By Group No.

.1 Group Members Kanad kale Deepti anand Gurtej oshan Rajesh karia Saurabh dubey Vinayak chauhan

GCMMF Over View

GCMMF: Gujarat Cooperative Milk Marketing Federation GCMMF is India's largest food products marketing organization. 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. CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.

History of Amul
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India. It is also the world's biggest vegetarian cheese brand.

Amul Model

Facts
Year of Establishment Members No. of Producer Members No. of Village Societies Total Milk handling capacity per day Milk Collection (Total - 2010-11) 1973

17 District Cooperative Milk Producers' Unions (13 Members & 4 Nominal Members)
3.03 Million 15,712 13.67 Million litres per day 3.45 billion litres

Milk collection (Daily Average 2010-11) 9.2 million litres (peak 12 million) Milk Drying Capacity 647 Mts. per day

Cattlefeed manufacturing Capacity

Sales Turnover -(2010-11)

3690 Mts. per day

Rs. 9774 Crores (US $2.2 Billion)

AMULS BUSINESS STRATEGY

TWIN OBJECTIVES

long-term, sustainable growth to its member farmers

value proposition to a large customer base by providing milk and other dairy products a low price

Amul - Business Model

RAW MILK

pasteurization

Condensed

Packaged Milk Ice cream Beverages

Ghee Butter Cream

Dried Skimmed Milk Powder

AMUL SUPPLY CHAIN 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

Wholesalers/C&S Retailers Home Delivery Contractors

CONSUMERS

CONSUMERS

The 3 Cs
Defending againsts HUL(KWALITY WALLS) Gokul & mother`s dairy Cadbury`s, BASKIN ROBBINS etc. Aggressive moves against LOCAL BRANDS
Competitor Customer

Customers extremely satisfied Ready to try more quality products Improved socio-economic conditions Product for different segments

Company

Largest Dairy brand in Asia More than 30 dairy brands Market leader in ghee,ice-cream & butter Very strong supply chain Enjoys Fine reputation Quality with Affordability

Industry Analysis : Porters 5 Forces

Threat of new entrants Is high because There are no entry barriers

Bargaining Power of Customers is High because of Various competitors

Competitive Rivalry is High due to Other brands and Local players

Bargaining Power of Suppliers is low because the suppliers Are rural milk producers

Threat of substitutes is high because of availability of Other products

Market Penetration Strategy

Amul is set to build up 10,000 `Amul Parlours' across the country Amul trying to acquire a shelf in Bharti-WalMart Easy Day chain.

Market Development Strategy

Amul is now shifting its focus from urban to rural markets and smaller towns. Amul is capturing the market of diabetic and health conscious people through sugar free ice-cream, which is a variation of an existing product. Amul is also increasing its market base for milk through a new version the Amul Tazaa. Tazaa is the long-life version of milk which has a longer shelf life as compared to normal fresh milk.

Product Development Strategy

Amul-Cool (milk based cool drink) and Amul-Kool caf Stamina the instant energy whey based sport drink has been launched
packaged buttermilk is aimed to be another noncarbonated cool drink in the Amul Cool range

Diversification Strategy
Concentric Diversification Strategy
Ice cream ranges, Amul Sugarfree and Amul Profile. Identified the working class women as a new segment and has introduced frozen easy to cook stuffed parathas, matar paneer and paneer pakoras which makes them easy to cook quality tasty food in less time.

Improvement Programs
Employees of the GCMMF meet every Friday between 10 to 11 am to discuss quality issues at a depot. Every meeting has a Purpose, Agenda and Limit (PAL).

WHY AMUL IS
Physique : Taste, Quality Personality : Simple, Indian

Relationship : Sociable

Culture : Co-operative, Sharing

Reflection : Value Oriented

Self-Image : Proud Indian, Fun loving

Sales Turnover
Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 80053 US $ (in million) 355 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504 1700

Reasons for Success

Robust Supply Chain The vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large fragmented markets Low Cost Strategy Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money

Success!!

Diverse Product Mix Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya Strong Distribution Network Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. 47 depots with dry and cold warehouses to buffer inventory of the entire range of products.

Technology and e-initiatives New products Process technology Complementary assets to enhance milk production E-commerce.

Amul Relief Trust

GCMMF formed a specific organization named "Amul Relief Trust" (ART) under the Chairmanship of Dr. V. Kurien in 2001 with a donation of Rs. 50 Millions for reconstruction of the school buildings damaged in the 2001 earthquake in the Kutch area. The Trust reconstructed 6 schools damaged by the above earthquake at a cost of Rs. 41.1 millions in Kutch area.

GREEN REVOLUTION
GREEN GUJARAT TREE PLANTATION CAMPAIGN BY MILK PRODUCERS OF DAIRY COOPERATIVES. AMUL Coops plant more than 239.38 lakhs trees. The Village Dairy Cooperative Societies of Gujarat as a mark of respect for our nation decided to an event on every Independence Day and accepted 15th August (Independence Day) as a "Green Revolution Day by Afforestation to Protect Mother Earth from Pollution,Climate change and Global Warming".

THANK YOU !!!!