Amul Daiiry

ASUMMER TRAINING

REPORT ON “AMUL DAIRY”

ANAND

SUBMITTED BY: PROJECT GUIDED BY:PRATIK PATEL VIRAL SHILU SIR

MASTER OF BUSINESS ADMINISTRATION, SEM-II

(It is partially fulfillment of degree of MBA) SUBMITTED TO:

SHRI SARDAR PATEL KELAVANI MANDAL,JETPUR.

SAURASHTRA UNIVERSITY

AMULTHE TASTE OF INDIA

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ANAND MILK UNION LIMITED

THE KAIRA DISTRICT CO-OPERATIVE MILK

PRODUCERS’ UNION LIMITEDANAND


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AKNOWLEDGEMENT

At this juncture, when I am submitting summer report, I honestly feel that this report would not have been without the support, guidance, critique and direction of those who are associated with my academic and personal life. I sincerely and joyfully acknowledge my gratitude to Mr.Nad Vijay Gohil (Manager.HR), Mr.Bharat Patel (Retail in charge Vaghasi depot at Anand) and Mr.G.D.Trivedi for giving me such as valuable opportunities to apply my management concepts principal and skill into real practice. They really help me to make this project work meaningful.

I cannot forget to thank Mr. Mahesh Chandra Joshi (In charge Director) S.P.K.M. Institute, Jetpur and Mr.Ritesh Amarsela, S.P.K.M. Institute, Jetpur (Guide), for guidance and support provided by me, and when needed without their help my work was not make feasible, I sincerely pray to God, for their high development to succeed in each stage of their life.

At the end, I cannot forget to say thank you to my family members, my friends and wish them a bright future and great carrier and last not the least my God who have always been there in my highs and lows encouraged and motivated me to express my self with success.


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PREFACE

The MBA program is well structured and integrated course of business studies. The main objective of practical training at MBA level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The MBA program provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management.

In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry

In today’s globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that “Experience is best teacher”.

A summer project is an opportunity to implement our entire theoretical management concept into real practice. Gujarat Cooperative Milk Marketing Federation Ltd. (GCCMF) made this possible by giving me, such an opportunity to study their function at sales depot, Anand

I hope that my work and efforts will be definitely helpful to Amul.

Pratik Patel


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BRIEF CONTENTS……………..

SR. NO. PARTICULARS PAGENO

1. ABOUT THE ORGNISATION 72. OVERVIEW OF GCMMF 203. THE ORGANISATION 234. TOTAL QUALITY OF MANAGEMENT 385. HUMAN RESOURCE. DEPT. 446. MARKETING DEPARTMENT 497. EXPORT DEPARTMENT 558. QUALITY ASSURANCE DEPARTMENT 589. PURCHASE DEPARTMENT 6110. FINANCE DEPARTMENT 6411. INFORMATION SYSTEM DEPT. 6712. DISTRIBUTION 7413. SALES DEPOT 7814. THE AMUL SHOP 8215. GCMMF ACHIEVEMENT AWARD 8316. BUSINESS ANALYSIS 8717. SWOT ANALYSIS 8918. FINDING AND SUGGESTION 9019. CONCLUSION 9220. BIBLIOGRAPHY 93


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Content……………….

Its began with strike

Need shows

Growth follows growth

Improving milk production

The amul system

District union

Education

A larger responsibility

Animal breeding

An overview GCMMF ltd.

The organization

List of product

Function of production officers

Department


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ABOUT THE ORGANISATION

IT BEGAN WITH A STRIKE

A farmer in Kaira district as elsewhere in India derives his income, almost

entirely from seasonal crops. The income from milk was partly and could not be

depended upon. The main buyers were milk traders of Polson ltd. – a privately owned

company which enjoyed the monopoly for the supply of milk from Kaira to the

government’s Bombay milk scheme. The farmers of Kaira district were thus at the mercy

of the milk traders who could dictate the price as they had nowhere else to turn.

The unfair system bred widespread discontent. The farmers appealed to Sardar

Patel a great leader of India’s freedom of the movement, to help. Sardar Patel advised to

the milk through cooperatives of his own. He sent his trusted deputy, the late Shri

Morarji Desai to organize the farmers. At the meeting held at Samarkha village on

January 4th, 1946, it was resolved that milk co-operative societies would be organized in

each village of collect milk from the producers and federated into a district union. The

government should be asked to buy milk from the union. When the government trusted

down the demand, Kaira farmers organized a milk strike.

For 15 days not a drop of milk was old to the traders. The Bombay milk scheme

badly affected. The milk commissioners of Bombay visited Anand, assessed the situation

and decided to concede to the farmers demand.

Thus was born the Kaira district co-operative milk producers union ltd. It was formally

registered on December 14th, 1946.


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NEED SHOWS

In the beginning there were just a few farmers supplying about 250 liters of milk a

day. Soon the number increased to 400 farmers and the quality of milk handled rose to

5000 liters a day. With growth came problems. Milk yield is higher in winter, and the

Bombay milk scheme could not absorb the extra milk offered. The farmers were forced to

sell the surplus milk to traders at very low rates. This led to the decision to set up a plant

to process the surplus milk into butter and milk powder.

With financial help from UNICEF assistance from the government of New

Zealand under the Colombo plant, and technical assistance provided by FAO, a Rs.5

million factory to manufacture milk powder and butter was planned. The foundation was

laid by Dr.Rajendra Prasad, the president of India, on November 15, 1954, and on

October 31 ,1955, Pandit Jawaharlal Nehru , the then prime minister, declared it open.

GORWTH FOLLOWS GROWTH

In 1958 the plant was expanded to manufacture sweetened condensed milk. Two

years later Shri Morarji Desai , by then India ‘s finance minister, inaugurated a new wing

designed to manufacture 600 tones of cheese and 2500 tones of baby food formula was

developed with the help of the central food technological research institute, Mysore . This

was the first time in the world, that cheese or baby food was processed from buffalo milk

on a large commercial scale. A plant to manufacture balanced cattle feed donated by

OXFAM, was commissioned on October 31st, 1964, by Lal Bahadur Shastri, the then

prime minister of India.

At the request of the government of India in 1963, a new dairy with a capacity of

40tonnes of milk powder and 20tonnes of butter a day was speedily completed. This was

meant requirement of India‘s defense forces. The dairy was declared open by Shri

Morarji Desai in April, 1965. By now the dairy complex could handle 500000 liter of

milk a day the capacity was raised to 750000liters a day in1974. The same year the Kaira


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union set up a plant manufacture high protein weaning food, chocolate and malted food at

Mogar , about 8 km. south of Anand. In September, 1981 the second cattle feed plant at

Kanjari was started. The successful completion of the co-generation project on September

11th, 1985 marked a new milestone on the energy front when two gas turbine generators

of 1.5 MW each based natural gas commissioned.

Kaira put up a dread spread plant at Mogar with the assistance of NDDB on 1994.

On October 31, 1992 Dr.Kurian, Chairman, National Dairy Development Board, laid the

foundation of Kaira union third dairy , with a processing capacity of 6.5 lakh liters of a

day. Work on the union’s satellite dairy and cheese plant at Khatraj began in February

1994.

IMPROVING MILK PRODUCTION

From the late fifties Kaira union has been investing heavily in schemes to

improve the milk yield of animals. The union built up a full fledged infrastructure for

breeding animals and ensuring animal health care. Semen from high pedigree bulls is

being made available. An efficient insemination service also was put into place through

village society workers. A mobile veterinary service renders animal health care at the

door step of the farmer; the veterinary first aid program organized by union through

trained village society workers was probably the first of its kind in India.

The co-operative dairying system which took root in Kaira was beneficial and

viable. The union, which started with two societies, had 954 societies, with 537000

members in 1995; milk handled went up from 250 liters a day to one million liter a day.

The turnover of the union in 1994-95 was Rs. 344crores. The intervening years saw

similar union s coming up in other district of Gujarat. The “Anand pattern of co-operative

dairying had become firmly established.


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Membership

(‘000)

Kaira District Co-Operative Milk Union Ltd.

THE AMUL SYSTEM

Why did Amul system succeed?

In the old system of middlemen the guiding principles were lowest possible price

to the milk producer, price to the consumer, and lowest possible quality of the milk and

milk product for sale. The middle men pocketed the profit Under the Amul system the

reverse held well; highest possible price to the producers, lowest possible price to the

consumer and highest possible quality of milk and milk product for sale. The profits were

used for the milk producers common good.

Market forces favored the Amul system.


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0

200

400

600

800

1000

1200

48-49 58-59 68-69 78-79 88-89 94-95

societymembers

The system was a village society was concerned mainly with purchase of milk

from producer; it also acted as a channel for milk production of enhancement of scheme.

The district union looked after policy formulation processing and marketing of, milk and

provision of technical inputs to enhance the milk yield of animals like artificial

insemination service, veterinary care, better feeds etc. The system is same now except for

a third tier a federation, an apex co-operative of district unions for marketing.

Village SocietyThe village co-operative society consists of primary milk producers. To milk

producer pays an entrance fee of Re. 1 and buys at least one share of Rs.10. The member

elect managing committees elect a chairman. Each member has only one vote, regardless

of the number of shares he has. Committee work is honorary and is restricted to policy

formulation and supervision. Salaried staffs are employed for milk collection fat testing,

clerical and accounting work, artificial insemination, etc.

Villages are served by milk collection centers, open morning and evening. Milk

delivered by a producer is measured and a sample is drawn for quality-testing. The

district union provides each centre with a fat-testing machine. Societies have introduced

electronic fat-testing machine and some societies have installed automatic weighting cum

fat testing equipment with data processing facilities. The unions have planned installation

of village chilling units in the societies to that the quality and freshness of milk could be

retained. Payment due is worked out on the basis of the quantity and the quality of the

milk delivered. The farmers are paid in the evening for milk delivered in the previous

morning, and the following morning for the delivered the previous evening. Details are

entered in members’ pass-book and the society record.

Cash payment every days are a great boon to the farmers. A third of milk gives

them money for food and other daily necessities. Those with land supplement their

income from seasonal crops with milk sales. About half of the income from milk is

estimated to be spent on food for animals. The balance is used for the family’s needs. The

society earns a profit from its sale of milk to the union. A part of this profit is distributed


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to its member each year as bonus, calculated on the value of milk supplied by the

producer. A part of the society’s profit is also channeled into schools, libraries,

dispensaries and health centre, water works, drinking troughs for cattle, roads, electricity

Telephone facilities, youth clubs, cattle relief and veterinary services like first aid and

artificial insemination.

