SUSTAINABILITY FACTORS

1. RESPONSIBLE MATERIAL SOURCING

Dairy cattle are the backbone of the dairy industry, so their well-being is critical. A
healthy animal produces more milk of higher quality. A proactive approach to animal
care is critical for the dairy farm's overall productivity and efficiency.
It is also important for our customers, who are becoming increasingly concerned
about where their food comes from and how it is produced.

1.1 Milk Sourcing

Amul sources approximately 80% of its raw milk from Gujarat, while the
remaining 20% is obtained from various other Indian states. With a total of 31
dairy plants strategically positioned across the country, including 13 in Gujarat, 4
in the Delhi/NCR region, 2 in Uttar Pradesh, 4 in Maharashtra, 3 in Rajasthan, and
one each in Madhya Pradesh, Assam, Chattisgarh, Jammu and Kashmir, and
Jharkhand, Amul has established a robust and efficient milk sourcing network.
This extensive reach ensures a consistent and high-quality milk supply, supporting
the production of Amul's acclaimed dairy products, which have earned a
prominent place in Indian households.

1.2 COOPERATIVE DEVELOPMENT PROGRAM FOR MILK PRODUCERS

Fertility Improvement Program
Amul's Fertility Improvement Program, implemented across 4,202 villages,
targets the enhancement of fertility rates in animals, benefiting 3.45 lakh
animals. This program is instrumental in increasing the reproductive efficiency of
the livestock, contributing to sustainable dairy farming.

Entrepreneurship Development Program

Amul recognizes the importance of equipping young and educated milk
producers with the skills needed for successful commercial dairy farming. The
Entrepreneurship Development Program has conducted 268 programs, training
17,499 aspiring entrepreneurs in dairy farming and management. This program
not only empowers individuals but also strengthens the dairy industry as a whole.

Clean Milk Production

The Clean Milk Production initiative emphasizes the implementation of a quality
management system and best practices in animal husbandry. This includes
maintaining a high standard of hygiene throughout the entire milk production
process, from the animals' well-being to the delivery of milk to consumers. Key
practices include ensuring appropriate sanitation and disinfection of teats, dairy
equipment, and utensils, as well as using high-quality water and implementing
 mastitis control measures. The quality of dairy products offered to consumers is
intricately linked to these practices, and meticulous attention to hygiene and
equipment maintenance is critical to delivering safe and high-quality milk.

1.3 REDUCTION IN METHANE GAS EMISSIONS

The installation of Gobar Gas Plants, also known as biogas plants, at the
doorsteps of farmers represents a significant shift towards sustainable and
environmentally friendly agricultural practices. This initiative involves harnessing
the power of animal dung to produce biogas, offering numerous benefits for
farmers, the environment, and society as a whole.

Environmentally Friendly Dung Usage

Farmers engaged in this endeavour are actively contributing to environmentally
friendly practices by utilizing animal dung as a valuable resource. Through the
anaerobic digestion of dung, biogas is produced, offering a sustainable energy
source and reducing the environmental impact associated with conventional fuel
sources.

Cost-Effective and Eco-Friendly Fuel

Biogas, produced through this process, emerges as a more cost-effective and eco-
friendly fuel option when compared to traditional alternatives such as LPG,
kerosene, pellets, natural gas, and firewood. The transition to biogas leads to
significant savings on cooking fuel costs for users, easing financial burdens on
households.

Mitigating Methane Emissions

One of the critical environmental benefits of this initiative is the mitigation of
methane emissions. Raw biogas generated from the process contains methane,
carbon dioxide, hydrogen sulphide, and moisture. By capturing and utilizing
methane, a potent greenhouse gas, as a fuel source, the project actively reduces
its release into the atmosphere, contributing to a greener environment.

