Professional Documents
Culture Documents
2
"EC!ARAT#ON
PARA% "A#R$
' !& $r''&! !&d !*"he&"'c +$r, d$&e by -e !&d ' b!ed *#$& "he
*Praveen 5umar0
M'A 6rd SEM
3
ACKNOWLEDGEMENT
I would like to express my heartfelt gratitude toward Mr. Mr. . !. oshi "#. M.$
raining !ro"ect in AMUL. Also I would like to convey my sincere thanks to Mr.
successfully. I would also like to thank my faculty mem&ers, for her keen
interest, valua&le guidance, inspiration, immense 'eal for hard work and
have helped me in carrying out my summer training. Lastly, I would like thank
pro"ect successfully.
PRA1EEN
5MAR
4
PREF CE
only theoretical knowledge is not enough to success in life &ut most important
we must have practical knowledge. +ith the help of this training, I came to
5
C&'T'T
Cha%ter *
• Executive Summary
Cha%ter +
#esearch $ethodolo!y
• #esearch $ethodolo!y
• nalytical 'ools
Cha%ter ,
Cha%ter -
Anne/re
a- uestionnaire
"- /i"lio!raphy
0
1
EXECUTIVE SUMM RY
successfully countered several challenges that have come its way with
insight and focus to deal with the current economic environment. #rawing
from its inner strength and beliefs, A!" responded by launching several
initiatives across all its operations in various geographies that are helping
the group achieve growth even in current times. It is also this very strategic
culture that will propel A!" to continue on its growth trajectory in years to
come.
'he report provides a comprehensive insi!ht into the company and also a"out the
companys S%' analysis. 'his report mainly studies in detail the various product
mix strate!ies of the company and also focuses on the se!mentation of "oth
company "ased and industry "ased and helps in analysin! the companys
C7apter /
#N"#AN "A#R$ #N"STR$
67
#NTRO"CT#ON TO THE #N"#AN
"A#R$ #N"STR$
The 0orld1s 2iggest dairy %rod/cing co/ntry is gro0ing fast and loo3ing to
A 'ote to o/r Readers6 the follo8in! information on India9s dairy sector is reproduced
from India Infoline.com. India is the 8orld9s lar!est mil: producin! country and is
!ro8in! fast, 8ith an eye to8ard "ecomin! a ma&or dairy exporter. 'his article is
$il: has "een an inte!ral part of Indian food for centuries. 'he per capita
availa"ility of mil: in India has !ro8n from 612 !m per person per day in 612 to
277. <o8ever a lar!e part of the population cannot afford mil:. t this per capita
consumption it is "elo8 the 8orld avera!e of 25 !m and even less than 227 !m
recommended "y the =utritional dvisory Committee of the Indian Council of $edical
#esearch.
66
'here are re!ional disparities in production and consumption also. 'he per
capita availa"ility in the north is 21 !m, 8est 614 !m, south 64 !m and in the east
only 3 !m per person per day. 'his disparity is due to concentration of mil:
production in some poc:ets and hi!h cost of transportation. lso the output of mil: in
else8here 8hich can "e attri"uted to a"undant availa"ility of fodder, crop residues, etc
In India a"out 40 per cent of the total mil: produced is consumed in li(uid form
and 41 per cent is converted into traditional products li:e cotta!e "utter, !hee, paneer,
:hoya, curd, malai, etc. %nly 1 per cent of the mil: !oes into the production of 8estern
products li:e mil: po8ders, processed "utter and processed cheese. 'he remainin! 54>
is utili?ed for conversion to mil: products. mon! the mil: products manufactured "y
the or!ani?ed sector some of the prominent ones are !hee, "utter, cheese, ice creams,
mil: po8ders, malted mil: food, condensed mil: infants foods etc. %f these !hee alone
It is estimated that around 27> of the total mil: produced in the country is
cooperatives, private dairies and vendors. lso of the total produce more than 57> is
hile for cooperatives of the total mil: procured 07> is consumed in fluid form and
rest is used for manufacturin! processed value added dairy products@ for private dairies
only 45> is mar:eted in fluid form and rest is processed into value added dairy
62
Still, several consumers in ur"an areas prefer to "uy loose mil: from vendors
due to the stron! perception that loose mil: is fresh. lso, the current level of
'he preferred dairy animal in India is "uffalo unli:e the ma&ority of the 8orld
mar:et, 8hich is dominated "y co8 mil:. s hi!h as > of mil: is produced in rural
India, 8hich caters to 12> of the total population, 8hereas the ur"an sector 8ith 2>
population consumes 50> of total mil: produced. Even in ur"an India, as hi!h as 3>
Presently only 62> of the mil: mar:et is represented "y pac:a!ed and "randed
pasteuri?ed mil:, valued at a"out #s., 777 crores. uality of mil: sold "y unor!ani?ed
sector ho8ever is inconsistent and so is the price across the season in local areas. lso
these vendors add 8ater and caustic soda, 8hich ma:es the mil: unhy!ienic.
$ar:et si?e for mil: Asold in looseB pac:a!ed form- is estimated to "e 30mn $' valued
at #s417"n. 'he mar:et is currently !ro8in! at round 4> pa in volume terms. 'he mil:
surplus states in India are ttar Pradesh, Pun&a", <aryana, #a&asthan, *u&arat,
$aharashtra, ndhra Pradesh, arnata:a and 'amil =adu. 'he manufacturin! of mil:
products is concentrated in these mil: surplus States. 'he top 0 states vi?. ttar
Pradesh, Pun&a", $adhya Pradesh, #a&asthan, 'amil =adu and *u&arat to!ether account
63
$il: production !re8 "y a mere 6> pa "et8een 641 and 617. Since the early
179s, under %peration +lood, production !ro8th increased si!nificantly avera!in! over
5> pa.
"out 15> of mil: is consumed at the household level 8hich is not a part of
commercial dairy industry. )oose mil: has a lar!er mar:et in India as it is perceived to
"e fresh "y most consumers. In reality ho8ever, it poses a hi!her ris: of adulteration
and contamination.
'he production of mil: products, i.e. mil: products includin! infant mil: food,
malted food, condensed mil: cheese stood at 3.71 la:h $' in 277. Production of
mil: po8der includin! infant mil:;food has risen to 2.25 la:h $' in 277, 8hereas
that of malted food is at 05777 $'. Cheese and condensed mil: production stands at
Ma4or Players
'he pac:a!ed mil: se!ment is dominated "y the dairy cooperatives. *u&arat Co;
operative $il: $ar:etin! +ederation A*C$$+- is the lar!est player. ll other local
dairy cooperatives have their local "rands A+or e.!. *o:ul, arana in $aharashtra,
Saras in #a&asthan, Fer:a in Pun&a", Fi&aya in ndhra Pradesh, avin in 'amil =adu,
etc-. %ther private players include G Dairy, <erita!e +oods, Indiana Dairy, Dairy
Specialties, etc. mrut Industries, once a leadin! player in the sector has turned
64
Pac3aging Technology
$il: 8as initially sold door;to;door "y the local mil:man. hen the dairy co;
operatives initially started mar:etin! "randed mil:, it 8as sold in !lass "ottles sealed
8ith foil. %ver the years, several developments in pac:a!in! media have ta:en place. In
the early 79s, plastic pouches replaced the "ottles. Plastic pouches made transportation
and stora!e very convenient, "esides reducin! costs. $il: pac:ed in plastic
pouchesB"ottles have a shelf life of &ust 6;2 days, that too only if refri!erated. In 60,
'etra Pac:s 8ere introduced in India. 'etra Pac:s are aseptic laminate pac:s made of
and treated under ltra <i!h 'emperature A<'- techni(ue can "e stored for four
months 8ithout refri!eration. $ost of the dairy co;operatives in ndhra Pradesh, 'amil
=adu, Pun&a"
and #a&asthan sell mil: in tetra pac:s. <o8ever tetra pac:ed mil: is costlier "y #s5;1
compared to plastic pouches. In 277;77 =estle launched its <' mil:. mul too
relaunched its mul 'aa?a "rand of <' mil:. 'he <' mil: mar:et is expected to
65
Reg/latory 9rame0or3
'he dairy industry 8as de;licensed in 66 8ith a vie8 to encoura!e private
investment and flo8 of capital and ne8 technolo!y in the se!ment. lthou!h de;
licensin! attracted a lar!e num"er of players, concerns on issues li:e excess capacity,
promul!ate the $$P% A$il: and $il: Products %rder- in 277. $il: and $il:
Products %rder A$$P%- re!ulates mil: and mil: products production in the country.
