Amul
~The taste of
India
TEAM MEMBERS
SNEHAL AMBIKE A001
MANSI GURAV A010
NIKITA JHA A011
APARNA SINGH A022
Amul is an Indian dairy cooperative, based at Anand in the state
of Gujarat. Founded in 1946, the brand is today managed by the
Gujarat Co-operative Milk Marketing Federation 1 Ltd (GCMMF)
which is jointly owned by about 3 million milk producers in the
state. The co-operative was initially referred to as Anand Milk
Federation Union Limited and hence the name AMUL. Gujarat
Cooperative Milk Marketing Foundation. GCMMF is India's
largest food product marketing organization. Its daily milk
procurement is approx. 23 million litre per day from 18600
village milk cooperative societies, 18 member unions coverings,
33 districts and 3.6 milk producer members.
" amul butter asli butter"
"amul dudh pita hai india "
SUPPLY CHAIN OF AMUL
The Supply Chain Of Amul in dairy development is a three-tiered structure with the
dairy cooperative societies at the village level, federated under a milk union at the
district level, and a federation of member unions at the state level.
1 2 3 4
Farmers Village co-operative Members union Gujrat cooperative milk
society (VCS) marketing federation
5 6 7
Distributors Retailers End customer
PRODUCTION PROCESS
Milk Procurement:Fresh milk sourced from millions of
dairy farmers across India.Collected through a vast
network of cooperatives and collection centers.About
12,22,000 liters of raw milk is collected per day.
Reception and Testing:Milk undergoes rigorous testing for
fat content, solids-not-fat (SNF), and bacterial
count.Ensures adherence to quality and safety standards.
Methylene Blue Dye Reduction Test, commonly known as
MBRT test is used as a quick method to assess the
microbiological quality of raw and pasteurized milk.
Pasteurization: Pasteurization is a heat treatment process used to eliminate harmful
bacteria and pathogens present in raw milk. The process is named after Louis Pasteur, the
French scientist who developed it in the 19th century. The primary objective of
pasteurization is to make milk safe for human consumption while preserving its nutritional
quality and extending its shelf life.During pasteurization, raw milk is heated to a specific
temperature, typically between 145°F to 161°F (63°C to 71.7°C), for a predetermined
duration, usually around 15 to 30 seconds. This temperature is sufficient to destroy
pathogenic bacteria such as Salmonella, E. coli, and Listeria, which may be present in raw
milk and can cause foodborne illnesses.
Seperation and standardization: Milk separated into cream and skim milk fractions
using centrifugal separators.Separation allows for customization of fat content in
various dairy products.Cream and skim milk used in different proportions for product
formulations.Adjusts the fat content of milk to meet the requirements for different
dairy products.Cream is added or removed to achieve the desired fat content . This
process bifurcates the milk in 3 categories varying according to the SNF \& FAT
contents.
Quality Check: Pasteurized milk is sent to the Quality
Assurance laboratory of the dairy plant. Within 14 seconds
the FAT \& SNF proportion is received regarding 30 lakh
liters of milk. The total investment put into the lab by the
dairy plant is Rs. 6 crores.The laboratory only checks and
analyses the powder, milk, and ghee. There is a separate ice
cream analyzing laboratory.
Packaging Process: After the milk is sent for the packaging
to the milk packing station in the dairy plant. In the milk
packaging stations, there are huge pipelines and behind
them there is a polyfill machine from which the material to
pack milk comes out. From each of these 12 machines, 100
pouches are packed in one single minute
Storage:Then the milk is sent to the cold storage of the dairy where the milk is stored until it is
dispatched. Here the milk is stored at a temperature ranging from 5 °c to 10°c , it is maintained with the
help of exhaust fans having silicon chips. About 40,000 liters of milk are dispatched from the cold
storage of the dairy plant every day. The damaged pouches are kept aside and the milk pouches are
kept aside and the milk is
Distribution and Logistics:Packaged products distributed
through Amul's extensive network to retail outlets,
supermarkets, and institutional customers.Cold chain
logistics employed to maintain product integrity and
freshness during transportation and storage.
