EXECUTIVE SUMMARY

As a part of curriculum I have undergone internship in AMUL DAIRY for four Two
months. It becomes necessary for a postgraduate student to be well versed with both theoretical
knowledge and its practical application in real situation. The internship training is an eye
opener regarding the actual functioning of different departments in an organization. Also inter
departmental relationships and its significance is thoroughly understood during this period.

The main objective of summer training was given by the Management of Amul.
The objective was “SUPPLY CHAIN MANAGEMENT.”

I started my summer training on 7 June 2016. And during summer training I had to
report at the organization at sharp 9:00 am and was asked to work till 6:30 pm. First 15 days I
spent on various “Procurement” activities like I had visited near about 59 village dairy
cooperative society, check the hygienic condition of bulk milk quantity tank (BMC) and
analysis of collecting milk sample.

After that next 15 days I work in Quality Assurance Department as management trainee
for quality executive and checking quality of raw material of finalized the product.

Then 25 days I work in Production department as management trainee production

executive to work as supervision of production area and last 5 days work as utility section &
ETP.

There is one thing that I have found that the peoples working at AMUL are very much
helpful in all areas. Every time they come to me and told me that they are available at any time
for me for anything, which really boost me and motivates me towards my goal and objectives.
The culture of AMUL is very much friendly.

I completed my project on 5 August 2016 & during the project I have achieved my all
objectives of my project.
 CHAPTER –I
INTRODUCTION & OBJECTIVE

7
1.1 BACKGROUND OF STUDY:

To Minimize the time of Loading and Unloading of Crates from the truck. Calculate distance of
from plant to milk collection center to avoid deteriotion of milk by long time contamination.

Ensure the hygienic and quality of Milk to have clean, safe and nutritive milk for further
processing of it. To distribute the quality product to final end without any deteriotion. Ensuring
of Milk product to reach in Unseasonal Condition to fulfill the demand of end user.

1.2 Objective:

 To Calculate the Loading and Unloading Time of Crates from the Truck.

 To Calculate the Kilometers from the CHANDOLI Plant to the Drop Point of the
Distributors.

 To Analyze the Truck sheet entry of the raw chilled milk received from village dairy co-
operative society. Tanker route management for effective milk transport.

 To ensure raw milk quality and quantity.

1.3 Need of the study

1. To understand procurement of milk

2. To understand distribution of milk and milk product
3. To aware lack of supporting information systems.
4. To study the technology solution

8
1.4 Scope

1. Supply Chain Strategies are the critical backbone to Business Organizations today.

2. Transportation network design and management assume importance to support sales

strategy.

3. Inventory control and inventory visibility are two very critical elements in any
operations for these are the cost drivers and directly impact the bottom lines on the
balance sheet Inventory means value and is an asset to the company.

4. The health of the inventory turn relates to the health of business.

5. In a global scenario, the finished goods inventory is held at many locations and
distribution centers, get manage.

6. Effective control of inventory and visibility of inventory gains importance as a key

factor of Supply Chain Management function.

9
 CHAPTER -II
COMPANY PROFILE

10
 INTRODUCTION

1.5 COMPANY PROFILE & COMPANY OVERVIEW

Mother Dairy is one of the largest liquid milk processing companies in Asia. Mother
Dairy was commissioned in 1974 as a wholly owned subsidiary of the National Dairy
Development Board (NDDB). It was an initiative under Operation Flood, the world's biggest dairy
development program launched to make India a milk sufficient nation. Mother Dairy’s heritage is
intrinsically linked to the cooperative movement of the country and with a determination to work
towards the upliftment of farmers. It is the company’s constant endeavor to ensure that milk
producers and farmers receive remunerative prices regularly and uphold institutional structures
that empower milk producers and farmers through process that are equitable. While the growth of
dairy is deeply embedded in procurement system, it was not really producer friendly in the earlier
times. Milk was mostly procured on per litre basis and not as per the quality of the same (Neven
et al., 2017). So, the quality of milk did not matter much. It was like the ‘dudhia’ system where in
the contractors made money and producers were absorbed in the vicious relationship with the
contractors.

As the nation witnessed growth of dairy cooperatives as a result of Operation Flood

led by NDDB (Guruprasad, 2015), it was observed that producer members did not get their due
because of the per litre method. Hence, the single axis (fat only), double axis (fat and SNF), total
solids and equivalent fat methods were devised. NDDB advised Milk Unions to adopt any of these
methods that best suited to them. The total milk production of India was 165.4 MT during 2016-
17 where as the per capita availability of milk was 355g/day. The ratio of cow milk: buffalo milk
in 2011-12 was 45:53. This ratio has not changed much over the next five years , according to
(Selvarajan Rajeshwaran,2017), a Dairy Consultant and visiting faculty at IRM Anand. The milk
from Indian cows and buffaloes is comprised of A-2 type of protein. It means that 75% of the total
milk in India is essentially of A-2 type and 25% of A-1 type. Mother Dairy is following this
strategy and providing cow and buffalo mixed milk which is light and easily digestible then A-1
type. Mother Dairy over the years has taken up vigorous efforts to reach out to the vulnerable milk
producers of the country through its networks at rural bases. In its efforts to cater to the need of
the milk producers, recent major activities have been in the Uttar Pradesh state and more
particularly in Raebareli district of the state. So in this study an attempt has been made to explore
the avenues and impact of Mother Dairy supply chain management on the overall welfare and
livelihood of the milk producer of the district.

