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Transcript of Amul Daiiry
ASUMMER TRAINING
REPORT ON “AMUL DAIRY”
ANAND
SUBMITTED BY: PROJECT GUIDED BY:PRATIK PATEL VIRAL SHILU SIR
MASTER OF BUSINESS ADMINISTRATION, SEM-II
(It is partially fulfillment of degree of MBA) SUBMITTED TO:
SHRI SARDAR PATEL KELAVANI MANDAL,JETPUR.
SAURASHTRA UNIVERSITY
AMULTHE TASTE OF INDIA
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AMULTHE TASTE OF INDIA
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ANAND MILK UNION LIMITED
THE KAIRA DISTRICT CO-OPERATIVE MILK
PRODUCERS’ UNION LIMITEDANAND
AMULTHE TASTE OF INDIA
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AKNOWLEDGEMENT
At this juncture, when I am submitting summer report, I honestly feel that this report would not have been without the support, guidance, critique and direction of those who are associated with my academic and personal life. I sincerely and joyfully acknowledge my gratitude to Mr.Nad Vijay Gohil (Manager.HR), Mr.Bharat Patel (Retail in charge Vaghasi depot at Anand) and Mr.G.D.Trivedi for giving me such as valuable opportunities to apply my management concepts principal and skill into real practice. They really help me to make this project work meaningful.
I cannot forget to thank Mr. Mahesh Chandra Joshi (In charge Director) S.P.K.M. Institute, Jetpur and Mr.Ritesh Amarsela, S.P.K.M. Institute, Jetpur (Guide), for guidance and support provided by me, and when needed without their help my work was not make feasible, I sincerely pray to God, for their high development to succeed in each stage of their life.
At the end, I cannot forget to say thank you to my family members, my friends and wish them a bright future and great carrier and last not the least my God who have always been there in my highs and lows encouraged and motivated me to express my self with success.
AMULTHE TASTE OF INDIA
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PREFACE
The MBA program is well structured and integrated course of business studies. The main objective of practical training at MBA level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The MBA program provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management.
In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry
In today’s globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that “Experience is best teacher”.
A summer project is an opportunity to implement our entire theoretical management concept into real practice. Gujarat Cooperative Milk Marketing Federation Ltd. (GCCMF) made this possible by giving me, such an opportunity to study their function at sales depot, Anand
I hope that my work and efforts will be definitely helpful to Amul.
Pratik Patel
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BRIEF CONTENTS……………..
SR. NO. PARTICULARS PAGENO
1. ABOUT THE ORGNISATION 72. OVERVIEW OF GCMMF 203. THE ORGANISATION 234. TOTAL QUALITY OF MANAGEMENT 385. HUMAN RESOURCE. DEPT. 446. MARKETING DEPARTMENT 497. EXPORT DEPARTMENT 558. QUALITY ASSURANCE DEPARTMENT 589. PURCHASE DEPARTMENT 6110. FINANCE DEPARTMENT 6411. INFORMATION SYSTEM DEPT. 6712. DISTRIBUTION 7413. SALES DEPOT 7814. THE AMUL SHOP 8215. GCMMF ACHIEVEMENT AWARD 8316. BUSINESS ANALYSIS 8717. SWOT ANALYSIS 8918. FINDING AND SUGGESTION 9019. CONCLUSION 9220. BIBLIOGRAPHY 93
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Content……………….
Its began with strike
Need shows
Growth follows growth
Improving milk production
The amul system
District union
Education
A larger responsibility
Animal breeding
An overview GCMMF ltd.
The organization
List of product
Function of production officers
Department
AMULTHE TASTE OF INDIA
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ABOUT THE ORGANISATION
IT BEGAN WITH A STRIKE
A farmer in Kaira district as elsewhere in India derives his income, almost
entirely from seasonal crops. The income from milk was partly and could not be
depended upon. The main buyers were milk traders of Polson ltd. – a privately owned
company which enjoyed the monopoly for the supply of milk from Kaira to the
government’s Bombay milk scheme. The farmers of Kaira district were thus at the mercy
of the milk traders who could dictate the price as they had nowhere else to turn.
The unfair system bred widespread discontent. The farmers appealed to Sardar
Patel a great leader of India’s freedom of the movement, to help. Sardar Patel advised to
the milk through co- operatives of his own. He sent his trusted deputy, the late Shri
Morarji Desai to organize the farmers. At the meeting held at Samarkha village on
January 4th, 1946, it was resolved that milk co-operative societies would be organized in
each village of collect milk from the producers and federated into a district union. The
government should be asked to buy milk from the union. When the government trusted
down the demand, Kaira farmers organized a milk strike.
For 15 days not a drop of milk was old to the traders. The Bombay milk scheme
badly affected. The milk commissioners of Bombay visited Anand, assessed the situation
and decided to concede to the farmers demand.
Thus was born the Kaira district co-operative milk producers union ltd. It was formally
registered on December 14th, 1946.
AMULTHE TASTE OF INDIA
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NEED SHOWS
In the beginning there were just a few farmers supplying about 250 liters of milk a
day. Soon the number increased to 400 farmers and the quality of milk handled rose to
5000 liters a day. With growth came problems. Milk yield is higher in winter, and the
Bombay milk scheme could not absorb the extra milk offered. The farmers were forced to
sell the surplus milk to traders at very low rates. This led to the decision to set up a plant
to process the surplus milk into butter and milk powder.
With financial help from UNICEF assistance from the government of New
Zealand under the Colombo plant, and technical assistance provided by FAO, a Rs.5
million factory to manufacture milk powder and butter was planned. The foundation was
laid by Dr.Rajendra Prasad, the president of India, on November 15, 1954, and on
October 31 ,1955, Pandit Jawaharlal Nehru , the then prime minister, declared it open.
GORWTH FOLLOWS GROWTH
In 1958 the plant was expanded to manufacture sweetened condensed milk. Two
years later Shri Morarji Desai , by then India ‘s finance minister, inaugurated a new wing
designed to manufacture 600 tones of cheese and 2500 tones of baby food formula was
developed with the help of the central food technological research institute, Mysore . This
was the first time in the world, that cheese or baby food was processed from buffalo milk
on a large commercial scale. A plant to manufacture balanced cattle feed donated by
OXFAM, was commissioned on October 31st, 1964, by Lal Bahadur Shastri, the then
prime minister of India.
At the request of the government of India in 1963, a new dairy with a capacity of
40tonnes of milk powder and 20tonnes of butter a day was speedily completed. This was
meant requirement of India‘s defense forces. The dairy was declared open by Shri
Morarji Desai in April, 1965. By now the dairy complex could handle 500000 liter of
milk a day the capacity was raised to 750000liters a day in1974. The same year the Kaira
AMULTHE TASTE OF INDIA
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union set up a plant manufacture high protein weaning food, chocolate and malted food at
Mogar , about 8 km. south of Anand. In September, 1981 the second cattle feed plant at
Kanjari was started. The successful completion of the co-generation project on September
11th, 1985 marked a new milestone on the energy front when two gas turbine generators
of 1.5 MW each based natural gas commissioned.
Kaira put up a dread spread plant at Mogar with the assistance of NDDB on 1994.
On October 31, 1992 Dr.Kurian, Chairman, National Dairy Development Board, laid the
foundation of Kaira union third dairy , with a processing capacity of 6.5 lakh liters of a
day. Work on the union’s satellite dairy and cheese plant at Khatraj began in February
1994.
IMPROVING MILK PRODUCTION
From the late fifties Kaira union has been investing heavily in schemes to
improve the milk yield of animals. The union built up a full fledged infrastructure for
breeding animals and ensuring animal health care. Semen from high pedigree bulls is
being made available. An efficient insemination service also was put into place through
village society workers. A mobile veterinary service renders animal health care at the
door step of the farmer; the veterinary first aid program organized by union through
trained village society workers was probably the first of its kind in India.
The co-operative dairying system which took root in Kaira was beneficial and
viable. The union, which started with two societies, had 954 societies, with 537000
members in 1995; milk handled went up from 250 liters a day to one million liter a day.
The turnover of the union in 1994-95 was Rs. 344crores. The intervening years saw
similar union s coming up in other district of Gujarat. The “Anand pattern of co-operative
dairying had become firmly established.
AMULTHE TASTE OF INDIA
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Membership
(‘000)
Kaira District Co-Operative Milk Union Ltd.
THE AMUL SYSTEM
Why did Amul system succeed?
In the old system of middlemen the guiding principles were lowest possible price
to the milk producer, price to the consumer, and lowest possible quality of the milk and
milk product for sale. The middle men pocketed the profit Under the Amul system the
reverse held well; highest possible price to the producers, lowest possible price to the
consumer and highest possible quality of milk and milk product for sale. The profits were
used for the milk producers common good.
Market forces favored the Amul system.
AMULTHE TASTE OF INDIA
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0
200
400
600
800
1000
1200
48-49 58-59 68-69 78-79 88-89 94-95
societymembers
The system was a village society was concerned mainly with purchase of milk
from producer; it also acted as a channel for milk production of enhancement of scheme.
The district union looked after policy formulation processing and marketing of, milk and
provision of technical inputs to enhance the milk yield of animals like artificial
insemination service, veterinary care, better feeds etc. The system is same now except for
a third tier a federation, an apex co-operative of district unions for marketing.
Village SocietyThe village co-operative society consists of primary milk producers. To milk
producer pays an entrance fee of Re. 1 and buys at least one share of Rs.10. The member
elect managing committees elect a chairman. Each member has only one vote, regardless
of the number of shares he has. Committee work is honorary and is restricted to policy
formulation and supervision. Salaried staffs are employed for milk collection fat testing,
clerical and accounting work, artificial insemination, etc.
Villages are served by milk collection centers, open morning and evening. Milk
delivered by a producer is measured and a sample is drawn for quality-testing. The
district union provides each centre with a fat-testing machine. Societies have introduced
electronic fat-testing machine and some societies have installed automatic weighting cum
fat testing equipment with data processing facilities. The unions have planned installation
of village chilling units in the societies to that the quality and freshness of milk could be
retained. Payment due is worked out on the basis of the quantity and the quality of the
milk delivered. The farmers are paid in the evening for milk delivered in the previous
morning, and the following morning for the delivered the previous evening. Details are
entered in members’ pass-book and the society record.
