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RESEARCH PROJECT REPORT

ON
Comparative Study into Sales & distribution of
AM! "A#R$ & PARA% "A#R$ &
S'M#TTE" #N PART#A! (!(#!MENT O( THE A)AR"
O( THE "E%REE O(
MASTERS O( 'S#NESS A"M#N#STRAT#ON *+,,-.
+,//0
MAHAMA$A TECHN#CA! N#1ERS#T$
0
"EC!ARAT#ON
I hereby declare that the project report entitled Comparative
Study into Sales & distribution of AM! "A#R$ &
PARA% "A#R$ &
is an original and authentic work done by me and is based upon the
study conducted by me.
This project report was undertaken as a part of the M.B.A. Programme
of Mahamaya Technical Uniersity.
1
ACKNOWLEDGEMENT
I would like to express my heartfelt gratitude toward Mr. Mr. J. K. Joshi [G. M.]
the chairman of the AMUL, who gave me permission to do my Summer raining
!ro"ect in AMUL. Also I would like to convey my sincere thanks to Mr. Cyril
parmar (Training in charge) who supported me in ac#uiring practical knowledge
throughout guiding me in my pro"ect.
I am deeply thankful to $IM Institute of Management % echnology for
permitting me to do Summer raining !ro"ect and encouraging me to complete
successfully. I would also like to thank my faculty mem&ers, for her keen interest,
valua&le guidance, inspiration, immense 'eal for hard work and positive outlook
towards the su&"ect. heir intellect, persuasiveness and insistence on a good
work were a guiding light in the darkness of my ignorance.
I would also like to express my sincere thanks to administrative personnel who
have helped me in carrying out my summer training. Lastly, I would like thank all
the persons who have helped me directly or indirectly in completing my pro"ect
successfully.
2
PRA1EEN
2MAR


PREFACE
Summer Internship !rogramme is a part of M(A !rogramme, which is very
helpful in getting practical knowledge in this glo&ali'ation world. )ow*a*days only
theoretical knowledge is not enough to success in life &ut most important we
must have practical knowledge. +ith the help of this training, I came to know how
to apply theoretical knowledge in practice.
Main purpose of this training is to have awareness a&out industrial environment
and to know a&out different functions of an organi'ation like ,istri&ution,
!roduction and Marketing.
I got an opportunity in -AI.A ,IS.I/ /0*0!1.AI21 MIL- U)I0)
LIMI1,, Anand, $u"arat to undergo Summer Internship !rogramme as a part of
M(A !rogramme. I consider myself privileged that I got a chance to work with
reputed company and can upgrade my knowledge related to practical aspect of
&usiness world which is very helpful in my career &uilding.
.
3
CONTENTS
Chapter
Executive Summary
Introduction to the Indian Dairy Industry
Company Profile of mul
Company Profile of Para! Dairy
Sales and Distri"ution strate!ies
Chapter !
#esearch $ethodolo!y
%"&ective of the study
Si!nificance of the study
#esearch $ethodolo!y
Data Collection 'echni(ues
nalytical 'ools
)imitations of the study
Chapter "
Data interpretation and *raphical nalysis
Chapter #
+indin!s, su!!estions and Conclusion
$nne%&re
a- .uestionnaire
"- /i"lio!raphy
0
1
EXECUTIVE SUMMARY
In todays competitive world while entering in the market it is very
necessary to have good knowledge of the potential of a particular
market. The growth of a company is invariably determined not just
by its strategy, but on how it responds to the challenges it
encounters. Over the decades A!" has successfully countered
several challenges that have come its way with innovative
responses and continuous improvement, which have enabled it to
remain stable and even convert some of these challenges into
opportunities. It is the culture of endurance that has accorded A!"
the insight and focus to deal with the current economic
environment. #rawing from its inner strength and beliefs, A!"
responded by launching several initiatives across all its operations
in various geographies that are helping the group achieve growth
even in current times. It is also this very strategic culture that will
propel A!" to continue on its growth trajectory in years to come.
'he report provides a comprehensive insi!ht into the company and also a"out the
company2s S3%' analysis. 'his report mainly studies in detail the various product
mix strate!ies of the company and also focuses on the se!mentation of "oth company
"ased and industry "ased and helps in analysin! the company2s competitive
advanta!e and the reason "ehind its success.
4
5
C3apter /
#N"#AN "A#R$ #N"STR$
6

#NTRO"CT#ON TO THE #N"#AN
"A#R$ #N"STR$
The 'orl()s *iggest (airy pro(&cing co&ntry is gro'ing +ast an( loo,ing to *ecome
an e%port po'erho&se (espite ma-or .&ality pro*lems...
$ Note to o&r /ea(ers0 the follo7in! information on India8s dairy sector is reproduced
from India Infoline.com. India is the 7orld8s lar!est mil9 producin! country and is
!ro7in! fast, 7ith an eye to7ard "ecomin! a ma&or dairy exporter. 'his article is helpful
readin! for anyone interested "etter understandin!.
Cons&mer 1a*its an( 2ractices
$il9 has "een an inte!ral part of Indian food for centuries. 'he per capita
availa"ility of mil9 in India has !ro7n from 152 !m per person per day in 1:52 to 162!m
in 1::2 and 203 !m in 1::6;::.'his is expected to increase to 212!ms for 2006.
<o7ever a lar!e part of the population cannot afford mil9. t this per capita consumption
it is "elo7 the 7orld avera!e of 261 !m and even less than 220 !m recommended "y the
=utritional dvisory Committee of the Indian Council of $edical #esearch.
:
'here are re!ional disparities in production and consumption also. 'he per capita
availa"ility in the north is 256 !m, 7est 150 !m, south 106 !m and in the east only :3 !m
per person per day. 'his disparity is due to concentration of mil9 production in some
poc9ets and hi!h cost of transportation. lso the output of mil9 in cereal !ro7in! areas is
much hi!her than
else7here 7hich can "e attri"uted to a"undant availa"ility of fodder, crop residues, etc
7hich have a hi!h food value for mil9y animals.
In India a"out 04 per cent of the total mil9 produced is consumed in li(uid form
and 05 per cent is converted into traditional products li9e cotta!e "utter, !hee, paneer,
9hoya, curd, malai, etc. %nly 5 per cent of the mil9 !oes into the production of 7estern
products li9e mil9 po7ders, processed "utter and processed cheese. 'he remainin! 10>
is utili?ed for conversion to mil9 products. mon! the mil9 products manufactured "y the
or!ani?ed sector some of the prominent ones are !hee, "utter, cheese, ice creams, mil9
po7ders, malted mil9 food, condensed mil9 infants foods etc. %f these !hee alone
accounts for 61>.
It is estimated that around 20> of the total mil9 produced in the country is
consumed at producer;household level and remainin! is mar9eted throu!h various
cooperatives, private dairies and vendors. lso of the total produce more than 10> is
procured "y cooperatives and other private dairies.
3hile for cooperatives of the total mil9 procured 40> is consumed in fluid form and rest
is used for manufacturin! processed value added dairy products@ for private dairies only
01> is mar9eted in fluid form and rest is processed into value added dairy products li9e
!hee, ma9han etc.
10
Still, several consumers in ur"an areas prefer to "uy loose mil9 from vendors due
to the stron! perception that loose mil9 is fresh. lso, the current level of processin! and
pac9a!in! capacity limits the availa"ility of pac9a!ed mil9.
'he preferred dairy animal in India is "uffalo unli9e the ma&ority of the 7orld
mar9et, 7hich is dominated "y co7 mil9. s hi!h as :6> of mil9 is produced in rural
India, 7hich caters to 52> of the total population, 7hereas the ur"an sector 7ith 26>
population consumes 14> of total mil9 produced. Even in ur"an India, as hi!h as 63> of
the consumed mil9 comes from the unor!ani?ed traditional sector.
Presently only 12> of the mil9 mar9et is represented "y pac9a!ed and "randed
pasteuri?ed mil9, valued at a"out #s.6, 000 crores. .uality of mil9 sold "y unor!ani?ed
sector ho7ever is inconsistent and so is the price across the season in local areas. lso
these vendors add 7ater and caustic soda, 7hich ma9es the mil9 unhy!ienic.
Mar,et Si3e an( Gro'th
$ar9et si?e for mil9 Asold in looseB pac9a!ed form- is estimated to "e 34mn $' valued
at #s050"n. 'he mar9et is currently !ro7in! at round 0> pa in volume terms. 'he mil9
surplus states in India are Cttar Pradesh, Pun&a", <aryana, #a&asthan, *u&arat,
$aharashtra, ndhra Pradesh, Darnata9a and 'amil =adu. 'he manufacturin! of mil9
products is concentrated in these mil9 surplus States. 'he top 4 states vi?. Cttar Pradesh,
Pun&a", $adhya Pradesh, #a&asthan, 'amil =adu and *u&arat to!ether account for 16>
of national production.
11
$il9 production !re7 "y a mere 1> pa "et7een 1:05 and 1:50. Since the early
508s, under %peration +lood, production !ro7th increased si!nificantly avera!in! over
1> pa.
"out 51> of mil9 is consumed at the household level 7hich is not a part of
commercial dairy industry. )oose mil9 has a lar!er mar9et in India as it is perceived to "e
fresh "y most consumers. In reality ho7ever, it poses a hi!her ris9 of adulteration and
contamination.
'he production of mil9 products, i.e. mil9 products includin! infant mil9 food,
malted food, condensed mil9 E cheese stood at 3.05 la9h $' in 2006. Production of mil9
po7der includin! infant mil9;food has risen to 2.21 la9h $' in 2006, 7hereas that of
malted food is at 41000 $'. Cheese and condensed mil9 production stands at 1000 and
11000 $' respectively in the same year.
Ma-or 2layers
'he pac9a!ed mil9 se!ment is dominated "y the dairy cooperatives. *u&arat Co;operative
$il9 $ar9etin! +ederation A*C$$+- is the lar!est player. ll other local dairy
cooperatives have their local "rands A+or e.!. *o9ul, 3arana in $aharashtra, Saras in
#a&asthan, Fer9a in Pun&a", Fi&aya in ndhra Pradesh, avin in 'amil =adu, etc-. %ther
private players include G D Dairy, <erita!e +oods, Indiana Dairy, Dairy Specialties, etc.
mrut Industries, once a leadin! player in the sector has turned "an9rupt and is facin!
li(uidation.
12
2ac,aging Technology
$il9 7as initially sold door;to;door "y the local mil9man. 3hen the dairy co;
operatives initially started mar9etin! "randed mil9, it 7as sold in !lass "ottles sealed 7ith
foil. %ver the years, several developments in pac9a!in! media have ta9en place. In the
early 608s, plastic pouches replaced the "ottles. Plastic pouches made transportation and
stora!e very convenient, "esides reducin! costs. $il9 pac9ed in plastic pouchesB"ottles
have a shelf life of &ust 1;2 days, that too only if refri!erated. In 1::4, 'etra Pac9s 7ere
introduced in India. 'etra Pac9s are aseptic laminate pac9s made of aluminum, paper,
"oard and plastic. $il9 stored in tetra pac9s
and treated under Cltra <i!h 'emperature AC<'- techni(ue can "e stored for four months
7ithout refri!eration. $ost of the dairy co;operatives in ndhra Pradesh, 'amil =adu,
Pun&a"
and #a&asthan sell mil9 in tetra pac9s. <o7ever tetra pac9ed mil9 is costlier "y #s1;5
compared to plastic pouches. In 2006;00 =estle launched its C<' mil9. mul too
relaunched its mul 'aa?a "rand of C<' mil9. 'he C<' mil9 mar9et is expected to
!ro7 at a rate of more than 10;12> in comin! years.
13
/eg&latory 4rame'or,
'he dairy industry 7as de;licensed in 1::1 7ith a vie7 to encoura!e private
investment and flo7 of capital and ne7 technolo!y in the se!ment. lthou!h de;licensin!
attracted a lar!e num"er of players, concerns on issues li9e excess capacity, sale of
contaminatedB su"standard (uality of mil9 etc induced the *overnment to promul!ate the
$$P% A$il9 and $il9 Products %rder- in 2006. $il9 and $il9 Products %rder
A$$P%- re!ulates mil9 and mil9 products production in the country. 'he order re(uires
no permission for units handlin! less than 10,000 litres of li(uid mil9 per day or mil9
solids up to 100 'P. $$P% prescri"es State re!istration to plants producin! "et7een
10,000 to 51,000 litres of mil9 per day or manufacturin! mil9 products containin!
"et7een 100 to 3,510 tones of mil9 solids per year. Plants producin! over 51,000 litres
per day or more than 3,510 tones per year of mil9 solids have to "e re!istered 7ith the
Central *overnment. 'he strin!ent re!ulations, !overnment controls and licensin!
re(uirements for ne7 capacities have restricted lar!e Indian and $=C players from
ma9in! si!nificant investments in this product cate!ory. $ost of the private sector
players have restricted themselves to manufacture of value added mil9 products li9e "a"y
food, dairy 7hiteners, condensed mil9 etc.
ll the mil9 products except malted foods are covered in the cate!ory of
industries for 7hich forei!n e(uity participation up to 11> is automatically allo7ed. Ice
cream, 7hich 7as
earlier reserved for manufacturin! in the small;scale sector, has no7 "een de;reserved. s
such, no license is re(uired for settin! up of lar!e;scale production facilities for
manufacture of ice cream.
10
Su"se(uent to de;canali?ation, exports of some mil9 "ased products are freely
allo7ed provided these units comply 7ith the compulsory inspection re(uirements of
concerned a!encies li9eH =ational Dairy Development /oard, Export Inspection Council
etc. /ureau of Indian standards has prescri"ed the necessary standards for almost all
mil9;"ased products, 7hich are to "e adhered to "y the industry.
2roposal to $men( the MM2O
proposal to raise the exemption limit for compulsory re!istration of dairy
plants, from the present 10,000 litres a day to 20,000 litres, is "ein! considered "y the
nimal <us"andry Department. 'he 51,000;litre limit is li9ely to "e raised either to
100,000 litres or 121,000 litres in the amended order. 'he ne7 order 7ould also do a7ay
7ith the provision for re;re!istration.
2enetration o+ mil, pro(&cts
3estern ta"le spreads such as "utter, mar!arine and &ams are not very popular in
India. ll India penetration of "utterB mar!arine is only 0>. 'his is also lar!ely
represented "y ur"an areas, 7here penetration is hi!her at :>. In rural areas, "utterB
mar!arine have penetrated in 2.1> of households only. 'he use of these products in the
lar!e metros is hi!her, 7ith penetration at 11>.
11
Penetration of cheese is almost nil in rural areas and ne!li!i"le in the ur"an areas.
Per capita consumption even amon! the cheese;consumin! households is a poor 2.09! pa
as compared to over 209! in CS. 'he lo7er penetration is due to peculiar food ha"its,
relatively expensive products and also non;availa"ility in many parts of the country.
/utter, mar!arine and cheese products are mainly manufactured "y or!ani?ed sector.
Similarly, penetration of !hee is hi!hest in medium si?ed to7ns at 35.2>
compared to 31.5> in all ur"an areas and 21.3> in all rural areas. 'he all India
penetration of !hee is 20.1>. In relative terms, penetration of !hee is si!nificantly hi!her
in =orth and 3est, 7hich are mil9 surplus re!ions. =orth accounts for 15> of !hee
consumption and 3est for 23>, South E East to!ether account for the "alance 20>.
lar!e part of !hee is made at home and "y smallB cotta!e industry from mil9. 'he relative
share of "randed products in this cate!ory is very lo7 at around 1;2>.
$il9 po7der and condensed mil9 have not "een a"le to !arner any si!nificant
consumer acceptance in India as indicated "y a very lo7 0.5> penetration. 'he
penetration is hi!her at
6.1> in ur"an areas and lo7er at 3.1> in rural areas. 3ithin ur"an areas, it is relatively
hi!her in medium si?ed to7ns at 6.1> compared to 5.5> in lar!e metros.
14
E%port 2otential
India has the potential to "ecome one of the leadin! players in mil9 and mil9
product exports. )ocation advanta!eH India is located amidst ma&or mil9 deficit countries
in sia and frica. $a&or importers of mil9 and mil9 products are /an!ladesh, China,
<on! Don!, Sin!apore, 'hailand, $alaysia, Philippines, Gapan, CE, %man and other
!ulf countries, all located close to India.
The ma-or e%port pro(&cts0 5 'he products of mul is "ein! exported in the 00
countries of the 7orld . $any of the products are no7 availa"le in the C.S. , *ulf
countries and Sin!apore. mul products are "ein! exported to the Sin!apore since last
three decades . undou"tedly , mul is the preferred taste of Indians in the *ulf countries.
6o' Cost o+ 2ro(&ction H
$il9 production is scale insensitive and la"our intensive. Due to lo7 la"our cost, cost of
production of mil9 is si!nificantly lo7er in India.
Concerns in export competitiveness are 7&ality0 Si!nificant investment has to "e
made in mil9 procurement, e(uipments, chillin! and refri!eration facilities. lso, trainin!
has to "e imparted to improve the (uality to "rin! it up to international standards.
2ro(&cti8ity0 'o have an exporta"le surplus in the lon!;term and also to maintain cost
competitiveness, it is imperative to improve productivity of Indian cattle.
'here is a vast mar9et for the export of traditional mil9 products such as !hee,
paneer, shri9hand, rasa!ulas and other ethnic s7eets to the lar!e num"er of Indians
scattered all over the 7orld.
15
#ndia4s e5ports of mil6 produ7ts
"es7ription
*8uantity9 M T:;
1alue9 Rs: million0
+,,<.,= +,,=.,- +,,-./,