'he order re(uires no permission for units handlin! less than 67,777 litres of li(uid
mil: per day or mil: solids up to 577 'P. $$P% prescri"es State re!istration to
plants producin! "et8een 67,777 to 15,777 litres of mil: per day or manufacturin! mil:
products containin! "et8een 577 to 3,157 tones of mil: solids per year. Plants
producin! over 15,777 litres per day or more than 3,157 tones per year of mil: solids
have to "e re!istered 8ith the Central *overnment. 'he strin!ent re!ulations,
!overnment controls and licensin! re(uirements for ne8 capacities have restricted lar!e
Indian and $=C players from ma:in! si!nificant investments in this product cate!ory.
$ost of the private sector players have restricted themselves to manufacture of value
added mil: products li:e "a"y food, dairy 8hiteners, condensed mil: etc.
ll the mil: products except malted foods are covered in the cate!ory of
earlier reserved for manufacturin! in the small;scale sector, has no8 "een de;reserved.
60
allo8ed provided these units comply 8ith the compulsory inspection re(uirements of
Council etc. /ureau of Indian standards has prescri"ed the necessary standards for
almost all mil:;"ased products, 8hich are to "e adhered to "y the industry.
plants, from the present 67,777 litres a day to 27,777 litres, is "ein! considered "y the
nimal <us"andry Department. 'he 15,777;litre limit is li:ely to "e raised either to
677,777 litres or 625,777 litres in the amended order. 'he ne8 order 8ould also do
estern ta"le spreads such as "utter, mar!arine and &ams are not very popular
in India. ll India penetration of "utterB mar!arine is only 4>. 'his is also lar!ely
represented "y ur"an areas, 8here penetration is hi!her at >. In rural areas, "utterB
mar!arine have penetrated in 2.6> of households only. 'he use of these products in the
61
Penetration of cheese is almost nil in rural areas and ne!li!i"le in the ur"an
areas. Per capita consumption even amon! the cheese;consumin! households is a poor
2.4:! pa as compared to over 27:! in S. 'he lo8er penetration is due to peculiar
food ha"its, relatively expensive products and also non;availa"ility in many parts of the
country. /utter, mar!arine and cheese products are mainly manufactured "y or!ani?ed
sector.
compared to 36.1> in all ur"an areas and 26.3> in all rural areas. 'he all India
hi!her in =orth and est, 8hich are mil: surplus re!ions. =orth accounts for 51> of
!hee consumption and est for 23>, South East to!ether account for the "alance
27>. lar!e part of !hee is made at home and "y smallB cotta!e industry from mil:.
'he relative share of "randed products in this cate!ory is very lo8 at around 6;2>.
$il: po8der and condensed mil: have not "een a"le to !arner any si!nificant
consumer acceptance in India as indicated "y a very lo8 4.1> penetration. 'he
penetration is hi!her at
.6> in ur"an areas and lo8er at 3.5> in rural areas. ithin ur"an areas, it is relatively
6
%ort Potential
India has the potential to "ecome one of the leadin! players in mil: and mil:
product exports. )ocation advanta!eH India is located amidst ma&or mil: deficit
countries in sia and frica. $a&or importers of mil: and mil: products are
E, %man and other !ulf countries, all located close to India.
The ma4or e%ort %rod/cts6 : 'he products of mul is "ein! exported in the 47
countries of the 8orld . $any of the products are no8 availa"le in the .S. , *ulf
countries and Sin!apore. mul products are "ein! exported to the Sin!apore since last
three decades . undou"tedly , mul is the preferred taste of Indians in the *ulf
countries.
$il: production is scale insensitive and la"our intensive. Due to lo8 la"our cost, cost
"e made in mil: procurement, e(uipments, chillin! and refri!eration facilities. lso,
standards.
Prod/ctivity6 'o have an exporta"le surplus in the lon!;term and also to maintain cost
6
'here is a vast mar:et for the export of traditional mil: products such as !hee,
paneer, shri:hand, rasa!ulas and other ethnic s8eets to the lar!e num"er of Indians
*;uantity4 M T<3
27
$a::han ; unsalted "utter. *hee ; "utter oil prepared "y heat clarification, for lon!er
shelf life. heer ; a s8eet mix of "oiled mil:, su!ar and rice. /asundi ; mil: and su!ar
"oiled do8n till it thic:ens. #a"ri ; s8eetened cream. Dahi ; a type of curd. )assi ; curd
mixed 8ith 8ater and su!arB salt. ChannaBPaneer ; mil: mixed 8ith lactic acid to
coa!ulate. hoa ; evaporated mil:, used as a "ase to produce s8eet meats. 'he mar:et
for indi!enous "ased mil: food products is difficult to estimate as most of these
products are manufactured at home or in small cotta!e industries caterin! to local areas.
Consumers 8hile purchasin! dairy products loo: for freshness, (uality, taste and
texture, variety and convenience. Products li:e Dahi and s8eets li:e heer, /asundi,
#a"ri are perisha"le products 8ith a shelf life of less than a day. 'hese products are
therefore manufactured and sold "y local mil: and s8eet shops. 'here are several such
small shops 8ithin the vicinity of residential areas. Consumer loyalty is "uilt "y
consistent (uality, taste and freshness. 'here are several s8eetmeat shops, 8hich have
"uilt a stron! "rand franchise, and have several "ranches located in various parts of a
city.
mon! the traditional mil: products, !hee is the only product, 8hich is currently
mar:eted, in "randed form. main !hee "rands are Sa!ar, $il:man A/ritannia-, mul
+ederation-, Fer:a A Pun&a" Dairy Cooperative-, Everyday A=estle- and +arm +resh
Aoc:hardt-.
26
e(uipments in mil: manufacturin! have versatility and can "e adapted for several
products. +or instance, e(uipments used to manufacture yo!urt also can "e adapted for
lar!e scale production of Indian curd products Adahi and lassi-. Si!nificant research
8or: has "een done on dairy e(uipments under the ae!is of =DD/.
$afco )imited sells )assi under the arey "rand and flavored mil: under the
Ener!ee franchise Ain the estern re!ion, mainly in $um"ai-. /ritannia has launched
products 8ith the launch of pac:a!ed Paneer under the mul "rand. It has also created
a ne8 um"rella "rand mul $ithaee, for a ran!e of ethnic Indian s8eets that are
proposed to "e launched the first ne8 product mul $ithaee *ula"&amun has already
estern mil: products such as "utter, cheese, yo!urt have !ained popularity in the
Indian mar:et only durin! the last fe8 years. <o8ever consumption has "een
22
</tter
$ost Indians prefer to use home made 8hite "utter Ama::han- for reasons of taste and
afforda"ility. $ost of the "randed "utter is sold in the to8ns and cities. 'he ma&or
"rands are mul, Fi&aya, Sa!ar, =andini and arey. mul is the leadin! national "rand
8hile the other players have !reater shares in their local mar:ets. 'he latest entrant in
the "utter mar:et has "een /ritannia. /ritannia has the advanta!es of a 8ide
Priced at par 8ith the mul "rand, it is expected to !ive stiff competition to the existin!
players. In 277;77 the "utter production is estimated at 4 la:h $' of this only 45
$' is in the 8hite form used for ta"le purposes rest all is in the yello8 form.
Cheese
'he present mar:et for cheese in India is estimated at a"out ,777 tonnes and is
!ro8in! at the rate of a"out 65> per annum. Cheese is mainly consumed in the ur"an
areas. 'he four metro cities alone account for more than 57> of consumption. $um"ai
is the lar!est mar:et Aaccountin! for 37> of cheese sold in the country-, follo8ed "y
Delhi A27>-. Calcutta A1>- and Chennai A0>-. $um"ai has a lar!er num"er of
domestic consumers, compared to Delhi 8here the "ul: institutional se!ment Amainly
hotels- is lar!er.
