AMUL COMPANY

Prepared by

Monika Rani

CORPORATE INTRODUCTORY PROJECT

Report on

AMUL COMPANY

By

Name: MONIKA RANI Course : MBA

Semester: 1ST Roll No.: 22Section: INNOVATION

INTERNATIONAL INSTITUTE OF BUSINESS STUDIES

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

2008 – 09

CONTENTS

1. Introduction

2. Key person with their details

3. Address of the organization

4. History

5. Diary Industry Profile

6. Products

7. Company’s competitors and it’s market share

8. Charts & Progress Analysis

9. Advertising

10. Mackenzie’s 7’s 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

Amul’s 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.

AmulType Cooperative

Founded 1946

Headquarters Anand, India

Key peopleChairman, Gujarat Co-operative Milk

Marketing Federation Ltd. (GCMMF)

Industry Dairy

Products See complete products listing.

Revenue $1.33 billion USD (in 2007-08)

Employees 2.41 million milk producers

Website www.amul.com

Amul: The originThe 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, Bangladesh

Australia, 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 Hershey’s 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 PERSON

Ramsinh 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: gcmmf@amul.com

Website: http://www.Amul.com

Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit

HISTORY

Amul 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 farmers

Over five decades ago, the life of an average farmer in Kheda District was very much like that of his/her counterpart anywhere else in India. His/her income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. Milk producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand – often milk went sour, especially in the summer season, as producers had to physically carry milk in individual containers. Private traders and middlemen controlled the marketing and distribution system for the milk. These middlemen decided the prices and the off-take from the farmers by the season. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throw-away prices. In this situation, the private trader made a killing. Moreover, the government at that time had given monopoly rights to Polson Dairy (around that time Polson was the most well known butter brand in the country) to collect milk from Anand and supply to Mumbai city in turn (about 400 kilometers away). India ranked nowhere amongst milk producing countries in the world in 1946. Gradually, the realization dawned on the farmers with inspiration from then nationalist leaders Sardar Vallabhbhai Patel (who later became the first Home Minister of free India) and Morarji Desai (who later become the Prime Minister of India) and local farmer, freedom fighter and social worker Tribhovandas Patel, that the exploitation by the trader could be checked only if

they marketed their milk themselves. Amul was the result of the realization that they could pool up their milk and work as a cooperative

Setting Up of Gujarat Cooperative Milk Marketing Federation

In 1954, Kaira District Co-operative Milk Producers’ Union built a plant to convert surplus milk produced in the cold seasons into milk powder and butter. In 1958, a plant to manufacture cheese and one to produce baby food were added. Subsequent years saw the addition of more plants to produce different products. In 1973, the milk societies/district level unions decided to set up a marketing agency to market their products. This agency was the Gujarat Cooperative Milk Marketing Federation (GCMMF). It was registered as a co-operative society on 9 July 1973.

Amul Ice Cream was launched on 10th March, 1996 in Gujarat. The portfolio consisted of impulse products like sticks, cones, cups as well as take home packs and institutional/catering packs. Amul ice cream was launched on the platform of ‘Real Milk. Real Ice Cream’ given that it is a milk company and the wholesomeness of its products gives it a competitive advantage.

In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999.

It has combated competition like Walls, Mother Dairy and achieved the No 1 position in the country. This position was achieved in 2001 and it has continued to remain at the top.

Today the market share of Amul ice cream is 38% share against the 9% market share of HLL, thus making it 4 times larger than its closest competitor.

Not only has it grown at a phenomenal rate but has added a vast variety of flavours to its ever growing range. Currently it offers a selection of 220 products. Amul has always brought newness in its products and the same applies for ice creams.

In January 2007, Amul introduced SUGAR FREE & ProLife Probiotic Wellness Ice Cream, which was a first in India. This range of SUGAR FREE, LOW FAT

Diabetic Delight & ProLife Probiotic Wellness Ice Cream is created for the health conscious.

Amul’s entry into ice creams is regarded as successful due to the large market share it was able to capture within a short period of time – due to price differential, quality of products and of course the brand name.

In Popular CultureThe establishment of Amul is also known as White Revolution. The White Revolution of India inspired the notable Indian film-maker Shyam Benegal to base his film Manthan (1976) on it. The film starred Smita Patil, Girish Karnad, Naseeruddin Shah and Amrish Puri. The film itself was financed by over five lakh rural farmers in Gujarat who contributed Rs 2 each to the film'š budget. Upon its release, these same farmers went in truckloads to watch 'their' film, making it a commercial success.[9][10], the film was chosen for the 1977 National Film Award for Best Feature Film in Hindi.

