1

A PROJECT REPORT
ON
AMUL DAIRY

SUBMITTED TO:

SOMLALIT INSTITUTE OF BUSINESS

ADMINISTRATION.

SUBMITTED BY:

SHAH RAJ P.
F.Y.B.B.A.
ROLL NO: - 143

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CERTIFICATE

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ACKNOWLEDGEMENT

Knowledge in itself is continues process but now a day getting

practical knowledge is an important thing and the most important things is
guides. Motivation and inspiration provided by the different of our
substantial support I find no words to express any gratitude to words those
who had helped me directly or indirectly in making this success. I am
indebted and thankful for assistance received forms various individuals

Firstly, I take this opportunity to convey my sincere gratitude to

Professor JAY RAJ SIR whose constant support and guidance helped me
throughout the project.

I am thankful to Managing Director of AMUL DAIRY for providing

us so much accurate information about the unit.

I would also like to thank GCMMF for allowing me to visit such a big
unit.

I am thankful to the other faculties and the Director for their help.

Once again thank to all who directly helped.

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EXECUTIVE SUMMARY

Industrial sector has played a critical rule in the development of Indian

economy industrialization holds the improvement of employment and fuller
utilization of resources.

A dairy industry is a place for handling milk and milk product. Dairy
technology has been defined as the branch of milk and manufacturing of the
milk products for industrial sale.

After 50 years of independence India has become along way and her
journey to words the goals of industrialization and has become self sufficient
in respect of the consumer goods.

Dairy industry occupies important place in Indian economy. It is a

consumer good industry. Large portion of India of Indian population is
vegetarian therefore milk products assume importance as the only source of
the animal fat in their diet important source of protein. So Dairy industry
based on this way the Dairy industry has produced miracle in the form of
white revolution.

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CO –OPERATIVE ENTERPRISE

At present, GCMMF is having 12 such members listed as follows:

1) Amul dairy - Anand

2) Dudh Sagar Dairy - Mehasana

3) Saber dairy -Himmat Nagar

4) Banas dairy -palanpur

5) Panchamrat dairy - Godhra

6) Sumul Dairy -surat

7) Uttam dairy - Ahmedabad

8) Vasundhara Dairy - Valsad

9) Rajkot Dairy - Rajkot

10) Oudhadhara dairy - Bharuch

11) Gandhinagar Dairy - Gandhinager

12) Baroda Dairy - Baroda

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INDEX

No. CONTENT Pg No.

1 Company Profile
1.1 Name & address of the Organization
1.2 Form of the Organization
1.3 Mission of the Organization
1.4 History of the Organization
1.5 Locational Advantages
1.6 Achievement of the Organization
1.7 Organizational Chart
1.8 Establishment Year

2 Production Department
2.1 Product Classification
2.2 Installed & Utilized Capacity
2.3 Production Process Chart
2.4 Production Process

3 Human Resource Department

3.1 Recruitment & Selection
3.2 Types of Interviews
3.3 Promotion & Training
3.4 Incentives and welfare programmes
3.5 Fringe benefits
3.6 Safety measures
3.7 Executive remunerations
3.8 Wage policy

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3.9 Industrial relations

4 Marketing Department
4.1 Types of product(Advance chart)
4.2 How do you decide prices?
4.3 Channels of distribution
4.4 Promotional programmes

5 Finance department
5.1 Initial investment
5.2 How cost is calculated
5.3 Turnover
5.4 Source of finance
5.5 Financial performance

6 Social Responsibility

7 Future Plans

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[1] COMPANY PROFILE

NAME OF THE ORGANIZATION: - AMUL DAIRY

AMUL MEANS (FULL FORM) :-

A: - Anand

M: - Milk

U: - Union

L: - Limited

ADDRESS OF THE ORGANIZATION:-

- Kaira District Co-operative
33333 Milk Producers Union Ltd,
Anand - 38001,
Gujarat
Fax: - -91-269240208
E-mail:- gcmf.amul.com
Website: - www.amul.com

FORM OF THE ORGANIZATION: - Co-operative

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MISSION OF THE ORGANIZATION:-

1) Its basic objective is to provide better quality of products.

