Final Project Amul 2016 Anurag

SUMMER PROJECT REPORT
Sales and Promotion of Fresh Products.
Submitted to:
Dr. Ambedkar Institute of Management Studies &

Research, Deeksha Bhoomi, Nagpur
Submitted by:
Mr. ANURAG WASUDEO NANNAWARE
Company Guide:
Mr. KEVIN ARAMBHADIYA
Faculty Guide:
Prof. PALLAVI SANGODE
August 2016
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CERTIFICATE
This is to certify that the investigation described in this report titled
Sales and Promotion of Fresh Products in selected areas of
Nagpur has been carried out by Mr. Anurag W. Nannaware during the
summer internship project. The study was done in the organisation,
AMUL, in partial fulfillment of the requirement for the degree of Master of
Business Administration of R. T. M. Nagpur University, Nagpur.
This work is the own work of the candidate, complete in all respects and
is of sufficiently high standard to warrant its submission to the said
degree. The assistance and resources used for this work are duly
acknowledged.
Dr. Sudhir S. Fulzele
(Director)
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CERTIFICATE
3
ACKNOWLEDGEMENT
It is a matter of pride and privilege for me to have done a summer
internship project in AMUL and I am sincerely thankful to them for
providing this opportunity to me.
I am thankful to Mr. KEVIN ARAMBHADIYA for guiding me through
this project and continuously encouraging me. It would not have been
possible to complete this project without his support.
I am also thankful to all the faculty members of Dr. Ambedkar Institute of
Management Studies & Research and particularly my mentor
Prof. Amardip Kurukwar for helping me during the project.
Finally, I am grateful to my family and friends for their unending support.
(Name and Signature of the Student)
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Index (Table of Contents)
Sr. No. Contents Page No.
PART 1
A) Company Profile
1 Brief History 7
2 Management Structure 15
3 Achievement, Awards & Latest Developments 20
4 Products and Services Offered 26
5 Performance and Market Share 42
6 SWOT Analysis 54
B) Sector Overview
7 Sector Size and Major Players 66
8 Regulation and Regulatory Bodies 89
9 Sector's Contribution to Economy 92
10 Problems Faced by the Sector and Company 97
11 Future Potential Of Sector 102
PART 2
12 A) Actual Work Done
13 Week wise Details of Work Done 104
14 Key Learning 104
15 B) Findings and Suggestions 109

16 C) Conclusion 110
17 Appendix 111
18 Bibliography 113
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PART 1
A) COMPANY PROFILE
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BRIEF HISTORY
Over six decades ago the life of a farmer in Kaira was very much like that of farmers
anywhere else in India. His income was derived almost entirely from seasonal crops. Many
poor farmers faced starvation during off-seasons. Their income from milch buffaloes was
undependable. The milk marketing system was controlled by contractors and middlemen. As
milk is perishable, farmers were compelled to sell their milk for whatever they were offered.
Often they had to sell cream and ghee at a throwaway price. They were in general illiterate.
But they could see that the system under which contractors could buy their produce at a low
price and arrange to sell it at huge profits was just not fair. This became more noticeable
when the Government of Bombay started the Bombay Milk Scheme in 1945. Milk had to be
transported 427 kilometers, from Anand to Bombay. This could be done only if milk was
pasteurized in Anand. After preliminary trials, the Government of Bombay entered into an
agreement with Polsons Limited to supply milk from Anand to Bombay on a regular basis.
The arrangement was highly satisfactory to all concerned except the farmers. The
Government found it profitable; Polsons kept a good margin. Milk contractors took the
biggest cut. No one had taken the trouble to fix the price of milk to be paid to the producers.
Thus under the Bombay Milk Scheme the farmers of Kaira District were no better off ever
before. They were still at the mercy of milk contractors. They had to sell their milk at a price
the contractors fixed. The discontent of the farmers grew. They went in deputation to Sardar
Patel, who had advocated farmers co-operatives as early as 1942 Sardar Patel reiterated his
advice that they should market their milk through a co-operative society of their own. This
co-operative should have its own pasteurization plant. His advice was that the farmers should
demand permission to set up such a co-operative. If their demand was rejected, they should
refuse to sell their milk to middlemen. Sardar Patel pointed out that in undertaking such a
strike there should be some losses to the farmers as they would not be able to sell their milk
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for some time. If they were prepared to put up with the loss, he was prepared to lead them.
The farmers deputation readily accepted his proposal. Sardar then sent his trusted deputy,
Mr. Morarjibhai Desai, to Kaira District to organize milk co-operative and a milk strike if
necessary. Mr. Desai held a meeting in Samarkha village on January 4, 1946. It was resolved
that milk producers co-operative societies should be organized in each village of Kaira
District to collect milk from their member-farmers. All the milk societies would federate into
a Union which would own milk processing facilities. The Government should undertake to
buy milk from the Union. If this wasnt done, the farmers would refuse to sell milk to any
milk contractor in Kaira District. The Government turned down the demand. The farmers
called a milk strike. It lasted 15 days. Not a drop of milk was sold to the milk merchants.
No milk reached Bombay from Anand, and the Bombay Milk Scheme almost collapsed.
After 15 days the milk commissioner of Bombay, an Englishman, and his deputy visited
Anand, assessed the situation and accepted the farmers demand. This marked the beginning
of the Kaira District Co-operative Milk Producers Union Limited, Anand. It was formally
registered on December 14, 1946. Its objective was to provide proper marketing facilities for
the milk producers of the district. The Union began pasteurizing milk in June 1948, for the
Bombay Milk Scheme just a handful of farmers in two village co-operative societies
producing about 250 liters a day. An assured market proved a great incentive to the milk
producers in the district. By the end of 1948, 432 farmers had joined village societies, and the
quantity of milk handled by the Union had increased to 5000 liters a day. In the early stages,
rapid growth brought in its wake serious problems. Their solution provided the stimulus for
further growth. For example, as the co-operative movement spread in the district, it was
found that the Bombay Milk Scheme could not absorb the extra milk collected by the Union
in winter, when buffaloes yielded an average of 2.5 times their summer yield. Thus by 1953,
the farmer-members had no regular market for the extra milk produced in winter. They were
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again forced to sell a large surplus at low rate to middlemen. The only remedy was to set up a
plant to process the extra milk into products like butter and milk powder. The logic of this
step was readily accepted by the Government of Bombay and the Government of India,
except for a few doubting Thomases. The government of India helped the Union to get
financial help from UNICEF and assistance from the Government of New Zealand under the
Colombo Plan. Technical aid was provided by F.A.O. A Rs.50 lakh factory to process milk
powder and butter was blueprinted. Its foundation stone was laid by the then President of
India the late Dr. Rajendra Prasad on November 15, 1954. The project was completed by
October 31, 1955, on which day the late Pandit Jawaharlal Nehru, the then Prime Minister of
India, declared it open. The new dairy provided a further fillip to the co-operative movement
among milk producers. The union was thus enabled to organize more village co-operative
societies and to handle more and more milk each year. This event also brought a
breakthrough in dairy technology as the products were made processing buffalo milk for the
first time in the world. Kaira Union introduced the brand Amul for marketing its product
range. The word Amul is derived from Sanskrit word Amulya which means priceless or
precious. In the subsequent years Amul made cheese and baby food on a large commercial
scale again processing buffalo milk creating a history in the world1964 was the turning point
in the history of dairy development programme in India. Late Shri Lal Bahadur Shastri, the
then Prime Minister of India who visited Anand on 31s October for inauguration of Amuls
Cattle Feed Plant, having spent a night with farmers of Kaira and experiencing the success
wished and expressed to Mr Kurien, then the General Manager of Amul that replicating Amul
model through out our country will bring a great change in the socio-economic conditions of
the people. In order to bring this dream into reality, 1965 The National Dairy Development
Board (NDDB) was established at Anand and by 1969-70 NDDB came out with the dairy
development programme for India popularly known as Operation Flood or White
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Revolution. The Operation Flood programme, even today, stands to be the largest dairy
development programme ever drawn in the world. This saw Amul as model and this model is
often referred in the history of White Revolution as Anand Pattern. Replication of Anand
Pattern has helped India to emerge as the largest milk producing nation in the world.
Amul meant different things to different people :
To a Milk Producer A life enriching experience
To a Consumer Assurance of having wholesome milk
To a Mother A reliable source of nourishment for her child
To the Country Rural Development and Self Reliance
Amul-operative registered on 14 December 1946 as a response to the exploitation of marginal
milk producers by traders or agents of the only existing dairy, the Polson dairy, in the small
city distances to deliver milk, which often went sour in summer, to Polson. The prices of milk
were arbitrarily determined. Moreover, the government had given monopoly rights to Polson
to collect milk from mikka and supply it to Bombay city.
Angered by the unfair trade practices, the farmers of Kaira approached Sardar Vallabhbhai
Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to
form a cooperative and supply milk directly to the Bombay Milk Scheme instead of Polson
(who did the same but gave them low prices). He sent Morarji Desai to organise the farmers.
In 1946, the milk farmers of the area went on a strike which led to the setting up of the
cooperative to collect and process milk. Milk collection was decentralized, as most producers
were marginal farmers who could deliver, at most, 12 litres of milk per day. Cooperatives
were formed for each village, too.
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The cooperative was further developed and managed by Dr.Verghese Kurien with H.M.
Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk (for the first
time in the world) and a little later, with Kurien's help, making it on a commercial scale, led
to the first modern dairy of the cooperative at Anand, which would compete against
established players in the market. Kurien's brother-in-law K.M. Philip sensitized Kurien to
the needs of attending to the finer points of marketing, including the creation and
popularization of a brand. This led to the search for an attractive brand name. In a
brainstorming session, a chemist who worked in the dairy laboratory suggested Amul, which
came from the Sanskrit word "amulya", which means "priceless" and "denoted and
symbolised the pride of swadeshi production."
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to
Anand's neighbourhood in Gujarat. Within a short span, five unions in other districts
Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up. To combine forces and
expand the market while saving on advertising and avoid competing against each other, the
GCMMF, an apex marketing body of these district cooperatives, was set up in 1973. The
Kaira Union, which had the brand name Amul with it since 1955, transferred it to GCMMF.
In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.
Adding to the success, Dr. Madan Mohan Kashyap (faculty Agricultural and Engineering
Department, Punjab Agricultural University Ludhiana), Dr. Bondurant (visiting faculty) and
Dr Feryll (former student of Dr Verghese Kurien), visited the Amul factory in Gujarat as a
research team headed by Dr. Bheemsen & Shivdayal Pathak (ex-director of the Sardar Patel
Renewable Energy Research Institute) in the 1960s. A milk pasteurization system at the
Research Centre of Punjab Agricultural University (PAU) Ludhiana was then formed under
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the guidance of Kashyap. The technological developments in Gujarat have subsequently
spread to other parts of India.
In November 2015, KM Jhala was appointed as the chief operating officer. Jhala was
previously the chief general manager before this appointment.
About GCMMF
The GCMMF is the largest food products marketing organisation of India. It is the apex
organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing organisation
for products under the brand name of Amul and Sagar. Over the last five and a half decades,
dairy cooperatives in Gujarat have created an economic network that links more than
3.1 million village milk products with millions of consumers in India. Gujarat Cooperative
Milk Marketing Federation Ltd. (GCMMF), is India's largest food product marketing
organisation with annual turnover (201415) US$3.4 billion. Its daily milk procurement is
approx 14.85 million lit per day from 18,536 village milk cooperative societies, 17 member
unions covering 33 districts, and 3.37 million milk producer members. More than 70% of the
members are small or marginal farmers and landless labourers including a sizeable population
of tribal folk and people belonging to the scheduled castes. The turnover of GCMMF
(AMUL) during 201011 was 97.74 billion (US$1.77 billion). It markets the products,
produced by the district milk unions in 30 dairy plants. The farmers of Gujarat own the
largest state of the art dairy plant in Asia Mother Dairy, Gandhinagar, Gujarat which can
handle 2.5 million litres of milk per day and process 100 MTs of milk powder daily. 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 affordable quality
products. GCMMF markets and manages the Amul brand. From mid-1990s Amul has entered
areas not related directly to its core business. Its entry into ice cream was regarded as
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successful due to the large market share it was able to capture within a short period of time
primarily due to the price differential and the brand name. It also entered the pizza business,
where the base and the recipes were made available to restaurant owners who could price it as
low as 30 rupees per pizza when the other players were charging upwards of 100 rupees.
It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known as
'AMUL',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. Its
success has not only been emulated in India but serves as a model for rest of the World. It is
exclusive marketing organisation of 'Amul' and 'Sagar' branded products. It operates
through 56 Sales Offices and has a dealer network of 10000 dealers and 10 lakh retailers, one
of the largest such networks in India. Its product range comprises milk, milk powder, health
beverages, ghee, butter, cheese, Pizza cheese,Ice-cream, Paneer, chocolates, and traditional
Indian sweets, etc.
GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading
House"status. Many of our products are available in USA, Gulf Countries,Singapore, The
Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from
Government of India for Excellence in Dairy Product Exports for the last 16 years. For the
year 2009-10, GCMMF has been awarded "Golden Trophy" for its outstanding export
performance and contribution in dairy products sector by APEDA. In 2013-14, GCMMF took
giant strides in expanding its presence in International markets. Amuls presence on Global
Dairy Trade (GDT) platform in which only the top six dairy players of the world sell their
products, has earned respect and recognition across the world. By selling milk powders on
GDT, GCMMF could not only realize better prices as per market demand but it also firmly
established Amul in the league of top dairy players in world trade.
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For its consistent adherence to quality, customer focus and dependability, GCMMF has
received numerous awards and accolades over the years. It received the Rajiv Gandhi
National Quality Award in1999 in Best of All Category. In 2002 GCMMF bagged India's
Most Respected Company Award instituted by Business World. In 2003, it was awarded the
The IMC Ramkrishna Bajaj National Quality Award - 2003 - certificate of merit- for
adopting noteworthy quality management practices for logistics and procurement. GCMMF
is the first and only Indian organisation to win topmost International Dairy Federation
Marketing Award for probiotic ice cream launch in 2007. For the innovations, GCMMF has
received AIMA-RK Swamy High Performance brand award 2013 and CNN-IBN Innovating
for better tomorrow award in 2014. World Dairy Innovation Awards- 2014 for Best
Marketing Campaign - "Eat Milk with Every Meal". For the tree plantation activity GCMMF
has received seven consecutive Good Green Governance award from Srishti during 2007 to
2013.
The Amul brand is not only a product, but also a movement. It is in one way, the
representation of the economic freedom of farmers. It has given farmers the courage to
dream. To hope. To live.
GCMMF - An Overview
Year of Establishment 1973

