Cooperative
Milk Marketing
Federation
Ltd.
Vision 2017
By Group C12
Recent performance
Slide 3
Corporate overview
Slide 5
Our values
Slide 6
Global presence
Slide 9
Vision 2017
Dairy products
Edible oil
Financial projection
Slide 11
Slide 24
Slide 30
Slide 33
Annual Turnover
45000
40000
40000
35000
30000
INR Crores
25000
20000
15000
10000
5000
0
CAGR: 23%
10000
2000
1946
4300
1999
2007
2011
Time Frame
2013
2015
2017
Benefiting Farmers
Every day Amul collects 9.3 million litres of milk from 3
million farmers (many illiterate), converts the milk into
branded, packaged products, and delivers goods to over
500,000 retail outlets across the country.
Global presence
Vision 2017
Dairy Products
Dairy Products
Condensed
By
2014
Expansion plans
By
2014
Industry Analysis
List of competitors in each of the product segment
Company
Brands
Major Products
Nestle India
Milkmaid, Cerelac,
Lactogen, Milo,
Everyday
Milkfood
Milkfood
GlaxoSmithKline
Consumer Healthcare
Horlicks, Boost,
Maltova, Viva
Indana, Kream
Kountry
H.J. Heinz
Farex, Complan,
Glactose, Bonniemix,
Vitamilk
Heritage Foods
Heritage
Britannia
Milkman
Kraft
Bournvita, Cadbury
Mother Dairy
Mother Dairy
Industry Analysis
Low initial capital requirement
Optimal scale
Low margins
Import competition
Demand cyclicality
High Initial
investment
Exit barriers
Import from other countries
Non milk beverages
Distributed buyers
Essential food commodity
forming small fraction of buyer
cost
Not much differentiation
required in terms of buyers'
requirement
Industry Analysis
Competitors
Large players with established
distribution network
Aggressive in pricing and
promotion
Customers
Extremely satisfied
Trend towards packaged milk
Improved Socio- economic
conditions
Customers - GCMMF
Largest milk brand in Asia
More than 30 dairy brands
Market leader in ghee & butter
Very strong supply chain
Enjoys Fine reputation
Quality with Affordability
Amul Milk
Growth Strategy
Expanding in Delhi and Mumbai zones* in next two years and
then expanding in Kolkata zone* for next 3 years
Rationale: Already good brand recognition through ice cream and
beverages products. Distribution network is established.
Why? Missing growth opportunities that is relatively easy to target and can build
brand recognition for Amul beverages.
Tie with cooperatives in North and western zone to obtain milk for
further processing. Try to enter into long term contracts.
Already procuring from dairy cooperatives in Maharastra, West Bengal and Bihar
Focus
If financially
feasible
2015- 2016
Launching product
in north and west
India.
2017- 2020
Increasing market
share to other
regions in India and
exporting overseas
Industry Analysis
Industry trends High demand expected
Changing consumption patterns, both in tier 1 and tier 2 cities
Rising income levels among the middle-class and changing
lifestyles,
Food Processing Industry
101.43
111.57
122.73
2008
2009
2010
135.00
2011
Industry Structure
Highly unorganized with
75% of the output coming
from unorganized and
small scale industries
148.50
2012
163.35
2013
179.69
2014
197.65
2015
217.42
2016
239.16
2017
33
Unorganized
Small Scale
42
Industry Analysis
Companies need well
developed end-end supply
chain to succeed
Involves high fixed costs
upfront
Demand is more than supply
Presence of middle men in
supply chain
High number of buyers
Intense competition
from MNCs
Major output from
unorganized and small
scale industries
No exit barriers
Food items like raw fruits,
vegetables, rice
Low due to increase demand
for value added goods
Quality conscious
High number of companies
increases buyer power
Competitor analysis
Category
Fruits and
vegetables
Packaged foods
Competitors
Dabur, Mother Dairy, Temptation foods,
Godrej F&B
HUL, ITC, MTR, Haldirams, Priya foods
Modern foods, ITC, Parle, Britannia
Bakery and
confectionary
Implementation Plan
Year
Products Category
2012
2013
Packaged foods
Bakery and
confectionary
2014
Products
Raw fruits and vegetables, pulps,
canned fruits ,juices
Ketchup, Jam, Soups
Biscuits, bread,Non-alcoholic
beverages
Implementation Plan
Distribution Channel
duty
Substitute Products:
No substitute threat
Unfavourable factors:
Decision: Wait and watch policy till international edible oil supply situation
becomes stable
Financial projection
2011 2012
2013
2014
2015
2016
2017Comments
4,398
4,808
5,255
5,744
6,278
6,862
7,500CAGR of 9%
5,376
6,468
7,781
16,303CAGR of 20%
16,197CAGR of 40%
40,000
36,000
293
422
488
725
825
941
489
704
814 1,208 1,376 1,569
147
211
244
363
413
471
9,725 14,011 16,196 24,049 27,374 31,223
49
70
81
121
138
157
8
29
40
80
97
116
41
41
41
41
41
41
Based on
expense ratio of
1,200
income
2,000 statement of
600
FY2009
39,800
200
159
Keeping
retained earning
as constant and
investing in
welfare
41
activities