History of Amul

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.

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Success!!
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.

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Diverse Product Mix

Amul Butter,
Milk Powder,
Ghee,
Amulspray,
Cheese,
Chocolates,
Shrikhand,
Ice cream,
Nutramul,
Milk and Amulya

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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.

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Technology and e-initiatives

New products

Process technology

Complementary assets to enhance milk
production

E-commerce.

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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.

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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
2008-09):
8.4 million litres
Milk Drying Capacity: 626 Mts. per day
Cattle feed manufacturing
Capacity:
3500 Mts. per day
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Amul - Business Model
RAW MILK
Dried
Skimmed Milk
Powder
Packaged Milk

Ice cream
Beverages
Condensed

Ghee
Butter
Cream
pasteurization
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SWOT Analysis
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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

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Risks of highly complex supply
chain system

Strong dependency on weak
infrastructure

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

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Opportunities.!

Penetrate international
markets

Diversify product portfolio to
enter new product categories

and expand existing categories
like processed foods,
chocolates etc

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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

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Health Conscious
Kids
Women
Youth Calorie Conscious 20
Kids
I. Amul Kool

II. Chocolate Milk

III.Nutramul Energy
Drink

IV.Amul Kool

V. Millk Shaake
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Womens
Amul Calci
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Youth
I. UtterlyDelicious
Pizza

II. Amul Emmental
Cheese

III.Amul Cheese
Spreads
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Health Conscious
I.Nutramul

II.Amul Shakti Health
Food Drink
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Calorie Conscious
I.Amul Lite

II.Sagar Skimmed
Milk Powder

III.Amul Lite Slim
and Trim Milk
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Milk
Ice-cream Manufacturers
Restaurant/Food Chains
Coffee Shop Chains
Temples
Butter/Cheese/Ghee

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Bakery & Confectionaries
Pizza Retailers
Snacks Retailers
Advertisements
AMUL is well known for its innovative hoardings. Find below a
few:
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Advertisements
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Amul - Product Diversification
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
Seeking unfamiliar products or markets in
the pursuits of growth with both dairy and non-dairy products
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The 3 Cs
Customer
Company
Competitor
Customers extremely satisfied
Moved from loose milk to
packaged milk
Ready to try more products
Improved socio-economic
conditions
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

Defending against Mahananda,
Vijay, Milma & other co-operative
milk brands

Aggressive moves against
Britannia, Nestle, Mother Dairy
and Kwality

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
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Amul Product Portfolio in Graph
M
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k
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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 Amuls 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.
What more can Amul do?
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History of Amul

Amul (Anand Milk Union Limited), formed in 1946,

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