Quick Case HBP No.

8255

Amul Dairy: Expanding a Legacy

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The Scenario
Amul is a go-to household name in India for 27 food categories, primarily dairy-related. Since 2015, Amul

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has leveraged its supply chain and marketing efforts to expand its portfolio, with 101 product launches and
101 stock-keeping units (SKUs) in 27 new product categories ranging from snacks to savory foods to

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organic produce.1 Amul’s managing director, Jayen Mehta, oversaw this expansion and appeared ready to
continue it.2
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However, the expansion could compromise Amul’s strong legacy and its underlying brand equity. Would
extending into these categories under Amul's name dilute its brand? Further, how much would doing so
expose Amul to competition from the many national and international companies in India that offered
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similar products?
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Fast Facts: Amul Dairy

• Company type: Cooperative
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• Industry: Dairy products

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• Founded: 1946 under Gujarat Cooperative Milk Marketing Federation Limited (GCMMF)
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• Headquarters: Anand, Gujarat, India

• Revenue (FY23): INR 55074 crores (approximately USD $6.61 billion)3

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• Year-over-year revenue growth: 18.5%4

• Key people: Shamalbhai B. Patel, Chairman; Valamjibhai R Humbal, Vice Chairman; Jayen
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Mehta, Managing Director

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Amul Dairy: Expanding a Legacy HBR Quick Case

Background
Since 1946, GCMMF has marketed a range of affordable milk-derived products across India to middle-
class customers under the name Amul (an acronym for Anand Milk Union Limited). Jayen Mehta observed
that, “at Rs 10 lakh crore (USD $120 billion), milk was larger than wheat, paddy, and oilseeds combined”.5
Milk and milk products constituted 96% of GCMMF’s revenue.6

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Although dairy was a commoditized sector, Amul built brand equity around Indianness, purity, and
inclusiveness. Amul also expanded beyond milk into products with better margins and higher growth rates

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for years. Curd, paneer, cheese, and chocolates, all products that use milk, grew 32%, 21%, 18%, and
27%, respectively during the 2019–2020 fiscal year.7 In addition, urbanization, increasing disposable
income, and health consciousness were expected to accelerate the consumption of pure, packaged dairy
products with a long tail of value-added dairy products.8

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However, consumers did not relate Amul to products distant from dairy.9 Amul has also faced challenges
in expanding its supply chain. For instance, two years after it began leveraging its infrastructure to expand

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into frozen snacks beyond ice cream, many of these new products lacked the retail presence of Amul’s
dairy products.10
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The Ask
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1. Should Jayen Mehta continue extending Amul's brand?

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2. What product extensions would you recommend for Amul to leverage the brand without
diluting it?
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This Quick Case was prepared by Ashita Aggarwal of SP Jain Institute of Management & Research. HBR Quick Cases are
developed solely as the basis for class discussion. They are not intended to serve as endorsements, sources of primary data, or
illustrations of effective or ineffective management. This publication may not be digitized, photocopied, or otherwise reproduced,
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posted, or transmitted without the permission of Harvard Business Publishing. All industry and company data in this Quick Case is
publicly available.

Copyright © 2024 Harvard Business School Publishing Corporation. All rights reserved.

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Amul Dairy: Expanding a Legacy HBR Quick Case

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1
Venkata Susmita Biswas, “Amul adds zing to its kitty; broadens product portfolio," Financial Express, December 7, 2020,
https://www.financialexpress.com/business/brandwagon-amul-adds-zing-to-its-kitty-broadens-product-portfolio-2144538/#, accessed
February 13, 2024.
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Shuchi Bansal, “We will scale our organics portfolio in a short time”: Amul’s Jayen Mehta,” Storyboard 18, September 24, 2023,
https://www.storyboard18.com/brand-makers/we-will-scale-our-organics-portfolio-in-a-short-time-amuls-jayen-mehta-14305.htm, accessed
February 13, 2024.

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Krishna Gopalan, “Amul's big pivot: How the dairy major is looking to make a big play in the foods space,” Business Today,
https://www.businesstoday.in/interactive/photo-essay/amuls-big-pivot-118-27-10-2023, accessed February 13, 2024.
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“Amul revenue up 18.5% in FY'23 to Rs 55,055 crore,” The Election Budget, April 2, 2023,
https://www.moneycontrol.com/news/business/amul-revenue-up-18-5-in-fy23-to-rs-55055-crore-10350451.html, accessed February 13,
2024.

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Krishna Gopalan, “Amul's big pivot: How the dairy major is looking to make a big play in the foods space,” Business Today,
https://www.businesstoday.in/interactive/photo-essay/amuls-big-pivot-118-27-10-2023, accessed February 13, 2024.
6
Krishna Gopalan, “Amul's big pivot: How the dairy major is looking to make a big play in the foods space,” Business Today,
https://www.businesstoday.in/interactive/photo-essay/amuls-big-pivot-118-27-10-2023, accessed February 13, 2024
7
Venkata Susmita Biswas, “Amul adds zing to its kitty; broadens product portfolio," Financial Express, December 7, 2020,
https://www.financialexpress.com/business/brandwagon-amul-adds-zing-to-its-kitty-broadens-product-portfolio-2144538/#, accessed
February 13, 2024
8
Krishna Gopalan, “Amul's big pivot: How the dairy major is looking to make a big play in the foods space,” Business Today,

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https://www.businesstoday.in/interactive/photo-essay/amuls-big-pivot-118-27-10-2023, accessed February 13, 2024.
9
Venkata Susmita Biswas, “Amul adds zing to its kitty; broadens product portfolio," Financial Express, December 7, 2020,
https://www.financialexpress.com/business/brandwagon-amul-adds-zing-to-its-kitty-broadens-product-portfolio-2144538/#, accessed
February 13, 2024.

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Venkata Susmita Biswas, “Amul adds zing to its kitty; broadens product portfolio," Financial Express, December 7, 2020,
https://www.financialexpress.com/business/brandwagon-amul-adds-zing-to-its-kitty-broadens-product-portfolio-2144538/#, accessed
February 13, 2024.
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