executives and distributors only, it has the potential to be used for hyper-local delivery at a later date. Says Sodhi: “Our next phase will be near-commerce, whereby customers can order on Locate Amul itself.”

Along with the digital push is the inevitable entry into new categories. A market leader in milk, cheese and butter, Amul has expanded into beverages, chocolates, sweets and now even bakery. Aneesh Roy, executive vice president at Edelweiss Financial Services believes, “To survive in the crowded consumer market, Amul needs to constantly innovate.” Products like Roti Softner, Camel Milk and Amul Tru are evidence of that. Amul Tru, for instance, is a combination of milk and fruit in a ₹10 bottle. GCMMF Chief Operating Officer Kishore Jhala adds that the Roti Softner “comes from the simple idea of allowing rotis to remain soft for a longer time. In the old days, when we needed to carry Rotis for long journeys, our grandmothers would add milk to them; this is the same concept.”

Amul has also begun selling fresh bread and butter cookies in a handful of markets. One reason for the latter is the suspicion in some consumer minds that some biscuit makers were passing off the cheaper palmolein oil as butter. “So we decided to launch our own butter cookies, where you can actually taste the butter,” says Sodhi, adding that people are willing to pay a premium price for these cookies simply because they taste better.

However, Roy of Edelweiss feels pricing might prove to be an issue over the longer term. “India is a value-focused market; even if prices are higher by 5-10 percent the customer will prefer the lowest priced product. In this category (butter cookies), I see Amul as being a very niche product, and not having too much scale unless the pricing is rectified,” he says. For butter cookies, Amul is setting up one plant each in the east, south, and north. Sodhi, on his part, is quick to clarify that “we are not going in as a big national player in all of the bakery [apart from butter cookies]”.

Mithai is likely to be a bigger bet—Amul has set up production units in Anand and Surat in Gujarat, and plans to gradually expand nationally.

“We noticed that the quality of ras malai (an Indian dessert) in the market was not very good. We launched it, and hit ho gaya (it became a hit),” claims Sodhi. As in butter cookies, here too Amul is riding on the trust quotient, as consumers suspect adulteration by neighborhood mithai sellers. “Mithai is nothing but dairy, it’s no rocket science,” says Sodhi. The message is clear: Amul can be extended to any product that has milk at its core. Currently, the company is working on ways to increase the shelf life of these sweets.

If milk is at the core, so are the principles on which the brand was founded, the main one being getting farmers the best price. For instance, when Amul tentatively launched chocolates in 1973, the cocoa farmers of Kerala and Karnataka approached Kurien to find a way to get them fair prices. That was the cue to go the whole hog in a space in which Cadbury ruled the roost. Though that may not have worked in terms of market share—Cadbury is a clear leader with a 66 percent share, as per news reports—Sodhi has zeroed in on dark chocolate as a niche, where Amul claims to be the leader with a 65 percent share. Dark chocolate, however, is just 6 to 7 percent of the total market, though it is growing at a healthy 15-20 percent year-on-year.

So far, Amul has had a successful run thanks to great leadership. But what next after Sodhi? Sodhi, who is 61, expresses his concerns: “Amul has been successful because of the wisdom of its farmers and professionals. But we need to figure out how we will continue to remain successful.”

Fresh milk products are still the primary business, which brought in roughly 50 percent of Amul’s ₹33,150 crore sales turnover in fiscal the year 2019. And the opportunity to grow in this segment is still massive, what with the organized sector accounts for just $28 billion (approximately ₹2 lakh crore) of the $100 billion (approximately ₹7 lakh crore) industry. While the overall Indian dairy industry has been growing at about 5 percent year-on-year, the organized dairy sector is growing a lot faster: At 13-14 percent.

In 2010, when Sodhi took charge as MD, Amul had a turnover of ₹8,005 crores. In an interview with Business India then, he declared that he was aiming at ₹30,000 crores by 2018-19. He’s gone beyond that, but the challenge clearly is to keep growing at a time when competition from both local and global players is intensifying.

Sodhi has a strategy for Amul’s next phase of growth: Take on regional brands available in friendly neighborhood stores in smaller towns. He knows that consumers find comfort in such labels of fresh products available close to home. “Local players are big competition in terms of the product, packaging, distribution and brand building,” admits Sodhi. Eating into their share by winning the trust of consumers in these markets is key to taking Amul deeper into India.

For instance, though in the ice creams category local brands like Arun, Dinshaw’s, Vadilal and Ramani Ice cream call the shots in their respective markets, Amul has been giving them a run for their money. Amul is the market leader in ice creams with a 42 percent market share.

Amul’s weakest link in the south, with many of its products not available in this region. “My sense is they will have to work like any late entrant, where they target any niche market, like the premium end, and then start by gaining a foothold in the mid and lower end of the market,” says Roy. Ice creams and butter-based bakery products may be Amul’s best bets to make deeper inroads south of the Vindhyas.

Another concern is the proposed Regional Comprehensive Economic Partnership, a trade agreement between Asean and six other countries, for reducing or eliminating tariff and non-tariff barriers on imports and exports, which has many Indian farmers and manufacturers worried. Sodhi explains why. “Many of these countries want to dump their milk in India. New Zealand (one of the countries in the proposed partnership), for instance, has 10,000 farmers, whose incomes will double, but what about the 10 crore farmers in India, whose income will halve?” Amul is working closely with the government in the hope that the RCEP is not signed. Other threats are the emergence of vegan products (non-dairy) and cheaper versions (like the palmolein oil biscuits).

GCMMF is unlike most private sector companies, whose main the objective is to churn out profits by cost-effective sourcing of raw material. That’s because the cooperative’s shareholders are also its suppliers. And the farmer’s well-being is central to every strategic decision taken, often a bigger priority than market leadership.

At a time when the agri-economy is in distress, Sodhi believes that dairy “acts as insurance for farmers, insulating them from fluctuations and shocks (in the Agri sector). This is often the only cash crop that they have.”

Sodhi takes pride in having a business model that steers clear of government or private investor funding. Reason? A possible conflict of interest between the farmers and the investor or government.

He points to the example of one of Australia’s largest cooperatives Murray Goulburn, which got listed in 2015. What followed was a series of conflicts between producers and investors; a few years ago the investors decided to sue Murray Goulburn and its board for allegedly misleading them ahead of the fund-raising. “Eventually, farmers started leaving the cooperative and, it was bought over by Canadian dairy company Saputo in April 2018,” says Sodhi. The cooperative movement in Australia has petered out and in New Zealand, too, private investors have entered Fonterra, the world’s largest dairy. “We will never make this mistake,” assures Sodhi.

In fiscal year 2019, Amul procured a mind-boggling 230.08 lakh liters per day. “Six years back, we were the 18th largest dairy in the world, today we are the 9th largest. In three to four years, we plan to be in the top five,” promises Sodhi.

Kurien strongly believed that Amul’s biggest asset was its people. Sodhi is ensuring that Amul thrives by continuing to unleash the energy of those assets. He also has to groom a successor with a similar mindset.

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