1

Amul
A project report on an industrial visit to Amul Ltd. (Anand), on 22nd Jan, 2013 submitted to Somlalit Institute of Business Administration affiliated to Gujarat University. Submitted by Roll No. Class : Bhavesh Khatri : 43 : B.B.A. Sem II

CERTIFICATE
This is to certify that report on the visit to AMUL Ltd.(Anand) submitted by Bhavesh Khatri to the Somlalit Institute of Business Administration affiliated to Gujarat University towards partial fulfillment of the requirement for the completion of practical study at IInd term of Gujarat University B.B.A.programme.

Prof. Shri K.J. Patel (Principal)

College Stamp

Prof. Parin Shah (Project Incharge)

ACKNOWLEDGEMENT
It is a matter of great pleasure and satisfaction to present this project report undergone at Amul Ltd. Visiting Amul was one of the finest experiences I have ever gained.

I am very thankful to the Principal Professor Shri K.J. Patel for arranging such informative industrial visit to the worlds one of the best diary industries. I am also thankful to our project guide Prof, Parin Shah for his encouragement and existence which has helped me in making this report with zeal and enthusiasm.

Finally I express my gratitude and thanks to all those members ay Amul Ltd. (Anand), specifically Mr. Sundaram for making our visit informative and funfilled. I am also thankful to my college staff for making this industrial visit a memorable experience of my life.

PREFACE
AMUL is the pride not only of Gujarat but also of entire country. I have great pleasure in preparing this project of such organization. A person aspiring to enter in management profession must have practical knowledge of the subject. The objective of industrial training is to develop practical knowledge in student as a supplement to the theoretical study of management in general as well as industrial. It provides foundation to students intending to pursue a career in this field. The industrial training is the most exciting experience of the education. Every person needs some changes from the routine education. For this training industry is selected by me and fetch information about different products of AMUL , and its activities. But I concentrated more on taking information about AMUL. As I am student of management and the future Manager the training would play vital role in my education. Because of the industrial training I have knowledge of industrial environment and I felt hat this would be the part of my life. I become conscious that I am the manager of future and I should also learn how to solve managerial problem and fulfill others requirement at the time. I have tried my best to represent all relevant data and information relating to my project work. I hope this report will serve the purpose of the readers.

INDEX
No. 1 2 3 4 5 6 7 8 9 10 11 12 CONTENT Company Profile Production Department Human Resource Department Marketing Department Finance department Research and Development Corporate Social Responsibility SWOT Analysis Future Plans Suggestions Conclusion Bibliography Pg No. 6 14 22 25 37 44 45 47 50 51 52 53

COMPANY PROFILE
NAME OF THE ORGANIZATION: - AMUL DAIRY

AMUL MEANS (FULL FORM) :A: - Anand M: - Milk U: - Union L: - Limited

ADDRESS OF THE ORGANIZATION:- Kaira District Co-operative Milk Producers Union Ltd, Anand - 38001, Gujarat

Fax: - -91-269240208 E-mail:- gcmf.amul.com Website: - www.amul.com

FORM OF THE ORGANIZATION: Co-operative

MISSION OF THE ORGANIZATION:1) Its basic objective is to provide better quality of products.

2) To give optimum returns to his members

3) To Assist in the development of small villages co-operatives.

4) To minimize the adverse effect on the environment.

5) To double the production by the year 2020.

MISSION STATEMENT

We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavor to satisfy the taste and nutritional requirements of the customers of the world, through excellence in marketing by our committed team. Through co-operative networking, we are committed to offering quality products that provide best value for money.

HISTORY OF AMUL
In the 1940s, in the district of Kaira in the State of Gujarat, India, a unique experiment was conducted that became one of the most celebrated success stories of India. At that time, in Gujarat, milk was obtained from farmers by private milk contractors and by a private company, Polson's Dairy in Anand, the headquarters of the district. The company had a virtual stranglehold on the farmers, deciding the prices both of the procured as well as the sold milk. The company arranged to collect, chill and supply milk to the Bombay Milk Scheme, which supplied milk to the metropolis of Bombay, and to cities in Gujarat. Polson's Dairy also extracted dairy products such as cheese and butter. Polson's Dairy exploited its monopoly fully; the farmers were forced to accept very low prices for their products, and the decisions of the company regarding the quality and even the quantity of the milk supplied by the farmers were final.

In 1946, inspired by Sardar Vallabhbhai Patel, a local farmer, freedom fighter and social worker, named Tribhuvandas Patel, organized the farmers

into co-operatives, which would procure milk from the farmers, process the milk and sell it in Bombay to customers including the Bombay Milk Scheme. Purely by chance, in 1949, a mechanical engineer named Verghese Kurien, who had just completed his studies in engineering in the USA, came to India and was posted by the Government of India to a job at the Dairy Research Institute at Anand. Dr Kurien's involvement with the Kaira District Co-operative Milk Producers' Union Limited grew rapidly.

