Business Environment

Topic-AMUL Co-operative

Group Members Roll No

PS 108
MM 70
VS 110
RV 115
SS 102
SS 112
 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:

• India’s largest • Low market • Introduce new • Strong

food brand, share in products in the competition
Strength

Weakness

Threat
Opportunity
trusted for its chocolates chocolate from
quality segment segment international
• Number of • Strong • To tap the players like
popular milk competition from untapped Britannia,
products like ice international & market, increase Nestle, Mother
cream, ghee, domestic players its reach in rural Dairy, Local
butter, paneer, in the ice cream markets dairies.
dahi, milk, etc. segment means 3.Rise in • Economic
limited market purchasing slowdown and
• Products
share power of Indian inflation
available at
affordable price people
• Market leader in
butter segment

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 PEST Analysis

Political:
Reliance on state & district cooperatives to provide milk producers with:
• Facilities and support services
• Training programs
• Conflict resolution
Export of Milk powder was banned in 2012
Economical
• India high GDP growth rate implies increase in per capita income of people
and thus more increase in demand for food products
Expansion 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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 THANK YOU

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