Business Policy & Strategic Management
Assignment
On
“GUJARAT CO-OPERATIVE MILK MARKETING
FEDARATION LTD. (AMUL, INDIA)”
Submitted to:
Dr. Jaydeep Chaudhari
Submitted by:
Bhagirath Padhiyar (section-B)
ancy So!an"y (section-B)
Sandip Pate! (section-B)
Department o# Business and $ndustria! %anagement
&eer armad South 'u(arat )ni*ersity
Surat
INDEX
SR NO. CONTENT Page no.
1. INTRODUCTION 3
2.
VISION-MISSION ANALYSIS 6
3.
ENVIRONMENTAL ANALYSIS:
External Assessment & Internal Assessment 8
4.
STRATEGIES IN ACTION
15
Business Policy & Strategic ManagementPage 2
CH 1: INTRODUCTION
1.COMPANY OVERVIEW
$ndia+s Dairy sector is increasing rapid!y #rom the beginning o# ,he -hite %o*ement in
$ndia. ,he path#inder o# this mo*ement is the #oundation o# $ndia+s !argest dairy co-operati*e
society in the state o# 'u(arat on .
st
December/ .012 (ust be#ore the independence o# $ndia.
,he operation initiated on the ground that $ndia is a mi!"-de#icient nation but !ater on in .033
it suppressed the production capacity o# )SA.
,he story o# Amu! starts #rom the bac"drop o# high demand #or mi!" in Bombay. ,he ma(or
source o# income o# "aira district in ear!y 14+s/ 5as mi!" #arming and se!!ing. ,he one and
on!y pri*ate mi!" supp!ier/ at that point o# time 5as Po!son Dairy 6imited in that area. 7ence
a monopo!y 5as created and the poor #armers 5ere e8p!oited by the pri*ate trader. ,o ta"e a
stand against this unethica! practice they co!!ecti*e!y approached to Sardar &a!!abhbhai Pate!
($ndian barrister and statesman and one o# the !eaders on $C) under the !eadership o#
,ribhubandas 9. Pate!. Sardar &a!!abhbhai proposed them to stop supp!ying mi!" to the
traders and start their o5n co-operati*e society and re#er them to Shri %ora(i Desai ($ndian
Acti*ist and 1
th
Prime %inister o# $ndia). 7e then he!d a concourse and came to a conc!usion
that the co-operati*e society 5i!! co!!ect the mi!" #irst then decide the price according to the
:ua!ity o# the mi!". As the go*ernment 5as not reacting to their situation they 5ent on stri"e
#or a #ortnight and a##ected the Bombay %i!" Scheme. ,hen 5ith the he!p o# ,ribhubandas
Pate! and Dr. &erghese 9urien ($ndian Socia! ;ntrepreneur) they !ay #oundation o# 9aira
District Co-operati*e %i!" Producers< )nion 6td. in Anand. =armers started se!!ing their mi!"
to the union. -ith the he!p o# Dr. 7. %. Da!aya+s inno*ation o# #orming s"im mi!" po5der
#rom bu##a!o mi!" 5as the #irst time any5here in the 5or!d contributed on a commercia!
sca!e. -ithin the short span it gro5s 5ithin the Anand districts the neighboring districts. $n
.0>> the brand name assigned to the union Amu!. $t came #rom the Sans"rit 5ord ?Amu!ya@
5hich means in*a!uab!e and re#erred to as Anand %i!" )nion 6imited. 6ater on to gro5 the
strength it comes under 'C%%= ('u(arat Co-operati*e %i!" %ar"eting =oundation) in
.0AB.
Business Policy & Strategic ManagementPage 3
A#ter this mo*ement/ Dr. 9urien hai!ed as C%i!"man o# $ndia+. 6ater on Amu! produce and
supp!y its products in the )SA as 5e!! as Canada and ;urope.
Amu! operates under 'C%%=D it is $ndia+s !argest #ood products mar"eting organiEation and
a!so the !argest e8porter o# Dairy Products. .A district co-operati*e mi!" producer+s unions
are the members o# this organiEation.
2.MAJOR MILESTONES
.012 F ,he #irst mi!" union 5as estab!ished
.012 F District Co-operati*e %i!" Producers+ )nion
.0>> F ,he brand name se!ected ?Amu!@
.0AB F 'u(arat Co-operati*e %i!" %ar"eting =ederation estab!ished
G4.B F 9aira District Co-operati*e %i!" Producers )nion 6imited "no5n as Amu!
Dairy
Signed an agreement to estab!ish a p!ant in -ater!oo *i!!age in e5 Hor".
3.PRODUCT RANGE
Amu! produces a !arge range o# mi!" products. ,hese products indi*idua!!y co*er the !argest
mar"et share o# dairy industry.
? Amu! mi!" F Amu! 'o!d/ Amu! ,aaEa
? Bread Spreads F Amu! Butter/ Amu! 6ite/ De!icius ,ab!e %argarine
? Cheese F Amu! Processed Cheese/ Amu! ;mmenta! Cheese/ Amu! 'ouda
Cheese/ PiEEa
? %oEare!!a Cheese/
? )7, %i!" F Amu! 'o!d %i!"/ Amu! ,aaEa/ Amu! Ca!ci/ Amu! 6ite
? Be*erage Iange F Amu! 9oo!=!a*oured %i!"/ Amu! 9oo!Ca#e/ Amu! 9oo!
9o"o/ Amu!
? Pro!i#e Butter %i!"/ Amu! Pro!i#e 6assee/ Amu! 9oo!6assi/ Amu!Spiced
Buttermi!"/
? atramu! energy drin"/ Amu! Stamina Can/ Amu! 9oo! %i!" Sha"e
? Amu!PIO F Amu! Pro
? $ce Cream FAmu! $ce Creams/ Amu! =!aa*yo =roEen Hogurt
? Paneer F %a!aiPaneer / =res#Paneer
? Dahi F %astiDahi/ Probiotic Dahi/=!aa*yo/
Business Policy & Strategic ManagementPage 4
? 'hee F Amu! 'hee/ Sagar 'hee/ Amu! He!!o(Co5) ghee/
? %i!" Po5der F Amu! Spray/Amu!ya/ SagarA"immed %i!" Po5der/ Sagar ,ea
Co##ee
? -hitener/
? utramu! - utramu!
? %ithai Iange F Amu! Shri"hand/ 'u!abJamoon/ Amu! Basundi/ A*sar6adoo
? %ithai %ate F %ithai %ate
? Choco!ates F =ruit ?n@ ut Choco!ate Congrats Pac"/ Amu! Choco!ates/ Amu!
