Amul A Taste of India Introduction

The Anand Milk-producers Union Limited or AMUL which is a dairy cooperative movement in India was formed in in 1946 and managed by the Gujarat Cooperative Milk Marketing Federation (GCMMF) which is Indias largest food products marketing organization jointly owned by around 2.6 million milk producers in Gujarat . The word Amul comes from the Sanskrit word amoolya which means priceless. Amul triggered the White Revolution, which has made India the largest producer of milk in the world and has also established itself as the world's largest vegetarian cheese brand. Amul has a wide variety of brands under its umbrella which include milk, cheese, butter, ice-cream, ghee, curd, chocolate, cream and others which has had wide acceptance not only in India but also in countries like Mauritius, USA, UAE, Bangladesh, Australia, China etc. and also has plans to market its products in other Asian counties like Japan and Sri Lanka. AMUL has proved to be highly successful on all fronts, known to have one of the most complex supply chains in the world its success can be attributed largely to the way it functions. It has a very high collection rate of milk and better cattle management which in turn results in better milk yield. It keeps on increasing membership with more village societies ensuring cost to farmers and also high quality to customers at low prices. It has emerged from the Indian soil and it tries to remain Indian in every sense. With its roots firmly established in the domestic market it is now all set to make its mark in the global arena by expanding its reach with every year passing by. There is also ample scope that can

be gauged in the low priced segment and also other categories where consumers seem dissatisfied with the quality delivered vis a vis the price demanded for the offerings.

Current Market Position of Amul

A number of multinational companies entered the Indian market post liberalization of the dairy industry in 1991 some of which include the likes of Britannia, Le bon etc. Analysts feared that this cooperative with limited financial means and reach would not be able to compete with the might of these multinational companies and whether its strategy of low pricing would be relevant in the current scenario. Amul proved its detractors wrong and reinforced their ambitious growth plans. The vision of Amul was to develop rural India by
uplifting the farmers, empowering women and poor labourers, and in the process, improving society as a whole.

Amul has a 15% market share in the Rs. 15,000 crore milk category and a 40% share in the Rs. 900 crore ice-cream segment. It enjoys 90% market share in the Indian butter and ghee market and 80% in the cheese market. For other products like chocolate drinks it has a 85% market share, around 15% in the chocolate segment and 35% in the sweets category.

3 Cs
Company Largest milk brand in Asia More than 30 dairy brands Market leader in the ghee and butter segment Very strong supply chain Very good reputation Quality products with affordability

Competitor Competition From local brands like Mahananda, Vijay, Milma and other cooperative milk brands.

Multinationals like Britannia, Nestle, Mother Dairy And Kwality who have been aggressively marketing their products in the domestic market.

Customer Customers are extremely satisfied with the offerings Moved from loose milk to packaged milk. Variety of offerings to the domestic as well as the international market. Improved socio-economic conditions.

PEST Analysis
Political Since the budget range is decontrolled, no political effects are envisaged. Entry of new players into the market. Venturing into new international markets and the political changing political scenarios.

Economic Social Increase in per capita consumption in India annually. Changing consumption habits and practices. Increasing population of the country and urbanization. Increasing gifts culture, increase in demand, and increase in consumption of readymade food products. Lower cholesterol products, substitute demand and increasing awareness about consuming healthy food. Acceptance of products produced in India in international markets. Increasing per capita income resulting in higher disposable income. Growing middle class/urban population and increase in demand of readymade products. Low cost of production, better penetration. Low pricing of goods thereby increasing affordability. Economic growth of the country in GDP terms. Fluctuating inflation rates.

Technological Reinforcing technology to international levels. Introduction of new products into the market. Productivity improvement through automation. Incorporating latest packaging technologies as per international standards.