INDUSTRY PROFILE

The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest food products marketing organisation of India. It is the apex organization of the Dairy Cooperatives of Gujarat. This State has been a pioneer in organizing dairy cooperatives and our success has not only been emulated in India but serves as a model for rest of the World. Over the last five and a half decades, Dairy Cooperatives in Gujarat have created an economic network that links more than 2.8 million village milk producers with millions of consumers in India and abroad through a cooperative system that includes 13,141 Village Dairy Cooperative Societies (VDCS) at the village level, affiliated to 13 District Cooperative Milk Producers Unions at the District level and GCMMF at the State level. These cooperatives collect on an average 7.5 million litres of milk per day from their producer members, more than 70% of whom are small, marginal farmers and landless labourers and include a sizeable population of tribal folk and people belonging to the scheduled castes. The turnover of GCMMF (AMUL) during 2008-09 was Rs. 67.11 billion. It markets the products, produced by the district milk unions in 30 dairy plants, under the renowned AMUL brand name. The combined processing capacity of these plants is 11.6 million litres per day, with four dairy plants having processing capacity in excess of 1 million Litres per day. The farmers of Gujarat own the largest state of the art dairy plant in Asia Mother Dairy, Gandhinagar, Gujarat which can handle 2.5 million litres of milk per day and process 100 MTs of milk powder daily. During the last year, 3.1 billion litres of milk was collected by Member Unions of GCMMF. Huge capacities for milk drying, product manufacture and cattle feed manufacture have been installed. All its products are manufactured under the most hygienic conditions. All dairy plants of the unions are ISO 9001-2000, ISO 22000 and HACCP certified. GCMMF (AMUL)s Total Quality Management ensures the quality of products right from the starting point (milk producer) through the value chain until it reaches the consumer.

The Gujarat Cooperative Milk Marketing Federation Ltd. cannot be viewed simply as a business enterprise. It is an institution created by the milk producers themselves to primarily safeguard their interest economically, socially as well as democratically. Business houses create profit in order to distribute it to the shareholders. In the case of GCMMF the surplus is ploughed back to farmers through the District Unions as well as the village societies. This circulation of capital with value addition within the structure not only benefits the final beneficiary the farmer but eventually contributes to the development of the village community. This is the most significant contribution the Amul Model cooperatives has made in building the Nation.

COMPANY PROFILE

AMUL INDIA LTD, Anand, Gujarat.

Company Name Address Key people

: Gujarat Cooperative Milk Marketing Federation Ltd : Anand, Gujrat, India. : Chairman, Kaira District Cooperative Milk Producers' Union Limited. (KDCMPUL).

ORGANISATION CHART OF AMUL, DISTIRCT VICE DISTRIBUTION

CHARMAN/ MANAGIN DIRECTOR

PRODUCTIO N MANAGER

HUMAN RESOURC E

PROCESSI NG MANAGER

MARKETI NG MANAGER

FINANCE MANAGE R

WORKERS

ASST MARKETIN G MANAGER SALES MAN

WORKERS

SUPERVISO RS

STAFFS

STAFFS

PRODUCT PROFILE

Consumer Packs

Amul Pure Ghee Amul Butter Amul Shrikhand Amul Mithaee Gulabjamun Nutramul Brown Beverage Amulspray Infant Milk Food Amul Cheese Amul Malai Paneer Amul UHT Milk (Long Life) Amul Fresh Cream

Bulk Packs

Amul Skimmed Milk Powder Amul Full Cream Milk Powder

PROCESSING DEPARTMENT

Plant Layout
Plant layout is the overall arrangement of the machine tools, handling equipments, storeroom and other various accessories required for facilitating production in a factory. These arrangements are pre-planned with the results that the building has been constructed to fit a layout of a given process. AMUL plant is indigenously worked out with facilitation of various production processes and production of multi products under one plant. The total plot is nearly about 2.27 kms. Separate buildings are provided with required arrangements of machine tools handling and computers connection through the control room to fit for varying product- manufacturing departments. The plant is engaged in producing milk, ice creams, milk powder and ghee. Entire department is uniquely provided with facilities for the processing each product. There are 4 production departments and packaging departments pertaining to each product respectively. Thus, plant layout encompasses all production and service facilities and provides for the most effective utilization of the men, materials and machines constituting the process. It is the master blue print of coordinating all operations. A good layout results in elimination or minimization of accidents and hazards and cost while increases the output. Thus a good layout specifically is observed to be beneficial on the following grounds:

