amul final report 2012.docx

8/9/2019 amul final report 2012.docx

1/35

Galvanising Amul Sales

CAPSTONE fnal REPORT


2/35

INDEX

Topics Pg No.

1. Executive summary 4

2. Project objective 4

3. Dairy Inustry In Inia !

4. Introuction to "mu# $

!. %&'T "na#ysis '( "mu# )

$. 'bj 1* business port(o#io ana#ysis 11

+. 'bj2* ,orecasting esire gro-t rate 2/

0. 'bj 3* strategies to acieve reuir gro-t rate 22

a. Prob#em (ace*

i #oba#iation 22

ii 5ompetition 22

iii cost increase 23

b. gro-t (actors

i prouction yie# 2!

ii supp#y cain 2$

iii sa#es an istribution 20

iv exports 2)

v price reuction 31

vi prouct innovation 32

vii mar6eting7 av an pac6aging 33

). bib#iograpy 3!

EXE58TI9E %8::";


3/35

"mu# is a unique example of cooperative which has successfully established itself in dairy

products market which is quite commendable. Amul is the largest co-operative movement in

India with 2.8 million milk producers organied in !"#$$2 co-operative societies and 2.!$ billion

turnover in 2"!"-2"!!. %he country&s largest food company# Amul# is the market leader in butter#

whole milk# cheese# ice cream# dairy whitener# condensed milk# saturated fats and long life milk.

Amul follows a unique business model# which aims at providing &value for money& products to its

consumers# while protecting the interests of the milk-producing farmers who are its suppliers as

well as its owners. 'espite being a farmers& co-operative# Amul has given multinationals a run

for their money.

'uring the financial year 2"!"-!!# ()**+ registered impressive topline growth of 22.!,#

achieving turnover of s. //0 crore. %his performance is even more remarkable# when viewed

from the perspective that the organiation was able to achieve ! billion dollar turnover in the

11rd year of its formation while it took only ust four more years to add another ! billion dollarto its turnover. %urnover of ()**+ registered )A( of 21, during the last 0 years. 'uring

the year 2"!"-!!# ()**+ paid s. 810$ crore to its 1" lakhs farmer members. 3ayout to

farmers also registered 21, )A( in last 0 years.

4o# through this proect we attempt to do the portfolio analysis of the wide range of products# and

its 456% analysis to find out the current status of A*7. +urther suggest the growth strategies

for the potential products to galvanie its sales to 2"#""" in $ years from //0 crore.

Project objective9

%he proect:s obective is

%o analye business portfolio of each product line.

%o forecast the desired year by year growth rate required to achieve target of s. 2"#"""

cr in $ years

%o suggest strategies to achieve the above mentioned growth rate.

Dairy inustry in Inia


4/35

'uring the pre-independence era# public and private agencies dominated the dairy industry#

although government policy did not favour any one organiational form. ;arly efforts to organie

dairying along cooperative lines were made immediately after the enactment of the )ooperative

4ocieties Act# !!2. %he present day allabhbhai 3atel. %he dairy farmers of the then ?heda 'istrict of (uarat organied themselves

to form a dairy cooperative in order to directly undertake sale and processing of milk collected

from member dairy farmers of the district.

%he government of India took some steps to improve the quality of milch animals and their

productivity through the ?ey >illage 4cheme. 'uring the two decades between !$! and !/"#

milk production grew by barely ! per cent annually# while per capita milk availability declined

by an equivalent amount.

'uring the !="s# various state governments tried different strategies to develop dairying#

including establishing dairies run by their own departments# setting up cattle colonies in urban

areas# and organiing milk schemes. Almost invariably# dairy processing plants were built in

cities rather than in the milk sheds where milk was produced. %his urban orientation to milk

production led to the establishment of cattle colonies in *umbai# )alcutta# and *adras. %he

obective was to meet the demand for milk and milk products in big cities through improvements

in milk collection# processing# and distribution.

%he 6peration +lood @6+ programme implemented by the Bational 'airy 'evelopment Coard

@B''C from !/" to != played the key role in bringing about the transformation in dairy

development in the country. %he 6+ programme established milk producers: cooperatives invillages and made modern technology available to them. %he broad obectives were to increase

milk production @Da flood of milkD# augment rural incomes# and transfer to milk producers the

profits of milk marketing that were hitherto enoyed by well-to-do middlemen.


5/35

INT;'D85TI'N* ":8=

Amul was set up in !0= and its full form is Anand *ilk- producers 7nion td. It is an

organisation which focuses on the promotion of the interests of its members in accordance with

the principles of co-operation.

Amulfollowed a unique business model# which aimed at providing &value for money& products

to its consumers# while protecting the interests of the milk-producing farmers who were its

suppliers as well as its owners. Amul bought all the milk offered by the milk producer# made

timely payment# and shared with the producers the profit generated from marketing the milk and

milk products under the Amul brand name.

%he management of the brand name is done by the (uarat )o- operative *ilk *arketing

+ederation td @()**+ which is a cooperative organiation.

=ocation*

Amul is located in town Anand which is in the state of (uarat and it has set up itself as a model

for development in the rural areas. +or Amul Crand has started the evolution 5hite of India

which has helped to make the country the biggest manufacturer of milk and its by products in the

whole world. Amul has around 2.8 million producer members and the total capacity for handling

milk is around !".!= million liters every day. %he brand&s capacity for milk drying is around $0

*ts. each day and its capacity for cattle feed manufacturing is about 2=0" *ts each day

>ac6groun note*

Amul&s genesis was linked to the freedom movement in India. 4ardar >allabhbhai 3atel# aneminent Indian freedom fighter encouraged the dairy farmers from the ?aira district in (uarat toform a cooperative to counter the &exploitatively& low prices offered for their milk by themonopoly milk supplier of the area# 3olson&s 'airy. %he dairy farmers met in 4amarkha @?airadistrict# (uarat on the 0thof Eanuary !0=# and decided to set up a milk producers& cooperativethat would deal directly with the Combay government# the final buyer of their milk. %his was theorigin of the Anand model.

Initially# when the Combay government refused to deal with the cooperative# the farmers called astrike. %he government finally relented when Combay went without milk for a fortnight. %he

successful union registered itself as the ?aira 'istrict )ooperative *ilk 3roducers& 7nion td.@?)*37# Anand# in (uarat in 'ecember !0=.

