BUSINESS FAMILIARIZATION REPORT ON INTERNSHIP AT GUJARAT COOPERATIVE MILK MARKETING FEDERATION PVT. LTD.

By
[NAME LIST] [UNIVERSITY REG. NO.]

ANAND CHAUBEY ANIL KUMAR YADAV AWANISH SHUKLA MOHAN TANWAR YOGESH KAMAWAT

11MB8756 11MB8757 11MB8763 11MB8796 11MB8834

III SEMESTER MBA Guide

Dr. PS Gurumurthy
Business Familiarization Report of Internship submitted to the University of Mysore in partial fulfillment of the requirements of III Semester MBA degree Examinations 2012

International Institute of Business Studies #70, 2nd Main Road, Kanaka Nagar, Nagawara, Bangalore 560 032

1|Page

International Institute of Business Studies #70, 2nd Main Road, Kanaka Nagar, Nagawara, Bangalore 560 032

CERTIFICATE

This is to certify that this Internship Report on Organizational Study at GUJARAT COOPERATIVE MILK MARKETING FEDERATION PVT. LTD. is a bonafide study of Anand Chaubey,Anil kr. Yadav, Awanish Shukla, Mohan Tanwar, Yogesh Kamawat , carried out under my guidance and supervision.

Place : Bangalore Date :

[Signature Name of the Faculty Guide]

2|Page

DECLARATION

We hereby declare that this Business Familiarization Report of Internship at GUJARAT COOPERATIVE MILK MARKETING FEDERATION PVT. LTD. submitted in partial fulfillment of the requirement for III Semester MBA Degree Examinations 2012 of University of Mysore through International Institute of Business Studies, Bangalore is our original work and not submitted to any other university. This work has been done under the supervision of Dr. PS Gurumurthy.

Place : Bangalore Date :

[NAME OF THE TEAM MEMBERS] [SIGNATURE OF MEMBERS] [UNIVERSITY REG. NO.]

ANAND CHAUBEY ANIL KUMAR YADAV AWANISH SHUKLA MOHAN TANWAR YOGESH KAMAWAT

11MB8756 11MB8757 11MB8763 11MB8796 11MB8834

3|Page

ACKNOWLEDGEMENTS

This is the pleasure movement for me to explicate my energized intelligence. Thanks to Co-Coordinator Dr. PS Gurumurthy from International Institute of Business Studies, Bangalore For accommodating advice during the research and help provided by them in preparation of this report. This report is guided by their co-operation and practicable suggestion. This study work could be finished within the period. I got chance to recognize my gratitude to all staff to M.B.A. department for making available all facilities to complete the research work. As well as to all others who extended the precious co-operation by providing all documents and details required for this work.

Place : Bangalore Date :

[NAME OF THE TEAM MEMBERS] [SIGNATURE OF MEMBERS] [UNIVERSITY REG. NO.]

ANAND CHAUBEY ANIL KUMAR YADAV AWANISH SHUKLA MOHAN TANWAR YOGESH KAMAWAT

11MB8756 11MB8757 11MB8763 11MB8796 11MB8834

4|Page

CONTENTS
1. Industry Profile 1.1. 1.2. 1.3. Introduction of FMCG Industry Dairy industry in India.. Pg.no.7-11 Pg.no.7-8 Pg.no.8-9

Key drivers affecting the competition in the industry...... Pg.no.9-11 Pg.no.12-15 Pg.no.12-15 Pg.no.16-20 Pg.no.16-18 Pg.no.18-20 Pg.no.21-52 Pg.no.21-33 Pg.no.33-34 Pg.no.34-47 Pg.no.47-52 Pg.no.52 Pg.no.53-54 Pg.no.55 Pg.no.56

2. Company Profile.. 2.1. Introduction of GCMMF..

3. Organizational Hierarchy 3.1. 3.2. Organizational Chart. Product Profile..

4. Study of Functional Departments 4.1. 4.2. 4.3. 4.4. 4.5. Production Department. Finance Department.. Marketing Department.. Human Resource Department IT Department

5. SWOT Analysis 6. Recommendation 7. Bibliography.

5|Page

LIST OF TABLES AND FIGURES

Figure no. Fig.1 Fig.2 Fig.3 Fig.4 Fig.5 Fig.6 Fig.7 Fig.8 Fig.9

Figures name Amul product range Amul overview Amul offices in India Amul sales record Amul external organizational strcture Amul internal organizational structure Process of milk processing in Amul Process of Icecream processing in Amul Amul marketing chart

Page. No. 11 13 14 15 16 17 25 30 36

6|Page

1. Industry Profile
1.1: Introduction of FMCG Industry
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) is products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner.

7|Page

Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The India Brand Equity Foundation (IBEF) estimates a total market size in excess of US$13.1 billion for FMCG industry in 2012. It is expected that by 2013 the size of the industry will become US$ 47 billion & by 2018 it will be US$ 95 billion. The best geographic concentrations for the FMCG industry are following: Urban area. Easy transportation facility availability Easy availability of raw materials Density of population must be quite high.

The FMCG sector consists of the following categories:

Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries,
Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble.

Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household
cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket Colman. Branded and Packaged foods and beverages- Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat, Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur

Spirits and Tobacco: the major players being; ITC, Godfrey, Philips and UB

1.2: DAIRY INDUSTRY IN INDIA: A BRIEF INSIGHT

The dairying in India is as old as the Indian civilization! The herbivores milch animals like cattle and buffalo were domesticated as an integral part of our social system. In the Indian culture the cattle is a symbol of purity and motherhood! Though the practice of milch animal rearing and milking continued over the centuries, but no attempt was made to introduce the modern animal husbandry and dairying practices till the then British rulers thought it appropriate to ensure milk
8|Page

supply to their people, especially for the British soldiers. Accordingly, they established military dairy farm in the North of India, in the early part of twentieth century. They imported animals from their country as well as initiated herd improvement programme, in the military dairy farms. The highest milk producer in the entire globe India boasts of that status. India is otherwise known as the Oyster of the global dairy industry, with opportunities galore to the entrepreneurs globally. Anyone might want to capitalize on the largest and fastest growing milk and mil products' market. The dairy industry in India has been witnessing rapid growth. The liberalized economy provides more opportunities for MNCs and foreign investors to release the full potential of this industry. India has vast livestock resources (57 per cent of the world buffalo population and 16 per cent of the cattle population) and the dairy sector contributes a major share to the agriculture GDP. Over the years the sector has played a major role in development of millions Of rural households and also in the socio-economic conditions. In the WTO era and Globalization the industry needs appropriate production, marketing and trade policy and its Periodic revival to keep the pace with the rest of the world and remain competitive to grab Opportunity regarding international trade.

1.3: Key Drivers affecting the competition in the industry

As we all know, Indias per capita consumption of most DAIRY products is well below the global average. That is largely because of the economic conditions, i.e. the purchasing ability, and also because of lack of awareness of these products.

Logistic Strength
While the purchasing ability is a function of economic growth, awareness is a function of the product reach and its usability. It is in this context, that a companys logistics strength gains importance. But logistics does not only mean a companys reach in terms of retail outlets, it also means the level of sophistication of this distribution reach. For an DAIRY company, once a distribution chain is set up, it is the quality of that set up that gives it an edge. Using the same chain, an DAIRY company can introduce more products and brands at a faster pace and at a lesser cost, and optimize the channel benefits. In the long run, such a distribution network will be more profitable as it helps the company to keep adding to its product folio at more or less the same fixed cost.

9|Page

 MNC Companies
MNC companies form almost half of the branded DAIRY industry in India. In case of MNC companies, therefore, it is relevant to look at the parent support and commitment to its subsidiary before taking an Investment decision. Again, support and commitment alone is not enough. Have a look at the parents product profile and what are its plans for its subsidiary in India. If the parent itself is present only in a few categories globally, all its support is of little help owing to the product hindrance. For all companies, be it domestic or otherwise, a look at the company's product introduction track record is an eye-opener.