2) To give optimum returns to his members

3) To Assisi in the development of small villages co-operatives.

4) To minimize the adverse effect on the environment.

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HISTORY OF AMUL
In the 1940s, in the district of Kaira in the State of Gujarat, India, a
unique experiment was conducted that became one of the most celebrated
success stories of India. At that time, in Gujarat, milk was obtained from
farmers by private milk contractors and by a private company, Polson's
Dairy in Anand, the headquarters of the district. The company had a virtual
stranglehold on the farmers, deciding the prices both of the procured as well
as the sold milk. The company arranged to collect, chill and supply milk to
the Bombay Milk Scheme, which supplied milk to the metropolis of
Bombay, and to cities in Gujarat. Polson's Dairy also extracted dairy
products such as cheese and butter. Polson's Dairy exploited its monopoly
fully; the farmers were forced to accept very low prices for their products,
and the decisions of the company regarding the quality and even the quantity
of the milk supplied by the farmers were final.

In 1946, inspired by Sardar Vallabhbhai Patel, a local farmer, freedom

fighter and social worker, named Tribhuvandas Patel, organized the farmers
into co-operatives, which would procure milk from the farmers, process the
milk and sell it in Bombay to customers including the Bombay Milk
Scheme. Purely by chance, in 1949, a mechanical engineer named Verghese
Kurien, who had just completed his studies in engineering in the USA, came
to India and was posted by the Government of India to a job at the Dairy
Research Institute at Anand. Dr Kurien's involvement with the Kaira District
Co-operative Milk Producers' Union Limited grew rapidly.

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The most important feature of these co-operatives is that they are run
purely as farmers' co-operatives, with all the major decisions being taken by
the farmers themselves. The co-operatives are not 'run' by a separate
bureaucracy with vested interests of its own; the farmers are truly in charge
of their own decisions.

This experiment of organising farmers into co-operatives was one of

the most successful interventions in India. A very loyal clientele was built up
who experienced prosperity on a scale they could not have dreamt of 10
years earlier.

In 1954, Amul built a plant to convert surplus milk produced in the

cold seasons into milk powder and butter. In 1958, Subsequent years saw the
addition of more plants to produce different products. Starting from a daily
procurement of 250 litres in 1946, Amul had become a milk giant with a
large procurement base.

On his visit to Anand in 1965, the then Prime Minister of India, Lal
Bahadur Shastri, was impressed by what he saw—a system that procured,
processed and delivered high quality milk to distant markets cost efficiently.
Shastri could also see the difference that the income from milk had made to
the standard of living of farmers in the area. What impressed him the most
was that Amul had done all this without government assistance?

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LOCATIONAL ADVANTAGES:-

 The Kaira District is very good place for dairy industry from where it
was ranged from a small dairy to the national level repute.

 There are very clear and roads along with railways line for
transportation due to this reason collection of milk easily and speedily
take place here.

 Anand is a big city, which is surrounded by many village being in a

big city is easily available being situated Anand.

ACHIVEMENTS OF THE ORGANIZATION:-

Even at the time of its formation, GCMMF had three major products in
its portfolio: liquid milk, butter and milk powder. Gradually, many new
products were added to its range, largely milk derivatives. so that poorer
people can also afford to drink milk. In the 1970s, Amul introduced its
processed cheddar cheese, a malt based beverage called Nutramul and
chocolates. In 1983, cheese spread was launched by GCMMF. Amulya, a
dairy whitener was introduced and it soon became the market leader.

