ANALYSIS OF FINANCIAL ASSETS OF AMUL

COMPANY OVERVIEW
 Anand Milk Union Limited
 Kaira District Milk Producer’s Co-operative
 Agricultural Economy of India: 70%
 Market: India and central Asian countries, Bangladesh, Thailand, Indonesia, Malaysia,
Singapore, etc.
 Then: It started with 250 litres of milk and 2 societies
 Now: It produces 15 lakhs litres milk per day and has 1113 societies and more than 6 lakhs
farmers.
 75th year of Manufacturing
 Story: It reminds us of two village dairy co-operative societies who collected 247 litres of
milk in 1946 and now have grown to over 14000 village dairy co-operative societies
collecting more than 1 crore litres of milk per day. Similarly, the tree plantation drive which
had started with 18.9 lakhs sapling in 2007 has now grown into a mass tree plantation drive
with plantation of 1 crore saplings in 2010 thereby leading the way for greening Gujarat.
GLOBAL SCENARIO
 International market: USA, Nepal, South Africa, Kenya, Bhutan, Australia, Thailand,
Bangladesh & gulf countries.
 Agreement with WalMart and Glaxo
 Growth Rate in International Market: 34%
 Ranked 18th in Milk Processing unit Worldwide
 Gujurat Co-Operative Milk Marketing Federation 2018-19 Annual Growth
Rate(Internationally): Compound Annual Growth Rate(CAGR): 24%
 Awards: The International Dairy Federation has also awarded Amul Green movement as
the Best Environment Initiative in the "Sustainability category" in 2010. It has also been
awarded Srishti's Good Green Governance Award for four consecutive years since
2007.
PROMINENT AWARDS

 2014: Receives prestigious CNN-IBN Innovating for a Better Tomorrow

Award
 2012: Receives Green Globe Foundation Award
 2010: Bags International Dairy Federation Award held in Austria
 2007: Amul's pro-biotic ice-cream bags award at World Dairy Summit
 1999: Receives prestigious Rajiv Gandhi National Quality Award
CONTRIBUTION TO INDIAN
ECONOMY
 8% Increase In Annual Turnover of Previous Year
 14% Growth In Sales of Branded Consumer Products
 41,000 Crores turnover in 2018 which is 10% higher than 2017
 20% CAGR is anticipated for the upcoming five years
 It uses less machinery and more manpower hence increasing
avenues for employment
 Uses the GST Tax to its benefit for increasing sales
 High Turnover and Growth Rate give a flourishing touch to
agricultural economy of India
AMUL ON FDI
 While the Government claimed farmers support on FDI in retail, the country's largest
dairy cooperative and food brand Amul felt such a move will hurt the interest of both
producers and retailers.
 FDI in retail is definitely not going to benefit the farmers is what the managing
director of AMUL believes.
 Farmers get the least returns from the modern trade and the “so called efficiency”
benefits only the large retailers as they constantly drive down the prices.
 Citing the International Farm Comparison Network (IFCN) data the managing director
of AMUL said milk producers in the US got only 38 per cent share of the consumer's
dollar spent on milk, while the rest was earned by the processor and retailer. In the
United Kingdom, the milk producers got only 36 per cent.
 However, in India, the milk producer gets more than 70 per cent of the consumer's
rupee on an average. Moreover, the milk producer affiliated to co-operatives get more
than 80 per cent share of the consumer's rupee.
PRESENT PERFORMANCE OF AMUL

 13TH LARGEST Dairy Organisation in the World

 19.2 CAGR
 187% Growth in Pat 6 Years
 Amul is not listed in BSE because it wants its profits to be distributed
among its farmers
 If one wants to invest in AMUL, One can certainly look at its suppliers,
Example of One is KAIRA CAN COMPANY which is India’s Largest Can
Manufacturing Company and is a subsidiary to Amul as it caters to more
than 90% of Production of Amul: Proxy Investments
SWOT ANALYSIS

 STRENGTH: Invests in Tech,High Production Capacity,

33% Market Share in Ice Cream Industry,Brand Value,
Large Consumer Base, Quality
 WEAKNESS: High Operational Cost, Frequent Legal
Issues
 OPPORTUNITIES: International Expansion
 THREATS: Increased Competition, Growing Trend of
Veganism in India
RECOMMENDATION

 Focus on every product equally

 Provide discount, schemes and offers
 Brand Ambassador for Advertising
 Reduce Price to make it affordable for lower
class