INTRODUCTION AND HISTORY OF COMPANY

INTRODUCTION
AMUL (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India.
Headquartered in the small town of Anand, Gujarat, it is a brand name managed by an apex
cooperative organization, Gujarat Cooperative Milk Marketing Federation (GCMMF).
Specializing in dairy products, AMUL now takes pride in having built the largest food product
business in the country. Being a part of the Gujarat Cooperative Milk Marketing Federation
(GCMMF), AMUL is a sterling example of cooperative achievement in the developing world.
AMUL survives and grows on the basis of cooperative culture, cooperative networking, market
acumen and respect for both producer and the consumer. Presently, it is the most popular food
brand of India.
HISTORY

Thus their cooperative unions were forced at the village and district level to collect and sell milk
on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed
main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead
the farmers in forming the Co-operative unions at the village level. The Kaira district milk
producers union was thus established in ANAND and was registered formally on 14th December
1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly
resolved to sell the milk under the brand name AMUL.

The Union looks after policy formulation, processing and marketing of milk, provision of
technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary
care, better feeds and the like - all through the village societies. Basically the union and
cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION
LIMITED), a name which suggest THE TASTE OF INDIA.

GCMMF Overview:
GCMMF is the India’s largest food products marketing organization. It is a state level apex body
of milk co-operatives in Gujarat, which aims to provide remunerative returns to the farmers and
also serves the interest of consumers by providing quality products, which are good value for
money.
VISION
The vision of AMUL is as follows:
✔ To serve the interests of the milk producers
✔ To provide quality products that offer the best value to consumers for
money spent.
SALES TURNOVER
Sales turnover of GCMMF

Year Rs. (in millions) US $ (in millions)

1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37740 839

Graphical representation of sales turnover of GCMMF.

AREAS OF OPERATIONS

Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA, Bangladesh,
Australia, China, Singapore, Hong Kong and a few South African nations. Other potential
markets being considered include Sri Lanka.

SOME FACTS:
Annual Revenues : $1.33 billion USD
Members : 13 district cooperative milk producers` union
No of Employees : 2.7 million
No of village societies : 13,141
Total Milk handling capacity : 10.21 million liters per day
Annual Milk Collection : 2.69 billion liters
Daily Milk Collection : 7.4 million liters
Milk Drying Capacity : 626 Mts. Per day
Cattlefeed Manufacturing Capacity : 3090 Mts. Per day

ACHIEVEMENTS
✔ AMUL has achieved the following landmarks.
✔ AMUL is the largest food brand in India.
✔ AMUL is the world`s largest pouched milk brand.
✔ AMUL is the world`s largest vegetarian cheese brand
✔ CRISIL has assigned its highest ratings of “AAA” to the various bank facilities of
GCMMF

PLANTS
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk
powder, flavored milk and buttermilk. Second plant is at MOGAR, which engaged in
manufacturing chocolate, nutramul, Amul Ganthia and Amul lite. Third plant is at Khatraj,
which engaged in producing cheese.

Today, twelve dairies are producing different products under the brand name Amul. 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.

List of Amul products

Amul is the acronym for Anand Milk Union Limited, a dairy cooperative
company in Gujarat, India that markets a wide range of products including
milk powders, milk, butter, ghee, cheese, chocolate, Shrikhand, Gulab
Jamun, ice cream, cream, Nutramul brand and others making it the largest
food brand in India with an annual turnover in excess of US $1 billion (2006-
07). The complete listing is below.
Breadspreads
• Amul Butter
• Amul Lite Low Fat Breadspread
• Amul Cooking Butter
• Delicious Margarine
Pure Ghee
Amul / Sagar Pure Ghee
Milk Powders
• Amul Full Cream Milk Powder
• Amulya Dairy Whitener
• Sagar Skimmed Milk Powder
• Sagar Tea and Coffee Whitener
Sweetened Condensed Milk
• Amul Mithaimate
Sweets
• Amul Shrikhand & Amrakhand
• Amul Mithaee Khoya Gulabjamaun
• Amul Basundi
Fresh Milk
• Amul Taaza Toned Milk 3% fat
• Amul Gold Full Cream Milk 6% fat
• Amul Shakti Standardised Milk 4.5% fat
• Amul Slim & Trim Double Toned Milk 1.5% fat
• Amul Saathi Skimmed Milk 0% fat
• Amul Cow Milk
Amul Icecreams
• Vanilla Royale
• Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)
• Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza,
Roasted Almond)
• Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh
Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)
 • Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
• Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone,
Chococrunch, Megabite, Cassatta)
• Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake
Magic)
• Amul SUGAR FREE Frozen Foods (Milk Based Sweet)
• Amul ProLife Probiotic Ice cream
Chocolate & Confectionery
• Amul Fruit & Nut Chocolate
• Amul Bindazz
• Amul Rejoice
• Amul kesar
Brown Beverage
• Nutramul Malted Milk Food
Milk Drink
• Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom,
Rose, Chocolate, Butterscotch)(Right now AMUL stopped its AMUL
KOOL Production)
• Amul Kool Cafe amul sexy gums
• Amul Kool Koko
Health Beverage
• Amul Shakti White Milk Food

