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Economics Project
THE TASTE OF INDIA
(Gujarat co-operative milk marketing
federation)
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DAIRYING IN INDIA: A RETROSPECT
Dairying has been a part of the cultural life of our people since
time immemorial. In the ancient traditions of India, cow was & is not
merely a source of milk and milk products but it is considered sacred
and auspicious. Cow is considered Go Mata and people worship it by
offering water, fruits and flowers. Cow is considered as Kamdhenu---
provider of all needs of a person.
Our Rishis and Munis of yore subsisted on cows milk only.Although they renounced many worldly provisions, they retained cow for
worship and as the supplier of their sustenance. Cow milk is considered
complete food and there are many instances in India where people have
survived on a glass of cow's milk only.
Kheer prepared out of cow's milk is offered as prasad to God.
There are numerous ways in which cow's milk is used as an offering toGod and in various religious practices.
India's rural population value not only cow's milk but its dung also as
purifier and all sacred functions are held in a place where it is washed
with cowdung. Cattle are considered as the main source of draughtpower
for conducting agriculture. Indian agriculture will collapse if cows do not
deliver calves, which later become bullocks and bulls for cultivation
purposes.
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Cow is the hub of our rural life while modern means of
transportation is yet to reach many
of the 5,87,000 villages in India, it
is the bullock which
provides motive power for rural transportation and bullock cart is
considered to be the sinews of rural life. Despite modernisation it still
continues to be main source of rural transportation.
Besides, dairying also plays a dominant role as provider of
employment, particularly in rural areas. Cattle raising needs intensive
labour and at least one member of the family has to be continuously
milking and its protection. With swelling population, cultivation of land
alone cannot provide gainful opportunities of engagement and dairying
has emerged as alternative to crop production for raising their income.
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OVERVIEW
The average milk consumption is around 35 litres per person per
year in Asia, 20 litres per person per year in Africa, 92 litres per person
per year in Latin America, and 300-400 litres per person in Western
Europe. Within countries, consumption varies widely between and within
social groups. While growth of milk output has exceeded the growth
rate of the populations in industrialized economies since 1960, milk
production in the low and middle income tropics has been
increasing at around three per cent a year while, on
average, demand has been increasing at a slightly faster
rate. Demand for milk and dairy products has increased in tropical areas
where people's incomes have been growing. The increasing demand for
milk and dairy products in most low and middle-income countries has
mostly been met by imports. The milk produced in India is distinctly
seasonal. It comes from cows and buffalo in equal proportion, with a
small contribution from goats. Cows produce, on average, 446 litres of
milk annually and buffalo produce 861 litres of milk annually; buffalo milk
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ranges from six to nine per cent fat content. Eighty per cent of all local
milk is consumed in liquid form.
THE INDIAN MARKET - A PYRAMID
India's dairy market is multi-layered. It's shaped like a pyramid
with the base made up of a vast market for low-cost milk. The bulk of
the demand for milk is among the poor in urban areas whose individual
requirement is small, maybe a glassful for use as whitener for their tea
and coffee. Nevertheless, it adds up to a sizable volume - millions of
litres per day. In the major cities lies an immense growth potential for
the modern sector. Presently, the milk distribution network, dispensing
hygienically packed wholesome, quality pasteurized milk, serves barely
778 out of 3,700 cities and towns. According to one estimate, the
packed milk segment would double in the next five years, giving both
strength and volume to the modern sector. The narrow tip at the top is
a small but affluent market for western type milk products. The
effective milk market is largely confined to urban areas, inhabited by
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over 25 per cent of the country's population. An estimated 50 per cent
of the total milk produced is consumed here. The expected rise in urban
population would be a boon to Indian dairying. India, with her sizable
dairy industry growing rapidly and on the path of modernization, would
have a place in the sun of prosperity for many decades to come.
India has become the world's No. 1 milk producing country, with
output in 1999-200 forecasted at 78 million tonnes. In the year 1997,
India's milk production was on par with the U.S. at 71 million tonnes.
Furthermore, the annual rate of growth in milk production in India is
between 5-6 per cent, against the worlds at 1 per cent.
India's annual milk production has more than trebled in the last 30
years, rising from 21 million tonnes in 1968 to an anticipated 80 million
tonnes in 2001. This rapid growth and modernization is largely credited
to the contribution of dairy cooperatives, under the Operation Flood
(OF) Project, assisted by many multi-lateral agencies, including the
European Union, the World Bank, FAO and WFP (World Food Program).
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Marketing of milk, in fact, is quite a complicated task. Milk is
produced in villages but its buyers are in distant urban areas. Milk is a
highly perishable commodity and it cannot be preserved in its natural
form for a long time.
Demand for milk is not all in
fluid form. Local demand
may be only for a portion of
fluid milk. Milk is demanded
for various milk products-
curds, ghee, butter, cheese
and sweets made of milk.
Marketing of milk has to be taken on modern scientific lines, if
the producers of milk are to be ensured a remunerative price for it.
Undertaking marketing of milk on modern lines calls for creating a lot of
marketing and processing infrastructure involving huge finance apart
from expertise. Arranging such a huge finance (for creating milk
marketing and processing infrastructure) is practically impossible for an
individual, more so for a poor milk producer.
SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY
STRENGTHS:
Demand profile: Absolutely optimistic.
Margins: Quite reasonable, even on packed liquid milk.
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Flexibility of product mix: Tremendous. With balancing equipment,
you can keep on adding to your product line.
Availability of raw material: Abundant. Presently, more than 80
per cent of milk produced is flowing into the unorganized sector,
which requires proper channelization.
Technical manpower: Professionally trained, technical human
resource pool, built over last 30 years.
WEAKNESSES:
Perishability: Pasteurization has overcome this weakness partially.
UHT gives milk long life
Logistics of procurement: Woes of bad roads and inadequate
transportation facility make milk procurement problematic. But
with the overall economic improvement in India, these problems
would also get solved.
Problematic distribution: Milk being a perishable commodity,
cannot be stored for a long period of time. Thus the
manufacturers have to provide the distributors with
refrigerators as well as good packaging so that the consumer gets
the milk in the best quantity and quality.