DISTIRCT UNION

The union is managed by board of directors twelve elected from among the

chairman of village societies. The board elects a chairman and a vice chairman and

appoints a managing director, who in turn appoints supporting professional and other

staff. The board formulates policy; the professionals look after the day to day work.

Village representatives are elected every three years form amongst the village

representatives. Milk from the societies is picked up by union-up by union-hired

trucks/tankers plying at fixed routes. At the Dairy, milk is graded; good milk is weighed,

sampled and tested for fat and solids-not-fat (SNF) content. The society is paid three

times a month on the fat and SNF content in the milk. Low – grade or sour milk fetches a

lower price. The dairy pasteurizes milk for liquid milk sale or to convert it into products.

Liquid milk leaves the dairy by insulated road or rail tankers. Milk products are

dispatched by truck.

In the early years the union looked after the marketing of milk and milk products. In

1974 the Gujarat co-operative milk marketing federation limited. Anand, the apex

organization of district unions was formed to perform the marketing function.

ANIMAL BREEDING

For breeding animals the Kaira union has established centre at ode farm, 18 km

from Anand with high pedigreed buffalo bulls, Holstein Friesian bulls, artificial

insemination sub centre are maintained by 827 societies. The semen is delivered to the

sub centre through the hired, transport vehicles. Artificial insemination services are

provided to member and are non-members at nominal cost. The union provides a AMUL

THE TASTE OF INDIA13

pregnancy diagnosis service too. In 1994-95 the number of artificial inseminations

carried out was 672852. Both buffaloes and cows are covered under the program. By

1995 there were 43734 crossbred cows or heifers in the district. The union runs 16 mobile

veterinaries dispensaries with fully qualified staff and radio telephones. All villages are

visited on pre determined days twice a month. A 24 hour emergency veterinary service

with 29 vehicles having radio telephone is available at a fee of Rs.35 for members and

Rs. 100 for non-member. Through a group cattle insurance scheme the animals of the

member are provided insurance coverage to mitigate any unforeseen cattle loss. First aid

veterinary services have been set up by 930 societies. Each has a staff member trained by

the mobile dispensaries. Medicines are supplied by the union at 50% subsidized.

The union’s cattle feed plant sells a balanced feed concentrate at cost price, to

ensure better nutrition for animals. In 1994-95 the union sold 1, 44,181 tons of cattle feed

through its societies. In order to provide low cost high energy feed, a urea molasses lick

(mol-u-min) plant has been set up. The union is probably the first organization in the

country to use the by pass protein technology, manufacture such feed and make it

available to farmers. The union assists the farmers in the cultivation of green fodder also

by arranging high quality fodder seeds. The union also supports enrichment of poor

quality paddy wheat straw by urea treatment.

EDUCATION

The union maintains a constant link with rural producers. Meetings of women

who generally look after the animals are held in village and extension workers explain to

them modern of animal husbandry. Women are also taken on tour the cattle feed plant the

dairy the animal breeding centre. The union publishes a newsletter twice month which

carries write ups in simple Gujarati on animal husbandry, quality control of milk and the

co-operative movement. The union continually guides and supervises the societies so that

they remain efficient, viable and strong. The accounts of the societies are audited by the

state government audit cell. Welfare activities for member, two scholarships are given


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every year to outstanding children of members or the union staff for courses in veterinary

and dairy sciences. Under the group gramin personal accident policy the member and

spouse are insured by the union.

SOCIAL CHANGE

The milk co-operative in the villages of Kaira are contributing in their own way

to various desirous social changes. Democratic traditions are taking root with yearly

elections to the Management Committee. Farmer –members become aware of their rights;

they also learn the value of electing the right people. When milk producers from diverse

social and economic groups come together twice every day at the milk collection centre

old barriers based on inequalities begin top break down. Exposures to various modern

technologies have an educational effect. Those who visit artificial insemination centre

learn the facts about pregnancy, and family planning messages become easier to grasp. At

the cattle feed plant villagers absorb lesson in nutrition. Similarly the preventive

vaccinations of cattle have led to greater acceptance of vaccination in children. Milk co-

operative have created more jobs and incomes in Kaira villages. The beneficiaries have

no pressing need to migrate to towns.

Milk income has added a new confidence and created a better status for women

who look after the animals. Independent studies have shown that as high as 48 percent of

the income of the rural house holds in the Kaira district is derived from dairying. And it

has made a difference to their standard of living and their social status. Amul has

demonstrated that farmer’s societies can employ professionals, make use of modern

technology and harness market forces to serve their ends without disturbing the agro-

system. To be a small producer is no disadvantage. Under the social concept of co-

operative dairying there is a greater chance of rural development to leading to the

empowerment of the poor and the lower.

A LARGER RESPONSIBILTY AMUL


The Kaira district co-operative milk producers’ union was a pioneer. And it was

successful. Thus it comes to be regarded as a model. With this recognition came larger

responsibilities. When milk producers in other district of Gujarat started their co-

operative, they turned to Kaira union for help and guidance. Anand’s experience in

project planning and execution.

The Ahmedabad municipal dairy (which has been taken over by dairy development )

the Gujarat Government ‘s Rajkot dairy (which is now being managed by the co-

operative union) and dairies of the Mehsana district co-operative union milk producers

union ltd. and one of the Baroda district co-operative milk producers union ltd. were

among the project executed with Kaira union’s technical kelp. The Kaira union also

started a training program for dairy and animal husbandry personnel. In 1964, the then

prime minister of India, late Lalbahaduar Shatri visited Anand to inaugurate the union

cattle feed plant. He desired that co-operative on the Anand pattern should be set up

thought the country. The National Dairy Development Board (NDDB) was thus set up in

Anand 1965. NDDB drew up the program ‘operation flood ‘to replicate the several milk

sheds of the country. The implementation of the program started in 1970-71. Heavy

reliance was placed on the expertise of the Kaira union.

In each area NDDB deployed a spearhead team consisting of specialists who were

fully conversant with the Anand pattern. The liaison between the NDDB spearhead team

and the workers of the project area invariably started with a training program at Anand.

The creation of more ‘Anand’ was recommended under World Bank projects in

Karnataka, Madhya Pradesh and Rajasthan also. In these project as well, Kaira union

served as “live laboratory” and NDDB as the multiplier. The Anand pattern of co-

operative dairying is now being replicated in all the states and union territories of India.

By March 31st, 1995, there were 69875 village dairy co-operatives established in 170

milk sheds, with a total membership of 8.9 million farmers. Similar co-operative are

being established for oilseed cultivators, fruit and vegetable farmers and small-scale salt

makers and tree growers.


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AMUL

The moppet who put Amul on India's breakfast table

50 years after it was first launched, Amul's sale figures have jumped from 1000

tones a year in 1966 to over 25,000 tones a year in 1997. No other brand comes even

close to it. All because a thumb-sized girl climbed on to the hoardings and put a spell on

the masses.

Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old

housewife is out in the balcony drying clothes. From her second floor flat she can see her

neighbors on the road. There are other people too. The crowd seems to be growing larger

by the minute. Unable to curb her curiosity Sheela Mane hurries down to see what all the

commotion is about. She expects the worst but can see no signs of an accident. It is her

four-year-old who draws her attention to the hoarding that has come up overnight. "It was

the first Amul hoarding that was put up in Mumbai," recalls Sheela Mane. "People loved

it. I remember it was our favorite topic of discussion for the next one week! Everywhere

we went somehow or the other the campaign always seemed to crop up in our

conversation."

Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you,

from strategically placed hoardings at many traffic lights. She is the Amul moppet

everyone loves to love (including prickly votaries of the Shiv Sena and BJP). How often

have we stopped, looked, chuckled at the Amul hoarding that casts her sometime as the

coy, Shri Madhuri, a bold sensuous Urmila or simply as herself, dressed in her little polka

dotted dress and a red and white bow, holding out her favorite packet of butter.


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For 30 odd years the Utterly Butterly girl has managed to keep her fan following

intact. So much so that the ads are now ready to enter the Guinness Book of World

Records for being the longest running campaign ever. The ultimate compliment to the

butter came when a British company launched butter and called it Utterly Butterly, last

year. It all began in 1966 when Sylvester DaCunha, then the managing director of the

advertising agency, ASP, clinched the account for Amul butter. The butter, which had

been launched in 1945, had a staid, boring image, primarily because the earlier

advertising agency which was in charge of the account preferred to stick to routine,

corporate ads.

In India, food was something one couldn't afford to fool around with. It had been

taken too seriously, for too long. Sylvester DaCunha decided it was time for a change of

image. The year Sylvester DaCunha took over the account, the country saw the birth of a

campaign whose charm has endured fickle public opinion, gimmickry and all else. The

Amul girl who lends herself so completely to Amul butter, created as a rival to the Polson

butter girl. This one was sexy, village belle, clothed in a tantalizing choli all but covering

her upper regions. "Eustace Fernandez (the art director) and I decided that we needed a

girl who would worm her way into a housewife's heart. And who better than a little girl?"

says Sylvester DaCunha. And so it came about that the famous Amul Moppet was born.

That October, lamp kiosks and the bus sites of the city were splashed with the

moppet on a horse. The baseline simply said, thorough bread, Utterly Butterly Delicious

Amul. It was a matter of just a few hours before the daCunha office was ringing with

calls. Not just adults, even children were calling up to say how much they had liked the AMUL


ads. "The response was phenomenal," recalls Sylvester daCunha. "We knew our

campaign was going to be successful." For the first one year the ads made statements of

some kind or the other but they had not yet acquired the topical tone. In 1967, Sylvester

decided that giving the ads a solid concept would give them extra mileage, more dum, so

to say. It was a decision that would stand the daCunha in good stead in the years to come.

In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna

movement, Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative

team working on the Amul account came up with a clincher -- 'Hurry Amul, Hurry

Hurry'. Bombay reacted to the ads with a fever that was almost as devout as the Iskon

fever. That was the first of the many topical ads that were in the offing. From then on

Amul began playing the role of a social observer. Over the years the campaign acquired

that all-important Amul touch. India looked forward to Amul's evocative humor. If the

Naxalite movement was the happening thing in Calcutta, Amul would be up there on the

hoardings saying, "Bread without Amul Butter, cholbe na cholbe na (won't do, won't do).

If there was an Indian Airlines strike Amul would be there again saying, Indian Airlines

Won't Fly Without Amul.