8uantity 1alue 8uantity 1alue 8uantity 1alue
S6immed mil6 po>der ?9@A=:@+ A9AB:A+ +=+:<, /-:@? B:,, ,:A<B
Mil6 and Mil6 (ood for
babies
=:+< +:,/- ///:A< ?:+< //:,, +:,+

Mil6 7ream AA+:+A +=:,? /:,, ,:,=? . .
S>eetened
7ondensed mil6
?/:<A +:=? -:++ ,:-< @,:A- <:++

)3ey <=:?@ A:<B //:B, /:,/ @:,, ,:A?+
%3eeC'utterC'utter
oil
<9=-B:,= ?A/:/ +--:-< /-:+ ?9AB+:,= +9A=:-B

C3eese
*a0 (res3 ,:/, ,:,/A . . . .
*b0 Pro7essed B:@< /:+, +:/ ,:A<B ++:/, +:/-
*70 Ot3er @@:@? =:AB A@:<= ,:@- +?:=? ?:BB
TOTA! . =9<+:< . B+:? . +9BB:@
#ndian *traditional0 Mil6 Produ7ts
'here are a lar!e variety of traditional Indian mil9 products such as
$a99han ; unsalted "utter. *hee ; "utter oil prepared "y heat clarification, for lon!er
shelf life. Dheer ; a s7eet mix of "oiled mil9, su!ar and rice. /asundi ; mil9 and su!ar
"oiled do7n till it thic9ens. #a"ri ; s7eetened cream. Dahi ; a type of curd. )assi ; curd
mixed 7ith 7ater and su!arB salt. ChannaBPaneer ; mil9 mixed 7ith lactic acid to
16
coa!ulate. Dhoa ; evaporated mil9, used as a "ase to produce s7eet meats. 'he mar9et
for indi!enous "ased mil9 food products is difficult to estimate as most of these products
are manufactured at home or in small cotta!e industries caterin! to local areas.
Consumers 7hile purchasin! dairy products loo9 for freshness, (uality, taste and texture,
variety and convenience. Products li9e Dahi and s7eets li9e Dheer, /asundi, #a"ri are
perisha"le products 7ith a shelf life of less than a day. 'hese products are therefore
manufactured and sold "y local mil9 and s7eet shops. 'here are several such small shops
7ithin the vicinity of residential areas. Consumer loyalty is "uilt "y consistent (uality,
taste and freshness. 'here are several s7eetmeat shops, 7hich have "uilt a stron! "rand
franchise, and have several "ranches located in various parts of a city.
9ran(ing O+ Tra(itional Mil, 2ro(&cts
mon! the traditional mil9 products, !hee is the only product, 7hich is currently
mar9eted, in "randed form. main !hee "rands are Sa!ar, $il9man A/ritannia-, mul
A*C$$+-, arey A$afco )td-, Fi&aya AP Dairy Development Cooperative +ederation-,
Fer9a A Pun&a" Dairy Cooperative-, Everyday A=estle- and +arm +resh A3oc9hardt-.
3ith increasin! ur"ani?ation and chan!in! consumer preferences, there is
possi"ility of lar!e scale manufacture of indi!enous mil9 products also. 'he e(uipments
in mil9 manufacturin! have versatility and can "e adapted for several products. +or
instance, e(uipments used to manufacture yo!urt also can "e adapted for lar!e scale
production of Indian curd products Adahi and lassi-. Si!nificant research 7or9 has "een
done on dairy e(uipments under the ae!is of =DD/.
1:
$afco )imited sells )assi under the arey "rand and flavored mil9 under the
Ener!ee franchise Ain the 3estern re!ion, mainly in $um"ai-. /ritannia has launched
flavored mil9 in various flavors in tetra pac9s.
*C$$+ has also made a "e!innin! in "randin! of other traditional mil9 products
7ith the launch of pac9a!ed Paneer under the mul "rand. It has also created a ne7
um"rella "rand Imul $ithaeeI, for a ran!e of ethnic Indian s7eets that are proposed to
"e launched the first ne7 product mul $ithaee *ula"&amun has already "een launched
in ma&or Indian mar9ets.
:estern Mil, 2ro(&cts
3estern mil9 products such as "utter, cheese, yo!urt have !ained popularity in the Indian
mar9et only durin! the last fe7 years. <o7ever consumption has "een expandin! 7ith
increasin! ur"ani?ation.
20
9&tter
$ost Indians prefer to use home made 7hite "utter Ama99han- for reasons of taste and
afforda"ility. $ost of the "randed "utter is sold in the to7ns and cities. 'he ma&or "rands
are mul, Fi&aya, Sa!ar, =andini and arey. mul is the leadin! national "rand 7hile the
other players have !reater shares in their local mar9ets. 'he latest entrant in the "utter
mar9et has "een /ritannia. /ritannia has the advanta!es of a 7ide distri"ution reach and
a stron! "rand recall.
Priced at par 7ith the mul "rand, it is expected to !ive stiff competition to the existin!
players. In 2006;00 the "utter production is estimated at 0 la9h $' of this only 01D $'
is in the 7hite form used for ta"le purposes rest all is in the yello7 form.
Cheese
'he present mar9et for cheese in India is estimated at a"out :,000 tonnes and is !ro7in!
at the rate of a"out 11> per annum. Cheese is mainly consumed in the ur"an areas. 'he
four metro cities alone account for more than 10> of consumption. $um"ai is the lar!est
mar9et Aaccountin! for 30> of cheese sold in the country-, follo7ed "y Delhi A20>-.
Calcutta A5>- and Chennai A4>-. $um"ai has a lar!er num"er of domestic consumers,
compared to Delhi 7here the "ul9 institutional se!ment Amainly hotels- is lar!er.
21
"emand for various types of 73eese in t3e #ndian mar6et
Type of 73eese D of total 7onsumption
Pro7essed B,
C3eese spread A,
MoEEarella /,
(lavoredCSpi7ed B
Ot3ers B
'he ma&or players are mul, /ritannia, and Da"on International dominatin! the mar9et.
%ther ma&or "rands 7ere Fi&aya, Fer9a and =andini Aall "rands of various re!ional dairy
cooperatives- and Fadilal. 'he heavy advertisin! and promotions "ein! underta9en "y
these ne7 entrants is expected to lead to stron! 20> !ro7th in the se!ment. mul has
also "ecome more a!!ressive 7ith launch of ne7 variants such as $o??arella cheese
Aused in Pi??a-, cheese po7der, etc.
'he entry of ne7 players and increased mar9etin! activity is expected to expand the
mar9et. ll the ma&or players are expandin! their capacities
22
Capa7ity e5pansion in C3eese
Company 'rands State Capa7ity
"ynami7s
%roup
Manufa7tures for
'ritannia
Ma3aras3tra AB tons per
day
%CMM( Amul %uFarat +, tons per
day
AP""C( 1iFaya And3ra
Prades3
/, tons per
day

