1|P age

A Project Report
On
AmulFed Dairy, Gandhinagar
(A Unit of Gujarat Cooperative Milk Marketing
Federation Ltd)

Submitted to :-

Chimanbhai Patel Institute of Business Administration

Under the guidance of

Mr. Kamal Patel

Submitted by:

Name: Raj Rathod

Division: B
Roll No:142
 2|P age
s
PREFACE

As a BBA student and in order to get practical knowledge in field of management, we are
required to make a report on ‘AMUL’.

The basic objective behind doing this is to get knowledge tools of different tools of
management.

In this project report we have included various concepts, effects, and implications regarding
Amul.

Doing this project report help us to enhance our knowledge regarding the working of Amul.
Through this project report, we understood details of Amul products and its working.
3|P age

ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher Mr. Kamal Patel, who gave
me the golden opportunity to do this wonderful project of business studies on ‘AMUL’.

Secondly, I would also like to thank my friend who helped me a lot in finalizing this project
within the limited time frame.

BBA Sem-2
4|P age

INDEX
Sr. No. Chapters Pg.No.
1. Introduction 5
2. Production Process 16
3. Marketing 27
4. Human Resource 37
5. Finance 45
6. Conclusion 50
7. Bibliography 51
 5|Page

CHAP-1 INTRODUCTION

Company Profile
Name of company: Amul
.
Type of company: Cooperative society

Age: 76 years

Registered address: Amul Fed Dairy, Gandhinagar (A Unit of GCMMF Ltd.)

Plot no. 35, near Indira Bridge, Village Bhat,

Ahmedabad- Gandhinagar Highway.

Dist. Gandhinagar: 382 428

Tel. No.: (079) 23969055/23969056

Fax: (079) 23969059

 6|Page

Amul Case Study-History& present:-

Amul is an Indian dairy cooperative society based out of Anand& Gandhinagar that lies in Gujarat.
The word 'Amul' is derived from the Sanskrit word ‘Amulya’ which means priceless or precious. This
case study on Amul discusses the history of Amul, its business model, revenue, and the key factors
behind Amul's success.

Founded in 1946, Amul is managed by the Gujarat Co-operative Milk Marketing Federation Ltd.
(GCMMF), a cooperative body that comprises 3.6 million milk producers of Gujarat today.

Amul started India's White Revolution that made India the world's biggest maker of milk and milk
products. Amul was founded by Tribhuvandas Patel under the direction of Sardar Vallabhbhai Patel, the
first deputy prime minister of India.

The Kaira District Milk Union Limited was then conceived in 1946. Tribhuvandas headed the
organization until his death in the 70s. He spoke to Dr. Verghese Kurien in 1949 and persuaded Dr.
Kurien to assist in the mission of the White Revolution. Dr. Verghese Kurien is widely considered the
founder of Amul.
 7|Page

Amul-About and Company Highlights:-

Brand Amul

Founder Verghese Kurien, Tribhuvandas Kishibhai Patel

CEO R.S. Sodhi (30 Jun 2010 - Present)
Founded December 14, 1946
Headquarters Anand, Gujarat
Website amul.com
Amul Full-Form Anand Milk Union Ltd.
Revenue INR 38,550 crores (US$5.4 billion), 2020
Managed by Gujarat Co-operative Milk Marketing Federation Ltd.
 8|Page

Amul - Founders and Owner:-

Verghese Kurien and Tribhuvandas Kishibhai Patel founded Amul. R S Sodhi is the CEO of Amul since
June 30, 2010.
Amul is a cooperative brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing
Federation Ltd (GCMMF). Today, it is jointly owned by 36 lakh milk producers in Gujarat, and the apex
body of 13 District Milk Unions spread across 13,000 villages of Gujarat.

Amul Founder- Verghese Kurien

Verghese Kurien was appointed as the Founder-Chairman of National Dairy Development Board
(NDDB), headquartered at Gujarat, India. NDDB is an institution of national importance established by
an Act of Parliament of India. He established the dairy cooperative, Kaira District Cooperative Milk
Producers' Union Limited (KDCMPUL), popularly known as Amul, at Anand, Gujarat. He assiduously
helped Amul throughout the process of producing milk powder through buffalo's milk. This impressive
factor led him to sit at the position of Chairman at NDDB. He is unanimously knowsn as the Father of
the White Revolution
 9|Page

Amul - History and The White Revolution:-

Here's a brief analysis of Amul's history and how Amul contributed to the White Revolution. Amul
cooperative was registered on 19 December 1946 as a reaction to the exploitation of local milk producers
by the dealers and the agents of the main dairy of that time, the Polson dairy. The price of milk was
randomly determined. The government had given monopolistic rights to Polson to collect milk from
Kaira dairy farmers and supply it to the city of Mumbai.

Agitated by this treatment, the farmers of Kaira approached Sardar Vallabhbhai Patel under the
administration of their leader Tribhuvandas K. Patel. Sardar Patel advised them to frame an organization,
i.e., Kaira District Co-usable Milk Producers' Union (KDCMPUL), and supply milk directly to the
Bombay Milk Scheme rather than relying on Polson. He sent Morarji Desai to sort out the issues faced by
the farmers.

