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The turnover of
Amul, India's leading brand in dairy products, crossed Rs.52 billion for the
financial year 2007-08.1 The Amul brand of products is provided by one of the
leading food products marketing organizations in India, the Gujarat Cooperative
Milk Marketing Federation (GCMMF), and its 13 district member unions. The
product portfolio of GCMMF under the Amul brand includes milk, butter, a variety
of cheese offerings, ethnic sweets, curd products, chocolate and confectionary,
pure ghee (clarified butter), ice creams, pizzas, and paranthas (a flatbread
that originated in the Indian subcontinent).
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As of 2008, GCMMF was in the process of expanding its
processing and packaging capacities in the Indian metropolitan cities of
Delhi and Mumbai in order to meet the growing demand for milk. It had
also extended its sales and distribution network to reach new markets
and had strengthened the marketing and advertising strategies.
GCMMF sold its packaged milk brands on the Internet as well and in 2008
extended its product portfolio by launching Amul Calci, a fortified milk
brand. In the long term, GCMMF intended to enter the market in South
India.2
Over the years, GCMMF's focus had been on providing products which cost
less than the competition while not compromising on quality. For
instance, its strategy with ice creams had been to expand reach and
introduce new products.
In the chocolates and confectionary segment, GCMMF aimed to achieve
growth by launching new products and it planned to enter value added
segments. In 2007, GCMMF launched a variety of milk-based beverages like
Amul Kool, Amul Koko, ready to drink coffee Kool Café, and a sports
drink Stamina, in addition to Masti Butter Milk.3
GCMMF had also been exporting to over 40 countries in the world. Its
cheese, butter, milk, dairy whitener, and condensed milk were some of
the other products that were being sold in the UAE, Bahrain, Oman,
Kuwait, the US, The Netherlands, Japan, Singapore, Saudi Arabia, and in
several African countries.4
GCMMF already had a presence in the US since 1998 through Kanan Diary,
which markets Amul products to more than 1,000 ethnic Indian grocery
stores through a network of seven distributors.5
GCMMF had tied up with petroleum retailer IBP Co. Ltd. (IBP) for the
sale of its products such as ice creams, flavored milk, pizzas, and
sweets through IBP's retail outlets.6
With respect to its ice creams, marketed with the pay-off line "Real
Milk - Real Ice Cream", GCMMF focused on the ‘takeaway'home segment. In
order to ensure high growth rates, GCMMF introduced several new flavors
of ice creams to meet consumer demand.
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1] "Amul's Crosses Rs.5000 Crore Turnover,"www.dnaindia.com, June 17, 2008.
2] Lalitha Srinivasan, "Amul Scripts Fresh Growth Strategy to Take on Rivals,"www.financialexpress.com, June 19, 2008.
3] "Amul Launches Chocolate Milk,"www.domain-b.com, August 28, 2007.
4] Ashley D'Mello, "Amul Icecream Goes Overseas,"http://timesofindia.indiatimes.com, May 21, 2002.
5] "Americans to Get a Taste of India,"www.domain-b.com, May 19, 2004.
6] "Amul IceCream at Petrol Pumps,"www.rediff.com, June 3, 2003. |