Greenhouse Effect Reduction

Biogas, as a clean and renewable energy source, plays a crucial role in reducing
the greenhouse effect. By displacing the use of fossil fuels, including coal, petrol,
and natural gas, biogas helps lower carbon dioxide (CO2) emissions. Additionally,
it reduces methane (CH4) emissions, thus addressing two critical greenhouse
gases.
 Reduction of Greenhouse Gases
The advantages of biogas extend beyond energy production. For instance, the
installation of biogas plants generating 800 kg/day of methane is equivalent to
mitigating the emission of 20 tons of CO2 daily. Furthermore, replacing petrol
with 800 Kg of Compressed Biogas (CBG) yields an additional reduction of 2.87
tons of CO2 daily, making it a powerful tool in combating climate change.

1.4 OPTIMISING TANKER HOLDING CAPACITY

Increasing the milk holding capacity of milk tankers has resulted in a notable
reduction in CO2 emissions. This improvement in transportation efficiency allows
for larger milk quantities to be carried in a single trip, thus reducing the
frequency of tanker journeys and the emissions of carbon dioxide (CO2). This
strategic enhancement aligns with the broader commitment to environmental
sustainability and emphasizes the collective effort to minimize carbon footprints
within the milk supply chain.

1.5 PACKAGING FILM PLANT

The Packing Film Plant operates with unwavering dedication, striving to meet the
packaging needs of dairy products such as milk, butter milk, and Masti Dahi. This
is achieved through the production of Flexible LDPE (Low-Density Polyethylene)
film, ensuring the safe and secure packaging of these essential dairy items. What
sets this operation apart is its commitment to quality and sustainability, utilizing
food-grade virgin plastic to guarantee the integrity of the packaged products.
Additionally, the plant employs cutting-edge, energy-efficient technology,
reducing environmental impact while maintaining the highest standards of
product protection and hygiene.

2. CUSTOMER SUPPORT
2.1 BUSINESS CONTINUITY
In response to the challenges posed by the unavailability of raw milk due to cattle
diseases and rising production costs at the producer level, Amul Dairy embraced
a resilient approach to maintain business continuity. The decrease in milk supply,
which reached as high as 30% compared to the previous year, prompted
innovative solutions. Amul Dairy strategically incentivized the supply of raw milk
with higher fat content and effectively managed in-house milk solids balancing.
This ensured the uninterrupted provision of value-added products like ice cream
and beverages. These achievements were realized by capitalizing on our
organizational strengths, nurturing trust among stakeholders, and fostering a
positive organizational culture. Furthermore, AFD prioritized maximizing returns
for milk producers and increasing overall business turnover despite the
challenging conditions in the supply chain. Embracing resilience in adverse
 circumstances enhances mutual trust, reinforces dependability, encourages
participatory involvement, and fosters enduring business relationships. In
essence, resilience signifies the ability to confront adversity, withstand shocks,
and continually adapt and thrive when confronted with disruptions and crises
over time.

2.2 NEW PRODUCT DEVELOPMENT

Innovation is the lifeblood of every organization, irrespective of its industry or
size. Innovative products and services serve as the primary catalysts for value
creation. For any organization, products play a pivotal role in shaping its overall
business health. The introduction of new products not only augments an
enterprise's brand recognition but also holds the potential to ignite genuine
excitement among consumers. A well-executed product launch can act as a
powerful conduit, facilitating access to new audiences and cultivating unwavering
customer loyalty. Within this spectrum of innovation, offerings such as A2 Buffalo
Milk, A2 Deshi Cow Milk, sugar-free flavoured camel milk, sugar-free Rose Lassi,
high-protein lassi, and buttermilk, sports drinks, enticing options like Pina Colada,
Choco Crackle Ice Cream, Choco Vanilla Tri-Cones, Coffee Ice Cream, and the
health-promoting Probiotic Buttermilk are prime examples of how inventive
products can redefine and elevate an organization's market presence and
consumer appeal.

3. CUSTOMER SUPPORT
As a prominent player in the food industry, Amul demonstrates a keen awareness of
the pivotal role played by nutrient-rich dairy products in addressing global food
security concerns and promoting the health and well-being of individuals worldwide.
Amul's unwavering commitment to sustainability is exemplified by its ongoing
dedication to innovation, which serves to bolster customer support and enhance
product offerings, all while maintaining the highest standards of food safety and
quality.
Throughout its sustainable journey, Amul not only attends to the needs of its
customers but also places a strong emphasis on its responsibility to society. The
company strives to harness the inherent value within its products and operations,
with a deliberate focus on benefiting both its customer base and the broader
community.
3.1 NURTURING HEALTH AND NUTRITION
Amul is committed to nurturing health and nutrition through a wide range of
products that cater to various dietary needs. These efforts underscore Amul's
commitment to enhancing the well-being of its consumers.

