Professional Documents
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Submitted By :
Vipul Prajapati (335)
Tejas Shah (357)
Mayur Solanki (344)
First of all, we are very thankful to North Gujarat University that they
have included this type of practical work in our study.
First of all, we take this opportunity to thank out Director Dr. Hitesh
Ruparel who guided us regarding the project contents and issues related to it.
Further, we are very grateful to Mr. Tejas Dave, Mr. Bhavin Pandya, Mr.
Nikunj Patel and Aashish Vashani who provided their valuable guidance
throughout the project.
Lastly we are very thankful my friends and all those who have helped us
directly and indirectly in preparation of this project report.
India, with its status as the largest milk producer in the world, is on the verge of assuming as
important position in the global dairy industry. Many international dairy companies are
viewing India with an eye to tapping its vast, growing market for dairy products. Similarly,
many Indian dairy companies are now trying to acquire international scale, and would like to
tap other markets.
Indian Dairy Industry is dominated by cooperative sectors for so many years. Indian dairying
is emerging as a sunrise industry. India represents one of the world's largest and fastest
growing markets for milk and milk products. Dairy industry occupies a prominent position in
the industrial structure of India. Dairy industry has very rapidly infrastructure facilities due to
which severe bottlenecks have been created in the way of rapid industrialization. Dairy
industry occupies important place in Indian economy. The rate of growth of this industry was
around 1% only. It has gone up 4.2% later on cows and buffaloes are important animals
for producing milk.
The organised dairy industry in India is estimated at INR 145 bn(USD 3 bn) and is expected
to witness a CAGR of over 13% over the next 4 years, to reach a size of INR 240 bn (USD 5
bn) by 2005.
India offers several attractive features to players interested in coming to the country.
- Free regulatory regime, providing equal opportunities for domestic as well as foreign
players.
- Huge scope for growth – Organised industry accounts for less than 20% of the milk
produced in India.
- Large growth expected in consumption of packed dairy products due to several
demographic factors, including increased affordability, increased no. of nuclear families
and working women, and rising exposure to Western diary products, as well as packed
dairy products such as yoghurts and UHT milk.
- The emergence of organised food retail chains has led to greater availability of shelf
space for chilled/frozen dairy products, which is expected to boost growth in sales of
Some of the major international dairy companies, which have already established operations
in India, include Nestle, Unilever (through HLL), Danone (through Britannia) and Nutricia.
Britannia has recently entered into an alliance with Fonterra for accessing technology and
providing market access to Fonterra. The Britannia-Fonterra alliance has heightened other
Indian companies’ need for securing international partnerships in order to remain
competitive.
GCMMF was the first co-operative to be set up under operation flood in the year 1973. It
is an apex marketing federation of 12 district milk unions of Gujarat. It has most modern and
largest plant which can handle up to 6.7 million litre of milk per day. GCMMF sold its all
dairy products under the brand name of “AMUL”.
GCMMF has become very popular because of its excellence marketing strategy. GCMMF
marketing strategy is to understand the consumer needs, develop products that provide
superior value at fewer prices. This type of marketing has made GCMMF on of the leading
dairy in India. GCMMF has shown a tremendous commitment to the flood water situations.
GCMMF has never stopped the supply of milk and other milk products. And unlike other
competitors, it has never taken wrong benefits in these kinds of situations. All these have
made Mother Dairy No. 1 dairy in Gujarat and in India. GCMMF has developed an excellent
distribution channel to provide its products to the consumers. It has made its products in each
part of Gujarat & India.
GCMMF is the largest player. All other local dairy cooperatives have their local brands e.g.
Warana in Maharastra, Saras in Rajasthan, Vijaya in A.P etc. other private players include J
K Dairy, Heritage Foods, Indian Dairy etc.
The industry, which is co-operatives and milk is produce by different dairy and is marketed by regionally like
Sumul milk, Sabar milk, Sughsagar milk etc but other milks products like ice-crème, cheese, ghee, butter etc is
marketed by under the brand name “AMUL”.
The Indian market is dominated by a large number of small local manufacturer and regional
players. There are an estimated 150 manufacturers in the organized segment which accounts
for 30-35% of sales and about 1000 units in the unorganized segments of the market. In the
The project highlights the functional area of GCMMF with a prime focus on marketing. By
studying these functional areas we had done some analysis like five force, SWOT etc.