Mil6 Po>der
$il9 po7der is mainly of 2 types
J 3hole mil9 po7der
J S9immed mil9 po7der
3hole mil9 po7der contains fat, as distin!uished from s9immed mil9 po7der, 7hich is
produced "y removin! fat from mil9 solids. S9immed mil9 po7der is preferred "y diet
conscious consumers. Dairy 7hiteners contain more fat than s9immed mil9 po7der "ut
less compared to 7hole mil9 po7der. Dairy 7hiteners are popular mil9 su"stitute for
ma9in! tea, coffee etc.
'he penetration of these products in mil9 a"undant re!ions is driven "y
convenience and non perisha"le nature Alon!er shelf life- of the product.
23
Dairy sector of advanced nations export mil9 products 7ith a su"sidy of K 1000
per tones 7ith a level of su"sidy more than 40 > of the price of mil9 po7der produced in
India, this has led to lar!e scale imports of mil9 po7der "oth in 7hole and s9immed
form. 'o protect the domestic sector from these su"sidi?ed imports the central
!overnment has recently increased the "asic import duty on all imports of mil9 po7der
more than 10000 $' to 40> from 11>. +or imports less than 10000 $' the "asic
customs duty has "een left unchan!ed at 11>.
In 2006 India is estimated to have imported a"out 16,000 tonnes of mil9 po7der a!ainst a
total estimated production of 2.00 )a9h $'s. In 2005;06 India is expected to export
10000 $' of s9immed mil9 po7der due to rise in international prices to K2300 per $'
from last year8s levels of K1000 per $'. 'hese expectations are "ased on the stron!
demand from #ussia, East sia and )atin merica, and also on ti!htenin! of supply in
EC, 7hich accounts for 51> of the annual !lo"al S9immed $il9 Po7der exports.
Mil, Collection Cycle
'he success of each and every dairy industry is the !ettin! the mil9 from the
farmers and ma9in! that mil9 in use as soon as possi"le "efore that mil9 !et spoiled
"ecause the mil9 is the perisha"le product. +or the smooth runnin! the "usiness of dairy
industry the industry must concentrate on the mil9 collection cycle. mul dairy is very
conscious a"out the mil9 collection cycle "ecause the "ase of the success of the mul is
mil9 collection cycle.
2ro(&ction capacity o+ $m&l
/utter 10 to 40 'ones
Po7der plant 50 tones
Po7der plant 40 tones
+lavour mil9 00000 "ottles
20
Ma-or 2layers
$il9 Po7derBDairy 3hitenersH $a&or s9immed mil9 "rands are Sa!ar A*C$$+- and
=andini ADarnata9a $il9 +ederation-, mul +ull Cream mil9 po7der is a 7hole mil9
po7der "rand.
)eadin! "rands in the dairy 7hitener se!ment are =estlL2s Everyday, *C$$+8s mulya,
Dalmia Industry8s Sapan, D7ality Dairy India8s DreamDountry, 3oc9hardt8s +arm +resh
and /ritannia8s $il9man Dairy 3hitener.
Con(ense( Mil,
'he condensed mil9 mar9et has !ro7n from :000 $' in 2005 to 11000 $' in 2006.
Condensed mil9 is a popular in!redient used in home;made s7eets and ca9es. =estlL2s
$il9maid is the leadin! "rand 7ith more than 11> mar9et share. 'he only other
competitor is *C$$+8s mul.
;n+ant 4oo(s
=estle is the mar9et leader in the se!ment. 'his is a cate!ory 7here "rand loyalties are
very stron! as mothers 7ant the "est for their "a"ies. <ein? is the only other si!nificant
competitor to =estle in this se!ment. =estlL2s Cerelac and =estum to!ether have around
60> mar9et share and <ein?8s +arex has close to 16> share. 3or9 hard is a relatively
ne7 entrant 7ith its +irst +ood "rand. 3oc9hardt also proposes to launch a ne7 "a"y
food Easum containin! moon! Amoon! is one of the easily di!esti"le pulses-. 'he Easum
"rand 7ill directly compete 7ith =estle8s =estum Amade from rice-.
21
In infant formula also =estle8s )acto!en formula and )acto!en standard formula
are the leadin! "rands 7ith around 51> mar9et share. %ther "rands are <ein?8s )actodex
+arex, 3oc9hardt8s M#apta9os, and mul8s mulspray
24
MaFor dairy produ7ts manufa7turers
Some of t3e maFor dairy produ7ts manufa7turers in t3e
7ountry;
Company 'rands MaFor Produ7ts
Nestle #ndia
!imited
Mil6maid9 Cerela79
!a7toGen9 Milo9
Everyday
S>eetened 7ondensed mil69
malted foods9 mil6 po>der
and "airy >3itener
Mil6 food
!imited
Mil6 food %3ee9 i7e 7ream9 and ot3er
mil6 produ7ts
Smit3 2line
'ee73am
!imited
Horli76s9 Maltova9
1iva
Malted Mil6 food9 G3ee9
butter9 po>dered mil69 mil6
fluid and ot3er mil6 based
baby foods:
#ndodan
#ndustries
!imited
#ndana Condensed mil69 s6immed
mil6 po>der9 >3ole mil6
po>der9 dairy mil6
>3itener9 73illed and
pro7essed mil6
25
%uFarat Co.
operative mil6
Mar6etinG
(ederation
!imited
Amul 'utter9 73eese and ot3er
mil6 produ7ts
H:J: HeinE
!imited
(are59 Complan9
%la7tose9
'onniemi59
1itamil6
#nfant Mil6food9 malted
Mil6food
'ritannia Mil6man (lavored mil69 73eese9 Mil6
Po>der9 %3ee
Cadbury 'ournvita Malted food
26
Man&+act&ring 2rocess
$il9 is pasteuri?ed "y treatin! it to hi!h temperature for a short time. 'he main aim in
treatin! mil9 7ith hi!h temperature is to destroy the disease causin! patho!ens and to
improve 9eepin! (uality.
Separation machine is typically a hi!h po7ered centrifu!e. 'he centrifu!al force ma9es
mil9 fat !lo"ules and emer!es as cream from the separator "o7l. Separation of cream
produces s9im mil9 from 7hich several dairy products are made.
/a"y foodH +resh mil9, 7hich is received from farmersB traders, is chilled and stored.
'hen $SD s9immedB 7et s9immed mil9 and su!ar are added in tur"o mixture to achieve
the desired specifications of in!redients in the mil9. 'his is follo7ed "y addition of
vitamins and minerals. 'his mil9 7hich contains in!redients to specifications is filtered,
cooled, analy?ed and then purified. 'hen it passes throu!h specific pasteuri?ation and is
ta9en to evaporator for pre;condensin!. Pre;condensate is homo!eni?ed, cooled and
stored. Cooled pre;condensate is heated and dried in spray drier AE!ron-. 'hen su!ar is
added. 'he po7der is then passed throu!h chemical analysis to chec9 (uality and is filled
in tins throu!h fillin! machines. 'hese tins are !assed durin! !as mix and then sealed,
pac9ed and dispatched in card"oard cartons.
2:
9&tter0 3hole mil9 is first separated into s9im mil9 and cream "y centrifu!al force in a
separator. 'he cream is then pasteuri?ed either throu!h "atch process or a continuous
process. In "atch process, cream is heated to a minimum of 500 C and held at the
temperature for 30 minutes, 7hile in continuous process it is heated at 610 C and is held
for only 11 seconds. 'he heat treatment destroys "acteria, inactivates en?ymes and !ives
the cream a coo9ed flavour.
fter pasteuri?ation, a temperin! process is applied in 7hich cream is held at 100 C to
allo7 rearran!ement of the fat crystals. 'he cream is then churned to produce "utter.
Continuous churnin! converts cream into "utter in a fe7 minutes 7hile "atch churnin!
ta9es a lon!er time. Composition and colour ad&ustment is also done at the churnin! sta!e
and a salt solution is added to !ive the finished "utter a salty taste. "out 13 litres of mil9
7ith 4> fat is re(uired to produce 1 9! of "utter.
Cheese0 'here are thousands of varieties of cheese in the 7orld. 'he type of
manufacturin! process used in the production of cheese determines its flavour, 7hich
ran!es from extremely mild to very sharp, and its texture, 7hich can "e semi;solid to
almost stone hard. Cheese ma9in! re(uires four main in!redients ; !ood (uality mil9,
rennet or coa!ulatin! acids, culture and salt. Cheese is !enerally made from co78s mil9.
"out 10 litres of mil9 7ith 3> fat is re(uired for ma9in! 1 9! of cheese. =atural Cheese
is made "y coa!ulatin! or curdlin! mil9, stirrin! E heatin! the curd, drainin! off the
7hey and collectin! or pressin! the curd. 'he desired flavour and texture is o"tained "y
varyin! the temperature, humidity and time period of the curin! process. S7eetened
condensed mil9 is usually made from fresh mil9 "y addin! su!ar to the mil9 pre;7armin!
30
and concentratin! the mixture in the hi!h vacuum. 'he syrupy mil9 is then cooled so that
the lactose crystalli?es as very fine crystals and then the product is coa!ulated.
4&t&re 2rospects
IndiaN N s dairy sector is expected to triple its production in the next 10 years in vie7 of
expandin! potential for export to Europe and the 3est. $oreover 7ith 3'% re!ulations
expected to come into force in comin! years all the developed countries 7hich are amon!
"i! exporters today 7ould have to 7ithdra7 the support and su"sidy to their domestic
mil9 products sector. lso India today is the lo7est cost producer of per litre of mil9 in
the 7orld, at 25 cents, compared 7ith the C.S8 43 cents, and GapanN N s K2.6 dollars. lso
to ta9e advanta!e of this lo7est cost of mil9 production and increasin! production in the
country multinational companies are plannin! to expand their activities here. Some of
these mil9 producers have already o"tained (uality standard certificates from the
authorities. 'his 7ill help them in mar9etin! their products in forei!n countries in
processed form.
'he ur"an mar9et for mil9 products is expected to !ro7 at an accelerated pace of around
33> per annum to around #s.03,100 crores "y year 2006. 'his !ro7th is !oin! to come
from the !reater emphasis on the processed foods sector and also "y increase in the
conversion of mil9 into mil9 products. /y 2006, the value of Indian dairy produce is
expected to "e #s 10, 00,000 million. Presently the mar9et is valued at around #s5,
00,000mn.
31
32
COMPANY PROFILE OF AMUL
The $m&l < Meaning
AMU! means " priceless " in #anskrit . A $uality control e%pert in Anand suggested
the brand name "AMU!& from the #anskrit word "Amoolya& ariants' all meaning
"priceless& are found in seeral Indian languages. Amul products hae been used in
millions of home since ()*+ .
Amul butter
Amul milk powder
Amul ghee
Amulspray
Amul cheese
Amul chocolates
Amul Ice, cream
Today Amul is a symbol of many things . of high - $uality products sold at
reasonable prices . . triumph of indigenous technology . /f the marketing say of a
farmers organi0ation . And proen model for dairy deelopment .
MOTTO= >;S;ON= $N? 7@$6;TA 2O6;CA
MOTTO
'he main motto of $C) is to help farmers. +armers 7ere the foundation stone of
$C). 'he system 7or9s only for farmers and for consumers, not for profit. 'he main
of $C) is to provide (uality products to the consumers at minimum cost. 'he !oal of
$C) is to provide maximum profit in terms of money to the farmers.
33
>;S;ON
Fision of $C) is to provide and vanish the pro"lems of farmers Amil9 producers-. 'he
$C) apparition 7as to run the or!ani?ation 7ith co;operative of four main parties, the
farmers, the representatives, the mar9eters, and the consumers.
7@$6;TA 2O6;CA
3e the motivated and devoted 7or9 force of $C) are committed to produce 7hole
some and safe foods of excellent (uality to remain mar9et leaders throu!h deployment of
(uality mana!ement system, state of art technolo!y innovation and eco; friendly
deli!htment of customer and "etterment of mil9 producer
1;STO/A
In early 1:002s a farmer in Daira district, as else7here in India, derived his income
almost entirely from seasonal crops. 'he income from mil9 7as paltry and could not "e
depended upon. 'he main "uyers 7ere mil9 traders of Polson )td.;a privately o7ned
30
company that en&oyed monopoly for supply of mil9 from Daira to the *overnment $il9
Scheme /om"ay. 'he system leads to exploitation of poor and illiterate farmers "y the
private traders.
<o7ever, 7hen the exploitation "ecame intolera"le, the farmers 7ere frustrated. 'hey
collectively appealed to Sardar Falla"h"hai Patel, 7ho 7as a leadin! activist in the
freedom movement. Sardar Patel advised the farmers to sell the mil9 on their o7n "y
esta"lishin! a cooperative union, instated of supplyin! mil9 to private traders. Sardar
Patel sent the farmer to Shri $orar&i Dasai in order to !ain his Co;operation and help.
Shri Dasai held a meetin! at OSamr9ha2 villa!e near nand, on Ganuary 0, 1:04. <e
advised the farmers to from a society for collection of the mil9.'hese villa!e societies
7ould collect the mil9 themselves and also decided prices for that 7hich 7ould "e
profita"le for them. 'he district union 7as also from to collect the mil9 from such villa!e
cooperative societies and to sell them. It 7as also resolved that the !overnment should
as9ed to "uy mil9 from the union.
<o7ever, the !overnment did not seem to help farmer "y any means. It !ave the ne!ative
response "y turnin! do7n the demand for the mil9. 'o respond to this action of
!overnment, farmer of Daira district 7ent on a mil9 stri9e. +or 11 days not a sin!le drop
of mil9 7as sold to the traders. s a result the /om"ay mil9 scheme 7as severely
affected. 'he mil9 commissioner of /om"ay then visited nand to assess the situation.
+inely he decided to fulfill the farmers demand.
31
'hus their cooperative unions 7ere forced at villa!e and district level to collect and sell
mil9 on a cooperative "asis, 7ithout the intervention of !overnment. $r. Fer!hese Durien
had main interest in esta"lishin! union 7ho 7as supported "y Shri 'ri"huvandas Patel
7ho convinced farmers in formin! the cooperative unions at thevilla!e level. O'he Daira
District Co;operative $il9 Producers2 Cnion2 7as thus esta"lished in nand and 7as
re!istered formally under section 10 of /om"ay ct FII of 1:21 on Decem"er 10, 1:04.
Since then farmers are sellin! all the mil9 in nand throu!h cooperative union. In 1:11 it
7as commonly decided the sell mil9 under the "rand name Omul2
t the initial sta!e only 210 liters of mil9 7as collected everyday. /ut 7ith the
!ro7in! a7areness of the "enefits of the co;operative;ness the collection of mil9
increased. 'oday mul collect 10, 00,000 liters of mil9 everyday. s the mil9 is
perisha"le commodity it "ecame difficult to preserve mil9 for a lon!er period. /esides
7hen the mil9 7as to "e collected from the far places there 7as a fear of spoilin! of mil9.
'o over come this pro"lem the union thou!ht to develop the chillin! unit at various
&unctions, 7hich 7ould collect the mil9 and could chill so as preserve it a for a lon!er
period. 'hus, today mul has more than 146 chillin! centers in various villa!es. $il9 is
collected from almost 10:5 societies.
3ith the financial help from C=ICE+, assistance from the !overnment of =e7
Pealand under the Colom"o plan, of #s. 10 million for factory to manufactory mil9
po7der and "utter. Dr. #a&endara Prasad, the president of India laid the foundation on
=ovem"er 10, 1:10. Shri Pandit Ga7aharlal =ehru, the prim minister of India declared it
open at mul dairy on =ovem"er 20, 1:11.
34
plant to manufacture "alanced cattle feed 7as formally commissioned on
%cto"er 31, 1:40 "y Shri )al"ahadur Shastri, the Prime $inister of India. t the re(uest
of the !overnment of India, a ne7 dairy 7ith a capacity to manufacture 00 tons of mil9
po7der and 20 tons of "utter a day 7as completed in 1:43. 'his 7as meant to meet the
re(uirement of India2s defense forces. 'he dairy 7as declared open "y Shri$orar&i Desai
in pril, 1:41. in 1:50, the Daira Cnion setup a plant to manufacture hi!h;protein
7eanin! food, chocolate and malted food at $o!ar, a"out 6 9m south of nand.
In Septem"er, 1:61, the second cattle feed plant at ODan&ari2 7ere started. 'he
succesion of the co;!eneration pro&ect on Septem"er 11, 1:61, mar9ed a milestone on the
ener!y front 7hen t7o !as tur"ine !enerators of 1.1 $3 each "ased on natural !as, 7ere
commissioned. %n %cto"er 31, 1::2, Dr. F. Durien chairman, =ational Dairy
Development /oard, laid the foundation of Daira Cnion2s third dairy 7ith a processin!
capacity of 4.1 la9h liters of mil9 a day. 3or9 on the third dairy and cheese plant at
ODhatra&2 7ith capacity for 20 $etric 'on of cheese per day, "e!an in +e"ruary, 1::0.
lso in 1::0, Daira Cnion put up "read spread plant at O$o!ar2 7ith the assistance from
=ational Dairy Development /oard.
*u&arat Cooperative $il9 $ar9etin! +ederation A*C$$+- is India8s lar!est food
products mar9etin! or!ani?ation. It is a state level apex "ody of mil9 cooperatives in
*u&arat 7hich aims to provide remunerative returns to the farmers and also serve the
interest of consumers "y providin! (uality products 7hich are !ood value for money.
35
Mem*ers0 13 district cooperative mil9 producers8
Cnion
No. o+ 2ro(&cer Mem*ers0 2.4 million
No. o+ >illage Societies0 12,5:2
Total Mil, han(ling capacity0 10.14 million litres per day
Mil, collection 2.36 "illion litres
Mil, collection 4.1 million litres
Mil, ?rying Capacity0 1:0 $ts. per day
Cattle +ee( man&+act&ring Capacity0 2400 $ts per day
$*o&t Machinery
In $C) Q 3 production of po7der, /utter and $il9 are "ein! done
continuously. 'hese productions are done "y latest machineries e(uipped 7ith
computer system and it is handled "y one technicians.
; 'he $il9 pasteuri?er machines "elon! to $l+a le8el company of 2&ne
; Po7der plant machineries "elon! to 6 B T 6arson an( T&r*o company
of India
; /utter production machineries "elon! to S.G.company o+ s'itr3lan( and
other
; /utter manufacturin! production machineries "elon! to Simon 4eres
com.o+ 4rance
36
%#*=IS'I%= S'#CC'C#E %+ $C)
9oar( o+ ?irector
C1$;/M$N
M$N$G;NG C1$;/M$N