Efforts minimization

Fewer material handling will be provided manufacturing units cost will be lover

Bottlenecking of production will be eliminated

Total item in process will be less

Specialization of operations is facilitated

Less inspection will be required

Production control will be easier to achieve

Plant investment can be held to the necessary minimum

Plant and equipment obsolescence may be less

Wastage space will be eliminated

Operating Analysis Amuls only source of raw material is Village Milk societies. Milk is brought from such village milk societies every morning and evening. This milk is then sent to the dairy plant. In the dairy plant the milk is processed i.e. it is made free from germs. Milk Processing The entire process of milk can be divided into following steps: Steps: Milk Processing Chart:

Collection of Raw-Milk Electronic Milk Test Methyline Blue Reduction Test Purchasing And Standardizing Process

Separation Process

Steps in Production Process

1.Collection of Raw Milk
Raw milk is collected from different co-operative societies of Gujarat. About 122000 liters of raw milk is collected per day. Before this milk is sent to the laboratory for testing the FAT & SNF proportion, the milk is separated from the raw milk. The milk is taken from the chilling centers to Ahmedabad with the help of trucks. After collecting the samples of milk, they are taken to the laboratory ,where two types of tests are conducted. Electronic milk test Methyline blue reduction test

Electronic Milk Test

Methyline blue reduction test

Another test, which is taken in the laboratory, is calledMethyline blue reduction test. This test is conducted for checking for how long the milk will remain fresh. To check this, 10 ml of milk is taken and 1 ml of methyline blue solution is added to it. It is then kept under water at 57-degree C. After one hour, if the solution losses its colour than it is called raw milk. If the solution remains the same even after 5 hours than it is considered as fresh milk, which remains constant for a long period of time. After laboratory gives green signal and confirming the raw milk at the reception dock is brought in to the house connected with the pump is sent to the milk processing plant. This is than chilled below 4 degree C. and then stored in milk silos. After that milk is processed which has two steps i.e. pasteurising and standardizing.

2.Pasteurising & standardizing

After collecting and checking and conducting laboratory tests, the pasteurising process is conducted. To pasteurized the milk means to kill all the germs in the milk by a particular method which was invented by a scientist called James Pasteur and so the name pasteurisation. In pasteurizing, the milk is first heated at 72 C to 76 C for 15 seconds and then it is immediately cooled below 4 C. By this method they destroy the pathogenic bacteria present in the raw milk. But if the right degree of temperature is

not provided there are chances that the milk might still contain germs. After this process some milk goes to separator machine and remaining is proportionately sent for standardization. Standardization process is known such as it bifurcates the milk in 3 categories varying according to that FAT & SNF contents. The equipment named OSTA. Auto standardization adjusts the fat directly. The computer is just ordered whether gold or standard milk is to be rationed and the same will be received with appropriate contents. Ready Milk = Pasteurised + Standardized.

3.Separation process
Separator machine separates two kinds of products, skimmed milk & cream, through channels. There are 100 disks fixed in separator machines, which revolve at 5000 rpm (revolution per minute). It is taken to the tanks, which has the capacity of 20000 litres. Whenever the milk is needed from the tank, it is tested in the laboratory and the deficit proportion fat is added by mixing cream. This process continues for 24 hours.

4 Quality Check
Pasteurized milk is sent for a quality check in the Quality Assurance laboratory of the dairy plant. Within 14 seconds FAT and SNF proportion is received regarding 30 lack litres of milk. The total investment put into the lab by the Dairy plant is of Rs. 6 crores. This laboratory only checks and analyses the powder, milk and ghee. There is a separate ice-cream analysing laboratory.

5 Packing Process
After this the milk is sent for packing to the milk packing station in the dairy plant. In the milk packaging station there are huge pipelines and behind each of them there is polyfill machine from which the material to pack milk comes out. There are 12 such polyfill machines in the packaging station from which the materials to pack milk comes out. From each of these 12 machines 100 pouches are packed in one single minute.

6.Storage
Then the milk is sent to the cold storage of the dairy where the milk is stored until it is dispatched. Here the milk is stored at temperature ranging from 5 C to 10 C, it is maintained with the help of exhaust fans having silicon chips.

About 40000 litres of milk is dispatched from the cold storage of the dairy plant everyday. The damaged pouches are kept a side and the milk is once again put to the tank.