In the year 1946 the first milk union was established. This union was started with 250 litters of
milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as
KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected
the brand name AMUL in 1955.

The brand name Amul means “AMULYA”. This word derived form the Sanskrit
word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had
suggested the brand name “AMUL”. Amul products have been in use in millions of homes since
1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates,
Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading
food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many
things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-
operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers'
organization. And have a proven model for dairy development (Generally known as “ANAND
PATTERN”).

In the early 40’s, the main sources of earning for the farmers of Kaira district was farming
and selling of milk. That time there was high demand for milk in Bombay. The main supplier of
the milk was Polson dairy limited, which was a privately owned company and held monopoly
over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of
poor and illiterates’ farmers by the private traders. The traders used to beside the prices of milk
and the farmers were forced to accept it without uttering a single word.

However, when the exploitation became intolerable, the farmers were frustrated. They
collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom
movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-
operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri
Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha
village near Anand, on 4th January 1946. He advised the farmers to form a society for collection
of the milk.

11
These village societies would collect the milk themselves and would decide the prices at which
they can sell the milk. The district union was also form to collect the milk from such village co-
operative societies and to sell them. It was also resolved that the Government should be asked to
buy milk from the union.

However, the govt. did not seem to help farmers by any means. It gave the negative
response by turning down the demand for the milk. To respond to this action of govt., the farmers
of Kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to
the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of
Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to
fulfill the farmers demand.

Thus their cooperative unions were forced at the village and district level to collect and
sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien
showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who
lead the farmers in forming the Co-operative unions at the village level. The Kaira district milk
producers union was thus established in ANAND and was registered formally on 14th December
1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly
resolved to sell the milk under the brand name AMUL.

At the initial stage only 250 litres of milk was collected everyday. But with the growing
awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul
collect 11 lakhs litres of milk every day. Since milk was a perishable commodity it becomes
difficult to preserve milk flora longer period. Besides when the milk was to be collected from the
far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to
develop the chilling unit at various junctions, which would collect the milk and could chill it, so
as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centres in
various villages. Milk is collected from almost 1073 societies.

With the financial help from UNICEF, assistance from the govt. of New Zealand under
the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was
planned. Dr.Rajendra Prasad, the president of India laid the foundation on November 15, 1954.
Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on
November 20, 1955.

12
 Amul has been able to:

1. Produce an appropriate blend of the policy makers farmers board of management

and the professionals: each group appreciating its rotes and limitations,
2. Bring at the command of the rural milk producers the best of the technology and
harness its fruit for betterment.
3. Provide a support system to the milk producers without disturbing their agro-
economic systems,
4. Plough back the profits, by prudent use of men, material and machines, in the
rural sector for the common good and betterment of the member producers and
The Union looks after policy formulation, processing and marketing of milk, provision of
technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary
care, better feeds and the like - all through the village societies. Basically the union and
cooperation of people brought Amul into fame i.e.

Objective of the Study:

The general objective of study was to strengthen the supply chain strategy action
plan for promoting Mother Dairy-enterprise in the state under the target sectors and in the target
area which will ultimately help the dairy farmers in increasing their income and also fulfilling the
social objectives in Raibareli district as per NDDB guidelines. The specific objective of the study
was:

5. To identify the existing supply chain of Mother Dairy in Raibareli district.

6. To study about the other local competitors of Mother Dairy.

7. The main objective of SCM are to improve the overall organizational performance and
customer satisfaction by improving product or service delivered to the customers

8. To analyze the shortcomings faced by existing SCM process.

Significance of the Study

The analysis is essential to understand balanced supply and demand and forecast demand
and supply for the future. This study focused on the modern supply chain processes adopted
by Mother Dairy. The study will give impetus to Mother Dairy in improving its strategy
for procurement of quality milk as well as enhance the quantity of milk procured. Timely
payment is a norm of Mother Dairy and how best it has achieved it successfully. The study
will enlighten overall performance of Mother Dairy in terms of its profitability and its
competitiveness over its rivals.
 REVIEW OF LITERATURE

In this chapter, an endeavour has been made to review the existing literature on the subjects
under study; and present an overview of various aspects and issues of this research work. As this
research work relates to the study of dairy cooperatives, the selected studies pertaining to this
sector have been reviewed in detail. The performance indicators of dairy cooperative federations
in the state of Uttar Pradesh have been identified and studied in view of the objectives of this
research. Performance indicators provide a measurement for assessing the quantitative
performance of a system. When the indicators show difference in one direction, this means that
the situation is better, whereas, if the difference is in the opposite direction then this means that
the situation is less favourable. Some of the relevant studies undertaken for review are discussed
as here under different heads as mentioned below:

Strengthening the Operational Efficiency of Dairy Supply Chain in Uttar Pradesh Subhuraj
et al (2015) while studying dairy supply chain in Uttar Pradesh, India, emphasized on focusing on
four areas viz., creation of special dairy zone, implementing dynamic milk procurement method,
strengthening cooperative societies, creations of feed bank by increasing fodder productivity,
integrated animal health plan and information technology.
Kumar, et al. (1975) in their study on economic response to feed on milk production for different
types of feeds of dairy cows in Haryana, found that feed was the most significant factor influencing
milk yield. Feed cost accounted for 60-70 per cent of the total cost of production.