The most important feature of these co-operatives is that they are run purely as farmers' co-operatives, with all the major decisions being taken by the farmers themselves. The co-operatives are not 'run' by a separate bureaucracy with vested interests of its own; the farmers are truly in charge of their own decisions.

This experiment of organising farmers into co-operatives was one of the most successful interventions in India. A very loyal clientele was built up who experienced prosperity on a scale they could not have dreamt of 10 years earlier.

In 1954, Amul built a plant to convert surplus milk produced in the cold seasons into milk powder and butter. In 1958, Subsequent years saw the addition of more plants to produce different products. Starting from a daily procurement of 250 litres in 1946, Amul had become a milk giant with a large procurement base.

On his visit to Anand in 1965, the then Prime Minister of India, Lal Bahadur Shastri, was impressed by what he sawa system that procured,

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processed and delivered high quality milk to distant markets cost efficiently. Shastri could also see the difference that the income from milk had made to the standard of living of farmers in the area. What impressed him the most was that Amul had done all this without government assistance.

Currently AMUL has 2.28 million producer members with milk collection average of 5.08 million liters/day. Today AMUL is a symbol of many things. (High-quality products sold at reasonable prices, genesis of a vast cooperative network and a proven model for dairydevelopment). The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in June 1948.

LOCATIONAL ADVANTAGES: The Kaira District is very good place for dairy industry from where it was ranged from a small dairy to the national level repute.

There are very clear and roads along with railways line for transportation due to this reason collection of milk easily and speedily take place here.

Anand is a big city, which is surrounded by many village being in a big city is easily available being situated Anand.

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ACHIVEMENTS OF THE ORGANIZATION:Even at the time of its formation, GCMMF had three major products in its portfolio liquid milk, butter and milk powder. Gradually, many new products were added to its range, largely milk derivatives. so that poorer people can also afford to drink milk. In the 1970s, Amul introduced its processed cheddar cheese, a malt based beverage called Nutramul and chocolates. In 1983, cheese spread was launched by GCMMF. Amulya, a dairy whitener was introduced and it soon became the market leader. In 1996, Amul launched its Amul brand ice cream. India's ice cream market was estimated to be worth around Rs 8 billion in the year 2000 (about US$ 175.8 million). GCMMF launched its ice creams in fourteen flavours in the city of Mumbai (Bombay) and Gujarat State. In less than a year, Amul ice cream commanded a market share of about 55% in Gujarat and 30% in Mumbai; by the year 2000, its share in India as a whole had reached 30%. In 1997, Amul achieved further success when it managed to get various co-operatives in the country, trying to launch their own ice cream brands, to sell all their ice creams under the Amul brand name. This enabled GCMMF to benefit from the capacity of many of the more than 170 cooperative unions in the country, with a milk procurement of more than 15 million litres/day, located close to the markets. By the year 2000, its product range was truly expansive: three varieties of milk, flavoured milk, buttermilk, four varieties of milk powder, two varieties of butter, five varieties of cheese, two varieties of ghee (clarified butter), chocolates, chocolate drinks, sweets, ice cream, edible oils and fruit and vegetable based products. The latest additions to the range of brands marketed by GCMMF are Masti Dahi (curd) and Amul Taaza (longlife milk). In the year 19992000, GCMMF had a total turnover of Rs 22.2 billion (about US$ 550 million).

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ORGANIZATIONAL CHARTS
GCMMF is a lean organisation, a strategy that is believed to provide it with a cost advantage. At its headquarters in Anand, four general managers (GMs) and four assistant general managers (AGMs) assist the managing director (MD). The four AGMs look after the functions of marketing, systems, co-operative services and technical projects, respectively. The four GMs are in charge of marketing (dairy products), human resources development and marketing (Dhara and new business), finance and quality assurance, respectively. The whole country is divided into five zones, each headed by a zonal manager responsible for the sales of all products within his zone. These managers report to the MD but functionally each also reports to the various AGMs/GMs at the headquarters. There are 50 sales offices spread across the country (of which only two are in Gujarat); a sales manager heads each office and is assisted by sales officers and field salespersons. The entire country has been represented in this structure. GCMMF has one overseas office in Dubai.