Milk collection was decentralized as most of the makers were minor farmers who could provide 1–2
liters of milk each day. Cooperatives were framed for every town.

By June 1948, KDCMPUL had begun pasteurizing milk for the 'Bombay Milk Scheme'. Under the
leadership of Tribhuvandas Patel, Amul celebrated its 25th Anniversary in 1973 with Morarji Desai,
Maniben Patel, and Verghese Kurien.

Amul First Milk Plant in Anand

 10 | P a g e

The cooperative was additionally created and headed by Dr. Verghese Kurien with H.M. Dalaya.
Dalaya's innovation of making skimmed milk powder from buffalo milk for the first time in the world
and then making it on a commercial scale with Kurien's help led to the first modern dairy of the
cooperative at Anand (Gujarat). It competed against many established market players.

Within a short period, the success at the cooperative's dairy spread to Anand's neighborhood in Gujarat.
Thus, five unions in other districts like Mehsana, Banaskantha, Baroda, Sabarkantha, and Surat were set
up by following the approach sometimes referred to as the 'Anand pattern'.

In 1970, the White Revolution of India began. In 1973, the Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF), an apex marketing body of these district cooperatives, was set up to combine
forces and expand the market while saving on advertising and avoiding internal competition. The Kaira
Union, which had the brand name Amul with it since 1955, transferred the name to GCMMF.

Since then, GCMMF has become the largest food products marketing organization in India. It is the
leading organization of dairy cooperatives in Gujarat. GCMMF is responsible for the exclusive marketing
of products falling under 'Amul' and 'Sagar' brands.

Over the last five and a half decades, dairy cooperatives in Gujarat have created an economic network
that links more than 3.1 million village-manufactured milk products with millions of consumers in India.
 11 | P a g e

Vision and Mission of the company:-

Amul is a brand managed by GCMMF

VISION

• To provide more and more satisfaction to the farmers, employees and the distributers.

MISSION

• To Satisfy taste and nutritional requirements of its customers.

Products of the company:

Well know products:

• Amul butter

• Amul milk

• Amul ice cream

• Amul butter milk

• Amul cheese
 12 | P a g e
Other products:

• Amul kaju katri

• Amul pav

• Amul bun

• Amul butter cookies

• Amul chocolate cookies

• Amul fruity bread

• Amul jeera toast

• Amul milk bread

• Amul milk toast

• Amul whole wheat bread

• Amul pizza base

• Amul multigrain bread

• Amul kesar peda

Locational Aspect of Amul:

Factors that Amul management keeps in mind during facility location layout:

Primary Factors:

• Supply of raw material.

• Nearness to the market.

• Transport facility.

• Supply of labour.

• Availability of power.

• Supply of capital.
13 | P a g e

Secondary factors:

• Proximity to customer.

• Policies of management.

• Plant location.

• Total cost.

• Volume of production.

• Availability of floor space.

• Nature of manufacturing process.

So, the above mentioned are the locational advantages considered by Amul.

Awards and Achievements of Amul:

• GCMMF received Bronze Trophy at the Indian Marketing Awards – 2014

• GCMMF – Finalist in World Beverage Innovation Awards - 2014

• GCMMF received APEDA Awards for 16 years continuously
• Amul wins World Dairy Innovation Awards - 2014
• Amul receives Srishti Good Green Governance award for the year 2013
• GCMMF Receives Prestigious CNN-IBN Innovating for a Better Tomorrow Award
14 | P a g e
• Shri R S Sodhi, MD-GCMMF, receives prestigious QIMPRO GOLD STANDARD
Quality Award 2013
• GCMMF wins the SAP Award for Customer Excellence (SAPACE) 2013 under the
category of "Best Run Award in Finance"
• ET-Corporate Citizen Award of the Year 2010-11 to GCMMF
• Amul receives Green Globe Foundation Award
• Dr. V.Kurien honoured with Life Time Achievement Award
• GCMMF receives Srishti's G-Cube Award - 2010
• Amul Bags International Dairy Federation Award
• Amul Bags Srishti G-cube Award For Good Green Governance - 2009
• Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit
• Ramkrishna Bajaj National Quality Award - 2003
• Qimpro Gold Standard Award - 2003
• Amul - The Taste Of India (GCMMF) Receives International CIO 100 Award For
Resourcefulness
• Rajiv Gandhi National Quality Award – 1999
15 | P a g e
16 | P a g e

CHAP-2 PRODUCTION PROCESS

• Collection of raw milk

• Pasteurizing and Standardizing

• Separation Process

• Quality Check

• Packaging Process

• Storage

• Amul Supply Chain

• The flow chart of process of making ice cream

 17 | P a g e

1. Collection of Raw milk

Raw milk is collected from different co-operatives of Gujarat.

About 12,22,000 liters of raw milk is collected per day. Before
This milk 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 AHEMDABAD with the help of trucks. After
Collecting the samples of milk they are taken to the laboratory where
Two types of test are conducted.

