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Presented By

:
Akash Jain
Roll No. 06

Indian Dairy Industry

• India is world’s largest producer of dairy products by volume.

• It is accounting more than 9.5% of world’s total milk
production.

• Also India is world’s largest consumer of dairy products,
consuming almost all of its own milk production.

• Indian dairy industry is different from other dairy producing
countries as India places its emphasis on both cattle and
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buffalo milk.

Introduction to AMUL
Amul means
“Priceless”
Managed by GCMMF

Exists since 1946

India’s largest Food
brand
World’s Largest
Pouched milk brand

.

GUJARAT COOPERATIVE MILK MARKETING FEDERATION (GCMMF) • India's largest food product marketing organisation with annual turnover (2015-16) US$ 3. Singapore. Gulf Countries. Japan. Philippines. one of the largest such networks in India. •  It operates through 56 Sales Offices and has a dealer network of 10000 dealers and 10 lakh retailers.5 billion • India's largest exporter of Dairy Products • Products are available in USA. . China and Australia.

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972 crore during the year 2015-16  • The group turnover of GCMMF and its constituent member unions.  . representing the figure of all products sold under the Amul brand. was Rs 33.000 crore or $5 billion. Amul achieved a growth of 67 per cent  • A turnover of Rs 22.Growth • Registered a quantum growth of 187 per cent in the last six years  • Cumulative average growth rate (CAGR) of 19.2 per cent  • Last three years.

Oils 8 .Amul Product’s Diversification Dairy • Cheese Products • Bread Spreads Non-Dairy • Milk Drinks & Desserts • Instant Food • Fresh Milk • Snacks • Veg.

PRODUCTS • Bread Spreads • Milk Drinks • Powder Milk • Fresh Milk • Cheese • For Cooking 9 • Chocolate .

MARKET SHARE 10 .

AMUL Model 11 .

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Supply Chain Management 14 .

Products are transported Pasteurized to the milk is various transported wholesale to the and retail Chilled milk is stores regional milk transported federation from the VCC factories to the ditrict where dairy union where Dairy products are the milk is farmers get pasteurized manufacture milk to the d and VCC where branded milk is cooled using .

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– Processing the milk. Logistics in coordination of – – Storing the milk.6 million milk producing member. Logistics in collection – – 16 million liters of milk per day – From about 18. – Approximately 3. II. . 17 – Distributing the milk. Logistics Process I.485 separate village cooperative societies.

– Calculation of the purchase price. – Determining of fat content. Supplier logistics – – Weighing the milk. Cont… III. 18 .

THE CHANNEL NETWORK • Procurement channel.downstream flow 19 .upstream flow • Distribution channel.

Procurement • Activities at the village level comprised developing and servicing the VCSs. • The VCSs provide the farmers with good quality animal feed. and transporting it to the chilling and processing units twice a day. and other services like veterinary first aid. • Milk collection. fodder. procuring milk. 20 .

. PROCUREMENT CHANNEL (UPSTREAM) • On an average around thousand farmers come to sell milk at their local co- operative milk collection center. • At the milk collection counter. • The milk is then weighed and the fat content of the milk is measured by an electronic fat testing machine. the farmer drops the card into a box and the identification number is transmitted to a personal computer attached to the machine. • Each farmer has been given a plastic card for identification.

Cont… • Both these details are recorded in the PC. The computer then calculates the amount due to farmer on the basis of the fat content. 22 . • The value of the milk is then printed out on a slip and handed over to farmer who collects the payment at adjacent window.

23 . • Refrigerators and freezers with retailers and departmental stores to retain freshness. • Chilled trucks to transport processed products • Delivery to local chillers by insulated rail tankers and chilled trucks. Cold Storage Network • Chillers in proximity of villages • Prompt transport to district facilities for further dispatch to consumers/ processing units.

Distribution • GCMMF coordinated with various unions to get a regular supply of milk and dairy products. GCMMF and the district unions had several mechanisms in place. • The unions monitored the supplies of milk and the distribution of finished products. • The processed milk and dairy products were procured from district dairy unions and distributed through third party distributors. • To ensure quality and timely deliveries. 24 .

Reverse logistics • MILK CHURN : from dairy to VCS • POUCH MILK TRAY : from retailer to dairy • BOTTLE : from retailer to dairy • DAMAGED PRODUCTS : from customer to retailer then to dairy .