In 1996, Amul launched its Amul brand ice cream. India's ice cream
market was estimated to be worth around Rs 8 billion in the year 2000
(about US$ 175.8 million). GCMMF launched its ice creams in fourteen
flavours in the city of Mumbai (Bombay) and Gujarat State. At launch,
prices were about 30% lower than the prevailing prices and GCMMF also
emphasised that the ice cream did not contain any gelatin. In less than a
year, Amul ice cream commanded a market share of about 55% in Gujarat
and 30% in Mumbai; by the year 2000, its share in India as a whole had
reached 30%. In 1997, Amul achieved further success when it managed to
get various co-operatives in the country, trying to launch their own ice cream
brands, to sell all their ice creams under the Amul brand name. This enabled
GCMMF to benefit from the capacity of many of the more than 170 co-

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operative unions in the country, with a milk procurement of more than 15

million litres/day, located close to the markets.

By the year 2000, its product range was truly expansive: three
varieties of milk, flavoured milk, buttermilk, four varieties of milk powder,
two varieties of butter, five varieties of cheese, two varieties of ghee
(clarified butter), chocolates, chocolate drinks, sweets, ice cream, edible oils
and fruit and vegetable based products. The latest additions to the range of
brands marketed by GCMMF are Masti Dahi (curd) and Amul Taaza (long-
life milk). In the year 1999–2000, GCMMF had a total turnover of Rs 22.2
billion (about US$ 550 million).

ORGANIZATIONAL CHARTS:-

GCMMF is a lean organisation, a strategy that is believed to provide it

with a cost advantage. At its headquarters in Anand, four general managers
(GMs) and four assistant general managers (AGMs) assist the managing
director (MD). The four AGMs look after the functions of marketing,
systems, co-operative services and technical projects, respectively. The four
GMs are in charge of marketing (dairy products), human resources
development and marketing (Dhara and new business), finance and quality
assurance, respectively.

The whole country is divided into five zones, each headed by a zonal
manager responsible for the sales of all products within his zone. These
managers report to the MD but functionally each also reports to the various
AGMs/GMs at the headquarters. There are 50 sales offices spread across the
country (of which only two are in Gujarat); a sales manager heads each
office and is assisted by sales officers and field salespersons. The entire
country has been represented in this structure. GCMMF has one overseas
office in Dubai.

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Managing Director

Production Marketing Finance

Manager Manager Manager

Factory Store Sales Advertising Chief Internal

Manager Manager Manager Manager Accountant Manager

Forman Sales Selection

ESTABLISHMENT YEAR: - December 4th 1946

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[2] PRODUCTION DEPARTMENT

PRODUCT CLASSIFICATION
BREAD SPREADS
1. AMUL BUTTER
2. DELICIOUS TABLE MARGARINE
3. AMUL LITE
MILK DRINKS
1. AMUL KOOL MILK SHAAKE
2. AMUL KOOL
3. AMUL KOOL CAFÉ
4. NATRAMUL ENERGY DRINK
5. AMUL KOOL FLAVOURED BOTTLED MILK
6. AMUL MASTI SPICED BUTTERMILK
7. KOOL KOKO
8. AMUL KOOL CHOCOLATE MILK
9. AMUL KOOL FLAVOURED TETRA PACK
10.AMUL LASSEE
11.AMUL KOOL THANDAI
POWDER MILK
1. AMUL SPRAY INFANT MILK FOOD
2. SAGAR SKIMMED MILK POWDER
3. AMULYA DAIRY WHITENER
4. AMUL INSTANT FULL CREAM MILK POWDER
5. SAGAR TEA COFFEE WHITENER

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FRESH MILK
1. AMUL FRESH MILK
2. AMUL TAZZA DOUBLE TONED MULK
3. AMUL FRESH CREAM
4. AMUL CALCI+
AMUL GOLD MILK
5. AMUL LITE SLIM AND TRIM MILK
6. AMUL SHAKTI TONED MILK
7. AMUL BUTTERMILK
CHEESE
1. AMUL PASTEURISED PROCESSED CHEESE
2. AMUL EMMENTAL CHEESE
3. GOUDA CHEESE
4. AMUL CHEESE SPREADS
5. AMUL PEZZA MOZZARELLA CHEESE
FOR COOKING
1. AMUL / SAGAR PURE GHEE
2. AMUL MALAI PANEER
3. MITHI MATE
4. PRO-BIOTIC DAHI
5. COKKING BUTTER
6. UTTERLY DELICIOUS PIZZA
7. MASTI DAHI
DESSERTS
1. AMUL ICE CREAMS
2. AMUL MITHAEE GULAB JAMUNS
3. AMUL BASUNDI
4. AMUL SHRIKHAND
5. AMUL CHOCOLATES