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Managing Director

Production Manager

Marketing Manager

Finance Manager

Factory

Store

Sales Manager

Advertising Manager

Chief Accountant

Internal Manager

Manager Manager

Forman

Sales

Selection

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PRODUCTION DEPARTMENT
PRODUCT CLASSIFICATION OF AMUL:
BREAD SPREADS:
1. AMUL BUTTER 2. DELICIOUS TABLE MARGARINE 3. AMUL LITE

MILK DRINKS:
1. AMUL KOOL MILK SHAAKE 2. AMUL KOOL 3. AMUL KOOL CAF 4. NATRAMUL ENERGY DRINK 5. AMUL KOOL FLAVOURED BOTTLED MILK 6. AMUL MASTI SPICED BUTTERMILK 7. KOOL KOKO 8. AMUL KOOL CHOCOLATE MILK 9. AMUL KOOL FLAVOURED TETRA PACK 10.AMUL LASSEE 11.AMUL KOOL THANDAI

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POWDER MILK:
1. AMUL SPRAY INFANT MILK FOOD 2. SAGAR SKIMMED MILK POWDER 3. AMULYA DAIRY WHITENER 4. AMUL INSTANT FULL CREAM MILK POWDER 5. SAGAR TEA COFFEE WHITENER

FRESH MILK:
1. AMUL FRESH MILK 2. AMUL TAZZA DOUBLE TONED MULK 3. AMUL FRESH CREAM 4. AMUL CALCI+ AMUL GOLD MILK 5. AMUL LITE SLIM AND TRIM MILK 6. AMUL SHAKTI TONED MILK 7. AMUL BUTTERMILK

CHEESE:
1. AMUL PASTEURISED PROCESSED CHEESE 2. AMUL EMMENTAL CHEESE 3. CHEESE 4. AMUL CHEESE SPREADS 5. AMUL PIZZA MOZZARELLA CHEESE

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FOR COOKING:
1. AMUL / SAGAR PURE GHEE 2. AMUL MALAI PANEER 3. MITHI MATE 4. PRO-BIOTIC DAHI 5. COKKING BUTTER 6. UTTERLY DELICIOUS PIZZA 7. MASTI DAHI

DESSERTS:
1. AMUL ICE CREAMS 2. AMUL MITHAEE GULAB JAMUNS 3. AMUL BASUNDI 4. AMUL SHRIKHAND 5. AMUL CHOCOLATES

HEALTH DRINKS:
1. NUTRAMUL 2. AMUL SHAKTI HEALTH FOOD DRINK

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UTILIZED CAPACITIES

Members: 13 district cooperative milk producers' Union No. of Producer Members: 2.79 million

No. of Village Societies: 13,328 Total Milk handling capacity: 11.22 million litres per day

Milk collection (Total - 2008-09): 3.05 billion litres

Milk collection (Daily Average 2008-09): 8.4 million litres Milk Drying Capacity: 626 Mts. per day

Cattlefeed manufacturing Capacity: 3500 Mts per day

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Production Process Chart

Milk Process

Milk Pasteurization

Milk Standardization

PHE
(Plant_Heat_Exange) Milk_flows_chilling_or heating_medium Milk taken to 2_cillos cillos

Milk Separator
(Separates milk and cream)

2_cillos

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PRODUCTION PROCESS
Production itself a process for converting the raw material into finished product after passing though different types of process steps. In the other words production process is a combination of collectively taken certain steps to receive finished final product. 1.

Milk Storage at plant :-

The chilled milk received from various chilling center stored there in AMUL DAIRY about 10-lakh liter of milk is collected every day from 1509 villages before collecting the fat it is checked in the laboratory. On laboratory test they decide about the amount of milk to be collected. All the raw milk collected at AMUL DAIRY is laboratory tested the fat and sniff of the milk then it is sent for pasteurizing. 2.

Pasteurizing:-

After laboratory test of milk pasteurizing process is conducted through three pasteurization machines. The milk passed through the above machines with the help of water pumps. The milk in the pasteurizing machines is heated at 80 to 82 for 15 seconds and after it is cooled at 5 Co. After this method the pathogenic bacteria present in the raw milk are destroyed and the milk becomes good for use. Now this process milk goes to separator machine and some part of milk is sent to patching machine. 3.

Separation:-

This separation machines by falcate the milk into different kind of products. (1) (2) Skimmed milk Cream

The above both products sent to the different channels. There are hundred disk fixed in the separator machine. Now it is taken to the tank,

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which has the storage capacity of 20 thousand liters. There are four tanks and the milk in every tank has different portion of SNF. It is the deficit portion is added by mixing cream. There is some space in the tank to fill the added cream. Now after adding necessary fat and SNF in the milk it is packed in 250 ml and 500 ml pouches. The pouches are kept in a basket which has the capacity to contain of the machine is 100 pouch per minute.

6.

Storage Facility:-

After packing the milk in pouches, the pouches are taken to the cold storage, which has the capacity of containing 4500 pouches at the temperature on 8 to 10 degree Celsius. The temperature is maintaining with the help of silicon chips fans, with the help of ammonia. 7.

Process of Ghee:-

The separator machine separator the cream and sends it to butter churching machine. These machines rotate for half and hour and the butter then take to the Ghee Kettle. Where it is heated at 40 o C. degree Celsius. Now the ghee is packed in pouches, tins, which is add in the market by the brand name of AMUL DAIRY The production of the ghee plant is 144181liter of ghee per year.

8.

