1

A
PROJECT REPORT
ON

COMPANY VISIT
AT

SUBMITTED TO

V.M. PATEL COLLEGE OF MANAGEMENT

STUDIES
GANPAT VIDYANAGAR, KHERVA

In partial fulfillment of the requirement for the

F.Y B.B.A programme

For the year

2006-07

SUBMITTED BY

RANGREG SHEHNAZ S.
FY BBA –„D‟
ROLL NO –: “246”
 2

V.M PATEL COLLEGE OF MANAGEMENT STUDIES,

GANPAT VIDYANAGAR,
KHERVA

CERTIFICATE

This is to certify that MISS RANGREJ SHEHNAZ.

Student of F.Y.B.B.A, Class: - „D‟, Roll No: -„246‟, has
satisfactority completed his Project report on company
visit for the year 2006-07.

Date: -

Place: - GANPAT VIDYANAGAR, KHERVA.

Project in Charge: -

Principal: -
 3

PREFACE

This project report has been prepared as a part of curriculum of the

first year B.B.A programme. Here we are required to do an INDUSTRIAL
VISIT of a particular company and prepare a project report on the same in
the subject so called „Growth and structure of industries‟. This blend of
practical studies with theory makes study more interesting and full of
knowledgeable information. We have visited an AMUL PVT. LTD and I
have prepared a project report on the same.

The purpose behind industrial visit and preparation of project report is

to study the particular company from the view point of its history and
development and functional departments like production department,
marketing department, human resource department and financial department.

The project report starts with the background and general

information of the AMUL PVT. LTD and consists of information regarding
its functional departments like production department, marketing
department, human resource department and financial department.

RANGREJ SHEHNAZ

Ganpat Vidyanagar, kherva.

 4

ACKNOWLEDGEMANT

It was indeed an opportunity for me to visit industrial unit and

prepared project report on the same during F.Y.B.B.A. programme. During
the industrial visit and preparation of this project report, I have got lots of
knowledge of many aspects of laminates industrial functioning of Touch
laminates company its different department and many more.

Preparation of such kind of report which is fully based on secondary

data requires lots of searching and collecting of data from many sources like
company personnel, internet, books, and course other people. During the
preparation of this project report I have taken helps from many people and
without their help to prepare this kind of report was very difficult for me. I
am very much thankful to them all for their help.

I would like to express our gratitude to Mr. Krishnarajsinh M.

chudasma (principal) and other faculty member of the college, for arranging
the industrial visit and their guidance and help in preparation of this project
report. And at last but not least, we are thankful to our friends.

RANGERJ SHEHNAZ
 5

INDEX

1 Preface
2 Acknowledgement

3 General information

3.1 Company profile

3.2 Company bio-data
3.3 History & development
3.4 Management body
3.5 Awards
3.6 Products
3.7 Certificates
3.8 Information about GCMMF

4 Production department

4.1 Products
4.2 Information regarding products
4.3 Competition
4.4 Production process
4.5 How it operates
4.6 Timely delivery
4.7 Packing process
4.8 Capacity
4.9 Milking process

5 Marketing department
 6

5.1 Introduction
5.2 Structure
5.3 This is amul India
5.4 Competitors
5.5 Marketing channel
5.6 The marketing process
5.7 Amul parlour
5.8 Consumers

6 H.R. department

6.1 Intoeduction
6.2 Recruitment
6.3 Selection
6.4 Induction
6.5 Training & development
6.6 Promotion
6.7 Transfer
6.8 Wages and salary
6.9 Overtime work
6.10 Working of ESI schme
6.11 Providand fund
6.12 Grievance handling procedure
6.13 Collective bargining
6.14 Trade union

7 Finance department

7.1 Balance sheet

 7
8 Conclusion
9 Bibliography
 8

V.M.PATEL COLLEGE OF MANAGEMENT STUDIES

GANPAT UNIVERSITY, KHERVA
 9

COMPANY PROFILE:-

See our Company Profile

About Us

We are pleased to introduce our organization Gujarat Co-operative

Milk Marketing Federation Ltd (GCMMF) as India‟s largest food
products marketing rganization with annual sales turnover of Rs.2881
crores (US $ 650 million). We manufacture and market a wide range of
dairy products in India and abroad under the brand names of Amul and
Sagar. GCMMF has 19 affiliated dairy plants with a total milk handling
capacity of 6.7 million liters per day. The total milk drying capacity is 510
MT per day. GCMMF is also the largest exporter of dairy products from
India.

We manufacture and market a wide range of dairy products in India

and abroad under the brand names of Amul and Sagar. The product
categories are Infant Milk Food, Skimmed Milk Powder, Full Cream Milk
Powder, Dairy Whitener, Table Butter, Cheddar Cheese, Mozzarella
Cheese, Emmental Cheese, Cheese Spreads, Gouda cheese, Ghee,
Sweetened Condensed Milk, Chocolates, Malted Milk Food, Blended
Breadspreads, Fresh milk, UHT (Long life) Milk, Ice-ream and ethnic
Indian sweets. Each of our products is a market leader in India.

GCMMF is the largest exporter of dairy products from India. We

export our products in consumer packs and bulk to USA, Singapore, UAE,
Australia, Bahrain, Qatar, Oman, Kuwait, Bangladesh, Madagascar,
Yemen, Sri Lanka etc. On a regular basis. We have won 9 awards
consecutively from APEDA, Govt of India
 10

COMPANY BIO-DATA

Amul India (Gujarat Co-operative Milk Marketing

Company Name:
Federation Ltd.)

Country/Territory: India

Address: Amul dairy road, Anand, Gujarat, India

Infant Milk Food, Skimmed Milk

Powder,Butter,Cheese
(Cheddar,Mozzarella,Emmental,Gouda),Cheese
Products/Services We
spreads,Ghee,Condensed
Offer:
Milk,Chocolates,malted milk
food,Breadspreads,fresh milk,UHT milk,Ice-
cream.

Business Type: Manufacturer

Industry Focus: Baby Food , Dairy Products , Frozen Food ,

Geographic Markets: Worldwide

No. of Employees: 501 - 1000 People

Annual Sales Range

Above US$100 Million
(USD):

Certificates: APEDA, Govt of India. Awards

Year Established: 1973

Legal
B M Vyas
Representative/CEO:
 11

HISTORY & DEVELOPMENT

Operation Flood, a programme that Dr Verghese Kurien implemented

as chairman of the National dairy Development Board in three phases over a
26-year span, created a flood of milk, which eventually led to India
becoming the world's largest milk producer, overtaking the US in 1998.

Dr Kurien made innovative use of a World Bank loan, EEC food aid
and the internal resources of NDDB to usher in the White Revolution. It was
an experiment immortalised by noted filmmaker Shyam Benegal in Manthan
(the churning) and one, which Dr Kurien himself put down in black and
white as An Unfinished Dream.

Operation Flood: phase 1

During the 1970's, dairy products were piling up as a major surplus in

Europe, a phenomenon in which Dr Kurien saw both a threat and an
opportunity. In the event of these surpluses being dumped in India at rock
bottom prices, it would have prematurely destroyed the fledgling dairy
sector of the country.

The large quantities that India was already importing had eroded
domestic markets to the point where dairying was not viable. Kurien
ingeniously turned this double-edged sword to his advantage and
incorporated it as a golden opportunity into the Operation Flood strategy.

He deployed the European surpluses as an investment in building

India's dairy industry. In an unprecedented initiative, 126,000 mt of
skimmed milk powder and 42,000 mt. of butter oil, obtained from the EEC
countries as food aid, was utilised to finance the programme. It was for the
first time in the history of economic development that food aid was seen as
an important investment resource. Working as an anti-inflationary measure,
it provided a buffer stock to stabilize the Indian market, and was used to
 12
prime the pump of markets that would later be supplied by domestic
production.

Funds generated through sale of these commodities were used in the

development of 18 rural milksheds in 10 states and for setting up dairies in
the rural hinterlands and in Mumbai, Delhi, and Kolkata

And Chennai. This led to a 60-per cent increase in milk production,

which raised from an estimated 20-million mt in 1970 to 32-million metric
tones in 1978.

A year-round remunerative market for the milk producers was created

and the sale of milk in the major urban demand centres rose by 140 per cent.

During this phase, Operation Flood linked 18 of India's premier

milksheds with consumers in India's four major metropolitan cities: Delhi,
Mumbai, Kolkata and Chennai.

Operation Flood: phase 2

Impressed by the success of the first phase of the project, the

government of India decided to continue with dairy development through
cooperatives but on a greatly expanded scale. Operation Flood II, which
began in 1981, aimed at building a National Milk Grid linking 136 rural
milksheds in 22 Indian states and the centrally-administered Union
territories with the urban demand centres in the country and creating the
infrastructure required to support a viable dairy industry.