There are stories about the butter that people like to relate over cups of tea. "For

over 10 years I have been collecting Amul ads. I especially like the ads on the backs of

the butter packets, "says Mrs. Sumona Varma. What does she do with these ads? "I have

made an album of them to amuse my grandchildren," she laughs. "They are almost part of

our culture, aren't they? My grandchildren are already beginning to realize that these ads

are not just a source of amusement. They make them aware of what is happening around

them." Despite some of the negative reactions that the ads have got, daCunha have made

it a policy not to play it safe. There are numerous ads that are risqué in tone. "We had the

option of being sweet and playing it safe, or making an impact. A fine balance had to be

struck. We have a campaign that is strong enough to make a statement. I didn't want the

hoardings to be pleasant or tame. They have to say something," says Rahul daCunha.

"We ran a couple of ads that created quite a fur ore," says Sylvester daCunha.

"The Indian Airlines one really angered the authorities. They said if they didn't take down


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the ads they would stop supplying Amul butter on the plane. So ultimately we

discontinued the ad," he says laughing. Then there was the time when the Amul girl was

shown wearing the Gandhi cap. The high command came down heavy on that one. The

Gandhi cap was a symbol of independence; they couldn't have anyone not taking that

seriously. So despite their reluctance the hoardings were wiped clean. "Then there was an

ads during the Ganpati festival which said, Ganpati Bappa More Ghya (Ganpati Bappa

take more). The Shiv Sena people said that if we didn't do something about removing the

ads they would come and destroy our office. It is surprising how vigilant the political

forces are in this country. Even when the Enron ads (Enr On Or Off) were running,

Rebecca Mark wrote to us saying how much she liked them."

There were other instances too. Heroine Addiction, Amul's little joke on Hussain

had the artist ringing the daCunhas up to request them for a blow up of the ad. "He said

that he had seen the hoarding while passing through a small district in UP. He said he had

asked his assistant to take a photograph of himself with the ads because he had found it

so funny," says Rahul daCunha in amused tones. Indians do have a sense of humour, after

all.

From the Sixties to the Nineties, the Amul ads have come a long way. While most

people agree that the Amul ads were at their peak in the Eighties they still maintain that

the Amul ads continue to tease laughter out of them. Where does Amul's magic actually

lie? Many believe that the charm lies in the catchy lines. That we laugh because the

humour is what anybody would enjoy. They don't pander to your nationality or certain

sentiments. It is pure and simple, everyday fun.

AN OVERVIEW OF GCMMF LIMITED

Gujarat co-operative milk marketing federation established in November, 1973

is a co-operative organization jointly owned by 2.6 million milk producers with annual

sales turnover of Rs 4277.84 crores (42.77)billion) in 2006-07 . GCMMF in corporate

more then 12,700 village producers’ co-operatives affiliated to 13 district co-operatives


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milk producers union. GCMMF has 16 affiliated dairy plant with total capacity of 10.16

million litres per day and milk drying (powder manufacturing) capacity of 594 MTs per

day. GCMMF markets a wide range of dairy products under the brand names of the Amul

and Sagar. The product categories are infrant Milk food, Skimmed milk powder, Instant

Cream milk powder, dairy whitener , table butter, cheese, cheese spread, ghee, sweetened

condensed milk, chocolates, malted milk food ,blended bread-spread, fresh milk, dahi,

ice cream and ethnic Indian sweets like shrikhand and gulabjamun. GCMMF is also the

largest exporter of dairy products and its products are exported to USA, middle east,

Singapore and other far east markets and neighboring countries like Bangladesh, Sri

Lanka etc.

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food

products marketing organization. It is a state level apex body of milk cooperatives in

Gujarat which aims to provide remunerative returns to the farmers and also serve the

interest of consumers by providing quality products which are good value for money.

Members: 13 district cooperative milk producers' Union

No. of Producer Members: 2.79 millionNo. of Village Societies: 13,328Total Milk handling capacity: 11.22 million litres per dayMilk collection (Total - 2008-09): 3.05 billion litresMilk collection (Daily Average 2008-09): 8.4 million litres

Milk Drying Capacity: 626 Mts. per dayCattle feed manufacturing Capacity: 3500 Mts per day

As you may be aware, Gujarat co-operative milk marketing federation limited is also one

of the India’s largest food company having an annual turnover in 2007-08 above Rs.5000

crores. This is an out come of collective wisdom of some 20 lacs milk producers of

Gujarat who have joined hands to carve out a premier co-operative organization which


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has built such a valuable brands known as Amul and sagar, over a period of 50 years. I

hope to turn the magic figure of Rs 10000 crores by the year 2005. At present, GCMMF

has 12 member union and their respective dairy co-operative societies made famous by

the much acclaimed Anand pattern of co-operatives. The pattern envisages dairy co-

operative at level a processing unit called union at the district level and these are

federated at the state level. Today there are 20 lac farmers forming 10 thousand village

dairy co-operative which gives a tremendous strength to the ‘Amul‘saga.

Strength of GCMMF is the following:

I see ourselves as business of the development not just marketing. Development,

be it of products, people or process. The spirit of development can be seen and

felt in everything that I do. Marketing is simply our tool to achieve our ultimate

objective-human development.

A willingness to put in good solid hard work and be innovative in our work.

An office culture which is steeped in camaraderie and encourages every one to

take responsibility.

Having people who have contributed their best in whatever they have done, no

matter how lowly or how surmounting the task might have been.

An ability to just hang in there and bear adversity.

Federation as all commonly refer to GCMMF as, infect this one word is nothing short of

a password here in Anand, is classical example of a co-operative organization having its

own culture and philosophy. I might be short in people, space, computer or time but I are

never short encouraged! And despite the handicaps I are growing at more than 20% each

year, no mean achievement any way you look at it.

VISSION

AMUL’s vision is to provide more and more satisfaction to the farmers and their

consumers. As employees and distributors, those are also the hands of Amul. They

believe that four hands are the greatest strength. They should co-ordinate with each other,

and Amul wants to maintain No.1 position.


22

GCMMF‘s mission statement

Reiterates our endeavor to satisfy the taste and nutritional requirement of the customers

of the world, through excellence in marketing by our committed team of professionals.

Besides through co-operative net working, I strive endlessly to offer quality products that

provide best value for money. Try to inculcate it as much as you can – you will never be

sorry having done so because success goes to not the one who is the fastest or strongest

but to the one who says-

And always remember – “The secret to success on the job is to work as though you

were working for your self. Your company provides you with the work area,

equipment and other benefits, but basically you know what has to get done and best

way to do it, so it’s up to you to run your own show.”

THE ORGANIZATION

BOARD OF DIRECTORS

BOARD OF DIRECTORS

1. Shri Ramsingh P. Parmar Chairman

2. Shri Rajendrasinh D. Parmar Vice Chairman

3. Shri Shivabhai M. Parmar Director

4. Shri Maganbhai G. Zala Director

5. Shri Chandubhai M. Parmar Director

6. Shri Pravinsinh F. Solanki Director

7. Shri Dhirubhai A.Chavda Director

8. Shri Bhaijibhai A. Zala Director

9. Shri Mansinh K.Chauhan Director

10. Shri Bipinbhai M.Joshi Director


23

11. Smt. Madhuben D. Parmar Director

12. Smt. Sarayuben B. Patel Director

13. Shri Ranjitbhai K. Patel Director

Shri B. M. Vyas

(M.D. of GCMMF, Anand)

Shri Rahulkumar Shrivastav

(M.D. of KDCMPUL, Anand)

Shri Deepak Dalai (District Registrar)

Kaira District Central Co-operative Bank

U.T.I. Bank

State Bank of India

Bank Of Baroda

Bank Of Maharastra

Corporation Bank

AuditorB.B.Bhabhor

Special Auditor (Milk), Milk Audit Office, Anand

Foundation and Inauguration :

Dr. Rajendra Prasad, the president of India laid the foundation on

November 15, 1954. On October 31St 1955 Jawahailal Nehru, the prime minister

of India declared it open.


24

STRUCTRE OF Employee

MANAGING DIRECTOR

GENERAL MANAGER

ASSITANT GNERAL MANAGER

MANAGER

DEPUY MANAGER

ASISTANT MANAGER

SR.EXECUTIVE


25

JU. EXECUTIVE

THE PRODUCT OF THE GCCMMFBread Spreads

Amul ButterUtterly Butterly Delicious

Amul LiteLow fat, low Cholesterol Bread Spread

Milk DrinksAmul Kool Millk Shaake

Amul Kool

Amul Kool Cafe Kool KokoA delight to Chocolate Lovers. Delicious Chocolate taste

Nutramul Energy DrinkA drink for Kids - provides energy to suit the needs of growing Kids

Amul Kool Chocolate Milk

Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Tetra Pack


26

http://www.amul.com/bread-butter.html

http://www.amul.com/fresh-flavouredpack.html



http://www.amul.com/fresh-flavoured.html



http://www.amul.com/fresh-chocolate.html


http://www.amul.com/nutramulenergymilk.html


http://www.amul.com/amulkoolkoko.html

http://www.amul.com/amulkoolcafe.html

http://www.amul.com/amulkool.html

http://www.amul.com/amulkoolmillkshaake.html


http://www.amul.com/bread-lite.html




http://www.amul.com/amulkool.html

http://www.amul.com/amulkoolcafe.html

http://www.amul.com/amulkoolkoko.html





Amul Masti Spiced ButtermilkAmul introduces the Best Thirst Quenching Drink

Amul Kool Thandai

Powder MilkAmul Spray Infant Milk FoodStill, Mother's Milk is Best for your baby

Amul Instant Full Cream Milk PowderA dairy in your home

Sagar Skimmed Milk PowderWhich is especially useful for diet preparations or for use by people on low calorie and high protein diet.

Sagar Tea Coffee Whitener

Amulya Dairy WhitenerThe Richest, Purest Dairy Whitener

Amul Fresh Cream Amul Shakti Toned Milk

Amul Calci+


27

http://www.amul.com/amulcalciplus.html

http://www.amul.com/fresh-shakti.html


http://www.amul.com/fresh-cream.html

http://www.amul.com/powder-dairy.html


http://www.amul.com/powder-coffee.html


http://www.amul.com/powder-skimmilk.html


http://www.amul.com/powder-milkpowder.html



http://www.amul.com/powder-milkfood.html


http://www.amul.com/amul-thandai.html

http://www.amul.com/fresh-masti.html



http://www.amul.com/amul-thandai.html









Fresh Milk

Amul Fresh MilkThis is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience.

