Amul is an Indian dairy cooperative based in Anand, Gujarat that produces milk and dairy products. It is owned by 3.6 million milk producers. Amul pioneered the dairy cooperative movement in India and is now replicated across 70,000 villages. It collects over 4.5 million liters of milk daily and achieved a turnover of 9774 crores in 2010-11. Amul faces competition from large MNCs but has strengths in its brand reputation for quality products at low prices, robust distribution network, and focus on rural markets. It aims to expand its product portfolio and reach more rural and smaller towns.

2. Packaged milk, ice cream, etc

4. Amul provides high quality product at low price

5. It provides a varied range of dairy product

6. Grading and packaging of all its products meets international standards

7. Its signature product is the pasteurized milk pouches which ranks as the top in its segment

8. It had an annual turnover of US $2150 million

9. Amul has a robust distribution network: Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors

10. Amul being an Indian company creates a feeling of oneness in the mind of the customers

11. It provides quality and imprints confidence and thus befits loyalty in the minds of the customers since it manufactures only milk and milk products which is purely vegetarian

12. It is aiming at to enter into the rural segment also, which covers a large area of its loyal and prospective customers, which other companies had failed to target and exploit this lucrative opportunity

13. Amul has a huge customer and market base in India with its butter and dairy products and so can easily promote selling of chocolates without fearing of losses and decreasing revenue

15. It has a strong dependency on its weak infrastructure

16. It has many alliances with the third parties who do not belong to the organized sector which can make it pretty vulnerable

17. There are various big players in the chocolate market, which acts as major competitors restricting their growth and expansion opportunities

18. Capital investment and market capitalization is relatively lower in absolute terms as compared to the amount of capital invested by other companies

19. It suffers with an improper distribution channel across its network in India

21. Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc

22. There is a lot of potential for growth and development as huge population stay in rural market where other companies are not targeting

23. The chocolate market is at growth stage with very less competition so by introducing new brand and intensive advertising there can be a very good scope in future

25. It also faces competition from MNCs in butter

26. Growing price of milk and milk products may reduce its volume of sales and profit margin

27. It may face serious issues on capitalizing on its foreign exchange reserve due to the prohibition exerted on its exports of milkpowder

28. There exists no particular brand loyalty in the chocolate market as consumers frequently shift their brands due to changing tastes and preferences.

29. New companies’ entering in the Indian domestic market like Fantasie fine may pose issues and lot of problems for Amul

31. The Growing middle class of cities and urbanization of the general population as a whole

33. Payout to the farmers has also been registered amounting to 23% CAGR in the preceding last 4 years.

34. Increasing gifts and incentives culture to the society

36. New and varied diversified products

37. Process innovation and technology

38. Complementary assets to enhance milk production and capacity

39. E-commerce to facilitate promotion and enhance consumer reach