Amul and India’s National Dairy

Development Board

Group T2
-Ashish K Agarwal
-Debasmita Nandy
-Gaurav Mukherjee
-Rahul Ramesh
-Sameep Luthra
Background

• Bombay Milk scheme

▫ Exploitatively low prices

▫ Restriction on exports

▫ Strike by farmers

▫ Formation of Kaira District Co-operative Milk

Producers’ Union Limited (KCMPUL) -1946
 Industry Analysis: Porter’s 5 Forces
New Entrants

Threat of new entrants is high as

there are no entry barriers.

Bargaining power of Competitive Rivalry

Suppliers Bargaining Power of
Competitive rivalry is high due to : Customers
•Presence of local brand and other
Bargaining power of established brands. Bargaining powers of
•High demand for milk & milk customers is high as various
supplier is low as most
products. competitors are present
of the suppliers are
villagers and farmers specially for the products like
chocolate and butter.
belonging to the lower
Low switching costs
income group
Substitute Products

Threat of substitute is high because

of availability of various other
beverages like cold drinks, fruit drinks
3- Tier Structure
State Federation

Marketing & Distribution (Final Consumer)

District- level Co-operatives

Dairy plant, processing, packaging & transportation

Cattle feed, Animal health cover, Artificial

Village
Co-operatives

Insemination
Education
 STRENGTHS
• High quality product with low price
•Wide range of products
• Innovative and effective ad-campaign
•Robust distribution network
•Application of technical manpower
and technology like TQM, E-commerce
OPPORTUNITIES
•Penetrate international market
• Expand existing product categories
•Enter new product category like juices,
mineral water etc.
•Targeting the potential rural market
WEAKNESSES
•Supply chain system being very
complex
• Less average milk productivity
compared international standards
• High dependency on villages with
weak infrastructure
THREATS
•Increasing price
• A very tough competition in the
market with strong competitors like
Hindustan Levers, Nestle, Cadbury
•Inadequate transport facility and
poor conditions of roads
CORE COMPETENCY
•Well established
technological
India” infrastructure
Amul- “The Taste Of Strong top management
•Availability of surplus
cash profits

RESOURCES

leadership
Specialised rural Dr. Kurien’s dynamic
managers-IRMA
CORE COMPETENCY Contd...

chain Wide product

Strong supply range

CAPABILITIES

Vertical Strategic alliances

Integration
 AMUL STRATEGY FRAMEWORK
Strategy

Low cost Differentiation

COST DIFFERENTIATION
Broad

LEADERSHIP
Market Scope

COST FOCUS
Narrow

DIFFERENTIATION
FOCUS
Value Chain Analysis
What make Amul what it is?
▫ Huge base of vegetarian consumers across India

▫ Sharing of benefits

▫ Strong distribution network

▫ Brand identity

▫ Visionary leadership

▫ Powerful vertical integration

Major Issues facing Amul

▫ Growing competition from private organizations

▫ Losing autonomy due to political intervention

▫ Succession dilemma
Questions