The White Revolution ushered an era of plenty from a measly amount of milk production and distribution. Aside from the great measurable success that this project was, it also demonstrated the power of "collective might". A small set of poor farmers of Kheda district in Gujarat had the vision and foresight to act in a way that was good for the society and not for the self alone.

Dairy Industry Profile, 1997

Human population: 953 million (70 million dairy farmers) Milk production: 74.3 million tonnes (203.5 million lpd) Average annual growth rate (1995-2000): 5.6% Per capita milk availability: 214 g/day or 78 kg/year Milch animals: 57 million cows; 39 million buffaloes Milk yield per breedable bovine in-milk: 1,250 kg Cattle feed production (organized sector): 1.5 million tonnes Turnover of veterinary pharmaceuticals: Rs. 550 crores Dairy plants throughput: 20 mlpd Throughput as percentage of total milk output: 10

Value of output of milk group (1994-95)*: Rs. 50,051 crores Value of output of dairy industry**: Rs. 105,000 crores

Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value

Members: 13 district cooperative milk producers' Union

No. of Producer Members: 2.7 millionNo. of Village Societies: 13,141Total Milk handling capacity:

10.21 million litres per day

Milk collection (Total - 2007-08):

2.69 billion litres

Milk collection (Daily Average 2007-08):

7.4 million litres

Milk Drying Capacity: 626 Mts. per dayCattlefeed manufacturing Capacity:

3090 Mts per day

Products

Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January 2006, Amul plans to launch India's first sports drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's Gatorade

In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product offering in the milk products segment. Other Amul brands are Amul Kool, a low calorie thirst quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee and India's first sports drink Stamina.

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing Award for 2007.

Sales Turnover Rs (million) US $ (in million)1994-95 11140 3551995-96 13790 4001996-97 15540 4501997-98 18840 4551998-99 22192 4931999-00 22185 4932000-01 22588 5002001-02 23365 5002002-03 27457 5752003-04 28941 6162004-05 29225 6722005-06 37736 8502006-07 42778 10502007-08 52554 1325

PRODUCTS 1) AMUL BUTTER

Features:-

AMUL BUTTER is made from Butter, Common Salt, permitted natural colour- Annatto.

Composition:

Milk Fat 80% Moisture 16% Salt 2.5% Curd 0.8%

Calorific Value:

720 kcal./100g

Special Features:

Made from fresh cream by modern continuous butter making machines. Marketed in India since 4 decades.

2) AMUL LITE

AMUL LITE : A Low Fat Low Cholesterol Bread SpreadUnlike Butter & Margarine, Amul Lite is a low-fat, low-calorie & low-cholesterol bread spread, hence a healthier substitute. It contains 26% less fat and calorie content as compared to butter or margarine

PRODUCT COMPOSITION

Per 100g AMUL LITE BUTTER MARGARINE

Total fat % 59 80 80

Milk Fat % 10 80 0

Vegetable Fat % 49 0 80

Cholesterol 26 mg 210 0

Total Calories 531 720 720

Special Features

Since Amul lite is low in calories, you can maintain your slim-trim shape without sacrificing on the taste.

Amul lite is a low-fat and low-cholesterol product and less cholesterol means less chance of heart diseases. It is specially suited for elderly people & those with health complications for whom the consumption of high cholesterol and high saturated fat products is restricted.

Amul Lite is low in saturated fats & high in PUFA for a "healthy heart". Amul Lite contains "Omega-6 & Omega-3 fats" which maintain healthy

cholesterol levels. Amul Lite is fortified with Vitamins A & D, essential for good vision & healthy

skin It is manufactured in a fully automated, ISO9000 certified plant under strict

hygienic conditions.

Product Specification

The product is certified by AGMARK for quality

Product Application

Amul Lite is ideal spread for toasts, sandwiches & bread. It can be used for topping on parathas, pav-bhaji, pulao, khichri, soups etc and also for household baking, preparation of cakes etc.

3) Delicious Table Margarine

Table Margarine is characterized by a physical consistency similar to butter and is commonly known as butter-substitute.

Margarine is prepared exclusively from vegetable oils and fats.

Product Attributes

Prepared from Refined Vegetable Oil. Total fat content is 80% min. Contains Zero Cholesterol, hence suitable for cardiac patients. Fortified with Vitamins A & D Manufactured in an ISO 9000 certified plant under strict hygienic conditions. The

product is completely untouched by human hand Shelf life 6 months under refrigeration

Product Applications

For use as a butter-substitute in all applications. Suitable for use as a cooking medium. Can be heated to high temperatures. Ideal as a spread on bread/toasts/sandwiches For shallow frying or sautéing (frying quickly in a little fat). For use as topping on variety of items, viz; pav-bhaji, parathas, khichri, pulao,

soups etc.