Competition: With MNCs like Nestle and Britannia entering this
industry, competition is becoming tougher day by day. But then
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competition has to be faced as a ground reality. The market is
large enough for many to carve out their niche
OPPORTUNITIES:
Value addition: There is a phenomenal scope for innovations inproduct development, packaging and presentation. Given below are
potential areas of value addition:
o Steps should be taken to introduce value-added products
like shrikhand, ice creams, paneer, pizzas, flavored milk,
and dairy sweets. This will lead to a greater presence and
flexibility in the market place along with opportunities inthe field of brand building.
o Addition of cultured products like yoghurt and cheese lend
further strength - both in terms of utilization of resources
and presence in the market place.
Export potential: Efforts to exploit export potential are already
on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and theMiddle East. Following the new WTO treaty, opportunities will
increase tremendously for the export of agri-products in general
and dairy products in particular.
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THREATS:
Milk vendors, the un-organized sector: The
unorganized producers have no bargaining capacity, no
knowledge of market conditions, are devoid of the services of
the experts and as such incapable of marketing milk in value
added forms
The SWOT analysis shows that the strengths and opportunities far
outweigh weaknesses and threats. Strengths and opportunities are
fundamental and weaknesses and threats are transitory. Any investment
idea can do well only when you have three essential ingredients:
entrepreneurship (the ability to take risks), innovative approach (in
product lines and marketing) and values (of quality/ethics). The Indian
dairy industry, following its delicensing, has been attracting a large
number of entrepreneurs. Their success in dairying depends on factors
such as an efficient yet economical procurement network, hygienic and
cost-effective processing facilities and innovativeness in the market
place. All that needs to be done is: to innovate; convert products into
commercially exploitable ideas.
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DAIRY CO-OPERATIVES IN INDIA
One of the areas where co-operatives have made the greatest
impact is in the dairy sector in India. Today more than six million dairy
farmers belong to more than 60,000 dairy co-operatives across the
country. They have become among the largest and most successful
businesses in India, and generate more than one billion U.S. dollars
annually in earnings for their farmer-members.
This impressive network grew from a small group of farmers in
Gujarat State, who some fifty years ago rebelled against the
exploitative prices, which they were receiving for their milk from a
privately owned dairy in Bombay. Over time the village co-operatives
federated themselves into a regional union, which owned and operated a
processing plant and marketed the dairy products. With development
assistance from many international and national development agencies,
this process was replicated across the country in a project called
"Operation Flood".
The dairy farmers have benefited economically to a great extent.
Not only do they receive fair prices, but also they are paid twice a day
after their milk is delivered and tested. They also share in the proceeds
from marketing their product by way of patronage refunds from their
co-operatives.
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The dairy co-operatives have also put a high emphasis on
educating their members and involving them in the decision-making
process of the co-operative. The milk segment is
dominated by the dairy cooperatives. Gujarat Co-operative Milk
Marketing Federation
(GCMMF) is the largest player. All other local dairy cooperatives
have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in
Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil
Nadu, etc). Other private players include J K Dairy, Heritage Foods,
Indiana Dairy, Dairy Specialties, etc. Amrut Industries, once a leading
player in the sector has turned bankrupt and is facing liquidation.
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OPERATION FLOOD
Operation Flood (OF) is widely held today as a mostly successful
programme launched in our country over the past fifty years. It has got
the unique distinction of being the biggest dairy development
programme of the world in terms of coverage and longevity. It covers
roughly 10 million rural milk producing households all over India and
initially launched on July 1, 1970, it is still underway.
The basic objective of OF was to create a virtual flood of
rurally produced milk in India by helping rural milk producers in 18 milk
sheds in 10 selected states of India to organize Anand pattern dairy
cooperatives. The very rationale behind OF was that milk channel and a
ready remunerative market for the rurally produced milk. The milk
production, procurement, processing and marketing organization was to
be developed on the pattern of Anand model of cooperatives.
The Operation Flood is an integrated programme of the dairy
development in the cooperative sector based on three-tier structure
comprising the primary dairy cooperatives at the village level, milk
producers' union at the district level and apex federations at the state
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level. The main objective of the programme is to build a viable and self-
sustaining national dairy industry capable of meeting the domestic
demand for fresh liquid milk and milk products and competing in the
international arena. The surpluses were used in two ways to speed up
Indian dairy development. First, the donated milk products were used to
reconstitute milk, and therefore provide the major cities' liquid milk
schemes with enough
milk to obtain a commanding share of their markets. Secondly, the funds
realized from reconstitution and sale of donated products were used to
resettle city-kept milch animals and permit their progeny to multiply, to
increase organized milk production, procurement and processing, and to
stabilize the major liquid milk schemes' position in their markets.
The objectives of Operation Flood can be summarized as follows:
To enable each citys liquid milk scheme to restructure and
capture a commanding share of its market.
To identify and satisfy the needs of milk consumers and
producers, so that consumers preferences can be fulfilled
economically and producers can obtain a larger share of the
rupees paid by consumers for their milk.
To facilitate long term productive investment in dairying and
cattle development
To ensure efficient supply of personnel to handle each facet of
the project.
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OF was launched in three phases: -
The Phase-I of the Operation Flood was launched in the 1970s
with assistance from the World Food Programme in the form of food aid
of 126,000 tonnes of skimmed milk powder and 42,000 tonnes of butter
oil. Funds generated through the sale of these commodities were used in
the development of 27 rural milk sheds in 10 states and for setting up
dairies in the rural hinterlands as well as the four milk-starved
metropolitan cities of Mumbai, Delhi, Chennai and Calcutta.
The Phase-II, which began in 1981, helped build a national milk grid,
linking scores of milk sheds in different states with the urban demand
centres and creating the infrastructure required to support a viable
dairy industry. The Operation Flood Phase-III is meant primarily to
consolidate the gains of the earlier phases. The main focus of this phase
is on achieving financial viability of the milk unions and the state
federations. It is being funded by a World Bank loan of US $ 360 million
besides food aid worth Rs. 2, 227 million by the EEC and Rs. 2,063
million generated from the internal resources of the NDDB. With this,
the programme is expected to cover about 170 milk sheds of the
country by organizing some 70,000 primary dairy cooperative societies.
Operation Flood is now in its third stage and involves eight million
dairy farming families. There are 200 milk processing plants in the
cooperative, government and private sectors which receive 11 million
litres of milk per day. Operation Flood dairies market three quarters of
this total. Under Operation Flood scheme, daily supplies of milk are
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collected from over 60,000 village milk procurement centers to meet
consumer demand for drinking milk. This accounts for 5.5 million tonnes
or ten percent of total milk produced. The remaining 90 per cent of milk
is utilized on farm, sold to small operators in nearby towns, or used to
produced ghee or other products. The demands of consumers in the four
major cities of India: Bombay, New Delhi, Calcutta and Madras and the
regional variations in milk supply, led to the establishment of a National
Milk Supply Grid system via train and road tankers.