Members 18 District Cooperative Milk Producers' Unions
No. of Producer Members 3.6 Million
No. of Village Societies 18,545
Total Milk handling capacity per day 28 Million litres per day
Milk Collection (Total - 2015-16) 6.2 billion litres
Milk collection (Daily Average 2015-16) 16.97 million litres
Cattlefeed manufacturing Capacity 7800 Mts. per day
Sales Turnover -(2015-16) Rs. 22972 Crores (US $ 3.5 Billion)
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Management Structure
The three-tier "amul model"
The amul model is a three-tier cooperative structure. This structure consists of a dairy
cooperative society at the village level affiliated to a milk union at the district level which in
turn is further federated into a milk federation at the state level. The above three-tier structure
was set up in order to delegate the various functions, milk collection is done at the village
dairy society, milk procurement & processing at the district milk union and milk & milk
products marketing at the state milk federation. This helps in eliminating not only internal
competition but also ensuring that economies of scale is achieved. As the above structure was
first evolved at amul in gujarat and thereafter replicated all over the country under the
operation flood programme, it is known as the "Amul Model" or "Anand Pattern" of "Dairy
Co-Operatives". The effects of Operation Flood Programme are more appraised by the World
Bank in its recent evaluation report. It has been proved that an investment of Rs. 20 billion
over 20 years under Operation Flood Programme in 70s & 80s has contributed in increase of
Indias milk production by 40 Million Metric Tonne (MMT) i.e. From about 20 MMT in pre-
Operation Flood period to more than 60 MMT at the end of Operation flood Programme.
Thus, an incremental return of Rs. 400 billion annually have been generated by an investment
of Rs. 20 billion over a period of 20 years. This has been the most beneficial project funded
by the World Bank anywhere in the World. One can continue to see the effect of these efforts
as Indias milk production continues to increase and now stands at 90 MMT. Despite this
fourfold increase in milk production, there has not been drop in the prices of milk during the
period and has continued to grow.
Due to this movement, the countrys milk production tripled between the years 1971 to 1996.
Similarly, the per capita milk consumption doubled from 111 gms per day in 1973 to 222
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gms per day in 2000. Thus, these cooperatives have not just been instrumental in economic
development of the rural society of India but it also has provided vital ingredient for
improving health & nutritional requirement of the Indian society. Very few industries of India
have such parallels of development encompassing such a large population.
These dairy cooperatives have been responsible in uplifting the social & economic status of
the women folk in particular as women are basically involved in dairying while the men are
busy with their agriculture. This has also provided a definite source of income to the women
leading to their economic emancipation.
The three-tier Amul Model has been instrumental in bringing about the White Revolution in
the country. As per the assessment report of the World Bank on the Impact of Dairy
Development in India, the Anand Pattern has demonstrated the following benefits:
Is has multi-dimensional impacts
Importance of getting government out of commercial enterprises
Importance of market failure in agriculture
Power & problems of participatory organisations
Importance of policy correct
Responsible for Marketing of Milk & Milk Products
Responsible for Procurement & Processing of Milk
Responsible for Collection of Milk
Responsible for Milk Production
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Village Dairy Cooperative Society (VDCS)
The main functions of the VDCS are as follows:
Collection of surplus milk from the milk producers of the village & payment based on quality
& quantity
Providing support services to the members like Veterinary First Aid, Artificial Insemination
services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, conducting
training on Animal Husbandry & Dairying, etc.
Selling liquid milk for local consumers of the village
Supplying milk to the District Milk Union
Thus, the VDCS in an independent entity managed locally by the milk producers and assisted
by the District Milk Union.
District Cooperative Milk Producers Union (Dugdh Sangh)
The main functions of the Union are as follows:
Procurement of milk from the Village Dairy Societies of the District
Arranging transportation of raw milk from the VDCS to the Milk Union.
Providing input services to the producers like Veterinary Care, Artificial Insemination
services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, etc.
Conducting training on Cooperative Development, Animal Husbandry & Dairying for milk
producers and conducting specialised skill development & Leadership Development training
for VDCS staff & Management Committee members.
Providing management support to the VDCS along with regular supervision of its activities.
Establish Chilling Centres & Dairy Plants for processing the milk received from the villages.
Selling liquid milk & milk products within the District
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Process milk into various milk & milk products as per the requirement of State Marketing
Federation.
Decide on the prices of milk to be paid to milk producers as well on the prices of support
services provided to members.
State Cooperative Milk Federation (Federation)
The main functions of the Federation are as follows:
Marketing of milk & milk products processed / manufactured by Milk Unions.
Establish distribution network for marketing of milk & milk products.
Arranging transportation of milk & milk products from the Milk Unions to the market.
Creating & maintaining a brand for marketing of milk & milk products (brand building).
Providing support services to the Milk Unions & members like Technical Inputs,
management support & advisory services.
Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.
Establish feeder-balancing Dairy Plants for processing the surplus milk of the Milk Unions.
Arranging for common purchase of raw materials used in manufacture / packaging of milk
products.
Decide on the prices of milk & milk products to be paid to Milk Unions.
Decide on the products to be manufactured at various Milk Unions (product-mix) and
capacity required for the same.
Conduct long-term Milk Production, Procurement & Processing as well as Marketing
Planning.
Arranging Finance for the Milk Unions and providing them technical know-how.
Designing & Providing training on Cooperative Development, Technical & Marketing
functions.
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Conflict Resolution & keeping the entire structure intact.
Today, there are around 176 cooperative dairy Unions formed by 1.25 lakh dairy cooperative
societies, having a total membership of around 13 million farmers on the same pattern, who
are processing and marketing milk and milk products profitably, be it Amul in Gujarat or
Verka in Punjab, Vijaya in Andhra Pradesh, Milma in Kerala, Gokul in Maharashtra, Saras in
Rajasthan or a Nandini in Karnataka. This entire process has created more than 190 dairy
processing plants spread all over India with large investments by these farmers institutions.
These cooperatives today collect approximately 23 million kgs. Of milk per day and pay an
aggregate amount of more than Rs.125 billion to the milk producers in a year.
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ACHIEVEMENTS AWARDS AND LATEST DEVELOPMENTS
National productivity council productivity awards 1985-86.
Presented for best productivity performance in dairy development
and production in co-operative sector by shri g.s. Dhillion, union
minister of agriculture to amul dairy, kaira district co-operative milk
producers union limited, anand (gujarat) new delhi 22nd april, 1987.
NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY
AWARDS 1986-87.
Sponsored by Ministry of Agriculture Presented for Best
Productivity Performance in Dairy Development - Product Plants by
Shri R. Venkataraman, President of India to Amul Dairy, Kaira
District Co-operative Milk Producers Union Limited, Anand
(Gujarat) New Delhi, 14th january, 1988.
AWARDS 1987-88.
Sponsored by Ministry of Agriculture Presented for Best
Productivity Performance in Dairy Development - Product Plants by
Shri Bhajan Lal, Union Minister of Agriculture to Amul Dairy, Kaira
District Co-operative Milk Producers Union Limited, Anand
(Gujarat) New Delhi, 31st Mar 1989.
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INDIAN MERCHANTS' CHAMBER BOMBAY 1988 AWARD
for Outstanding Performance in the field of R&D of Food Processing
Industries Based on Agricultural Products awarded to Kaira District
Co-operative Milk Producers Union Limited, Anand (Shri Mathurdas
Vissanji Endowment) 1988.
AWARDS 1991-92.
Sponsored by Ministry of Agriculture Presented for Second Best
Productivity Performance in Dairy Development & Production in
Co-operative Sector (Product Plant) by Dr. Balram Jakhar, Union
Minister of Agriculture to Kaira District Co-operative Milk
Producers Union Ltd., Anand (Gujarat) New Delhi, 19th oct 1993.
AWARDS 1992-93.
Sponsored by Ministry of Food Processing Presented for Best
Productivity Performance in Dairy processing industries by Shri.
Tarun Gogoi Minister of State for Food processing industries to
Kaira District Co-operative Milk Producers Union Ltd. (Amul dairy)
Anand ( Gujarat) New Delhi 29th oct 1994
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AWARDS 1993-94.
Sponsored by Ministry of Food Processing Industries, Presented for
Second Best Productivity Performance in Dairy Processing Industries
by Dr Shanker Dayal Sharma, Hon'ble President of India to Kaira
District Co-operative Milk Producers' Union Ltd., Anand, Gujarat,
New Delhi, 30th Oct 1995.
AWARDS 1994-95.
Presented for Best Productivity Performance in Dairy Processing
Industries by Shri H.D. Deve Gowda, Hon'ble Prime Minister of
India to Kaira District Co-operative Milk Producers Union Ltd.,
Anand (gujarat) New Delhi, 23rd Nov 1996.
INDUSTRIAL GOOD HOUSE KEEPING CONTEST
GUJARAT STATE
organised by Gujarat Safety Council Loss - Prevention Association
of India Ltd., Factory Inspectorate, Gujarat State 1984 awarded to
Kaira District Co-op. Milk Producers' Union Ltd., Amul-Anand for
their Commendable Performance in the category of petrochemicals,
cosmetics,electronics & food processing industries.
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AWARDS 1995-96.
Presented for Second Best Productivity Performance in Dairy
Processing Industries by Shri K.R. Narayanan, Hon'ble President of
India to Kaira District Co-operative Milk Producers' Union Ltd.,
Anand (Gujarat) New Delhi, 26 Nov 1997.
AWARDS 1996-97.
Processing Industry by Shri Sikander Bakht, Hon'ble Minister of
Industry to Kaira District Co-operative Milk Producers' Union Ltd.,
Anand (Gujarat) New Delhi, 26th dec 1998.
BARODA PRODUCTIVITY COUNCIL - 1997-98.
Good House Keeping Contest - Kaira District Co-operative Milk
Producers' Union Ltd., 1997-98.
AWARDS 1998-99.
Processing Industries by Shri Krishna Kant, Vice President of India
to Kaira District Co-operative Milk Producers' Union Ltd., Anand
(Gujarat) New Delhi, 24th Aug 2000.
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INDIAN CO-OPERATIVE CENTENARY CELEBRATION :
SHAKARI VIKAS RATNA AWARD 2004
on the occasion of 100 years the Co-operative Movement in Gujarat -
we are proud to award "shakari vikas ratna award" to Amul Dairy
Kheda District Co-operative Milk Producers' Union Ltd, Anand,
Gujarat State Co-operative Union, Ahmedabad, 23rd Apr 2005.
NATIONAL ENERGY CONSERVATION AWARD 2009.
This commendation certificate is awarded to Kaira District Co-
operative Milk Producers Union Limited, Amul Dairy, Anand
(Gujarat) in appreciation of the efforts in Energy Conservation in
Dairy Sector by Ministry of Power, New Delhi, 14 Dec 2009.
CARE AWARDS HEALTHCARE CATEGORY 2013
Sponsored by Aaj Tak TV Today Network, India Today Group
for striving towards inclusive & sustainable development with a
"society centered" purpose for Amul's Total Sanitation Campaign.
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CII NATIONAL AWARD FOR FOOD SAFETY 2013
Amul Dairy received CII National Award for Food Safety 2013 for its
Outstanding Performance in the Dairy Sector Manufacturing, Large
Food Business Category. Besides Global standards & Indian
Regulations on Food Safety Systems, the model includes assessment
of Social compliance & Organisational Improvement initiatives. The
award was received on December3, 2013.
APEDA EXPORT AWARD 2011-12
Amul Dairy, Anand received APEDA Export Award for the year
2011-12 for its outstanding contribution in the export of Dairy
products across the globe. Silver Trophy & a Citation was
presented at the 21 st Annual APEDA Award function in New
Delhi on 26 th Nov 2014
GOLDEN PEACOCK ECO-INNOVATION AWARD 2016
Amul Dairy, Anand received Golden Peacock Eco-Innovation
Award for the year 2016 for Bio-CNG Generation & Bottling Plant
from Dairy Effluent.
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Products and Services Offered
Amul's product range includes milk powders, milk, butter, ghee, cheese, dahi, yoghurt,
buttermilk, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, flavoured milk,
basundi and others. Amul PRO is a recently launched brown beverage just like bournvita and
horlicks offering with protein, DHA and essential nutrients. In January 2006, Amul launched
India's first sports drink, Stamina, which competes with Coca-Cola's Powerade and pepsico's
Gatorade. Amul offers Mithai Mate which competes with Milkmaid by Nestle by offering
more fat at lower price. In August 2007, Amul introduced Kool Koko, a chocolate milk brand
extending its product offering in the milk products segment. Other Amul brands are Amul
Kool, a low-calorie thirst quenching drink; Masti Butter Milk; and Kool Cafe, ready to drink
coffee.Amul's icecreams are made from milk fat and thus are icecreams in real sense of the
word, while many brands in India sell frozen desserts made from vegetable fat. Amul's sugar-
free Pro-Biotic Ice-cream won The International Dairy Federation Marketing Award for
2007.
Breadspreads
Amul Butter milk
Amul Lite Low Fat Breadspread
Amul Cooking Butter
Delicious Margarine
Garlic butter
Pure Ghee
Amul Pure Ghee
Amul Cow Ghee
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Milk Powders
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener
Sweetened Condensed Milk
Amul Mithaimate
Sweets
Amul Shrikhand & Amrakhand
Amul Mithaee Khoya Gulabjamaun
Amul Basundi keshar
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
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Curd Products
Yog Sweetened Flavoured Dahi (Dessert)
Amul Masti Dahi (fresh curd)
Amul Lite Dahi
Amul Prolife probiotic Dahi
Amul Masti Spiced Butter Milk
Amul Lassee
Amul Lassee Mango
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)
Amul SUGAR FREE Frozen Foods (Milk Based Sweet)
Amul prolife Probiotic Ice cream
Kulfi
Cream Rich- Choco Almond
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Chocolate & Confectionery
Choco mini
Amul Milk Chocolate
Amul Fruit & Nut Chocolate
Amul Bindazz
Amul Rejoice
Choco Almond
Dark chocolate
Chocozoo
Amul Bhaji pav
Amul Bun
Amul Butter Cookies
Amul Chocolate cookies
Amul Fruity Bread
Amul jeera toast
Amul milk bread
Amul Milk toast
Amul Multi Grain Bread
Amul Pizza base
Amul Whole Wheat Bread
Amul Ice Creams
Brown Beverage
Nutramul Malted Milk Food
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Milk Drink
Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose,
Chocolate, Butterscotch)
Amul Kool Cafe
Amul Kool Koko
Amul stamina
Health Beverage
Amul Shakti White Milk Food
Products
Amul Gold
Pasteurised milk Amul milk meets the FSSA standards for the respective type of milk.
Features:
Amul Milk is the most hygienic liquid milk available in the market.
It is pasteurized in state-of-the-art processing plants and pouch-packed to make it
conveniently available to consumers
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Amul Taza
Pasteurised milk Amul milk meets the FSSA standards for the respective type of milk.
Features:
Virtually zero bacteria, No need to boil, Cut open and drink, No preservative / chemical.
It is pasteurized in state-of-the-art processing plants and pouch-packed to make it
conveniently available to consumers
Amul Butter
Utterly Cute Amul Butter Girl has been a part of Indian Consumers since 1950.
Features:
Utterly Butterly Delicious taste of Amul Butter is must on breakfast table of almost
every Indian Household.
Amul Butter topical is recognized as one of the longest running advertisement
campaign in the world.
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Amul / Sagar Ghee
Amul / Sagar Ghee is good source of energy and provides vitality to human body
Features:
Amul/Sagar Ghee is an ethnic product made by dairies with decades of experience,
and rich source of Vitamin A,D,E and K
Amul/Sagar Ghee is made from fresh cream and it has typical rich aroma and granular
texture
Amul Cow Ghee
Amul Cow Ghee is good source of energy and provides vitality to human body
Features:
Amul Cow Ghee is made from fresh cream and it has typical rich aroma and granular
texture
Amul Cow Ghee is an ethnic product made by dairies with decades of experience, and
rich source of Vitamin A,D,E and K
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Amul Mithai Mate
Amul Mithai Mate is a sweetened condensed milk and made of pure milk FAT.
Features:
Amul Mithai Mate is much more creamier than competitors available in market.
Available in very convenient easy to open pack.
Can be made several milk based desert in minutes.
Sagar Skimmed Milk Powder
Sagar SMP is a non-fat , protein rich milk powder. Most suitable for use by people on low
calorie and high protein diet.
Features:
Ideal for preparing low fat and sugar free Milk Based Products.
On reconstitution as per directions, 1 Kg of Sagar SMP provides 10 litres of toned
milk mix.
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Amulya
It is available in attractive packaging, wide range of pack sizes and at affordable prices.
Features:
Amulya, a premium Dairy Whitener from the house of Amul is the favourite choice of
all Tea and Coffee lovers across India.
It has the highest milk fat content among all the Dairy Whitener brands in India that
makes it the creamiest dairy whitener.
It is available in attractive packaging, wide range of pack sizes and at affordable
prices.
Amulspray
Amulspray is an Infant Milk Substitute and Infant milk food
Features:
It is fortified with Vitamins: A, D, K, B Group, C and minerals Calcium, Magnesium,
Phosphorus, Iron, Copper, Iodine, Manganese and Zinc.
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It is formulated on guidelines set by Codex Commission of WHO/FAO and also
meets the Bureau of Indian Standard specification No IS 14433 (Part I):1997.
Amul / Sagar Moti
Homogenized Toned Long Life Milk with virtually zero bacteria
Features:
No need to boil
Cut open and drink
No need to refrigerate till open
Stays fresh for 2 days after opening if kept in refrigerator
No powder or water added
No preservative / chemical
Easy to carry and use while traveling
Tamper evident packing
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Sagar Sfurti
UHT Homogenized Flavored Toned Milk with Virtually zero bacteria
Features:
Sagar Sfurti is refreshing milk with taste of Cardamom (Elaichi), Saffron (Kesar) &
Rose
It is an easy to use delicious drink that refreshes you immediately with goodness of
milk.
Available in easy to use Laminate pouch.
No need to boil
Cut open and drink
No need to refrigerate till open
Stays fresh for 2 days after opening if kept in refrigerator
Easy to carry and use while traveling
Sagar Chhash
Sagar Chhash is a Pasteurized Buttermilk which meets the FSSA standards.
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Features:
It is produced in very hygienic and clean atmosphere.
Scientific bacterial culture in Sagar Chhash improves digestion.
It is conventionally packed in pouches and easily available at Sahyog outlets.
Amul Kool Kesar
Amul Kool Kesar Flavored Milk available in easy to use Glass bottle
Features:
Amul Kool Kesar is refreshing milk with taste of Saffron (Kesar)
milk
Amul Kool Rose
Amul Kool Rose Flavored Milk available in easy to use Glass bottle
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Features:
Amul Kool Rose is refreshing milk with flavor of Rose.
milk
Amul Kool Badam
Amul Kool Badam Flavored Milk available in easy to use glass bottles
Features:
Amul Kool Badam is refreshing milk with taste of Almond (Badam)
milk
Amul Kool Elaichi
Amul Kool Elaichi Flavored Milk available in easy to use Glass bottle
Features:
Amul Kool Elaichi is refreshing milk with taste of Cardamom (Elaichi)
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milk
Amul Moti
Amul Moti is a UHT milk which remains fresh for 90 days even if stored at room
temperature
Features:
Pack size- 200 ml & 500 ml
Composition Fat-3% SNF-8.5% Fortified with Vitamin A and D
Frozen Yoghurt
Contains live probiotic bacteria which helps digestion and improve immunity.
Features:
Pack size- 125 ml
Composition Fat- Min 6.9 % TS- Min 32% Protein- Min 3.5%
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Masti Dahi
Amul Masti Dahi is prepared from purest, freshest pasteurized milk and it is free from added
sugar.
Features:
Pack size- 200 gm pouch, 500 gm pouch, 1 kg pouch, 200 gm Cup, 400 gm Cup
Composition Fat-Min 3.5% TS- Min 15% Acidity- Max 1.0 % LA
Amul Lite
Amul Lite is a Low Fat Low Cholesterol spread which combines the goodness of vegetable
oils and milk (mixed fat spread)
Features:
Pack size- 200 gm pouch, 1 kg pouch