ChocoEoo/
? Amu! Coo"ing Choco!ate/ Ie(oice/ Amu! -a#er Choco!ates/ Choco!ate Syrup/
? =resh Cream F Amu! =resh Cream
? Pouch Butter %i!" F Amu! Pouch Butter %i!".
4.TOTAL MARKET CAPITALIZATION& TURNOVER
,he parent organiEation o# Amu!/ 'C%%= 5rite-up 3>J mar"et share in butter mar"et/ A>J
in cheese share mar"et/ 2BJ in in#ant mi!" in G4..-.G.$n the year G4.G-.B the group turno*er
is rupees .0/.44 crore (KB.G b!). $n G4..-.G the turno*er 5as ../223 crore. ,he )7, %i!"
product e8posed gro5th by >BJ/ cream by >AJ/ mi!" be*erages by GAJ and ghee o# B.J
co!!ecti*e!y 5ith Amu! and Sagar.
$n #uture Amu! aimed to gro5 to B4444 crore 5hich is the (ump o# three #o!d. $n the pre*ious
accounting year Amu! recorded 3BJ mar"et share o# butter mar"et/ 2BJ o# in#antry mi!"/
1>J in dairy 5hitener. $n pac"aged mi!" mar"et Amu! dote on G2J share i.e. G>444 crore.
Amu! earns re*enue o# 1>4 crore #rom e8ports/ main!y s"immed mi!" po5der. $n the !ast
#isca! Amu! e8ports it+s mi!" products 5orth rupees .14 crore.
5.MEMBERS OF AMUL
,here are .Bdistrict co-operati*e mi!" producers+ unions 5ho a!! are members in Amu!. ,ota!
.>/BGG numbers o# *i!!age societies are there. ,here are A>4 emp!oyees o# mar"eting arm but
the rea! poo! consists o# B mi!!ion mi!" producers.
Business Policy & Strategic ManagementPage 5
CH 2: Vision-Mission Analysis
1.COMPANIES HEADQUARTER
7ead:uarter o# 'C%%= is !ocated in Amu! Dairy Ioad/ Anand/ 'u(arat/ $ndia. Lona! o##ices
are at Ahmedabad/ 9o!"ata/ %umbai/ De!hi/ and Chennai. Sa!es o##ices are in Asanso!/
Agarta!a/ Banga!ore/ Boisar/ Cochin/ Coimbatore/ Cuttac"/ Dhaar5ad/ Dimapur a!most a!!
o*er the $ndia. O*erseas o##ices are at Dubai/ )A;.
2.VISION AND MISSION OF AMUL
VISION
Amu!+s *ision is to pro*ide more and more satis#action to the #armers/ emp!oyees and
distributers
MISSION
?-e at GCMMF ('u(arat Co-operati*e mi!" %ar"eting =ederation) endea*or to satis#y the
taste and nutritiona! re:uirements o# the customers o# the 5or!d/ through e8ce!!ence in
mar"eting by our committed team. ,hrough co-operati*e net5or"ing/ 5e are committed to
o##ering :ua!ity products that pro*ide best *a!ue #or money.@
VALUES
? Customer orientation
? Commitment to producers
? $ntegrity
? Co-operation
? ;8ce!!ence
? 6eadership
? Mua!ity
? $nno*ation
? 'ro5th orientation
? Be!ongingness
Business Policy & Strategic ManagementPage 6
? Pride in the organiEation
? ;mp!oyee satis#action
3.CRITICAL EVALUATION
,he *ision statement states about the satis#action o# #armers/ emp!oyees and distributors.
=rom the *ision statement it is deri*ed that the most #ocus o# the co-operati*e is on their three
important pi!!ars .. =armers: 5ho supp!ies the ra5 materia!s i.e. the mi!" #rom. G. ,he
emp!oyees: they are 5or"ing #or the co-operati*e society to meet the demand o# the
customers and to #u!#i!! the needs o# the sta"eho!ders. B. ,he distributors: they creates !in"
bet5een the demand and the supp!y o# the mi!" and mi!" products a!! o*er the $ndia and
outside $ndia.
A *ision statement shou!d be c!ear and crisp/ aspirations #or #uture/ #or5ard thin"ing. A *ision
statement need to inspire and unite the peop!e o# the organiEation and create *a!ue #or
organiEation. ,he *ision statement o# Amu! is created through the ,hree ,ier %ode! o# Amu!.
,he mode! ta!"s about these three pi!!ars o# the organiEation. ,he unity and the apparitiona!
:ua!ities are there in the *ision statement.
At the *ery beginning o# the mission statement ?-;@ 5ord is used that indicated that the
actor in the organiEation represents themse!*es as a group. ,hey are not indi*idua!s and they
a!! (oint!y mo*ing to #u!#i!! the *ision and mission o# the organiEation. ,hey a!so ta!"s about
the customers a!! o*er the 5or!d. ,hey 5i!! reach to satis#y a!! the customers through nitrous
#ood and e8ce!!ence. ,he organiEation a!so indicates the e8ce!!ent mar"eting and net5or"ing
abi!ities o# the team. At !ast they hint about the commitment to de!i*er the best *a!ue #or
money. $t is there#ore can be conc!ude that the organiEations mission statement co*ers a!! the
ma(or areas o# the organiEation/ the :ua!ities/ e8pertise and the abi!ities. ,he mission
statement there#ore is appropriate #or the biggest co-operati*e society o# $ndia.
Business Policy & Strategic ManagementPage 7
CH 3: Environmental Analysis
1.PESTEL
• P F PO6$,$CA6
• ; F ;COO%$CA6
• S F SOC$A6
• , F ,;C7O6O'$CA6
• ;- ;&$IO%;,A6
• 6 - 6;'A6
Politi!l F!to"#$
,he ground o# the Amu! is on po!itics. At the beginning Po!son (the so!e trader) acted
unethica! practice o# purchasing the mi!" #rom the #armers in cheaper rate. ,hen 5ith the he!p
o# po!itica! strength the co-operati*e society is being estab!ished. During the course/ $ndian
Po!itica! !eaders o# $C encourage and supported the co-operati*e society. ,here 5ere no
such po!itica! con#!ict too" p!ace ti!! the time 5ith the
Eo%o&i!l F!to"#$
,he year 5hen Amu! Co-operati*e society 5as #ormed/ $ndia 5as on gro5ing stage. =rom
that point o# time/ Amu! #ootho!d the 5ay o# economic de*e!opment #or $ndia. Since then it
contributes a ma(or portion o# the nationa! income and 'DP. ,he mar"et is sti!! increasing
5hich 5i!! in(ect more money to the economy. As 'C%%= a!so earn re*enue #rom #oreign
countries !i"e )SA/ )A; it a!so supports the economy. Due to g!oba!iEation and
!ibera!iEation the consumption pattern and demand #or product is increased. $ndia+s ran"
highest in popu!ation so there is a massi*e mar"et #or economic gro5th.