GENE/$6 M$N$GE/
$SS;ST$NT GENE/$6 M$N$GE/
M$N$GE/

?E2@TA M$N$GE/
$SS;ST$NT M$N$GE/
SEN;O/ ECEC@T;>E

SEN;O/ O44;CE/
SEN;O/ $SS;T$NT
:O/KE/S

Gra(e ( $to E)
.
3:

00
Sales Turnover
Sales Turnover Rs *million0 S H *in million0
())*,)1 (((*2 311
())1,)+ (34)2 *22
())+,)4 (11*2 *12
())4,)5 (55*2 *11
())5,)) 66()6 *)3
())),22 66(51 *)3
6222,2( 66155 122
622(,26 633+1 122
6226,23 64*14 141
6223,2* 65)*( +(+
622*,21 6)661 +46
6221,2+ 3443+ 512
622+,24
6224,25
6225,2)
622),(2
*6445
1661*
+4((3
52213
(212
(361
(121
(422
6ist o+ 2ro(&cts Mar,ete(0
9rea( sprea(s0
mul /utter
mul )ite )o7 +at /read spread
mul Coo9in! /utter
01
Cheese /ange0
mul Pasteuri?ed Processed Cheddar Cheese
mul Processed Cheese Spread
mul Pi??a A$o??arella- Cheese
mul Shredded Pi??a Cheese
mul Emmental Cheese
mul *ouda Cheese
mul $alai Paneer Acotta!e cheese-
Ctterly Delicious Pi??a
Mithaee /ange (Ethnic s'eets)0
mul Shri9hand A$an!o, Saffron, lmond Pistachio, Cardamom-
mul mra9hand
mul $ithaee *ula"&amuns
mul $ithaee *ula"&amun $ix
mul $ithaee Dulfi $ix
vsar )adoos
@1T Mil, /ange0
mul Sha9ti 3> fat $il9
mul 'aa?a 1.1> fat $il9
mul *old 0.1> fat $il9
mul )ite Slim;n;'rim $il9 0> fat mil9
02
mul Sha9ti 'oned $il9
mul +resh Cream
mul Sno7cap Softy $ix
2&re Ghee0
mul Pure *hee
Sa!ar Pure *hee
mul Co7 *hee
;n+ant Mil, /ange0
mul Infant $il9 +ormula 1 A0;4 months-
mul Infant $il9 +ormula 2 A 4 months a"ove-
mulspray Infant $il9 +ood
Mil, 2o'(ers0
mul +ull Cream $il9 Po7der
mulya Dairy 3hitener
Sa!ar S9immed $il9 Po7der
S'eetene( Con(ense( Mil,0
mul $ithaimate S7eetened Condensed $il9
4resh Mil,0
mul 'aa?a 'oned $il9 3> fat
03
mul *old +ull Cream $il9 4> fat
mul Sha9ti Standardi?ed $il9 0.1> fat
mul Slim E 'rim Dou"le 'oned $il9 1.1> fat
mul Saathi S9immed $il9 0> fat
mul Co7 $il9
C&r( 2ro(&cts0
Ro!i S7eetened +lavoured Dahi ADessert-
mul $asti Dahi Afresh curd-
mul $asti Spiced /utter $il9
mul )assee
00
$m&l ;ce creams0
/oyal Treat /ange A/utterscotch, #a&"ho!, $alai Dulfi-
N&t5o5Mania /ange ADa&u Dra9sh, Desar Pista #oyale, +ruit /onan?a, #oasted
lmond-
Nat&re)s Treat Alphanso $an!o, +resh )itchi, Shahi n&ir, +resh Stra7"erry,
/lac9 Currant, Santra $antra, +resh Pineapple-
S&n(ae /ange A$an!o, /lac9 Currant, Sundae $a!ic, Dou"le Sundae-
$ssorte( Treat AChoco"ar, Dollies, +rosti9, Ice Candies, 'ricone, Chococrunch,
$e!a "ite, Cassatta-
@tterly ?elicio&s AFanilla, Stra7"erry, Chocolate, Choc chips, Ca9e $a!ic-
Chocolate B Con+ectionery0
mul $il9 Chocolate
mul +ruit E =ut Chocolate
9ro'n 9e8erage0
=utramul $alted $il9 +ood
Mil, ?rin,0
mul Dool +lavoured $il9 A$an!o, Stra7"erry, Saffron, Cardamom, #ose,
Chocolate-
mul Dool Cafe
01
1ealth 9e8erage0
mul Sha9ti 3hite $il9 +ood
Amul 'utter %irl
Edited from an article by Mini Verma published in The Asian
Age on March 3, 1996
T3e moppet >3o put Amul on #ndia4s brea6fast table
10 years after it 7as first launched, mul8s sale fi!ures have &umped from 1000 tonnes a
year in 1:44 to over 21,000 tonnes a year in 2006. =o other "rand comes even close to it.
ll "ecause a thum";si?ed !irl clim"ed on to the hoardin!s and put a spell on the masses.
9om*ay0 Summer of 1:45. Charni #oad flat. $rs. Sheela $ane, a 26;year;old
house7ife is out in the "alcony dryin! clothes. +rom her second floor flat she can see her
nei!h"ours on the road. 'here are other people too. 'he cro7d seems to "e !ro7in!
lar!er "y the minute. Cna"le to cur" her curiosity Sheela $ane hurries do7n to see 7hat
all the commotion is a"out. She expects the 7orst "ut can see no si!ns of an accident. It is
her four;year;old 7ho dra7s her attention to the hoardin! that has come up overni!ht. IIt
7as the first mul hoardin! that 7as put up in $um"ai,I recalls Sheela $ane. IPeople
loved it. I remem"er it 7as our favourite topic of discussion for the next one 7ee9S
Every7here 7e 7ent someho7 or the other the campai!n al7ays seemed to crop up in
our conversation.I
04
Call her the +riday to +riday star. #ound eyed, chu""y chee9ed, 7in9in! at you,
from strate!ically placed hoardin!s at many traffic li!hts. She is the mul moppet
everyone loves to love Aincludin! pric9ly votaries of the Shiv Sena and /GP-. <o7 often
have 7e stopped, loo9ed, chuc9led at the mul hoardin! that casts her sometime as the
coy, shy $adhuri, a "old sensuous Crmila or simply as herself, dressed in her little pol9a
dotted dress and a red and 7hite "o7, holdin! out her favourite pac9et of "utter.
+or 30 odd years the Ctterly /utterly !irl has mana!ed to 9eep her fan follo7in!
intact. So much so that the ads are no7 ready to enter the Guinness Book of World
Records for "ein! the lon!est runnin! campai!n ever. 'he ultimate compliment to the
"utter came 7hen a /ritish company launched "utter and called it Ctterly /utterly, last
year.
It all "e!an in 1:44 7hen Sylvester daCunha, then the mana!in! director of the
advertisin! a!ency, SP, clinched the account for mul "utter. 'he "utter, 7hich had
"een launched in 1:01, had a staid, "orin! ima!e, primarily "ecause the earlier
advertisin! a!ency 7hich 7as in char!e of the account preferred to stic9 to routine,
corporate ads.
05
/ne of the first Amul hoardings
In India, food 7as somethin! one couldn8t afford to fool around 7ith. It had "een ta9en
too seriously, for too lon!. Sylvester daCunha decided it 7as time for a chan!e of ima!e.
'he year Sylvester daCunha too9 over the account, the country sa7 the "irth of a
campai!n 7hose charm has endured fic9le pu"lic opinion, !immic9ry and all else.
'he mul !irl 7ho lends herself so completely to mul "utter, created as a rival to the
Polson "utter !irl. 'his one 7as sexy, villa!e "elle, clothed in a tantali?in! choli all "ut
coverin! her upper re!ions. IEustace +ernande? Athe art director- and I decided that 7e
needed a !irl 7ho 7ould 7orm her 7ay into a house7ife8s heart. nd 7ho "etter than a
little !irlTI says Sylvester daCunha. nd so it came a"out that the famous mul $oppet
7as "orn.
'hat %cto"er, lamp 9ios9s and the "us sites of the city 7ere splashed 7ith the
moppet on a horse. 'he "aseline simply said, 'horou!h "read, Ctterly /utterly Delicious
mul,. It 7as a matter of &ust a fe7 hours "efore the daCunha office 7as rin!in! 7ith
calls. =ot &ust adults, even children 7ere callin! up to say ho7 much they had li9ed the
ads. I'he response 7as phenomenal,I recalls Sylvester daCunha. I3e 9ne7 our
campai!n 7as !oin! to "e successful.I
06
+or the first one year the ads made statements of some 9ind or the other "ut they had not
yet ac(uired the topical tone. In 1:45, Sylvester decided that !ivin! the ads a solid
concept 7ould !ive them extra milea!e, more dum, so to say. It 7as a decision that 7ould
stand the daCunhas in !ood stead in the years to come.
In 1:4:, 7hen the city first sa7 the "e!innin! of the <are #ama <are Drishna
movement, Sylvester daCunha, $ohammad Dhan and Csha /andar9ar, then the creative
team 7or9in! on the mul account came up 7ith a clincher ;; 8<urry mul, <urry
<urry8. /om"ay reacted to the ad 7ith a fervour that 7as almost as devout as the Is9on
fever.
'hat 7as the first of the many topical ads that 7ere in the offin!. +rom then on mul
"e!an playin! the role of a social o"server. %ver the years the campai!n ac(uired that all
important mul touch.
India loo9ed for7ard to mul8s evocative humour. If the =axalite movement 7as
the happenin! thin! in Calcutta, mul 7ould "e up there on the hoardin!s sayin!, I/read
7ithout mul /utter, cholbe na cholbe na A7on8t do, 7on8t do-. If there 7as an Indian
irlines stri9e mul 7ould "e there a!ain sayin!, Indian irlines 3on8t +ly 3ithout
mul.
0:
'here are stories a"out the "utter that people li9e to relate over cups of tea. I+or
over 10 years I have "een collectin! mul ads. I especially li9e the ads on the "ac9s of
the "utter pac9ets, Isays $rs. Sumona Farma. 3hat does she do 7ith these adsT II have
made an al"um of them to amuse my !randchildren,I she lau!hs. I'hey are almost part of
our culture, aren8t theyT $y !randchildren are already "e!innin! to realise that these ads
are not &ust a source of amusement. 'hey ma9e them a7are of 7hat is happenin! around
them.I
Despite some of the ne!ative reactions that the ads have !ot, DaCunhas have
made it a policy not to play it safe. 'here are numerous ads that are ris(uL in tone.
I3e had the option of "ein! s7eet and playin! it safe, or ma9in! an impact.
fine "alance had to "e struc9. 3e have a campai!n that is stron! enou!h to ma9e a
statement. I didn8t 7ant the hoardin!s to "e pleasant or tame. 'hey have to say
somethin!,I says #ahul daCunha.
I3e ran a couple of ads that created (uite a furore,I says Sylvester daCunha. I'he Indian
irlines one really an!ered the authorities. 'hey said if they didn8t ta9e do7n the ads they
7ould stop supplyin! mul "utter on the plane. So ultimately 7e discontinued the ad,I he
says lau!hin!. 'hen there 7as the time 7hen the mul !irl 7as sho7n 7earin! the
*andhi cap. 'he hi!h command came do7n heavy on that one. 'he *andhi cap 7as a
sym"ol of independence@ they couldn8t have anyone not ta9in! that seriously. So despite
their reluctance the hoardin!s 7ere 7iped clean. I'hen there 7as an ad durin! the
*anpati festival 7hich said, *anpati /appa more *hya A*anpati /appa ta9e more-. 'he
Shiv Sena people said that if 7e didn8t do somethin! a"out removin! the ad they 7ould
come and destroy our office. It is surprisin! ho7 vi!ilant the political forces are in this
10
country. Even 7hen the Enron ads AEnr on or off- 7ere runnin!, #e"ecca $ar9 7rote to
us sayin! ho7 much she li9ed them.I
Amul7s point of iew on the M8 coffee controersy
'here 7ere other instances too. <eroine ddiction, mul8s little &o9e on <ussain had the
artist rin!in! the daCunhas up to re(uest them for a "lo7 up of the ad. I<e said that he
had seen the hoardin! 7hile passin! throu!h a small district in CP. a<e sid says #ahul
daCunha in amused tones. Indians do have a sense of humour, afterall.he had as9ed his
assistant to ta9e a photo!raph of himself 7ith the ad "ecause he had found it so funny,I
+rom the Sixties to the =ineties, the mul ads have come a lon! 7ay. 3hile most people
a!ree that the mul ads 7ere at their pea9 in the Ei!hties they still maintain that the
mul ads continue to tease lau!hter out of them.
3here does mul8s ma!ic actually lieT $any "elieve that the charm lies in the catchy
lines. 'hat 7e lau!h "ecause the humour is 7hat any"ody 7ould en&oy. 'hey don8t
pander to your nationality or certain sentiments. It is pure and simple, everyday fun.
11
2/O?@CT;ON BO2E/$T;ON ?E2$/TMENT
;NT/O?@CT;ON
Production mana!ement is refers to the process of correction of past mista9es catchin! up
7ith the ne7 techni(ues, ta9in! up steps 7ith developin! techni(ues and ta9in! measures
for the production of !oods at competitive cost.U
'he "asic philosophy of production mana!ement is to launch a frontal attac9 on
direct costs and effective use the availa"ility manpo7er 7eavin! ne7 techni(ues in to the
7hole to 9eep the production unit efficient and developin! production mana!ement is the
process of plannin!, or!ani?in!, directin! and controllin!.
'he mul is started 7ith only 210 liters of mil9 per day. /ut no7 mul collect
avera!e : la9hs of liters mil9 per day. t the initial sta!e, mul has not any pro"lem
re!ardin! mil9, "ut in the 7inter season there 7as excess supply of mil9. So, mul has to
sell out that excess mil9 at the lo7 price or mul has to face loss. 'o removin! these
pro"lems mul ta9e decision to set up a plant to process the surplus mil9 "utter and mil9
po7der.
'oday the mul has three plants Dno7n as mul 1, 2 E 3 all three plant 7or9 20
hours a day continuously. 'he all manufacturin! process is done automatically. 'he
production is done in the special machines. 'hese machines and the technolo!y are
import;id from the '#+' PED Company. 'here is also facility of chillin! of mil9, so
that the mil9 remains usa"le.
'oday three plant of $C) perform different function.
$C) Q 1 presently it is use as a !o do7n for storin! ra7 materials.
12
1. $C) Q 2 'oday in this unit, the production process of *hee and pac9in!s are
runnin! .
2. $C) Q 3 'his unit is producin! $C) "utter, $C) spray po7der, and
flavored mil9.
0rgani'ation Structure
Managing ,irector
$eneral Manager
,airy !lant Asstt. $. M.
Manager Manager 0fficer A.M.
3!roduction4 31ng.4 31ng.4
,y. Manager +orkers 0fficers
31ng.4
A.M. echnicians
31ng.4
1ng. +orkers
0fficers
echnicians
1ng. +orker
13
10
Mil, Collection Cycle
'he success of each and every dairy industry is the !ettin! the mil9 from the
farmers and ma9in! that mil9 in use as soon as possi"le "efore that mil9 !et spoiled
"ecause the mil9 is the perisha"le product. +or the smooth runnin! the "usiness of dairy
industry the industry must concentrate on the mil9 collection cycle. mul dairy is very
conscious a"out the mil9 collection cycle "ecause the "ase of the success of the mul is
mil9 collection cycle.
2ro(&ction capacity o+ $m&l
/utter 10 to 40 'ones
Po7der plant 50 tones
Po7der plant 40 tones
+lavour mil9 00000 "ottles
$*o&t Machinery
In $C) Q 3 production of po7der, /utter and $il9 are "ein! done
continuously. 'hese productions are done "y latest machineries e(uipped 7ith
computer system and it is handled "y one technicians.
; 'he $il9 pasteuri?er machines "elon! to $l+a le8el company of 2&ne
; Po7der plant machineries "elon! to 6 B T 6arson an( T&r*o company
of India
; /utter production machineries "elon! to S.G.company o+ s'itr3lan( and
other
; /utter manufacturin! production machineries "elon! to Simon 4eres
com.o+ 4rance
11
$m&l < ! /a' /eception ?oc,
#eception doc9 is the very first department of any dairy 7here mil9 is unloaded and
simultaneously tested . mul;2 has a 7ell desi!ned #$#D , situated in the 7est 7in! of
dairy . #a7 mil9 at mul; 2 is received mainly throu!h cans . 'here are 2 reception lines
for unloadin! mil9 cans in mul Q 2 . "out 40 > of reception is of "uffalo mil9 and
remainin! 00> is co7 mil9 .
4lo' chart o+ $m&l5! process
Unloading of cans

/hain conveyer

.emoval of cans lid
!hysically inception of milk
ransfer of milk to dump tank 3 56*57cans8 min4
9ilter
+eighing

.aw milk collection tank : Amul *7
!asteuri'ation 3 At ;< / for 5= seconds4
Standardi'ation
!rocessed milk silo
14
Sent to different production section milk pouch packing
section
15
9&tter section
'he utterly /utterly Delicious "utter of the mul is one of the most popular product of
mul dairy alon! 7ith the famous "utter !irl . 'he "utter section is located in mul ;3
7hich manufactures 'a"le /utter , 7hite "utter and renduced salt "utter . 'he section is
completely computer controlled and is e(uipped 7ith most modern imported
e(uipments ./utter section very important as it handles fat, 7hich is the costliest
constituent . 'he cream o"tained from process section is fully utili?ed for "utter ma9in! .
mul 7hite and ta"le /utter is exported to CS and various $iddle Eastern countries .
O2E/$T;ON
'he cream for manufacturin! /utter is receivin! from mul;3 process section 7hile
standardi?ation of mil9 . In mul ;3 the mil9 fat 7ill "e separated at a"ove 40 Celsius ,
the centrifu!al separators inline 7ith $il9 pasteuri?er separate this as cream . 'he cream
thus separated is pasteuri?ed and then pumped to the cream "uffer tan9s and to cream silo
.fter a!ein! at 6 Celsius for 20 hrs , cream is pumped to cream chillin! unit in the
"utter section . there the temperature of cream is ad&usted to the re(uired churnin!
temperature of continuous /utter $a9in! $achine.
16
4lo' chart o+ 9&tter processing
.aw cream
!asteuri'er 3>< to >= / 4
/ooling 3;*> /4
Ageing3;*> /8 6?hours4
/ream (alance tank
!@1 3 for temperature ad"ustment at A*; /4

