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A PROJECT REPORT ON

Industrial Visit
On

Amul Dairy Industry

In partial fulfillment of the requirement for the
Production and Operations Management

In the Master of business administration programmed.

Submitted to:Mr. Tejash Shah Faculty member Program year 2011

Submitted by Anil (84) Brijesh(71) Vijendra (104)

Ahmedabad MBA Program

Ashvin (65) Ashok (73) Dhruv (89)

Chimanbhai Patel Institute of Management & Research

PREFACE
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Now a day, only theoretical knowledge is not sufficient, but practical knowledge is required to perform any difficult or challenging tasks and M.B.A. is the branch of business related with the practical knowledge. I have had enough guidance at the AMUL and for getting information regarding the field of management.

As a part of our syllabus we are supposed to visit the company and take the knowledge of its working. By this knowledge, students can know the current scenario of the market where it is going on. With the help of information given by the authorities of the concerned company, we prepare a report included all the information and other data given by the authorities of the company.

To become perfect in the field of management one needs both theoretical and practical knowledge also as written above. In contrast with theoretical knowledge, practical knowledge is very important and necessary as it helps student in the practical field to get the idea about the exact position of the entrepreneur and the manager. In this way after completing studies, one can better in field of business. Training is a part of a management development it is an essential to come up with the changing environment and automation for as well as new entrance in the organization.

M.B.A. course is specially designed to widen the knowledge of various management aspects and other related terms. In this project work I tried my level best to give the prefect information regarding the working and management of Banks.

ACKNOWLEDGEMENT
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Every work accomplished is a pleasure a sense of satisfaction. However a number of people always motivate, criticize and appreciate a work with their objective ideas and opinions, hence we would like to use his opportunity to thank all, who have directly or indirectly helped us to accomplish this project. Firstly I would like to thank R.K. Pandey sir without whose support this project could not be completed. Next we would like to thank all the people, who gave their valuable time and feedback to this project. We would also like to thank my college for supporting us with resources, which beyond any doubt have helped me. Let me also use this opportunity to thank our team members who have contributed to this project with their invaluable opinions and suggestions, which has gone a long way in soothing our rough edges as a teammate.
Thanking you Place: Anand

CONTENT

No. Particular 1 2 3 4 5 6 7 8 9 10 Front page Preface Acknowledgement Contents History of Amul Products of Amul Information Technology in Operation Conclusion Learning value Bibliography

Page No. 1 3 4 5 6 22 26 32 33 37

INTRODUCTION

AMUL means "priceless" in Sanskrit. The brand name Amul," from the Sanskrit "Amoolya was suggested by aquality control expert in Anand. Variants, all meaning priceless", are found in several Indian languages. Amul(Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat, India. AMUL is based in Anand town of Gujarat and has been a sterling example of a co-operative organizations success in the long term. It is one of the best examples of co-operative achievements in the developing world. "Anyone who has seen ... the dairy cooperatives in the state of Gujarat, especially the highly successful one known as AMUL, will naturally wonder what combination of influences and incentives is needed to multiply such a model a thousand times over in developing regions everywhere. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand. Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050million (2006-07). Currently Amul has 2.6 million producer members with milk collection average of 10.16 million litres per day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets. Other potential markets being considered include Sri Lanka. DrVergheseKurien, former chairman of the GCMMF, is recognised as the man behind the success of Amul. On 10Aug 2006 ParthiBhatol, chairman of the Banaskantha Union, was elected chairman of GCMMF.Amul products have been in use in millions of homes since1946.
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Amul Butter, Amul Milk Powder, Amul Ghee,Amulspray, Amul Cheese, Amul Chocolates, AmulShrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulyahave made Amul a leading food brand in India. (Turnover:Rs. 52.55 billion in 2007-08). Today Amul is a symbol ofmany things. Of high-quality products sold at reasonableprices. Of the genesis of a vast co-operative network.Of thetriumph of indigenous technology. Of the marketing survey of farmers' organization and of a prove model for dairy development.