Process of milk powder:-

First chilled milk receive from chilling plant to AMUL DAIRY is checked in the laboratory and pass though separator machine though different channels. It is again tested in the laboratory and according to deficit it is added by mixing machine. After adding more fats and creaming milk there are some raw materials like salt and some other chemicals are also adding in the milk now the milk is boiled in vacuum so that it becomes thick. The thick milk is passed through condenser. Now, this condense ilk is sent too drier. The sour milk is taken away. The moistures remaining in the milk powder is taken away at a temperature of 60 Celsius. The machine pea this powder place this powder place automatically by machines without touching by human hand this powder milk is stored in cool place and sold under the make milk from powder in the name of sold under the make milk

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from powder in the name of AMULYA The capacity of production in 17000 liters. There are three milk powder plants. 9.

Process of Amul Butter:-

After collecting and testing the milk in AMUL DAIRY laboratory. It is passed through pasteurizing plant by this method the pathogenic bacterial presence in the raw milk are destroyed after this process some milk goes to separator machine where two products are produced at one hand schemed milk and at the other hand cream. Now the cream to churching machine by churching of ripen cream keeping the fat present at about 83 % the butter is ready. It can be with of without salt.

For successful operation of these activities, a control room has been provided. All the operations in the Dairy are Programmable Logic Controller controlled. A set of logical programmes through a programmer is prepared on the PC and stored in the memory of the CPU of the PLC. This is possible due to the microprocessor technology. Whenever the operator performs the operation these programmes are recalled and executes accordingly the commands and signals for activating or deactivating the solenoid valves and start and stop of the pumps are affected. There is one PLC in the control room. All the parts of the PLC are run on 24 VDC supply which is converted from 220 v AC supply by the transformer in each unit of PLC. Incase of power breakdown the PLC continues to get the power supply from the UPS system. The control room has also information system for updation of production data of milk, cream, raw milk intake, centerwise milk reception and dispatch record, inventories, CIP programming and its timing, trend charts, consumption of steam, electricity, water and compressed air, etc.

CONTROL ROOM
Control room is a one of the department of the dairy. Control room is called a heart of the dairy because all the machine are handled by the control room there are two person who operate all the machine in the dairy Amul dairy is a fully computerized and machineries so there are a few workers are require for increase for increase the productivity.

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HUMAN RESOURCE DEPARTMENT

Training and Development of Personnels
Amul employee are also provided training which helps to remove performance deficiencies in employees performance deficiencies in employees training is given to them only when, Deficiency is caused by a lack of ability rather than a lack of motivation to perform. The individual involves has the attitudes and motivation needed learn to the job better. Supervisors & peers are supportive of the desired behaviors.

Training Contributes to1) Employees stability

2) Employees become efficient after understanding to training efficient.

3) Employee Contribute to the growth of the organization.

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Wages and Salary

Attendance is one of the major factors for the wages and salary administration. The time keeper reads the record of the attendance to the accounts department where it is entered into the computer. The record is study and after this salary is calculated for each employee through the computer. On the other hand milk producer are paid regularly on first and 25th of every month.

FACILITIES GIVEN TO EMPLOYEES.

MEDICAL ASSISTANCE SCHEME: The society has a comprehensive medical benefit scheme for its employees. The employee and his dependent family members are eligible for reimbursement of medical expenses in respect of any ailment, disease, injury, or disability suffered by them. For routine medical treatment the ceiling is as under: No. Of family members Ceiling for routine Medical Treatment (per annum) For 2 family members For 3 family members Rs. 2250 Rs. 4500

In case of chronic diseases, specialized treatments, hospitalization, pathological and radiological tests special medical sanctions are given.

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They have full fledged dispensaries at our factories manned by doctors, nursesand paramedical staff who provide Medicare facilities to the employees and their dependents. Besides this, most of the good hospitals and nursing homes in the vicinity are on the approval panel of AMUL, where the employees and their dependent family members can be referred for treatment, according to requirement. Employees and their family members are periodically examined and the report is given to them with doctors suggestions for remedial action.

CANTEEN:
Canteens have been provided at our factories, which provide lunch, tea and snacks. Canteen management committees consisting of the employees also monitor the menus, cleanliness, quality of food. Canteen Subsidy is paid @ 7% of the basic pay to officers and @ 5% of basic pay to workmen.

TRANSPORT FACILITIES :
AMUL is providing bus facility to its employees for coming to their workplace at our factories.

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MARKETING DEPARTMENT
SALES PROMOTION AND ADVERTISEMENT:
There is no necessary for direct advertisement in the market because the product itself is the advertisement for dairy. There are several part of AMUL dairy so it advertised its product by the television and posters etc. The product of Amul and Mother symbol has been approved by the government it does not means that Amul dairy can not do anything increasing sales. They take part in the industrial exhibition minimum two times per day. They also advertised for the after the service of the dairy which are the best in the dairy and available very less and cheaper rate in other competitors. Dairy is advertised its product by autorikshaw and cycle. Dairy is promoted the worker to increase the productivity and motivation.