One key focus area is probiotics, which are living organisms that play a pivotal
role in supporting both gut health and immunity. Probiotics are instrumental in
improving gut integrity and function, resulting in benefits like enhanced
digestion, protection against stomach discomfort, and a reduced risk of
infections. Amul's Probiotic product range includes a variety of options, such as
Amul Probiotic buttermilk, Amul Prolife Lassi, Amul Prolife Buttermilk, Amul
Flaavyo (Yogurt), Frozen Yoghurt, and Probiotic Chocobar ice-cream. Amul also
addresses the dietary needs of lactose-intolerant individuals with its Lactose-Free
Milk. With less than 0.1% lactose content, this product allows those who are
lactose intolerant to enjoy the wholesome goodness of Amul Milk without
experiencing digestive discomfort.

For those seeking protein-rich options, Amul offers Protein Buttermilk, enriched
with 15g of high-quality dairy protein, making it an ideal choice to meet daily
protein requirements. Additionally, Amul presents Protein Lassi, a sweet protein
beverage with the goodness of mango and no added sugar, providing 15g of
protein per serving.

In line with its commitment to holistic well-being, Amul's Memory milk is fortified
with memory-boosting herbs like Brahmi, Sankhapushpi, Tulsi, Ashwagandha, and
more. This product not only enhances memory but also falls under Amul's
immunity-boosting range, which includes offerings like Amul Haldi Doodh, Amul
Ginger Doodh, Amul Tulsi Doodh, and Amul Ashwagandha Doodh.

Amul's diverse product portfolio is a testament to its commitment to nurturing

health and nutrition while catering to the diverse dietary preferences and health
needs of consumers.

3.2 VOICE OF CUSTOMER

Customers are recognized as essential stakeholders in Amul's operations, and the

company places a strong emphasis on enhancing their overall product
experience. To glean valuable insights and inform future strategies, Amul actively
administers a Customer Feedback form to gain deeper insights into its customer
base.
 Key findings from the feedback form revealed that Amul Gold milk is the standout
favourite among customers, garnering a significant 57% of responses, followed by
Tazza and Shakti. When asked about their reasons for choosing Amul Milk, a
substantial 57% of respondents cited product quality as the primary factor, while
23% appreciated its easy availability. Additionally, customers mentioned
affordability and its preference within their families as contributing factors.

Furthermore, the survey delved into the attributes that customers value the most
in Amul Milk. Notably, "FRESHNESS" emerged as the most highly regarded
attribute, with 37% of respondents emphasizing its significance. Close in
importance is the perception that Amul Milk is "SAFE FOR CONSUMPTION,"
holding a substantial 35% of customer preference.

These insights derived from the Customer Feedback form play a pivotal role in
shaping Amul's future strategies, ensuring that their dairy products consistently
meet and exceed customer expectations. It underscores Amul's unwavering
dedication to providing high-quality products that align with customer
preferences and meet their diverse needs.

3.3 TOUCHING LIVES OF CUSTOMER

Amul Fed Dairy actively participated in various community events and initiatives
to strengthen its ties with society. During the Pramukh Swami Shatabdi Mahotsav,
the dairy supplied an impressive 2.60 lakh Liters of fresh milk, 4 lakh Liters of
buttermilk, and distributed 20 lakh pouches of spice buttermilk. Additionally, as
part of the 'Pushpa Dolot sav' celebration on March 7, 2023, the AFD Team
delivered 91,000 pouches of spiced buttermilk to the Shree BAPS Swaminarayan
Temple. The commitment to community engagement extended to the Holi
festival, where 270 crates of buttermilk were provided to Shree Kashtabhanjan
Hanuman Temple in Sarangpur.
Furthermore, during the National Milk Day Celebration, the AFD FPO team
organized a range of school events, including sports activities, quizzes, drawing
contests, essay writing, extempore speaking competitions, tree planting, and a
cycle rally. Notably, they also recognized and rewarded achievements across
various FPO zones, all with the overarching aim of contributing to the values and
choices of future citizens and consumers in the country. These community-
focused initiatives underscore Amul Fed Dairy's commitment to fostering positive
relationships with its stakeholders and making a meaningful impact on society.
 3.4 CUSTOMER VISITS