The second phase of the programme was implemented with a World

Bank credit of $150 million and commodity assistance from EEC (216,584
mt of SMP, 62, 402 mt of butter oil and 16577 mt of butter) and Rs280.87
crore which NDDB raised out of its own resources during 1985 to 1987.

According to a World Bank audit, of the Rs200 crore that it invested

in Operation Flood II, the net return into the rural economy has been a
 13
whopping Rs24, 000 crore per year over a period of 10 years, or a total of
Rs240, 000 crore in all. No other major development program has matched
this input-output ratio.

Operation Flood's Phase II (1981-85) increased the milksheds from 18 to

136; 290 urban markets expanded the outlets for milk. By the end of 1985, a
self-sustaining system of 43,000 village cooperatives covering 4.25-million
milk producers had become a reality.
Project year to 140,000 tons by 1989, all of the increase coming from dairies
set up under Operation Flood. In this way EEC gifts and World Bank loan
helped to promote self-reliance. Direct marketing of milk by producers'
cooperatives increased by several million liters a day.

The seed capital rose from the sale of WFP / EEC gift products and
World Bank loan had created, by end 1985, a self-sustaining system of
43,000 village cooperatives covering 4.25-million milk producers.

Operation Flood: phase 3

The third phase of Operation Flood, undertaken from 1987 to 1996

aimed at consolidating the gains of the earlier phases. The main focus of the
programme was on achieving financial viability of the milk unions/ state
federations and adopting the salient institutional characteristics of the Amul
Pattern or Amul Model Cooperatives.

This phase of the programme was funded by a World Bank credit of

$365 million, Rs222.6 crore of food-aid (75,000 mt of milk powder and
25,000 mt of butter / butter oil) by the EEC and Rs207.6 crore by NDDB's
own resources. At the end of May 1995, Rs1, 578 crore had been invested
under the three phases of Operation.
 14
MANAGEMENT BODY

 CHAIRMAN

Shri Ramsinh Parmar

 VICE-CHAIRMAN

Shri Gordhanbhai Ashabhai Patel

 DIRECTORS

 Shri Shivabhai Mahijibhai Parmar

 Shri Maganbhai Gokulbhai Patel
 Shri Navinbhai Ranchodbhai Patel
 Shri Pravinsinh Fulsinh Solanki
 Shri Pravinbhai Maganbhai Patel
 Shri Bhaijibhai Amrsinh Zala
 Shri Raijibhai Devjibhai Parmar
 Smt. Madhuben Dhamasinh Parmar
 Smt. Saraben Bharatbhai Patel
 Shri Rajitbhai Kantibhai Patel
 Shri B.M. Vyas
 District registar

 MANAGING DIRECTOR

Shri Rahul Kumar

 15

 BANKERS

 The Kaira District Central Co-op. Bank Ltd.

 State Bank Of India
 UTI Bank Ltd.
 Bank Of Baroda
 Corporation Bank
 Bank Of Maharastra

 AUDITORS

Special Auditors (Milk)

Milk Audit Office,

Anand.
 16

AWARDS

Ramakrishna Bajaj National Qality Award-2003

The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as

the top scorer in the service category of the prestigious IMC Ramkrishna
Bajaj National Quality Award - 2003. The Certificate of Merit was presented
at a glittering ceremony held at Mumbai on March 11 by the Governor of the
Reserve Bank of India, Dr. Y. V. Reddy.

According to Shri B. M. Vyas, Managing Director, GCMMF, this

recognition has once again reiterated GCMMF's commitment to quality and
excellence. The biggest strength of GCMMF is the trust it has created in the
minds of consumers regarding the quality of its products. GCMMF and its
brand Amul stand for guaranteed purity for whatever products it produces,
he added.

GCMMF has bagged this award for adopting noteworthy quality

management practices for logistics and procurement. Over the years, it has
established an efficient supply chain that penetrates even the remotest
corners of the country. The information systems of the Federation are
comprehensive and include details on product quality, delivery performance,
supplier quality, disaster recovery and all essential commercial areas, the
citation reads.

The Ramakrishna Bajaj National Quality Award is based on framework and

principles almost similar to the Malcolm Baldrige Award that is given by the
 17
President of the United States to businesses - manufacturing and service,
small and large - and to education and healthcare organizations that apply
and are judged to be outstanding in seven areas: leadership, strategic
planning, customer and market focus, information and analysis, human
resource focus, process management, and business results.

Mr. B M Vyas receives the Qimpro Gold Standard Award

Qimpro Platinum Standard, the highest individual honour, has in

recent years been awarded to Chandra Mohan, Aditya Birla, Deepak Parekh,
F C Kohli, Dr J Irani, Azim Premji, and Kumar Mangalam BirlaA. Qimpro
Awards are recognized by the ASQ and the Institute of Quality Assurance,
UK.
 18

PRODUCT
AMUL means "priceless" in Sanskrit. The brand name "Amul," from
the Sanskrit "Amoolya," was suggested by a quality control expert in Anand.
Variants, all meaning "priceless", are found in several Indian languages.
Amul products have been in use in millions of homes since 1946. Amul
Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul
Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and
Amulya have made Amul a leading food brand in India. (Turnover: Rs.
37.74 billion in 2005-06). Today Amul is a symbol of many things. Of high-
quality products sold at reasonable prices. Of the genesis of a vast co-
operative network. Of the triumph of indigenous technology. Of the
marketing savvy of a farmers' organisation. And of a proven model for dairy
development.
 19

CERTIFICATES

 Ramakrishna Bajaj National Quality Award-2003

 INTERNATIONAL CIO 100 AWARD FOR RESOURCEFULNESS

Rajiv Gandhi National Quality Award - 1999

chive this goal, company has almost renovated its plan and is planning to
meet FDA (USA), MCA (UK) and TGA (AUSTRALIA) standards. The
organization started its production with tablet, liquid capsules and powder
and ORS department. Now the organization is expanding and
commissioning
 20

Kaira District Co-operative Milk Producers' Union Limited

the 'Anand Pattern' of Development

The mighty Ganges when it sets out on its long and winding journey
is but a tiny stream in the Gangotri ranges of the Himalayas. So too is the
story of AMUL which inspired the 'Operation Flood' and heralded the White
Revolution in this land. It began with two village co-operatives and 250
litres of milk per day -- anything but a trickle compared to the flood it has
become today. Today AMUL collects processes and distributes over 9 lakh
litres of milk per day during the peak on behalf of 962 village co-operatives
owned by 5.42 lakh farmer members. Further, as Ganga-ma carries the
aspirations of generations for moksha, so too AMUL has become the sign
and symbol of the aspirations of millions of farmers, and the pattern of
liberation and self-reliance for every farmer.

What makes this saga so remarkable? What is so unique about it that

it is made a pattern and model for similar endeavors by farmers elsewhere?
An awareness among the farmers that grew and matured into a protest
movement and the determination to liberate themselves: this is the origin of
AMUL.

Over four decades ago, the life of a farmer in Kheda District was very
much like that of his counterpart anywhere else in India. His income was
derived almost entirely from seasonal crops. The income from milch
buffaloes was undependable. The milk marketing system was controlled by
private traders and middlemen. As milk is perishable, farmers were
compelled to sell milk for whatever they were offered.

Often, they had to sell cream and ghee at throwaway prices. In this
situation, the one who gained was the private trader. Gradually, the
realization dawned on the farmers that the exploitation by the trader could be
 21
checked only if they marketed their milk through their own organization.
This realization is what led to the establishment of the Kheda District Co-
operative Milk Producers' Union Limited (popularly known as AMUL)
which was formally registered on December 14, 1946.

The Kheda Union began pasteurizing milk for the Bombay Milk
Scheme in June 1948. An assured market proved a great incentive to the
milk producers of the district. By the end of 1948, more than 400 farmers
joined in more village societies, and the quantity of milk handled by the
Union increased from 250 to 5000 litres a day. In the early years, AMUL
had to face a number of problems. The response to these provided stimulus
for further growth. For example, as the movement spread in the district, it
was found that the Bombay Milk Scheme could not absorb the extra milk
collected by the Kheda Union in winter, when the production on an average
was 2.5 times more than in the summer. Thus, even by 1953, the farmer-
members had no assured market for the extra milk produced in winter. They
were again forced to sell a large surplus at low rates to the middlemen .

The remedy was to set up a plant to process milk into products like
butter and milk powder. A Rs. 5 million plant to manufacture milk powder
and butter was completed in 1955. In 1958, the factory was expanded to
manufacture sweetened condensed milk. Two years later, a new wing was
added for the manufacture of 2500 tons of roller-dried baby food and 600
tons of cheese per year, the former based on a formula developed with the
assistance of Central Food Technological Research Institute (CFTRI),
Mysore.

