GCMMF Case Analysis

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GCMMF Case Analysis

By:
Hardik Mishra (B08010)
Kaushambi Ghosh (B08012)
Pankaj Agarwal (B08020)
Ritesh Chowdhary (B08023)
Agenda
• History of GCMMF
• Business Model
• Product Category
• Industry Analysis
• SWOT Analysis
• BCG Matrix
• Market Segmentation
• Financial Analysis
• The Way Forward..!!!
History
• Founded in 1946 under the name Kaira District Co-
operative Milk Producers’ Union Ltd by Tribhuvandas Patel
• Runs as a purely farmers’ cooperative
• Starting from a daily procurement of 250 lts/day to 4.6 mn
lts/day, now has become a milk giant under the name
GCMMF
• Manages the brand “AMUL” meaning “Priceless” is the
No. 1 in dairy in Asia and No.2 in the world
• Main objective is to carry out activities for the economic
development of agriculturalists
• Spurred the White Revolution in India
Anand Pattern
Village level
• 200 members
• Committee of 8-9 members

District Level
• Board of Directors – 12
• 900 members (Approx.)

State Federation
•Members are chairpersons of District level
co-operatives and ex officio members:
• Representative from NDDB
• Registrar of co-operative of the state
concerned
Business Model
“Providing quality products to
consumers at an affordable price”

Everyday GMCCF collects 4.6


mn lts of milk from 2.1 milk
producers, converts the milk into
branded, packed products and
delivers the goods to over
4,00,000 retail outlets across the
country with the help of its 12
plants
Product Category
Category Market Share Market Position
Milk N.A 1
Butter 85% 1
Milk Powder 60% 1
Cheese 50% 1
Ice Creams 30% 2
Sweets 50% 1
Chocolates 10% 3
Chocolate Drinks 15% 4
Edible Oil 12% N.A.
Market Segmentation
Customer Based
Ice-Cream, Chocolate, Milk,
Kids Nutramul, Sweets, Safal fruit drinks.

Dhara Edible Oils, Milk, Safal


House tomato ketchup and mixed fruit jam,
Wife Amul Cheese, Amul spray.

Amul Lite, Dhara Health, Sagar


Calorie skimmed milk powder.
Conscious
Sweets, Ice-cream, Cheese,
Youth Chocolates, Milk.
Market Segmentation
Industry Based
Ice-cream manufacturers,
Restaurants, Cofee Shop
Chain

Milk

Bakery and
confectionaries, Pizza
shops, snacks shops.

Cheese, Butter, Ghee


Industry Analysis
Threat of New
Entrants -
High

Bargaining Bargaining
Power of Competitive Power of
Suppliers - Rivalry - High Customers -
Low High

Threat of
Substitutes -
Low
SWOT Analysis
Strength
 High quality, low price
 Robust Distribution Network
 Extensive cold chain network
 Varied product range
 Excellent relationship with the farmers
 Constant innovations
 Excellent relationship with supermarkets/departmental
stores
 Strong brand names
SWOT Analysis
Weaknesses
Completely dependent on villages for its raw material
Short self life of most of their products
 Supplier centred
Tax implications because of Co-operative structures
SWOT Analysis
Opportunities
 Increase per capita milk consumption
 Penetrate international markets
 Concentrate on process food sector

Threats
 Competitors – HUL, Nestle, Britannia other local players
 The yield of Indian cow is much lower than that of cow in
other dairy countries
BCG Matrix
Financial Analysis

Financial Analysis Excel


The Way Forward..!!!
• It should concentrate in the processed sector as it
has a robust distribution and cold chain network
• It should be more customer centric
• It should look forward to implement information
technology
• It should influence the Govt. against the tax
implications which are benefitting the private
players more than the co-operatives
Thank You

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