POST OPERATION FLOOD: -
The programme has attracted worldwide attention because of its
spectacular success as the three phases of Operation flood succeeded
in fulfilling a major part of their objectives. Today, there are 22 states
federations in India, with 170 district level unions, more than 76
thousand village level cooperative societies and 11 million milk producer
members in the different states. These cooperatives collect an average
of 15 million litres of milk everyday. Fresh liquid milk, packed and
branded, is marketed in over 1000 cities and towns in India by these
cooperatives.
Also many developing countries, such as Philippines, Bangladesh
and Sri Lanka, intend to use OF as a model for organizing their own dairy
development programmes. Sri Lanka has indeed hired the services of Dr.
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V. Kurien, the main force behind India's white revolution to emulate the
Operation Flood in that country.
A recent evaluation of the Operation Flood programme by the
World Bank has revealed that it has not only brought about a dairy
revolution in India but has had a multi-dimensional beneficial impact on
the rural masses, especially the poor. Operation Flood had clear benefits
for the poor and women. For those landless people who own or have been
able to purchase a milch animal, it has been a boon. It has facilitated
establishment of 6,000
women's dairy cooperatives to generate higher incomes for women.
Indirectly, it has expanded the number of children attending school
because of the high-income elasticity of demand for education in Indian
villages.
The two key policy changes which had played a role in the success
of the programme were direct financial assistance to the cooperatives
to develop the dairy industry and the move to sell dairy food aid at
commercial prices within India to generate resources for developmental
work. Dumping of the items received, as free gifts in the local market
would have depressed domestic prices, discouraging the local producers
from raising production. It is now clear that with this kind of approach
followed by India even a single commodity project like the Operation
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Flood could have multiple beneficial effects on areas like nutrition,
education and job-creation, besides raising income levels.
SPREAD EFFECTS OF DAIRY COOPERATIVES
Dairy cooperatives are acclaimed as an effective instrument for
economic uplift of the rural poor, as they provide opportunities for
gainful employment and income. The opportunities provided by the dairy
cooperatives for easy sale of milk, periodic payment and incentive bonus
act as stimuli for easy sale of milk, periodic payments and incentivebonus act as for the farmers to take up dairying on a more permanent
and regular basis; and on a larger scale albeit, within the framework of
the farm size investment and fodder resources. The unprecedented
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regular cash flow injected into the rural economy by the dairy
cooperatives has supplied a new framework to the rural economy, which
in itself was an epoch-making event. Increase adoption of dairying has
created a metamorphosis and has led to many desirable changes on the
economy of milk producers-members of co-operatives. Studies
conducted in Gujarat and elsewhere have identified three dimensions of
the spreads-effects of the dairy cooperatives
Economic.
Social.
Peripheral.
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ECONOMIC BENEFITS
Of all the benefits that accrue
due to the development of dairy cooperatives, it is the economic
incentives yielding direct and tangible returns for the milk
producers which provide lasting solution to their problems. The
direct economic impact of the dairy cooperatives on the producers
households are varied and many such as: increase in the number of
milch animals owned, improvement in milk production, higher price,
better income and employment to the family members of the milk
producers and improvements in the productive traits of the animals.
The possession of wet animals by different categories of milk
producers were higher in the village served by cooperatives than in the
villages, which did not have dairy cooperatives.
The milk producers of dairy village obtained significantly higher
milk yield than those of their counter parts in control villages not served
by cooperatives.
The level of adoption of improves animal husbandry practices was
considerably superior in the village served by the cooperatives.
Dairy farming is the important occupation in rural areas. It is an
important income generating source among the landless families which
earned as much as 65% of their total income from dairy occupation.
There was a significant improvement in the price received by the
milk producers of dairy village than that received at the control village.
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The dairy farmers of the dairy village had obtained significantly
higher income than that obtained by their counter parts.
The above findings lead to the conclusion that the milk cooperatives
were instrumental in stepping up the income of the milk producers who
had adopted dairying for generation of income and gainful employment in
rural areas.
SOCIAL BENEFITS
The social dimension of the benefits of cooperative dairying is intangible
and long term in nature. It is in fact the social dimension which
renders the dairy cooperatives more relevant to rural
transformation than even the economic dimension. Some important
social benefits of dairying are outlined below:
It cuts at the very root of the age-old caste system, by providing
means for upward social mobility of the low caste milk producers
and ex-untouchables.
The dairy co-op has stimulated the desire for social participation
of milk producers across social and economic divisions. The
traditional power politics and group rivalry and ethnic conflicts
have been relegated to background.
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It is an instrument of ethnic reshuffle and a great social
equalizer.
The role of women in the traditional rural society had been
consistently undermined and underrated. The milk co-op has made
valuable contribution to enhance the status of rural women. The
happenings in a rural community called Khadgodhra are a
convincing
proof of the potentialities of dairy co-op in changing the role of
women folk.
Rural dairy co-operatives are an effective means to fight rural
poverty. Poverty is mostly confined to certain sections the rural
society who are in the lower rungs of the social ladder. It is this
section which is largely benefited by the milk co-op. regular
income from sale of milk has enlarged their perception on saving
and investment and enhanced their levels of poverty aspirations.
The rural co-op introduces concepts of organization and
democratic management of the villages. This concept of
organization and management of an economic institution is being
applied to other facets of life and other social and economic
actions
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The perception of health and family planning has vastly changed
as a result of the health care and veterinary services undertaken
by dairy co-op.
The dairy co-operatives have a great educative value to the rural
masses. The various educational and extension media such as
newsletters, film shows, demonstrations etc. act as a constant
source of education and information.
INDIRECT BENEFITS
The dairy cooperatives have the capacity to generatesubstantial employment opportunities in rural areas. Apart from
providing employment to the milk producing families each milk
union employs hundreds of skilled and unskilled labours and
every village society employs 3 to 10 persons depending upon thevolume of milk handed.
