AMUL :- ANAND MILK UNION LIMITED

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 HISTORICAL BACKGROUND OF AMUL

• AMUL’s birth is indelibly linked to the freedom movement of India

• The first AMUL cooperative was the result of farmers .
• Sardar Vallabh bhai Patel vison to organize farmers .
• Dr. Varghese Kurian , who found AMUL.

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• Formed in 1946 at ANAND dist. In state of GUJRAT , INDIA .
• AMUL has spurred the white revolution of India which has made India the largest
producer of milk and milk product in world .
• It is also world largest vegetarian cheese brand .
• AMUL has entered overseas market like UAE , USA , Bangladesh , Australia , China,
Singapore , Hongkong Etc.
• Its bid to enter Japanese market in 1994 but had not succeeded , but now it has fresh
plans of flooding the Japanese market .

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THE KAIRA DISTRICT COOPRATIVE MILK
PRODUCER’S UNION
• Established in 1946 – two societies collected 250 litters of milk .
• Competed with Polson's dairy to supply milk to Bombay .
• 1952 – Bombay government terminated Polson's dairy contract and singed with AMUL .
• 1955 – Dairy and milk powder plant was established with aid from the United Nations
Children's Fund ( UNICEF ) .
• 1960 – AMUL pioneered production of milk powder and baby food from buffalo milk .
• AMUL – meets producer demand for critical inputs , veterinary services , artificial
insemination and feed .
• Today AMUL members supply more then 9.2 million litres of milk per day .
• AMUL sells 3690 tonnes of cattle feed every year .

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 THE AMUL MODEL
The AMUL Model of Dairy development is a three-tiered structure
with the dairy cooperative societies at the village level federated
under a milk union at the district level and a federation of member
unions at the state level .

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 3 TIER STRUCTURE

Village • 200 member

• Committee of
level 8-9 members

• Boards of
District Directors – 12
level • 900 members
(approx. )

• Members are
State chairpersons of
district level
federation cooperative & Ex-
official members .
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 REASONS FOR SUCCESS
Low cost
strategy

Technology Robust
and e- supply
initiatives chain

Success

Strong Diverse
distribution product
network mix
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 SWAT ANALYSIS
•Largest food brand in india •Risk of highly complex supply
•High quality, low price chain system
•World largest pouched milk •Strong dependency on weak
brand infrastructure
•Annual turnover of US $ 5.5 •Alliance with 3rd parties who do
billon not belong to the organised
sector

Strength Weakness

Opportunity Threat

•Penetrate international markets •Competitors – Hindustan lever , Nestle

•Diversify product portfolio to and Britannia
enter new product categories •Still competition from MNCs in butter
and expand existing categories •Growing price of milk and milk
like processed foods , chocolates products
etc. •Ban on export of milk powder 9
BUSSINESS MODEL

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INDUSTRY BASED MARKET SEGMENT

RESTAURANT , COFFEE SHOP

CHAIN , ICE CREAM
MANUFACTURER

BAKERY & CONFECTIONARY

, PIZZA CHAIN , SNACKS
CHAIN
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 High AMUL CHEESE AMUL ICE CREAM

Business
growth rate
BCG MATRIX
OF AMUL

AMUL BUTTER AMUL CHOCOLATE

Low

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Relative market share
HIGH Low
 ADVERTISEMENTS

One can easily recognize the so called TOPICALS by amul

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Question – Describe
consumer behaviour in the
context of a commodity like
milk.

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Consumption on daily basis .
Females are the main decision maker for
the milk .
Preferences on purity & price .
Brand matters .

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Question – What are the market
segments that amul can
penetrate ? Are there any other
segmentation alternatives
available to amul ?

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two segment – consumer and industry
Alternative segments – Railways , Educational
institutions , Export.

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Question – If you were in the
marketing chief of amul what other
innovations would you make in your
market strategy ?

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More consumer centric
Installing milk and milk chiller and
automatic milk collection systems in all
our village cooperative societies .
Advertising on local cable network ,
radio , newspaper , e-media etc.
Creating awareness .
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