1). ELECTRONIC MILK TEST

Before pasteurizing the milk the samples are taken to the laboratory. In the laboratory with the
help of machine called electronic milk tester, the proportion of SNF & FAT is checked with
phosphate solution. When the color of the milk become yellow, it is sent for pasteurization.

2). METHYLINE 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 METHYL solution is added to it. It is then kept under water at 57 degree Celsius.
After one hour if the solution losses its color then it is called raw milk. If the solution remains the same
even after 5 hours than it is considered fresh milk, which remains constant for a long period of time.
 18 | P a g e

The dairy fixes the proportion of SNF & FAT.

Milk SNF FAT

BUFFALO 9% 6%
COW 8.5 % 4.5 %

After laboratory gives green signal and conforming the raw milk at reception dock is brought into
the house connected with pump is sent to the milk processing plant. This is then chilled below 4 degree
Celsius and then stored in the milk silos. After that milk is processed which has two steps (Pasteurizing
and Standardizing)
 19 | P a g e

2. Pasteurizing and Standardizing

To pasteurize the milk means to kill the germs in the milk by a particular method which was invented by
a scientist called JAMES PASTEUR and so the name pasteurization. In the pasteurization method the
milk is first heated at 72 degree c to 76 degree c for 15 seconds and then it is immediately cooled below 4
degree 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 milk might contain germs.

After this process some milk goes to eparator machine and remaining is proportionately sent for
standardization.

STANDARDIZATION process bifurcates the milk in 3 categories varying according to the SNF & FAT
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 = pasteurized + Standardized

Pasteurized Standardizer
 20 | P a g e

3. Separation Process
Separator machine separates two kinds of products, skimmed milk and cream, through channels. There
are 100 disks fixed in separator machine, which revolve at 5000 rpm/revolution per minute). It is taken to
the tanks, which has the capacity of 20000 liters. 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 to the quality Assurance laboratory of the dairy plant. With in 14 seconds the
FAT & SNF proportion is received regarding 30 lack liters of milk. The total investment put into the lab
by the dairy plant is Rs. 6 crores.

The laboratory only checks and analyses the powder, milk and

thee. There is a separate ice cream analyzing laboratory.

 21 | P a g e

5. Packaging Process
After the milk is sent for the packaging to the milk packing station in the dairy plant. In the milk
packaging stations there are huge pipelines and behind them there is polyfil machine from which the
material 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 is temperature ranging from 5 degree c to 10 degree c, it is maintained with the help of
exhaust fans having silicon chips. About 40000 liters of milk is dispatched from the cold storage of the
dairy plant everyday. The damaged pouches are kept aside and the milk is once again put to the tank.
 22 | P a g e

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 raw material i e. condensed milk is put into the first floor of the plant along with air at 200
degree c. By this process the remaining water, which the condensed milk might have retained is also
evaporated and milk comes as powder but this is not the last stage. This powder is again put into a
machine called calandaria, where it is turned into a real milk powder. Its capacity is around 1000 liters
per 15 minutes. Then again the milk powder is put into a Dense Waise Vessel. Here the lumps are
removed and the uniform milk powder is sent up.

After processing the milk powder is sent for quality checking at quality assurance laboratory. After the
quality confirms the milk powder is differentiated by adding different flavors to them like elaichi,
chocolate, and sugar free powder. There after they are packed in tin & boxes. Afterwards it is stored at
storage department.
 23 | P a g e

Direct retailing

Amul has recently entered into direct retailing through "AMUL utterly
delicious" parlours created in major cities.

AMUL has plans to create large chain of such outlet to be

managed by franchisee through the country.
24 | P a g e
25 | P a g e

Some of the machines used for production process are:

• Milk reception lies

• Milk chillers

• Milk pasteurizers

• Homogenizers

• Cream separators

• Stando meter

• Milk silos

• Horizontal milk storage tanks

• Cream pasteurizers

• Milk packing machines

• Conveyer belts and chains

• Crater and washers

 26 | P a g e

THE FLOW CHART OF PROCESS OF MAKING ICE CREA

 27 | P a g e

CHAP-3 MARKETING

Amul is one of the most popular and successful brands in India. With its wide range of dairy
products, Amul has now become a household name in the minds of Indian families.

I’m sure that we all have at least one of Amul’s products in our house. It has elegantly created its family-
friendly and patriotic image with its, “Amul – The Taste of India” marketing jingle which also evokes
empathy towards the brand.

The first time that most of us came across Amul was when the catchy tune of ‘Amul Doodh Peetha Hai
India’ rang from the television. Though many of us were really young at that time, ever since we grew
up, whenever we encounter some variation or the other of the same tune, it never fails to evoke a
melange of memories.

Anand Milk Union Limited., also known as Amul, is a 75+ years old brand, which is still a market leader
when it comes to dairy products. Amazing, isn't it?

Some brands are, for a long time successful, but few managed to touch our hearts, and Amul is one such
brand that truly touched our hearts and etched its long-term success out on it.

How did Amul manage that?

The answer is the quality of the Amul products, their innovation, and its marketing strategies no doubt.

