CHAPTER 1 INTRODUCTION

Diversification is a form of corporate strategy for company. It seeks increase

profitability through grater sales volume obtained from new product and
new market. Diversification can occur either at business unit level or at the
corporate level. At the business unit level it is most likely to expand into a
new segment of an industry that the business is already in. At the corporate
level it is generally very interesting entering a promising business outside of
the scope of the existing business unit.
Diversification strategy
Diversification is a company strategy wherein a company tries to increase
profitability through increased sales volume from new product and new
market. In laymens term diversification means venturing out into new
business new products or new market to increase profits. It is the form of
growth strategy involving a significant increase in the performance
objectives beyond past performance records, Diversification allows a
company to venture out in to new lines of business that are different from
the present operations. Companies employ different diversification strategies
to expand firms operations by adding market, products, service or stages of
production to the existing business.
Diversification in the form of growth strategy is viewed by many investors
as Bigger the better Higher sales volume is seen s a measure of
performance irrespective of profits margins increase in sales is always
welcomed. People often assume that if the sales increase the profits will
follow suit.

The concentric diversification is a strategy where a company adds a related

product or market to achieve a strategic fits. This allows the company to
achieve synergy making it possible for two or more parts of an organization
o achieve greater total effectiveness or profitability that what would have
been possible for single entity. This strategy may be employed to attain
financial synergy to let companies with stronger financial backing but
limited growth opportunities work with company that may not be financially
strong
But is having greater market potentials. Another advantage of this strategy is
that it opens ways to achieve management synergy, where management
experience and expertise it applied to different situations.
A conglomerate divecification takes place when a company diversifies into
business or markets that are not related to their present business or market
operations.Unde this Solution strategy may be achieved by combining
management expertise and financial resources, while the main objectives of
conglomerate diversification is to improves the profitability of the parent
company and to make little of no efforts in trying to achieve marketing or
production synergy.
Diversification Efforts may be either internal or external depending upon the
objectives of the company, internal diversification is a situation where a
company ventures in to a different but related bossiness line. It involves
increasing in the company product or market base. The external
diversification on the other hand is used to achieve similar results with a
difference that the line of business is drastically different and not related or
unrelated business line.
2

Expansion through Diversification

Diversification is a much used and much talked about set of strategies it
involves a substantial change in the business definition single or jointly in
terms of customer groups or alternately technologies of one or ore of a firms
business

there

are

two

categories

Concentric

and

conglomerate

Diversification.
Concentric Diversification:
When an organization takes up an activity in such a manner that is related to
the existing business definition of one or more of firms businesses either in
terms of group, customers functions or alternative technologies it is called
concentric diversification. Concentric diversification may be of three types:
Marketing related concentric diversification: when a similar types of product
is offered with a help of unrelated technology for e.g. a company in the
sewing machine business diversifies in to kitchen ware and household
appliances, which are sold to house wives through a chain of retail stores.
Technology related concentric diversification: when a new type of product
or service is provided with the help of related technology for e.g. a leasing
firm offering hire-purchase service to institutional customers also starts
consumers financing for purchase of durable not individual customers.
Marketing technology related concentric diversification: when a similar
types of product is provided with the help of related technology for e.g. a
rain coat manufacturer Makes other rubber based items, such as water proof
shoes and rubber gloves sold through the same retails outlets.

Conglomerate diversification: when an organization adopts a strategy which

require taking of those activities which are related to the existing business
definition of one or more of its business either in tern of their respective
customers group, customer functions or alternative technologies.
Goal of Diversification:
According to caloric and harvatopoulos (1988), there are two dimension of
rational for diversification. The first one relates to the nature of the strategic
objectives: Diversification may be defensive or offensive.
Defensive reasons may be spreading the risk of market contraction or being
forced to diversify when current product product or current market
orientation seems to provide
No further opportunities for growth. Offensive reasons may be conquering
new positions, taking opportunities that promise grater profitability than
expression opportunities or using retained cash that exceeds total expansion
needs.
The second dimension involves the expects of diversification:
Management may exact great economic value (growth, profitability) or first
and foremost great coherence and complementary to their current activates
(exploitation of know-how, more efficient use of available resources and
capacities).In addition, companies may also explore diversification just to
get a valuable comparison between this strategy and expansion.

RISKS
Diversification is the riskiest of strategies and requires the most careful
investigation. going into an unknown market with an unfamiliar product
offering means a lack of experience in new skills and techniques required
therefore therefore the company puts itself in a great uncertainity.Moreover
diversification might necessitates significant expanding to human and
financial resources which may distract focus, commitment and sustained
investment in the core industries.threfore a firm should choose this option
only when the current product or current market orientation does but offer
further opportunities for growth. In order to measure the chances of success
different tests can be done.

The attractiveness test: the industry that has been chosen has to be
either attractiveness or capable of being made attractive.
The cost-of-entry: the cost of entry must not capitalize all future
profits.
The better-off test: the unit must either gain competitive advantage
from its link with the corporation or vice versa.

CHAPTER : 2 AMUL PROFILE

Type
Founded
Headquarters
Gujarat Co-

Cooperative Industry Dairy/FMCG.

1946.
Anand, Gujarat, India Key people Chairman,
operative Milk Marketing Federation Ltd.

(GCMMF) .
Products

Amul milk, Ice-creams, ready made food

items.
Revenue
Employees

US$3.1 billion (201314.)

750 employees of Marketing Arm.

However, real pool consists of 3 million milk producer

members.
Website

www.amul.com.

