Amul bags Delhi milk scheme deal

Delhi Milk Scheme(DMS) is a retail unit started by India’s first president Rajendra Prasad. It has over 550 milk booths located in Delhi and NCR.

Delhi government had invited milk cooperatives to run DMS in June 2018. Amul will pay Rs 42.3 crore as lease rent to use DMS assets in FY19 and FY20.

The lease amount will be increased by 6-7 percent annually. Amul will handle the operations and management of DMS for 30 years on renewable basis.

It will utilise DMS’ processing plant with capacity of 5 lakh litres per day. This deal will increase amul’s market share in Delhi NCR by 10 percent to 53 percent post FY20.

It will also increase Amul’s revenue by Rs 1,000 crore annually post FY20.

In FY19 and FY20, the lease amount will be increased by 6-7% annually. Amul will handle the operations and management of DMS for 30 years on renewable basis. It will utilise DMS’ processing plant with capacity of 5 lakh litres per day.

This deal will increase Amul’s market share in Delhi NCR by 10% to 53% post FY20. It will also increase Amul’s revenue by Rs 1,000 crore annually post FY20.

Amul estimates it will pay `3,400 crore as lease amount for DMS for 30 years. Delhi milk scheme clocked a loss of nearly Rs 900 crore in FY18.

Source TV18