MARKET RESEARCH:
Market research is a method of getting facts to be used by the executives in formulating policies and plans. It enables a manufacturer or producer to know what the customers want, at what time and what quantity. It is an organized attempt to reduce market risk. He principle task of marketing research is to widen the basis of facts upon which business plans can be laid. Marketing research shows changes from time to time , if any. AMUL conducts basically two types of market research. One is for products and another for the advertising conducted by the company. These research results serve as an input in future decision making. The company basically collects feedback from the customers, about the effectiveness of its advertising campaign and liking of the product especially in case of new products launched. It tries to find out by conducting a survey in a target market whether or not the product is liked by the consumers and ask for their

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suggestions for improvement. However AMUL is not much into conducting research before the launch of the product. Most of its research is done only once when the product is already launched in the market. It doesnt have any separate department for this purpose but its sales agents themselves do the work of research for the company. Yet the results are almost comparable to those conducted by professionals.

NEW PRODUCT DEVELOPMENT:

New product development means development of original product or product improvement or modification or new brands through Research & Development efforts .New product development has become more difficult with the passage of time, due to shortage of new ideas, keen competition, government and environmental constraints .It is an expensive affair which involves lot of crucial decision making. A number of decisions are taken by AMUL with regards to launch plans andstrategies for the new product , which are as under: Deciding the target customers Designing the promotional campaign Deciding the price Market analysis Deciding the sales force to be employed Deciding the marketing mix Deciding whether to launch the product across the country or in the selected area Appointing distributors Conducting market research

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TYPES OF PRODUCTS
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) Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix Avsar Ladoos

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

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Amul Snowcap Softy Mix

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

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

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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:

Amul Milk Chocolate Amul Fruit & Nut Chocolate

Brown Beverage:

Nutramul Malted Milk Food

Milk Drink:

Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate) Amul Kool Cafe Amul Kool Koko Amul Kool Millk Shaake (Mango, Strawberry, Badam, Banana)

Health Beverage:

Amul Shakti White Milk Food

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The basic concept of marketing: Touch the heart of the customer to create demand. Note customers needs, pick their choice, Provide product knowledge, assure for food service, ideas, product value.

Customer complete satisfaction

Creating product awareness through Digerent, modes, Advertisement

Exchange & Transaction

Relationship and service network

Develop existing markets

Search new market and Prospects

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MARKET TARGETING
After segmenting the market, company evaluate the various segments and decides how many and which ones to target. Generally the market is targeted in three ways:UNDIFFERENTIATED MARKETING DIFFERENTIATED MARKETING CONCENTRATED MARKETING AMUL uses undifferentiated marketing strategy for targeting its customers as far as its milk and milk product line is concerned. While the company implements differentiated marketing strategy for targeting its customers for the other product lines that are ice creams and chocolates, wet products and dry products. Differentiated marketing means market coverage strategy in which a firm decides to target several market segments and designs separate offers for each. AMUL targets its customers according to the segments like geographic and demographic.

PACKAGING
Packing includes the activities of designing and producing the container for the product. Packaging has become the potent marketing tool. Well designed packages can create convenience and promotional value. Various factors contribute to packaging growing use as a marketing tool: SELF SERVICE CONSUMER AFFLUENCE COMPANY AND BRAND IMAGE INNOVATION OPPORTUNITY Packaging of the products of AMUL varies according to the nature of the product. As most of the products are perishable in nature special care is taken

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in packing them. MILK AND MILK PRODUCTS are packed in plastic bags or containers, while ICE-CREAMS AND CHOCLATES are packed in cardboard packing. The company maintains the standards prescribed by BIS, with regards to packing. These products are then packed in cartoons, for greater safety measures and for transporting them to the market.

LABELING
Labeling printed information that appears on or with the package, is also a part of packaging. Labels may range from simples tags attached to products to complex graphics that are part of the package. Label identifies describes and promotes the product through attractive graphics. The label might carry only the brand name or great deal of information or pictures. Even if the seller prefers a simple label the law may require additional information. The labels of the products of AMUL are attractively designed. It contains all the information as per statutory requirements. Information like name of product, brand name, logo, date of packing & manufacturing, expiry date, price, code number, ingredients, storage and usage instructions, weight, manufacturers and marketers name, logo showing PURE VEG etc appears on the label of the products.

BRANDING
A brand is a name, term, sign, symbol or design or a combination of these used to identify a product or company. A trademark is a legally recognized brand.

