WINTER INTERNSHIP REPORT

PROJECT TITLE: -
1) Estimating Institutional Requirement of Fresh Milk and
Mapping Seasonal Variations of Milk
2)Understanding the buyer persona of the retailers and
finding out the gap in the distribution process

COMPANY NAME: - AMUL

BY
STUDENT NAME: - ANAMIKA NANDI
ROLL NO: -
Under the Guidance of NARENDRA SINGH SONIGRA
Guide Designation: - BRANCH MANAGER
 ACKNOWLEDGEMENT

In the winter internship, I have been assigned the responsibility of

preparing a project report entitled: -
1) Estimating Institutional Requirement of Fresh Milk and Mapping
Seasonal Variations of Milk.
2)Understanding the buyer persona of the retailers and finding out the
gap in the distribution process.

I express my hearty gratitude to Mr. Narendra Singh Sonigra, Branch

Manager of Amul and Dr. Vinay Nandre, Pune institute of Business
Management under whose guidance and supervision, I have completed
this dissertation.

Place: Guwahati

Date: ( Anamika Nandi)

COMPANY CERTIFICATE
CONTENTS
 PROJECT SYNOPSIS

Project Title – 1) Estimating Institutional Requirement of

Fresh Milk and Mapping Seasonal Variations of Milk
2)Understanding the buyer persona of the retailers and finding
out the gap in the distribution process
Company Name- Amul
Student Name- Anamika Nandi
Student Roll No- MBA18B06
Project Guide Name- Narendra Singh Sonigra
Project Guide Designation- Branch manager
Confidential Report (Yes/No)- No
Duration of project- 18-12-2018 to 18-1-2019
 ABOUT THE SECTOR

There are so many sectors which play vital role in increasing the country’s GDP, of
which fast-moving consumer goods (FMCG) sector is the 4th largest sector in the
economy of India which includes household and personal care accounting for 50
per cent of FMCG sales in India. Growing awareness, easier access and changing
lifestyles have been the key growth drivers for the sector. The urban segment
(accounts for a revenue share of around 55 per cent) is the largest contributor to
the overall revenue generated by the FMCG sector in India. However, in the last
few years, the FMCG market has grown faster in rural India as compared to the
urban India. Semi-urban and rural segments are growing at a rapid pace and FMCG
products account for 50 per cent of total rural spending
The Fast Moving Consumer Goods (FMCG) industry primarily deals with the
production, distribution and marketing of consumer packaged goods, i.e. those
categories of products that are consumed at regular intervals. Food & beverage,
personal care, pharmaceuticals, plastic goods, paper & stationery and household
products etc. comes under FMCG products. The industry is vast and offers a wide
range of job opportunities in functions such as sales, supply chain, finance,
marketing, operations, purchasing, human resources, product development and
general management between the same period. Packaging is very important for
FMCGs. The logistics and distribution systems often require secondary and tertiary
packaging to maximize efficiency. The unit pack or primary package is critical for
product protection and shelf life and also provides information and sales
incentives to consumers.

Market Size
Market consist of various sector and each sector have a specific the size in market.
Sector like a retails is growing with a very high speed. Because people prefer to
buy product online as it help use of growth of retail sector it also help FMCG sector
to grow at high very high speed.The Retail market in India is estimated to reach
US$ 1.1 trillion by 2020 from US$ 840 billion in 2017, with modern trade expected
to grow at 20 per cent - 25 per cent per annum, which is likely to boost revenues
of FMCG companies. Revenues of FMCG sector reached Rs. 3.4 lakh crore (US$
52.75 billion) in FY18 and are estimated to reach US$ 103.7 billion in 2020.
 SOURCE: - IBEF.ORG

Government Initiatives
After Demonetization, GST has been one of the biggest transformations that India
has seen in years. GST became a game changer for the Indian Economy. From
boosting up the consumer goods-industry (FMCG Industry) to bring forth varied
benefits to the economy, the new Goods and Services Tax (GST) regime can make
the market go up within the shortest time. The fact is undeniable that FMCG is one
of the fastest growing sectors of the Indian Economy. VAT, Service Tax, Excise
duty, Central Sales Tax etc. have to be paid by the FMCG Sector under the current
GST Regime. The Consumer Packed Goods or we can say the FMCG (Fast Moving
Consumer Goods) current tax rate is nearly 22-24%.
 ABOUT THE COMPANY AND THE DEPARTMENT

AMUL (Anand Milk Producers Union Limited)

-THE TASTE OF INDIA

VISION: - Amul’s vision is to provide more and more satisfaction to the

farmers, employees and distributers.