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HEALTH DRINKS
1. NATRAMUL
2. AMUL SHAKTI HEALTH FOOD DRINK

UTILIZED CAPACITIES

 Members: 13 district cooperative milk producers' Union

 No. of Producer Members: 2.79 million
 No. of Village Societies: 13,328
 Total Milk handling capacity: 11.22 million litres per day
 Milk collection (Total - 2008-09): 3.05 billion litres
 Milk collection (Daily Average 2008-09): 8.4 million litres
 Milk Drying Capacity: 626 Mts. per day
 Cattlefeed manufacturing Capacity: 3500 Mts per day

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Production Process Chart

Milk Process

Milk Milk
Pasteurization Standardization

PHE Milk Separator

(Plant_Heat_Exange) (Separates milk
Milk_flows_chilling_or and cream)
heating_medium
Milk taken to
2_cillos cillos 2_cillos

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PRODUCTION PROCESS

Production itself a process for converting the raw material into

finished product after passing though different types of process steps. In the
other words production process is a combination of collectively taken certain
steps to receive finished final product.

1. Milk Storage at plant :-

The chilled milk received from various chilling center stored there in
―AMUL DAIRY‖ about 10-lakh liter of milk is collected every day from
1509 villages before collecting the fat it is checked in the laboratory. On
laboratory test they decide about the amount of milk to be collected.
All the raw milk collected at ―AMUL DAIRY‖ is laboratory tested the
fat and sniff of the milk then it is sent for pasteurizing.

2. Pasteurizing:-
After laboratory test of milk pasteurizing process is conducted
through three pasteurization machines. The milk passed through the above
machines with the help of water pumps. The milk in the pasteurizing
machines is heated at 80 to 82 for 15 seconds and after it is cooled at 5‘ Co.
After this method the pathogenic bacteria present in the raw milk are
destroyed and the milk becomes good for use. Now this process milk goes to
separator machine and some part of milk is sent to patching machine.

3. Separation:-
This separation machines by falcate the milk into different kind of
products.
(1) Skimmed milk
(2) Cream

The above both products sent to the different channels. There are
hundred disk fixed in the separator machine. Now it is taken to the tank,

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which has the storage capacity of 20 thousand liters. There are four tanks
and the milk in every tank has different portion of SNF. It is the deficit
portion is added by mixing cream. There is some space in the tank to fill the
added cream.
Now after adding necessary fat and SNF in the milk it is packed in
250 ml and 500 ml pouches. The pouches are kept in a basket which has the
capacity to contain of the machine is 100 pouch per minute.

6. Storage Facility:-
After packing the milk in pouches, the pouches are taken to the cold
storage, which has the capacity of containing 4500 pouches at the
temperature on 8 to 10 degree Celsius. The temperature is maintaining with
the help of silicon chips fans, with the help of ammonia.

7. Process of Ghee:-
The separator machine separator the cream and sends it to butter
churching machine. These machines rotate for half and hour and the butter
then take to the Ghee Kettle. Where it is heated at 40 o C. degree Celsius.
Now the ghee is packed in pouches, tins, which is add in the market by the
brand name of ―AMUL DAIRY‖ The production of the ghee plant is
144181liter of ghee per year.

