You are on page 1of 15


Presented by

THE TASTE OF INDIA, AMUL comes from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand and it was chosen because it was a perfect acronym for Anand Milk Union Limited . AMUL was formed under the dairy cooperative movement in India in 1946. Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. AMUL is the brand under this organization. Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with milk collection average of 10.16 million litres per day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets .Other potential markets being considered include Sri Lanka. Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man behind the success of Amul. On 10 Aug 2006 Parthi G Bhatol, chairman of the Banaskantha Union, was elected chairman of GCMMF.

Company History
Amul was set up in 1946 and its full form is Anand Milk- producers Union Ltd. The Brand Amul is a movement in dairy cooperative in India. The management of the brand name is done by the Gujarat Co- operative Milk Marketing Federation Ltd (GCMMF) which is a cooperative organization.

Amul is located in the town Anand which is in the state of Gujarat and it has set up itself as a model for development in the rural areas. For Amul Brand has started the Revolution White of India which has helped to make the country the biggest manufacturer of milk and its by products in the whole world. Amul has around 2.6 million producer members and the total capacity for handling milk is around 10.16 million liters every day. The brand's capacity for milk drying is around 594 Mts. each day and its capacity for cattle feed manufacturing is about 2640 Mts. each day.

Product Portfolio
Amul is the biggest brand in the pouched milk sector in the world and in India it is the biggest food brand. Amul's range of products includes milk, ghee, milk powders, curd, ice cream, paneer, cream, chocolate, cheese, butter, and shrikhand.

Products of Amul


Demand profile: Absolutely optimistic. Margins: Quite reasonable, even on packed liquid milk. Flexibility of product mix: Tremendous. With balancing equipment, you can keep on adding to your product line. Availability of raw material: Abundant. Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which requires proper channelization. Technical manpower: Professionally-trained, technical human resource pool, built over last 30 years.


Perishability: Pasteurization has overcome this weakness partially. UHT gives milk long life. Surely, many new processes will follow to improve milk quality and extend its shelf life. Lack of control over yield: Theoretically, there is little control over milk yield. However, increased awareness of developments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields. Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk procurement problematic. But with the overall economic improvement in India, these problems would also get solved. Problematic distribution: Yes, all is not well with distribution. But then if ice creams can be sold virtually at every nook and corner, why cant we sell other dairy products too? Moreover, it is only a matter of time before we see the emergence of a cold chain linking the producer to the refrigerator at the consumers home! Competition: With so many newcomers entering this industry, competition is becoming tougher day by day. But then competition has to be faced as a ground reality. The market is large enough for many to carve out their niche.

"Failure is never final, and success never ending. Dr Kurien bears out this statement perfectly. He entered the industry when there were only threats. He met failure head-on, and now he clearly is an example of never ending success! If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped: Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential areas of value addition: Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building. Addition of cultured products like yoghurt and cheese lend further strength - both in terms of utilization of resources and presence in the market place. A lateral view opens up opportunities in milk proteins through casein, caseinates and other dietary proteins, further opening up export opportunities. Yet another aspect can be the addition of infant foods, geriatric foods and nutritionals. Export potential: Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty, opportunities will increase tremendously for the export of agriproducts in general and dairy products in particular.

Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance. The study of this SWOT analysis shows that the strengths and opportunities far outweigh weaknesses and threats. Strengths and opportunities are fundamental and weaknesses and threats are transitory. Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and marketing) and values (of quality/ethics). The Indian dairy industry, following its delicensing, has been attracting a large number of entrepreneurs. Their success in dairying depends on factors such as an efficient yet economical procurement network, hygienic and cost-effective processing facilities and innovativeness in the market place. All that needs to be done is: to innovate, convert products into commercially exploitable ideas. All the time keep reminding yourself: Benjamin Franklin discovered electricity, but it was the man who invented the meter that really made the money!

Case Study
Amul cuts butter supplies by 25% on low milk output
CHANDIGARH/AHMEDABAD: Blame it on poor monsoon if your toast goes without butter for the next two weeks. Low milk production has led the countrys top butter producer Amul to cut its supplies by 25%. The shortage is so acute in the 16,000-tonne branded butter market that even marginal players like Britannia, Mother Dairy, and Verka are not able to fill in the void left by Amul. Though the players are witnessing a rise in demand for their products, they are still unable to meet the demand. The branded butter market in India is worth Rs 1,000 crore and Gujarat CoOperative Milk Marketing Federation (GCMMF) that markets Amul brand of dairy products controls about 90% of it. As reported by ET earlier, milk production that usually rises post monsoon, may see a shortfall owing to the delayed monsoon. According to estimates, the demand for butter is growing at 7-8% annually. The demand typically shoots up during the festival season. However, the Rs 6,711-crore Amul, has no inventories despite its 13 district member union network. The co-operative says it will be able to resume supplies normally only after its members start procuring higher milk quantities. So far, GCMMF, that gives priority to liquid milk, has managed to retain stable supplies. The demand for milk and milk products has gone up by around 30% this year. Delayed and poor monsoon has worsened the situation. Meanwhile, reports on adulteration in milk and butter early this year have compelled a large section of consumers to opt for a trusted brand like Amul, GCMMF chief general manager RS Sodhi said. Meanwhile, the situation is severe in the north where demand for milk fat shoots up ahead of the festive season. We market close to 400 tonne of fat that goes as high as 600 tonne during the festive season. Now, we are facing acute shortage of milk fat on account of longer summer that has affected milk procurement by 2030% compared to the corresponding period in the previous year, said VK Singh, MD, Milkfed that markets Verk brand of dairy products.