1. AMUL CASE STUDY
Presented By Group No.3
Anirudha Singh Tomar (1302)
Shailly Choudhary (1317)
Shishir Kumar (1318)
Sudarshan Kumar Patel (1320)

2. Introduction
• Formed in 1946, is a dairy cooperative movement in India.
• A brand name managed by Gujarat Co-operative Milk Marketing
Federation(GCMMF)
• Spurred the White Revolution of India, which has made India the largest
producer of milk and milk products in the world.
• Overseas markets - Mauritius, UAE, USA, Bangladesh, Australia, China,
Singapore, Hong Kong and a few South African countries
• Fresh plans of flooding the markets of Japan & Sri Lanka.
• Dr Verghese Kurien, former chairman of the GCMMF -the man behind
the success of Amul.
• Has a 15% market share in the Rs 15,000 crore milk category, and a 37%
share in the Rs 900 crore organized ice-cream segment.

3. Company Overview

4. The NDDB
• Operation flood(1970-96) –The signature program of NDDB
was based on Amul model.
• Aim –to scale up dairy production
• Received donation of milk powder and butter oil from
World food program and European Economic
Community(EEC).
• Both led to increased sales and spurred capital growth and
investment.
• By 2011 ,India became largest producer of milk(121.8mt)
• Availabilty of milk -280ml/person
• Mission milk-the next revolution

5. Business 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
VILLAGE LEVEL
200 members
Committee of 8-9 members
District Level
Board of Directors – 12
900 Members (approx)
State Federation
Members are chairpersons of district level Co-operative & Ex-official
members.
Representative from NDDB
Registrar of Co-operative of the state concerned

6. Distribution channel

7. Reasons for Success
Low Cost Strategy Robust Supply Chain
success
Strong
Distribution
Network Diverse Product Mix
Technology & e-initiatives

8. Moving Forward
• Commitment to make available to every corner of
the country.
Challenges
• Addressing future demand- with increasing
population and income, demand of milk will
increase more in future.
• Adressing animal husbandry–to address the lower
milk productivity(from the same animals).

9. • Three-pronged approach –targeting
breeding,feeding and disease management.
• Animal infertility(20-30%)-major problem.
• Infertility due to deficient feed and fodder.
• 20-60% lower milk productivity than global
average.
• Amul provides customised feed.
• Educate the farmers about efficient ways of
feeding cow.

10. • Doubling of fodder price due to changing crop
pattern, exports.
• Diseased cows-major problem
• Amul dispatched veterinarians to train farmers
about animal diseases.
Addressing the milk quality issue
• For ensuring good quality milk, mobile testing
vans are dispatched.
• Installation of bulk chillers in each village .
• Addressing the workforce issue

11. Export Status
• In FY 2013 Amul’s export increased by 47% to Rs. 1.4 billion to Rs. 950
million in 2013
• Dairy product represent 0.8% of total sales
• Government banned the export of milk powder to ensure domestic
supply
• It also include skimmed milk powder, whole milk powder, dairy whitener,
infant milk product & casein products
• Amul regularly export to US, Gulf countries, the Philippines, Japan, China
& Australia
• Amul insisted the Government to restrict the export of agri-crop residue,
which is used as a feed for livestock
• Cattle feed cost constitute 60% of price of milk
• In June 2013, Amul opened the manufacturing operations in the US
• It is expectd by Amul MD, that it will quadruple Amul’s US sales

12. Successful Product Strategy
1. Product Positioning Strategy-
 Low price Amul Ice - Creams made Kwality walls
life hell.
 Chocolate milk was launched ‘Amul Kool koko’
2. Product Re-Positioning Strategy-
 Jaldhara – Narmada Neer

13. Successful Product Strategy
3. Product Overlap Strategy –
 Amul Processed Cheese Vs Cheese Spread
 Nutramul Energy Drink Vs Amul Kool
4. Product Design Strategy –
 Use of Utterly – Butterly Girl since 1967
5. Product Elimination –
 Eliminated Jaldhara – bottled water

14. Successful Product Strategy
6. Diversification Strategy –
 Dairy Products
Eg: Fresh Milk, Milk Drinks & Desserts, Bread
Spreads, Cheese Products
 Non Dairy Products
Egg: Veg Oils , Snacks, Instant Food

15. Competitors

16. Mother Dairy
• Mother Dairy was set up in 1974 under the Operation Flood Programme
• A wholly owned company of the National Dairy Development Board (NDDB)
• Various Mother Dairy Products:

17. Supply Chain Management

18. Nestle
• Nestlé India’s first production facility, set up in 1961 at Moga (Punjab)
• After by its second plant, set up at Choladi (Tamil Nadu), in 1967.
• Consequently, Nestlé India set up factories in Nanjangud (Karnataka), in 1989.
•
• Samalkha (Haryana), in 1993. This was succeeded by the commissioning of two
more factories - at Ponda and Bicholim.
• Goa, in 1995 and 1997 respectively.
• The seventh factory was set up at Pantnagar, Uttarakhand, in 2006. The
8th Factory was set up at Tahliwal, Himachal Pradesh, in 2012.

19. Other MNCs

20. Conclusion
Infusion of FDI
Amul not comfortable with
supermarket
Don’t hurt to customer
Currently-
Organized sector-60%
Increasing of private players
Will gain higher profit & not serve
both. (Producers & consumers).
People don’t go
supermarket for a
packet of milk
Amul plan on
setting up around
100000 small shops
(Amul Preferred
outlets)

21. THANK YOU