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Before the cooperative movement began, middlemen who supplied milk to the consumers were exploiting the dairy industry in the Kaira District. It began as a response to this exploitation and put an end to it. It grew because it responded to the farmers financially as well as with services. It has thrived because farmers who have a stake in its success, own it. And because it has been managed by capable professionals and strengthened by dedicated scientists, technologists and workers, it has forged ahead. Today in India, there are 75,000 dairy cooperative societies, spread all over the country with a membership of 10 million. The farmer in the village is now assured of a better future thanks to these cooperatives. Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India. It is also the world's biggest vegetarian cheese brand.

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HISTORY OF THE COMPANY: The story of AMUL inspired Operation Flood ' and heralded the 'White Revolution ' in India. It began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to the flood it has become today. Today Amul collects processes and distributes over a million liters of milk and milk products per day, during the peak, on behalf of more than a thousand village cooperatives owned by half a million farmer members. Amul has become a symbol of the aspirations of millions of farmers; creating a pattern of liberation and self-reliance for every farmer to follow. The start of a revolution The revolution started as awareness among the farmers that grew and matured into a protest movement and the determination to liberate them. Over four decades ago, the life of a farmer in Kaira District was very much like that of his counterpart anywhere else in India. His income was derived almost entirely from seasonal crops. The income from milch buffaloes was undependable. Private traders and middlemen controlled the marketing and distribution system for the milk. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throwaway prices. In this situation, the one who gained was the private trader. Gradually, the realization dawned on the farmers that the exploitation by the trader could be checked only if marketed their milk themselves. In order to do that they needed to form some sort of an organization.

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Administration Gujarat Cooperative Milk Marketing

Federation Ltd. (GCMMF), is India's largest food product marketing organization with annual turnover (2010-11) US$ 2.2 billion. Its daily milk procurement is approx 12 million lit (peak period) per day from 15,712 village milk cooperative societies, 17 member unions covering 24 districts, and 3 million milk producer members .

Management functions PLANNING : AMUL has been able to: Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its roles and limitations. Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. Provide a support system to the milk producers without disturbing their agro-economic systems. History The AMUL revolution started as awareness among the farmers grew and matured into a protest movement. Over four decades ago, the life of a farmer in Kaira District was very much like that of his counterpart anywhere else in India. His income was derived almost entirely from seasonal crops.


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Human resource Management Introduction : According to SCOOT CLOTHIER AND SPRIGGEL Human resource management as the branch of management which is responsible on a staff basis for concentrating on those aspects of relationship of management to employees and employees to employees and with the development of the individual and the group. The objective is to attain maximum individual between employer and employees and effective moulding of human resources as contrasted with physical resources.



Human resource Management RECRUITMENT AND SELECTIONRECRUITMENT: There are two types of Recruitment sources followed by Amul: EXTERNAL SOURCES. INTERNAL SOURCES. INTERNAL SOURCES: Internal sources include personnel already on the payroll of the organization. Present Permanent Employees. Human resource Management RECRUTMENT POLICY OF AMUL: Entry level qualification: Below officers cadres: S.S.C / H.S.C Attendant Operator Dairy (AOD) G Gr.Worker. Taken as apprentice under trade apprentice Act 1961 2/3 yrs Apprenticeship, then based on their appraisal report, selected as temporary worker. After total 5yrs of work, may be selected as GGrade Worker.

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Human resource Management SELECTION: Selection procedure is concerned with securing relevant information about the applicant. The main objective of selection process is to determine whether an applicant meets the qualification for a specific job and choose the application that is most likely to perform well in the job.

Human resource Management The Selection process in AMUL is as under: Vacancy in any department Approval from M.D Advertisement Collection of application Securitize the application Interview Medical checkups Selection

Human resource Management After selection, the employees generally have probation period. In AMUL probation period is different for different type of employees. Probation period for officers is 12 months, 6 months for clerical employees and 3month for workers.

Human resource Management TRAINING AND DEVLOPMENT: Definition: is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format. Training is the process where the work related knowledge, skills and attitude are given to new employees. By which they aware the policies rules and increase technical and manual efficiency and create of responsibility. AMUL has accepted three methods for the training: On the job method . Off the job method. In house training. Out house training.