8. Process of milk powder:-

First chilled milk receive from chilling plant to ―AMUL DAIRY‖ is
checked in the laboratory and pass though separator machine though
different channels. It is again tested in the laboratory and according to deficit
it is added by mixing machine. After adding more fats and creaming milk
there are some raw materials like salt and some other chemicals are also
adding in the milk now the milk is boiled in vacuum so that it becomes
thick. The thick milk is passed through condenser. Now, this condense ilk is
sent too drier. The sour milk is taken away. The moistures remaining in the
milk powder is taken away at a temperature of 60 Celsius. The machine pea
this powder place this powder place automatically by machines without
touching by human hand this powder milk is stored in cool place and sold
under the make milk from powder in the name of sold under the make milk

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from powder in the name of ―AMULYA‖ The capacity of production in

17000 liters. There are three milk powder plants.

9. Process of Amul Butter:-

After collecting and testing the milk in ―AMUL DAIRY‖ laboratory.

It is passed through pasteurizing plant by this method the pathogenic
bacterial presence in the raw milk are destroyed after this process some milk
goes to separator machine where two products are produced at one hand
schemed milk and at the other hand cream. Now the cream to churching
machine by churching of ripen cream keeping the fat present at bout 83 %
the butter is ready. It can be with of without salt.

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[3] HUMAN RESOURCE DEPARTMENT

Training and Development of Personnel’s

Amul employee are also provided training which helps to

remove performance deficiencies in employees performance
deficiencies in employees training is given to them only when,

a) Deficiency is caused by a lack of ability rather than a lack of

motivation to perform.
b) The individual involves has the attitudes and motivation needed
learn to the job better.
c) Supervisors & peers are supportive of the desired behaviors.

Training Contributes
 Employee‘s stability

 Employees become efficient after understanding to training

efficient.

 Employee Contribute to the growth of the organization.

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Wages and Salary

 Attendance is one of the major factors for the wages and salary
administration.

 The time keeper reads the record of the attendance to the accounts
department where it is entered into the computer.

 The record is study and after this salary is calculated for each
employee through the computer.

 On the other hand milk producer are paid regularly on first and 25th
of every month.

Facilities given to employees.

 Canteen

 Group Insurance average

 Healthy Environment

 Health checkup.

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[4] MARKETING DEPARTMENT

Marketing

Advertisement Packaging Selling

In the olden days there where sellers market in India but now a days
the trend has rapidly change the sellers market converted into the buyers
market.
In the change scenario now marketing has to play an important role by
providing a customer complete satisfaction by building value laden
relationship with the important customers. The marketing departments have
to create more demand for our product.
In the other words, we can say each marketing person must think to
create new customers and strengthen relationship with the existing
customers. It means the marketing people only have to think about
customers.

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TYPES OF PRODUCTS

Breadspreads:
 Amul Butter
 Amul Lite Low Fat Breadspread
 Amul Cooking Butter

Cheese Range:

 Amul Pasteurized Processed Cheddar Cheese

 Amul Processed Cheese Spread
 Amul Pizza (Mozarella) Cheese
 Amul Shredded Pizza Cheese
 Amul Emmental Cheese
 Amul Gouda Cheese
 Amul Malai Paneer (cottage cheese)
 Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

 Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

 Amul Amrakhand
 Amul Mithaee Gulabjamuns
 Amul Mithaee Gulabjamun Mix
 Amul Mithaee Kulfi Mix
 Avsar Ladoos

UHT Milk Range:

 Amul Shakti 3% fat Milk

 Amul Taaza 1.5% fat Milk
 Amul Gold 4.5% fat Milk
 Amul Lite Slim-n-Trim Milk 0% fat milk
 Amul Shakti Toned Milk
 Amul Fresh Cream
 Amul Snowcap Softy Mix


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Pure Ghee:

 Amul Pure Ghee

 Sagar Pure Ghee
 Amul Cow Ghee

Infant Milk Range:

 Amul Infant Milk Formula 1 (0-6 months)

 Amul Infant Milk Formula 2 ( 6 months above)
 Amulspray Infant Milk Food

Milk Powders:

 Amul Full Cream Milk Powder

 Amulya Dairy Whitener
 Sagar Skimmed Milk Powder
 Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

 Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

 Amul Taaza Toned Milk 3% fat

 Amul Gold Full Cream Milk 6% fat
 Amul Shakti Standardised Milk 4.5% fat
 Amul Slim & Trim Double Toned Milk 1.5% fat
 Amul Saathi Skimmed Milk 0% fat
 Amul Cow Milk

