3rd January, 2017
With limited economy due to demonetization, the Fast-moving consumer goods (FMCG) sector has resorted to decline of production because of the accumulation of stocks.
In the wake of demonetization, India’s largest dairy cooperative, Amul suffered minimal loss. On visiting the Matunga Outlet we realized that there was no lasting impact of demonetization. With a minimal drops of 20% sales, Amul still managed to sell it’s products effectively. Being customer friendly, most products were given to the locals in good will terms who offered to pay up later. After fifteen days the sales has retained it’s original positions and Amul is back in the race. On asking the manager of the outlet, he did not reflect an eager preference for online transactions and other such websites such as PayTm, Freecharge etc. He also praised the Government for taking this step for a better India and mentioned their support for the cause of “cashless India” . Though after the demonetization incident they had applied to the bank for a card swiping machine but the bank hasn’t responded thus driving them to accept only cash from the customers. Amul’s products having a long shelf life thus made it through the rough period while other FMCG products suffered drastically.
Although the chaos is temporary in nature and with time the situation has stabilized with the availability of the new currency notes Amul is focusing more on modern retail, institutional sales and encouragement of general trade retailers to adopt the credit/debit card system.