HISTORY

 Amul ("priceless" in Sanskrit. The brand name

"Amul," from the Sanskrit "Amoolya," (meaning
Precious)formed in 1946, is a dairy cooperative in
India. It is a brand name managed by an apex
cooperative organisation, Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF)

 The Gujarat Cooperative Milk Marketing Federation

Ltd, Anand (GCMMF) is the largest food products
marketing organisation of India.
 In 1997, Amul ice creams entered Mumbai followed
by Chennai in 1998 and Kolkata and Delhi in 2002.

 The portfolio consisted of impulse products like

sticks, cones, cups as well as take home packs and
institutional/catering packs.

 It achieved the No 1 position in the country. This

position was achieved in 2001 and it has continued
to remain at the top.
 Today the market share of Amul ice cream is 38%
share against the 9% market share of HLL (Kwality
Walls), thus making it 4 times larger than its
closest competitor.
 Not only has it grown at a phenomenal rate but has
added a vast variety of flavours to its ever growing
range.
 In January 2007, Amul introduced SUGAR FREE
&ProLifeProbiotic Wellness Ice Cream, which was a
first in India.
 Amul’sentry into ice creams is regarded as
successful due to the large market share it was
able to capture within a short period of time – due
to price differential, quality of products and of
course the brand name.
FACTS
 The portfolio consisted of
impulse products like sticks,
cones, cups as well as take
home packs and
institutional/catering packs.

 In 1997, Amul ice creams

entered Mumbai followed by
Chennai in 1998 and Kolkata
and Delhi in 2002. Nationally
it was rolled out across the
country in 1999.
 Has combated competition like
Walls, Mother Dairy and achieved
the No 1 position in the country.

 Today the market share of Amul ice

cream is 38%.

 Amul’s entry into ice creams is

regarded as successful due to the
large market share it was able to
capture within a short period of
time.
 Ice Cream Industry in India
 Industry Snapshot:-

 Market Size - 1200 Crores

 Ice Cream market is growing at 26%

 Major players:-

 Amul - Market Leader with share of 36%

 HLL - Kwality Walls - 2nd biggest player

 Mother Diary

 Arun - Chennai Based Hatsun Agro Product

 COST SHEET
Particulars CPU Amount

Opening Stock 10 1000000

Raw Materials 3 300000
Dry Fruits 2.5 250000
Milk 3 300000
Flavours 3.5 350000
Other Ingredients 2 200000
Sugar 2.5 250000
Cup 1.5
150000
Cutlery 1
100000
Seasonal Fruits 0.5
50000
Waffle 1
Cocoa 1.5 100000
8 150000
Carriage Inward 1.845 3200000
RAW MATERIAL 184500
CONSUMED 33.845 3384500
Particulars CPU Amount

Direct Expenses
2.2 220000
Direct Labour
5.3 530000
PRIME COST 40.045 4134500
Factory
Overheads:
Fixed:
Depreciation 2.5 250000
Rent 1 100000
Power 1.75 175000
Insurance 1.5 150000
0.6 60000
Supervisor’s
Salary 0.7 70000
Variable: 1 100000
Electricity 9.05 905000
Running exp of
machine
WORKS COST 50.395 5039500
Particulars CPU Amount

Office Overheads
Employee Cost 10 1000000
Other Expenditure:
Computer 1.2 120000
Telephone 0.1 10000
Taxes 0.4 40000
Carriage Outward 0.2 20000
COST OF 62.295 6229500
PRODUCTION
2 200000
Opening Stock
-Closing Stock 64.295 6429500
COST OF GOODS SOLD
 Particulars CPU Amount
Selling&DistExps:

Advertisement 4 400000
3.5 350000
Delivery Vehicles 1.75 175000
Petrol 0.505 50500
74.05 7405000
Packaging Rates

COST OF SALES

PROFIT 18.5 1851250

SALES 92.5625 9256250

MARGINAL COST SHEET
SALES 9256250
Variable Cost:
Purchases 3200000
RM Consumed 3384500
CONTRIBUTION 2671750
- Fixed Cost
Factory Expenses 905000
Employee Cost 1000000
Depreciation 100000
Other Expenditure 190000
PROFIT
476750
COST SHEET ANALYSIS
 The company is producing 100000 units of ice
cream at Rs. 74.05 for which the total cost
incurred is Rs. 7405000 and the total sales
is Rs. 9256250 which implies that that the
profit being made is Rs. 1851250.
 The company is producing a single cup of ice
cream at Rs. 92.5625 which includes the cost of
a cup ice cream at Rs. 74.05 which again
implies that the profit of Rs. 18.5125 is earned
on a single unit of Amul ice cream.
 Since the company is earning some percentage of profit
above the cost, it means a slight increase in the cost
will not have too much of an effect on the profit since
there is a large margin of safety.

 Since the company is earning some amount of profit,

the business is capable to expand and diversify over a
period of time.
 PVR = C/S = 2671750/9256250 = 28.86%

 BEP (in Rs.) = FC/PVR = 2195000/28.86 =

Rs.760568.26

 BEP (in units) = FC/C = 2195000/2.67175 = 821558.9 =

821559

 MOS = Profit/PVR = 476750/28.86 = 16519.404

Determination of SP
 Amul Ice Cream has marked the selling price of their
product roughly 20% above the cost price.

 This implies that they are making a profit on each unit

of output that is sold.

 These profits can be ploughed into the business again to

create more output.