Competitive strengths
DAIRY companies success is often attributed to their marketing and branding skills. Ability to continuously create successful brands and advertising which gets the message across often spells success for a company. Once a brand is successful, it easier for a company to piggyback on its initial success introduces more products and associates them with the known brand. As they say, nothing succeeds like successes. As said earlier, the more the number of product offerings, the more each resource is utilized, be it the distribution channel, the marketing or branding strengths. It is in this context, that single or a few product companies are risky. Number one, they have to continuously be wary of competitors coming in and weaning away market share. Therefore, they have to continuously spend higher on advertising and marketing. This is a double whammy for a company under pressure. On one hand, revenues are under pressure and on the other, costs go up and margins are squeezed. Also, due to this, the company is often shy of investing in new products and expanding its distribution network. Bottom line, future growth prospects get stunted. To be competitive in the market, my suggestion to the organization is: Always be creative compare to the rivals. Always do new product development. Quality standard should be developed. New product with more taste, flavor, packing. Logistic facility must be improved. Always be alert of rivals movement

Product related to the Industry

10 | P a g e

Figure 1: Amuls product range

Major competitors in the industry

1. 2. 3. 4. 5. 6. 7. 8.

Nestle Cadbury Britannia Hindustan Uniliever Limited Heniz Pizza hut Dominos Mother Dairy

11 | P a g e

2. Company Profile
2.1: Introduction of Gujarat cooperative milk marketing federation

(GCMMF)
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food product marketing organisation with annual turnover (2011-12) US$ 2.5 billion.Its daily milk procurement is approx 13 million lit (peak period) per day from 16,117 village milk cooperative societies,17member unions covering 24 districts,and 3.18 million milk producer members. It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known as 'AMUL', 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. Its success has not only been emulated in India but serves as a model for rest of the World. It is exclusive marketing organisation of 'Amul' and 'Sagar' branded products. It operates through 47 Sales Offices and has a dealer network of 5000 dealers and 10 lakh retailers, one of the largest such networks in India. Its product range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. Many of our products are available in USA, Gulf Countries, Singapore, The Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 13 years. For the year 2009-10, GCMMF has been awarded "Golden Trophy' for its outstanding export performance and contribution in dairy products sector by APEDA. For its consistent adherence to quality, customer focus and dependability, GCMMF has received numerous awards and accolades over the years. It received the Rajiv Gandhi National Quality Award in1999 in Best of All Category. In 2002 GCMMF bagged India's Most Respected Company Award instituted by Business World. In 2003, it was awarded the The IMC Ramkrishna Bajaj National Quality Award - 2003 for adopting noteworthy quality management practices for logistics and procurement. GCMMF is the first and only Indian organisation to win topmost International Dairy Federation Marketing Award for probiotic ice cream launch in 2007. The Amul brand is not only a product, but also a movement. It is in one way, the representation of the economic freedom of farmers. It has given farmers the courage to dream. To hope. To live.

12 | P a g e

Figure 2: Amuls overview

Amul products have near about 85% market share ( article on the Economic times, 2011).

Vision 1. to reduce infertile animal from their milk unions 2. to improve the productivity. 3. implementing total mixed ration programme Mission
We are Gujarat Co-operative Milk Marketing Federation Endeavor to satisfy the taste & Nutritional Requirement of the Customers of the world through Excellence in Marketing by our Committed team. The Corporation networking we are committed to offering quality products that provides best value for money.

Goal
1. To make India healthy India with our products. 2. To improve the lifestyle of customer.

The key products of Amul are following :1. Amul Milk 13 | P a g e

2. 3. 4. 5. 6. 7. 8. 9.

Amul Butter Amul Ghee Amul Cheese Amul Pizzas Amul Ice Creams Amul Chocolates Amul Skimmed Milk Powder Amulspray The company is having 30 district dairy plants in India. The Company is operated through 47 Sales Offices and has a dealer network of 5000 dealers and 10 lakh retailers, one of the largest such networks in India

Figure 3: Amuls offices in india

The annual turnover of the company is shown in the following table in year wise:-

14 | P a g e

Sales turnover (Year) 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Figure 4: Amuls Sales record

Rs. (Million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 80053 97742 116680

The company itself have a lot of competitive advantages. As such: 1. 2. 3. 4. 5. 6. AMUL the brand name. 1st in the market. Oldest player of the market but with new blood. Its no compromise with the strategy of quality standards. A huge range of product portfolio. The process of THREE TEIR Amul model.

15 | P a g e

3. Organizational Hierarchy
3.1: Organization Structure
Organization Structure is divided into two parts: 1. External Organization Structure 2. Internal Organization Structure External Organization Structure is the organization structure that affects the organization from the outside.

State level marketing federation

District milk product union ltd

Village milk product union ltd

Villagers
Figure 5: Amuls External organizational structure

As we know, GCMMF is unit of Gujarat Milk Marketing Federation, which is a cooperative organization. The villagers of more than 10000 villages of Gujarat are the bases of this structure. They all make village milk producers union, district level milk producers union and then a state level marketing federation is established. The structure is line relationship, which provides easy way to operation. It also provides better communication between two stages.
16 | P a g e

Internal Organization Structure: The following is internal organization chart of Amul:

Figure 6: Amuls internal organization structure The advantage of this organizational structure: 1. It is transparent to all departments. 2. It is flexible in nature. 3. It is helpful to transfer information. 4. It is easy to control the situation. 5. It is a centralized process to perform. 6. Increase the productivity. 7. Increase the profitability.

There are some disadvantages of this organizational structure: 1. It is a time consuming process.
17 | P a g e

2. It increases the cost of operations. 3. It reduces the profitability percentage. 4. It creates a long distance between the employer and employees.

3.2 Product profile of the company:

1. AMUL MILK:

2. AMUL BREAD SPREAD:

3. AMUL CHEESE:

4. AMUL UHT MILK:

5. AMUL BEVERAGE RANGE:

18 | P a g e

6. AMUL ICECREAM:

7. AMUL PANEER:

8. AMUL DAHI:

9. AMUL GHEE:

10.AMUL MILK POWDER:

19 | P a g e

11.AMUL NUTRAMUL:

12.MITHAI RANGE:

13.CHOCOLATE:

20 | P a g e

4. Study of Functional departments

4.1:Production Department
Production department of an organization is responsible for the manufacturing of product with proper utilization of resource. It is the processes of effectively planning, coordinating and controlling the production, that is the operations of that part of an enterprise, it means to say that production and operations .Management is responsible for the actual transformation of raw materials into finished products. The objective of Production Management is to produce the desired product or specified product by specified methods so that the optimal utilization of available resources is met with. Hence the production management is responsible to produce the desired product, which has marketability at the Cheapest price by proper planning, the manpower, material and processes. Production management must see that it will deliver right goods of right quantity at right place and at right price. When the above objective is achieved, we say that we have effective Production Management system. The functions of Production Management depend upon the size of the firm. In small firms the production Manager may have to look after production planning and control along with Human resource, Marketing, Finance and Purchase functions. In medium sized firms, there may be separate managers for Human resource, marketing and Finance functions. But the production planning and control and Purchase and stores may be under the control of Production management department. In large sized firms the activities of Production Management is confined to the management of production activities only. As such, there are no hard and fast rule or guidelines to specify the function of Production Management, but in the academic interest we can mention some of the functions, which are looked after by the Production Management department. They are: (i) Materials: The selection of materials for the product. Production manager must have sound Knowledge of materials and their properties, so that he can select appropriate materials for his product. Research on materials is necessary to find alternatives to satisfy the changing needs of the design in the product and availability of material resumes. (ii) Methods: Finding the best method for the process, to search for the methods to suit the available resources, identifying the sequence of process are some of the activities of Production
21 | P a g e

Management. (iii) Machines and Equipment: Selection of suitable machinery for the process desired, designing the maintenance policy and design of layout of machines are taken care of by the Production Management department. (iv) Estimating: To fix up the Production targets and delivery dates and to keep the production costs at minimum, production management department does a thorough estimation of Production times and production costs. In competitive situation this will help the management to decide what should be done in arresting the costs at desired level.

