Internship Report on

Departmental Overview at AMUL – The Taste of India

Prepared By

Isha Jani -91900425132

Yashvi Gadhiya - 91900425124

Under the Guidance of

Prof.Megha Joshi

Assistant Professor

A Report Submitted to

Marwadi University in Partial Fulfillment of the Requirements for the BBA(HONS) Program
at Faculty of Liberal Studies

June, 2021

MARWADI UNIVERSITY

Rajkot-Morbi Road, At & Po. Gauridad,

Rajkot-360003, Gujarat, India.

Marwadi University, Rajkot Page 1

Marwadi University, Rajkot Page 2
 STUDENT DECLARATION
I hereby declare that this Internship Report titled Departmental overview at Amul- The Taste of India submitted
by Isha and Yashvi to the Faculty of Liberal Studies, Marwadi University is a bonafide work undertaken by me
and it is not submitted to any other University or Institution for the award of any degree diploma / certificate or
published any time before.

Date: 19th June, 2021

Place: Rajkot Signature of the Student

Isha Jani – 91900425132

Yashvi Gadhiya – 91900425124

Marwadi University, Rajkot Page 3

 PREFACE
To survive in the market one should have practical as well as theoretical knowledge about all
different fields existing in the market We are in 21st century, Competition at various levels is
increasing day by day, new and new development are taking place these days in all fields all over
India to make the life of people more comfortable and luxurious.

If theoretical knowledge aspects are planned in a better way give accurate results, so
theoretical knowledge should be supplemented by practical experience . For holding a student after
his college study, the knowledge that one has gained that should be imparted practically. So training
is the only way to achieve such expectations.

For this we have chosen AMUL one of the most reputed and fast growing company. This
company is in business of production of various products.

So as a student of BBA(HONS) I got this opportunity to learn and practice this aspects of
theory. I have tried to collect all the necessary information and tried to prepare this report with the
best knowledge and ability.

Marwadi University, Rajkot Page 4

Marwadi University, Rajkot Page 5
 ACKNOWLEDGEMENT

With immense pleasure , I would like to thank Marwadi University for letting me go through such an enriching
experience.

I would like to express my gratitude to all those who gave me the encouragement to complete this project . My
sincere and deepest thanks to our dean Dr.Sunil Kumar Jakhoria. Also I would thank our HOD Prof. Paras
Rughani , Project Head Prof. Prasanta Chatterjee Biswas and Project Guide Prof. Megha Joshi who helped us a
lot through out the project .

We are grateful to Mr Rupinder Singh Sodhi chairman at Amul for allowing us to undergo our project work and
providing valuable suggestions and guiding us in our efforts at Amul . We are also thankful to other staff
members of Amul .

Marwadi University, Rajkot Page 6

 EXECUTIVE SUMMARY

This is the internship report based on internship program that we had completed at Amul as
a requirement of BBA (HONS) program, Marwadi University. As being completely new to
practical, corporate world this internship gave us some amount of experience all the time.
Nevertheless they were all useful for our career.

As we are in such tough time and critical situations like covid-19 we were not allowed to
visit the company and work as an intern over there. But to gather the information, we have various
sources to learn the whole process of the company.

The team of Amul is completely organized and well reputed and helped us in all the aspects
to gather information for the same.

Marwadi University, Rajkot Page 7

 TABLE OF CONTENT

Sr. No. Particular Page No.

1 Introduction and History of Company 9

2 Vision & Mission of Company 14

3 Organization Structure 15

4 Departmental Study 17

•Marketing Department 18

•Finance department 19

•Human Resource Department 22

•Prodution Department 25

5 SWOT Analysis 27

6 Overview of industry & major players

7 Porters Five Force

8 Learning form Internship

9 Conclusion

10 Bibliography

Marwadi University, Rajkot Page 8

 INTRODUCTION
AMUL
The Flavour of India, a brandname so distinctively Indian is a part of our own lives for almost five years now
and still can touch a chord inside our hearts. As a brand AMUL has grown from being merely a differentiating
factor to safeguard the passions of manufacturers and consumers. AMUL encouraged 'Operation Flood' and
heralded the 'White Revolution' in India. It commenced with two village cooperatives and 250 liters of dairy
per day, nothing but ooze set alongside the flood it is becoming today. AMUL distributes over a million liters
of dairy per day, it also gathers and functions various milk products, during the top, on behalf of more than a
thousand village separately owned by half a million farmer users. AMUL too has become a icon of the
aspirations of an incredible number of farmers.