7nder the chairmanship of %ribhuvandas 3atel @3atel# the ?aira 7nion# headquartered in Anand#began with two milk societies# and a daily milk collection of 2$" litres. 5hen it startedoperations# the cooperative included two tiers. At the base was the primary village dairycooperative society @')4 of milk producers. 4everal such village cooperatives together formedthe district milk producers& union at the second level# which was entrusted with procurement and


6/35

processing of milk. Cy appointing qualified technologists and professional managers# thecooperatives helped the farmers to leverage modern management practices and technology.>arghese ?urien&s @?urien association with ?)*37 began soon after the inception of thecooperative

Port(o#io*

Amul is the biggest brand in the pouched milk sector in the world and in India it is the biggestfood brand. Amul&s range of products includes milk# ghee# milk powders# curd# ice cream# paneer#cream# chocolate# cheese# butter# and shrikhand.

In butter# cheese and saturated fats# Amul has remained the undisputed market leader since itsinception in !$$# by offering quality products at competitive prices. In other categories# Amulhas nullified its late mover disadvantage through aggressive pricing# better quality# innovativepromotion# and superior distribution

%he various brands of Amul&s bread spreads are Amul ite# Amul Cutter# and 'elicious %able*argarine.

%he Crand Amul&s milk drinks are sold under various names such as Amul ?ool# Amul

?ool )afe# ?ool ?oko# Amul ?ool )hocolate *ilk# and Amul *asti 4piced Cuttermilk.

Amul&s powder milk is sold under many names like Amulya 'airy 5hitener# 4ugar

%ea )offee 5hitener# 4ugar 4kimmed *ilk 3owder# and Amul Instant +ull )ream *ilk3owder.

%he brand&s cheese is also sold under various names such as (ouda )heese# Amul

)heese 4preads# and Amul ;mmental )heese.

Amul Crand&s desserts are sold under many names like Amul Casundi# Amul assee#

(ulab Eamun *ix# Amul 4hrikhand# and Amul Ice )reams.

>usiness mar6ets*

Amul exports its products to various countries such as 74A# Australia# *auritius# )hina# Fong?ong# 4ingapore# 7A;# and Cangladesh

'rganiation structure9

%he cooperative model pioneered by Amul - a union of primary village dairy cooperatives- cameto be known as the DAnand patternD cooperative system. It was a three-tier structure thatcomprised village societies# district level dairy unions and a state level federation.

;ach tier was economically independent of the others and comprised representatives electedfrom the tier below it. %he organiations at each level were governed by their own bylaws# and


7/35

were managed by democratically elected boards. %he primary milk producers democraticallygovern this entire federal cooperative structure to ensure that the higher-tier organiations servethe purpose of the lower levels and that the gains at all levels flow back to the milk producers insignificant measure.

7nder the Anand 3attern structure# individual farmers are oined in village-level dairycooperative societies @')4# which are oined to form district-level unions# which in turn areoined in state-level marketing federations. In each state# the Anand 3attern features9

decentralied milkproductionby the small milk producersG

milkprocurementby the village-level dairy cooperative societiesG

centralied milkprocessingby the district-level unionsG and

marketingof milk and milk products by the state-level federation.

%he value added at the procurement and processing stages can be realied by the cooperativesonly through control over marketing# which is therefore an essential requirement for success. Incontrast# many dairy cooperatives worldwide end up as suppliers of raw material to privatecompanies that own the brands and control marketing. Cy cutting out the need for middlemen inprocuring and selling milk# the Anand 3attern cooperatives have helped to reduce seasonal pricevariations and have enabled the farmers to enoy the fruits of their labour instead of surrenderingmost of the profit to corrupt and exploitative middlemen.

Pricing*

Amul&s philosophy had all along been to deliver value for money to its customers. 'espite beingpriced economically# Amul maintained its product quality.

Distribution*

()**+&s formidable distribution network comprised 1"" stock keeping units# 0= sales offices#1#""" distributors# !""#""" retailers with refrigerators# an !8#"""-strong cold chain# and $""#"""non-refrigerated retail outlets

"v an sa#es promotion*

6ver the years# Amul&s advertising philosophy had been Dto be simple# fresh and innovativeD. %heclean# emotion-based ads refrained from using hi-tech special effects# and aimed at maintainingthe perfect balance between the traditional and the modern...

=oo6ing aea*


8/35

%he liberaliation of the dairy industry in !! had seen a number of multinational players likeCritannia# e Con# 'abon and Fi-ife enter the sector.

Analysts wondered whether a co-operative with limited financial means could stand up to themight of these *B)s# and if its low pricing strategy would continue to stay relevant. *B)s like

3ia Fut# 'omino&s# Findustan ever imited and )adbury had also become competitors. Amulhad proved its detractors wrong and firmed up ambitious growth plan

'bjective 1* >8%INE%% P';T,'=I' "N"=')4. Average collection of 8.0 million litres per day and affiliated to !1 'istrict)o-op *ilk producers union. All dairies are I46 ""!-2"""# I46 22"""# FA))3 certified.

4pecial features9 Amul milk is the most hygienic liquid milk available in the market. it is

pasteurised in state-of-the-art processing plants and pouch-packed to make it conveniently

available to consumers.


9/35

Proucts*A*7 fresh milk# A*7 (old milk# A*7 %aaa 'ouble %oned milk# A*7 ite

4lim and %rim milk# A*7 4hakti %oned milk# A*7 )alciH# A*7 fresh cream

%&'T "na#ysis:

4trengths* 5orld:s largest pouched milk brand# (ood quality and affordable pricing#

(ood product mix# 'iverse range of products# (ood distribution network# A*7:s brand

image#

5eakness* Fighly complex supply chain# 'ependence on suppliers @farmers who are not

a part of the organied sector

6pportunities* 3enetrate international market# rural market# huge potential for expansion#

Bew product launches

%hreats* Intense competition from Critannia# Bestle# *other 'airy# ocal )ooperatives#

ising prices of milk# outh do not relate to milk as a hap drink# ising prices of

production of milk like unavailability of cattle feed

;ecommenations

A*7 could expand to rural markets. As the disposable income in rural India is increasing there

is increasing demand for value-added food products.

3romotions through %> and radio channels which reach the rural areas. A*7 could expand to

emerging markets of small towns. A*7 could introduce new products.