(v) Loading and Scheduling: The Production Management department has to draw the
time table for various production activities, specifying when to start and when to finish the process required. It also has to draw the timings of materials movement and plan the activities of manpower. The scheduling is to be done keeping in mind the loads on hand and capacities of facilities available. (vi) Routing: This is the most important function of Production Management department. The Routing consists of fixing the flow lines for various raw materials, components etc., from the stores to the packing of finished product, so that all concerned knows what exactly is happening on the shop floor. (vii) Despatching: The Production Management department has to prepare various documents such as Job Cards, Route sheets, Move Cards, Inspection Cards for each and every component of the product. These are prepared in a set of five copies. These documents are to be released from Production Management department to give green signal for starting the production. The activities of the shop floor will follow the instructions given in these documents. Activity of releasing the document is known as dispatching.

(viii) Expediting or Follow up: Once the documents are dispatched, the management
wants to know whether the activities are being carried out as per the plans or not. Expediting engineers go round the production floor along with the plans, compare the actual with the plan and feed back the progress of the work to the management. This will help the management to evaluate the plans.

(ix) Inspection: Here inspection is generally concerned with the inspection activities during
22 | P a g e

production, but a separate quality control department does the quality inspection, which is not under the control of Production Management. This is true because, if the quality inspection is given to production Management, then there is a chance of qualifying the defective products also. For example Teaching and examining of students is given to the same person, then there is a possibility of passing all the students in the first grade. To avoid this situation an external person does correction of answer scripts, so that the quality of answers are correctly judged. In a manufacturing company the production function may be split into five sub-functions: 1. The production and planning department will set standards and targets for each section of the production process. The quantity and quality of products coming off a production line will be closely monitored. In businesses focusing on lean production, quality will be monitored by all employees at every stage of production, rather than at the end as is the case for businesses using a quality control approach. 2. The purchasing department will be responsible for providing the materials, components and equipment required to keep the production process running smoothly. A vital aspect of this role is ensuring stocks arrive on time and to the right quality. 3. The stores department will be responsible for stocking all the necessary tools, spares, raw materials and equipment required to service the manufacturing process. Where sourcing is unreliable, buffer stocks will need to be kept and the use of computerised stock control systems helps keep stcoks at a minimal but necessary level for production to continue unhindered. 4. The design and technical support department will be responsible for researching new products or modifications to existing ones, estimating costs for producing in different quantities and by using different methods. It will also be responsible for the design and testing of new product processes and product types, together with the development of prototypes through to the final product. The technical support department may also be responsible for work study and suggestions as to how working practices can be improved. 5. The works department will be concerned with the manufacture of products. This will include the maintenance of the production line and other necessary repairs. The works department may also have responsibility for quality control and inspection. A key aspect of modern production is ensuring quality. The term quality means fitness for purpose i.e. a product, process or service should do exactly what is expected of it. Amul has installed over 3000 Automatic milk collection system units(AMCUS) at village societies to capture member information, milk fat content, volume collected and amount payable to each member. Each farmer is given a plastic card for identification Computer calculates
23 | P a g e

amount due to farmer on the basis of fat content. The value of the milk is then printed out on slip & handed over to the farmer, who collects the payment from adjacent window.With the help of IT farmers receive their payment within minutes . The organization use the both methods Just-in- time(JIT) & Toatal Quality Management (TQM). JIT is used for the improved dealers' return on investment (ROI) & TQM is used for the improvement of Amul Model. Sources Of Raw Material The one and only raw materials on which the dairy plant function is milk. And as Gujarat has abundant livestock especially cows & Buffalos, availability of the raw material. Lower level or primary level milk producers co-operative make a collection of milk from members producers. members producers are the farmers owing cows or buffalos. They bring milk to primary level societies. The picture on the next page shows the collection of milk through member producers standing in queue. An account of every member producer is maintained which contains the details regarding the fat content, quality and quantity of goods time of collection& the payment due or outstanding. In case of quality of the co-operative must be alert so as to neglect the collection of sour milk and substandard milk. For pricing collected milk importance is given to quality. The milks prices is based on fat and snuff i.e. solid non fat content. it needs to consider the bacterial population in the milk for raw paying milk price. Payment is done on monthly or daily basis depending upon co-operating policy and member preference. This milk is proportionally distributed and brought to various milk processing plant GCMMF is also the same. Operating Analysis As is mentioned is sources of raw materials the one and only source from where they procure milk are village milk societies. Milk is brought on from such village milk societies every morning and evening. This milk is then to the dairy plant. It is here in the dairy plant the milk is processed i.e. it is made free from germs. Milk Processing The entire process of milk can b divided into following steps: Steps: Milk Processing Chart:
24 | P a g e

Collection of Raw-Milk Electronic Milk Test

Methyline Blue Reduction Test Purchasing And Standardizing Process

Separation Process

Quality Check

Packaging Process

Cold Storage Figure 7: process of milk processing in Amul 1. Collection of Raw Milk Raw milk is collected from different co-operative societies of different 470 village of Gujarat. About 122000 liters of raw milk is collected per day. Before this milk is sent to the laboratory for tasting the FAT & SNF proportion, the milk is separated from the raw milk. The milk is taken from the chilling centers to Ahmedabad with the help of 407 trucks. Inside and outside of the tankers the thermocol is to be put. Because of the thermocols the milk is not affect by the outside environment. After collecting the samples of milk are taken to the laboratory. Where two types of tests are conduct.

25 | P a g e

Electronic Milk Test: Before pasteurizing the milk the samples are taken to the laboratory. In the laboratory with the help of machine called electronic milk test, the proportion of SNF & FAT 2.2 m.l. of phesphatic solution becomes yellow than it is sent for pasteurization. Methyline blue reduction test: Another test which is taken in the laboratory is called Methyline blue reduction test. This test is conducted for checking for how long the milk will remain fresh. To check this, 10 ml of milk is taken and 1 ml of methline blue solution is added to it. It is then kept in the test under water bath 57 degree C. after one hour, if the solution losses its colour than it is called raw milk. If the solution remains the same even after 5 hours than it is considered as a fresh milk which remains constant for a long period of time. The proportion of FAT & SAF is fixed by the dairy. The minimum proportion of SNF decided for the first grade buffalo is 6% and for cow it is 4.5% . After laboratory gives green signal and confirming the raw milk at the reception dock is brought in to the house connected with the pump is sent to the milk processing plant. This is than chilled below 4 degree C. and then stored in milk silos. After that milk is processed which has two steps i.e . pasteurizing and standardizing . 2. Pasteurising & standardizing After collecting and checking and conducting laboratory tests the pasteurizing process is conducted. To pasteurizing the milk means to kill all the germs in The milk by a particular method which was invented by a scientist called James Paseure and so the name pasteurization. In pasteurizing the milk is first heated at 72 C to 76 C far 15 second and then it is immediately cooled below 4 C. By this method they destroy the pathogenic bacteria present in the raw milk. But if the right degree of temperature is not provided there are chances that the milk might still contain germs. After this process some milk goes to separator machine and remaining is proportionately sent for standardization. Standardization process is know as such as it bifurcates the milk in 3 categories varying according to that FAT & SNF contents. The equipment named OSTA ---- Auto standardization adjusts the fat directly. The computer is just ordered whether gold or standard milk is to be rationed and the same will be received with appropriate contents.