Human resource Management TRAINING PROCEDURE IN AMUL: Identification of need of Training Module Preparation Selection of Employee for the Training Training Feedback

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Human resource Management PERFORMANCE APPRAISAL: Performance appraisal is the process of evaluating the performance and qualification of employees in terms of the requirement of the jobs for which they are employed. It is highly useful in making decision regarding the promotion, transfer, wage and salary administration etc. The AMUL adopts the following appraisal system Final confirmation with the recommendation by the divisional heads comes from the MD on annual basis. His work is evaluated by Check list Method of Performance Appraisal. These are a various method used to appraise the performance of an employee.

Human resource Management In Amul the following methods are used: Self appraisal: If individuals understand the objectives they are expected to achieve the standards by which they are to be evaluated they are to a great extent in the best position to appraise their own performance. In this method employee himself. Managers Appraisal: The general practice is superiors appraise the performance of their subordinate. Other supervisors, who have close contact with employee s work may also appraise with a view to provide additional information.

Human resource Management A higher level manager appraise the employees for their performance. In Amul various attributes consider for the appraisal of employee. Job knowledge. Work output. Quality of work. Interest in work. Initiatives. Past records. Seniority .

Human resource Management This appraisal is also the rating scale. Method appraiser also appraised employee by following: Outstanding. Good. Satisfactory. Poor.

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Human resource Management The overall assessment is done through above rating and also the comment of reviewing officer is included. Apart form this the performance in liked allowance is provided in relation with performance that is: 25% 50% 100% Not allowed. This is provided by and under knowledge of under Managing Director Generally in Amul on base of performance appraisal employee of managerial level gets specials allowance. While for workers they get promotions. The overall assessment is done through above rating and also the comment of reviewing officer is included. Apart form this the performance in liked allowance is provided in relation with performance that is, 25%53 50% 100% Not allowed

Human resource Management WAGES AND SALARY: common method is followed for the wage and salary administration according to Muster roll . Timekeeper sends that muster roll to the account department for attendance of each and every employee. This will analyze and entered in the computer. After this salary is calculated for each employee through computer according to that they prepare salary sleep of employees.

The success to any industrial unit depends upon their effective personnel department. Personnel department is basically commercial with human resource of an enterprise and it also continues procurement, development, non-monetary comparison, integration and maintenance of the

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personnel purpose of contribution towards the accomplishment of the organizations major goal and objectives.

Personnel management in opinion of many authors is true management. So sometimes it is told that management means to manage human behaviour. Personnel 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 checkups, various types of training, transfer, welfare activities, union activities, etc.


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
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people necessary to ensure the continues operation of the organization requirement has, been regarded as the most important function of personnel 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 personnel division they get require employees by resources like postal services employment exchange education institution and advertisement.

Amul Dairy receives lots of applications in response to their advertisement. These forms contain general information about the candidates. Then forms are to be checked by authorized person and after scrutinizing eliminate the unqualified applications. Short listed Applicants are called for personal interview. Interview committee conducts this interview. When applicants are too many, then they conduct a written test. Those who pass this test are called for interview and are selected on the basis of smart selection process.

Sources of Recruitment By giving advertisement in news papers Labour Union Voluntary Organisation Leasing Contract
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Private Employment Agency Government Employment Exchange School, Colleges, Universities and Professional Institutes Recommendation of present Employee Recruitment as Temporary Workers


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.


Training and management development are the two separate things. Training is required for persons working at operation level and it is required for increasing the knowledge and skills of employees so that they can perform their tasks in the best manner while management

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development refers to the activities that take place in order to improve the performance of the managerial level personnel.

Training and management development contribute a lot in increasing the productivity. To facilitate newly selected person at operation level, he is placed 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 people who are having an experience of at least three years in similar fields. Then a newly selected persons performance is observed for three months.


Promotion Two main policies followed by the organization are: Automatic promotion Merit cum seniority.

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During the period of 1972, promotion was given automatically to a person who had completed his 6 yrs and 2nd promotion was given after 7 yrs. At that time they had a policy of rewarding merit on the basis of seniority. But now it is solely based on merit. Managing Director signs the promotion order after the recommendation by the personnel & Administration department.