Composition Fat-Max 1 % TS- Min 12% Acidity- Max 1.0 % LA
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Ice Cream
Utterly delicious ice cream made from fresh milk available in a wide range of flavours and
packs.
Features:
Available in cups, Bulk Pack, cone
Composition Fat-Min 13% TS- Min 39% Acidity- Max 0.180 % LA
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Performance and Market Share
The country's largest dairy cooperative, and for that matter the largest player in India's food
business, Gujarat Cooperative Milk Marketing Federation (GCMMF) that owns the Amul
brand, has crossed the Rs 20,000 crore mark in turnover in FY15. The Anand-headquartered
food major that announced its results today, reported a turnover of Rs 20,733 crore during
2014-15, up 14 per cent over its last year's turnover of Rs 18,150 crore. The results of the
apex body of dairy cooperatives was declared on Thursday in the 41st Annual General
Meeting (AGM). During the last five years, turnover of GCMMF grew from Rs 8,005 crore
to Rs 20,733 crores, a remarkable growth of 159 per cent. The cumulative average growth
rate (CAGR) has been that of 21 per cent. In fact, the group turnover of GCMMF and its
constituent member unions, representing unduplicated turnover of all products sold under
Amul brand was Rs 29000 crores or $ 4.6 billion. GCMMF has grown by 51 per cent in the
last two years, banking on new product launches and innovation. A GCMMF statement here
said that as many as 26 new products from Amul's portfolio were launched last year.
Commenting on the results, Jethabhai Patel, chairman, GCMMF said, Based on estimated
growth in market demand for Amul products and our future marketing efforts, we anticipate
at least 20 per cent CAGR growth in the business of GCMMF during the next five years,
implying that the turnover of GCMMF should exceed Rs 50,000 crores ($ 8 billion) by the
year 2019-20." Patel also informed that Amul plans to enhance its milk processing capacity
from the current level of 23.7 million litres per day (mlpd) to 38 mlpd in the next five years.
He elborated on the federation's expansion plans in the coming years. Amul's new milk
powder plant started functioning in Palanpur in 2014. With capacity of 120 tonnes per day,
this is Amul's largest milk powder plant, till date. Similarly, a new dairy plant at Rohtak
started operations, further augmenting Amul's capacity to serve the markets of Delhi and
NCR, besides a new butter plant at Gandhinagar with capacity of 40 tonnes per day.
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Another ten new dairy plants are in various stages of completion. New dairy plants are being
built in Faridabad, Kanpur, Lucknow and Kolkatta. Another new dairy plant in Varanasi is
also in pipeline. The mega-cheese plant near Palanpur is near completion and will start
operating this year. "Since we are also doubling cheese manufacturing capacities at our
existing plant, the net impact will be three-fold expansion in our cheese capacities. Within
Gujarat, new dairy plants will soon be operational at Amreli and Surendranagar. Capacity
expansion at Bhavnagar is also underway. A new dairy plant will also start in Kutch. These
large-scale mega-expansion projects are part of our Mission 2020 plan," the chairman added.
R S Sodhi, managing director said, During the last five years, our milk procurement has
witnessed an increase of 65 per cent. This enormous growth in milk procurement was a
result of high milk procurement price paid to our farmer-members which has increased by 75
per cent during last five years. High remunerative milk procurement price to farmers has
helped us to win back farmers interest in milk production. Better returns from dairying have
obviously motivated farmers to enhance their investments in increasing milk production."
Sodhi also pointed out that while Amul has ensured that milk procurement price to its farmer-
members increased by 75 per cent in the last five years, in other countries of the world such
as New Zealand and EU, price of milk to farmers has fallen sharply in recent years.In New
Zealand alone, milk price to farmers has declined by 40 per cent in last one year. Similarly
across Europe, farm-gate milk prices have declined by 18-20 per cent in one year alone.
Dairy farmers in US have also seen their farm-gate milk prices drop by 15-19 per cent in the
same period. Due to softening in import demand for dairy products, especially in China and
higher production in major exporting countries, there has been a major meltdown in global
prices of dairy commodities in last one year. Farm-gate prices of milk continue to fall in
countries such as Australia, New Zealand and EU nations, which are heavily dependent on
dairy exports.
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Amul feels that in order to dump their surplus stocks of dairy commodities, these countries
are lobbying hard for access to Indian dairy market through bilateral Free Trade Agreement
(FTA) negotiations. "We request our policy makers to ensure that dairy products are
completely kept out of the ambit of FTAs with major dairy exporting nations. No duty
concessions and no GI protection on dairy products should be given to countries such as
Australia, New Zealand and EU. These steps will go a long way towards ensuring that our
nation's self sufficiency in dairy sector is maintained in future and our food-security is
safeguarded with respect to milk and dairy products," Sodhi said. AHMEDABAD: The
Gujarat Cooperative Milk Marketing Federation (GCMMF) which markets the popular Amul
brand of milk and dairy products crosses the 2 billion dollar sales turnover mark. During the
financial year 2010-11, GCMMF registered a topline growth of 22.1%, achieving turnover of
Rs 9774 crore. The results of the apex body of the dairy cooperatives in Gujarat were
declared on 21st June 2011, in the 37th Annual General Meeting of GCMMF.
GCMMF, chairman, Parthibhai G. Bhatol said that this performance is even more
remarkable, when viewed from the perspective that the organization was able to achieve 1
billion dollar turnover in the 33rd year of its formation while it took only just four more years
to add another one billion dollar to its turnover. Turnover of GCMMF registered CAGR of
23% during the last 4 years. 'GCMMF plans to achieve turnover of Rs 12,000 crores in the
year 2011-12," he said. During the year 2010-11, GCMMF paid Rs 8345 crore to its 30 lakh
farmer members. Payout to farmers also registered 23 percent CAGR in the last 4 years.
This consistently high growth is also reflected in the performance of its various mega-brands
as the organization further enhanced its market-share in different product categories. Sales of
Amul butter have also shown a growth of 26 percent in 2010-11. Sales of Amul milk in
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pouches have grown by 34 percent. Sales of Amul processed cheese have shown growth of
29 percent.
Amul beverage range including flavoured milk, buttermilk and lassi has shown a growth of
28 percent over the last year. Sales of Amul masti dahi also grew by 39 percent. With
enhanced focus on fresh and fermented products, GCMMF launched Amul Probiotic Lasee in
ready to drink cups, Amul Probiotic Buttermilk in PET bottles and flavoured yoghurt under
the brand name Amul Flaavyo. In the infant milk food category, their brand Amulspray
registered growth of 20 percent and became a Rs 1,000 crore mega-brand.
GCMMF recently initiated its largest distribution expansion exercise to extend its reach to
smaller towns and semi-urban areas. Through implementation of its new 'hub & spoke' model
of distribution, GCMMF plans to appoint 150 new super-distributors and extend its reach to
3,000 additional smaller towns & semi-urban areas in 2011-12.
Retailing continues to be an important strategic initiative for GCMMF. During the year 2010-
11, 1000 new Amul Parlours have been added, taking the total strength to 6000, thus
reinforcing the wide popularity of the concept.
Apart from 160 parlours at railway stations and 177 parlours operating at various centers of
excellence, Amul also has 375 air-conditioned Ice-cream scooping parlours. In order to align
supply chain strategy with corporate objectives across key lines of business in a timely &
cost-effective manner and to achieve superior supply chain performance, GCMMF
successfully implemented SAP ERP application in 2010-11. Anand (Gujarat), June 26:
With 20 per cent growth in milk procurement, Amul entered its golden phase in 2012-13,
said the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the Amul
brand of milk and milk products.
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Announcing its results on Tuesday at its Annual General Meeting, the federation said group
turnover reached Rs 19,100 crore or $3.2 billion.
GCMMF, the apex body of milk and dairying co-operatives in Gujarat, said it is passing
through an era of simultaneous acceleration in demand and supply. The federation procured
and handled 16.6 million kg of milk during the winter months in 2012-13. Leveraging several
marketing and technological innovations as well as its enhanced distribution reach, GCMMF
closed the year with a turnover of Rs 13,735 crore, 18 per cent more than the turnover of Rs
11,668 crore in 2011-12. Next year, said Chairman Vipul M. Chaudhary, the target is to
achieve a turnover of Rs 17,000 crore. The Group turnover of the federation and its
constituent member unions, representing unduplicated turnover of all products sold under the
Amul brand in 2012-13, was Rs 19,100 crore or $3.2 billion.
Rapid expansion
Amuls long-life UHT milk has shown value growth of 53 per cent and sales of Amul cream
also increased by 57 per cent in value terms.
Amuls innovative milk beverages range showed quantum value growth of 27 per cent.
In ghee, the two mega-brands, Amul and Sagar, together achieved growth of 31 per cent.
Sales of Amul butter and cheese grew 18 per cent and 19 per cent, respectively, while ice-
cream sales grew 21 per cent.
Saying that rapid expansion will be the organisations mantra for 2013-14, the 63 per cent
growth in milk production in the last four years was the result of the high procurement price
paid to farmers.
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Better returns from dairying have motivated farmers to enhance their investments in
increasing milk production.
The federation is also expanding and strengthening its four distribution highways to ensure
that its products reach consumers in the remotest areas.
Distribution
In 2012-13, Amul expanded its distribution footprint to reach new geographical markets. It
added 306 distributors, 65 super-stockists and 900 sub-stockists.
The plan for 2013-14 includes expanding the distribution reach to 700 new markets by adding
more distributors and super-stockists. It plans to add seven new branch offices within the next
few months.
Amul further consolidated its status as the largest single-brand retailer in the country by
adding at least three exclusive parlours every day in 2012-13, taking the total tally of its
exclusive stores to 7,000. The federation plans to increase the parlour network to 10,000
within the next two years. At a dairy farm in Manchar on the outskirts of Pune, a fourhour
drive from Mumbai, about 200 cows await their turn to be milked. They wait like shoppers in
the billing queue of a supermarket, quiet and orderly. One by one, the cows step onto a 20-
feet rotating circular platform and rubber hoses are attached to their udders. Once milked, the
cows themselves kick away the hoses. "Minimal human effort, maximum milk produce,"
gushes Devendra Shah, Chairman, Parag Milk Foods, which started its operations in Manchar
in 1993. The company has spent over Rs 4 crore on its rotary milking parlour, the first in
India. The 3,000-plus Holstein cows, purchased at Rs 40,000 apiece, are treated to a special
diet of calcium-rich feed and mellifluous bhajans in their sheds. "The music increases their
milk produce," claims Shah, citing that each cow produces 25 litres of milk a day. "It's total
47
cow comfort technology. These are the standards we need to adopt if we need to compete
with international players in products like cheese," he adds. And cheese is where Shah's
immediate ambitions lie.
With a turnover of about Rs 550 crore, Parag Milk Foods has been selling milk and ghee in
Pune and Mumbai since the mid-90s. But in the last one year, the company's focus has shifted
to products like cheese and flavoured yogurt. It has invested Rs 110 crore to build what it
claims is Asia's largest cheese plant (with a capacity to process 40 tonnes of raw cheddar
daily). "Cheese from this plant is right now being sold in South Korea. Within a few months
of our launch, we have cornered a 30 per cent market share of cheese sales at modern retail
outlets in Mumbai. Our competitors are the Krafts and Laughing Cows of the world. With our
superior product quality, we are not even competing with the Indian dairy players," says
Shah.
Some 450 km away, lounging in his spartan office in Anand in Gujarat, the mecca of the
Indian cooperative movement, B.M. Vyas would be tempted to disagree with Shah's claims.
After all, as MD of India's largest and only billion-dollar cooperative dairy player, the
Gujarat Cooperative Milk Marketing Federation (GCMMF), Vyas has seen competitors make
more audacious claims in his 16-year tenure as MD. GCMMF sounds like a mouthful, but the
brand name under which the cooperative sells its products, Amul, is, perhaps, the most
recognised and revered dairy brand across the country.
This despite the fact that, unlike Parag Milk Foods' state-of-the-art dairy farm, Amul's milk is
collected by dairy farmers every morning largely by hand. "The fact that 2.7 million farmers
wake up early each morning to milk their cows and then give it to us is our biggest strength,"
says Vyas. He is no stranger to pretenders challenging Amul's dominance. "Amul has seen
competition in the past. It really does not worry us," he says matter-of-factly.
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A mildmannered, portly man of 59 years, Vyas has managed the cooperative since 1994.
When he took over Amul, GCMMF's turnover was a little over Rs 1,000 crore. Today, that
has increased over six times to Rs 6,700 crore. Back then, Amul was viewed as a brand that
would not survive the pressures of competition in the post-liberalisation era. Vyas and Amul
have not just survived the onslaught of competition, but have often taken the fight to their
territory (as it did in ice creams a decade ago, when it dethroned Hindustan Unilever Ltd
(HUL)then Hindustan Lever Ltdfrom pole position).
Taking on competitors in a category or two at the same time is something Amul has done
before. But the threat today is different, and huge. That's because never before has Amul been
buffeted by as much competition as it is today, across every category it operates inright
from pouched milk and butter to cheese and ice creams. Other than HUL and Nestle,
multinational giants like Kraft (which recently acquired Cadbury globally, thereby getting a
passage into India) and Groupe Danone are beginning to flex their muscle. "We hope to bring
some of our big brands like Kraft Cheese and Oreo cookies to India. With Cadbury's
distribution strengths, we can push some of these brands in India," Sanjay Khosla, President
(Developing Markets), Kraft, recently told BT. Groupe Danone is looking at tapping into the
small, but fast-growing flavoured milk market. It's currently testing a chocolate-flavoured
fortified milk in Hyderabad.
The biggest threat to Amul, though, could well come from its one-time friend but now a bitter
rival, Mother Dairy, a subsidiary of the National Dairy Development Board (NDDB). In mid-
February, Amul made a bold claim when it declared itself as the #1 player in the branded
packaged milk segment, with sales of 1.45 million litres daily, in the Delhi market, a
traditional stronghold of Mother Dairy. Within a day, the New Delhi-headquartered Mother
Dairy shot back. "Mother Dairy sells approximately 29 lakh litres of milk per day in Delhi
49
NCR, which is about twice as much as that of the nearest competitor," says Paul Thachil,
CEO (Dairy & Foods), Mother Dairy Fruit & Vegetable. To sustain its leadership in the
branded dairy sector in India, Gujarat Co-operative Milk Marketing Federation (GCMMF),
which sells Amul dairy products, is expanding its distribution and processing capacity in
2015. On the other hand, Amuls rival Mother Dairy is betting big on innovations to fight
competition. The market dynamics will soon change in the branded dairy and fruit juice
sectors in India with the entry of ITC. In the packaged fruit juice sector, Dabur India with
60% market share is expanding its distribution by 25%, while PepsiCo India is leveraging its
global expertise to expand the brand franchise. Parle Agro, the maker of Appy is focusing on
sales transformation programmes and packaging initiatives to drive volumes.
With increasing competition, these two sectors will witness a lot of action in 2015. On
Amuls strategic plans, RS Sodhi, managing director of GCMMF said, We are adding more
people to our distribution team. Also, we are setting up new milk depots. We are expanding
our distribution and processing capacity by 12 % in 2015. With sales turnover of R22,000
crore (FY14), Amul is sharpening focus on its research & development projects to launch
innovative products.
We are launching a new product almost every month. We are also scaling up our supply
chain system for efficient distribution, said Sodhi.
Leveraging the strength of its sales & distribution network, ITC is expected to roll out its
dairy products and juices in the next few months. Incidentally, ITC is planning to spend
around R900 crore for its foray into these two sectors.
Meanwhile, Mother Dairy is expanding its operations in Hyderabad and Chennai as part of
its strategy. We are extending our foot print in southern states. We are scaling up our sales
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operations, We are planning to add 12,000 retail outlets by 2016, said Sandeep Ghosh,
business head-milk, Mother Dairy Fruit & Vegetable.
At present, Mother Dairy has 50,000 retail outlets across the country. Like Amul, Mother
Dairy is also focusing on innovative products to woo consumers. Competition seems to be
hotting up in the R1,500- crore packaged fruit juices sector too with the entry of ITC.
On Daburs growth plans, Sunil Duggal,CEO of Dabur India said, We will be expanding our
distribution by 25 % in 2015. We plan to build value in our juice brands to launch new
products like fortified juices. We plan to launch a slew of sales initiatives to drive volumes.
Across the road, PepsiCo India is getting ready to launch new variants of Tropicana with
health benefits in 2015.Our core focus is on leveraging our global expertise to expand the
brand franchise by educating consumers on fruit nutrition, said a spokesperson from
PepsiCo India.
Theres a growing demand for packaged fruit juices in smaller cities and towns in India.
Tropicana has been leveraging this opportunity by increasing its footprint on the back of its
larger CSD footprint(Canteen Stores Dept) and building a differential focus on this segment
through GTM(Go To Market) investments, he added. On Parle Agros strategy, Nadia
Chauhan, joint managing director of the company said, We are looking at strengthening our
market share through strategic price-points, penetrative SKUs and new brand communication
for Appy and Appy Fiz.
The Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) which owns and
markets dairy products under the brand Amul has received the AIMA - R K Swamy High
Performance Brand Award for the year 2013.
All India Management Association (AIMA), the national apex body of management
51
profession in the country. Every year, to recognize excellence in Management,
Entrepreneurship and Leadership, AIMA confers Awards on distinguished professional and
organisations who have made outstanding contribution. For the year 2013, Srinivasan
Swamy, jury chairman & past president, AIMA alongwith other corporate leaders
unanimously decided to bestow award on brand "Amul" of GCMMF. which is the largest
food products marketing organisation of the country with an annual turnover of Rs .13,735
crore during the year 2012-13. GCMMF has successfully used commercial marketing to
enrich the lives of millions of farmers. It has achieved market leadership in all the categories
that it operates be it pouch milk, butter, cheese, ghee, ice cream reflecting the consumer
confidence brand "Amul" enjoys, felt the jury members. R S Sodhi, managing director,
GCMMF said "Our brand Amul has shown tremendous growth and growing at the rate of 20
per cent CAGR since last five years. For the current year, we are expected to grow at 30 per
cent and would reach turnover of Rs . 18,000 crore".
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AMUL is Asias no. 1 and worlds second number co-operative dairy. It has large market and
dairy network in every state of India and across the India, like central Asian countries,
Bangladesh, Thailand, Indonesia, Malaysia, Singapore, etc. It was started with 250 liters of
milk and 2 societies and now, it produces 10 lakhs litters milk per day and has 1113 societies
and more than 6 lakes farmer members. It produces milk and milk products. The main motto
of AMUL is to help farmers. Farmers were the foundation stone of AMUL. The system
works only for farmers and for consumers, not for profit. The main aim of AMUL is to
provide quality products to the consumers at minimum cost. The goal of AMUL is to provide
maximum profit in terms of money to the farmers. Vision of AMUL is to provide and vanish
the problems of farmers (milk producers). The AMUL apparition was to run the organization
with the co-operation of four main parties, the farmers, the representatives, the marketers, and
the consumers.