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Branding has become so strong that today hardly anything goes unbranded. Today customers view a brand as an important part of the product and branding adds value to a product. Brand names help customers identify products that might benefit them and also tells the buyer something about the product quality. To the sellers brand name and trademark provides legal protection for unique product features that otherwise might be copied by the competitors and it also helps them to segment markets. A brand name is selected keeping in view the product and its benefits, the target market and proposed marketing strategies. Decisions about branding are taken at the Head Office at Anand. AMUL means priceless in Sanskrit. The brand name AMUL from the Sanskrit Amoolya was suggested by a quality control expert in Anand. Variants, all meaning priceless, are found in several languages of India. AMUL manufactures and markets its products under two brand names AMUL and SAGAR Information Technology (IT) has played a significant role in developing the Amul brand. The installation of 3000 Automatic Milk Collection System Units (AMCUS) at Village Societies to capture member information, milk fat content, the volume collected and amount payable to each member has proved invaluable in ensuring fairness and transparency throughout the whole Amul organization.

UMBRELLA BRAND
The network follows an umbrella branding strategy. Amul is the common brand for most product categories produced by various unions: liquid milk, milk powders, butter, ghee, cheese, cocoa products, sweets, ice-cream and condensed milk. Amul's sub-brands include variants such as Amulspray, Amulspree, Amulya and Nutramul. The edible oil products are grouped around Dhara and Lokdhara, mineral water is sold under the Jal Dhara brand while fruit drinks bear the Safal name.

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By insisting on an umbrella brand, GCMMF not only skillfully avoided inter-union conflicts but also created an opportunity for the union members to cooperate in developing products.

DISTRIBUTION CHART
GCMMF made indirect channel for distribution. They take of agents within the country and also for abroad. Agent supply to wholesalers and he supply to retailer and the retailer supply to customers.

PRODUCTION

AGENT

WHOLESALER

RETAILER

CUSTOMER

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PROMOTIONAL PROGRAMMES:August 04, 2009 July 03, 2009 June 27, 2009 June 05, 2009 May 31, 2009 May 29, 2009 February 21, 2009 February 07, 2009 January 08, 2009 December 25, 2008 December 20, 2008 December 05, 2008 November 22, 2008 October 21, 2008 October 11, 2008 October 07, 2008 Sept 20, 2008 August 28, Visit of Ministerial Delegation from Chhattisgarh Amul & IBM sign IT services agreement to fuel future growth Shri B M Vyas, MD, GCMMF gets prestigious Charotar Ratna Award GCMMF (AMUL) Beats Recession, Achieves, A Turnover Of Rs. 6700 Crores Visit of Ministerial Delegation from Uganda 14th Annual Kaizen Celebration 25th Hoshin Kanri Meeting At Anand Indian Dairy Association (IDA) Honours B. M. Vyas for his Outstanding Role IAS Officer Trainees of the 2008 batch Amuls Christmas Celebration At Second Life 13th Ice Cream Hoshin Kanri Meeting At Anand 4th Amul Milk Hoshin Kanri Meeting At Anand Visit of Students from IIM, Ahmedabad Visit of Dutch Expert Launch of South South Experience Exchange Facility at World Bank, Washington Visit of Tetra Pak Delegation 24th Hoshin Kanri Meeting At Anand Visit of Senior Journalists from the Republic of Kazakhstan

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2008 August 21, 2008 August 15, 2008 July 12, 2008 July 10, 2008 July 08, 2008 June 30, 2008 June 27, 2008 June 26, 2008 June 20, 2008

and the Republic Uzbekistan Visit of Chairman, National Coop. Fed. , Nepal Amul Coops plant more than 70 lakhs trees Visit of Training Officers from Cooperative College of Malaysia, Kuala Lumpur Visit of MD, NCDC, New Delhi Visit of Secretary, AHD & Fisheries, GOI Visit of SBI Managing Director Visit of Mr. Walter Stechel, Consul General, German Consulate General, Mumbai CRISIL AAA and P1+ for GUJARAT COOPERATIVE MILK MARKETING FEDERATION bank facilities Visit of Singapore Indian Chamber of Commerce & Industry Visit of World Bank Team Visit of IFAD Team GCMMF bags Apeda Award for 11th year in a row Visit of African Youth Group

June 18, 2008 June 09, 2008 June 03, 2008 March 29, 2008 March 19, Visit of Board of Directors, Koyana Union 2008 February 23, 23rd Hoshin Kanri Meeting At Anand 2008

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FINANCE DEPARTMENT INTRODUCTION:

Any organization, whether it is small or large scale, clears with financing every businessman keeps separate records of financial matters. Finance and account department of the business depends upon the financial policy of the firm. Financial management is mainly concerned with finding out rational basis through answering following three questions. What total value of funds should be invested in the business? What specific assets should the business require? How should the required funds be raised? The scope of financial management comprises traditional approach on procurement of funds rather than its allocation and use. While modern approach covers not only acquisition but also allocation and utilization of funds. The firm may have any objectives but financial management has the objectives of profit maximization or weather maximization. Keeping in mind this particular objectives only major 3 decision are taken that are: Investment Decision Financing Decision Dividend Policy Decision

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FINANCIAL PLANNING
Planning is pre-requisite for managing any little things too. When we think about fund, financial planning comes at first. Financial planning answers the following questions: What should be funds requirements? How should procure funds? From where to procure the funds? How to utilize the fund at maximum level? Head office deals with the arrangement of raising the funds and provides funds required by any of four plants. In AMUL, they make weekly forecast of funds in which requirement of each department is mentioned. After that the proposal is sent to head office and got sanction from there. So, financial planning has a significant place for making decision of requirement and utilization of funds.