Soi!l F!to"#$
,he socia! #actors in#!uence most #or any organiEation situated in $ndia. $ndia combines o#
di##erent types o# cu!tures and !anguages so the concurrent e##ect is di##erent types o# !i#esty!e
and #ood habits. ;ducation !e*e! is a!so increasing in $ndiaD the demographic composition o#
$ndia is a!so a n important #actor in socia! en*ironment. $t he!ps in gro5ing the mar"et.
Business Policy & Strategic ManagementPage 8
T'(%olo)i!l F!to"#$
$ndia is a de*e!oping country and de*e!oping in e*ery sector. ,he aggressi*e de*e!opment
ta"es p!ace in techno!ogy o# $ndia. Amu! uses this resource to impro*e the distribution
channe!/ supp!y management/ enab!es e-commerce/ automation process and *a!ue addition.
E%*i"o%&'%t!l F!to"#$
,he product is not made out o# any unnatura! composition. ,he base o# e*ery product o#
Amu! is mi!"/ 5hich is not at a!! harm#u! #or the en*ironment. So there are no threats #or the
co-operati*e society in respect o# en*ironmenta! #actors.
L')!l F!to"#$
,he !ega! #actors 5hich 5or" as opportunity #or Amu! are P=A act/ ,rademar"s/ $ndustria!
De*e!opment N Iegu!ation Act. ,here are threats a!so !i"e Chi!d 6abor ($6O).
Business Policy & Strategic ManagementPage 9
2.PORTER’S FIVE FORCES MODEL
Business Policy & Strategic ManagementPage 10
T!"#TS $% &"'
"&T!#&("
%oreign Mil) *ro+ucing
organi,ations an+ local
mil) su**liers
BARGAINING
POWER OF
SUPPLIERS
The unions and
the members of
GCF
BARGAINING
POWER OF
BU!ERS
Lar"e number of
bu#ers
RI$ALR! AONG
COPETITING
FIRS IN
IN%USTR!
Nest&e' Britannia'
T(REATS OF
SUBSTITUTE
PRO%UCTS
Lo)a& mi&* su++&iers'
i)e,)ream su++&iers
Ri*!l"+ !&o%) Co&,'titi%) Fi"&# i% t(' I%-.#t"+$
,here are many competitors o# 'C%%= in e*ery product ranges. $n mi!" the competitors are
est!e mi!"/ %other Dairy. $n $ce Fcream F 95a!ity -a!!s %a8/ &adi!a!/ 7a*mor/ and %etro
$ce-creams. $n 'hree F est!e/ Ani" 'hee and regiona! products. $n %i!" Po5der F est!e/
Choco!ate F est!e/ Cadbury. $n Butter F Britannia/ est!e. $n Hogurt F Coco berry/
DAO;/ est!e.
T("'!t# o/ N'0 E%t"!i%#$
,here are many competitors in the mar"et o# Amu!+s products. So any ne5 entry o#
competitors 5ho pro*ides !esser price or greater :ua!ity 5i!! be threats. $# est!e 5i!!
introduce ne5 products or en!arge the product !ine it 5i!! be the threats #or Amu!.
1!")!i%i%) Po0'" o/ C.#to&'"#$
,he s5itch in products !i"e ice creams/ curds/ mi!"s etc 5i!! disp!ays the bargaining po5er or
5i!! increases the bargaining po5er o# the customers.
T("'!t# o/ S.2#tit.t'$
,here are many substitute products a*ai!ab!e in the mar"et. Products !i"e ice creams o#
95a!ity -a!!s %a8/ &adi!a!/ and 7a*mor/ mi!" !i"e est!e and %other Dairy etc acts as a
substitute. ,he !oca! or regiona! products are a!so emerging in gro5ing $ndia. ,o a*oid these
Amu! ha*e to enrich the :ua!ity #actor better than these substitutes.
1!")!i%i%) Po0'" o/ S.,,li'"#$
,he on!y supp!iers o# ra5 materia!s #or the entire products o# 'C%%= are mi!" and it is
co!!ected #rom the #armers o# the unions and the members o# the co-operati*e.
Business Policy & Strategic ManagementPage 11
3.SWOT ANALYSIS
Business Policy & Strategic ManagementPage 12
NEGATI$E POSITI$E
I
N
T
E
R
N
A
L
WEA-NESSES
Lo.er mar*et
share in
)ho)o&ate
se"ment
Lesser
ad/ertisement
Produ)t fai&ure
STRENT(S
Brand E0uit#
Produ)t Ima"e
Trust Fa)tor
(i"h 1ua&it#
A2ordab&e Pri)in"
Lar"e
em+&o#ment
Strengths:
.. 7igh Brand ;:uity and product image
G. Biggest souring o# mi!" and mi!" based products in $ndia
B. 7igh in :ua!ity
1. ,rust o# $ndian peop!e more than 24 years
>. 6arger product range and enhanced product !ines
2. %a8imum mar"et share
A. A##ordab!e price
3. Co*ers a!! segments and a!! c!ass
0. Popu!ar mascot ?Amu! 'ir!@
.4. Abundant a*ai!abi!ity o# mi!"
... ;ncourages to #irm more
Weaknesses:
.. 6o5 mar"et share in choco!ate segment ( ma(or share is o# Cadbury)
G. Some products #ai!s ( eg. utre!a )
B. 6imited sa!es o# ice-creams ( most se!!ing ice cream is 95a!ity 5a!!s)
1. 6agging #or ad*ertisement and promotions than other brands
Opportunities:
.. Scope #or *a!ue addition
G. Product de*e!opment
B. Di*ersi#ication in other than mi!" and mi!" based products
1. $mpro*e the 5ea" segment or product
>. Ieach to the rura! areas
2. %ore e8port
Threats:
.) Strong competitors ( e.g. est!e/ Cadbury/ %other Dairy/ Britannia)
G) $ce-cream sector is not impro*ed 5ith competition 5ith other competitors (e.g.
95a!ity -a!!s)
B) ;conomic s!o5do5n and in#!ation
1) Disease regarding co5s and bu##a!os
4) TOWS MATRIX
Business Policy & Strategic ManagementPage 13
E
3
T
E
R
N
A
L
T(REATS
A""ressi/e
Com+etition
Produ)t Imitation
Ne. Entran)e in
the mar*et
Lo)a&i4ed
Su++&iers
OPPORTUNITIES
$a&ue Addition
Produ)t
%e/e&o+ment
Tar"etin" ne.
se"ments
ore E5+ort
%i/ersi6)ation
" - T " ! & # .
/ & T " ! & # .