RESEARCH OBJECTIVE:
RESEARCH DESIGN:
Sampling Plan
Sampling Unit: MD, and HODs of related department, Executives of Marketing
Department
Method: Non- probability judgment sampling in which we have selected the members
who are good prospects for accurate information.
Macro Environment
3 PEST Analysis
3.1 Political and Legal Factors
3.2 Economical Factors
3.3 Social Factors
3.4 Technological Factors
3.5
Micro Environment
4 Functional Analysis
4.1 Personnel Department
7 Challenges To Be Met
8 Suggestions
9 Future prospects for Dairy Industry
10 Conclusion
11 Bibliography
Dairy industry occupies a prominent position in the industrial structure of India. Dairy
industry has very rapidly infrastructure facilities due to which severe bottlenecks have been
created in the way of rapid industrialisation. Milk consumption in India has much less than
the developed countries. Dairy industry occupies important place in Indian economy. It is one
of the consumer goods industries. Its products is more useful items in popular diet, large
proportion of Indian population is vegetarian, therefore for milk and milk products assume
importance and only source of animal fat in their diet and importance source of animal
protein.
On the peasant milk producers of Khaira district, Gujarat the NDDB (National Dairy
Development Board) was set up under the chairmanship of Dr. Verghese Kuriene in 1970
under the programme, the Anand Dairy of Khaira was developed first. Khaira is one of the
India's flushest milk tracts and is distinguished by a famous dairy procurement, processing
and marketing co-operative established at Anand in 1946.
India has a long tradition of keeping milk animals as a part of the farming household.
Animals are cared for highly rated milk and milk products are also greatly valued in the
society as a source of good nutrition. Cow is considered to be a sacred animal since time
immemorial. Milk is used in most of the rituals. Milk production and consumption is always
been a part of Indian culture.
Milk is complete a food. Though widely used per capita milk consumption in India was much
less than the developed countries the dairymen were also not developed on commercial lines.
In 1965, in order to support the farm economy by developing dairy sector on the request by
peasant milk producers of Khaira district, Gujarat the NDDB (National Dairy Development
Board) was set up under the chairmanship of Dr. Verghese Kuriene.
During 1960s, the European countries were facing over production of milk, converted into
dried skimmed milk and butter oil for which there was no adequate commercial outlet. In the
latter part of 1960s the EEC (European Economic Community offered some part of these
stocks as a donation to India through, the aid channels of the WFP (World Food Programme).
The aid was to be handled by NDDB reasoned to sell those commodities within India rather
than to distribute them as relief, which could be realised for twin purpose of enhancing milk
production in India and establishing a national dairy marketing grid. To handle the financial
aspects of such a programme the IDC (Indian Dairy Corporation) was set up by NDDB in
1970, the programme 'Operation Flood' or the 'White Revolution' as it is popularly known
was launched. The programme was mainly to restructure India's diary industry on the lines of
advanced dairying countries in order to enhance productivity and efficiency, while at the
same time directing income benefits towards the rural poor. Under the programme, the Anand
Dairy of Khaira was developed first. Khaira is one of the India's flushest milk tracts and is
distinguished by a famous dairy procurement, processing and marketing co-operative
established at Anand in 1946.
In 1965, “The National Dairy Development Board” came to existence & as a result
India at pioneers in dairy development.
All these daries make milk, powder, cheese, ghee, butter & other Amul’s products. All dairies
have 4.6% crores of members jointly trade union has Rs 2200 crores.
At the time of independence there were 106 dairy plans in the country. There were 92 liquid
milk plants and 60 pilot milk societies. There were 26 product factories and 3 cream
industries, 51 dairy projects were in different stage of implementation. In 1984-85 the
number of dairy plants went up to 138. By March 1996 there were 72500 dairy co-operative
in 1170 milk shades 9.2 million farmers were participated in those societies.
* In 1997 India produced 74.3 million tones to occupy 2nd position in the world.
* U.P. is to be largest producer of milk in India followed by Punjab, Bihar, A.P. and
Rajasthan sharing 34% of the national production.
* Bulk of milk production is in rural areas. In urban areas there are only 4% of milk cows
and in the cities and town milk buffaloes are about 61%.
