HISTORYAmul ("priceless" in Sanskrit. The brand name

"Amul," from the Sanskrit "Amoolya," (meaning Precious) formed in 1946, is a dairy cooperative in India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF)

The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest food products marketing organisation of India.

In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002.

The portfolio consisted of impulse products like sticks, cones, cups as well as take home packs and institutional/catering packs.

It achieved the No 1 position in the country. This position was achieved in 2001 and it has continued to remain at the top.

Today the market share of Amul ice cream is 38% share against the 9% market share of HLL (Kwality Walls), thus making it 4 times larger than its closest competitor.

Not only has it grown at a phenomenal rate but has added a vast variety of flavours to its ever growing range.

In January 2007, Amul introduced SUGAR FREE & ProLife Probiotic Wellness Ice Cream, which was a first in India.

Amul’s entry into ice creams is regarded as successful due to the large market share it was able to capture within a short period of time – due to price differential, quality of products and of course the brand name.

FACTSThe portfolio consisted of

impulse products like sticks, cones, cups as well as take home packs and institutional/catering packs.

In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999.

Has combated competition like Walls, Mother Dairy and achieved the No 1 position in the country.

Today the market share of Amul ice cream is 38%.

Amul’s entry into ice creams is regarded as successful due to the large market share it was able to capture within a short period of time.

Ice Cream Industry in India Industry Snapshot:-

Market Size - 1200 Crores Ice Cream market is growing at 26%

 Major players:-

Amul - Market Leader with share of 36% HLL - Kwality Walls - 2nd biggest player Mother Diary Arun - Chennai Based Hatsun Agro Product

 

Few Brands/ Target Consumers

1. Youth Centric - Chillz 2. Kids - Moo 3. Teenagers - Cornetto 4. Health Conscious - Amul Sugarfree & Pro-Life

10000003000002500003000003500002000002500001500001000005000010000015000032000001845003384500

1032.533.522.51.510.511.581.845

33.845

Particulars CPU Amount

COST SHEET

Opening StockRaw MaterialsDry FruitsMilkFlavoursOther IngredientsSugarCupCutlerySeasonal FruitsWaffleCocoa  Carriage InwardRAW MATERIAL CONSUMED

Direct Expenses Direct LabourPRIME COST Factory Overheads: Fixed:Depreciation Rent Power Insurance Supervisor’s SalaryVariable:Electricity Running exp of machineWORKS COST

2.25.340.045   2.511.751.50.6 0.719.05

50.395

2200005300004134500   25000010000017500015000060000 70000100000905000

5039500

Particulars CPU Amount

Office OverheadsEmployee CostOther Expenditure:Computer TelephoneTaxesCarriage OutwardCOST OF PRODUCTION Opening Stock-Closing StockCOST OF GOODS SOLD

10

1.20.10.40.262.295 2 64.295

1000000 1200001000040000200006229500 200000 6429500

Particulars CPU Amount

Particulars CPU AmountSelling&Dist Exps:

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Delivery Vehicles

Petrol

Packaging Rates

COST OF SALES

 

PROFIT

 

SALES

43.51.750.50574.05

18.5

92.5625

400000350000175000505007405000 

1851250 

9256250

MARGINAL COST SHEET9256250 320000033845002671750 9050001000000100000190000476750

SALESVariable Cost:Purchases RM ConsumedCONTRIBUTION - Fixed Cost Factory Expenses Employee Cost Depreciation Other ExpenditurePROFIT

COST SHEET ANALYSISThe company is producing 100000 units of

ice cream at Rs. 74.05 for which the total cost incurred is Rs. 7405000 and the total sales is Rs. 9256250 which implies that that the profit being made is Rs. 1851250.

The company is producing a single cup of ice cream at Rs. 92.5625 which includes the cost of a cup ice cream at Rs. 74.05 which again implies that the profit of Rs. 18.5125 is earned on a single unit of Amul ice cream.

Since the company is earning some percentage of profit above the cost, it means a slight increase in the cost will not have too much of an effect on the profit since there is a large margin of safety.

Since the company is earning some amount of profit, the business is capable to expand and diversify over a period of time.

PVR = C/S = 2671750/9256250 = 28.86%BEP (in Rs.) = FC/PVR = 2195000/28.86 =

Rs.760568.26BEP (in units) = FC/C = 2195000/2.67175 =

821558.9 = 821559MOS = Profit/PVR = 476750/28.86 = 16519.404

Determination of SPAmul Ice Cream has marked the selling price of

their product roughly 20% above the cost price.This implies that they are making a profit on each

unit of output that is sold.These profits can be ploughed into the business

again to create more output.

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