23
'he ma&or players are mul, /ritannia, and Da"on International dominatin! the
mar:et. %ther ma&or "rands 8ere Fi&aya, Fer:a and =andini Aall "rands of various
re!ional dairy cooperatives- and Fadilal. 'he heavy advertisin! and promotions "ein!
underta:en "y these ne8 entrants is expected to lead to stron! 27> !ro8th in the
se!ment. mul has also "ecome more a!!ressive 8ith launch of ne8 variants such as
'he entry of ne8 players and increased mar:etin! activity is expected to expand the
24
day
AP""C( 1iFaya And7ra /, tons per
Prades7 day
Mil: Po?der
hole mil: po8der contains fat, as distin!uished from s:immed mil: po8der, 8hich is
produced "y removin! fat from mil: solids. S:immed mil: po8der is preferred "y diet
conscious consumers. Dairy 8hiteners contain more fat than s:immed mil: po8der "ut
less compared to 8hole mil: po8der. Dairy 8hiteners are popular mil: su"stitute for
convenience and non perisha"le nature Alon!er shelf life- of the product.
25
Dairy sector of advanced nations export mil: products 8ith a su"sidy of K 6777
per tones 8ith a level of su"sidy more than 07 > of the price of mil: po8der produced
in India, this has led to lar!e scale imports of mil: po8der "oth in 8hole and s:immed
form. 'o protect the domestic sector from these su"sidi?ed imports the central
!overnment has recently increased the "asic import duty on all imports of mil: po8der
more than 67777 $' to 07> from 65>. +or imports less than 67777 $' the "asic
In 277 India is estimated to have imported a"out 6,777 tonnes of mil: po8der a!ainst
a total estimated production of 2.47 )a:h $'s. In 2771;7 India is expected to export
67777 $' of s:immed mil: po8der due to rise in international prices to K2377 per $'
from last year9s levels of K6477 per $'. 'hese expectations are "ased on the stron!
demand from #ussia, East sia and )atin merica, and also on ti!htenin! of supply in
E, 8hich accounts for 15> of the annual !lo"al S:immed $il: Po8der exports.
20
21
Ma4or Players
$il: Po8derBDairy hitenersH $a&or s:immed mil: "rands are Sa!ar A*C$$+- and
=andini Aarnata:a $il: +ederation-, mul +ull Cream mil: po8der is a 8hole mil:
po8der "rand.
)eadin! "rands in the dairy 8hitener se!ment are =estlLs Everyday, *C$$+9s
Condensed Mil3
'he condensed mil: mar:et has !ro8n from 777 $' in 2771 to 66777 $' in 277.
Condensed mil: is a popular in!redient used in home;made s8eets and ca:es. =estlLs
$il:maid is the leadin! "rand 8ith more than 55> mar:et share. 'he only other
Infant 9oods
=estle is the mar:et leader in the se!ment. 'his is a cate!ory 8here "rand loyalties are
very stron! as mothers 8ant the "est for their "a"ies. <ein? is the only other si!nificant
competitor to =estle in this se!ment. =estlLs Cerelac and =estum to!ether have
around 7> mar:et share and <ein?9s +arex has close to 6> share. or: hard is a
relatively ne8 entrant 8ith its +irst +ood "rand. oc:hardt also proposes to launch a
ne8 "a"y food Easum containin! moon! Amoon! is one of the easily di!esti"le pulses-.
'he Easum "rand 8ill directly compete 8ith =estle9s =estum Amade from rice-.
2
In infant formula also =estle9s )acto!en formula and )acto!en standard formula
are the leadin! "rands 8ith around 15> mar:et share. %ther "rands are <ein?9s
2
2ountry3
baby foods<
#ndodan #ndana Condensed mil:4 s:immed
pro2essed mil:
37
Mar:etinG
(ederation
!imited
H<J< Hein (are94 Complan4 #nfant Mil:food4 malted
'onniemi94
1itamil:
'ritannia Mil:man (lavored mil:4 27eese4 Mil:
Po?der4 %7ee
Cadbury 'ournvita Malted food
36
Man/fact/ring Process
$il: is pasteuri?ed "y treatin! it to hi!h temperature for a short time. 'he main aim in
treatin! mil: 8ith hi!h temperature is to destroy the disease causin! patho!ens and to
Separation machine is typically a hi!h po8ered centrifu!e. 'he centrifu!al force ma:es
mil: fat !lo"ules and emer!es as cream from the separator "o8l. Separation of cream
produces s:im mil: from 8hich several dairy products are made.
/a"y foodH +resh mil:, 8hich is received from farmersB traders, is chilled and stored.
'hen $S s:immedB 8et s:immed mil: and su!ar are added in tur"o mixture to
achieve the desired specifications of in!redients in the mil:. 'his is follo8ed "y
specifications is filtered, cooled, analy?ed and then purified. 'hen it passes throu!h
homo!eni?ed, cooled and stored. Cooled pre;condensate is heated and dried in spray
drier AE!ron-. 'hen su!ar is added. 'he po8der is then passed throu!h chemical
analysis to chec: (uality and is filled in tins throu!h fillin! machines. 'hese tins are
!assed durin! !as mix and then sealed, pac:ed and dispatched in card"oard cartons.
32
</tter6 hole mil: is first separated into s:im mil: and cream "y centrifu!al force in a
separator. 'he cream is then pasteuri?ed either throu!h "atch process or a continuous
process. In "atch process, cream is heated to a minimum of 147 C and held at the
held for only 65 seconds. 'he heat treatment destroys "acteria, inactivates en?ymes and
allo8 rearran!ement of the fat crystals. 'he cream is then churned to produce "utter.
Continuous churnin! converts cream into "utter in a fe8 minutes 8hile "atch churnin!
ta:es a lon!er time. Composition and colour ad&ustment is also done at the churnin!
sta!e and a salt solution is added to !ive the finished "utter a salty taste. "out 63 litres
Cheese6 'here are thousands of varieties of cheese in the 8orld. 'he type of
manufacturin! process used in the production of cheese determines its flavour, 8hich
ran!es from extremely mild to very sharp, and its texture, 8hich can "e semi;solid to
almost stone hard. Cheese ma:in! re(uires four main in!redients ; !ood (uality mil:,
rennet or coa!ulatin! acids, culture and salt. Cheese is !enerally made from co89s mil:.
"out 67 litres of mil: 8ith 3> fat is re(uired for ma:in! 6 :! of cheese. =atural
Cheese is made "y coa!ulatin! or curdlin! mil:, stirrin! heatin! the curd, drainin!
off the 8hey and collectin! or pressin! the curd. 'he desired flavour and texture is
o"tained "y varyin! the temperature, humidity and time period of the curin! process.
S8eetened condensed mil: is usually made from fresh mil: "y addin! su!ar to the mil:
33
pre;8armin! and concentratin! the mixture in the hi!h vacuum. 'he syrupy mil: is
then cooled so that the lactose crystalli?es as very fine crystals and then the product is
coa!ulated.
9/t/re Pros%ects
IndiaN N s dairy sector is expected to triple its production in the next 67 years in vie8
of expandin! potential for export to Europe and the est. $oreover 8ith '%
re!ulations expected to come into force in comin! years all the developed countries
8hich are amon! "i! exporters today 8ould have to 8ithdra8 the support and su"sidy
to their domestic mil: products sector. lso India today is the lo8est cost producer of
per litre of mil: in the 8orld, at 21 cents, compared 8ith the .S9 03 cents, and GapanN
N s K2. dollars. lso to ta:e advanta!e of this lo8est cost of mil: production and
their activities here. Some of these mil: producers have already o"tained (uality
standard certificates from the authorities. 'his 8ill help them in mar:etin! their
'he ur"an mar:et for mil: products is expected to !ro8 at an accelerated pace of
around 33> per annum to around #s.43,577 crores "y year 277. 'his !ro8th is !oin!
to come from the !reater emphasis on the processed foods sector and also "y increase in
the conversion of mil: into mil: products. /y 277, the value of Indian dairy produce is
expected to "e #s 67, 77,777 million. Presently the mar:et is valued at around #s1,
77,777mn.
34
35
"he br!&d &!-e 1AMUL /r$- "he S!&,r'" +$rd 1A-$$y! !r'!&"5 ! -e!&'&
1#r'cee !re /$*&d '& eer! I&d'!& !&*!e. A-* #r$d*c" h!e bee& *ed
A-* b*""er
A-* hee
A-*#r!y
A-* cheee
A-* ch$c$!"e
$d!y A-* ' ! y-b$ $/ -!&y "h'& . $/ h'h 2*!'"y #r$d*c" $d !"