It was the first time anywhere in the world that cheese or baby food
was made from buffalo milk on a large, commercial scale. Another
milestone was the completion of a project to manufacture balanced cattle
feed. The plant was donated by OXFAM under the Freedom From Hunger
Campaign of the FAO. To meet the requirement of milk powder for the
Defense, the Kheda Union was asked by the Government of India in 1963 to
set-up additional milk drying capacity.
 22

A new dairy capable of producing 40 tons of milk powder and 20 tons

of butter a day was speedily completed. It was declared open in 1965. The
Mogar Complex where high protein weaning food, chocolate and malted
food are being made was another initiative by AMUL to ensure that while it
fulfilled the social responsibility to meet the demand for liquid milk, its
members were not deprived of the benefits to be had from the sale of high
value-added products. The Mogar complex also started manufacturing
Amullite a substitute for butter in 1994. Amul has also set up a new Dairy
Plant to handle 6.5 lakh liters per day with facilities to produce 60 tonnes of
powder and 70 tonnes of butter in a highly automated plant. It has recently
set up a 20 MT Cheese plant at Khatraj near Memdabad.

Impressive though its growth, the unique feature of the AMUL sagas
did not lie in the extensive use of modern technology, nor the range of its
products, nor even the rapid inroads it made into the market for dairy
products. The essence of the AMUL story lies in the breakthrough it
achieved in modernising the subsistence economy of a sector by organising
the rural producers in the area.

True, traditionally dairying was a subsidiary occupation of the farmers

of Kheda. However, the contribution to the farmer's income was not as
prominent as his attachment to dairying as a tradition handed down from one
generation to the next. Low milk yield of animals maintained on the by-
products of the farm, together with lack of facilities to market even the little
produced, turned the decision to invest in scientific practice of animal
husbandry and nutrition, decidedly irrational; the return on the investment as
well as the prospects of being able to market the product looked very bleak
indeed.
 23

Since its inception, the Kheda Union also believed that the responsibility to
collect the marketable surplus of milk should be coupled with the provision
of making the production enhancement inputs reach the members. The
Kheda Union has thus a full-fledged machinery to provide animal health
care and breeding facilities. As early as late fifties, the Union started making
high quality buffalo semen and the artificial insemination service available
to the rural animal population through the village society workers. The
Union started its mobile veterinary services to render animal health care at
the door steps of the farmers. Probably for the first time in the country, the
veterinary first aid service was made available in the villages through trained
village-society workers.

The Union's 16 mobile veterinary dispensaries have fully qualified staff. All
the villages are visited bi-monthly on a pre-determined day, to provide
animal health care. A 24-hour Emergency Service is also available at a fee
(Rs.35 for members and Rs.100 for non-members). All the mobile veterinary
vans are equipped with Radio Telephones.

The Union runs a semen production centre where it maintains high

pedigreed Surti buffalo bulls, Holstein Fresian bulls, Jersey bulls and 50 per
cent cross-bred bulls to cater to the need of semen for artificial breeding of
buffaloes and cows belonging to the farmer members of the district.
Artificial insemination service has become very popular and effective
because it regulates the frequency of calving in cows and buffaloes and thus
reduces their dry period. A balanced feed concentrate is manufactured in the
Union's Cattle Feed Plant and sold to the members through the societies at
cost price.

The system succeeded mainly because it provides an assured market at

remunerative prices for producers' milk, besides acting as a channel to
market the production enhancement package; and does not disturb the agro-
system of the farmers. It also enables the consumer an access to high quality
milk and milk products. Contrary to the traditional system, when the profit
of the business was cornered by the middlemen, the system ensured that the
 24
profit goes to the participants for their socio-economic upliftment and
common good. The Union looks after policy formulation, processing and
marketing of milk and provision of technical inputs to enhance milk yield of
animals: artificial insemination service, veterinary care, better feeds and the
like, all through the village societies.

The village society also facilitates the implementation of various production

enhancement, and member education programmes undertaken by the Union.
The staff of the village societies has been trained to undertake the veterinary
first-aid and the artificial insemination activities on their own.

The significance of the Kheda experiment

A system, which involves participation of people on such a large
magnitude, does not confine itself to an isolated sector. The ripples of its
turbulence affect other areas of the society as well. So is true with this co-
operative. It has not confined itself to milk alone. The co-operatives in the
villages of Kheda are contributing to various desirable social changes such
as:

 The yearly elections to the management committee and its chairman

by the members are making the participants aware of their rights and
the process to elect right men for right jobs.
 Perpetuating the voluntary mix of the various ethnic and social groups
twice-a-day for common cause and mutual betterment has resulted in
eroding many social disequilibria: high-low, rich-poor, and the elites-
marginalized all seem to co-operate for a common cause.
 Live exposure to various modern technologies and their application in
day-to-day life has not only made them aware of these developments
but also made it easier for them to adopt them for their betterment.
One might wonder whether the population that knows almost
everything about impregnating a cow or buffalo, through their
knowledge of artificial insemination, is also equally aware of the
similar process in the humans and work towards planning it.
 More than 900 village co-operatives have created jobs for nearly 5000
people in their own villages -- without disturbing the socio-agro
system -- and thereby the exodus from the rural areas has been
arrested to a greater extent.
 25
 The income from milk has contributed to their household economy.
Besides, women, who are the major participants, now have a say in
the home economy.

Independent studies by various individuals and institutions have shown

that as high as 48 per cent of the income of the rural household in Kheda
District is being derived from dairying. Since dairying is a subsidiary
occupation for the majority of the rural population, such incomes are helping
these people not only to liberate themselves from the strangleholds of
poverty but also to elevate their social status.

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 execution. Thus the 'Anand Pattern' was not created in Kheda
district but in Mehsana, Sabarkantha, Banaskatha, Baroda and Surat districts,
where even before the Dairy Board of India was born, farmers and their
leaders carried out empirical tests of the hypotheses that explained AMUL's
success. In these districts, milk producers and their leaders experienced
significant commonalties and found easy and effort-less ways to replicate
AMUL's success in 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 in the dairy sector but
at a later stage in oilseeds, fruit and vegetables, salt, and tree sectors.

Looking back on the path traversed by AMUL, the following features

make it a pattern and model for emulation elsewhere. AMUL has been able
to:

 produce an appropriate blend of the policy makers farmers board of

management and the professionals: each group appreciating its roles
and limitations;
 bring at the command of the rural milk producers the best of the
technology and harness its fruit for betterment;
 provide a support system to the milk producers without disturbing
their agro-economic systems;
 plough back the profits, by prudent use of men, material and
machines, in the rural sector for the common good and betterment of
the member producers; and
 26
 Even though, growing with time and on scale, it has remained with the
smallest producer members. In that sense, AMUL is an example par
excellence, of an intervention for rural change.

 Dr. V. Kurien, the then Chairman, National Dairy Development Board

(NDDB), Anand and the erstwhile Indian Dairy Corporation (IDC)
conceived the idea of establishing an institute for training rural
managers in the context of Operation Flood. Dr. Kurien was
convinced, on the basis of his experience as the Chief Executive
Officer of the Kaira District Co-operative Milk Producers‟ Union
Ltd., popularly known as AMUL, that professional management of
co-operatives being established all over the country under Operation
Flood was essential to their success. He also realized fairly early on
that management graduates trained at Indian Institutes of Management
and other schools would not fit the bill. He was a Member of the
Board of Governors of the Indian Institute of Management,
Ahmedabad (IIMA) and had approached Prof. Ravi J Matthai, the
then Director, IIMA, and its Board to see whether IIMA would
consider training rural managers for Operation Flood Projects. He was
told that IIMA graduates would not fit the bill. This was when he
resolved to establish a new institution for this rather unique task. The
rest is history.

Operation Flood II had provided Rs 50 lakhsa for manpower

development. IDC was the funding body and NDDB the implementing
agency. NDDB established a Centre for Management and Consultancy in
Rural Development in 1979. This Centre was the precursor of the Institute of
Rural Management, Anand (IRMA). Dr. Kamla Chowdhry, formerly a
professor at IIMA and an adviser to the Ford Foundation, New Delhi in
1979, suggested to Dr. Kurien in a brief document that this Centre should
become a full-fledged, independent, national institute for it to do justice to
the task at hand. NDDB accepted this proposal in principle and mounted a
search for personnel to start and run the proposed institute.

Dr. Shreekant Sambrani, at that time the Chief of Research Bureau of

the Economic Times, Mumbai, and formerly professor at IIMA, was the first
person to be invited to join the proposed institute as a Senior Professor. A
Management Committee under the chairmanship of Dr. Kamla Chowdhry,
with Mr G M Jhalaa, Managing Director of IDC, and Shri VC Sood of
 27
NDDB as members and Dr. Sambrani as the Member-Secretary (the
operating head of the Institute) were constituted. The Committee, through
the Chairman and the Member-Secretary, was responsible for completing the
substantive tasks as well as formalities leading to the establishment of the
Institute. This was in July 1979. The target date to select the first batch of
students was July 1980. The funds provided for manpower development
under Operation Flood II became the seed money for the Institute. The core
IRMA personnel occupied a few small offices in the administrative block of
NDDB. The first tasks were Identification of a suitable location for the
Institute, recruitment of faculty, programme design, student intake, and
numerous formalities connected with establishing a new institute.