Cash payment every days are a great boon to the farmers. A third of milk gives
them money for food and other daily necessities. Those with land supplement their
income from seasonal crops with milk sales. About half of the income from milk is
estimated to be spent on food for animals. The balance is used for the family’s needs. The
society earns a profit from its sale of milk to the union. A part of this profit is distributed
AMULTHE TASTE OF INDIA
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to its member each year as bonus, calculated on the value of milk supplied by the
producer. A part of the society’s profit is also channeled into schools, libraries,
dispensaries and health centre, water works, drinking troughs for cattle, roads, electricity
Telephone facilities, youth clubs, cattle relief and veterinary services like first aid and
artificial insemination.
DISTIRCT UNION
The union is managed by board of directors twelve elected from among the
chairman of village societies. The board elects a chairman and a vice chairman and
appoints a managing director, who in turn appoints supporting professional and other
staff. The board formulates policy; the professionals look after the day to day work.
Village representatives are elected every three years form amongst the village
representatives. Milk from the societies is picked up by union-up by union-hired
trucks/tankers plying at fixed routes. At the Dairy, milk is graded; good milk is weighed,
sampled and tested for fat and solids-not-fat (SNF) content. The society is paid three
times a month on the fat and SNF content in the milk. Low – grade or sour milk fetches a
lower price. The dairy pasteurizes milk for liquid milk sale or to convert it into products.
Liquid milk leaves the dairy by insulated road or rail tankers. Milk products are
dispatched by truck.
In the early years the union looked after the marketing of milk and milk products. In
1974 the Gujarat co-operative milk marketing federation limited. Anand, the apex
organization of district unions was formed to perform the marketing function.
ANIMAL BREEDING
For breeding animals the Kaira union has established centre at ode farm, 18 km
from Anand with high pedigreed buffalo bulls, Holstein Friesian bulls, artificial
insemination sub centre are maintained by 827 societies. The semen is delivered to the
sub centre through the hired, transport vehicles. Artificial insemination services are
provided to member and are non-members at nominal cost. The union provides a AMUL
THE TASTE OF INDIA13
pregnancy diagnosis service too. In 1994-95 the number of artificial inseminations
carried out was 672852. Both buffaloes and cows are covered under the program. By
1995 there were 43734 crossbred cows or heifers in the district. The union runs 16 mobile
veterinaries dispensaries with fully qualified staff and radio telephones. All villages are
visited on pre determined days twice a month. A 24 hour emergency veterinary service
with 29 vehicles having radio telephone is available at a fee of Rs.35 for members and
Rs. 100 for non-member. Through a group cattle insurance scheme the animals of the
member are provided insurance coverage to mitigate any unforeseen cattle loss. First aid
veterinary services have been set up by 930 societies. Each has a staff member trained by
the mobile dispensaries. Medicines are supplied by the union at 50% subsidized.
The union’s cattle feed plant sells a balanced feed concentrate at cost price, to
ensure better nutrition for animals. In 1994-95 the union sold 1, 44,181 tons of cattle feed
through its societies. In order to provide low cost high energy feed, a urea molasses lick
(mol-u-min) plant has been set up. The union is probably the first organization in the
country to use the by pass protein technology, manufacture such feed and make it
available to farmers. The union assists the farmers in the cultivation of green fodder also
by arranging high quality fodder seeds. The union also supports enrichment of poor
quality paddy wheat straw by urea treatment.
EDUCATION
The union maintains a constant link with rural producers. Meetings of women
who generally look after the animals are held in village and extension workers explain to
them modern of animal husbandry. Women are also taken on tour the cattle feed plant the
dairy the animal breeding centre. The union publishes a newsletter twice month which
carries write ups in simple Gujarati on animal husbandry, quality control of milk and the
co-operative movement. The union continually guides and supervises the societies so that
they remain efficient, viable and strong. The accounts of the societies are audited by the
state government audit cell. Welfare activities for member, two scholarships are given
AMULTHE TASTE OF INDIA
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every year to outstanding children of members or the union staff for courses in veterinary
and dairy sciences. Under the group gramin personal accident policy the member and
spouse are insured by the union.
SOCIAL CHANGE
The milk co-operative in the villages of Kaira are contributing in their own way
to various desirous social changes. Democratic traditions are taking root with yearly
elections to the Management Committee. Farmer –members become aware of their rights;
they also learn the value of electing the right people. When milk producers from diverse
social and economic groups come together twice every day at the milk collection centre
old barriers based on inequalities begin top break down. Exposures to various modern
technologies have an educational effect. Those who visit artificial insemination centre
learn the facts about pregnancy, and family planning messages become easier to grasp. At
the cattle feed plant villagers absorb lesson in nutrition. Similarly the preventive
vaccinations of cattle have led to greater acceptance of vaccination in children. Milk co-
operative have created more jobs and incomes in Kaira villages. The beneficiaries have
no pressing need to migrate to towns.
Milk income has added a new confidence and created a better status for women
who look after the animals. Independent studies have shown that as high as 48 percent of
the income of the rural house holds in the Kaira district is derived from dairying. And it
has made a difference to their standard of living and their social status. Amul has
demonstrated that farmer’s societies can employ professionals, make use of modern
technology and harness market forces to serve their ends without disturbing the agro-
system. To be a small producer is no disadvantage. Under the social concept of co-
operative dairying there is a greater chance of rural development to leading to the
empowerment of the poor and the lower.
A LARGER RESPONSIBILTY AMUL
THE TASTE OF INDIA15
The Kaira district co-operative milk producers’ union was a pioneer. And it was
successful. Thus it comes to be regarded as a model. With this recognition came larger
responsibilities. When milk producers in other district of Gujarat started their co-
operative, they turned to Kaira union for help and guidance. Anand’s experience in
project planning and execution.
The Ahmedabad municipal dairy (which has been taken over by dairy development )
the Gujarat Government ‘s Rajkot dairy (which is now being managed by the co-
operative union) and dairies of the Mehsana district co-operative union milk producers
union ltd. and one of the Baroda district co-operative milk producers union ltd. were
among the project executed with Kaira union’s technical kelp. The Kaira union also
started a training program for dairy and animal husbandry personnel. In 1964, the then
prime minister of India, late Lalbahaduar Shatri visited Anand to inaugurate the union
cattle feed plant. He desired that co-operative on the Anand pattern should be set up
thought the country. The National Dairy Development Board (NDDB) was thus set up in
Anand 1965. NDDB drew up the program ‘operation flood ‘to replicate the several milk
sheds of the country. The implementation of the program started in 1970-71. Heavy
reliance was placed on the expertise of the Kaira union.
In each area NDDB deployed a spearhead team consisting of specialists who were
fully conversant with the Anand pattern. The liaison between the NDDB spearhead team
and the workers of the project area invariably started with a training program at Anand.
The creation of more ‘Anand’ was recommended under World Bank projects in
Karnataka, Madhya Pradesh and Rajasthan also. In these project as well, Kaira union
served as “live laboratory” and NDDB as the multiplier. The Anand pattern of co-
operative dairying is now being replicated in all the states and union territories of India.
By March 31st, 1995, there were 69875 village dairy co-operatives established in 170
milk sheds, with a total membership of 8.9 million farmers. Similar co-operative are
being established for oilseed cultivators, fruit and vegetable farmers and small-scale salt
makers and tree growers.
AMULTHE TASTE OF INDIA
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AMUL
The moppet who put Amul on India's breakfast table
50 years after it was first launched, Amul's sale figures have jumped from 1000
tones a year in 1966 to over 25,000 tones a year in 1997. No other brand comes even
close to it. All because a thumb-sized girl climbed on to the hoardings and put a spell on
the masses.
Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old
housewife is out in the balcony drying clothes. From her second floor flat she can see her
neighbors on the road. There are other people too. The crowd seems to be growing larger
by the minute. Unable to curb her curiosity Sheela Mane hurries down to see what all the
commotion is about. She expects the worst but can see no signs of an accident. It is her
four-year-old who draws her attention to the hoarding that has come up overnight. "It was
the first Amul hoarding that was put up in Mumbai," recalls Sheela Mane. "People loved
it. I remember it was our favorite topic of discussion for the next one week! Everywhere
we went somehow or the other the campaign always seemed to crop up in our
conversation."
Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you,
from strategically placed hoardings at many traffic lights. She is the Amul moppet
everyone loves to love (including prickly votaries of the Shiv Sena and BJP). How often
have we stopped, looked, chuckled at the Amul hoarding that casts her sometime as the
coy, Shri Madhuri, a bold sensuous Urmila or simply as herself, dressed in her little polka
dotted dress and a red and white bow, holding out her favorite packet of butter.
AMULTHE TASTE OF INDIA
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For 30 odd years the Utterly Butterly girl has managed to keep her fan following
intact. So much so that the ads are now ready to enter the Guinness Book of World
Records for being the longest running campaign ever. The ultimate compliment to the
butter came when a British company launched butter and called it Utterly Butterly, last
year. It all began in 1966 when Sylvester DaCunha, then the managing director of the
advertising agency, ASP, clinched the account for Amul butter. The butter, which had
been launched in 1945, had a staid, boring image, primarily because the earlier
advertising agency which was in charge of the account preferred to stick to routine,
corporate ads.
In India, food was something one couldn't afford to fool around with. It had been
taken too seriously, for too long. Sylvester DaCunha decided it was time for a change of
image. The year Sylvester DaCunha took over the account, the country saw the birth of a
campaign whose charm has endured fickle public opinion, gimmickry and all else. The
Amul girl who lends herself so completely to Amul butter, created as a rival to the Polson
butter girl. This one was sexy, village belle, clothed in a tantalizing choli all but covering
her upper regions. "Eustace Fernandez (the art director) and I decided that we needed a
girl who would worm her way into a housewife's heart. And who better than a little girl?"
says Sylvester DaCunha. And so it came about that the famous Amul Moppet was born.
That October, lamp kiosks and the bus sites of the city were splashed with the
moppet on a horse. The baseline simply said, thorough bread, Utterly Butterly Delicious
Amul. It was a matter of just a few hours before the daCunha office was ringing with
calls. Not just adults, even children were calling up to say how much they had liked the AMUL
THE TASTE OF INDIA18
ads. "The response was phenomenal," recalls Sylvester daCunha. "We knew our
campaign was going to be successful." For the first one year the ads made statements of
some kind or the other but they had not yet acquired the topical tone. In 1967, Sylvester
decided that giving the ads a solid concept would give them extra mileage, more dum, so
to say. It was a decision that would stand the daCunha in good stead in the years to come.
In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna
movement, Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative
team working on the Amul account came up with a clincher -- 'Hurry Amul, Hurry
Hurry'. Bombay reacted to the ads with a fever that was almost as devout as the Iskon
fever. That was the first of the many topical ads that were in the offing. From then on
Amul began playing the role of a social observer. Over the years the campaign acquired
that all-important Amul touch. India looked forward to Amul's evocative humor. If the
Naxalite movement was the happening thing in Calcutta, Amul would be up there on the
hoardings saying, "Bread without Amul Butter, cholbe na cholbe na (won't do, won't do).