Amul
Products listing of product is given below: Revenue Template: Revenue$1 billion USD (in 2006-07) Employees 2.41 million milk producers Website www.amul.com Sales 1994-95 1995-96 1996-97 2007-08 2008-09 2009-10 Turnover Rs (million) 11140 13790 15540 52554 67113 80053 US $ (in millions) 355 400 450 1325 1504 1700

GCMMF LTD (Gujarat Cooperative Milk Marketing Federation)

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GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF) is Indias largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest ofconsumers by providing quality products which are good value formoney. Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is thelargest Organization in FMCG industry engaged in marketing of milk& milk products under the brand names of AMUL and SAGAR with anannual turnover exceeding Rs 5000 crores.GCMMF is a unique organization. It's a body created by Farmers,managed by competent professionals serving a very competitive andchallenging consumer market. It is a true testimony of synergistic national development through the practice of modern managementmethods. We in GCMMF stand for integrity, excellence and quality through innovation. Our roots are embedded in the phrase Work is worship". Those who share these values will find themselves at home with us. At GCMMF Ltd, while in pursuit of excellence, we offer a uniquecareer opportunity to unlock your own potential. If you are looking fora challenging opportunity, you can explore your options with us. Wefirmly believe that you will never look back in your career again.

Members:

13 district cooperative milk producers' Union

No. of Producer Members:

2.9 million
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No. of Village Societies: Total Milk handling capacity: Milk collection (Total - 2009-10): Milk collection (Daily Average 2009-10): Milk Drying Capacity: Cattlefeed manufacturing Capacity:

15,322 13.07 million litres per day 3.32 billion litres 9.10 million litres

647 Mts. per day 3740 Mts per day

History
Amul: The origin
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The mighty Ganges at its origin is but a tiny stream in the Gangotriranges of the Himalayas. Similar is the story of Amul which inspired Operation Flood' and heralded the 'White Revolution' in India. Itbegan with two village cooperatives and 250 liters of milk per day,nothing but a trickle compared to the flood it has become today. Today Amulcollects processes and distributes over a million liters ofmilk and milk products per day, during the peak, on behalf of morethan a thousand village cooperatives owned by half a million farmermembers. Further, as Ganga-ma carries the aspirations of generations for moksha, Amul too has become a symbol of theaspirations of millions of farmers.Creating a pattern of liberation andself-reliance for every farmer to follow.

The start of a revolution

The revolution started as an awareness among the farmers that grewand matured into a protest movement and the determination toliberate themselves. Over four decades ago, the life of a farmer inKaira District was very much like that of his counterpart anywhere else in India. His income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. Themarketing and distribution system for the milk was controlled byprivate traders and middlemen. As milk is perishable, farmers werecompelled to sell it for whatever they were offered. Often, they had tosell cream and ghee at throwaway prices. In this situation, the onewho gained was the private trader. Gradually, the realization dawned on the farmers that the exploitation by the trader could be checkedonly if marketed their milk themselves. In order to do that theyneeded to form some sort of an organization. This realization is whatled to the establishment of the Kaira District Cooperative MilkProducers' Union Limited (popularly known as Amul) which wasformally registered
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on December 14; 1946.The Kaira Union beganpasteurizing milk for the Bombay Milk Scheme in June 1948. Anassured market proved a great incentive to the milk producers of thedistrict. By the end of 1948, more than 400 farmers joined in morevillage societies, and the quantity of milk handled by one Union increased from 250 to 5,000 liters a day.

Obstacles: Springboards for success.

Each failure, each obstacle, each stumbling block can be turned intoa success story. In the early years, Amul had to face a number ofproblems. With every problem came opportunity. A chance to turn anegative into a positive. Milk by products and supplementary yieldwhich suffered from the same lack of marketing and distributionfacilities became encumbrances. Instead of being bogged down bytheir fate they were used as stepping stones for expansion. Backwardintegration of the process led the cooperatives to advances in animal Husbandry and veterinary practice.

Milk by products: An excuse to expand.

The response to these provided stimulus for further growth. Forexample, as the movement spread in the district, it was found that theBombay Milk Scheme could not absorb the extra milk collected by theKaira Union in winter, when the production on an average was 2.5 times more than in summer. Thus, even by 1953, the farmermembershad no assured market for the extra milk produced inwinter. They were again forced to sell a large surplus at low rates tothe middlemen. The remedy was to set up a plant to process milk intoproducts like butter and milk powder. AnRs 5 million plant tomanufacture milk powder and butter was completed in 1955. In 1958, the factory was expanded to manufacture sweetened condensedmilk. Two years later, a new wing was added for the manufacture of2500 tons of roller-dried baby food and 600 tons of cheese per year,the former based on a formula developed with the assistance ofCentral Food Technological Research Institute (CFTRI), Mysore.
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Itwas the first time anywhere in the world that cheese or baby food was made from buffalo milk on a large, commercial scale. Anothermilestone was the completion of a project to manufacture balancedcattle feed. The plant was donated by OXFAM under the FreedomFrom Hunger Campaign of the FAO. To meet the requirement of milkpowder for the Defense, the Kaira Union was asked by theGovernment of India in 1963 to setup additional milk drying capacity. A new dairy capable of producing 40 tons of milk powder and 20 tons of butter a day was speedily completed. It was declared open in1965. The Mogar Complex where high protein weaning food,chocolate and malted food are being made was another initiative byAmul to ensure that while it fulfilled the social responsibility to meetthe demand for liquid milk, its members were not deprived of thebenefits to be had from the sale of high value-added products.

