PROJECT REPORT ON

AMUL

SUBMITTED TO- SUBMITTED BY-

MRS. RUCHIKA JESWAL GROUP-1

AMUL INTRODUCTION

Five decades ago, the `Iron Man of India' Shri

Vallabhbhai Patel called for the formation of milk co-

operatives to carry on the milk business. Inspired by the

call, the suggestion was spontaneously taken up,

adopted and implemented by late Shri Tribhuvandas K

Patel and Dr V Kurien - the `Father of the White

Revolution'. Together, they nurtured the concept of co-

operatives and as a sequel to their efforts, what we

behold today is an organization of international repute.

The daily milk production globally has touched 1650

million litres. Owing to White Revolution, India is placed

at the first position in the world, in terms of milk

production.

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.

MISSION:

GCMMF endeavor is to satisfy the taste and

nutrition requirements of the customers of the

world through excellence in marketing by their

committed team. Through cooperative marketing,

they are committed to offer quality products that

provide best value for money.

Their mission is expansion of distribution network,

creative marketing, consumer education and

product innovation.

VISION 2020:

In the last year’s report, the chairman of Amul, Dr.

V.Kurien, had shared their perspective plan for the

year 2020 for the member unions envisaging a

capital investment of Rs. 2600 crores (Rs. 26

billion) and a projected group sales turnover of Rs.

27000 crores (Rs. 270 billion). Their Mehsana Union

has expanded capacity to 9.61 lakh litres per day

at its dairy at Manesar near Delhi. Banaskantha

Union too has embarked on installing new powder

plant and cattle-feed plant which shall be

commissioned soon. New cattle-feed plants are

being put up by Mehsana and Valsad Unions as

well.

McKINSEY’S 7’S FRAMEWORK

The 7’s model is a tool for managerial analysis an action,

was developed by a team of professors from Haward and

Stamford Busines School and consultants from McKinsey

Company.

The 7S’s is a framework for analyzing organizations and

their effectiveness. It looks at seven key elements that

makes the organization successful or not. They are as

follows:

1. STRATEGY

2. STRUCTURE

3. SYSTEMS

4. STYLE

5. SKILLS

6. STAFF

7. SHARED VALUES

STRATEGYStrategy can be defined as the root that an

organization has choosen for its future growth.

Similarly amul follows a systematic and well defined

pattern of strategy, which can be categorized as

Minimum expenditure on advertisement

Focus on delighting customers

Expanding its distribution network for maximum

reach of customers

Minimize its expenditure and pay only 0.5% of its

turnover on salaries against other 7% FMCG

Companies

STRUCTURE

Structure refers to the framework in which the

activities of the organization and its members are co-

ordinated.

Amul which has a 3 tier organizational structure

VILLAGE SOCIETY

DISTRICT LEVEL DARIES UNION

STATE LEVEL FEDERATION

This kind of co-operative structure came to be known

as the “ANAND PATTERN” co-operative system.

Each tier is economically independent.

DISTRICT LEVEL UNION is an affiliate of all the village

dairy co-operative in that particular district. There

are 13 district co-operative milk products union.

VILLAGE SOCIETY comprises of all the persons

residing in the village who subscribes to the shares

of dairy co-operative. There are 13,328 village

socities.

STATE LEVEL- there is only 1 state level apex body of

AMUL i.e. GCMMF (Gujarat co-operative milk

marketing federation)

SYSTEMS

Every organization has some systems or internal

processes to support and implement the strategy and run

day to day affairs. These processes are normally strictly

followed and are designed to achieve maximum

effectiveness.

Amul follows a three tier system at various levels which

are:

VILLAGE SOCIETY

DISTRICT LEVEL DARIES UNION

STATE LEVEL FEDERATION

STYLE

Style refers to the cultural style of the organization and

how key managers behave in achieving organizational

goals.

Amul which has very effective as well as efficient

management system and motivated employees which

help the organization to achieve its goals and objectives.

“ANAND PATTERN” is the management style of Amul. It

has a style of minimizing its expenditure and pay only

0.5% of its turnover on salaries against other 7% FMCG

Companies.

SKILLS

Skills can be defined as the distinctive capabilities of

personnel or the organization as a whole.

Amul,

- Involves people all over the country

- Less than 1% expend on advertisement.

- Distribution channel is vast and strong

300 stock keeping units

46 sales offices

3,000 distributors

5,00,000 outlets

- Provides Value for money products

- Low price with quality products

STAFFOrganizations are made up of humans and it’s the

people who make the real difference to the success

of the organization in the increasingly knowledge

based society. Staff refers to the organization human

resources. Staff refers to how people are developed ,

trained, socialized, integrated, motivated and how

their careers are managed.

Amul,

Members-13 disrict cooperative milk products

Number of producer members -2.79 million

Number of village socities-13,328

Total milk handling capacity-11.22 million litre per

day

Sales-15 million$

SHARED VALUES

Shared values can be described as what the organization

stand for and what it believes in (central believes and

attitudes). This may be to make money or to achieve

excellence in a particular field. These values and common

goals keep the employees working towards a common

destination as a coherent team and are important to keep

the team spirit alive.

Protecting the interest of dairy farmers.

Providing value for money products .

(aims to provide remunerative returns to the farmers and

also serves the interest of the consumer by providing

quality products which are good value for money.)