26 | P a g e

Ready Milk = Pasteurized + standardized. 3. Separation process:

Separator machine separates two kinds of products, skimmed milk & cream, through channels. There are 100 disks fixed in separator machines which has 5000 RPN (revolution per minute). It is taken to the tanks to the tanks which has the capacity of 20000 liters. There are total 8 insulated tanks in the dairy. The milk in every tanks has different position of SNF. Whenever the milk is needed from the tank, it is tasted in the laboratory and the deficit proportion fat is added by mixing cream. This process continue for 24 hours. 4 Quality Check: Pasteurized milk is sent for a quality check in the QUALITY ASSURANCE lab. Of the dairy plant. Within 14 second FAT and SNF proportion is received regarding 30 lacks liters of milk. The total investment put into the lab by the Dairy plant is of RS. 6 crores. This laboratory only checks and analyses the powder and milk and ghee. There is a separate icecream analyzing laboratory. 5 Packing Process: After this the milk is sent for packing to the milk packing station in the dairy plant. In the milk packaging station there are huge pipelines and behind each of them there is polyfill machine from which the material to pack milk comes out. There are 12 such polyfill machines in the packaging station from which the materials to pack milk comes out. From each of these 12 machines 100 pouches are packed in one single minute. Per day each machines having capacity of 50000 pouches. The materials which is used for packaging is called fill farm slip and it is manufactured by a firm called. 6. Storage: Then the milk is sent to the cold storage of the dairy where the milk is stored until it is dispatched. Here the milk is stored at temperature ranging from 5 C to 10 C, it is maintained with the help of exhaust fans having silicon chips. To maintain the temperature for refrigerator amenia is used. About 40000 liters of milk is dispatched from the cold storage of the dairy plant everyday. The damaged pouches are kept a side and the milk is once again put to the tank. Milk Powder When there is excess supply of milk convert some of the excess milk into milk powder. For converting milk powder first of all 505 of water is evaporated plant/condensing plant. By this process they get condensed milk, it is used as raw-materials.
27 | P a g e

There after the milk is sent to the drying plant. The spray drying plant is huge in size with a height of 70 feet abd which of 20 feet. The plant is divided into many floors to enables easy use of the plant. First of all the raw0materials i.e. condensed milk is put into the first floor of the plant along with air at 200 C. by this process the remaining water which the condensed milk might have retained is also evaporated and milk comes as powder but this is not the last stage. This powder is again put in to a machine is called milk calendaria, where it is turned in to real milk powder. Its capacity is 15 minutes 1000 liters. Then again this milk powder is put into a Dense Waise Vessel. Here the lumps are removed and uniform milk powder is sent up. After the processing the powder is sent for quality checking at quality assurance laboratory. After the quality confirms, this milk powder is then differentiated by adding differentiated by adding different flavour to them like elaichi flavor, chocolate flavour & sugar free milk powder. Thereafter they are packed in tins and boxes. Afterwards it is stored at storage department (Torage Plant). In summer the milk production is tremendously increased. Butter Oil (Ghee) After milk separation milk scanning is done. Here excess of cream is extracted form the milk through cream separators. The scanning of milk is done till they get 99% fat and than it is changed in to ghee. The separated and scanned ghee is than sent for quality testing in QAL. After it confirm to the laid standard after checking ghee is sent for packaging. The packaging is done in tin cans or pouches like that of milk and marketed under the brand name of Amul Ghee. The packed ghee is standard in the ghee storage department. Process of Making Ice-cream Milk can

Dump tank

Milk pump

Milk chiller

28 | P a g e

Milk shortage tank

Milk pump

Batch pasteurizer

Milk pump

Homogenizer

Mix chiller

Aging vat

Flavour tank

Continuous freezer

Cone machine

Packing table

Hardening tunnel

Cold storage
29 | P a g e

Cup filling machine

Chocolate coating tank

DISPATCH Figure 8: process of Ice-cream manufacturing in Amul Pollution Unlike many other units this unit has a its own affluent to be released per day set by the GPCB is 1,20,000 liters of affluent per day. Entire the ratio of milk. Affluent in this plant was 1:1:2.but modernization and automation of the unit has now reduced. it affluent generation capacity of the unit. Now it is only 700 cubic liters per day compared to1,20,000 liters earlier. Besides the air pollution by the unit is also minimums as far pollution is concerned this unit has a faire well in fulfilling its social responsibility towards the whole society. 1. Machines & Equipments: Machines are the important factors of production which is highly involved in conversion or processing of raw material into semi finished or consumable finished goods.this machines is used to scan the qualities of milk the percentage of far, solid not fat. And it takes just 14 second for this purpose. The machines cost around Rs.30,00,000. 2. Polyfill Machine: The polyfill machine helps to pack the milk into the pouches of various sizes. One such machines can pack 100 pouches of milk in one single minute. 3. Milk Separator: This machine is used in the production of ghee. The raw-material put into the surplus cream crtracted while processing milk. And from this cream, the machine keeps extracting water out of it until they get 99% fat. 4. Milk Calendria: This machines is used in the production of milk powder. It is used to turn milk in to milk powder. It is kept in the boiler plant of the unit.

30 | P a g e

5. Dense Waise Vessel: This machine is also used in the production of milk powder. After the milk is converted into milk powder it helps to move the lumps form the milk powder. Other Machines & Equipments are as under: Milk tanker Electronic Milk Tester Packeging machine Milk Siolos Hoses & Pipeline for supply for milk Spray dying Machine Boiler and Furnaces Condersors Milk Scanner Pasteurising Machine Lab Equipment It is observed that the technical know how is purchased from L&T, while some of the machine are exported from out sided country. Ice creams manufacturing equipment are purchase from Akta Co., Italy while pouch-packing machine are purchase from France. GCMMF is an automated fully computerized plant. The benefits that are arrived to GCMMF due to automation are; Increased machine efficiency Improved quality of products Reduction of accidents Conversation of manpower Decrease in time of process Reduction of process inventory & working capital required Reduction in cost per unit of production manufacturing Lower cost and higher outputs

Other Departments (A) Quality Assurance Laboratory: Quality can be defined in narrow sense as freedom from defect. However quality has a direct impact on product performance and hence on customer satisfaction. GCMMFS quality assurance laboratory all its products are tested for their respective qualities e.g. for assuring the quality of milk there is a machine called milk scan which scans the quality
31 | P a g e

of milk within 14 seconds. The machine is a fully automatic one and so it cost the unit RS.30 lakh. The whole laboratory itself was get us with an investment of RS. 6 crores. All the activities of the laboratory are controlled from a control room which controls all the activities by a computer.

(B) Milk Packing Station: The primary function of packaging is done to contain & protect the product. In olden days milk used to be distributed in the bottles. But as they broke very often and also due to the difficult in transporting them now a days usually milk is packed in plastic pouches of 500 m.l. GCMMF there is a big milk packaging station. here there are big pipelines through which milk comes out to be packed and behind each such pipeline there is a pollyfill machine. There are 12 such polyfill machine in the plant and each of these machines can pack 100 pouches of milk per minute. The material used for packing is called fillfarmslip. It is a product manufactured by a company called prepack. The unit of mother dairy itself also has a plastic film manufacturing plant in GIDC Gandhinagar. (C) Cold Storage:

As soon as milk is packed it cannot be distributed by the wholesalers to the various retail outlets because it takes time to reach out and besides the time at which the milk is to be made available to the customers has also to be considered. Therefore during that gap the milk is stared in a cold storage of the unit. The temperature in the cold storage ranges from 5C to 10C. and in the night when it is time to distribute the milk, the milk is dispatched from here in big trucks. Among 4,00,000 liters of milk is dispatched from per day. (D) Spray Drying Plant: In this plant the excess milk is converted into milk powder. For this first of all 50% water is evaporated from the milk in an evaporating plant/ condensing plant. This condensed milk is used as a raw material in the spray plant. The spray drying plant is huge in size measuring 70 feet high and 20 feet. This plant is divided in to some floors to enable easy handling. First the condensed milk is put in to the first floor of the plant along with air at 200C. And so the remaining water room which controls all the activities of the spray drying plant like maintaining various levels of temperature etc. by a computer. (E) Boiler: The plant is equipped with large boiler in which a furnace is used to, make steam. I.e. heating water at 90 C to 95 C and this in turn is used to heat milk. The boiler is huge 4-stored plant the activities of which are completely controlled by a computerized control room. This plant includes a machine called milk calendaria where milk is turned to milk powder. The plant
32 | P a g e

also contains a machine called a Dense Waise Vessel which removes the lumps from the milk powder and this fine milk powder is then sent to Rilo, which is a milk powder storage tank.