/hurning 3speed =<<* 56<<rpm4
(utter $rains &utter Milk
+ashing with &utter milk
+orking 3 7<* B<rpm 4
6
nd
washing with &utter milk
silo
working
white &utter addition salt 3C6D4 %color

5= kg packing
(lending
3 6=*7< rpm
%vacuum 4
1:

export
ghee &utter section
packaging lines
>.5g &lister pack 5<<g refill pack 5<<g refill pack ?<<tin
3Army4
Air pack 36gm4
2ac,ing materials &se( 0
Delocali?e mar9et
Dou"le laminated is used for export
'in Q used for 000! rmy pac9
Card "oard "ox; used for tertiary pac9in!
3ply for :.1 ! 7ei!ht pac9a!e
1ply for normal E export
2o'(er plant
+;31 plant is situated in mul ;2 near to the rail7ay sidin! . 'he plant is a sin!le sta!e
dryin! plant havin! a capacity of 31 'DP. 'he plant is not in re!ular use and mainly used
for the manufacturin! of cheese 7hey po7der .
+;31 C%=DE=SI=* P)=' DE'I)S
$a9e H SSP ,+arida"ad
'ype H +allin! film vertical tu"e type
=o of Pre heater H 1
=o of calendria H 5
40
=o of vapor separators H 1
O2E/$T;ON ?ET$;6
2/O?@CT @SE $N? C1$/$CTE/;ST;CS
M;6K
%ne of the most versatile food consumed "y us. ll children start their 7ith mother2s
mil9 and continue to use it in one other throu!hout their life. It is the secretion from the
mammary !lands of a lactatin! mammal. 'he 7hite fluid, 9no7 as mil9, is made up of
mil9 fat and other mil9 solids.
$M@6 ;CE C/E$M
mul ice cream is made up from fresh mil9.
Ice cream are rich in protein, calcium, dairy cream and vitamins.
Ice cream are a complete food, easy to di!est and full of ener!y.
M$N@4$CT@/;NG 2/OCESS 4O/ ;CE C/E$M
mul ice cream is made up from mil9, mil9 products, su!ar, sta"ili?ers and emulsifiers.
Composition
$il9 +at 13.1> to 10.1>
'otal Solids 00> to 01>
Su!ar 11> pprox.
cidity 0.15> to 0.1:>
Protein 3.:> to 0.1>
41
4oo( Energy >al&e
Calories per 100 ml ;1:4.5 9cal
Flavors
2A)ILA , Straw&erry, !ineapple, 0range, .ose, Mango, /hocolate, @oney*,ew*Melon, utee
9ruity, Litchi, -esar !ista, -a"u ,raksh, (utterscotch, /hocE chips, .a"&hog and /ashew (reak.
Packaging
=< ml cup, 5<< ml cup, =<< ml pack,5 litre pack, ? litre pack, /hoco&ar, Ice candies, /ones and
-ulfies .
M$N@4$CT@/;NG 2/OCESS 4O/ M;6K
M;6K 2/OC@/EMENT
'otal mil9 procurement "y our $em"er Cnions durin! the year 2004;05 avera!ed 45.21
la9h 9ilo!rams A4.5 million 9!- per day, representin! a !ro7th of 0.1 per cent over 40.36
la9h 9ilo!rams A4.0 million 9!- per day achieved durin! 2001;04. 'he hi!hest
procurement as usual 7as recorded durin! Ganuary 2005 at 60.0: la9h 9ilo!rams A6.0
million 9!- per day. 'his increase in mil9 procurement is very impressive, 9eepin! in
mind the massive loss suffered "y our farmers due to
floods durin! the monsoon season, specially in Surat district.
42
M;6K 2/OCESS;NG
1 1omogeni3ation0 ; $il9 must then "e homo!eni?ed. 3ithout homo!eni?ation, the
mil9 fat 7ould separate from the mil9 and rise to the top. $il9 fat is 7hat !ives mil9 its
rich and creamy taste. In this process $il9 is transferred to a piece of e(uipment called a
homo!eni?er. In this machine the mil9 fat is forced, under hi!h pressure throu!h tiny
holes.
6 . 2aste&ri3ationH; Pasteuri?ation is the process that purifies mil9 and helps it stay
fresher, lon!er. $il9 is pasteuri?ed "y heatin! it to 52VC for 14 seconds then (uic9ly
coolin! it to 0VC. Pasteuri?ation is named after )ouis Pasteur, the famous scientist.
43
7 .Adding VitaminsF * /efore homo!eni?ation, vitamin D is added to all mil9.
Fitamin D com"ined 7ith the calcium that naturally exists in mil9 help !ives us stron!
"ones and teeth. Dairies also add Fitamin to s9im, 1> and 2> mil9. Fitamin is !ood
for our eyesi!ht.
?.Packaging MilkG * $il9 is no7 ready to "e pac9a!ed. $il9 is pumped throu!h
automatic fillin! machines direct into "a!s, cartons and &u!s. 'he machines are carefully
saniti?ed and pac9a!es are filled and sealed 7ithout human hands. Durin! the entire time
that mil9 is at the dairy, it is 9ept at 1V ; 2VC. 'his prevents the development of extra
"acteria and 9eeps the mil9 it2s freshest.
40
=.StoringG* $il9 is delivered to !rocery stores, convenience stores and restaurants in
refri!erated truc9s that 9eep mil9 cooled to 1V ; 0VC. 'he stores ta9e their mil9 and
immediately place it in their refri!erated stora!e area. /ecause fresh mil9 is so important
to our diets, dairies, and our health.
41
S&pply chain management o+ $M@6
S@226;E/S

GCMM4DS S@226A C1$;N
Processing :
fter the union received the mil9, it 7as tested and if it 7as found to "e of !ood (uality,
it 7as sent for processin!. If the mil9 7as found to have hi!h acidity, it 7as used to ma9e
"uttermil9. #a7 mil9 7as sent throu!h a filter and clarifier and 7as pasteuri?ed. +or
pasteuri?ation, mil9 7as treated at hi!h temperatures for a specified.
'his helped in destroyin! the patho!ens and in maintainin! the (uality. fter
pasteuri?ation, the mil9 7as sent throu!h a separation machine. <ere the cream 7as
separated and s9immed mil9 7as o"tained. ccordin! to the demand, the unions pac9ed
the mil9 after it 7as pasteuri?ed and sent for distri"ution. 'he cream 7as mar9eted as
mul +resh cream .
44
Distribution
*C$$+ coordinated 7ith various unions to !et a re!ular supply of mil9 and dairy
products. 'he processed mil9 and dairy products 7ere procured from district dairy unions
and distri"uted throu!h third party distri"utors. 'o ensure (uality and timely deliveries,
*C$$+ and the district unions had several mechanisms in place. 'he FCS constantly
monitored the deliveries of the mil9 collected and ensured that the mil9 7as pic9ed up on
time. 'he unions monitored the supplies of mil9 and the distri"ution of finished products.
:$/E 1O@S;NG: mul products are availa"le in over 100,000 retail outlets across
India throu!h its net7or9 of over 3,100 distri"utors. 'here are 05 depots 7ith dry and
cold 7arehouses to "uffer inventory of the entire ran!e of products. *C$$+ transacts on
an advance demand draft "asis from its 7holesale dealers instead of the che(ue system
adopted "y other ma&or +$C* companies. 'his practice is consistent 7ith *C$$+8s
philosophy of maintainin! cash transactions throu!hout the supply chain and it also
minimi?es dumpin!. 3holesale dealers carry inventory that is &ust ade(uate to ta9e care
of the transit time from the "ranch 7arehouse to their premises. 'his &ust;in;time
inventory strate!y improves dealers8 return on investment A#%I-. ll *C$$+ "ranches
en!a!e in route schedulin! and have dedicated vehicle operation .
45
M;6K 2/OCESS;NG 96OCK
46
S@226A C1$;N EC26$N$T;ON :;T1 ?;$G/$ME
?E4;N;T;ON O4 >$6@E C1$;N
s per the a"ove dia!ram there are the first components is ra7 materialH
In our company the ra7 materials are mil9, po7der for ice creams manufacturin!,
different types of flavors for ice creams, pac9a!in! material, su!ar etc. re(uired "y the
company for manufacturin!. In this step *C$$+ play a very important role it procures
mil9 from villa!es and for this it develops three types of system and that is societies at
vill!e level, district level and state level.

4:
Second component is suppliers are the farmers and other ra7 material for manufacturin!
the ice creams are provided "y $<= P#%'EI=S )'D., IDE) ICE C#E$S and
/<#' ESSE=CE.
'his component is manufacturin! process 7hich is descri"e a"ove. In mil9 process there
are mainly five steps are re(uired and i.e. homo!eni?ation, pasteuri?ation, addin!
vitamins, pac9a!in!, storin!. In this process there are also re(uirement of 7arehouse for
storin! the product 7hich already made and also for the ra7 material.
'he next step is the distri"ution channel in 7hich *C$$+ plays very important role in
that. It handle all the mar9etin! for $C) products. *C$$+8s products 7ere mar9eted
throu!h 10 sales offices located across India to 0,000 stoc9ists. 'hese stoc9ists supplied
the products to more than 100,000 retail outlets.
50
'he next step is the customers in this cate!ory there are restaurants includes. lso the
retail shops and 7hole sellers are included.
'he last step is the consumer in 7hich the actual hose hold are included in this cate!ory.
O&r 2ro(&ct
$M@6 means "priceless" in Sans9rit. 'he "rand name Imul,I from the Sans9rit
Imoolya,I 7as su!!ested "y a (uality control expert in nand. Fariants, all meanin!
IpricelessI, are found in several Indian lan!ua!es. mul products have "een in use in
millions of homes since 1:04. mul /utter, mul $il9 Po7der, mul *hee, mulspray,
mul Cheese, mul Chocolates, mul Shri9hand, mul Ice cream, =utramul, mul
$il9 and mulya have made mul a leadin! food "rand in India. A'urnoverH #s. 02.56
"illion in 2005;06-. 'oday mul is a sym"ol of many thin!s. %f hi!h;(uality products
sold at reasona"le prices. %f the !enesis of a vast co;operative net7or9. %f the triumph of
indi!enous technolo!y. %f the mar9etin! savvy of a farmers8 or!ani?ation. nd of a
proven model for dairy development.
51
Chec, o&t this 8ast an( e8er5gro'ing range o+ )taste+&l) $m&l (electa*leE
F2lease clic, here to (o'nloa( the latest 2/O?@CT ?ET$;6E/F.
9rea( Sprea(s
Amul 'utter
Utterly Butterly
9elicious
Amul !ite
!ow fat' low
:holesterol Bread
#pread
"eli7ious Table
MarGarine
The 9elicious way
to eat healthy
Mil6 "rin6s
Amul 2ool Amul 2ool Cafe
2ool 2o6o
A delight to :hocolate
!oers. 9elicious
:hocolate taste
Nutramul EnerGy
"rin6
A drink for ;ids ,
proides energy to
52
suit the needs of
growing ;ids
Amul 2ool
C3o7olate Mil6
Amul 2ool
(lavoured 'ottled
Mil6
Amul 2ool
(lavoured Tetra
Pa76
Amul Masti Spi7ed
'uttermil6
Amul introduces the
Best Thirst <uenching
9rink
Amul 2ool T3andai
Po>der Mil6
53
Amul Spray
#nfant Mil6 (ood
#till' Mother7s Milk
is Best for your
baby
Amul #nstant
(ull Cream Mil6
Po>der
A dairy in your
home
SaGar S6immed
Mil6 Po>der
=hich is especially
useful for diet
preparations or for
use by people on
low calorie and
high protein diet.
SaGar Tea Coffee
)3itener
Amulya "airy
)3itener
The 8ichest'
Purest 9airy
=hitener