MISSION: - To endeavor to satisfy the taste and nutritional requirements of

the customers, through excellence in marketing, co-operative network. Amul is
also committed to offer quality products that provide best value for money.

History
Amul was founded in 1946 to stop the exploitation by the middleman. It was
started more than 65 years back in Anand, a small town in Gujarat. Sardar
Vallabhbhai Patel advised them to get rid of the middleman and form their own
cooperative, which would have procurement, processing and marketing under
their control. Under the inspiration of Sardar Vallabhbhai Patel and the guidance
of leaders like Morarji Desai and Tribhuvan das, they formed their own
cooperative in 1946.

This cooperative, the Kaira District Cooperative Milk producers Union Ltd. began
with just two village dairy cooperative societies and 247 litres of milk and is today
better known as Amul Dairy. The Amul model has helped India to emerge as the
largest milk producer in the world. More than 15,000,000 milk producers
contribute their milk in 144, 500 dairy cooperative societies across the country.
The milk is processed in 184 district co-operative unions and marketed by 22
state marketing federations, ensuring a better life for millions.
Product Categories and Brands

AMUL MILK Amul Gold, Amul Taaza, Amul Slim Trim Milk, Amul Shakti

BREAD SPREADS Amul Choco Buttery spread, Amul Butter, Amul Lite, Amul
Unsalted Butter
CHEESE Amul Processed Cheese, Amul Cheese Spread, Pizza Mozzarella
Cheese
BEVERAGES Amul Kool Flavored milk, Amul Masti Buttermilk, Amul Lassi
ICE-CREAM Amul Epic, Amul Ice Creams, Amul Frozen Yoghurt, Amul
Creame Rich
PANEER Amul malai paneer, Amul fresh paneer, Amul tin paneer
DAHI Amul Masti Dahi
GHEE Amul ghee, Amul Yellow (cow) ghee, Amul brown ghee
MILK POWDERS Amul spray, Amulya
MITHAI RANGE Amul Shrikhand, Amul Gulab Jamoon, Amul Basundi
MITHAI MATE Amul Mithai Mate
CHOCOLATES Amul chocolate, Amul chocozoo, Chocolate syrup, Amul wafer
chocolates, Amul Rejoice Assorted Chocolate, Amul Cooking
Chocolate
LACTOSE FREE MILK Lactose free milk
FRESH CREAM Amul Fresh Cream, Amul Whipping
AMUL SOUR CREAM Amul sour cream
AMUL CATTLE FEED Amul cattle feed
HAPPY TREATS Aloo Tikki, French Fries, Potato Wedges, Veg Burger Patty,
Veggie Stix
A snapshot of the financial performance of the company
during the last 10 years (2007-17)
 Net Revenues:-
 EBITDA: -
 EPS: -
 Cash from operations: -
 The gross sales have grown at a CAGR of
 The operating profit margin has grown at
 Net profit margin growth
 The average percentage of Return on Capital
Employed(ROCE) is
 Market Capitalization is
 Sales Organization Chart

MD

COO

SR GM
SALES

ZONAL
MANAGER
SALES

BRANCH
MANAGER

MILK IN
CHARGE

PSM
 INTERNSHIP SUMMARY

Project 1: - ESTIMATING INSTITUTIONAL REQUIREMENT OF FRESH MILK AND

MAPPING SEASONAL VARIATIONS OF MILK
In the first topic , we were given to study the institution’s requirement or
consumption of fresh milk on the daily basis .The institutions includes not only the
Educational Institutes but also the HORECA Segment lies underneath it. Here we
needed to visit around all the reputed colleges, hotels , Restaurants and Canteens of
Guwahati city and need to record the estimation of the requirement by the same.
Apart from it , we were also asked to map the seasonal variations of various
institutes. Their daily consumption or requirement did vary from each other. We had
visited around 5 to 6 prime institutes of Guwahati city and around 33 hotels and
restaurants who consume milk on regular basis. The seasonal consumption (during
festive or any occasion) found to be a bit higher than the daily requirement .Apart
from this , we have learnt about the distribution process of Amul fresh milk.
Project 2 : - UNDERSTANDING THE BUYER PERSONA OF THE RETAILERS AND THE
FINDING OUT THE GAP IN THE DISTRIBUTION PROCESS
In the second topic we were assigned with a certainly new area where the company
already has recorded few loopholes in the market. Here, we needed to record the
purchasing of various retailers, there mindset of purchasing various brands, we here
gained knowledge regarding the insight of the market. In an average of 10 km area
we have recorded that the distributor has only 10 to 12 retailers to distribute which
is comparatively lesser than the others.
 PROJECT DESCRIPTION

PROJECT TITLE 1: -
Estimating Institutional Requirement of Fresh Milk and Mapping Seasonal
Variations of Milk.