"mu# :i#6 Drin6s

Introuction*Amul is all set to further consolidate its position in the beverages market with the

introduction of milk shake under brand name Amul is all set to further consolidate its position in

the beverages market with the introduction of milk shake under brand name Amul ?ool *ilk

4hake in 0 exciting flavors Canana# *ango# 4trawberry and Cadam. Amul ?ool *illk 4hake#

targeted at youth J teenagers# is the balanced blend of best quality fruit solids @Canana# *ango#

4trawberry and goodness of milk. 3riced at s. 22K- for a 22" ml. in convenient J stylish worldclass )an packing.

Proucts9 %he Crand Amul&s milk drinks are sold under various names such as Amul ?ool# Amul

?ool )afe# ?ool ?oko# Amul ?ool )hocolate *ilk# and Amul *asti 4piced Cuttermilk# Fealth

'rinks.


10/35

%&'T "na#ysis

%trengt* oo prouct range7 oo avertising an pac6aging

'pportunity* Pet bott#es7 Tie?ups -it co##eges@institutions7 ;ep#acement (or aerate

rin6s7 create consumer a-areness (or ea#t rin6s

&ea6ness* Not enoug bran visibi#ity

Treats* %o(t rin6s as inirect competition 7 Aarey ;nergy *ilkK assi# *% *ilk#

ocal *ilk brands

;ecommenation@ana#ysis*

%he market for health food drinks is a whopping ="#""" tonnes# and traditionally# the market for

white beverages is much larger than for cocoa-based drinks. ()**+ is eyeing !" per cent

volume share of the market within " days of launch and becoming the market leader in thiscategory within three years. %he plans appear ambitious since the white health food drink

market# estimated to be at s "" crore# is already saturated and kids @the main target consumers

prefer brown beverages that contain cocoa. Also# the health food drink industry# as a whole#

appears to be facing a slowdown# the market leader in the white health food drink category# had

to be relaunched last year with the new positioning as a drink for youth against the earlier thrust

on convalescents# and other brands in the white drinks category also appear to be facing a tough

market.Amul 4hakti is being positioned as a milk food that has Dreal milk for real nourishmentD

and it has to l provide the brand mass media support to create consumer awareness.

Ice cream* Area# mi#6 ice cream

Introuction9 the target segment of this product is Luality conscious children and adults and has

positioned itself as 3remium Ice )ream made in various varieties and flavors with dry fruits and

nuts. >arious verities of Ice )ream can be made from the basic mix by addition of required

amount of permissible colors and flavors

Proucts9 vanilla royal# royal treat range# nature:s treat# assorted treat# utterly delicious# sundae

range# nut-o-mania%&'T ana#ysis9

4trength9 (ood product range# good quality and packaging

5eakness9 Bot enough brand visibility# ess advertising


11/35

6pportunity9 Figh ;nd ice-cream# %ie-up with food chains# *obile vans for better visibility

%hreat9 ?ulfi in rural markets# ocal ice creams and sweet dishes

5ompetitors9 ?wality 5alls# Caskin obbins# >adilal

;ecommenation@ ana#ysis9

If there is any provision of installments to purchase freeer then many customer can be

attracted to keep Amul ice cream because many customer are not able to invest huge amount

of !$#""" M 2"#""" at a time.

*arket in this sector is not exploited much by any other competitors so# it:s the favorableopportunity for the company to initiate and take the lead and capture the market by giving

some relaxations to the customer.

As there are various colonies in this sector# thus pushcarts can also be introduced in this

sector to increase the penetration

>;E"D %P;E"D* Autter#y butter#y e#icious amu#

Introuction9 most trusted butter brand# aunched in !$$# butter was one of the first milk

products offered by Amul. It was also the first time Amul successfully challenged the hegemonyof an established brand. Amul&s earliest competitor# 3olson had been the monopoly milk supplier

to the Combay *ilk 4cheme. Amul displaced 3olson to emerge as the undispute d leader in the

butter market. It targets Fealth and quality conscious people of ower# middle and upper class.

Proucts9 Amul Cutter# Amul ite ow +at Cread spread# Amul )ooking Cutter

%&'T ana#ysis9

4trength9 )reative advertising with Amul Caby# Figh brand presence# Figh visibility# ;xcellent

product quality and trusted name# Affordable price

5eakness9 4ome people don:t prefer butter form cow:s milk and prefer local homemade butter

6pportunity9 4maller packages# Bo frills packaging for rural customers at lower cost

%hreats9 ocal butter manufacturers# ow +at ow cholesterol butters like Butalite


12/35

5ompetitors9 Critannia 'airy butter# Bestle Cutter

;ecommenation@ana#ysis9

Amul has used the hoardings and advertising to perfection. %aking cues from new films#

celebrities# the creative:s are fun to watch. *ore over Amul has sticked with the creativemessages throughout. %he Amul brand is that they have been consistent over the communication

campaign and brand strategy. A*7 has positioned itself as BTaste o( IniaCand have ensured

that their communication is in line with their positioning strategy. %he Amul girl who lends

herself so completely to Amul butter# created as a rival to the 3olson butter girl. %hus creating a

creative and positioned as leader now it:s time to plan to enter into foreign market by spending

the amount on J' and trying to reduce prices by maintaining the same quality and image

which will help it to face competition and enter into other market at competitive prices.

5eese*

Introuction9 ()**+ launched processed cheese in !$ followed by cheese powder in the

early !/"s. It pioneered the market for processed# branded cheese. ()**+ developed the

technology to make cheese from buffalo milk. 5orld over it is made from cow milk. ()**+

has a wide range of products in the processed cheese segment. Its cheese business grew at !8,

in 2""$-2""=. ()**+ exports cheese to the tune of ="" tons# making it the largest cheese

exporter in the country. Its 743 is quality.

Proucts9 Amul 3asteuried 3rocessed )heddar )heese #Amul 3rocessed )heese 4pread# Amul

3ia @*oarella )heese# Amul 4hredded 3ia )heese# Amul (ouda )heese# Amul *alai3aneer @cottage cheese# +roen# efrigerated and %inned #utterly 'elicious 3ia# Amul

;mmental )heese

%&'T ana#ysis*

4trength9 )reative advertising# Figh brand presence# Figh visibility# ;xcellent product qualityand trusted name

5eakness9 ow product rangeK taste

6pportunity9 4maller packages# Bo frills packaging for rural customers at lower cost# Bewer

tastesKvarieties# %ie up with restaurantsKfood chainsKpia parlors

%hreats9 (rowing market share of other players

5ompetitors9 Critannia )heese# Critannia Industries# 'ynamix 'airy Industries @''I#

Firanandani# ;%A and *etro.


