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Amul India

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Information about AMUL company

Information about AMUL company

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  • 1. Introduction to AMUL Amul means “Priceless” Managed by GCMMF Exists since 1946 India’s largest Food brand World’s Largest Pouched milk brand
  • 2. 1. Collection of RAW Milk 12,22,000 ltrs of Milk collected Everyday Then sent to lab, separated from raw milk & Sent it to various cold storages @ Ahmedabad
  • 3. 2. Electronic Milk Test  With the help of EMT content of FAT and SNF (solid No Fat) is separated  Then send it to Pasteurization Electronic Weighing Scale
  • 4. 3 Methylene Blue Reduction Test4 Pasteurizing & Standardizing5 Quality Checking6 Packing Process
  • 5. BUSINESS MODEL of AMUL  2.8 mn member in  Procurement of  Marketing of milk Gujarat milk from the & milk products  10,675 Co-op Village Dairy  Establish Societies  Arranging distribution  6 mn Ltrs milk transportation of network collected raw milk from the  Maintaining brand VCS to Milk Union Value District Level State Level Village Co-Operative Co-operative Co-operative Societies Societies Societies
  • 6. GCMMF TODAY Sales Turnover Rs.9700 crore (2010-11) 5000+ Wholesale Dealers 5.5+ Lac Retailers Modern Format Stores Overseas Operations in 41 countries
  • 7. Major COMPETITORS of
  • 8. WHY AMUL? CulturePhysique Personality Co-operative,Taste, Quality Simple Indian Sociable Self-Image Reflection Proud Indian, Value-Oriented Fun Loving
  • 9. PRODUCTS For KIDS & TEENSAmul Kool Chocolate MilkNutramul Energy DrinkAmul Kool Milk ShakeAmul Chocolates
  • 10. PRODUCTS For YOUNGSTERS Utterly Delicious Pizza Amul Emmental Cheese Amul Cheese Spreads
  • 11. PRODUCTS For CALORIE CONSCIOUS Amul Lite Sagar Skimmed Milk Powder Amul Lite Slim and Trim Milk
  • 12. PRODUCTS For HEALTH CONSCIOUS Nutramul Amul Shakti Health Food Drink
  • 13. PRODUCTS For EVERYONEAMUL TAZAA(1.5 % FAT)AMUL SHAKTI(3.2% FAT)AMUL GOLD (4.5% FAT) &AMUL BUTTER & CHEEZE, GHEE & FLAVOURED MILK
  • 14. PRODUCTS For EVERYONE
  • 15. PRODUCTS For DIABITICIndia’s First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics
  • 16. 4 Ps of AMUL Product Price Promotion Place
  • 17. PromotionJingle: Utterly, Butterly… DeliciousMascot: Amul Baby girlMedia: Newspaper, TVC, Hoardings…
  • 18. Entering into New market, Fast food retail chain, started in Ahmedabad provides Varieties of Pizza, Planning to open outlets in TIER – I cities like Mumbai, Delhi etc.Pizza @Rs. 39
  • 19. STRATEGICAL PILLERS OF AMUL 1. QUALITY 2. VALUE FOR MONEY 3. AVAILIBILITY 4. SERVICE
  • 20. Industry Based Segmentation
  • 21. Industry Based Segmentation
  • 22. Logistics @ AMUL Logistics • 6 million liters of milk per day • From about 10,675 separate village in cooperative societies • Approximately 2.8 million milk producingcollection member. Logistics • Storing the milk. in • Processing the milk. • Distributing the milk.Supplying
  • 23. Reverse logistics MILK CHURN  from dairy to VCS POUCH MILK TRAY from retailer to dairy BOTTLE from retailer to dairy DAMAGED PRODUCTS from customer to retailer then to dairy
  • 24. IT EVOLUTION1 The milk collection center at village cooperative societies, were first automated.2 Data analysis software utilization for milk production estimation and increasing productivity3 The company zeroed in on ERP as means to keep pace with dynamically changing business environment4 TCS was hired to guide them in its implementation The project was named as Enterprise wise integrated5 application system [EIAS]6 VATS network between all distribution network and GCMMF
  • 25. IT EVOLUTION Amul has start implementation of ERP in phases. Automatic milk collection system units(AMCUS) at village society were installed in the first phase to automate milk production logistics AMCUS facilities to capture member information, milk fat content, volume collected, and amount payable to each member electronicallyYour own footer Your Logo