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat,

India. The word amul is derived from the Sanskrit word amulya, meaning

invaluable. The co-operative is sometimes referred to as Anand Milk Union

Limited.
Formed in 1946, it is a brand managed by a cooperative body, the Gujarat
Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is
jointly owned by 3 million milk producers in Gujarat.

Amul spurred India's White Revolution, which made the country the world's
largest producer of milk and milk products. In the process Amul became the
largest food brand in India and has ventured into markets overseas.
Vision
Liberate our farmers from economic oppression and lead them to prosperity.
Mission
Dairy cooperatives of Gujarat turnover of Rs. 27000 crores by the year
2020.
Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30
years (19732006), is credited with the success of Amul.

Gujarat Cooperative Milk Marketing Federation Ltd.

(GCMMF), is India's largest food product marketing organization with
annual turnover (2012-13) US$ 2.54 billion. Its daily milk procurement is
approx 13 million lit per day from 16914 village milk cooperative
societies, 17 member unions covering 24 districts, and 3.18 million milk
producer members.
It is the Apex organization of the Dairy Cooperatives of Gujarat, popularly
known as 'AMUL', which aims to provide remunerative returns to the
farmers and also serve the interest of consumers by providing quality
products which are good value for money. Its success has not only been
emulated in India but serves as a model for rest of the World. It is exclusive
marketing organization of 'Amul' and 'Sagar' branded products. It operates
through 48 Sales Offices and has a dealer network of 5000 dealers and 10
lakh retailers, one of the largest such networks in India. Its product range
comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza
cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc
GCMMF is India's largest exporter of Dairy Products. It has been accorded a
"Trading House" status. Many of our products are available in USA, Gulf
Countries, Singapore, The Philippines, Japan, China and Australia. GCMMF
has received the APEDA Award from Government of India for Excellence in
Dairy Product Exports for the last 13 years. For the year 2009-10, GCMMF
8

has been awarded "Golden Trophy" for its outstanding export performance
and contribution in dairy products sector by APEDA.
For its consistent adherence to quality, customer focus and dependability,
GCMMF has received numerous awards and accolades over the years. It
received the Rajiv Gandhi National Quality Award in1999 in Best of All
Category. In 2002 GCMMF bagged India's Most Respected Company Award
instituted by Business World. In 2003, it was awarded the The IMC
Ramkrishna Bajaj National Quality Award - 2003 for adopting noteworthy
quality management practices for logistics and procurement. GCMMF is the
first and only Indian organization to win topmost International Dairy
Federation Marketing Award for probiotic ice cream launch in 2007.
The Amul brand is not only a product, but also a movement. It is in one way,
the representation of the economic freedom of farmers. It has given farmers
the courage to dream. To hope. To live.
GCMMF - An Overview
Year of Establishment

1973
17 District Cooperative Milk Producers' Unions

Members

(16 Members & 1 Nominal Members)

No. of Producer Members 3.18 Million

No. of Village Societies
Total

Milk

handling

capacity per day

Milk Collection (Total 2012-13)

16,914
16.8 Million litres per day
4.66 billion litres

Milk

collection

(Daily

Average 2012-13)
Cattlefeed

manufacturing

Capacity

12.7 million litres

5890 Mts. per day

Sales Turnover -(2012-13) Rs. 13735 Crores (US $ 2.54 Billion)

CRISIL Rating for GCMMF
Our Member Unions
1. Kaira District Cooperative Milk Producers' Union Ltd., Anand
2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana
3. Sabarkantha District Cooperative Milk Producers' Union Ltd.,
Himatnagar
4. Banaskantha District Cooperative Milk Producers' Union Ltd.,
Palanpur
5. Surat District Cooperative Milk Producers' Union Ltd., Surat
6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara
7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra
8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad
9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch
10. Ahmedabad District Cooperative Milk Producers' Union Ltd.,
Ahmedabad
11.Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot
12.Gandhinagar District Cooperative Milk Producers' Union Ltd.,
Gandhinagar
13.Surendranagar District Cooperative Milk Producers' Union Ltd.,
Surendranag
14.Amreli District Cooperative Milk Producers Union Ltd., Amreli
15.Bhavnagar District Cooperative Milk Producers Union Ltd.,
Bhavnagar
16.Kutch District Cooperative Milk Producers' Union Ltd., Anjar 15.

10

Sales

Rs

US

Turnover
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13

(million)
11140
13790
15540
18840
22192
22185
22588
23365
27457
28941
29225
37736
42778
52554
67113
80053
97742
116680
137350

million)
355
400
450
455
493
493
500
500
575
616
672
850
1050
1325
1504
1700
2172
2500
2540

(in

The Product Range

Breadspreads
Cheese Range

Amul Butter, Amul Lite, Delicious Table Margarine

Amul Pasteurized Processed Cheddar Cheese, Amul
Processed Cheese Spread, Amul Pizza (Mozarella)
Cheese,Amul Emmental Cheese, Amul Gouda Cheese,
Amul Malai Paneer (cottage cheese), Utterly Delicious
11

Pizza
Amul Gold Full Cream Milk 6% fat, Amul Shakti
Fresh Milk

Standardized Milk 4.5% Fat, Amul Taaza Toned Milk

3% fat,Amul Slim & Trim, Amul Cow Milk
Amul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk,

UHT Milk Range Amul Taaza 1.5% fat Milk, Amul Lite Slim-n-Trim
Milk, Amul Fresh Cream
Amul Full Cream Milk Powder, Amulya Dairy
Milk Powders

Whitener, Sagar Skimmed Milk Powder, Amulspray

Infant Milk Food, Sagar Tea and Coffee Whitener
Amul Kool Flavoured Milk, Amul Kool Cafe, Amul

