amul refinal grp1

7/31/2019 Amul Refinal Grp1

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By GroupNo.1

Group Members

Deepti Anand -066

Kanad Kale -101Rajesh Karia -102

Vinayak Chauhan -111

Gurtej Oshan -116

Sourabh Dubey -120


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History of Amul

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

It is managed by Gujarat Co-operative Milk Marketing

Federation Ltd. (GCMMF).

The Amul Pattern has established itself as a uniquelyappropriate 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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GCMMF Over View

GCMMF is India's largest food products marketingorganization.

It is a state level apex body of milk cooperatives in Gujarat

which aims to provide remunerative returns to the farmers andalso serve the interest of consumers by providing qualityproducts which are good value for money.

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


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Amul Model


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FactsYear of Establishment 1973

Members

17 District Cooperative Milk Producers'

Unions (13 Members & 4 Nominal

Members)

No. of Producer Members 3.03 Million

No. of Village Societies 15,712

Total Milk handling capacity per day 13.67 Million litres per day

Milk Collection (Total - 2010-11) 3.45 billion litres

Milk collection (Daily Average 2010-11) 9.2 million litres (peak 12 million)

Milk Drying Capacity 647 Mts. per day

Cattlefeed manufacturing Capacity 3690 Mts. per day

Sales Turnover -(2010-11) Rs. 9774 Crores (US $2.2 Billion)


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long-term,

sustainable growth

to its member

farmers

value proposition to a

large customer base

by providing milk andother dairy products a

low price

AMULS BUSINESS STRATEGY

TWIN OBJECTIVES


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ORGANIZATION STRUCTURE

District levelChairpersons, Registrar of

Co-operatives, NDDBRepresentative, Technical

Expert, CEO

Chairpersons of VillageDairy Co-operativeSocieties, BOD, MD

Milk Producers, ManagingCommittee

State

Federation

District

Village

DECISION-MAKING

Membership

Price paid to milk

suppliers

Price paid to village

co-operative societies

Price paid to district

unions (fixed across

unions)

Product mix and

quantity

LEVEL MEMBERS


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Manufacturing Process

RAW MILK

DriedSkimmed Milk

Powder

Packaged Milk

Ice creamBeverages

Condensed

GheeButterCream

pasteurization


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Farmers/Milk Producers

Village

Cooperative

Societies (withChilling Units)

Village

Cooperative

Societies(without Chilling

Units)

Local

Restaurants/Other

Milk relatedbusinesses

Milk Sold to

Village &

Local Residents

Milk Processing

Union &

Warehouses

Warehouses

Wholesalers/C&S

Retailers Home Delivery

Contractors

CONSUMERS

Network

Services

* VeterinaryServices

* Animal

Husbandry

* Animal

Feed Factory

* Milk Can

Producers* Agriculture

University

* Rural Mgmt

Institute

* Trucking

Facilities

Chilling Plants

CONSUMERS

SUPPLY

CHAIN

PROCESS


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SWOT Analysis

Weaknesses

Risks of highly complex supplychain systemStrong dependency on weakinfrastructureAlliance with third parties who

do not belong to the organizedsector

Opportunities

Penetrate international marketsDiversify product portfolio toenter new product categories andexpand existing categories likeprocessed foods, chocolates etc

Threats

Competitors - Hindustan Lever,Nestle and BritanniaStill competition from MNCs inbutterGrowing price of milk and milkproductsBan on export of milk powder

Strengths

Largest food brand in IndiaHigh Quality, Low PriceWorld's Largest Pouched Milk BrandAnnual turnover of US $1504 millionHighly Diverse Product Mix

Robust Distribution Network


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The 3 Cs

Customer

Company

Competitor

Customers extremely satisfiedReady to try more quality productsImproved socio-economicconditions

Product for different segments

Largest Dairy brand in AsiaMore than 30 dairy brandsMarket leader in ghee,ice-cream& butter

Very strong supply chainEnjoys Fine reputationQuality with Affordability

Defending againsts HUL(KWALITY WALLS)Gokul & mother`s dairy Cadbury`s, BASKIN ROBBINS etc.