Amul Gold Milk

Amul Taaza Double Toned Milk

Amul Lite Slim and Trim Milk

Amul Fresh Cream Amul Shakti Toned Milk

Amul Calci+


28





http://www.amul.com/fresh-slim.html


http://www.amul.com/fresh-tazza.html


http://www.amul.com/fresh-gold.html

http://www.amul.com/fresh-fmilk.html

http://www.amul.com/fresh-fmilk.html







Cheese

Amul Pasteurised Processed Cheese100% Vegetarian Cheese made from microbial rennet

Amul Cheese SpreadsTasty Cheese Spreads in 3 great flavours..

Amul Emmental CheeseThe Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma

Amul Pizza Mozzarella CheesePizza cheese...makes great tasting pizzas!

For Cooking

Amul / Sagar Pure GheeMade from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience.

Cooking Butter

Amul Malai PaneerReady to cook paneer to make your favourite recipes!

Utterly Delicious Pizza


29

http://www.amul.com/cooking-pizza.html

http://www.amul.com/cooking-paneer.html

http://www.amul.com/cooking-butter.html

http://www.amul.com/cooking-sagar.html


http://www.amul.com/cheese-mozzarella.html


http://www.amul.com/cheese-emmental.html


http://www.amul.com/cheese-spreads.html

http://www.amul.com/cheese-cheddar.html







http://www.amul.com/cooking-butter.html

http://www.amul.com/cooking-paneer.html

http://www.amul.com/cooking-pizza.html

Mithai MateSweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste.

Masti Dahi

Desserts

Amul Ice CreamsPremium Ice Cream made in various varieties and flavours with dry fruits and nuts.

Amul ShrikhandA delicious treat, anytime.

Amul Mithaee Gulab JamunsPure Khoya Gulab Jamums...best served piping hot.

Amul ChocolatesThe perfect gift for someone you love.

Amul Lassee Amul Basundi

Health Drink


30

http://www.amul.com/desserts-basundi.html

http://www.amul.com/desserts-lassee.html

http://www.amul.com/desserts-chocolates.html

http://www.amul.com/desserts-gulabjamun.html


http://www.amul.com/desserts-shrikhand.html

http://www.amulicecream.in/

http://www.amul.com/cooking-mastidahi.html

http://www.amul.com/cooking-mithai.html



http://www.amulicecream.in/

http://www.amul.com/desserts-shrikhand.html



http://www.amul.com/desserts-lassee.html

http://www.amul.com/desserts-basundi.html

NutramulMalted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.

LIST OF PRODUCTS MARKETED:

Breadspreads:

Amul Butter

Amul Lite Low Fat Breadspread

Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozarella) Cheese

Amul Shredded Pizza Cheese

Amul Emmental Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese)

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

Amul Amrakhand


31

http://www.amul.com/desserts-shrikhand-.html

http://www.amul.com/cheese-gouda.html







http://www.amul.com/healthy-nutramul.html


http://www.amul.com/health-toned.html

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix

Avsar

UHT Milk Range:

Amul Shakti 3% fat Milk

Amul Taaza 1.5% fat Milk

Amul Gold 4.5% fat Milk

Amul Lite Slim-n-Trim Milk 0% fat milk

Amul Shakti Toned Milk

Amul Fresh Cream

Pure Ghee:

Amul Pure Ghee

Sagar Pure Ghee

Amul Cow Ghee

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6 months)

Amul Infant Milk Formula 2 ( 6 months above)

Amulspray Infant Milk Food

Milk Powders:

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener


32












http://www.amul.com/desserts-kulfi.html

http://www.amul.com/desserts-jamunmix.html


Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardised Milk 4.5% fat

Amul Slim & Trim Double Toned Milk 1.5% fat

Amul Saathi Skimmed Milk 0% fat

Amul Cow Milk

Curd Products:

Yogi Sweetened Flavoured Dahi (Dessert)

Amul Masti Dahi (fresh curd)

Amul Masti Spiced Butter Milk

Amul Lassee

Amul Icecreams:

Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted

Almond)

Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry,

Black Currant, Santra Mantra, Fresh Pineapple)

Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)

Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch,

Megabite, Cassatta)

Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)

Chocolate & Confectionery:


33

http://www.amul.com/icecream/nature.html

http://www.amul.com/icecream/nutomania.html

http://www.amul.com/icecream/royal.html





Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Brown Beverage:

Nutramul Malted Milk Food

Milk Drink:

Amul Kool Flavoured Milk (Mango, Strawberry, Cardamom, Rose, Chocolate)

Amul Kool Cafe

THE CODE OF THE PRODUCT HAS BEEN USE IN THE ORGANISATION:

Product code Product

ASP AMULSPRAY

AMY AMIULY

WMP WHOLE MILK POWDER

CHE CHEESE

SHK SHRINKHAND

ALT AMUL LITE

ABT AMUL BUTTER

NUT NUTRAMAL

PAN PANEER

AGH AMUL GHEE

SGH SAGAR GHEE

CHS CHEESE SPREAD

CHP CHEESE POWDER

EMM EMMENTAL CHEESE

SMD SAFAL MANGO DRINK

UHT UHT MILK


34




BTM BUTTER MILK

FLM FLAVOURD MILK

MLK MILK

MFJ MIXED FRUIT JAM

STK SAFAL TOMATO KETCH UP

DPS DELICIOUS PAV BHAJI SPREAD

STC SAGAR TEA COFFEE WHITENER

MZC MOZZRELLA CHEESE

IMM INSTANT MILK POWDER

SCM SWEETENED CONDENSED MILK

CHO CHOCOLATE

AGJ AMUL MITHAEE GULABJAMUM

Department

1. TOTAL QUALITY MANAGEMENT 2. INFORMATION SYSTEM DPARTMENT3. MARKETING 4. HO- ACCOUNTING 5. PURCHASE DEPARTMENT6. ICE CREAM CELL7. MILK CELL8. PERSONAL AND HUMAN RESOURCE9. MARKETING DESPATCH10. QUALITY ASSURANCE DEPARTMENT

FUNCTION OF PRODUCTion OFFICERSThe wonderful creature that the product officer is, he/she has a lot of responsibility on

his/her young shoulders! I list down some of these. The list is by no means exhaustive

and is just indicative! PO’s are to update it in their minds!!

1. DAILY MANAGEMENT

1.1. Monitoring product wise and pack wise sales in all depots for his product

1.2. Monitoring product wise and pack wise dispatches to all depots from his AMUL


member union

1.3. Monitoring and coordinating products wise production at member union

1.4. Ensuring that no stock out occurs in any product pack by ensuring minimum

inventory at depots

1.5. Contingency management by trouble shooting specific depots problem as

and when they arise in above matters

1.6. Providing support to the depots in the form of approvals for promotions,

scheme by getting necessary MD approval, drafting circular and dispatching

same

1.7. Depot correspondence for any correspondence a minimum of three copies is

to be taken

One for the addressee

One for dispatch- master copy

One for you-office files copy

One for CC to (optional)

Each correspondence should have dispatch number from dispatch department

1.8. Competitor activity compilation in file

1.9. Any other task which MD/AGM/GPM might give for the day

2. WEEKLY MANAGEMENT

2.1. Every 11th /12th of month sales and stock figures fro CMCY and CMPY

should go to MD for perusal

2.2 weekly reminders to depots on their sales and stock through e-mail identifying

depots which are minus on sales and urging them to meet their targets for the

month

2.3 pending issues from the previous week

2.4 monitoring sales/stock/dispatches/pending dispatches for his product


36

3. MONTHLY MNAGEMENT

3.3 Indent –allocation on every month 25 onwards

3.2 brand performance report for MD

3.3 communicating shortfall if any in indent v/s production to member union and

shot fall in targeted sales v/s achieved sales depots

3.4 monitoring trade schemes/BTL Activities /consumer schemes

3.5 new product development reviews

3.6 communicating advertising schedule to depots from time to time

3.7 developments of packaging and pop material for the existing brands and new

products to be launched/ revamped in close co-ordination with MUc/QC

Depts. / and liasioning with advertising agency

3.8 requisite market research for the brand

3.9 PCM planning and brand presentation

3.10 sales Patti compilation in case of SSA products

4. TQM ACTIVITIES

4.1 small group activities

4.2 kaizen recording

4.3 other related TQM activities coordinated through HRD department

5. ANNUAL MANAGEMENT ACTIVITIES

5.1 NPD launched plan

5.2 annual trade scheme/BTL/POP calendars

5.3 annual advertising plans

5.4 annual marketing plans

5.5 fixing annual sales targets

5.6 hoshin kanri preparation every six months


37

Content…………………

Tqm initiatives

Gcmmf roadmap

Amul quality circle

Quality initiatives at member dairies

Scope of total quality management


38

TOTAL QUALITY MANAGEMENT WHAT IS THE TQM?

Total quality management can be defined as an organization –wide effort to

develop systems, tools, techniques skill and the mindset to establish a

quality assurance system that is responsive to the emerging market needs.

Such an effort will provide distinctive advantages to a firm and will enable it

to compete effectively in the market.

WHY TOTAL QUALITY MANAGEMENT?

Response better to customer

Improve management efficiency

Product

Service

THE TQM MODEL


39

TQM

INITIATIVES

Values /

initiatives

Hoshin knri

ASC/BRM/ Friday

meetings

ISD-AQC

SGA

Kaizen

House

keeping

GCMMF TQM ROADMAP AMUL


IMPROVEMENT

TWE

TEI TQC

MISSION VISION STRATEGY

Appreciative enquiry & proposal

By ECS

September/October 94

MOC I& 2 awareness

Programme

December 94 & January 95

Training the trainee February 95

Cascading of MOC March / April 95

Kaizen May 95

SGA July 96

OCS June 96

Hoshin Kanri January 97

Amul quality circles October 97

AMUL QUALITY CIRCLE 3600 GCMMF Distributor

AQC used as a tool for business consultancy to wds to improve their

distribution efficiency

An excellence review forum for monitoring

Sharing of success stories

FUNCTION OF AMUL QUALITY CIRCLE

Trained around 200 sales executive as internal consultants

These consultants trained around 3600 distributors

These AQCs meet on 3rd Saturday of every month at a WD location

GCMMF FFRs are the facilitators for this meeting

Depots have specific agenda for this meeting

In addition to the above , ho-distribution dept. also sends HO AQC

agenda to all depots for the above meeting

Venue of meeting is decided basis so that each WD gets a chance to the

meeting


41

AQC an excellent forum for dissemination of information, policies,

strategies.

