Amul

Introduction
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 the village
societies and the district union, they employed professionals to
operate the dairy and manage its business. Most importantly, the

co-operatives 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.
Organisation
Gujarat
Cooperative
Milk
Marketing
Federation
Ltd. (GCMMF), is India's largest food product marketing
organisation with annual turnover (2013-14) US$ 3.0 billion. Its
daily milk procurement is approx 13.18 million lit per day
from 17,025 village milk cooperative societies, 17 member
unions covering 31 districts, and 3.23 million milk
producer members.
It is the Apex organisation 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 organisation
of 'Amul' and 'Sagar' branded products. It operates through 53
Sales Offices and has a dealer network of 10000 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 has
been awarded "Golden Trophy" for its outstanding export
performance and contribution in dairy products sector by APEDA.

In 2013-14, GCMMF took giant strides in expanding its presence

in International markets. Amuls presence on Global Dairy Trade
(GDT) platform in which only the top six dairy players of the
world sell their products, has earned respect and recognition
across the world. By selling milk powders on GDT, GCMMF could
not only realize better prices as per market demand but it also
firmly established Amul in the league of top dairy players in world
trade.
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 organisation to win topmost
International Dairy Federation Marketing Award for probiotic ice
cream launch in 2007. For the innovations, GCMMF has received
AIMA-RK Swamy High Performance brand award 2013 and CNNIBN Innovating for better tomorrow award in 2014. For the tree
plantation activity GCMMF has received seven consecutive Good
Green Governance award from Srishti during 2007 to 2013.
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

Members

17 District Cooperative Milk

Producers' Unions

No. of Producer Members

3.23 Million

No. of Village Societies

17,025

Total Milk handling capacity

23.2 Million litres per day

per day
Milk Collection (Total - 201314)

4.79 billion litres

Milk collection (Daily Average

13.18 million litres
2013-14)
Cattlefeed manufacturing
Capacity

6190 Mts. per day

Sales Turnover -(2013-14)

Rs. 18143 Crores (US $ 3.0

Billion)

Products[edit]
Amul's product range includes milk powders, milk, butter, ghee,
cheese, Masti Dahi, Yoghurt, Buttermilk, chocolate, ice
cream, cream, shrikhand, paneer, gulab jamuns, flavoured milk, basundi,
Amul Pro brand and others. Amul PRO is a recently launched brown
beverage just like bournevita and horlicks offering whey protein, DHA and
essential nutrients. In January 2006, Amul launched India's first sports
drink, Stamina, which competes with Coca
Cola's Powerade and PepsiCo'sGatorade.[21]
Amul offers mithaimate which competes with Milkmaid by Nestle by offering
more fat at lower price.
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; and Kool Cafe, ready to drink coffee.
Amul's icecreams are made from milk fat and thus are icecreams in real
sense of the word, while many brands in India sell frozen desserts made
from vegetable fat.
Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy
Federation Marketing Award for 2007.
Category

Business Environment

Competition

Pouched
Milk

Huge Investment
Required ; Unorganized
sector

Mother Dairy

Flavored
Milk

Very high growth

Mother Dairy, Nandini

Milk
powder

High Price ; Export

Opportunities

Nestle, Britannia

Baby Food

Huge Margin, Single

Major Player

Nestle (95% share)

Ghee

Home-made preferred

Unorganized market

Butter

Consumers increasing
favoring low-fat varieties

Britannia

Cheese

Opportunities in rural
market

Britannia, Dabur

Ice Cream

Competitive

Kwality Walls, Vadilal,

Mother Dairy

Paneer

Market penetration
possible

Amul is the only national

player having >50%
share of organized
market.

Flavored
Yogurt

New category and

gaining quick
acceptance, considered
as a premium product

Nestle, Danone,
Cocoberry

Lassi

Good preference for

unorganized sector

Few organized players,

Mother Dairy etc. Major
competition is
restaurants.

SWOT Analysis

STP
Segment

Health and quality conscious people

Target Group

Lower, middle and upper class people

Positioning

Taste of India Tasty Butter for people of all age groups

SWOT Analysis

1. Creative advertising with Amul Baby print ads

2. High brand presence and visibility
3.Availability of Amul butter is good with large
distribution network through retails, kirana stores, local
distributors etc.
4.Excellent product quality and trusted name
Strength

5. Affordable price and variable packaging

Weakness

1. Some people dont prefer butter form cows milk and

prefer local homemade butter
1. Smaller packages for instant consumption

Opportunity

2.No frills packaging for rural customers at lower cost

3. Tie-ups with corporates, hotels, resort chains etc
1. Local butter manufacturers

Threats

2.Low Fat Low cholesterol butters like Nutalite

3. Reduction in consumption by health conscious people

Amul Butter
Product Details
Product Name

Amul Butter

Description

Amul Butter (Made of pure milk FAT)