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SWOT ANALYSIS
Amul is one of the largest milk and milk based products manufacturer in India. Known to be
the founder of the white revolution in India, Amul has some strong products and brands up its
sleeves, strongest of them being Amul ice cream. Similarly, the Milk & Dairy products
company has a very in depth product portfolio including cheese, butter, curd, chocolates, ice
cream, and others. However, following are the points in the SWOT analysis of Amul.
Largest food brand in India High quality, Low priceWorlds largest pouched milk
brandAnnul turnover of US $1504 millionRisk of highly complex supply chainAlliance with
third parties who do not belong to the organized sectorPenetrate international market
Diversify product portfolio to enter new product categories and expand existing categories
like processed foods, chocolate s etc.
A study undertaken by an organization to identify its internal strengths and
weaknesses, as well as its external opportunities and threats
(SWOT analyses) Streghts, Weeknesses, Opportunities, Threats. Methodology for
descriptive evaluation of new technologies, processes, methods, projects or
businesses.
SWOT is a strategic planning tool used to evaluate the strengths, weaknesses,
opportunities, and threats to a project. It involves specifying the objective of the
project and identifying the internal and external factors that are favourable and
unfavourable to achieving that objective.
SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business venture.
amul
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Amul (priceless in Sanskrit. The brand name Amul, from the Sanskrit
Amoolya, (meaning Precious) was suggested by a quality control expert in Anand.)
, formed in 1946, is a dairy cooperative in India.
The Amul campaign tells the stories of India, a hoarding at a time. The hoardings are
markers of the popular history of India and have been followed by fans for decades.
Timeless and ageless, this long-running campaign has captivated Indians of all ages.
The key character in this saga is the little girl in polka dots, who helped Amul Butter
win over an entire nation. This book celebrates her journey through the eyes of
prominent writers, public figures and the subjects of the hoardings themselves. It
contains a series of vignettes, creating a patchwork quilt of essays, snippets and
selections of classic hoardings. It offers us an inside peek into the back story of the
creation of the ads.
Amul Hoarding-Nano
Description: Companies in this market face an increasing demand for their products
and services. New products and services can be seen.
This SWOT Analysis of Amul provides a strategic SWOT analysis of the company's
businesses and operations. This free SWOT analysis shows strengths, weaknesses,
opportunities and threats. This SWOT analysis of Amul can provide a competitive
advantage.
Strengths in the SWOT analysis of Amul
Very high market share in ice cream Amul has the top market share in ice cream segment
which further helps it push other products into the market.
Excellent brand equity amul is a beloved brand over the years and the contribution of
amul girl and her outdoor ads should specifically be mentioned here.
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Excellent quality management even though amul has such a wide and large distribution
network, hardly any quality complaints come for amul.
Strong distribution network This is one company which is strong in urban as well as rural
distribution. You will find amul present even in small towns and villages.
Good product portfolio Amul had a deep product portfolio when compared to any fmcg
company. It has many different variety of milk milk based food items like cheese, butter,
milk, buttermilk, lassi and many others. In ice creams too, amul has a large variety of
flavours
Strong Supply chain Vendors love Amul and amul is known for the white revolution in
India.
Rural presence Strong rural presence of Amul is its plus point. It is mentioned here
separately because this rural presence gives amul a strong competitive advantage.
1 Manufacturer of milk not trader of milk
2 Largest food company in India
3 Most trusted brand in India
4 Market leader in Butter, milk, cheese, condensed milk,
5 Work on VALUE FOR MONEY concept
6 Cheap costing to compete against competitor
7 Working on focused business
8 Disciplined and excellent distribution network
9 Simple but to the heart promotional strategy (topical)
10 Supported by state & central govt.
11 Continues need of product since perishable
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12 Free from TB pathogens
13 High Quality maintained (UV pasteurization)
14 Highly organized sector
15 Technical manpower: Professionally trained, technical human resource pool, built over
last 30 years.
16 Dairy cooperatives generate employment opportunities for about 12 million farm families.
Demand profile: Absolutely optimistic. Milk being a necessity product, the demand will stay
and the sales at GCMMF are bound to increase over a period of time.
Margins: Quite reasonable, even on packed liquid milk. The margins are enough Flexibility
of product mix: Tremendous. With balancing equipment, GCMMF Availability of raw
material: Abundant. Presently, more than 80 per cent of to limit the entry of potential
entrants. has kept adding a wide array of products to its product line.
milk produced is flowing into the unorganized sector, which requires proper channelization.
Amul & GCMMF have leveraged this and has got itself a strong base of suppliers who
provide them milk throughout the year. Large number of dairy plants in public and
cooperative sectors besides several others coming up in the private sector would result in
competition. Because of this the end consumer would benefit and a good product mix would
emerge. Technical manpower: Professionally trained, technical human resource pool, built
over last 30 years is the strength that GCMMF has. The employees of GCCMF are highly
recognized in the industry and have earned name for themselves as well as the federation.
Enhanced milk production: Increase in the milk production with consequently increased
availability of milk processing has led to increase in consumption and faster access to the
consumers through effective distribution. The technology is brought from Denmark and the
production of milk has benefited from that.
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Transportation: The transportation facilities and the easy availability of the special trucks
have provided a boost. Cold refrigerated trucks are there in place and the warehouses also
have the cold storage facilities that facilitate the transportation.
Vast resources: Country has vast natural resources which offer immense potential growth and
development for dairying. Moreover the financial resources available with the federation are
immense and the reputation is such that in case of any further requirements, it can approach
any institution and raise any form of capital.
Increasing purchase power and changing tastes of the consumers: The purchasing power of
the residents is increasing. As a result a lot of products are being consumed. Moreover, the
consuming habits are changing. As a result, the demand for products such as butter and
cheese is increasing at a very rapid rate.
Weaknesses in the SWOT analysis of Amul
Cost of Operations Amuls operation is huge. And so is the cost. Plus the sector is such
that maintaining margins becomes difficult day by day. Thus, to face international players,
Amul needs to maintain the operations in the same manner it is carrying out today. It is not a
weakness but rather a constant challenge for Amul. In fact, during summers, the brand faces
severe shortage of supply.
Chocolates Amuls expansion to chocolate has failed and hardly any product of Amul
chocolates is selling in the market. Amul needs further products to expand its product line
and increase bottomline.
1 Perishable nature of product
2 No diversification
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3 Lack of aggressive marketing
4 Since it is cooperative society thus take time to implement new strategies
5 Accountability???? Cooperative society
6 Lack of infrastructure to suffice international norms
7 Lack of control over yield: Theoretically, there is little control over milk yield. However,
increased awareness of developments like embryo transplant, artificial insemination and
properly managed animal husbandry practices, coupled with higher income to rural milk
producers should automatically lead to improvement in milk yields.investments in research
and development-competitive market-brand portfolio-future debt rating
Perishability: Pasteurization has overcome this weakness partially. UHT gives
milk long life. Still perishability is there at the milk vendors end. This does result in loss of
some production. But Amul Dairy is taking steps to store milk at the vendors end. Surely,
many new processes will follow to improve milk quality and extend its shelf life.
Lack of control over yield: Theoretically, there is little control over milk yield.
A lot depends upon the monsoon in the country. This is because of the quality of cattle feed
that would be available will not have the required nutritional content. Steps are taken to
provide awareness regarding these and the penetration of quality feed is being increased.
Moreover, increased awareness of developments like embryo transplant, artificial
insemination and properly managed animal husbandry practices, coupled with higher income
to rural milk producers should automatically lead to improvement in milk yields.
Logistics of procurement: Woes of bad roads and inadequate transportation
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facility make milk procurement problematic. All these factors lead to perishability of the
procured milk. But with the overall economic improvement in India, these problems would
also get solved.
Erratic power supply: The erratic power supply would cause harm in the Underdeveloped
systems: There still exist underdeveloped raw milk collection processing of milk.
systems in some parts of the country. However steps are being taken such as setting up of
cold storage points at key collection centers to combat the situation.
Lack of proper implementation: Dairy development programmes have not been fully
implemented as per the needs of the region in different agro-climatic zones.
Infrastructure: The infrastructure that is available is not up to the current world Also lack of
infrastructure for offering dairy business management standards. programmes to the trained
personnel is creating a hindrance.
Opportunities in the SWOT analysis of Amul
Export Amul can export its product to other countries thereby increasing its turnover and
margins exponentially.
Concentrate more on chocolate market Amul has a no advertisement policy which
creates a problem for its foray into additional products. Amul should in fact have separate
SBUs and concentrate more on increasing its product line through chocolates or other such
products.
1 Huge opportunity in dry areas of India such as Hyderabad, Rajasthan etc.
2 Good margin can be obtained if started EXPORT in Asian and African countries
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3 Tie-up with local small unorganized milk producer like Mahananda, Gokul, Aarey to fight
against big MNC'S
4 Brand extension can be done like to introduce bread,mithai, cosmetics
5 Amul parlors should be opened like Aarey stalls
6 While currently COLA controversy going on , Amul should tap market aggressively-new
acquisitions growing economy global markets venture capital new markets
Failure is never final, and success never ending. Dr Kurien bears out this statement
perfectly. He entered the industry when there were only threats. He met failure headon, and
now he clearly is an example of never ending success. If dairy entrepreneurs are looking
for opportunities in India, the following areas must be tapped:
Competition: With so many newcomers entering this industry, competition is becoming
tougher day by day. But then competition has to be faced as a ground reality. The market is
large enough for many to carve out their niche. Moreover due to competition, there is a
chance to better serve the market with innovative products.
Value addition: There is a phenomenal scope for innovations in product
development, packaging and presentation. Given below are potential areas of value addition:
Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer,
khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and flexibility in
the market place along with opportunities in the field of brand building.
Addition of cultured products like yoghurt and cheese lend further strength both in terms of
utilization of resources and presence in the market place. Yet another aspect can be the
addition of infant foods, geriatric foods and nutritional.
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Export potential: Efforts to exploit export potential are already on. Amul is exporting to
Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty,
opportunities will increase tremendously for the export of agri-products in general and dairy
products in particular. There is a strong basis of cost efficiency, which GCMMF can leverage
in the world market.
Markets: The market for the traditional as wells as processed dairy products is expanding
both at the domestic and international front. IT support: Software is now available for project
formulation for dairy enterprise. It has also computerized its production processes. Mother
Dairy was the first fully computerized dairy in India. In its Anand plant all products are
processed computerized, which does not have any hand touch during any stage of process
Threats in the SWOT analysis of Amul
Increasing competition in Ice cream segment Many players, local and international, are
entering the ice cream market thereby taking away share of wallet from Amul. Kwality walls,
Naturals, London dairy, Havmor, Arun ice cream, Vadilal, Ramani, are some of the few
brands who are directly in competition with Amul.
1 MNC competitor such as Nestle, Britania
2 Local competitor such as Aarey, Mahananda etc.
3 Bann on PLASTIC
4 Misuse of brand name (There is a brand named Amol which sells ice-creams)
5 Misinterpretation of Ads
6 The Indian dairy industry, following its delicensing, has been attracting a large number of
entrepreneurs. Increasing cost cash flow increasing rates of interest.
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Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of place
in the industry. Organized dissemination of information about the harm that they are doing to
producers and consumers should see a steady decline in their importance.
Infestation: There are increasing incidents of chemical contaminants as well as Quality: The
quality of the milk is found to be poor as compared to the residual antibiotics in milk.
international standards. One of the reasons for these according to the EU and America is the
method of milching the milk. In these nations the milk is hands by the farmers owning the
cattle do milched with the help of machines, while in India.
Exploitation: The liberalization of the Dairy Industry is likely to be exploited by the
multinationals. They will be interested manufacturing the milk products, which yield high
profits. It will create milk shortage in the country adversely affecting the consumers. Subsidy
by Western Nations: There have been incidences wherein the
Western nations subsidizing the dairy products by a few means like transportation. Because
of such reasons the final price of the product goes below the prices prevailing in the Indian
Market. Hence it proves a threat to GCMMFs and other Indian dairy products.
Creation of Non Tariff Barriers by Developed Nations: The Developed
Nations have created Non Tariff Barriers related to Quality of the milk specifically. They
want that the milk be processed with potable Air and Water. They also want that the milching
of cattle be done with the help of machines. However this type if system is yet to evolve in
India. Because of these reasons they are reducing the market potential of Indian made
products, where GCMMF holds a lions share.
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The study of this SWOT analysis shows that the strengths and opportunities far outweigh
weaknesses and threats. Strengths and opportunities are fundamental and weaknesses and
threats are transitory. Any investment idea can do well only when you have three essential
ingredients: Entrepreneurship (the ability to take risks), Innovative approach (in product lines
and marketing) and Values (of quality/ethics).
Findings
Huge difference between proper demand and supply
Lack of promotional activities
Losing its shelf space as other brands are providing incentives to the retailer
Zero replacement facility
No display for AMUL products
No incentive for the sales persons
Suggestions
Availability & Accessibility
Work on response channel
Visits by Amul representatives
Brand visibility needed
Make Reliable distributors
Make promotional activities
Learning
FMCG industry is very delicate industry. Major business loss can happen by a minor problem
Its all about Branding, people buy products what they see, Brand loyalty is very low
FMCG market depends on Distribution network and on the sales persons
How to deal with people of various mindset.
Be ready to do anything necessary to make your things done.
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PART 2
B) SECTOR OVERVIEW
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SECTOR SIZE AND MAJOR PLAYERS
Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to
entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest
growing markets for milk and milk products. A bagful of 'pearls' awaits the international
dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace
with the galloping progress around the world. As he expands his overseas operations to India
many profitable options await him. He may transfer technology, sign joint ventures or use
India as a sourcing center for regional exports. The liberalization of the Indian economy
beckons to MNC's and foreign investors alike. Indias dairy sector is expected to triple its
production in the next 10 years in view of expanding potential for export to Europe and the
West. Moreover with WTO regulations expected to come into force in coming years all the
developed countries which are among big exporters today would have to withdraw the
support and subsidy to their domestic milk products sector. Also India today is the lowest
cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents,
and Japans $2.8 dollars. Also to take advantage of this lowest cost of milk production and
increasing production in the country multinational companies are planning to expand their
activities here. Some of these milk producers have already obtained quality standard
certificates from the authorities. This will help them in marketing their products in foreign
countries in processed form. The urban market for milk products is expected to grow at an
accelerated pace of around 33% per annum to around Rs.43,500 crores. This growth is going
to come from the greater emphasis on the processed foods sector and also by increase in the
conversion of milk into milk products
Presently the market is valued at around Rs7,00,000mn Background India with 134mn cows
and 125mn buffaloes, has the largest population of cattle in the world. Total cattle population
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in the country as on October'00 stood at 313mn. More than fifty percent of the buffaloes and
twenty percent of the cattle in the world are found in India and most of these are milch cows
and milch buffaloes. Indian dairy sector contributes the large share in agricultural gross
domestic products. Presently there are around 70,000 village dairy cooperatives across the
country. The co-operative societies are federated into 170 district milk producers unions,
which is turn has 22-state cooperative dairy federation. Milk production gives employment to
more than 72mn dairy farmers. In terms of total production, India is the leading producer of
milk in the world followed by USA. The milk production in 1999-00 is estimated at 78mn
MT as compared to 74.5mn MT in the previous year. This production is expected to increase
to 81mn MT by 2000-01. Of this total produce of 78mn cows' milk constitute 36mn MT
while rest is from other cattle. While world milk production declined by 2 per cent in the last
three years, according to FAO estimates, Indian production has increased by 4 per cent. The
milk production in India accounts for more than 13% of the total world output and 57% of
total Asia's production. The top five milk producing nations in the world are India ,USA,
Russia, Germany and France. Although milk production has grown at a fast pace during the
last three decades (courtesy: Operation Flood), milk yield per animal is very low.
The main reasons for the low yield are
Lack of use of scientific practices in milching.
Inadequate availability of fodder in all seasons.
Unavailability of veterinary health services.
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Operation Flood
The transition of the Indian milk industry from a situation of net import to that of surplus has
been led by the efforts of National Dairy Development Board's Operation Flood. programme
under the aegis of the former Chairman of the board Dr. Kurien.
Launched in 1970, Operation Flood has led to the modernization of India's dairy sector and
created a strong network for procurement processing and distribution of milk by the co-
operative sector. Per capita availability of milk has increased from 132 gm per day in 1950 to
over 220 gm per day in 1998. The main thrust of Operation Flood was to organize dairy