M&TT&
'he main motto of $) is to help farmers. +armers 8ere the foundation stone of
$). 'he system 8or:s only for farmers and for consumers, not for profit. 'he main
of $) is to provide (uality products to the consumers at minimum cost. 'he !oal of
30
@II&'
Fision of $) is to provide and vanish the pro"lems of farmers Amil: producers-.
'he $) apparition 8as to run the or!ani?ation 8ith co;operative of four main
parties, the farmers, the representatives, the mar:eters, and the consumers.
;UALITY P&LICY
e the motivated and devoted 8or: force of $) are committed to produce 8hole
some and safe foods of excellent (uality to remain mar:et leaders throu!h deployment
of (uality mana!ement system, state of art technolo!y innovation and eco; friendly
7IT&RY
In early 647s a farmer in aira district, as else8here in India, derived his income
almost entirely from seasonal crops. 'he income from mil: 8as paltry and could not "e
depended upon. 'he main "uyers 8ere mil: traders of Polson )td.;a privately o8ned
31
company that en&oyed monopoly for supply of mil: from aira to the *overnment $il:
Scheme /om"ay. 'he system leads to exploitation of poor and illiterate farmers "y the
private traders.
<o8ever, 8hen the exploitation "ecame intolera"le, the farmers 8ere frustrated. 'hey
collectively appealed to Sardar Falla"h"hai Patel, 8ho 8as a leadin! activist in the
freedom movement. Sardar Patel advised the farmers to sell the mil: on their o8n "y
Patel sent the farmer to Shri $orar&i Dasai in order to !ain his Co;operation and help.
Shri Dasai held a meetin! at OSamr:ha villa!e near nand, on Ganuary 4, 640. <e
advised the farmers to from a society for collection of the mil:.'hese villa!e societies
8ould collect the mil: themselves and also decided prices for that 8hich 8ould "e
profita"le for them. 'he district union 8as also from to collect the mil: from such
villa!e cooperative societies and to sell them. It 8as also resolved that the !overnment
<o8ever, the !overnment did not seem to help farmer "y any means. It !ave the
ne!ative response "y turnin! do8n the demand for the mil:. 'o respond to this action
of !overnment, farmer of aira district 8ent on a mil: stri:e. +or 65 days not a sin!le
drop of mil: 8as sold to the traders. s a result the /om"ay mil: scheme 8as severely
affected. 'he mil: commissioner of /om"ay then visited nand to assess the situation.
3
'hus their cooperative unions 8ere forced at villa!e and district level to collect and sell
urien had main interest in esta"lishin! union 8ho 8as supported "y Shri
thevilla!e level. O'he aira District Co;operative $il: Producers nion 8as thus
esta"lished in nand and 8as re!istered formally under section 67 of /om"ay ct FII
of 625 on Decem"er 64, 640. Since then farmers are sellin! all the mil: in nand
throu!h cooperative union. In 655 it 8as commonly decided the sell mil: under the
t the initial sta!e only 257 liters of mil: 8as collected everyday. /ut 8ith the
increased. 'oday mul collect 57, 77,777 liters of mil: everyday. s the mil: is
perisha"le commodity it "ecame difficult to preserve mil: for a lon!er period. /esides
8hen the mil: 8as to "e collected from the far places there 8as a fear of spoilin! of
mil:. 'o over come this pro"lem the union thou!ht to develop the chillin! unit at
various &unctions, 8hich 8ould collect the mil: and could chill so as preserve it a for a
lon!er period. 'hus, today mul has more than 60 chillin! centers in various villa!es.
ith the financial help from =ICE+, assistance from the !overnment of =e8
ealand under the Colom"o plan, of #s. 57 million for factory to manufactory mil:
po8der and "utter. Dr. #a&endara Prasad, the president of India laid the foundation on
3
=ovem"er 57, 654. Shri Pandit Ga8aharlal =ehru, the prim minister of India declared
%cto"er 36, 604 "y Shri )al"ahadur Shastri, the Prime $inister of India. t the
re(uest of the !overnment of India, a ne8 dairy 8ith a capacity to manufacture 47 tons
of mil: po8der and 27 tons of "utter a day 8as completed in 603. 'his 8as meant to
meet the re(uirement of Indias defense forces. 'he dairy 8as declared open "y
Shri$orar&i Desai in pril, 605. in 614, the aira nion setup a plant to manufacture
hi!h;protein 8eanin! food, chocolate and malted food at $o!ar, a"out :m south of
nand.
In Septem"er, 66, the second cattle feed plant at Oan&ari 8ere started. 'he
the ener!y front 8hen t8o !as tur"ine !enerators of 6.5 $ each "ased on natural !as,
8ere commissioned. %n %cto"er 36, 62, Dr. F. urien chairman, =ational Dairy
Development /oard, laid the foundation of aira nions third dairy 8ith a processin!
capacity of 0.5 la:h liters of mil: a day. or: on the third dairy and cheese plant at
Ohatra& 8ith capacity for 27 $etric 'on of cheese per day, "e!an in +e"ruary, 64.
lso in 64, aira nion put up "read spread plant at O$o!ar 8ith the assistance
47
*u&arat 8hich aims to provide remunerative returns to the farmers and also serve the
interest of consumers "y providin! (uality products 8hich are !ood value for money.
46
nion
'o. of Prod/cer Mem2ers6 2.0 million
'o. of @illage ocieties6 62,12
Total Mil3 handling ca%acity6 67.60 million litres per day
Mil3 collection 2.3 "illion litres
Mil3 collection 0.5 million litres
Mil3 rying Ca%acity6 54 $ts. per day
Cattle feed man/fact/ring Ca%acity6 2047 $ts per day
A2o/t Machinery
In $) Q 3 production of po8der, /utter and $il: are "ein! done
continuously. 'hese productions are done "y latest machineries e(uipped 8ith
company of India
and other
com.of 9rance
42
C7AIRMA'
MA'A#I'# C7AIRMA'
#'RAL MA'A#R
MA'A#R
PUTY MA'A#R
AITA'T MA'A#R
'I&R CUTI@
'I&R &99ICR
'I&R AITA'T
=&R!R
#rade ( Ato )
.
43
44
Sales Turnover
<read s%reads6
• mul /utter
45
Cheese Range6
• mul mra:hand
• vsar )adoos
40
P/re #hee6
Mil3 Po0ders6
9resh Mil36
41
C/rd Prod/cts6
• mul )assee
4
• '/t:o:Mania Range Aa&u Dra:sh, esar Pista #oyale, +ruit /onan?a, #oasted
lmond-
• 'at/re1s Treat Alphanso $an!o, +resh )itchi, Shahi n&ir, +resh Stra8"erry,
Chocolate B Confectionery6
<ro0n <everage6
Mil3 rin36
Chocolate-
4
7ealth <everage6
57 years after it 8as first launched, mul9s sale fi!ures have &umped from 6777 tonnes
a year in 600 to over 25,777 tonnes a year in 277. =o other "rand comes even close
to it. ll "ecause a thum";si?ed !irl clim"ed on to the hoardin!s and put a spell on the
masses.
<om2ay6 Summer of 601. Charni #oad flat. $rs. Sheela $ane, a 2;year;old
house8ife is out in the "alcony dryin! clothes. +rom her second floor flat she can see
her nei!h"ours on the road. 'here are other people too. 'he cro8d seems to "e !ro8in!
lar!er "y the minute. na"le to cur" her curiosity Sheela $ane hurries do8n to see
8hat all the commotion is a"out. She expects the 8orst "ut can see no si!ns of an
accident. It is her four;year;old 8ho dra8s her attention to the hoardin! that has come
up overni!ht. It 8as the first mul hoardin! that 8as put up in $um"ai, recalls
Sheela $ane. People loved it. I remem"er it 8as our favourite topic of discussion for
the next one 8ee: Every8here 8e 8ent someho8 or the other the campai!n al8ays
57
Call her the +riday to +riday star. #ound eyed, chu""y chee:ed, 8in:in! at you,
from strate!ically placed hoardin!s at many traffic li!hts. She is the mul moppet
everyone loves to love Aincludin! pric:ly votaries of the Shiv Sena and /GP-. <o8
often have 8e stopped, loo:ed, chuc:led at the mul hoardin! that casts her sometime
as the coy, shy $adhuri, a "old sensuous rmila or simply as herself, dressed in her
little pol:a dotted dress and a red and 8hite "o8, holdin! out her favourite pac:et of
"utter.