WT
STRATEGIES
Produ)t
%e/e&o+ment
ST STRATEGIES
Safet# of
)att&e
(o&d Position
T(REATS OPPORTUNITIE
S
WO
STRATEGIES
Rura& Area
Promotion
SO
STRATEGIES
$a&ue Addition
%e/e&o+
Se"mentin"
WEA-NESSES STRENGT(S
SO STRATEGIES:
.. $ncrease *a!ue addition in !agging products
G. De*e!op ice-cream segment
ST STRATEGIES$
.. $ncrease sa#ety to a*oid diseases o# the catt!e
G. 7o!d o# :ua!ity and brand image that he!ps to maintains the mar"et share
3O STRATEGIES$
.. %inimiEing the e##ect o# !ess ad*ertisement by reaching out to the rura! areas
G. Di*ersi#y to increase sa!es in ice-cream
3T STRATEGIES$
.. Product de*e!opment and
G. mar"et penetration
CH 4: Strategic Analysis
1.BCG MATRIX
Business Policy & Strategic ManagementPage 14
M#!0"T S#!"
CAS4 CO3S$
,he products o# Amu! mentioned in the cash co5 ce!! are those products that typica!!y
generate e8cess cash amounts. ,hese products are in their Cmaturity period+. ,he ma8imum
products shou!d be in this ce!! to earn a huge pro#it.
DOGS$
Business Policy & Strategic ManagementPage 15
M#!0"T
1!$'T
/1
.$'
.$'
/1
CAS( COWS
Pou)h i&*' Ghee'
Butter
%OGS
Nutre&&a
1UESTION AR-S
Cho)o&ates
STARS
U(T i&*' Cheese'
i&* Po.ders'
F&a/ored i&*
Dogs are in !o5 mar"et share. ,hey are products 5hich are gro5ing s!o5!y. ,here are no
such products in Amu! that is gro5ing s!o5!y.
5UESTION MARKS$
7ere the products are introduced as they can on!y #rame out the potentia! mar"et. =rom this
stage the product became star then cash co5s and then dogs.
STARS$
,he products )7, %i!"/ Cheese/ %i!" Po5ders/ =!a*ored %i!" are the stars products #or
Amu!. ,hey generate ma8imum gro5th in the industry. ,hese are the mar"et !eaders.
2.GE NINECELL MATRIX
Business Policy & Strategic ManagementPage 16
B2S/&"SS 2&/T
ST!"&1T
L O W E % I U S T R O N G
Products mentioned in the ce!!s are p!aced according to industry attracti*eness and business
strengths. Products mentioned in the in*estment and gro5th ce!! 5i!! ta"e in*estment to gro5
more. Products in se!ecti*e earnings need to monitor per#ormance/ sa!es and then se!ect
strategy to gro5. Products in har*est ce!! needs in*estment they are not gro5ing according!y.
,hey need di*estment.
3.PORTER’S VALUE CHAIN
Business Policy & Strategic ManagementPage 17
/&32ST!4
#TT!#(T/5&"SS
(
I
G
(
L
O
W
E
%
I
U
(AR$EST
Bread s+read'
mithai ran"e
(AR$EST
Be/era"e
ran"es
(AR$EST
I)e,)reams
SELECTI$E
EARNING
Fresh )ream'
IN$ESTENT
7 GROWT(
Pou)hed mi&*'
i&* Po.der
SELECTI$E
EARNING
%ahi' +aneer
SELECTI$E
EARNING
Amu&s+ra#
IN$ESTENT
7 GROWT(
Cheese' Ghee
IN$ESTENT
7 GROWT(
U(T i&*'
Butter
INFRASTRUCTURE6 ea+ o7ces8 9onal $7ces8 3e*ot8
$:erseas o7ces
T E C ( N O L O G ! 8 / m * l e m e n t a t i o n o ; m o r e i n t e g r a t i o n ; r o m ; a r m e r s t o c u s t o m e r s 8 B 2 B m o + e l 8
( U A N R E S O U R C E A N A G E E N T 8 T o t a l < u a l i t y M a n a g e m e n t 8 o * e n c u l t u r e 8 l e a + e r s = i * 8 " ! P
M#!1/&
PROFIT9:;':ut
ors8
!etailer
0ios)8
$2TB$2&3
.$1/ST/(S
5illage
3airy (o?
o*erati:e
Society@3ict
rict Mil)
2nion8
State Mil)
2nion8
$P"!#T/$&
S
Mil)
Processing8
*ac)ing8
/&B$2&3
.$1/ST/(S
Mil)
Pro+uction
>y co?
o*erati:e
an+
mem>er
unions
I%2o.%- Lo)i#ti#:
Considering the three-tier mode! gi*en by Amu! the primary source o# co!!ection the materia!
is #rom the *i!!age #armers. ,hey are those #armers 5ho are the member o# the union/ co-
operati*es o# the same.
O,'"!tio%#$
Operations too" p!ace a#ter co!!ection is to de!i*er the mi!" to the district !e*e! #rom *i!!age
!e*e! and #rom there it is ser*ed to the state !e*e! and to the mar"et.
O.t2o.%- Lo)i#ti#$
,o store the #inished products it is pac"ed and pac"aged and store in co!d storage. Products
!i"e )7, mi!"/ pouch mi!" cou!d not be stored #or !ong time so they are distributed and the
products !i"e ice-creams/ mi!" po5der/ ghee/ cheese are stored #or !onger tie than !i:uid mi!".
Business Policy & Strategic ManagementPage 18
S 2 P P $ ! T &
S " ! 5 / ( " S
M!"6'ti%) 7 S!l'#$
,he distribution channe! has A44 points #rom 5here the product is distributed to the retai!ers
and shops and to sma!! areas. $t has >444 dea!ers and .4 !a"hs retai!ers 5ith 13 sa!es o##ices.
S'"*i'$
Amu! pro*ides a#ter sa!es ser*ices in maintaining grie*ance ce!! o# retai!ers/ distributors and
customers.
I%/"!#t".t."'$
$t 5or"s on catt!e maintenance/ transports and has processing units. $t co*ers a!! o*er $ndia
through the head o##ices/ Eona! o##ices and regiona! o##ices.
4RM$
7uman resource is a must part o# this organiEation to maintain the distribution and emp!oyees
o# $, and mar"eting they maintains ,M%/ ;IP system.
T'(%olo)+$
Amu! recei*es many a5ards due to using and imp!ementing inno*ati*e $, systems and
processes.
P"o/it M!")i%$
$n the year G4.G-.B the group turno*er is rupees .0/.44 crore (KB.G b!). $n G4..-.G the
turno*er 5as ../223 crore.