When the Covid-19-induced lockdown marred many companies and disrupted their marketing strategies,
sales and revenues, Amul managed to come up with a turnover of Rs 53,000 crore. Furthermore, the
brand also successfully added 60 new products to its inventory along with donating Rs 800 crore to the
rural farmers. Amul in 2022, is aiming to clock Rs 60,000 crore and is eyeing to achieve the Rs 1 lakh
crore mark in sales by 2025.
28 | P a g e

Amul Marketing Strategies [Infographic]

 29 | P a g e

Amul Marketing Strategies [Detailed]

1. Amul's Branding as 'The Taste of India' & Amul Girl as Mascot

The first aspect of its marketing strategy of Amul is branding. What has primarily led to the success of
amul is undoubtedly its Branding strategies. We are all aware of Amul’s tagline- ‘The taste of India’. The
tagline banished the notion that bread and butter are a staple of only the British breakfast and pulled
nationalism in. The never-ageing girl who wore a polka-dotted dress, with blue hair and an orange face
was the company’s icon. Amul marketed all of its products under a single name, which helps the brand
sum up its marketing and advertising costs within 1% of the revenue.

2. Amul’s Product Portfolio adds to its Marketing Strategy

Amul uses an umbrella marketing strategy. With the Amul Girl campaigns and their constant content
marketing efforts, their marketing strategies are always on point.The second aspect of Amul's marketing
strategy is its product portfolio. Amul’s variety of products caters to a large audience. While certain
brands such as London diary, Baskin Robbins, etc., managed to capture a few regional (ice cream)
markets where they cater to high-end customers, Amul secured their standing in the overall dairy
market. Their main target audience was, however, the middle and economic classes. The simple
reason behind their retention of customers is because of the product pricing, which is discussed next.
 30 | P a g e

AMUL PRODUCTS.

3. The 25 percent of Amul's Advertising Strategy

We reached the final aspect of Amul’s marketing strategy, 25% of Amul's advertising strategy. Without
advertising, the target audience wouldn’t be aware of the existence of the product. Amul was (and still is)
in the Guinness record for running the longest-ever advertising campaign. The butterly girl is thirty-nine
years old now, though she certainly didn’t appear to be! Top-of-the-mind positioning was achieved by
Amul, meaning Amul was first thought of when it came to dairy. The butterly girl appeared in
hilarious topical representations involving butter and current affairs!

Amul also came up with several taglines such as ‘Amul Doodh Peetha Hai India’,’ Har Ghar Amul
Ghar’,’ Pehla Pyaar Amul Pyaar’, and so on in its short advertisement videos. Every advertisement
was guaranteed to make you chuckle appreciatively at its wit, warm your heart, or tickle your funny
bone.

4. Amul Girl - Advertising Mascot of Amul

The well-known mascot of Amul - 'Amul Girl' is a cartoon of a

young Indian girl dressed in a polka-dotted dress with blue hair
and a half pony tied up. The Amul Girl's first advertisement
portrayed the Amul product - Amul Butter as 'Utterly Butterly
Delicious'. This was a total hit!

An interesting story behind this - The Amul girl was created as a

response to Amul's rival brand Polson's butter- girl. This sales strategy of Amul was conceived in
1967 once ASP (Advertising, Sales, and Promotion) clinched the brand portfolio from the previous
agency FCB Ulka. The Amul girl has been the face of Amul since 1966 and is considered the longest-
running advertising campaign.
 31 | P a g e

5. Amul’s Digital Marketing Strategy

In this increasingly digitized world, every brand needs to revamp its marketing strategy. Amul
too has cut down its expenditure on TV Ads and has started focusing more on the online form of
advertising just like its competitors.
But before that let’s have a look at its social media presence from the below table.

Amul on Youtube

Amul is also present on Youtube and it enjoys about 4,03,000

subscribers on its official youtube channel called, Amul The
Taste of India. However, On Youtube, it puts out
advertisements that are previously aired on television.

Although, during the Covid-19 pandemic when the country

was in lockdown, Amul started a new campaign called
Simple Home Made Recipes that was also promoted as
“#SimpleHomeMadeRecipes”.

More about this campaign will be covered in the next section of the case study. So this is how Amul’s
digital marketing strategy has played out.
 32 | P a g e

6. Marketing mix

The marketing mix is the combination of factors a company can control in order to influence its
customers to purchase its products and services. It usually includes the four Ps: product, price, place, and
promotion.

• Product

Amul offers the widest range of dairy products, including ghee, butter, milk, chocolates, cheese, sweets,
milk powder, ice cream, yogurt, buttermilk, bread spreads, etc. The quality, as well as the taste of Amul
eatables, is unparalleled.

• Pricing

Amul enjoys the reputation of being an affordable dairy brand. While the rates offered by other FMCG
brands have fluctuated massively with the waves of inflation, Amul has managed to keep its prices in
tune with people’s expectations. Over time, this has made Amul a trusted choice for dairy products.

• Place

Owing to its massive and well-managed distribution channel, Amul has gained popularity all over the
country. Amul products enjoy a pan-India distribution. The brand manages this through the two channels
of acquisition and distribution. Amul also has its own showrooms and has expanded into eCommerce and
omnichannel retail as well.

