This document provides information about Amul ice cream including its history, products, market share, competitors, and costs. It summarizes that Amul ice cream was formed in 1946 as a dairy cooperative in India. In 1997, Amul entered the ice cream market in Mumbai and expanded to other cities between 1997-2002. It quickly became the number 1 ice cream brand in India with a 38% market share, four times larger than its closest competitor Kwality Walls. The document also includes cost sheets that breakdown the costs to produce 100,000 units of Amul ice cream.
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It is a presentation on the CSR initiatives taken up by AMUL
Please note that the presentation (ppt) does not contain the initiatives in detail. The details about each initiative has to be explained verbally by the presenter.
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We were not allowed to take any photo of production with that restriction to complete the paper and presentation we had to take support on previously published papers from online. So all the information described here is not directly related with Igloo. Core & real operation process described here is identical. We tried to give a thought on ice cream production process.
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2. HISTORY Amul ("priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," (meaning Precious)formed in 1946, is a dairy cooperative in India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest food products marketing organisation of India.
3. In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. The portfolio consisted of impulse products like sticks, cones, cups as well as take home packs and institutional/catering packs. It achieved the No 1 position in the country. This position was achieved in 2001 and it has continued to remain at the top.
4. Today the market share of Amul ice cream is 38% share against the 9% market share of HLL (Kwality Walls), thus making it 4 times larger than its closest competitor. Not only has it grown at a phenomenal rate but has added a vast variety of flavours to its ever growing range. In January 2007, Amul introduced SUGAR FREE & ProLifeProbiotic Wellness Ice Cream, which was a first in India.
5. Amul’sentry into ice creams is regarded as successful due to the large market share it was able to capture within a short period of time – due to price differential, quality of products and of course the brand name.
6. FACTS The portfolio consisted of impulse products like sticks, cones, cups as well as take home packs and institutional/catering packs. In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999.
7. Has combated competition like Walls, Mother Dairy and achieved the No 1 position in the country. Today the market share of Amul ice cream is 38%. Amul’s entry into ice creams is regarded as successful due to the large market share it was able to capture within a short period of time.
8. Ice Cream Industry in India Industry Snapshot:- Market Size - 1200 Crores Ice Cream market is growing at 26% Major players:- Amul - Market Leader with share of 36% HLL - Kwality Walls - 2nd biggest player Mother Diary Arun - Chennai Based Hatsun Agro Product Few Brands/ Target Consumers 1. Youth Centric - Chillz 2. Kids - Moo 3. Teenagers - Cornetto 4. Health Conscious - Amul Sugarfree & Pro-Life
9. COST SHEET Particulars CPU Amount 1000000 300000 250000 300000 350000 200000 250000 150000 100000 50000 100000 150000 3200000 184500 3384500 10 3 2.5 3 3.5 2 2.5 1.5 1 0.5 1 1.5 8 1.845 33.845 Opening Stock Raw Materials Dry Fruits Milk Flavours Other Ingredients Sugar Cup Cutlery Seasonal Fruits Waffle Cocoa Carriage Inward RAW MATERIAL CONSUMED
10. Particulars CPU Amount Direct Expenses Direct Labour PRIME COST Factory Overheads: Fixed: Depreciation Rent Power Insurance Supervisor’s Salary Variable: Electricity Running exp of machine WORKS COST 2.2 5.3 40.045 2.5 1 1.75 1.5 0.6 0.7 1 9.05 50.395 220000 530000 4134500 250000 100000 175000 150000 60000 70000 100000 905000 5039500
11. Particulars CPU Amount Office Overheads Employee Cost Other Expenditure: Computer Telephone Taxes Carriage Outward COST OF PRODUCTION Opening Stock -Closing Stock COST OF GOODS SOLD 10 1.2 0.1 0.4 0.2 62.295 2 64.295 1000000 120000 10000 40000 20000 6229500 200000 6429500
12. Particulars CPU Amount Selling&DistExps: Advertisement Delivery Vehicles Petrol Packaging Rates COST OF SALES PROFIT SALES 4 3.5 1.75 0.505 74.05 18.5 92.5625 400000 350000 175000 50500 7405000 1851250 9256250
14. COST SHEET ANALYSIS The company is producing 100000 units of ice cream at Rs. 74.05 for which the total cost incurred is Rs. 7405000 and the total sales is Rs. 9256250 which implies that that the profit being made is Rs. 1851250. The company is producing a single cup of ice cream at Rs. 92.5625 which includes the cost of a cup ice cream at Rs. 74.05 which again implies that the profit of Rs. 18.5125 is earned on a single unit of Amul ice cream.
15. Since the company is earning some percentage of profit above the cost, it means a slight increase in the cost will not have too much of an effect on the profit since there is a large margin of safety. Since the company is earning some amount of profit, the business is capable to expand and diversify over a period of time.
16. PVR = C/S = 2671750/9256250 = 28.86% BEP (in Rs.) = FC/PVR = 2195000/28.86 = Rs.760568.26 BEP (in units) = FC/C = 2195000/2.67175 = 821558.9 = 821559 MOS = Profit/PVR = 476750/28.86 = 16519.404
17. Determination of SP Amul Ice Cream has marked the selling price of their product roughly 20% above the cost price. This implies that they are making a profit on each unit of output that is sold. These profits can be ploughed into the business again to create more output.