Emerging Trends in Business Strategy. A success story of Mother Dairy

Rajeev Ranjan and Rahul Bangabash (2015) indicated that close attention should be given
importance to the customers‟ needs and quality. Mother Dairy realized that it was not enough that
Mother Dairy itself was wedded to these ideas; the entire supply chain had to be confirmed. Hence
it launched a “Total Quality Management” or TQM to ensure the high quality of the products from
the starting point (the village farmer who supplied milk) right through the Supply chain until it
reached the consumer. This meant the need for the involvement of farmers, transporters, factory
personnel, wholesalers and retailers, each of whom had a role to play.

Jain, et al. (1978) studied on the growth indicators of milk producers„ cooperatives in Raebareli
district of Uttar Pradesh. The sample villages in the milk shed area were selected; and the indicators
for the growth of cooperative societies such as their membership, share capital, volume of milk
handled and price paid by different agencies were studied. The period selected for the study was
1968-69 to 1973-74. The data was scored under the benchmark and repeated surveys were carried
out. The researchers concluded that village level milk producers„ cooperatives increased from 230
to 380; and membership of these cooperatives also increased from an average of 157 members per
cooperative to 240 during the study period. Further, the share capital of these cooperatives also
increased from an average of Rs. 3448/- per milk cooperative to Rs. 18842/- during the period.
The number of persons employed by the milk cooperatives and the daily milk collection of milk
cooperatives also increased during the second period, i.e., 1973-74

Kulkarni (1979) investigated the problems pertaining to milk collection from the producers. Some
of the main problems identified were malpractices in weighment and quality testing, inadequate
extension services, lack of sufficient milk collection by cooperatives in the rural areas and spoilage
during the rains.

Kaur et al. (2010) worked on milk market structure in Punjab-organized vs.

unorganized sector. The average production, consumption and marketed surplus of milk worked
out to 330 and 315 liters per day at the aggregate levels respectively. The surplus had accounted
for about 95% of the total milk produced. The milk producer made disposal of surplus milk to the
extent of 84.4%, 14.3% and 1.3% to cooperatives, milk vendors and consumers respectively

Grover and Mehta (1995) showed that the returns from milk production are negative if imputed
value of family labor and interest on capital was considered. In their study it was noted that rearing
of milch cattle was not a profitable venture based on total cost.
Sharma (1995) examined the reasons behind the low coverage of dairy cooperatives in Uttar
Pradesh and found that the dairy cooperative members had satisfactory level of awareness of
testing of milk, price fixation, etc. but were not adequately aware of the input services from the
co-operatives.

Singh et al (2000) in their study based on national level secondary data revealed that higher growth
rate in milk production in the country was mainly due to increase in productivity and not because
of merely increase in number of milch animals. The study further revealed that,

increase in cattle milk production was basically due to contribution of crossbreed cattle and thus
the study called for increasing the proportion of crossbreed population in the country so as to
achieve better growth rate in milk production.
Ashutosh Shrivastava (2003) conducted a study to find out the impact of milk processing on
income and employment on small farms of Damoh district, Madhya Pradesh and to examine the
problems faced by the small milk processing farms and suggest measures thereon. Twenty small
milk processing farms mainly producing desi ghee and 20 non-milk processing farms were
selected. The study concludes that the processing of milk definitely increased income and
employment of the small milk processing units compared to endogenous ones.

Karmakar K.G. and Banerjee G.D. (2006) pointed out that growth in milk production would
likely to continue at the present rate of 4.4% in the near future. Who would going to handle this
incremental milk? Emphasis should be given on both income and price and keep in mind both
income and price elasticity account for approximately 15% of the total expenditure of food.
Demand for milk, at current rate of income growth was estimated to grow at 7% per annum.
Interestingly, demand for milk was expected to grow steadily over the next two decades as the low
income rural and urban families who would have higher expenditure elasticity would also increase
their income due to new economic environment.

Waghmare P.R. and Hedgire D.N. (2007) opined that milk productions in India during 1950-51
was 17 million tons which had reached 78 million tons in 1997-98. Presently India ranks first in
the world in milk production. The Operation Flood Programme was instrumental in dairy
development activities. These programmes helped and useful in upgrading the standard of living
of milk farmers.

Radha Et Al (2008) In Their Opinion Indicated That Growing Human Population, Rising Per
Capita Income And Increasing Urbanization Were Fuelling Rapid Growth In The Demand For
Food And Animal Origin In Developing Countries. India Possessed The Largest Livestock
Population In The World. Contrary To The Large Population Of Livestock In India, Productivity
Of Indian Livestock Was Low Compared To Many Developing Countries.