Milk Drink

Kool Koko,Amul Kool Millk Shaake, Amul Kool

Chocolate Milk,Nutramul Energy Drink

Health Drink
Stamina Instant Energy Drink
Brown Beverage Nutramul Malted Milk Food
Amul Masti Dahi (fresh curd), Amul Masti Spiced
Curd Products
Butter Milk,Amul Lassee, Amul Flaavyo Yoghurt
Pure Ghee
Amul Pure Ghee, Sagar Pure Ghee
Sweetened
Amul Mithaimate
Condensed Milk
Mithaee
Range Amul Shrikhand, Amul Mithaee Gulabjamuns, Amul
(Ethnic Sweets) Basundi,Avsar Ladoos
Ice-cream
Sundae Range, probiotic,,sugarfree and probiotic
Chocolate
& Amul Milk Chocolate, Amul Fruit & Nut Chocolate,
Confectionery

Amul Chocozoo, Amul Bindass, Amul Fundoo

The Birth of Amul

It all began when milk became a symbol of protest

12

 Founded in 1946 to stop the exploitation by middlemen

Inspired by the freedom movement
The seeds of this unusual saga were sown more than 65 years back in Anand,
a small town in the state of Gujarat in western India. The exploitative trade
practices followed by the local trade cartel triggered off the cooperative
movement. Angered by unfair and manipulative practices followed by the
trade, the farmers of the district approached the great Indian patriot Sardar
Vallabhbhai Patel for a solution. He advised them to get rid of middlemen
and form their own co-operative, which would have procurement, processing
and marketing under their control.
In 1946, the farmers of this area went on a milk strike refusing to be cowed
down by the cartel. Under the inspiration of Sardar Patel, and the guidance
of leaders like Morarji Desai and Tribhuvandas Patel, they formed their own
cooperative in 1946.
This co-operative, the Kaira District Co-operative Milk Producers Union
Ltd. began with just two village dairy co-operative societies and 247 litres of
milk and is today better known as Amul Dairy. Amul grew from strength to
strength thanks to the inspired leadership of Tribhuvandas Patel, the founder
Chairman and the committed professionalism of Dr Verghese Kurien, who
was entrusted the task of running the dairy from 1950.
The then Prime Minister of India, Lal Bahadur Shastri decided that the same
approach should become the basis of a National Dairy Development policy.
He understood that the success of Amul could be attributed to four important
factors. The farmers owned the dairy, their elected representatives managed
13

the village societies and the district union, A they employed professionals to
operate the dairy and manage its business. Most importantly, the cooperatives were sensitive to the needs of farmers and responsive to their
demands.
At his instance in 1965 the National Dairy Development Board was set up
with the basic objective of replicating the Amul model. Dr. Kurien was
chosen to head the institution as its Chairman and asked to replicate this
model throughout the country.
History
Over six decades ago the life of a farmer in Kaira was very much like that of
farmers anywhere else in India. His income was derived almost entirely
from seasonal crops. Many poor farmers faced starvation during off-seasons.
Their income from milch buffaloes was undependable. The milk marketing
system was controlled by contractors and middlemen. As milk is perishable,
farmers were compelled to sell their milk for whatever they were offered.
Often they had to sell cream and ghee at a throwaway price.

14

They were in general illiterate. But they could see that the system under
which contractors could buy their produce at a low price and arrange to sell
it at huge profits was just not fair. This became more noticeable when the
Government of Bombay started the Bombay Milk Scheme in 1945. Milk had
to be transported 427 kilometers, from Anand to Bombay. This could be
done only if milk was pasteurized in Anand.
After preliminary trials, the Government of Bombay entered into an
agreement with Polsons Limited to supply milk from Anand to Bombay on a
regular basis. The arrangement was highly satisfactory to all concerned
except the farmers. The Government found it profitable; Polsons kept a good
margin. Milk contractors took the biggest cut. No one had taken the trouble
to fix the price of milk to be paid to the producers. Thus under the Bombay
Milk Scheme the farmers of Kaira District were no better off ever before.
They were still at the mercy of milk contractors. They had to sell their milk
at a price the contractors fixed. The discontent of the farmers grew. They
went in deputation to Sardar Patel, who had advocated farmers cooperatives as early as 1942
Sardar Patel reiterated his advice that they should market their milk through
a co-operative society of their own. This co-operative should have its own
pasteurization plant. His advice was that the farmers should demand
permission to set up such a co-operative. If their demand was rejected, they
should refuse to sell their milk to middlemen.
Sardar Patel pointed out that in undertaking such a strike there should be
some losses to the farmers as they would not be able to sell their milk for

15

some time. If they were prepared to put up with the loss, he was prepared to
lead them. The farmers deputation readily accepted his proposal.
Sardar then sent his trusted deputy, Mr. Morarjibhai Desai, to Kaira District
to organize milk co-operative and a milk strike if necessary. Mr. Desai held
a meeting in Samarkha village on January 4, 1946. It was resolved that milk
producers co-operative societies should be organized in each village of
Kaira District to collect milk from their member-farmers. All the milk
societies would federate into a Union which would own milk processing
facilities. The Government should undertake to buy milk from the Union. If
this wasnt done, the farmers would refuse to sell milk to any milk
contractor in Kaira District.
The Government turned down the demand. The farmers called a milk
strike. It lasted 15 days. Not a drop of milk was sold to the milk merchants.
No milk reached Bombay from Anand, and the Bombay Milk Scheme
almost collapsed. After 15 days the milk commissioner of Bombay, an
Englishman, and his deputy visited Anand, assessed the situation and
accepted the farmers demand.
This marked the beginning of the Kaira District Co-operative Milk
Producers Union Limited, Anand. It was formally registered on December
14, 1946. Its objective was to provide proper marketing facilities for the
milk producers of the district. The Union began pasteurizing milk in June
1948, for the Bombay Milk Scheme just a handful of farmers in two
village co-operative societies producing about 250 liters a day.
An assured market proved a great incentive to the milk producers in the
district. By the end of 1948, 432 farmers had joined village societies, and the
16

