RS Sodhi steps down as Amul’s managing director

R S Sodhi, who served as the managing director of India’s leading dairy brand Amul for 13 years, resigned from his position "with immediate effect" on Monday. He has been replaced by Jayenbhai Mehta, who took over as the interim managing director. Mehta had been serving as the CEO of Gujarat Cooperative Milk Marketing Federation (GCMMF), the farmers' cooperative that operates the Amul brand. 

Sodhi's resignation came following GCMMF's board decision to replace him. Sodhi, who joined Amul in 1982 as a salesperson, was elevated to the position of managing director in 2010 and was given an extension of two years in 2021 by GCMMF.

"As per the resolution no.2 of the board meeting, it was proposed to end your service as the federation's MD with immediate effect. Thus, you are hereby directed to relinquish your charge as MD with immediate effect and hand it over to federation COO, Jayenbhai Mehta," news agency PTI quoted a communication by GCMMF’s board as saying.

Sodhi confirmed the news to the media and refuted claims that he has been "sacked" or "ousted". He said, "My term as MD ended two years back and I was on an extension. I had requested the board to relieve me from this responsibility. The board had told me to wait for some time saying they will relieve me once they find a suitable replacement."

"When I again requested the GCMMF board to relieve me, they finally accepted my request and relieved me today. It was my own decision to step down and I am very happy today," he added.

Sodhi, who is an alumnus of the Institute of Rural Management (IRMA), has also worked as Amul’s general manager for marketing from 2000 to 2004 and Amul’s CGM between 2004 and 2010. In July last year, he was elected as the president of the Indian Dairy Association.

 In September last year, Sodhi said that India’s milk production is expected to reach 628 million tonnes in the next 25 years. "Milk production in India is projected to grow at a CAGR of 4.5 per cent to reach 628 million tonnes in the next 25 years," he had said. 

"The demand for milk is expected to rise to 517 million tonnes in the next 25 years, leaving an export surplus of 111 million tonnes," he added.

His successor, Mehta, has worked in Amul for 32 years in various positions such as Amul’s brand manager, group product manager and general manager in the marketing section. 

Last year, leading dairy brands including Amul had hiked milk prices four times owing to higher input costs, a rise in cattle feed prices and labour costs. Rising cattle feed prices and transportation costs had earlier forced dairy companies to increase milk procurement prices in FY22 to support farmers.

ICICI Securities in its report said that steep inflation in milk prices continues as dairy companies have raised milk selling prices by 8-10% in the past ten months due to a sustained rise in milk procurement prices. "While we note the global SMP prices are down YoY, weak flush season, as well as inflation in cattle feed prices, are chief reasons for the higher milk prices," the agency said in a report released on December 14.