cooperatives in the milkshed areas of the village, and to link them to the four Metro cities,
which are the main markets for milk. The efforts undertaken by NDDB have not only led to
enhanced production, improvement in methods of processing and development of a strong
marketing network, but have also led to the emergence of dairying as an important source of
employment and income generation in the rural areas.
It has also led to an improvement in yields, longer lactation periods, shorter calving intervals,
etc through the use of modern breeding techniques. Establishment of milk collection centers,
and chilling centers has enhanced life of raw milk and enabled minimization of wastage due
to spoilage of milk. Operation Flood has been one of the world's largest dairy development
programme and looking at the success achieved in India by adopting the co-operative route, a
few other countries have also replicated the model of India's White Revolution.
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Fresh Milk
Over 50% of the milk produced in India is buffalo milk, and 45% is cow milk. The buffalo
milk contribution to total milk produce is expected to be 54% in 2000. Buffalo milk has 3.6%
protein, 7.4% fat, 5.5% milk sugar, 0.8% ash and 82.7% water whereas cow milk has 3.5%
protein, 3.7% fat, 4.9% milk sugar, 0.7% ash and 87% water. While presently (for the year
2000) the price of Buffalo milk is ruling at $261-313 per MT that of cow is ruling at $170-
267 per MT. Fresh pasteurized milk is available in packaged form. However, a large part of
milk consumed in India is not pasteurized, and is sold in loose form by vendors. Sterilized
milk is scarcely available in India.
Packaged milk can be divided according to fat content as follows,
Whole (full cream) milk - 6% fat
Standardized (toned) milk - 4.5% fat
Doubled toned (low fat) milk - 3% fat
Another category of milk, which has a small market is flavoured milk.
The Indian Market - A Pyramid
Consumer Habits And Practices
Milk has been an integral part of Indian food for centuries. The per capita availability of milk
in India has grown from 172 gm per person per day in 1972 to 182gm in 1992 and 203 gm in
1998-99.This is expected to increase to 212gms for 1999-00. However a large part of the
population cannot afford milk. At this per capita consumption it is below the world average
of 285 gm and even less than 220 gm recommended by the Nutritional Advisory Committee
of the Indian Council of Medical Research.
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There are regional disparities in production and consumption also. The per capita availability
in the north is 278 gm, west 174 gm, south 148 gm and in the east only 93 gm per person per
day. This disparity is due to concentration of milk production in some pockets and high cost
of transportation. Also the output of milk in cereal growing areas is much higher than
elsewhere which can be attributed to abundant availability of fodder, crop residues, etc which
have a high food value for milch animals.
In India about 46 per cent of the total milk produced is consumed in liquid form and 47 per
cent is converted into traditional products like cottage butter, ghee, paneer, khoya, curd,
malai, etc. Only 7 per cent of the milk goes into the production of western products like milk
powders, processed butter and processed cheese. The remaining 54% is utilized for
conversion to milk products. Among the milk products manufactured by the organized sector
some of the prominent ones are ghee, butter, cheese, ice creams, milk powders, malted milk
food, condensed milk infants foods etc. Of these ghee alone accounts for 85%.
It is estimated that around 20% of the total milk produced in the country is consumed at
producer-household level and remaining is marketed through various cooperatives, private
dairies and vendors. Also of the total produce more than 50% is procured by cooperatives and
other private dairies.
While for cooperatives of the total milk procured 60% is consumed in fluid form and rest is
used for manufacturing processed value added dairy products; for private dairies only 45% is
marketed in fluid form and rest is processed into value added dairy products like ghee,
makhan etc.
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Still, several consumers in urban areas prefer to buy loose milk from vendors due to the
strong perception that loose milk is fresh. Also, the current level of processing and packaging
capacity limits the availability of packaged milk.
The preferred dairy animal in India is buffalo unlike the majority of the world market, which
is dominated by cow milk. As high as 98% of milk is produced in rural India, which caters to
72% of the total population, whereas the urban sector with 28% population consumes 56% of
total milk produced. Even in urban India, as high as 83% of the consumed milk comes from
the unorganized traditional sector.
Presently only 12% of the milk market is represented by packaged and branded pasteurized
milk, valued at about Rs. 8,000 crores. Quality of milk sold by unorganized sector however is
inconsistent and so is the price across the season in local areas. Also these vendors add water
and caustic soda, which makes the milk unhygienic.
India's dairy market is multi-layered. It's shaped like a pyramid with the base made up of a
vast market for low-cost milk. The bulk of the demand for milk is among the poor in urban
areas whose individual requirement is small, maybe a glassful for use as whitener for their tea
and coffee. Nevertheless, it adds up to a sizable volume - millions of litres per day. In the
major cities lies an immense growth potential for the modern sector. Presently, barely 778 out
of 3,700 cities and towns are served by its milk distribution network, dispensing hygienically
packed wholesome, quality pasteurized milk. According to one estimate, the packed milk
segment would double in the next five years, giving both strength and volume to the modern
sector. The narrow tip at the top is a small but affluent market for western type milk products.
The effective milk market is largely confined to urban areas, inhabited by over 25 per cent of
the country's population. An estimated 50 per cent of the total milk produced is consumed
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here. By the end of the twentieth century, the urban population is expected to increase by
more than 100 million to touch 364 million in 2000 a growth of about 40 per cent. The
expected rise in urban population would be a boon to Indian dairying. Presently, the
organized sector both cooperative and private and the traditional sector cater to this market.
Emerging Dairy Markets
Food service institutional market: It is growing at double the rate of consumer
market
Defense market: An important growing market for quality products at reasonable
prices
Ingredients market: A boom is forecast in the market of dairy products used as raw
material in pharmaceutical and allied industries
Parlour market: The increasing away-from-home consumption trend opens new
vistas for ready-to-serve dairy products which would ride piggyback on the fast food
revolution sweeping the urban India.
India, with her sizable dairy industry growing rapidly and on the path of modernization,
would have a place in the sun of prosperity for many decades to come. The one index to the
statement is the fact that the projected total milk output over the next 15 years (1995-2010)
would exceed 1457.6 million tonnes which is twice the total production of the past 15 years!
Penetration of milk products
Western table spreads such as butter, margarine and jams are not very popular in India. All
India penetration of butter/ margarine is only 4%. This is also largely represented by urban
areas, where penetration is higher at 9%. In rural areas, butter/ margarine have penetrated in
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2.1% of households only. The use of these products in the large metros is higher, with
penetration at 15%.
Penetration of cheese is almost nil in rural areas and negligible in the urban areas. Per capita
consumption even among the cheese-consuming households is a poor 2.4kg pa as compared
to over 20kg in USA. The lower penetration is due to peculiar food habits, relatively
expensive products and also non-availability in many parts of the country. Butter, margarine
and cheese products are mainly manufactured by organized sector.
Similarly, penetration of ghee is highest in medium sized towns at 37.2% compared to 31.7%
in all urban areas and 21.3% in all rural areas. The all India penetration of ghee is 24.1%. In
relative terms, penetration of ghee is significantly higher in North and West, which are milk
surplus regions. North accounts for 57% of ghee consumption and West for 23%, South &
East together account for the balance 20%. A large part of ghee is made at home and by
small/ cottage industry from milk. The relative share of branded products in this category is
very low at around 1-2%.
Milk powder and condensed milk have not been able to garner any significant consumer
acceptance in India as indicated by a very low 4.7% penetration. The penetration is higher at
8.1% in urban areas and lower at 3.5% in rural areas. Within urban areas, it is relatively
higher in medium sized towns at 8.5% compared to 7.7% in a large metros.
Market Size And Growth
Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued at
Rs470bn. The market is currently growing at round 4% pa in volume terms. The milk surplus
states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra
Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in
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these milk surplus States. The top 6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh,
Rajasthan, Tamil Nadu and Gujarat together account for 58% of national production.
Milk production grew by a mere 1% pa between 1947 and 1970. Since the early 70's, under
Operation Flood, production growth increased significantly averaging over 5% pa.
About 75% of milk is consumed at the household level which is not a part of commercial
dairy industry. Loose milk has a larger market in India as it is perceived to be fresh by most
consumers. In reality however, it poses a higher risk of adulteration and contamination.
The production of milk products, i.e. milk products including infant milk food, malted food,
condensed milk & cheese stood at 3.07 lakh MT in 1999. Production of milk powder
including infant milk-food has risen to 2.25 lakh MT in 1999, whereas that of malted food is
at 65000 MT. Cheese and condensed milk production stands at 5000 and 11000 MT
respectively in the same year.
(Source: Annual Report 1999-2000, DFPI)
Major Players
The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative
Milk Marketing Federation (GCMMF) is the largest player. All other local dairy cooperatives
have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in Rajasthan, Verka in
Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, etc). Other private players include J
K Dairy, Heritage Foods, Indiana Dairy, Dairy Specialties, etc. Amrut Industries, once a
leading player in the sector has turned bankrupt and is facing liquidation.
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Indian (traditional) Milk Products
There are a large variety of traditional Indian milk products such as
Makkhan - unsalted butter.
Ghee - butter oil prepared by heat clarification, for longer shelf life.
Kheer - a sweet mix of boiled milk, sugar and rice.
Basundi - milk and sugar boiled down till it thickens.
Rabri - sweetened cream.
Dahi - a type of curd.
Lassi - curd mixed with water and sugar/ salt.
Channa/Paneer - milk mixed with lactic acid to coagulate.
Khoa - evaporated milk, used as a base to produce sweet meats.
The market for indigenous based milk food products is difficult to estimate as most of these
products are manufactured at home or in small cottage industries catering to local areas.
Consumers while purchasing dairy products look for freshness, quality, taste and texture,
variety and convenience. Products like Dahi and sweets like Kheer, Basundi, Rabri are
perishable products with a shelf life of less than a day. These products are therefore
manufactured and sold by local milk and sweet shops. There are several such small shops
within the vicinity of residential areas. Consumer loyalty is built by consistent quality, taste
and freshness. There are several sweetmeat shops, which have built a strong brand franchise,
and have several branches located in various parts of a city.
Branding Of Traditional Milk Products
Among the traditional milk products, ghee is the only product, which is currently marketed,
in branded form. main ghee brands are Sagar, MilkMan (Britannia), Amul (GCMMF), Aarey
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(Mafco Ltd), Vijaya (AP Dairy Development Cooperative Federation), Verka ( Punjab Dairy
Cooperative), Everyday (Nestle) and Farm Fresh (Wockhardt). With increasing urbanization
and changing consumer preferences, there is possibility of large scale manufacture of
indigenous milk products also. The equipments in milk manufacturing have versatility and
can be adapted for several products. For instance, equipments used to manufacture yogurt
also can be adapted for large scale production of Indian curd products (dahi and lassi).
Significant research work has been done on dairy equipments under the aegis of NDDB.
Mafco Limited sells Lassi under the Aarey brand and flavoured milk under the Energee
franchise (in the Western region, mainly in Mumbai). Britannia has launched flavored milk in
various flavors in tetra packs. GCMMF has also made a beginning in branding of other
traditional milk products with the launch of packaged Paneer under the Amul brand. It has
also created a new umbrella brand "Amul Mithaee", for a range of ethnic Indian sweets that
are proposed to be launched The first new product Amul Mithaee Gulabjamun has already
been launched in major Indian markets.
Western Milk Products
Western milk products such as butter, cheese, yogurt have gained popularity in the Indian
market only during the last few years. However consumption has been expanding with
increasing urbanization.
Butter
Most Indians prefer to use home made white butter (makkhan) for reasons of taste and
affordability. Most of the branded butter is sold in the towns and cities. The major brands are
Amul, Vijaya, Sagar, Nandini and Aarey. Amul is the leading national brand while the other
players have greater shares in their local markets. The latest entrant in the butter market has
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been Britannia. Britannia has the advantages of a wide distribution reach and a strong brand
recall. Priced at par with the Amul brand, it is expected to give stiff competition to the
existing players. In 1999-00 the butter production is estimated at 4 lakh MT of this only 45K
MT is in the white form used for table purposes rest all is in the yellow form.
Cheese
The present market for cheese in India is estimated at about 9,000 tonnes and is growing at
the rate of about 15% per annum. Cheese is mainly consumed in the urban areas. The four
metro cities alone account for more than 50% of consumption . Mumbai is the largest market
(accounting for 30% of cheese sold in the country), followed by Delhi (20%). Calcutta (7%)
and Chennai (6%). Mumbai has a larger number of domestic consumers, compared to Delhi
where the bulk institutional segment (mainly hotels) is larger. The major players are Amul,
Britannia, and Dabon International dominating the market. Other major brands were Vijaya,
Verka and Nandini (all brands of various regional dairy cooperatives) and Vadilal. The heavy
advertising and promotions being undertaken by these new entrants is expected to lead to
strong 20% growth in the segment. Amul has also become more aggressive with launch of
new variants such as Mozzarella cheese (used in Pizza), cheese powder, etc. The entry of new
players and increased marketing activity is expected to expand the market. All the major
players are expanding their capacities
Milk Powder
Milk powder are mainly of 2 types
Whole milk powder
Skimmed milk powder
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Whole milk powder contains fat, as distinguished from skimmed milk powder, which is
produced by removing fat from milk solids. Skimmed milk powder is preferred by diet
conscious consumers. Dairy whiteners contain more fat than skimmed milk powder but less
compared to whole milk powder. Dairy whiteners are popular milk substitute for making tea,
coffee etc. The penetration of these products in milk abundant regions is driven by
convenience and non perishable nature (longer shelf life) of the product. Dairy sector of
advanced nations export milk products with a subsidy of $ 1000 per tonne with a level of
subsidy more than 60 % of the price of milk powder produced in India, this has led to large
scale imports of milk powder both in whole and skimmed form. To protect the domestic
sector from these subsidized imports the central government has recently increased the basic
import duty on all imports of milk powder more than 10000 MT to 60% from 15%. For
imports less than 10000 MT the basic customs duty has been left unchanged at 15%. In 1999-
00 India is estimated to have imported about 18,000 tonnes of milk powder against a total
estimated production of 2.40 Lakh MTs. In 2000-01 India is expected to export 10000 MT of
skimmed milk powder due to rise in international prices to $2300 per MT from last year's
levels of $1400 per MT. These expectations are based on the strong demand from Russia,
East Asia and Latin America, and also on tightening of supply in EU, which accounts for
75% of the annual global Skimmed Milk Powder exports.
Major Players
Milk Powder/Dairy Whiteners : Major skimmed milk brands are Sagar (GCMMF) and
Nandini (Karnataka Milk Federation), Amul Full Cream milk powder is a whole milk powder
brand. Leading brands in the dairy whitener segment are Nestle's Everyday, GCMMF's
Amulya, Dalmia Industry's Sapan, Kwality Dairy India's KreamKountry, Wockhardt's Farm
Fresh and Britannia's MilkMan Dairy Whitener.
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Condensed Milk
The condensed milk market has grown from 9000 MT in 1998 to 11000 MT in 1999.
Condensed milk is a popular ingredient used in home-made sweets and cakes. Nestle's
Milkmaid is the leading brand with more than 55% market share. The only other competitor
is GCMMF's Amul.
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Major dairy products manufacturers
Some of the major dairy products manufacturers in the country:
Company Brands Major Products
Nestle India Milkmaid,Cerelac, Sweetened condensed milk, malted foods, milk
Limited Lactogen, Milo, Everyday powder and Dairy whitener
Milkfood Milkfood Ghee, ice cream, and other milk products
Limited
SmithKline Horlicks, Maltova, Viva Malted Milkfood, ghee, butter, powdered milk,
Beecham milk fluid and other milk based baby foods.
Limited
Indodan Indana Condensed milk, skimmed milk powder, whole
Industries milk powder, dairy milk whitener, chilled and
Limited processed milk
Gujarat Co- Amul Butter, cheese and other milk products
operative milk
Marketing
Federation
Limited
H.J. Heinz Farex, Complan, Glactose, Infant Milkfood, malted Milkfood
Limited Bonniemix, Vitamilk
Britannia Milkman Flavoured milk, cheese, Milk Powder, Ghee
Cadbury Bournvita Malted food
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Beyond Milk: Value Added Dairy Products to boost up profits
Rising consumption coupled with better margins in the value added dairy products (VADPs)
are driving the dairy players to get into the growth and higher profitable trajectory. Change in
demographics and rapid urbanization have resulted into manifold surge in the demand for
VADPs.
Milk products such as curd which were largely home products are currently available under
various brands. Due to convenience, health benefits and increased consumerism, milk
derivatives like buttermilk, low fat yogurt and flavored milk are nowadays part of regular
consumption.
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The traditional way.
For decades, dairy players in India have been engaged in the liquid milk processing activity
only. Backed by operation White Flood in 1970s, the milk industry in India witnessed the
first wave of development in the milk production which gave India its status of the largest
milk producer in the world.
This was spearheaded by the Co-operatives model which was supported by the GoI.
Ownership being with the farmers instilled trust among the member milk producers in the
cooperative model, which also ensured transparent returns. In addition, cooperatives also
provided various services like cattle vaccination, cattle insurance, artificial insemination,
installation of coolers at village level etc to improve productivity.
Further, there was minimal involvement of private players in the industry as approximately
80% of the retail price of the liquid milk went back to the farmers leading to low operating
margins (4-5%). This was despite the consistent upsurge in the retail prices of the liquid milk.
Consequently, the dairy companies were left with insufficient internal funds to plough back
into the operations for adoption of modern technologies or development of milk variants.
The above reasons coupled with factors such as evolving tastes and preferences, higher
affordability, etc, lead to the entities venturing into the VADP segment for better profitability.
Going the creamy way.
Over the past decade, significant transformation took place in the Indian demographic space
which led to heightened consumer interest in VADPs. This shift in the dynamics of the
industry proved beneficial for the manufacturers since margins in VADPs are more than
double the margins in the liquid milk segment. The profitability in liquid milk space ranges