As the staff strength increased, larger office space became necessary. The
Diagnostic Laboratory Complex of NDDB had just been completed across
the road from its main campus. NDDB graciously delayed its plans for its
use and offered it to the Institute instead. This remained the Institute‟s home
until its own campus was ready.

The Institute of Rural Management, Anand Society was registered

under the Societies Registration Act, 1860, and the Bombay Public Trusts
Act, 1950, on December 14, 1979. This became the Institute‟s formal
Foundation Day, although it had begun functioning some five months
earlier. The faculty, mostly new to the teaching profession, plunged into the
task of preparing curricula, teaching materials and mastering pedagogical
methods with rare energy and gusto. New case studies based on co-
operatives were prepared with a great deal of encouragement from the
organizations themselves. The admissions process, comprising a
competitive examination and personal interviews, was modeled after similar
procedures used by IIMS, although the faculty tried to consciously inject a
pronounced “rural bias” in the test materials and interview questions.

The admissions announcement evoked a good response from more

than 2,000 applicants. The admission process was completed by April 1980.
The first batch of 54 (later reduced to 48 due to various reasons) entered the
Institute on June 30, 1980, right on schedule. It was in the fitness of things
that the late Mr. Tribhuvandas Patel, the Founder-Chairman of Amul,
welcomed the first batch of students to the Institute. The students were
housed in the Farmers‟ Hostel of NDDB.
 28
An intensive orientation programme, which took the incoming batch
in small groups to live in villages and around Anand in the first week, was
the innovative feature of the Institute. This created not only an appreciation
of the rural reality among the largely urban students, but also a sense of
belonging and commitment to the rural organisations they were later to
serve.

The Institute had identified a 24-ha. Plot of land adjoining the main
NDDB campus, which was then a part of the tobacco research farm of the
Gujarat Agriculture University as the most suitable one for its own campus,
after considering several alternative sites, including one next to the
Hindustan Packaging plant at Itola. The Government of Gujarat agreed to
donate it to the Institute. The Institute took possession of it in early 1981,
with the entire population of students and staff planting trees on it. Mr.
Achyut Kanvinde took up the task of designing a unique campus.

In the meanwhile, Dr. Kurien had met officials of the Swiss

Development Cooperation (SDC) during a scheduled visit to Berne,
Switzerland. The SDC officials took an interest in the proposed Institute and
agreed, in principle, to provide financial support to it. A proposal seeking a
grant of 15.4 million Swiss francs was submitted to the Government of
India. The late Mr. N Rajgopal, the then Joint Secretary, Department of
Agriculture and Cooperation, Ministry of Agriculture, ensured that the
government approved the proposal just days before the then Prime Minister,
Mrs. Indira Gandhi delivered the first IRMA Convocation Address in
February 1982.

With the generous Swiss grant, the IRMA campus construction work
progressed rapidly, with the Engineering Division of NDDB supervising it.
The work was over in a short time of just two years. The entire IRMA
community moved into the new campus in June 1983.

IRMA initially confined its activities to conducting the Post-graduate

Programme in Rural management (PRM), meant to train young persons to
take up managerial jobs with rural co-operatives then being established
under Operation Flood and the Oilseeds Project of NDDB. The design of the
programme was unique. To begin with, it was compressed to one year, and
involved a back-and-forth interaction between the field and the classroom.
Before the first year was over, however, IRMA faculty extended the duration
to two years in consultation with the student body, to allow an even greater
 29
role for field modules, which accounted for 40 per cent of the total time, and
some more courses. The PRM curriculum was novel in several other
respects as well. It had specially designed courses such as rural
environment, economics of development, rural markets, rural marketing and
farmers‟ organizations, which are not part of a conventional MBA
programme. While the faculty was acutely aware of the need to create fresh
teaching materials and made strenuous efforts to do so, time constraints
meant a fair amount of borrowing from IIMA initially. A number of early
faculty had strong IIMA links.

Despite the fact that IRMA was established to train managers for the
co-operative sector, it was not called the Institute of Co-operative
Management. Implicit in this was the recognition that the new institution
must concern itself with all rural activities, and not just those of formally
registered co-operatives. This foresight was amply rewarded when, even in
its early years, a variety of rural organizations – co-operatives, NGOs,
government and business entities – began to make demands on IRMA. The
IRMA Board, always protective of its autonomy even as it acknowledged
NDDB‟s patronage, warmly welcomed all of them, except private
companies, into IRMA‟s fold. While private business could seek the
services of over 400 business schools in India, there was but one Institute,
IRMA, to serve co-operatives, NGOs and people‟s organizations. Therefore,
it was important that IRMA directed its energies to this grossly under-
managed sector. The Institute remained focused on strengthening
management of people-centered organizations – those controlled by users of
their services – rather than in capital-centered ones – those controlled by
capital suppliers. This is how IRMA‟s identity began to emerge. The core
IRMA operating philosophy continues to be the promotion of a partnership
between rural producers and committed professional managers as the basis
for sustainable development and social justice in rural India.
 30

V.M.PATEL COLLEGE OF MANAGEMENT STUDIES

GANPAT UNIVERSITY
 31
PRPRODUCTS:-
A new injects able unit, ointment department and hormone
department and natural product unit.

The production department undertakes the work of processing the raw

materials and converting them into different products. The production
forecast is done based on the sales forecast and that is depended on current
market situation, the demand etc.

The production target is usually divided weekly, daily etc.

PRODUCTS:-

Amul Products are being exported to the Gulf since last three decades.
Undoubtedly, Amul is the preferred taste for Indians in the Gulf!

The following Amul Products are available in the Gulf markets.

Amul / Sagar Pure Amul Cheese

Ghee Spreads
1 kg tin 400 Tin, 200 g slices

Amul Shrikhand Amul Butter

500 g Mango, Kesar, Elaichi 100 g, 500 g
& Badam Pista

Amul Mithaee Gulab

Jamuns
500 g Tin
 32

Welcome to 'Kanan Dairy' for information on your favorite Amul

Products. We bring you fresh products throughout the year through more
than 1000 ethnic grocery stores around USA.
 33
COMPETITION

As far as this point is concerned dairy industry was kept reserve for
corporative sector only. So there is no competition and competitors, but after
the policy liberalization the doors of private dairies were open and in
competition the following dairies came.

COMPETITORS PRODUCTS
1 Powders Nestle
2 Milk Gayatri
Uttam
Royal
Payal
Sardar
3 Chocolate Nestle
Nutrine
Cadburys
4 Ice cream Vadilal
Gocool
Halmor
5 Cheese Britannia

6 Ghee -
 34

We are pleased to introduce our organization Gujarat Co-operative

Milk Marketing Federation Ltd (GCMMF) as India's largest food products
marketing organisation with annual sales turnover of Rs.2881 crores (US $
650 million). We manufacture and market a wide range of dairy products in
India and abroad under the brand names of Amul and Sagar. GCMMF has
19 affiliated dairy plants with a total milk handling capacity of 6.7 million
litres per day. The total milk drying capacity is 510 MT per day. GCMMF is
also the largest exporter of dairy products from India.

We manufacture and market a wide range of dairy products in India

and abroad under the brand names of Amul and Sagar. The product
categories are Infant Milk Food, Skimmed Milk Powder, Full Cream Milk
Powder, Dairy Whitener, Table Butter, Cheddar Cheese, Mozzarella Cheese,
Emmental Cheese, Cheese Spreads, Gouda cheese, Ghee, Sweetened
Condensed Milk, Chocolates, Malted Milk Food, Blended Breadspreads,
Fresh milk, UHT (Long life) Milk, Ice-ream and ethnic Indian sweets. Each
of our products is a market leader in India.

GCMMF is the largest exporter of dairy products from India. We

export our products in consumer packs and bulk to USA, Singapore, UAE,
Australia, Bahrain, Qatar, Oman, Kuwait, Bangladesh, Madagascar, Yemen,
Sri Lanka etc. On a regular basis. We have won 9 awards consecutively from
APEDA, Govt of

India report Part 1: dairy giant walking barefoot

Tiny Brouwers

Published: April 11, 2006

• Each year some 615 billion kg milk is produced world wide,

almost 15% of which is produced in India.
• with production running at 92 billion kg per annum India is the
world‟s largest milk producer.
 35
But India is a dairy giant walking barefoot. That is evident from this
report on India‟s dairy farming and dairy industries. In this enormous
country with more than one billion inhabitants, milk is produced from north
to south, but primarily in the country‟s west. Much of the production is
transported to the major population centres in the country‟s interior and east.

