Realizing that something needed to be done about the unequal balance of

wealth, they turned to Sardar Vallabhbhai Patel for advice. Sardar Patel knew
that their only chance of earning a decent income was when they themselves
gained control over the resources they created. He also knew that the
cooperatives offered them the best chance of gaining that control. So he advised
them to stop selling milk to Polson and form a cooperative of their own. In his
opinion they were to own their own dairy unit. He said, "Throw out Polson and his
milk contractors". They followed his advice and the Kaira District Cooperative
Milk Producers' Union (AMUL) was born, in 1946. By good fortune, they could get
as Chairman - Shri Tribhuvandas Patel, an equally remarkable man. He
understood the concept of cooperation and he understood people. His integrity
was absolute. Because the farmers of Kaira district trusted and respected
Tribhuvandas Patel, the cooperative was able to pass through some very difficult
times and eventually become a model of cooperative dairying throughout the
world.
The Kaira Union began with a clear goal, to ensure that its producer members
received the highest possible share of the consumers' rupee. This goal itself
defined their direction. The focus was on production by the masses, not mass
production. By the early 'sixties, the modest experiment in Kaira had not only
become a success, people began to recognize it as such. Farmers came from all
parts of Gujarat to learn. They went back to their own districts and started their
own cooperatives. The result - Together, the district milk producers unions of
Gujarat own the Gujarat Cooperative Milk Marketing Federation, which markets
4
the milk and milk products manufactured by its owners. The Federation's
turnover was over Rs. 1700 crore making it the largest in the food industry.
In 1964, the then Prime Minister Shri Lal Bahadur Shastri came to inaugurate
cattle feed factory owned by Amul near Anand. Impressed by the cooperative's
success, he expressed his wish to "transplant the spirit of Anand in many other
places". He wanted the Anand model of dairy development replicated in other
parts of the country. With institutions owned by rural producers, which were
sensitive to their needs and responsive to their demands, it was an ideal tool for
progress. The National Dairy Development Board was created in 1965 in
response to this call.
1.2 MEANING OF THE STUDY

A project report on Amul market is being prepared in attempts to interpret in-depth study
of marketing strategy of Amul INDIA. This report helps us to understand various
terminologies in policies and practises market of Amul. This report gave me opportunity
to have complete idea how AMUL has become so successful in Indian diary market...

