Amul Case Study

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| Amul-GCMMF
|
“The Taste of India” to “Taste of World”
| |
Project Case
International Business
SECTION D – GROUP
Ashutosh Singh Khushwaha (GL) | 269
Sachin Maan | 175
Frana James | 219
Paran Gupta| 240
Parth Shah | 249
Pratik Upadhyay|

Amul:
“The Taste of India” to “The Taste of World”
With a presence in over 40 countries in 2012, Amul has done more than testing its products in the overseas markets. Since its venture into the International markets in late 80s, it has steadily grown in sales and today it has more than Rs.100 crores revenues from exports. Though the world dairy product prices are increasing constantly and the Government of India has banned the export of Milk Powder since February 2011, Mr.R.S.Sodhi, the Managing Director of GCMMF expects exports to increase by 20% on the back of surging demand. Mr.Sodhi, along with the top management of the cooperative now faces several questions which will define Amul’s International strategy for the coming years. With the increasing demand and successful venture in overseas markets, should Amul restrict to export and distribution or partner with/acquire other firms in these countries or should it go further towards becoming a global brand by setting up manufacturing and processing plants across the globe? If so, what products should it manufacture and what should be the degree of localization in order to succeed? Should it stick to dairy products or should it look towards the non-dairy food products as well? How will it source milk and other raw materials in these countries with diverse forms of established dairy networks? These are important decisions that need to be made because they will help Amul realize the goal of becoming world’s leading food brand. Major food brands such as Britannia and Nestle are already eating into Amul’s domestic share. The top management has to decide a strategy that will help Amul compete against world class dairy and food brands in Indian market and in the overseas markets. Profile

Amul is the world's 18th largest dairy firm with a 0.5% share in global milk production, according to the International Farm Comparison Network 2011 list. The brand Amul is managed by Gujarat Cooperative Milk Marketing Federation, GCMMF which has several cooperative dairies operating across the country. During the financial year 2010-11, GCMMF registered a top line growth of 22.1%, achieving turnover of Rs 9774 crore. Amul is the largest food brand in India and world's largest pouched milk brand with an annual turnover of US$2.2 billion (2010-11).Currently Unions making up GCMMF have 3.1 million producer members with milk collection average of 9.10 million liters per day. AMUL is also the largest exporter of dairy products in the country. AMUL is available today in over 40 countries of the world. AMUL is exporting a wide variety of products which include Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee), Indigenous Sweets, Amul butter, Amul butter milk, Amul pizza cheese, Amul shrikhand, Amulya dairy whitener, Amul fresh cream, Amul fat milk, Amul cheese spread, Sagar Tea and Coffee whitener, Amul ice creams like cassata , cool candy and frostik, Amul milk chocolate and Amul Eclairs. It has also started preparing and selling pizza slices which feature generous portions of Amul cheese. These pizza slices reach the customers through super markets and large departmental stores that have snack counters. It has tied up with Walmart to sell its dairy products, in its shelves, under the brand name of Amul itself. It also has tie-ups with Glaxo, for the production of baby foods. The major overseas markets for Amul are USA, West Indies, and countries in Africa, the Gulf Region, and SAARC neighbors, Singapore, Hong Kong, The Philippines, Thailand, Japan and China. Its growth is more than 20% in these markets. Market presence has also gone up by 25 to 30 per cent...
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