quantity of milk handled by the Union had increased to 5000 liters a day. In
the early stages, rapid growth brought in its wake serious problems. Their
solution provided the stimulus for further growth. For example, as the cooperative movement spread in the district, it was found that the Bombay
Milk Scheme could not absorb the extra milk collected by the Union in
winter, when buffaloes yielded an average of 2.5 times their summer yield.
Thus by 1953, the farmer-members had no regular market for the extra milk
produced in winter. They were again forced to sell a large surplus at low rate
to middlemen.
The only remedy was to set up a plant to process the extra milk into products
like butter and milk powder. The logic of this step was readily accepted by
the Government of Bombay and the Government of India, except for a few
doubting Thomases. The government of India helped the Union to get
financial help from UNICEF and assistance from the Government of New
Zealand under the Colombo Plan. Technical aid was provided by F.A.O. A
Rs.50 lakh factory to process milk powder and butter was blueprinted. Its
foundation stone was laid by the then President of India the late Dr. Rajendra
Prasad on November 15, 1954. The project was completed by October 31,
1955, on which day the late Pandit Jawaharlal Nehru, the then Prime
Minister of India, declared it open. The new dairy provided a further fillip to
the co-operative movement among milk producers. The union was thus
enabled to organize more village co-operative societies and to handle more
and more milk each year. This event also brought a breakthrough in dairy
technology as the products were made processing buffalo milk for the first
time in the world. Kaira Union introduced the brand Amul for marketing
its product range. The word Amul is derived from Sanskrit word Amulya
17

which means priceless or precious. In the subsequent years Amul made

cheese and baby food on a large commercial scale again processing buffalo
milk creating a history in the world.
1964 was the turning point in the history of dairy development programme
in India. Late Shri Lal Bahadur Shastri, the then Prime Minister of India who
visited Anand on 31s October for inauguration of Amuls Cattle Feed Plant,
having spent a night with farmers of Kaira and experiencing the success
wished and expressed to Mr Kurien, then the General Manager of Amul that
replicating Amul model through out our country will bring a great change in
the socio-economic conditions of the people. In order to bring this dream
into reality, 1965 The National Dairy Development Board (NDDB) was
established at Anand and by 1969-70 NDDB came out with the dairy
development programme for India popularly known as Operation Flood or
White Revolution. The Operation Flood programme, even today, stands to
be the largest dairy development programme ever drawn in the world. This
saw Amul as model and this model is often referred in the history of White
Revolution as Anand Pattern. Replication of Anand Pattern has helped
India to emerge as the largest milk producing nation in the world.
Amul Butter Girl
Edited from an article by Mini Varma published in The Asian Age on March
3,

1996

The moppet who put Amul on India's breakfast table 50 years after it was
first launched, Amul's sale figures have jumped from 1000 tonnes a year in
1966 to over 25,000 tonnes a year in 1997. No other brand comes even close

18

to it. All because a thumb-sized girl climbed on to the hoardings and put a
spell on the masses.

Amul Butter Girl

Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28year-old housewife is out in the balcony drying clothes. From her second
floor flat she can see her neighbors on the road. There are other people too.
The crowd seems to be growing larger by the minute. Unable to curb her
curiosity Sheela Mane hurries down to see what all the commotion is about.
She expects the worst but can see no signs of an accident. It is her four-yearold who draws her attention to the hoarding that has come up overnight. "It
was the first Amul hoarding that was put up in Mumbai," recalls Sheela
Mane. "People loved it. I remember it was our favorite topic of discussion
for the next one week! Everywhere we went somehow or the other the
campaign always seemed to crop up in our conversation."
Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at
you, from strategically placed hoardings at many traffic lights. She is the
Amul moppet everyone loves to love (including prickly votaries of the Shiv
Sena and BJP). How often have we stopped, looked, chuckled at the Amul
hoarding that casts her sometime as the coy, shy Madhuri, a bold sensuous
19

Urmila or simply as herself, dressed in her little polka dotted dress and a red
and white bow, holding out her favorites packet of butter.
For 30 odd years the Utterly Butterly girl has managed to keep her fan
following intact. So much so that the ads are now ready to enter the
Guinness Book of World Records for being the longest running campaign
ever. The ultimate compliment to the butter came when a British company
launched

butter

and

called

it

Utterly

Butterly,

last

year.

From the Sixties to the Nineties, the Amul ads have come a long way. While
most people agree that the Amul ads were at their peak in the Eighties they
still maintain that the Amul ads continue to tease a laughter out of them.
Where does Amul's magic actually lie? Many believe that the charm lies in
the catchy lines. That we laugh because the humors is what anybody would
enjoy. They don't pander to your nationality or certain sentiments. It is pure
and simple, everyday fun.