Curd Products

• Yog Sweetened Flavored Dahi (Dessert)

• Amul Masti Dahi (fresh curd)
• Amul Lite Dahi
• Amul Prolife probiotic Dahi
• Amul Masti Spiced Butter Milk
• Amul Lassee

Many of our products are now available in the USA, Gulf

Countries and Singapore.
SWOT ANALYSIS- GCMMF
Strengths

• Modernization of traditional milk production

• Robust distribution chain

• Extensive cold storage system

• Trust of producers & consumers both

• Provision of services to cattle farmers

• Presence in all milk product ranges

• Value in quality & price

• Trained graduates from reputed institutes

• Closely ranked co-operatives which enable Amul to guard against rival

brands.
• Efficiency of distributors and retailers-Amul has one of the biggest
distribution networks in India involving 4 lakhs retailers.
• India's largest and Asia's 2nd biggest Dairy FMCG Co. with a total
investment of Rs. 1900 crores. No MNC, even Nestle, HLL, etc., can
dream of competing With Amu!.
• Quality of products and 100 percent assured supply enables Amul to
keep its consumers and member co-operatives satisfied.
• Low costs discourage/de-motivate competitors to engage in price
wars.
• Amul Calci+
• SWOT ANALYSIS OF AMUL

• STRENGTHS

AVAILABILITY OF RAW MATERIAL

Amul’s strength lies in the easy availability of raw material. Only 20 %

of the milk produced

 • flows into the organized sector. So it becomes cost effective while

producing dahi.

Strong brand

Amul is a strong brand of milk products and has strong brand equity.

Wide product line

Amul has a wide product range .It manufactures all milk products. Its

ice cream & dahi is

• derived from milk itself. So this has positive spill over effect.

Technical expertise-

Because of its 60 years of experience, it has a strong technical back up

Weaknesses

• Bound by dated legislation

• Less control over milch yield

• Cannot accommodate transport delays (perishables)

• Dependence on poor infrastructure for supply (roads, electricity etc)

• Low sales promotion budgets which have a negative impact while

launching new products e.g. jams, squashes, edible oils.
• Not being very professionally managed, and weak marketing seem to
basically milk the brand, rather than develop it into a stronger one. For
the first time in the history of Amul, recently a free gift-knife was
offered with cheese spread.

• Logistic problem

Inadequate transport facility and bad roads make milk products

procurement problematic.

Inadequate supply chain

 There are a few loop holes in the supply chain of Amul. That serves as

an obstacle for tapping up

• the mass market
• Supply not meeting the demand
• In the peak season, the company fails to satisfy the retailers’ demand
on certain products.

Opportunities
• New product development
• Increase in export of product range
• Favorable changes in tastes and disposable income of consumers
• Penetration into areas where SHGs etc have not entered
• Capturing the segment which is tilting towards branded products
• Amul has strong prospects for establishing itself in the field of ice-
creams, especially in regions where Kwality Wall's has low presence
and where the ice-cream manufacturers fall in the unorganized sectors
e.g. Punjab, Gujarat, Haryana, etc.
• It also has enormous potential in the frozen foods sector. It can
develop or improve on Safal-its frozen foods brand.
• It can capitalize on Mother Daily retail outlets to strengthen its retail
chains.
• As we know the fact that INDIA’S population is growing at a
tremendous rate. Therefore there is
a never ending demand for milk and it’s products in the market. So
there is a lot of opportunity
for Amul to penetrate this market.
• Export potential
• Opportunities will increase tremendously if Amul will try to tap up the
foreign market through
• joint ventures and mergers.

Threats
• Unorganized players
• Other dairy co-operative societies
• Risk of contamination throughout channel
• Competitors are companies, not bound by inherent obligations of co-
operatives
• No visible threats in the dairy products field. But has strong rivals
(HLL, Nestle) to face in the fields of edible oils, jams, squashes, ice-
creams. These rival have the capacity to crush Amul in the above
mentioned product field.
• Signs of threat in the cheese cubes and slices market, strong rivalry
with Britannia. Britannia has managed to cut approximately 20-25
percent of Amul's cheese market.

Strong Competition

There is a strong competition for Amul in the milk & dahi segment.

Mother Dairy, Dms, Paras,

• Param & loose milk are the major competitors in milk and on the other
hand Nestley, Britannia & home made dahi are emerging as new
competitors for Amul. They are equally competent as Amul is.