The development of dairying on cooperatives lines places at thedisposal of the community a network of institutions which are
the points for collective actions, collective bargaining, agencies
for procuring and supplying technical inputs and hiring technical
personnel and in short, making available to the producers all theeconomies of the large scale dairying, even to the poorest
producer. It is this cooperatives institutional infrastructure,
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which is responsible for fulfilling the aspirations of rural
producers by innovation and change.
Dairy development also requires the supportive infrastructure,which are developed as a result of the dairy projects. Cattle
feed plants; factories to produce milk cans, testing equipments,
and development of transportation are the indirect and ancillary
industries, which crop up as a result of dairy development. It
also demands for services such as; banking, insurance,
electricity, appliances, repairs and maintenance, furniture and
fixtures.
The creation of public institutions and aid to welfare activitiesand public amenities is yet another dimension of the spread-
effects of
the cooperatives dairies. The primary cooperatives and district
unions have programmes to undertake the creation of such
institutions like kindergarten, primary schools, roads, clinics,
hospitals, water supply schemes, maternity homes, wells, street
lights, public conveniences, libraries and such other welfare
measures.
The successful working of dairy cooperatives and theirmodernisation influences the technical modernisation of rural
areas in a variety of ways. Besides the ancillary industries, the
production and marketing of other agricultural and animal
husbandry products gets modernized on the lines of the milk
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producers' cooperatives and developed strategy is adopted for
procurement, processing and marketing.
In a nutshell, dairy cooperatives are faced with a multiplicity of
problems Economic, social, managerial, political and the like. However
there are success stories of dairy cooperatives such as AMUL.
THE AMUL STORY
In the 1940s, in the district of Kaira in the State of Gujarat,
India, a unique experiment was conducted that has become one of the
most celebrated success stories of India. At that time, in Gujarat, milk
was obtained from farmers by private milk contractors and by a private
company, Polson's Dairy in Anand, the headquarters of the district. The
company had a virtual stranglehold on the farmers, deciding the pricesboth of the procured as well as the sold milk. The company arranged to
collect, chill and supply milk to the Bombay Milk Scheme, which supplied
milk to the metropolis of Bombay, and to cities in Gujarat. Polson's Dairy
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also extracted dairy products such as cheese and butter. Polson's Dairy
exploited its monopoly fully; the farmers were forced to accept very low
prices for their products, and the decisions of the company regarding
the quality and even the quantity of the milk supplied by the farmers
were final.
In 1946, inspired by Sardar Vallabhbhai Patel, a local farmer,
freedom fighter and social worker, named Tribhuvandas Patel, organised
the farmers into co-operatives, which would procure milk from the
farmers, process the milk and sell it in Bombay to customers including
the Bombay Milk Scheme. This was known as Kaira District Co-operative
Milk Producers' Union Limited.
Purely by chance, in 1949, a mechanical engineer named Verghese
Kurien, who had just completed his studies in
engineering in the USA, came to India and was
posted by the Government of India to a job at
the Dairy Research Institute
at Anand. Initially he merely provided technical assistance in
repairing, maintaining and ordering new equipment but subsequently he
became involved with the larger sociological issues involved in organising
the farmers into co-operatives and running these co-operatives
effectively.
In 1955, KDCMPUL changed its name to Anand Milk Union Limited,
which lent itself to a catchy abbreviation, Amul, which meant priceless
in Sanskrit. The word was also easy to pronounce, easy to remember and
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carried a wholly positive connotation. It became the flagship brand name
for the entire dairy products made by this union.
The most important feature of these co-operatives is that they
are run purely as farmers' co-operatives, with all the major decisions
being taken by the farmers themselves. The co-operatives are not 'run'
by a separate bureaucracy with vested interests of its own; the farmers
are truly in charge of their own decisions. Any farmer can become a
member by committing to supply a certain quantity of milk for a certain
number of days in a year and shall continue to
be a member only if he keeps up this
commitment. Each day, the farmers (or
actually, in most cases, their wives and
daughters) bring their milk to the village
collection centres where quantity of milk is
checked in full view of all and quality (milk fat content) is checked using
a simple device, again in full view of all. The farmers are paid in the
evening for the milk they supplied in the morning, and in the morning for
the evening's milk. This prompt settlement in cash is a great attraction
to the farmers who are usually cash starved.
Thanks to the above system, there are no disputes regarding
quantity or quality of the milk supplied by each farmer.
A variety of support services are also provided to enable the
farmers continue selling milk of adequate quality and to avoid disasters
such as the death of their cattle (for a family owning just one or two
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cattle and depending on its/their milk for their income, death of a cow
could indeed be a disaster). The farmers are progressively given new
services such as
Veterinary care for their cattle
Supply of good quality cattle feed Education on better feeding of cattle
Facilities for artificial insemination of their cattle.
With good prices paid for their milk, raising milch cattle could become
a good supplementary source of revenue to many households. The co-operatives were expanded to cover more and more areas of Gujarat
and in each area, a network of local village level co-operatives and
district level co-operatives were formed on a pattern similar to that at
Anand (the so called Anand Pattern).
In 1954, Amul built a plant to convert surplus milk produced in the cold
seasons into milk powder and butter. In 1958, a plant to manufacture
cheese and one to produce baby food were addedfor the first time
in the world, these products were made from buffalo milk. Subsequent
years saw the addition of more plants to produce different products.
Starting from a
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daily procurement of 250 litres in 1946, Amul had become a milk giant
with a large procurement base and a product mix that had evolved by
challenging the conventional technology.
On his visit to Anand in 1965, the then Prime Minister of India, Lal
Bahadur Shastri, was impressed by what he sawa system thatprocured, processed and delivered high quality milk to distant markets
cost efficiently. Shastri could also see the difference that the income
from milk had made to the standard of living of farmers in the area.
What impressed him the most was that Amul had done all this without
government assistance, in marked contrast to a number of government
sponsored dairy programmes that were doing poorly in terms ofprocuring and marketing good quality milk and boosting farmers'
incomes. Shastri asked Dr Kurien to replicate Anand's success all over
India.
A pattern similar to the Anand Pattern was to be built in other states
of India. This was carried out under a programme launched by the
Government of India, entitled 'Operation Flood'. The operation was
co-ordinated by the National Dairy Development Board (NDDB), a body
formed by the Government of India with this specific objective.