Cattle: From stumbling blocks to building blocks.

Traditionally dairying was a subsidiary occupation of the farmers ofKaira. However, the contribution to the farmer's income was not asprominent as his attachment to dairying as a tradition handed downfrom one generation to the next. The
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milk yield from animals, whichwere maintained mainly on the byproducts of the farm, wasdecidedly low. That together with the lack of facilities to market eventhe little produced rendered the scientific practice of animalhusbandry irrational as well as unaffordable. The return on theinvestment as well as the prospects of being able to market theproduct looked very bleak. It was a vicious cycle reinforced bygenerations of beliefs. The Kaira Union broke the cycle by not onlytaking upon them the responsibility of collecting the marketablesurplus of milk but also provided the members with every provisionneeded to enhance production. Thus the Kaira Union has full-fledgedmachinery geared to provide animal health care and breedingfacilities. As early as late fifties, the Union started making high qualitybuffalo semen. Through village society workers artificial inseminationservice was made available to the rural animal population. The Unionstarted its mobile veterinary services to render animal health care atthe farmers' doorstep. Probably for the first time in the country,veterinary first aid services, by trained personnel, were madeavailable in the villages.The Union's 16 mobile veterinarydispensaries are manned by fully qualified staff. All the villages are visited bi-monthly, on a predetermined day, to provide animal healthcare. A 24-hour Emergency Service is also available at a fee (Rs. 35for members and Rs. 100 for nonmembers). All the mobile veterinary vans are equipped with Radio Telephones. The Union runs a semenproduction center where it maintains high pedigreed Surti buffalobulls, Holstein Friesian bulls, Jersey bulls and 50 per cent crossbredbulls. The semen obtained from these bulls is used for artificialbreeding of buffaloes and cows belonging to the farmer members of the district.

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The artificial insemination service has become verypopular because it regulates the frequency of calving in cows andbuffaloes thus reducing their dry period. Not only that, a balancedfeed concentrate is manufactured in the Union's Cattle Feed Plantand sold to the members through the societies at costprice.Impressive though its growth, the unique feature of the Amulsagas did not lie in the extensive use of modern technology, nor therange of its products, not even the rapid inroads it made into themarket for dairy products. The essence of the Amul story lies in thebreakthrough it achieved in modernizing the subsistence economy ofa sector by organizing the rural producers in the areas.

The Kaira experiment: A new beginning in more ways than one.

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A system which involves participation of people on such a largemagnitude does not confine itself to an isolated sector. The ripples ofits turbulence affect other areas of the society as well. Thecooperatives in the villages of Kaira are contributing to variousdesirable social changes such as: The yearly elections of the management committee and its chairman,by the members, are making the participants aware of their rights and educating them about the democratic process. Perpetuating thevoluntary mix of the various ethnic and social groups twice-a-day forcommon causes and mutual betterment has resulted in eroding manysocial inequilibria. The rich and the poor, the elite and the ordinarycome together to cooperate for a common cause. Live exposure tovarious modern technologies and their application in day-to-day lifehas not only made them aware of these developments but also madeit easier for them to adopt these very processes for their ownbetterment. One might wonder whether the farmer who knows almosteverything about impregnating a cow or buffalo, is also equally awareof the process in the humans and works towards planning it.More than 900 village cooperatives have created jobs for nearly5000 people in their own villages -- without disturbing the socio-agrosystem-- and thereby the exodus from the rural areas has beenarrested to a great extent.The income from milk has contributed totheir household economy. Besides, women, who are the majorparticipants, now have a say in the home economy.Independent studies by various individuals and institutions haveshown that as high as 48 per cent of the income of the ruralhousehold in Kaira District is being derived from dairying. Sincedairying is a subsidiary occupation for the majority of the rural population, this income is helping these people not only to liberatethemselves from the stronghold of poverty but also to elevate theirsocial status.