Rising production

Pankaj Karna, Corporate Finance director of Rabo India Finance,

paints a picture of the Indian dairy sector in short, sharp lines.

„Production is expected to increase this dairy year to 96 billion kg. At

a national level, 57% of the production consists of buffalo milk and 43% of
cow‟s milk. Each year buffalo milk production rises by 4% and just cow‟s
milk by just 1.2%. One of the reasons for this is that the Indian buffalo herd
is expanding by 1.2% per annum, while the dairy cow herd is decreasing by
an average of 1% per year – due in part to the droughts in 2002 and 2004.
And, moreover, Indian buffaloes produce more milk than the cows.‟

Karna describes India‟s unique system of milk production and milk

collection; there‟s nothing like it anywhere else in the world. No fewer than
70 million households are involved in the production of milk. These are
mainly small and even marginal cattle farmers, but also labourers without
land, who have at most two dairy cows or buffaloes, tethered near their
homes.

Of these 70 million households, 11 million can be characterised as

cattle farmers. These are dairy cattle farmers with an average of two cows or
buffaloes producing between 10 and 12 litres of milk per day. They are
organised into no fewer than 110,000 village dairy co-operatives or Dairy
Co-operative Societies (DCSs). These co-operatives set up across India
following the Anand Model (read more about the Anand model here>>),
collect the milk from their dairy farmers and cool it at 4-6 degrees Celsius.
Some of this unpasteurised milk they sell to the village residents. The rest is
collected by the travelling Milk Collectors, who take the milk to the co-
operative Milk Unions for processing. This industry is organised on a state
by state basis. This approach connects the predominately small dairy farmers
via their co-operative system directly with the many hundreds of big cities in
India. India also has various rivately owned dairy companies. They procure
 36
their milk from both milk collection centres in the villages and, in the north-
west in particular, from milk traders. These traders are responsible for the
quality of the milk they supply. The state of Maharashtra is a case apart
because milk production there is subsidised by the government and the
government is responsible for the milk collection. The state pays the dairy
farmers a higher price than is paid by the state‟s processing industry.

65% unpasteurised

Of India‟s total milk production, no less than 65% is consumed

unpasteurised. Of this percentage, 44% is consumed in the rural area in
which it is produced, meeting the needs of cattle farmers and their families
and sold, through the village co-operatives, to others with no cows or
buffalo. The remaining 21% of the unpasteurised milk is sold to urban
consumers. Of the 35% of the milk production that is pasteurised, 22% is
processed by the unorganised dairy sector. Most of this milk is used to make
sweets. This is done in „halwai‟, workshops that are usually located beside a
shop. Here, sweetened condensed milk, whith various additives is produced
in accordance with the region‟s traditions, religion and flavours. In India‟s
predominately tropical and subtropical temperatures sweets like chocolate
are highly perishable. Thanks to the rich culture of festivities, the
consumption of condensed milk sweets, which are usually eaten fresh and
are also perishable, has surged. This means that only 13% of the Indian milk
procurement is processed in the co-operative and privately owned dairy
industry. „The majority of this, 8% of the total milk procurement, is
processed into packaged or loose pasteurized drinking milk for consumers in
the major cities,‟ says Karna. „The other 5% is used to make products with
added value, such as milk powder, ghee, ice cream, cheese and fresh milk
products.‟

Consumption outstripping production

Finally, he admits that the consumption of milk and dairy products in

India is outstripping domestic production. Consumer demand for dairy
products like drinking milk, condensed milk, baby food, ghee, butter and ice
cream, is estimated to be worth EUR 13.54 billion. This demand grew by an
average of 7.6% per year between 1996 and 2002. Despite this growth, the
average availability of milk per capita of the population in India is no more
than 229 gram per day. And that is clearly below the world average for per
 37
capita consumption, says Pankay Karna, which stands at 285 gram per day.
Moreover, the quality of Indian milk is not particularly high. „We can
establish the content of the milk‟s fat and other standard constituents. But we
have no infrastructure of laboratories to study any other aspects of t

Store:-

The store keeper estimate as to what has to be ordered based on the

production forecast, existing stock level and the normal consumption pattern
which can be worked out from the stock card.

The goods is used according to the FIFO system (First in first out)
.The raw material is checked, weighed and or counted after it is unloaded.
The expiry date of the raw materials is also checked by the store keeper
while unloading.

Quality Control:-

The quality control is a crucial area for this organization especially since
it is a food industry and the product‟s expiry period is also limited .

There are three major steps/checking:

 The first quality inspection is carried out in the laboratory when the
raw materials are brought-in.
 The second stage quality check is undertaken when the goods are in
process. Including the taste, color, amount of raw material used,
temperature, weighing etc.
 The third stage is after the packing is completed where the method of
packing is checked against the set standard.
 This system is applied for each and every products line of the Mother
Dairy.
 38
Machinery:-
Most of the machineries are imported mainly from Italy & Japan.

The daily production planning is done based on the rated capacity of

machines/lines with the required men so as to achieve the maximum
efficiency in production.

 Report is taken from each machine.

 There are four lines for powder, two for bitter.
 The machinery is upgraded with change in technology.
 Most of those are automatic.
 The estimated cost of the machineries is around Rs. 75 crores.

We had carried out a thorough study on the powder processing line and
learned that only 100 employees were required per line.

Packing:-
Packing process is completed by means of semi automatic as well as
automatic packaging line.

The primary packing is done in pouches, tins, etc. While secondary

packaging is done in cartons and bags etc.

The products are weighed according to liters and grams.

Finished Goods Store:-

After the goods are packed they are sore in dry place at cool temperature.

Proper care is taken of the room.

The goods are dispatched from her

 39
HOW IT OPERATES……….?

Packaging Materials:
For packaging they use plastic cover as well as tins. The materials are
kept in stock according to the forecasting done by the purchase department
which is arrived at after taking into consideration the sales forecast of
marketing department.

Spare parts for machineries:

Breakdown Spare parts of machineries are kept in order that less time
is wasted if any occurs due to wear and tear of the parts.

Transportation:-
The purchase Department also organizes the transportation of the raw
materials purchased.
 40
Timely Delivery:-
The department checks that they get the required materials at the
correct time in order to keep a smooth production process/flow.

Milk procurement in AMUL DAIRY is done initially from village people

& further the channel can be explained by following chart.

Milk Producers

Village Co-operative milk society

District Co-operative milk producer’s union ltd.

Gujarat Co-operative milk marketing federation.

 41
Packing process:

Stitching ------- coding ------- Fixing

Packing is aimed at impressing the buyers through colorful attractive
and eye caching of the product. The importance of packing has increased
considerable in the area of marketing recent years. Packing means all the
activities involved in designing and predicting the container or wrapper for a
product.

There are separate department for packing of the entire product. For
example shrikhand is packed in 10 G.M. & 500 G.M. polypropylene cups,
under the brad name “Amul”

Product Specification:
Meets BIS specification No.IS:2785
 42
Capacity of Amul Dairy

Capacity of Amul Dairy for the production of milk and milk products
as under.
1. Milk handling: 10 lacks litter per day
a. Liquid milk packing: 04 lacks litter per day
b. Powder MED capacity: 60 thousand liters per day
c. Ghee MED capacity: 60 thousand liters per day
d. Ice-Cream Med Capacity: 10kilos litters per day
2. UHT (ultra hit treated) packing: 25 kilos litters per day
a. Ice-cream: Cups, Party pack, Bulk pouch
 43

MILKING PROCESS

Step: 1 the person in all districts deposits the milk at the village center
by electronic measurement

Step: 2 from there it is taken to the chilling center. There are in all five
chilling center.

Step: 3 the collected milk is tested against the set standards. The
quality of milk done here payment is done on the basis of quality and
fat content.

Step: 4 the received milk is sold locally as well as transported to the

dairy for further processing.

Step: 5 the milk tested in the lag. No compromise is done with the
quality of milk being received.

Step: 6 the quality milk is received at the raw milk receiving Dock at
dairy.
 44
Step: 7 after unloading the next step is to undertake the can cleaning
process before it is returned as cleanliness is necessary for better
quality.

Step: 8 from here the milk is pasteurized, clarified and standardized

using latest technological machines is and equipments.

Step: 9 after the process is over the milk is again tested once it is
cleared than it is packed. The packing system is automatic and packs
18 pouches per minute.

Step: 10 the next step pouch filing for the need users is done.

Step: 11 after the milk is packed the milk are stored in a well-
maintained cold storage.