Pack Configuration

Delicious Table Margarine Is Available In 100g & 500g Block Packs.

4) Amul Kool Milk Shake

Amul is all set to further consolidate its position in the beverages market with the introduction of milk shake under brand name Amul Kool Milk Shake in 4 exciting flavours – Banana, Mango, Strawberry and Badam.

Amul Kool Milk Shake, targeted at youth & teenagers, is the balanced blend of best quality fruit solids (Banana, Mango, Strawberry) and goodness of milk. Priced at Rs. 22/- for a 220 ml. in convenient & stylish world class Can packing. Amul Kool Milk Shake is the healthy option against carbonated soft drinks and provides value for money to the consumer.

It brings goodness of fruits all the year around. You can enjoy your favourite flavour anywhere, on the move. Apart from its refreshing fruit taste, the product has calcium, protein, carbohydrates, vitamins, etc., for healthy growth of a human body.

Along with the above three flavours, one more flavour will also be introduced in the brand name of Amul Kool Milk Shake – Badam in 220 ml can packing. This will also be priced at Rs. 22/-. The product which contains Milk solids and Almond pieces is a delicious drink rich in nutrients.

The Amul Kool Milk Shake in Tetra Pack in 3 flavours, i.e. Mango, Strawberry and Banana is also ready for launch. This is priced at Rs. 15/-.

Product Composition :

Ingredients:

Double Toned Flavoured Milk. Manago /Strawberry/ Banana Solids. For Badam Milk Shake: Milk Solids and Almond Pieces.

Primary Pack :

220 ml Can and 180 ml tetra Brick pack

5) NUTRAMUL MALTED MILK FOOD

NUTRAMUL MALTED MILK FOOD is made from malt extract, milk solids, sugar, cocoa powder, emulsifying agents, sodium bicorbonate and added flavour.

Composition:

Fat 6.5% Carbohydrates 70% (Starch, sugar) Moisture 2% Protein 11.5% Cocoa 8%

Special Features:

Amul's Nutramul has the highest protein content among all the brown beverage powders sold in India and is the only one in India with BIS certification mark.

6) Amul Basundi

Ingredients :

Amul Basundi is concentrated milk based product with added sugar, flavours and condiments.

Fat - 11%, Milk Solids - 25%, Sugar - 9%

Calorific value :

205 Calories per 100ml

Pack options :

500 ml and 1 Liter aseptic Tetra Pack

Special Features :

Prepared from best quality milk and other ingredients Rich in nutrition and Zero Bacteria Packed in convenient aseptic pack (Tetra Pak packaging materials) Long shelf life - 6 months from date of manufacturing Can be stored at room temperature and does not require refrigeration till opened. Zero wastage. Use as much you require. Consistency in quality and available round the year. Economically priced (Value for money)

7) AMUL CHOCOLATE

Composition:

Milk Fat 2% Sugar 55% Total Fat 32.33%

(Milk Fat + Cocoa Fat) Cocoa Solids 7.5% Milk Solids 20%

8) Mithaee Gulab Jamuns

9) AMUL SHRIKHAND

AMUL SHRIKHAND is made from Chakka, Sugar and flavouring agents/fruits (Elaichi, Saffron, Mango pulp)

Composition:

Fat 5.5% Milk solid-not fat 13.5% Sugar 40% Flavouring agent 2.5% Mango pulp

Calorific Value:

260 kcal./100g

Special Features:

Shrikhand is a traditional sweet. It is the only pasteurized Shrikhand available in the country with smooth texture and extended shelf life. Made from most modern dairy equipment.

10) Masti Soups

11) AMUL MASTI DAHIAMUL MASTI DAHI is made from Pasteurized Toned Milk

Approximate Composition:

Fat 3.5% SNF 8.5%

Special Features:

Only Packed curd available in market, made in the hygienic way in modern processing plant. Made with special culture to give a smooth, mild acidic taste and pleasant flavour consistently.

12) AMUL MITHAI MATE SWEETENED CONDENSED MILK

Composition:

Sweetened Condensed Milk Total Milk Solids 31% minimum Fat 9.0% minimum Added Cane Sugar 40.0% minimum

Special Features:

Produced on the only continuous condensing plant in the country. The product contains no preservatives.

