Submitted By : Ravishekhar Kumar ,20142144

Structure of AMUL Diary:

Amul is joint working unit consists of its parts 1) NDDB: Funding Agency for
production unit 2)GCMMF milk collecting units & marketing 3)AMUL ( Amul milk
federation union limited) Brand in the market with cooperative units.
Background of Amul Challenges :
1)As a collecting unit, GCMMF was compelled to buy the entire milk even surplus
amount that was produced. Milk production having increased since mid 1990s
.AMUL need to synchronies the milk received and milk marketed.
2)
Future :
2a)As per rule of cooperative the profit is equally divided between member not
depending on the amount of milk produced by member .so mehsana producing
larger amount of milk getting less benefit of profit than Anand having larger
number of member but less contribution in terms of milk produced. Hence
mehsana was trying to split to be independent. Role of Dr.Verghese Kurien was
important to hold the NDDB and GCMMF.So what after KURIEN ? Successor?
2b) Need of Expertise.
Solution: 1) Amul should focus on its quality and brand value. Which will help to
generate market share.To cover more region like towns and A-class cities, there is
need to form National milk grid network. B) bulk vending will be helpful in saving
money and time. Focus on rail and road both for marketing of milk to cover more
region. must focus on NCR region. they should open store in big residential
socities.Build tie up with multi store ,super store like big bazaar, easy day for demand
projection and volume sellings.
2b)SCM and market logistic: ERP system can be use. Which will use data from
procurement of milk from farmers to delivery of goods to retailers? Helpful for
synchronization.Fozen food technology can be use by AMUL to keep the food at
temp.of -18 degree Celsius. Help to cover more distant areas while transportation.
Amul can collaborate with mother dairy for better services and coordination.
3)Another challenge i.e successor to kurien. The next to kurien is Amrita patil .she
can act as a successor under condition that she will avoid the private partnership in
sharing profit .
There is need to settle the dispute of member who is producing more but getting less
margins than other. The cooperative rule need to be modified.Memership must be
provided based upon certain amount of milk produce by the particular member. So
that proportionate amount of benefit is provided.