History of AmulHistory of Amul

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India.

It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).

AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development.

Amul has spurred the White Revolution of India. It is also the world's biggest vegetarian cheese brand.

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Success!!

Robust Supply Chain

The vast and complex supply chain

Hierarchical network of cooperatives

Stretches from small suppliers to large fragmented markets

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Low Cost Strategy

Amul adopted a low-cost price strategy to make its products.

Affordable and attractive to consumers by guaranteeing them value for money.

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Diverse Product Mix

Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya

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Strong Distribution Network

Amul products are available in over 500,000 retail outlets across.

India through its network of over 3,500 distributors.

47 depots with dry and cold warehouses to buffer inventory of the entire range of products.

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Technology and e-initiatives New products

Process technology

Complementary assets to enhance milk production

E-commerce.

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GCMMF – Over ViewGCMMF – Over View

GCMMF: Gujarat Cooperative Milk Marketing Federation

GCMMF is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.

CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.

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FactFactssMembers: 13 district cooperative milk

producers' Union No. of Producer Members: 2.79 million

No. of Village Societies: 13,328

Total Milk handling capacity: 11.22 million litres per day

Milk collection (Total - 2008-09):

3.05 billion litres

Milk collection (Daily Average 2008-09):

8.4 million litres

Milk Drying Capacity: 626 Mts. per day

Cattle feed manufacturing Capacity:

3500 Mts. per day

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Amul - Business Model Amul - Business Model

RAW MILK

DriedSkimmed Milk

Powder

Packaged Milk

Ice creamBeverages

Condensed

GheeButterCream

pasteurization

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SWOT AnalysisSWOT Analysis

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Strengths• Largest food brand in India • High Quality, Low Price• World's Largest Pouched Milk Brand• Annual turnover of US $1504 million • Highly Diverse Product Mix• Robust Distribution Network

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• Risks of highly complex supply chain system

• Strong dependency on weak infrastructure

• Alliance with third parties who do not belong to the organized sector

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Opportunities…….!

• Penetrate international markets

• Diversify product portfolio to enter new product categories

• and expand existing categories like processed foods, chocolates etc

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Threats…!Threats…!• Competitors - Hindustan Lever, Nestle

and Britannia

• Still competition from MNCs in butter

• Growing price of milk and milk products

• Ban on export of milk powder

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Health Conscious

Kids Women

Youth Calorie Conscious 20

Kids

I. Amul Kool

II. Chocolate Milk

III. Nutramul Energy Drink

IV.Amul Kool

V. Millk Shaake21

Womens

Amul Calci

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Youth

I. UtterlyDelicious Pizza

II. Amul Emmental Cheese

III.Amul Cheese Spreads

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Health Conscious

I. Nutramul

II.Amul Shakti Health Food Drink

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Calorie Conscious

I.Amul Lite

II.Sagar Skimmed Milk Powder

III.Amul Lite Slim and Trim Milk

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Milk

Ice-cream Manufacturers

Restaurant/Food Chains

Coffee Shop Chains

Temples

Butter/Cheese/GheeButter/Cheese/Ghee

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Bakery & Confectionaries

Pizza Retailers

Snacks Retailers

AdvertisementsAdvertisements

AMUL is well known for its innovative hoardings. Find below a few:

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AdvertisementsAdvertisements

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Amul - Product Diversification

Secret Philosophy Progressive addition of higher value productswhile maintaining the desired growth in existingproducts. Amul introduced products with consistent valueaddition but never left the core philosophy of“providing milk at a basic, affordable price”

Seeking unfamiliar products or markets inthe pursuits of growth with both dairy and non-dairy products

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The 3 C’s…The 3 C’s…

•Customers extremely satisfied•Moved from loose milk to •packaged milk•Ready to try more products•Improved socio-economic conditions

•Largest milk brand in Asia•More than 30 dairy brands•Market leader in ghee & butter•Very strong supply chain•Enjoys Fine reputation•Quality with Affordability

•Defending against Mahananda,Vijay, Milma & other co-operative milk brands

•Aggressive moves against Britannia, Nestle, Mother Dairy and Kwality

Amul – Product PortfolioAmul – Product PortfolioCategory Market Share Market Position

Chocolate Drink 90% 1

Butter, Ghee 85% 1

Cheese 50% 1

Sweets 50% 1

Milk Powder 40% 1

Ice-cream 24.75% 2

Chocolate 10% 3

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Amul – Product Portfolio in Graph Amul – Product Portfolio in Graph M

arke

t sha

re

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To improve further Amul can try out the following ideas:

I) Amul can venture out on new products like Toned milk, Condensed milk that can be used for sweets, Baby food products,

II) There are certain product like Amul basundi, gulab jamoon, choclates etc which are not as popular as Amul ice cream. Amul must try to understand the cause of this through thorough market research and work on improving these products

III) Though Amul’s hoardings are a huge success, it can penetrate even better in the rural areas by advertising through the media viz cable channels and newspapers. Sponsoring shows in TV, sports events can be of great help.

What more can Amul do?What more can Amul do?

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