Transfer Transfer is the pre-relative right of the management. Transfer is done if it is necessary for the organization. Transfer is generally affected to build up a more satisfactory work team & to achieve a specific purpose. In this organization transfer takes place in flash season. Transfers are also to adjust the work forces of one plant with another.


Attendance is considered to be one of the major & important factors responsible for the Wage & Salary Administration. At present catalogue record is received from the time keeping office and is maintained in the register, which is known as master roll.

Timekeeper sends this master roll to the accounts department. Attendance of each & every employee is analyzed & entered into the computer. The record is scrutinized and a statutory and
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non-statutory deduction is made and then after salary is calculated for each employee. The wages are paid in cash & also credited in corporate salary a/c. Employee wages are deducted according to grades of workers. It consists of A, B, C, D, E, and F grade of workers.


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 i.e. major responsibilities & positioning of job in organization. It provides the worker and supervisor with a clear idea of what kind of work they need to do to meet the demands of the job. Here those who are at senior Level make job description regarding managerial position.


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To achieve and maintain competitive advantage, innovation in product design and delivery are increasingly essential.

To innovate at each stage in value chain production, procurement, processing, marketing and branding.

To devise more effective ways of attracting and retaining skilled human resources.

To provide them an adequately self-motivating work environment that draws the best out of them on a sustained basis.

The Dairy Demonstration Project is a collective effort of the Union and Bank. The project envisages encouraging the farmers to use high yielding animals and modern aids to increase production. The union will provide necessary guidance to the milk producers on various techniques and required financial support will be forthcoming with the co-participation of Bank. To illustrate and bring about better understanding of the project, a model farm is being set up at Mogar and Khatraj to impart training to the participants.
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Suvarna Jayanti Gram Swarojgar Yojana helps its beneficiaries to avail loan from the bank with the Government approval. Under this scheme a marginal producer intending to avail the benefits, is allocated an amount adequate for purchase of 2 milch animals along with required other implements on a soft loan basis. This scheme not only help enhance the productivity and living standards of subscribing producers, the union in turn will also be benefited by the way of enlarged membership and increased milk procurement.


Collection of Raw Milk Raw milk is collected from different co-operative societies of Gujarat. About 122000 liters of raw milk is collected per day. Before this milk is sent to the laboratory for testing 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 trucks.

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After collecting the samples of milk, they are taken to the laboratory ,where two types of tests are conducted. Electronic milk test Methyline blue reduction test

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 tester, the proportion of SNF & FAT is checked with phosphate solution. When the colour of the milk becomes yellow, 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 methyline blue solution is added to it. It is then kept under water at 57-degree C. Pasteurizing & standardizing After collecting and checking and conducting laboratory tests, the pasteurizing process is conducted. To pasteurized the milk means to kill all the germs in the milk by a particular method which was invented by a scientist called James Pasteur and so the name pasteurization.

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Standardization process is known such as it bifurcates the milk in 3 categories varying according to that FAT & SNF contents.. Ready Milk = Pasteurized + Standardized.

Separation process Separator machine separates two kinds of products, skimmed milk & cream, through channels. There are 100 disks fixed in separator machines, which revolve at 5000 rpm (revolution per minute). It is taken to the tanks, which has the capacity of 20000 litres. Whenever the milk is needed from the tank, it is tested in the laboratory and the deficit proportion fat is added by mixing cream. This process continues for 24 hours.

Quality Check

Pasteurized milk is sent for a quality check in the Quality Assurance laboratory of the dairy plant. Within 14 seconds FAT and SNF proportion is received regarding 30 lack litres of milk. The total investment put into the lab by the Dairy plant is of Rs. 6 crores.

Packing Process

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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.

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. About 40000 litres of milk is dispatched from the cold storage of the dairy plant every day. The damaged pouches are kept a side and the milk is once again put to the tank.

Milk Powder For converting milk powder first of all water content is evaporated in condensing plant. By this process they get condensed milk, it is used as a raw material. There after the milk is sent to the drying plant. The spray drying plant is huge in size with a height of 70 feet.

After processing the powder is sent for quality checking at quality assurance laboratory. After the quality confirms, this milk powder is differentiated, by adding different flavors to them like elaichi, chocolate & sugar free milk powder. Thereafter they are packed in tins and boxes. Afterwards it is stored at storage department.