13/35

;ecommenation@ ana#ysis* %he Amul brand represents &value for money& to the Indian

consumer and its cheese portfolio is competitively priced and of assured quality. %he company

has been aggressively marketing its cheese products# to the extent of even moving away from its

umbrella brand strategy and introducing a new mascot# the Amul )heese Coy. 5hen low cost

pias were introduced# ()**+ adopted an innovative and successful strategy of increasing

sales of an elitist product @cheese by reducing the price of another elitist product @pias.

;specially since 2""$# the company has focused on expanding its already strong distribution

network to smaller cities as cheese demand has rapidly expanded beyond the large metros.

5oco#ates* Ataste o( Inia

Introduction9

Amul is known for quality and affordability.)hocolate market is estimated to be around !$""crore @A) Bielson growing at !8-2", per annum. %he per capita consumption of chocolate in

India is 1"" gram compared with !. kilograms in developed markets. Amul entered in

chocolates segment in !/". 6ver /" per cent of the consumption takes place in the urban

markets. %he target segment is Luality conscious children and adults and positions itself as %aste

of India by giving them quality products

Proucts* *ilk )hocolate# +un doo *ilk )hocolate# 'ark )hocolate# +ruit J But# Almond bar

%&'T ana#ysis*

4trength9 (ood product range# (ood quality and packaging

5eakness9 Bot enough brand visibility# ess advertising

6pportunity9 %ie-ups with celebrities# 4pecial occasion packages

%hreat9 ocal sweet dishes

5ompetitors*)adburys# Bestle# *ars@with all its child brands

;ecommenations@ "na#ysis*

Amul shouldeuvenate and strengthen the existing brands by extending its reach to semi-urban

and rural markets. 4ell its products through &non?traitiona#& outlets like music stores@such as

*usic 5orld# ma##s# reno-ne boo6storesand popular appare# out#ets@such as 3antaloons

and 5ills 4port boutiques.


14/35

DE%%E;T%

Introuction* 'eserts market in India is growing at around )A( of !1-!$,. Amul has very

less contribution from this category towards its profit @$ ,. %he company is trying to change itsmarketing strategy and try to fill the (aps available by launching new products and spending on

its J' so that it can improve the quality and produce at less prices which help it to give

compete with local players

Proucts* amul mithaee mate# gulab amun# shrikhand# kulfi mix# amul basundi# asvar ladoo#amarkhand#amul flaayyo yoghurt.

%&'T "N"=


15/35

3roducts9 Amul (hee# 4agar (hee @made from fresh cream# Amul ellow@)ow (hee

"mu# paneer*

Amul is the market leader in the organied sector for milk products with over $", market share.

3resently it is the only national brand that makes paneer right now. In 2"" they opened a newstate of the art manufacturing facility at ?hatra near *ehmedabad which increased its

manufacturing capacity from !""" to 8""" tonnes per year thus increasing the shelf life of the

paneer and also will help reach farther areas. %o reach the economies of scale the whey powder

produced as by product has been planned to be used to produce health supplement powder.

%he basic product features are9-

It is the most convenient form of paneer which is rich in proteins.

It has high fat and low moisture than loose paneer available in market.

3aneer has smooth# uniform texture and softness.

%&'T ana#ysis*

4trength* Crand name# Availability# 3resence in dice form

5eakness* Bo advertisement# eplacement problems7 ack of awareness7 ack of coordination

between distributors and retailers7 uneducated salesmen

6pportunities* Availability blocks paneer of $""gm and !kg# 3oor coordination and distribution

of local brands.

%hreat9 )ompeting brands @5arana >iaya# ;merging brands @nestle# mother dairy paneer

Dai

'ahi or )urd plays a key role in the Indian diet and in preparation of delicious dishes. It is ideal meal

accompaniment and is delicious as well as nutritious by itself too. It is also used to marinate veg. and non-

veg. dishes. 'ahi is well known for its nutritive values.

Proucts* *asti 'ahi# Amul 3robiotic 'ahi# Amul +lavvyo ogurt

%&'T ana#ysis*

4trengths* Crand name# Availability in various sies

5eakness* ack of advertisement7 imited availability of Amul yogurt#ack of awareness of probiotic

'ahi7 ack of coordination between distributors and retailers7 7neducated salesmen7 Fighly perishable

6pportunity* 3oor coordination and distribution of local brands.


16/35

%hreats* )ompetitive Crands available @Critannia# *other dairy# Bestle# 3eople prefer dahi from local

milkmen

"mu# Pia

Amul currently sells about 1#$"" tonnes of cheese annually# which translates into a /" percent market

share. 6f this tonnage# moarella cheese - the semi-soft# high-moisture# unripened variety used for pia

making - accounts for roughly /""-8"" tonnes. Amul has targeted opening 1#""" pia retail franchise

outlets all over the country by the year&s end. %his is expected to boost the company&s annual sales of

moarella cheese alone by more than 0#""" tonnes.

ecommendationK analysis9

Amul was successfully able to launch the 3ia# Amul had an advantage with regard to 3ricing too but the

product failed due to the following reasons. %he problem it had was of winning the trust of the consumer

over the quality and freshness of the 3ias as they were froen and were manufactured quite a few daysback. 3ackaging# tastes and franchisee model were also questionable.

"mu# %oup

%F; (uarat )o-operative *ilk *arketing +ederation @()**+#rolled out a range of heat-and-serve

soups. Interestingly# the heat-and-serve soups were sold under the brand name *asti# and not Amul.

*asti soup was introduced in two flavors - hot J sour and tomato N to begin with# and is likely

to be extended to vegetable and sweet corn flavors subsequently. ()**+ is producing the

soups in its (andhinagar *other 'airy facility.

Po-ere :i#6

A*7A

Amulya# a premium 'airy 5hitener from the house of Amul is the favourite choice of all %ea

and )offee lovers across India. Ideal for preparing %ea# )offee# 4weets# )urd# )akes and 6ther

*ilk Cased 3roducts.

A*7 *I? 43A

Amulspray is an Infant *ilk 4ubstitute and falls under %he Infant *ilk 4ubstitutes# +eeding

Cottles and Infant +oods @egulation of 3roduction# 4upply and 'istribution Act !2.

