Introduction to AMUL

Amul means Priceless Managed by GCMMF

Exists since 1946

Indias largest Food brand

Worlds Largest Pouched milk brand

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 checked
Then send it to Pasteurization

Electronic Weighing Scale

Methylene Blue Reduction Test

4
5

Pasteurizing & Standardizing

Quality Checking

Packing Process

BUSINESS MODEL of AMUL

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

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

WHY AMUL?

Physique
Taste, Quality

Personality
Simple Indian

Culture
Co-operative, Sociable

Self-Image
Proud Indian, Fun Loving

Reflection
Value-Oriented

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

Indias 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

STRATEGICAL PILLERS OF AMUL

1. QUALITY

2. VALUE

FOR MONEY

3. AVAILIBILITY

4. SERVICE

Industry Based Segmentation

Industry Based Segmentation

Logistics @ AMUL

Logistics in collection
Logistics in Supplying

6 million liters of milk per day From about 10,675 separate village cooperative societies Approximately 2.8 million milk producing member.

Storing the milk. Processing the milk. Distributing the milk.

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

IT EVOLUTION
1

The milk collection center at village cooperative societies, were first automated. Data analysis software utilization for milk production estimation and increasing productivity The company zeroed in on ERP as means to keep pace with dynamically changing business environment TCS was hired to guide them in its implementation

The project was named as Enterprise wise integrated application system [EIAS] VATS network between all distribution network and GCMMF

IT EVOLUTION
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

TOTAL QUALITY MANAGEMENT

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

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 Amuls products on the web

Amul exports products worth around US$ 25 million to countries in West Asia, Africa and USA

SWOT ANALYSIS

SWOT ANALYSIS Strengths

Largest food brand in India High Quality, Low Price

Enhanced Milk Production capacity

Vast resources Advanced Technical Equipment manpower capacity Increasing purchase power

World's Largest Pouched Milk Brand

Annual turnover of Rs. 9700 crore Highly Diverse Product Mix Robust Distribution Network

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 nonveg items

SWOT ANALYSIS Threats

Milk vendors, the unorganized sector Threat of Competitors Still competition from MNCs in butter Growing price of milk and milk products

Milk adulteration Low profit margin to Retailer, risk of switching brand

Ban on export of milk powder

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

Suggestions and Recommendations

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 companys milk and milk products

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

WHY is AMUL SUCCESSFUL TODAY? 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

Prepared By:

Yuvraj Zala Kishore Dhenge Raj Manhas Pratik Tiwari Ashish Jain Natasha Singh