AQC used as a forum for cascading quality initiatives like kaizen , house

keeping

AQC used for solving pain areas in the market through self-leadership

ORGANIZATION CLIMATE SURVAY

Survey conducted among all employees to identify pain areas. The

performance appraisal system (leads) has been redesigned based on the feed back

ELEMENTS OF ORGANIZATION CLIMATE SURVEY

Total quality management

Communication

Recognition

Leadership

External customer orientation

Accountability

Rewards

Career development

Development

Performance appraisal

Creativity

Team work

Job content

Inter personal relationship

Discipline

Belongingness

Quality of work life

Social security

Working condition


42

QUALITY INITIATIVES AT MEMBER DAIRIES Formation of member union steering council of TQM

Regular monitoring of initiatives at the member union steering council

Provided consultancy on

Appreciative inquiry

Kaizen

House keeping

SGA

VMS (vision mission strategy) workshop

QUALITY ACCREDITION

10 milk union have received ISO- 9000 certification

250 villages societies have got the ISO- 9000 certification

Mother dairy Gandhinagar has received ISO – 14000 and ISO- 9000

certification

3 milk union have received ISO- 14000 certification

SCOPE OF TOTAL QUALITY MANAGEMENT


43

KEY LEARNING TQM is a management led , never ending process in which top

management commitment is successful

Improvements are very often intangible. Therefore , faith plays an

important role AMUL


There are always more non-believers than believers

There is always a tendency to go back to the old ways

TQM is like trying to change the tyre while the car is running.

There is never enough time or people

When people stop talking about TQM , it is the first sign that TQM

has taken root

The time to start is right now

Content ………………..

Key activities

Recruitment

Training and competency development

Compensation management

Performance management

Facilitating change management and tqm programs


45

PERSONNEL AND HUMAN RESOURCE DEVELOPMENT

What is personnel and human resource management?

HRM is a management function that helps organization to recruit,

select, train, develop and manage its members. Simply stated, HRM is all about

management of people in the organization from Recruitment to Retirement. HRM refers

to set of programs, functions, and activities designed and carried out in order to maximize

both employee as well as organizational effectiveness.

Definition - “HRM is planning, organizing, directing and controlling of the procurement,

development, compensation, integration, maintenance and separation of human resources

to the end that individual, organizational and social objectives are accomplished.”

Our goal is to integrate the individual employee in the culture of

the organization , and provide him/ her job satisfaction , job

enrichment and quality of working life

To ensure this I strive attract and retain quality manpower by

recruiting the best talents and developing the required

competencies keeping in mind their roles and responsibilities. I

would continue to facilitate the quality movement in the

organization.

SKEY ACTIVITIES Recruitment


46

Training and competency and development

Manpower planning and redeployment

Competency mapping

Structuring of benefit programs and employee related policies

Operational HR activities

Facilitate change management and TQM programs

Measurement and audit

Compensation management

Performance management

RECRUITMENT Front line sales and staff recruitments decentralized

Recruitment guided by the organization recruitment policy

Executive, middle and senior management recruitment done

centrally from corporate head office

To provide flexibility to organization and to meet manpower

needs, I have entered into secondary sales force out sourcing with

MA Foi on trial basis

Use campus visit and multiple screening process to recruit

competent talent

TRAINING AND COMPETENCY DEVELOPMENT Induction training

External training

Competency development for sales force

Development centre for senior managers for generic competency

development

TQM training

MAN POWER PLANING AND REDEPLOYMEWNT 5 year man power plan, reviewed annually through a manpower

planning exercise

Redeployment and recruitment needs are identified

Accordingly recruitment plan is made


47

STRUCTURE OF BENEFIT PROGRAMMS AND EMPLOYEE RELETED POLICIES

Policies for housing loan , vehicle and soft furnishing loan

Policies for lien , where in employees can retain employment with

GCMMF for the a period of 1-2 years, while working in another

organization in the sector or while going for advanced studies

Provision of official vehicles and health insurance for senior

management etc.

COMPETENCY MAPPING Functional competencies have been identified

Generic competencies have been mapped for top management

place

Competencies mapping for other function is underway

OPERTIONAL HR ACTIVITIES Operational issues like transfer letter , promotion , confirmation,

appointment , reappointment etc.

Implementation of EAIS HRM module. Personnel records and

service history of employees are available online

MEASUREMENT AND AUDIT (through OCS, performance audit etc.)

Organizational climate surveys carried out in 1995, 2000 and 2006.

Performance audit exercise carried out in the year 2000

COMPESATION MANAGEMENT Compensation revision carried out in the year 2006

Implemented the first organizational performance linked incentive

scheme in the year 2002-03


48

Performance incentive scheme is linked to organizational

performance in terms of sales turnover growth over previous year.

Incentive amount is graded based on sales growth and grade of

employees to ensure differentiation between high depots and low

performing ones

100 % of consumer packs sales and 10 % of bulk sales are

considered for PI distribution to ensure focus on consumer pack

sales.

PERFORMANCE MANGEMENT

Leads is based on PDCA cycle

Begin with performance planning , followed by mid year review

and identification of developmental needs and concludes with a

year end evaluation and identification of training needs

Performance planning meeting begins again with last year data as

one of the inputs

Vertical integration through Hoshin Kanri meeting

LEADS primarily for development purpose, through referred to

during promotion

FACILITATING CHANGE MANAGEMENT AND TQM PROGRMS


49


50

TWE

TEI TQC

MISSION VISION STRATEGY

CONTENT……………………..

Definition

Marketing enviornment

Market mix

The marketing function

Structure of the marketing function

Managing brand planning equity

MARKETING DEPARTMENT :


51

Marketing is very important function in any industry. Every company has to handle its marketing function with care. As the whole world is turning into a global market, marketing function is getting more and important in every company. The term marketing is changing in the world. Now selling product by advertising, it is not only the function of marketing. But in this new world marketing puts weight age on satisfying consumer needs. If the market does a god job understanding consumer needs, develops product that provide superior value and price, distributes and promotes them effectively. These products will sell very easily. The marketing function at GCMMF aims to understand the taste and nutritional requirements of the customers of the world and strives to satisfy these requirements with food-products of the best quality and at the most reasonable prices. DEFINITION OF MARKETING:

“Need and want through creating, offering, and exchanging products and value with others.”

MARKETING ENVIRONMENT:

The broad environment consists of demographic environment, economic environment, natural environment, technological environment, political and legal environment, and socio-cultural environment. Marketer must pay close attention to the trend and development in this environment and make timely adjustment to their marketing strategies.

TARGET MARKETS:

Companies do best when they choose their target market carefully and prepared tailored marketing programs.

COMPETITION:

Competition includes all actual and potential rival offering and substitutes that a buyer may consider. There are four levels of competition for any company and their following brand, industry, form and generic competition.

ADVERTISING:

Advertising can be traced back to the very beginning of recorded history. Any paid form of non-personal, Presentation and promotion of ideas goods or services by an identified sponsor are known as advertising. Advertising is very important tool to combat competition.

GCMMF success lies in its excellence advertisements in the market. In the beginning GCMMF was nothing that much important on advertisement. But after sometime it


52

understand that if it were to enter in the Indian market, it would have to advertisement its product largely in the market so it stated advertisements its products in different media.Just recently it has adopted a new message or slogan that says "Amul, The taste of India" and GCMMF has recorded 12% rise in the sales of its products. GCMMF has made its products very popular by advertisement in all the parts of India MEDIA SELECTION:

Media selection involves findings the most cost-effective media to deliver the desired number of exposure to the audience.Major Media Types

o News papero Televisiono Radioo Magazineso Internet

Marketing activity of AMUL is performed by GCMMF (Gujarat Co-operative Milk Marketing Federation). Total 90% of AMUL’s products are marketed by GCMMF except liquid milk.Till 1960 AMUL was marketing their product on its own, but there were many problems against such direct marketing and therefore the idea of marketing federation was turned into establishment of GCMMF.

Thus, the federation was established in 12-9-72 for marketing the product of all dairies in Gujarat.

GCMMF has done all the functions of marketing for AMUL. GCMMF sends monthly market requirements data to the unit and accordingly the unit works for the fulfillment of the order.

THE MARKETING FUNCTIONThe marketing function comprises three

Primary sub-function:-

managing brand equity

expanding market size and market share

facilitating business growth through relevant diversification

STRUCTURE KOF THE MARKET FUNCTION


53

DISTRIBUTION INFRASTRUCTURE MNAGEMENT


GM

AGM MARKETING

SUPPLY CHAIN1ST LEG

COMMODIYMARKETING

BRAND MANAGEMENT

COMMERCIAL

VARIUS PSODUCT MANAGERS, HANDLING DIFFERENT DAIRY –PRODUCT GROUPS

54

curd

khoamilk

ghee

butterothers

WORLD MILK PRODUCTION

0

500

1000

1500

2000

2500

1 2 3 4 5 6 7 8 9 10 11 12

yeartotal buffalo milk

cow milk

INDIA IS WORLD LARGEST MILK PRODUCER

15% OF THE WORLD’S PRODUCTION

COW MILK-35% BUFFALO MILK-65 %

ACCOUNT FOR 17% OF AGRICULTURAL PRODUCTION IN INDIA

LARGEST BOVINE POPULATION -276 MN

CAGR: 4.2 % PER ANNUM

INDIA MILK PRODUCTION TREND

SOUTH

EAST

WEST

NORRTH

Milk utilization pattern


55


56

Content ……………………...

What is export?

Gcmmf export performance


57

EXPORT DEPARTMENT

What is export?

- physical export: when the goods cross the territory of the country

- deemed export : when the goods are sold to a buyer in India and

the buyer in turn dispatches the goods out of country

GCCMF: EXPORT PERFORMANCE 1999-00 RS. 20 CR.

2000-01 RS. 41 CR.

2001-02 RS. 78.5 CR.

2002-03 RS. 73.6 CR.

2003-04 RS. 44 CR.(shortage in domestic market)

2004-05 RS.115 CR.

2005-06 RS.134 CR.

2006-07 RS. 60 CR.(ban on milk powder export)

Winner of 10 consecutive APEDA awards and various other for

excellence in dairy product export

Launch of ethic amul products in developed countries like USA,

SINGPORE , MIDDLE EAST etc.