(res3 Mil6
50
Amul (res3 Mil6
This is the most
hygienic milk
aailable in the
market. Pasteurised
in state,of,the,art
processing plants and
pouch,packed for
conenience.
Amul %old Mil6
Amul TaaEa "ouble
Toned Mil6
Amul !ite Slim and
Trim Mil6
Amul (res3 Cream Amul S3a6ti Toned
Mil6
Amul Cal7iI
51
C3eese
Amul Pasteurised
Pro7essed C3eese
(22> ?egetarian
:heese made from
microbial rennet
Amul C3eese
Spreads
Tasty :heese #preads
in 3 great flaours.
Amul Emmental
C3eese
The @reat #wiss
:heese from Amul'
has a sweet,dry
flaour and ha0elnut
aroma
Amul PiEEa
MoEEarella C3eese
Pi00a cheese...makes
great tasting pi00asA
%ouda C3eese

54
(or Coo6inG
Amul C SaGar Pure
%3ee
Made from fresh
cream. Bas typical
rich aroma and
granular te%ture. An
ethnic product made
by dairies with
decades of
e%perience.
Coo6inG 'utter
Amul Malai Paneer
8eady to cook paneer
to make your
faourite recipesA
tterly "eli7ious
PiEEa
Mit3ai Mate
#weetened
:ondensed Milk -
.ree flowing and
smooth te%ture.
Masti "a3i
55
=hite to creamy color
with a pleasant taste.
56
"esserts
Amul #7e Creams
Premium Ice :ream
made in arious
arieties and flaours
with dry fruits and
nuts.
Amul S3ri63and,,,,
A delicious treats'
anytime.
Amul Mit3aee
%ulab Jamuns
Pure ;hoya @ulab
Camums...best
sered piping hot.
Amul C3o7olates
The perfect gift for
someone you loe.
Amul !assee Amul 'asundi
Healt3 "rin6
5:
Nutramul
Malted Milk .ood
made from malt
e%tract has the
highest protein
content among all
the brown
beerage powders
sold in India.
Amul S3a6ti
Healt3 (ood
"rin6
Aailable in ;esar,
Almond and
:hocolate
flaours.
60
2/O4;6E O4 2$/$G ?$;/A
Para! Dairy Q Delhi 7as set up in 1:50 under the %peration +lood Pro!ramme. It is no7
a 7holly o7ned company of the =ational Dairy Development /oard A=DD/-.
Para! Dairy mar9ets E sells dairy products under the Para! Dairy "rand Ali9e )i(uid
$il9, Dahi, Ice creams, Cheese and /utter-, Dhara ran!e of edi"le oils and the Safal
ran!e of fresh fruits E ve!eta"les, fro?en ve!eta"les and fruit &uices at a national level
throu!h its sales and distri"ution net7or9s for mar9etin! food items.
Para! Dairy sources si!nificant part of its re(uirement of li(uid mil9 from dairy
cooperatives. Similarly, Para! Dairy sources fruits and ve!eta"les from farmers B !ro7ers
associations. Para! Dairy also contri"utes to the cause of oilseeds !ro7er cooperatives
that manufactureB pac9 the Dhara ran!e of edi"le oils "y underta9in! to nationally mar9et
all Dhara products. It is Para! Dairy2s constant endeavor to
Aa- Ensure that mil9 producers and farmers re!ularly and continually receive mar9et
prices "y offerin! (uality mil9, mil9 products and other food products to consumers at
competitive prices and@
A"- Cphold institutional structures that empo7er mil9 producers and farmers throu!h
processes that are e(uita"le.
61
t Para! Dairy, processin! of mil9 is controlled "y process automation 7here"y
state;of;the;art microprocessor technolo!y is adopted to inte!rate and completely
automate all functions of the mil9 processin! areas to ensure hi!h product (ualityB
relia"ility and safety. Para! Dairy is an ISB IS%;:002, IS;11000 <CCP and IS;10001
E$S certified or!ani?ation. $oreover, its
.uality ssurance )a"oratory is certified "y =ational ccreditation /oard for 'estin!
and Cali"ration )a"oratory A=/)-;Department of Science and 'echnolo!y,
*overnment of India.
Para! Dairy mar9ets approximately 2.6 million liters of mil9 daily in the mar9ets
of Delhi, $um"ai, Saurashtra and <ydera"ad. Para! Dairy $il9 has a mar9et share of
44> in the "randed sector in Delhi 7here it sells 2.3 million liters of mil9 daily and
underta9es its mar9etin! operations throu!h around 10,000 retail outlets and 601
exclusive outlets of Para! Dairy.
'he company2s derives si!nificant competitive advanta!e from its uni(ue
distri"ution net7or9 of "ul9 vendin! "ooths, retail outlets and mo"ile units. Para! Dairy
ice creams launched in the year 1::1 have sho7n continuous !ro7th over the years and
today "oasts of approximately 42> mar9et share in Delhi and =C#. Para! Dairy also
manufactures and mar9ets a 7ide ran!e of dairy products that include /utter, Dahi, *hee,
Cheese, C<' $il9, )assi E +lavored $il9 and most of these products are availa"le
across the country.
'he company mar9ets an array of fresh and fro?en fruit and ve!eta"le products
under the "rand name S+) throu!h a chain of 000W o7n +ruit and Fe!eta"le shops
and more than 20,000 retail outlets in various parts of the country. +resh produce from
62
the producers is handled at the Company2s modern distri"ution facility in Delhi 7ith an
annual capacity of 200,000 $'. n I.+ facility 7ith capacity of around 51 $' per day is
also operational in Delhi. state;of;the;art fruit processin! plant of fruit handlin!
capacity of 120 $' per day, a 100 percent E%C, setup in 1::4 at $um"ai supplies
(uality products in the international mar9et.
63
3ith increasin! demand another state;of;the;art fruit processin! plant has "een
set up at /an!alore 7ith fruit handlin! capacity of around 210 $' per day. Para! Dairy
has also "een mar9etin! the Dhara ran!e of edi"le oils for the last fe7 years. 'oday it is a
leadin! "rand of edi"le oils and is availa"le across the country in over 2, 00,000 outlets.
'he "rand is currently availa"le in the follo7in! variantsH #efined Fe!eta"le %il, #efined
Soy"ean %il, #efined Sunflo7er %il, #efined #ice /ran %il, Dachi *hani $ustard %il
and +iltered *roundnut %il. Para! Dairy has also launched extra vir!in %live %il under
the Daroliva "rand.
Para! Dairy has over the last 3 decades, harnessed the po7er of farmer
cooperatives to deliver a ran!e of delicious products and "rin! a smile on your face. In
times to come, Para! Dairy shall strive to remain one of India2s finest food companies.
6ist o+ 2ro(&cts Mar,ete(0
9rea( sprea(s0
Para! /utter
Cheese /ange0
Para! Processed Cheese
Para! Pi??a Cheese
Para! Paneer
@1T Mil, /ange0
Para! $il9
60
Para! +resh Cream
2&re Ghee0
Para! Pure *hee
;n+ant Mil, /ange0
Para! spray $il9 +ood
Mil, 2o'(ers0
Para!ya Dairy 3hitener
Sa!ar S9immed $il9 Po7der
4resh Mil,0
Para! 'aa?a 'oned $il9
Para! Co7 $il9
61
M$/KET S1$/E O4 $M@6 S2/$A ;N G $GE ($gra)
TERR#TOR#ES AM! SPRA$ PARA% "A#R$
!ECTO%#N
?ijay Dagar (.*2 3.+(
#anjay Place 6.52 (2.3(
;handari 2.62 *.22
#ikandra 6.*2 1.(6
8ajpur :hungi (.*2 *.12
#adar Ba0ar (.22 (.*2
#hashtripuram 3.42 6.5(
Bodla *.22 (.22
Ceeni Mandi 3.22 5.+(
8awatpara (.62 6.*2
Belanganj 2.(2 2.*2
Tajganj (1.16 (3.16
!ohamandi 2.(2 (.62
8ajamandi 2.12 3.52
TOTAL
34.36 +6.+5
SA!ES O( 'TTER '$ TERR#TOR$ *2%0 EAgraF
TERR#TOR#ES AM! 'TTER PARA% "A#R$
'TTER
1iFay NaGar (1) 2
#anjay Place )6 32
;handari 43* 46
64
#ikandra 311 2
8ajpur :hungi ()2.1 2
#adar Ba0ar +45 2
#hashtripuram 122 *6
Bodla *42 6
Ceeni Mandi 312 (22
8awatpara *2.1 2
Belanganj (* +2
Tajganj 61) 2
!ohamandi 5 2
TOTA! A=B, A,@
MAR2ET SHARE O( AM! 'TTER #N DA%E
TERR#TOR#ES AM! 'TTER PARA% "A#R$
'TTER
1iFay NaGar 3.53 2
#anjay Place 6.6( .46
;handari (4.4+ (.52
#ikandra 5.*) 2
8ajpur :hungi *.1+ 2
#adar Ba0ar (+.36 2
#hashtripuram (6.23 (.2(
Bodla ((.3( 2.21
Ceeni Mandi 5.3+ 6.*(
8awatpara 2.)+ 2
Belanganj 2.33 (.*3
Tajganj +.63 2
!ohamandi 2.() 2
TOTA! -+:B= <:?+
65
SA!ES O( "A#R$ )H#TE '$ TERR#TOR$ *2%0
TG88IT/8IG#
AM!$A ParaG "airy OTHERS
?ijay Dagar 64 2 )
#anjay Place + 1 +
;handari 1( 6 61
#ikandra *+ 5 65
8ajpur :hungi 2 2 (+
#adar Ba0ar 6* 6 (4
#hashtripuram 1 3 *
Bodla 34 3 *
Ceeni Mandi 65 2 2
8awatpara *3 2 2
Belanganj 3(2 3* 2
Tajganj 6 2 2
!ohamandi (2 2 2
TOTA! B=- B< /,-
MAR2ET SHARE O( "A#R$ )H#TE #N D A%E EAgraF
TG88IT/8IG#
AM!$A ParaG "airy OTHERS
?ijay Dagar 6.26 2 2.4+
#anjay Place 2.*1 2.34 2.*1
;handari 3.46 2.(1 (.)+
66
#ikandra 3.3* 2.15 6.(5
8ajpur :hungi 2 2 (.()
#adar Ba0ar (.45 2.34 (.64
#hashtripuram 2.34 2.66 2.35
Bodla 6.53 2.66 2.35
Ceeni Mandi 6.(5 2 2
8awatpara 3.66 2 2
Belanganj 63.62 6.1* 2
Tajganj 2.(1 2 2
!ohamandi 2.41 2 2
TOTA! ??:,/ ?:?B =:B<
Consumer Per7eption to>ards Amul & ParaG "airy Produ7ts
E5port Potential
India has the potential to "ecome one of the leadin! players in mil9 and mil9 product
