1. GCMMF – Gujarat
Cooperative Milk Marketing
Federation Ltd
Group B12

2. Dairy Map of India
High
Medium
Low

3. DAIRY INDUSTRY IN INDIA
• Dairy Cooperatives account for the major share of
processed liquid milk (around 20%)
• 170 Milk Producers’ Cooperative Unions spread
across 22-state cooperative dairy federation.
• Leading brands- Amul (GCMMF), Vijaya (AP), Verka
(Punjab), Saras (Rajasthan), Nandini (Karnataka),
Milma (Kerala) and Gokul (Kolhapur).
• Products : Pouched Milk, Butter, Cheese, Ice-
cream, Flavoured Milk, Ghee, Lassi.

4. Amul
1973 2011 2012-17
Roadmap for
Situation Analysis 2012-17

5. Amul’s Profile
The Amul Model of dairy development is a three-
tiered structure with the dairy cooperative
societies at the village level federated under a
milk union at the district level and a federation of
member unions at the state level.
Establishment of a direct linkage between milk
producers and consumers by eliminating
middlemen
Milk Producers (farmers) control procurement,
processing and marketing
Professional management
The Amul model has helped India to emerge as
the largest milk producer in the world. More than
13 million milk producers pour their milk in 1,
28,799 dairy cooperative societies across the
country. Their milk is processed in 176 District
Co-operative Unions and marketed by 22 State
Marketing Federations, ensuring a better life for
millions.
Source: Amul’s website

6. The Market Model
Economic Socio-
Aspect Cultural
Aspect
Source: Amul’s website

7. Amul’s Market Share
Product Category Market Share in India
Butter 90%
Cheese 80%
Ice-cream 40%
Pouched Milk 25%
Source: The Economic Times, Feb. 12, 2012

8. Operations Info
Scale and Size $2.2 bn. Revenue; Large product
portfolio
Procurement From 3 million farmers; 3.45 bn. Liters
milk
Reach 5000 dealers & 10 lakh retailers
Margins Low-margin business; 2-5%
Source: The Economic Times, Feb. 12, 2012

9. Amul’s Product Portfolio

10. Amul’s Export

11. BCG Matrix Analysis
Market Share
High Low
Stars Question Marks
High
Ice Cream, UHT Milk, Chocolates
Cheese, Flavored Milk,
Market Milk Powders,
Growth
Cash Cows Dogs
Low
Pouch Milk,
Ghee, Butter

12. 4I’s of Amul
Improvement
in Rural
Economy
Impact
Indigenous
Immovation
(Imitation,
Innovation)
Idea

13. Competition
Category Business Environment Competition Growth
Pouched Milk Huge Investment Required ; Mother Dairy 6%
Unorganized sector
Flavored Milk Very high growth Mother Dairy, Nandini 25%
Milk powder High Price ; Export Opportunities Nestle, Britannia 10%
Baby Food Huge Margin, Single Major Player Nestle (95% share) 10%
Ghee Home-made preferred Unorganized market 9%
Butter Consumers increasing favoring low- Britannia 7%
fat varieties
Cheese Opportunities in rural market Britannia, Dabur 15%
Ice Cream Competitive Kwality Walls, Vadilal, Mother Dairy 12%
Paneer Market penetration possible Amul is the only national player 8%
having >50% share of organized
market.
Flavored Yogurt New category and gaining quick Nestle, Danone, Cocoberry 22%
acceptance, considered as a
premium product
Lassi Good preference for unorganized Few organized players, Mother Dairy 13%
sector etc. Major competition is
restaurants.

14. Trends in Competition
Mother Dairy Co-operative roots; strong in NCR
Parag Dairy Fast Growth rate. More than 10%
Nestle Old player; have future plans in dairy segment
HUL Big player with financial muscles
Britannia Strong in cheese market

15. Future Growth
Product Category Indian Market Size 2015
(estimation)
Branded Pouched Milk 50,000 cr. INR
Branded Butter 1200-1400 cr. INR
Branded Cheese 400-500 cr. INR
Branded Ice cream 1500 cr. INR
Flavored Milk 300 cr. INR

16. Trends
• According to Assocham, milk production in India
is likely to reach 190 million tons by 2015 with an
annual turnover of INR 5 lakh crore.
• PE firms could take an interest in private dairies;
supply of capital for expansion
• Brand wars – A+ with Nestle and more.
• Increase in capacity required (current = 9+ million
liters per day)

17. Perceptual Map: Guiding Factor
Societal Impact
Continue/Enter
Discontinue / Do Not Enter
Economic Impact

18. Ansoff Matrix Analysis
Product
Existing New
Market Penetration Product Development
Existing Fat Free Dessert
Fresh Milk
Cooking Chocolate
Ghee, Milk Powders
Markets Soups
Ice Cream
Lassi, Diabetic Products,
Healthy products
New Market Development Diversification
South East Asia and
South East Asia and
Middle East with products like
Middle East with products like
Sterilized Paneer, Cow Ghee,
Srikhand, Paneer & Butter Confectionery items

19. SWOT Analysis

20. Brand Positioning

21. Brand Positioning
• Shift in Focus - Youth
• Amul butter girl – witty topical ads – has been
largely successful. Longest running campaign –
should be continued
• Sponsoring Netherlands in the cricket world cup
• F1 race
• Amul Cafes
• Recently, it re-launched its theme song
(leveraging digital media).

22. Future Roadmap
•Promote sub-branding within the AMUL brand to target high-end
customers
• Shift in focus on youth to be continued
• Go for ‘product development’ using premium products
•Gain greater control over the distribution channel in major markets to
counter threats from upcoming retail formats
•Emphasize Brand Management
•Creation of Strategic Business Units based on distribution channels

23. Future Roadmap
• Increase capacity to (triple) to drive down the prices
• Focus on inbound logistics and outbound logistics to improve the
margins
• Increase dealers from 5000 to 10,000. Retailers from 10 lacs to 12.5
lacs (Uniform increase)
• Focus on Flavored milk and yogurt market. Target 40+% market
share.
• Increase organized market from 15% to 40% (5% every year)
• Increase the number of parlors from 6000 to 12,000. Number of
cafes to 400; Number of stalls at railway stations from 177 to 350
• Product development – Diabetic products. Exit Chocolate market
• Revenue growth from $2.2 bn. To $ 5 bn. in next five years

24. Financials
(INR Cr) 2011 2012 2013 2014 2015 2016 2017
Yoghurt & Curd 2276 2777 3388 4133 5042 6151 7505
Flavoured Milk 892 1115 1394 1742 2178 2722 3403
Total Market 3168 3892 4781 5875 7220 8874 10907
Target Market 1109 1362 1673 2938 3610 5768 7090
Revenues 277 341 469 911 1227 2134 2836
Profit Margin 10% 10% 10% 10% 10% 10% 10%
Profits 28 34 47 91 123 213 284
Expected Revenue
(INR Cr) Market Share Market Size Growth Rate Revenue (2017) 26717 INR Cr
Branded Pouched Milk 40% 56180 6% 22472 5.34 USD bn.
Branded Butter 90% 1602.86 7% 1442.574
Branded Cheese 85% 661.25 15% 562.0625
Branded Ice-Cream 50% 1881.6 12% 940.8
Nutritous Products 20% 363 10% 72.6

25. Financials
Market share
Target Market of total market
2012 25%
1st Phase 35%
2nd phase 50% 2013 28%
3rd Phase 65% 2014 31%
2015 34%
2016 37%
2017 40%

26. THANK YOU!