  • 26. TOTAL QUALITY MANAGEMENT There is improvement in quality of milk in term of acidity and sour milk Milk union records show 2% reduction in the amount of the sour milk received from the union Improved microbiological quality of upcoming raw milk in the form of methylene blue reduction This gives better shelf life to the product
  • 27. IT BENEFITS Radical changes in business processes - eliminating middlemen Improved delivery mechanisms and transparency of business operations Due to this process, AMUL is able to collect six million liters of milk per day
  • 28. IT BENEFITS Huge reduction in processing time payments to the farmers from a week to couple of minute Movement of 5000 trucks to 200 dairy processing plants twice a day in a most optimum manner Practicing just in time supply chain management with six sigma accuracy
  • 29. IT BENEFITS Online order placements of Amul’s products on the web Amul exports products worth around US$ 25 million to countries in West Asia, Africa and USA
  • 30. SWOT ANALYSIS S W O T
  • 31. SWOT ANALYSISStrengths  Largest food brand in India  Enhanced Milk Production capacity  High Quality, Low Price  Vast resources  Worlds Largest Pouched Milk Brand  Advanced Technical Equipment manpower capacity  Annual turnover of Rs. 9700 crore  Increasing purchase power  Highly Diverse Product Mix  Robust Distribution Network
  • 32. SWOT ANALYSISWeaknesses  Risks of highly complex  Perishability of products supply chain system  Erratic power supply  Strong dependency on weak infrastructure  Lack of proper Infrastructure;  Alliance with 3rd parties warehousing, Trained who do not belong to manpower the organized sector  Indian Roads specially for logistics facility
  • 33. SWOT ANALYSISOpportunities  Increase the Penetration  Presence only in in international markets Vegetation Food Market, can launch range of non-  Diversify product veg items portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc  innovations in product development, packaging and presentation  IT support
  • 34. SWOT ANALYSISThreats Milk vendors, the un- organized sector  Milk adulteration Threat of Competitors  Low profit margin to Retailer, risk of Still competition from switching brand MNCs in butter Growing price of milk and milk products Ban on export of milk powder
  • 35. SEVERAL FINDINGS Low profit All retailers get More of themargin, almost Amul dont Amul milk activities wereall retailers are print from company notnot interested packaging date selected communicatedin selling Amul on pouch distributors by distributors milk
  • 36. Suggestions and Recommendations• Company should start printing packaging date on milk pouch.• Consider on the supply of product in the peak season.• 250 ml milk pouch should make available to retailers for selling, because lower income family has intention to buy small pouch milk.• Incentives & schemes should be given to the retailers.• Provide reasonable Margin to retailers as compared to competitors, this motivates them to promote company’s milk and milk products
  • 37. Expansion planTie up with the Wal-Mart and, It has promised to keep Amul brand on their shelves in USExport is in 41 countries, now planning to export to JapanPlan to open 10000 Amul parlor by the end of the 2014
  • 38. Amul (Recently in news)• Milk via milk train• Tie up with Adani Logistics• 50 wagon each capacity 24k liter• Initial transport cost was 45 crores ,reduce it to almost 36 crores by use of efficient logistics techniques
  • 39. WHY is AMUL SUCCESSFUL TODAY?Maintain Quality & Low pricing strategy Robust & Vast Distribution Channel Investment in IT infra, Mkt strategies First Mover Advantage, So Everybody knows that AMUL is taste of INDIA
  • 40. Prepared By:Yuvraj Zala