Dhanabalan. M. (2009) Opined That Dairy Had An Important Role In Improving The Overall
Economic Conditions Of Rural India. To Maintain The Ecological Balance, There Was Need For
Sustainable And Balanced Development Of Agriculture And Allied Sectors. From Our First Plan
Onwards, Planners Have Given Priority To Allied Sector For The Economic Development Of The
Rural Sector.

Mandeep Singh And Joshi.A.S. (2008) In Their Study Reported The Economic Analysis Of
Dairy Farming Of Marginal And Small Farmers In Punjab For The Year 2003-04. It Was Found
That A Majority Of The Farm Households Were Not Able To Meet Their Requirements From
Their Income From Crops. Further Dairy Farming Was Emerged As A Major Allied Enterprise
For Supplementing The Income Of Marginal And Small Farmers In Punjab. Income From Off-
Farm Sources Had Been Identified Another Important Factor Contributing Significantly To The
Disposable Income Of These Farm Households. The Study Had Suggested To Further Exploit The
Potential Of Off-Farm Sources Towards Meeting The Domestic Expenditure. Also, The Technical
Efficiency Of Crops And Dairy Farming Should Be Improved To Provide More Income To
Farmers.
R. J. Masilamani (2011); concluded that the parameters which make decision regarding the
purchase of milk are price, quality, smell , taste, advertisement and awareness. Milk market is a
totally unpredictable market and the organisation should be over-cautious of any complaints that
come into milk as it includes the sentiments of a mother for her kid and she would not prefer to
give anything to her kid for which she is not 100% satisfied. So the company should take every
step possible to contain these problems which in some way or the other affects the sale of Mother
Dairy and its retailers.

Wani Et Al. (2010) In Their Study Revealed That Keeping Of Milch Animals Was Economically
Beneficial To The Farming Community In All The Agro-Climatic Zones Of Uttar Pradesh In
Terms Of Gross, Net And Family Labour Income As Well As Employment Generation And He
Suggested The Need For A Prospective Plan Which Shall Take In To Account Effort To Increase
Productivity Of Individual Livestock In All The Agro-Climatic Zones

Opportunities and challenges in Indian Dairy Industry Supply chain.

Rajeev Kumar and Raj Kiran Prabhakar (2013) found that despite being the one of the
largest milk producing countries in the world, India accounted for a negligible share in the
worldwide dairy trade. The ever-increasing rise in domestic demand for dairy products and a large
demand-supply gap could lead India to be a net importer of dairy products in the near future.

MATERIALS & METHODS

Mother Dairy is a wholly owned subsidiary of National Dairy Development Board (NDDB) of
India set up in 1974.Having ruled the milk and dairy products market in Delhi and NCR for long,
Mother Dairy has now decided to expand its presence in other parts of the country within the
next 2-3 years. Mother Dairy collects around 60 lakh litre of milk daily from the farmers of
Punjab, Uttar Pradesh, Maharashtra, Karnataka and Andhra Pradesh. Hence for research the
study area was chosen based on the expansion of Mother Dairy.
 PUNE PLANT
AMUL SATELLITE DAIRY CHANDOLI, RAJGURUNAGAR ,PUNE

Amul Satellite Dairy was establish in 2003 near the Rajgurunagar. It unit of Kaira

District Co-operative milk plant Anand Gujarat.

Year of establishment:- 2003

Distance from the city:- 40 km

From Pune city

Total area of dairy :- 2 Acres

Total RCM centre :- 61 society

14
 PRODUCT PROFILE
AMUL mainly does purified milk and milk products. The products that are produced by
these units are:-

1) Amul Gold

Amul milk is containing 6.0% Fat and 8.5 % SNF.9.0 % rich, creamier and tastier and it is ideal
for preparing home-made sweets .

Available in 500ml., 1ltr packs, 6 ltr packs

15
 2) Amul Taaza

TAAZA milk containing 3.5% Fat. And S.N.F 8.6% rich. It is useful for baby products.

Available in 500ml., and 1ltr packs.,6 ltr

16
 3) Amul Cow milk

Amul cow milk containing 3.8%Fat. And S.N.F 8.6% rich..

Available in 500ml., and 1ltr packs.

4) Amul Butter milk

Amul butter milk containing 1.5% fat

17
Available in 2ooml.500mi, and 1ltr packs.

5) Amul Slim & Trim

Amul Slim & Trim milk containing 1.7% fat

6) Amul Masti Dahi

Amul Masti Dahi contening 3.1% fat

Available in 200gm,400gm & 1kg packs.

18
 PRODUCTION
MANAGER

HR MANAGER

FACTORY HEAD MAINTANCE

MANAGER

SHIPPING
MANAGER

QUALITY MANAGER

19
 PROCESS

The Process Flow of the AMUL Dairy

Raw milk reception Clarification Standardization

Raw
.

Processed Milk Pasteurization Homogenization

Deep Chilling Dispatch

Raw Milk Reception:

Raw milk received through insulated road/rail tankers at a very low temperature thus retaining the
freshness of milk. The milk goes for more than 15 stringent quality tests before it is accepted for
the processing of milk.

Milk achieved from individual producers is checked for all basic quality parameters meeting the
company specification and required norms at respective collection and chilling centres.

Milk is then supplied to the dairy units through insulated milk tankers at <4 degree C.