4A(A 4?I**;' *I? 365';

4agar 4kimmed *ilk 3owder @4pray 'riedis made from 4kimmed *ilk. 4agar 4*3 is a non-fat

# protein rich milk powder


17/35

"mu# Proucts in te >5 :atrix*

%trategy to :ar6et items in uestion mar6s*

*asti'ahiKassiK*ithai range9

a. Amul needs to build up a chain of retail outlets for exclusively Amul products. *other 'airy is doing very well

in 'elhi and Faryana with that mode of supply chain


18/35

b. %here is no marketing focus on these products. %he 7tterly Cutterly 'elicious is focused only on the butter. In

fact Amul is synonyms with butter and milk which are its cash-cows. %he marketing and consumer awareness

now needs to shift to other products if Amul wishes to increase the market share of the same.

c. 3oor media marketing through printKtelevisionKonline. Amul needs to improve its consumer reach. It needs

to come out of the 7tterly Cutterly 'elicious shell.

d. Amul needs to adopt stronger and scalable marketing campaigns. 4ponsoring for sports can enhance its brand

awareness from being a lot cost daily need products to upscale luxurious or nutrient rich supplementary items.

,uture strategy (or Dogs proucts

9a.the availability of infant milk range is very poor for Amul products# it should be improved

'bjective 2* To (orecast te esire year by year gro-t rate reuire toacieve target o( ;s. 2/7/// cr in ! years

%he A*7 cooperative is a unique example which has managed to not only sustain itself for so

long# but also mark itself as the status of world:s leading milk producer and achieve a current

turnover of //0 crore. (iven below are the sales and growth rates of past 8 years.

years 20042005

2006

2007

2008

200

20!0

20!!

sales "in#rs$ 288!

222

%77%

4277

5255

67!!

8005

774

gr&'() "*$ 5 !+4 2

!%+4

22+ 27+7

!+%

22+!

Fowever# it is unclear whether A*7:s strategy and practices that have worked well for longcan maintain this growth traectory in a changing environment with globaliation and increased

competition. 4o# to double its sales and achieve the desired target of 2"#""" crore in next five

years# A*7 will have to maintain growth rate of !$ , as per our calculation below.


19/35

,+- . P+-/"!g$1(

P+- " in Rs#rs$ 774

,+- "in Rs+Crs$ 20000

years"($ 5

*gr&'()"g$ !5+%62065

'bjective 3* To suggest strategies to acieve te above mentione gro-t rate.

Te -or# eman (or airy proucts is gro-ing by app. 0 per annum an te projecte

eman is o( 1)/ mi##ion tons o( mi#6 by 2/1!. %o7 to acieve tat7 te mi#6 prouction as

to gro- by oub#e te current gro-t A4

4o we understand that there is huge demand potential# and thus# there should not be much

problem for A*7 to double its revenue in the next $ years# provided it maintains a growth rate

of !$.0 , per annum. Cut maintaining the growth rate of !$.0 , is also a great challenge

@5hich is lower than current growth rate of 22,. %he main reason behind this increased growth

rate is the sudden price rise which happened because of the inflation post recession and not

because of volume growth.. Fere are some problems it will have to find solution to9

#oba#iation* 5ith the opening up of the economy preferential treatments of

yesteryears are no more available to the dairy cooperatives. %hey are now required to

compete in the open market. %he terms of the 5orld %rade dictates removal of all

safeguards put in place earlier to protect the dairy industry from unfair outside

competition. As a result# gradually internationaliation of our dairy business is takingplace. %his transformation demands the A*7 to improve its performanceG be it in

marketing or quality of products or governance. 4ome suggested areas of improvement

are9

5ompetition9 since the gap between demand and supply is large# there is huge potential

for dairy industry to grow. %his will attract many other players to enter the market# or the


20/35

existing players to expand# and take advantage of the increasing demand to make huge

profits and grow. 4o# A*7 needs to capture this growth opportunity and cater to more

and more growing needs of milk and milk products# before this great opportunity is

captured by another player.%his can only be done if it expands it wings to other parts of the country as well. Cesides

catering to domestic dairy needs# it also has a scope of increasing its revenue by capturing

global market. %o achieve this# A*7 can leverage its brand value and experience in

milk products category.%he maor players in Indian dairy industry and their markt shares are9

(uarat )ooperative *ilk *arketing +ederation 12.$,?erala )ooperative *ilk *arketing +ederation ./,*other 'airy +ruit J >egetable 3vt. td. .=,6thers 08.!,

Bestle India td# although having a small market share currently# is showing a high

growth rate of around 21, giving tough competition to A*7.As a competitor ?)**+ is a maor threat so a comparison between growth rates of the

two companies can give a clear picture regarding two companies.

ear GC33, C33,

Gr&'() ra(e Gr&'() ra(e

20042005 5 =.

$

0

2

0

/


21/35

20052006 !+4 7+5870

20062007 2 4+24680!

20072008 !%+4 6+%85542

2008200 22+ !4+57!2!

20020!0 27+7 !+6%!4

Apart from this various competitors include the manufacturers who produce products

which could replace milk like soft drink manufacturers etc.

Increasing cost #eaing to price rise

a Decreasing prouctivity9 In recent years there have been constant draughts and thus a

decrease in productivity of agricultural products leading to a mismatch between the demand and

supply of these agricultural products needed for Amul:s production process. %his is easily

apparent from the fact that the headline food inflation touched 2", during 2"!"-!!.

b %teep price rise o( catt#e (ee ingreients9 Increase in cost of agricultural products has led to

increase in cattle feed ingredients prices like prices of de-oiled rice bran which constitutes 2$-

1$, of cattle feed have increased from s 1081K*% in 2""$-"= to s. =18"K*% in 2""-!" @81,

increase# prices of molasses which constitutes !"-!2, of cattle-feed have increased from s.

1$0=K*% in 2""$-"= to s. 8008K*% in 2""-!" @!18,increase# prices of apeseed extraction

which constitutes !"-!2, of cattle-feed have increased from s. $!0!K*% in 2""$-"= to s.

!!/8!K*% in 2""-!" @!1!, increase# prices of ice 3olish which constitutes !"-!2, of cattle-

feed have increased from s. $=!2K*% in 2""$-"= to s. =1"K*% in 2""-!" @/2, increase#

prices of Eowar which constitutes !"-!2, of cattle-feed have increased from s. $!8K*% in

2""$-"= to s. !$/K*% in 2""-!" @$$, increase. %he price rise in these raw materials has

been particularly severe in the last year with prices increasing in the range of 2$-1$,. %his has

put tremendous cost burden on the milk producers.

c Taxes* %he government is contemplating introduction of uniform (4%@(oods and 4ervice

%axes across the country. Cut then there are various products like Caby milk food# butter# ghee#

cheese# ice cream etc. which have with changing environment become products of mass

consumption# but the government is keen on putting >A%@>alue Added %ax at !2.$, in all states

on these products leading to extra burden on consumers of these products due to higher prices.