+or 37 odd years the tterly /utterly !irl has mana!ed to :eep her fan
follo8in! intact. So much so that the ads are no8 ready to enter the Guinness Book of
World Records for "ein! the lon!est runnin! campai!n ever. 'he ultimate compliment
to the "utter came 8hen a /ritish company launched "utter and called it tterly
It all "e!an in 600 8hen Sylvester daCunha, then the mana!in! director of the
advertisin! a!ency, SP, clinched the account for mul "utter. 'he "utter, 8hich had
"een launched in 645, had a staid, "orin! ima!e, primarily "ecause the earlier
advertisin! a!ency 8hich 8as in char!e of the account preferred to stic: to routine,
corporate ads.
56
In India, food 8as somethin! one couldn9t afford to fool around 8ith. It had "een ta:en
too seriously, for too lon!. Sylvester daCunha decided it 8as time for a chan!e of
ima!e.
'he year Sylvester daCunha too: over the account, the country sa8 the "irth of a
campai!n 8hose charm has endured fic:le pu"lic opinion, !immic:ry and all else.
'he mul !irl 8ho lends herself so completely to mul "utter, created as a rival to the
Polson "utter !irl. 'his one 8as sexy, villa!e "elle, clothed in a tantali?in! choli all "ut
coverin! her upper re!ions. Eustace +ernande? Athe art director- and I decided that 8e
needed a !irl 8ho 8ould 8orm her 8ay into a house8ife9s heart. nd 8ho "etter than a
little !irlT says Sylvester daCunha. nd so it came a"out that the famous mul
'hat %cto"er, lamp :ios:s and the "us sites of the city 8ere splashed 8ith the
moppet on a horse. 'he "aseline simply said, 'horou!h "read, tterly /utterly
Delicious mul,. It 8as a matter of &ust a fe8 hours "efore the daCunha office 8as
rin!in! 8ith calls. =ot &ust adults, even children 8ere callin! up to say ho8 much they
had li:ed the ads. 'he response 8as phenomenal, recalls Sylvester daCunha. e
52
+or the first one year the ads made statements of some :ind or the other "ut they had
not yet ac(uired the topical tone. In 601, Sylvester decided that !ivin! the ads a solid
concept 8ould !ive them extra milea!e, more dum, so to say. It 8as a decision that
In 60, 8hen the city first sa8 the "e!innin! of the <are #ama <are rishna
movement, Sylvester daCunha, $ohammad han and sha /andar:ar, then the
creative team 8or:in! on the mul account came up 8ith a clincher ;; 9<urry mul,
<urry <urry9. /om"ay reacted to the ad 8ith a fervour that 8as almost as devout as the
Is:on fever.
'hat 8as the first of the many topical ads that 8ere in the offin!. +rom then on mul
"e!an playin! the role of a social o"server. %ver the years the campai!n ac(uired that
8as the happenin! thin! in Calcutta, mul 8ould "e up there on the hoardin!s sayin!,
/read 8ithout mul /utter, cholbe na cholbe na A8on9t do, 8on9t do-. If there 8as an
Indian irlines stri:e mul 8ould "e there a!ain sayin!, Indian irlines on9t +ly
ithout mul.
53
'here are stories a"out the "utter that people li:e to relate over cups of tea. +or
over 67 years I have "een collectin! mul ads. I especially li:e the ads on the "ac:s of
the "utter pac:ets, says $rs. Sumona Farma. hat does she do 8ith these adsT I
have made an al"um of them to amuse my !randchildren, she lau!hs. 'hey are almost
part of our culture, aren9t theyT $y !randchildren are already "e!innin! to realise that
these ads are not &ust a source of amusement. 'hey ma:e them a8are of 8hat is
Despite some of the ne!ative reactions that the ads have !ot, DaCunhas have
made it a policy not to play it safe. 'here are numerous ads that are ris(uL in tone.
e had the option of "ein! s8eet and playin! it safe, or ma:in! an impact.
fine "alance had to "e struc:. e have a campai!n that is stron! enou!h to ma:e a
statement. I didn9t 8ant the hoardin!s to "e pleasant or tame. 'hey have to say
e ran a couple of ads that created (uite a furore, says Sylvester daCunha. 'he
Indian irlines one really an!ered the authorities. 'hey said if they didn9t ta:e do8n the
ads they 8ould stop supplyin! mul "utter on the plane. So ultimately 8e discontinued
the ad, he says lau!hin!. 'hen there 8as the time 8hen the mul !irl 8as sho8n
8earin! the *andhi cap. 'he hi!h command came do8n heavy on that one. 'he *andhi
cap 8as a sym"ol of independence@ they couldn9t have anyone not ta:in! that seriously.
So despite their reluctance the hoardin!s 8ere 8iped clean. 'hen there 8as an ad
durin! the *anpati festival 8hich said, *anpati /appa more *hya A*anpati /appa ta:e
more-. 'he Shiv Sena people said that if 8e didn9t do somethin! a"out removin! the ad
they 8ould come and destroy our office. It is surprisin! ho8 vi!ilant the political forces
54
are in this country. Even 8hen the Enron ads AEnr on or off- 8ere runnin!, #e"ecca
'here 8ere other instances too. <eroine ddiction, mul9s little &o:e on <ussain had
the artist rin!in! the daCunhas up to re(uest them for a "lo8 up of the ad. <e said that
he had seen the hoardin! 8hile passin! throu!h a small district in P. a<e sid says
#ahul daCunha in amused tones. Indians do have a sense of humour, afterall.he had
as:ed his assistant to ta:e a photo!raph of himself 8ith the ad "ecause he had found it
so funny,
+rom the Sixties to the =ineties, the mul ads have come a lon! 8ay. hile most
people a!ree that the mul ads 8ere at their pea: in the Ei!hties they still maintain that
here does mul9s ma!ic actually lieT $any "elieve that the charm lies in the catchy
lines. 'hat 8e lau!h "ecause the humour is 8hat any"ody 8ould en&oy. 'hey don9t
pander to your nationality or certain sentiments. It is pure and simple, everyday fun.
55
I'TR&UCTI&'
up 8ith the ne8 techni(ues, ta:in! up steps 8ith developin! techni(ues and ta:in!
direct costs and effective use the availa"ility manpo8er 8eavin! ne8 techni(ues in to
the 8hole to :eep the production unit efficient and developin! production mana!ement
'he mul is started 8ith only 257 liters of mil: per day. /ut no8 mul collect
avera!e la:hs of liters mil: per day. t the initial sta!e, mul has not any pro"lem
re!ardin! mil:, "ut in the 8inter season there 8as excess supply of mil:. So, mul has
to sell out that excess mil: at the lo8 price or mul has to face loss. 'o removin! these
pro"lems mul ta:e decision to set up a plant to process the surplus mil: "utter and
mil: po8der.
'oday the mul has three plants no8n as mul 6, 2 3 all three plant 8or:
24 hours a day continuously. 'he all manufacturin! process is done automatically. 'he
production is done in the special machines. 'hese machines and the technolo!y are
import;id from the '#+' PE Company. 'here is also facility of chillin! of mil:,
50
6. $) Q 2 'oday in this unit, the production process of *hee and pac:in!s are
runnin! .
2. $) Q 3 'his unit is producin! $) "utter, $) spray po8der, and
flavored mil:.
