AMUL (Anand Milk Union Limited)

Gujarat Cooperative Milk Marketing Federation, PO Box 10, Amul Dairy Road, Anand -388 001, Gujarat, India. Prepared and Presented by: HARSH MORABIA

Information
Amul is a dairy cooperative movement in India that was formed in 1946. It is managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat, India. Amul has incited 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. It has an annual turnover of US $1050 million (according to 2006-07 statistics), making it the largest food brand in India in addition to the world's Largest Pouched Milk Brand. Furthermore the Dairy Queen has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man behind the success of Amul.

Sales Turnover
1994-95
1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2007-08

US $ (million)
355
400 450 455 493 493 500 500 575 616 672 1068

Historical Particulars
Amul was formally catalogued on December 14, 1946. The name AMUL has been sourced from the Sanskrit word Amoolya, means priceless. The Amul revolution was started as consciousness among the farmers. It grew and matured into a protest movement that was routed towards economic prosperity.

Product Range
Liquid Milk (nine varieties) Milk Powders (five varieties) Butter Ghee (two varieties) Bread Spread Cheese (three varieties) Cocoa Products (two varieties) Sweets (three varieties) Ice Cream (several varieties) Condensed Milk Edible Oil (nine varieties) Mineral Water Fruit Drinks

Brand Name
Panel E: Number of Brands Liquid Milk: AMUL, SAGAR Milk Powders: Amulspray, AMUL, SAGAR, Amulspree, Amulya Cocoa Products: AMUL, Nutramul Edible Oils: Dhara, Lokdhara Mineral Water: Jal Dhara Fruit Drinks: Safal

Strategy

Collection Chain

Supply Chain

Weighing the milk

Storing the milk

Determination of fat content

Processing the milk

Calculation of the purchase price

Distributing the milk

Collection of Milk
AMUL introduced an electronic automatic milk collection system in 691 milk collection centers. The system weighs the milk and measures its fat content at the time of delivery to the centre.

This system reduced time required for collecting the milk.

It enabled immediate payments to the farmer.

Cycle
DAIRY DCS

MILKMAN COW

Farmers
Village Cooperative Societies (without Chilling Units) Network Services * Veterinary Services * Animal Husbandry * Animal Feed Factory * Milk Can Producers * Agriculture University * Rural Mgmt Institute * Trucking Facilities Village Cooperative Societies (with Chilling Units) Local Restaurants/Other Milk related businesses Milk Sold to Village & Local Residents

Milk Processing Union & Warehouses Warehouses

Chilling Plants

Supply Chain

Wholesalers/C&S Retailers Home Delivery Contractors

CONSUMERS

CONSUMERS

Developing Demand -limited purchasing power, modest consumption levels -a low cost price strategy products

The Distribution Network -dry and cold warehouses -cash transactions throughout the supply chain -JIT improves dealers return on investment

Umbrella Brand -common brand for most product categories -Amuls sub-brands, edible oil products- Dhara, mineral water

Third Party Service Providers

-core is milk processing, production of dairy products -Logistics of milk collection, distribution of dairy products, sale of products through dealers and retail stores

AMUL MILK is Pasteurised Milk

Composition: *Every 100 parts of SNF (Solids Not Fat) contains 56 parts of carbohydrates, 34 parts of protein and 9 parts of minerals. Special 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 Specification: Amul milk meets the PFA standards for the respective type of milk.

Amul Taaza is Long Life double toned milk. It is fresh and only fresh milk, which has been processed with a technology called UHT (Ultra High Temperature), hence also known as UHT milk. Notwithstanding popular misconception, UHT technology does not involve any use of preservatives. The UHT treatment ensures zero microbial activation, while preserving the maximum flavour, taste, and nutritional value. The aseptic packaging system protects the product from air and light and guarantees a long shelf life of 180 days without refrigeration.

Amul Taaza contains 1.5% fat and 9% SNF minimum and is ideal for tea and coffee whitening and for setting curds. It is also just right for drinking straight from the pack for those who would like to enjoy the taste the goodness of natural while avoiding the hazards of too much fat! Amul Taaza comes in convenient 1 liter, 500ml and 200ml packs.

Amul Butter Cash Cow in the Product Portfolio

Primary position as far as butter is concerned with a market share of more than 86 percent.

Amul has introduced a number of diverse range of varied products like cooking butter, low fat butter etc along its main product. Hence covering all the segments in which a competitor can enter, thus creating strong barriers and in turn playing offence to defend its market position.

AMUL BUTTER is made from Butter, 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.

AMUL 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. 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.

AMUL INICIATIVE IN DEVELOPING RURAL RETAILING

Insurance against natural calamities
Establish telecenters and enhance technology in villages To charge for each service provided to the supplier To purchase all milk that member farmers produced To sell liquid milk at affordable prices so as to serve a large number of consumers To develop and deliver services that will improve lives of people in the network To hire professional managers, to run the federation and unions, whose values included upliftment of rural poor.

Value Proposition
Tangible-product portfolio.

Creating History
a)First self motivated and autonomous farmers' organization comprising of more than 500,000 marginal milk producers of Kaira District. b) Created dairy co-operatives at village level functioning with milk collection centres owned by them. c) Provided state-of-art milk fat measuring system. d) Computerized milk collection system with electronic scale and computerized accounting system. e) Artificial insemination facility right at farmers door step through frozen semen in stored liquid nitrogen.

f) Veterinary services through mobile van equipped with dedicated Radio frequency wireless telephone system.

Creating History(contd.)
g) The first and only organization in world to get ISO 9000 standard for its farmer cooperative. h) First to produce milk powder from surplus milk. i) First to produce cheese from buffalo milk. j) First to formulate infant milk food in the country with indigenous technology. k) First farmer owned and managed Dairy Co-operative integrating milk production, processing and marketing under one roof. l) Leading fully automated dairy plant. m) First to set up 600 MT Cattle Feed Plant for providing balanced (formulated) Cattle Feed Plant.

Environment and Safety

oAmul had set up the Effluent Treatment Plant (ETP) way back in 1974 i.e. before the existence of State Pollution Control Board. Since then it has been taking utmost care in protecting the environment. Dairy has year after year reduced water consumption, improved solids recovery and now for many years has changed over from furnace oil to gas as a cleaner fuel in boilers and air heaters of the spray drier. oIt is at the verge of renovating its plant for ensuring 100% recycling of its treated effluent and generates revenue through production of fodder for cattle. Safety first is the slogan of the organization. Safety Committee ensures safe working environment through involvement of all employees in their respective work areas. oThe safety concept is enhanced through - 1) Safety training, 2) Safety meetings and 3) Safety Day Celebrations.

Plants
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavored milk and buttermilk.

Market Share(%) of GCMMF (AMUL brand) in Various Product Categories

The Supply-Demand Linkages

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