INTRODUCTION AND HISTORY OF COMPANY INTRODUCTION AMUL (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. Headquartered in the small town of Anand, Gujarat, it is a brand name managed by an apex cooperative organization, Gujarat Cooperative Coo perative Milk Marketing Federation (GCMMF). Specializing in dairy products, AMUL now takes pride in having built the largest food product business in the country. Being a part of the Gujarat Cooperative Milk Marketing Federation (GCMMF), AMUL is a sterling example of cooperative achievement in the developing world. AMUL survives and grows on the basis of cooperative culture, cooperative networking, market acumen and respect for both producer and the consumer. Presently, it is the most popular food brand of India. HISTORY
Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in forming the Co-operative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through through a co-operative co-operative union, it was commonly
resolved to sell the milk under the brand b rand name AMUL. The Union Union looks after policy formulati formulation, on, processing processing and marketing marketing of milk, milk, provision provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, care, better better feeds and the like - all through through the village village societ societies ies.. Basica Basicall lly y the union and AMUL (ANAND MILK UNION cooperation of people brought Amul into fame i.e. LIMITED), a name which suggest THE TASTE OF INDIA.
GCMMF Overview:
GCMMF is the India’s largest food products marketing organization. It is a state level apex body of milk co-operatives in Gujarat, which aims to provide remunerative returns to the farmers and also serves the interest of consumers by providing quality products, which are good value for money.
VISION The vision of AMUL is as follows: ✔
To serve the interests of the milk producers
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To provide quality products that offer the best value to consumers for money spent.
SALES TURNOVER Sales turnover of GCMMF
Year 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
Rs. (in millions) 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37740
Graphical representation of sales turnover of GCMMF.
US $ (in millions) 400 450 455 493 493 500 500 575 616 672 839
AREAS OF OPERATIONS Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African nations. Other potential markets being considered include Sri Lanka.
SOME FACTS: $1.33 billion USD Annual Revenues : 13 district cooperative milk producers` union Members : 2.7 million No of Employees : 13,141 No of village societies : 10.21 million:liters per day Total Milk handling capacity 2.69 billion liters Annual Milk Collection : 7.4 million liters Daily Milk Collection : 626 Mts. Per day Milk Drying Capacity : 3090 Mts. Per day Cattlefeed Manufacturing Capacity :
ACHIEVEMENTS ✔
AMUL has achieved the following landmarks.
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AMUL is the largest food brand in India.
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AMUL is the world`s largest pouched milk brand.
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AMUL is the world`s largest vegetarian cheese brand
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CRISIL has assigned its highest ratings of “AAA” to the various bank facilities of GCMMF
PLANTS
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk Second plant is at MOGAR powder, flavored milk and buttermilk. , which engaged in
manufacturing chocolate, nutramul, Amul Ganthia and Amul lite. Third plant is at Khatraj, which engaged in producing cheese.
Today, twelve dairies are producing different products under the brand name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole India.
List of Amul products
Amul is the acronym for Anand Milk Union Limited, a dairy cooperative company in Gujarat, India that markets a wide range of products including milk powders, milk, butter, ghee, cheese, chocolate, Shrikhand, Gulab Jamun, ice cream, cream, Nutramul brand and others making it the largest
food brand in India with an annual turnover in excess of US $1 billion (200607). The complete listing is below. Breadspreads •
Amul Butter
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Amul Lite Low Fat Breadspread
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Amul Cooking Butter
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Delicious Margarine
Pure Ghee
Amul / Sagar Pure Ghee Milk Powders •
Amul Full Cream Milk Powder
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Amulya Dairy Whitener
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Sagar Skimmed Milk Powder
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Sagar Tea and Coffee Whitener
Sweetened Condensed Milk •
Amul Mithaimate
Sweets •
Amul Shrikhand & Amrakhand
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Amul Mithaee Khoya Gulabjamaun
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Amul Basundi
Fresh Milk •
Amul Taaza Toned Milk 3% fat
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Amul Gold Full Cream Milk 6% fat
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Amul Shakti Standardised Milk 4.5% fat
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Amul Slim & Trim Double Toned Milk 1.5% fat
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Amul Saathi Skimmed Milk 0% fat
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Amul Cow Milk
Amul Icecreams •
Vanilla Royale
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Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)
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Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond) Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)
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Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae) Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta) Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)
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Amul SUGAR FREE Frozen Foods (Milk Based Sweet)
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Amul ProLife Probiotic Ice cream
Chocolate & Confectionery •
Amul Fruit & Nut Chocolate
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Amul Bindazz
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Amul Rejoice
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Amul kesar
Brown Beverage •
Nutramul Malted Milk Food
Milk Drink •
Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate, Butterscotch)(Right now AMUL stopped its AMUL KOOL Production)
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Amul Kool Cafe amul sexy gums
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Amul Kool Koko
Health Beverage •
Amul Shakti White Milk Food
Curd Products •
Yog Sweetened Flavored Dahi (Dessert)
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Amul Masti Dahi (fresh curd)
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Amul Lite Dahi
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Amul Prolife probiotic Dahi
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Amul Masti Spiced Butter Milk
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Amul Lassee
Many of our products are now available in the USA , Gulf Countries and Singapore.
