HISTORY

Amul ("priceless" in Sanskrit. The brand name

"Amul," from the Sanskrit "Amoolya," (meaning
Precious) formed in 1946, is a dairy cooperative in
India. It is a brand name managed by an apex
cooperative organisation, Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF)
The Gujarat Cooperative Milk Marketing Federation
Ltd, Anand (GCMMF) is the largest food products
marketing organisation of India.

In 1997, Amul ice creams entered Mumbai followed

by Chennai in 1998 and Kolkata and Delhi in 2002.
The portfolio consisted of impulse products like
sticks, cones, cups as well as take home packs and
institutional/catering packs.
It achieved the No 1 position in the country. This
position was achieved in 2001 and it has continued
to remain at the top.

Today the market share of Amul ice cream is 38%

share against the 9% market share of HLL (Kwality
Walls), thus making it 4 times larger than its closest
competitor.
Not only has it grown at a phenomenal rate but has
added a vast variety of flavours to its ever growing
range.
In January 2007, Amul introduced SUGAR FREE &
ProLife Probiotic Wellness Ice Cream, which was a
first in India.

Amuls entry into ice creams is regarded as

successful due to the large market share it was
able to capture within a short period of time due
to price differential, quality of products and of
course the brand name.

FACTS
The portfolio consisted of
impulse products like sticks,
cones, cups as well as take
home packs and
institutional/catering packs.
In 1997, Amul ice creams
entered Mumbai followed by
Chennai in 1998 and Kolkata
and Delhi in 2002. Nationally
it was rolled out across the
country in 1999.

 Has combated competition like

Walls, Mother Dairy and achieved
the No 1 position in the country.
Today the market share of Amul ice
cream is 38%.
Amuls entry into ice creams is
regarded as successful due to the
large market share it was able to
capture within a short period of
time.

Ice Cream Industry in India

Industry Snapshot: Market Size - 1200 Crores
Ice Cream market is growing at 26%

Major players: Amul - Market Leader with share of 36%

HLL - Kwality Walls - 2nd biggest player
Mother Diary
Arun - Chennai Based Hatsun Agro Product

COST SHEET
Particulars
Opening Stock
Raw Materials
Dry Fruits
Milk
Flavours
Other Ingredients
Sugar
Cup
Cutlery
Seasonal Fruits
Waffle
Cocoa

Carriage Inward
RAW MATERIAL
CONSUMED

CPU
10
3
2.5
3
3.5
2
2.5
1.5
1
0.5
1
1.5
8
1.845
33.845

Amount
1000000
300000
250000
300000
350000
200000
250000
150000
100000
50000
100000
150000
3200000
184500
3384500

Particulars
Direct Expenses
Direct Labour
PRIME COST
Factory
Overheads:
Fixed:
Depreciation
Rent
Power
Insurance
Supervisors
Salary
Variable:
Electricity
Running exp of
machine
WORKS COST

CPU

Amount

2.2
5.3
40.045

2.5
1
1.75
1.5
0.6

0.7
1
9.05

220000
530000
4134500

250000
100000
175000
150000
60000

70000
100000
905000

50.395

5039500

Particulars

Office Overheads
Employee Cost
Other Expenditure:
Computer
Telephone
Taxes
Carriage Outward
COST OF
PRODUCTION

Opening Stock
-Closing Stock
COST OF GOODS SOLD

CPU

10
1.2
0.1
0.4
0.2
62.295

64.295

Amount

1000000

120000
10000
40000
20000
6229500

200000

6429500

Particulars

CPU

Amount

4
3.5
1.75
0.505
74.05

400000
350000
175000
50500
7405000

18.5

1851250

92.5625

9256250

Selling&Dist Exps:
Advertisement
Delivery Vehicles
Petrol
Packaging Rates
COST OF SALES

PROFIT

SALES

MARGINAL COST SHEET

SALES
Variable Cost:
Purchases
RM Consumed
CONTRIBUTION
- Fixed Cost
Factory Expenses
Employee Cost
Depreciation
Other Expenditure
PROFIT

9256250

3200000
3384500
2671750

905000
1000000
100000
190000
476750

COST SHEET ANALYSIS

The company is producing 100000 units of ice
cream at Rs. 74.05 for which the total cost
incurred is
Rs. 7405000 and the total sales is
Rs. 9256250 which implies that that the profit
being made is Rs. 1851250.
The company is producing a single cup of ice
cream at Rs. 92.5625 which includes the cost of a
cup ice cream at Rs. 74.05 which again implies
that the profit of Rs. 18.5125 is earned on a
single unit of Amul ice cream.

Since the company is earning some percentage of profit

above the cost, it means a slight increase in the cost
will not have too much of an effect on the profit since
there is a large margin of safety.
Since the company is earning some amount of profit,
the business is capable to expand and diversify over a
period of time.

PVR = C/S = 2671750/9256250 = 28.86%

BEP (in Rs.) = FC/PVR = 2195000/28.86 =
Rs.760568.26
BEP (in units) = FC/C = 2195000/2.67175 = 821558.9 =
821559
MOS = Profit/PVR = 476750/28.86 = 16519.404

Determination of SP
Amul Ice Cream has marked the selling price of their
product roughly 20% above the cost price.
This implies that they are making a profit on each unit
of output that is sold.
These profits can be ploughed into the business again to
create more output.

THANK YOU