Amul Kanpur Study

AMUL MILK |

Case on a Milk Company |

MIP Case |

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Submitted By:

Shalabh Srivastava

Roll No.: 10334

AMUL MILK

Alok Gupta, Manager of Kanpur branch of the GCMMF, the marketers of AMUL milk products, was pensive about his organization’s future strategy. AMUL milk, the market leader in Kanpur district over the years, had lost the market share of AMUL milk drastically. With the introduction of a competitor brand “Namaste India” milk in the market a few months before, a lot of people have moved on to that brand and have left AMUL. Alok Gupta did not know what should be the strategy of AMUL: whether they should change their action plan or should continue with what they are doing. He had scheduled a meeting with the sales in-charge of Kanpur and Lucknow district and made a point to discuss this issue with them.

The Company

The AMUL Dairy was established in the year 1955 when the small milk producers from Gujarat came together to collect and process milk and then sell them. The company is an example of how to develop a network of firms in order to overcome the complexities of a large yet fragmented market like those in emerging economies by creating value for suppliers as well as the customers. Indigenous R&D and technology development had led to the successful production of skimmed milk powder from buffalo milk – the first time on a commercial scale anywhere in the world.

Starting with a single shared plant at Anand and two village cooperative societies for milk procurement, the dairy cooperative movement in the State of Gujarat had evolved into a network of more than 2.9 million milk producers (called farmers) who are organized in around 14000 milk collection independent cooperatives (called Village Societies). These Village Societies supply milk to thirteen independent dairy cooperatives (called Unions). AMUL is one such Union. Milk and milk products from these Unions are marketed by a common marketing organization (called Federation)....