20

CHAPTER 3 : AMUL - DIVERSIFIED PORTFOLIO

AMUL MILK :
Product Features
Amul Milk is the most hygenic liquid milk available in the market.
It is pasteurised in state-of-the-art processing plants and pouch-packed
to make it conveniently available to consumers.
Product Application
Direct consumption, Making of : Tea or Coffee, Sweets, Khoa, Curd,
Buttermilk, Ghee
Available in (Segments/Markets)
Gujarat, Delhi & NCR, Mumbai, Kolkata, Kanpur, Lucknow, Allahabad,
Agra, Meerut, Aligarh, Asansol, Nagpur, Raipur, Indore, Bhopal, Jaipur,
Ajmer, Pushkar, Udaipur, Jodhpur, Pali , Pune, Nasik

21

Amul Butter
Product Features
Amul is synonymous with Butter in India.
Several Generation of Indian consumers have grown up with the taste
of Amul Butter for the six decades.
Utterly Butterly Delicious taste of Amul Butter is must on breakfast
table of almost every Indian Household.
Utterly Cute Amul Buter Girl has been a part of Indian Consumers
since 1950.
Amul Butter topical is recognized as one of the longest running
advertisement campaign in the world.

22

Product Application
Spread, OnBread, Parantha, Roti, Nans, Sandwitches.
Topping : Pav Bhaji, Dals, Soups, Salads, Dal, Rice.
Ingredient : Biscuits, Cakes, Breads.
Cooking Medium : Butter Paneer Masala, Butter Corn Masala and
thousands of delightful recipes.
Available in (Segments/Markets)
Amul Butter is available in India as well as other country like UAE /
Bahrain / Kuwait/ Oman / Hong Kong / Shi Lanka / USA / Malaysia /
Singapore / Qatar/ New ZealandAlso Amul Butter is available in segments
like Kirana Store / Modern Format store / Amul Parlors / Hotel & Restaurant
segment / Railway and Flight Kitchen etc.

Amul Cheese
Product Features
Wholesome cheese.
Good source of Calcium and milk Proteins.
23

Product Application
It is a popular cheese for snacking on its own as chiplets and slices.
It adds flavor in melted dishes such as soup and sauce recipes.
A few dishes which use processed cheese are mashed potatoes,
macaroni.
Cheese tastes superb between toasted wheat breads along with
cucumber and tomato slices.
Processed cheese can be added to omelettes, pizza, souffles, au
gratins,etc.
The cheese balls are also popular application.
The Cheese makes a delightful pairing with fruits such as apples,
pears.
Available in (Segments/Markets)
In Top Outlets/APOs/MFS across Major cities and Towns in India and some
countries abroad as well.

24

Amul Kool
Product Features
Amul Kool Rose is refreshing milk with flavor of Rose.
It is an easy to use delicious drink that refreshes you immediately with
goodness of milk.
Available in easy to use Glass Bottles .
Product Application
To be taken directly on move (small packs) or at home, parties, picnics etc.
(family

pack)

Taste best when Chilled.

Available in (Segments/Markets)
Amul Kool Rose Eiilachi,mango these flavours is available all over India.

25

Amul Ice Cream

Product Features
Made from Fresh Milk (Real Milk, Real Ice cream): No added
vegetable oil, hence no Frozen Dessert.
No Differentiation in Quality Standards of Consumer & Catering/
Institutional Packs
Best Ingredients: Fresh milk, superior fruits & nuts.
Manufacturing Facility: Made in ISO & HACCP certified state of
the art plants with stringent hygienic standards to ensure food safety.

26

 Prolife & SUGAR FREE Probiotic: The first company in India to

introduce probiotics in ice cream (IDF Award for Best Nutrimarketing
Category, Oct '07) & SUGAR FREE Probiotic products.
Product Application
Individual consumption (impulse), Take home, Catering at parties, marriages
etc. celebration and Recipe preparation for sundaes, shakes, etc.
Available in (Segments/Markets)
More than 800 cities across India at Amul Preferred Outlets, Amul Scooping
Parlours, retail shops, vending push carts, hotels, restaurants, canteens,
caterers etc.

Amul Flaavyo
Product Features
Tasty, Healthy and refreshing treat for all age people.
Contains live probiotic bacteria which helps digestion and improve
immunity.
27

 Contains added real fruit pieces and essential vitamins.

Available in two flavours namely Mango, Strawberry
Product Application
As a healthy dessert

Amul Malai Paneer

Product Features
Most convenient form of paneer
Rich in Proteins
Pure and Hygienic
Having high fat and low moisture compared to loose paneer available
in market.

28

 Paneer having smooth, uniform texture and softness.

Product Application
Culinary preparations.
Available in (Segments/Markets)
All India
Amul Masti Dahi
Product Features
Dahi or Curd plays a key role in the Indian diet and in preparation of
delicious dishes like Dahi Wada, Dahi BatataPuri, Dahi Rice, Dahi
Idli, Dahi Raita, Kadhi and Muglai Food.
It is ideal meal accompaniment and is delicious as well as nutritious
by itself too. It is also used to marinate veg. and non-veg. dishes.
Dahi is well known for its nutritive values.
The answer to making great tasting dishes is fresh, creamy and good
quality dahi - "Amul Masti Dahi."
"AMUL MASTI" Dahi:
Making fresh Dahi is cumbersome, time consuming chore and can
cause great embarrassment to the house wife when it is not prepared
properly.
29

 Dahi prepared by local shop owners or at home varies in terms of

quality & culture used.
Amul Dahi is prepared in controlled conditions i.e. maintaining proper
temperatures to grow beneficial bacteria and to avoid growth of
harmful bacteria.
It is difficult to maintain controlled conditions at Home or at local
shop level.
Many times the quality of Dahi available from the local market is far
from satisfactory and often found to be contaminated as the culture
used do not contain 100% beneficial bacteria.
AMUL Masti Dahi is a pasteurized product i.e. free from unwanted
bacteria.
AMUL Masti Dahi is prepared with selected culture having pro health
bacteria. The culture is developed after in depth research.
Superiority of Amul Masti Dahi:
Amul Masti Dahi is prepared from purest, freshest pasteurized milk
and it is free from added sugar.
What's more, Amul Masti Dahi doesn't contain any preservatives.
Amul Masti Dahi is prepared from certified and selected bacterial
culture which gives excellent curd.

