History of Amul

 Amul (Anand Milk Union Limited), formed in 1946,
  is a dairy cooperative movement in India.

 It is managed by Gujarat Co-operative Milk
  Marketing Federation Ltd. (GCMMF).

 AMUL is based in Anand, Gujarat and has been a
  sterling example of a co-operative organization's
  success in the long term. The Amul Pattern has
  established itself as a uniquely appropriate model
  for rural development.

 Amul has spurred the White Revolution of India.
  It is also the world's biggest vegetarian cheese
  brand.
                                                       1
Success!!

            2
Robust Supply Chain

 The vast and complex supply chain


 Hierarchical network of cooperatives


 Stretches from small suppliers to large
  fragmented markets




                                            3
Low Cost Strategy

 Amul adopted a low-cost price strategy to
  make its products.

 Affordable and attractive to consumers by
  guaranteeing them value for money.




                                              4
Diverse Product Mix

 Amul Butter,
 Milk Powder,
 Ghee,
 Amulspray,
 Cheese,
 Chocolates,
 Shrikhand,
 Ice cream,
 Nutramul,
                      5
 Milk and Amulya
Strong Distribution Network

 Amul products are available in over 500,000
  retail outlets across.

 India through its network of over 3,500
  distributors.

 47 depots with dry and cold warehouses to
  buffer inventory of the entire range of
  products.
                                                6
Technology and e-initiatives
 New products


 Process technology


 Complementary assets to enhance milk
 production

 E-commerce.

                                         7
GCMMF – Over View
 GCMMF: Gujarat Cooperative Milk Marketing
  Federation

 GCMMF is India's largest food products marketing
  organization. It is a state level apex body of milk
  cooperatives in Gujarat which aims to provide
  remunerative returns to the farmers and also
  serve the interest of consumers by providing
  quality products which are good value for money.

 CRISIL, India's leading Ratings, Research, Risk
  and Policy Advisory company, has assigned its
  highest ratings of "AAA/Stable/P1+" to the
  various bank facilities of GCMMF.


                                                        8
Facts
Members:                             13 district cooperative milk
                                     producers' Union
No. of Producer Members:             2.79 million

No. of Village Societies:            13,328

Total Milk handling capacity:        11.22 million litres per day

Milk collection (Total - 2008-09):   3.05 billion litres

Milk collection (Daily Average       8.4 million litres
2008-09):
Milk Drying Capacity:                626 Mts. per day


Cattle feed manufacturing            3500 Mts. per day
Capacity:
                                                                    9
Amul - Business Model


              RAW MILK



            pasteurization



Condensed
             Packaged Milk
                                 Dried
 Ghee                        Skimmed Milk
               Ice cream
 Butter                         Powder
               Beverages
 Cream


                                            10
SWOT Analysis




                11
12
Strengths
• Largest food brand in India
• High Quality, Low Price
• World's Largest Pouched Milk Brand
• Annual turnover of US $1504 million
• Highly Diverse Product Mix
• Robust Distribution Network




                                        13
14
• Risks of highly complex supply
 chain system

• Strong dependency on weak
 infrastructure

• Alliance with third parties who do
 not belong to the organized sector


                                       15
16
Opportunities…….!


• Penetrate international
  markets

• Diversify product portfolio to
  enter new product categories

• and expand existing categories
  like processed foods,
  chocolates etc
                                   17
18
Threats…!
• Competitors - Hindustan Lever, Nestle
 and Britannia