4.2 Finance department

Finance is rooting of all Industrial a Trading activity. Finance is needed when the business is started. It is required to keep the business going, and it is needed when the business expands. According to Henry Fayol, Finance is like an arm & leg either. You use it or loss it. Thus we can say that the Finance is considered as base for every business & business without finance is shown as dead body. Finance department uses SAP(System Application Programme) to record all its daily transaction as well as to record the inventory and costing is also done through it. The finance department of the organization helps the management to take decisions in all situations. How does it help? It is following:1. 2. 3. 4. 5. 6. 7. 8. In budgeting In risk analyzing In strategy making In costing In new product development In future income ascertaining In hire human resource In studying return on investment

Capital Structure Of Finance The term capital structure refers to title production of debt and equity capital in the total capital of the firm capital structure says that how much proportion of owned capital and borrowed capital the firm should invest to meet its financial needs more effectively. The capital structure affects the total value of the firm. So the firm should select such a capital structure that will maximize to us the optimum capital structure. The optimum capital structure may be defined as that capital structure of combination of debt and equity that leads to the maximum value of the firm. In AMUL Industries the retie of bank loan depends up on the circumstance. Depending on the balance sheet analysis of a firm.

Total Capital = Owned Capital + Borrowed Capital

33 | P a g e

= 50.18 % + 49.82 % = 100.00 % Significant of Accounting Policies

The union follows accrual system of accounting in the preparation.

The financial statements are prepares on the historical cost convention and in accordance with the generally accepted accounting principles. Fixed Assets are values at cost. Depreciation on fixed assets is provided on written down values methods.

Raw Materials, packing Material, Semi Packed Goods And Goods in Transit are valued at cost on FIFO basis. Excise duty applicable on Finished Goods stock has been include in the valuation of Finished Goods. Sales includes excise Duty.

4.3:Marketing Department
Introduction is very vital function in any industry. Every company has to handle its marketing function with care. As the whole world is turning in to 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 weightage on satisfying consumer needs. If the market does a good job understanding consumer needs, develops product that provide superior value and price, distributes and promotes them effectively. This products will sell very easily.

Marketing Environment The concept of markets finally brings as full circle to the concept pf marketing. Marketing means managing markets to bring about exchanges for the purpose of satisfying human wants. Thus we return to our definition of marketing as a process by which individual and groups obtain what they need and what by creating and exchanging products and value with others. The follow will show is the marketing environment of an industry.

34 | P a g e

Above figure shows the main element in a modern marketing system in the usual situations, marketing involves serving for market of end users in the face of competitors send their respective products and message directly to consumer or their marketing intermediaries to the end users. Marketing Aspects Of Dairy Industry Indias diary market is multi-layered, shaped like as pyramid with the base made up of vast market for low cost milk. The narrow tip at the top is a small but affluent market for western type milk products. The bulk of demand for milk, however is among the poor in urban areas where individual requirement is small may be a glassful for use as whitener for their tea. Nevertheless, it adds upto a sizeable volume of millions of litres per day in major urban centres where lays the immense growth potential for the modern sector. Presently, its milk distribution network serves hardly 778 out of 3700 cities and towns, dispensing hygienically segment would double in the next five years. Following readings are important to understand the market structure of dairy industry and what is projected for 2000 A.D. 1. Urban V/s rural market: In 1995 out of the total milk production 44% was retained in rural areas for 72.2% of population; where as 58% of milk was brought to the urban areas for 27.8% population. By 2000 A.D. the rural to urban ratio is projected to be 40:60. It is evident of urban bias in the milk market. 2. Organised V/s unorganized sector: Despite of the fact that under OF (Operation Flood) programme, the emphasis was given on developing organised sector was only 18% in the total milk that was marketed in the urban area. Its share is projected to increase 22% by 2000 A.D. The index for plant capacity is also showing a rising trend for organised sector. The plant capacity is 1950s was around 10,000-20,000 litre per day, it increased to 1,00,000 income per day in 1970s to 5,00,000 income per day in 1980s and to 1 mega litre/day in 1990s. 3. Co-operative V/s government and private sector: Within the organised sector the ratio of co-operative V/s governments department to private sector was 60:40. This ratio is likely to be 50:50 by 2000 A.D. as new private sector dairies are entering in the market as a result of policy of liberalization. The proportion of liquid milk to other milk products in co-operative and government sector was 90:10. The estimation is this ratio will change to 80:20 and 30:70 for co-operative and
35 | P a g e

private sector respectively. This is an indication of growing market of other milk products in the country. Marketing Chart

State Level Marketing Federation

Milk & Milk

Revenue from Sales District Milk Products Union Ltd

Products

Raw Material

Input like seeds, cattle food, education vetsea, fertilised return profit Village Milk Co-operative Society

Village 1

Village 3

Village 2 Figure 9: Amuls marketing Chart Marketing Function of GCMMF Gujarat Co-operative Milk Marketing Federation (GCMMF) GCMMF was the first co-operative to be set up under operation flood. GCMMFS dairy plant commissioned in 19994. is one of the most modern and largest plant. it can handle up to 1milion litre of milk per day. The plant also has facilities for pasteurizing and packing. The plant has
36 | P a g e

employed only the 187 people. it was funded by NDDB. GCMMFs milk is sold under its flagship brand Amul. GCMMF was formed in 1973.As a apex marketing federation of 12 district milk unions of Gujarat. To operate own marketing and distribution network in India and abroad. Joint hand for co-operation and cares for marketing. GCMMF sales turnover grew by 21% Rs. 15.5 billion to Rs. 18.8 billion including consignment sales of Rs. 3.7 billion sale of Amul milk in Gujarat and Maharastra increased by 11% and 16% respectively. Dairy product turnover is registered a19% growth.Amul butter registered 18% growth. The sale of Amul & Sagar Ghee increased by 47%growth. Amul Cheese registered 60% value growth. GCMMFs sales to the defence services were Rs.233 million during the year, were mainly to Barma, Uganda AND West Africa. The company plans to expand its export markets in Saudi Arabia and other Middle East countries. During 19998, the Amul ice-cream brand franchise was extended by launching it in 8 states and 2 union territories.Amul ice-creams has become Indias 2nd largest brand. New product launched during the year were Amul Pizza, Cheese and Amul slice cheese,Amul paneer and Amul mithaee range.safal mango drink has been launched strategic alliance with safal (A union of NDDB). The product range to be launched under the safal brand will include fruit drinks, squashes, pickles, jams, and ketchup and mango pulp. Amul ice-cream brand franchise was extended with launch in 8 states & 2 union territories.Amul ice-cream has become the 2nd largest brand in the country & has garnered major share in its existing markets in a short time span of 3 years.Amuls main ice-cream manufacturing facility is located at Gandhinagar. Which is Asias largest and most modern integrated ice-cream manufacturing plant and uses world renewed refrigeration units and an efficient cold chain for the regional dairy co-operatives like Mother Dairy for the northern market. Mother Dairy for the southern market & the Patna Dairy project which commenced production from April 98 for the eastern market. GCMMF has become very popular because of its excellence marketing strategy. GCMMF marketing strategy is to understand the consumer needs, develop products that provide superior value at less price. These type of marketing has made GCMMF on of the leading dairy in India. GCMMF has shown a tremendous commitment to the flood water situations. GCMMF has never stopped the supply of milk and other milk products. And unlike other competitors, it has never taken wrong benefits in these kinds of situations. All these have made Mother Dairy No. 1 dairy in Gujarat and in India. GCMMF has developed an excellent distribution channel to provide its products to the consumers. It has made its products in each part of Gujarat & India.

