Gujarat Co-operative Milk Marketing Federation Limited (GCMMF) is the sole marketing agency for the products produced by different milk co-operative member unions of the state of Gujarat and for those of other states marketing their products under the brand name of Amul. The product range is mostly milk and milk products. GCMMF is faced with a decision problem of diversifying into other areas, especially food products. This is likely to meet with stiff competition from compares such as Hindustan Lever Ltd. The case highlights this decision problem of whether or not to diversify.