* The rate of growth of this industry was around 1% only. It has gone up 4.2% later on
cows and buffaloes are important animals for producing milk. 53% of milk is provided
by buffaloes, 33% of milk is provided by cows. Government milk is used in some parts of
the country.
Distribution Pattern
Milk
19.56% 42.08% 11.16% 39.26%
UP, Bihar &
Orissa
West Bengal & 30.16% 60% 6.02% 3%
Assam
Maharashtra & 11% 15.55% 11.26% 12.49%
From the view point of economy dairy industry has several points of significant to this credit.
(1) It gives production of milk and milk products which are dietcurious.
(2) It brings significant change in social economy structure of rural economy.
(3) It has important role in employment generation.
(4) By sound growth of co-operation this industry mutual help and self- sufficient are
cultivated among the masses.
(5) It provides regular source of income as supplementary. Employment to small
and marginal farmers and agricultural labours, therefore it acts as a cattail
change in the directions of equitable society.
Amul means ‘priceless’ in Sanskrit. The brand name ‘AMUL’ is from the Sanskrit
‘AMULYA’ was suggested by the quality control ‘priceless’ are found in several Indian
languages.
Amul is situated at Anand in Gujarat. The chairman of Amul Dairy is Shri Ratan Singh A
Rathod. Also there are many partners in the organization. It is a large -scale unit, so it
requires a large number of employees. It has a co-operative society. It is also an association
of personnel who joins together in a solvantary basis for further increase of their common
economic interests.
Amul Dairy is the largest dairy in Asia. It’s full name is “Kaira District Co-operative Milk
Producing Committee” today Amul is symbol of many things.
AMUL
Amul is an experiment, successful run since last 56 years with the objective of up liftment of
rural economy.
Amul word is derived from the Sanskrit word ‘AMULYA’ which means priceless. In other
words precious or which is price is not evaluated.
Amul is a co-operative unit established on 14th December 1946 at Anand. The union was
established under ‘Kaira District Milk Product Limited’.
The logo of Amul has four hands joined together, which indicates :
General Information
In beginning there were just a few farmers supplying about 250 litters of milk a day. Soon the
number increased to 400 farmers and quantity of milk handled rise to 5000 litters a day.
Milk yield is higher in winter and in winter, the Bombay milk scheme could not absorb the
extra milk offered. the farmers were forced to sell the surplus milk to traders at very low
rates. This leads to the decision to set up a plant to process the surplus milk into butter and
milk powder.
With financial help from UNICEF, assistance from the government of New Zealand under
the columbo plan & technical assistance provided by FAD, Rs. 5 million factories to
manufacture milk powder & butter was planned.
In 1958, the plant was expanded to manufacture sweetened condensed milk. Two years later
Shri Morarji Desai by then the finance minister, inaugurated a new wing designed to produce
600 tones of cheese and 2500 tones of baby food was processed from buffalo milk on a large,
commercial scale.
A plant to produce balanced cattle food, donated by DXFAM was formally commissioned on
October 31, 1964 by Lal Bahadur Shastri, then the PM of India.
At the request of the government of India in 1963, a new dairy with a capacity of 40 tones of
milk powder and 20 tones of butter a day was speedily completed. This was meant to meet
the requirement of India’s defence forces. The dairy was declared open by Morarji Desai in
April 1965. By now the dairy complex could hand 500000 liters of milk a day.
The capacity was raised to 350000 liters a day in 1974. The same year the Kaira union set up
a plant to produce high protein weaving food, chocolate & malted food at Mogar about 8 km,
south of Anand.
In September 1981, the cattle field plant at Kanjari, was started. The successful completion of
the co-generation project on September 11, 1985 marked a new milestone on the energy front
On October 31, 1992 Dr V Kurian, chairman of NDDB laid the foundation of Kaira unions
third dairy with a processing capacity of 6.5 lakhs liters of milk a day. Work on the union’s
satelite dairy & cheese plant at Khatraj began in February 1994.
There were about 250000 breedable buffaloes in Kaira which is helping Amul to ensure a
regular & quality milk output for various parts of the country. Moreover, the district also had
50000 crores breed cows, which yield milk of high quality.
The experiment in co-operation that began in Kaira district at the instance of Sardar Patel has
new been replicated throughout the country in more than 160 milk sheds. Today there are 8
million dairy farmers who belong to the co-operative supporting between 4.5 to 5 crores
family members.