If there was an Indian Airlines strike Amul would be there again saying, Indian Airlines
Won't Fly Without Amul.
There are stories about the butter that people like to relate over cups of tea. "For
over 10 years I have been collecting Amul ads. I especially like the ads on the backs of
the butter packets, "says Mrs. Sumona Varma. What does she do with these ads? "I have
made an album of them to amuse my grandchildren," she laughs. "They are almost part of
our culture, aren't they? My grandchildren are already beginning to realize that these ads
are not just a source of amusement. They make them aware of what is happening around
them." Despite some of the negative reactions that the ads have got, daCunha have made
it a policy not to play it safe. There are numerous ads that are risqué in tone. "We had the
option of being sweet and playing it safe, or making an impact. A fine balance had to be
struck. We have a campaign that is strong enough to make a statement. I didn't want the
hoardings to be pleasant or tame. They have to say something," says Rahul daCunha.
"We ran a couple of ads that created quite a fur ore," says Sylvester daCunha.
"The Indian Airlines one really angered the authorities. They said if they didn't take down
AMULTHE TASTE OF INDIA
19
the ads they would stop supplying Amul butter on the plane. So ultimately we
discontinued the ad," he says laughing. Then there was the time when the Amul girl was
shown wearing the Gandhi cap. The high command came down heavy on that one. The
Gandhi cap was a symbol of independence; they couldn't have anyone not taking that
seriously. So despite their reluctance the hoardings were wiped clean. "Then there was an
ads during the Ganpati festival which said, Ganpati Bappa More Ghya (Ganpati Bappa
take more). The Shiv Sena people said that if we didn't do something about removing the
ads they would come and destroy our office. It is surprising how vigilant the political
forces are in this country. Even when the Enron ads (Enr On Or Off) were running,
Rebecca Mark wrote to us saying how much she liked them."
There were other instances too. Heroine Addiction, Amul's little joke on Hussain
had the artist ringing the daCunhas up to request them for a blow up of the ad. "He said
that he had seen the hoarding while passing through a small district in UP. He said he had
asked his assistant to take a photograph of himself with the ads because he had found it
so funny," says Rahul daCunha in amused tones. Indians do have a sense of humour, after
all.
From the Sixties to the Nineties, the Amul ads have come a long way. While most
people agree that the Amul ads were at their peak in the Eighties they still maintain that
the Amul ads continue to tease laughter out of them. Where does Amul's magic actually
lie? Many believe that the charm lies in the catchy lines. That we laugh because the
humour is what anybody would enjoy. They don't pander to your nationality or certain
sentiments. It is pure and simple, everyday fun.
AN OVERVIEW OF GCMMF LIMITED
Gujarat co-operative milk marketing federation established in November, 1973
is a co-operative organization jointly owned by 2.6 million milk producers with annual
sales turnover of Rs 4277.84 crores (42.77)billion) in 2006-07 . GCMMF in corporate
more then 12,700 village producers’ co-operatives affiliated to 13 district co-operatives
AMULTHE TASTE OF INDIA
20
milk producers union. GCMMF has 16 affiliated dairy plant with total capacity of 10.16
million litres per day and milk drying (powder manufacturing) capacity of 594 MTs per
day. GCMMF markets a wide range of dairy products under the brand names of the Amul
and Sagar. The product categories are infrant Milk food, Skimmed milk powder, Instant
Cream milk powder, dairy whitener , table butter, cheese, cheese spread, ghee, sweetened
condensed milk, chocolates, malted milk food ,blended bread-spread, fresh milk, dahi,
ice cream and ethnic Indian sweets like shrikhand and gulabjamun. GCMMF is also the
largest exporter of dairy products and its products are exported to USA, middle east,
Singapore and other far east markets and neighboring countries like Bangladesh, Sri
Lanka etc.
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food
products marketing organization. It is a state level apex body of milk cooperatives in
Gujarat which aims to provide remunerative returns to the farmers and also serve the
interest of consumers by providing quality products which are good value for money.
Members: 13 district cooperative milk producers' Union
No. of Producer Members: 2.79 millionNo. of Village Societies: 13,328Total Milk handling capacity: 11.22 million litres per dayMilk collection (Total - 2008-09): 3.05 billion litresMilk collection (Daily Average 2008-09): 8.4 million litres
Milk Drying Capacity: 626 Mts. per dayCattle feed manufacturing Capacity: 3500 Mts per day
As you may be aware, Gujarat co-operative milk marketing federation limited is also one
of the India’s largest food company having an annual turnover in 2007-08 above Rs.5000
crores. This is an out come of collective wisdom of some 20 lacs milk producers of
Gujarat who have joined hands to carve out a premier co-operative organization which
AMULTHE TASTE OF INDIA
21
has built such a valuable brands known as Amul and sagar, over a period of 50 years. I
hope to turn the magic figure of Rs 10000 crores by the year 2005. At present, GCMMF
has 12 member union and their respective dairy co-operative societies made famous by
the much acclaimed Anand pattern of co-operatives. The pattern envisages dairy co-
operative at level a processing unit called union at the district level and these are
federated at the state level. Today there are 20 lac farmers forming 10 thousand village
dairy co-operative which gives a tremendous strength to the ‘Amul‘saga.
Strength of GCMMF is the following:
I see ourselves as business of the development not just marketing. Development,
be it of products, people or process. The spirit of development can be seen and
felt in everything that I do. Marketing is simply our tool to achieve our ultimate
objective-human development.
A willingness to put in good solid hard work and be innovative in our work.
An office culture which is steeped in camaraderie and encourages every one to
take responsibility.
Having people who have contributed their best in whatever they have done, no
matter how lowly or how surmounting the task might have been.
An ability to just hang in there and bear adversity.
Federation as all commonly refer to GCMMF as, infect this one word is nothing short of
a password here in Anand, is classical example of a co-operative organization having its
own culture and philosophy. I might be short in people, space, computer or time but I are
never short encouraged! And despite the handicaps I are growing at more than 20% each
year, no mean achievement any way you look at it.
VISSION
AMUL’s vision is to provide more and more satisfaction to the farmers and their
consumers. As employees and distributors, those are also the hands of Amul. They
believe that four hands are the greatest strength. They should co-ordinate with each other,
and Amul wants to maintain No.1 position.
AMULTHE TASTE OF INDIA
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GCMMF‘s mission statement
Reiterates our endeavor to satisfy the taste and nutritional requirement of the customers
of the world, through excellence in marketing by our committed team of professionals.
Besides through co-operative net working, I strive endlessly to offer quality products that
provide best value for money. Try to inculcate it as much as you can – you will never be
sorry having done so because success goes to not the one who is the fastest or strongest
but to the one who says-
And always remember – “The secret to success on the job is to work as though you
were working for your self. Your company provides you with the work area,
equipment and other benefits, but basically you know what has to get done and best
way to do it, so it’s up to you to run your own show.”
THE ORGANIZATION
BOARD OF DIRECTORS
BOARD OF DIRECTORS
1. Shri Ramsingh P. Parmar Chairman
2. Shri Rajendrasinh D. Parmar Vice Chairman
3. Shri Shivabhai M. Parmar Director
4. Shri Maganbhai G. Zala Director
5. Shri Chandubhai M. Parmar Director
6. Shri Pravinsinh F. Solanki Director
7. Shri Dhirubhai A.Chavda Director
8. Shri Bhaijibhai A. Zala Director
9. Shri Mansinh K.Chauhan Director
10. Shri Bipinbhai M.Joshi Director
AMULTHE TASTE OF INDIA
23
11. Smt. Madhuben D. Parmar Director
12. Smt. Sarayuben B. Patel Director
13. Shri Ranjitbhai K. Patel Director
Shri B. M. Vyas
(M.D. of GCMMF, Anand)
Shri Rahulkumar Shrivastav
(M.D. of KDCMPUL, Anand)
Shri Deepak Dalai (District Registrar)
Kaira District Central Co-operative Bank
U.T.I. Bank
State Bank of India
Bank Of Baroda
Bank Of Maharastra
Corporation Bank
AuditorB.B.Bhabhor
Special Auditor (Milk), Milk Audit Office, Anand
Foundation and Inauguration :
Dr. Rajendra Prasad, the president of India laid the foundation on
November 15, 1954. On October 31St 1955 Jawahailal Nehru, the prime minister
of India declared it open.
AMULTHE TASTE OF INDIA
24
STRUCTRE OF Employee
MANAGING DIRECTOR
GENERAL MANAGER
ASSITANT GNERAL MANAGER
MANAGER
DEPUY MANAGER
ASISTANT MANAGER
SR.EXECUTIVE
AMULTHE TASTE OF INDIA
25
JU. EXECUTIVE
THE PRODUCT OF THE GCCMMFBread Spreads
Amul ButterUtterly Butterly Delicious
Amul LiteLow fat, low Cholesterol Bread Spread
Milk DrinksAmul Kool Millk Shaake
Amul Kool
Amul Kool Cafe Kool KokoA delight to Chocolate Lovers. Delicious Chocolate taste
Nutramul Energy DrinkA drink for Kids - provides energy to suit the needs of growing Kids
Amul Kool Chocolate Milk
Amul Kool Flavoured Bottled Milk
Amul Kool Flavoured Tetra Pack
AMULTHE TASTE OF INDIA
26
Amul Masti Spiced ButtermilkAmul introduces the Best Thirst Quenching Drink
Amul Kool Thandai
Powder MilkAmul Spray Infant Milk FoodStill, Mother's Milk is Best for your baby
Amul Instant Full Cream Milk PowderA dairy in your home
Sagar Skimmed Milk PowderWhich is especially useful for diet preparations or for use by people on low calorie and high protein diet.
Sagar Tea Coffee Whitener
Amulya Dairy WhitenerThe Richest, Purest Dairy Whitener
Amul Fresh Cream Amul Shakti Toned Milk
Amul Calci+
AMULTHE TASTE OF INDIA
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Fresh Milk
Amul Fresh MilkThis is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience.
Amul Gold Milk
Amul Taaza Double Toned Milk
Amul Lite Slim and Trim Milk
Amul Fresh Cream Amul Shakti Toned Milk
Amul Calci+
AMULTHE TASTE OF INDIA
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Cheese
Amul Pasteurised Processed Cheese100% Vegetarian Cheese made from microbial rennet
Amul Cheese SpreadsTasty Cheese Spreads in 3 great flavours..