In addition, it has thousands of exclusive distributors, who enjoy a lucrative ROI. Owing to its robust
marketing and distribution strategies, Amul managed to launch a range of new products in 2021, despite
the COVID-19 pandemic.

• Promotion

Amul takes timely digs at important international and national as well as global issues. These topical ads
are well-designed, and they convey the message in humorous and witty ways.

Affordable and good-quality products, innovative promotional methods, and sincerity towards customers
are what have contributed to the success of Amul’s marketing strategy. It has undoubtedly reached every
corner of the country. In addition, Amul’s topical ads are extremely relevant and likable, and its catchy
ad copy allows the brand to be etched in the audience’s minds.
 33 | P a g e

7. Segmentation, Targeting and Positioning (STP) Analysis of

Amul

Amul is a brand that has something for everyone in its product range. Let’s have a look at how Amul has
worked through the three strategies to become a billion-dollar brand.

Segmentation
• Customer-based Segmentation: Kids- Amul chocolates, Amul Kool drinks, Amul Butter, Amul Lite
butter, Amul Pizza Cheese, Regular cheese, Cheese spreads, Amul milk powder, Nutra Amul
• Industry-based segmentation: Milk- Ice cream manufacturers, Restaurants/food chains, cafes, and
Coffee shop chains. Butter, Cheese, Ghee- Indian households, Bakeries and Confectionaries, street
vendors, and snack shops.

Targeting
The value-for-money brand has established its image by being a product that is easily available,
affordable, and surpasses the quality of other brands, thus, targeting the entire demographic be it urban or
rural. It has targeted kids, adults, and industries, all together under its product umbrella.

Positioning
What comes to your mind when you say butter? It's obviously Amul as it has positioned itself as the
national butter and consumers’ first, and sometimes the only choice. Campaigns like “The Taste of
India” have added an emotional quotient to its marketing, and vouches for itself as a family
product in every household. Value for money, quality, and availability are other crucial attributes
that have positioned Amul to where it stands today.

8. Amul's Low-Cost Pricing Strategy

The third aspect is product pricing. It is one of the best promotional strategies adopted by Amul. It
opted for a low-cost pricing strategy for products that are consumed regularly. This pricing strategy of
Amul made it affordable for its target audience. Increasing the price of goods proportional to their
audience’s increase in income helped them retain their customer base. A competitive pricing strategy,
such as a one-on-one offer, was adopted for products facing heavy competition.
 34 | P a g e

One such product line is ice cream. As Amul is a co-operative, it aimed to get the best price for the
producer as well as the consumer, unlike certain companies that focused only on profit. But being an
FMCG company surely involved a well-planned production, storage, and distribution network which is
expensive. Yet Amul sold goods at affordable prices. How did they do that?

A well-planned and executed logistics and supply chain model was incorporated. Amul was a three-tier
cooperative structure.
• At the village level, there were cooperative societies producing milk.
• At the district level, there were milk unions with processing centres.
• At the state level, there were milk federations responsible for consolidation.

This transparent model led to maximum returns for the suppliers- the farmers. As the prices increased,
their income accordingly increased as well. Also, co-operatives are one big family. Surplus products
were sent to areas with high demand and vice versa. So, that was the Amul distribution strategy. All the
above-mentioned factors were 75%. Without the 25%, 75% was as good as zero. So what was the 25%?

9. FAQs

1. What is the Amul business model?

The Amul Model of dairy development is a three-tiered structure with the dairy cooperative societies at
the village level federated under a milk union at the district level and a federation of member unions at
the state level.

2. What is the Amul slogan?

The Amul slogan says, 'Utterly Butterly Delicious'.

3. How Amul is using the power of Marketing?

From a low-cost pricing strategy to reaching every nook & corner of the country, Amul's marketing
strategy has no bounds. The most popular Amul Girl to its ad campaign - 'Amul Doodh Peeta hai India'
Amul has won the hearts of many through these popular advertisements. Amul has reduced its reliance
on TV and is seen across various social media platforms now.
 35 | P a g e

4. What is the target market of Amul?

Amul has a very wide target market. Amul is considered a brand for the entire family. Its target audience
starts from consumers aged 5 to people in their 70s. Amul caters to all income groups.

5. Why Amul is a Successful Brand?

Amul has a well-planned and executed logistics and supply chain model. Amul's low-cost pricing
strategy, which was affordable by any income group, was one of the main reasons for its success. Amul’s
tagline- ‘The taste of India’, banished the notion that bread and butter are a staple of only the British
breakfast and brought nationalism into it.

6. Why was the Amul girl created?

The Amul girl was created as a response to Amul's rival brand Polson's butter-girl. This sales strategy of
Amul was conceived in 1967 once ASP (Advertising, Sales, and Promotion) clinched the brand portfolio
from the previous agency FCB Ulka.

7. What is the market share of Amul?

Amul is said to have clocked a growth rate of around 30% and has a market share of 86%.