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STRUCTURE OF THE ANAND PATTERN
The basic unit in the Anand Pattern is the village milk producers'
co-operativea voluntary association of milk producers in a village who
wish to market their milk collectively. All of the village milk producers'
co-operatives (primaries) in a district are members of their district co-
operative milk producers' union. Every milk producer can become a
member of the co-operative society. At a general meeting of members,
representatives are selected to form a managing committee, which
frames the policies of the society to govern the day-to-day affairs
relating to milk. Milk collection, the testing for milk fat content, and
sale of cattle feed etc. is handled by paid employees from the same
village. Each society also provides artificial insemination (AI) services
and veterinary first aid (VFA). Thus, these primaries also generate local
employment in the rural community. Each producer's milk is tested for
fat percentage (many also measure solids-not-fat) and is paid for, on the
basis of the quality of the milk. The primary milk producers' societies
are affiliated to a district union, which owns and operates a
feeder/balancing dairy cattle feed plant and facilities for production of
semen and its distribution. The union also operates a network of
veterinary services to provide routine and emergency services for animal
health care. The chairpersons of village societies elect the board of
directors of the union, which frames the policies for the day-to-day
management of the union's centralised facilities for milk collection,
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processing and marketing and also technical inputs. Each union is
managed professionally by a managing director, who reports to the
elected chairman
and a board of directors. The dairy, owned by a union, usually has
a milk processing plant to convert seasonal surpluses of liquid milk into
milk powder and other conserved products. With the help of the dairy
plant, the union is able to ensure that the milk producers get 8090% of
the lean season price even in the flush season. The farmers are,
therefore, able to get a good price for the bulk of the milk that is
produced in the flush season. This has enabled the farmers to get 20
40% higher prices than they would have if they had not been a part of
the co-operative system. Before the co-operatives, the middlemen
usually paid only 6070% of the lean season price in the flush season.
Earlier the bulk of out-of-pocket
expenditure on milk production was for the purchase of cattle feed
ingredients, such as oilseed cakes, cottonseed etc. The cattle feed plant
owned and operated by the co-operative is able to provide nutritionally
balanced cattle feed at prices 40% lower than the prices of traditional
feeds. The village milk producers' co-operative societies (primaries)
market this cattle feed. Milk producers are able to substantially
increase their returns from milk production because of better returns
for their milk and lower feeding costs. The milk collected from the
village is usually sent to the co-operative dairy using trucks hired by the
co-operative union. Each co-operative dairy tries to market the bulk of
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its milk as liquid milk and converts surplus milk into products with a
longer shelf life. Professional managers employed by the co-operative
ensure that they get the best returns for their produce. The profits
made by the dairy are redistributed to the milk producers as a
subsidiary payment. Many societies are able to pay substantial amounts
as bonuses to their milk
producers, based on the proportion of business contributed to the
co-operatives.
Today in Gujarat, under the Anand Pattern system, there are 11thousand villagelevel co-operatives with atotalmembership of2.1 million milkproducersaffiliated to 12
district levelunions . Theseunions federateinto a state levelapex marketing organisation known as the Gujarat Co-operativeMilk Marketing Federation (GCMMF).
Members: 13 district cooperative milk producers' Union
No. of Producer Members: 2.79 million
No. of Village Societies: 13,328
Total Milk handling capacity: 11.22 million litres per day
Milk collection (Total - 2008-09): 3.05 billion litres
Milk collection (Daily Average 2008-09): 8.4 million litres
Milk Drying Capacity: 626 Mts. per day
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Cattlefeed manufacturing Capacity: 3500 Mts per day
The GCMMF was established in 1973 with the objective ofproviding the milk producers of Gujarat with their own marketingand distribution network. This aimed to give them access to the
most important link in the system-the customer. The farmers hadrealised that marketing was the key to the success of the AnandPattern and to their success when they had control over themarketing system. The
results are evident. Today, GCMMF is India's largest foodproducts marketing organisation with annual sales turnoverexceeding Rs 22 billion (about US$ 483.5 million).
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OBJECTIVES OF GCMMF
The main stakeholder of GCMMF is the farmer member for whose
welfare GCMMF exists. GCMMF states that its main objective isthe 'carrying out of activities for the economic development ofagriculturists by efficiently organising marketing of milk and dairyproduce, veterinary medicines, vaccines and other animal health
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Sales Turnover Rs (million) US $ (in million)
1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 10502007-08 52554 1325
2008-09 67113 1504
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products, agricultural produce in raw and/or processed form andother allied produce'.
GCMMF aims to market the dairy and agricultural products of co-operatives through:
common branding
centralised marketingcentralised quality controlcentralised purchases andefficient pooling of milk.
GCMMF has declared that its business philosophy is as follows:
To serve the interests of milk producers andTo provide quality products that offer the best value toconsumers for money spent.
The biggest strength of GCMMF is the trust that it has created inthe minds of its consumers regarding the quality of its products.Amul stands for guaranteed purity of whatever products itproduces. None of its products are adulterated. In India, wheresuch trust is hard to come by, this could provide a central anchorfor GCMMF's future business plans.
ORGANISATIONAL STRUCTURE OF GCMMF
It all started in December 1946 with a group of farmers keen to freethemselves from intermediaries, gain access to markets and therebyensure maximum returns for their efforts.
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Based in the village of Anand, the Kaira District Milk Cooperative Union(better known as Amul) expanded exponentially. It joined hands withother milk cooperatives, and the Gujarat network now covers 2.12 millionfarmers, 10,411 village level milk collection centers and fourteen districtlevel plants (unions) under the overall supervision of GCMMF.
There are similar federations in other states. Right from the beginning,there was recognition that this initiative would directly benefit andtransform small farmers and contribute to the development of society.
Markets, then and even today, are primitive and poor in infrastructure.Amul and GCMMF acknowledged that development and growth could notbe left to market forces and that proactive intervention was required.Two key requirements were identified.
The first, that sustained growth for the long term would depend onmatching supply and demand. It would need heavy investment in thesimultaneous development of suppliers and consumers.
Second, that effective management of the network and commercialviability would require professional managers and technocrats.
To implement their vision while retaining their focus on farmers, ahierarchical network of cooperatives was developed, which today formsthe robust supply chain behind GCMMF's endeavors. The vast andcomplex supply chain stretches from small suppliers to large fragmentedmarkets.
Management of this network is made more complex by the fact thatGCMMF is directly responsible only for a small part of the chain, with anumber of third party players (distributors, retailers and logisticssupport providers) playing large roles.
Managing this supply chain efficiently is critical as GCMMF'scompetitive position is driven by low consumer prices supported by a lowcost system.