Processing of Milk:

Processing of milk is done in basically 4 steps

 
 Clarification
 
 Standardization
 
 Homogenization
 
Pasteurization

20
Clarification:

The chilled milk from the silos goes to the clarifier after pre-heating. The clarifier spins the milk
at very high speed, removing all the dust particles that are invisible to naked eyes.

Standardization:

Milk from different breeds of cow and buffalo may vary in its composition. Hence, to make Milk
uniform in composition, before supply to the market, it is standardized by raising or lowering its
fat and SNF percentage present in the milk to a desired level, so as to deliver the milk to consumers
as per prescribed norms of FSSAI.

Homogenization:

In this process, the milk is processed at very high pressure during which the large fat globules
presently in milk are broken down into tiny droplets. The milk fat gets evenly distributed in the
milk and milk become whiter and thicker. Milk is homogenized for consumers who do not like
cream layer on top. Homogenization improves Palatability of milk and is easily digestible.

Pasteurization:

The milk is then pasteurized, named after Louis Pasteur, a French Scientist who invented the
process to use in wine. Pasteurization was first applied by Dr. Soxhiet of Germany. This involves
heating of milk to 72 degree Celsius for 15 second and then cooling it down to 4 degree Celsius.
The process kills all pathogenic bacteria present in the milk making. It makes milk safe for
consumption. Pasteurization, unlike boiling does not affect the nutritional value of the milk.

ABOUT FUNCTIONAL DEPARTMENTS

Operations & Supply Chain Management

As mentioned earlier, the strategy, design and practices in AMUL’s network are strongly driven
by the objective of establishing and operating an efficient supply chain from milk production and
procurement to product delivery to customers. Management of this network is built around two
key elements – (a) coordination of the diverse elements of the network and (b) use of appropriate

21
technology that includes product, process and information technology and managerial practices
and systems. In what follows, we describe various features of these elements that have contributed
to the evolution of an efficient supply chain.

Supply chain of AMUL dairy:

I. Supply of inputs for dairying in form of fodder, animal feed plant, veterinary aids for
the animal (cattle and buffalos).
II. Milk is taken out from the mulching animal on the daily basis by the dairy farmers
(large, medium and small scale farmers).
III. Collection of milk by collection centers (various milk cooperatives societies).
IV. Milk collected by the cooperative societies are sent to the dairy plants where chilling of
milk, processing and packaging of milk and milk product, transportation of milk and milk
product is carried out.
V. The transportation of chilled milk and milk products from one place to another is done
through the means of refrigerated vans, or insulated milk tankers.
VI. Final processed milk and milk products are transported to various retails outlets,
supermarkets, and to retails markets from where the processed milk and milk
products finally reaches to their end customers.

Issues and challenges in value chain

1. Meeting seasonal spikes in demand and ability to measure the quality of procured milk
at the source.
2. Complex logic of payments to producers based on fat, solid non-fat (SNF) and quality
of milk received.
3. Keeping track of truck and tanker routes, as well as capabilities for viewing,
monitoring and payment based on route or distance.
4. Visibility into the shelf life and stock-outs of raw material.

Issues and Challenges at the Production and Standardization stage

22
 1. Manual and time-consuming processes for milk standardization calculation, handling
production planning based on nonstandard raw material, addressing growing food
concerns from consumers.
2. FAT accounting and effective tracking of FAT loss in the production process.

Issues and Challenges at the small suppliers’ level

1. Inadequate feeding of animals

2. More disease incidence
3. Low genetic potential of animals
4. Lack of chilling capacities
5. Exploitation of farmers
6. High production costs
7. Delayed payment of dues

Issues and Challenges at Collection location Level

1. Milk base mainly consisting of small holders

2. Involvement of too many intermediaries
3. Gaps in information
4. Absence of a screening system
5. Lack of Infrastructure
6. Manipulation of the quality of milk by the farmers

Issues and Challenges at the Processing stage Level

1. Seasonality of production and fluctuating supply

2. Absence quality standards
3. Adulteration and Food safety
4. Lack of trained and skilled workers

Issues and challenges at the Storage and Logistics stage Level

1. Lack of cold storage facilities

23
 2. Gap in the cold chain and transport facilities

Issues and Challenges at the Co-operative Level

1. Less number of member farmers

2. Lower participation in the decision making process
3. Losses
4. Low prices of milk
5. Inefficient service

Distribution:
GCMMF coordinated with various unions to get a regular supply of milk and dairy products.
The processed milk and dairy products were procured from district dairy unions and distributed
through third party distributors. To ensure quality and timely deliveries, GCMMF and the
district unions had several mechanisms in place. The VCS constantly monitored the deliveries
of the milk collected and ensured that the milk was picked up on time. The unions monitored the
supplies of milk and the distribution of finished products.

Production Department:

The most important part in any organization is firm, company or co-operative sectors. Production
can be made for the middle users or for the end-users (direct consumers). Production do the main
work of converting raw material into semi-finished or finished goods, it depends on what kind of
production the organization is doing.

In the context of AMUL Dairy, people have endless demand for milk and milk
products. AMULDAIRY undertakes the procurement of milk and its production likewise
satisfying the needs and demand of people. It estimates the demand and accordingly production
is done for which arrangement of Raw material, finance and provision for selling is made by
AMULDAIRY.

