Information about AMUL company

2. Introduction to AMUL
Amul means “Priceless”
Managed by GCMMF
Exists since 1946
India’s largest Food brand
World’s Largest Pouched
milk brand

5. 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

6. 2. Electronic Milk Test
 With the help of EMT
content of FAT and SNF
(solid No Fat) is
separated
 Then send it to
Pasteurization
Electronic Weighing Scale

7. 3 Methylene Blue Reduction Test
4 Pasteurizing & Standardizing
5 Quality Checking
6 Packing Process

9. BUSINESS MODEL of AMUL
 2.8 mn member in  Procurement of  Marketing of milk
Gujarat milk from the & milk products
 10,675 Co-op Village Dairy  Establish
Societies  Arranging distribution
 6 mn Ltrs milk transportation of network
collected raw milk from the  Maintaining brand
VCS to Milk Union Value
District Level State Level
Village Co-Operative
Co-operative Co-operative
Societies
Societies Societies

12. GCMMF TODAY
Sales Turnover Rs.9700 crore (2010-11)
5000+ Wholesale Dealers
5.5+ Lac Retailers
Modern Format Stores
Overseas Operations in 41 countries

13. Major COMPETITORS of

14. WHY AMUL?
Culture
Physique Personality Co-operative,
Taste, Quality Simple Indian Sociable
Self-Image Reflection
Proud Indian, Value-Oriented
Fun Loving

16. PRODUCTS For KIDS & TEENS
Amul Kool Chocolate Milk
Nutramul Energy Drink
Amul Kool Milk Shake
Amul Chocolates

17. PRODUCTS For YOUNGSTERS
Utterly Delicious Pizza
Amul Emmental Cheese
Amul Cheese Spreads

18. PRODUCTS For CALORIE CONSCIOUS
Amul Lite
Sagar Skimmed Milk Powder
Amul Lite Slim and Trim Milk

19. PRODUCTS For HEALTH CONSCIOUS
Nutramul
Amul Shakti Health Food Drink

20. PRODUCTS For EVERYONE
AMUL TAZAA(1.5 % FAT)
AMUL SHAKTI(3.2% FAT)
AMUL GOLD (4.5% FAT) &
AMUL BUTTER & CHEEZE, GHEE & FLAVOURED MILK

21. PRODUCTS For EVERYONE

22. PRODUCTS For DIABITIC
India’s First Pro-Biotic Wellness Ice cream & Sugar
Free Delights For Diabetics

23. 4 Ps of AMUL
Product Price Promotion Place

24. Promotion
Jingle: Utterly, Butterly… Delicious
Mascot: Amul Baby girl
Media: Newspaper, TVC, Hoardings…

26. 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

27. STRATEGICAL PILLERS OF AMUL
1. QUALITY
2. VALUE FOR MONEY
3. AVAILIBILITY
4. SERVICE

28. Industry Based Segmentation

29. Industry Based Segmentation

30. Logistics @ AMUL
Logistics • 6 million liters of milk per day
• From about 10,675 separate village
in cooperative societies
• Approximately 2.8 million milk producing
collection member.
Logistics • Storing the milk.
in • Processing the milk.
• Distributing the milk.
Supplying

31. 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

32. IT EVOLUTION
1
The milk collection center at village cooperative societies, were first
automated.
2 Data analysis software utilization for milk production estimation
and increasing productivity
3 The company zeroed in on ERP as means to keep pace with
dynamically changing business environment
4 TCS was hired to guide them in its implementation
The project was named as Enterprise wise integrated
5
application system [EIAS]
6 VATS network between all distribution network and GCMMF

33. 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

34. 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

35. 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

36. 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

37. IT BENEFITS
Online order placements of Amul’s
products on the web
Amul exports products worth
around US$ 25 million to countries
in West Asia, Africa and USA

38. SWOT ANALYSIS
S W O T

39. SWOT ANALYSIS
Strengths
 Largest food brand in India  Enhanced Milk
Production capacity
 High Quality, Low Price
 Vast resources
 World's Largest Pouched Milk
Brand  Advanced Technical
Equipment manpower
capacity
 Annual turnover of Rs. 9700
crore  Increasing purchase
power
 Highly Diverse Product Mix
 Robust Distribution Network

40. SWOT ANALYSIS
Weaknesses
 Risks of highly complex  Perishability of products
supply chain system
 Erratic power supply
 Strong dependency on
weak infrastructure  Lack of proper
Infrastructure;
 Alliance with 3rd parties warehousing, Trained
who do not belong to manpower
the organized sector
 Indian Roads specially
for logistics facility

41. SWOT ANALYSIS
Opportunities
 Increase the Penetration  Presence only in
in international markets Vegetation Food Market,
can launch range of non-
 Diversify product veg items
portfolio to enter new
product categories and
expand existing
categories like processed
foods, chocolates etc
 innovations in product
development, packaging
and presentation
 IT support

42. SWOT ANALYSIS
Threats
Milk vendors, the un-
organized sector  Milk adulteration
Threat of Competitors  Low profit margin to
Retailer, risk of
Still competition from switching brand
MNCs in butter
Growing price of milk
and milk products
Ban on export of milk
powder

43. SEVERAL FINDINGS
Low profit
All retailers get More of the
margin, almost Amul dont
Amul milk activities were
all retailers are print
from company not
not interested packaging date
selected communicated
in selling Amul on pouch
distributors by distributors
milk

44. 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 company’s milk and milk products

45. 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

46. 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

47. 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

48. Prepared By:
Yuvraj Zala