Continuous Improvement:Amul committed to continuous
improvement in production processes.Leverages
technology, innovation, and feedback mechanisms to
enhance efficiency and product quality.
LOCATION
STRATEGY
AMUL
PLANTS
ANAND
Milk, Butter, Ghee,milk, Powder
flavored milk and Buttermilk.
MOGAR
Chocolate, Nutramul, Amul Ganthia
and Amul lite
KHATRAJ
Cheese
VIRAR
Milk processing unit
FACTORS TO KEEP IN
MIND
PRIMARY FACTORS
01 SUPPLY OF RAW MATERIALS
02 SUPPLY OF CAPITAL
03 TRANSPORT FACILITIES
04 SUPPLY OF LABOUR
05 NEARNESS TO THE MARKET
06 AVAILABILITY OF POWER
FACTORS TO KEEP IN
MIND
SECONDARY FACTORS
01 PROXIMITY TO CUSTOMERS
02 POLICIES OF MANAGEMENT
03 LAYOUT OF THE PLANT
04 TOTAL COST
05 VOLUME OF PRODUCTION
06 ACCESSIBILITY OF FLOOR SPACE
FACILITY LOCATION
TECHNIQUES
FACTOR RATING
COST-VOLUME-PROFIT ANALYSIS
FACILITY LOCATION
TECHNIQUES
PLANT
LAYOUT
Plant layout is the overall
arrangement of the machine tools,
handling equipments, storeroom
and other various accessories
required for facilitating
production in a factory
AMUL plant is indigenously worked out with facilitation
of various production processes and production of multi
products under one plant.
Separate buildings are provided with required
arrangements of machine tools handling and computers
connections.
Each plant is engaged in producing milk, ice creams,
milk powder and ghee.
So entire department is uniquely provided with facilities
for the processing each product.
There are 4 production departments and packaging
departments pertaining to each product respectively.
FACTORS THAT INFLUENCE LAYOUT
The weight and volume of items that are to be
produced,
The nature of the service to have to be provided.
The building to house the operation cost.
The fragility of the product or component of a product
ADVANTAGES OF AMUL’S GOOD LAYOUT
Labour cost Different producing prices
The increment of productivity Reduced consumption of power.
with a lot of units being made per Minimization of scrap and
60 minutes. defectives.
The decrease within the variety of Better quality because of reduced
staff. handling.
The reduction of movements Reduced prices of maintenance.
between operations Improved utilization of materials
Production control Supervision
Increment in production rate. Less demand of supervising.
Providing adequate and Reduction time spent on
convenient storage points review.
Reduction in value of review
CAPACITY
PLANNING
Demand Forecasting
Historical sales data, market research, and customer
feedback
Allows to adjust its production capacity to meet the
varying demands
Resource Assessment
Regularly evaluate production facilities,
machinery, and workforce
Ensures that they can meet the projected
demand
Additional resources are required or if existing
ones can be optimized.
Technology Adoption
Investment in advanced dairy
processing technologies
Enhance production efficiency.
Increase its capacity without the need
for significant physical expansion.
Production Scheduling
On demand forecasts, precise
production schedules
Dictate what products to produce, how
much, and when to produce
Efficient utilization of resources and
minimizes waste
Flexible Capacity
Maintenance of a degree of flexibility
Responds to unexpected fluctuations in
demand
Helps to cater to varying market conditions
effectively.
Time Series Analysis Inventory Management
Analyzes historical sales data to Efficient inventory management to
identify seasonal patterns and trends. balance production capacity with
Allows to make short-term and long demand
term demand predictions. Prevent overproduction or
shortages.
Market Research
Collaborative Forecasting
Gain insights into consumer preferences,
Collaboration with network of retailers,
emerging trends, and competitor
distributors, and farmers
activities
Gather real-time sales data.