AMUL sprung from the seeds sown in the black ground of CHAROTAR, an area in the KAIRA area of Gujarat,
as a cooperative motion to empower the milk suppliers. At that time POLSON Dairy was the largest buyer of
the dairy being stated in KAIRA. Polson was built based on providing superior quality products to up-market
consumers. However Polson's products weren't the reason why that resulted in the surge of AMUL, it was its
exploitative methods that started out the cooperative revolution. For quite some time the KAIRA cooperative
supplied milk and allied products without a formal circulation network leave alone a brand. The name Amul
was most probably suggested by a quality control expert in Anand. It was produced from "Amulya", which in
Sanskrit, Gujarati and many other Indian dialects, means priceless, and suggests matchless brilliance. The name
was brief, memorable and easily pronounced. It could also provide as an acronym for the business - the unusable
KDCMPUL (Kaira Area Cooperative Dairy Producer's Union Limited) extracted from Kaira Cooperative's
name, could be substituted by AMUL, ranking for Anand Dairy Union Limited. Even though AMUL products
have been in use in an incredible number of homes since 1946, the brand AMUL was registered only in 1957.

As AMUL is recognised as the country’s largest milk producing cooperative it has tied up with global
supermarket chain WALMART to sell its range of dairy products and have also tied up with Glaxo over the
production of baby food in India. Amul added sweet buttermilk powder, a second brand of baby food and a high
protein weaning food. It also sells its products to Nepal. Now India is looking to capture neighbourhood markets
like Pakistan, Bangladesh etc. These countries import over 50,000 tonnes of milk each annually & Sri Lanka is
flooded with an Indonesian brand, which is said to be of an inferior quality and also costs less. These countries
import tonnes of milk every year. AMUL’S Indian desserts are very well liked in countries like Singapore and
Malaysia. Amul has list of products marketed to various countries few of its products are Amul butter, Amul
cooking butter, Amul cheese spread, Amul pizza cheese, Amul shrikhand, Amul fresh cream, Amul fat milk,
Amul pure ghee, Amulya dairy whitener, Sagar Tea and Coffee whitener, Amul butter milk, Amul ice creams
like cassata , cool candy and frostik, Amul milk chocolate and Amul Eclairs. Amul has started preparing and
selling pizza slices that prominently feature generous portions of Amul cheese. Amul’s pizza slices are being
sold through super markets and large departmental stores that have snack counters

Marwadi University, Rajkot Page 9

AMUL is considered as India’s best known local Brand across all categories. Indians prefer Dairy Ice cream
rather than frozen desserts and Amul has a wide range in the dairy ice cream segment, 35% market share in the
national Ice Cream market. Amul is biggest sourcing base for milk products in India, people are more
comfortable buying products in the Value for Money segment and Amul is well present in this division. Amul
has built up a terrifying image as a brand in which generations of customers have placed their trust, coming to
pricing strategy Amul is the price warrior and currently has a very wide range of products to offer for all price
points. Amul is recognized for well established distribution and delivery network for dairy products. AMUL’S
success led to the creation of similar structures of milk producers in other districts of Gujarat. They drew on
AMUL’S experience in project planning and finishing. This patter was not only followed in KAIRA district but
also in Baroda and Surat district.

In these districts, they experienced and found easy and effortless ways to adapt Amul’s game plan to their
respective areas. This led to the Creation of the National Dairy Development Board with the clear mandate of
replicating the ‘Anand pattern’ in other parts of the country. Initially the pattern was followed for the dairy
sector but at a later stage oilseeds, fruit and vegetables, salt, and tree sectors also benefited from it’s success.
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India’s largest food products marketing
organization. Gujarat which aims to provide remunerative returns to the farmers and serves the interest of
consumers by providing quality products. It has been awarded a “Trading House” status & has received the
APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 8 years. Amul
is in a position to manage these assets to effectively command the market leader’s position in the emerging fresh
dairy products market because of its milk processing capacity. Amul has always been a model to which other
cooperatives have looked up as an example and inspiration as well as one from which many have benefited.

Company Details

Type Cooperative society

• Food processing, FMCG

Industry
•
Founded 1946; 75 years ago
Founder Tribhuvandas Patel
Headquarters Anand, Gujarat, India
Area served Worldwide
Key people Rupinder Singh Sodhi (MD)[1]
Products Dairy
Revenue ₹38,550
crore (US$5.4 billion)[2] (2020)
Number of 1,000 (Marketing Arm)
employees 36 lakh (3.6 million) (Milk
producing members)[2]
Website amul.com
amuldairy.com

Marwadi University, Rajkot Page 10

 History

Over seven decades ago the life of a farmer in Kaira was very much like that of farmers anywhere else in India.
His income was derived almost entirely from seasonal crops. Many poor farmers faced starvation during off-
seasons. Their income from milch buffaloes was undependable. The milk marketing system was controlled by
contractors and middlemen. As milk is perishable, farmers were compelled to sell their milk for whatever they
were offered. Often they had to sell cream and ghee at a throwaway price.