Curd Products:

 Yogi Sweetened Flavoured Dahi (Dessert)

 Amul Masti Dahi (fresh curd)
 Amul Masti Spiced Butter Milk
 Amul Lassee

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Amul Icecreams:

 Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

 Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit
Bonanza, Roasted Almond)
 Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh
Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)
 Sundae Range (Mango, Black Currant, Sundae Magic, Double
Sundae)
 Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone,
Chococrunch, Megabite, Cassatta)
 Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake
Magic)

Chocolate & Confectionery:

 Amul Milk Chocolate

 Amul Fruit & Nut Chocolate

Brown Beverage:

 Nutramul Malted Milk Food

Milk Drink:

 Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom,

Rose, Chocolate)
 Amul Kool Cafe
 Amul Kool Koko
 Amul Kool Millk Shaake (Mango, Strawberry, Badam, Banana)

Health Beverage:

 Amul Shakti White Milk Food

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The basic concept of marketing:-

 Touch the heart of the customer to create demand.

 Note customer‘s needs, pick their choice,
 Provide product knowledge, assure for food service, ideas, product
value.

Customer complete satisfaction

Creating product awareness through

Digerent, modes, Advertisement

Exchange & Transaction

Relationship and service network

Develop existing markets

Search new market and Prospects

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Distribution chart

GEMMF made indirect channel for distribution. They take of agents

within the country and also for abrod. Agent supply to wholesalers and he
supply to retailer and the retailer supply to customers.

PRODUCTION

AGENT

WHOLESALER

RETAILER

CUSTOMER

Advertising
 Anand milk union ltd. Is related to Gujarat co-operative milk

 Marketing federation. they usually selected media like

 Televion, radio, news paper, picture point on wall an road side etc.

 Prefer to choose always cross roads for advertising.

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PROMOTIONAL PROGRAMMES:-

August 04, Visit of Ministerial Delegation from Chhattisgarh

2009
July 03, 2009 Amul & IBM sign IT services agreement to fuel future
growth
June 27, 2009 Shri B M Vyas, MD, GCMMF gets prestigious ‗Charotar
Ratna‘ Award
June 05, 2009 GCMMF (AMUL) Beats Recession, Achieves, A Turnover
Of Rs. 6700 Crores
May 31, 2009 Visit of Ministerial Delegation from Uganda
May 29, 2009 14th Annual Kaizen Celebration
February 21, 25th Hoshin Kanri Meeting At Anand
2009
February 07, Indian Dairy Association (IDA) Honours B. M. Vyas for his
2009 Outstanding Role
January 08, IAS Officer Trainees of the 2008 batch
2009
December 25, Amul‘s Christmas Celebration At Second Life
2008
December 20, 13th Ice Cream Hoshin Kanri Meeting At Anand
2008
December 05, 4th Amul Milk Hoshin Kanri Meeting At Anand
2008
November 22, Visit of Students from IIM, Ahmedabad
2008
October 21, Visit of Dutch Expert
2008
October 11, Launch of South South Experience Exchange Facility at
2008 World Bank, Washington
October 07, Visit of Tetra Pak Delegation
2008
Sept 20, 2008 24th Hoshin Kanri Meeting At Anand
August 28, Visit of Senior Journalists from the Republic of Kazakhstan

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2008 and the Republic Uzbekistan