In a commitment to foster stronger engagement with customers and

communities, Amul has launched a Digital Visit Booking portal accessible at
visit.amul.in. This innovative platform allows visitors to conveniently book their
visit slots to the Amul Fed Dairy plant. Once confirmed, their visit to the dairy
plant is scheduled for an immersive experience.
In the year 2022, approximately 12,248 visitors took advantage of this initiative to
gain valuable insights into the operational activities of the plant. The visitor
demographics encompassed a diverse range, including farmers, school and
college students, distributors, retailers, institutions, officials, and even staff family
members. This diverse group reflects the broad appeal and reach of Amul's
initiatives.
On average, a remarkable 730 visitors make their way to Amul Fed Dairy each
month, underlining the sustained interest in these plant visits. An essential aspect
of this engagement initiative is the opportunity for visitors to provide their
feedback through the portal, allowing Amul to continually refine and improve the
visitor experience. These efforts underline Amul's dedication to strengthening its
connection with both customers and society at large while ensuring transparency
and interaction through digital means.

4. SOCIAL RESPONSIBILITIES
Amul takes its social responsibility seriously, empowering women, engaging in
community development, and practicing sustainability. They offer training, actively
participate in local community development, and maintain environmentally friendly
practices. These efforts reflect Amul's commitment to social well-being and
sustainability.

4.1 WOMEN EMPOWERMENT

Women form an integral part of human society, and within Amul, they constitute
a significant portion of the workforce, actively engaged in essential day-to-day
plant activities. In recognition of International Women's Day, Amul's female
employees took the initiative, guided by top management, to organize a
celebration that went beyond mere festivities. The occasion served as an
opportunity to raise awareness about women's rights, active participation, and
empowerment in contributing to a brighter and more equitable future. It's worth
noting that women employees at Amul are assigned equal roles and
responsibilities alongside their male counterparts, with many of them holding
pivotal positions in critical operations such as processing, aseptic packing, ice
cream manufacturing, ghee production, quality assurance, and fermented
 product manufacturing. Amul's commitment to gender equality and the
meaningful participation of women in all aspects of their operations is evident in
these endeavours.
4.2 BLOOD DONATION
Amul has a longstanding tradition of social responsibility, exemplified by its
initiation of a blood donation campaign in 1987 in collaboration with the Indian
Red Cross Society. This campaign has had a profound impact on rural
communities, as regular blood donation camps are organized in these areas. On
significant national occasions such as Independence Day and National Milk Day,
Amul Fed Dairy consistently demonstrates its commitment to this noble cause by
hosting blood donation camps. The enthusiastic participation of volunteers who
generously donate blood for the betterment of society serves as a remarkable
testament to their dedication to humanity. As a gesture of appreciation and
gratitude, all blood donors are presented with tokens of acknowledgment,
underscoring Amul's deep appreciation for their invaluable contribution to this
humanitarian endeavour.
4.3 NO CHILD LABOUR
Amul is firmly committed to upholding ethical labor practices and ensuring the
welfare of all its employees. Central to this commitment is the strict prohibition
of child labor within its operations. The dairy takes a proactive stance against the
employment of minors, firmly adhering to national and international labor laws
and conventions. Through comprehensive policies and rigorous monitoring
mechanisms, Amul ensures that the workplace remains free from any form of
child exploitation. Furthermore, the dairy actively supports initiatives aimed at
eradicating child labor in the broader dairy supply chain, partnering with
organizations and communities to create a safe and supportive environment for
children. This unwavering dedication to child labor prevention underscores Amul
Fed Dairy's enduring commitment to responsible and ethical business practices.