WORKING CAPITAL
Management of working capital usually involve management or administration of current assets namely cash and marketable securities, account receivable and inventories and also administration of current liabilities. The quantum of working capital in business is dependent on various factors. Such as type of business, turnover of inventories, term of purchase and sale, size of the business unit, process of manufacturing, seasonal variations etc. the present company is engaged in manufacturing of capital goods. Therefore naturally there is a high amount of working capital required.

CASH

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The cash is needed for various purposes in business. They may be speculative, transitive and precautionary motives. The management of cash requires cash planning. It is a technique to plan & control the use of the cash. Cash is the most liquid current asset. Finance manager has to do cash planning. Manager the cash flows decide optimum balance of cash and invest the surplus cash in marketable securities.

ACCOUNT RECEIVABLE
Trade credit is considered as an essential marketing tool, acting as a bridge for movement of goods through production and distribution stage to customer stage tocustomers trade credit creates receivables involves credit policy, monitoring accounting receivables. A firm may follow a latent or a straight credit policy. Before following establishing any credit policy finance manager has to evaluate the effect of policy in terms of cost and benefits.

Today there is a staff of 1400 people chocolate mint, diary plant & chilling center. Also Amul creating job opportunities for various professionals into dairy technology, micro biologists business administrative computer expert and computer analysis reads insurance agents etc. This is the way the populated country like our process previously in Mumbai city animals were kept the artificial addition but now in khaira the animal were kept in the metal condition & they gets free with clean water. In fact National dairy Development Board (Nddb) started milk production anand patten in all state like keralla A.P. & Tamilnadu etc. Amul dairy is determined to provide better cervices to the farmers and co-operative members and very good incentives. Amul dairy also qualified milk , ghee, butter, cheese etc. to the consumers at a reasonable price. Amul dairy has been able to strike a prepare and effective balance between the ever increase expenses and competitive revenues without

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compromising on the quality of the product. It is an important task but a challenging and rewarding one for any manager because this is Amul Dairy.

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SALES TURNOVER
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.

The annual sales turnover of AMUL in last 9 years is as follows, which itself is the proof of the huge turnover and the success and profitability of the company.

Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 43280

US $ (in million) 355 400 450 455 493 493 500 500 575 616 672 850 975

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BALANCE SHEET OF AMUL

PARTICULARS
Opening stock Raw materials consumed Salaries Power and fuel expenditure Other manufacturing expenses Rent and electricity expenditure Repairs and maintenances Expenditure Marketing Expenditure Postage Telephone Printing and Stationary Donation Cooperative Development Expenses Legal and Professional charge General Expenses Traveling and Conveyance

2005
17951.14 44095.28 2263.58 1563.14 339.93 112.84 582.47 8091.81 288.40 186.36 45.54 222.98 351.70

2006
19295.58 45518.15 2385.18 1396.07 312.31 107.56 582.04 9157.24 300.27 36.00 2136.66 36.04 220.33 366.39

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BALANCE SHEET OF AMUL

PARTICULAR
Net purchase Raw materials consumption Research expenditure Processing expenditure Packaging expenditure Power and fuel Salaries Staff P.F and gratuity Repair expenditure Marketing expenditure Printing and phone expenditure Insurance Premium Rent Expenditure Miscellaneous Expenditure Interest and Commission Depreciation Net Profit CREDIT Net Sales Income from Investment Dividend Income Miscellaneous Income 48403.01 376.12 72.47 489.40 46445.48 572.31 71.26 211.23

2004 - 2005
28630.73 8001.18 418.71 139.79 3021.22 2318.32 1260.15 268.54 342.75 30.44 26.39 18.11 7.83 22.24 1645.97 1349.38 145.74

2005 2006
28662.05 8990.68 350.71 124.73 2995.23 2339.90 1325.27 269.69 336.26 25.96 26.17 20.17 7.84 32.10 1445.95 1336.59 196.20

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RESEARCH AND DEVELOPMENT

The Amul dairy is having independent research & development department. Dairy has to maintain the quality of the product so person have to measure the fat, pasteurization and also quality.

The Amul dairy researches its product at every two hours. Dairy has a milk reception lab it has a SNF. Central lab for quality assurance is found a quality every two hours in a day because the test of the product is depended on a quality and milk is a finish good so it can not be maintained for the long time so Amul dairy researches every hour to maintain the taste of the product.

