Business EnvironmentTopic-AMUL Co-operative

Group Members Roll NoPS 108

MM 70VS 110RV 115SS 102SS 112

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About Amul:

• Amul is an Indian dairy cooperative• Formed in 1946• Managed by- Gujarat Co-operative Milk Marketing

Federation Ltd. (GCMMF)• Founder-chairman of the GCMMF- Dr.Verghese Kurien• Turnover of Rs. 20,733 crores during 2014-15.• No. of Producer Members- 3.37 Million• Total Milk handling capacity per day- 24 Million litres

per day

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Products Offered By Amul

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Sales Turnover Of Amul:

• Amul brand of milk and dairy products has registered highest ever growth of 51% in last two years.

• During the last five years, turnover of GCMMF grew from Rs. 8005 crores to Rs. 20,733 crores

• The dairy cooperative took giant leaps ahead in its product innovation since as many as 26 new products from Amul’s portfolio, were launched last year.

• GCMMF should exceed Rs. 50,000 crores ( US$ 8 Billion) by the year 2019-20.

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The techniques used for promotion are as follows:

• Uses variety of media to communicate.• Most famous is the Billboard Campaign.• The endearing polka dressed girl and pun at various

issues increased brand’s fan following.• Amul organises a Food festival in October &

November in over 1500 outlets across India.

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Swot Analysis for Amul:St

reng

th

• India’s largest food brand, trusted for its quality

• Number of popular milk products like ice cream, ghee, butter, paneer, dahi, milk, etc.

• Products available at affordable price

• Market leader in butter segment

Wea

knes

s

• Low market share in chocolates segment

• Strong competition from international & domestic players in the ice cream segment means limited market share

Opp

ortu

nity

• Introduce new products in the chocolate segment

• To tap the untapped market, increase its reach in rural markets3.Rise in purchasing power of Indian people

Thre

at

• Strong competition from international players like Britannia, Nestle, Mother Dairy, Local dairies.

• Economic slowdown and inflation

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PEST Analysis

Political:Reliance on state & district cooperatives to provide milk producers with:• Facilities and support services• Training programs• Conflict resolutionExport of Milk powder was banned in 2012Economical• India high GDP growth rate implies increase in per capita income of people

and thus more increase in demand for food productsExpansion plans:• Cost of implementation of system• Is system adding any significant value to the company• Break even for the investment

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Social:• Lifestyle- fast food culture caters more demand for ice cream,

cheese, etc.• Culture- Custom of morning tea, more accustomed to milk and milk

products.• Demographic- growing youth population, more health

consciousness and huge children population.

Technological:• Innovation in cold chain technology• Extending the reach of the network to more and more villages and

towns• Amul Dairy has adopted low carbon technology at the Amul

chocolate plant at Mogar in Anand district.

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E- SUPPLY CHAIN MANAGEMENT OF AMUL

• AMUL uses E- SUPPLY CHAIN MANAGEMENT

• Amul has installed over 3000 automatic milk collection system units(AMCUS) at village societies to capture member information, milk fatcontent and amount payable to each member.

• Each member is given plastic card for identification • Computer calculate amount due to the farmer on the basis of the

fat content

• The value of the milk is printed out on the slip and handed over to the farmer ,who collects the payment from the adjacent window

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• Thus with the help of it farmer gets the payment within the minutesOn the logistic more than 5000 trucks move milk from the villages to200 dairy processing plants twice a day according to a carefullyplanned scheduled

• Every day Amul collects 7 million liters of milk from 2.6 million farmers(many illiterate), converts the milk into branded, packaged products,and delivers goods to over 500,000 retail outlets across the country

• ERP software named as enterprise wide integrated application systemcovers a operation like planning advertisement and promotion anddistribution network planning.

• Each Amul office are connected via internet and all of them send dailyreports on sales and inventory to the main system at Anand

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CSR, THE AMUL WAY…

• CSR-Sensitive Business Philosophy • To serve the interests of milk producers.• To provide quality products to consumers

as value for money.• CSR-oriented To Distributors & Retailers • CSR-oriented To Staff

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AMUL RELIEF TRUST

• A devastating earthquake hit Gujarat on 26th January 2001. The epicenter of the quake was located in Kutch district.

• It caused death of thousands of people, many were injured, hundreds of thousands were rendered homeless and damage of billions of Rupee was done.

• GCMMF formed a specific organization named “Amul Relief Trust” (ART) under the chairmanship of Dr. V. Kurien in 2001 with a donation of Rs. 50 Millions for reconstruction of the school buildings damaged in the earthquake in the Kutch area.

• The Trust reconstructed 6 schools damaged by the earthquake at a cost of Rs. 41.1 millions in Kutch area.

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GREEN GUJARAT TREE PLANTATION CAMPAIGN

• The milk producers of Gujarat Dairy Cooperatives are conducting mass tree plantation drive every year on Independence Day for last three years.

• The idea is "one member five tree (2009). • The entire plantation activity is coordinated at all the three tiers of

Anand pattern - at village, district and state level dairy cooperatives. • Amul co-ops planted more than 311.98 lakhs trees.

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