Gcmmf Case Analysis

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 Cooperative 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 Kids

Ice-Cream, Chocolate, Milk, Nutramul, Sweets, Safal fruit drinks.

House Wife

Dhara Edible Oils, Milk, Safal tomato ketchup and mixed fruit jam, Amul Cheese, Amul spray.

Calorie Conscious Youth

Amul Lite, Dhara Health, Sagar skimmed milk powder. Sweets, Ice-cream, Cheese, 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 Power of Suppliers Low

Competitive Rivalry - High

Threat of Substitutes Low

Bargaining Power of Customers High

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