exports. )ocation advanta!eH India is located amidst ma&or mil9 deficit countries in sia
and frica. $a&or importers of mil9 and mil9 products are /an!ladesh, China, <on!
Don!, Sin!apore, 'hailand, $alaysia, Philippines, Gapan, CE, %man and other !ulf
countries, all located close to India.
6o' Cost o+ 2ro(&ction H $il9 production is scale insensitive and la"our intensive. Due
to lo7 la"our cost, cost of production of mil9 is si!nificantly lo7er in India.
6:
Concerns in export competitiveness are 7&ality0 Si!nificant investment has to "e made
in mil9 procurement, e(uipments, chillin! and refri!eration facilities. lso, trainin! has
to "e imparted to improve the (uality to "rin! it up to international standards.
2ro(&cti8ity0 'o have an exporta"le surplus in the lon!;term and also to maintain cost
competitiveness, it is imperative to improve productivity of Indian cattle.
'here is a vast mar9et for the export of traditional mil9 products such as !hee, paneer,
shri9hand, ras!olas and other ethnic s7eets to the lar!e num"er of Indians scattered all
over the 7orld
:0
C3apter A
Resear73
met3odoloGy
:1
O'JECT#1E O( THE ST"$
mul E Para! Dairy is the mar9et leader of dairy "ased food products in !ra
City. mul is the ma&or competitors in the mar9et a!ainst Para! Dairy. It is important to
!et an idea re!ardin! mul2s E Para! Dairy position in !ra City. It 7ould not help
mul to capitali?e on existin! potential "ut also to formulate strate!ies and to fill the
loo9 holes and !aps to fi!ht the competitive situation
'he %"&ective also containsH
'o determine the mar9et share of mul E Para! dairy "ased product.
'o determine the consumer preferences of mul E Para! dairy product 7ith the
help of some parameters ;(uality, taste, price, pac9in! style.
'o compare the dairy product of mul and Para! dairy on the "asis of a"ove
parameters
:2
S;GN;4;C$NCE O4 T1E TO2;C
Create the a7areness in the mar9et.
/uildin! confidence in retailers as 7ell as in the customer.
'o Cnderstand the terminolo!ies used in mar9et "y retailers.
Develop the usefulness in enhancin! the usa"ility of the product.
'o 9no7 different sellin! s9ills at various situation of mar9et.
'o learn different strate!ies 7hich are used "y retailers in mar9et to convince the
customers.
:3
/ESE$/C1 MET1O?O6OGA
$ethodolo!y for a study li9e this is the most important part .'he method of study
operate "y me is totally is to increase K to !ather the more information re!ardin! this
pro&ect.
'he ma&or emphasis in such studies is on the discovery of the ideas fruitful
relevant information. s such the research desi!n appropriate for such studies must "e
flexi"le enou!h to provide opportunity for considerin! different aspect of a pro"lem
under study.
I collected the information re!ardin! this pro&ect throu!h Q
I. P#I$#R D'
II. SEC%=D#R D'
Primary data is collected "y the customers and Para! retailers.
Secondary data is collected "y retailer E personal intervie7.
Since our research is descriptive type, so research desi!n is also descriptive.
:0
Sample (esign0
Samplin! is a process of o"tainin! information a"out an entire population "y
examinin! only a part of it.
s depicted "elo7, I have ta9en 10 retailers and 30 customers as my sample si?e
Sample siEe;
8GTAI!G8 H 31
:U#T/MG8H ((2
Analyti7al tools 0 'his study is "ased on collectin! data "y usin! 7ell;connected
(uestionnaire for consumer from various demo!raphic se!ments and also data is
collected usin! secondary sources. fter collectin! data it is arran!ed in the form of
ta"les from analysis and interpretation. *raphs and percenta!e analysis are the main tools
used for the purpose of interpretation.
:1
$reas 'here ; ma(e s&r8ey
Fi&ay =a!ar
San&ay Place
Dhandari
Si9andra
#a&pur Chun!i
Sadar /a?ar
Shastripuram
/odla
Geevni $andi
#a7at Para
/elan *an&
'a& *an&
)oha $andi
:4
6;M;T$T;ONS O4 T1E ST@?A
'his survey althou!h carried out 7ith fullest possi"le efforts and devotion, the
limitation of the time, resources availa"le and limited area chose may lead to limited
representation of the universe. 'he ma&or limitations from 7hich the study suffers are as
follo7s.
'ime ConstraintH;
'ime factor has "een a very "i! limitation in the researchBsurvey li9e this. 'he
retailers have limited time so they sometimes refuse to ans7er the (uestionnaire, also me
as a surveyor has less time to conduct the survey. So the si?e of the sample 7as restricted
to !ra.
/iasness in InformationH;
It 7as felt that retailers did not come up 7ith true responses, in several cases the retailers
ans7ered the (uestions 7ith the help of other mem"ers and it 7as mostly in case of less
educated persons.
+inancial ConstraintH;
'he financial aspect, 7hich includes the travelin! cost, cost of administratin!
(uestionnaire and collection of data throu!h other resources 7as also costly.
Constraint re!ardin! the use of techni(ueH;
:5
'he deeper statistical techni(ues such as analysis usin! variance, multiple
re!ressions etc., could not "e adopted due to the constraint of time and efforts. So, simple
statistical techni(ues 7ere used to analy?e the data.
C3apter ?
"ata #nterpretation
&
%rap3i7al analysis
:6
ANA!$S#S AN" #NTERPRETAT#ON O( "ATA
I. =hich company7s dairy product you useI
#nterpretation;
11 percent consumers use Amul J 32 per cent used others and
last (1 percent consumer used Parag dairy products.
::
II. =hich of the product mostly you go forI
#nterpretation;
Amul @hee used consumer 36>' Parag @hee used 62> and
others *5>. Milk used by consumer 65> Amul' 61> Parag and others
*4>. Butter used by consumer 35> Amul' (6> Parag and *2>
others.
100
III. Are you satisfied with your productI
#nterpretation;
52> :onsumer satisfied with their products and 62 > consumer
not satisfied their products.
101
I?. =hy are you inclined to your productI
#nterpretation;
Amul <uality inclined to products by consumer +2>' Parag
satisfied *2>. Brand preferred by consumer e.g. +5> Amul and 36>
Parag. Price satisfaction with consumer 42> Amul and 32> Parag.
102
?. 9o you like any change in productI
#nterpretation;
ll consumers satisfied 7ith their product and some consumer chan!e product
'aste "y consumer mul 60> and no20> and Para! 7ith satisfied 01> and not satisfied
01>. Price "y consumer mul 30> and no50> and Para! 7ith satisfied 00> and not
satisfied 40>. Pac9in! "y consumer mul 21> and no51> and Para! 7ith satisfied 51>
and not satisfied 21>. .uality 7ise mul 11> and no 61> and Para! 7ith satisfied 40>
and not satisfied 00>.
103
RETA#!ER ANA!$S#S
I. In dairy products' which company product demand is
higherI
#nterpretation;
12per cent consumers demand for Amul dairy products J 32 per
cent consumer preferred others branded products and last 62 percent
consumer preferred Parag dairy products.
100
II. 8easonKKKKKKKKKKKKKKKKK
#nterpretation;
mul dairy products Pac9in! Style 7ise "y consumer 60>, Para! preferred 20>.
/rand preferred "y consumer e.!. 50> mul and 30> Para!. 'aste preferred "y
consumer 46> mul and 32> Para!. Price 7ise "y consumer 40> mul and 00> Para!.
101
III. =hich product of Amul is preferred by customersI
#nterpretation;
ll consumers Preferred 7ith their product and some consumer chan!e product
'aste "y consumer mul 60> and no20> and Para! 7ith Preferred 01> and not
Preferred 01>. Price "y consumer mul 30> and no50> and Para! 7ith Preferred 00>
and not Preferred 40>. Pac9in! "y consumer mul 21> and no51> and Para! 7ith
104
Preferred 51> and not Preferred 21>. .uality 7ise mul 11> and no 61> and Para!
7ith Preferred 40> and not Preferred 00>.
C3apter B
.indings'
suggestions J
conclusion
105
(#N"#N%S
1. I'he company caters to the Indian palate, 7hich is its primary driver of successI.
In li!ht of this statement, critically examine the mar9etin! strate!ies adopted "y
mul E Para! Dairy to capture a si?ea"le mar9et share of the or!ani?ed Dairy
"ased food Product in India.
2. In the modern competitive scenario, promotion is a 9ey element in the mar9etin!
mix of a company. Critically analy?e the promotion strate!ies adopted "y mul
India Pvt. )td. 3hat other efforts must the company ta9e to effectively promote
its productsT