• Still competition from MNCs in butter


• Growing price of milk and milk products


• Ban on export of milk powder

                                          19
Kids                            Women




Youth     Calorie Conscious   Health Conscious   20
Kids


I. Amul Kool

III.Chocolate Milk

V. Nutramul Energy Drink

VII.Amul Kool

IX. Millk Shaake

                            21
Womens


Amul Calci




                  22
Youth


I. UtterlyDelicious
   Pizza

III.Amul Emmental
    Cheese

V. Amul Cheese
   Spreads


                      23
Health Conscious




• Nutramul

• Amul Shakti Health
  Food Drink




                                  24
Calorie Conscious



I.Amul Lite

III.Sagar Skimmed
  Milk Powder

V.Amul Lite Slim and
 Trim Milk

                             25
26
Ice-cream Manufacturers




       Restaurant/Food Chains


Milk      Coffee Shop Chains




              Temples




                                 27
Butter/Cheese/Ghee

       Bakery & Confectionaries




          Pizza Retailers




          Snacks Retailers




                                  28
Advertisements
 AMUL is well known for its innovative hoardings. Find below a
  few:




                                                                  29
Advertisements




                 30
Amul - Product Diversification
Seeking unfamiliar products or markets in
the pursuits of growth with both dairy and non-dairy products

Secret Philosophy
 Progressive addition of higher value products
while maintaining the desired growth in existing
products.
 Amul introduced products with consistent value
addition but never left the core philosophy of
“providing milk at a basic, affordable price”




                                                                31
The 3 C’s…

•Defending against Mahananda,                                         •Customers extremely satisfied
Vijay, Milma & other co-operative                                     •Moved from loose milk to
milk brands                                                           •packaged milk
                                                                      •Ready to try more products
•Aggressive moves against                                             •Improved socio-economic
 Britannia, Nestle, Mother Dairy                                       conditions
 and Kwality




                                    •Largest milk brand in Asia
                                    •More than 30 dairy brands
                                    •Market leader in ghee & butter
                                    •Very strong supply chain
                                    •Enjoys Fine reputation
                                    •Quality with Affordability
Amul – Product Portfolio
   Category       Market Share   Market Position

Chocolate Drink      90%                  1

 Butter, Ghee        85%                  1

    Cheese           50%                  1

    Sweets           50%                  1

 Milk Powder         40%                  1

  Ice-cream         24.75%                2

  Chocolate          10%                  3

                                                   33
Amul – Product Portfolio in Graph
Market share




                                                   34
What more can Amul do?
   To improve further Amul can try out the following
   ideas:

   I) Amul can venture out on new products like Toned
   milk, Condensed milk that can be used for sweets,
   Baby food products,

   II) There are certain product like Amul basundi, gulab
   jamoon, choclates etc which are not as popular as
   Amul ice cream. Amul must try to understand the
   cause of this through thorough market research and
   work on improving these products


   III) Though Amul’s hoardings are a huge success, it
   can penetrate even better in the rural areas by
   advertising through the media viz cable channels and
   newspapers. Sponsoring shows in TV, sports events
   can be of great help.
                                                            35
36