WEST ASIA

UAE , BAHRAIN ,OMAN ,KUWAIT, SAUDI

AMUL UHT MILK, GHEE,BUTTER,

CHEESE,SLICE,SMP,PANEER,NUTREMUL,SHRINKED&

GULABJAMUN REGULARLY EXPORTED

USA

LAUNCHED IN November 98

AMUL BUTTER

AMUL CHEESE

AMUL SHRINKED

AMUL GULAB JAMUN

AMUL FRIED PANEER


58

AMUL MALAI PANEER

Vary encouraging consumer response

South east Asia - Bangladesh ; smp in buck packs, exported on

regular basis

Lunch all amul product in Singapore

FCMP and nutramul to MOD , Myanmar

Launched UHT in SL. HK, Philippines, laos

Bulk SMP to SL , china Singapore Thailand

AUSTRALIA

amul ghee

amul gulabjamun

amul cheese

amul paneer

Africa

export of nutramul south Africa

SMP in 25 kg bags to Uganda, Tanzania and Botswana

A very potential market for future

Exports: sales promotion

advertising in leading papers in gulf

a unique “fly me home “ contest in gulf has given a very good

consumer response

advertising in leading Indian dailies

Zee USA and ZEE middle east

Mode of payment

advance payment

cash against document

document on acceptance

letter of credit


59

Content……………………

Goal and objective

Product quality

New product development

Reduction in cost and increase in productivity

Consumer and trade quarries

Granding og product

Market qc survey

Consumer and trade complaints


60

QUALITY ASSURANCE DEPARTMENT GOAL AND OBJECTIVES

product quality

new product development

technical up gradation

customer satisfaction

technical support to organization

reduction in cost and increase in productivity

PRODUCT QUALITY

uniformity : benchmarking , uniform testing , methods

consistency : product testing at regular frequency during production,

packaging , before and after dispatch

safety : hygiene audit+ HACCP at all MUs

uniformity : benchmarking , uniform testing , methods

consistency : product testing at regular frequency during production,

packaging , before and after dispatch

safety : hygiene audit+ HACCP at all MUs

product quality

new product development

technical up gradation

customer satisfaction

technical support to organization

reduction in cost and increase in productivity

NEW PRODUCT DEVELOPMENT

Understand customer need

Conception of new product formulation

Trial/testing/feed back/ tuning

Pilot testing / standardization

Launch

PDCA


61

TECHNICAL SUPPORT TO ORGANISATION

Packaging material specification

Vendor development process

Storage/ handling guidelines and maintenance

Awareness of product and its usage

Reduction of product and its usage

Reduction in marketing expenses

Up gradation of market hygiene

REDUCTION IN COST AND INCREASE IN PRODUCTIVITY selection of right technology for product manufacturing and packaging

balancing production cost and cost for quality to get the product quality

which is the best value for money

CONSUMER AND TRADE QUARIES

Prepare a report and presentations based on benchmarking and literature

Circulation of relevant literature – member union and depot

GRADING OG PRODUCT Benchmarking of the product standard Product grading Competitors product grading Feed back to marketing department , depots and member union

MARKET QC SURVEY Inspection of storage condition by QCs and suggestion for improvement

to depots and member Packed product examination Stock age examination

CONSUMER & TRADE COMPLAINTS Inspection and verification of complaint Correspondence with customers Liaison with depot for settlement Liaison with MUs and depot for technical guidance Corrective/ preventive measures MIS


62

Content ………………………

Purchase finalization of pkg. for member union

Monitoring of supplies

New pack development and introduction

Scanning the marketing

Visit to suppliers

Inventory of packaging material at member union


63

PURCHASE DEPARTMENT

PURCHASE FINALIZATION OF Pkg. MTRL. FOR MEMBER UNION

Indent and performance evaluation reports from dairies for

suppliers/indent from marketing department

Approval of list of suppliers for sending enquiry on data on firm

list

Approval of specification

Floating of enquiry

Comparative statement

Costing

Back up data

Proposal to purchase committee

Rate approval letter

EMD/ST handling

MONITERING OF SUPPLIES

Placing of purchase order by dairies

Timely deliveries

Timely release of payment

Quarterly supply position

Coordination/follow up with MUs

Coordination/follow up with suppliers

NEW PACK DEVELOPMENT AND INTRODUCTION

Identify packing material requirement

Formulation of specification

Obtain confirmation from marketing/qc/member union for

specification

Design/art work approval from marketing

Obtain 1/3 quotations for MDs approval

Release of ral for trail order


64

Coordinating with marketing dept. and QC dept. for printing

design, printability etc.

Follow up feed back

Modification, up gradation in spcn, material, supplies if required

SCANING THE MARKETING

Scanning of information from publication and periodical

Meeting new vendors

Attending of different packaging / purchasing conference

Develop contact and to feel the pulse of the industry

Undergoing short and long term training program at iip,

ipcl,irma,iim etc

VISIT TO SUPPLIERS

To scan the infrastructure facilities and technical know how

available

To ensure facilities are as per requirement and best in the country

To ensure raw material are used as per our requirement

To ensure that the production processes are as per our requirement

To study the capability of new vendors before their regn. On our

list

To asses competitors or other industries packaging material/de

To asses off takes of competitors/ other organization indifferent

packaging material which will give us an ideas of their competitors

sale

INVENTORY OF PACKAGEING MATERIAL AT MEMBER UNION

JUST IN TIME / MOQ ETC.

PRODUCTION PLANING AND MONTH WISE PRODUCT

ALLOCATION IN PCM

VENDOR SELECTION

VENDOR DEVELOPMENT


65

Content ……………………

Branch account and book processing

Finalization of account /budget review

Ho-payment

Milk pool

Providing fund trust account

Pay roll

Taxation

Internal audit and statutory audit


66

HO – ACCOUNTS DEPARTMENT

BRANCH A/C AND BOOK PORCESSING

To receive disbursement a/c and sales record from all depots

To pass merging entries in the books of account

Ledger processing. Reconciliation of branch/ depot account

FINALISATION OF ACCOUNTS/BUDGET REVIEW

Roll up EIAS data/ grouping and finalization of profit and loss a/c

and balance sheet

Prepare quarterly/annual accounts including projections

Prepare budget review statements

Scrutinize expenses with budget provisions

Prepare operating income statement

HO-PAYMENTS

To prepare payment vouchers/jv for making payment to wards

advertisement expenses, local conveyance, services purchase of

miscellaneous items

To check the payment of bills with contract/ purchase orders

To coordinate in finalization of account

Asset accounting /EMD/SD accounting

MILK POOL

to make advance payment and final payment to MUs in respect of

liquid milk under milk pool

to pass its entries and distribute the difference so arrived through

milk pool to MUs

to prepare MIS data regarding milk, etc

PROVIDING FUND TRUST ACCOUNTS

To keep p.f. a/c of staff


67

Invest fund in govt. securities and keep records

To file monthly returns with RPFC as an exempted pf trust

Process loan application and maintain its account

To settle pf a/c of ex-employees

Prepare income and exp. a/c and balance sheet of pf trust

PAY ROLL

To make salary payment for HO employees

To make statutory payment such as professional tax , income tax

and payment of other institution like lic, anandalaya

Deal with LIC on gratuity/group assurance schemes

Settlement of dues and benefits of out going /retired/expired

employees

TAXATION

To file income tax and sales tax returns

To follow up for assessment hearing

Prepare HO sales journal

Reconcile sales tax accounts

INTERNAL AUDIT AND STATUTORY AUDIT

Appointment and renewal of audit firms at all depots

Receive monthly audit report from all auditors and compilation of

audit observation

Compliance of internal audit and statutory audit queries and

pertaining to ho department

Follow up and ensure implementation of suggestions auditors


68

Content …………………

Milk chain

It initiatives

Entities identifies by us

Amul ebiz coverage

Service under internet sewa governance initiative

Uniform erp solution for member dairies

EIAS modules covers

Integrated erp system

Amul online erp

Information resource management


69

INFORMATION SYSTEM DEPARTMENT

The milk chain

Milk union

gcmmf

Zonal offices

Depots and C&F

Whole sale dealer

Retailer


70

IT INITIATIVES

Identified the major entities in the business process of the GCMMF

Came up with suitable IT initiatives to facilitate the exchange of

information and to aid the business strategy

ENTITIES IDENTIFIED BY US

FARMERS

CHILING PLANT

UNION

TRANSPORTAER

MARKETING HO

ZONAL OFFICE

SALES DEPOT OFFICE

GODOWNS

DISTRIBUTER

RETAILER INCLUSIVE AMUL PARLOURS

CONSUMER

AMUL eBIZ COVERAGE

5 MN NET USERS

3000 SCREEN

600 SCREEN + VPN/WAN

DISTRIBUTORS 3000+

RETAILER 500000+

CONSUMERS 20 MILLION +

MEMBER UNION 12 UNITS, 10000+

VILLAGE COOP.10582

FARMERS 22 MILLION

SERVICE UNDER INERNET SEWA GOVERNANCE INITIATIVE

e-mail to farmers

e-public library and games

Astrology and jobs


71

job and educational application forms

govt. official forms documents

children club

bus and train time table

Palanpur market yards prices

doctors interaction voice chats/consultancy using web cam at kiosk

auction

agriculture e-question and answers

UNIFORM ERP SOLUTION FOR MEMBER DAIRIES

Process driven oracle e-business suite 11i ERP implementation

Successful implementation at Mehsana Dudhsagar Dairy and

mother dairy Gandhinagar

Inter face with EIAS& web EIAS

Rollout to other dairies is in process now

EIAS MODULES COVERS KEY BUSINESS MODULES

Production planning and control

Sock and dispatch control

Market planning , advertising and promotion

Distribution net work planning

Sales and sales accounting

Commercial

Asset management

Export management

Retail management

Quality control management

Purchase

Bulk direct sale management

SUPPORT MANAGEMENT

Financial accounting

Management accounting

Budgetary control

Payroll and human resource management


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Internal audit management

IS management

Administration

Cooperative service management

INTEGRATED ERP SYSTEM

EIAS developed on oracle d2k

System is platform independent

Use of flat file technology and scheduled online FTP for provide

for priority data transfer

It provide a low cost alternative to the requirement of continuous

connectivity for data transfer

The selected process of core EIAS has been web layered using

three tier architecture with oracle 9Ias

AMUL ONLINE ERP

Web inference for the EIAS developed for extending the reach of the system to

the different participation of the supply chain.

It use the latest 9i oracle application server and front end internet explorer

Developed using oracle form/6i tool

Web enabled EIAS will reduce the time lag between the actual events and data

reception. Now the data will follow physical traveling of the gods from the

manufacturing location to the go down from where they are eventually sent to the

WDs/retailers.

At any given time we can find out the pipeline inventory with complete accuracy.

Suppliers and transport are given log in ids so that they too can log in to the system and

orders, assignment and pending issues.


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INFORMATION RESOURCE MANAGEMENT

THE ISD IS COMPRISED OF 3 FUNCTIONAL GROUPS:

1-USER SUPPORT GROUPS

Facilities to encourage, train and support end users to use

computers directly, generate reports and develop application

Promoting the ISD facilities and benefits at all levels in GCMMF.

Monitoring the effectiveness of system of system developed and

providing feedback to application system group.