30

 Amul Masti Dahi is hygienically processed and packed in a reusable

plastic tub as well as convenient pouch and thus free from possible
adulteration.
Amul Masti Dahi is high on nutrition and taste.
Thick, creamy Amul Masti Dahi has a rich, glossy texture. Food tastes
even more delicious at the snap of your fingers.
The live microflora in Amul Masti Dahi helps the digestive system
and enhances the immune system's ability to fight harmful organisms.
It improves the body's natural defenses and helps keep the body
functioning at its best.
Amul Masti Dahi having a probiotic nature contains live bacterial
culture which increases milk digestibility, quickens recovery from
certain types of diarrhea, skin infections, enhances immune function
of the body and encourages the body to function in the best possible
and most natural way.
Amul Masti Dahi contains all goodness of milk such as proteins,
carbohydrates, fats, calcium, phosphorous, magnesium, zinc, iodine
and vitamins.
Lactic acid in Amul Masti Dahi is helpful in absorption and utilization
of calcium.
Amul Masti Dahi is a quality product from the house of "Amul" at
affordable price which gives "value for money".
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Product Application
Direct consumption

Making of :Lassee, Dahi Wada, Dahi BatataPuri, Dahi Rice, Dahi Idli,
Dahi Raita, Kadhi and Muglai Food.
To marinate veg. and non-veg. dishes
Available in (Segments/Markets)
Amul Masti Dahi is widely available in: Gujarat, Delhi & NCR, Western UP,
Mumbai, Pune, Nagpur, Raipur, Udaipur, Jodhpur, Jaipur, Indore, Bhopal,
Chennai, Banglore

Amul Ghee
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Product Features
Ghee is very healthy for our Body.
1 spoon a day of Ghee keeps you fit & strong in this fast life where we
need to be active & energetic always.
Ghee can be consumed for better digestion
Ghee stimulates muscle movements, strengthen the sense organ,
nourish the skin and improves complexion
Ghee is good source of energy and provides vitality to human body.
Amul Ghee is made from fresh cream and it has typical rich aroma
and granular texture.
Amul Ghee is an ethnic product made by dairies with decades of
experience, and rich source of Vitamin A,D,E and K.
Product Application
Spread : Parantha, Roti etc..
Ideal for Cooking, Garnishing and Making Sweets.
Available in (Segments/Markets)
Amul Ghee is available in India as well as other country like UAE /
Bahrain / Oman / Hong Kong / Sri Lanka / USA / Singapore / Qatar/
Australia / Saudi Arab / Japan /Hong Kong etc.,Amul Ghee is available in
33

segments like Kirana Store / Modern Format store / Amul Parlors / Hotel &
Restaurant segment / Railway Parlour.
AMULYA
Product Features
Amulya, a premium Dairy Whitener from the house of Amul is the
favourite choice of all Tea and Coffee lovers across India.
It has the highest milk fat content among all the Dairy Whitener
brands in India that makes it the creamiest dairy whitener.
It is available in attractive packaging, wide range of pack sizes and at
affordable prices.
Product Application
Ideal for preparing Tea, Coffee, Sweets, Curd, Cakes and Other Milk Based
Products.
On reconstitution as per directions, 1 Kg of Amulya provides 8 litres of
sweetened toned milk mix.
Available in (Segments/Markets)
All Over India in Normal Trade and Modern Format Stores.

34

Nutramul
Product Features
Nutramul is a nutritious and healthy drink which provides
nourishment to the body in the form of Vitamins, Proteins,
Carbohydrates and Minerals.
Nutramul is a Brown Beverage that falls under the Health Food Drink
category.
Product Application
It's a milk additive, which means it can be consumed by adding directly to
milk. It is easy to make and tasty to drink and is suitable for people across
age groups, particularly kids who require adequate nourishment for proper
growth.
Available in (Segments/Markets)
All Over India in Normal Trade and Modern Format Stores.
35

Nutramul
Product Features
Nutramul is a nutritious and healthy drink which provides
nourishment to the body in the form of Vitamins, Proteins,
Carbohydrates and Minerals.
Nutramul is a Brown Beverage that falls under the Health Food Drink
category.
Product Application
It's a milk additive, which means it can be consumed by adding directly to
milk. It is easy to make and tasty to drink and is suitable for people across
age groups, particularly kids who require adequate nourishment for proper
growth.
Available in (Segments/Markets)
All Over India in Normal Trade and Modern Format Stores.
Amul Shrikhand
Product Features
Prepared from fresh curd, cream, Sugar and pasteurized which gives
Amul Shrikhand Smooth, Tastier, Richer and uniform in texture.