About the Company

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Organization structure
It all started in December 1946 with a group of farmers keen to freethemselves from intermediaries, gain access to markets and therebyensure maximum returns for their efforts. Based in the village ofAnand, the Kaira District Milk Cooperative Union (better known asAmul) expanded exponentially. It joined hands with other milkcooperatives, and the Gujarat network now covers 2.12 millionfarmers, 10,411 village level milk collection centers and fourteendistrict level plants (unions) under the overall supervision of GCMMF. There are similar federations in other states. Right from the beginning, there was recognition that this initiative would directlybenefit and transform small farmers and contribute to thedevelopment of society. Markets, then and even today, are primitiveand poor in infrastructure. Amul and GCMMF acknowledged thatdevelopment and growth could not be left to market forces and thatproactive intervention was required. Two key requirements wereidentified. The first, that sustained growth for the long term would depend onmatching supply and demand. It would need heavy investment in the simultaneous development of suppliers and consumers. Second, thateffective management of the network and commercial viability wouldrequire professional managers and technocrats. To implement theirvision while retaining their focus on farmers, a hierarchical network ofcooperatives was developed, which today forms the robust supply chain behind GCMMFs endeavors?

The vast and complex supplychain stretches from small suppliers to large fragmented markets.Management of this network is made more complex by the fact thatGCMMF is directly responsible only for a small part of the chain, witha number of third party players (distributors, retailers and logisticssupport providers) playing large
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roles.Managing this supply chainefficiently is critical as GCMMF's competitive position is driven by lowconsumer prices supported by a low cost system.

Developing demand
At the time Amul was formed, consumers had limited purchasingpower, and modest consumption levels of milk and other dairyproducts. Thus Amul adopted a lowcost price strategy to make itsproducts affordable and attractive to consumers by guaranteeingthem value for money.

Introducing higher value products

Beginning with liquid milk, GCMMF enhanced the product mixthrough the progressive addition of higher value products whilemaintaining the desired growth in existing products.Despite competition in the high value dairy product segments fromfirms such as Hindustan Lever [Get Quote], Nestle [Get Quote] andBritannia [Get Quote], GCMMF ensures that the product mix and the sequence in which Amul introduces its products is consistent with thecore philosophy of providing milk at a basic, affordable price.

The distribution network

Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to
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buffer inventory of the entire range of products.GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. This practice is consistent with GCMMF'sphilosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This just-in-time inventory strategy improves dealers' return on investment(ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle operations.

Umbrella brand
The network follows an umbrella branding strategy. Amul is the common brand for most product categories produced by various unions: liquid milk, milk powders, butter, ghee, cheese, cocoa products, sweets, ice-cream and condensed milk. Amuls sub-brands include variants such as Amulspray, Amulspree, Amulya andNutramul. The edible oil products are grouped around Dhara andLokdhara, mineral water is sold under the JalDhara brand while fruitdrinks bear the Safalname. By insisting on an umbrella brand, GCMMF not only skillfully avoidedinter-union conflicts but also created an opportunity for the union members to cooperate in developing products.

Managing the supply chain

Even though the cooperative was formed to bring together farmers, it wasrecognized that professional managers and technocrats would be required to manage the network effectively and make it commercially viable.

Coordination
Given the large number of organizations and entities in the supply chain and decentralized responsibility for various activities, effective coordination is critical for
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efficiency and cost control. GCMMF and the unions play a major role in this process and jointly achieve the desired degree of control. Buy-in from the unions is assured as the plans are approved byGCMMF's board. The board is drawn from the heads of all the unions, and the boards of the unions comprise of farmers elected through village societies, thereby creating a situation of interlocking control. The federation handles the distribution of end products and coordination with retailers and the dealers. The unions coordinate the supply side activities. These include monitoring milk collection contractors, the supply of animal feed and other supplies, provision of veterinary services, and educational activities.

Managing third party service providers

From the beginning, it was recognized that the unions' core activity lay in milk processing and the production of dairy products. Accordingly, marketing efforts (including brand development) were assumed by GCMMF. All other activities were entrusted to third parties. These include logistics of milk collection, distribution of dairy products, sale of products through dealers and retail stores, provision of animal feed, and veterinary services. It is worth noting that a number of these third parties are not in the organized sector, and many are not professionally managed with little regard for quality and service. This is a particularly critical issue in the logistics and transport of a perishable commodity where there are already weaknesses in the basic Infrastructure.