This project report helps in following aspects,

Recruitment
Recruitment forms the first stage in the process which continues with selection
and cased with the placement of the candidate recruitment makes it possible to
acquire the number and types of people necessary to ensure to continues
operation of the organization requirement has, been regarded as the most
important function of personnel administration.
Amul’s recruitment and selection process is very systematic and comprehensive.
All division head in inform about their manpower requirements. According to the
requirement of the personnel division they get require employees by resources
48
like postal services employment exchange education institution and
advertisement.
Amul Dairy receives lots of applications in response to their advertisement.
These forms contain general information about the candidates. Then forms are
to be checked by authorized person and after scrutinizing eliminates the
unqualified applications. Short listed Applicants are called for personal interview.
Interview committee conducts this interview. When applicants are too many, then
they conduct a written test. Those who pass this test are called for interview and
are selected on the basis of smart selection process.
Sources of Recruitment
By giving advertisement in news papers
Labour Union
Voluntary Organisation
Leasing Contract
Private Employment Agency
Government Employment Exchange
School, Colleges, Universities and Professional Institutes
Recommendation of present Employee
Recruitment as Temporary Workers
Selection
Selection process is concerned with screening relevant information about an
applicant. The objective of selection process is to determine whether an applicant
meets the qualification for a specific job and to choose the applicant who is most
likely to perform well in that job.
Training & Development
49
Training and management development are the two separate things. Training is
required for persons working at operation level and it is required for increasing
the knowledge and skills of employees so that they can perform their tasks in the
best manner while management development refers to the activities that take
place in order to improve the performance of the managerial level personnel.
Training and management development contribute a lot in increasing the
productivity. To facilitate newly selected person at operation level, he is placed at
the work under supervision of a senior worker who gives guidance and
instructions about the particular work. For the managerial level personnel, they
select only those people who are having an experience of at least three years in
similar fields. Then a newly selected person’s performance is observed for three
months.
Promotion & Transfer Policy
Promotion
Two main policies followed by the organisation are:
Automatic promotion
Merit cum seniority
During the period of 1972, promotion was given automatically to a person who
had completed his 6 yrs and 2nd promotion was given after 7 yrs. At that time
they had a policy of rewarding merit on the basis of seniority. But now it is solely
based on merit. Managing Director signs the promotion order after the
recommendation by the personnel & Administration department.
Transfer
Transfer is the pre-relative right of the management. Transfer is done if it is
necessary for the organization. Transfer is generally affected to build up a more
satisfactory work team & to achieve a specific purpose. In this organisation
50
transfer takes place in flash season. Transfers are also to adjust the work forces
of one plant with another.
Wage & Salary Administration
Attendance is considered to be one of the major & important factors responsible
for the Wage & Salary Administration.
At present catalogue record is received from the time keeping office and is
maintained in the register, which is known as master roll. Timekeeper sends this
master roll to the accounts department. Attendance of each & every employee is
analyzed & entered into the computer. The record is scrutinized and a statutory
and non-statutory deduction is made and then after salary is calculated for each
employee.
The wages are paid in cash & also credited in corporate salary a/c. Employee
wages are deducted according to grades of workers. It consists of A, B, C, D, E,
and F grade of workers.
Job Description
Job Description is an important document, which is basically descriptive in nature
and contains a statement of job analysis. It defines the scope of job activities i.e.
major responsibilities & positioning of job in organization. It provides the worker
and supervisor with a clear idea of what kind of work they need to do to meet the
demands of the job. Here those who are at senior Level make job description
regarding managerial position

OBJECTIVE

Amul has given a new dimension to marketing. It showed that a democratically

owned and managed farmer organisation can successfully develop national
market, but by doing this Amul provided virtually guaranteed marketing service to
the milk producer at his door step. Amul has displayed dynamic initiative at a
time when its multinational competitors were merely content to use depreciated
machinery.
Following factors have given us the insight to conclude, why Amul is thriving with
success today:
Emphasis on Quality: All the products of Amul are of highest grade.
Consumers were very quick to perceive this and the sales success that followed
reflected the public’s stamp of approval.
Modern marketing: A good product alone cannot succeed unless backed by
innovative marketing, including packaging, price and promotion. Amul’s
advertising campaigns created a splash in the market that eventually led to a
tidal wave that rocked the competition.
Management: The judicious handling of people, recognition of performance
and encouragement for a good try has gone a long way to build a sound
foundation of people. All the basic components of management that is
production, marketing, finance and organisation behavior are nicely arrayed at
Amul.
65
The co-operative concept: The fundamental thesis underlying the Anand
model is that the rural producer must own and enjoy the assets they have helped
to create. The model has inspired the creation of hundreds of other Anand.
The system has succeeded mainly because of involvement of people on such a
large scale, providing assured market at remunerated prices for milk producers,
enables the consumers access to high quality milk and milk products, ploughing
back the profit to the members, part of the profit is used by the society for
common good and community development.
Amul is doing everything in the best possible manner. Just look at its product
quality, packaging, advertising and nation wide marketing network. This has
given Amul an edge over its competitors.
SIGNIFICANCE
. It can be useful for the new entrepreneurs who have entered the
dairy market.

. To know how AMUL is the leaderin Indian dairymarket.

. To know the production and operation process of Amul.

 The role of dairying in poverty reduction


 The fact that rural development involves more than
agricultural production

 The value of national ‘ownership’ in development

 The beneficial effects of higher incomes in relieving the worst
aspects of poverty

 The capacity of dairying to create jobs

 The capacity of dairying to benefit the poor at low cost

 The importance of commercial approach to development

 The capacity of single-commodity projects to have multi-
dimensional impacts

 The importance of getting government out of commercial
enterprises
 The importance of market failure in agriculture

 The power & problems of participatory organisations
 The importance of policy.
 

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