Introduction

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 longterm. 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 produces mainly three types of products through raw milk, after pasteurizing it. 1. Dried Skimmed milk powder 2. Packaged milk, ice cream, etc 3. Condensed (ghee, butter, etc) Amul initiated the dairy co-operative movement. Today this movement is being replicated in 70,000 villages in over 200 districts of India. It has organized over 10000 village co-operatives. There is a rise in export of amul products. Every day it collects more than 4.5 lakhs litres of milk. During the financial year 2010-11, GCMMF registered impressive topline growth of 22.1%, achieving turnover of Rs. 9774 crores. GCMMF recently initiated its largest distribution expansion exercise to extend its reach to smaller towns and semi-urban areas. Through implementation of its new hub & spoke model of distribution, GCMMF plans to appoint 150 new Super-distributors and extend its reach to 3000 additional smaller towns & semi-urban areas in 2011-12. Mission 2020 Vision: Liberate our farmers from economic oppression and lead them to prosperity. Mission: Dairy co-operatives of Gujarat turnover of Rs 27000crores by the year 2020. Objective: To ensure that the maximum share of the consumers rupee goes back to the milk producers.

SWOT Analysis of Amul dairy products

Strengths
Amul has the reputation of being the largest food brand in India

Amul provides high quality product at low price It provides a varied range of dairy product Grading and packaging of all its products meets international standards Its signature product is the pasteurized milk pouches which ranks as the top in its segment It had an annual turnover of US $2150 million Amul has a robust distribution network: Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors Amul being an Indian company creates a feeling of oneness in the mind of the customers It provides quality and imprints confidence and thus befits loyalty in the minds of the customers since it manufactures only milk and milk products which is purely vegetarian It is aiming at to enter into the rural segment also, which covers a large area of its loyal and prospective customers, which other companies had failed to target and exploit this lucrative opportunity Amul has a huge customer and market base in India with its butter and dairy products and so can easily promote selling of chocolates without fearing of losses and decreasing revenue The prices of chocolates of Nestles are comparatively cheaper as compared to the prices of other companies

Weaknesses It faces a potential high risk due to its highly complex supply chain system It has a strong dependency on its weak infrastructure It has many alliances with the third parties who do not belong to the organized sector which can make it pretty vulnerable There are various big players in the chocolate market, which acts as major competitors restricting their growth and expansion opportunities Capital investment and market capitalization is relatively lower in absolute terms as compared to the amount of capital invested by other companies It suffers with an improper distribution channel across its network in India It has recently reduced its expenditure on promoting and advertising its products through T.V. and hoardings. This might reduce its brand visibility and reduce its sales.

Opportunities

Ability and capability to penetrate international markets and globalization of its products Diversify product portfolio to enter new product categories and expand existing categories like processed foods, chocolates etc There is a lot of potential for growth and development as huge population stay in rural market where other companies are not targeting The chocolate market is at growth stage with very less competition so by introducing new brand and intensive advertising there can be a very good scope in future It should promote Tie-ups with various Food chains.

Threats It has threats from its Competitors like Hindustan Lever and Britannia. The major threat is from other companies who hold the majority share of consumers in Indian market i.e. Cadburys and Nestle It also faces competition from MNCs in butter Growing price of milk and milk products may reduce its volume of sales and profit margin It may face serious issues on capitalizing on its foreign exchange reserve due to the prohibition exerted on its exports of milkpowder There exists no particular brand loyalty in the chocolate market as consumers frequently shift their brands due to changing tastes and preferences. New companies entering in the Indian domestic market like Fantasie fine may pose issues and lot of problems for Amul It faces potential threats from the unorganized sector for milk vendors as of such.

PEST ANALYSIS OF AMUL

P: Political
Since the budget range is decontrolled, no political effects are envisaged. The Increasing per capita income of the whole population is resulting a higher disposable income to the consumer as the purchasing power parity is also rising steadily. The Growing middle class of cities and urbanization of the general population as a whole Low cost of production and economies of large scale production and operating at optimal capacity. Per capita consumption of the entire dairy product consumers is expected to increase in the future Payout to the farmers has also been registered amounting to 23% CAGR in the preceding last 4 years. Increasing gifts and incentives culture to the society The health-conscious appeal to the society by providing Lower cholesterol in its products than Mithais (sweet meat) Will have to reinforce and raise the standard of technology employed to international levels once India is a free economy New and varied diversified products Process innovation and technology Complementary assets to enhance milk production and capacity E-commerce to facilitate promotion and enhance consumer reach

E: Economic

S: Social

T: Technological