A Case Study of Amul

amul case study
• Formed in 1946, a dairy cooperative movement in india with 250 liters of milk per day with name KIRA DISTRICT CO-OPERATIVE MILK PRODUCERS' UNION.
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• A brand name Amul is managed by Gujart Co-operative Milk
Marketing Federation Ltd. (GCMMF).
• The brand name Amul means AMULYA" (suggested by a quality control expert in Anand). This word derived from the Sanskrit word
"AMULYA" which means "PRICELESS.
• Amul has spurred the white revolution of India, which has made India the largest producer of milk and milk products in the world and the white revelation has finally created a billion-dollor brand.
• Today Amul dairy is No.1 dairy in Asia and No.2 in the world, which is matter of proud for Gujarat and whole india.
• Amul has more than 150 chilling centers in various villages.
• Dr. Verghese Kurien, former chairman of the GCMMF - the man behind the suc s of Amul.
• Amul is a Cooperative dairy company based in india, owned and mana ed by million of farmers. The company produces a wide range fdr ry products, inkling milk, butter, cheese, and ice cream

companey highight
Founder - Verghese Kurien, Tribhuvandas Kishibhai Patel
CEO - Jayendhai Mehta
Founded - December 14, 1946
Headquarters - Anand, Gujarat Website - Amul.com
Amul Full-Form - Anand Milk Union Ltd.
Revenue - IN 52,000 crores (US$6.5 billion), 2022
Managed by Gujarat Mil Marketing Federtion Ltd.

2. y Innocent Hearts Group of
Institution Loharn, Jalandhar

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IH GROUP

OF INSTITUTIONS

Topic _ Amul Case Study

Submitted To - Mr. Akshay Kumar
Presented by - Rohit Kumar y

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3. Content

Introduction & History
Reason of success

Sales turnover.

Business Model.

Amul Supply Chain
Success Factor

SWOT Analysis
Customer Based Market
Segmentation.
Conclusion

4. .

.

.

.

INTRODUCTION AND HISTORY

Formed in 1946, a dairy cooperative movement in india with 250 liters

of milk per day with name KIRA DISTRICT CO-OPERATIVE MILK $ cajon Cooperative —

PRODUCERS’ UNION. sa

A brand name Amul is managed by Gujart Co-operative Milk tbe 9 @ iras
Marketing Federation Ltd. (GCMMF). Tai ni

The brand name Amul means “AMULYA” (suggested by a quality. arma

control expert in Anand). This word derived from the Sanskrit word

“AMULYA" which means “PRICELESS”.

Amul has spurred the white revolution of India, which has made India

the largest producer of milk and milk products in the world andthe

white revelation has finally created a billion-dollor brand.

Today Amul dairy is No.1 dairy in Asia and No.2 in the world, which is

matter of proud for Gujarat and whole india.

Amul has more than 150 chilling centers in various villages.

Dr. Verghese Kurien, former chairman of the GCMME - the man behind

the suc. s of Amul.

Amul is a Cooperative dairy company based in india, owned and

mana: ed by million of farmers. The company produces a wide range
f d= ry products, inkling milk, butter, cheese, and ice cream.

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+

9 Google La Casa |

5. How it all Started

Kaira District Cooperation
Milk producer's Union

in joined A factory was set up to Gujarat Coorperation Milk
PAM Dr. Verghese Kurein joined y
E e E aa a In 1950 Process the extra milk into Marketing Y Rederation
Anand, marketing the i a 4
Dove and was entrusted with the Products like butter and (GCMME) was formed.
u 2 Eco olas MOE milk powder GCMMF markets Amul
1946 > i milk and dairy products

1949 - 1950

0 1951 - 1955 DI

2020

Later Amul diversified into
production of several
different — products like
cheese, choclate ice-cream
ete

6. Amul - About and Company Highlights

Founder - Verghese Kurien, Tribhuvandas Kishibhai Patel
CEO - Jayendhai Mehta

Founded - December 14, 1946

Headquarters - Anand, Gujarat

Website - Amul.com

Amul Full-Form - Anand Milk Union Ltd.

Revenue - INR 52,000 crores (US$6.5 billion), 2022
Managed by Gujarat Mil Marketing Federtion Ltd.