2- TECHNIAL SUPPORT GROUP

Technical support group comprises of application system group,

database management group and net work management group

Application system group is responsible for the actual analysis

design, development and testing of the application system in

GCMMF. The primary responsibility of this group includes system

design and development, documentation and testing, system

conversion and migration, inference management and version

control.

Database management group would be the database administrators

for the information dept. the responsibility of this group includes

overall database design and maintenance, regulation of the

software, security of the hard ware in terms of fire, corruption and

hard disk failure.

Since electronic communication net work across GCMMF offices

is vital to GCMMF, the net work management group plays

important role to control and monitor the environment, net work

administration, configuration management and performance

monitoring, planning of net work architecture and up gradation.

3 - FACILITIES AND MAINTENANCE GROUP

The major function of this group is to ensure that hardware and

Software is working satisfactorily


74

ensure that ISD is equipped with adequate stationary for printing ,

magnetic media and other items indenting for the same

liaison for insurance and annual maintenance contract for hardware

and software

maintain log down time of equipment

ensure system back up at intervals

plan for crisis management

educate the users on proper usage and handling of equipment


75


Purpose

Role of the distribution

Guidelines for dry go down

Guidelines for cold storage

Wholesale dealer proposal

Budgeting


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DISTRIBUTION DEPARTMENT

PURPOSE: to facilities creating necessary infrastructure for efficient flow of our

product across the country in a most cost effective way

To create a database of information for decision making

ROLE OF DISTRIBUTION: All proposal for hiring/ renewal of WC& F are submitted

by depot, duly recommended by zonal manager to distribution.

business handled in MT and cases

existing agreement period

existing remuneration paid: fixed and variable

proposed rate/ remuneration

over all increase in remuneration

validity period

GUIDELINES FOR DRY GODOWN

1. Pallets should be present in good condition.

2. Lighting – tube light preferred.

3. Calibrated thermometer in the go down for daily measurement and recording of

temperature.

4. Proper ventilation for better circulation of air and for preventing

birds/insects/rodents entry.

5. Enough number of exhaust fans to keep the area cool.

6. Stack marking on floor be painted keeping 18th space from wall and leaving

enough space between stacks.

7. Proper bin cards on each stack duly updated with all details.

8. FMFO must be maintained

9. General maintenance like repairs of walls, floor and ceiling.

10. House keeping upkeep.

11. Stock under observation and not for sale must be kept segregated.

12. Faster destruction of complaint stock.

13. Insistence of iron angle and proper loading in case of stock transfers etc.


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GUIDE LINES FOR COLD SSTORAGE

1. Temperature of cold storage 0 to 2`availability of data logger

2. chocolate chamber temperature : 16 to 18 c wherever possible

3. pallet should be present in good condition

4. lighting – tube lights preferred

5. temperature should be recorded twice a day and recorded in the log book

6. recorded product temperature at least once month

7. pattern of stacking allow cold air to circulate, making of space for stacking away

from walls

8. bin cards on stock to be properly kept and updated with all details

9. FMFO should maintained

10. exclusion of all smelling items

11. general maintenance like anti fungal paint, repairs of walls

12. house keeping upkeep

13. frequent visits by depot staff, making a report and sending to HO/QC regularly

14. Frequency of fumigation, rodent control, pest control and refilling fo

extinguishers.

15. stock not for sale, faster destruction, stock under complaint should be segregated

WHOLESLE DEALER PROPOSAL

1. Is he distributor really interested in our line?

2. How well established is he?

3. what is his reputation among the trade/

4. What other allied lines does the distributor handle?

5. What is his financial position?

6. What is the territory he covers?

7. What is the manpower?

8. What are its qualities for these activities?


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BUDGETING

Budgeting involves the statement o future plans in specific

numerical terms, usually financial accounts.

The process ads planning and coordinating as well as control.

Basic tool manage our operation.

PROCESS

Sales budget (mkt.dept.)

sending of expenses budget papers to depot

processing of paper by distribution by analyzing each head

prepare a master budget

preparation of board resolution

board recommend to annual general body meeting

AGM approve the budget

Conveying depot wise budget


79


Distribution channel

Appointment of wholesale dealer

Structure of sales depot


80

SALES DEPOT

Depot has an important place in the whole distribution net work. A typical distribution

channel in GCMMF ltd. is as follow:


81

In case of such structure all the entities have their own specific role to play and

they have to be coordinated in terms of tome, transaction and operation, Besides such a

structure reduces the burden of storing or selling a product just on one entity. The depot

also helps in better coordination and provides a link between the consumer and head

office. This is because of the proximity to the market the supply is being made.

In India 52 sales Depot, in Gujarat, there are two depot

1- VAGASI, ANAND

2- AHMEDABAD

THE ANAND DEPOT COVER MADHYA GUJARAT, PANCHMAHAL

AND SOUTH GUJARAT

APPOINTMENT OF WHOLESALE DEALER

As the market share increase the depot in charge may divide the area

under on dealer into two or more area under different dealer. This is done for

better servicing of the retailers. It is taken care that business ode the provides WD

does not suffer to such an extent that he loses interest in the business.

Applications are invited from interested parties for the appointment of WDs. The

application are visited an information of financial stability, previous service

record in similar kind of work are checked. The WDs have to provide bank

guarantee, vehicle for transport, sales man etc. Once the above criteria are

fulfilled the depot gives a preface list short listing the candidates. The head office

has the final say in selecting the WD in consultation with the depot.

The company should also take

physical verification

insurance

product complaint handling

allocation invoice

BAS AND FAS packages

Price working


82

Terms of payment

Hiring of go down

Field sales representative :

FSR has to fill daily sales report form. The form has been designed to obtain

information about the stock position of the product in the various retail outlets. also keeps

a tab on competitor activities. It provides information about the consumer off take, MRP

and the margin of the competitors.

STRUCTURE OF SALES DEPOT

DEPOT INCHARGE

SENOIR EXECUTIVE

JUNIOR EXECUTIVE

EXECUTIVE SALES

FIELD FORCE REPRESENTATIVE

PILOT SALES MAN


83

THE AMUL SHOP

Amul "Utterly Delicious" Parlours

Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlours

created in major cities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and

Surat. Amul has plans to create a large chain of such outlets to be managed by

franchisees throughout the country. We have created Amul Parlours at some prominent

locations in the country, which are run by the company or its wholesale dealers:

1. Delhi Metro Rail Corporation

2. The Somnath Temple

3. National Institute of Design

4. Infosys Technologies in Bangalore, Mysore & Pune

5. Wipro campus in Bangalore

6. L.J. College, Ahmedabad

7. Ahmedabad Airport

8. Surat Municipal Corporation

9. Delhi Police

10. Gujarat State Raod Transport Corporation

11. Jubilee Mission Medical College, Trichur, Kerala


84

12. Sanjay Gandhi Hospital Parlour, Amethi

13. Indian Institute of Management, Kolkata

14. Cafe Amul, MDG, Gandhinagar

"Amul Utterly Delicious" parlours are an excellent business opportunity for investors,

shopkeepers and organizations. In order to come closer to the customer, we have decided

to create a model for retail outlets, which would be known as "Amul Preferred

Outlets"(APO).

ACHIEVEMENT OF AWARDS BY GCMMF LTD.

Ramakrishna Bajaj National Quality Award-2003The Gujarat Co-operative Milk

Marketing Federation Ltd. has emerged as the top scorer in the service category of the

prestigious IMC Ramkrishna Bajaj National Quality Award - 2003. The Certificate of

Merit was presented at a glittering ceremony held at Mumbai on March 11 by the

Governor of the Reserve Bank of India, Dr. Y. V. Reddy.

INTERNATIONAL CIO 100 AWARD FOR RESOURCEFULNESS

GCMMF is a winner of the prestigious international CIO 100 award from IDG's CIO

Magazine, USA. The 2003 CIO 100 award recognizes the organizations around the world

that excel in positive business performance through resourceful IT management and best

practices.

This CIO International IT excellence Award has recognized the Cooperative Movement

& its Leadership under the "Amul" brand, initiated by Dr. V Kurien, Milkman of India,

whose main Motto is to build Indian Society economically & literally strong through

innovative cooperative resourceful network, so as to provide quality service & products

to the end consumers and good returns to the farmer member.

Rajiv Gandhi National Quality Award – 1999

After creating ripples in the market whether it be with a Rs. 20/- Pizza or with a "real" Ice

Cream, Amul has done it again. But this time, it is not only for new product launches or


85

giving a tough fight to best of the food companies in extremely competitive segments, it

has now topped as the winner of the "Best of All" Rajiv Gandhi National Quality

Award for the year, 1999.

Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit

"Sh VK Singh, IAS, Managing Director, Punjab Cooperative Dairy Federation accepting

2007 IDF Marketing Award from Sh Jim Begg, President, International Dairy Federation

for Amul Prolife Probiotic Ice Cream on 3rd Oct 2007 at World Dairy Summit, Dublin,

Ireland. Sh VK Singh had kindly accepted award on behalf of GCMMF."


86

GCMMF bags APEDA AWARD for 11th year in a row

GCMMF has bagged award for excellent performance in exports of dairy products for the

year 2006-07 from Agricultural and Processed Food Exports Development Authority

(APEDA), Minister of Commerce, New Delhi. GCMMF has won the award for 11th

time. The award was received by Mr. Raveen Choudhary, our AGM (Z-I), Delhi, from

Hon'ble Minister of Commerce, Shri Kamalnath, in a glittering ceremony held at Siri Fort

Auditorium on 3rd June, 2008.


87

Achievements of the Dairy Cooperatives in India till 2003-04

Reach

The dairy cooperative network is owned by nearly 12 million farmer members. These producers are grouped in nearly 1,08,574 village-level dairy cooperative

societies. The societies are grouped in 170 district-level unions spanning 338 districts. The unions make up 22 state-level marketing federations.

Milk production

India’s milk production increased from 21.2 million metric tons in 1968–69 to 88.1 million metric tons in 2003–04.

Per capita availability of milk increased from 112 grams per day in 1968–69 to 231 grams per day in 2003–04.

India’s 3.8 percent annual growth of milk production surpasses the 2 per cent growth in population; the net increase in availability is around 2 per cent per year.

Marketing

In 2003–04, average daily cooperative milk marketing stood at 14.87 million litres; annual growth has averaged about 4.2 per cent compounded over the last five years.

Dairy cooperatives now market milk in about 200 class I cities including metros and some 550 smaller towns.

During the last decade, the daily milk supply has increased from 17.5 to 52 litres per 1,000 urban consumers.