August 21, Visit of Chairman, National Coop. Fed. , Nepal
2008
August 15, Amul Coops plant more than 70 lakhs trees
2008
July 12, 2008 Visit of Training Officers from Cooperative College of
Malaysia, Kuala Lumpur
July 10, 2008 Visit of MD, NCDC, New Delhi
July 08, 2008 Visit of Secretary, AHD & Fisheries, GOI
June 30, 2008 Visit of SBI Managing Director
June 27, 2008 Visit of Mr. Walter Stechel, Consul General, German
Consulate General, Mumbai
June 26, 2008 CRISIL ‗AAA‘ and ‗P1+‘ for GUJARAT COOPERATIVE
MILK MARKETING FEDERATION‘ bank facilities
June 20, 2008 Visit of Singapore Indian Chamber of Commerce &
Industry
June 18, 2008 Visit of World Bank Team
June 09, 2008 Visit of IFAD Team
June 03, 2008 GCMMF bags Apeda Award for 11th year in a row
March 29, Visit of African Youth Group
2008
March 19, Visit of Board of Directors, Koyana Union
2008
February 23, 23rd Hoshin Kanri Meeting At Anand
2008

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 [4] FINANCE DEPARTMENT

The turnover that year march 1, April 2000 was last crore hats the
profit was only to 1 crore 3 lucks beaulement of the profit was given back to
the people. The difference in price at the during the year at the time of Holi &
diwali also 15 % dividend on a have was distribution, Hence in this was
numy at Rs. 1.78 given to milk powder & 2.7 prise is an bellow 1.1 price we
toa advertisement tant & 5 % electricity expense % 147 is administrative
what.

Today three is a staff of 1400 people chocolate mint, diary plant &
chilling center. Also Amul creating job opportunities for various
professionals into dairy technology, micro biologist‘s business administrative
computer expert and computer analysis reads insurance agents etc. This is the
way the populated country like our process previously in Mumbai city
animals were kept the artificial addition but now in khaira the animal were
kept in the metal condition & they gets free with clean water. In fact National
dairy Development Board (Nddb) started milk production anand patten in all
state like keralla A.P. & Tamilnadu etc.

Amul dairy is determined to provide better cervices to the farmers and

co-operative members and very good incentives. Amul dairy also qualified
milk , ghee, butter, cheese etc. to the consumers at a reasonable price.

Amul dairy has been able to strike a prepare and effective balance
between the aver increase expenses and competitive revenues without
compromising on the quality of the product. It is an important task but a
challenging and rewarding one for any manager because this is Amul Dairy.

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INITIAL INVESTMENT
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504

Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850

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PARTICULARS 2005 2006

Opening stock 17951.14 19295.58

Raw materials consumed 44095.28 45518.15

Salaries 2263.58 2385.18

Power and fuel expenditure 1563.14 1396.07

Other manufacturing expenses 339.93 312.31

Rent and electricity expenditure 112.84 107.56

Repairs and maintenances Expenditure 582.47 582.04

Marketing Expenditure 8091.81 9157.24

Postage Telephone Printing and Stationary 288.40 300.27

Donation - 36.00

Cooperative Development Expenses 186.36 2136.66

Legal and Professional charge 45.54 36.04

General Expenses 222.98 220.33

Traveling and Conveyance 351.70 366.39

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BALANCE SHEET

PARTICULAR 2004 - 2005 2005 – 2006

DEBIT

Net purchase 28630.73 28662.05

Raw materials consumption 8001.18 8990.68
Research expenditure 418.71 350.71
Processing expenditure 139.79 124.73
Packaging expenditure 3021.22 2995.23
Power and fuel 2318.32 2339.90
Salaries 1260.15 1325.27
Staff P.F and gratuity 268.54 269.69
Repair expenditure 342.75 336.26
Marketing expenditure 30.44 25.96
Printing and phone expenditure 26.39 26.17
Insurance Premium 18.11 20.17
Rent Expenditure 7.83 7.84
Miscellaneous Expenditure 22.24 32.10
Interest and Commission 1645.97 1445.95
Depreciation 1349.38 1336.59
Net Profit 145.74 196.20

CREDIT

Net Sales 48403.01 46445.48

Income from Investment 376.12 572.31
Dividend Income 72.47 71.26
Miscellaneous Income 489.40 211.23

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CHANGE MANAGEMENT OF GCMMF

In 1991, the previously protected Indian economy first became exposed to the 'winds of
liberalisation' when the government opened up the sector to global competition. The
Government of India passed the Milk and Milk Products Order (MMPO) in 1992,
whereby the milk collection sheds allotted to different co-operative unions were protected
from the entry of new enterprises, which otherwise would have competed for the
procurement of milk from the milk sheds. With the liberalised import regime and reduced
import duties on most food and dairy products, it became clear that it was necessary to
deal with the upcoming competition.

