Gujrat Co-Operative Milk Marketing Federation

Group :3

GCMMF
2.1 million milk producer in Gujarat 9.31 million in India 15,760 village societies, 15 District Unions 9.4 million liters of milk procured per day Rs. 150 million disbursed in cash daily 48 Sales offices, 5000 Wholesale Distributors, 7 lakh retail outlets Export to 37 countries worth Rs. 150 crores

GCMMF
GCMMF is India's largest food products marketing organisation GCMMF markets and manages the Amul brand. It markets the products, produced by the district milk unions in 30 dairy plants The turnover of GCMMF (AMUL) during 201011 was Rs. 97.74 billion

The Story Behind

Originated in Kaira to counter exploitation by Polson s Dairy(Anand) and establishing Kaira District Cooperative The success of the dairy co-operative movement spread rapidly in other districts in Gujrat Dr. Verghese Kurien and Tribhuvandas Patel were instrumental in spearheading the co-operative and Operation Flood to immense success In 1973 such unions decided to set up a marketing agency as GCMMF The Kaira District Cooperative which had established the brand name Amul in 1955 decided to hand over the brand name to GCMMF (AMUL).

Objectives & Business Philosophy

Objectives:
To serve the interests of milk producers To provide quality products Not to maximize profit as such

Achieved through
Common branding Centralized marketing Centralized quality control Centralized purchases Pooling of milk efficiently

The Structure of the Anand Pattern or Amul Model

State Marketing Federations District Milk Marketing Unions Village Cooperative Societies

Anand Pattern or Amul Model

LEVEL State Marketing Federations DISTINCTIONS All dairies in a state (GCMMF in Gujarat) 22 State Federations in India MEMBERS District level Chairpersons Registrar of cooperatives NDDB representative Technical expert CEO Chairperson of village dairy cooperative societies BOD MD Milk producers Managing committee

District Milk Marketing Unions

Every district in a state 12 district unions in Gujarat 170 unions all over India All villages in a district 72,774 villages in India

Village Cooperative Societies

Anand Pattern or Amul Model

The three-tier structure was set up in order to delegate the various functions, This helps in eliminating not only internal competition but also ensuring that economies of scale is achieved

Distribution
Chillers in proximity of villages Prompt transport to district facilities for further dispatch to consumers/ processing units Chilled trucks to transport processed products Delivery to local chillers by insulated rail tankers and chilled trucks Refrigerators and freezers with retailers and departmental stores to retain freshness

LEVELS Village Cooperative Societies

Main Functions Collection of surplus milk from the milk producers of the village & payment based on quality & quantity Providing support services to the members like Veterinary First Aid, Artificial Insemination services etc. Selling liquid milk for local consumers of the village Supplying milk to the District Milk Union Procurement of milk from the VCS Arranging transportation of raw milk from the VCS to the Milk Union. Conducting training on Cooperative Development for milk producers and conducting specialised skill development & Leadership Development training for VCS staff & Management Committee members. Providing management support to the VCS along with regular supervision of its activities. Establish Chilling Centres & Dairy Plants for processing the milk received from the villages. Selling liquid milk & milk products within the District Process milk into various milk & milk products as per the requirement of State Marketing Federation. Decide on the prices of milk to be paid to milk producers as well on the prices of support services provided to members

District Milk Marketing Unions

LEVELS State Marketing Federations

Main Functions Marketing of milk & milk products processed Establish distribution network for marketing of milk & milk products. Arranging transportation of milk & milk products from the Milk Unions to the market. Creating & maintaining a brand for marketing of milk & milk products (brand building). Providing support services to the Milk Unions & members like Technical Inputs, management support & advisory services. Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions. Decide on the prices of milk & milk products to be paid to Milk Unions. Decide on the products to be manufactured at various Milk Unions (product-mix) and capacity required for the same. Conduct long-term Milk Production, Procurement & Processing as well as Marketing Planning. Arranging Finance for the Milk Unions and providing them technical know-how. Designing & Providing training on Cooperative Development, Technical & Marketing functions. Conflict Resolution & keeping the entire structure intact.

GCMMF Product Portfolio

CATEGORY Liquid Milk Butter PRODUCTS Full fat milk Semi toned milk Fully toned milk Amul Butter Amul Lite, a low fat butter spread Amul Ghee and Sagar Ghee (two different brands), a highly aromatic clarified butter Amu! Spray, infant milk food Amul Milk Powder, instant full cream milk powder Sagar, skimmed milk powder Amulya, dairy whitener Cheese Amul pasteurized processed cheddar cheese Amul cheese spreads in three flavors Amul Mozzarella Cheese, pizza cheese Amul Emmental Cheese, a form of cheese similar to Swiss cheese' Amul Paneer, cottage cheese to be used in Indian curries Amul cheese powder

Milk Powder

GCMMF Product Portfolio

CATEGORY Ice Creams Sweets PRODUCTS Amul Ice Creams AmulShrikhand Amul Mithai Gulab Jamun Amul Mithai Mate, condensed milk Amul Chocolates in a wide variety of flavors Nutramul Dhara Edible Oils, groundnut, vegetable (mustard) Dhara Health, a low cholesterol oil

Chocolates Chocolate Drinks Edible Oils

Fruit and Vegetable Safal fruit drinks based Products Safal tomato ketchup Safal mixed fruit jam *as in year 2000

 Amul had already entered into cheese, sweets, butter and other such market In 1996, entered the business of ice creams Priced at 30% less and as a vegetarian ice cream Gained a market share of 30% by end of 2000 Diversified into edible oils in 1998 and launched Dhara Ventured into fruit based products and introduced yet another brand Safal

Sources of competitive advantage

low cost due elimination of middle men Lean organization and relatively lower pay scales as compared to other MNCs Its scale and scope of operation Strong brand name : Purity and Quality

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