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CORPORATE SOCIAL RESPONSIBILITY, THE AMUL WAY

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

CSR-sensitive Organizational Structure

1 VILLAGE CO OPERATIVE SOCIETY

DISTRICT CO-OPERATIVE SOCIETY

3 STATE LEVEL CO-OPERATIVE SOCIETY 1st tier :- co-operative society at the village, of which; milk producers are voluntary members. They purchase milk form member & sell it to the district level co-operative. 2nd tier :- The district co-operative that processes milk into milk products, markets locally & sells surplus to the state co-operative for national & international marketing. There are 12 district co- operatives managed by a 15 member board elected by nominated representatives or chairman of the village co-operatives.

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3rd tier :- The state level co-operative - the Gujarat Co-operative Milk Marketing Federation (GCMMF) responsible for national and international marketing of milk and milk products produced and sold to it.

CSR-Sensitive Business Philosophy

The first step towards discharging the CSR is the business philosophy of the GCMMF. It is two-fold: one, to serve the interests of milk producers and second, to provide quality products to consumers as value for money. The milk producers are paid for their milk in accordance with market forces and realisation of value for their produce.

CSR-Orientation to Distributors & Retailers

In Amul Yatra the distributors and their salesmen are taken on a visit to Anand. During this visit they are shown dairy plants, their upkeep, international standards of hygiene and quality, the practices adopted for clean milk production, and above all the cooperative philosophy. Through one to one talk with the farmers, the distributors and salesmen realise AMUL is a large business of small farmers.

AMUL RELIEF TRUST

Formed under the Chairmanship of Dr. V. Kurien in 2001 with a donation of Rs. 50 Millions for reconstruction of the school buildings damaged in the 2001 earthquake in the Kutch area. The Trust reconstructed 6 schools damaged by the above earthquake at a cost of Rs. 41.1 millions in Kutch area.

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SWOT ANALYSIS
The study of this SWOT analysis shows that the strengths and opportunities far outweigh weaknesses and threats. The strengths and opportunities are fundamental and weaknesses and threats are transitory.

STRENGTHS:
Demand profile: Absolutely optimistic. Margins: Quite reasonable. 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 per cent of chocolate 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:
Perishability: Pasteurization has overcome this weakness partially. Which gives chocolate long life. Surely, many new processes will follow to improve chocolate quality and extend its shelf life.

Lack of control over yield: Theoretically, there is little control over chocolate yield. However, increased awareness of developments like embryo transplant,artificial insemination and properly managed animal husbandry

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practices, coupled with higher income to rural milk producers should automatically lead to improvement in chocolate.

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 well with distribution. But then if ice creams can be sold virtually at every nook and corner, why cant we sell other dairy products too? Moreover, it is only a matter of time before we see the emergence of a cold chain linking the producer to the refrigerator at the consumers home!

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.

OPPORTUNITIES:
Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential areas of value addition: a)Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets, chocolates etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building.

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b) Addition of cultured products like yoghurt and cheese lend further strength - both in terms of utilization of resources and presence in the market place. Yet another aspect can be the addition of infant foods, geriatric foods and nutritional.

Export potential: Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new treaty, opportunities will increase tremendously for the export of agricultural products in general and dairy products in particular.

THREATS:
Milk vendors, the un-organized sector: Today chocolate vendors 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.

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FUTURE PLANS
1.One of the most important future plan of Amul Ltd. is to increase their exports in other countries in coming time. 2.Another important plan Of Amul is to better their transportation facilities and set a new benchmark for others to follow. 3.Amuls intention is not to earn super-normal profit, but certainly their plan is to maintain low prices of their products in future. These are some of the major future plan of Amul.

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SUGGESTIONS
Of the three A's of marketing availability, acceptability and affordability, Indian dairying is already endowed with the first two. People in India love to drink milk and eat chocolate. Hence no efforts are needed to make it acceptable. Its availability is not a limitation either, because of the ample scope for increasing milk production. It leaves the third vital marketing factor affordability. How to make milk and its product affordable for the large majority with limited purchasing power? That is essence of the challenge. One practical way is to pack chocolate in small quantities of sachets. Already, the big chocolate has given way to single - use sachets which are more economical. Another viable alternative is to sell small quantities of chocolate in mini - sachets, adequate for one or two person.

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CONCLUSION

After studying the details about the marketing strategies & behaviors of Amul, We can conclude the following: AMUL will be an outstanding marketing organization, with specialization in marketing of food and dairy products, both fresh and long life with customer focus and information technology integration. The network would consist of over 100 offices, 7500 stockists covering at least every taluka head quarter town, servicing nearly 10 lakh outlets with a turnover of Rs.10,000 Crore, and serving several co-operatives. AMUL shall also create a market for its products in the neighboring countries.

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BIBLIOGRAPHY
. WEB-SITE:www.amul.com www.google.com www.scribd.com