SWOT ANALYSIS- GCMMF Strengths •
Modernization of traditional milk production
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Robust distribution chain
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Extensive cold storage system
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Trust of producers & consumers both
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Provision of services to cattle farmers
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Presence in all milk product ranges
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Value in quality & price
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Trained graduates from reputed institutes Closely ranked co-operatives which enable Amul to guard against rival brands. Efficiency of distributors and retailers-Amul has one of the biggest distribution networks in India involving 4 lakhs retailers. India's largest and Asia's 2nd biggest Dairy FMCG Co. with a total investment of Rs. 1900 crores. No MNC, even Nestle, HLL, etc., can dream of competing With Amu!. Quality of products and 100 percent assured supply enables Amul to keep its consumers and member co-operatives satisfied. Low costs discourage/de-motivate competitors to engage in price wars.
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Amul Calci+
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SWOT ANALYSIS OF AMUL
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STRENGTHS AVAILABILITY OF RAW MATERIAL Amul’s strength lies in the easy availability of raw material. Only 20 % of the milk produced
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flows into the organized sector. So it becomes cost effective while producing dahi. Strong brand Amul is a strong brand of milk products and has strong brand equity. Wide product line Amul has a wide product range .It manufactures all milk products. Its ice cream & dahi is
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derived from milk itself. So this has positive spill over effect. Technical expertiseBecause of its 60 years of experience, it has a strong technical back up
Weaknesses •
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Bound by dated legislation Less control over milch yield
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Cannot accommodate transport delays (perishables)
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Dependence on poor infrastructure for supply (roads, electricity etc)
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Low sales promotion budgets which have a negative impact while launching new products e.g. jams, squashes, edible oils. Not being very professionally managed, and weak marketing seem to basically milk the brand, rather than develop it into a stronger one. For the first time in the history of Amul, recently a free gift-knife was offered with cheese spread. Logistic problem Inadequate transport facility and bad roads make milk products procurement problematic. Inadequate supply chain
There are a few loop holes in the supply chain of Amul. That serves as an obstacle for tapping up •
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the mass market Supply not meeting the demand In the peak season, the company fails to satisfy the retailers’ demand on certain products.
Opportunities New product development Increase in export of product range Favorable changes in tastes and disposable income of consumers Penetration into areas where SHGs etc have not entered Capturing the segment which is tilting towards branded products Amul has strong prospects for establishing itself in the field of icecreams, especially in regions where Kwality Wall's has low presence and where the ice-cream manufacturers fall in the unorganized sectors e.g. Punjab, Gujarat, Haryana, etc. It also has enormous potential in the frozen foods sector. It can develop or improve on Safal-its frozen foods brand. It can capitalize on Mother Daily retail outlets to strengthen its retail chains. •
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As we know the fact that INDIA’S population is growing at a tremendous rate. Therefore there is a never ending demand for milk and it’s products in the market. So there is a lot of opportunity for Amul to penetrate this market. Export potential Opportunities will increase tremendously if Amul will try to tap up the foreign market through joint ventures and mergers.
Threats Unorganized players •
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Other dairy co-operative societies Risk of contamination throughout channel Competitors are companies, not bound by inherent obligations of cooperatives No visible threats in the dairy products field. But has strong rivals (HLL, Nestle) to face in the fields of edible oils, jams, squashes, icecreams. These rival have the capacity to crush Amul in the above mentioned product field. Signs of threat in the cheese cubes and slices market, strong rivalry with Britannia. Britannia has managed to cut approximately 20-25 percent of Amul's cheese market.
Strong Competition There is a strong competition for Amul in the milk & dahi segment. Mother Dairy, Dms, Paras, Param & loose milk are the major competitors in milk and on the other hand Nestley, Britannia & home made dahi are emerging as new competitors for Amul. They are equally competent as Amul is. •