3

7. REASONS FOR
SUCCESS Robust Supply Chain

2 low Cost Strategy

4 strong Distributiojn
Network

Technology and e-
initiatives

8. Sales turnover of Amul from
financial year 2011 to 2022 (in
billion rupees)

Sales turnover in billon Indian rupees

758

500

250

9. O
AMUL - BUSINESS MODEL

RAW MILK
(PASTEURIZAT

ION)

Every day Amul Collects 7 million liters of milk from 206 million form&s; ¿conv
milk into branded, packed products and delivers goods to over 5,!
outlets across the country.

| hain one of the most complicates in the world.

10. AMUL SUPPLY CHAIN

pl
Local Milk Sold to
Restaurants/Other Village &
Milk related Local Residents

faro Chilling a
Units) - adi

lesalers/C&S

11. Success Factor

Diversified product protifolio

+ with a diversified product portfolio, Amul can
meet the needs of all market segments.

+ By providing benefits to target market segments,
‘Amul has built strong brand relationships with its
customers over the last years.

Amul Girl

+ Amul Girl is the
advertising charm used
by the company to
promote its brand

Powerful Brand

+ Amul follows the road of Branded House Architecture and
promotes everything init; they promote it under a common
brand name: Amul. The focus is on promoting the parent brand
rather than individual products, which helps them build brand
awareness and reduce marketing and advertising costs.

Innovation

+ Amul continues to innovate, whether itis new product
launches, creative marketing activities, or fighting
traditional social trends to seek the best.

+ Inthe 1960s, Amul was the first brand in the world to
use buffalo milk to produce skimmed milk powder.

12. Y FUNNEL
INDUSTRY ANALYSIS : POTER'S 5
FORCES

Threat of new entrants. Is

high because There there
are no entry barriers

Customers is High because

Ze Bargaining Power of
Threat of substitutes id high
because of availability of
other product

Bargaining Power of Suppliers
is low because the suppliers
Are rural milk producers

Competitive Rivalry is High
due to Other brands and
Local players.

13. ue
+ Largest milk brands in A
More than 30 dairy
Market leader in ghee &
butter.
Very strong supply Chain.
Enjoys Fine reputation.

Quality with Affordabillity

Customer

Improved
ditions.

Competitor

+ Defending against MAhanani
Vijay, Milma & other co-
ative milk brands.
ves against
Britannia, Nestle, Mother Dairy

14. SWOT Analysis

Sirengih

Largest food brand in India & Asia.

High Quality, Low Price.

World's Largest Pouched Milk Brand

Annual turnover of 4300 Mil Brand.
Annual turnover of 2020-2021 Rs. 61000

Highly Diverse Product Mix.

Opporiuniiies
enetrate international market
+ Diversify product portfolio to enter new

product categories and expand exiting
ke processed foods, chocolates

+ Use internet to sell its products.

Weaknes

‘Strong dependency on weak infrastructure
& completely dependent on villages for its
raw materi

Risk of highly complex supply chain
system,

Short self life of its Product.

Threais

+ Competitors - HUL, Nestle,
Britannia and Local Players.
Stiff competition form MNCs in
butter.

Growing price of milk and Milk
products.

15. Business growth Rate

AMUL - BCG MATRIX
High AES Amul Ice-
cream

Amul Cheese

pnt choceate

Low

Amul Butter

16. CUSTOMER BASED MARKET SEGMENTATION

17. x + AWARDS AND ACHIEVEMENTS

A
—
A
Ms
Moss
8] Amul receives Srishti Good Green Governance award for the year 2013

ere eee

ee aT

ti Shri R $ Sodhi, MD-GCMMF, receives prestigious QIMPRO GOLD STANDARD Quality Award
PB 2013

Bm GCMIME wins the SAP Award for Customer Excellence (SAPACE) 2013 under the category of

J "Best Run Award in Finance”

18. Conclusion

Amul is one of the most successful and recognized brands in
India, and has achieved this success through its strong
marketing strategy, focus on quality, and commitment to its
customers. Despite the challenges,

Amul is well-positioned to continue its success in the future.

Amul’s success has been an inspiration to many, and it serves as a
great example of how a cooperative business model can be
successful in the modern market.