Step: 12 from here the milk are dispatched for the sales in the
market.
Company is producing and marketing its products for various medical
specialties like Gynecologists, Physicians, Orthopadicians and other. The
product profit of the company includes Antibiotics, multivitamins, Anti-
allergic, Antheleminitic and Natural products
 45

V.M.PATEL COLLEGE OF MANAGEMENT STUDIES

GANPAT UNIVERSITY, KHERVA
 46

INTRODUCTION
The concepts of market are very important. Marketing is a
comprehensive learn. It includes primary resources such as human resources,
finance & management as well as a set of activities in order to direct the flow
of goods & services from producer to consumer in the process of exchange &
distribution.

Marketing may be defined as the process of exchange between seller &

buyer. It involves a number of inter related activities designed to plan
promote, distribute & price a product or service in order to meet the wants &
needs of both the parties in exchange.

Marketing is the “Creating & delivery of standard of living to the

society” A total system of interacting the business activities designed to
plan, price promote & distribute want satisfying products & servicer to
present & potential customers.

According to the committee of American marketing association.

Marketing consist of performance of business activity that direct the flow of
good and services from producers or supplier to the consumer and users.
 47

CHANNEL OF DISTRIBUTION

Most producer do not sale their good directly to the final users. But
they sale their product by keeping marketing intermediaries performs
various type of functions and bearing various names. It means most producer
work with marketing intermediaries to bring their producers to market. The
marketing intermediaries made up a marketing channel.

Marketing channels are sets of inter dependent organization involved

in the process of making a product of service available for use or
consumption.

As Amul Dairy in milk selling is not able to distribute and sale the milk
on its own, it is taking the help of intermediary, which known in bringing the
product and its tital closer to the final buyers constitute a channel level.
Amul Dairy distributes channels graphical representation is as follows.

Amul Dairy

GCMMF

Area Depot
 48
Distributors

Retailers

Consumers
 49
MARKETING PROCESS

Marketing of Amul‟s Product is done by G.C.M.M.F Ltd.

90% of Amul Product are marketed by federation except for liquid
milk.

Before establishment of G.C.M.M.F dairy marked the product directly,

this lead too many problems. Thus the Gujarat Co-Operative milk
marketing federation areas established in 1972 for marketing the dairies
of Gujarat. (total 12 Dairies).
All the function of marketing like advertising, budget, marketing
research, price for product etc. G.C.M.M.F. It sent montly market
requirements date to the dairies & according to this another concerned
dairies will work..
Daily the amount of production of Amul like Cheese, Butter, Milk,
Powder, Chocolate etc. are sent to the commercial department through
production department. This data is very useful to the Amul dispatch
orders, which is sent to the federation dispatch order. It involves quality
of good when the goods are to be sent price signal executive etc.
There dispatch order are sent to concerned state by programme
committee & under committee member different persons are included
line member of Amul.
Through federation Amul get fixed percentage of commission on
each production. Federation selling function done through 33 sales
officers in all India & 250 persons are working on this sales office.
 50
DIFFERENCE BETWEEN MARKETING AND SELLING

MARKETING SELLING

Process Promotion Selling follows production.

Marketing is consumer
oriented
In market the trust is on the
Needs of the consumers
Selling is production
oriented
In selling, the trust is on
Immediate need of the
seller.

MARKETING STRUCTURE OF ORGANISATION

CHAIRMAN

MANAGER (ADM & COM)

MARKETING MANAGER

SALES SUPERVISOR

SALESMEN ASSISTANT CLERK

 51
This ritual began 51 years age, is today observed twice a day in
10,000 villages. Their only factor that decides who a stand first is who
come first.

“Not class, not caste, not religion”

This is Amul’s India

Marketing behind a very important measure for the profit making of
the company, is taken care by company. Market of the company exceed
from Ahmedabad to up countries. The brands of liquid milk marketed
the market are Amul Tazza, Amul ShaktiA & Amul Gold.
Arrangement of marketing of milk powder, ice creams are made by
GCMMF , Anand . There are about 40 depots owned by GCMMF spread
all over the countries for second 109 dispatches. Business of supplying
value added products proceed & packed under hygienic condition.
The company is also spreading consumer award ness through
education visits, booklets, leaflets, e-mail & advertisement in various
media. There by identifying the need of consumer & consumer oriented
production & services. Amul dairy is constant touch with Marketing for
the known about product. Amul Dairy markets are national & international.
In international market north, south, east & west. In north side countries
demanding for the milk products, in south side countries demanding for the
milk products, in east side countries demanding for milk powder, and in
west side countries demanding for the liquid milk.
 52
International markets are Singapore & other out side countries Amul
dairy have competitors like, in chocolate, nestle & Cadburys in powders
nestle,
in ice cream vadilal, in cheese Britannia, in Ghee they haven‟t competitors
because Ghee is traditional products.
 53
COMPETITORS
Amul dairy has many competitors in their different products.

COMPETITORS OF AMUL
PRODUCT OF AMUL DAIRY
DAIRY
Powder Nestle
Chocolate Nestle, Nutrient, Cadburys
Ice cream Vadilal, Go cool, Havemore
Cheese Britannia
They haven‟t competitors because
Ghee Ghee is traditional products.

Hygienic condition for the marketing, points can be included.

1. Price determination
2. Target market
3. Distribution of finished goods
4. Promotional measures
5. Market standing
6. Competitions
Amul dairy markets most if its products with the help of its marketing
intermediaries but some of the products are marketed directly.

Supplier Marketing intermediaries Enduser

Supplier Enduser
 54
Amul dairy uses the help of media in marketing its products. It gives
advertisement in the newspapers & in the television which to increase
demand of its products.

The process of marketing.:-

1. Analyzing market opportunities
2. Selecting target markets
3. Developing the marketing mix
4. Managing the marketing effort
 55
AMUL PARLOUR

now in days Amul is selling its own products in the Amul parlor
operated indirectly by Amul dairy.
 56

V.M.PATEL COLLEGE OF MANAGEMENT STUDIES

GANPAT UNIVERSITY KHERVA
 57

INTRODUCTION

During our visit in Amul Dairy,I found that there is a separate

department for human resources development i.e personnel department
which performs the function like personnel administrator, wage & salary
administration, staffing, tranning, motivation, industrial relation recruitment
and selection, personnel records and personnel audit.

Thus we can say that thought giving full guidance, advice,motivation,

etc to the employee and increasing their morale.Amul dairy has achieved its
short term goals promptly and built the structure for long time objective.
Due to the efficiency and competency of HRD manger ,there has been no
strike in Amul Dairy, right its establishment and employees are promptly
satisfied with the job, which has been offered to him.
 58
RECRUITMENT & SELECTION

RECRUITMENT

It forms the first stage in the process, which continuous with

selection causes with the placement of the candidates recruitment is the
discovering of potential applications.

There are 3 method of reenactment.

1. Direct
2. Indirect
3. Third Party Method
Amul has adopted direct method of recruitment
In Amul 4 types of Recruitment.

1. Graded Skill:
In this type of recruitments employees are recruited two ways
under graded skill firstly well qualified & experienced persons are
considered secondly fresh graduate from well know institute like I.R.M.A,
TATA etc. are considered.

2.Recruitment Under Union Scheme:

This scheme is owned schemed of Amul according to this scheme
M.L.W, M.R.M.D, D.C.A, M.B.A Candidates are recruited as
management trainee candidates is 1 year & stipend Rs.1500 per month
,for engineering training period is 1 year & stipend Rs. 2000 per month for
1st year is Rs.1200 ,2nd year
Rs 1500 & 3rd year Rs.1500.

3.Recruitment of Temporary Workers :

Under this scheme workers are recruited temporary for 3,6,9 or 12
month they will be recruited in union scheme as trainee. Their training
period is three year if they are irregular then their training period may be
extended .
4.Recruitment Under Apprentice Act.

There are three of apprentice Act.

 59
1. Apprentice Act 1961:
Under this act 61 student from S.S.C, B.S.C, government takes
I.T.I .

2. Apprentice Act 1973:

Under this act seat are allotted for engineering ,diploma &
degree. They are given the post like technician‟s food & diary
technology etc.Per diploma student 1 year training Rs. 900 per month &
for degree holder student 1-year training stipend Rs 2000 per month.

3. Apprentice Act 1986:

Under this act Vocation al persons are consider they given post like
management trainee. Their training period is Rs 450 per month in 1
year training.
 60

SELECTION
Selection procedure of Amul is as under.

Vacancy in any Department

Direct application

Collection of application

Scritinisation of application

Interview

Medical Check up

Selection

1.Vacancy in any department :

Where there is any organization department then they collect

information through collages ,institution ,university etc .

2.Collection of application :

They collect application from post which is directly received.

They collect list from district employment exchange campus interview
etc.
 61

3.Scrutinisation of application:

After collection of application. They are studies in detail & not

suitable application are rejected & other kept for further process.

4.Interview :

Remaining applications are then called for interview in this

interview person personality ,experiences ,subject knowledge
genereral knowledge etc.Are tested Interview result declared on that
day.