Rank Score
Area
North 2nd 52.92
East 4th 59.41
West 1st 52.08
Amul, which want’s on the chart last year, comes
straight on the top
South ----- -----
Metro 1st 58.10
Amul was on No4 in metro segment, last year its jumps
on 1st
Urban 1st 54.59
Colgate vacates the top spot for Amul, which didn’t
feature on last year’s urban segment in top 10 dart
Rural 5th 49.22
Houses wives 2nd 53.67
Main corners 2nd 53.05
Males 3rd 49.73
Females 1st 53.02
Amul jumps & ranks on the top
MHI < 5th 50.23
Rs20000
MHI Rs (2000- 2nd 52.91
Despite of all the problems faced by the dairy industry in India, its progress is remarkable. It
is one of the fastest growing industry, about to acquire second position in the world.
Following are the basic sectors of success on India's dairy industry:
1. The efficient milk production, which is symbiotically integrated into agriculture. The crop
farming system provides residues and by-products are feed and fodder's for dairy animals.
The milk production system in turn provides drought power and organic fertilizers to the
farming system.
2. The involvement's of milk producers in setting up their own organisation for milk
production enhancement, procurement, processing and marketing. The dairy co-operative
combines the strength of farmers with the skills of professionals to ensure high returns
3. It has an important role in employment generation with regard to its contribution to
national income it has 1st rank at producer price. The value of its output in the year 1997-
98 was Rs.50,0511 crores. This is the amount next to the value of paddy.
4. The milk producers in India are assured of remunerative prices. They receive almost 66%
of what is paid by the consumers as retail price. This has acted as an incentive to increase
milk production. A low margin between the producer price and the retail price has also
resulted in reasonable price to the consumer, thus expanding the market for milk and milk
products.
5. Imports of dairy commodities in India have been cancelled through a farmer friendly
NDDB, which ensures that imported commodities are not made available to the
processing plants at a price lower than that of locally produced milk.
6. Collecting milk from the milk producers now carries the responsibility of supplying them
inputs to increase the milk production. This linkage also optimizes on the transportation
cost of the cattle feed to milk producers to the processing plants.
7. Bulk of the milk is delivered to processing plants within 3-4 hours of making, thus
avoiding intermediate chilling. This has resulted in reducing the price spread between the
producer and the customer.
Cattle feed: Balanced cattle feed concentrates are now being made available to milk
producers right at the village level at reasonable price. Trucks that bring also carry cattle
feed thereby saving on the transportation cost.
Organisation Structure
Organization Structure are divided into two parts:
Villagers
Internal Organization Structure is the organization structure which affects the organization
from the inside.
Managing Director
General Manager
Staff
The Organisation structure of Amul is well arranged structure. At a glance a person can
completely come to know about the organisation structure.
Amul is leaded by the director under him five branches viz. Factory, Marketing, Accounts,
Purchase, Human Resources Department.
Factory department has a separate general manager under him there are six braches viz.
Production, Stores, Distribution, Cold Storage, Quality, and Deep freezing. This department
takes care of the factory work.
Marketing department has regional senior marketing manager and under him there is a
regional manager. This department takes care of the marketing aspects of Amul.
Accounts department takes care regarding accounts i.e. day to day work. Under the
accountant there is one clerk.
Purchase department takes care regarding the purchase of raw materials and may other things.
Purchase department have also various clerks.
ACHIEVEMENTS
Mother Dairy a branch of Amul is fully computerized vaccum and automatic dairy in
Asia.
It has 1000000 liters milk producing capacity with managing 200 employees.
The type of technology is imported form L & T.
They can 1000000 liters of milk per day and packed and distribute.
For packing they have own plastic bag factory in Gandhinagar.
They have owned tube well water demand.
Amul was received J.D.Birla Award for rural development in the year 1999.
Also in place will be a distribution network 7500 stock is (3500 today) and 1 million
retail outlets (4 lack today).
Current amul ice-cream are manufactured at 15 plants, which are mainly co-operative
dairies amul plans to increase their 70 to 25.
Amul is focusing on new added value products like “ Butter Milk”.