Establishing best practices

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A key source of competitive advantage has been the enterprises ability to continuously implement best practices across all elements of the network: the federation, the unions, the village societies and the distributionchannel. In developing these practices, the federation and the unions have adapted successful models from around the world. It could be the implementation of small group activities or quality circles at the federation. Or a TQM program at the unions. Or housekeeping and good accounting practices at the village society level. More important, the network has been able to regularly roll out improvement programs across to a large number of members and the implementation rate is consistently high. For example, every Friday, without fail, between 10.00 a.m. and 11.00a.m., all employees of GCMMF meet at the closest office, be it a department or a branch or a depot to discuss their various quality concerns. Each meeting has its preset format in terms of Purpose, Agenda andLimit (PAL) with a process check at the end to record how themeeting was conducted. Similar processes are in place at the villagesocieties, the unions and even at the wholesaler and C&F agentlevels as well. Examples of benefits from recent initiatives include reduction in transportation time from the depots to the wholesale dealers, improvement in ROI of wholesale dealers, implementation of ZeroStock Out through improved availability of products at depots andalso the implementation of Just-in-Time in finance to reduce the float.Kaizens at the unions have helped improve the quality of milk interms of acidity and sour milk. (Undertaken by multi-disciplinedteams, Kaizens are highly focused projects, reliant on a structured approach based on data gathering and analysis.) For example, SabarUnion's records show a reduction from 2.0% to 0.5% in the amount ofsour milk/curd received at the union. The most impressive aspect of this large-scale roll out is that improvement processes are turning the village societies into individual improvement centers.

Technology and e-initiatives

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GCMMF's technology strategy is characterized by four distinctcomponents: new products, process technology, and complementary assets to enhance milk production and e-commerce. Few dairies of the world have the wide variety of products produced by the GCMMF network. Village societies are encouraged through subsidies to install chilling units. Automation in processing and packaging areas is common, as is HACCP certification. Amulactively pursues developments in embryo transfer and cattle breeding in order to improve cattle quality and increases in milk yields.GCMMF was one of the first FMCG (fast-moving consumer goods)firms in India to employ Internet technologies to implement B2Ccommerce. Today customers can order a variety of products through the Internet and be assured of timely delivery with cash payment upon receipt.Another e-initiative underway is to provide farmers access to information relating to markets, technology and best practices in the dairy industry through net enabled kiosks in the villages.GCMMF has also implemented a Geographical Information System (GIS) at both ends of the supply chain, i.e. milk collection as well as the marketing process. Farmers now have better access to information on the output as well as support services while providing a better planning tool to marketing personnel.

LIST OF PRODUCTS
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Bread spreads:
y y y

Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter

Cheese Range:
y y y y y y y y

Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozarella) Cheese Amul Shredded Pizza Cheese AmulEmmental Cheese Amul Gouda Cheese AmulMalaiPaneer (cottage cheese) Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

y y y y y y

AmulShrikhand (Mango, Saffron, Almond Pistachio, Cardamom) AmulAmrakhand AmulMithaeeGulabjamuns AmulMithaeeGulabjamun Mix AmulMithaeeKulfi Mix AvsarLadoos

UHT Milk Range:

y y y y y

Amul Shakti 3% fat Milk AmulTaaza 1.5% fat Milk Amul Gold 4.5% fat Milk Amul Lite Slim-n-Trim Milk 0% fat milk Amul Shakti Toned Milk

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y y

Amul Fresh Cream Amul Snowcap Softy Mix

Pure Ghee:
y y y

Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee

Infant Milk Range:

y y y

Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 ( 6 months above) Amulspray Infant Milk Food

Milk Powders:
y y y y

Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

y

AmulMithaimate Sweetened Condensed Milk

Fresh Milk:
y y y y y y

AmulTaaza 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 AmulSaathi Skimmed Milk 0% fat Amul Cow Milk

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Curd Products:
y y y y

AmulFlaavyo Yoghurt AmulMastiDahi (fresh curd) AmulMasti Spiced Butter Milk AmulLassee