Business Policy & Strategic ManagementPage 19
doc_824350176.docx
Assignment
On
“GUJARAT CO-OPERATIVE MILK MARKETING
FEDARATION LTD. (AMUL, INDIA)”
Submitted to:
Dr. Jaydeep Chaudhari
Submitted by:
Bhagirath Padhiyar (section-B)
ancy So!an"y (section-B)
Sandip Pate! (section-B)
Department o# Business and $ndustria! %anagement
&eer armad South 'u(arat )ni*ersity
Surat
INDEX
SR NO. CONTENT Page no.
1. INTRODUCTION 3
2.
VISION-MISSION ANALYSIS 6
3.
ENVIRONMENTAL ANALYSIS:
External Assessment & Internal Assessment 8
4.
STRATEGIES IN ACTION
15
Business Policy & Strategic ManagementPage 2
CH 1: INTRODUCTION
1.COMPANY OVERVIEW
$ndia+s Dairy sector is increasing rapid!y #rom the beginning o# ,he -hite %o*ement in
$ndia. ,he path#inder o# this mo*ement is the #oundation o# $ndia+s !argest dairy co-operati*e
society in the state o# 'u(arat on .
st
December/ .012 (ust be#ore the independence o# $ndia.
,he operation initiated on the ground that $ndia is a mi!"-de#icient nation but !ater on in .033
it suppressed the production capacity o# )SA.
,he story o# Amu! starts #rom the bac"drop o# high demand #or mi!" in Bombay. ,he ma(or
source o# income o# "aira district in ear!y 14+s/ 5as mi!" #arming and se!!ing. ,he one and
on!y pri*ate mi!" supp!ier/ at that point o# time 5as Po!son Dairy 6imited in that area. 7ence
a monopo!y 5as created and the poor #armers 5ere e8p!oited by the pri*ate trader. ,o ta"e a
stand against this unethica! practice they co!!ecti*e!y approached to Sardar &a!!abhbhai Pate!
($ndian barrister and statesman and one o# the !eaders on $C) under the !eadership o#
,ribhubandas 9. Pate!. Sardar &a!!abhbhai proposed them to stop supp!ying mi!" to the
traders and start their o5n co-operati*e society and re#er them to Shri %ora(i Desai ($ndian
Acti*ist and 1
th
Prime %inister o# $ndia). 7e then he!d a concourse and came to a conc!usion
that the co-operati*e society 5i!! co!!ect the mi!" #irst then decide the price according to the
:ua!ity o# the mi!". As the go*ernment 5as not reacting to their situation they 5ent on stri"e
#or a #ortnight and a##ected the Bombay %i!" Scheme. ,hen 5ith the he!p o# ,ribhubandas
Pate! and Dr. &erghese 9urien ($ndian Socia! ;ntrepreneur) they !ay #oundation o# 9aira
District Co-operati*e %i!" Producers< )nion 6td. in Anand. =armers started se!!ing their mi!"
to the union. -ith the he!p o# Dr. 7. %. Da!aya+s inno*ation o# #orming s"im mi!" po5der
#rom bu##a!o mi!" 5as the #irst time any5here in the 5or!d contributed on a commercia!
sca!e. -ithin the short span it gro5s 5ithin the Anand districts the neighboring districts. $n
.0>> the brand name assigned to the union Amu!. $t came #rom the Sans"rit 5ord ?Amu!ya@
5hich means in*a!uab!e and re#erred to as Anand %i!" )nion 6imited. 6ater on to gro5 the
strength it comes under 'C%%= ('u(arat Co-operati*e %i!" %ar"eting =oundation) in
.0AB.
Business Policy & Strategic ManagementPage 3
A#ter this mo*ement/ Dr. 9urien hai!ed as C%i!"man o# $ndia+. 6ater on Amu! produce and
supp!y its products in the )SA as 5e!! as Canada and ;urope.
Amu! operates under 'C%%=D it is $ndia+s !argest #ood products mar"eting organiEation and
a!so the !argest e8porter o# Dairy Products. .A district co-operati*e mi!" producer+s unions
are the members o# this organiEation.
2.MAJOR MILESTONES
.012 F ,he #irst mi!" union 5as estab!ished
.012 F District Co-operati*e %i!" Producers+ )nion
.0>> F ,he brand name se!ected ?Amu!@
.0AB F 'u(arat Co-operati*e %i!" %ar"eting =ederation estab!ished
G4.B F 9aira District Co-operati*e %i!" Producers )nion 6imited "no5n as Amu!
Dairy
Signed an agreement to estab!ish a p!ant in -ater!oo *i!!age in e5 Hor".
3.PRODUCT RANGE
Amu! produces a !arge range o# mi!" products. ,hese products indi*idua!!y co*er the !argest
mar"et share o# dairy industry.
? Amu! mi!" F Amu! 'o!d/ Amu! ,aaEa
? Bread Spreads F Amu! Butter/ Amu! 6ite/ De!icius ,ab!e %argarine
? Cheese F Amu! Processed Cheese/ Amu! ;mmenta! Cheese/ Amu! 'ouda
Cheese/ PiEEa
? %oEare!!a Cheese/
? )7, %i!" F Amu! 'o!d %i!"/ Amu! ,aaEa/ Amu! Ca!ci/ Amu! 6ite
? Be*erage Iange F Amu! 9oo!=!a*oured %i!"/ Amu! 9oo!Ca#e/ Amu! 9oo!
9o"o/ Amu!
? Pro!i#e Butter %i!"/ Amu! Pro!i#e 6assee/ Amu! 9oo!6assi/ Amu!Spiced
Buttermi!"/
? atramu! energy drin"/ Amu! Stamina Can/ Amu! 9oo! %i!" Sha"e
? Amu!PIO F Amu! Pro
? $ce Cream FAmu! $ce Creams/ Amu! =!aa*yo =roEen Hogurt
? Paneer F %a!aiPaneer / =res#Paneer
? Dahi F %astiDahi/ Probiotic Dahi/=!aa*yo/
Business Policy & Strategic ManagementPage 4
? 'hee F Amu! 'hee/ Sagar 'hee/ Amu! He!!o(Co5) ghee/
? %i!" Po5der F Amu! Spray/Amu!ya/ SagarA"immed %i!" Po5der/ Sagar ,ea
Co##ee
? -hitener/
? utramu! - utramu!
? %ithai Iange F Amu! Shri"hand/ 'u!abJamoon/ Amu! Basundi/ A*sar6adoo
? %ithai %ate F %ithai %ate
? Choco!ates F =ruit ?n@ ut Choco!ate Congrats Pac"/ Amu! Choco!ates/ Amu!
