TECHNICAL ANALYSIS OF AMUL PLANT

By: Aziz Ali Afzaly

Retail Management
Roll number: 22048

Amul, the taste of India is the largest producer of milk in the world. The dairy products contribute
to health benefits with essential nutrients like calcium, vitamins and an excellent source of protein.
There is a different milk catalogue having distinct price range as per the quality of milk.
Everyday more than 20 million liters of milk is collected from the villages through specially
designed tankers under low temperature and sent to designated areas.
Strict quality measures ensure only the best quality of milk is used to make butter. Many Amul
village level societies are ISO certified.
Veterinary services are provided to all the farms at the local level to keep the cattle healthy and
maintain good hygiene conditions.
Milk samples are taken from each tanker and analysed for quality parameters. Once the quality is
approved, the lab sends the signals to unload the milk.
At rained staff connects the tankers to milk pumping stations and then milk is stored for further
processing.
Now milk is sent for pre-treatment at the butter plant section which handles 3 million liters daily
and is monitored from a controlled room through computers.
First milk goes through a bacteria removal clarifier,a separator, and then to a pasteurizer. Here
cream and bacteria are removed from the milk.
The milk is processed through automated filtration that prevents the milk from uninvited bacterias
and impurities
Plant technicians keep monitoring the whole process round the clock.
The pasteurized cream is matured in cream storage tanks for 8 hours at 14 degrees.This maturation
process is known as ripening.
This ripened cream is sent to a cream standardization tank from where the cream is sent to achurner
at a temperature of 6-14 degrees centigrade at 1000-1100 rpm which separates the butter grains
and butter milk.
These grains are further washed at 4-5 degrees centigrade at 60- 70 rpm.
Then the butter is sent for further processing to the blender and is mixed with the required quantity
of salt.
The sample is taken for testing. As soon as the lab communicates the results to the control room,
butter is made ready for further delivery for packing.
Amul uses 100 gm, 500 gm packs, and 10 gm blister pack and butter paper rolls for packing the
butter.
Amul has effectively managed both upstream and downstream partners in establishing one of the
most complex supply chains across the globe. The producers bring milk to the village cooperatives
(foot/bicycle), which is then transported to the unions by specialised trucks. From the union’s
production facility, milk is transported to wholesale distributors who then transport the milk to
retailers in specialised trucks.

All of these processes are outsourced to third party logistics and retail partners to ensure efficient
execution. A stringent verification process and guarantees for the safety of the milk products are
required from channel members before they are on-boarded to the network.

To the wholesalers and retailers, Amul offers reasonable margins on a high volume good. It offers
support in demand prediction, reducing the potential bullwhip effects that might arise from
inexperienced sales partners. It also offers easy repayment programs for capital investments in
infrastructure (freezers etc) by the retailers.