They were in general illiterate. But they could see that the system under which contractors could buy their
produce at a low price and arrange to sell it at huge profits was just not fair. This became more noticeable when
the Government of Bombay started the Bombay Milk Scheme in 1945. Milk had to be transported 427
kilometers, from Anand to Bombay. This could be done only if milk was pasteurized in Anand.

After preliminary trials, the Government of Bombay entered into an agreement with Polsons Limited to supply
milk from Anand `to Bombay on a regular basis. The arrangement was highly satisfactory to all concerned –
except the farmers. The Government found it profitable; Polsons kept a good margin. Milk contractors took the
biggest cut. No one had taken the trouble to fix the price of milk to be paid to the producers. Thus under the
Bombay Milk Scheme the farmers of Kaira District were no better off ever before. They were still at the mercy
of milk contractors. They had to sell their milk at a price the contractors fixed. The discontent of the farmers
grew. They went in deputation to Sardar Patel, who had advocated farmers’ co-operatives as early as 1942.
The Government turned down the demand. The farmers called a ‘milk strike’. It lasted 15 days. Not a drop of
milk was sold to the milk merchants. No milk reached Bombay from Anand, and the Bombay Milk Scheme
almost collapsed. After 15 days the milk commissioner of Bombay, an Englishman, and his deputy visited
Anand, assessed the situation and accepted the farmers’ demand.
This marked the beginning of the Kaira District Co-operative Milk Producers’ Union Limited, Anand. It was
formally registered on December 14, 1946. Its objective was to provide proper marketing facilities for the milk
producers of the district. The Union began pasteurizing milk in June 1948, for the Bombay Milk Scheme – just
a handful of farmers in two village co-operative societies producing about 250 liters a day.

An assured market proved a great incentive to the milk producers in the district. By the end of 1948, 432 farmers
had joined village societies, and the quantity of milk handled by the Union had increased to 5000 liters a day.
In the early stages, rapid growth brought in its wake serious problems. Their solution provided the stimulus for
further growth. For example, as the co-operative movement spread in the district, it was found that the Bombay
Milk Scheme could not absorb the extra milk collected by the Union in winter, when buffaloes yielded an
average of 2.5 times their summer yield. Thus by 1953, the farmer-members had no regular market for the extra
milk produced in winter. They were again forced to sell a large surplus at low rate to middlemen.

Marwadi University, Rajkot Page 11

1964 was the turning point in the history of dairy development programme in India. Late Shri Lal Bahadur
Shastri, the then Prime Minister of India who visited Anand on 31s October for inauguration of Amul’s Cattle
Feed Plant, having spent a night with farmers of Kaira and experiencing the success wished and expressed to
Mr Kurien, then the General Manager of Amul that replicating Amul model through out our country will bring
a great change in the socio-economic conditions of the people. In order to bring this dream into reality, 1965
The National Dairy Development Board (NDDB) was established at Anand and by 1969-70 NDDB came out
with the dairy development programme for India popularly known as “Operation Flood” or “White Revolution”.
The Operation Flood programme, even today, stands to be the largest dairy development programme ever drawn
in the world. This saw Amul as model and this model is often referred in the history of White Revolution as
“Anand Pattern”. Replication of “Anand Pattern” has helped India to emerge as the largest milk producing
nation in the world.

Amul meant different things to different people :

To a Milk Producer … A life enriching experience
To a Consumer … Assurance of having wholesome milk
To a Mother … A reliable source of nourishment for her child
To the Country … Rural Development and Self Reliance

Achievement:
Amul: Asia s largest dairy co-operative was created way back in1946 to make ‟ the milk producer self-reliant
and conduct milk- business with pride. Amul has always been the trend setter in bringing and adapting the most
modern technology to door steps to rural farmers.
Amul created history in following areas:
A) First self motivated and autonomous farmers‟ organization comprising of more than 5000000 marginal milk
producers of Karla District.
b) Created Dairy co-operatives at village level functioning with milk collection centers owned by them.
c) Computerized milk collection system with electronic scale and computerized accounting system.
d) The first and only organization in world to get ISO 9000 standard for its farmer‟s co-operatives.
e) First to produce milk from powder from surplus milk.
Amul is the live example of how co-operation amongst the poor marginal farmers can provide means for the
socio-economic development of the under privileged marginal farmers.
Amul in abroad:
Amul is going places. Literally. After having established its presence in China, Mauritius and Hong Kong,
Gujarat Cooperative Milk Marketing Federation (GCMMF), India s largest ‟ milk cooperative, is waiting to
flood the Japanese market. Then, GCMMF is also looking at Sri Lanka as one of its next export destinations.