5.Medical checkup:

Selected person sent for medical checkup & when person

medically fit then section is done

6.Selection :

Medical fit person gave offer letter & then person is join in a
work. In Amul probation period is different for different types of
person.

12 month for officers.

6 month for clericals.
3 month for workers
If any person is not suitable for his job then they have a write to
terminate their services also.
 62
WAGES & SALERY ADMINISTRATION

The wages are paid in cash & are also credited in the sawing &
Bank Account of the employees.Wages are deducted according to
the grade of works.Amul has A,B,C ,D,E,F grades of workers.

Following are the minimum & maximum pay scale for diffeent
categories of persons.

Payroll Systems
Pay scale Post Grade
7000 to 15000 M.D Manager
5000 to 11000 G.M Manager
3900 to 8300 A.G.M Manager
3500 to 7800 Manager Manager
2300 to 6200 Deputy Manager Manager

1800 to 5480 Supdt Officers

1550 to 5078 Dy. Supdt Officers
1300 to 5480 Sr. officers Officers

950 to 3645 Assistant Clerical

750 to 3684 Sr.Clerk Clerical
300 to 350 Grade „C‟ Workers
280 to 895 Grade „D‟ Workers

195 to 68 Grade „E‟ Workers

175 to 60 Grade „F‟ Workers

Total NO of employees are include in Amul Dairy at anand.

GRADE MANPOWER
Manager 54
Officier 209
Supervisor & clerical 8
Workers 1083
1764
 63
LABOUR WELFARE

Manpower is the lift hood of an organization.It is Property

coduct then only the organization can work Efficiently & properly.

1.Canteen Facilities :

Amul has its own Canteeen for its workwrs as welll as staff
members . All the workers of the organization get tea ,coffee,
breakfast at minimum rate Tea & coffee 40 Paise per cap>Dry fast
food Rs. Per kg.Lunch dish rs 5 per dish.

2.Medical Facilities:

Amul also provided Medical facilities to its workers.Amul has

its own medical hospital within Organization .

3.Education Facilities :

Amul is also given Education facilities to its own workers

children maximum to Rs 1000.

4.Bonuos:

Amul given bonos before Diwali to their workers & office staff
also.

5.Loan Facilities :

They given loan to workers.

6.Safety:

Amul also provide hand ,googol ,and shoes for workers safety
TRAINING & DEVELOPMENT
 64

Every organization needs to have well-trained & experienced

people to perform the activate that have to be done.

Training is or process of leaving a sequence of programmed

bahaviour .It is a system to improve the skill.

Training in Amul is done by three ways.

1.Divisional.
2.Manager proposal.
3.performance Appraisal

Training is provided to the capable & responsible person in

Amul.
Manager proposed for training is to be send to different
training institutions like IEM,IRMA etc.Employment are analyzed
about their performances to their job. Those who are selected for
training has to submit their report after completed their training.
So, young talented officer are send for training their time
period is 2 year.

PERFORMANCE APPRAISAL

The process of evaluating the performances & Qualificaton of

the employees in term of the requirement of the job for which he
employed is said to be performances appraisal system.

It is highly useful in making decision regarding various

personnel
Aspect such as promotion & merit.

Amul adopts two type of Appraisal system.

1.for Nearly joint
2.Promoters from one places to another performances
Appraisal period far trainees are one-year temporary workers.
1 ½ year Managerial & Engineers
 65
Trainer ¾ year .
workers 1 year.
Officers 3 year.
Clerical 4 supervisor 2 year.

PROMOTION AND TRANSFER POLICY

Internal movement of present employee fills many vacancies. There
movements are transfer and promotion. The former terms refer,
changes in which the pay, status & job conditions of the new
positions are approximately the same as of the old. In the case of
promotion, the new positions have higher pay, status & job conditions
as compared with the old.

Promotion
Promotion means increased in authority, responsibility, status, salary
etc. It means to do liftman of an employee with in the organization
and push in direction of top level.

The primary purpose of a promotion is to increase the effectiveness

services and profit objective, when employees are placed in position
in which whey can be most productive, change for successful result
of the organization for which they work are consolingly increased. It
should be the aim, therefore, of any company to change position of
employee as soon as their capacities increase and opportunities
warrant.

In Mother Dairy promotion policy is to take both on merit and or

seniority basic they have eloped merit aim seniority base, generally
after every seven years promotion is given to graduate and diploma
holder and who pass I.T.I. and for non-graduated and non I.T.I. and
who passed only S.S.C. then person get promotion after nine years,
“Top executives tend to choose those who are carbon copies of
them selves.”
 66

TRANSFER
Transfer means change in work, place or department etc. The
authority, responsibilities etc. may be more of less or remain the
same.

Employees are subject to transfer one department to another

department of one shift to another shift, weather local or out to station
or from one establishment to another establishment/branch/factory of
the company. However that the salary, status and responsibility of the
employees shall not be changed by such transfer.

For office the mutual transfer is there and also requirement of

person met with transfer but for workers, labour transfer is very rate in
this unit. Dairy allows only shift Hansford to workers from one shift to
another shift.

For the transfer there so no fixed policy. Transfer are made as

and when need arise or when demanded employees.

Wages and Salary

Amul Dairy normally refers to the weekly or monthly rate paid to

decrial administrative and professional employees.

For unskilled workers Rs. 45 per day, for skilled workers Rs.
3287 per month. Scale 155-359 for Sr. Mgr. Rs. 8532 scale 4100-
8050 for assi. General manager scale 3000-5625.

Overtime work

Those wants to work 5 to 6 hours more and above their they

get double are overtime of their salary.
 67
The following is the salary grade and many other allowances, which
are given to the officers and workers for Amul Dairy.

Working of EST Scheme

Employees state insurance act make provision for cash be

benefits for employees in the event of sickness and disability on
account of industrial accident. It also provider for such benefits to
dependents of industrial accident.

This is certainly a great step in the history of the industrial

worker, as he assured of something to depend upon at times of
sickness or disability.

But old age and unemployment insurance as in other

developed countries is still a dream.

It is the responsibility of the state to enact provision for the

working classes. It is also the give a lead in the matter on a voluntary
basis.

In “Amul Dairy” has followed the EST Schemes, all the factories
with 20 or more employees, that employee whose monthly basic does
not exceeds 6500 for employee 5055%, 7.25% is deposited on bank.

PROVIDENT FUND SCHEME

The employee provident fund act came into force on 1st Nov.
1952. At present it applies the companies which has 20 of more
employees. The aim of provident fund scheme is facilitate the social
security. It means for the retires life of the persons.

The employees provident fund act. Which is one of the

government social security measures, make it obligatory on the part
of certain employers for his dependents in case of his early death.
 68
The “Amul Dairy” provide 12% provident fund as per act our of
his 12% pension 8.33% is transferred into reserve provident fund.
Weather amount by this way is collected. This is benefit for the
workers.

GRIEVANCE HANDLING PROCEDURE

Grievance means complains or dissatisfaction arising among

employees due to payment, policies, promotion, overtime, leave,
work, assignment, transfer, working condition, and interpretation of
service, agreements etc. The producer of talking and sowing such
problem is known as grievance handling procedure. The grievance of
workman shall be redressed.

For the settlement of grievance there is a welfare officer in deity for

this they believe in management by working and any problem or
grievance is solved by way of justice.

The aggrieved workman in the first instance may obtain the grievance
from personnel department and submit his grievance in person in the
proscribed for to his immediate superior who would. If the finds part of
the grievance justified and part of the grievance unjustified will still
register his comments.
 69
COLLECTIVE BARGAINING

Collective bargaining is an agreement between employees and

employers, by the way its an agreement to diminish the future and
present different between both. This way can help to maintain good
relationship with other.

In the Amul Dairy if the problem arises, it can be solved by way

of meeting and the decisions made are traded as agreements.

The management may at any time, in the even of, fire

catastrophe, break down of the machinery, civil commotion, epidemic,
shortage of raw materials/quell/power etc. or accumulation of stocks
or adviser trade condition, periodical repairs, slow down or other
causes beyond the control of the management stop any machines
stop any section or department or the establishment wholly or
partially as may be considered necessary or lay off any number or
workman.

In the event of such stoppage during working hours, the

workman effected shall be notified by notices put upon the notice
board fixed near the time keeping office and at administration building
as soon as practicable and the work will be resumed and whether
they are should leave the factory and when they should leave the
factory. The workman shall not go on strike without given 15 days
notice.

TRADE UNION

“Idarnonious in industrial relations, based on freedom of

association are essential for the smooth working of process of
production”.

The above statement is the basic principle, which facilitate the

growth and development of trade unions act 1926 confess on the
workers and employers or the purpose of regulating the relations
between workman, for between employees and employers, or for
 70
imposing restrictive conditions of the conducts of any trade, or
business. And it includes any federation of two or more trade unions
The primary object of a trade union the popular sense is to protect
and advance the interest of the workers who are its member. Thus
trade union is the combination of workers to solve their problems & to
maintain cordial relation.

