GCMMF Case Analysis

By:

Hardik Mishra (B08010)

Kaushambi Ghosh (B08012)

Pankaj Agarwal (B08020)

Ritesh Chowdhary (B08023)

Agenda

• History of GCMMF

• Business Model

• Product Category

• Industry Analysis

• SWOT Analysis

• BCG Matrix

• Market Segmentation

• Financial Analysis

• The Way Forward..!!!

History• Founded in 1946 under the name Kaira District Co-

operative Milk Producers’Union Ltd by Tribhuvandas Patel

• Runs as a purely farmers’ cooperative

• Starting from a daily procurement of 250 lts/day to 4.6 mn

lts/day, now has become a milk giant under the name

GCMMF

• Manages the brand “AMUL” meaning “Priceless” is the

No. 1 in dairy in Asia and No.2 in the world

• Main objective is to carry out activities for the economic

development of agriculturalists

• Spurred the White Revolution in India

Anand PatternVillage level

• 200 members

• Committee of 8-9 members

District Level

• Board of Directors – 12

• 900 members (Approx.)

State Federation

•Members are chairpersons of District level co-operatives and ex officio members:

• Representative from NDDB

• Registrar of co-operative of the state concerned

Business Model“Providing quality products toconsumers at an affordable price”

Everyday GMCCF collects 4.6

mn lts of milk from 2.1 milk

producers, converts the milk into

branded, packed products and

delivers the goods to over

4,00,000 retail outlets across the

country with the help of its 12

plants

Product CategoryCategory Market Share Market Position

Milk N.A 1

Butter 85% 1

Milk Powder 60% 1

Cheese 50% 1

Ice Creams 30% 2

Sweets 50% 1

Chocolates 10% 3

Chocolate Drinks 15% 4

Edible Oil 12% N.A.

Market Segmentation

Customer Based

Kids Ice-Cream, Chocolate, Milk, Nutramul, Sweets, Safal fruit drinks.

House Wife

Dhara Edible Oils, Milk, Safaltomato ketchup and mixed fruit jam, Amul Cheese, Amul spray.

Calorie Conscious

Amul Lite, Dhara Health, Sagarskimmed milk powder.

Youth Sweets, Ice-cream, Cheese, Chocolates, Milk.

Industry BasedIce-cream manufacturers, Restaurants, Cofee Shop Chain

Bakery and confectionaries, Pizza shops, snacks shops.

Milk

Cheese, Butter, Ghee

Market Segmentation

Industry Analysis

Competitive Rivalry - High

Threat of New Entrants -

High

Bargaining Power of

Customers -High

Threat of Substitutes -

Low

Bargaining Power of

Suppliers -Low

SWOT Analysis

Strength High quality, low price

Robust Distribution Network

Extensive cold chain network

Varied product range

Excellent relationship with the farmers

Constant innovations

Excellent relationship with supermarkets/departmental

stores

Strong brand names

Weaknesses

Completely dependent on villages for its raw material

Short self life of most of their products

Supplier centred

Tax implications because of Co-operative structures

SWOT Analysis

Opportunities Increase per capita milk consumption

Penetrate international markets

Concentrate on process food sector

Threats Competitors – HUL, Nestle, Britannia other local players

The yield of Indian cow is much lower than that of cow in

other dairy countries

SWOT Analysis

BCG Matrix

Financial Analysis

Financial Analysis Excel

The Way Forward..!!!• It should concentrate in the processed sector as it

has a robust distribution and cold chain network

• It should be more customer centric

• It should look forward to implement information technology

• It should influence the Govt. against the tax implications which are benefitting the private players more than the co-operatives

Thank You