37 | P a g e

Slogan Amul The Taste Of India Utterly, Amul Delicious Real Milk Real Ice-cream Market Segmentation

Market segment is a very important function for the market department of the GCMMF, because the market consists of buyers different in any ways. They are different their wants resources, locating buying practices. Because buyers have unique needs and wants each buyer is potentially separate market GCMMF has segmented its market in following variables. Geographic segmentation:

Under these variables GCMMF has divides market into difference geographic units such as region, states, cities etc. GCMMF sells its products by geographic segment action like in the north where production of milk is very high the sale of Amuls product is not much. But in the western region it is high. GCMMF identifies this kind of variables and deals with it. Demographic Segmentation: Under this variable GCMMF has dividend market into several graphs such as age, genders family, size, income, occupation etc. for the every group GCMMF marketing strategy is different. In milk Amul targets all the class where as in the other products like butter, ghee, icecream etc. is targeted to the middle and higher middle class. Marketing Mix Product Mix What is Product? A product in simple words means a set of tangible physical and chemical attributes assembled in an identifiable and recently reorganized form. Anything that can be offer to a market for attention acquisition use for consumption that might satisfy a want or need. Product is a bundle of utilities consisting of various product features and accompanying service. Soap, Shampoo, Powder, etc. are some example of product.
38 | P a g e

Product mix is the set of all products and items that a particular seller offers for a sell. A product mix consists of all the product lines and item that are sold by the company. Packaging and Labeling Strategy It refers to wrapping, crafting, filling or compressing of goods to protect them from spoilage, pilferage, breakage, leakage etc. various kinds of goods are placed of packed into appropriate containers for protection and convenient handling. Bulky materials like cotton and jute are compressed into bales. Liquid material like oil and milk are put into bottles and cans. Heavy goods ate orated and fragile products ate placed in boxes, tins or special containers. The packing implies placing products in suitable package for safe and easy handling. Packing involves designing and producing appropriate package for products. It is concerned with the determination of convenient size lots in which the products is to be put on the market and creation of proper package for different lot sizes, a package is a case container, wrapper or other receptive used in packing products.

PRODUCT Amul pasteurized butter Amul processed cheese Amul milk Amul full milk cream powder Amulya dairy whitener Amul cheese spread Amul lite bread spread Amul pure ghee Amul Ice-cream Amul mithaee mate

PACKING Cardboard Tins & cardboard Plastic polythenes Tins Tins Plastic cups Plastic box Tins Plastic cup Tins

Labeling Label is a subject of packaging. Labeling helps in Identifying the Products Describe the Products
39 | P a g e

Promoting the Product through attractive graphics.

All the dairy product marketed by GCMMF on the label-the brand name Amul. Moreover it carries all necessary details like Co.s name, address, date and year of manufacturing, batch no., M.R.P., punch line etc. Thus the Amul has well design packaging and labeling strategy.

Pricing PRICE MIX What is Pricing? The amount of money charged for a product or service, on the sum of the values that consumer exchange for the benefit of having the product or service. In general price is the amount of money charged for a product or service. Historically price has been the major factor affecting buyers choice. Price is one of the flexible element of the price mix. This is the marketing strategy by which companies set price of their product by which they can decide to when they should target in the market and how to position themselves in the market. Therefore the company have three choices: 1. Setting a uniform price: In this strategy the company would have as same price of each product in each region or each sector of the market. This would result in the price being too high in poor countries and not too high in rich countries. 2. Setting a market based price: Here the company would set a price in such a way that every consumer can afford it but this ignores differences in the actual cost from one market another. 3. Setting a cost based price: Here company would use a standard mark up of its cost everywhere but this strategy price the company can be out of the market where it cost is high. Place Place is marketing tool which includes the various activities the company undertake to make the product accessible and available to the target customers. Amul has a good channel of distribution having more than 3000 dealers which the customers to have their product.
40 | P a g e

Now Amul are spreading in all over the India. Amuls offices in Ahmedabad are around 15 and 50 in all over in India. Thus, we can say that Amul dairy industry is very well established in India. Amuls products or milk is transported to dealers by vans everyday for their customers giving the quality product. Place Decision Retailers often cite three critical factors in retailing success. Location, location and location? A retailers locations is key to its ability to attract customer. The cost of building on leasing facilities have a major impact on the retailers profits. Thus, building on leasing facilities have a major impact on retailers profit. Small retailers may have to settle for whatever location they can finally afford. Long retailers usually employ specialists who select location using advanced method. Promotion Sales Promotion is a key ingredient in marketing campaigns. Where advertising offers a reason to buy, sales promotion offers an incentive to buy. Objectives of Sale Promotion For Amul the objective of sales promotion for consumers are as follows: To attract new triers. To increase repurchase rate of occasional users. To stimulate short term sales. To attract brand switchers.

Sales Promotion Tools There are two types of Sales Promotion tools: 1. Consumer Promotional Tools Major Consumer promotional tools used by Amul are - Price packs - Extra benefits like 20gm Cheese free on 50gm Cheese pack, one jar free on 2 lt. Icecream family pack. Amul introduces schemes like Dhanteras scheme in which on the purchase of icecream you get free plastic containers.
41 | P a g e

- Amul introduces schemes like free home delivery within 2 kms for order of Rs. 150/or more. Amul also arranges marriages party on birthday parties orders. They also offers free catering services.

2.

Trade Promotional Tools Retailers or distributors are offered discounts or price of on the M.R.P. which may range from 10-15 %.

3.

Business Promotional Tools These tools are used to acquired lead over its regional competitors as well as to interest and reward the customers. Amul in trade shows and fairs and setup booths and displays to demonstrates its products. It also offers coupons and gifts during these trade shows and fairs to customers who purchase any products during such shows and win lucky draws.

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 is known as advertising. Advertising is very important tool to combat competition. Amul has got many competitors to compete with. So the company has to give out adapting in new s papers and magazines at regular interval time period. GCMMF success lies in its excellence advertisements in the market. In the beginning GCMMF was nothing that much important on advertisement. But after some time it understand that if it was 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. Different Advertising Objectives: Informing When a product is to be introduced in the market the product gives the information about it in advance. In this case objectives is to be build the ad in customers mind. At the time of Uttarayan Amul introduce a new concept of kite bite and chocolate chikki. Persuasive advertising

42 | P a g e

Advertising used to build selective demand for a brand by persuading consumers that it offers the best quality for their money. Combined Advertisement Amul gives advertisement of Nutramul as well as Sagar ghee and also provide inter related scheme. Reminding Advertising Reminding customers that the product may be needed in the near future reminding customers where to but the product keeping the product in customers minds during off seasons maintaining top-of-mind position and product awareness. Amul advertises itself by giving advertisements everyday in newspaper and especially on Sunday, they provide many schemes and discounts. Distribution Channel Most producers work with marketing intermediaries to bring their products to market. The marketing intermediaries make up a marketing channel also called distribution cannel.