Amul Emmental CheeseThe Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma
Amul Pizza Mozzarella CheesePizza cheese...makes great tasting pizzas!
For Cooking
Amul / Sagar Pure GheeMade from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience.
Cooking Butter
Amul Malai PaneerReady to cook paneer to make your favourite recipes!
Utterly Delicious Pizza
AMULTHE TASTE OF INDIA
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Mithai MateSweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste.
Masti Dahi
Desserts
Amul Ice CreamsPremium Ice Cream made in various varieties and flavours with dry fruits and nuts.
Amul ShrikhandA delicious treat, anytime.
Amul Mithaee Gulab JamunsPure Khoya Gulab Jamums...best served piping hot.
Amul ChocolatesThe perfect gift for someone you love.
Amul Lassee Amul Basundi
Health Drink
AMULTHE TASTE OF INDIA
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NutramulMalted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.
LIST OF PRODUCTS MARKETED:
Breadspreads:
Amul Butter
Amul Lite Low Fat Breadspread
Amul Cooking Butter
Cheese Range:
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese
Amul Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese)
Mithaee Range (Ethnic sweets):
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
Amul Amrakhand
AMULTHE TASTE OF INDIA
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Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamun Mix
Amul Mithaee Kulfi Mix
Avsar
UHT Milk Range:
Amul Shakti 3% fat Milk
Amul Taaza 1.5% fat Milk
Amul Gold 4.5% fat Milk
Amul Lite Slim-n-Trim Milk 0% fat milk
Amul Shakti Toned Milk
Amul Fresh Cream
Pure Ghee:
Amul Pure Ghee
Sagar Pure Ghee
Amul Cow Ghee
Infant Milk Range:
Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 ( 6 months above)
Amulspray Infant Milk Food
Milk Powders:
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener
AMULTHE TASTE OF INDIA
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Sweetened Condensed Milk:
Amul Mithaimate Sweetened Condensed Milk
Fresh Milk:
Amul Taaza Toned Milk 3% fat
Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardised Milk 4.5% fat
Amul Slim & Trim Double Toned Milk 1.5% fat
Amul Saathi Skimmed Milk 0% fat
Amul Cow Milk
Curd Products:
Yogi Sweetened Flavoured Dahi (Dessert)
Amul Masti Dahi (fresh curd)
Amul Masti Spiced Butter Milk
Amul Lassee
Amul Icecreams:
Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)
Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted
Almond)
Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry,
Black Currant, Santra Mantra, Fresh Pineapple)
Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch,
Megabite, Cassatta)
Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)
Chocolate & Confectionery:
AMULTHE TASTE OF INDIA
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Amul Milk Chocolate
Amul Fruit & Nut Chocolate
Brown Beverage:
Nutramul Malted Milk Food
Milk Drink:
Amul Kool Flavoured Milk (Mango, Strawberry, Cardamom, Rose, Chocolate)
Amul Kool Cafe
THE CODE OF THE PRODUCT HAS BEEN USE IN THE ORGANISATION:
Product code Product
ASP AMULSPRAY
AMY AMIULY
WMP WHOLE MILK POWDER
CHE CHEESE
SHK SHRINKHAND
ALT AMUL LITE
ABT AMUL BUTTER
NUT NUTRAMAL
PAN PANEER
AGH AMUL GHEE
SGH SAGAR GHEE
CHS CHEESE SPREAD
CHP CHEESE POWDER
EMM EMMENTAL CHEESE
SMD SAFAL MANGO DRINK
UHT UHT MILK
AMULTHE TASTE OF INDIA
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BTM BUTTER MILK
FLM FLAVOURD MILK
MLK MILK
MFJ MIXED FRUIT JAM
STK SAFAL TOMATO KETCH UP
DPS DELICIOUS PAV BHAJI SPREAD
STC SAGAR TEA COFFEE WHITENER
MZC MOZZRELLA CHEESE
IMM INSTANT MILK POWDER
SCM SWEETENED CONDENSED MILK
CHO CHOCOLATE
AGJ AMUL MITHAEE GULABJAMUM
Department
1. TOTAL QUALITY MANAGEMENT 2. INFORMATION SYSTEM DPARTMENT3. MARKETING 4. HO- ACCOUNTING 5. PURCHASE DEPARTMENT6. ICE CREAM CELL7. MILK CELL8. PERSONAL AND HUMAN RESOURCE9. MARKETING DESPATCH10. QUALITY ASSURANCE DEPARTMENT
FUNCTION OF PRODUCTion OFFICERSThe wonderful creature that the product officer is, he/she has a lot of responsibility on
his/her young shoulders! I list down some of these. The list is by no means exhaustive
and is just indicative! PO’s are to update it in their minds!!
1. DAILY MANAGEMENT
1.1. Monitoring product wise and pack wise sales in all depots for his product
1.2. Monitoring product wise and pack wise dispatches to all depots from his AMUL
THE TASTE OF INDIA35
member union
1.3. Monitoring and coordinating products wise production at member union
1.4. Ensuring that no stock out occurs in any product pack by ensuring minimum
inventory at depots
1.5. Contingency management by trouble shooting specific depots problem as
and when they arise in above matters
1.6. Providing support to the depots in the form of approvals for promotions,
scheme by getting necessary MD approval, drafting circular and dispatching
same
1.7. Depot correspondence for any correspondence a minimum of three copies is
to be taken
One for the addressee
One for dispatch- master copy
One for you-office files copy
One for CC to (optional)
Each correspondence should have dispatch number from dispatch department
1.8. Competitor activity compilation in file
1.9. Any other task which MD/AGM/GPM might give for the day
2. WEEKLY MANAGEMENT
2.1. Every 11th /12th of month sales and stock figures fro CMCY and CMPY
should go to MD for perusal
2.2 weekly reminders to depots on their sales and stock through e-mail identifying
depots which are minus on sales and urging them to meet their targets for the
month
2.3 pending issues from the previous week
2.4 monitoring sales/stock/dispatches/pending dispatches for his product
AMULTHE TASTE OF INDIA
36
3. MONTHLY MNAGEMENT
3.3 Indent –allocation on every month 25 onwards
3.2 brand performance report for MD
3.3 communicating shortfall if any in indent v/s production to member union and
shot fall in targeted sales v/s achieved sales depots
3.4 monitoring trade schemes/BTL Activities /consumer schemes
3.5 new product development reviews
3.6 communicating advertising schedule to depots from time to time
3.7 developments of packaging and pop material for the existing brands and new
products to be launched/ revamped in close co-ordination with MUc/QC
Depts. / and liasioning with advertising agency
3.8 requisite market research for the brand
3.9 PCM planning and brand presentation
3.10 sales Patti compilation in case of SSA products
4. TQM ACTIVITIES
4.1 small group activities
4.2 kaizen recording
4.3 other related TQM activities coordinated through HRD department
5. ANNUAL MANAGEMENT ACTIVITIES
5.1 NPD launched plan
5.2 annual trade scheme/BTL/POP calendars
5.3 annual advertising plans
5.4 annual marketing plans
5.5 fixing annual sales targets
5.6 hoshin kanri preparation every six months
AMULTHE TASTE OF INDIA
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Content…………………
Tqm initiatives
Gcmmf roadmap
Amul quality circle
Quality initiatives at member dairies
Scope of total quality management
AMULTHE TASTE OF INDIA
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TOTAL QUALITY MANAGEMENT WHAT IS THE TQM?
Total quality management can be defined as an organization –wide effort to
develop systems, tools, techniques skill and the mindset to establish a
quality assurance system that is responsive to the emerging market needs.
Such an effort will provide distinctive advantages to a firm and will enable it
to compete effectively in the market.
WHY TOTAL QUALITY MANAGEMENT?
Response better to customer
Improve management efficiency
Product
Service
THE TQM MODEL
AMULTHE TASTE OF INDIA
39
TQM
INITIATIVES
Values /
initiatives
Hoshin knri
ASC/BRM/ Friday
meetings
ISD-AQC
SGA
Kaizen
House
keeping
GCMMF TQM ROADMAP AMUL
THE TASTE OF INDIA40
IMPROVEMENT
TWE
TEI TQC
MISSION VISION STRATEGY
Appreciative enquiry & proposal
By ECS
September/October 94
MOC I& 2 awareness
Programme
December 94 & January 95
Training the trainee February 95
Cascading of MOC March / April 95
Kaizen May 95
SGA July 96
OCS June 96
Hoshin Kanri January 97
Amul quality circles October 97
AMUL QUALITY CIRCLE 3600 GCMMF Distributor
AQC used as a tool for business consultancy to wds to improve their
distribution efficiency
An excellence review forum for monitoring
Sharing of success stories
FUNCTION OF AMUL QUALITY CIRCLE
Trained around 200 sales executive as internal consultants
These consultants trained around 3600 distributors
These AQCs meet on 3rd Saturday of every month at a WD location
GCMMF FFRs are the facilitators for this meeting
Depots have specific agenda for this meeting
In addition to the above , ho-distribution dept. also sends HO AQC
agenda to all depots for the above meeting
Venue of meeting is decided basis so that each WD gets a chance to the
meeting
AMULTHE TASTE OF INDIA
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AQC an excellent forum for dissemination of information, policies,
strategies.
AQC used as a forum for cascading quality initiatives like kaizen , house
keeping
AQC used for solving pain areas in the market through self-leadership
ORGANIZATION CLIMATE SURVAY
Survey conducted among all employees to identify pain areas. The
performance appraisal system (leads) has been redesigned based on the feed back
ELEMENTS OF ORGANIZATION CLIMATE SURVEY
Total quality management
Communication
Recognition
Leadership
External customer orientation
Accountability
Rewards
Career development
Development
Performance appraisal
Creativity
Team work
Job content
Inter personal relationship
Discipline
Belongingness
Quality of work life
Social security
Working condition
AMULTHE TASTE OF INDIA
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QUALITY INITIATIVES AT MEMBER DAIRIES Formation of member union steering council of TQM
Regular monitoring of initiatives at the member union steering council
Provided consultancy on
Appreciative inquiry
Kaizen
House keeping
SGA
VMS (vision mission strategy) workshop
QUALITY ACCREDITION
10 milk union have received ISO- 9000 certification
250 villages societies have got the ISO- 9000 certification
Mother dairy Gandhinagar has received ISO – 14000 and ISO- 9000
certification
3 milk union have received ISO- 14000 certification
SCOPE OF TOTAL QUALITY MANAGEMENT
AMULTHE TASTE OF INDIA
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KEY LEARNING TQM is a management led , never ending process in which top
management commitment is successful
Improvements are very often intangible. Therefore , faith plays an
important role AMUL
THE TASTE OF INDIA44
There are always more non-believers than believers
There is always a tendency to go back to the old ways
TQM is like trying to change the tyre while the car is running.