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Distribution Chart Products Agents Wholesaler Retailer Consumer

We can see from above figure that GCMMF distribution channel is simple and clear. The products change hands for three times before it reaches to the final consumer. First of all the products are stored at the Agents end who are mere facilitators in the network. Then the products are sold to wholesale dealers who then sell to retailers and then the product finally reaches the consumers.


Amul has two agencies that look after its entire range of products namely FCB Ulka and Da Cunha.

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FCB Ulka looks after a broad range of products namely, Amul Lite Breadspread, Amul Shrikhand, Amul Chocolates, Amul Paneer, Amul SnowCap Softy Mix Ice cream, Amul/Sagar Ghee, Amul Infant Milk Formula 1 & 2, Sagar Tea and Coffee whitener, Amul Spray Infant Milk Food, Amul Mithaee, Amul Gulab Jamun, Amulya Dairy Whitener, Mithaimate Sweetened Condensed Milk, Amul Ice cream, Sagar Skimmed Milk Powder and Amul Whole milk Powder. Few Of The Bill Boards Of The Company Is As Follows:

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Rajiv Gandhi National Quality Award 1999 International CIO 100 Award For Resourcefulness 2003 Qimpro Gold Standard Award 2003 Qimpro Gold Standard Award 2003 Ramkrishna Bajaj National Quality Award 2003 The International Dairy Federation Marketing Award- 2007 Srishti G-cube Award For Good Green Governance 2009 International Dairy Federation Award 2010

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Strengths Demand profile: Absolutely optimistic. Milk being a necessity product, the demand will stay and the sales at GCMMF are bound to increase over a period of time. Margins: Quite reasonable, even on packed liquid milk. The margins are enough to limit the entry of potential entrants. Flexibility of product mix: Tremendous. With balancing equipment, GCMMF has kept adding a wide array of products to its product line. Availability of raw material: Abundant. Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which requires proper channelization. Amul & GCMMF have leveraged this and has got itself a strong base of suppliers who provide them milk throughout the year. Large number of dairy plants in public and cooperative sectors besides several others coming up in the private sector would result in competition. Because of this the end consumer would benefit and a good product mix would emerge.

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Technical manpower: Professionally trained, technical human resource pool, built over last 30 years is the strength that GCMMF has. The employees of GCCMF are highly recognized in the industry and have earned name for themselves as well as the federation.

Enhanced Milk Production: Increase in the milk production with consequently increased availability of milk processing has led to increase in consumption and faster access to the consumers through effective distribution. The technology is brought from Denmark and the production of milk has benefited from that.

Transportation: The transportation facilities and the easy availability of the special trucks have provided a boost. Cold refrigerated trucks are there in place and the warehouses also have the cold storage facilities that facilitate the transportation.

Vast resources: Country has vast natural resources which offer immense potential growth and development for dairying. Moreover the financial resources available with the federation are immense and the reputation is such that in case of any further requirements, it can approach any institution and raise any form of capital.

Increasing purchase power and changing tastes of the consumers: The purchasing power of the residents is increasing. As a result a lot of products are being consumed. Moreover, the consuming habits are changing. As a result, the demand for products such as butter and cheese is increasing at a very rapid rate.

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Perishability: Pasteurization has overcome this weakness partially. UHT gives milk long life. Still perishability is there at the milk vendors end. This does result in loss of some production. But Amul Dairy is taking steps to store milk at the vendors end. 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. A lot depends upon the monsoon in the country. This is because of the quality of cattle feed that would be available will not have the required nutritional content. Steps are taken to provide awareness regarding these and the penetration of quality feed is being increased. Moreover, increased awareness of developments 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. All these factors lead to perishability of the procured milk. But with the overall economic improvement in India, these problems would also get solved. Erratic power supply: The erratic power supply would cause harm in the processing of milk. Underdeveloped systems: There still exist underdeveloped raw milk collection systems in some parts of the country. However steps are being taken such as setting up of cold storage points at key collection centers to combat the situation.