Aggressive moves againstLOCAL BRANDS


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Industry Analysis : Porters 5 Forces

Bargaining Power

of Customers is

High because of

Various

competitors

Threat of

substitutes is high

because of

availability of

Other products

Threat of new entrants

Is high becauseThere are no entry

barriers

Competitive Rivalry

is High due to

Other brands and

Local players

Bargaining Power

of Suppliers is low

because the suppliers

Are rural milk

producers


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Customer Based Market Segmentation

Kids

Women

Youth

Amul KoolChocolate MilkNutramul EnergyDrinkAmul Kool MilkShake

Amul Calci +

Utterly Delicious

PizzaAmul EmmentalCheeseAmul CheeseSpreadsv


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Calorie Conscious

Health Conscious

Amul LiteSagar SkimmedMilk PowderAmul Lite Slim andTrim Milk

Nutramul

Amul Shakti HealthFood Drink


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Market Penetration Strategy

Amul is set to build up 10,000 `Amul Parlours'

across the country

Amul trying to acquire a shelf in Bharti-Wal-Mart Easy Day chain.


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Market Development Strategy

Amul is now shifting its focus from urban to rural markets and

smaller towns.

Amul is capturing the market of diabetic and health conscious

people through sugar free ice-cream, which is a variation of an

existing product.

Amul is also increasing its market base for milk through a newversionthe Amul Tazaa.

Tazaa is the long-life version of milk which has alonger shelf life as compared to normal fresh milk.


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Product Development Strategy

Amul-Cool (milk based cooldrink) and Amul-Kool caf

Stamina the instant energy

whey based sport drink has been

launched

packaged buttermilk

is aimed to be

another non-carbonated cool

drink in the Amul

Cool range


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Diversification Strategy

Concentric Diversification Strategy

Ice cream ranges, Amul

Sugarfree and Amul Profile.

Identified the working class

women as a new segment andhas introduced frozen easy to

cook stuffed parathas, matar

paneer and paneer pakoras

which makes them easy tocook quality tasty food in less

time.


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AMUL POSTERS


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Why Amul is AMUL ?

Robust Supply ChainThe vast and complex supply chain Hierarchical network of cooperatives

Stretches from small suppliers to large fragmented markets

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

Diverse Product Mix

Amul Butter, Milk Powder, Ghee,

Amulspray, Cheese, Chocolates,

Shrikhand, Ice cream,

Nutramul, 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.

Technology and e-initiatives

New products

Process technology

Complementary assets to enhance milk production

E-commerce.

Success!!


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Amul Relief Trust

GCMMF formed a specific organization

named "Amul Relief Trust" (ART) under the

Chairmanship of Dr. V. Kurien in 2001 with a

donation ofRs. 50 Millions for reconstruction of theschool buildings damaged in the 2001 earthquake in

the Kutch area.

The Trust reconstructed 6 schools damaged by the

above earthquake at a cost of Rs. 41.1 millions inKutch area.


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GREEN REVOLUTION

GREEN GUJARAT TREE PLANTATION CAMPAIGN BYMILK PRODUCERS OF DAIRY COOPERATIVES.

AMUL Coops plant more than 239.38 lakhs trees.

The Village Dairy Cooperative Societies of Gujarat as a

mark of respect for our nation decided to an event onevery Independence Day and accepted 15th August(Independence Day) as a "Green Revolution Day byAfforestation to Protect Mother Earth

from Pollution,Climate change

and Global Warming".


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Mission 2020

Turnover of 27000 crore.

(three fold increase in the group turn over.)

Milk production 33.1 million liter/day.

Milk drying capacity 200 mt/day


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Bcoz of Low profit margin almost all retailers are not interested in

selling Amul milk.

All retailers get Amul milk from company selected distributors.

250 ml milk pouch should make available to retailers for selling,

because lower income family has intention to buy small pouch milk.

Incentives & schemes should be given to the retailers.

Provide reasonable Margin to retailers as compared to competitors,

this motivates them to promote companys milk and milk products

Findings &Recommendations

THANK YOU !!!


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THANK YOU !!!

amul refinal grp1

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