36

 Loose Shrikhand which is manufactured and marketed by Mithaiwalas

/ Halwai, who practically does not care for quality assurance and does
not maintain hygienic standards; while Amul Shrikhand is made with
the highest standard of quality and hygiene and is available at most
reasonable price.
Tastier, Richer, Better Shrikhand, made out of quality ingredients.
Pasteurised before packing to ensure freedom from disease causing
bacteria.
Hygienic, fully automated production process giving Shrikhand that is
untouched by human hand.
Highest standard of quality and hygiene ensured at the most state of
the art plant at Sugam Dairy, Baroda & Sabar Dairy, Himatnagar.
Amul Shrikhand is available in convenient to use cups as it is packed
in four consumer pack-sizes. Consumer has freedom to choose from
four pack-sizes while on tour or on picnic or any time at home to
serve the guests on special occasions.
Consistent quality provided with assurance of Amul brand name.
Made without addition of any artificial flavour or synthetic colour or
any other chemical preservatives.
Product Application

37

Gujarati and Maharashtrian people love Shrikhand as a part of their regular

as well as festive meal along with Roti / Puri. Rests of the Indians prefer
Shrikhand for the change of taste purpose or as sweet dessert.
Available in (Segments/Markets)
All Major retail outlets in Gujarat & Maharashtra as well as in all Amul
Preferred Outlets besides All Modern Format stores in rest of the states. Also
available in all Gulf countries, USA, Singapore, Australia, NZ & Kenya.

Amul Mithai Mate

Product Features
Amul Mithai Mate is much more creamier than competitors available
in market
Made of Pure Milk FAT
Avaiable in very convenient easy to open pack
38

 Can be made several milk based desert in minutes

Product Application
Can be used to prepare: Gajar ka Halwa, Kheer, Narial ke laddoo,
Rasmalai, Icecream, Chocolate, Baked Products, Pies, Sauces, Cakes,
Candies,, Toppings and Caramel etc.,
As a ready health food, in relief works, in case of flood, earth quake
or any natural calamity.
As a health food in mid day meal system for feeding of the school
children.
For whitening coffee and tea directly.
Available in (Segments/Markets)
Amul Mithai Mate is available in India as well as other countries like UAE /
Bahrain / Shi Lanka / USA / Singapore / Qatar ,Also Amul Mithai Mate 400
g Tin is available in segments like Kirana Store / Modern Format store /
Amul Parlors / Hotel & Restaurant segment / Bakery etc.

Amul Cooking Chocolate

39

Product Features
Chocolates are made through refiner from world's No. 1 Carle &
Montanari to give a smooth texture.
Product Application
Bakery, Ice cream, home made chocolates.
Available in (Segments/Markets)
Available with select Amul dealers.
Amul Fresh Cream
Product Features
Amul Fresh Cream has been processed to give smooth, consistency
and makes mouth watering preparations.
Amul fresh cream sterilized at high temperature and packed
aseptically to give safe, rich cream which stays fresh until opened.
Made of fresh & Pure Milk cream
Available in two convenient packs
No preservative added.

40

Product Application
Amul Fresh cream is used to prepare fruit salad.
Can be used to prepare Punjabi dishes.
Used for preparing sweet meals.
For making Ice-creams.
Used in tea and Coffee.
Available in (Segments/Markets)
Amul Fresh Cream is available in India as well as other countries like UAE /
Bahrain / Singapore / Qatar. Amul Fresh Cream is available in segments like
Kirana Store / Modern Format store / Amul Parlors / Hotel & Restaurant
segment / Caterer, etc.

Amul Pouch Butter Milk

Product Features
It is produced in very hygienic and clean atmosphere.

41

 Scientific bacterial culture in Amul Buttermilk improves digestion.

It is conventionally packed in pouches and easily available at Amul
Milk outlets spread all over major cities of India.
Buttermilk is traditionally known as "Chhash" (Gujarat & MP),
"Mattha" (UP & Delhi), "Tak" (Maharastra), "Ghol" (Bengal).
Product Application
Take a glass full in early morning in place of Tea, Amul Buttermilk will
improve the digestive function. You can prepare Bean Kadhi from Amul
buttermilk.
Available in (Segments/Markets)
Available with select Amul dealers.

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CHAPTER 4 : EVALUATION OF AMUL DIVERSIFICATION

STRATEGY
Diversification strategies are used to expand firms' operations by adding
markets, products, services, or stages of production to the existing business.
The purpose of diversification is to allow the company to enter lines of
business that are different from current operations. When the new venture is
strategically related to the existing

lines of business, it is called concentric

diversification. Conglomerate diversification occurs when there is no

common thread of strategic fit or relationship between the new and oldlines
of business; the new and old businesses are unrelated.
Amul Model
The Amul Model is a three-tier cooperative structure. This structure consists
of a dairy cooperative society at the village level affiliated to a milk union at
the district level which in turn is federated into a milk federation at the state
level. Milk collection is done at the village dairy society, milk procurement
and processing at the District Milk Union and milk and milk products
marketing at the state milk federation. The structure was evolved at Amul in
Gujarat and thereafter replicated all over the country under the Operation
Flood programme. It is known as the Amul Model or Anand Pattern of
dairy cooperatives.
The main functions of the VDCS are:

43

 Collection of surplus milk from the producers of the village and

payment based on quality and quantity,
Providing support services to the members like veterinary first aid,
artificial insemination services, cattle-feed sales, mineral mixture
sales, fodder and fodder seed sales, conducting training on animal
husbandry and dairying,
Selling liquid milk for local consumers of the village,
Supplying milk to the District Milk Union.

.
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

44

 Milk Producers (farmers) control procurement, processing and

marketing
Professional management

The Amul model has helped India to emerge as the largest milk producer in
the world. More than 15 million milk producers pour their milk in 1,44,246
dairy cooperative societies across the country. Their milk is processed in 177
District Co-operative Unions and marketed by 22 State Marketing
Federations, ensuring a better life for millions.

45

46

CHAPTER 5 : CASE STUDY

Amul's Diversification Strategy: A Pizza for Rs 20!

