Professional Documents
Culture Documents
OF
Amul India
Company Overview
Indias Dairy sector is increasing rapidly from the beginning of The White
Movement in
India. The pathfinder of this movement is the foundation of Indias largest dairy
co-operative society in the state of Gujarat on 1st December, 1946 just before
the independence of India. The
operation initiated on the ground that India is a milk-deficient nation but later on
in 1988 it
suppressed the production capacity of USA.
The story of Amul starts from the backdrop of high demand for milk in Bombay.
The
major source of income of kaira district in early 40s, was milk farming and
selling. The one and
only private milk supplier, at that point of time was Polson Dairy Limited in that
area. Hence a
monopoly was created and the poor farmers were exploited by the private trader.
To take a stand
against this unethical practice they collectively approached to Sardar Vallabhbhai
Patel (Indian
barrister and statesman and one of the leaders on INC) under the leadership of
Tribhubandas K.
Patel. Sardar Vallabhbhai proposed them to stop supplying milk to the traders
and start their own co-operative society and refer them to Shri Moraji Desai
(Indian Activist and 4th Prime Minister
of India). He then held a concourse and came to a conclusion that the cooperative society will
collect the milk first then decide the price according to the quality of the milk. As
the
government was not reacting to their situation they went on strike for a fortnight
and affected the
Bombay Milk Scheme. Then with the help of Tribhubandas Patel and Dr. Verghese
Kurien
(Indian Social Entrepreneur) they lay foundation of Kaira District Co-operative
Milk Producers'
Union Ltd.in Anand. Farmers started selling their milk to the union. With the help
of Dr. H. M.
Dalayas innovation of forming skim milk powder from buffalo milk was the first
time anywhere
in the world contributed on a commercial scale. Within the short span it grows
within the anand
districts the neighboring districts. In 1955 the brand name assigned to the union
Amul. It came
from the Sanskrit word Amulya which means invaluable and reffered to as
Anand Milk Union
Limited. Later on to grow the strength it comes under GCMMF (Gujarat Cooperative Milk
Marketing Foundation) in 1973.
After this movement, Dr. Kurien hailed as Milkman of India. Later on Amul
produce
and supply its products in the USA as well as Canada and Europe.
PRODUCT RANGE
Amul produces a large range of milk products. These products individually cover
the
largest market share of dairy industry.
The parent organization of Amul, GCMMF write-up 85% market share in butter
market,
75% in cheese share market, 63% in infant milk in 2011-12. In the year 2012-13
the group
turnover is rupees 19,100 crore ($3.2 bl). In 2011-12 the turnover was 11,668
crore. The UHT
Milk product exposed growth by 53%, cream by 57%, milk beverages by 27%
and ghee of 31%
collectively with Amul and Sagar.
In future Amul aimed to grow to 30000 crore which is the jump of three fold. In
the
previous accounting year Amul recorded 83% market share of butter market,
63% of infantry
milk, 45% in dairy whitener. In packaged milk market Amul dote on 26% share
i.e. 25000 crore.
Amul earns revenue of 450 crore from exports, mainly skimmed milk powder. In
the last
fiscal Amul exports its milk products worth rupees 140 crore.
MEMBERS OF AMUL
There are 13district co-operative milk producers unions who all are members in
Amul.
Total 15,322 numbers of village societies are there. There are 750 employees of
marketing arm
but the real pool consists of 3 million milk producers.
Zonal offices are at Ahemdabaad, Kolkata, Mumbai, Delhi, and Chennai. Sales
offices are in
Asansol, Agartala, Bangalore, Boisar, Cochin, Coimbatore, Cuttack, Dhaarwad,
Dimapur almost
all over the India. Overseas offices are at Dubai,UAE.
VISION AND MISSION OF AMUL
VISION
Amuls vision is to provide more and more satisfaction to the farmers, employees
and
distributers.
MISSION
We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavor to
satisfy the taste
and nutritional requirements of the customers of the world, through excellence in
marketing by
our committed team. Through co-operative networking, we are committed to
offering quality
products that provide best value for money.
VALUES
Customer orientation
Commitment to producers
Integrity
Co-operation
Excellence
Leadership
Quality
Innovation
Growth orientation
Belongingness
Pride in the organization
Employee satisfaction
CRITICAL EVALUATION
The vision statement states about the satisfaction of farmers, employees and
distributors.
From the vision statement it is derived that the most focus of the co-operative is
on their three
important pillars 1. Farmers: who supplies the raw materials i.e. the milk from. 2.
The
employees: they are working for the co-operative society to meet the demand of
the customers
and to fulfill the needs of the stakeholders. 3. The distributors: they creates link
between the
demand and the supply of the milk and milk products all over the India and
outside India.