Marwadi University, Rajkot Page 12

Amul products are already available on shelves across several countries, including the US, China, Australia,
West Asian countries and Africa
CURRENT PLAYERS IN THE INDUSTRY:
Amul (GCMMF, Gujarat) is the largest brand in the industry. Other regional brands (dairy co-operatives):
Aarey, Gokul, Warana (Maharashtra), Saras (Rajasthan),Verka(Punjab), Vijaya (Andhra Pradesh), Avian
(Tamil Nadu), Nandini (Karnataka), Mother Dairy (New Delhi).
Mother Dairy (Delhi) and Bangalore Dairy (Nandini brand) have tie ups with GCMMF, Anand.
Private sector dairies: JK Dairy, Heritage Foods, Indiana Dairy and Dairy Specialties.
Global Players: HLL, Britannia, Heinz, Kraft Foods, SmithKline Beecham, Nestle etc
AMUL TODAY
The Gujarat Cooperative Milk Marketing Federation (GCMMF) which markets the popular Amul brand of milk
and dairy products crosses the 2 billion dollar sales turnover mark. During the financial year 2010-11, GCMMF
registered a top line growth of 22.1%, achieving turnover of Rs 9774 crores. The results of the apex body of the
dairy cooperatives in Gujarat were declared on 21st June 2011, in the 37th Annual General Meeting of GCMMF.

Vision
The vision statement for Amul Dairy is its strategic plan for the future – it defines what and where Amul Dairy
Company wants to be in the future. The vision statement for Amul Dairy is a document identifying the goals of
Amul Dairy to facilitate its strategic, managerial, as well as general decision making processes.

Marwadi University, Rajkot Page 13

Amul’s vision is to provide more and more satisfaction to the farmers, employees and distributers.
Liberate our farmers from economic oppression and lead them to prosperity.

Amul's vision is to see an educated, talented and strong youth in a developed India of the future and thereby
contribute towards nation building. We at Amul believe that the sound education of its youth is the foundation
of every state.

Mission
The mission statement for Amul Dairy is a public document that details the values and strategic aims of Amul
Dairy. The mission statement of Amul Dairy also identifies the purpose of the organization existence,
highlighting the services and the products it offers. Further, the mission statement also identifies the
organization’s operational goals for Amul Dairy, the processes the company uses to achieve those, the target
customer groups, and the region where the company operates.

We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavor to satisfy the tasteand nutritional
requirements of the customers of the world, through excellence in marketing byour committed team. Through
co-operative networking, we are committed to offering quality products that provide best value for money.”

Dairy cooperatives of Gujarat turnover of Rs. 27000 crores by the year 2020.

To satisfy the taste and nutritional requirements of the consumers and increasing numbers of these consumers
today are to be found only at the large format stores. Hence, in order to reach these consumers, we need to form
equitable alliances with organized retail chains wherever possible.

ORGANIZATION STRUCTURE

Marwadi University, Rajkot Page 14

Co-operative is generally operated not for the profit but for the betterment of consumer and products. Their
main objective is to serve people of the society with good quality of products with as much as low price.
“Amul” is the successful co-operative sector. The brand names itself indicates how amul is separated over the
country and world. Amul is Asia’s no. 1 and 2nd in world, which is matter of proud for india.

Amul’s organization structure is divided into two types:

1] EXTERNAL ORGANIZATIONAL STRUCTURE.
2] INTERNAL ORGANIZATIONAL STRUCTURE.

External Organizational Structure

State Level Marketing Federation

District Milk Product Union Ltd.

Village Milk Product Union Ltd

Villagers

• It is organization structure that effects organization from outside.

Marwadi University, Rajkot Page 15
 • GCMMF is unit of Gujarat Milk Marketing Federation,which is a Co-operative organization.The
villagers of more than 10,000 villages of Gujarat are the bases of this structure.

• Its also provide better communication between two stages.

• The structure is Line relationship, which provides easy way to operation.

Internal Organizational Structure

• A systematic & well-defined organizational structure plays a vital role & provides accurate
information to the Top-Level Management.
• An organization structure defines a clear cut line of authorites& responsibilities among the
employees of GCMMF.
• The organization structure of AMUL is in well-arranged structure.

Board Of Directors
Chairman Mr. Rupinder Singh Sodhi
Vice Chairman Shri Vallamjibhai Humbal
Director Smt. Madhuben Parmar, Smt. Shardaben Patel,
Smt. Neetaben Solanki, Shri Ranjitbhai Patel
Representative, KDCC Bank Shri Dhirubhai Chavda
District Registrar Smt. Rinaben Patel
Managing Director Mr. Rupinder Singh Sodhi

DEPARTMENTAL STUDY

• MARKETING DEPARTMENT
Marwadi University, Rajkot Page 16
 • FINANCE DEPARTMENT
• HUMAN RESOURCE DEPARTMENT
• PRODUCTION DEPARTMENT

1.Marketing Department

Tagline of Amul:

The taste of India.