8. What is the tagline of Amul?

Amul's tagline is 'The Taste of India’

10. Amul Target Customer (Two Segments)

Amul targets those customers who need a good quality product at an affordable cost. The brand creates
products for everybody that’s why we have divided its target audience into two segments. Amul smartly
plans marketing strategies for both of these audiences.
 36 | P a g e

• Business to Consumers (B2C)

Amul created products for every age group based on their interests and choices. Here are the names of a
few products.

kids Amul milk, chocolate, Amul kool,

Nutramul
youth Amul Pizza, Amul cheese Spread,
Amul Pizza Cheese
Heath Amul lite Butter, Nutramul, Amul
Conscious shakti, sugar/skimmed milk powder

• Business to Business (B2B)

In T.V. advertisements, we generally see Amul focusing on the B2C market. But in reality, the brand has
a special interest in the B2B category. B2B category people buy products in bulk and are regular
customers that’s why they are very important for the company.

milk Restaurants, ice cream manufactures,

Tea & Coffee Cafes, and local food stalls

Butter, Restaurants,
Ghee, Bakeries,
Cheese, Food stalls,
Paneer Etc.
 37 | P a g e

CHAP-4 HUMAN RESOURCES

Human resource department- AMUL

MAJOR FUNCTION OF HUMAN RESOURCE DEPARTMENT

1. Recruitment and selection

2. Training and development

3. Performance appraisal

4. Salary and wage administration

5. Employee turnover

6. Compensation

7. Industrial relation

8. Factory act

9. Industrial dispute act

10. Human resource information system (HRIS)

 38 | P a g e

Organizational structure

Managing Director
|
General Manager
|
Assistant General
|
Manager Officers
|
Clerk
|
Peons

AMUL Dairy Recruitment

There are two types of Recruitment sources followed by AMUL:

• INTERNAL SOURCES
• EXTERNAL SOURCE

INTERNAL SOURCES: Internal sources include personnel already on the payroll of the
organization.

• Present Permanent Employees

• Employee Referrals
• Former Employee

EXTERNAL SOURCES: These sources lie outside the organization in AMUL they consider following
sources for recruitment:

• Campus Interview
• Unsolicited Application
• Application Blank
• Placement Agencies
 39 | P a g e

Selection procedure is concerned with securing relevant information about the applicant. The main
objective of selection process is to determine whether an applicant meets the qualification for a specific
job and choose the application that is most likely to perform well in the job. The Selection process in
AMUL is as under

Vacancy in any department

|
Approval from M.D
|
Advertisement
|
Collection of application
|
Securitize the application
|
Interview
|
Medical check-ups
|
Selection

After selection, the employees generally have probation period. In AMUL probation period is different
for different type of employees. Probation period for officers is 12 months, 6 months for clerical
employees and 3 months for workers

TRAINING AND DEVELOPMENT

Definition: It is a subsystem of an organization. It ensures that randomness is reduced and
learning or behavioural change takes place in structured format.

Training is the process where the work related knowledge, skills and attitude are given to new
employees. By which they aware the policies rules and increase technical and manual efficiency and
create of responsibility.

AMUL has accepted three methods for the training

 40 | P a g e

TRAINING PROCEDURE IN AMUL

Identification of need of Training
|
Module Preparation
|
Selection of Employee for the Training
|
Training
|
Feedback

AMUL HAS ACCEPTED THE 4 METODS OF TRAINING

1. On the job method

2. Off the job method

3. In house training

4. Out house training

Training and Development programme of AMUL is an ongoing programme since its inception as it
believes the development of the institution lies in the development of the people-producer members. It
organizes various training programmes based on the need and a few of these are as follows:

• VMS Workshops:
 41 | P a g e

This programme aims at to create a document on Vision, Mission and Strategy for Village Dairy Co-
operative Societies. This process has helped to involve and develop dairy farmers for their future
planning and review of the growth thereby improve their income and quality of life.

• Amul Celebrates World Milk Day

This programme aims at bringing together all members, including Chairman, Management Committee
Members and respective producer members of Dairy Co operative Societies to identify and solve their
problems. This programme is uttended bythe respective Board of Director and Chairman from the
District Union, Internal Consultant of Co-operative Department of District Union.

• AMUL Darshan:

This programme aims at exposing producer members to various facets of dairy operations to keep them
informed and aware of the development and adopt to good management practices in production of milk.
The exposure visits include visit to Canle Feed Plant, Dairy Plant, Chocolate Plant, Dairy Demonstration
Farm and presentation by the Co- operative Development Group.
 42 | P a g e

• Management Development Programme:

This programme aims at capacity building of Secretaries of Dairy Co-operative Societies in better
management and maintenance of ISO standards. For the Management Committee Members, it imparts
training on management strategies, co-operative laws and their roles and responsibilities.

• Zonal Meeting:

This programme aims at review of internal audit on Quality Management System and Cleanliness of
Dairy Co-operative Societies for continuous improvement. This helps in knowing achievements and
identifying grey areas for improvement

• Village Group Discussion:

It aims at encouraging discussion among dairy farmers on scientific animal husbandry practices and its
application. The discussions are facilitated by the Internal Consultant of District Union

• Awareness and Refreshers Training:

It aims at training of Dairy Co-operative Society personnel on Quality Management System in order that
the ISO is effectively followed.