24
 The Production Department is interrelated with the Personnel, Finance, and Marketing
Department. On an average 2 lakes liters of milk is processed by AMUL dairy.

Activities of Production Department:


There aremainly Eight (8) activities done by the Production Department. They are as
follows:

1. Raw Material Receiving Dock

2. Clarification

3. Homogenization

4. Pasteurization

5. Chilling

6. Processed Milk

7. Deep Chilling

8. Dispatch In Insulated Tankers

AMUL Dairy has set up a modern plant for the production process. It has established its plant in a
modern high tech style which functions nearly 80% automatically.

Finance Department

Finance is the most crucial part in any organization. Finance is required in each & every stage of
the business. Business is nothing but a process of making money through money. The finance
department of a business takes responsibility for organizing the financial and accounting affairs
including the preparation and presentation of appropriate accounts, and the provision of financial
information for managers
The primary purpose of the Finance Department is to monitor and report on the financial position
of the AMUL Dairy and to provide an excellent level of service to their public customers and
customers in other City Departments.

25
It can be acquired through various sources. After the acquisition of finance, the work of utilization
of finance is to be decided. The finance department has to deal with not only the procurement of
finance but also with the proper utilization of it. Finance is the basic requirement for purchase of
assets, production of goods, marketing, selling, etc. The finance department takes the decision
regarding financial matters. Thus, we can say that finance dept. is one of the most important dept.
The Main Areas Covered By Financial Department in Dairy

 Book keeping procedures.


 Creating a balance sheet & profit and loss account.

 Providing information to management

Marketing Department

“It is clearly said that Marketing Department is the Front Face of any organization or firm”. This
is said because marketing is the only means from where the consumers can know about the
upcoming products of the firm or organization. This indirectly gives result in increased sales of
products.

Marketing - in other sense, means promoting the product publically and to bring revenue through
sales. Marketing Department does the function of creating demand in people and generates sales
from it, which completely depends on marketing department.

AMUL dairy is having a full-fledged marketing dept. where all the functions related to marketing
are performed. As a part of marketing strategy AMUL Dairy has increased its Morning milk
centers.

Also AMUL dairy have introduced various innovative distribution format such as
 
 Milk Shops.
 
 Franchise Shops.
 
Kiosks.

26
  
 Insulated Containers.
 
Container on wheel.

This distribution is itself so innovative that make AMUL dairy different than their competitors.

Human Resource Department

There is a well versed Quote saying that “Employees are the assets of any organization” Which
depicts that they are most important tool of organization. Thus to maintain them for the
organization, Personnel department (Human Resource Department) is kept for the well being of
employees.

The function of Human Resource Department can be seen in each and every department of any
organization. Thus it can be easily said that “The Human Resource Department” is the heart of any
organization. The function of Human Resource Management is to manage the people working in
the organization. It mainly focused on the intrapersonal relationship and interpersonal relationship
of employees.

Human Resource Management in simple words means planning, organizing, directing and
controlling of procurement, recruitment, selection, training and development, compensation,
integration, maintenance, appraisal, allocation and separation of Human Resources

Thus, Human Resource Management refers to set of programme, functions and activities designed
and carried out in order to MAXIMIZE the employee’s as well as organizational efficiency and
effectiveness.

Purchase and Store Department

Inventory Management System

In AMUL dairy, the store department uses the FIFO method. I.e. First in First Out method of
inventory management

Purchase Procedure

AMUL Dairy’s main raw material is milk. The purchase department has only to pick up just 10%
of other raw material. The purchase procedure is as under:

27
 1. First of all respective department heads find out their need and get it approve by the
managing director.
2. Then they contact the stores department.
3. After this they send an indent to the purchase department.
4. The purchase department then asks for quotation from the suppliers.
5. After the quotations are received will then be selected.
6. The least cost giving suppler will then be selected.
7. Then take the approval and give the authority to the supplier who gets the quotation
passed.
8. Then just let the finance department will make the payment the supplier after the
delivery of goods.

Types of Stores
 
Cold Stores

The cold stores are use for storing milk, chhas, flavoured milk, Dahi etc. and many other
products.
 
General Store 1

In this general store, the veterinary products, medicines, transportation instrument,

buckets, flavors for milk and Ice-cream are stored here.
 
General Store 2

Here plastic of milk bags is store; tins of ghee, milk powder etc. is stored.

QUALITY ASSURANCE DEPARTMENT

28
ORGANISATIONAL STRUCTURE OF QUALITY CONTROL MANAGEMENT-
 The chemist looks after all the society milk, pasteurized milk and other milk products.
 
Sampler
The sampler takes the samples from the milk received from different co-operative
societies.
 
Micro Biologist (Milk Plant)

The microbiologist cleans up all the tools and machines, which are used for milk, butter
and buttermilk.
DISPATCH AND LOGISTICS
All activities carried out under the supervision and order General Manager of Marketing head i.e.
order of milk and milk products are dispatched as per the order of customers and retailer and all
records of dispatch are kept in dispatch register and computer.