Competitive advantage in the Marketing strategy of Amul:

There are two major competitive advantages of Amul over other brands. First and foremost is the supply chain.
Because of the large numbers of dairy suppliers, Amul has a tremendous strength and reliability in its supply
chain. Hence it is able to produce such high volumes. The second competitive change is the wide product
portfolio due to which it can run Amul shoppe’s and also have its products present in retail. The product portfolio
is such that products like Butter and Ice cream are cash cows for the company.

BCG Matrix in the Marketing strategy of Amul:

When we plot the BCG matrix, Amul has certain products which are starswhereas others are cash cows. And
in fact, Amul chocolates are question marks because they have very low market share in a growing market.
Amul ice cream and Amul butter can clearly be said to be a cash cow because they have very high market share
and the market in itself is growing with the increase in population.

On the other hand, Dairy products like Milk, buttermilk, cheese, lassi, Amul cool, etc. have a lot of direct
and indirect competitionin their niche. However, when compared with the same type of product, then Amul has
a high market share. Thus, these products are stars for Amul.

Distribution strategy in the Marketing strategy of Amul:

Marwadi University, Rajkot Page 17

Like any FMCG company, Amul concentrates on breaking the bulk. It supplies in huge amounts to its C&F,
who is required to have the right arrangements to store Amul products in bulk. This C&F then transfers the
products to distributors who in turn give it to retailers. Furthermore, Amul has a direct sale team too which sells
to modern retail. Besides this, the company has exclusive Amul stores which sell all products of Amul brand.
Thus, in the marketing strategy of Amul, distribution is another strength of the brand.

Brand equity in the Marketing strategy of Amul:

Because of the excellent products, the top of the mind positioning, the fantastic distribution and supply
chain channels and finally the point of purchase branding and advertising of the Amul girl, Amul finds itself in
a very strong position where its brand equity is concerned. Amul brand is worth $3.2 billion as per the 2013
brand equity report. Furthermore, most analysts say that Amul would have touched the $4 billion mark, but the
dropping value of the rupee is what caused the difference.

Competitive analysis in the Marketing strategy of Amul:

Amul has some good competitors who have entered the market in the last decade and growing strong steadily.
Most of these ice creams entered regionally but then held on to the regional market share. Thus, even though
individually these brands might not be a worthy adversary, combined and with their total net aggregate, all of
them together are giving a very tough competition to Amul

Some of these competitors are Kwality walls ,Vadilal, Havmor, Dinshaws, Arun Ice cream, Baskin Robbins ,
London dairy and others. Many of these ice cream products have their own niche or geographic targets. Arun
ice cream is strong in the south whereas havmor and Vadilal are strong in the west.

Besides these organized players, there are many unorganised local players who also give competition to Amul
by having their own outlets and their own variants of ice cream. However, the competition in Butter and Cheese
and other dairy products is far lesser.

Market analysis in the Marketing strategy of Amul:

The FMCG market is highly competitive in nature and is known to have a combination of organized players as
well as unorganized players. Similarly, in FMCG, direct competition is equally important as indirect

Marwadi University, Rajkot Page 18

competition. For example – During winters, ice cream and cold milk products will not sell, whereas butter and
cheese will sell equally well.

But on the other hand, during summers the demand of ice cream shoots up so much so that companies are not
able to meet demands. Thus, when we analyse the market of Amul, in some cases Amul is the clear market
leader, whereas in other products it is a competitor in the market.

2.Finance Department:

Finances Managed by Amul Company:

A country like India is deep-rooted in its agriculture and cattle rearing and hence this is something that the nation
can rely on when it comes to business. The dairy industry has been responsible for India’s economic growth since
the time of independence. A name that has been majorly associated with this dairy business in the country is
AMUL or Anand Milk Union Limited. It has been a popular brand name for the milk producers of the Kaira
District Co-operative Union since 1955. It has its daily network that is spread all across Indian states as well as
abroad in central Asian countries like Bangladesh, Thailand, Indonesia, Malaysia, and Singapore. The Amul had
begun with a very little source of milk that was 250 liters and only 2 societies and in today’s world it produces
more than 15 lakh liter milk per day and has more than 1113 societies with 6 lakh plus farmer members. It has
completed its 73rd year on the 14th of December 2017.