AmulIcecreams:
y y

Royal Treat Range (Butterscotch, Rajbhog, MalaiKulfi) Nut-o-Mania Range (KajuDraksh, KesarPista Royale, Fruit Bonanza, Roasted Almond) Nature's Treat (Alphanso Mango, Fresh Litchi, ShahiAnjir, 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)

y y

Chocolate & Confectionery:

y y

Amul Milk Chocolate Amul Fruit & Nut Chocolate

Brown Beverage:
y

Nutramul Malted Milk Food

Milk Drink:
y

AmulKoolFlavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate) AmulKool Cafe AmulKool Koko
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y y

AmulKoolMillkShaake (Mango, Strawberry, Badam, Banana)

ORGANIZATION STRUCTURE

FUNCTIONING

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 VILLAGE LEVEL: Collect surplus milk. Veterinary aids, A.I., feed and fodder. Conduct training.  DISTRICT LEVEL: Processing milk into various products . Transporting of milk from villages to processing units. Support the village societies.  STATE LEVEL: Marketing products. Create a distribution network. Technical inputs, management support, advisory services.

INFORMATION TECHNOLOGY INTEGRATION

To strengthen business linkages with the business partners, GCMMF has enhanced its Amul e-Groupware System by adding more features like e-mailing the
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invoices and ledgers to business partners, announcing various schemes online, calendar facility etc. Video conferencing is rapidly gaining in popularity, which provides business with the ability to meet and to work with others over a distance. For real time communication, better brainstorming, knowledge sharing and information gathering, we have installed and implemented Video conferencing System at our Head Office, Zonal Offices and a few Sales Offices. The world is moving towards virtual reality by creating virtual world on the Internet. Our Federation has taken the initiatives towards virtual commerce by creating an online virtual Amul Parlor in the Second Life, an online virtual world. GCMMF has further advanced the use of Geographical Information systems by implementing GIS based Sales Analytics solution across various offices.

ACCELERATING ON A TRAJECTORY OF PROSPERITY

During the last 62 years, our Amul cooperative movement has served as an effective catalyst in transforming the socio-economic landscape of rural India. In the process of enhancing the nutritional and economic health of our nation, we have also
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ensured prosperity for 2.7 million families, spread across 13000 villages in rural Gujarat. During the peak winter months, this year, we have ably demonstrated our efficacy and efficiency in processing as much as 10 million litres of milk per day. Through creative marketing and innovative product launches, we have been able to leverage effectively on the rising income levels and growing affluence among Indian consumers. While ensuring easy availability of value-for-money milk and dairy products to all our citizens across the country, we have also been able to tap the growing demand for value-added milk products which provide higher remuneration to our farmers. Having successfully countered the competitive challenge posed by multinational corporations, as well as the domestic private sector, we are well poised to steer the dairy cooperative sector into an era of further prosperity and growth. While a glorious future certainly beckons us, our ability to actually realize its promising potential, depends entirely on the efficacy with which we are able to overcome the external and internal challenges that we face today. Globalization is a phenomenon that we cannot wish away and its politico-economic impact on our business needs tobe clearly understood. We are more vulnerable to global changes than ever before. Remote events such as adverse agro-climaticconditions in Australia, diversion of maize-crop from feed to fuel in U.S., reduction in subsidies given to dairy farmers in EU, can deeply impact prevailing conditions in the domestic Indian market. Enhanced competition and proliferation of imported brands on our Indian retailshelves is a reality that we will have to embrace.

Innovative technologies, creative ideas and new products that emerge on the global horizon are swiftly making a beeline for the Indian market. In order to effectively counter such challenges, the entire dairy cooperative sector will have to be even more adaptive, flexible and responsive to market realities. We need to be more agile and fleet footed in terms of adopting cutting-edge technologies and investing in accelerated product innovation. We will also have to ensure that we continue keeping our finger on
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the pulse of Indian consumers. As wehave done in the past, we shall have to continue incorporating thebest emerging industry practices, from around the world, into our key business processes. We need to explore new avenues of further leveraging on information technology to streamline our businesssystems.To enhance our efficacy and competitiveness, we need to be morepro-active at all stages of our value-chain. Adoption of new breeding practices and focused approach towards increasing productivity of our milch-animals should be the highest priority for all dairycooperatives. Effective use of latest inputs and best technology for enhancing milk production will be of immense benefit to our farmers.Through process re-engineering, we will have to maintain and furtherincrease our operational efficiencies, so that our costs remain under Control. The current leaders of dairy cooperatives in India have an enormousresponsibility on their shoulders. The entire nation expects us to exemplify virtues of selfless dedication and visionary leadership. Like our illustrious predecessors such as ShriTribhuvandas Patel, Dr. VergheseKurien and ShriMotibhaiChoudhary, we will also have to personify our core values of integrity, excellence, customerorientation, quality-consciousness, innovation, commitment to farmers and employee-satisfaction. The success of our Amul cooperative movement can also be attributed to the culture of professional excellence that we have nurtured and encouraged in our organization. It is our responsibility to ensure that this culture of professionalism continues to prevail in all aspects of our business operations. Ultimately, it is our obligation towards our nation, to propelthe Indian dairy sector towards a position of dominance on the globaldairy map. AmulKool, Chocolate Milk, Nutramul Energy Drink, AmulKool Milk Shake