METHODOLOGY: -
RESEARCH DESIGN: - For conducting the research, Exploratory research
design was being carried out as I was not aware of the usage/consumption
of milk in different institutions and its causes of seasonal variations.
TARGET POPULATION: -The area covered under Jalukbari to Airport
Road. It includes all the retailers, institutions, hotels, restaurants, canteens
and societies.
SAMPLING FRAME: - All the institutions, hotels, restaurants and
canteens of the area.
SAMPLING SIZE: - 56
SAMPLING TECHNIQUES: - Stratified Simple Random Sampling.
DATA COLLECTION: - In-depth interviews
DATA ANALYSIS TOOLS: - Chi- Square
Data Analysis
Chi-Square(χ2) Test: -
For the statistical analysis of the data of institutional requirement of
fresh milk and mapping seasonal variations, I have employed the chi-square test
to test the significance of difference between observed and expected values.
Here,
The null hypothesis to be tested is
H0: there is no significant difference between the consumption of
milk in regular day scenario and seasonal variations

Under H0, the test statistics is

χ2 =∑ (Oi – Ei)2/Ei ~ chi- square distribution with (n-1) d.f.

Where
Oi = observed frequency
Ei = expected frequency
 Observed Frequency
Per day Consumption of Milk(in Litres)
Area Visited
Regular Day Scenario Seasonal Variations Row Total(Ri)
Gauhati University 84 128 212
Dharapur 24 0 24
Jalukbari 181.5 263 444.5
Gotanagar 52 67 119
Lankeshwar 247 264 511
Azara 355 181 536
Borjhar 230 340 570
Vip 202 227 429
Column Total(Cj) 1375.5 1470 2845.5

Expected Value
Per day Consumption of Milk(in Litres)
Area Visited
Regular Day Scenario Seasonal Variations
Gauhati University 102.4797048 109.5202952
Dharapur 11.60147601 12.39852399
Jalukbari 214.8690037 229.6309963
Gotanagar 57.52398524 61.47601476
Lankeshwar 247.0147601 263.9852399
Azara 259.099631 276.900369
Borjhar 275.5350554 294.4649446
Vip 207.3763838 221.6236162
 Per day Consumption of Milk(in Litres)
(O-E)2/E Regular Day Scenario Seasonal Variations
Gauhati University 3.33236215 3.118138869
Dharapur 13.25033098 12.39852399
Jalukbari 5.182182577 4.849042269
Gotanagar 0.530464167 0.496362899
Lankeshwar 8.8198E-07 8.25281E-07
Azara 35.49553791 33.2136819
Borjhar 7.525145079 7.041385752
Vip 0.139386664 0.130426093

Now,
χ2 = ∑ (Oi - Ei)2/Ei
= 126.702973

DEGREES OF FREEDOM= 7

Level of significance= 3.06773E-24

CONCLUSION
Since calculated value of χ2 is greater than the tabulated value. Therefore, it is
significant and the null hypothesis is accepted at 3% level of significance. Hence
there is a significant difference between the observed and expected values.
i.e there is significant difference between the consumption of milk in
regular day scenario and seasonal variations
PROJECT TITLE 2: -
Understanding the buyer persona of the retailers and finding out the gap in
the distribution process.

METHODOLOGY: -
RESEARCH DESIGN: - For conducting the research, Exploratory research
design was being carried out as I was not aware of the buying behavior of
the retailers
TARGET POPULATION: -The area covered under Adabari to Maligaon.
It includes all the retailers, institutions, hotels, restaurants, canteens and
societies.
SAMPLING FRAME: - All the retailers of the area who keeps pouch milk
SAMPLING SIZE: - 20
SAMPLING TECHNIQUES: - Stratified Simple Random Sampling.
DATA COLLECTION: - In-depth interviews
Data Interpretation
After conducting an in-depth interview in these areas I have seen a gap in the
distribution process of fresh milk. I have got only 15 to 20 retailers who keep
Amul pouch milk in these areas which is apparently a disappointing one.
Following are the problems recited by the various retailers
 Bad behavior of the distribution people
 Lack of time management in the distribution process
 The distributors irregular distribution to the existing retailer
 The distributor doesn’t match up the demand of the retailers

While in the Kamakhya Railway Station area it is been noticed that almost all
the vendors use
tea vending machine and the rest out retailers uses powdered milk or Amul
tazza for making tea.
LEARNINGS / FINDINGS