When it comes to brands associated with dairy products, two names click in our mind viz. Amul and Mother Dairy! Why only these two? Because they are one of the most successful dairy brands in India. They are known for their strong brand recognition, high-quality dairy products, extensive distribution networks, affordable pricing, and effective marketing strategies. Also, they have built trust among consumers over the years, offering a wide range of dairy products and maintaining a focus on customer satisfaction. However, things get complicated when there is a heated debate on Amul vs Mother Dairy! Which is more successful and popular?
Are you also trapped in this dilemma?
If yes, then let’s dive into a comparative analysis of Amul vs Mother Dairy. It will help you to determine which one is more successful.
Amul vs Mother Dairy: A Brief Overview
Before diving deep into the comparative analysis, let’s have a brief overview of both companies.
|Brand’s Name||AMUL||Mother Dairy|
|Industry||Dairy & FMCG (Fast Moving Consumer Goods)||Dairy & Dairy Products|
|Founder||Tribhuvandas Patel||National Dairy Development Board (NDDB)|
|Headquarters||Anand, Gujrat||Noida, Uttar Pradesh|
|Ownership||Dairy Producers of Gujarat||National Dairy Development Board, |
Ministry of Fishes, Animal Husbandry and Dairying,
Government of India
|Area Served||Worldwide||Worldwide but primarily focused on Domestic Market|
Both Amul and Mother Dairy are well-known dairy brands in India. They have been competing with each other since the 1970s. Competition between companies arises whenever they operate in the same segment. To determine which one is successful, we need to consider various factors and compare them side-by-side. The upcoming sections will provide you with a comparative analysis of Amul vs Mother Dairy based on various factors like finances, operations, functions, business model, product range, etc.
Operations & Working Strategy
Let’s compare the operations, functioning, and working strategies of both entities i.e. Amul vs Mother Dairy-
|Market Presence||Nationwide Presence (India)||Primarily operates in Delhi and NCR (National Capital Region); Planning to expand in different cities.|
|Product Range||Dairy Products and Confectionaries||Dairy Products|
|Market Share||Indian Butter: 85%|
Infant Milk: 63%
Dairy Whiteners: 45%
|Liquid Milk: 66% (Delhi and NCR)|
|Brand Recognition||Well-recognized brand in India due to iconic taglines and astonishing marketing strategies.||Popular brand in Delhi NCR due to good quality of product and effective distribution system.|
|Business Model||Work on a cooperative model in which farmers are the primary stakeholders (middlemen absent).||Operates as a subsidiary of NDDB under “Operation Flood” which led to the white revolution.|
|Distribution Network||A well-established distribution network across the nation including rural areas||Limited to only the Delhi-NCR region.|
|Market Reach||Urban + Rural Areas||Confined to Urban areas|
|Industry Influence||High (due to strong presence all over India)||Moderate (due to presence in limited areas)|
|Export Operations||Worldwide + Domestic Market||More focus on the domestic market than the international market.|
From the above table, you can see that Mother Dairy gives tough competition to AMUL only in Delhi NCR. But AMUL is a bigger player in the rest of India. Mother Dairy began its operations much later than AMUL. Due to this, the former couldn’t expand like the latter.
Functions & Volumes in the Dairy Segment
|Dairy Particulars||AMUL||Mother Dairy|
|Milk Handling Capacity||5.2 million liters per day||3.2 million liters per day|
|Milk Production Per Day||3.3 million liters||2.5 million liters per day|
|Number of Milk Farmers||7,15,028 milk farmers||24,000 milk farmers|
You may assume that AMUL is the leader in the dairy segment (which is quite true). But have you noticed an interesting fact about Mother Dairy?
Despite primarily operating only in Delhi NCR, its milk production and handling capacity is quite close to that of AMUL. For instance- AMUL handles 5.2 million liters of milk per day whereas Mother Dairy handles 3.2 liters of milk per day. And that too in just Delhi NCR region and a few other parts of India. But still, AMUL is the winner! So where is the lacking point here? The distribution system! Mother Dairy needs to expand its network to beat AMUL.
Amul vs Mother Dairy: Comparison of Financials
|Financials (FY22)||AMUL||Mother Dairy|
|Revenue||Rs.52,000 crore||Rs.12,583 crore|
|Turnover||Rs.61,000 crore||Rs.15,000 crore|
It is obvious that if an entity operates in a larger space, then eventually its revenue would be higher. Similar is the case of Amul vs Mother Dairy. Amul generated higher revenue as compared to Mother Dairy.
Let’s return to our query- Who is more successful in the battle of AMUL vs Mother Dairy? Well, the answer is clear. AMUL is the winner! Not only in terms of financials but also in terms of market reach. If you observe the tables given above, you will notice that AMUL wins every segment of the comparison analysis. It is mainly due to a greater market reach and its unique marketing strategies. How can we forget the catchy and iconic taglines of AMUL’s advertisement? Whenever there is any occasion, we see AMUL’s ad girl in a new makeover as if she is a live entity! These fascinating advertisements get nationwide attention from urban to rural households.
As a result, AMUL (Anand Milk Union Limited) became a household brand name for dairy products. However, Mother Dairy uses a traditional form of marketing and focuses on the distribution system specifically in the Delhi NCR region. Thus, AMUL has a greater market reach, higher revenue, and effective marketing strategies. These are the reasons that made AMUL more successful than Mother Dairy!