22/35

%hus categoriing dairy products in the category of 0, >A% will promote demand for dairy

products and thus promote nutrition.

4econdly the milk cooperatives are taxable under highest income tax bracket of 1", Hcess#

although it is related to agricultural production.

overnment po#icies9 After a decrease in prices throughout the world earlier due to recession#

there had been a continuous rise in prices recently which brought speculation of high growth

rates. %he butter prices doubled in a year and whole milk powder and skimmed milk powder

prices also increased by more than ",. 6n the domestic front however# dairy farmers now face a

real squeee from both the frontsG higher cost of production and threat of subsidised imports

flooding our dairy markets. 5hen International prices of milk commodities increased to

unprecedented levels during 2""/# (overnment banned exports of these commodities# which has

later been revoked while withdrawing the export incentives provided on exports of these

commodities# thus effectively closing the door on exports of milk commodities and not providing

the dairy farmers an opportunity to reap higher rates. Bow in order to contain high inflation of

food products in the country# (overnment has completely removed import duty on 1"""" *%milk powder and !$""" *% of Cutteroil K Cutter with effect from *arch 2"!". %his will

eopardise the returns of milk producers of the country while allowing developed nations to dump

their excess commodities backed by heavy subsidies.

'ata monitor report for the forecasted growth of Indian 'airy Industry

r growth ,

2"" - !1.,

2"!" - !".0,

2"!! - .,

2"!2 - 8.2,

2"!1 - /.",

2"!0 - =.=,

%his data suggests that growth in milk production in next 1-0 years is expected to slow down.


23/35

4o# to overcome above mentioned roadblocks in front of A*7 to reach a revenue level of

2"#""" cr# it needs to address following problems timely and efficiently. 6nly by addressing

these factors# A*7 will be able to keep competition at bay# and offer milk and dairy products at

competitive prices.

! P;'D85TI'N etter yie# by ybri anima#s* )rossbreeding local animals with breeds fromCritain which would result in animals with better yield. Artificial Insemination (AIshould be started in key >illages as a part of planning process also crossbreedingscheme at state level could be promoted for relatively high yield. froen semen

technology in collaboration with foreign countries like 4witerland known for highlactating animals and carrying high quality technological know how can also becarried out for better quality milk with higher yield.

C. Improve catt#e (ee an (oer* As feed constitute /" per cent of the cost of milk#reducing the cost of feed while ensuring its nutritive value contributes significantly inimproving income of milk producers. Animal Butrition 3rogramme Amul has helpeda long way the dairy farmers sustaining their dairy farming and has significantlyhelped farmers to overcome economic losses due herd health problems# reducedreproductive efficiency# infertility etc.

But AMUL needs to further improve the quantity and quality to feed the increasingcattle. 4ince it cannot be completely dependent on pastures to provide fodder# 4upply

of regular balanced cattle feed has to be ensured. %he production capacity of the plant

manufacturing following products9 Amuldan @Cypass 3rotein +eed# )alf 4tarter#

*ilk eplaced# *ineral *ixer# *edicated +eed# 7rea *ineral *olasses Clock

should be increasedto as much as $",. In order that the feeds supplied to the farmers

are cost effective raw materials are procured during seasons from all over India. Cut


24/35

instead of being dependent on suppliers for cattle feed, AMUL can integrate

backards and enter into cattle feed business, like its competitor !"MM#, and

thus reduce cost and dependency$ In future AMUL can increase its capacity and

generate cattle feed for revenue from outside$

5. ,armers*a$ Increasing productivity is long-term plan. As the milk prices have increased# the

earnings of farmers have gone up and so they see a bright future in the business.

%oday# with about 1" lakh farmers# on an average every farmer has at least two

cattle. 5ith rise in income# many of them are looking buy more animals or cross-

breed cattle.%ven if every farmer adds one cattle, the milk production ill increase

by &', hence in the long term the milk productivity ill increase$

+ +or a section of its membership# dairy activity is a stepping-stone for upward

mobility in the society. 4uch members move on to other occupations after

raising their economic position through milk production. As a result# A*7 isunable to realie the full benefits of its long-term strategy# and finds new

members @mostly marginal farmers to replace those who have higher

potential and capacity. 4o, AMUL should come up ith certain programs

hich enable the development of farmers, hile they are engaged ith dairy

farming activity, so that they do not have to move to another occupation for

development.

'. Improve operations9 * Amul should try to improve its technology like Ferringbone

and 3arlour Analyser# *ilking 3ipeline etc. to fasten the processing time and increase

its production and capture the (ap between demand and supply and over increasingits exports to other part of the countries

;. Expan airy (arms in #ong run to oter parts as -e##9 the unorganied sector of

the dairy accounts to as much as $",. 4o A*7 should make efforts to expand itself

to other states beside (uarat and thus increase the milk procurement# its processing

capacity and market share by covering the vast unorganied sector into itself.

2 %8PP=< 5F"IN* Increasing the production capacity will address only a part of the

problem# as a maor problem lies in supply chain and logistics maorly because of theperishable nature of the product and it has become a maor concern since local brands# aretaking over. fresh milk. @it forms " , of the total revenue generated by all productlines. %here are several ways it can improve its supply chain and cater to even distantparts of the country# despite its perishable nature. %hese are9

a Improving Tecno#ogy*. %he information technology and total qualitymanagement came together to help the ()**+ to gain control on the


25/35


26/35

c since the existing markets have already become saturated due topresence of many competitors# manufacturing plants in the east at placeslike 6rissa etc will help capture ne- mar6ets easily as the supply can bemade timely and at low cost.

%he manufacturing plants should be located in all the four ones vi. N';TF@Faryana where demand is the highest# E"%T@6rissa where supply is low andsince disposable income is also low# products can be offered cheap # %'8TF@?arnataka covering maor markets where the demand for milk products is high.+rom these locations# supply can be made throughout the country.

1 %"=E% "ND DI%T;I>8TI'N* 4ales of Amul has been undergoing a constant growthin all categories achieving average sales volume of 18.1" 3' @lakh litres per day in

pouch milk category.%he 4ales growth in value terms is 12, from existing markets only.Amul has achieved number one status in pouch milk sales in 'elhi for the year 2"!"-!!.5ith this achievement# Amul *ilk has emerged as the largest selling brand of milk in allmaor metro markets of 'elhi# *umbai# ?olkata and Ahmedabad.

