Amul means “Priceless”

World’s Largest Pouched milk brand

Managed by GCMMF

Exists since 1946

India’s largest Food brand

Introduction to AMUL

1. Collection of RAW Milk

12,22,000 ltrs of Milk collected Everyday Then sent to lab, separated from raw milk

& Sent it to various cold storages @

Ahmedabad

2. Electronic Milk Test

With the help of EMT content of FAT and SNF (solid No Fat) is separated

Then send it to Pasteurization

Electronic Weighing Scale

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Pasteurizing & Standardizing

Methylene Blue Reduction Test

Quality Checking

Packing Process

2.8 mn member in Gujarat

10,675 Co-op Societies

6 mn Ltrs milk collected

Procurement of milk from the Village Dairy

Arranging transportation of raw milk from the VCS to Milk Union

Marketing of milk & milk products

Establish distribution network

Maintaining brand Value

Village Co-Operative Societies

District Level Co-operative Societies

State Level Co-operative Societies

BUSINESS MODEL of AMUL

GCMMF TODAY

Sales Turnover Rs.9700 crore (2010-11)

5000+ Wholesale Dealers

5.5+ Lac Retailers

Modern Format Stores

Overseas Operations in 41 countries

Major COMPETITORS of

Physique Taste, Quality

Reflection Value-Oriented

Culture Co-operative,

Sociable

Self-Image Proud Indian,

Fun Loving

WHY AMUL?

Personality Simple Indian

PRODUCTS For KIDS & TEENS

Amul Kool Chocolate Milk

Nutramul Energy Drink

Amul Kool Milk Shake

Amul Chocolates

PRODUCTS For YOUNGSTERS

Utterly Delicious Pizza

Amul Emmental Cheese

Amul Cheese Spreads

PRODUCTS For CALORIE CONSCIOUS

Amul Lite

Sagar Skimmed Milk Powder

Amul Lite Slim and Trim Milk

PRODUCTS For HEALTH CONSCIOUS

Nutramul

Amul Shakti Health Food Drink

PRODUCTS For EVERYONE

AMUL TAZAA(1.5 % FAT)

AMUL SHAKTI(3.2% FAT)

AMUL GOLD (4.5% FAT) &

AMUL BUTTER & CHEEZE, GHEE & FLAVOURED MILK

PRODUCTS For EVERYONE

PRODUCTS For DIABITIC

India’s First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics

4 Ps of AMUL

Product Price Promotion Place

Promotion

Jingle: Utterly, Butterly… Delicious

Mascot: Amul Baby girl

Media: Newspaper, TVC, Hoardings…

Entering into New market, Fast food retail chain, started in Ahmedabad provides Varieties of Pizza, Planning to open outlets in TIER – I cities like Mumbai, Delhi etc.

Pizza @ Rs. 39

1. QUALITY

2. VALUE FOR MONEY

3. AVAILIBILITY

4. SERVICE

STRATEGICAL PILLERS OF AMUL

Industry Based Segmentation

Industry Based Segmentation

Logistics @ AMUL

• 6 million liters of milk per day

• From about 10,675 separate village cooperative societies

• Approximately 2.8 million milk producing member.

Logistics in

collection

• Storing the milk.

• Processing the milk.

• Distributing the milk.

Logistics in

Supplying

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

The milk collection center at village cooperative societies, were first automated.

The company zeroed in on ERP as means to keep pace with dynamically changing business environment

The project was named as Enterprise wise integrated application system [EIAS]

Data analysis software utilization for milk production estimation and increasing productivity

TCS was hired to guide them in its implementation

VATS network between all distribution network and GCMMF

IT EVOLUTION

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Amul has start implementation of ERP in phases.

Automatic milk collection system units(AMCUS) at village society were installed in the first phase to automate milk production logistics

AMCUS facilities to capture member information, milk fat content, volume collected, and amount payable to each member electronically

Your own footer Your Logo

IT EVOLUTION

There is improvement in quality of milk in term of acidity and sour milk

Milk union records show 2% reduction in the amount of the

sour milk received from the union

Improved microbiological quality of upcoming raw milk in the form of methylene blue reduction

This gives better shelf life to the product

TOTAL QUALITY MANAGEMENT

IT BENEFITS

Radical changes in business processes - eliminating middlemen

Improved delivery mechanisms and transparency of business operations

Due to this process, AMUL is able to collect six million liters of milk per day

IT BENEFITS

Huge reduction in processing time payments to the farmers from a week to couple of minute

Movement of 5000 trucks to 200 dairy processing plants twice a day in a most

optimum manner

Practicing just in time supply chain management with six sigma accuracy

IT BENEFITS

Online order placements of Amul’s products on the web

Amul exports products worth around US$ 25 million to countries

in West Asia, Africa and USA

S W T O

SWOT ANALYSIS

Largest food brand in India

High Quality, Low Price

World's Largest Pouched Milk Brand

Annual turnover of Rs. 9700 crore

Highly Diverse Product Mix

Robust Distribution Network

Enhanced Milk Production capacity

Vast resources

Advanced Technical Equipment manpower capacity

Increasing purchase power

Strengths SWOT ANALYSIS

Weaknesses

Risks of highly complex supply chain system

Strong dependency on weak infrastructure

Alliance with 3rd parties who do not belong to the organized sector

Indian Roads specially for logistics facility

Perishability of products

Erratic power supply

Lack of proper Infrastructure; warehousing, Trained manpower

SWOT ANALYSIS

Opportunities

Increase the Penetration in international markets

Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc

innovations in product development, packaging and presentation

IT support

Presence only in Vegetation Food Market, can launch range of non-veg items

SWOT ANALYSIS

Threats

Milk vendors, the un-organized sector

Threat of Competitors

Still competition from MNCs in butter

Growing price of milk

and milk products Ban on export of milk

powder

Milk adulteration

Low profit margin to Retailer, risk of switching brand

SWOT ANALYSIS

SEVERAL FINDINGS

Low profit margin, almost all retailers are not interested in selling Amul

milk

All retailers get Amul milk

from company selected

distributors

More of the activities were

not communicated by distributors

Amul dont print

packaging date on pouch

• Company should start printing packaging date on milk pouch.

• Consider on the supply of product in the peak season.

• 250 ml milk pouch should make available to retailers for selling, because lower income family has intention to buy small pouch milk.

• Incentives & schemes should be given to the retailers.

• Provide reasonable Margin to retailers as compared to competitors, this motivates them to promote company’s milk and milk products

Suggestions and Recommendations

Expansion plan

Tie up with the Wal-Mart and, It has promised to keep Amul brand on their shelves in US

Export is in 41 countries, now planning to export to Japan

Plan to open 10000 Amul parlor by the end of the 2014

Amul (Recently in news)

• Milk via milk train

• Tie up with Adani Logistics

• 50 wagon each capacity 24k liter

• Initial transport cost was 45 crores ,reduce it to almost 36 crores by use of efficient logistics techniques

Maintain Quality & Low pricing strategy

Robust & Vast Distribution Channel

Investment in IT infra, Mkt strategies

First Mover Advantage, So Everybody knows that AMUL is taste of INDIA

WHY is AMUL SUCCESSFUL TODAY?

Prepared By:

Yuvraj Zala