There is never enough time or people
When people stop talking about TQM , it is the first sign that TQM
has taken root
The time to start is right now
Content ………………..
Key activities
Recruitment
Training and competency development
Compensation management
Performance management
Facilitating change management and tqm programs
AMULTHE TASTE OF INDIA
45
PERSONNEL AND HUMAN RESOURCE DEVELOPMENT
What is personnel and human resource management?
HRM is a management function that helps organization to recruit,
select, train, develop and manage its members. Simply stated, HRM is all about
management of people in the organization from Recruitment to Retirement. HRM refers
to set of programs, functions, and activities designed and carried out in order to maximize
both employee as well as organizational effectiveness.
Definition - “HRM is planning, organizing, directing and controlling of the procurement,
development, compensation, integration, maintenance and separation of human resources
to the end that individual, organizational and social objectives are accomplished.”
Our goal is to integrate the individual employee in the culture of
the organization , and provide him/ her job satisfaction , job
enrichment and quality of working life
To ensure this I strive attract and retain quality manpower by
recruiting the best talents and developing the required
competencies keeping in mind their roles and responsibilities. I
would continue to facilitate the quality movement in the
organization.
SKEY ACTIVITIES Recruitment
AMULTHE TASTE OF INDIA
46
Training and competency and development
Manpower planning and redeployment
Competency mapping
Structuring of benefit programs and employee related policies
Operational HR activities
Facilitate change management and TQM programs
Measurement and audit
Compensation management
Performance management
RECRUITMENT Front line sales and staff recruitments decentralized
Recruitment guided by the organization recruitment policy
Executive, middle and senior management recruitment done
centrally from corporate head office
To provide flexibility to organization and to meet manpower
needs, I have entered into secondary sales force out sourcing with
MA Foi on trial basis
Use campus visit and multiple screening process to recruit
competent talent
TRAINING AND COMPETENCY DEVELOPMENT Induction training
External training
Competency development for sales force
Development centre for senior managers for generic competency
development
TQM training
MAN POWER PLANING AND REDEPLOYMEWNT 5 year man power plan, reviewed annually through a manpower
planning exercise
Redeployment and recruitment needs are identified
Accordingly recruitment plan is made
AMULTHE TASTE OF INDIA
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STRUCTURE OF BENEFIT PROGRAMMS AND EMPLOYEE RELETED POLICIES
Policies for housing loan , vehicle and soft furnishing loan
Policies for lien , where in employees can retain employment with
GCMMF for the a period of 1-2 years, while working in another
organization in the sector or while going for advanced studies
Provision of official vehicles and health insurance for senior
management etc.
COMPETENCY MAPPING Functional competencies have been identified
Generic competencies have been mapped for top management
place
Competencies mapping for other function is underway
OPERTIONAL HR ACTIVITIES Operational issues like transfer letter , promotion , confirmation,
appointment , reappointment etc.
Implementation of EAIS HRM module. Personnel records and
service history of employees are available online
MEASUREMENT AND AUDIT (through OCS, performance audit etc.)
Organizational climate surveys carried out in 1995, 2000 and 2006.
Performance audit exercise carried out in the year 2000
COMPESATION MANAGEMENT Compensation revision carried out in the year 2006
Implemented the first organizational performance linked incentive
scheme in the year 2002-03
AMULTHE TASTE OF INDIA
48
Performance incentive scheme is linked to organizational
performance in terms of sales turnover growth over previous year.
Incentive amount is graded based on sales growth and grade of
employees to ensure differentiation between high depots and low
performing ones
100 % of consumer packs sales and 10 % of bulk sales are
considered for PI distribution to ensure focus on consumer pack
sales.
PERFORMANCE MANGEMENT
Leads is based on PDCA cycle
Begin with performance planning , followed by mid year review
and identification of developmental needs and concludes with a
year end evaluation and identification of training needs
Performance planning meeting begins again with last year data as
one of the inputs
Vertical integration through Hoshin Kanri meeting
LEADS primarily for development purpose, through referred to
during promotion
FACILITATING CHANGE MANAGEMENT AND TQM PROGRMS
AMULTHE TASTE OF INDIA
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AMULTHE TASTE OF INDIA
50
TWE
TEI TQC
MISSION VISION STRATEGY
CONTENT……………………..
Definition
Marketing enviornment
Market mix
The marketing function
Structure of the marketing function
Managing brand planning equity
MARKETING DEPARTMENT :
AMULTHE TASTE OF INDIA
51
Marketing is very important function in any industry. Every company has to handle its marketing function with care. As the whole world is turning into a global market, marketing function is getting more and important in every company. The term marketing is changing in the world. Now selling product by advertising, it is not only the function of marketing. But in this new world marketing puts weight age on satisfying consumer needs. If the market does a god job understanding consumer needs, develops product that provide superior value and price, distributes and promotes them effectively. These products will sell very easily. The marketing function at GCMMF aims to understand the taste and nutritional requirements of the customers of the world and strives to satisfy these requirements with food-products of the best quality and at the most reasonable prices. DEFINITION OF MARKETING:
“Need and want through creating, offering, and exchanging products and value with others.”
MARKETING ENVIRONMENT:
The broad environment consists of demographic environment, economic environment, natural environment, technological environment, political and legal environment, and socio-cultural environment. Marketer must pay close attention to the trend and development in this environment and make timely adjustment to their marketing strategies.
TARGET MARKETS:
Companies do best when they choose their target market carefully and prepared tailored marketing programs.
COMPETITION:
Competition includes all actual and potential rival offering and substitutes that a buyer may consider. There are four levels of competition for any company and their following brand, industry, form and generic competition.
ADVERTISING:
Advertising can be traced back to the very beginning of recorded history. Any paid form of non-personal, Presentation and promotion of ideas goods or services by an identified sponsor are known as advertising. Advertising is very important tool to combat competition.
GCMMF success lies in its excellence advertisements in the market. In the beginning GCMMF was nothing that much important on advertisement. But after sometime it
AMULTHE TASTE OF INDIA
52
understand that if it were to enter in the Indian market, it would have to advertisement its product largely in the market so it stated advertisements its products in different media.Just recently it has adopted a new message or slogan that says "Amul, The taste of India" and GCMMF has recorded 12% rise in the sales of its products. GCMMF has made its products very popular by advertisement in all the parts of India MEDIA SELECTION:
Media selection involves findings the most cost-effective media to deliver the desired number of exposure to the audience.Major Media Types
o News papero Televisiono Radioo Magazineso Internet
Marketing activity of AMUL is performed by GCMMF (Gujarat Co-operative Milk Marketing Federation). Total 90% of AMUL’s products are marketed by GCMMF except liquid milk.Till 1960 AMUL was marketing their product on its own, but there were many problems against such direct marketing and therefore the idea of marketing federation was turned into establishment of GCMMF.
Thus, the federation was established in 12-9-72 for marketing the product of all dairies in Gujarat.
GCMMF has done all the functions of marketing for AMUL. GCMMF sends monthly market requirements data to the unit and accordingly the unit works for the fulfillment of the order.
THE MARKETING FUNCTIONThe marketing function comprises three
Primary sub-function:-
managing brand equity
expanding market size and market share
facilitating business growth through relevant diversification
STRUCTURE KOF THE MARKET FUNCTION
AMULTHE TASTE OF INDIA
53
DISTRIBUTION INFRASTRUCTURE MNAGEMENT
AMULTHE TASTE OF INDIA
GM
AGM MARKETING
SUPPLY CHAIN1ST LEG
COMMODIYMARKETING
BRAND MANAGEMENT
COMMERCIAL
VARIUS PSODUCT MANAGERS, HANDLING DIFFERENT DAIRY –PRODUCT GROUPS
54
curd
khoamilk
ghee
butterothers
WORLD MILK PRODUCTION
0
500
1000
1500
2000
2500
1 2 3 4 5 6 7 8 9 10 11 12
yeartotal buffalo milk
cow milk
INDIA IS WORLD LARGEST MILK PRODUCER
15% OF THE WORLD’S PRODUCTION
COW MILK-35% BUFFALO MILK-65 %
ACCOUNT FOR 17% OF AGRICULTURAL PRODUCTION IN INDIA
LARGEST BOVINE POPULATION -276 MN
CAGR: 4.2 % PER ANNUM
INDIA MILK PRODUCTION TREND
SOUTH
EAST
WEST
NORRTH
Milk utilization pattern
AMULTHE TASTE OF INDIA
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AMULTHE TASTE OF INDIA
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Content ……………………...
What is export?
Gcmmf export performance
AMULTHE TASTE OF INDIA
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EXPORT DEPARTMENT
What is export?
- physical export: when the goods cross the territory of the country
- deemed export : when the goods are sold to a buyer in India and
the buyer in turn dispatches the goods out of country
GCCMF: EXPORT PERFORMANCE 1999-00 RS. 20 CR.
2000-01 RS. 41 CR.
2001-02 RS. 78.5 CR.
2002-03 RS. 73.6 CR.
2003-04 RS. 44 CR.(shortage in domestic market)
2004-05 RS.115 CR.
2005-06 RS.134 CR.
2006-07 RS. 60 CR.(ban on milk powder export)
Winner of 10 consecutive APEDA awards and various other for
excellence in dairy product export
Launch of ethic amul products in developed countries like USA,
SINGPORE , MIDDLE EAST etc.
