Amul Company

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a complete description of anand dairy india limited.

Transcript of Amul Company


AMUL COMPANYPrepared by Monika Rani







Course : MBA

Semester: 1ST

Roll No.: 22


KHB Main Road, R.T. Nagar Post, Bangalore 560 032.

2008 09


1. Introduction

2. Key person with their details

3. Address of the organization

4. History5. Diary Industry Profile

6. Products7. Companys competitors and its market share

8. Charts & Progress Analysis

9. Advertising

10. Mackenzies 7s Model

11. Bibliography INTRODUCTION AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found in several Indian languages.............AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert.Amul was set up in 1946 and its full form is Anand Milk- producers Union Ltd. The Brand Amul is a movement in dairy cooperative in India. The management of the brand name is done by the Gujarat Co- operative Milk Marketing Federation Ltd GCMMF which is a cooperative organization.Amul is located in the town Anand which is in the state of Gujarat and it has set up itself as a model for development

Amuls tagline The Taste of India can not be doubted under any source of imagination. The story of Amul (Anand Milk Union Limited) started in 1946 with 247 litres of milk to do away with the exploitation of middlemen in milk collection and give the villagers maximum returns. From then, Amul operating under Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) is today jointly owned by 25 lakh milk producers in Gujarat, with 11,962 village level milk collection centers.Amul



HeadquartersAnand, India

Key peopleChairman, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF)


ProductsSee complete products listing.

Revenue$1.33 billion USD (in 2007-08)

Employees2.41 million milk producers

Amul: The origin

The mighty Ganges at it's origin is but a tiny stream in the Gangotri ranges of the Himalayas. Similar is the story of Amul which inspired 'Operation Flood' and heralded the 'White Revolution' in India. It began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to the flood it has become today. Today Amul collects, processes and distributes over a million liters of milk and milk products per day, during the peak, on behalf of more than a thousand village cooperatives owned by half a million farmer members. Further, as Ganga-ma carries the aspirations of generations for moksha, Amul too has become a symbol of the aspirations of millions of farmers.Creating a pattern of liberation and self-reliance for every farmer to follow.

The start of a revolutionThe revolution started as an awareness among the farmers that grew and matured into a protest movement and the determination to liberate themselves. Over four decades ago, the life of a farmer in Kaira District was very much like that of his counterpart anywhere else in India. His income was derived almost entirely from seasonal crops. The income from milch buffaloes was undependable. The marketing and distribution system for the milk was controlled by private traders and middlemen. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throwaway prices. In this situation, the one who gained was the private trader. Gradually, the realization dawned on the farmers that the exploitation by the trader could be checked only if marketed their milk themselves. In order to do that they needed to form some sort of an organization. This realization is what led to the establishment of the Kaira District Cooperative Milk Producers' Union Limited (popularly known as Amul) which was formally registered on December 14, 1946.

The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in June 1948. An assured market proved a great incentive to the milk producers of the district. By the end of 1948, more than 400 farmers joined in more village societies, and the quantity of milk handled by one Union increased from 250 to 5,000 liters a day.Obstacles: Springboards for success.

Each failure, each obstacle, each stumbling block can be turned into a success story. In the early years, Amul had to face a number of problems. With every problem came opportunity. A chance to turn a negative into a positive. Milk by products and supplementary yield which suffered from the same lack of marketing and distribution facilities became encumbrances. Instead of being bogged down by their fate they were used as stepping stones for expansion. Backward integration of the process led the cooperatives to advances in animal husbandry and veterinary practice. GCMMF AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. It is one of the best examples of co-operative achievement in the developing world. "Anyone who has seen ... the dairy cooperatives in the state of Gujarat, especially the highly successful one known as AMUL, will naturally wonder what combination of influences and incentives is needed to multiply such a model a thousand times over in developing regions everywhere." The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand..

Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07) .Currently Amul has 2.6 million producer members with milk collection average of 10.16 million litres per day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, BangladeshAustralia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets. Other potential markets being considered include Sri Lanka.

Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was elected chairman of GCMMF.

In 2005-2006, Amul has an average daily milk collection of 63 lakhs litres with a handling capacity of 99 lakh litres. The striking truth is that being a cooperative, it had Rs. 3,774 crore turnover and planning actively to take it up to the 10,000 crore mark. This is what makes Amul a unique, Rs 2,200 crore enterprise.

Out of the entire milk procured, approximately 40 per cent is sold as liquid milk and 60 per cent is converted to value added products. Amul has taken on multinationals head on, HLL in ice-creams, Cadbury in chocolates, Nestle in dairy powder, and commands a staggering 86 per cent market share in butter. Recently, Amul even did not show interest in Hersheys proposal of a tieup.

Amul advantages stems from the following facts it has a cost-effective production, it has diversified in value-added products under the Amul umbrella, it has loyal customers, a strong brand recall and a strong distribution network.

If Amul were to come up with an IPO (though being a co-operative and free from clutches of being in public domain, it is a highly unlikely scenario), it would generate as much interest as has never been witnessed in the Indian stock market history, probably much more than the Reliance Industries maiden issue. This is because, every India irrespective of social status, caste, religion and region, has been a staunch Amul eater right from his childhood across its product categories KEY PERSONRamsinh Prabhatsinh Parmar:- Chairman

Shri Rajendrasinh Dhirsinh Parmar:- Vice-Chairman

Shri Dhirubhai Amarsinh Zala:-Director

Smt. Mansinh Kohyabhi Chauhan:-Director

Shri Maganbhai Gokalbhai Zala:-Director

Shri B.M.Vyas:-GCMMF,MD

Shri Deepak Dalal:-District Registrar

Shri Rahul Kumar:-Managing Director

ADDRESS OF COMPANY. Gujarat Cooperative Milk Marketing Federation Ltd.Amul Dairy RoadP B No.10, Anand 388 001,India

Phone: +91-2692-258506, 258507, 258508, 258509Fax: +91-2692-240208Email: [email protected]:

Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit HISTORYAmul was formally registered on December 14, 1946. The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand and it was chosen because it was a perfect acronym for Anand Milk Union Limited.

The Amul revolution was started as awareness among the farmers. It grew and matured into a protest movement that was channeled towards economic prosperity.

Situation of farmersOver five decades ago, the life of an average farmer in Kheda District was very much like