LITERATURE REVIEW

Amul is one of the most successful Indian business firm. It provides various milk
products in which its main brand product Amul Butter is also present. Amul begins
with just little group of milk producing villagers and now become largest milk
producing cooperative society in India. It had started with two village cooperatives
with 250 liters milk producing capacity and now it collects daily a 6.5 million
(average) of milk from a very large no of Indian villages. It has become a hope for
poor villagers who were exploiting by middlemen before the origin of Amul or
Gujarat milk marketing federation or Kaira union. By originated Amul got its first
chairman Shri Tribhuvandas Patel who through his integrity had favor of villagers
and understands the needs of cooperative society. Through their interpersonal faith
and cooperation Amul got this success history besides facing various difficulties.
Gujarat Milk Marketing Federation is a cooperative society. It done a very good
job in milk marketing, making way for poor villagers earnings. It not only provides
effective returns to the farmers but also take cares of customers interests. It serves
for customer on the basis of Indian ethics. They provide milk of better nutrients,
better quality products regularly and help in meeting the countrys need of daily
milk requirements. Some of the articles on Amul are as follows: -
India report part 5: AMUL, Indias number-one dairy brand
Published: April 11, 2006 reference www.milk production.com

On 14 December 1946 the predecessor of the Gujarat Milk Marketing Federation, better
known as the AMUL dairy cooperative, was founded in Kaira (Gujarat state).
The daily milk collection was 247 litres.
Anno 2005 the 2.4 million members/ dairy farmers supplied AMUL daily with 5.9
million litres of milk.


According to Mr Khanna, an AMUL director with special assignments as his business card
says the milk supply to his co-operative is increasing all the time. In the 2003/04 financial year,
the milk collection was up to 5.1 million litres per day, a rise of some 15.2%. By contrast, the co-
operatives turnover rose by just 1.4% in the financial year 2004/05, bringing it to INR 29.22
billion or EUR 584 million. This growth is lower than expected and due, believes Khanna, to the
reduced milk supply in the latter months of 2004 and the poor increase in the price of basic
products in the early months of 2005.
From what Khanna is saying, it is evident that AMUL is a co-operative operation without equal.
The 2.4 million members/ dairy farmers in the state of Gujarat are grouped into 11,615 village
co-operatives equipped with both testing equipment and a milk cooling tank. Some of the
unpasteurised milk is sold to the villagers. The rest is transported by milk tankers twice a day to
the 12 district Milk Unions in the state. These Milk Unions process the milk by using the
services of 24 processing companies. The output of dairy products reflects the order submitted
by the states marketing body, the Gujarat Co-operative Milk Marketing Federation. These
products are then sold throughout India under the AMUL and Sagar brand names.
Indian consumers are increasingly showing a preference for packaged dairy products, due to food
safety concerns. This explains in part why the revenues of AMULs consumer range of packaged
dairy products grew by 11.8% in the last financial year. The sales revenue of pasteurised
drinking milk in plastic pouches under the AMUL brand rose in 2004/05 by no less than 36%.
This rise was attributable chiefly to the successful introduction of AMUL milk more than a year
ago in the Indian city of Kolkata (formerly Calcutta), home to millions of people. Thanks to this
success, the pasteurised milk pouches are the biggest contributor to AMULs total turnover. In
the 2004/05 financial year, this range brought in a turnover of INR 6.26 billion or EUR 125
million.
The turnover of UHT milk grew 23% in the last financial year compared to preceding year. The
turnover of ice cream rose by 10%, consolidating AMULs position as market leader. And
despite cut-throat competition, the sales of AMUL brand butter rose by 4.5%. The sales of
cheese and cheese spreads rose by 21%. Cheese includes cheese for pizzas. And, says Kurien,
other packaged products such as flavoured milk, fresh cream, paneer or cottage cheese also have
the potential to become major products bearing the AMUL brand within a couple of years.
As the countrys largest co-operative dairy, AMUL has developed a two-pronged strategy to
address this issue and develop national presence. Firstly, last year AMUL expanded its
distribution network to include some of Indias smaller cities. In so doing, the co-operative has
responded quickly to rapidly changing market conditions.
Situated all over India, these smaller cities are now promising markets with great purchasing
power as the incomes of Indias middle class are rapidly rising and the better-off rural families
are migrating to these developing cities. In the last financial year AMUL has introduced some
900 food wholesalers in these smaller cities to its product range. This initiative has already
started yielding results. AMUL products are increasingly available in smaller cities throughout
India. This initiative, which well be continuing for the time being, is generating additional
turnover, says Kurien. Director Khanna describes the second prong of AMULs expansion plan.
We expect that the milk production in our procurement area, the state of Gujarat, will increase
by 5% or more per year in the coming period. Thats the first source of growth. As not only the
dairy market but also the market for farm milk has been liberalised, we are now collecting milk
in six other places in India milk.
What is new that we would like to talk to other co-operative dairy companies. Most of them are
also organised by state following the Anand model. Our standpoint is clear. They know about
milk processing and we know about marketing. They can continue to produce dairy products that
we will sell under our strong AMUL and SAGAR brands. In this way, our partners will be able
to piggy-back on the success of AMULs ever expanding distribution network. He foresees a
future in which the players in Indias co-operative dairy world increasingly cooperate to offer the
Indian consumer a wide range of dairy products. It is completely obvious to him that AMUL
will be a driving force in shaping this new future. AMUL is Indias oldest dairy brand.
But it is more than a brand. It is also a question of belief. Belief in the co-operative, in a dairy
world owned by the dairy farmers.That is important because they and the rest of the population
in the villages must be pulled up to a higher standard of living, says AMUL director Khanna,
speaking straight from the heart.
Mithaee is an example of Indian sweets made with sweetened condensed milk. As AMUL delivers
this product in cans, it has a shelf life of nine months and can be stored outside the cooling
chain.
Article from India Dossier, ZuivelZicht - 14 december 2005
INDIAS TOP BRANDS
AMULS ADVERTISING AND MARKETING SPEND HAS NEVER EXCEEDED 1%
OF ITS REVENUES
By Rajeshwari Sharma Sat, Aug 25 2007. 3:30 AM
IST

SUMMARY: Media, brand consultancy Asian Integrated Media
Ltd and market research company Synovate done this survey on
the top brand in Asia, among this Amul comes one of the most
successful Indian business firm. It is because Amuls strategy of
using umbrella branding has paid off.
According to R.S. Sodhi, chief general manager, GCMMF. Our
strength comes from consistency, trust and relevance of our
products. Sodhi claimed that Amuls advertising and marketing
spend has never exceeded 1% of its revenues. Most other food
companies spend 6-7% of revenues on advertising and
marketing, he added. They (GCMMF) are not big spenders
compared to Britannia or Nestle. Despite a limited budget, Amuls
creativesin the form of billboards or the Taste of India
campaignhave always managed to evoke a larger-than-life
brand feel, consistency and spirit of Indian culture in a
contemporary way, said Shashi Sinha, executive director, FCB
Ulka, GCMMFs advertising agency.
We may end up touching a turnover of Rs20,000 cr by 2015
Wed, Oct 3 2007. 12:21 AM IST by Sunil Raghu
Bharat M. Vyas has been the managing director of Gujarat
Cooperative Milk Marketing Federation Ltd (GCMMF), the owner of
brand Amul, for more than 12 years. In an interview with Mint,
BM, as Vyas is referred to by many, discusses the business
strategy of Indias biggest cooperative firm, which finds itself
under increasing pressure from nimbler private sector rivals.