WEST ASIA
UAE , BAHRAIN ,OMAN ,KUWAIT, SAUDI
AMUL UHT MILK, GHEE,BUTTER,
CHEESE,SLICE,SMP,PANEER,NUTREMUL,SHRINKED&
GULABJAMUN REGULARLY EXPORTED
USA
LAUNCHED IN November 98
AMUL BUTTER
AMUL CHEESE
AMUL SHRINKED
AMUL GULAB JAMUN
AMUL FRIED PANEER
AMULTHE TASTE OF INDIA
58
AMUL MALAI PANEER
Vary encouraging consumer response
South east Asia - Bangladesh ; smp in buck packs, exported on
regular basis
Lunch all amul product in Singapore
FCMP and nutramul to MOD , Myanmar
Launched UHT in SL. HK, Philippines, laos
Bulk SMP to SL , china Singapore Thailand
AUSTRALIA
amul ghee
amul gulabjamun
amul cheese
amul paneer
Africa
export of nutramul south Africa
SMP in 25 kg bags to Uganda, Tanzania and Botswana
A very potential market for future
Exports: sales promotion
advertising in leading papers in gulf
a unique “fly me home “ contest in gulf has given a very good
consumer response
advertising in leading Indian dailies
Zee USA and ZEE middle east
Mode of payment
advance payment
cash against document
document on acceptance
letter of credit
AMULTHE TASTE OF INDIA
59
Content……………………
Goal and objective
Product quality
New product development
Reduction in cost and increase in productivity
Consumer and trade quarries
Granding og product
Market qc survey
Consumer and trade complaints
AMULTHE TASTE OF INDIA
60
QUALITY ASSURANCE DEPARTMENT GOAL AND OBJECTIVES
product quality
new product development
technical up gradation
customer satisfaction
technical support to organization
reduction in cost and increase in productivity
PRODUCT QUALITY
uniformity : benchmarking , uniform testing , methods
consistency : product testing at regular frequency during production,
packaging , before and after dispatch
safety : hygiene audit+ HACCP at all MUs
uniformity : benchmarking , uniform testing , methods
consistency : product testing at regular frequency during production,
packaging , before and after dispatch
safety : hygiene audit+ HACCP at all MUs
product quality
new product development
technical up gradation
customer satisfaction
technical support to organization
reduction in cost and increase in productivity
NEW PRODUCT DEVELOPMENT
Understand customer need
Conception of new product formulation
Trial/testing/feed back/ tuning
Pilot testing / standardization
Launch
PDCA
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TECHNICAL SUPPORT TO ORGANISATION
Packaging material specification
Vendor development process
Storage/ handling guidelines and maintenance
Awareness of product and its usage
Reduction of product and its usage
Reduction in marketing expenses
Up gradation of market hygiene
REDUCTION IN COST AND INCREASE IN PRODUCTIVITY selection of right technology for product manufacturing and packaging
balancing production cost and cost for quality to get the product quality
which is the best value for money
CONSUMER AND TRADE QUARIES
Prepare a report and presentations based on benchmarking and literature
Circulation of relevant literature – member union and depot
GRADING OG PRODUCT Benchmarking of the product standard Product grading Competitors product grading Feed back to marketing department , depots and member union
MARKET QC SURVEY Inspection of storage condition by QCs and suggestion for improvement
to depots and member Packed product examination Stock age examination
CONSUMER & TRADE COMPLAINTS Inspection and verification of complaint Correspondence with customers Liaison with depot for settlement Liaison with MUs and depot for technical guidance Corrective/ preventive measures MIS
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Content ………………………
Purchase finalization of pkg. for member union
Monitoring of supplies
New pack development and introduction
Scanning the marketing
Visit to suppliers
Inventory of packaging material at member union
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PURCHASE DEPARTMENT
PURCHASE FINALIZATION OF Pkg. MTRL. FOR MEMBER UNION
Indent and performance evaluation reports from dairies for
suppliers/indent from marketing department
Approval of list of suppliers for sending enquiry on data on firm
list
Approval of specification
Floating of enquiry
Comparative statement
Costing
Back up data
Proposal to purchase committee
Rate approval letter
EMD/ST handling
MONITERING OF SUPPLIES
Placing of purchase order by dairies
Timely deliveries
Timely release of payment
Quarterly supply position
Coordination/follow up with MUs
Coordination/follow up with suppliers
NEW PACK DEVELOPMENT AND INTRODUCTION
Identify packing material requirement
Formulation of specification
Obtain confirmation from marketing/qc/member union for
specification
Design/art work approval from marketing
Obtain 1/3 quotations for MDs approval
Release of ral for trail order
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Coordinating with marketing dept. and QC dept. for printing
design, printability etc.
Follow up feed back
Modification, up gradation in spcn, material, supplies if required
SCANING THE MARKETING
Scanning of information from publication and periodical
Meeting new vendors
Attending of different packaging / purchasing conference
Develop contact and to feel the pulse of the industry
Undergoing short and long term training program at iip,
ipcl,irma,iim etc
VISIT TO SUPPLIERS
To scan the infrastructure facilities and technical know how
available
To ensure facilities are as per requirement and best in the country
To ensure raw material are used as per our requirement
To ensure that the production processes are as per our requirement
To study the capability of new vendors before their regn. On our
list
To asses competitors or other industries packaging material/de
To asses off takes of competitors/ other organization indifferent
packaging material which will give us an ideas of their competitors
sale
INVENTORY OF PACKAGEING MATERIAL AT MEMBER UNION
JUST IN TIME / MOQ ETC.
PRODUCTION PLANING AND MONTH WISE PRODUCT
ALLOCATION IN PCM
VENDOR SELECTION
VENDOR DEVELOPMENT
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Content ……………………
Branch account and book processing
Finalization of account /budget review
Ho-payment
Milk pool
Providing fund trust account
Pay roll
Taxation
Internal audit and statutory audit
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HO – ACCOUNTS DEPARTMENT
BRANCH A/C AND BOOK PORCESSING
To receive disbursement a/c and sales record from all depots
To pass merging entries in the books of account
Ledger processing. Reconciliation of branch/ depot account
FINALISATION OF ACCOUNTS/BUDGET REVIEW
Roll up EIAS data/ grouping and finalization of profit and loss a/c
and balance sheet
Prepare quarterly/annual accounts including projections
Prepare budget review statements
Scrutinize expenses with budget provisions
Prepare operating income statement
HO-PAYMENTS
To prepare payment vouchers/jv for making payment to wards
advertisement expenses, local conveyance, services purchase of
miscellaneous items
To check the payment of bills with contract/ purchase orders
To coordinate in finalization of account
Asset accounting /EMD/SD accounting
MILK POOL
to make advance payment and final payment to MUs in respect of
liquid milk under milk pool
to pass its entries and distribute the difference so arrived through
milk pool to MUs
to prepare MIS data regarding milk, etc
PROVIDING FUND TRUST ACCOUNTS
To keep p.f. a/c of staff
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Invest fund in govt. securities and keep records
To file monthly returns with RPFC as an exempted pf trust
Process loan application and maintain its account
To settle pf a/c of ex-employees
Prepare income and exp. a/c and balance sheet of pf trust
PAY ROLL
To make salary payment for HO employees
To make statutory payment such as professional tax , income tax
and payment of other institution like lic, anandalaya
Deal with LIC on gratuity/group assurance schemes
Settlement of dues and benefits of out going /retired/expired
employees
TAXATION
To file income tax and sales tax returns
To follow up for assessment hearing
Prepare HO sales journal
Reconcile sales tax accounts
INTERNAL AUDIT AND STATUTORY AUDIT
Appointment and renewal of audit firms at all depots
Receive monthly audit report from all auditors and compilation of
audit observation
Compliance of internal audit and statutory audit queries and
pertaining to ho department
Follow up and ensure implementation of suggestions auditors
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Content …………………
Milk chain
It initiatives
Entities identifies by us
Amul ebiz coverage
Service under internet sewa governance initiative
Uniform erp solution for member dairies
EIAS modules covers
Integrated erp system
Amul online erp
Information resource management
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INFORMATION SYSTEM DEPARTMENT
The milk chain
Milk union
gcmmf
Zonal offices
Depots and C&F
Whole sale dealer
Retailer
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IT INITIATIVES
Identified the major entities in the business process of the GCMMF
Came up with suitable IT initiatives to facilitate the exchange of
information and to aid the business strategy
ENTITIES IDENTIFIED BY US
FARMERS
CHILING PLANT
UNION
TRANSPORTAER
MARKETING HO
ZONAL OFFICE
SALES DEPOT OFFICE
GODOWNS
DISTRIBUTER
RETAILER INCLUSIVE AMUL PARLOURS
CONSUMER
AMUL eBIZ COVERAGE
5 MN NET USERS
3000 SCREEN
600 SCREEN + VPN/WAN
DISTRIBUTORS 3000+
RETAILER 500000+
CONSUMERS 20 MILLION +
MEMBER UNION 12 UNITS, 10000+
VILLAGE COOP.10582
FARMERS 22 MILLION
SERVICE UNDER INERNET SEWA GOVERNANCE INITIATIVE
e-mail to farmers
e-public library and games
Astrology and jobs
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job and educational application forms
govt. official forms documents
children club
bus and train time table
Palanpur market yards prices
doctors interaction voice chats/consultancy using web cam at kiosk
auction
agriculture e-question and answers
UNIFORM ERP SOLUTION FOR MEMBER DAIRIES
Process driven oracle e-business suite 11i ERP implementation
Successful implementation at Mehsana Dudhsagar Dairy and
mother dairy Gandhinagar
Inter face with EIAS& web EIAS
Rollout to other dairies is in process now
EIAS MODULES COVERS KEY BUSINESS MODULES
Production planning and control
Sock and dispatch control
Market planning , advertising and promotion
Distribution net work planning
Sales and sales accounting
Commercial
Asset management
Export management
Retail management
Quality control management
Purchase
Bulk direct sale management
SUPPORT MANAGEMENT
Financial accounting
Management accounting
Budgetary control
Payroll and human resource management
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Internal audit management
IS management
Administration
Cooperative service management
INTEGRATED ERP SYSTEM
EIAS developed on oracle d2k
System is platform independent
Use of flat file technology and scheduled online FTP for provide
for priority data transfer
It provide a low cost alternative to the requirement of continuous
connectivity for data transfer
The selected process of core EIAS has been web layered using
three tier architecture with oracle 9Ias
AMUL ONLINE ERP
Web inference for the EIAS developed for extending the reach of the system to
the different participation of the supply chain.
It use the latest 9i oracle application server and front end internet explorer
Developed using oracle form/6i tool
Web enabled EIAS will reduce the time lag between the actual events and data
reception. Now the data will follow physical traveling of the gods from the
manufacturing location to the go down from where they are eventually sent to the
WDs/retailers.
At any given time we can find out the pipeline inventory with complete accuracy.
Suppliers and transport are given log in ids so that they too can log in to the system and
orders, assignment and pending issues.
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INFORMATION RESOURCE MANAGEMENT
THE ISD IS COMPRISED OF 3 FUNCTIONAL GROUPS:
1-USER SUPPORT GROUPS
Facilities to encourage, train and support end users to use
computers directly, generate reports and develop application
Promoting the ISD facilities and benefits at all levels in GCMMF.
Monitoring the effectiveness of system of system developed and
providing feedback to application system group.
2- TECHNIAL SUPPORT GROUP
Technical support group comprises of application system group,
database management group and net work management group
Application system group is responsible for the actual analysis
design, development and testing of the application system in
GCMMF. The primary responsibility of this group includes system
design and development, documentation and testing, system
conversion and migration, inference management and version
control.