Innovation

Bulk vending saves money and conserves the environment. Milk travels as far as 2,200 kilometres to areas of shortage, carried by rail and

road milk tankers. India produces 95 per cent of its own dairy equipment, saving valuable foreign

exchange.

Macro impact

The annual value of India’s milk production amounts to about Rs.880 billion.

Dairy cooperatives generate employment opportunities for about 12 million farm families.


88

BUSINESS ANALYSISS

THE GROWTH OF THE ORGANISATION

PARTICULARS AS AT 31/3/2007 (RS. IN

LACS)

AS AT 31/3/2006(RS.IN

LACS)

SHARE CAPITAL 4000 4000

RESERVE 2427.10 2151.90

GENERAL FUND 2239.12 1895.51

FIXED ASSETS 14939.91 12861.97

INVESTMENT 72.91 72.91

CURRENT ASSET

INVENTORIES

17779.16 20700.92

SUNDRY DEBTORS 3076.29 2657.81

CASH&BANK

BALANCES

7337.96 8037.58

LOAN 562.00 788.91

DIFFERENT TAX

LIABILITY

422.67 413.97

LOAN&ADVANCES 29179.40 34533.12

NET PROFIT 1100.81 761.20

IN 2007 THE TURN OVER IS 5200(CR.) (APPROXIMATELY)


89

Sales Turnover Rs. (million) US $ (in million)1994-95 11140 3551995-96 13790 4001996-97 15540 4501997-98 18840 4551998-99 22192 4931999-00 22185 4932000-01 22588 5002001-02 23365 5002002-03 27457 5752003-04 28941 6162004-05 29225 6722005-06 37736 8502006-07 42778 10502007-08 52554 13252008-09 67113 1504

PROFIT IN 2006-1100.38 (LAC) AND IN 2005-761.20 (LAC)

0100002000030000400005000060000

1994-95

1997-98

2000-01

2003-04

2006-07

Series1

GCMMF had an absolute net worth of Rs.1200 Million. The federation reported a profit

after tax (PAT) of ~ Rs.150 Million on revenues of Rs. 52.64 Billion for 2007-08.

CRISIL ‘AAA’ and ‘P1+’ for GUJARAT COOPERATIVE MILK MARKETING

FEDERATION’ bank facilities


90

Rs. 0.23 Billion Cash Credit Limit AAA/Stable(Assigned)

Rs.7.5 Billion Bill Discounting P1+(Assigned)

Rs. 0.30 Billion Short Term Bank Facility P1+(Assigned)

Rs.40 Million Letter of Credit P1+(Assigned)

Rs.40 Million Bank Guarantee P1+(Assigned)

CRISIL has assigned its highest ratings of ‘AAA/Stable/P1+’ to the various bank

facilities of Gujarat Cooperative Milk Marketing Federation (GCMMF). The ratings are

underpinned by GCMMF’s dominant position in the domestic dairy industry, and strong

financial risk profile. These strengths are partially offset by the federation’s exposure to

policy-level, environmental and epidemic-related factors that influence the agro-related

sectors.

SWOT ANALYSIS

STRENGTHS

The major strength of the AMUL Dairy is the different variety of

Milks and a recognized BRAND name.

The increasing demand for these products presents a great

opportunity for the AMUL Diary to increase and scale up the

production.

WEAKNESS

Scarce AMUL Dairy Outlets.

Less Margin given to the Outlet owners to match the existing

competitors.


91

OPPORTUNITIES

There is a scope of business as there is a demand for dairy

products.

AMUL Dairy should open more outlets to get the maximum

advantage of the demand.

Need to put more stress in the face-to-face direct marketing to

reach to the customers.

The increasing demand for these products presents a great

opportunity for t

he

Production.

THREATS

Increasing competition from the other brands.

Strong supply chain management by the competitors.

Strong marketing strategy by competitors by offering the discount

coupons to consumers and providing healthy commissions to the

retailers.

FINDING AND SUGGESTION

HOUSEHOLDS:

1. People have a high consideration for QUALITY and they think AMUL Milk is low in

quality and is also yellowish in color.

Recommendation:

Company should try to conduct camps and awareness programmers in these areas to

overcome this thinking of people.

2. People in these areas have PRICE as the most important factor which effects their

decision to consume. If the company can achieve its target in this area by keeping low


92

margin and by reducing the price then the sales in this area can improve drastically

because in this area the income level of households is not very high.

3. This area being a HILLY Area is the most challenging job for any company to serve.

People want AMUL Milk here but there are no booths in this area.

Recommendation:

If the company can open its Booth in this area it can be the leader as no other company

has its booth in this area except GOPALJEE. The sales can improve to a very big extent

from this area alone since there is demand but no availability.

AMUL DAIRY should also launch certain schemes for Households. It has

schemes for Retailers but not for households. This section being the major user of

milk and in order to enter into a new area such starting schemes can be very

helpful.

Demand and Visibility go hand in hand. If AMUL can do certain promotions as

its competitor AMUL does, then it can attract sales. Promotion with the help of

boards, hoardings etc.

Lastly incase of Households the company should maintain a proper

communication with the Localities or Areas facing problem.

RETAILERS AND MD RETAILERS:

The major problem faced by Retailers and AMUL Retailers is the SUPPLY

problem i.e. problem with the distribution. The company should aim at improving

its SUPPY CHAIN MANAGEMENT.

The company should increase incentives that can increase Retailers Nominal

Income. This can be done through certain Schemes that increase the overall sales.

The company should lay emphasis on proper PROMOTION of the brand at the

Retail Outlet.

The company should get a proper FEEDBACK from Retailers time to time.

Incase they are facing any problem it can be solved timely, without delays.

There is a problem of DATE also being faced by Retailers. The date printed is one

day previous. If retailers get the same day’s milk in the evening (which is not so).


93

CONCLUSION

GCMMF has superior brand equity, a wide product portfolio, well-spread

distribution network, and an aggressive marketing strategy. GCMMF has established the

brand ‘Amul,’ as the leading dairy products brand in India. GCMMF’s has an exceptional

distribution network and its products are geographically well diversified. GCMMF has

always been proactive in maintaining its leadership position in the dairy products

segment, by launching new products, research and development (R&D) initiatives, and

innovative sales strategies to enhance customer satisfaction. GCMMF has grown at a

healthy compounded annual growth rate (CAGR) of 17 per cent over the past four years,

owing to its superior market position. Moreover, GCMMF has a robust financial risk

profile, supported by a steady growth in accruals, a favorable capital structure, excellent

debt-protection measures and strong liquidity. The federation’s gearing was also low at

0.13 times, as on March 31, 2008. Owing to its near debt-free status, GCMMF’s debt

protection measures are excellent: it had interest coverage and net cash accrual to debt

ratios of more than 32 times and 2 times, respectively, in 2007-08.

As a result of the survey it is concluded that Amul is No.1 and this is mainly

because of its goodwill, better quality and fewer prices. The retailers have shown

willingness to keep Amul, which is good sign for GCMMF.

The sales of some of AMUL products have great seasonal fluctuation. The

retailers want to keep most of AMUL product in every season and in an occasion like

festival, wedding, anniversaries etc.

Amul is facing the tough competition from Vadilal, Havmor as well as from the

Mother dairy brands. Especially in Gujarat region the service of wholesale distributor

(WD) is not proper which possess less impression among the retailers. This should be

kept under consideration for having effective service.


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BIBILIOGRAPHY

www.amul.com

Induction program material

Operation management www.google.com Financial management

Human resource management


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http://www.google.com/

http://www.amul.com/


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ANNEXURE

A QUESTIONNAIRE FOR RETAILER

1) Do you know that the Amul is now in bakery items i.e. bread/bun ?

Yes ( ), No ( )

2) Are you interested for selling of Amul products ?

Yes ( ), No ( )

3) How would you rate the following features of Amul items ?

EXTEREMELYIMPORTANT

IMPORTANT SLIGHTLYIMPORTANT

NOT IMPORTANT

PRICEQUALITYTASTEVARITY

4) Average monthly turnover of bread

Amul ___________ Aabad___________Super___________ Others___________

5) Does an advertisement of these products affect positively impact on customers’ purchase decision?

Yes ( ), No ( )

6) What are the customers’ review about these products ?___________________________________________________________________-___________________________________________________________________

7) Do you get any suggestions from customers ? __________________________________________________________________________________________________________________________________________


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8) Do you have any problems regarding these products ?

Yes ( ), No ( )

9) Do you get any scheme from company side ?

Yes ( ), No ( )

10) If no than give your opinion __________________________________________________________________________________________________________________________________________

11) How would you pay the money for purchasing bread ?

By cash ( ), By credit ( )

12) If by credit , how many periods you are allowed ? _________________________________________

13) Are you satisfied with the distribution system of Amul bread ?

Yes ( ), No ( )

PERSONAL DETAILS:

NAME :

ADDRESS :

AGE : Below 25 ( ), 25-40 ( ) Above 40 ( )


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A QUESTIONNAIRE FOR CUSTOMER

1) Do you know that the Amul is now in bakery items i.e. bread/bun?

Yes ( ), No ( )

2) Do you buy the bread?

Yes ( ), No ( )

3) Which are other brand that you are aware of available in the market?

Aabad ( ) Amul ( )Super ( ) Other ( )

4) Which of the following items of Amul you are buying?

Butter ( ) Cheese ( )Milk ( ) Other ( )

5) Which factor you take into consideration while purchasing Bread?

Price ( ) Quality ( )Taste ( ) Varity ( )

6) How often you purchase bread for your family?

Regularly ( ) Occasionally ( ) Rarely ( )

7) Amul has introduced its bread in several package which package do you Purchase?

200GMs ( ) 400GMs ( ) 600GMs ( ) 800GMs ( )

8) What do think about price of bakery product of Amul?

High ( ) Moderate ( ) Affordase ( )

9) How many rupees you spend for purchasing of bread?


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_________________________________________________________

10) Who takes decision for buying bread in your family?

Yourself ( ) Father( ) Mother ( ) Any other ( )

11) Does an advertisement affect to your buying decision?

Yes ( ) No( )

12) Do you want any problems while consuming the bread?

Yes ( ) No( )

13) Are you confortable with instruction given on the package of bread?

Yes ( ) No( )

14) Please mention your monthly income.

Below 10000 ( ) 10000-15000 ( ) Above 15000( )

PERSONAL DETAILS:

NAME :

ADDRESS :

AGE : Below 25 ( ), 25-40 ( ) Above 40 ( )

MARETARIAL STATUS:

Married ( ), Unmarried ( )


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Amul Daiiry