Amul is an Indian dairy cooperative society based in Gujarat. It is one of the largest food and dairy organizations in the world, with annual revenues of over $2 billion. Amul procures milk from over 2 million milk producers in Gujarat and sells products through a network of over 3,600 distributors. Key facts: - Amul collects over 6 million liters of milk per day from milk producers. - It has over 10,000 village cooperative societies and 3 million milk producers as members. - Amul manufactures products like milk, butter, cheese, ice cream and sells them under various brand names. - It uses an electronic system to weigh and test milk fat content when

1. By Virajsinh Mahida
M.pharm+ MBA
NMIMS MUMBAI

2. The Kaira District Co-operative Milk
Producers Union Limited, popularly
known as Amul Dairy is a US $ 500
million turnover institution
It is a institution built up with a network
of over 10000 Village Co-operative
Societies and 500,000 plus members
 Managed by an apex cooperative
organisation, Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF),
which today is jointly owned by some
2.41 million milk producers in Gujarat,
India

3. • Amul is the largest food brand in
India with an annual turnover of
US $2000 million (2011-2012)
•Currently Amul has 3.11 million
producer members with milk
collection average of 6.04 million
litres/day.
•Amul is the largest producer of
milk and milk products in the
world.
Sales Turnover US $ (million)
1994-95 355
1995-96 400
1996-97 450
1997-98 455
1998-99 493
1999-00 493
2000-01 500
2001-02 500
2002-03 575
2003-04 616
2004-05 672
2005-06 850
Amul
2011-12 20000

4. Amul’s products range
includes milk powders,
milk, butter, ghee,
cheese, curd,
chocolate, ice cream,
cream, shrikhand,
paneer, gulab jamuns,
basundi, Nutramul
brand and others.

5. Product Range Brand Name
Liquid Milk (nine varieties)
Milk Powders (five varieties)
Butter
Ghee (two varieties)
Bread Spread
Cheese (three varieties)
Cocoa Products (two varieties)
Sweets (three varieties)
Ice Cream (several varieties)
Condensed Milk
Edible Oil (nine varieties)
Mineral Water
Fruit Drinks
Panel E: Number of Brands
Liquid Milk: AMUL, SAGAR
Milk Powders: Amulspray,
AMUL, SAGAR, Amulspree,
Amulya
Cocoa Products: AMUL,
Nutramul
Edible Oils: Dhara, Lokdhara
Mineral Water: Jal Dhara
Fruit Drinks: Safal

6. Collection Chain
Supply Chain
Weighing the milk
Determination of fat content
Calculation of the purchase price
Storing the milk
Processing the milk
Distributing the milk
Amul Strategy

7. •AMUL introduced an
electronic automatic milk
collection system in 691
milk collection centres,
•The system weighs the
milk and measures its fat
content at the time of
delivery to the centre.
•This system reduced time
required for collecting the
milk.
•It enabled immediate
payments to the farmer
AMUL WORKING TO COLLECT MILK
electronic weighing scale
MILK-O-TESTER

8. SCM AND MARKET LOGISTICS
The network
•Milk is procured from the villages and collected at Village
Cooperative Societies (VCS); from there the milk is taken to
manufacturing units where the milk is processed into various
products.
•The products are then transporters to the company Depots
located in various parts of the country.
•The products are then sent to Wholesale Distributors (WD)
and from there to the retailers.

9. The fact sheet
• Milk is procured twice a day from 2 million from Gujarat alone
• The payment is made under twelve hours of procurement
• There are 10000 village cooperative societies
•There are 3600 wholesale distributors in the country 45 depots
•The C&F agents are not fixed and are decided by the local company
offices
• There are approximately 4,50,000 retailers spread all over India
•Total house hold consumers covered are 100,000
• The milk procured per day is 5 million liters
• Where the total capacity of operation is 7 million liters per day
• The peak processing till date has been 6 million liters per day
• These co operative societies are bound to supply there produce only to
GCMMF.

10. SCM and Market Logistics
Enterprise resource planning:
•the company at has implemented an ERP program as low as Rs. 3
corers in collaboration with TCS ltd.
•The company uses it; the data right from the procurement from the
farmers till the delivery of goods to the retailers is fed into the system.
The software enabling the channel members to use for the synchronized
working and best possible utilization of the available resources maintains
details regarding the inventory management.
Upstream Channel in which milk is procured from the farmers to the
manufacturing units.
1. In the first step, the milk is taken to the VCS by the farmers on foot or
bicycles in small quantities
2. The second step involves the transportation of milk from the co-
operatives to the manufacturing units this is done in special trucks which
are equipped with tankers to carry milk.

11. Downstream Channel
It is the distribution part of the supply chain. From the manufacturing
units to the retailers
First leg of transport is from the manufacturing unit to the company
depots.
This is done using 9 and 18 MT trucks any lesser quantity will be
uneconomical to the company there fore is some time the quantity
ordered is lesser then club loading is done which means that the
product ordered is supplied with some other products.
• Frozen food the temperature of these trucks is kept below -18˚C
• Dairy wet the temperature of these trucks is kept between 0-4˚C

12. Second leg
It is from the depot to the WD’s, this transport is carried out in
insulated 3 and 5 MT TATA 407’s here a permanent dispatch plan
(PDP) is prepared where the distributor plans out the quantity of
various products to be ordered on a particular date.
Third leg
This is the flow of good from WD’s to retailers, a beat plan is
prepared and transportation is done on auto-rickshaws, rickshaws
and bicycles.

13. Farmers
Village
Cooperative
Societies (with
Chilling Units)
Village
Cooperative
Societies
(without Chilling
Units)
Local
Restaurants/Other
Milk related
businesses
Milk Sold to
Village &
Local Residents
Milk Processing
Union &
Warehouses
Warehouses
Wholesalers/C&S
Retailers Home Delivery
Contractors
CONSUMERS
Network
Services
* Veterinary
Services
* Animal
Husbandry
* Animal
Feed Factory
* Milk Can
Producers
* Agriculture
University
* Rural Mgmt
Institute
* Trucking
Facilities
Chilling Plants
CONSUMERS
AMUL SUPPLY CHAIN

14. .
Members: 2 district milk producing units
Number of Producer Members: 2.5 million
Number of Village Societies: 11,962
Total Milk Handling Capacity: 9.91 million litres per day
Total Milk Collection: 2.28 billion litres
Daily Average Milk Collection 6.3 million litres
Milk Drying Capacity: 511 metric tons per day
Cattle feed Manufacturing Capacity 2340 metric tons per day
Sales Turnover: US $868 million
AMUL INFRASTRUCTURE IN RURAL INDIA

15. CONCEPT Behind Rural Retailing
•Inspiring Leadership
and Consuming Values
• Building Networks
• Coordination for
Competitiveness
• Technology for
Effectiveness
The Management Paradigm: “Anand Pattern”

16. Physique :
Taste, Quality
Personality :
Simple, Indian
Self-Image :
Proud Indian, Fun loving
Reflection :
Value Oriented
Culture :
Co-operative, Sharing
Relationship :
Sociable
WHY AMUL IS ?