Milk Powder
For converting milk powder first of all water content is evaporated in condensing plant. By this process they get condensed milk, it is used as a raw material. There after the milk is sent to the drying plant. The spray drying plant is huge in size with a height of 70 feet. The plant is divided into many floors to enable easy use of the plant. First of all the raw material i.e. condensed milk is put into the first floor of the plant along with air at 200 C. By this process the remaining water, which the condensed milk might have retained is also evaporated

MARKETTING DEPARTMENT

Gujarat Co-operative Milk Marketing Federation (GCMMF) GCMMF was the first co-operative to be set up under operation flood. GCMMFS dairy plant commissioned in 1994 is one of the most modern and largest plants. It can handle up to 1million litres of milk per day. The plant also has facilities for pasteurizing and packing. It was funded by NDDB. GCMMFs milk is sold under its flagship brand Amul. GCMMF was formed in 1973. As an apex marketing federation of 12 district milk unions of Gujarat to operate own marketing and distribution network in India and abroad. GCMMF sales turnover grew by 21% Rs. 15.5 billion to Rs. 18.8 billion including consignment sales of Rs. 3.7 billion sale of Amul milk in Gujarat and Maharastra increased by 11% and 16% respectively. Dairy product turnover registered a 19% growth. Amul butter registered 18% growth. The sale of Amul & Sagar Ghee increased by 47%. Amul Cheese registered 60% value growth. GCMMFs sales to the defense services were Rs.233 million during the year, were mainly to Burma, Uganda and West Africa. The company plans to expand its export markets in Saudi Arabia and other Middle East countries.

During 1999, launching it in 8 states and 2 union territories extended the Amul ice-cream brand franchise. Amul ice creams have become Indias 2nd largest brand. Recently it has commissioned a dairy at Kolkata. New products launched during the early 2000 were Amul Pizza, Cheese and Amul slice cheese, Amul paneer and Amul Mithaee range. Safal mango drink has been launched by Strategic alliance
with Safal (A union of NDDB). The product range to be launched under the Safal brand will include fruit drinks, squashes, pickles, jams, and ketchup and mango pulp. Amul ice-cream brand franchise was extended with launch in 8 states & 2 union territories. Amul ice cream has become the 2nd largest brand in the country & has garnered major share in its existing markets in a short time span of 3 years. Amuls main ice-cream manufacturing facility is located at Gandhinagar which is Asias largest and most modern integrated ice-cream manufacturing plant and uses world renewed refrigeration units and an efficient cold chain. GCMMF has become very popular because of its excellent marketing strategy. GCMMF marketing strategy is to understand the consumer needs, develop products that provide superior value at fewer prices. GCMMF has shown a tremendous commitment to the floodwater situations. GCMMF has never stopped the supply of milk and other milk products. And unlike other competitors, it has never taken wrong benefits in these kinds of situations. It has developed an excellent distribution channel to provide its products to the consumers. It has made its products available in each part of Gujarat & India.

Market Segmentation
Market segment is a very important function for the market department of the GCMMF, because the market consists of buyers different in many ways. They are different in their wants resources, locating buying practices. Because buyers have unique needs and wants, each buyer is potentially separate market.

Geographic segmentation
Under these variables, GCMMF has divided market into different geographic units such as region, states, cities etc. GCMMF sells its products by geographic segment action like in the north where production of milk is very high the sale of Amuls product is not much. But in the western region it is high. GCMMF identifies this kind of variables and deals with it.

Demographic Segmentation
Under this variable GCMMF has divided market into several segments such as age, gender, family, size, income, occupation etc. For each group GCMMF marketing strategy is different. In milk Amul targets all the class where as in the other products like butter, ghee, ice-cream etc. it targets to the middle and higher middle class.

Distribution Network
Most producers work with marketing intermediaries to bring their products to market. The marketing intermediaries make up a marketing channel also called distribution cannel. Distribution channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption. The Head Office of GCMMF is located at Anand. The entire market is divided in 5 zones. The zonal offices are located at Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai. Moreover there are 49 Depots located across the country and GCMMF caters to 13 Export markets. A zero level of channel also called a direct marketing channel consists of a manufacturer selling directly to the final customers. A one level channel; contains one selling intermediary such as retailer to the final customers. A two level channel two intermediaries are typically wholesaler and retailer. A three level channel are typically wholesaler, retailer and jobber in between. GCMMF has an excellent distribution. It is its distribution channel, which has made it so popular. GCMMFs products like milk and milk products are perishable. It becomes that much important for them to have a good distribution.

FINANCE DEPARTMENT

Financial management is that managerial activity which is concerned with the planning and controlling of the firms financial resources. Finance is nothing to other but the money. Money is necessary input for economic activities. In the other wards Finance is the common denominator for carrying out vast range of corporate objectives. This is a co-operative unit, so the finance is raised from members by a way of share capital. In this share capital is limited. This unit has invested so many rupees in the structure of organization. Amul has a long-term finance project. Financial Details Name of bankers

The Kaira District Central Co-op. Bank Ltd.

State Bank of India

State Bank of Saurashtra

UTI Bank Ltd

Corporation Bank

FUTURE PLANS