ChocoEoo/
? Amu! Coo"ing Choco!ate/ Ie(oice/ Amu! -a#er Choco!ates/ Choco!ate Syrup/
? =resh Cream F Amu! =resh Cream
? Pouch Butter %i!" F Amu! Pouch Butter %i!".
4.TOTAL MARKET CAPITALIZATION& TURNOVER
,he parent organiEation o# Amu!/ 'C%%= 5rite-up 3>J mar"et share in butter mar"et/ A>J
in cheese share mar"et/ 2BJ in in#ant mi!" in G4..-.G.$n the year G4.G-.B the group turno*er
is rupees .0/.44 crore (KB.G b!). $n G4..-.G the turno*er 5as ../223 crore. ,he )7, %i!"
product e8posed gro5th by >BJ/ cream by >AJ/ mi!" be*erages by GAJ and ghee o# B.J
co!!ecti*e!y 5ith Amu! and Sagar.
$n #uture Amu! aimed to gro5 to B4444 crore 5hich is the (ump o# three #o!d. $n the pre*ious
accounting year Amu! recorded 3BJ mar"et share o# butter mar"et/ 2BJ o# in#antry mi!"/
1>J in dairy 5hitener. $n pac"aged mi!" mar"et Amu! dote on G2J share i.e. G>444 crore.
Amu! earns re*enue o# 1>4 crore #rom e8ports/ main!y s"immed mi!" po5der. $n the !ast
#isca! Amu! e8ports it+s mi!" products 5orth rupees .14 crore.
5.MEMBERS OF AMUL
,here are .Bdistrict co-operati*e mi!" producers+ unions 5ho a!! are members in Amu!. ,ota!
.>/BGG numbers o# *i!!age societies are there. ,here are A>4 emp!oyees o# mar"eting arm but
the rea! poo! consists o# B mi!!ion mi!" producers.
Business Policy & Strategic ManagementPage 5
CH 2: Vision-Mission Analysis
1.COMPANIES HEADQUARTER
7ead:uarter o# 'C%%= is !ocated in Amu! Dairy Ioad/ Anand/ 'u(arat/ $ndia. Lona! o##ices
are at Ahmedabad/ 9o!"ata/ %umbai/ De!hi/ and Chennai. Sa!es o##ices are in Asanso!/
Agarta!a/ Banga!ore/ Boisar/ Cochin/ Coimbatore/ Cuttac"/ Dhaar5ad/ Dimapur a!most a!!
o*er the $ndia. O*erseas o##ices are at Dubai/ )A;.
2.VISION AND MISSION OF AMUL
VISION
Amu!+s *ision is to pro*ide more and more satis#action to the #armers/ emp!oyees and
distributers
MISSION
?-e at GCMMF ('u(arat Co-operati*e mi!" %ar"eting =ederation) endea*or to satis#y the
taste and nutritiona! re:uirements o# the customers o# the 5or!d/ through e8ce!!ence in
mar"eting by our committed team. ,hrough co-operati*e net5or"ing/ 5e are committed to
o##ering :ua!ity products that pro*ide best *a!ue #or money.@
VALUES
? Customer orientation
? Commitment to producers
? $ntegrity
? Co-operation
? ;8ce!!ence
? 6eadership
? Mua!ity
? $nno*ation
? 'ro5th orientation
? Be!ongingness
Business Policy & Strategic ManagementPage 6
? Pride in the organiEation
? ;mp!oyee satis#action
3.CRITICAL EVALUATION
,he *ision statement states about the satis#action o# #armers/ emp!oyees and distributors.
=rom the *ision statement it is deri*ed that the most #ocus o# the co-operati*e is on their three
important pi!!ars .. =armers: 5ho supp!ies the ra5 materia!s i.e. the mi!" #rom. G. ,he
emp!oyees: they are 5or"ing #or the co-operati*e society to meet the demand o# the
customers and to #u!#i!! the needs o# the sta"eho!ders. B. ,he distributors: they creates !in"
bet5een the demand and the supp!y o# the mi!" and mi!" products a!! o*er the $ndia and
outside $ndia.
A *ision statement shou!d be c!ear and crisp/ aspirations #or #uture/ #or5ard thin"ing. A *ision
statement need to inspire and unite the peop!e o# the organiEation and create *a!ue #or
organiEation. ,he *ision statement o# Amu! is created through the ,hree ,ier %ode! o# Amu!.
,he mode! ta!"s about these three pi!!ars o# the organiEation. ,he unity and the apparitiona!
:ua!ities are there in the *ision statement.
At the *ery beginning o# the mission statement ?-;@ 5ord is used that indicated that the
actor in the organiEation represents themse!*es as a group. ,hey are not indi*idua!s and they
a!! (oint!y mo*ing to #u!#i!! the *ision and mission o# the organiEation. ,hey a!so ta!"s about
the customers a!! o*er the 5or!d. ,hey 5i!! reach to satis#y a!! the customers through nitrous
#ood and e8ce!!ence. ,he organiEation a!so indicates the e8ce!!ent mar"eting and net5or"ing
abi!ities o# the team. At !ast they hint about the commitment to de!i*er the best *a!ue #or
money. $t is there#ore can be conc!ude that the organiEations mission statement co*ers a!! the
ma(or areas o# the organiEation/ the :ua!ities/ e8pertise and the abi!ities. ,he mission
statement there#ore is appropriate #or the biggest co-operati*e society o# $ndia.
Business Policy & Strategic ManagementPage 7
CH 3: Environmental Analysis
1.PESTEL
• P F PO6$,$CA6
• ; F ;COO%$CA6
• S F SOC$A6
• , F ,;C7O6O'$CA6
• ;- ;&$IO%;,A6
• 6 - 6;'A6
Politi!l F!to"#$
,he ground o# the Amu! is on po!itics. At the beginning Po!son (the so!e trader) acted
unethica! practice o# purchasing the mi!" #rom the #armers in cheaper rate. ,hen 5ith the he!p
o# po!itica! strength the co-operati*e society is being estab!ished. During the course/ $ndian
Po!itica! !eaders o# $C encourage and supported the co-operati*e society. ,here 5ere no
such po!itica! con#!ict too" p!ace ti!! the time 5ith the
Eo%o&i!l F!to"#$
,he year 5hen Amu! Co-operati*e society 5as #ormed/ $ndia 5as on gro5ing stage. =rom
that point o# time/ Amu! #ootho!d the 5ay o# economic de*e!opment #or $ndia. Since then it
contributes a ma(or portion o# the nationa! income and 'DP. ,he mar"et is sti!! increasing
5hich 5i!! in(ect more money to the economy. As 'C%%= a!so earn re*enue #rom #oreign
countries !i"e )SA/ )A; it a!so supports the economy. Due to g!oba!iEation and
!ibera!iEation the consumption pattern and demand #or product is increased. $ndia+s ran"
highest in popu!ation so there is a massi*e mar"et #or economic gro5th.