0rgani'ation Structure
Managing irector
$eneral Manager
A.M. echnicians
31ng.4
1ng. +orkers
0fficers
echnicians
1ng. +orker
51
5
farmers and ma:in! that mil: in use as soon as possi"le "efore that mil: !et spoiled
"ecause the mil: is the perisha"le product. +or the smooth runnin! the "usiness of dairy
industry the industry must concentrate on the mil: collection cycle. mul dairy is very
conscious a"out the mil: collection cycle "ecause the "ase of the success of the mul is
A2o/t Machinery
In $) Q 3 production of po8der, /utter and $il: are "ein! done
continuously. 'hese productions are done "y latest machineries e(uipped 8ith
5
07
simultaneously tested . mul;2 has a 8ell desi!ned #$#D , situated in the 8est 8in!
of dairy . #a8 mil: at mul; 2 is received mainly throu!h cans . 'here are 2 reception
lines for unloadin! mil: cans in mul Q 2 . "out 07 > of reception is of "uffalo mil:
9ilter
+eighing
Standardi'ation
06
02
</tter section
'he utterly /utterly Delicious "utter of the mul is one of the most popular product
of mul dairy alon! 8ith the famous "utter !irl . 'he "utter section is located in mul
;3 8hich manufactures 'a"le /utter , 8hite "utter and renduced salt "utter . 'he section
e(uipments ./utter section very important as it handles fat, 8hich is the costliest
constituent . 'he cream o"tained from process section is fully utili?ed for "utter ma:in!
. mul 8hite and ta"le /utter is exported to S and various $iddle Eastern countries
&PRATI&'
'he cream for manufacturin! /utter is receivin! from mul;3 process section 8hile
standardi?ation of mil: . In mul ;3 the mil: fat 8ill "e separated at a"ove 07 Celsius ,
the centrifu!al separators inline 8ith $il: pasteuri?er separate this as cream . 'he
cream thus separated is pasteuri?ed and then pumped to the cream "uffer tan:s and to
cream silo .fter a!ein! at Celsius for 24 hrs , cream is pumped to cream chillin!
unit in the "utter section . there the temperature of cream is ad&usted to the re(uired
03
/ooling 3;*> /4
Ageing3;*> /8 6?hours4
/hurning 3speed =<<* 56<<rpm4
5= kg packing
(lending
3 6=*7< rpm
%vacuum 4
04
export
ghee &utter section
packaging lines
>.5g &lister pack 5<<g refill pack 5<<g refill pack ?<<tin
3Army4
Po0der %lant
+;35 plant is situated in mul ;2 near to the rail8ay sidin! . 'he plant is a sin!le sta!e
dryin! plant havin! a capacity of 35 'DP. 'he plant is not in re!ular use and mainly
05
=o of calendria H 1
&PRATI&' TAIL
PR&UCT U A' C7ARACTRITIC
MIL!
%ne of the most versatile food consumed "y us. ll children start their 8ith mothers
mil: and continue to use it in one other throu!hout their life. It is the secretion from the
mammary !lands of a lactatin! mammal. 'he 8hite fluid, :no8 as mil:, is made up of
Ice cream are rich in protein, calcium, dairy cream and vitamins.
Ice cream are a complete food, easy to di!est and full of ener!y.
mul ice cream is made up from mil:, mil: products, su!ar, sta"ili?ers and emulsifiers.
Com%osition
00
01
Flavors
Packaging
=< ml cup, 5<< ml cup, =<< ml pack,5 litre pack, ? litre pack, /hoco&ar, Ice candies, /ones and
-ulfies .
MIL! PR&CURM'T
'otal mil: procurement "y our $em"er nions durin! the year 2770;71 avera!ed
01.25 la:h :ilo!rams A0.1 million :!- per day, representin! a !ro8th of 4.5 per cent
over 04.3 la:h :ilo!rams A0.4 million :!- per day achieved durin! 2775;70. 'he
hi!hest procurement as usual 8as recorded durin! Ganuary 2771 at 4.7 la:h
:ilo!rams A.4 million :!- per day. 'his increase in mil: procurement is very
impressive, :eepin! in mind the massive loss suffered "y our farmers due to
0
MIL! PR&CI'#
6 7omogeni8ation6 ; $il: must then "e homo!eni?ed. ithout homo!eni?ation, the
mil: fat 8ould separate from the mil: and rise to the top. $il: fat is 8hat !ives mil: its
rich and creamy taste. In this process $il: is transferred to a piece of e(uipment called
a homo!eni?er. In this machine the mil: fat is forced, under hi!h pressure throu!h tiny
holes.
6 . Paste/ri8ation H; Pasteuri?ation is the process that purifies mil: and helps it stay
fresher, lon!er. $il: is pasteuri?ed "y heatin! it to 12VC for 60 seconds then (uic:ly
coolin! it to 4VC. Pasteuri?ation is named after )ouis Pasteur, the famous scientist.
0
Fitamin D com"ined 8ith the calcium that naturally exists in mil: help !ives us stron!
"ones and teeth. Dairies also add Fitamin to s:im, 6> and 2> mil:. Fitamin is
?.Packaging Milk G * $il: is no8 ready to "e pac:a!ed. $il: is pumped throu!h
automatic fillin! machines direct into "a!s, cartons and &u!s. 'he machines are
carefully saniti?ed and pac:a!es are filled and sealed 8ithout human hands. Durin! the
entire time that mil: is at the dairy, it is :ept at 6V ; 2VC. 'his prevents the development
17
refri!erated truc:s that :eep mil: cooled to 6V ; 4VC. 'he stores ta:e their mil: and
16
UPPLIR
Processing :
fter the union received the mil:, it 8as tested and if it 8as found to "e of !ood
(uality, it 8as sent for processin!. If the mil: 8as found to have hi!h acidity, it 8as
used to ma:e "uttermil:. #a8 mil: 8as sent throu!h a filter and clarifier and 8as
pasteuri?ed. +or pasteuri?ation, mil: 8as treated at hi!h temperatures for a specified.
'his helped in destroyin! the patho!ens and in maintainin! the (uality. fter
pasteuri?ation, the mil: 8as sent throu!h a separation machine. <ere the cream 8as
separated and s:immed mil: 8as o"tained. ccordin! to the demand, the unions
pac:ed the mil: after it 8as pasteuri?ed and sent for distri"ution. 'he cream 8as
12
Distribution
*C$$+ coordinated 8ith various unions to !et a re!ular supply of mil: and dairy
products. 'he processed mil: and dairy products 8ere procured from district dairy
unions and distri"uted throu!h third party distri"utors. 'o ensure (uality and timely
deliveries, *C$$+ and the district unions had several mechanisms in place. 'he FCS
constantly monitored the deliveries of the mil: collected and ensured that the mil: 8as
pic:ed up on time. 'he unions monitored the supplies of mil: and the distri"ution of
finished products.
=AR 7&UI'#: mul products are availa"le in over 577,777 retail outlets across
India throu!h its net8or: of over 3,577 distri"utors. 'here are 41 depots 8ith dry and
cold 8arehouses to "uffer inventory of the entire ran!e of products. *C$$+ transacts
on an advance demand draft "asis from its 8holesale dealers instead of the che(ue
system adopted "y other ma&or +$C* companies. 'his practice is consistent 8ith
and it also minimi?es dumpin!. holesale dealers carry inventory that is &ust ade(uate
to ta:e care of the transit time from the "ranch 8arehouse to their premises. 'his &ust;
in;time inventory strate!y improves dealers9 return on investment A#%I-. ll *C$$+
13
14
s per the a"ove dia!ram there are the first components is ra8 materialH
In our company the ra8 materials are mil:, po8der for ice creams manufacturin!,
different types of flavors for ice creams, pac:a!in! material, su!ar etc. re(uired "y the
company for manufacturin!. In this step *C$$+ play a very important role it procures
mil: from villa!es and for this it develops three types of system and that is societies at
15
Second component is suppliers are the farmers and other ra8 material for
manufacturin! the ice creams are provided "y $<= P#%'EI=S )'D., IDE) ICE
there are mainly five steps are re(uired and i.e. homo!eni?ation, pasteuri?ation, addin!
vitamins, pac:a!in!, storin!. In this process there are also re(uirement of 8arehouse
for storin! the product 8hich already made and also for the ra8 material.
'he next step is the distri"ution channel in 8hich *C$$+ plays very important role in
that. It handle all the mar:etin! for $) products. *C$$+9s products 8ere
mar:eted throu!h 57 sales offices located across India to 4,777 stoc:ists. 'hese
10
'he next step is the customers in this cate!ory there are restaurants includes. lso the
'he last step is the consumer in 8hich the actual hose hold are included in this
cate!ory.
