KUSHAL SANGHAVI

AKSHAR THAKUR

Vision :
Liberate our farmers from economic oppression and
lead them to prosperity
Mission :
Dairy cooperatives of Gujarat turnover of Rs. 27000
crores by the year 2020
To ensure that the maximum share of the
consumers rupee goes back to the milk producers

Procurement strategy
- Village Co-operative society
- Milk Union
- Milk Federation

 15 Million Milk Producers, 1,44,500 Dairy Cooperative

Societies, 184 District Co-operative Unions and 22 State

Marketing Federations
Pre-defined routes & precise timetable
Amul Co-operative dairy collects milk from 800 points
Milk collection from village societies happens twice a day
After testing, milk containers are sent to the storage unit
40,000 liters of milk are dispatched everyday

 Farmers are organized into

cooperatives called Village Dairy

Cooperative Societies (VDCS).
VDCS supply milk to different dairy

cooperatives, called Unions

The milk or milk products made at

district unions are supplied to

State Cooperate Milk Marketing
Federation
GCMMF is the marketing entity for

the products of all the unions in the

state of Gujarat
GCMMF is India's largest food

product marketing organization.

LEVEL

MEMBERS

DECISION-MAKING

District level
Chairpersons, Registrar
State
Federati of Co-operatives, NDDB
Representative,
on
Technical Expert, CEO

Price paid to district

unions (fixed across
unions)

Chairpersons of Village
Dairy Co-operative
Societies, BOD, MD

Price paid to village

co-operative
societies

District

Village

Milk Producers,
Managing Committee

Product mix and

quantity

Membership
Price paid to milk
suppliers

VALUE CHAIN PROCESS

Technology used
The evolution of IT in AMUL was took place in the guidance of
DR.B.M Vyas.
The milk collection center at village cooperative societies, were first
automated.
Application and utilization of GIS.
Data analysis software utilization for milk production estimation and
increasing productivity.
VSAT network between all the level of distribution network and
GCMMF.

AMCUS Automatic Milk

Collection Unit Systems at VCS

Not only transparency but also a unique advantage by reducing
the processing time to 10 percent of what it used
The company at has implemented an ERP program as low as
Rs. 3 crores in collaboration with TCS ltd.
The company uses it; the data right from the procurement from
the farmers till the delivery of goods to the retailers is fed into
the system.
Dairy Information and Services Kiosk
(DISK)

Initiative by IIM-A & GCMMFL

a specialized dairy portal , more inclined towards procurement side of the Supply chain
Red Tag day

Maul start implementation of ERP in phases.

Automatic milk collection system units(AMCUS) at village
society were installed in the first phase to automate milk
production logistics.
AMCUS facilities to capture member information, milk fat
content, volume collected, and amount payable to each
member electronically.
Amul also connected its zonal offices, regional offices and
members dairies through VSATs.
The customized ERP- EIAS has been implemented across the
organization integrating various operational departments.
Amul is also using Geographic Information Systems (GIS) for
business planning and optimization of collection processes.

Market share

Challenges faced
AMUL

Vs

Mother Dairy

Forward integration by twin model approach for increasing distribution

Increasing the production and local procurement of milk to provide an adequate
supply
-recommendation (railway tie-up)

Investing in high yield cows/buffalos for existing farmers using a Micro

finance model

AMULs Competitor

Initiative
Installing Bulk Milk Childers and Automatic Milk Collection
Systems in all our village cooperative societies.
Collect as much as 195 lakh kg per day (19.5 million kg per
day) of milk in the peak flush season.
Satellite dairies with combined processing and liquid milk
packaging capacity of 50 LKPD will be established in major
metro market
We plan to double to processing capacity of our dairy plants to
20.7 million kg per day, by 2020
Milk drying capacity will also be enhanced by 200 MTs per day
Plan to expand our cattle feed manufacturing capacity, more
than four times to 12,000 MTs per day, by 2020.
Total investments envisaged for creating all the required

Initiative
Tie up with the Wal Mart
Export is in 15 countries.

Mission 2020
Turnover of 27000 crore.(three fold increase in the group turn
over.)
Milk production 33.1 million liter/day.
Milk drying capacity 200 mt/day