In case of retail Amul is growing at a tremendous rate such that in the financial year2"!"-!! their overall retail sales accounted for 0, of total revenue of Amul in the year.%his was achieved through their $""" retail outlets called Amul parlours# with 1""" ofthem been started in the same financial year. 4uch a huge growth which cannot bematched by other competitors was made possible because of high brand equity# greatconsumer pull and sales effort.

Amul range of products continues to penetrate deeper and deeper across the countrysimultaneously through their four distribution highways created with specialistdistributors handling ambient milk products# chilled milk products# fresh milk productsand froen products. %his unique combination of managing distribution highways hasbeen their huge competitive advantage.

'istributors are considered to be *arketing *anagers of +ederation in true sense. %odevelop 4elf eadership amongst each individual distributor# a maor initiative called4'3 @4elf eadership 'evelopment 3rogramme has been implemented in the year2""-!".

a. >etter margin to retai#ers an istributors* ;ven the company can do some

collaboration with the existing manufacturers of 3ia:s like 3ia Fut# 'ominos:#

Caskin obin:s and other local retailers which can help it to push its product and

make enormous profits by spending much on the advertisement rather by paying

handsome margins to the retailer:s and distributors which will be win-win

situation.


27/35

b. >etter co# storage (aci#ity to tem* %hough company is already providing the

good cold storage facility and refrigerator:s to help them with a problem of

perishability and storage of goods which make the deals attractive for retailer:s

and can easily be ready to store and display its products at prime locationc. ;ep#acement o( #ea6e or expire proucts* %he one of the main reasons the

retailer:s and the other middlemen face while supplying of the milk products is

the durability of the same. Apart even the leakage problem makes the same more

difficult. %hus providing assurance of eplacement of leaked or expired products

can help them to move forward towards storing the proper stock of products

network increase in urban and rural areas

0 EXP';T%* 'uring the year 2"!"-!!# Amul was able to achieve the exports turnover ofs. 8 )rores. %his had been achieved in spite of ban by (ovt. of India on exports ofmilk powder since +ebruary 2"!!. %his figure looks significant but if we try comparing it

with annual sales turnover of s. #//0.2/ crores @s. /./0 billion registering aquantum growth of 22.!, its forms a portion of ust about !, showing a great potentialto grow and enhance further. Cut now a question arises is to how to increase thecontribution of exports towards the profit.

a As per data monitor report# Eapan is the maor importer of milk and dairyproducts# while Bew Oealand is the largest exporter. 3roduction wise India holdsthe top position# followed by 7.4. since most of the milk produced in India isconsumed domestically# only a small part is exported. If A*7 manages toincrease its production# exports to other countries like Eapan will give highrevenue growth. And relative proximity of India to Eapan will also give it anadvantage in respect of exports.

b ,oreign co##aboration9 If we look into ()e #urren( manua#(uring lan( &

Amul is resen( &nly in Gu9ara(+ Kaira District Co-operative Milk Producers

Union Limited (KDCMPU), a part of GCMMF, said tat plans are afoot to

esta!lis its o"n manufacturin# plant in te U$ to produce dair% products

like #ee and paneer initiall%& 'ere is #reat potential in urope and U$ for

mul products& Plans are afoot to esta!lis our o"n manufacturin# facilit% in

te U$, initiall% to start "it manufacturin# #ee and paneer,* KDCMPU

Cairman, +amsin Parmar said in a statement& part tis "ill also elp

tem to !rin# te unor#anied sector under tem and "iden teir presence

and even reduce teir risk of over dependence over farmers of Guarat onl%&


28/35

%hus if we see in above mentioned table the 5orld milk production in 2"!! is forecast to growby 2 percent to /28 million tonnes. *uch of the anticipated expansion is likely to accrue in Asia#where India# the world:s largest milk producing country# is expected to witness an output rise of$ million tonnes to !2!./ million tonnes. ising domestic demand is the main engine stimulatinggrowth in the country# as India is largely absent from the international market for dairy products


29/35

we can sayK imply the continuous need to capture the growing market by one or the other way:s #before we are taken over by any other country.

c Tecno#ogica# joint venture* Amul can even get the technology and can increase

its market presence by taking a route of foreign collaboration or %akeover of anyexisting company there. If we look upon the existing presence of Amul we have

the given below places where the Amul products are easily available. %hus taking

over the existing route further will not only help to increase its profit but can also

can mark its presence all over the world.

Apart from all this even foreign ;ntry will help Amul to explore the different places and

launch different products according to the need of the place n taste which not only help to solve

its problem of perishability of its product due to which the main drawback of its in logistics and

supply chain can be solved by reducing its expense on distribution.

! P;I5E ;ED85TI'N*

a Export o( e?oi#e ca6es9 %he de-oiled cakes are a source of cattle feed which are of high

nutritional value for the cattle. As such in such a time when inflation is at its peak and

expenditure on cattle feed is becoming a tough aspect to handle# government should

discourage export of de-oiled cakes such that availability of nutritious fodder in India is

increased.b Increasing te capacity o( eac p#ant9 this could lead to better fulfilment of overall demand

and also would lead to economies of scale leading to cost reduction.c 'perationa# costs*these could be reduced through ?aien # i.e. constantly working towards

achievement of more efficient methods of production methodology.d >ac6-ar Integration*like their maor competitor ?)**+ does# they could integrate

backward to produce fodder for animals such that the acquisition costs are reduced and also

better controls could be kept over the quality such that overall cost of milk production could

be reduced.


30/35

e >etter tecno#ogy*7se of better technologies in production and also technologies to increase

production like artificial insemination# cross breeding etc. would lead to more efficient

production with more yield at lesser costs.f >etter supp#y cain (unction* %he supply chain could be centrally integrated to develop

better control and efficient logistics could thus be developed through use of ;3 technology#

which could thus lead to overall cost reduction in supply and distribution management due tosynergy between different part of the supply chain cycle.

g :ore manu(acturing p#ants* at strategic locations i.e. the places where the target customers

are located can reduce the cost involved in distribution process by a maor portion leading to

cost reduction.h :ore retai# out#ets* would mean that the margins lost to middlemen i.e the distributors#

dealers would come to Amul. As such better margins and so prices can be reduced for the end

customers.