Global Agreements:
• It has entered the markets of countries like USA, Nepal, South Africa, Kenya, Bhutan and Australia.
• Wal-Mart has agreed to sell Amul products on its shelves with the brand name being the same.
• Glaxo & Amul have tied up to produce baby food together.
If you look at the organizational structure of Amul you may notice it is a three-tier co-operative organization. The
first tier has the co-operative society of a village whose members are the milk producers. This society is managed
by thedemocratically elected 9-member managing committee.

The second tier is the district co-operative that converts the milk into mil products introduces them to the local
market and sell the surplus to the state co-operative for international and national marketing.

The third and the last tier is the state level co-operative namely, Gujarat Co-operative Milk Marketing Federation
(GCMMF). This tier takes the complete responsibility or marketing the products international and national market.

This acts as a complete mechanism that works together keeping GCMMF at the top of its pyramid and forms a
chain that involves theproduction of raw material as well as its distribution as a finished product in the buyer’s
market. The man work involved in this functioning can be accounted as 23.60 lakh primary producers of milk;
35,000 workmen at rural areas in more than 11,400 village societies; 12,000 workers in 15 dairy plants; 750
marketing professionals; 10,500 salesmen in thedistribution network and 600,000 salesmen in theretail network.

Marwadi University, Rajkot Page 19

OBJECTIVES

The management of finance of business / organization is to achieve financial objective they are like :-

To ensure that the financial discipline is maintained in the divisions.

To ensure that all expenditure is incurred with due regard to principles of financial property.

To generate cash

To know the market position

To provide a return on investment keeping

Finance department is concerned with procurement and use of funds. It main aim is to use business funds in
such a way that the earning are maximized.

FUCTIONS OF FINANCE MANAGEMENT

To give financial concurrence as per delegation of power for each proposal involving :-

Capital & Revenue expenditure

Purchase of material/ stores/ tools and other services.
Manpower requirement
Project report
Finance planning
Decision making in finance

ROLES AND RESPONSIBILITIES OF A FINANCE MANAGER IN A COMPANY

Senior leader of an organization are responsible for all aspects of its financial health. Managers are charged
with understanding the unit’s financial situation and not allowing unintended deficits to occur.
Finance managers remain accountable for the resources entrusted them, including funding, facilities and
staffing, even if they have delegated budget and accounting responsibilities to their staff.
His roles and responsibility include making decisions related to :-
1. Working capital and cash management decision.
2. Investment decision
3. Portfolio management
4. Risk management
5. Budgeting
6. Inventory management
7. Decision making

Marwadi University, Rajkot Page 20

A finance manager also acts as a mediator, well-wisher, leader etc. finance manager also control the cost of
funds has to achieve the organizational goals. These are the certain rules and responsibility of a good finance
manager.

FINANCE
MANAGER

CAPITAL ACCOUNT
TREASURER EXPENDITURE
MANAGER

MATERIAL COST
ACCOUNT ACCOUNT

3.HUMAN RESOURCE DEPARTMENT

Human resource management plays a very important role for any organization. The firm having all types of
resources like machines, materials, money, information etc. will not beSuccess in business without
effectivemanpower. Human capital is the greatest assetsof business enterprise and manpower management is
the most important and crucial job because the managing group is the heart of the company.

Marwadi University, Rajkot Page 21

Human resource department plays most important role in establishing good relation and
harmony among all.

MAJOR FUNCTION OF HUMAN RESOURCE

DEPATMENT:
1. RECRUITMENT AND SELECTION.
2. TRAINING AND DEVLOPMEN.
3. PERFORMANCE APPRAISAL.
4. SALARY AND WAGE ADMINISTION.
5. EMPLOYEE TURNOVER.
6. COMPENSATION.
7. INDUSTRIAL RELATION.
8. FACTORE ACT.
9. INDUSTRIAL DISPUTE ACT.
10. HUMAN RESOURCE INFORMATION SYSTEM.

HUMAN RESOURCE POLICYRECRUTMENT POLICY

Entry level qualification:

1. S.S.C / H.S.C Attendant Operator – Dairy (AOD) – G Gr. Worker.

Taken as apprentice under trade apprentice Act /3 yrs. Apprenticeship, then based on their
appraisal report, selected as temporary worker. After total 5yrs of work, may be selected as
G-Grade Worker.

2. Professional Qualification E/F Grade Worker (Boiler Attendant).

3. BA / B.COM / M.COM / M.A (general) MSW / MRM /MRS M.E_Biz of Gujarat

vidyapeeth and C Grade Worker similar Non – University Institutions.

4. B.Sc / M.Sc / Diploma Engineers B Grade workers. Apprenticeship Lab assistant for 1yr 3

Marwadi University, Rajkot Page 22

months for B.SC & M.SC; 1yr for Diploma Engg. Then 2/3 yrs. as trainee technician, than
based on appraisal Appointed as Technician B Grade.