GCMMF is a lean organisation, a strategy that is believed to
provide it with a cost advantage. At its headquarters in Anand, four
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general managers (GMs) and four assistant general managers (AGMs)
assist the managing director (MD). The four AGMs look after the
functions of marketing, systems, co-operative services and technical
projects, respectively. The four GMs are in charge of marketing (dairy
products), human resources development and marketing (Dhara and new
business), finance and quality assurance, respectively.
The whole country is divided into five zones, each headed by a zonalmanager responsible for the sales of all products within his zone. Thesemanagers report to the MD but functionally each also reports to thevarious AGMs/GMs at the headquarters. There are 50 sales officesspread across the country (of which only two are in Gujarat); a salesmanager heads each office and is assisted by sales officers and field
salespersons. The entire country has been represented in thisstructure. GCMMF has one overseas office in Dubai.
THE DISTRIBUTION WORK
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Amul products are available in over 500,000 retail outlets across Indiathrough its network of over 3,500 distributors. There are 47 depotswith dry and cold warehouses to buffer inventory of the entire range ofproducts.
GCMMF transacts on an advance demand draft basis from its wholesale
dealers instead of the cheque system adopted by other major FMCGcompanies. This practice is consistent with GCMMF's philosophy ofmaintaining cash transactions throughout the supply chain and it alsominimizes dumping.
Wholesale dealers carry inventory that is just adequate to take care ofthe transit time from the branch warehouse to their premises. This
just-in-time inventory strategy improves dealers' return on investment(ROI). All GCMMF branches engage in route scheduling and havededicated vehicle operations.
UMBRELLA BRAND
The network follows an umbrella branding strategy. Amul is the commonbrand for most product categories produced by various unions: liquidmilk, milk powders, butter, ghee, cheese, cocoa products, sweets, ice-cream and condensed milk.
DEVELOPING DEMAND
At the time Amul was formed, consumers had limited purchasing power,and modest consumption levels of milk and other dairy products. ThusAmul adopted a low-cost price strategy to make its products affordableand attractive to consumers by guaranteeing them value for money.
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INTRODUCING HIGHER VALUE PRODUCTS
Beginning with liquid milk, GCMMF enhanced the product mix throughthe progressive addition of higher value products while maintaining the
desired growth in existing products.
Despite competition in the high value dairy product segments from firmssuch as Hindustan Lever Nestle and Britannia GCMMF ensures that theproduct mix and the sequence in which Amul introduces its products isconsistent with the core philosophy of providing milk at a basic,affordable price.
Amul's sub-brands include variants such as Amulspray, Amulspree,
Amulya and Nutramul. The edible oil products are grouped around Dharaand Lokdhara, mineral water is sold under the Jal Dhara brand whilefruit drinks bear the Safal name.
By insisting on an umbrella brand, GCMMF not only skillfully avoidedinter-union conflicts but also created an opportunity for the unionmembers to cooperate in developing products.
MANAGING THE SUPPLY CHAIN
Even though the cooperative was formed to bring together farmers, itwas recognised that professional managers and technocrats would berequired to manage the network effectively and make it commerciallyviable.
COORDINATION
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Given the large number of organisations and entities in the supply chainand decentralised responsibility for various activities, effectivecoordination is
critical for efficiency and cost control. GCMMF and the unions play amajor role in this process and jointly achieve the desired degree ofcontrol.board. The board is drawn from the heads of all the unions, andthe boards of the unions comprise of farmers elected through villagesocieties, thereby creating a situation of interlocking control.
The federation handles the distribution of end products andcoordination with retailers and the dealers. The unions coordinate thesupply side activities.
These include monitoring milk collection contractors, the supply ofanimal feed and other supplies, provision of veterinary services, andeducational activities.
MANANGING THIRD PARTY SERVICE PROVIDER
From the beginning, it was recognised that the unions' core activity layin milk processing and the production of dairy products. Accordingly,marketing efforts (including brand development) were assumed byGCMMF. All other activities were entrusted to third parties. Theseinclude logistics of milk collection, distribution of dairy products, sale ofproducts through dealers and retail stores, provision of animal feed, andveterinary services.
It is worth noting that a number of these third parties are not in theorganized sector, and many are not professionally managed with little
regard for quality and service.
This is a particularly critical issue in the logistics and transport of aperishable commodity where there are already weaknesses in the basicinfrastructure.
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ESTABLISHING BEST PRACTICES
A key source of competitive advantage has been the enterprise's abilityto continuously implement best practices across all elements of thenetwork: the federation, the unions, the village societies and thedistribution channel.In developing these practices, the federation andthe unions have adapted successful models from around the world. Itcould be the implementation of small group activities or quality circles atthe federation. Or a TQM program at the unions. Or housekeeping andgood accounting practices at the village society level.
More important, the network has been able to regularly roll outimprovement programs across to a large number of members and theimplementation rate is consistently high.
For example, every Friday, without fail, between 10.00 a.m. and 11.00a.m., all employees of GCMMF meet at the closest office, be it adepartment or a branch or a depot to discuss their various qualityconcerns.
Each meeting has its pre-set format in terms of Purpose, Agenda andLimit (PAL) with a process check at the end to record how the meetingwas conducted. Similar processes are in place at the village societies,the unions and even at the wholesaler and C&F agent levels as well.
Examples of benefits from recent initiatives include reduction intransportation time from the depots to the wholesale dealers,improvement in ROI of wholesale dealers, implementation of Zero StockOut through improved availability of products at depots and also theimplementation of Just-in-Time in finance to reduce the float.
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Kaizens at the unions have helped improve the quality of milk in terms ofacidity and sour milk. (Undertaken by multi-disciplined teams, Kaizensare highly focussed projects, reliant on a structured approach based on
data gathering and analysis.)For example, Sabar Union's records show areduction from 2.0% to 0.5% in the amount of sour milk/curd receivedat the union.The most impressive aspect of this large-scale roll out isthat improvement processes are turning the village societies into
individual improvement centers.
TECHNOLOGIES AND E-INITIATIVES
GCMMF's technology strategy is characterized by four distinct
components: new products, process technology, and complementaryassets to enhance milk production and e-commerce.
Few dairies of the world have the wide variety of products produced bythe GCMMF network. Village societies are encouraged through subsidiesto install chilling units. Automation in processing and packaging areas iscommon, as is HACCP certification. Amul actively pursues developmentsin embryo transfer and cattle breeding in order to improve cattle qualityand increases in milk yields.