• Dairymen Training:

This programme aims at building managerial skills of progressive farmers who have more than five
milch animals to bring more success in their dairy husbandry.

• Development Review:

This programme aims at District Union's review of the comparative progress of five year programme of
Dairy Co-operative Societies and suggests remedial measures

• Self-Managing Leadership Programme:

AMUL undertakes Self Managing Leadership Programme for women resource persons through
Brahmakumari Iswariya Vishwa Vidyalaya at Mt. Abu to bring a value based approach in
development process.

• AMUL Patrika:

It is an in-house Newsletter distributed monthly to producer members to strengthen their knowledge on

scientific animal husbandry practices, quality of milk and sharing success stories.
 43 | P a g e

PERFORMANCE APPRAISAL

Performance appraisal is the process of evaluating the performance and qualification of employees in
terms of the requirement of the jobs for which they are employed. It is highly useful in making decision
regarding the promotion, transfer, wage and salary administration

Promotion period Appraisal

1 year Managers
3 Year Officers
1 Year Workers
1.5 Year Temporary Works

In AMUL various attributes consider for the appraisal of employee.

• Job knowledge

• Work output

• Quality of work

• Interest in work

• Initiatives

• Past records

• Seniority

This appraisal is also the rating scale Method appraiser also appraised employee by
following:

• Outstanding

• Good

• Satisfactory

• Poor

The overall assessment is done through above rating and also the comment of reviewing officer is
included. Apart from this the performance in liked allowance is provided in relation
with performance that is
 44 | P a g e

➢ 25%

➢ 50%

➢ 100%

➢ Not allowed

Generally, in AMUL on base of performance appraisal employee of managerial level gets

specials allowance. While for workers they get promotions.

COMPENSATION

In Amul, The workmen's Compensation Act. 1923 is very well executed. The compensation
is given lo employees as per the Act.

In the case of major accident occur in organization and if any worker gets injure that lime organization
take care of that employee.

If the employees under medical treatment and unable to came in organization for job, then half salary will
be given to that employee until he she will again Join organization. Employee also gets all incentives
during this period. Union provides complex expanse of medical treatment to his/her employees.

They have a provision for that amount in welfare fund. For that a report from surgeon is considered. In
case of minor accident, if any employee gets injure that time disability certificate take as an evidence for
the payment of compensation. According to disability certificate union decides the compensation.
Disability certificate must be issue by doctor from civil hospital.

According the Act, if accident takes place because of worker mistake than he she will be unable to get
compensation. But in AMUL even if accident occurs by workers mistake in that case union paid
compensation according to injury. For that employees must past through medical report. In case of
accident, if worker get serious injury and he she will be unable to do same work after getting recovery
than management give them relief by transferring them in another section for suitable work. By this way
they retain their employees.
45 | P a g e

CHAP-5 FINANCE

Equity:

• Amul is not a listed company.

• It only gives shares to the farmers who supply Amul with milk.
• There is a minimum limit for a supplier to become eligible to acquire share. i.e. supplier
has to supply minimum milk decided by Amul.
• Shares are given to members according to their quantity of supply. i.e., there is direct
relation between quantity of milk supplied and shareholdings.
• Furthermore, anyone except the supplier could not hold its shares.
• The company also gives dividend to the shareholders.
• When members are in need of loan for buying cows and buffaloes they can approach to
Amul if they are shareholders.

TURNOVER
 46 | P a g e

THE WAY OF AMUL ABOUT CSR

Corporate social responsibility (CSR) has her defined as the commitment of business to contribute
sustainable economic development working with employees, their families, the local community, and
society at large to improve their quality of life, in ways that are both good for business and good for
development. To meet with the CSR it is expected that a business in its entire procurement-production-
processing making chain should focus on human development involving the producer, the worker, the
supplier, the come, the civil society, and the environment.

Indeed, a very tough task Most business would certainly founder in not being able to achieve at least one
Or many of those expectations. But AMUT. has shown the way

CSR-sensitive Organisational Structure:

AMUL is a three tier co-operative organisation. The first tier is the co-operative society at the village.of
which milk producers a voluntary members, managing the co-operative through a democratically elected
9 member managing committee, and dung business by purchasing milk from members and selling it to
the district level co-operative. There are more than 11.000 co-operatives in villages of Gujarat.

The second tier is the district co-operative that processes milk into milk products, markets locally and
sells surplus to the state co-operative for national and international marketing. There are 12 district co-
operatives each being managed by a 15-member board elected by the college comprising the nominated
representatives or chairmen of the village co-operatives.