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Lack of proper implementation: Dairy development programmes have not been fully implemented as per the needs of the region in different agro-climatic zones. Infrastructure: The infrastructure that is available is not up to the current world standards. Also lack of infrastructure for offering dairy business management programmes to the trained personnel is creating a hindrance. Opportunities "Failure is never final, and success never ending. Dr Kurien bears out this statement perfectly. He entered the industry when there were 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: 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. Moreover due to competition, there is a chance to better serve the market with innovative products. Value addition: There is a phenomenal scope for innovations in product development.

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Threats Milk vendors, the un-organized sector: Today milk 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.

Infestation: There are increasing incidents of chemical contaminants as well as residual antibiotics in milk.

Quality: The quality of the milk is found to be poor as compared to the international standards. One of the reasons for these according to the EU and America is the method of milching the milk. In these nations the milk is hands by the farmers owning the cattle do milched with the help of machines, while in India.

Exploitation: The liberalization of the Dairy Industry is likely to be exploited by the multinationals. They will be interested manufacturing the milk products, which yield high profits. It will create milk shortage in the country adversely affecting the consumers.

Subsidy by Western Nations: There have been incidences wherein the Western nations subsidizing the dairy products by a few means like transportation. Because of such reasons the final price of the product goes below the prices prevailing in the Indian Market. Hence it proves a threat to GCMMFs and other Indian dairy products.

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Creation of Non Tariff Barriers by Developed Nations: The Developed Nations have created Non Tariff Barriers related to Quality of the milk specifically. They want that the milk be processed with potable Air and Water. They also want that the milching of cattle be done with the help of machines. However this type if system is yet to evolve in India. Because of these reasons they are reducing the market potential of Indian made products, where GCMMF holds a lions share.

The study of this SWOT analysis shows that the strengths and opportunities far outweigh weaknesses and threats. Strengths and opportunities are fundamental and weaknesses and threats are transitory. Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and marketing) and values (of quality/ethics).

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The organization may face the following challenges in the future: Global demands and changes. Foreign affiliations. Competition. Liberalisation. Changing values. Urban shifting. Changing interests. Adoption of latest technology. Production according to international standards with foremost quality. Increase need for R&D. To keep the prices steady and reduce production and maintenance expenses. To enhance milk production by adopting better animal husbandry practices and improving calf rearing practices in order to assure a stand in international market in the foreseeable future. Expansion and upgrading of plant and equipment to meet increasing demanded for quality and quantity with the help of better-qualified personnel. Development of new markets and expansion of old ones replacing additional system with quality packaged milk products and vegetable.

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Amul means different things to different people. To a milk producer A life enriching experience To a consumer Assurance of having wholesome milk To a mother A reliable source of nourishment for her child To the country Rural development and self reliance

Amul has given a new dimension to marketing. It showed that a democratically owned and managed farmer organization can successfully develop national market, but by doing this Amul provided virtually guaranteed marketing service to the milk producer at his door step. Amul has displayed dynamic initiative at a time when its multinational competitors were merely content to use depreciated machinery.

Following factors have given us the insight to conclude, why Amul is thriving with success today:

Emphasis on Quality: All the products of Amul are of highest grade. Consumers were very quick to perceive this and the sales success that followed reflected the publics stamp of approval.

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Modern marketing: A good product alone cannot succeed unless backed by innovative marketing, including packaging, price and promotion. Amuls advertising campaigns created a splash in the market that eventually led to a tidal wave that rocked the competition.

Management: The judicious handling of people, recognition of performance and encouragement for a good try has gone a long way to build a sound foundation of people. All the basic components of management that is production, marketing, finance and organization behavior are nicely arrayed at Amul.

The co-operative concept: The fundamental thesis underlying the Anand model is that the rural producer must own and enjoy the assets they have helped to create. The model has inspired the creation of hundreds of other Anand.

The system has succeeded mainly because of involvement of people on such a large scale, providing assured market at remunerated prices for milk producers, enables the consumers access to high quality milk and milk products, ploughing back the profit to the members, part of the profit is used by the society for common good and community development. Amul is doing everything in the best possible manner. Just look at its product quality, packaging, advertising and nationwide marketing network. This has given Amul an edge over its competitors.

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Facts 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 liters per day Milk collection (Total - 2008-09): 3.05 billion liters Milk collection (Daily Average 200809): 8.4 million liters Milk Drying Capacity: 626 Mts. per day Cattle feed manufacturing Capacity: 3500 Mts. per day

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