5. BBA Management Trainee for 1yrs.Jr. Assistant

(a) M.SC (Agriculture) /MRS /MRM /MSW /MLW/ MBA/ B.Tech (DT ) / MCA / M.E –Biz.
(From recognized University) 1 yr. as a trainee then appointed as senior officer.
(b) Inter CA /Inter ICWA / BE 1 yr. as training period, then appointed as Dy. Sup. Deputy
Superintendent
(c) CA/ICWA
Superintendent
NO training period, direct appointment. However, in case of fresh recruitment of candidates
with exceptional qualification form reputed Institutions such as IIM/IIT/IRMA o Central
Institution, consideration for appointment to Higher Grade be given due weightage,
notwithstanding the above minimal requirements.

Selection
Selection procedure is concerned with securing relevant information about the applicant. The
main objective of selection process is to determine whether an applicant meets the
qualification for a specific job and choose the application that is most likely to perform well
in the job. The Selection process in AMUL is as under
• Vacancy in any department
• Approval from M.D
• Advertisement
• Collection of application
• Securitize the application
• Interview
• Medical check-ups
• Selection
After selection, the employees generally have probation period. In AMUL probation period is
different for different type of employees. Probation period for officers is 12 months, 6 months
for clerical employees and 3 months for workers.
TRAINING AND DEVELOPMENT
Definition: It is a subsystem of an organization. It ensures that randomness is reduced and
learning or behavioural change takes place in structured format.
Training is the process where the work related knowledge, skills and attitude are given to new
employees. By which they aware the policies rules and increase technical and manual
efficiency and create of responsibility.
Marwadi University, Rajkot Page 23
AMUL has accepted three methods for the training.
TRAINING PROCEDURE IN AMUL
Identification of need of Training
↓
Module Preparation
↓
Selection of Employee for the Training
↓
Training
↓
Feedback
AMUL HAS ACCEPTED THE 4 METODS OF TRAINING
1. On the job method
2. Off the job method
3. In house training
4. Out house training

4.PRODUCTION DEPARTMENT

Marwadi University, Rajkot Page 24

“Production management is refers to the process of correction of past mistakes catching up with the new
techniques, taking up steps with developing techniques and taking measures for the production of goods at
competitive cost.”
The basic philosophy of production management is to launch a frontal attack on direct costs and effective use
the availability manpower weaving new techniques in to the whole to keep theproduction unit efficient and
developing production management is the process of planning, organizing, directing and controlling.
The Amul is started with only 250 liters of milk per day. But now Amul collect average 9
lakhs of liters milk per day. At the initialstage, Amul has not any problem regarding milk, but in the winter
season there was excess supply of milk. So, Amul has to sell out that excess milk at the low price or Amul
hastofaceloss. To removingthese problems Amul take decision to set up
a plant to process the surplus milk butter and milk powder.
The Amul has three plants Known as Amul 1, 2 & 3 all three plant work 24hours a day continuously. The all
manufacturingprocessis done automatically. The production is done in the special machines. These machines
and the technology are import-id from the TRFTA PEAK Company. There is also facility of chilling of milk,
so that the milk remains usable.
Three plant of AMUL perform different functions:
AMUL–1 Presently it is use as a go down for storing raw materials.

AMUL–2 In this unit, the production processof Ghee and packing's are running.

AMUL–3 This unit is producing AMUL butter, spray power, and flavored milk.

Milk Collection Cycle:

The success of each and every dairy industry is the getting the milk from the farmers andmaking that milk in
use as soon as possiblebefore that milk get spoiled because the milk isthe perishable product. For the smooth
runningthe business of dairy industry the industrymust concentrate on the milk collection cycle.
Amul dairy is very conscious about the milkcollection cycle because the base of thesuccess of the Amul is milk
collection cycle.
Production capacity of Amul:
Butter 50 to 60 Tones.

Powder plant 70 tones.

Marwadi University, Rajkot Page 25

 Powder plant 60 tones.

Flavour milk 40000 bottles.

Amul – 2 Raw Reception Dock:

Reception dock is the very first department of any dairy where milk is unloaded andsimultaneously tested.
Amul-2 has a welldesigned RMRD, situated in the west wingof dairy. Raw milk at Amul- 2 is received mainly
through cans. There are 2 receptionlines for unloading milk cans in Amul – 2.
About 60 % of reception is of buffalo milkand remaining 40% is cow milk.
Butter section:
The utterly Butterly Delicious butter of the Amul is one of the most popular product of Amul dairy along with
the famous butter girl. The butter section is located in Amul-3which manufactures Table Butter, white butter
and renducedsalt butter. The section is completely computer controlled and is equipped with most modern
imported equipments.Butter section very important as it handles fat, which is the costliest constituent. The cream
obtained from process
section is fully utilized for butter making. Amul white and table Butter is exported to USA and various Middle
Eastern countries.