Soi!l F!to"#$
,he socia! #actors in#!uence most #or any organiEation situated in $ndia. $ndia combines o#
di##erent types o# cu!tures and !anguages so the concurrent e##ect is di##erent types o# !i#esty!e
and #ood habits. ;ducation !e*e! is a!so increasing in $ndiaD the demographic composition o#
$ndia is a!so a n important #actor in socia! en*ironment. $t he!ps in gro5ing the mar"et.
Business Policy & Strategic ManagementPage 8
T'(%olo)i!l F!to"#$
$ndia is a de*e!oping country and de*e!oping in e*ery sector. ,he aggressi*e de*e!opment
ta"es p!ace in techno!ogy o# $ndia. Amu! uses this resource to impro*e the distribution
channe!/ supp!y management/ enab!es e-commerce/ automation process and *a!ue addition.
E%*i"o%&'%t!l F!to"#$
,he product is not made out o# any unnatura! composition. ,he base o# e*ery product o#
Amu! is mi!"/ 5hich is not at a!! harm#u! #or the en*ironment. So there are no threats #or the
co-operati*e society in respect o# en*ironmenta! #actors.
L')!l F!to"#$
,he !ega! #actors 5hich 5or" as opportunity #or Amu! are P=A act/ ,rademar"s/ $ndustria!
De*e!opment N Iegu!ation Act. ,here are threats a!so !i"e Chi!d 6abor ($6O).
Business Policy & Strategic ManagementPage 9
2.PORTER’S FIVE FORCES MODEL
Business Policy & Strategic ManagementPage 10
T!"#TS $% &"'
"&T!#&("
%oreign Mil) *ro+ucing
organi,ations an+ local
mil) su**liers
BARGAINING
POWER OF
SUPPLIERS
The unions and
the members of
GCF
BARGAINING
POWER OF
BU!ERS
Lar"e number of
bu#ers
RI$ALR! AONG
COPETITING
FIRS IN
IN%USTR!
Nest&e' Britannia'
T(REATS OF
SUBSTITUTE
PRO%UCTS
Lo)a& mi&* su++&iers'
i)e,)ream su++&iers
Ri*!l"+ !&o%) Co&,'titi%) Fi"&# i% t(' I%-.#t"+$
,here are many competitors o# 'C%%= in e*ery product ranges. $n mi!" the competitors are
est!e mi!"/ %other Dairy. $n $ce Fcream F 95a!ity -a!!s %a8/ &adi!a!/ 7a*mor/ and %etro
$ce-creams. $n 'hree F est!e/ Ani" 'hee and regiona! products. $n %i!" Po5der F est!e/
Choco!ate F est!e/ Cadbury. $n Butter F Britannia/ est!e. $n Hogurt F Coco berry/
DAO;/ est!e.
T("'!t# o/ N'0 E%t"!i%#$
,here are many competitors in the mar"et o# Amu!+s products. So any ne5 entry o#
competitors 5ho pro*ides !esser price or greater :ua!ity 5i!! be threats. $# est!e 5i!!
introduce ne5 products or en!arge the product !ine it 5i!! be the threats #or Amu!.
1!")!i%i%) Po0'" o/ C.#to&'"#$
,he s5itch in products !i"e ice creams/ curds/ mi!"s etc 5i!! disp!ays the bargaining po5er or
5i!! increases the bargaining po5er o# the customers.
T("'!t# o/ S.2#tit.t'$
,here are many substitute products a*ai!ab!e in the mar"et. Products !i"e ice creams o#
95a!ity -a!!s %a8/ &adi!a!/ and 7a*mor/ mi!" !i"e est!e and %other Dairy etc acts as a
substitute. ,he !oca! or regiona! products are a!so emerging in gro5ing $ndia. ,o a*oid these
Amu! ha*e to enrich the :ua!ity #actor better than these substitutes.
1!")!i%i%) Po0'" o/ S.,,li'"#$
,he on!y supp!iers o# ra5 materia!s #or the entire products o# 'C%%= are mi!" and it is
co!!ected #rom the #armers o# the unions and the members o# the co-operati*e.
Business Policy & Strategic ManagementPage 11
3.SWOT ANALYSIS
Business Policy & Strategic ManagementPage 12
NEGATI$E POSITI$E
I
N
T
E
R
N
A
L
WEA-NESSES
Lo.er mar*et
share in
)ho)o&ate
se"ment
Lesser
ad/ertisement
Produ)t fai&ure
STRENT(S
Brand E0uit#
Produ)t Ima"e
Trust Fa)tor
(i"h 1ua&it#
A2ordab&e Pri)in"
Lar"e
em+&o#ment
Strengths:
.. 7igh Brand ;:uity and product image
G. Biggest souring o# mi!" and mi!" based products in $ndia
B. 7igh in :ua!ity
1. ,rust o# $ndian peop!e more than 24 years
>. 6arger product range and enhanced product !ines
2. %a8imum mar"et share
A. A##ordab!e price
3. Co*ers a!! segments and a!! c!ass
0. Popu!ar mascot ?Amu! 'ir!@
.4. Abundant a*ai!abi!ity o# mi!"
... ;ncourages to #irm more
Weaknesses:
.. 6o5 mar"et share in choco!ate segment ( ma(or share is o# Cadbury)
G. Some products #ai!s ( eg. utre!a )
B. 6imited sa!es o# ice-creams ( most se!!ing ice cream is 95a!ity 5a!!s)
1. 6agging #or ad*ertisement and promotions than other brands
Opportunities:
.. Scope #or *a!ue addition
G. Product de*e!opment
B. Di*ersi#ication in other than mi!" and mi!" based products
1. $mpro*e the 5ea" segment or product
>. Ieach to the rura! areas
2. %ore e8port
Threats:
.) Strong competitors ( e.g. est!e/ Cadbury/ %other Dairy/ Britannia)
G) $ce-cream sector is not impro*ed 5ith competition 5ith other competitors (e.g.
95a!ity -a!!s)
B) ;conomic s!o5do5n and in#!ation
1) Disease regarding co5s and bu##a!os
4) TOWS MATRIX
Business Policy & Strategic ManagementPage 13
E
3
T
E
R
N
A
L
T(REATS
A""ressi/e
Com+etition
Produ)t Imitation
Ne. Entran)e in
the mar*et
Lo)a&i4ed
Su++&iers
OPPORTUNITIES
$a&ue Addition
Produ)t
%e/e&o+ment
Tar"etin" ne.
se"ments
ore E5+ort
%i/ersi6)ation
" - T " ! & # .
/ & T " ! & # .