13) AMUL MALAI PANEER

Technologically, it is equivalent to Cream Cottage Cheese of western products. Can be kept good in the deep freeze for 6 months.

Amul Malai Paneer is available in already cut cubes form which saves preparation time of housewives as well as reduces losses due to crumbling.

The best quality Malai Paneer with quality assurance of Amul is the only national brand of Paneer available in India since 1997. It is also exported to US, Gulf as well Singapore & Japan markets regularly.

"Richer, Softer, Better" Paneer made out of fresh milk. Composition of Amul Malai Paneer is as under.

Parameters StandardsMoisture % (Max) 55.0Fat % on Dry Matter Basis (Min) 50.0

Higher fat content (26-27%) and lower moisture content than other loose Paneer

available in the market. This gives Amul Malai Paneer smooth, uniform texture and softness that most consumers desire.

Automated production process giving Hygienic Malai Paneer unlike the locally made Paneer & being sold in open.

Most convenient form of diced / Block Malai Paneer which can be stored in deep freeze for usage at any time.

Within 10 minutes of thawing in lukewarm water the Amul Malai Paneer regains its softness.

Diced Paneer is available in three pack sizes viz. 100 g, 200 g & 1 kg pack in heat sealed poly pouches to ensure the best quality. Recently we have launched Block Paneer in 100g, 200g, 500g & 1 Kg packs in Aluminum foil & paper carton over it.

14) AMUL PURE GHEE

Composition:

Milk Fat 99.7% Moisture 0.3%

Calorific Value:

900 kcal./100g

Special Features:

Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience. A rich source of Vitamin A, D, E and K.

Product Specification:

Meets AGMARK SPECIAL GRADE specification of the Agmark scheme (1938) of Govt. of India.

15) Amul Pizza Mozzarella Cheese

Ingredients:

Milk, Common Salt, 100% Vegetarian Coagulating Enzymes.

Composition:

Fat on dry matter > 30% but < 40% Moisture > 45% but <52% Salt > 1.1% - 1.6%

Special Features

Amul,which is the largest selling brand of Cheese in India, is introducing genuine Mozzarella Cheese for the first time in the country.

Amul Pizza Cheese has Moist, Soft, Elastic texture and has a very timely surface sheen and when fresh, it has a slightly salty blandish taste and pleasant aroma. Because of its stretchability, i.e. ability to form strings when hot, this cheese is ideal for preparing Lasagna, Veal Cutlet, Alla Parmagnia and as a topping on pizzas.

When baked along with pizzas, it melts uniformly, beautifully engulfing all other ingredients of the pizza surface.

Mozzarella is an excellent source of milk proteins, which are palatable

BRITANNIA

BNZFL is a joint venture between Britannia Industries Ltd & Fonterra Cooperative Group ,New Zealand ,a diary Cooperative group.

The company focuses entirely on the diary business with cheese being its flagship product.The other product it sells are diary whiteners ,butter ,ghee & a malt drink Anlene.

Its turnover in 2005-06 in US $ 24 million with about 50% coming from processed cheese ,30% from the diary whitener & remaining 20% from butter & ghee sales.

CHEESE PRODUCTS:-

The firm has also entered the fresh pastuerised milk market ,dominated by Govt-owned milk marketers.

The firm has started supplying dresh paneer in & around Delhi.

The firm also has in its portfolio Daily Fresh Dahi & has just launched low fat Dahi in 2008.

NESTLE

Nestle India is a subsidiary of Nestle SA ,World ‘s biggest food company & a leading Swiss giant.

Nestle India’s business can be broadly classified into four categories –milk products & nutrition, prepared dishes ,cooking aids ,beverages & chocolate ,confectionary.

The company is focused on growing its market share through renovation & innovation of its existing brands in India.

CADBURY

. Cadbury India began its operations as a trading concern in

1947.The company today employs nearly 2000 people across India.

Currently Cadbury India operates in 3 sectors viz Chocolate Confectionary ,Milk Food Drinks and in the Candy category.

In the chocolate confectionary business ,Cadbury has maintained its undisputed leadership over the years & has market share of over 70% the highest Cadbury brand share in the world.

HLL

Unilever , the major shareholder in HLL is the world’s largest ice-cream company selling in more than 80 countries.

The Rs 1200 crore branded ice-creams sector is dominated by HLL with 37% market share followed by Amul with 27% market share.

With a growth in sales of nearly 40% in 2006 & with HLL making profits in the category for the second year ,the company is bullish.