• More than 2000 parlor with a turnover of Rs. 26 . Direct retailing • Amul has entered into direct retailing through "Amul Utterly Delicious" parlors created in major cities. 200 crores. • Amul has plans to create a large chain of such outlets to be managed by franchisees throughout the country.

milk fat content. • Amul has start implementation of ERP in phases. • The project was named as Enterprise wise integrated application system [EIAS] • Automatic milk collection system units(AMCUS) at village society were installed in the first phase to automate milk production logistics • AMCUS has facilities to capture member information. EVOLUTION of “IT” • Started fifty years back by AMUL by eliminating the ‘middlemen’ and bringing the ‘producers’ closer to the ‘consumers’. volume collected. and amount payable to each member electronically • Data analysis software utilization for milk production estimation and increasing 27 productivity .

Benefits of IT • Processing of 10 Million payments daily. . • Radical changes in business processes . • Improved delivery mechanisms and transparency of business operations. amounting to transactions worth USD 3. • Huge reduction in processing time for effecting payments to the farmers from a week to couple of minute.eliminating middlemen.78 million in cash.

• Amul exports products worth around US$ 25 million to countries in West Asia. Cont… • Movement of 5000 trucks to 200 dairy processing plants twice a day in a most optimum manner. 29 . Africa and USA. • Online order placements of Amul’s products on the web. • Distributors can place their orders on the website.

– Quality Testing and Milk measurement at Dairy co-operative Societies and – Management Practices – Self-leadership Development . – Planning and Budgeting of the Dairy Society. Quality Management • Have a commitment to achieve quality in basically six priority areas – – Cleanliness of the dairy cooperative societies. – Artificial Insemination Service.

Contd. . involving every member of the value chain. • TQM movement has also been extended to the wholesale dealers by organizing workshops for them • Movement also involves the process of policy deployment known as Hoshin Kanri. • This involves strategy formulation and implementation..

SWOT ANALYSIS S W O T .

Low Price  Advanced Technical  World's Largest Equipment manpower Pouched Milk Brand capacity  Highly Diverse  Increasing Product Mix purchase power  Robust Distribution Network S  Enhanced Milk Production capacity .Strengths  Largest food brand in India  Vast resources  High Quality.

Weaknesses  Risks of highly complex supply chain system  Perishability of products  Strong dependency on  Erratic power weak supply infrastructure  Lack of proper  Alliance with 3rd Infrastructure. not belong to the Trained organized sector manpower  Indian Roads specially for logistics facility W . parties who do warehousing.

 Increase the Opportunities Penetration in international markets  Diversify product  Presence only in portfolio to enter Vegetation Food new product Market. can launch categories and range of non-veg expand existing items categories like processed foods. packaging and O presentation  IT support . chocolates etc  innovations in product development.

the un- organized sector  Milk Threat of adulteration Competitors  Low profit Still margin to competition Retailer. risk of from MNCs in switching brand butter Growing price of milk and milk products Ban on export T of milk powder .Threats Milk vendors.

rural households and industry is prices LOW small cooperatives sell at the going market rate. PORTER’S 5 FORCES Competitive Rivalry .LOW government control the sector • Essential item for and regulate prices beverages like tea. • The big giants and the Threat of Substitutes . coffee • Traditional consumption Threat of Competitive Threat of New habits make milk a favorite Substitutes Rivalry Entrants Threat of New Entrants - • There is no other offering LOW HIGH HIGH HIGH that can substitute milk.LOW local brands • The prices of packaged and branded • New company just has milk and milk products is fixed Bargaining to follow the defined • Bargain with the local milk vendors in Power of Consumers standards and it can unorganized sector and local shops LOW come up with its selling milk products offerings in this sector . • Not many entry barriers • Many local players have come up with their own Bargaining Power of Consumers .HIGH Bargaining Power of Suppliers - • New brands are coming up each day and the Bargaining LOW Power of major factor on which they play in this Suppliers • Farmers.

ijser.com/m/gcmmf • http://www.php/cd-programmes/quality-movement • http:// economictimes.com/worlds-popular-list-top-10/2017-2018-2019-2020 -2021/world/largest-milk-producing-countries-world / • http://www.amul. References • http://www.org/researchpaper/A-CASE-STUDY-OF-AMUL-COOPERATIVE-IN-I NDIA-IN-RELATION-TO-ORGANIZATIONAL-DESIGN-AND-OPERATIONAL-EFFICIENCY.indiatimes.indiatimes.com/industry/cons-products/food/amul-clocks-quantum -leap-of-187-in-6-years/articleshow/52802217.com/index.cms .pdf • http:// economictimes.amul.cms • https://www.com/industry/cons-products/food/amazon-to-sell-amul -products-in-us/articleshow/55602997.trendingtopmost.com/m/about-us • http://www.amuldairy.

THANK YOU .