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from 4-5%, whereas the profitability in VADPs ranges from 12% to 18%, attracting private
participation in the industry.As per the industry estimates, the share of VADP in the milk and
milk derivatives segment is growing currently at around 25% every year and is expected to
grow at the same rate until 2019-20. Product innovations are likely to accelerate Indias dairy
market which is anticipated to improve industry margins by attaining greater scale, higher
capacity use and an increasing contribution from new milk variants. Further, the development
of processing and packaging technology along with improvement in retail and cold storage
infrastructure has increased the shelf life of dairy products.
.the growth trajectory As per NDDB, the Indian dairy industry is all set to experience
high growth rates in the next eight years with demand likely to reach 200 million tonnes by
2022 from 132 million tonnes in 2013. Presently, only 20% of the milk production comes
from the organized sector comprising co-operatives and private dairies. The paramount
factors driving the growth in the dairy sector include rising disposable incomes, advent of
nuclear families and fast/instant food gaining ground in India. Other factors such as structural
changes in food habits, expansion of fast food chains and popularity of pizzas and pastas
aided the usage of milk variants of mozzarella cheese, processed cheese and flavored milk
etc.
Increasing participation from the private sector. Consumer preference towards VADPs
is taking forward the dairy sector. Besides brown-field/ green-field expansion, global dairy
companies too are venturing into milk derivatives business in this part of the world. The most
recent one is the 100% acquisition of Tirumala Milk Products Pvt Ltd by Groupe Lactalis SA,
France, one of the largest dairy players in the world. Another French dairy major Danone has
also increased its presence in the Indian dairy sector with slew of product launches such as
flavored curd, yoghurt etc.
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Other investments include Nestle Indias acquisition of 26% stake in Indocon Agro and
Allied Activities Pvt Ltd and Hatsun Agro Products Ltd acquiring 100% stake in Jyothi Dairy
Pvt Ltd Companies such as Parag Milk Foods Pvt Ltd, Prabhat Dairy Pvt Ltd have augmented
their capacities in the recent past to meet the increased demand of milk products.
.drawing investors attention
India consumption story and diversification by dairy players into VADPs are drawing
interests of investors which have led to surge in the PE deals. The prominent deals include
investment by IDFC and Motilal Oswal in Parag Milk Food Pvt Ltd, Rabobank group and
India Agribusiness Fund in Prabhat Dairy Pvt Ltd, IFC into Modern Dairies Ltd and
Blackriver Investment in Dolda Dairy Ltd. In one of the most recent investments, Fidelity
Growth Partners, India, along with participation of the existing social venture investor,
Aavishkaar, have invested in Odisha-based Milk Mantra Dairy Pvt Ltd. Recent deals in the
sector are the indication that the investors perceive value in the deals and see growth
prospects in the Indian dairy space. Right product mix likely to have a positive impact on the
credit profile of dairy companies Traditionally, the credit risk profile of dairy companies was
characterized by low profitability and moderate liquidity. The dairy companies rated by
CARE are largely in the BBB or BB category (refer the graph below) primarily on account of
moderate solvency profile. However, Mother Dairy Fruit And Vegetable Private Ltd, Co-
operatives associated with Gujarat Cooperative Milk Marketing Federation and some private
dairies are in the AA and A rating category on account of their superior procurement and
marketing channels and high share of VADPs in product portfolio. During FY14, the credit
profile of CARE rated dairy companies have broadly remained stable.
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Dairy activities have traditionally been integral to Indias rural economy. The country is the
worlds largest producer of dairy products and also their largest consumer. Almost its entire
produce is consumed in the domestic market and the country is neither an importer nor an
exporter, except in a marginal sense. Despite being the worlds largest producer, the dairy
sector is by and large in the primitive stage of development and modernization. Though India
may boast of one of the worlds largest cattle population, the average output of an Indian cow
is significantly lowercompared to its American counterpart. Moreover, the sector is plagued
with various other impediments like shortage of fodder, its poor quality, dismal transportation
facilities and a poorly developed cold chain infrastructure. As a result, the supply side lacks
in elasticity that is expected of it. On the demand side, the situation is buoyant. With the
sustained growth of the Indian economy and a consequent rise in the purchasing power
during the last two decades, more and more people today are able to afford milk and various
other dairy products. This trend is expected to continue with the sector experiencing a robust
growth in demand in the short and medium run. If the impediments in the way of growth and
development are left unaddressed, India is likely to face a serious supply demand mismatch
and it may gradually turn into a substantial importer of milk and milk products.
Fortunately, the government and other stakeholders seem to be alive to the situation and
efforts to increase milk production have been intensified. Transformations in the sector are
being induced by factors like newfound interest on the part of the organized sector, new
markets, easy credit facilities, dairy friendly policies by the government, etc. Dairy farming is
now evolving from just an agrarian way of life to a professionally managed industry the
Indian dairy industry. With these positive signals, there is hope that the sector may eventually
march towards another white revolution.
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IMARC Group, one of the worlds leading research and advisory firms, has come up with its
new report entitled Dairy Industry in India 2016 Edition: Market Size, Growth, Prices,
Segments, Cooperatives, Private Dairies, Procurement and Distribution, which is the
fifth edition of highly acclaimed publication. The study is an outcome of an intensive
research of the Indian dairy industry that draws upon a comprehensive analysis of every
major dairy segment in India. The study, which is based both on desk research and four
waves of qualitative primary research, has delved deeply into the following aspects of the
Indian dairy market:
Comprehensive situation analysis of the Indian dairy market and its dynamics:
Segments covered: Milk, UHT Milk, Flavoured Milk, Curd, Flavoured & Frozen Yoghurts,
Probiotic Products, Lassi, Buttermilk, Butter, Ghee, Paneer, Cheese, Khoya, Cream,
Skimmed Milk Powder, Dairy Whiteners, Sweet Condensed Milk, Ice Cream, Whey and
Dairy Sweets
Focus of the analysis in each segment:
Drivers and challenges in each market
Historical, current and future sales trends
Historical, current and future volume trends
Historical, current and future price trends
Size and analysis of the organized and unorganized markets
Structure of the market
Key players and products available in these markets
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Understanding Indias Foreign Trade in the Dairy Industry
Segments covered: All major dairy segments
Focus of the analysis in each segment:
Import volumes
Import values
Export volumes
Export values
Understanding Milk Procurement and Distribution in India
Focus of the analysis
Milk procurement models of private dairies and cooperatives
Milk procurement prices in India
Milk distribution models of private dairies and cooperatives
Challenges of milk procurement and distribution in India
Understanding the Technical and Financial Requirements for Setting up a Dairy Plant
Focus of the analysis
Cost of setting up a dairy plant in India
Loans and financing
Techno economic parameters
Expected income and expenditures
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Understanding the Government Policies in the Dairy Sector
Focus of the analysis:
Regulatory framework
Government initiatives
Duty structure
Evaluation of all Major Cooperatives and Private Dairies in India
Focus of the analysis:
Organization Overview
Financials and Processing Capacity
Product Portfolio
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REGULATION AND REGULATORY BODIES
Regulations and Regulatory bodies
The Indian processed dairy industry has grown and diversified enormously in the last few
years. To ensure the proper development and growth of this industrial sector, the Government
of India has instituted various laws and regulations.
Regulatory framework: The Government of India had promulgated the Milk and Milk
Product Order (MMPO) in 1992 ) after de-licensing the dairy sector in 1991. According to
this order, any person or dairy plant that handles more than 10,000 litres of milk per day or
500 metric tonnes of milk solids per year needs to be registered with the registering authority
selected by the Central Government. The main purpose of this order is to increase the supply
of liquid milk of a certain quality for consumption by the general public and maintain this
level. It is also used to regulate the production, processing and distribution of milk and milk
products such as butter, cream and cheese.
Recognizing the necessity for suitable amendments in the Milk and Milk Product Order of
1992 for a faster pace of growth in the dairy sector, the government has passed amendments
from time to time. This has made the Milk and Milk Product Order more liberal and dairy
entrepreneur friendly. Currently, there is no restriction on the setting up of new capacities.
Some of the features of the new amendments are as follows:
The provision of assigning milk sheds has been done away with.
The registration under MMPO-92 now covers sanitary, hygiene, quality and food
safety.
The provision of examination of dairy plant has been made flexible.
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The provision to grant registration in 90 days has been brought down to 45 days.
The power of registration of State registering Authority has been raised from one lakh
litres per day (LLPD) to two lakh litres per day.
No license is required for setting up a dairy project in India. Only a memorandum has to be
submitted to the Secretariat for Industrial Approvals (SIA) and an acknowledgment is to be
obtained. However, a Certificate of Registration is necessary under the Milk and Milk
Products Control Order (MMPO) 1992.
The dairy industry was de-licensed in 1991 with a view to encourage private investment and
flow of capital and new technology in the segment. Although de-licensing attracted a large
number of players, concerns on issues like excess capacity, sale of contaminated/ substandard
quality of milk etc induced the Government to promulgate the MMPO (Milk and Milk
Products Order) in 1992. Milk and Milk Products Order (MMPO) regulates milk and milk
products production in the country. The order requires no permission for units handling less
than 10,000 litres of liquid milk per day or milk solids up to 500 tpa. MMPO prescribes State
registration to plants producing between 10,000 to 75,000 litres of milk per day or
manufacturing milk products containing between 500 to 3,750 tonnes of milk solids per year.
Plants producing over 75,000 litres per day or more than 3,750 tonnes per year of milk solids
have to be registered with the Central Government. The stringent regulations, government
controls and licensing requirements for new capacities have restricted large Indian and MNC
players from making significant investments in this product category. Most of the private
sector players have restricted themselves to manufacture of value added milk products like
baby food, dairy whiteners, condensed milk etc.
All the milk products except malted foods are covered in the category of industries for which
foreign equity participation up to 51% is automatically allowed. Ice cream, which was earlier
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reserved for manufacturing in the small-scale sector, has now been de-reserved. As such, no
license is required for setting up of large-scale production facilities for manufacture of ice
cream.
Subsequent to de-canalization, exports of some milk based products are freely allowed
provided these units comply with the compulsory inspection requirements of concerned
agencies like: National Dairy Development Board, Export Inspection Council etc. Bureau of
Indian standards has prescribed the necessary standards for almost all milk-based products,
which are to be adhered to by the industry.
Proposal to Amend the MMPO
A proposal to raise the exemption limit for compulsory registration of dairy plants, from the
present 10,000 litres a day to 20,000 litres, is being considered by the Animal Husbandry
Department. The 75,000-litre limit is likely to be raised either to 100,000 litres or 125,000
litres in the amended order. The new order would also do away with the provision for re-
registration.
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Sectors Contribution To Economy
In sharp contrast to the industrially advanced Nations of the world, dairying in India
differentiates Itself in several socio-economic features. It ranks first In the bovine population
with 196 million cattle and 80Million buffaloes (a total 276 million animals), and Accounts
for about 51 percent of Asian and about 19 Percent of the world bovine population. With an
annual Increase of 4.7% in milk production since 1971, Dairying has played a prominent role
towards Household nutrition security and also in strengthening The rural economy. It has also
been recognised as an Instrument to bring about socio-economic Transformations in the rural
sector. The dairy sector has Helped the national economy by emerging as the Highest milk
producing country in the world. According to FAOs Economic and Social Development
estimate (FAO, 1998), Indias milk Production has increased from a mere 17 million Tonnes
produced in 1951 to 74 million tonnes in 1998. This is now 13.5 percent of the worlds milk
Production. This progress made by India in the field of Dairying may be attributed to the
concerted efforts of a Large number of milk producing farmers, scientists, Planners, NGOS,
dairy co-operatives and the industry. Presently, in the Agriculture Sector, milk is the Largest
contributor towards Indias GNP. The unique Feature is that 70 million rural families with
holdings of 2-4 cattle are engaged in milk production. This is in Contrast to specialised dairy
farmers in the western World, where a much smaller section of the population Is engaged in
milk production activity with large cattle Holdings. We have come a long-way towards food
Security and have been able to raise the per capita Availability of milk from 132 g/day
(1950s) to 214 G/day (1997). Further efforts are needed to raise this to The minimum
recommended level of 240 g/day. Projections for the demand of milk and milk Products over
the next two decades, indicate that rising Incomes, high income elasticity of demand and
Population growth, will generate a demand growth at The rate of about 7 percent per annum,
pushing the total Annual demand of milk up to 170 MT by the year 2020. In the competitive
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environment of liberalised Economies, it is a matter of concern whether India Would be able
to exceed the current 4.5 percent annual Growth in milk production to meet the anticipated
Increase in demand. Efforts for sustenance of growth Of dairy industry under the liberalised
economies of the WTO regimen present formidable challenges. Milk has been an integral part
of Indian food for centuries. The per capita availability of milk in India has grown from 172
gm per person per day in 1972 to 182gm in 1992 and 203 gm in 1998-99.This is expected to
increase to 212gms for 1999-00. However a large part of the population cannot afford milk.
At this per capita consumption it is below the world average of 285 gm and even less than
220 gm recommended by the Nutritional Advisory Committee of the Indian Council of
Medical Research. There are regional disparities in production and consumption also. The per
capita availability in the north is 278 gm, west 174 gm, south 148 gm and in the east only 93
gm per person per day. This disparity is due to concentration of milk production in some
pockets and high cost of transportation. Also the output of milk in cereal growing areas is
much higher than elsewhere which can be attributed to abundant availability of fodder, crop
residues, etc which have a high food value for milch animals. In India about 46 per cent of
the total milk produced is consumed in liquid form and 47 per cent is converted into
traditional products like cottage butter, ghee, paneer, khoya, curd, malai, etc. Only 7 per cent
of the milk goes into the production of western products like milk powders, processed butter
and processed cheese. The remaining 54% is utilized for conversion to milk products. Among
the milk products manufactured by the organized sector some of the prominent ones are ghee,
butter, cheese, ice creams, milk powders, malted milk food, condensed milk infants foods etc.
Of these ghee alone accounts for 85%. It is estimated that around 20% of the total milk
produced in the country is consumed at producer-household level and remaining is marketed
through various cooperatives, private dairies and vendors. Also of the total produce more
than 50% is procured by cooperatives and other private dairies. While for cooperatives of the
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total milk procured 60% is consumed in fluid form and rest is used for manufacturing
processed value added dairy products; for private dairies only 45% is marketed in fluid form
and rest is processed into value added dairy products like ghee, makhan etc. Still, several
consumers in urban areas prefer to buy loose milk from vendors due to the strong perception
that loose milk is fresh. Also, the current level of processing and packaging capacity limits
the availability of packaged milk. The preferred dairy animal in India is buffalo unlike the
majority of the world market, which is dominated by cow milk. As high as 98% of milk is
produced in rural India, which caters to 72% of the total population, whereas the urban sector
with 28% population consumes 56% of total milk produced. Even in urban India, as high as
83% of the consumed milk comes from the unorganized traditional sector. Presently only
12% of the milk market is represented by packaged and branded pasteurized milk, valued at
about Rs. 8,000 crores. Quality of milk sold by unorganized sector however is inconsistent
and so is the price across the season in local areas. Also these vendors add water and caustic
soda, which makes the milk unhygienic. India's dairy market is multi-layered. It's shaped like
a pyramid with the base made up of a vast market for low-cost milk. The bulk of the demand
for milk is among the poor in urban areas whose individual requirement is small, maybe a
glassful for use as whitener for their tea and coffee. Nevertheless, it adds up to a sizable
volume - millions of litres per day. In the major cities lies an immense growth potential for
the modern sector. Presently, barely 778 out of 3,700 cities and towns are served by its milk
distribution network, dispensing hygienically packed wholesome, quality pasteurized milk.
According to one estimate, the packed milk segment would double in the next five years,
giving both strength and volume to the modern sector. The narrow tip at the top is a small but
affluent market for western type milk products. The effective milk market is largely confined
to urban areas, inhabited by over 25 per cent of the country's population. An estimated 50 per
cent of the total milk produced is consumed here. By the end of the twentieth century, the
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urban population is expected to increase by more than 100 million to touch 364 million in
2000 a growth of about 40 per cent. The expected rise in urban population would be a boon to
Indian dairying. Presently, the organized sector both cooperative and private and the
traditional sector cater to this market. Market size for milk (sold in loose/ packaged form) is
estimated to be 36mn MT valued at Rs470bn. The market is currently growing at round 4%
pa in volume terms. The milk surplus states in India are Uttar Pradesh, Punjab, Haryana,
Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The
manufacturing of milk products is concentrated in these milk surplus States. The top 6 states
viz. Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu and Gujarat together
account for 58% of national production. Milk production grew by a mere 1% pa between
1947 and 1970. Since the early 70's, under Operation Flood, production growth increased
significantly averaging over 5% pa. About 75% of milk is consumed at the household level
which is not a part of commercial dairy industry. Loose milk has a larger market in India as it
is perceived to be fresh by most consumers. In reality however, it poses a higher risk of
adulteration and contamination. The production of milk products, i.e. Milk products including
infant milk food, malted food, condensed milk & cheese stood at 3.07 lakh MT in 1999.
Production of milk powder including infant milk-food has risen to 2.25 lakh MT in 1999,
whereas that of malted food is at 65000 MT. Cheese and condensed milk production stands at
5000 and 11000 MT respectively in the same year. Dairy Food Market in the India, which is
driven by rise in consumption levels, higher share of value added dairy products and rising