3. Dairy "ased Products contri"ute a ma&or share of the revenues of mul. *iven the
competitive scenario in the Dairy Products in India, 7here competitors such as
Para! Dairy are introducin! several innovative products, 7hat measures must
mul ta9e to remain competitiveT Explain in detail.
106
RECOMMENDATIONS
1. Company should have feed "ac9 from mar9et and consumer a"out
the Dairy "ased Products.
2. 'he more +lavors of mul E Para! Dairy Products should "ecome
in the $ar9et.
3. 'he company provided some small schemes for retailer also.
0. 'he company !ives some !ifts for customer also.
1. 'he company should associate itself 7ith some !ames or
tournaments li9e foot"all, cric9et and so on.
4. Company should provide sponsored seminar mar9et intelli!ence;
Company should maintain the healthy relationship 7ith mar9et distri"ution
channel i.e. 7hole seller, distri"utor, retailers 7hich 7ill "oost the "rand ima!e.
5. Company should chec9 the mar9et real position help the trainees
and other survey or!ani?ations.
6. Company should launch its 7e"site and use ne7 advertisin!
channels@ i.e.
10:
X 'railer in cinema halls
X <oardin!s
X Spencer any education scholarship or !ames.
CONC6@S;ON
I have studied and analy?ed the Dairy "ased food Product $ar9et of Amul &
Parag Dairy Products at Agra on different aspects of the mar9ets, outlets, distri"ution E
consumers. 'he survey 7as conducted in various areas of !ra city 7ith !reat
enthusiasm. 'his pro&ect report Concludes that Amul E Para! Dairy are easily availa"le
in various parts of !ra. The Parag distribution channel of the Amul is much strong the
most important thin!, 7hich I feel to improve is Ythe availa"ility to retailers E
consumersU.
'he retailers E consumers "oth promotes either Amul or Para! Dairy of it2s "rands
for could "e 7ith re!ard to order processin!, 7arehousin!, inventory mana!ement E
transportation@ "esides that shop coverin!, exit from the mar9et "y the salesmen
!lo7 shine "oard, schemes, incentives, pri?es, !ifts, discount, returnin! of defective
!oods, proper supply should "e improved.
110
$y &o" 7as to ma9e mar9etin! mana!ers a7are of all the pro"lems so that a
proper course of action is re(uired to "e underta9en.
ANNEJRE
111
8EST#ONNA#RE
:U#T/MG8H A998G##H
NAME; #NCOME;
I. 3hich company8s dairy product you use
a- Para! "- mul
c- %thers
II. 3hich of the product mostly you !o forT
a- *hee "- mil9
112
c- /utter d- cheese
III. re you satisfied 7ith your productT
a- Res "- =o
#ES%=Z
IF. 3hy are you inclined to your productT
a- .uality "- "rand
c- Price d- taste
F. Do you li9e any chan!e in product
a- Res "- no
FI. I= 3<IC< P#$E'E#H ZZZZZZZZZZZ
a- 'aste "- price
c- Pac9in! style d- (uality
/ET$;6E/0 $??/ESS0
N$ME0 ;NCOME0
FII. In dairy products, 7hich company product demand is hi!herT
113
a- mul "- Para! dairy c- others
FIII. #easonZZZZZZZZZZZZZZZZZ
a- Price "- taste
c- /rand d- pac9in! style

I[. 3hich product of mul is preferred "y customersT
a- *hee "- mil9
c- Cheese d- "utter
e- ny other

#ES%=Z
a- Price "- taste
c- .uality d- pac9in! style
[. 3hich product of Para! dairy is preferred least "y customersT
a- *hee "- mil9
c- Cheese d- "utter
e- ny other
[I. 3hich product of amul is preferred least "y customersT
a- *hee "- mil9
c- Cheese d- "utter
110
e- ny other
[II. 3hich of Para! dairy is preferred least "y customerT
a- *hee "- mil9
c- Cheese d- "utter
e- ny other
[III. #an9 the preferences of consumers for mul K Para! dairy.
Amul ParaG dairy Ot3ers
%3ee
C3eese
"a3i
'utter
Mil6
Ot3ers
111
COMPARAT#1E ST"$ O( AM! AN" PARA% "A#R$ PRO"CTS
Consumer
Preferen7es
ParaG "airy Amul
%3ee Mil6 'utter C3eese %3ee Mil6 'utter C3e
ese
/: Pri7e Bigh Bigh Bigh Bigh !ow !ow !ow !ow
+: 8uality Bigh Bigh Bigh Bigh @ood @ood @ood @ood
A: Taste Better Better Better Better @ood @ood @ood @ood
?: Pa76inG Style Better Better Better Better Best Best Best Best
'#'!#O%RAPH$
$ar9et #esearch ; )uc9 and #u"in
#esearch $ethodolo!y ; C.#. Dothari
114
Product $ana!ement ; #amanu& $a&umdar

$ar9etin! $ana!ement ; #.). Fashney E S.). *upta
777.!oo!le.com
777.amul.com
777.Para!dairy.com
115

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