GCMMF was one of the first FMCG (fast-moving consumer goods) firmsin India to employ Internet technologies to implement B2C commerce.
Today customers can order a variety of products through the Internetand be assured of timely delivery with cash payment upon receipt.
Another e-initiative underway is to provide farmers access to
information relating to markets, technology and best practices in thedairy industry through net enabled kiosks in the villages.
GCMMF has also implemented a Geographical Information System (GIS)at both ends of the supply chain, i.e. milk collection as well as themarketing process.
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Farmers now have better access to information on the output as well assupport services while providing a better planning tool to marketingpersonnel.
GCMMFs GROWTH CHART
Even at the time of its formation, GCMMF had three majorproducts in its portfolio: liquid milk, butter and milk powder.Gradually, many new products were added to its range, largely milkderivatives. In liquid milk alone, it sells full cream milk, semi-skimmilk and skim milk; these products are labelled and sold in readilyidentifiable pouches. By reducing the fat content of milk, not onlycan GCMMF sell the fat derivatives (such as cream and butter) butalso the resultant skimmed milks can be made available at cheaper
prices, so that poorer people can also afford to drink milk. In the1970s, Amul introduced its processed cheddar cheese, a maltbased beverage called Nutramul and chocolates. In 1983, cheesespread was launched by GCMMF. In the same year, it also enteredthe sweet product market (milk based) through the introduction ofAmul shrikhand, a sweetish sour item produced from milk and curd(a form of yoghurt). Amulya, a dairy whitener was introduced and itsoon became the market leader. In the 1990s, Amul introduced avariety of new products: a condensed milk called Amul Mithaimate;
Amul Lite, a low-fat, low cholesterol spread; and Amul ice cream.
In 1996, Amul launched its Amul brand ice cream. India's ice creammarket was estimated to be worth around Rs 8 billion in the year2000 (about US$ 175.8 million). GCMMF launched its ice creams in
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fourteen flavours in the city of Mumbai (Bombay) and GujaratState. At launch, prices were about 30% lower than the prevailingprices and GCMMF also emphasised that the ice cream did notcontain any gelatin. In less than a year, Amul ice cream commandeda market share of about 55% in Gujarat and 30% in Mumbai; by the
year 2000, its share in India as a whole had reached 30%. In 1997,Amul achieved further success when it managed to get various co-
operatives in the country, trying to launch their own ice creambrands, to sell all their ice creams under the Amul brand name.This enabled GCMMF to benefit from the capacity of many of themore than 170 co-operative unions in the country, with a milk
procurement of more than 15 million litres/day, located close tothe markets.
By the year 2000, its product range was truly expansive: threevarieties of milk, flavoured milk, buttermilk, four varieties of milkpowder, two varieties of butter, five varieties of cheese, twovarieties of ghee (clarified butter), chocolates, chocolate drinks,sweets, ice cream, edible oils and fruit and vegetable based
products. The latest additions to the range of brands marketed byGCMMF are Masti Dahi (curd) and Amul Taaza (long-life milk). Inthe -/year 19992000, GCMMF had a total turnover of Rs 22.2billion (about US$ 550 million).
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AMUL PRODUCTS
Breadspreads:
Amul Butter
Amul Lite Low Fat Breadspread
Amul
Britannia
Verka
Others
Amul plans to protect its dominance in low-margin market with price.Major Competitors include Britannia, Verka & Nestle. While
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Britannia is focusing on just top 30 cities, Nestle outsources theproduct to complete its dairy range.
BUTTER PRICES
Brand 100gm 500 gm
T.P. M.R.P T.P. M.R.P
Amul 11.92 13.00 57.78 63.00MothersDairy
11.82 13.00 57.27 63.00
Nestle 11.87 13.00 57.53 63.00
Britannia 11.80 13.00 57.50 63.00
Note: T.P.- Trade Price, M.R.P Maximum retail price
Cheese Range:
Amul Processed Cheese Spread
Amul
Britannia
Others
Amul Pasteurized Processed Cheddar Cheese Amul Mozarella Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese) Utterly Delicious Pizza
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0
10,000
20,000
30,000
40,000
50,000
Amul Pizza Hut Nirulas Domino's
Amul
Pizza Hut
Nirulas
Domino's
Mithaee Range (Ethnic sweets):
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix
UHT Milk Range:
Amul Taaza 3% fat Milk Amul Gold 4.5% fat Milk Amul Slim-n-Trim 0% fat milk Amul Chocolate Milk Amul Fresh Cream Amul Snowcap Softy Mix
Amul
Nestle
Vijaya
Goodlife
Saras
Others
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Amul plans to develop the white milk market. It plans to capture majormarkets.
Pure Ghee:
Amul Pure Ghee Sagar Pure Ghee
Dhara Edible Oils:
Dhara Refined Vegetable Oil Dhara Groundnut Oil Dhara Mustard Oil
Dhara Health Refined Sunflower Oil Dhara Fit-n-Fine Refined Soyabean Oil
Infant Milk Range:
Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 ( 6 months above) Amulspray Infant Milk Food
Amulspray
Lactogen
Others
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Amul 2 is poised to create a dent in market leader Nestle's fort. Amulrecently entered the infant food market by introducing Amul 1, aweaning infant milk product.
The non-weaning milk food market is currently dominated by Nestle withsub-brands like Cerelac and Nestum. Priced at about Rs 55 for a 500gms pack, Nestle as of now enjoys a near monopoly in this segment. Amul
2 will, however, be priced at about Rs 44 for 500 gms.
The Rs 2300-crore GCMMF aims to plant Amul 2 to take on Nestle withthis distinct price advantage. Amul 2 is priced a good 20 per cent lessthan the products offered by Nestle.
Milk Powders:
Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener
Amulya
Nestle
Britannia
Others
Sweetened Condensed Milk:
Amul Mithaimate Sweetened Condensed Milk
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Amul
Nestle
Amul plans to emphasize price-leadership to drive Mithai-Mate tomarket leader.
