History of Amul
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). AMUL is based in Anand, Gujarat has been a sterling example of a co-operative organization's success in the long term. Amul has spurred the White Revolution of India. It is also the world's biggest vegetarian cheese brand.

• To build mutual trust with consumers, governmental authorities and business partners. • Conservation of natural resources and minimization of waste. • • To establish the benchmark for good business practice. • Employing new technologies and processing by committing to resources, both human and financial. • Measuring the cost and benefits to business of its activities.

.VISION AMUL aim is to meet the various needs of the consumer and reach out to a much larger network of people both on a national as well as international scale.

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. CRISIL. has assigned its highest ratings of "AAA/Stable/P1+". Risk and Policy Advisory company. India's leading Ratings. Research.GCMMF – Over View GCMMF: Gujarat Cooperative Milk Marketing Federation GCMMF is India's largest food products marketing organization. .

per day .05 billion litres 8. of Producer Members: No.Facts Members: No.2008-09): Milk collection (Daily Average 2008-09): Milk Drying Capacity: Cattle feed manufacturing Capacity: 13 district cooperative milk producers' Union 2.4 million litres 626 Mts.22 million litres per day 3.79 million 13. per day 3500 Mts.328 11. of Village Societies: Total Milk handling capacity: Milk collection (Total .

Amul .Business Model RAW MILK pasteurization Condensed Packaged Milk Ice cream Beverages Ghee Butter Cream Dried Skimmed Milk Powder .


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businesses or products are classified as low or high performers depending upon their market growth rate and relative market share .  According to this technique. .What Is BCG Matrix?  BOSTON CONSULTING GROUP (BCG) MATRIX is developed by “BRUCE HENDERSON “of the BOSTON CONSULTING GROUP IN THE EARLY 1970’s.


.THE BCG GROWTH-SHARE MATRIX It is a portfolio planning model which is based on the observation that a company‟s business units can be classified in to four categories:  Stars  Question marks  Cash cows  Dogs It is based on the combination of market growth and market share relative to the next best competitor.

to maintain its large market share. High market share Stars are leaders in business. . They also require heavy investment. Attempts should be made to hold the market share otherwise the star will become a CASH COW.STARS High growth. It leads to large amount of cash consumption and cash generation.

not growing or declining. .CASH . They extract the profits by investing as little cash as possible They are located in an industry that is mature. They generate more cash than required.COWS share Low growth High market They are foundation of the company and often the stars of yesterday.

Dogs do not have potential to bring in much cash. . Business is situated at a declining stage.DOGS Low growth. Number of dogs in the company should be minimized. Low market share Dogs are the cash traps.

(low). Low market share Most businesses start of as question marks. . Investments should be high for question marks. Why question marks? Question marks have potential to become star and eventually cash cow but can also become a dog.QUESTION MARKS High growth . They will absorb great amounts of cash if the market share remains unchanged.


not growing or declining. They extract the profits by investing as little cash as possible. They generate more cash than required. They are located in an industry that is mature. Amul Butter and Amul Milk are the foundation of the company . .So basically Amul Butter falls into the category of cash cow.


• Three zones of three cells each are made denoting different combinations represented by green. • Business in the green zone attract major-investment. indicating expansion strategies. the signal is “go ahead” to grow and build. yellow and red colours. .GE MATRIX • The nine cells of the GE matrix are grouped on the basis of low to high industry attractiveness and weak to strong business strength. • Based on the green zone.

the signals is „stop‟.For the yellow zone. . or the re-building approach for adopting turnaround strategies. indicating the retrenchment strategies of divestment and liquidation. the signal is “wait and see” indicating hold and maintain type of strategies aimed at stability and consolidation. For the red zone.

05 15% 30% 100% 8 5 1.5 0.2 1.75 .5 5.6 Growth rate of sales Intensity of competition 10% 15% 5 6 0.Factor Size of the market Weightage 15% Rating 4 Score 0.9 Probability of technological obsolence Social image Profitability 15% 7 1.

4 .7 7.7 20% 20% 15% 8 7 6 1.6 1.9 10% 100% 7 0.Relations Technical strength Corporate image Weightage Rating Score 15% 6 0.5 0.Factor Plant capacity and market share Growth rate Location and distribution channels Management Competence LabourMgt.9 10% 10% 5 7 0.4 0.


Invest for Growth . Try to cement its position as a leader over Mother Dairy .AMUL CAN DO THE FOLLOWING . Cash generation is already in excess so should go for selective investment .

SWOT Analysis .


Strengths • Largest food brand in India • Providing Best quality • World's Largest Pouched Milk Brand • Annual turnover of US $1504 million • Highly Diverse Product Mix • Robust Distribution Network .


• It has been listed in the stock market.Weaknesses……. • Alliance with third parties who do not belong to the organized sector. Chairman Kurian Verghese . • Loss of employees who actually started amul by retirement. • Strong dependency on weak infrastructure.. Eg. • Risks of highly complex supply chain system.


! • Penetrate international markets • Diversify product portfolio to enter new product categories • and expand existing categories like processed foods.Opportunities……. chocolates etc .


Threats…! • Competitors . Mother Dairy.Nutralite. • Still competition from Mutli National’s in butter • Growing price of milk and milk products • Ban on export of milk powder . Nestle and Britannia.

Ansoff‟s Growth Matrix Model Market Development Diversification Growth Matrix Model Market Penetratio n Product Development .

Persuading to increase their usage Cost reduction benefits to customers. . Reduction in price. Introduction of AMUL KOOL in cans.Market Penetration Increase in market customers .

Kids Women Youth Calorie Conscious Health Conscious .

Chocolate Milk III.Nutramul Energy Drink IV. Amul Kool V. Millk Shake . Amul Kool II.Kids I.

Womens Amul Calci .

Amul Emmental Cheese III. UtterlyDelicious Pizza II.Amul Cheese Spreads .Youth I.

Amul Shakti Health Food Drink .Health Conscious I. Nutramul II.

Amul Lite Slim and Trim Milk .Calorie Conscious I.Amul Lite II.Sagar Skimmed Milk Powder III.

Amul Milk Ice-cream Manufacturers Restaurant/Food Chains Milk Coffee Shop Chains Temples .

Diversification of Packaging Amul is available in different forms and sizes – 100 g Amul slabs 200g Amul slabs Amul cubes .

Find below a few: .Advertisements  AMUL is well known for its innovative hoardings.

Advertisements .

Lassi Increase in geographical expansion in national or international markets. Eg .Market Development Introduction of our existing products into new market segments. .

. butter slabs and cubes. Eg. Cheese spread and slice .Product Development This strategy suggests the company to continue operating in the same market but with newer products in addition to current products.

Diversification It is used to indicate development for growth away from the present market and products. . Etc etc.. Uptil now amul is dealing only with dairy product but could diversify in the near future with malls cafes.


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