The co-operatives needed to change in speed and direction. The existing set up of
governance needed a complete shift of paradigm. The impending challenge necessitated
the organisations to anticipate change and be prepared for it by bringing about change in
the way they worked and thought. The competition would force all to be customer
focused and to plan for innovation and continuous improvements in the quality of all
aspects—products, service, processes and systems.

It was at about this time in GCMMF that 'change management' was considered to bring
about improvements in the existing management systems with quality as the cutting edge
(Figure 1). It was also decided that all the links on the production and marketing side had
to be involved in the process of change management, to make it a real and a complete
success (Table 1).

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GCMMF = Gujarat Co-operative Milk Marketing Federation;

MUs = Member Unions; VCs = Village Co-operatives.
Figure 1. Scope of change management.

Table 1. Summary of change management initiatives implemented for the various links of
the chain.

Distributor GCMMF Member unions Village co-operatives

 Vision  Vision 2005  Vision mission  Housekeeping
mission  Introspection on values workshop  Village self
workshop  Identification of strategic  Identification of leadership
 Amul thrust areas strategic thrust areas development
Yatra  Strategy deployment  Strategy deployment programme
 Amul (Hoshin Kanri) Kaizen  Kaizen  Women's
quality movement  Housekeeping leadership
circle  Housekeeping  Small group activities development
 Small group activity (SGA)  ISO and HACCP programme
 International training (hazard analysis critical  ISO certification
programmes on change control point)
management certification
 Transformational leadership  International training
 Internal consultant programme on change
development management
 ISO (International  Internal consultant
Organization for development
Standardization)
certification

The two areas, which need special attention, are that of 'customer focus' and 'quality
orientation'. These areas will be the foundation stones for providing a competitive edge to
small-scale producers' co-operative organisations. With the competition intensifying and
the consumer becoming more demanding than ever before, it is imperative that such
organisations remain very close to the consumer; the consumer needs to be central to all
decisions. Furthermore, with the increasing level of consumer education and the potential
issue of non-tariff barriers looming large over prospective exports to other countries,
organisations must keep up with the pace of technology, upgrading to attain higher levels
of quality delivery.

To cope with the impending changes and to outperform the competition, the institutional
structure created so far, now needs to abide by a new set of paradigms, acting sooner and
faster, with focus on customer and quality. Only this can ensure stable and consistent
returns to the milk producers who depend on these economic activities as tools for their
social development.

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CONCLUSION

After studying the details about the marketing strategies & behaviors
of Amul, We can conclude the following:

Quality is the main point of concentrated for Amul. They wanted to

give their customer the best quality good at a cheaper rate, which give the
customer satisfactory.

They want to make Amul as the biggest supplier of the fabrics with
good quality.

They don‘t concentrate more efforts to the brands either it is lee,

flying machine or any other brand they put more effort on fabrics made.

They don't concentrate advertising. They think that if they customers

are satisfied they will come & buy the commodity by them selves. They
believe in long lasting relation. They believe customers are God.

AMUL TASTE OF INDIA

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BIBLIOGRAPHY

 Kottler Philip, marketing management, Singapore, person education

ltd, 2004, 800 pp.

 Bhuoon Y.K. fundamental of business organization and management,

New Delhi, Sultan and Sons educational publishers, 1994, 625 pp.

 PRASAD L.M., Principle and practice of management, delhi sultan

and sons education press, 1997, 730 P.P.

ARTICLES

 Kurian V. Ahat, the future hold, Amul Annual report Gujarat Anand
press 2003-2004.

 Singhania, Aditya Competitors in Diary market first Globle

WEB-SITE:-
www.amul.com
www.google.com

AMUL TASTE OF INDIA