Database management group would be the database administrators
for the information dept. the responsibility of this group includes
overall database design and maintenance, regulation of the
software, security of the hard ware in terms of fire, corruption and
hard disk failure.
Since electronic communication net work across GCMMF offices
is vital to GCMMF, the net work management group plays
important role to control and monitor the environment, net work
administration, configuration management and performance
monitoring, planning of net work architecture and up gradation.
3 - FACILITIES AND MAINTENANCE GROUP
The major function of this group is to ensure that hardware and
Software is working satisfactorily
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ensure that ISD is equipped with adequate stationary for printing ,
magnetic media and other items indenting for the same
liaison for insurance and annual maintenance contract for hardware
and software
maintain log down time of equipment
ensure system back up at intervals
plan for crisis management
educate the users on proper usage and handling of equipment
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Content …………………
Purpose
Role of the distribution
Guidelines for dry go down
Guidelines for cold storage
Wholesale dealer proposal
Budgeting
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DISTRIBUTION DEPARTMENT
PURPOSE: to facilities creating necessary infrastructure for efficient flow of our
product across the country in a most cost effective way
To create a database of information for decision making
ROLE OF DISTRIBUTION: All proposal for hiring/ renewal of WC& F are submitted
by depot, duly recommended by zonal manager to distribution.
business handled in MT and cases
existing agreement period
existing remuneration paid: fixed and variable
proposed rate/ remuneration
over all increase in remuneration
validity period
GUIDELINES FOR DRY GODOWN
1. Pallets should be present in good condition.
2. Lighting – tube light preferred.
3. Calibrated thermometer in the go down for daily measurement and recording of
temperature.
4. Proper ventilation for better circulation of air and for preventing
birds/insects/rodents entry.
5. Enough number of exhaust fans to keep the area cool.
6. Stack marking on floor be painted keeping 18th space from wall and leaving
enough space between stacks.
7. Proper bin cards on each stack duly updated with all details.
8. FMFO must be maintained
9. General maintenance like repairs of walls, floor and ceiling.
10. House keeping upkeep.
11. Stock under observation and not for sale must be kept segregated.
12. Faster destruction of complaint stock.
13. Insistence of iron angle and proper loading in case of stock transfers etc.
AMULTHE TASTE OF INDIA
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GUIDE LINES FOR COLD SSTORAGE
1. Temperature of cold storage 0 to 2`availability of data logger
2. chocolate chamber temperature : 16 to 18 c wherever possible
3. pallet should be present in good condition
4. lighting – tube lights preferred
5. temperature should be recorded twice a day and recorded in the log book
6. recorded product temperature at least once month
7. pattern of stacking allow cold air to circulate, making of space for stacking away
from walls
8. bin cards on stock to be properly kept and updated with all details
9. FMFO should maintained
10. exclusion of all smelling items
11. general maintenance like anti fungal paint, repairs of walls
12. house keeping upkeep
13. frequent visits by depot staff, making a report and sending to HO/QC regularly
14. Frequency of fumigation, rodent control, pest control and refilling fo
extinguishers.
15. stock not for sale, faster destruction, stock under complaint should be segregated
WHOLESLE DEALER PROPOSAL
1. Is he distributor really interested in our line?
2. How well established is he?
3. what is his reputation among the trade/
4. What other allied lines does the distributor handle?
5. What is his financial position?
6. What is the territory he covers?
7. What is the manpower?
8. What are its qualities for these activities?
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BUDGETING
Budgeting involves the statement o future plans in specific
numerical terms, usually financial accounts.
The process ads planning and coordinating as well as control.
Basic tool manage our operation.
PROCESS
Sales budget (mkt.dept.)
sending of expenses budget papers to depot
processing of paper by distribution by analyzing each head
prepare a master budget
preparation of board resolution
board recommend to annual general body meeting
AGM approve the budget
Conveying depot wise budget
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Content …………………
Distribution channel
Appointment of wholesale dealer
Structure of sales depot
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SALES DEPOT
Depot has an important place in the whole distribution net work. A typical distribution
channel in GCMMF ltd. is as follow:
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In case of such structure all the entities have their own specific role to play and
they have to be coordinated in terms of tome, transaction and operation, Besides such a
structure reduces the burden of storing or selling a product just on one entity. The depot
also helps in better coordination and provides a link between the consumer and head
office. This is because of the proximity to the market the supply is being made.
In India 52 sales Depot, in Gujarat, there are two depot
1- VAGASI, ANAND
2- AHMEDABAD
THE ANAND DEPOT COVER MADHYA GUJARAT, PANCHMAHAL
AND SOUTH GUJARAT
APPOINTMENT OF WHOLESALE DEALER
As the market share increase the depot in charge may divide the area
under on dealer into two or more area under different dealer. This is done for
better servicing of the retailers. It is taken care that business ode the provides WD
does not suffer to such an extent that he loses interest in the business.
Applications are invited from interested parties for the appointment of WDs. The
application are visited an information of financial stability, previous service
record in similar kind of work are checked. The WDs have to provide bank
guarantee, vehicle for transport, sales man etc. Once the above criteria are
fulfilled the depot gives a preface list short listing the candidates. The head office
has the final say in selecting the WD in consultation with the depot.
The company should also take
physical verification
insurance
product complaint handling
allocation invoice
BAS AND FAS packages
Price working
AMULTHE TASTE OF INDIA
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Terms of payment
Hiring of go down
Field sales representative :
FSR has to fill daily sales report form. The form has been designed to obtain
information about the stock position of the product in the various retail outlets. also keeps
a tab on competitor activities. It provides information about the consumer off take, MRP
and the margin of the competitors.
STRUCTURE OF SALES DEPOT
DEPOT INCHARGE
SENOIR EXECUTIVE
JUNIOR EXECUTIVE
EXECUTIVE SALES
FIELD FORCE REPRESENTATIVE
PILOT SALES MAN
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THE AMUL SHOP
Amul "Utterly Delicious" Parlours
Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlours
created in major cities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and
Surat. Amul has plans to create a large chain of such outlets to be managed by
franchisees throughout the country. We have created Amul Parlours at some prominent
locations in the country, which are run by the company or its wholesale dealers:
1. Delhi Metro Rail Corporation
2. The Somnath Temple
3. National Institute of Design
4. Infosys Technologies in Bangalore, Mysore & Pune
5. Wipro campus in Bangalore
6. L.J. College, Ahmedabad
7. Ahmedabad Airport
8. Surat Municipal Corporation
9. Delhi Police
10. Gujarat State Raod Transport Corporation
11. Jubilee Mission Medical College, Trichur, Kerala
AMULTHE TASTE OF INDIA
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12. Sanjay Gandhi Hospital Parlour, Amethi
13. Indian Institute of Management, Kolkata
14. Cafe Amul, MDG, Gandhinagar
"Amul Utterly Delicious" parlours are an excellent business opportunity for investors,
shopkeepers and organizations. In order to come closer to the customer, we have decided
to create a model for retail outlets, which would be known as "Amul Preferred
Outlets"(APO).
ACHIEVEMENT OF AWARDS BY GCMMF LTD.
Ramakrishna Bajaj National Quality Award-2003The Gujarat Co-operative Milk
Marketing Federation Ltd. has emerged as the top scorer in the service category of the
prestigious IMC Ramkrishna Bajaj National Quality Award - 2003. The Certificate of
Merit was presented at a glittering ceremony held at Mumbai on March 11 by the
Governor of the Reserve Bank of India, Dr. Y. V. Reddy.
INTERNATIONAL CIO 100 AWARD FOR RESOURCEFULNESS
GCMMF is a winner of the prestigious international CIO 100 award from IDG's CIO
Magazine, USA. The 2003 CIO 100 award recognizes the organizations around the world
that excel in positive business performance through resourceful IT management and best
practices.
This CIO International IT excellence Award has recognized the Cooperative Movement
& its Leadership under the "Amul" brand, initiated by Dr. V Kurien, Milkman of India,
whose main Motto is to build Indian Society economically & literally strong through
innovative cooperative resourceful network, so as to provide quality service & products
to the end consumers and good returns to the farmer member.
Rajiv Gandhi National Quality Award – 1999
After creating ripples in the market whether it be with a Rs. 20/- Pizza or with a "real" Ice
Cream, Amul has done it again. But this time, it is not only for new product launches or
AMULTHE TASTE OF INDIA
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giving a tough fight to best of the food companies in extremely competitive segments, it
has now topped as the winner of the "Best of All" Rajiv Gandhi National Quality
Award for the year, 1999.
Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit
"Sh VK Singh, IAS, Managing Director, Punjab Cooperative Dairy Federation accepting
2007 IDF Marketing Award from Sh Jim Begg, President, International Dairy Federation
for Amul Prolife Probiotic Ice Cream on 3rd Oct 2007 at World Dairy Summit, Dublin,
Ireland. Sh VK Singh had kindly accepted award on behalf of GCMMF."
AMULTHE TASTE OF INDIA
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GCMMF bags APEDA AWARD for 11th year in a row
GCMMF has bagged award for excellent performance in exports of dairy products for the
year 2006-07 from Agricultural and Processed Food Exports Development Authority
(APEDA), Minister of Commerce, New Delhi. GCMMF has won the award for 11th
time. The award was received by Mr. Raveen Choudhary, our AGM (Z-I), Delhi, from
Hon'ble Minister of Commerce, Shri Kamalnath, in a glittering ceremony held at Siri Fort
Auditorium on 3rd June, 2008.
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Achievements of the Dairy Cooperatives in India till 2003-04
Reach
The dairy cooperative network is owned by nearly 12 million farmer members. These producers are grouped in nearly 1,08,574 village-level dairy cooperative
societies. The societies are grouped in 170 district-level unions spanning 338 districts. The unions make up 22 state-level marketing federations.
Milk production
India’s milk production increased from 21.2 million metric tons in 1968–69 to 88.1 million metric tons in 2003–04.
Per capita availability of milk increased from 112 grams per day in 1968–69 to 231 grams per day in 2003–04.
India’s 3.8 percent annual growth of milk production surpasses the 2 per cent growth in population; the net increase in availability is around 2 per cent per year.
Marketing
In 2003–04, average daily cooperative milk marketing stood at 14.87 million litres; annual growth has averaged about 4.2 per cent compounded over the last five years.
Dairy cooperatives now market milk in about 200 class I cities including metros and some 550 smaller towns.
During the last decade, the daily milk supply has increased from 17.5 to 52 litres per 1,000 urban consumers.