SWOT Analysis of Amul

The following is the SWOT analysis of Amul:

Marwadi University, Rajkot Page 26

 Amul’s Strengths – Internal Strategic Factors

1. Exceptional Growth – Amul has seen exceptional growth in the past seven years. The company continues its
adaptive and evolutionary mechanism as it has done for decades. India has placed many investments in its dairy
industry, and the company has justified its position. Currently, the company is setting its sight to achieve record
growth with its INR 50,000 crores target in 2020.
2. Large Production Capacity – Amul is a brand managed by the GCMMF (Gujarat Co-operative Milk
Marketing Federation Ltd), a cooperative body that provides about 17.7 million liters of milk per day. Its
production capacity led the GCMMF to join the ranks of the top dairy organizations in the world. In Sept of
2018, Amul was ranked at the 9th position according to the survey of the IFCN (International Farm Comparison
Network).
3. Market Leader – Amul has positioned itself as the market leader in India because of the organized ice cream
sector which has a 1/3rd market share in the country. The ice cream sector is expected to grow by 30% in the
coming years, whereas its flavored milk and cheese products have been forecasted to grow above 20%.
4. Brand Recall and Equity – Amul has become the favorite for many Indians because of its genius Amul baby
campaign that evokes beauty and emotion on every occasion. It has cemented Amul’s brand recognition
especially when it comes to brand recall and equity. There are only a handful of milk-based brands available
that have the same public image like Amul in India.
5. Best Quality – Amul has been entrusted with a strong and loyal customer base owing to its standard persistent
quality production. Amul has maintained its operation with adequate transparency for decades forming a good
relationship with the government and the health department. The appraisal from such entities over its products
has only added to its credibility and customer retention.
6. Huge Customer Base – Amul has the amazing quality of transcending the urban demographic and reaching the
rural areas. This allows it to have distinctive leverage over its competition as it expands its consumer base and
maintains a presence in every corner of the country.

Amul’s Weaknesses – Internal Strategic Factors.

1. Lawsuits – The brand faced an internal crisis after it chose to advertise its products by disparaging its rival
competitors. This promotion did not go unnoticed by one of its competitors HUL (Hindustan Unilever Limited)
which filed a lawsuit against the dairy company and took it to court. HUL won its lawsuit at the Bombay High
Court in 2017 and demanded that Amul should stop its condescending advertising immediately. It has tarnished
Amul’s image as an elitist, utilizing arrogant and unfair methods to beat its competition.
2. Operational Cost – The operational cost for Amul is enormous thanks to its massive structure. This becomes
a liability for the company as Amul experiences multiple pricing changes and is dependent on its farming unions
and community whose needs are growing every day. Amul does not have an effective mechanism in place to
face these challenges which is risky given the unpredictability of supply.

Marwadi University, Rajkot Page 27

3. Portfolio Expansion – Amul has diversified its dairy products variety, but it has not experienced similar success
in its other productions. The best example is its chocolate products that have not reached the same level of
success as its ice creams. Amul’s portfolio expansion is crucial for its brand image.

Amul’s Opportunities – External Strategic Factors.

1. Per Capital Milk Consumption – Amul can increase its per capita milk consumption which is generally 97
liters per year, much lower than that of countries like the USA or the EU. The demand for milk products
continues to grow, and Amul has enough resources to capitalize on this demand.
2. International Markets – Amul has the capacity to explore its reach in the international markets. It can access
more Asian markets from neighboring countries to other regions and operate accordingly. Its international
exports will increase their margins and turnovers rapidly.
3. Chocolate Production – Amul can invest generously in its chocolate production and thrive in the chocolate
selling business. With adequate advertising, it can become its greatest

Amul’s Threats– External Strategic Factors

1. Increasing Competition – Amul increasingly faces fierce competition in the Ice Cream sector. More and more
companies and brands both local and foreign are invading its markets and overtaking its sales. Competitors like
Kwality Walls, Mother Dairy, Baskin Robbins, London dairy, and Havmor are a few names that directly threaten
its business.
2. Negative Media Coverage – Negative media coverage has not been beneficial for Amul’s operations. It has
affected its sales and forced them to issue statements garnering unwanted media attention.

Marwadi University, Rajkot Page 28

Conclusion

The SWOT analysis of Amul makes it clear that it stands victorious and emerges as a winner at all fronts. A
national pride for its citizens, Amul has to take the plunge and retain confidence in expanding in the global
markets. With sufficient advertising and promotions, Amul can achieve worldwide success.

Marwadi University, Rajkot Page 29