Fresh Milk:
Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardised Milk 3% fat Amul Smart Double Toned Milk 1.5% fat
Curd Products:
Amul Masti Dahi (fresh curd) Amul Butter Milk
Amul Ice creams
The following table gives the list of Amul ice creams currently beingsold in the market
Royal Treat Range (Rajbhog,Cappuchino, Chocochips,Butterscotch, Tutti Frutti)
Nut-o-Mania Range (KajuDrakshi, Kesar Pista, RoastedAlmond, Kesar Carnival,Badshahi Badam Kulfi, Shista
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Pista Kulfi)
Utsav Range (Anjir, RoastedAlmond)
Simply Delicious Range(Vanilla, Strawberry,Pineapple, Rose, Chocolate)
Nature's Treat (AlphansoMango, Fresh Litchi, Anjir,Fresh Strawberry, BlackCurrant)
Sundae Range (Mango, BlackCurrant, Chocolate,Strawberry)
Millennium Icecream (Cheesewith Almonds, Dates withHoney)
Milk Bars (Chocobar, MangoDolly, Raspberry Dolly, ShahiBadam Kulfi, Shahi PistaKulfi, Mawa Malai Kulfi, GreenPista Kulfi)
Cool Candies (Orange, Mango) Cassatta Tricone Cones (Butterscotch,
Chocolate) Megabite Almond Cone
Frostik - 3 layer chocolateBar
Fundoo Range - exclusivelyfor kids
SlimScoop Fat Free FrozenDessert (Vanilla, Banana,Mango, Pineapple)
Amul plans to expand its reach. This will be achieved by
Expanding market with Snowcap (the ice cream mix). Thecompanys immediate objective is to create a market for ice
cream mixes. Launching Fundoo to combat HLLs Max.
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The total size of ice cream industry is around Rs 15-16 billion; around30-32% is in the hands of organized sector valued at Rs4.9 billion, restall is with the unorganized sector.
The Indian Ice cream market is dominated by a large number of smalllocal manufacturers and regional players. There are an estimated 150manufacturers in the organized segment, which accounts for 30-35% of
sales and about 2000 units in the unorganized market.
In the organized segment, the significant brands are Kwality Walls,Vadilal, Amul, Mother Dairy and Baskin Robbins.
Major National Players Brands
Hindustan Lever Kwality Walls, Dairy Classic, Max,Cornetto, Magnum
Vadilal International Vadilal, Dairy Fresh
GCMMF/Other Milk Co-operatives
Amul, Mother Dairy
Maharashtra Dairy Products Baskin Robbins
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Region Brands
East Tulika, Rollicks (Induss Ice creams)
West Nature World, Pastonji, Naturals (in Mumbai only),
Dinshaw's (in Maharashtra only),
Havmor (in Gujarat only), Yum of Dairy Den (in Gujaratonly)
North Mother Dairy, Nirula's
South Arun (Hatsun Foods), Joy, Nandini(Karnataka only)
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Hindustan Lever has a market share of around 40%, represented mainlyby Kwality Walls brand. Amul is the second largest player at the nationallevel, with an estimated market share of 27% and is rapidly gainingmarket share. Vadilal is another player in the national market with 8-9%of the market share but that too is shrinking.
HLL
Amul
Mother Dairy
Others
Chocolate & Confectionery:
Amul Milk Chocolate Amul Fruit & Nut Chocolate Amul Eclairs
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Cadbury
Nestle
Amul
Campco
AMULs EXPORT
GCMMF is India's largest exporter of Dairy Products. It has beenaccorded a "Trading House" status. GCMMF has received the APEDAAward from Government of India for Excellence in Dairy ProductExports for the last 11 years.
The major export products are:
Consumer Packs
Amul Pure Ghee
Amul Butter
Amul Shrikhand
Amul Mithaee Gulabjamun
Nutramul Brown Beverage
Amul Cheese
Amul Malai Paneer
Amul UHT Milk (Long Life)
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Amul Gold Milk
Amul Taaza Double Toned Milk
Amul Lite Slim and Trim Milk
Amul Fresh Cream
Bulk Packs
Amul Skimmed Milk Powder
Amul Full Cream Milk Powder
Many of the productsavailable in the USA, Gulf Countries and Singapore
AMULs PARLOUR
Amul has recently entered into direct retailing through "Amul UtterlyDelicious" parlours created in major cities Ahmedabad, Bangalore,Baroda, Delhi, Mumbai, Hyderabad and Surat. Amul has plans to create alarge chain of such outlets to be managed by franchisees throughout the
country. We have created Amul Parlours at some prominent locations inthe country, which are run by the company or its wholesale dealers
"Amul Utterly Delicious" parlours are an excellent business opportunityfor investors, shopkeepers and organizations. In order to come closer tothe customer, we have decided to create a model for retail outlets,which would be known as "Amul Preferred Outlets"(APO).
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AMULs STRENGHT
Price is without doubt the source of Amuls edge over thecompetition. Amuls new offering Infant Milk Substitute is pricedlower than Nestles Nestum & Cerelac.
Distribution network. Amul has over 40 product, 300 stockkeeping units, 1,00,000 retailers with refrigerators, 18,000 coldchains & 5,00,000 non-refrigerator retailer outlets. It is duringthe launch of new products the GCMMF will find this distributionnetwork useful. It has helped Amul score over HLL simply
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because it controlled the milk and butter outlets that also stockice creams.
Amuls brand mascot, the Amul Girl has helped, the co-operativeto get away spending just 1% of its revenue on advertising, whilethe competition spends anything between 7-10% on advertising.Amul spends close to 40% of its annual advertising budget on theumbrella brand through its best-selling Taste of India campaign.
Capital cost is low due to their alliance and their ability tooutsource products from other co-operatives. This will helpreduce wage cost. GCMMF has an alliance with CAMPCO, cocoafarmer cooperative which produces 5,000 tonnes of cocoaproducts every year. This alliance will help it in the confectionarybusiness.
BIBLIOGRAPHY
Websites: -
www.indiadairy.com
www.responservice.com
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www.ssdairy.org
www.amul.com
Newspapers: -
The Economic Times
ACKNOWLEDGEMENT
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We would like to thank Mrs. Adarshsuri for giving us the opportunity tobe able to understand the workingof a co-operative house also amulbeen such a big brand. It gives us aplatform to understand and evaluatea company from a realistic and aneducational point of view.
In this way we have beensuccessfully exposed to the co-operate world where we would liketo be professional.
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PROJECT DONE BY:
AKHIL DHADHA (06)
DEEPIKA GUPTA (12)
ESHANT JAIN (15)
SASHANK JAIN (19)
NIDHI MERCHANT (34)
VISHAL ROHIRA (46)
POOJA SHAH (52)