In dispatch department the work is divided in 2 shifts

1. Afternoon
2. Evening

 Sources of Mode of Transportation

There are trucks, tempos, insulated vans, three wheeler tempos are used to deliver the milk and
the milk products in all the two shifts.

30
 Chapter –III

RESEARCH METHODOLOGY

31

3.1 Research design:

Descriptive research and exploratory research was conducted to fulfill the objective of the study.
The research was conducted from 07 June 2016 to 5 August 2016. The research includes
meetings with the Distributors, Truck drivers, Retailers and Chandoli Plant Staff. It included
Sheets provided by the Mr. Sachin Sarada (GCMMF) which has to be answered by Distributors.

I saw the overall process of Milk, Dahi ,Butter milk Production. I also studied the loading of
products in refrigerated trucks and which was going to the Distributors and also saw the
unloading Process. I also calculated the time of loading and unloading of the crates.

I went with the trucks to know the route and noted down the timing of reaching to each co-
operative village society also visited to dairy farms of the some farmers to know the raw milk
quality. Checked the animal feed samples at Pune satellite dairy laboratory to ensure the
cattle feed quality. noted down the route which truck was following. The views of the above
society are mentioned in the Report

.3.2 Exploratory Research:

In exploratory research data collected directly from the farmers. Ie. Milk producer, distributor
and retailer in Pune district innovative and leaders are targeted to collect information.

A) Depth interviews:
Conducted interview of the Amul milk producers.
B) Literature search:
In this research I include the Amul cattle feed literature and milk procurement related
material. I studied it deeply to know nutrient contain of cattle feed.
C) Focus group:
Night meetings was conducted at village and brought farmers together to study and talk
over them of interest

32

3.3 Data source:

 The data and information required for the study was collected from primary and
secondary sources.

Primary data:

Primary data was collected by conducting survey in selected area for study. The project was
survey type, so immense importance was given to constructing questionnaires, interviewing
the respondent (distributors, society chairman and farmers), tabulation of data and statically
techniques to analyze data.

Secondary data:

Secondary data was collected for reputed statistical website, procurement officer and sales
team to get some ideas about the project and related perception of the situation.

2.4 Area of study

Milk procurement activities was started in 2013

Area of operation

Taluka Year of
starting
Khed 2013
Shirur 2014-15
Ambegoan 1015-16

Mainly working in 3 talukas or Pune district.

33

3.5 Target population: 3 Taluka’s

3.6 Sample size: 61 Dairy co-operative society

3.7 Sampling method: Simple random sampling

3.8 Instrument for data collection:

Questionnaire-open ended question, close ended multiple choice question were involved in
the questionnaires.

3.9 Research techniques: Personal interview

3.10 Limitations of the survey/ study


 Dealers and farmers either havelimited / lack of time or no interested, so that sometimes
they could not proper response.
 
 Dealers are least interested because of lack of time.


It might also be so that some respondents were not motivated enough to respond
properly although full attempt was made to keep it as unbiased as possible.
 CHAPTER-IV

DATA PROCESSING &

INTERPRITATION

35
4.1 Loading and Unloading Time Calculation

This time calculate on the basic of no. of labour for loading and unloading. It’s also
depends size of truck means no of crates in on t truck and distances between the truck and
godown. One truck loading required 1 ½ hr for loading with 4 labours. Unloading also required
same time as like the loading the truck.

Table No. 4.1 No. of labours for loading the truck

Time (min) No. of Labour No. of Crates /truck

15 4 400
30 4 600
45 4 800
60 4 1000
75 4 1200

1400

1200

1000

800
NO.OF CRATES
600 TIME (Min)

400

200

0
15 30 45 60 75

( Graph 4.1)

36
4.2 Calculation of kilometers from Chandoli to drop point of the Distributors

The distributors were different location as like the Pune, Nasik, Aurangabad. The
distance between the Chandoli to Distributors is vary from location. All trucks from Chandoli
start at the evening and early morning it reached to distributor location. For the kilometer
calculation GPS system fit in the Truck. It helps to track the location of truck exact. Truck size
and No. of truck at each location is depends on the no. distributors and quantity of milk at each
distributing point required. The mobile tracking is also done some time.

Table 4.2 No. of truck per Distributing point and location

No. of Location No. of Distributors

Truck
1 Pune 25
2 Nasik 30
3 Aurangabad 50
4 Nagpur 60

NO.OF DISTRIBUTORS

25
50

30 PUNE
NASHIK
AURANGABAD
NAGPUR
60

(Graph no.3.2)

37
 4.3 Tanker for Collective centers:

First they were selected the no. of collective centre and milk procurement in the same route. It
helps to select the size of container required for same route for collecting the milk. The effective
management is possible by route management of the truck. For Example. One route and no. of
cooperative society as calculate like.

Table 4.3 No. of truck per Distributing point and location

N o. of Co operative Milk Procurement

society (liter)
1 Daad 1296
2 Chas 1759
3 Saigoan 1986
4 Gargoatewadi 1456
5 Neherewadi 1585

6 Agarvadi
1090
Total 9172

 
Truck capacity 10000 ltr

38
4.4 Milk Quantity and Quality:

First they were selected the no. of collective centre and milk procurement in the same route. It
helps to select the size of container required for same route for collecting the milk. The effective
management is possible by route management of the truck. For Example. One route and no. of
cooperative society as calculate like.