&/r Prod/ct
AMUL means "priceless" in Sans:rit. 'he "rand name mul, from the Sans:rit
moolya, 8as su!!ested "y a (uality control expert in nand. Fariants, all meanin!
priceless, are found in several Indian lan!ua!es. mul products have "een in use in
millions of homes since 640. mul /utter, mul $il: Po8der, mul *hee,
mulspray, mul Cheese, mul Chocolates, mul Shri:hand, mul Ice cream,
=utramul, mul $il: and mulya have made mul a leadin! food "rand in India.
A'urnoverH #s. 42.1 "illion in 2771;7-. 'oday mul is a sym"ol of many thin!s. %f
11
C7e2: out t7is vast and ever.Gro?inG ranGe of 8tasteful8 Amul dele2tableI
<read %reads
Amul 'utter Amul !ite
S#re!d
"eli2ious Table
MarGarine
Mil: "rin:s
Amul 5ool Amul 5ool Cafe
1
r$+'& K'd
Mil:
?r'&,
Po?der Mil:
1
b!by h$-e
#re#!r!"'$& $r /$r
Amulya "airy
)7itener
he R'che"5
P*re" ?!'ry
h'"e&er
(res7 Mil:
7
hy'e&'c -',
-!r,e". P!"e*r'ed
'& "!"e$/"he!r"
#$*ch#!c,ed /$r
c$&e&'e&ce.
Mil:
Amul Cal2i
6
C7eese
Amul Pasteurised Amul C7eese
-'cr$b'! re&&e"
h! ! +ee"dry
!r$-!
%ouda C7eese
2
(or Coo:inG
Amul SaGar Pure Coo:inG 'utter
%7ee
by d!'r'e +'"h
dec!de $/
e3#er'e&ce.
/!$*r'"e rec'#e
S+ee"e&ed
@$&de&ed M',
-$$"h "e3"*re.
3
4
"esserts
Amul #2e Creams Amul S7ri:7and
&*".
G!-*-...be"
Healt7 "rin:
5
beer!e #$+der
0
Para! Dairy Q Delhi 8as set up in 614 under the %peration +lood Pro!ramme. It is
no8 a 8holly o8ned company of the =ational Dairy Development /oard A=DD/-.
Para! Dairy mar:ets sells dairy products under the Para! Dairy "rand Ali:e )i(uid
$il:, Dahi, Ice creams, Cheese and /utter-, Dhara ran!e of edi"le oils and the Safal
ran!e of fresh fruits ve!eta"les, fro?en ve!eta"les and fruit &uices at a national level
throu!h its sales and distri"ution net8or:s for mar:etin! food items.
Para! Dairy sources si!nificant part of its re(uirement of li(uid mil: from dairy
cooperatives. Similarly, Para! Dairy sources fruits and ve!eta"les from farmers B
!ro8ers associations. Para! Dairy also contri"utes to the cause of oilseeds !ro8er
cooperatives that manufactureB pac: the Dhara ran!e of edi"le oils "y underta:in! to
Aa- Ensure that mil: producers and farmers re!ularly and continually receive mar:et
prices "y offerin! (uality mil:, mil: products and other food products to consumers at
A"- phold institutional structures that empo8er mil: producers and farmers throu!h
1
automate all functions of the mil: processin! areas to ensure hi!h product (ualityB
relia"ility and safety. Para! Dairy is an ISB IS%;772, IS;65777 <CCP and IS;64776
uality ssurance )a"oratory is certified "y =ational ccreditation /oard for 'estin!
*overnment of India.
Para! Dairy mar:ets approximately 2. million liters of mil: daily in the
mar:ets of Delhi, $um"ai, Saurashtra and <ydera"ad. Para! Dairy $il: has a mar:et
share of 00> in the "randed sector in Delhi 8here it sells 2.3 million liters of mil: daily
and underta:es its mar:etin! operations throu!h around 64,777 retail outlets and 45
distri"ution net8or: of "ul: vendin! "ooths, retail outlets and mo"ile units. Para!
Dairy ice creams launched in the year 65 have sho8n continuous !ro8th over the
years and today "oasts of approximately 02> mar:et share in Delhi and =C#. Para!
Dairy also manufactures and mar:ets a 8ide ran!e of dairy products that include
/utter, Dahi, *hee, Cheese, <' $il:, )assi +lavored $il: and most of these
'he company mar:ets an array of fresh and fro?en fruit and ve!eta"le products
under the "rand name S+) throu!h a chain of 477W o8n +ruit and Fe!eta"le shops
and more than 27,777 retail outlets in various parts of the country. +resh produce from
the producers is handled at the Companys modern distri"ution facility in Delhi 8ith an
annual capacity of 277,777 $'. n I+ facility 8ith capacity of around 15 $' per day
capacity of 627 $' per day, a 677 percent E%, setup in 60 at $um"ai supplies
ith increasin! demand another state;of;the;art fruit processin! plant has "een
set up at /an!alore 8ith fruit handlin! capacity of around 257 $' per day. Para! Dairy
has also "een mar:etin! the Dhara ran!e of edi"le oils for the last fe8 years. 'oday it is
a leadin! "rand of edi"le oils and is availa"le across the country in over 2, 77,777
outlets. 'he "rand is currently availa"le in the follo8in! variantsH #efined Fe!eta"le
%il, #efined Soy"ean %il, #efined Sunflo8er %il, #efined #ice /ran %il, achi *hani
$ustard %il and +iltered *roundnut %il. Para! Dairy has also launched extra vir!in
Para! Dairy has over the last 3 decades, harnessed the po8er of farmer
cooperatives to deliver a ran!e of delicious products and "rin! a smile on your face. In
times to come, Para! Dairy shall strive to remain one of Indias finest food companies.
<read s%reads6
• Para! /utter
Cheese Range6
• Para! Paneer
7
• Para! $il:
P/re #hee6
Mil3 Po0ders6
9resh Mil36
6
!ECTO%#N
V'%!y N!!r .40 <.6
S!&%!y P!ce =.80 0.<
Kh!&d!r' 0.=0 4.00
S',!&dr! =.40 ;.=
R!%#*r @h*&' .40 4.;0
S!d!r B!:!r .00 .40
Sh!h"r'#*r!- <.70 =.8
B$d! 4.00 .00
Gee&' M!&d' <.00 8.6
R!+!"#!r! .=0 =.40
Be!&!&% 0.0 0.40
!%!&% ;.;= <.;=
L$h!-!&d' 0.0 .=0
R!%!-!&d' 0.;0 <.80
<7.<= 6=.68
TOTAL
2
'TTER
1iFay NaGar ;9 0
S!&%!y P!ce 9= <0
Kh!&d!r' 7<4 7=
S',!&dr! <;; 0
R!%#*r @h*&' 90.; 0
S!d!r B!:!r 678 0
Sh!h"r'#*r!- ;00 4=
B$d! 470 =
Gee&' M!&d' <;0 00
R!+!"#!r! 40.; 0
Be!&!&% 4 60
!%!&% =;9 0
L$h!-!&d' 8 0
TOTA! 6>B, 6,
'TTER
3
4
5
E9port Potential
India has the potential to "ecome one of the leadin! players in mil: and mil: product
exports. )ocation advanta!eH India is located amidst ma&or mil: deficit countries in
sia and frica. $a&or importers of mil: and mil: products are /an!ladesh, China,
<on! on!, Sin!apore, 'hailand, $alaysia, Philippines, Gapan, E, %man and other
Lo0 Cost of Prod/ction H $il: production is scale insensitive and la"our intensive.
Due to lo8 la"our cost, cost of production of mil: is si!nificantly lo8er in India.
in mil: procurement, e(uipments, chillin! and refri!eration facilities. lso, trainin! has
Prod/ctivity6 'o have an exporta"le surplus in the lon!;term and also to maintain cost
'here is a vast mar:et for the export of traditional mil: products such as !hee, paneer,
shri:hand, ras!olas and other ethnic s8eets to the lar!e num"er of Indians scattered all
0
C7apter 6
Resear27
met7odoloGy
1
mul Para! Dairy is the mar:et leader of dairy "ased food products in !ra
City. mul is the ma&or competitors in the mar:et a!ainst Para! Dairy. It is important to
!et an idea re!ardin! muls Para! Dairy position in !ra City. It 8ould not help
mul to capitali?e on existin! potential "ut also to formulate strate!ies and to fill the
'o determine the mar:et share of mul Para! dairy "ased product.