KIDS

WOMEN
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AmulCalci+

Utterly Delicious Pizza,

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CONCLUSION:
From our research we came to know that Amul has good distribution channel of the all product line because we found that it is available in most of the retail shop and Amul parlors and because of its quality and brand name in the market. But at the same time we also came to know that Amul (GCMMF) does not provide incentives to the retailers on regular basis as compared to other companies. We also came to know through survey that retailer received sometime complain about the dumping in the milk and leakages in the pouch of milk and from customers no complains about the product. About AmulAmul gold and Amul Ice-cream are very good job in the market, And they also satisfied with other milk products. We found that some retailers do not stock Amul products because of lower margin from the company and also them face problem regarding replacement of products from the company. However, the complaints regarding these two problems have been received from almost all the retailers Lastly, if Amul make its attention towards other products rather than Milk, it can be said that the market share of Milk products and its consumption will definitely increase.

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Various Articles taken from various newspapers Amul hopes to flow into Japanese market Sindhu Bhattacharya Friday, December 30, 2005 NEW DELHI: Amul is going places. Literally. After having establishedits presence in China, Mauritius and Hong Kong, Gujarat CooperativeMilk Marketing Federation (GCMMF), Indias largest milk cooperative,is waiting to flood the Japanese market.The milk cooperative, whichmarkets Amul brand of products, is hopeful of bagging a major exportorder from Japan.In keeping with the popularity of the brand abroad, GCMMF has revised its export target for this fiscal by Rs 50 crore to Rs 200 crore.Says GCMMF managing director B M Vyas, We have had adistributor in Japan since 1994 but no major presence in that country.But a few days ago a delegation from Japan, under the aegis ofAgriculture and Livestock Industry Corp (ALIC), visited our facilities atAnand (Gujarat) and were pleasantly surprised with the sheer scaleof our dairy operations. I am hopeful that some of our products, suchas milk powder and cheese, could be exported to Japan soon. Then, GCMMF is also looking at Sri Lanka as one of its next exportdestinations. Amul products are already available on shelves acrossseveral countries, including the US, China, Australia, West Asiancountries and Africa.While Vyas declined to reveal other overseas markets that thefederation is targeting now, he said that demand for dairy productsfrom India is expected to grow in many overseas markets. Claiming that buoyant exports help the company maintain prices inthe domestic market, Vyas said that in times of milk surplus, havingready export markets allow the federation to save itself from makingany distress sales.GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its productsinclude pouch milk, ultra heat treated (UHT) milk, ice-cream, butter,cheese and buttermilk.

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Taken From the Financial Express Amul ready to take on Pepsi, Coke in sports drink segment LALITHASRINIVASAN Posted online: Wednesday, January 11, 2006 atMUMBAI, JAN 10: Swadeshi FMCG major Gujarat Co-operative MilkMarketing Federation Ltd (GCMMF) is getting ready to launch India'sfirst sports drink 'Stamina' in two weeks.On the other hand, videshimajor Coca-Cola India is planning to introduce its global sports brand'Powerade' in India and PepsiCo India is preparing for a national rolloutof 'Gatorade', which is available only in select metros now. According to industry analysts, this nascent segment will witness a lotof action in 2006-with the entry of new players. "Most companiesnow want to cash in on the growing consumerism in India.As lifestyles change, consumers opt for energy and sports drinks tostay fit. At present, Red Bull which is priced at Rs 75 is the only majorplayer in this segment," said analysts. On Amul's foray into the sportsdrinks sector, RS Sodhi, general manager, GCMMF informed thecompany plans to launch 'Stamina' in select metros, which includeMumbai, Chennai, Delhi and Ahmedabad - to start with." Stamina willthe first sports drink from India. With lemon flavour, it will be availablein Tetra Paks and is priced at Rs 12(for 200 ml). Two years ago, we enteredflavored milk segment, saidMrSodhi.According to analysts, with competitive pricing strategy, Amul willscore over other sports drinks in India, which are priced above Rs 75.As for Coca-Cola's strategy for 'Powerade' in India, the companyspokesperson was reluctant to divulge details on coke's newinitiatives. "We are exploring opportunities to bring in new beveragestargeted at different segments in the new year," he said.The vital question is Will a swadeshi brand like Amul take on globalbrands in the sports drinks sector in India?