Qualitative findings complement
Forecasts are adjusted dynamically
quantitative forecasting methods.
based on actual market conditions.
1. Mithae PRODUCT LINE
2. Uht milk
3. Pure ghee
4. Infant milk range
5. Milk powders
6. Fresh milk
7. Curd
8. Icecream
9. Chocolate
10. Cheese
11. Breadspread
KIDS YOUTH WOMEN
1. Amul kool 1. amul pizza 1. calci+
2. chocolate 2. amul pizza cheese
3. amul milk 3. amul cheese spread
4. nutramul
5. energy drink
3.Calorie conscious- 4.Health conscious-
1. Amul lite butter 1. Nutramul
2. Skimmed milk powder 2. Amul shakti
COMPETITORS
Strength Weakness
1. investment in technology 1. high operational cost.
2. production capacity 2. lack of success in certain areas of
3. market share portfolio expansion.
4. strong brand value
3. frequent legal issues
5. quality
4. risks of highly complex supply
6. large consumer base
chain management.
5. short shelf life of its product.
Opportunities Threats
1. high per capita milk
1. Growing trend of veganism in
consumption
india
2. penetrate international
2. Competitors
markets.
3. expansion of product portfolio.
3. Ban on export of milk
4. use internet to sell its products products
The SWOT analysis of amul enables us to understand how amul has
transformed from dairy cooperative to one of the most valuable and trusted
brand in the country.
RISK MANAGEMENT PROCESS
steps in risk management
Identify risks
Assessing the risks
Risk mitigation
Risk monitoring
AMUL
The risk management process at Amul,
India's renowned dairy cooperative, is a
crucial aspect of its overall business
strategy, geared towards identifying,
analyzing, and addressing potential
risks that may impact its operations
and objectives. The risk management
process at Amul encompasses several
key elements:
Risk identification
Amul's risk management process begins with
the identification of potential risks that could
affect its business activities.
This could include risks related to milk
procurement, processing, distribution, market
dynamics, competition, regulatory changes,
quality control, supply chain disruptions, and
financial fluctuations.
Identifying these risks allows Amul to
understand the full spectrum of potential
challenges it may face.
Risk assessment
After the identification of risks, Amul
undertakes a comprehensive risk
assessment.
This involves analyzing the potential
impact of each risk on the organization
and assessing the likelihood of
occurrence.
By evaluating the severity and
probability of each risk, Amul can
prioritize its focus on the most critical
areas that require mitigation.
RIsk mitigation
Following the risk assessment, Amul implements
strategies to mitigate and manage the identified
risks.
This may involve various proactive measures
such as securing long-term milk supply
contracts with farmers to minimize supply chain
disruptions, investing in advanced quality
control systems, utilizing hedging strategies to
manage price volatility, diversifying product
offerings to reduce dependency on specific
products, and conducting regular supplier
assessments to ensure reliability and quality.
Risk Monitoring:
Amul continuously monitors the identified
risks to track changes in their status or
potential emergence of new risks.
Real-time monitoring and regular reviews
enable the company to adapt its risk
mitigation strategies as necessary.
By maintaining a dynamic approach to risk
monitoring, Amul can respond effectively to
evolving challenges.
Crisis Management:
Amul has a well-defined crisis management plan
in place to handle potential crises such as food
safety issues, product recalls, natural disasters, or
other unforeseen events.
This plan includes clear communication
strategies, designated response teams, and
predefined procedures to manage and resolve
crises while minimizing the impact on operations
and reputation.
Conclusion
Amul, an iconic brand in India, has transcended its role
as a mere dairy cooperative to become a symbol of
national pride and success. The story of Amul's journey
from a small cooperative to the largest dairy brand in
India is a testament to effective marketing, grassroots
empowerment, and a commitment to quality. This case
study will delve into the various aspects of Amul's
success, exploring its history, marketing strategies,
impact on rural empowerment, and its unique brand