The market share potential is huge with ice-cream consumption in the country very niche ,at around 500ml per capita , compared with 2-4 litre in Singapore.

MARKET SHARE

Nestle:- 28%

Cadbury:- 58%

Amul:- 13%

Any other:- 1%

Progress Analysis of Amul

AMUL TURNOVER

Annual turnover of Rs 4300 crore (2006-07) .

Rs 10000 crore mark over the next 3 years .

But the turnover doubled to over Rs 4300 crore with in a years from 1999-2007.

STOCK CHART FOR AMUL

MARKET SHARE OF BSE AMUL COMPANY

GCMMF Today:-

GCMMF is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat, 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. GCMMF markets and manages the Amul brand. From mid-1990's Amul has entered areas not related directly to its core business. Its entry into ice cream was regarded as successful due to the large market share it was able to capture within a short period of time - primarily due to the price differential and the brand name. It also entered the Pizza business, where the base and the recipes were made available to restaurant owners who could price it as low as 30 rupees per pizza when the other players were charging upwards of 100 rupees.

In September 2007, Amul emerged as the leading Indian brand according to a survey by Synovate to find out Asia's top 1000 Brands.

GCMMF bags APEDA AWARD for 11th year in a row

GCMMF has bagged award for excellent performance in exports of dairy products for the year 2006-07 from Agricultural and Processed Food Exports Development Authority (APEDA), Minister of Commerce, New Delhi. GCMMF has won the award for 11th time. The award was received by Mr. Raveen Choudhary, our AGM (Z-I), Delhi, from Hon'ble Minister of Commerce, Shri Kamalnath, in a glittering ceremony held at Siri Fort Auditorium on 3rd June, 2008.

Visit of Mr. Walter Stechel, Consul General, German Consulate General, Mumbai

Mr. Walter Stechel, Consul General, German Consulate, Mumbai visited Anand and Gandhinagar on Friday, June 27, 2008. An Economist himself, Mr. Stechel’s visit was to gain a first hand experience of the working of the Amul model of cooperative development. His visit to Mother Dairy, Gandhinagar and Amul Dairy left him very impressed. Later he met Shri B. M. Vyas, Managing Director, GCMMF and discussed the dairy scenario with him.

Advertising

An Amul butter ad on Pakistan's Kargil War fiasco. The image shows the "Amul baby" in between George Fernandes and Vajpayee.

Its advertising has also started using tongue-in-cheek sketches starring the Amul baby commenting jovially on the latest news or current events. The pun in her words has been popular. The Amul ads are one of the longest running ads based on a theme, now vying for the Guinness records for being the longest running ad campaign ever. Sylvester daCunha, was the managing director of the advertising agency, ASP, that created the campaign in 1967 whose charm has endured fickle public opinion, gimmickry and all else.

STRATEGY Besides focusing on competitive pricing ,BNZF has adopted a 3 prolonged

strategy of freshness (lower pipeline stock) availability & visibility (more shelf space at modern trade )

It recently entered some fresh milk markets such as Delhi , Kolkota , where GCMMF does not have a presence . It is concentrating on just 30 cities & that too through select class A&B outlets , for butter & cheese.It is not playing the national game with GCMMF.

Being No 2 in the butter & cheese market after Amul which holds more than 86% (combined butter & cheese market) it should be following offense strategy by attacking the strengths of Amul Cheese market.

Structure:

Board of directors -> Board Advisory -> General Manager -> Functional Head -> Functional Team members -> Trainee

Systems:

Financial systems – Corporate Finance ,TradingHuman Resource - Hiring, promotion and performance appraisal systemsInformation systems - SAPProject Development – Strategic planning , business development , Project RetentionCorporate Communication – Media , Investor Relations, Branding

Staff:

Producer members 2.7 million 13 district cooperative milk products Union

Style:

Amul top management majorly concentrates on acquiring project to be among the top players in the industry. they raised money through the one of the mega IPO on BSE, again that was the indication of the number of projects they have. That also makes business and Finance sense to build a world class organization.

Skills:

In a nut shell, I would say that brand image, no. of projects , sufficient funds for the operating these projects and a experienced manpower for the completion of the project and last but not the least corporate and political hold gives an value addition to the entire business.

Shared Value:

The greatest value has been created by Amul through leveraging its scale, efficiency and global capabilities.Our partnership with Amul increases our responsiveness to business change with access to a larger and more flexible workforce whilst reducing our overall risk profile through broadening the knowledge base around some of our key systems.

BIBLIOGRAPHY Thanks to Mr. Mrinmoy Biswas

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