Amul ppt

  • 1.
    History of Amul Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India.  It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).  AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development.  Amul has spurred the White Revolution of India. It is also the world's biggest vegetarian cheese brand. 1
  • 2.
  • 3.
    Robust Supply Chain The vast and complex supply chain  Hierarchical network of cooperatives  Stretches from small suppliers to large fragmented markets 3
  • 4.
    Low Cost Strategy Amul adopted a low-cost price strategy to make its products.  Affordable and attractive to consumers by guaranteeing them value for money. 4
  • 5.
    Diverse Product Mix Amul Butter,  Milk Powder,  Ghee,  Amulspray,  Cheese,  Chocolates,  Shrikhand,  Ice cream,  Nutramul, 5  Milk and Amulya
  • 6.
    Strong Distribution Network Amul products are available in over 500,000 retail outlets across.  India through its network of over 3,500 distributors.  47 depots with dry and cold warehouses to buffer inventory of the entire range of products. 6
  • 7.
    Technology and e-initiatives New products  Process technology  Complementary assets to enhance milk production  E-commerce. 7
  • 8.
    GCMMF – OverView  GCMMF: Gujarat Cooperative Milk Marketing Federation  GCMMF is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.  CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF. 8
  • 9.
    Facts Members: 13 district cooperative milk producers' Union No. of Producer Members: 2.79 million No. of Village Societies: 13,328 Total Milk handling capacity: 11.22 million litres per day Milk collection (Total - 2008-09): 3.05 billion litres Milk collection (Daily Average 8.4 million litres 2008-09): Milk Drying Capacity: 626 Mts. per day Cattle feed manufacturing 3500 Mts. per day Capacity: 9
  • 10.
    Amul - BusinessModel RAW MILK pasteurization Condensed Packaged Milk Dried Ghee Skimmed Milk Ice cream Butter Powder Beverages Cream 10
  • 11.
  • 12.
  • 13.
    Strengths • Largest foodbrand in India • High Quality, Low Price • World's Largest Pouched Milk Brand • Annual turnover of US $1504 million • Highly Diverse Product Mix • Robust Distribution Network 13
  • 14.
  • 15.
    • Risks ofhighly complex supply chain system • Strong dependency on weak infrastructure • Alliance with third parties who do not belong to the organized sector 15
  • 16.
  • 17.
    Opportunities…….! • Penetrate international markets • Diversify product portfolio to enter new product categories • and expand existing categories like processed foods, chocolates etc 17
  • 18.
  • 19.
    Threats…! • Competitors -Hindustan Lever, Nestle and Britannia • Still competition from MNCs in butter • Growing price of milk and milk products • Ban on export of milk powder 19
  • 20.
    Kids Women Youth Calorie Conscious Health Conscious 20
  • 21.
    Kids I. Amul Kool III.ChocolateMilk V. Nutramul Energy Drink VII.Amul Kool IX. Millk Shaake 21
  • 22.
  • 23.
    Youth I. UtterlyDelicious Pizza III.Amul Emmental Cheese V. Amul Cheese Spreads 23
  • 24.
    Health Conscious • Nutramul •Amul Shakti Health Food Drink 24
  • 25.
    Calorie Conscious I.Amul Lite III.SagarSkimmed Milk Powder V.Amul Lite Slim and Trim Milk 25
  • 26.
  • 27.
    Ice-cream Manufacturers Restaurant/Food Chains Milk Coffee Shop Chains Temples 27
  • 28.
    Butter/Cheese/Ghee Bakery & Confectionaries Pizza Retailers Snacks Retailers 28
  • 29.
    Advertisements  AMUL iswell known for its innovative hoardings. Find below a few: 29
  • 30.
  • 31.
    Amul - ProductDiversification Seeking unfamiliar products or markets in the pursuits of growth with both dairy and non-dairy products Secret Philosophy  Progressive addition of higher value products while maintaining the desired growth in existing products.  Amul introduced products with consistent value addition but never left the core philosophy of “providing milk at a basic, affordable price” 31
  • 32.
    The 3 C’s… •Defendingagainst Mahananda, •Customers extremely satisfied Vijay, Milma & other co-operative •Moved from loose milk to milk brands •packaged milk •Ready to try more products •Aggressive moves against •Improved socio-economic Britannia, Nestle, Mother Dairy conditions and Kwality •Largest milk brand in Asia •More than 30 dairy brands •Market leader in ghee & butter •Very strong supply chain •Enjoys Fine reputation •Quality with Affordability
  • 33.
    Amul – ProductPortfolio Category Market Share Market Position Chocolate Drink 90% 1 Butter, Ghee 85% 1 Cheese 50% 1 Sweets 50% 1 Milk Powder 40% 1 Ice-cream 24.75% 2 Chocolate 10% 3 33
  • 34.
    Amul – ProductPortfolio in Graph Market share 34
  • 35.
    What more canAmul do? To improve further Amul can try out the following ideas: I) Amul can venture out on new products like Toned milk, Condensed milk that can be used for sweets, Baby food products, II) There are certain product like Amul basundi, gulab jamoon, choclates etc which are not as popular as Amul ice cream. Amul must try to understand the cause of this through thorough market research and work on improving these products III) Though Amul’s hoardings are a huge success, it can penetrate even better in the rural areas by advertising through the media viz cable channels and newspapers. Sponsoring shows in TV, sports events can be of great help. 35
  • 36.