WT
STRATEGIES
Produ)t
%e/e&o+ment
ST STRATEGIES
Safet# of
)att&e
(o&d Position
T(REATS OPPORTUNITIE
S
WO
STRATEGIES
Rura& Area
Promotion
SO
STRATEGIES
$a&ue Addition
%e/e&o+
Se"mentin"
WEA-NESSES STRENGT(S
SO STRATEGIES:
.. $ncrease *a!ue addition in !agging products
G. De*e!op ice-cream segment
ST STRATEGIES$
.. $ncrease sa#ety to a*oid diseases o# the catt!e
G. 7o!d o# :ua!ity and brand image that he!ps to maintains the mar"et share
3O STRATEGIES$
.. %inimiEing the e##ect o# !ess ad*ertisement by reaching out to the rura! areas
G. Di*ersi#y to increase sa!es in ice-cream
3T STRATEGIES$
.. Product de*e!opment and
G. mar"et penetration
CH 4: Strategic Analysis
1.BCG MATRIX
Business Policy & Strategic ManagementPage 14
M#!0"T S#!"
CAS4 CO3S$
,he products o# Amu! mentioned in the cash co5 ce!! are those products that typica!!y
generate e8cess cash amounts. ,hese products are in their Cmaturity period+. ,he ma8imum
products shou!d be in this ce!! to earn a huge pro#it.
DOGS$
Business Policy & Strategic ManagementPage 15
M#!0"T
1!$'T
/1
.$'
.$'
/1
CAS( COWS
Pou)h i&*' Ghee'
Butter
%OGS
Nutre&&a
1UESTION AR-S
Cho)o&ates
STARS
U(T i&*' Cheese'
i&* Po.ders'
F&a/ored i&*
Dogs are in !o5 mar"et share. ,hey are products 5hich are gro5ing s!o5!y. ,here are no
such products in Amu! that is gro5ing s!o5!y.
5UESTION MARKS$
7ere the products are introduced as they can on!y #rame out the potentia! mar"et. =rom this
stage the product became star then cash co5s and then dogs.
STARS$
,he products )7, %i!"/ Cheese/ %i!" Po5ders/ =!a*ored %i!" are the stars products #or
Amu!. ,hey generate ma8imum gro5th in the industry. ,hese are the mar"et !eaders.
2.GE NINECELL MATRIX
Business Policy & Strategic ManagementPage 16
B2S/&"SS 2&/T
ST!"&1T
L O W E % I U S T R O N G
Products mentioned in the ce!!s are p!aced according to industry attracti*eness and business
strengths. Products mentioned in the in*estment and gro5th ce!! 5i!! ta"e in*estment to gro5
more. Products in se!ecti*e earnings need to monitor per#ormance/ sa!es and then se!ect
strategy to gro5. Products in har*est ce!! needs in*estment they are not gro5ing according!y.
,hey need di*estment.
3.PORTER’S VALUE CHAIN
Business Policy & Strategic ManagementPage 17
/&32ST!4
#TT!#(T/5&"SS
(
I
G
(
L
O
W
E
%
I
U
(AR$EST
Bread s+read'
mithai ran"e
(AR$EST
Be/era"e
ran"es
(AR$EST
I)e,)reams
SELECTI$E
EARNING
Fresh )ream'
IN$ESTENT
7 GROWT(
Pou)hed mi&*'
i&* Po.der
SELECTI$E
EARNING
%ahi' +aneer
SELECTI$E
EARNING
Amu&s+ra#
IN$ESTENT
7 GROWT(
Cheese' Ghee
IN$ESTENT
7 GROWT(
U(T i&*'
Butter
INFRASTRUCTURE6 ea+ o7ces8 9onal $7ces8 3e*ot8
$:erseas o7ces
T E C ( N O L O G ! 8 / m * l e m e n t a t i o n o ; m o r e i n t e g r a t i o n ; r o m ; a r m e r s t o c u s t o m e r s 8 B 2 B m o + e l 8
( U A N R E S O U R C E A N A G E E N T 8 T o t a l < u a l i t y M a n a g e m e n t 8 o * e n c u l t u r e 8 l e a + e r s = i * 8 " ! P
M#!1/&
PROFIT9:;':ut
ors8
!etailer
0ios)8
$2TB$2&3
.$1/ST/(S
5illage
3airy (o?
o*erati:e
Society@3ict
rict Mil)
2nion8
State Mil)
2nion8
$P"!#T/$&
S
Mil)
Processing8
*ac)ing8
/&B$2&3
.$1/ST/(S
Mil)
Pro+uction
>y co?
o*erati:e
an+
mem>er
unions
I%2o.%- Lo)i#ti#:
Considering the three-tier mode! gi*en by Amu! the primary source o# co!!ection the materia!
is #rom the *i!!age #armers. ,hey are those #armers 5ho are the member o# the union/ co-
operati*es o# the same.
O,'"!tio%#$
Operations too" p!ace a#ter co!!ection is to de!i*er the mi!" to the district !e*e! #rom *i!!age
!e*e! and #rom there it is ser*ed to the state !e*e! and to the mar"et.
O.t2o.%- Lo)i#ti#$
,o store the #inished products it is pac"ed and pac"aged and store in co!d storage. Products
!i"e )7, mi!"/ pouch mi!" cou!d not be stored #or !ong time so they are distributed and the
products !i"e ice-creams/ mi!" po5der/ ghee/ cheese are stored #or !onger tie than !i:uid mi!".
Business Policy & Strategic ManagementPage 18
S 2 P P $ ! T &
S " ! 5 / ( " S
M!"6'ti%) 7 S!l'#$
,he distribution channe! has A44 points #rom 5here the product is distributed to the retai!ers
and shops and to sma!! areas. $t has >444 dea!ers and .4 !a"hs retai!ers 5ith 13 sa!es o##ices.
S'"*i'$
Amu! pro*ides a#ter sa!es ser*ices in maintaining grie*ance ce!! o# retai!ers/ distributors and
customers.
I%/"!#t".t."'$
$t 5or"s on catt!e maintenance/ transports and has processing units. $t co*ers a!! o*er $ndia
through the head o##ices/ Eona! o##ices and regiona! o##ices.
4RM$
7uman resource is a must part o# this organiEation to maintain the distribution and emp!oyees
o# $, and mar"eting they maintains ,M%/ ;IP system.
T'(%olo)+$
Amu! recei*es many a5ards due to using and imp!ementing inno*ati*e $, systems and
processes.
P"o/it M!")i%$
$n the year G4.G-.B the group turno*er is rupees .0/.44 crore (KB.G b!). $n G4..-.G the
turno*er 5as ../223 crore.
Business Policy & Strategic ManagementPage 19
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