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News Articles: Amul, now a billion dollar Co-Operative enterprise TheEconomic Times : June 23, 2008 Gujarat: Gujarat Co-operative Milk Marketing Federation (GCMMF)popularly known for its products brand name Arul has becomeIndia's first billion dollar co-operative unit after touching the recordannual turnover of Ds. 5,255.41 criers (52.554 bn rupees).It has registered quantum growth of 22.9 pc with an increase ofnearly Rs.1,000 crores (10 bn rupees) in absolute terms over theprevious fiscal year.Besides, the GCMMF, the apex marketing body of 13 district milkunions of Gujarat having a membership of at least 27 lakh (2.7 mn)milk producers has reached another milestone by processing almostone crorelitres of milk in a single day.This success was announced on the 34th annual General Bodymeeting by GCMMF held at Anand recently while reviewing theannual performance."Last fiscal (2006-07) our milk procurement represented a growth ofaverage 13 to 14 pc with average milk collection of 7.5 mnlitres perday.During peak procurement period, we have successfully demonstratedto process almost 10 mnlitres of milk per day. With this, our salesturnover has gone up by 15 to 20 percent and we have crossed asales turnover by almost rupees 52.55 bn.This shows an increase of rupees 1,000 crores (10 bn rupees). Weare constantly doing equally well and hope to post similar growth in the upcoming years," said B.M. Vyas, Managing Director of Gujarat Co-operative Milk Marketing Federation (GCMMF). During the fiscal year, Gujarat Co-operative Milk Marketing Federation has done remarkably well in most value added consumer products in which Amul milk pouches have been considered the largest contributor to the turnover with sales up by 48 per cent in value terms. Ultra Heat Treated (UHT) milk has also shown an impressive growthof 60 pc. Sales in the flavoured milk segment rose by 39 pc while the processed Amul cheese and Amul cheese spread recorded a growth of 27 pc and 39 pc respectively.The dairy whitener Amulya also recorded a growth of 20 pc and theinfant milk powder named Amulspray recorded higher sales of 19 pc. Despite a stiff competition from multinational companies (MNCs) in butter category, Amul managed to register double-digit growth in value.In tune with the lifestyle trends, GCMMF has focused on healthierlife products.
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Amulcalciplus and Amul shake are new innovative UHT milk category which will hit the market soon. "Level playing is that our farmers should be protected from subsidies export which may take place from developed world into India. If the duties are lowered, a lot of export subsidies exist in agriculture and when you allow such commodities to come into India with duty free itdamages Indian agriculture where our production falls down. And we need the shelter to import and maintain supply," said Vyas."So we need to correct things if the exporting country subsidizingtheir agriculture corresponding import duty should be there so that Indian farmers have level playing field," he added. Today, being the largest milk-producing nation in the world, India is also self-reliant in terms of milk products. However, we do not have buffer stock mechanism for dairy commodities in India. Vyas suggested if the country can maintain and consolidate this achievement, the policy makers must put in place an effective buffer stock mechanism for dairy commodities alongside proper management of demand and supply equation from milk products. Another secret of GCMMF's success could be attributed to its policy of supporting farmer owned organizations and giving them all theirdues.Recently World Bank has initiated to replicate Amul's model in African countries for their co-operative dairy development, which has shown a remarkable growth.

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BIBLIOGRAPHY:
WEB SITES SERVED: WWW. GOOGLE.CO.IN WWW.AMUL.COM. WWW.WIKIPEDIA.COM.

BOOKS REFERED: BOOKLET OF AMUL BY KHAIRA UNION DISTRICT.

PLACES VISITED: ANAND (GUJARAT).

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