A trade union of person whether temporary or permanent

primarily for the purpose P.F. regulation the relation between workers
and workers. There are 1200 workers. So it is desirable to have union
of workers recognized by the death. The union raises the voice their
interest as also the union workers for improvement of the life style of
the workers through bargaining for increasing monitory benefits.

Packing Process

Stitching ------- coding ------- Fixing

Packing is aimed at impressing the buyers through colorful
attractive and eye caching of the product. The importance of packing
has increased considerable in the area of marketing recent years.
Packing means all the activities involved in designing and predicting
the container or wrapper for a product.There are separate department
for packing of the entire product. For example shrikhand is packed in
10 g.m. & 500 g.m. polypropylene cups, under the brad name “Amul”

Product Specification
Meets BIS specification No.IS:2785
 71

V.M.PATEL COLLEGE OF MANAGEMENT STUDIES

GANPAT UNIVERSITY, KHERVA
 72
BALANCE SHEET
(Of the Amul dairy on year ending 31-03-2005)

31-3-05 Assets Rs. 31-3-06 Rs.

24545.14 Gross value 25225.09

As per schedule 3 col- 5

18437.29 Less depreciation 20556.43

As per schedule 3 col- 9

6107.85 Net assets 4968.66

0.00 Capital work in progress 51.09

Investments

0.20 National saving certificates 0.18

433.40 Share investments 433.40

140.00 Fixed deposits 80.00

553.60 513.58

STOCK

6408.39 Trading stock 7989.62

1253.97 Stores 1681.64

7662.36 9671.26

Advances & Debtors

178.64 Deposits 166.96

0.13 Due from soc... 0.01

 73

237.49 Advance 552.26

8006.97 Trade debtors 6764.65

222.2 Sundry debtors 365.61

69.18 Income tax Deposits 74.50

8714.43 7923.99

Cash & Bank balance

286.39 With bank 396.57

1932.45 Deposits in bank 998.29

0.86 On hand 0.83

2219.70 1395.69

0.00 Deferred revenue expenditure 70.90

25277.94 TOTAL 24595.17

 74

Balance sheet no. 2

31-3-05 Liabilities (Rs.) 31-3-06 (Rs.)

Authorized share capital

2000.00 2000.00

1395.42 Share capital 1599.81

Reserve fund & other fund

2057.23 2154.60

Grants.

2162.34 1839.60

Redeemable dab…

1175.06 1162.93

Loans:

5330.00 UTI Bank 4290.00

500.00 UTI Bank cash credit 500.00
1000.00 Short-term loan 500.00

7330.00 5290.00

2858.10 Fixed deposits 3263.70

Current liabilities:

285.46 deposits 347.39

 75
3444.98 Due to soc… 4160.40
1049.46 Out standing again exp… 955.75
2661.84 Purchases 2989.69
491.46 Sundry creditors 438.72

7933.20 8891.59

Provisions:

0.00 Fringe benefit tax 30.00

4.67 Bad debts 9.67
2.87 Investment 2.87
25.67 Leave encashment 26.66
22.15 Decline in stocks 0.00

311.23 Net profit during the year 69.20

25277.94 Total 24595.17

 76
BALANCE SHEET (ASSETS)

Assets Gross Gross Gross Gross Depre. Depre. Depre. Depre. Net Net
block block block block block block
As on Additio Sales or As on Fund As Addi. Redu. Fund As
ns on on on
1-4-05 Transfer 31-3-06 1-4-05 Sale. 31-3-06 31-3-06 31-3-05
1 2 3 4 5 6 7 8 9 10 11
Land 200.20 0.00 0.00 200.20 0.00 0.00 0.00 0.00 200.20 200.20
Building 3096.75 64.84 0.67 3160.92 1312.55 103.72 0.67 1415.60 1745.32 1784.20
Plant 19409.23 529.11 67.78 19870.56 15923.49 1685.19 56.24 17552.44 2318.12 3485.74
Railway 3.38 0.00 0.00 3.38 3.38 0.00 0.00 3.38 0.00 0.00
Vehicles 145.72 25.95 0.00 171.22 107.87 9.36 0.00 117.23 53.99 37.40

Dead 884.22 98.78 86.51 896.49 413.73 45.66 7.29 452.10 444.39 470.49
stock
Com… 613.32 17.96 0.00 631.28 551.72 23.87 0.00 575.59 55.69 61.66
Cans 188.04 101.45 4.34 285.15 123.35 19.55 4.07 138.83 446.32 64.69
Library 1.85 0.00 0.00 1.85 1.20 0.06 0.00 1.26 0.59 0.65
Live 2.88 1.16 0.00 4.04 0.00 0.00 0.00 0.00 4.04 2.88
stock

TOTAL 24545.14 839.25 159.30 25225.09 18437.29 1887.41 68.27 20256.43 4968.66 6107.85
77
 78
CONCLUSION

Overall present position of the organization is too sound & the future seems

to be a very bright one.

This is my remember able moment to have visited in „AMUL

DAIRY ‟. The members of management are very efficient and co-operative.
The management of company has kindly provided me all the necessary
information for preparing the project report.
 79

BIBLIOGRAPHY

BOOKS:-

BOOKS: - The Amul India Story: Ruth Heredity

"So persevere, if necessary. For success attends only those who

persevere, who see their goal steadily and aim for it unswervingly... who
persevere with dedication and faith in the cause they are fighting for..."

The author, Ruth Heredia's connection with Amul dates back to the
inauguration of the Amul Dairy when, aged four, she presented a bouquet to
the guest of honour, Pandit Jawaharlal Nehru. She and her family have
sampled the taste of Amul Condensed Milk and Amul Cheese through their
various progressive stages.

Ms Heredia is an occasional writer, and sometimes lectures on her

favourite subjects: music, literature and history. She has a post graduate
degree in English, has been a librarian, loves animals (especially dogs), and
enjoys a good movie or a tennis match.

The Amul India Story is a stimulating excursion into a dream that is

now reality. Blessed with the vision of Sardar Vallabhbhai Patel, a patriot,
the book traces the birth of a small movement in Gujarat, the Kaira District
Cooperative Milk Producer's Union and its evolution into a fantastic new
paradigm of development. A fast-paced narrative, laced with several
fascinating anecdotes, the book chronicles the daring initiatives and
dynamism displayed by a team of committed individuals - a farmer,
Tribhuvandas Patel, a professional manager, V.Kurien and a technologist,
H.M.Dalaya. This is a story of faith, empowerment, and dream realization,
 80
with all the elements that make a story more interesting - passion, humour
and the thrill of anticipation..

Management Kurien Style: MV Kamath

Four decades ago, the then president of India, Dr Rajendra Prasad,

laid the foundation stone of a modern dairy, the dairy of the Kaira District
Cooperative Milk Producer's Union. Sardar Vallabhbhai Patel and Morarji
Desai provided the inspiration for the dairy, which came into existence after
a struggle against great odds. Tribhuvandas Patel, with his dedication and
integrity, was the power behind the farmer's organisation.
Varghese Kurien, then hardly 33, gave the professional management skills
and necessary thrust to the cooperative. Over the years the cooperative
prospered. Later, Prime Minister Lal Bahadur Shastri was to give further
impetus to the dairy cooperatives by inviting Dr Kurien to replicate what
came to be known as the Anand Pattern, after the township of Anand, in
Gujarat.
M.V. Kamath has told the fascinating saga of the success of first
AMUL and then Operation Flood, which was to make India a major milk
producing country, in all its complexity. It is an exciting piece of work and a
story that has never been told before, rich in anecdotes and revelations of
how India's White Revolution became possible.
M.V. KAMATH, 73, a senior columnist and commentator on a whole
range of national and international issues is an author of over 35 books on
diverse subjects such as journalism, travel, history and culture, biography,
politics and philosophy. Starting his career in journalism, after a brief stint
as a chemist, Kamath has successively worked as a reporter in the Free Press
Journal, editor of Free Press Bulletin and Bharat Jyoti, Contributing Editor
United Asia and Sunday Editor of The Times of India.
 81
A former president of the Bombay Union of Journalists, Kamath is a
founder member of the Foreign Correspondents Association, Washington
DC and has covered every important international gathering between 1953
and 1978. He retired in 1981 as editor of The Illustrated Weekly of India and
currently writes for over a dozen newspapers and journals. He is actively
connected with a number of social and public institutions in Bombay and
Karnataka and was recently nominated as member of the Executive Board of
the Manipal Academy of Higher Education.
M.V. Kamath has told the fascinating saga of the success of first
AMUL and then Operation Flood, which was to make India a major milk
producing country, in all its complexity. It is an exciting piece of work and a
story that has never been told before, rich in anecdotes and revelations of
how India's White Revolution became possible