Global Scenario
World’s major milk producer
(Million Tonnes)
Country 2001-2002 2002-2003
India 85 88.5
U.S.A. 80 81
Russia 40 42
Germany 34 35
Pakistan 28 28
U.K. 22 24
Poland 20 21
New Zeland 15 17
Italy 11 11
Australia 9 10
(Source:Dairy industry newsletter)
Turnover (US $)
Company Name
Nestle 12.9
Dairy Farmers Of America 7.4
Danone 6.4
Phillip Morris (Kraft) 6.3
Parmalat 6.1
Suiza Foods 6.0
Aria Foods 5.3
Lactalis 5.1
Campina Melkunie 4.9
Snow Brand 4.7
Unilever 4.5
Friesland Coberco Dairy Foods 4.3
Bongrain 3.7
Land O’Lakes 3.3
Meiji Milk 3.2
Dean Foods 3.0
Morinaga 2.9
Sodiaal 2.8
Dairy Crest 2.5
Nordmilch 2.4
Source: Rabobank
After adoption of the new economic policy 1991, India offers to foreign investors, a well-
balanced package of fiscal incentives for exports and industrial investment, without many
interventions from government.
DFP (Dairy Food Processing) offers a good opportunity to foreign investors in India. The
changing international dairy trade pattern following GATT and the emergence of WTO
(World Trade Organisation) offers the Indian dairy industry an opportunity to take its blow as
an exporter. India’s enthusiasm to integrate with the world economy is reflected in
technological up gradation professional excellence and a cost effective approach.
The two main reasons for the world focus on India are:
1. The low cost economy.
2. The liberalization process initiated since 1991.
1. The consumption of milk among rural population and also low income groups of
urban population is low, despite of India having a tradition of milk consumption.
2. Inability to feed cattle adequately throughout the year remains the most wide spread
constraint.
3. Quality dairy animals are in short supply. Artificial insemination service for breeding
better cattle has limited coverage, barely reading an estimated 10% of bovines.
4. The animal health cover is getting increasingly neglected. In many states over 70-80%
of the veterinary budget is used up for staff salaries and jeeps, with little left to buy
medicines and other supplies.
5. On the production front, the pesticides contamination of new milk is demanding
immediate remedial steps.
6. Limited marketing support handicaps rural milk producers seriously. Presently, urban
milk supplies largely comes from major milk shed districts. Dairy producers in remote
areas are neglected.
7. Limited investment in setting up or expansion of milk procurement network is another
bottleneck. The rapid expansion in milk processing capacity has not kept place milk
production and procurement.
8. The high cost of credit and unavailability of cheap credit on time is another adverse
factor reducing viability of the dairy industry.
9. The immense problem to the dairy industry is due to infrastructure for transporting,
processing, and distributing rurally produced milk to major consumer centres in urban
areas. Improvement in raw milk by its chilling and refrigerated transport is vital for
making quality products.
10. The rural women, an invisible partner need access to training in modern cattle
management to maximize return.
Milk Procurement
Turnover
There are regional disparities in production and consumption also. The per capita availability
in the north is 278 gm, south 148gm,and 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 several growing areas is much higher then 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% of the total milk produced is consumed in liquid form and 47% is
converted into traditional products like cottage butter, ghee, paneer, khoya, curd, malai etc.
only 7% of the milk goes into the production of theystern products like milk powders,
processed butter, and processed cheese. The remaining 54% is utilized for conversion to milk
products. Among milk products manufactured by the organized sector. Some of the
prominent ones are ghee, butter, cheese, ice creams, milk poweders.malted milk food,
condensed milk infants food. 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 & remaining is marketed through various cooperatives, private
dairies & 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 from and rest is
used for manufacturing processed value added dairy products; for private dairies only 45% is
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 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 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 tradinitional 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 organized 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.
Market size for milk is estimated to be 36mn MT valued at Rs.470billion. The market is
currently growing at round 4% p.a. in volume terms. The milk surplus states in India are U.P.,
Punjab, Haryana, Rajasthan, Gujarat, Maharastra, A.P., Karnataka, and Tamil Nadu. The
manufacturing of milk products is concentrate Tamil Nadu d in these milk surplus states. The
top 6 states are U.P, Punjab, Rajasthan, Gujarat, Tamil Nadu, and A.P together account for
58% of national production.
Milk production grew by a 1% p.a. between 1947 to 1970. Since the early 70’s, under
operation flood, production growth increased at 5% p.a.
