Amul Start-ups case study.

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About Amul :

Amul India is an Indian dairy cooperative, founded in 1948. It is run by the Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), based at Anand, Gujarat. Amul sparked India’s White Revolution, making the country the leading supplier of milk and dairy products in the country.

  • Established: 14 December 1946
  • Head Office: Anand
  • Revenue: INR 38,550 crores (US$ 5.4bn, 2019–2020)
  • Founders: Kurien Verghese, Tribhuvandas Kishibhai Patel
  • AMUL: Anand Milk Union Limited.

Fundings investors:

  • Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF),
  • Relations Society (IRS), India’s dairy market are the main funding investors.

Amul business model:

This is how it works on Amul. Its framework is three-tiered.

Each village milk producer is a member of the Village Dairy Cooperative Society. They elect their representatives. Together these representatives administer District Milk Unions.

Such district milk unions take care of and store the milk and milk products. They market those goods to the federation of state milk. The State Milk Federation then acts as the supplier selling or facilitating the marketing of the products. In a similar manner, the revenue is shared downwards.

As someone can realize from such a model, the dairy itself is in charge of the villagers. Processing and packaging are managed by the area unions. These trade unions employ experts to handle the distribution network’s dairy, processing, packaging, and other links.

Farmers’ organizations come together under one Amul umbrella and sell products directly to consumers thru the state’s milk federation. This removal of the middlemen may provide a reasonable price for a high-quality product. This also provided a steady income in lean seasons for marginal farmers, since there are no intermediaries to take the chunk. But they have a healthy sum in hand even though the profits are small.

In top universities, this model has become a case study. It shows cooperative success. It demonstrated how the advantages at the bottom of the pyramid flow down from the market towards the manufacturer.

Marketing Strategies:

  • Different products from one source.
  • Pure and healthy product
  • Good advertisement
  • Use good tagline for Indian consumers made more trust for the consumers.Ámul doodh pita he India.
  • Multiple products.

Challenges faced by:

  • Low prices
  • There is already a very strong competition on the market, which has defined customer criteria to succeed.
  • Good product services.
  • Keeps reliable backups and is fast and efficient.
  • Prior distribution date,
  • Huge transportation costs with very low margins on orders to run.

Successive factor :

  • Low prices
  • Fast delivery speed
  • Vast selection
  • Convenience experience
  • Good product services

Result:

Amul is the ‘s biggest exporter of dairy products and is available in over 40 nations. The main markets are the United States, West Indies, African countries, the location of the East, Singapore, Philippines, Thailand, Japan, and China.

Amul has increased its capacity from 247 liters to feed the entire globe.

Amul became one of the biggest suppliers in the country and soon they increased their business. And soon they increased their capacity 247 liters to more soon for their entire world.