Packing

100g, 500g, 50g, 20g, 10g Blister

Product Specifications
Composition
Milk FAT, Min : 80%
Moisture Mix : 16%

Salt, Max : 3%
Curd, Max : 1%
Nutritional Information*
Amount per 100 g

Nutritional
Information

Energy, kcal

722

Energy from Fat, kcal

720

Total Fat, g

80

Saturated fat, g

51

Cholesterol, mg

180

Sodium, mg

836

Total Carbohydrate, g

Sugar, g

Protein, g

0.5

Vitamin A, mcg

65

Not a significant source of Dietary fiber, Sugars,

Vitamin C, Calcium and Iron.
* Approx Values
Shelf Life
Storage
condition

# Not Detectable

Best before 12 months from packaging when

stored Refrigerated at 4C or below
At 4C or below

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.
Britannia Butter is known for its rich yellow butter color, great
taste, and excellent spread-ability, even after refrigeration!
Made by churning fresh cow's milk, Britannia butter can be used
as a spread on your breads, or as a dollop on your paranthas, or
in baking, sauce making and frying.
Containing milk proteins, fat and water, Britannia Butter remains
solid (yet spreadable!!) when refrigerated, softens at room
temperature and melts to a thin liquid consistency at 32-35degC.
Available in two pack sizes of 100g and 500g, Britannia Butter
does not contain any added color and so, is the perfect ingredient
for your meals and snacks.
Product Description
Mother Butter is creamier, tastier and spreads easily. It has the right
amount of salt which is liked by all. Its delicious. Its creamy. And its so
easy to spread.
Mother Dairy Butter is produced under totally hygienic conditions using
Mother Dairys wholesome milk.
Pack size: 100g and 500g

Amul vs. Nestle vs. Mother Dairy: Indian Grown Dairy Products
Difference between Amul, Nestle and Mother Dairy
India has the largest and fastest milk and milk products market in the
world. If the growth of this sector is extrapolated, it is observed that in the
next ten years production will increase to about three times todays
numbers. India produces milk with the lowest cost at around 40 cents per
litre. Amul, Nestle, Britannia, Mother Dairy are some of the major
companies that produce milk and milk products in India. However, factors
such as lack of adequate amount of fodder and unavailability of
veterinary doctors have reduced the yield of milk per animal. This article
compares Indias three popular dairy organisations Amul, Nestle and
Mother Dairy.

Organisation
Nestle S.A. (Switzerland) runs its subsidiary in India with the name
Nestle India. It has setup seven factories throughout the country. Apart
from India, Nestle S.A. operates in eighty five other countries. Nestle
originated in 1905 and is named after Henri Nestle. It grew rapidly during
World War I. Amul is based in Gujarat. Its basically Gujarat co-operative
milk marketing federation (GCMMF). It has won various national awards
which includes the Rajiv Gandhi National Quality Award and the
Ramakrishna National Quality Award. Mother Dairy is owned by National
Dairy Development Board of India (NDDB). It was established in 1974
and is an ISO certified organisation.
Products
Nestle offers its products in four categories viz. Milk products and
nutrition, prepared dishes and cooking aids, beverages, and chocolates
and confectionery products. Milkmaid, Nescafe, Maggie, everyday, Polo,
Kit-Kat are some of its very famous brands. It has a total of six thousand
brands. Amul delivers milk, butter, ghee, ice creams, cheese and so on.
Its turnover was 67.11 billion Indian Rupees in 2008-09. It has over 50
products on the Indian market. Mother Dairy, on the other hand, in
addition to its milk products, offers the Dhaara - range of edible oils and
Safal range of fresh fruit juices. It has around two hundred thousand
outlets across the India.

Production and Earnings

In 2009, Nestle recorded a net profit of CHF 10.43 billion. A major portion
of this came from Europe and America, with 16% coming from Asia.
Mother Dairy markets around 2.8 million litres of milk everyday with a
market share of 66% percent in the branded sector. It has its main
market in Delhi, Hyderabad, Saurashtra and Mumbai. Amul has milk
handling capacity of 11.2 million litres per day and recorded a sales
turnover of $1,504 million (US) in 2008-09.
Summary
Amul

Gujarat co-operative milk marketing federation (GCMMF) owns

Amul.

Rajiv Gandhi National Quality Award and Ramakrishna National

Quality Award winner.

Amul delivers milk, butter, ghee, ice creams, cheese etc. and has
over 50 products.

Amul has milk handling capacity of 11.2 million litres per day.
Nestle

Nestle S.A. (Switzerland) runs its subsidiary in India with the name
Nestle India.

It has a total of six thousand brands.

In 2009 Nestle recorded a net profit of CHF 10.43 billion, 16% of

which was from Asia.
Mother Dairy

Mother dairy is owned by National Dairy Development Board of

India (NDDB).

It was established in 1974 and is an ISO certified organisation.

Also offers Dhaara - range of edible oils and Safal range of fresh
fruit juices.

Mother dairy markets around 2.8 million litres of milk everyday.

Mother Butter is creamier, tastier and spreads easily. It has the right amount of salt
which is liked by all. Its delicious. Its creamy. And its so easy to spread.
Mother Dairy Butter is produced under totally hygienic conditions using Mother
Dairys wholesome milk.
Pack size: 100g and 500g

Product Description
Mother Butter is creamier, tastier and spreads easily. It has the right amount of salt
which is liked by all. Its delicious. Its creamy. And its so easy to spread.
Mother Dairy Butter is produced under totally hygienic conditions using Mother
Dairys wholesome milk.
Pack size: 100g and 500g