scope for branded players registered revenues of India ~ billion in FY2010. With the advent
of new multinational players in the industry, the revenues increased by 15.1% compared to
FY2011 where the total revenues reached INR ~ billion. Each segment in the Dairy Food
Market is subject to a gamut of different factors such as input prices and number of units sold
that play an important role in determining their respective revenues. The Dairy Food Market
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in the India has grown at a CAGR of 14.5% from India INR ~ billion in FY2009 to INR ~
billion in FY2014. The India Dairy Food market is comprised of various national and
multinational players that specialize in developing various value added dairy products.
Market revenues of Amul have increased noticeably from INR ~ billion in FY2009 to INR ~
billion in FY2014 which makes it the largest player in the India Dairy Products Market.
Mother Dairy was the second largest brand of Dairy products in FY2014. Hatsun Agro
generated revenues of INR ~ billion through Ice Cream and value added milk products.
Three main competitors in the Dairy Food products market in the India are Amul, Mother
Dairy and Hatsun Ago. Mother Dairy sold ~ million value added milk products in FY2014
followed by Parag (Gowardhan) selling ~ million units of milk products and Hatsun Agro
with ~ million units of Ice Cream. Since FY2010, Amul Yogurt has prevailed to be the
bestselling dairy product, majorly due to price cuts, strong sales of Amul Milk.
The market for dairy products in the India is changing at a brisk rate. Technological
advancements and product differentiation across ages as well as competitive pressures have
been significantly changing the market. Revenues from the Dairy Food Market in the India
are expected to expand to INR ~ million in FY2019, growing with a CAGR of ~% from
FY2014 to FY2019.
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Problems faced by the sector in general and the company in particular.
Main problems faced by Dairying Farmers Labels: Dairy Farming in India Although there is
a remarkable improvement of dairy enterprises in recent years, the dairy farmers faced some
problems in developing their dairy enterprise. The major constraint hindering the
development of dairy sector is: Shortage of feed: Shortage of green fodder and feed
concentrate is the root cause of poor performance of dairy sector in general as the genetic
milk production potential of crossbred cow could not be exploited fully in absence of proper
nutrition. Lack of Marketing Facilities: Due to lack of marketing facilities and extension
services, there is poor perception of the farmers towards commercial dairy enterprise as an
alternative to other occupation. Insufficient Veterinary Services: Due to Lack of proper
veterinary extension system there is poor perception to the farmers towards dairy enterprise
as a viable alternative to crop husbandry. Prevalence of Middleman: Unorganized fragmented
market for milk and milk products involved a chain of middleman who reaps the actual
benefit depriving the producers from their due share. Over the span of three decades, India
has transformed from a country of acute milk shortage to the worlds leading milk producer,
with production exceeding 100 million tonnes in 2006. This phenomenal success is attributed
to a Government initiative known as Operation Flood (19701996) and its intense focus on
dairy development activities. In that initiative, rural milk shed areas were linked to urban
markets through the development of a network of village cooperatives for procuring and
marketing milk. And milk production and productivity were enhanced by ensuring the
availability of veterinary services, artificial insemination (AI), feed and farmer education.
The investment paid off, promoting production gains of 45 percent per annum.
However, that growth has slumped to less than 3 percent in recent years, raising cause for
concern. The slowdown is attributed to the decline in investment in the dairy sector since the
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end of the Operation Flood initiative. Central and state government allocation for dairy
development has diminished in the past two five-year plans. To assess the dairy sectors
competiveness, a performance analysis looked at five factors: demand conditions, market
structure, factor conditions, related supporting industries, and government and the enabling
environment.
Demand conditions
Demand for dairy products in India is likely to grow significantly in the coming years, driven
by more consumers, higher incomes and greater interest in nutrition. Consumption of
processed and packaged dairy products is increasing in urban areas. Because of the increasing
competition from the private sector, several national and international brands have entered
the market and expanded consumers expectation of quality although only among a small
proportion of the population. In many parts of the country, people still prefer unpacked and
unprocessed milk delivered by a local milkman because of its taste and the perception of
freshness. The price elasticity for milk is high, thus demand for milk is very sensitive to price
changes.
Market structure
Until 2002, cooperatives traditionally were the dominant players in the formal sector. With
liberalization of the dairy industry, private investment has increased quite significantly.
However, the organized sectors share in milk procurement is very low because a large
proportion of the milk and milk products are sold through the informal channel (Table 3). The
informal demand absorbs approximately 41 percent of the milk and milk products produced
in the country, accounting for about 75 percent of the marketable surplus of milk. The formal
channel, with its packaged milk and dairy products, accounts for only about 25 percent of the
marketable surplus, which is about 15 percent of production. The informal sector consists of
98
the village milk vendors who procure loose milk from farmers and sell it in urban and peri-
urban areas directly to consumers, small private processors or hotels. The milk vendors also
may sell processed products, such as paneer or separated cream. The quality of the vendors
milk and milk products is not guaranteed. Largely sold in loose form, it is often adulterated
with several additives to control spoilage. Cooperatives are the central players in the formal
dairy sector. The cooperatives have a three-tier structure i) primary societies at the village
level, ii) unions at the district level and iii) federations at the state level. Currently, there are
14 federations in India. The success of the Gujarat Cooperative Milk Marketing Federation
(GCMMF), known for its Amul brand and its Amul model of cooperative, is acclaimed.
However, there is a perception that cooperative organizations generally have failed in other
parts of the country. A less recognized fact is that the cooperatives in other states are
organized differently than the GCMMF cooperatives. The GCMMF cooperatives operate as a
true representative of farmers and are run by professionally qualified managers. In most other
states, the cooperatives are managed by civil servants, function more as government bodies
and are weak representatives of farmers. Of the 14 major state cooperatives in the country, 10
have state government equity, of which 6 have government equity in excess of 51 percent.
Twelve of the 14 cooperatives have government officers as managing directors who are
appointed by the state government. It is not uncommon for these officials to change up to
three times a year. Because of such governance, cooperatives are mere parastatals and do not
work in the true spirit of cooperatives with elected farmer representatives and professionals
who run the organization. This governance structure influences the functioning of the entire
chain, from the state federation to the village societies and thus significantly impacts farmers
involvement in the chain. The primary differences between the GCMMF cooperatives and
other state cooperatives are price and services. In Gujarat, the price paid to farmers is based
on fat content; there is regular testing of milk each farmer supplies. In most of the other
99
states, there is hardly any testing of milk. In other state cooperatives, the village society
president wields a lot of power and typically decides the prices paid to farmers. Reportedly,
farmers with some degree of influence receive higher prices while those without receive
lower remuneration. Being the lead organizations, the cooperatives also set a benchmark for
prices paid by other buyers, such as local vendors and private dairies, who tend to pay 50
paise or 1 rupee ($ .02) more than that paid by the cooperatives. Thus, if the farmgate price
paid by the cooperative is low, other players also pay a low price. For most of the private
dairies, agents procure the milk from farmers. Some private dairies have established village
societies for milk collection that follow the cooperative model. However, this model requires
much larger investment and is not economically feasible, considering that cooperatives
receive considerable development support from the government (such as feed subsidies). It is
not uncommon for private dairies to make loans to farmers, which is a key reason for the
somewhat large share of milk directed to this channel.
Factor conditions
Factor conditions for dairying entail the quality of animals, human resources and technical
skills, land availability, capital, credit, infrastructure and other inputs relevant to the value
chain, as the following explains. The quality of animals is critical in determining its milk
productivity and hence overall production. Currently, low productivity per animal hinders
development of the dairy sector. Despite being the worlds largest milk producer, Indias
productivity per animal is very low, at 987 kg per lactation, compared with the global average
of 2 038 kg per lactation. The low productivity is a result of ineffective cattle and buffalo
breeding programmes, limited extension and management on dairy enterprise development,
traditional feeding practices that are not based on scientific feeding methods, and limited
availability and affordability of quality feed and fodder. In addition, the limited supply of
quality animals is exacerbated by policies limiting interstate movement of animals.
100
Indigenous cattle and buffalo make up 45 percent of the countrys total milch population, in
contrast to the cross-bred cows at 10 percent. Animal health and breeding services provision,
veterinary infrastructure development and vaccinations are the responsibility of the state
government. These services have traditionally been provided for free or at a very subsidized
rate. In the past few years, there has been increasing awareness that the state pays heavily to
offer these services, which are easily available to farmers (Ahuja et al.). Consequently, many
states have instituted partial or full-cost recovery fees for providing the services.
Related supporting industries
Strong supporting industries are critical for the development of any industry. In the case of
dairying, the National Dairy Research Institute pursues research and education in all aspects
of dairying: microbiology, chemistry, technology, engineering, animal genetics and breeding,
livestock production and management, animal nutrition, animal physiology, dairy economics
and dairy extension education.
101
FUTURE POTENTIAL OF THE SECTOR.
Dairy Industry plays an important role in in the socio-economic development of India
generating huge rural employement and providing cheap and nutritional food to a vast
population.The Indian Dairy Industry is growing very rapidly, trying to keep a pace with the
galloping progress around the world. Presently, India is the world's largest milk producer,
accounting for more than 13 percent of the world's total milk production. In the next 10years,
India's dairy sector is expected to triple its production in view of expanding potential for
export to Europe and the the West. The urban market for milk products is expected to grow at
an accelerated pace of around 33 percent per annum to around Rs. 43,500 crore by 2015. The
emergence of a significant middle-class, urbanisation and the expansion of modern shopping
habits by busy, health concious and well-informed consumers is raising the consumption of
packaged milk in India. Economic growth is sustaining the purchaseing power of Asia's
middle-class, which is convenience stores from Shanghai to Mumbai. The global
opportunities available to the Indian dairy industry arise primarily out of availability of a
large quantity of competitively priced milk. Most of the traditional health and wellness
products sold through the dairy sector are represented by processed dairy products such as
malt beverages and infant nutritional products. The visible trends are that the consumption of
milk products is on the rise. While it is growing at about 1-1.2 percent elsewhere in the
developed world, India and China are beating these trends. A number of categories which are
highly dependent on organised retail like frozen food products are expected to witness
significant growth in the years ahead. The India Dairy Industry is witnessing a high growth
with rise in milk production and increased demand for dairy products across country, says
RNCOS in its latest research report.
Noida, UP (releasewire) 01/07/2015 The India dairy market has witnessed a strong
growth in production as well as consumption patterns, in the recent years. The increasing
102
penetration of foreign players and product developments by the existing dairy companies is
leading to reformation of Indian dairy industry. With increasing production of milk and
elevating demand for dairy products, both traditional and value-added, is set to raise
countrys sector to a new height. Hence, it is anticipated that the Indian dairy market will
grow at a high CAGR of over 10% during 2014-2018. In India, there are various laws and
regulations which overlook the food and related commodities; hence report also contains
sections on government regulations and Government initiatives. Additionally, report provides
the key primary insights of the Indian dairy sector through sections on industry challenges
and opportunities. Report throws light upon the Industry trends & drivers which are expected
to transform the face of Indian dairy sector in the coming years. Finally, competitive
landscape section provides the business overview, financials, strength & weakness, and
recent development of major dairy federations and private players. The GCMMF is the most
organized in meeting future growth because of its investing in dairy development activities,
such as ensuring the availability of feed and fodder and veterinary services. It is in a position
to increase its procurement in the coming years. Also, in terms of development, the GCMMF
leads the country in modern products, such as sugar-free ice cream. The private dairy is not
involved in dairy development activity and is only focusing on milk procurement. Faced with
increasing competition, it will have to move to newer areas for expansion. Because of low
involvement of farmers in the Orissa Cooperative, the private sector will find it easy to move
into milk procurement in its area. The lack of variety and quality of its products will make it
difficult for Orissa to compete with the private sector. If the MACS model becomes popular,
procurement will be affected. MACS involvement in dairy development activity will help the
model grow and expand the milk procurement. It is geared to face competition from the
private sector because of close links with farmers at the village level.
103
A) ACTUAL WORK DONE
Task No 1:-
Title:- Visiting The Retail Outlets
Objective:- To Collect information about counters and their no.
Work Done :-
14/06/2016 - Outlets visited 21
Research Methodology Adopted:-
Sampling Method - Survey Method and Personally visit the outlets in the market area
Sample size - 159
Data Collection Tools Used - Interview Method
Interpretation - Various data collected related to brand variants price etc.
104
Task No 2:-
Title:- To Find Out new outlets for ATM
Objective :- To visit the outlets & select them for ATM
Work Done:-
Selected Outlets for ATM - 7
Sample size - 15
Interpretation - Visited outlets which fulfils respective criteria.
Task No 3:-
Title:- Locating Outlet for Customized Boards
Objective:- To visit the outlets & select them for customized boards
Work Done:-
21/06/2016 - Selected outlets 7
105
Sample size - 20
Interpretation - Visited outlets and placed boards according to requirements.
Task No 4:- New Outlet Addition for Amul Milk.
Objective:- To generate new outlets
Work Done:-
22/06/2016 - Outlets Started 3
Sampling Method - Survey Method and Personally visit the outlets in the market area and
questionnaire
Sample size - 10
Data Collection Tools Used - Interview Method and Questionnaire
Interpretation - Visited outlets and convinced retailers.
106
Task No 5:- Umbrella Activity
Objective:- To promote and sale Amul milk & Dahi
Work Done:-
25/06/2016 :- Total Sale - 5.2 litres Amul Taza & Dahi - 400 gm
26/06/2016 :- Total Sale - 10 litres Amul Taza & Dahi - 600 gm
Sampling Method - Projective Techniques
Data Collection Tools Used - Interview Method and Projective Technique
Interpretation - Interview technique used to promote and sale milk and dahi.
Task No 6:- Working in Kamthi & Output
Objective:- To Visit & Start new outlets
Work Done:-
Total Counters- 15
New counters started- 8
Output:- If Amul offered credit facility as other brands are offering then it will helpful to
increase the sale of Amul.
107
Sampling Method - Survey Method
Sample size - 20
Interpretation - Data collected and questionnaire is used.
Task No 7:- Newly Launched 6 Litre Pack promotion
Objective:- To visit Hotels, Restaurants, Caterers and generate orders
Work Done:-
22/07/2016 to 04/08/2016
Productive Outlets - 10
Productive Total Current Sale:- 102 Lit.
Feedback:- Retailers are quite happy with price.
Sampling Method - Survey Method and Interview
Sample size - 80
Data Collection Tools Used - Interview Method and Questionnaire
Interpretation - Visited hotels restaurants caterers and convinced as well as order taken as
per requirement.
108
B) FINDINGS AND SUGGESSTIONS
The current sale of Amul Milk is good but adas & Retailers demanding schemes
& commissions
It is observed that Amul first increases the prices & the commission to retailers
remains constant.
It is also observed retailers demanding replacement policy which is not offered
by Amul but other brands are offering.
Schemes should be more flexible & offered for longer period.
It is also observed that brands like Dinshaws offering schemes such as if retailers
buy 2 more extra crates then they will get Rs. 18 per crate.
109
C) CONCLUSION
The company can be launched new variant.
If Amul started the same variant which contains 3% fat then most of retailers will
started buying Amul milk
For Example :-Haldirams Morning Milk contains 3% Fat
Because of maximum suggestions from them.
If offering schemes of giving commissions to retailers or on crate it will also
beneficial for company.
110
APPENDIX
F
The fat content of milk is the proportion of milk, by weight made up by butterfat. The fat content,
particularly of cow's milk, is modified to make a variety of products. The fat content of milk is usually
stated on the container, and the colour of the label or milk bottle top varied to enable quick
recognition.
G
The GCMMF is the largest food products marketing organisation of India. It is the apex
organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing organisation
for products under the brand name of Amul and Sagar.
Operation Flood:- The transition of the Indian milk industry from a situation of net import
to that of surplus has been led by the efforts of National Dairy Development Board's
Operation Flood. programme under the aegis of the former Chairman of the board Dr.
Kurien.
Packaged milk can be divided according to fat content as follows,
Whole (full cream) milk - 6% fat
Standardized (toned) milk - 4.5% fat
Doubled toned (low fat) milk - 3% fat
111
R
Regulatory framework: The Government of India had promulgated the Milk and Milk
Product Order (MMPO) in 1992 ) after de-licensing the dairy sector in 1991. According to
this order, any person or dairy plant that handles more than 10,000 litres of milk per day or
500 metric tonnes of milk solids per year needs to be registered with the registering authority
selected by the Central Government.
Strong supporting industries are critical for the development of any industry. In the case of
dairying, the National Dairy Research Institute pursues research and education in all aspects
of dairying: microbiology, chemistry, technology, engineering, animal genetics and breeding,
livestock production and management, animal nutrition, animal physiology, dairy economics
and dairy extension education.
112
BIBILOGRAPHY
[1] Early History of Amul online
Available:- https://www.amuldairy.com/index.php/about-us/history.
[2] Management Structure
Available:- https:// www.amul.com GCMMF ,
[3] Achievement Awards and Latest Developments
Available:- https://www.amul.com/m/a-note-on-the-achievements-of-the-dairy-cooperatives
[4] Products and Services Offered
Available:- https://www.indiastudychannel.com.
[5] Performance and Market Share
Available:- https:// www.marketing91.com/marketing-mix-of-amul/, www.businesstoday.in
[6] Sector Size and Major Players
Available:- https:// indiamicrofinance.com/indian-dairy-industry-report-2014-pdf.html
[7] Regulations and Regulatory Bodies
Available:- https:// www.archive.india.gov.in/citizen/agriculture/index.php?id=59
[8] Sectors Contribution to Economy
Available:- https:// www.aavinmilk.com/dairyprofile.html
[9] Future Potential of the sector
Available:- indiamicrofinance.com/indian-dairy-industry-report-2014-pdf.html
113