A vision statement should be clear and crisp, aspirations for future, forward
thinking. A
vision statement need to inspire and unite the people of the organization and
create value for
organization. The vision statement of Amul is created through the Three Tier
Model of Amul.
The model talks about these three pillars of the organization. the unity and the
aspirational
qualities are there in the vision statement.
At the very beginning of the mission statement WE word is used that indicated
that the
actor in the organization represents themselves as a group. They are not
individuals and they all
jointly moving to fulfill the vision and mission of the organization. They also talks
about the
customers all over the world. They will reach to satisfy all the customers through
nitrous food
and excellence. The organization also indicates the excellent marketing and
networking abilities
of the team. At last they hint about the commitment to deliver the best value for
money. It is
therefore can be conclude that the organizations mission statement covers all
the major areas of
the organization, the qualities, expertise and the abilities. The mission statement
therefore is
appropriate for the biggest co-operative society of India.
ENVIRONMENTAL ANALYSIS
PESTEL
P POLITICAL E ECONOMICAL S SOCIAL T TECHNOLOGICAL EENVIRONMENTAL L - LEGAL
Political Factors:
The ground of the Amul is on politics. At the beginning Polson (the sole trader)
acted
unethical practice of purchasing the milk from the farmers in cheaper rate. Then
with the help of
political strength the co-operative society is being established. During the
course, Indian Political
leaders of INC encourage and supported the co-operative society. There were no
such political
conflict took place till the time with the
Economical Factors:
The year when Amul Co-operative society was formed, India was on growing
stage.
From that point of time, Amul foothold the way of economic development for
India. Since then it
contributes a major portion of the national income and GDP. The market is still
increasing
which will inject more money to the economy. As GCMMF also earn revenue from
foreign
countries like USA, UAE it also supports the economy. Due to globalization and
liberalization
the consumption pattern and demand for product is increased. Indias rank
highest in population
Social Factors:
The social factors influence most for any organization situated in India. India
combines
of different types of cultures and languages so the concurrent effect is different
types of lifestyle
and food habits. Education level is also increasing in India; the demographic
composition of
India is also a n important factor in social environment. It helps in growing the
market.
Technological Factors:
India is a developing country and developing in every sector. The aggressive
development takes place in technology of India. Amul uses this resource to
improve the
distribution channel, supply management, enables e-commerce, automation
process and value
addition.
Environmental Factors:
The product is not made out of any unnatural composition. The base of every
product of
Amul is milk, which is not at all harmful for the environment. So there are no
threats for the co
operative society in respect of environmental factors.
Legal Factors:
The legal factors which work as opportunity for Amul are PFA act, Trademarks,
Industrial Development & Regulation Act. There are threats also like Child Labor
(ILO).
share 7. Affordable price 8. Covers all segments and all class 9. Popular mascot
Amul Girl 10. Abundant availability of milk 11. Encourages to firm more
Weaknesses:
1. Low market share in chocolate segment ( major share is of Cadbury) 2. Some
products fails ( eg. Nutrela ) 3. Limited sales of ice-creams ( most selling ice
cream is Kwality walls) 4. Lagging for advertisement and promotions than other
brands
Opportunities:
1. Scope for value addition 2. Product development 3. Diversification in other
than milk and milk based products 4. Improve the weak segment or product 5.
Reach to the rural areas 6. More export
Threats:
1. Strong competitors ( e.g. Nestle, Cadbury, Mother Dairy, Britannia) 2. Icecream sector is not improved with competition with other competitors (e.g.
Kwality Walls) 3. Economic slowdown and inflation 4. Disease regarding cows and
buffalos
TOWS MATRIX
SO STRATEGIES:
1. Increase value addition in lagging products 2. Develop ice-cream segment
ST STRATEGIES:
1. Increase safety to avoid diseases of the cattle 2. Hold of quality and brand
image that helps to maintains the market share
WO STRATEGIES:
1. Minimizing the effect of less advertisement by reaching out to the rural areas
2. Diversify to increase sales in ice-cream
WAY FORWARD
GCMMF is the oldest and most trusted brand in India as well as outside India.
Since 1946 Amul is serving tirelessly with its huge range of products and new
innovative products. The current revenue of Amul in 19100 crores and at the end
of 2020 it is targeting to 30000 crores. The exports have risen from Rs 95 crore
in 2011-12 to Rs 140 crore in 2012-13 and targeting the exports to rise up
further of Rs 300 crore in FY 2014, out of which Rs 90 crore has already been
achieved. The outcome of a 63 per cent rise over four years was paid to the
farmers, who are the backbone of Amul. Farmers are currently paid at the rate of
Rs 487 per kg of fat in the milk. GCMMF's turnover for 2012-13 was Rs 13,735
crore, up 18 per cent compared to Rs 11,668 crore the year before and the net
profit was Rs 35 crore.