'o determine the consumer preferences of mul Para! dairy product 8ith the
'o compare the dairy product of mul and Para! dairy on the "asis of a"ove
parameters
'o learn different strate!ies 8hich are used "y retailers in mar:et to convince
the customers.
RARC7 MT7&&L&#Y
$ethodolo!y for a study li:e this is the most important part .'he method of study
this pro&ect.
'he ma&or emphasis in such studies is on the discovery of the ideas fruitful
relevant information. s such the research desi!n appropriate for such studies must
I. P#I$#R D'
677
am%le design6
si?e
Sample sie3
REAILER H <;
@USOMERH 0
Analyti2al tools 6 'his study is "ased on collectin! data "y usin! 8ell;
connected (uestionnaire for consumer from various demo!raphic se!ments and also
data is collected usin! secondary sources. fter collectin! data it is arran!ed in the
form of ta"les from analysis and interpretation. *raphs and percenta!e analysis are the
676
• Fi&ay =a!ar
• San&ay Place
• handari
• Si:andra
• #a&pur Chun!i
• Sadar /a?ar
• Shastripuram
• /odla
• Geevni $andi
• #a8at Para
• /elan *an&
• 'a& *an&
• )oha $andi
672
'his survey althou!h carried out 8ith fullest possi"le efforts and devotion, the
limitation of the time, resources availa"le and limited area chose may lead to limited
representation of the universe. 'he ma&or limitations from 8hich the study suffers are
as follo8s.
'ime ConstraintH;
'ime factor has "een a very "i! limitation in the researchBsurvey li:e this. 'he
retailers have limited time so they sometimes refuse to ans8er the (uestionnaire, also
me as a surveyor has less time to conduct the survey. So the si?e of the sample 8as
restricted to !ra.
/iasness in InformationH;
It 8as felt that retailers did not come up 8ith true responses, in several cases the
retailers ans8ered the (uestions 8ith the help of other mem"ers and it 8as mostly in
+inancial ConstraintH;
'he financial aspect, 8hich includes the travelin! cost, cost of administratin!
(uestionnaire and collection of data throu!h other resources 8as also costly.
673
re!ressions etc., could not "e adopted due to the constraint of time and efforts. So,
C7apter @
"ata #nterpretation
&
%rap7i2al analysis
674
!arag, 5=D
0ther, 7<D
Amul, ==D
#nterpretation3
;; #erce&" c$&*-er *e A-* J <0 #er ce&" *ed $"her !&d
675
50%
=<D 48%
47%
?=D
40%
?<D 38%
3!%
7=D 32%
7<D 28%
25% Amul
6=D 22% !arag
20%
6<D 0thers
5=D
2%
5<D
=D
<D
$hee Milk (utter /heese
#nterpretation3
A-* Dhee *ed c$&*-er <=C5 P!r! Dhee *ed =0C !&d
$"her 48C. M', *ed by c$&*-er =8C A-*5 =;C P!r! !&d
$"her 47C. B*""er *ed by c$&*-er <8C A-*5 =C P!r! !&d
40C $"her.
670
)o, 6<D
Hes, ;<D
#nterpretation3
671
80%
;<D
70%
!8%
B<D
!0%
<D
=<D
40%
?<D Amul
32% !arag
30%
7<D
20%
6<D
5<D
<D
Iuality (rand !rice aste
#nterpretation3
!"'/'ed 40C. Br!&d #re/erred by c$&*-er e.. 68C A-* !&d <=C
P!r!. Pr'ce !"'/!c"'$& +'"h c$&*-er 70C A-* !&d <0C P!r!.
67
><D
85%
80%
;<D
75%
75%
70%
B<D
!0% !0%
<D
55%
Amul Hes
=<D
45%
Amul )o
40% 40%
?<D !arag Hes
30% !arag )o
7<D
25% 25%
20%
6<D
5%
5<D
<D
aste !rice !acking Style Iuality
#nterpretation3
ll consumers satisfied 8ith their product and some consumer chan!e product
'aste "y consumer mul 7> and no27> and Para! 8ith satisfied 45> and not
67
satisfied 45>. Price "y consumer mul 37> and no17> and Para! 8ith satisfied 47>
and not satisfied 07>. Pac:in! "y consumer mul 25> and no15> and Para! 8ith
satisfied 15> and not satisfied 25>. uality 8ise mul 65> and no 5> and Para!
RETA#!ER ANA!$S#S
h'her
!arag, 6<D
0ther, 7<D
Amul, =<D
667
#nterpretation3
II. Re!$&
20%
!acking style 80%
30%
(rand 70%
!arag
32% Amul
aste !8%
40%
!rice !0%
666
#nterpretation3
mul dairy products Pac:in! Style 8ise "y consumer 7>, Para! preferred
27>. /rand preferred "y consumer e.!. 17> mul and 37> Para!. 'aste preferred "y
consumer 0> mul and 32> Para!. Price 8ise "y consumer 07> mul and 47>
Para!.
5<<D
><D
40%
;<D 48% 47% 50%
B<D
<D 0thers
22%
=<D 2%
!arag
20% 25%
?<D Amul
7<D
38% 3!%
6<D 32%
28%
5<D
<D
$hee Milk (utter /heese
662
#nterpretation3
ll consumers Preferred 8ith their product and some consumer chan!e product
'aste "y consumer mul 7> and no27> and Para! 8ith Preferred 45> and not
Preferred 45>. Price "y consumer mul 37> and no17> and Para! 8ith Preferred
47> and not Preferred 07>. Pac:in! "y consumer mul 25> and no15> and Para!
8ith Preferred 15> and not Preferred 25>. uality 8ise mul 65> and no 5> and
663
C7apter B
'&d'&5
*e"'$& J
c$&c*'$&
(#N"#N%S
664
6. 'he company caters to the Indian palate, 8hich is its primary driver of
adopted "y mul Para! Dairy to capture a si?ea"le mar:et share of the
adopted "y mul India Pvt. )td. hat other efforts must the company ta:e to
3. Dairy "ased Products contri"ute a ma&or share of the revenues of mul. *iven
the competitive scenario in the Dairy Products in India, 8here competitors such
as Para! Dairy are introducin! several innovative products, 8hat measures must
665
RECOMMENDATIONS
channel i.e. 8hole seller, distri"utor, retailers 8hich 8ill "oost the "rand ima!e.
1. Company should chec: the mar:et real position help the trainees
channels@ i.e.
X <oardin!s
660
C&'CLUI&'
I have studied and analy?ed the Dairy "ased food Product $ar:et of Amul &
Parag Dairy Products at Agra on different aspects of the mar:ets, outlets, distri"ution
consumers. 'he survey 8as conducted in various areas of !ra city 8ith !reat
enthusiasm. 'his pro&ect report Concludes that Amul Para! Dairy are easily
availa"le in various parts of !ra. The Parag distribution channel of the Amul is much
strong the most important thin!, 8hich I feel to improve is Ythe availa"ility to retailers
consumersU.
'he retailers consumers "oth promotes either Amul or Para! Dairy of its
"rands for could "e 8ith re!ard to order processin!, 8arehousin!, inventory
mana!ement transportation@ "esides that shop coverin!, exit from the mar:et "y
the salesmen !lo8 shine "oard, schemes, incentives, pri?es, !ifts, discount, returnin!
$y &o" 8as to ma:e mar:etin! mana!ers a8are of all the pro"lems so that a
661
ANNEKRE
66
;EST#ONNA#RE
@USOMERH A??RESSH
NAME3 #NCOME3
c- %thers
c- /utter d- cheese
a- Res "- =o
#ES%=Z
66
c- Price d- taste
a- Res "- no
RTAILR6 AR6
'AM6 I'C&M6
FIII. #easonZZZZZZZZZZZZZZZZZ
627
c- Cheese d- "utter
e- ny other
#ES%=Z
c- Cheese d- "utter
e- ny other
c- Cheese d- "utter
e- ny other
c- Cheese d- "utter
626
e- ny other
%7ee
C7eese
"a7i
'utter
Mil:
Ot7ers
622
'#'!#O%RAPH$
623
888.!oo!le.com
888.amul.com
888.Para!dairy.com
624