Quality parameter

1 Urea detection

2 Ammonia fertilizer detection

3Nitrate fertilizer / pond water detection

4 Starch and flours detection

5 Sugar and sucrose detection

6 Glucose detection

7 Salt detection

8 Acidity

9 SNF ( solid not fat )

10 Fat determination

39
4.5 Price factors of Amul products:

Sr.no Product Ml Price

1 Amul Gold 500ml 25
2 Amul Taaza 500ml 20
3 Amul slim & Trim 270ml 10
4 Amul Cow Milk 500ml 20
5 Amul Butter Milk 500ml 15
6 Amul Masti Dahi 1 ltr 50

(Table no.4.5)

50
45
40
35
30
25
20 50
15 25
10 20
5 15 20
0
10 price

(Graph no.4.5 )
 Demographic Profile of the sample farmers

Demographic profile of the sample farmer is depicted in Table 4.1. The table reveals
that 49% of the milk producer belonged to general caste followed by OBCs (48%) and
Scheduled tribals (3%). Average age of the respondent was 46 years. Literacy level indicates
that all are literate and quite a large sample (62%) had higher secondary and even more level of
education.

Table 4.1 Demographic profile of the sample respondents

Dairy
Particulars
entrepreneur (%)
General 49
Caste
OBC 48
composition
ST 3
Age 30-40 34
group 41-50 34
>51 32
Average of sample farmer 46
Level of Primary 22
education Secondary 16
Higher 39
secondary
Higher 23
education
Primary Farming 32
occupation Dairy 19
Business 24
Non-farm 6
labour
Service 19
Secondary Dairy 78
occupation Farming 22
Tertiary Farming 37

occupation
Househol Adult male 1.63
d size Adult female 1.75
Male children 1.78
Female 1.73
children

About 32% Of The Sample Respondents Had Farming As The Primary Occupation Followed By
Business (24%), Dairy And Service (Each Having 19%) And Nonfarm Wage Earning (6%).
Majority Of The Farmers I.E., 78% Had Dairy As The Secondary Occupation And 37% Had
Farming As The Tertiary Occupation
 Sources of income
Particu
lars Income (Rs)
Crop 13583(5)
Livesto 224536(86)
ck
Non- 3250(1)
farm labour
Busines 12220(4)
s
Service 15650(6)
Total
Note: Figures in the parentheses indicate percentage to the column total

Income profile of the milk producers as revealed in Table 4.2 indicates whopping
86% of the total income of the milk producers in Raibareli district comes from dairy enterprise
followed by service(6%), farming (5%), business(4%) and nonfarm wage earning(only one
percent).
CHAPTER- V

FINDING

41
 Findings
1) Direct milk bill payment to farmers. After every 10 days cycle payment has made to farmers.

2) Produce meeting to be conducted at DCS level for the better transparency and improvement
in trust level.

3) Amul focus on that to maintaining good rates in flush season.

4) Random visit of quality person to attend the reception , collection of doubtful samples and
adulteration test. All per strictly monitored for good since .

5) Veterinary service started at all target area.

6) Amul provides good quality of cattle feed to Amul milk producers.

7) Bonus to milk producer for year 2014-15. Distributed near about 7 core rupees farmers on bank.

8) Amul provided milk adulteration kit at per level .it helps to know identify the
Milk adulteration at per.

9) FSSAI license to societies- All the per have applied for food & drugs license.

42
CHAPTER-VI

CONCLUSION

43
 CONCLUSION
AMUL, is playing a vital role in serving the rural class & contribution for the economic up

Lift ment of farmers. It is helping the farmers by giving them all facilities to rural people by
supplying fodder & feed, improving the breed by artificial insemination with the help of their
veterinary services. AMUL is reaping profit by equipping the latest technology& producing better
quality products. It is serving the best quality milk & milk products to its customers, thereby
maintaining their top position in the market. It has atomized manufacturing and every process is
computerized. In other words, through automation it has achieved great success and a good
recognition.

44
CHAPTER-VII

RECONDATION

45
 RECONDATION

 AMUL Should maintain the good relationship with the farmers , co- operative societies
and distributors

 More focus on milk procurement and maintain quality milk product.

 The distributors are also facing the problem of dumping which make it impossible for
them to forecast and give order for the next day as they currently have extra stock.

 The distributors of Amul should not be allowed to keep other milk products. And even if
they maintain the same, they should be punished.

 Certain schemes needs to entertain to the milk distributors shall be given so as to
motivate them and increase our sales.


 Trucks which are used for transport of Amul Pouch Milk should be washed regularly.


 Company should try to make available their product at all most retailer’s shops
by improving their distribution channel.



 Satisfaction level of customers should be raised by providing good quality product at low
price, and should try to remove reasons for dissatisfaction of customers.

 Feedback, suggestion & complaints should be revised by AMUL if they are appropriate
&Good. It should also try to take actions for Implementation.

46
BIBLIOGRAPHY

www.amul.com
www.wikipedia.org
www.googlemaps.com
 www.wikipedia.com
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













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48