Distribution channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption. A zero level of channel also called a direct marketing channel consists of a manufacturer selling directly to the final customers. A one level channel; contain one selling intermediary such as retailer to the final customers. A two level channel two intermediaries are typically wholesaler and retailer. A three level channel are typically wholesaler, retailer and jobber in between GCMMF has an excellent distribution. It is its distribution channel, which has made it so popular. GCMMFs products like milk and milk products are perishable. It becomes that much important for them to have a good distribution. So Amul dairy industry has two level distribution channel in which there are a wholesaler, retailer to final customer. We can see from above figure that GCMMF distribution channel is simple and clear. The produced in the plants are sold to whole sale dealers than to retailers and then the products comes in the hands of the consumers.
43 | P a g e

Forecasting Demand GCMMF produces perishable goods so it becomes very important for them to forecast the market demand for its products. In any industry forecasting the demands always remain alert in forecasting the demand. In different like in the summer, in monsoon season sometimes flood water situations appear in these situations demand of milk may go high. In the case of GCMMF, it has been observed that sales forecast is on the bases of projection made by utilizing past sales data. Next years Sale = Current years Sale X Current years sales Last years sales Branding

Branding is a very important part of a production. Consumers view a brand as an important part of a product and branding and value to a product. For example, most consumer would buy Amuls gold brand of milk very easily. But if the same milk is put into an unpopular companys brand. The people might not give that much important to it.

GCMMF made branding a major issue in its product strategy. Developing a branded product requires a great deal of long term marketing investment for GCMMF. Management of Information System

GCMMF federation has now integrated its country-wide operations through successful implementation of the enterprise wide Integrated Application System. GCMMF is among the top 100 IT users in the country. Currently there are mote than 3000 computers installed in different village societies, which support the Automated Milk Collection System. GCMMF distributors can now place their order on their internet website www.amulb2b.com . We continue to receive a good consumer response to our website www.amul.com which is noted for its distinct features like Cyber Store for ice-cream and other milk products, cricket ratings and the recently launched e-greetings site. Managing Competition The Indian market is dominated by a large number of small local manufacturer and regional players. There are an estimated 150 manufacturers in the organized segment which accounts for 30-35% of sales and about 1000 units in the unorganized segments of the market.
44 | P a g e

In the organized segment the significant brands are Kwality Walls , Vadilal, Amul, Mother dairy and Baking Robbins. They have also competitor in the market. They felt very tuff competition in our country and outing countries

Products Life Cycle

All products have a limited life. They passes through different stages of life cycles: o o o o Introduction Stage Growth Stage Maturity Stage Decline Stage

As far as dairy products is concerned, it is in the Maturity Stage of the product life cycle. Thus though dairy industry in maturity stage, still it has lot of market potential in the coming years. Differentiation and Positioning Strategies Differentiation Strategies Any market offering an be differentiated along five dimensions: Product, Services, Personnel, Channel, or Image

** Amuls differentiation strategies are - Its major focus on distributors and retailers. It offers 10-15 % margin to distributors and 57% to retailers which is higher than competitors. - Another differentiating point is its quality. - The lots of flavors of its dairy products is also different from its competitors. - Its pricing is very reasonable compare to competitors. Positioning Strategies It has tries to position through punch line like Amul- The Taste of India for its all products.

45 | P a g e

Marketing Ethics There are some marketing ethics followed by NDDB. They all are given 7 discussed briefly. To provide good quality product: To provide good quality product is the first ethic of marketing each & every profit making organization has to follow this. Because if you provide good quality product, customers will be satisfied. Satisfied customers create a successful company. To provide speedy & efficient service: It is another one important marketing strategy. An organization should try to provide speedy & efficient service that gives the customer satisfaction. An organization is providing speedy services that is must. To give people knowledge about nutrition: NDDB is the unit which is connected with milk & only milk. As we know, milk has greater nutrition value. People connected with NDDB are expects in this field. So many doctors are also with them. The main tasks of their selves is to sat the people that milk and milk products are very useful for the overall working of our body. By much advertisement they are telling us that milk products are necessary for body. To create Customers: The basic ethics of marketing is to create, customers. We can create customers by providing good quality product & highly efficient service. It is our gain to create as more as possible customer. Here, we had seen the marketing ethics followed by the NDDB and GCMMF which helps to take diploid about marketing policies.

4.4:Human resource Department

Introduction The success to any industrial unit, depend upon their effective Human resource department. Human resource department is basically commercial with human resource of an enterprise and it also continue procurement, development, non monetary comparison, integration and maintenance of the Human resource purpose of contribution towards the accomplishment of the organizations major goal and objectives. Human resource management in opinion of many author is true management. So sometimes its told that management means to manage human
46 | P a g e

behaviour. Human resource management is that phase of management which deals with the effective control of use of manpower as distinguished from other source of power. The management includes all aspects of works such as recruitment, selection, medical checkup, various types of training, transfer, welfare activities, union activities factory all provision and industrial dispatch. Recruitment Recruitment forms the first stage in the process which continues with selection and cased with the placement of the candidate recruitment makes it possible to acquire the number and types of people necessary to ensure to continues operation of the organization requirement has, been regarded as the most important function of Human resource administration. Amuls recruitment and selection process is very systematic and comprehensive. All division head in inform about their manpower requirements. According to the requirement of the Human resource division they get require employees by resources like postal services employment exchange education institution and advertisement. Amul Dairy receive lot of application in response to their advertisement. Thus from contains the information about candidates vest name, place of birth, nationality, region, qualification and experience details of personal employee status etc. these forms are to be checked by authorized person and he adopts only needed application and eliminate unnecessary of unqualified fated scrutinizing the application. Applicants are called for personal interview. Interview committee conducts this interview. When applicants are too many, then they conduct a written test for general knowledge. These who pass this test are called for interview then after smart selection process. Source of Recruitment 1. By giving advertisement in news papers 2. Labour Union 3. Voluntary Organisation 4. Leasing Contract 5. Private Employment Agency 6. Government Employment Exchange 7. School, Colleges, Universities and Professional Institutes 8. Recommendation of present Employee 9. Recruitment as Temporary Workers Selection Selection process is concerned with screening relevant information about an applicant. The objective of selection process is to determine whether an applicant meets the qualification for a specific job and to choose the applicant who is most likely to perform well in that job.
47 | P a g e

In Amul rating are noted for general knowledge experience knowledge that particular field etc. from these forms then highest marks are selected and send for medical examination. The applicant which are physically fit are sent appointment letter which contains some terms and conditions of the candidate. The candidate will have to sign to this letter that he is ready to strictly obey these terms and conditions. Higher level is to be directly recruited and selected by the committee. The employee has to inform the date of joining the organization on such date specific period of training is adjusted. Training & Development Training and management development are the two separate things. Training is required for persons working at operative level and it it required for increasing the knowledge and skills of employees. So that they can perform their tasks in the best manner while management development refers to the activities which take place in order to improve the performance of the managerial levels personnels. Training and management development contribute a lot in increasing the productivity. It is matter pity that GCMMF is not having a separate dept. for training and development.

For providing to newly selected person at operative level, he is places at the work under supervision of a senior worker who gives guidance and instructions about the particular work. For the managerial level personnel, they select only those person who are having an experience of at least three year in the same fields. Then a newly selected person is assigned such tasks as are of less important and his performance is observed for three months.

There are two type of training methods:

1.

On the job Training Methods: On Specific job - Experience - Coaching - Understood

2. 3.

Position Rotation Special Projects

48 | P a g e

4. 5.

Selective Reading Apprenticeship Off the job Training Methods Special course and lecture Conference Case Studies Role playing method Management Games

1. 2. 3. 4. 5.