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SUMMER PROJECT REPORT

Sales and Promotion of Fresh Products.

Dr. Ambedkar Institute of Management Studies &

This is to certify that the investigation described in this report titled

Sales and Promotion of Fresh Products in selected areas of

summer internship project. The study was done in the organisation,

AMUL, in partial fulfillment of the requirement for the degree of Master of

Business Administration of R. T. M. Nagpur University, Nagpur.

is of sufficiently high standard to warrant its submission to the said

Dr. Sudhir S. Fulzele

It is a matter of pride and privilege for me to have done a summer

internship project in AMUL and I am sincerely thankful to them for

providing this opportunity to me.

I am thankful to Mr. KEVIN ARAMBHADIYA for guiding me through

possible to complete this project without his support.

I am also thankful to all the faculty members of Dr. Ambedkar Institute of

Management Studies & Research and particularly my mentor

Prof. Amardip Kurukwar for helping me during the project.

Finally, I am grateful to my family and friends for their unending support.

(Name and Signature of the Student)

15 B) Findings and Suggestions 109

development programme for India popularly known as Operation Flood or White

Amul meant different things to different people :

To a Milk Producer A life enriching experience

To a Consumer Assurance of having wholesome milk

To a Mother A reliable source of nourishment for her child

To the Country Rural Development and Self Reliance

Amul-operative registered on 14 December 1946 as a response to the exploitation of marginal

to collect milk from mikka and supply it to Bombay city.

were formed for each village, too.

symbolised the pride of swadeshi production."

spread to other parts of India.

previously the chief general manager before this appointment.

organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing organisation

It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known as

exclusive marketing organisation of 'Amul' and 'Sagar' branded products. It operates

Indian sweets, etc.

established Amul in the league of top dairy players in world trade.

dream. To hope. To live.

Year of Establishment 1973

The three-tier "amul model"

period and has continued to grow.

have such parallels of development encompassing such a large population.

leading to their economic emancipation.

Is has multi-dimensional impacts

Importance of getting government out of commercial enterprises

Importance of market failure in agriculture

Power & problems of participatory organisations

Importance of policy correct

Responsible for Marketing of Milk & Milk Products

Responsible for Procurement & Processing of Milk

Responsible for Collection of Milk

Responsible for Milk Production

The main functions of the VDCS are as follows:

training on Animal Husbandry & Dairying, etc.

Selling liquid milk for local consumers of the village

Supplying milk to the District Milk Union

by the District Milk Union.

District Cooperative Milk Producers Union (Dugdh Sangh)

The main functions of the Union are as follows:

Procurement of milk from the Village Dairy Societies of the District

for VDCS staff & Management Committee members.

Selling liquid milk & milk products within the District

services provided to members.