AMUL – THE TASTE OF INDIA

WHAT IS AMUL
Amul was the catalyst for India's White Revolution, which saw the country become the
world's largest producer of milk and milk products. Tribhuvandas Patel formed Amul under
the leadership of Sardar Vallabhbhai Patel, India's first deputy prime minister.
AMUL’S PRODUCTS AND MARKET RREACH
1. Amul Bread Spreads Range
2. Amul Beverage Range / Milk Drinks
3. Amul Powder Milk Range
4. Amul PRO
5. Amul Fresh Milk Range
6. Amul Cheese Range
7. Amul Cooking Rang
8. Amul Dhai Range
9. Amul Mithai / Desserts Range
10. Amul Health Drink
11. Amul Chocolates
12. Amul Ice cream
All the products are sold domestically as well
ASPECTS RELATED TO THE SUPPLY CHAIN OF AMUL
Process 1: Purchase it
Farmers and local cooperative groups are linked in Amul's upstream supply chain. The milk
is obtained from a local cooperative milk collecting centre and transferred to a cold storage
network in the following manner:

Amul issues a plastic card to each farmer who supplies milk to the company. The farmer's
identity number is recorded and sent to the local computer. The fat content of the milk was
determined by weighing it. Based on the fat content, the amount payable to the farmer is
computed. The value of the milk is printed on the slip, and the farmers get paid. To assure the
quality of milk and suppler well-being, the Village Co-operative Society provides cattle feed,
veterinary services, and rural health initiatives. Amul's workflow is digitally integrated with
Automatic Milk Collection Unit Systems from supplier identification to payment (AMCUS).
Amul has implemented Geographic Information Systems (GIS) at village collecting centres
to track milk. The Dairy Information and Service Kiosk (DISK) is designed to foster positive
relationships with suppliers.
The kiosk offers cattle producers with information to help them enhance their production and
connects them with dairy product and service providers with whom they may acquire or
collaborate. In order to increase performance, it also provides information and serves as a
decision support system for Village collecting centres.

Process 2: Process number two is to make it and then move it.

Milk is pasteurised at Amul's District Milk Unions, which are part of the Cool storage
network. The milk is obtained by District Milk Unions with chilling plants, which begins the
internal supply chain of "Make it." Amul's chillers (District Milk Unions) are strategically
positioned near the communities, and insulated rail tankers and chilled trucks supply to the
local chillers.
Amul arranges for rapid transportation to district facilities, where it is then dispatched to
consumers or processing facilities. Processed items are transported to distribution centres in
chilled trucks.
Electronic inventory tracking systems give data for replenishment schedules. Amul has used
VSAT to connect its zonal offices, regional offices, and member diaries, and Gujarat Co-
operative Federation has a strategic partnership with IBM to install SAP ERP on IBM
platforms.

Process 3: Get rid of it and sell it

Processed milk and dairy products are moved from dairy unions to GCMMF-owned
warehouses, according to Amul's downstream supply chain. GCMMF (Devas Naka) receives
orders and distributes products through 56 sales offices, a network of 10,000 dealers, and
100,000 retailers. Manufacturing units – Company depots – Wholesale depots – Retailers –
Retail Direct retailing via Amul's delectable parlours and franchisees.
Amul is in charge of distribution logistics, and the company pays for all transportation costs.
GCMMF keeps an eye on milk suppliers and finished goods wholesalers.
Effective reverse logistics helps to keep costs down. Amul has created a B2B and B2C site
that connects its suppliers, distributors, and customers, and it sells all of its items online
through cyber storefronts.

Process 4: Assemble it
As a cooperative society, Amul has effectively integrated its supply chain both vertically and
horizontally. The backward integration of Amul's supply chain with dairy farmers who are
members and village co-operative organisations that serve as collection centres is its primary
advantage.
Its forward integration to meet clients is via Amul's completely exquisite parlors/franchisees
and Amul's cyberstores.
Issues and Challenges at the small suppliers’ level
1. Inadequate feeding of animals
2. More disease incidence
3. Low genetic potential of animals
4. Lack of chilling capacities
5. Exploitation of farmers
6. High production costs
7. Delayed payment of dues
Issues and Challenges at Collection location Level
1. Milk base mainly consisting of small holders
2. Involvement of too many intermediaries
3. Gaps in information
4. Absence of a screening system
5. Lack of Infrastructure
6. Manipulation of the quality of milk by the farmers
Issues and Challenges at the Processing stage Level
1. Seasonality of production and fluctuating supply
2. Absence quality standards
3. Adulteration and Food safety
4. Lack of trained and skilled workers
Issues and challenges at the Storage and Logistics stage Level
1. Lack of cold storage facilities.
2. Gap in the cold chain and transport facilities
Issues and Challenges at the Co-operative Level
1. Less number of member farmers
2. Lower participation in the decision making process
3. Losses
4. Low prices of milk
5. Inefficient service

Distribution:
GCMMF worked with a number of labour unions to ensure a steady supply of milk and dairy
products.
District dairy unions provided the processed milk and dairy products, which were then
delivered by third-party distributors. GCMMF and the district unions had many measures in
place to assure quality and timely deliveries. The VCS kept a close eye on the milk deliveries
and made sure that the milk was picked up on schedule. The supply of milk and the
distribution of completed goods were both supervised by the unions.
Future hold of amul post covid:
The organised packed food brand sector has benefited from Covid-19. The change to
organised branded and packaged food will have a favourable influence in the next one or two
years. This transition will be irreversible. The move from unorganised to packed was already
occurring, but at a rate of 7% to 8%, but during Covid, it amplified by two to three times, and
this is irreversible for companies that are trustworthy and affordable, and Amul meets all of
these criteria.
He said that the market was there for the taking, despite the fact that just one-third of the milk
market sector was organised. Amul would have to buy more, process it, advertise it, and
expand its distribution network. The dairy business is currently valued at Rs 8 lakh crore,
with the organised sector accounting for only Rs 2.5 lakh crore and Amul accounting for only
Rs 52,000 crore. Amul has set an objective of doubling revenue to Rs 1 lakh crore by 2024,
up from Rs 52,000 crore now, by acquiring, processing, and marketing more. Amul will
invest Rs 1,000 crore this year and roughly Rs 5,000 crore over the next five years in milk
processing infrastructure expansion.

Name: Shantanu patil

TYBBA (A)
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