Innovation
Bulk vending saves money and conserves the environment. Milk travels as far as 2,200 kilometres to areas of shortage, carried by rail and
road milk tankers. India produces 95 per cent of its own dairy equipment, saving valuable foreign
exchange.
Macro impact
The annual value of India’s milk production amounts to about Rs.880 billion.
Dairy cooperatives generate employment opportunities for about 12 million farm families.
AMULTHE TASTE OF INDIA
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BUSINESS ANALYSISS
THE GROWTH OF THE ORGANISATION
PARTICULARS AS AT 31/3/2007 (RS. IN
LACS)
AS AT 31/3/2006(RS.IN
LACS)
SHARE CAPITAL 4000 4000
RESERVE 2427.10 2151.90
GENERAL FUND 2239.12 1895.51
FIXED ASSETS 14939.91 12861.97
INVESTMENT 72.91 72.91
CURRENT ASSET
INVENTORIES
17779.16 20700.92
SUNDRY DEBTORS 3076.29 2657.81
CASH&BANK
BALANCES
7337.96 8037.58
LOAN 562.00 788.91
DIFFERENT TAX
LIABILITY
422.67 413.97
LOAN&ADVANCES 29179.40 34533.12
NET PROFIT 1100.81 761.20
IN 2007 THE TURN OVER IS 5200(CR.) (APPROXIMATELY)
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Sales Turnover Rs. (million) US $ (in million)1994-95 11140 3551995-96 13790 4001996-97 15540 4501997-98 18840 4551998-99 22192 4931999-00 22185 4932000-01 22588 5002001-02 23365 5002002-03 27457 5752003-04 28941 6162004-05 29225 6722005-06 37736 8502006-07 42778 10502007-08 52554 13252008-09 67113 1504
PROFIT IN 2006-1100.38 (LAC) AND IN 2005-761.20 (LAC)
0100002000030000400005000060000
1994-95
1997-98
2000-01
2003-04
2006-07
Series1
GCMMF had an absolute net worth of Rs.1200 Million. The federation reported a profit
after tax (PAT) of ~ Rs.150 Million on revenues of Rs. 52.64 Billion for 2007-08.
CRISIL ‘AAA’ and ‘P1+’ for GUJARAT COOPERATIVE MILK MARKETING
FEDERATION’ bank facilities
AMULTHE TASTE OF INDIA
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Rs. 0.23 Billion Cash Credit Limit AAA/Stable(Assigned)
Rs.7.5 Billion Bill Discounting P1+(Assigned)
Rs. 0.30 Billion Short Term Bank Facility P1+(Assigned)
Rs.40 Million Letter of Credit P1+(Assigned)
Rs.40 Million Bank Guarantee P1+(Assigned)
CRISIL has assigned its highest ratings of ‘AAA/Stable/P1+’ to the various bank
facilities of Gujarat Cooperative Milk Marketing Federation (GCMMF). The ratings are
underpinned by GCMMF’s dominant position in the domestic dairy industry, and strong
financial risk profile. These strengths are partially offset by the federation’s exposure to
policy-level, environmental and epidemic-related factors that influence the agro-related
sectors.
SWOT ANALYSIS
STRENGTHS
The major strength of the AMUL Dairy is the different variety of
Milks and a recognized BRAND name.
The increasing demand for these products presents a great
opportunity for the AMUL Diary to increase and scale up the
production.
WEAKNESS
Scarce AMUL Dairy Outlets.
Less Margin given to the Outlet owners to match the existing
competitors.
AMULTHE TASTE OF INDIA
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OPPORTUNITIES
There is a scope of business as there is a demand for dairy
products.
AMUL Dairy should open more outlets to get the maximum
advantage of the demand.
Need to put more stress in the face-to-face direct marketing to
reach to the customers.
The increasing demand for these products presents a great
opportunity for t
he
Production.
THREATS
Increasing competition from the other brands.
Strong supply chain management by the competitors.
Strong marketing strategy by competitors by offering the discount
coupons to consumers and providing healthy commissions to the
retailers.
FINDING AND SUGGESTION
HOUSEHOLDS:
1. People have a high consideration for QUALITY and they think AMUL Milk is low in
quality and is also yellowish in color.
Recommendation:
Company should try to conduct camps and awareness programmers in these areas to
overcome this thinking of people.
2. People in these areas have PRICE as the most important factor which effects their
decision to consume. If the company can achieve its target in this area by keeping low
AMULTHE TASTE OF INDIA
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margin and by reducing the price then the sales in this area can improve drastically
because in this area the income level of households is not very high.
3. This area being a HILLY Area is the most challenging job for any company to serve.
People want AMUL Milk here but there are no booths in this area.
Recommendation:
If the company can open its Booth in this area it can be the leader as no other company
has its booth in this area except GOPALJEE. The sales can improve to a very big extent
from this area alone since there is demand but no availability.
AMUL DAIRY should also launch certain schemes for Households. It has
schemes for Retailers but not for households. This section being the major user of
milk and in order to enter into a new area such starting schemes can be very
helpful.
Demand and Visibility go hand in hand. If AMUL can do certain promotions as
its competitor AMUL does, then it can attract sales. Promotion with the help of
boards, hoardings etc.
Lastly incase of Households the company should maintain a proper
communication with the Localities or Areas facing problem.
RETAILERS AND MD RETAILERS:
The major problem faced by Retailers and AMUL Retailers is the SUPPLY
problem i.e. problem with the distribution. The company should aim at improving
its SUPPY CHAIN MANAGEMENT.
The company should increase incentives that can increase Retailers Nominal
Income. This can be done through certain Schemes that increase the overall sales.
The company should lay emphasis on proper PROMOTION of the brand at the
Retail Outlet.
The company should get a proper FEEDBACK from Retailers time to time.
Incase they are facing any problem it can be solved timely, without delays.
There is a problem of DATE also being faced by Retailers. The date printed is one
day previous. If retailers get the same day’s milk in the evening (which is not so).
AMULTHE TASTE OF INDIA
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CONCLUSION
GCMMF has superior brand equity, a wide product portfolio, well-spread
distribution network, and an aggressive marketing strategy. GCMMF has established the
brand ‘Amul,’ as the leading dairy products brand in India. GCMMF’s has an exceptional
distribution network and its products are geographically well diversified. GCMMF has
always been proactive in maintaining its leadership position in the dairy products
segment, by launching new products, research and development (R&D) initiatives, and
innovative sales strategies to enhance customer satisfaction. GCMMF has grown at a
healthy compounded annual growth rate (CAGR) of 17 per cent over the past four years,
owing to its superior market position. Moreover, GCMMF has a robust financial risk
profile, supported by a steady growth in accruals, a favorable capital structure, excellent
debt-protection measures and strong liquidity. The federation’s gearing was also low at
0.13 times, as on March 31, 2008. Owing to its near debt-free status, GCMMF’s debt
protection measures are excellent: it had interest coverage and net cash accrual to debt
ratios of more than 32 times and 2 times, respectively, in 2007-08.
As a result of the survey it is concluded that Amul is No.1 and this is mainly
because of its goodwill, better quality and fewer prices. The retailers have shown
willingness to keep Amul, which is good sign for GCMMF.
The sales of some of AMUL products have great seasonal fluctuation. The
retailers want to keep most of AMUL product in every season and in an occasion like
festival, wedding, anniversaries etc.
Amul is facing the tough competition from Vadilal, Havmor as well as from the
Mother dairy brands. Especially in Gujarat region the service of wholesale distributor
(WD) is not proper which possess less impression among the retailers. This should be
kept under consideration for having effective service.
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BIBILIOGRAPHY
www.amul.com
Induction program material
Operation management www.google.com Financial management
Human resource management
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ANNEXURE
A QUESTIONNAIRE FOR RETAILER
1) Do you know that the Amul is now in bakery items i.e. bread/bun ?
Yes ( ), No ( )
2) Are you interested for selling of Amul products ?
Yes ( ), No ( )
3) How would you rate the following features of Amul items ?
EXTEREMELYIMPORTANT
IMPORTANT SLIGHTLYIMPORTANT
NOT IMPORTANT
PRICEQUALITYTASTEVARITY
4) Average monthly turnover of bread
Amul ___________ Aabad___________Super___________ Others___________
5) Does an advertisement of these products affect positively impact on customers’ purchase decision?
Yes ( ), No ( )
6) What are the customers’ review about these products ?___________________________________________________________________-___________________________________________________________________
7) Do you get any suggestions from customers ? __________________________________________________________________________________________________________________________________________
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8) Do you have any problems regarding these products ?
Yes ( ), No ( )
9) Do you get any scheme from company side ?
Yes ( ), No ( )
10) If no than give your opinion __________________________________________________________________________________________________________________________________________
11) How would you pay the money for purchasing bread ?
By cash ( ), By credit ( )
12) If by credit , how many periods you are allowed ? _________________________________________
13) Are you satisfied with the distribution system of Amul bread ?
Yes ( ), No ( )
PERSONAL DETAILS:
NAME :
ADDRESS :
AGE : Below 25 ( ), 25-40 ( ) Above 40 ( )
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A QUESTIONNAIRE FOR CUSTOMER
1) Do you know that the Amul is now in bakery items i.e. bread/bun?
Yes ( ), No ( )
2) Do you buy the bread?
Yes ( ), No ( )
3) Which are other brand that you are aware of available in the market?
Aabad ( ) Amul ( )Super ( ) Other ( )
4) Which of the following items of Amul you are buying?
Butter ( ) Cheese ( )Milk ( ) Other ( )
5) Which factor you take into consideration while purchasing Bread?
Price ( ) Quality ( )Taste ( ) Varity ( )
6) How often you purchase bread for your family?
Regularly ( ) Occasionally ( ) Rarely ( )
7) Amul has introduced its bread in several package which package do you Purchase?
200GMs ( ) 400GMs ( ) 600GMs ( ) 800GMs ( )
8) What do think about price of bakery product of Amul?
High ( ) Moderate ( ) Affordase ( )
9) How many rupees you spend for purchasing of bread?
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_________________________________________________________
10) Who takes decision for buying bread in your family?
Yourself ( ) Father( ) Mother ( ) Any other ( )
11) Does an advertisement affect to your buying decision?
Yes ( ) No( )
12) Do you want any problems while consuming the bread?
Yes ( ) No( )
13) Are you confortable with instruction given on the package of bread?
Yes ( ) No( )
14) Please mention your monthly income.
Below 10000 ( ) 10000-15000 ( ) Above 15000( )
PERSONAL DETAILS:
NAME :
ADDRESS :
AGE : Below 25 ( ), 25-40 ( ) Above 40 ( )
MARETARIAL STATUS:
Married ( ), Unmarried ( )
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