Pestle analysis:

Amul
Submitted to: Prof. Jasmine Dixit
Submitted by: Palak Panthi (MD/21/126)
AMUL
Anand, Gujarat, IN

Business Website:
http://www.amuldairy.com/

Year Founded: 1946

Number of Employees: 10000+

 About Amul:
Amul (The Kaira District Co-operative Milk Producers’ Union) is an Indian dairy
cooperative based in Anand in the Indian state of Gujarat. It was established in 1946
and is a cooperative brand owned by a cooperative society, Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF), which is now jointly owned by 3.6 million
(3.6 million) milk producers in Gujarat, and the apex body of 13 District Milk Unions
spread across 13,000 villages in Gujarat. Amul has kick-started India’s White
Revolution, which has made the country the world’s largest producer of milk and
dairy products. The word ‘Amul’ is derived from the Sanskrit word ‘Amulya’ which
means ‘priceless’ or precious.
 Due to favourable political factors, Amul company
achieved a growth of 11.35% in its operating units in
Kolkata, Pune and Mumbai.

The last few years have been quite difficult for the
international dairy industry due to import and
export hurdles in Russia. Lower demand for dairy
products in the Chinese market, other upheavals in

Political European countries, and product regulations

leading to lower demand in Germany have proven
to be obstacles to the company’s growth.

De licensing of dairy sector 1991, Cut in import

duties of milk and milk products

Covid protocols.
 Inflation

Interest rates on business

Consumer spending habits

Employment rate

Economic Increase in petrol rates

 Conventional ad campaigns

Addressing social causes/ current affairs.

Closing the preference gaps among the different

age groups.

Does not target a particular age group.

Socio-cultural Negative impact of vegan culture.

 Digital intervention for a crucial function in dairying provides ease of
operations to milk producers.

An infrastructure to control the supply chain and introducing IT-based

solutions across all stages of production to better manage inventory. The
key objective was to ensure flexibility and scalability across the complex
chain.

Amul’s digital transformation has helped it gain a 10x growth in business.

Technology
The current focus revolves around enhancing technology in supply chain
to build greater resilience.

Use of artificial intelligence and machine learning to make the supply

chain more cost effective and position Amul for faster growth over the
coming years.

The unions have invested in cold storage facilities.

An automatic Milk Collection System to identify and test the

quality/quantity of milk.

A Geographic Information System was also established to view supply

disparities in real time. Cyber stores have been recently launched as well.

During covid, Amul maximized the use of recourses and infrastructure by

deploying the frozen one for delivering dairy products overnight.
 The company faced many problems due to the violations of
the local market players. In 1998, Amul found that Naroda
based Shri Shakti Dairy was manufacturing milk pouches
under similar names as Amul brands. The names were very
similar to its own brand names “Amul Shakti” and “Amul
Taaza”.

Amul discovered that the Indian trademark registry offices

Legal
were granting applications for registration of its well-known
trademark “Amul” to other entities for other products.The
Gujarat High Court granted ad interim relief to Amul,
directing the registry offices not to entertain any fresh
applications for registration of the trademark, “Amul”, from
any other party.

The Delhi High Court had barred Bharat Confectionery Works

from using the trademark “Amul” for its biscuits.

Silver Bakery, a Rajkot firm manufacturing bakery items

under the name “Amul” was restrained by the Anand district
court from misusing the brand.
 Amul Dairy, will promote energy efficient stoves in rural Gujarat.
Envirofit will market stove that has been designed to reduce smoke,
biomass fuel and cooking time.

AMUL is a zero-discharge industry. This is achieved by the reuse of

water from the various processes.

In AMUL, the water used for cleaning is filtered and the chemicals
reused and only the initial materials cleaned/first flushing goes to the
drain.

Environmental The use of efficient technology to reduce the wastage of water

without compromising quality. The bad water or wastewater
undergoes treatment and is used in the toilets.

AMUL uses a different technology, where a special condenser allows

for the water to be reused thereby reducing the consumption of
freshwater in the cooling towers. This use of technology brings down
the consumption of groundwater to 1/3rd of the natural requirement
in the entire plant.

They have placed solar cells on all their rooftops which generate 5000
kWh of power and 30000 kWh amongst all the factories in total. They
are also using biofuels for all their heating processes.
THANK
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