Promotion & Transfer Policy Promotion A promote on the transfer of an employee do a job. which play more money are one that carries some preferred status. In Amul mainly two promotions policy are taken. 1. Automatic promotion 2. Merit cum seniority From time to time different type of promotion policies are adopted by Amul. During the period of 1972,their was negotiation with union under shish promotion was given automatically do a person who had completed his 6 yrs and 2nd promotion was given after 7 yrs. Then Amul adopted merit cum senioring policy. And now at present merit Amul favours promotion. Under this policy performance of the employee his part record behavior opinion of divisional head is taken into account while considering a promotion this capacity, to supervise his job knowledge is also considered. Managing Director sign the promotion order after the recommendation by the Human resource& Administration department. Transfer Transfer is the pre-relative right of the mgt. Transfer is done if it is necessary for the organization.

49 | P a g e

Transfer is generally affected to build up a more satisfactory work team & to achievement some purpose. In Amul for transfer take place in flash season. Transfers are also to adjust the work forces of one plant with the another. Wage & Salary Administration Attendance is considered to be one of the major & important factor responsible for the Wage & Salary Administration. Common method is followed for the Wage & Salary Administration the present catalogue record received from the time keeping office. The present record is maintained to each employee in the register, which is known as master roll. Timekeeper sends this master roll to the account dept. Attendance of each & every employee is analyzed & entered into the computer. The record is scrutinized and statutory and non-statutory deductions are made after this salary is calculated for each employee through computer. The wages are paid in cash & also credited in corporate salary a/c. Employee wages are deducted according to grades of workers. Amul has A,B,C,D,E,F grade of workers. Job Description Job Description is an important document, which is basically descriptive in nature and contains a statement of job analysis. it defines the scope of job activities major responsibilities & positioning of job in organization. It provided the worker, analysist & supervisor with a clear idea of what the work must do to meet the demands of the job. In other words Job Description is rules & regulation regarding different jobs. In Amul those who are at senior Level make job description regarding managerial position. These are some limitation regarding job description in future one may say that, I have to done what is mention in job description to avoid this problems. They are not providing job description to all except managerial levels. As well as job description is helpful because one is clear about their work. No problem arise in future. Performance Appraisal The performance appraisal system is a process of evaluation of employees performance on a jobs in loans of its recruitment. It is also known as assessment of behaviour performance and attitude of an employees.

50 | P a g e

The value, excellence, spirit, qualities of status of some subjects of performance appraisal is quite useful in various administrative decision as training, transfer, promotion etc. In GCMMF there is very good performance appraisal system and the management of unit is good and profitability is very high. Social & Welfare Activities Every units success depends upon the regulatory and sincerity of the employees. The GCMMF is already regular in paying amount of salaries to employees satisfactority for their contribution in unit. The GCMMF has take many efforts in the welfare activities provided to their staff and employees are as mentions. Hospital Facility Canteen Facility Uniform Facility Leave Facility Loan Facility Accident Benefits Scheme Quarter Facility Bonus Transportation Rest Intervals Cleaning, Washing, Sweeping Total Employees and Time Keeping System Total Employee: The success of the Amul depends upon their excellent team spirit and confidence of people in the Human resourcedept. Working Hours In Amul dairy there are three shifts in one day. All the shifts has eight hours. So the work of this union of the milk product are continuously and never stops. Therefore the union has produce maximum stock of this products. The timing of three shifts and office time are as follows: 1st Shift 2nd Shift 3rd Shift GCMMF office Time : : : : 8:00a.m. to 4:00 p.m. 4:00p.m. to 12:00 mid night 12:00 mid night to 8:00 a.m. 8:00a.m. to 5:00 p.m.

51 | P a g e

4.5: Information technology department

Today the world is moving with the help of Computer in very fast motion. To be capable for serving in the organization have adopted the Information technology. In earlier days when information technology was not their the working speed was very slow and complex but this days it has become very easy to work. Information technology department help the other departments in following ways: 1. 2. 3. 4. 5. 6. 7. 8. To record the data in a proper way. Help to improve the productivity Help to modernize the organization Help to make decisions Help to improve the control Increase the quality standard of the organization Reduce the work load. Reduce the time consuming

So in the following manners the information department helps the other departments of the organization.

52 | P a g e

5. SWOT Analysis
STRENGTHS:

Demand profile: Absolutely optimistic Margins: Quite reasonable, even on packed liquid milk. Flexibility of product mix: Tremendous. With balancing equipment, you can keep on adding to your product line. Availability of raw material: Abundant. Presently, more than 80% of milk produced is flowing into the unorganized sector, which requires proper channelization. Technical manpower: Professionally-trained, technical human resource pool, built over last 30 years. WEAKNESSES: Parishability: Pasteurization has overcome this weakness partially. UHT gives milk long life. Surely, many new processes will follow to improve milk quality and extend its shelf life. Lack of control over yield: Theoretically, there is little control over milk yield. However, increased awareness of development like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields. Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk procurement problematic. But with the overall economic improvement in India, these problems would also get solved. Problematic distribution: Yes, all is not will with distribution. But then if ice creams can be sold virtually at every nook and corner, why cant they sell other dairy products too? Moreover, it is only a matter of time before they see the emergence of a cold chain linking the producer to the refrigerator at the consumers home.
53 | P a g e

 Competition: With so many newcomers entering this industry, competition is becoming tougher day by day. But then competition has to be faced as a ground reality. The market is large enough for many to carve out their niche. OPPORTUNITIES: Failure is never final and success never ending. Dr. Kurien bears out this statement perfectly. He entered the industry when there are only threats. He met failure head-on and now he clearly is an example of Never ending success. If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped. Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential areas of value addition. Steps should be taken to introduce value addition products like shrikhand, ice-cream, panner, khoa, favored milk etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building. Addition cultured product like yoghurt and cheese lend further strength both in terms of utilization of resources and presence in the market place. A lateral view opens up opportunities in milk proteins thro casein, caseinates and other dietary protein, future opening up export opportunities. Yet another aspect can be addition of infant foods geriatric foods and nutritionals. Export potential: Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Srilanka, Nigeria, and Middle East. Following the new GATT treaty, opportunities will increase tremendously for the export of agri-products in general and dairy products in particular.

THREATS: Milk vendors, The un-organized sector Today milk vendor are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance.

54 | P a g e

6. RECOMMENDATION
Suggestion to Production department

1) Sources of raw materials the one and only source from where they procure milk are village milk societies so they need to strengthen relation with villagers. 2) Department must have to develop strict standard for Quality control milk because milk is perishable product so advance testing lab is required. 3) Though the good technology used by the dairy advance and automated technology will be introduce to lower the rate of exposure of the product to human being. 4) All the workers should be allowed with good safety. 5) Sanitation shall be kept clean and hygienic.

Suggestion to marketing department

1) 2)

The Company should adopt scientific ways to allocate and manage the resources for advertisements and sales promotion so as to gain optimum results Amul should design its own marketing research system. It should hire people to carry out systematic market research and surveying the following areas. - To know consumer taste, preferences and their consumption and buying pattern. - Before launching new products in the market. - Retailers and distributors survey from time to time to know competitors tricks and practices as well as the satisfaction level.

3) Instead of advertising on national level, one more option that the company should try for promotion of its brands is to give add on local cable TV network. 4) There should be no gaps in products like more flavor, more scheme, reasonable price etc to compete the local players as well as competitors.

Suggestion to H.R. department

1) 2) There should be professional approach. They should provide professional training to field force for specific time period sharpening selling skills. for

55 | P a g e

6. BIBLIOGRAPHY

1. Books: Kotlar Philip Marketing Management, Published by Pearson Education, 10th edition K. Aswathappa, Human Resource And Personal Management 3rd edition 2. Websites: www.nddb.com www.amul.com 3. Search Engine www.google.com www.msn.com www.yahoo.com 4. Magazines: Dairy India (March, July, Sept-2003) Review of Dairy Industry

56 | P a g e