The dairy industry in India produces approximately 160 million tonnes of milk per year. The top segments are fluid milk at 46.07% and ghee at 27.5%. Major players include Amul, Mother Dairy, and Kwality. Amul was established in 1955 and is the number 1 dairy in Asia and number 2 in the world with a turnover of approximately 32,000 crore rupees. Amul has a competitive advantage through excellent supply chain management, a diversified product portfolio, and economical promotional activities. Its main competitors are Britannia, Nestle, and other large companies.

1. D A I R Y / F M C G I N D U S T R Y

2. INTRODUCTION
DAIRY INDUSTRY
Evolution
• The People of India, were perhaps the first to practice
dairying.
• India produces approximately160 million tonnes of milk
per year and around 70 million rural households in India
are engaged in dairying.
Segment Breakup
• Fluid Milk: 46.07%, Ghee: 27.5%, Butter: 6.5%,
• Curd: 7%, PDCM: 6.5%, Milk Powder: 3.5%,
• Cheese: 2%, Ice-cream: 1%
Financials
• The industry contributes about 1,15,970 Cr. per annum.
Major Players
• Mother Diary, Kwality Limited, Dynamix, KMF
AMUL
Overview
 AMUL was established in 1955
 It is the No 1 dairy in Asia and No 2 in the world.
Financials
• It has a turnover of approximately 32,000 crore(
India).
Performance Ratios
ROA(%) -0.95 7 -0.4 6.29
ROE(%) -4.91 10.07 -2.14 9.26
ROCE(%) 4.71 33 5.71 29.4
Competitive Advantage
• Excellent Supply Chain Management
• Diversified product portfolio
• Well-established and positioned
• Economical promotional activities.

3. BARGAINING POWER OF
SUPPLIERS
GCMMF hold a very good relationship with
suppliers of milk that is the farmers of Gujarat.
They produce all the milk for them. Also the
suppliers are given very good price for their
produce. GCMMF also provide other facilities like
cattle feed and other health facilities to farmers
and their family. Similarly there are a lot of state
milk cooperatives are there.
BARGAINING POWER OF
CUSTOMERS
The customers have good brand perception
of amul. They are always ready to buy amul
products. Because of that its turnover
increases year by year. However aligning
with its vision of providing high quality
products to consumer at best prices.
THREAT OF SUBSTITUTES
The unorganised milk distribution has also
started providing milk based products.
They provide more personalised services to
consumers. Also milk based beverages face
threat from cold drinks and juices.
THREAT OF NEW ENTRANTS
There are new players in the industry
mainly in chocolate and ice cream sectors.
Changing governments polices and
regulations. Amul tries to maintain
customer loyalty
INDUSTRY RIVALRY
Amul is the market leader in butter, cheese and organized milk
distribution. The competitors have far less market share. Amul have
economy of scale in production which helps it in winning over its
competitors by lowering its prices.

4. STRATEGY AND POSITIONING
Competitive advantage
• Competitive Advantage
• Excellent Supply Chain
Management
• Diversified product portfolio
• Well-established and positioned
• Economical promotional
activities.
Distribution strategy
• Supplies in huge amounts to its C&F, who
is required to have the right arrangements
to store Amul products in bulk
• C&F then transfers the products to distributors
who in turn give it to retailers
• Direct sale team which sells to modern retail.
• Company has exclusive Amul stores.
Brand equity
Because of the excellent products, the top of the mind positioning, the fantastic distribution
and supply chain channels and finally the point of purchase branding and advertising of the
Amul girl, Amul finds itself in a very strong position where its brand equity is concerned.

5. Product Brand Competitors
Butter Britannia, Nestle
Cheese Britannia
Baby Food Nestle, Heinz
Dairy Whitener Segment Britannia, Nestle
Ice Creams HUL
Chocolates And Confectionaries Cadbury, Nestle
Pizza Pizza Hut, Dominos, Nirulas Frozen Pizza
Curd Nestle, Mother Dairy
Ultra High Treated Milk Britannia, Nestle
Sweet Condensed Milk Nestle
Paneer Britannia
Milk Additives Cadbury, Smithkline Beechan
Flavoured Milk Britannia, Nestle
AMUL COMPETITORS

6. Amulya-Dairy Whitener
Baby Food
Flavoured Milk
Butter
Ice-cream
Cheese
Sweet Condensed Milk
Chocolate Curd
DEMAND
COST
LOWLOW HIGHHIGH

8. RESOURCE BASED VIEW

10. FUTURE CHALLENGES
• Global demands and changes
• Foreign affiliations
• Competition
• Changing values & interest
• Urban Shifting
• Adoption of latest technology
• Increased need for R&D
• Production according to international standard with foremost quality
• To keep the price steady and reduce production and maintenance cost
• Expansion and upgrading of plant and equipment
• Better animal husbandry practices to enhance milk production

11. WHAT’S NEXT?
• New Avenues
 New processing unit in North East India
 Rs.800 crores will be invested annually to
increase milk processing capacity.
 Plans to increase turnover from 27000
crores to 50000 crores in 2020-21 fiscal
year.
 Introduction of Camel Milk for the first time
in India
 Acquisition of Delhi Milk Scheme
 Rs 20 crores investment in expansion of
Amul frozen pizza.
 Over 1000 new flagship outlets
 Targeting rural market of 230 million
• CSR
 Diary demonstration project
 Suvarna Jayanti Gram Swarojgar Yojana
 Blood donation Campaigns
 Amul Scholar
 Tree plantation
 Rural sanitation
 Real Vs Processed – Consumer Education
campaign
 Amul Relief trust

12. REFERENCES
• www.indianmirror.com
• http://data.conferenceworld.in/GNCG/P32-39.pdf
• http://www.trendingtopmost.com/worlds-popular-list-top-10/2017-2018-2019-2020-
2021/foods/best-dairy-companies-india-famous-pure/
• www.amul.com – Official Website
• https://www.marketing91.com/marketing-strategy-amul/
• http://www.amuldairy.com/
• www.financialexpress.com
• www.businesstandard.com
• www.isbinsight.isb.edu
• www.scribbed.com/doc/83820576/amul-stratergy
• Google Images