= P;'D85T INN'9"TI'N9 :%he dull and conservative image associated with Amul

products has to be rubbed off the minds of the youth. 4o the P2-billion brand should nowwork on pack designs# product positioning and event promotions to target the !8-22 agegroups# which forms $!, of Indian consumers.%o continue the story of success @It took )) years for brand Amul to touch *+billionturnover, but India-s largest food brand has added another billion in .ust four yearsAmul should redesign and redevelop its 4trategy to face the continuous increase in cut Mthroat competition.

a. A*7 should constantly do the research and development of its existingproducts# and come up with new food products as it has done in past by

introducing 3ia. It should conduct market research and study about customer:sexpectations and its tastes.

b. A*7 parlours have been quite successful in India so the numbers should beconstantly increasing# adding more exciting features constantly.

c. mu#ti?cuisine uic6?service ca(es* Eoining the race with Cig *ac and others toopen quick-service restaurants @L4s# Asia&s largest dairy products brand# Amulcan open cafes-cum-restaurants across India

d. Amul brand should expand its footprint by diversifying into healthy food market.Amul is going the franchisee-model way to set up these outlets. ()**+ shouldalso plans to open such cafes in %amil Badu# *aharashtra# ?arnataka# (uarat andother 4tates to cater to the youth segment.

/ :";GETIN7 "D9E;TI%E:ENT 7 P"5G"IN* *arketing strategy of Amul

should be focussed to stress upon various aspects of Crand building and awareness of


31/35

products. Also special attention has to be put to stress upon the Cusiness to business

marketing model of Amul and to fight competition special competitive strategies need to

be laid down.a ,ining ne- mar6ets* to keep the growth rate of the company alive and

working. %he company need to look into new markets and sources of

consumption of milk and milk products to keep increasing the demand. %he

following are a few ideas to increase demand at various places.

b %coo#s9 the consumption in schools can be increased by opening "mu# mi#6

par#ours near scoo#sor opening vending machines in school canteens.

c un ce#ebrity riven mi#6 a-areness rive to increase consumption of milk

amongst school children.d Amul can tie up -it various scoo#sto include milk and milk products in the

school children:s midday meal.

e Fea#t eucators an scoo# nurses programmeswill help in instructing theschool children about the ways to stay healthy and the benefits of including milk

in their diet# and replacing aerated drinks by milk based drinks in their meals.

f &a## posters could help increase attention of students towards the benefits of

having milk and how milk can help them build lean muscles# strengthen bones#

and improve skin.

g ;estaurants9 *ost restaurants across the country do not serve milk based drinks

in their meals and is never included in their menu.

A study relates that milk only constitutes 1-$, of drinks consumption inrestaurants and hence milk and milk based products should be promoted in

restaurants for consumption as a survey relates that customers are open to milk

consumption during their meals out and consider flavoured milk as a delicacy

amongst others. %hus Amul can tie up with various restaurants to serve the

purpose of increasing availability of milk products at maximum places.

h 5ombo mea#s at (ast (oo joints9 ust like the combo meals at restaurants like

*c'onald:s give offers like burger and 3epsi combo meal# now food with amul

drinks can be offered too to increase sales by volume.

i %uggestive se##ing# which involves servers asking customers if they&d like to order

milk with their meal# and point-of-purchase materials also helped increase milk

sales.

5e can offer milk tastings to promote milk varieties.


32/35

k 3romote the products in retail super stores like more and reliance fresh by

mentioning milk and milk product:s nutritional value could lead to increase in

consumption. +urthur kiosks can also be laid inside supermarkets on the same line

which would lead to increase in sales as families today are aware and more

interested in maintaining family health.

l Increasing availability of milk everywhere through vending machines# glass

doored see through displayrefrigerators# milk shops and keeping milk and milk

products as an option to choose from amongst various other options will lead to

increased demand of milk products.

m "ttractive pac6aging* the packaging of milk and milk products should be made

more attractive to attract the attention of the consumers.

n oo-i## eve#opment* Amul:s goodwill has been developed over a period of

time by their working for social cause like the Q(;;B A*7 (;;B IB'IARwhich was a sustainable ecological development campaign and is a great success

ill now. %he idea was %ree 3lantation by milk producer members of 'airy

)ooperatives on every Independence day and it started in the year 2""/.

%here were cleanliness drives conducted at village level for a cleaner and

healthier rural India. +or this every year# (andhi Eayanti was celebrated as a red

tag day./uch campaigns should carried out all over India and not only 0u.arat

such that a goodill of Amul is developed in the entire country.


33/35

%&'T "N"=


34/35

9a#ue aition*%here is a phenomenal scope for innovations in product development#

packaging and presentation. (iven below are potential areas of value addition9

o 4teps should be taken to introduce value-added products likeshrikhand# ice

creams#paneer, khoa# flavored milk# dairy sweets# etc. %his will lead to a greater

presence and flexibility in the market place along with opportunities in the field ofbrand building.

o Addition of cultured products like yoghurt and cheese lend further strength - both

in terms of utiliation of resources and presence in the market place.

o A lateral view opens up opportunities in milk proteins through casein# and other

dietary proteins# further opening up export opportunities.

o et another aspect can be the addition of infant foods# geriatric foods and

nutritionals.

Export potentia#*;fforts to exploit export potential are already on. Amul is exporting to

Cangladesh# 4ri anka# Bigeria# and the *iddle ;ast. +ollowing the new (A%% treaty#opportunities will increase tremendously for the export of agri-products in general anddairy products in particular

,oreign 5o##aborations an Hoint 9entures *In order to enter the other parts of the

world and solve the problem of the technology and perishability he can enter into E>:sor+oreign collaboration with some company in other countries.

Treats*

5ompetition* 5ith so many newcomers entering this industry# competition is becoming

tougher day by day. Cut then competition has to be faced as a ground reality.

ro-t in prouction amu# is 27

Indiais gro-ing at 4.

:i#6 venors7 te un?organie sector*%oday milk vendors are occupying the pride of place inthe industry. 6rganied dissemination of information about the harm that they are doing to

producers and consumers should see a steady decline in their importance. %he Indian dairyindustry# following its delicensing# has been attracting a large number of entrepreneurs. Cut theirsuccess in dairying depends on factors such as an efficient yet economical procurement network#hygienic and cost-effective processing facilities and innovativeness in the market place

%he study of this %&'Tanalysis shows that the


35/35

ability to take risks# innovative approach @in product lines and marketing and values @ofqualityKethics.

>I>=I';"PF

amul final report 2012.docx

Documents