Dairy Industry Of India

1. Prepared By:
Partha Pratim Deka(15-50-119)
Dibakar Dutta(15-50-107)
Bidyut Bikash Das(15-50-118)
Biman Boruah(15-50-106)
Dairy Industry

2. Dairy industry in India
India has the highest livestock population in the world with 50% of the
buffaloes and 20% of the world’s cattle population.
List of top dairy companies in India

3. Founder & Chairman- Dr Verghese Kurien
GCMMF : Gujarat Co-operative Milk Marketing Federation Limited
GCMMF : formed in 1st Dec 1946 in Kaira Dist, Gujarat
Amul : Anand Milk union limited

5. An overview ….
Members
17 District Cooperative Milk Producers'
Unions
No. of Producer Members 3.37 Million
No. of Village Societies 18,536
Total Milk handling capacity per day 24 Million litres per day
Milk Collection (Total - 2014-15) 5.42 billion litres
Milk collection (Daily Average 2014-15) 14.85 million litres
Cattlefeed manufacturing Capacity 6340 Mts. per day
Sales Turnover -(2014-15) Rs. 20733 Crores (US $ 3.4 Billion)

6. Amul Product Mix
Dairy Nondairy
Fresh Milk Veg Oil
Milk Drinks & Desserts Snacks
Bread Spreads Instant Food
Cheese Products

7. Swot Analysis Of Amul
Strengths
 Largest food brand in India & Asia
 High quality , Low Price
 Introduced TQM .
 World’s Largest pounched Milk Brand
 Annual turn-over of 20733 crores (2014-
15)
 Highly Diverse Product Mix
 Robust Distribution Network
Weaknesses
 Strong Dependency on weak infrastructure
& completely dependent on villages for its
raw mateials
 Risks of highly complex chain system
 Short life of its product
 Alliance with third parties who do not
belong to the organized sector
Opportunities
 Penetrate international markets
 Diversify product portfolio to enter new
product categories & expand existing
categories like processed foods ,
choclates etc.
 Use internet for selling products
Threats
 Competitors – Hindustan Lever,
Nestle,Britania & local players
 Stiff competition from MNC’s in butter
 The yield of India cattle still much lower
than other dairy countries

8.  Although many substitute in
Drinking arena when compared
with milk are available, the dairy
industry enjoys high
Profitability in case of other dairy
products
 Requires high capital
Investment & difficult to achieve
economies of Scale
 Access to very complex & well
established distribution channel
 Customer Loyality
 Presence of multiple competitors
as well as local Dudhwallas
 Home Delivery & freshness of
local dairy products from local
Dudhwallas make the more complex
Porter’s 5 forces model
Rivalry Among
Competitors
(High)
 Large no of
competitors
 Local Dudhwallas
Threats Of
New
Entrants
(Low)
Bargaining
Power Of
Buyers (High)
Threat Of
Substitutes
(Medium)
Bargaining
Power of
Supplier
(Low)
 Mainly the Suppliers are rural milk
producers & thus there the
bargaining power is very low

9. 4 P’s of amul
 Tracks consumer needs & their changing lifestyles & according develops products to suit
Their needs.
 Product quality plays a paramount role & so does packaging
 The main USP of Amul brand is its low pricing.
 The competitive advantage is its “backward intergration ” strategy , which helps
substantially in cost reduction
 Amul boasts of the largest cold chain network (18000 refrigerators) in India as
compared to any other company.
 It sells pizzas in rural markets too.
 Amul spends very less on its advertising budget,but spends it very effectively.
 It has the power of an umbrella brand Amul , which is highly respected brand name &
enjoys public trust.
Product
Pricing
Place
Promotion

10. 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.
• Establishment of a direct
linkage between milk
producers and consumers
by eliminating middlemen
• Milk Producers (farmers)
control procurement,
processing and marketing
• Professional management

12. Customer basedmarketSegmentation
Amul Kool , Chocolate , Milk nutritional Energy
Drink
Women Amul Calci+
Youth Utterly delicious Pizza , Amul Emmental Cheese
Amul Cheese Spreads
Health conscious Amul Shakti Health food drink, Nutramu
KIDS
Calorie
conscious
Amul lite, Amul lite and trim milk

13. Market Share & Competitors
Category Market share Market Position Competitors
Butter 87% 1 Britannia , Nestle
Milk Powder 40% 1 Britannia ,
Cheese 50% 1 Britannia
Ice-Cream 38% 1 Kwality Walls,
Mother Dairy
Sweets/condensed
Milk
50% 1 Nestle
Chocolate Drink 90% 1 Nestle
Chocolate 10% 3 Cadbury , Nestle
Curd 61% 1 Mother Dairy

14. GCMMF Turnover (In Crores)

16. Milk
Ice-cream Manufacturers
Restaurant/Food Chains
Coffee Shop Chains
Temples
Amul Milk

17. Butter/Cheese/Ghee
Bakery & Confectionaries
Pizza Retailers
Snacks Retailers

19. CSR of Amul
Tree Plantation
Sponsorships
Amul Ads

20. Reason For Success
SUCCESS!!
Robust Supply ChainLow Cost Stratgey
Strong Distribution Network
Technology & E-Initiatives
Diverse Product Mix
The Brand Value AMUL

21. What more can Amul do?
To improve further Amul can try out the following ideas:
I) Amul has implemented TQM very successfully, but this concept has grown old. In order to succeed
in this competitive environment Amul must use the concept of Six Sigma: which generally focuses on three key
areas: Improving customer satisfaction, reducing cycle time, reducing defects.
II) There are certain product like AMUL basundi, gulab jamoon, choclates etc which are not as
popular as Amul ice cream. Amul must try to understand the cause of this through thorough market research
and work on improving these products.
III) Although Amul believes in innovation, but still in many segments requires upgradation in some of
the aspects. Amul chocolates and Nutramul hardly has 10% market share which is far behind their competitors.
IV) Though Amul’s hoardings are a huge success, it can penetrate even better in the rural areas by
advertising through the media viz cable channels and newspapers.