Third tier is the state level co-operative the Gujarat Co-operative Milk Marketing Federation (GEMMF)
responsible for national and international marketing of milk, and milk, products produced, and soul in it.
The GCMMF is managed by the board democratically elected by and from amongst the chairmen of the
district co-operatives

The entire three-tier structure with the OCMMF at its apes, is a unique institution because it encompasses
the entire cham from production of raw material to reaching the consumer with the ad product. Every
function involves an intervention 23,00 lakh primary milk producers: 35,000 rural workmen in mos than
11,400 village cities, 12,000 workers in 15 dairy plants: 7503 marketing professionals: 10,500 salesmen
in distribution network and 600.000 salesmen in all twerk. Accumulation of human capital is sine qua on
for the development and growth of any emprise or economy. The GCMMP is sensitive towards CSR. It
believes that technology and capital are replicable inputs but not the human capital. Since men are the
basis for achieving the CSR, the GCMMF lays emphasis on their development into competent, courteous,
credible. Reliablie, responsive communicators and performers.
 47 | P a g e

CSR-orientation To Distributors & Retailers:

The GCMM has identified the distributors and retailers are in important link in its vendor supply chain.
Through surveys the GCMMF found that 90% of the distributors do not get any opportunity of exposure
NO latest management practices. The GCMMF realised that it was a corporate social responsibility to
strengthen the care business processes of its distributors in a so keep them in mainstream business and
compete with those with formal mining in management. The GCMMF bas developed and trained all its
distributors through Value Mission Strategy Workshops competence balding. Amul Yeni Arul Quality
Circle meetings, computerisation, and electronic commence activities

FUTURE PLANS

• Amul dairy can venture out on new products like Tonedmilk, Condensed milk that can be used for
Sweets, Baby food products

• There are certain product like Amul dairy fresh fruit and vegetables etc. which are not as popular as
mother dairy ice cream and milk mother dairy must try to understand the cause of this through
thorough market research and work on improving these products

• Though Amul dairy's headings are a huge success, it can penetrate even better in the rural areas by
advertising though the media wise cable channels and newspapers. Sponsoring shows in TV. sports
events can be of great help.
 48 | P a g e

Expected revenues:

Gujarat Cooperative Milk Marketing Federation, which markets dairy products under the Amul brand,
will invest Rs 600-800 crore this fiscal in setting up new milk processing plants and expanding capacity
of existing units, the company's Managing Director RS Sodhi said.

GCMMF, which posted 13 percent increase in turnover at Rs 33,150 crore during 2018-19, is expecting
20 percent increase in its turnover this fiscal year at around Rs 40,000 crore, he added.

"We will invest Rs 600-800 crore during this fiscal on capacity expansion. We invest similar amount
every year," Sodhi told PTI. The company is looking at setting up new plants in locations that are closer
to the Delhi-NCR market, he added.

On turnover, Sodhi said, "In the last financial year, our revenue growth was because of higher volume
and there was no price increase across our product portfolio. But, in this year we are expecting growth in
both volume and value terms". Amul has recently increased its milk prices by Rs 2 per litre in Delhi
NCR, Maharashtra and other states due to higher procurement cost. It had last revised milk prices two
years back in March 2017.

Recently, GCMMF had said that the provisional unduplicated group turnover of Amul Federation and its
18 member unions crossed Rs 45,000 crore in 2018-19, an increase of 13 percent from the previous year.

The 18 member unions of Amul Federation, with a farmer-member strength of more than 36 lakh across
18,700 villages of Gujarat, are procuring, on an average, 230 lakh litre of milk per day.

The member unions of Amul plan to enhance the milk processing capacity from the current level of 350
lakh litre per day to 380-400 lakh litre per day in the next two years.

Society welfare:
‘In five years’ time, dairy wishes to achieve the target of providing 100 per cent toilet facilities in all
villages where Amul has a milk society.

Future prospects:

Amul is witnessing tremendous growth in past years.

The best is yet to come.

 49 | P a g e

Expansion:
 50 | P a g e

CONCLUSION

AMUL dairy is determined to provide better services to farmer members and pay good prizes for
milk to its members and continue supply good quality of milk, ghee, butter, cheese, paneer, sweet, ice-
cream, lassi, basundi, buttermilk, chocolates, cold-flavored milk, etc. They always try to provide best and
hygienic quality of product to their customers. The price of their products is responsible so any people
can buy it. They maintain their processing plant very well. They have modem machinery and technology.
The union is making reasonable profit to enable dairy to distribute profit to farmers through society. The
coordination and confidence in the management shows the bright future go the union. AMUL Dairy also
presents new and tasteful items. They give employment to many people. Because of their company many
people get employment like farmers, workers, etc. They provide good services and products in the
people. In short AMUL dairy has been able to strike a proper and effective balance between the
increasing expenses and comparative revenues without compromising on the quality of the product.
When I went at AMUL. Dairy and visited, it was wonderful experience. I got much knowledge about
dairy product. During making this report I knew that the AMUL Dairy is best organization
51 | P a g e

BIBLIOGRAPHY

• Industrial visit to Amulfed Dairy

• https://www.theweek.in/theweek/business/2019/05/03/how-amul-plans-to-go-beyond-dairy-
sector.html

• http://www.foodprocessing technology.com/projects/amulfed-dairy-milk-powder-
production-facility-gujarat/

• www.mbaskool.com

• www.amuldairy.com
52 | P a g e