In early 2001, Gujarat Cooperative Milk Marketing Federation (GCMMF)

planned to leverage its brand equity and distribution network to turn Amul
into India's biggest food brand. Verghese Kurien, Chairman of GCMMF,
set a sales target of Rs.10 bn by 2006 as against sales of Rs 2.3 bn in 2001.
In 2001, GCMMF entered the fast food market in India with the launch of
vegetable pizzas under the brand name SnowCap in Ahmedabad, Gujarat.
GCMMF was also planning to launch its pizzas in other western Indian
cities like Mumbai, Surat, and Baroda.

Depending on the response in these cities, GCMMF would decide to

introduce its pizzas in other cities in India. The pizzas were offered in four

47

flavours: plain tomato-onion-capsicum, fruit pizza (pineapple-topped),

mushroom and 'Jain pizzas' (pizzas without onion or garlic). GCMMF
launched the pizzas in the Rs.20-25 price range. The existing players in the
pizza market, like Domino's, Pizza Hut and Nirula's offered pizzas at
nothing less than Rs.39. (Refer Exhibit I). Analysts felt that GCMMF's
move would force the existing players to reduce their prices in the long
run.
GCMMF planned to open 3,000 pizza retail franchise outlets all over the
country by 2005. The pizzas would be made at the retail outlets. The
technical training and the recipe for the pizza would be provided by
GCMMF. It would also negotiate with bulk suppliers of vegetables to get
these at wholesale rates. These would be provided to the retailers.
The main cost component of the pizza is the mozarella cheese. GCMMF
would offer the cheese at a bulk rate of Rs.140 per kg, compared to the
market price of Rs 146 per kg, thus saving the retailers Rs.6 per kg.
GCMMF on its part would have a ready market for its cheese products.
Ready To eat Pizza was invented in 2001.
The initial Price For Amul Pizza is Rs.20/ For Pizza Amul conducted Teach and Treat classes, In over 15,000
classes,Amultought house wives How to make pizzas?.
It was Project to test and create a market for low priced pizza. As
other pizza vendors like dominoz,Pizza hut charging more than 50/-.
In Delhi alone, its 96 Franchisee used to sell 50 pizzas a day on week
days.
48

 Amul planed to sel 3 lack Pizza But Amul failed to sell as on

following poins :

Problems :
i.
ii.
iii.

Competitors tastes
Less advertisementPackaging of the Pizzas
Amul was not fast enough to see the changing

iv.

trends and accordingly introduce the product

Amuls Pizzas were not up to the quality levels

v.

defined by its all the other products

The Value Proposition promised by Amul was not
delivered.

Solutions :
i.
ii.
iii.
iv.
v.
vi.
vii.

Relunch strategy for Amul Pizzas

Proper SWOT analysis
Branding
Positioning
Consumer market and buyer behavior.
Build on customer satisfaction value and retention.
Introduce product name with TAVA FRESH.

Amul's Diversification Strategy : AMUL CHOCOLATE

Chocolates are made through refiner from world's No. 1 Carle & Montanari
to give a smooth texture.

49

Problems :
i.
ii.
iii.
iv.
v.

10% people have not tasted Amul Chocolate.

Lake of Awareness in consumers
Lack of Advertisement
Amul is not using any brand ambassador.
Lack of Sales Promotional Activities

Solutions :
i.
ii.
iii.
iv.
v.

Company should use brand ambassador .

Amul should give local advertisements
Try to change perception of people.
New attractive packing for chocolate
Introduction of sales promotion schemes

vi.

(like discounts, coupons, contest, free gifts etc.)

appointing Ad agency

SWOT ANALYSIS :

50

Strengths

Weakness

Largets food brand in India

Risk of highly complex supply

chain
High quality,low price

Strong dependence on poor

infrastructure
World largest pouched milk brand

Allince with third party

Highly Diverse portfolio mix

51

Robust Distribution Service

Opportunities

Threats

Penetrate international market

Compititors-Hindustan

lever, Nestle
Diversify product prortfolio

completion For butter

from MNC
New Product development

Growing price of the milk

product

52

AMUL PARLOUR :

53

WHAT MORE CAN DO AMUL ?

To improve Further Amul can try out the following Ideas:
Amul can venture out on new product like Toned Milk,Conensed milk
that can be used for Sweets, baby food Products.
There are certain product like Amul Basundi, Gulab jamun, Chocolate
etc which are not as popular as Amul Ice-cream.Amul must try to
understand the cause of this act through market research work on
improving these product.
Though Amuls hoarding are huge success it can penetrate even better
in Rural areas by advertising through media like cable channel and
news paper, Sports event can be a great help.

CONCLUSION
Amul is one of the fastest growing industries of India.This industry has
revolutionized the Indian dairy sector and also brought from brink

54

extinction.and Also it was one of the successful cooperative association in

india and also now the market leader in dairy sector.
Amul is state level apex body of milk cooperatives in gujrat which aims to
provide remunerative returns to the farmers and Also serve the interest of
consumers by providing affordable quality products.
Amul is the leading milk dairy in india amul helped by NDDB to organize
dairy industry Amul conduct in Three Tier Organization it is divided in to
state level, district level, village level hierarchy.
Amul Distribution chain is most difficult chain and complicates chain in
world. Amul federation consumes per day 4 million litre milk from village
and processed that quantity by pasteurization techinique and

other

preservation techniques per day an aggregate amount more than Rs.125

billion to the milk Produce in a year.

BIBLOGRAPHY
1. http://www.icmrindia.org/free%20resources/casestudies/amul1.htm
2. http://www.ibscdc.org/Case_Studies/Strategy/Diversification
%20Strategies/DIS0020.htm
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3. http://www.studymode.com/subjects/diversification-strategy-of-amulpage1.html
4. http://topicideas.org/ppt/case-study-solution-of-amul-diversification-

strategy

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