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 & cheesed stood at 3.07 lakh MT in 2003. Production of milk powder
including infant milk food has raised 2.25 lakh MT in 2003. Where as that of malted food is
Market Share
GCMMF faces tough competition in the Indian market by different companies like Britannia,
Vadialal Cadbury etc. Though it is quite new in the Indian market it shares a fair amount of
dairy products in India. By advertising and promoting its product GCMMF has become one
of the leading dairies in India. In western of India GCMMF shares the most of the market
while in other parts of India it is next so. But slowly and surely GCMMF is growing in
sharing the market with other competitors industries.
Major Players
The packaged milk segment is dominated by the dairy cooperatives. GCMMF is the largest
player. All other local dairy cooperatives have their local brands.e.g.Warana in Maharastra,
Saras in Rajasthan, Vijaya in A.P etc. other private players include J K Dairy, Heritage
Foods, Indian Dairy etc.
Presently, India a non-entity in international dairy market. However exports of milk products
are picking up, having gone up by 40 times by value in the first half of the nineties, the value
worth of RS. 400 million in 1994-95. Today GCMMF (Gujarat Co-operative Milk Marketing
Federation) is India’s largest exported of dairy products valued at Rs. 18.3 crores in 1995-96.
Its exports earnings are likely to get doubled in 1998-99. Two note worthy export
opportunities are emerging one in South-east Asia and other in Russia, the immediate future
is the prospects of an additional demand of over 3 million tonnes of milk products in the
Asian region. Equally significant is the rise of Russia as the world’s biggest dairy importer.
India is not fully utilizing its export potential in respect of dairy products. The cost of milk
production in India is the lowest. And the dairy industry is not getting any subsidy. There is
an urgent need to pay special attention to the quality if India has to compete with other
countries. At present the county is exporting the malted milk foods, ghee, butter, and cheese
to other countries like Bangladesh, UAE, Nepal, Shri Lanka, Oman and Bahrain. Of course
world milk prices are subject to dramatic fluctuations.
Looking at the growing export opportunities in the post GATT ERA, Indian planners have
measures areas already adopted become quality conscious. Corrective measures areas already
adopted to meet the sanitary and phyto-sanitary specifications prescribed by WTO. Besides,
covering processed dairy products, the specifications of the WTO silos extended to the health
status of cattle and other live stock. Consequently, the main thrust of the ninth plan proposals
is on the improvement of animal health and adoption of sanitary and phyto sanitary
specifications for dairy products. Towards this end, the TMDD (Technology Mission on
Dairy Development) has initiated wide ranging programmes.
Milk production is a combination of labour & capital intensive. Due to low labour cost, cost
of production of milk is significantly to there in India.
Quality
Productivity
To have an exportable surplus in the long term and also to maintain cost competitiveness, it is
imperative to improve productivity of Indian cattle.
PEST ANALYSIS
Societal Environment
Stockholders Suppliers
Governments Employees/
Internal Labour Unions
Special Environment
interest Structure
groups Culture
Resources
Customers Competitors
POLITICAL FACTORS
Political factor is very important aspect for the growth of any industry, thus the political
factor can immerge as opportunity or threat for that industry.
Registrations for units handling up to 75,000 litres of milk per day are granted by the State
Governments and units with more than 75,000 litres per day capacity are registered by the
Central Registering Authority.
The Certificate also specifies the milkshed area, which, under the order is defined as a
geographical area demarcated by the Registering Authority for the collection of milk by the
registered unit.
Maintenance of specified hygienic conditions in the premises where milk and milk products
are handled, processed, manufactured or stored.
The collection, transportation and processing of milk normally centres around the operations
of a processing plant. The region from which the marketable surplus of milk production finds
its way to a processing plant is called a 'milkshed'. The concept of milkshed areas is pivotal to
the MMPO. For an orderly development of the dairy industry, a proper assignment/allocation
of milkshed is critical.
In the United Kingdom, all the milk produced by farmers is procured by the cooperatives.
Private dairies are required to buy their milk requirement from cooperatives. New Zealand
has no private sector dairy plants. As many as 90 per cent of dairies in the erstwhile West
Germany and 100 per cent in Denmark, Netherlands and Sweden are in the cooperative
sector.
In the United States, 70 per cent of the dairy industry is cooperative. Dairy programmes are
subject to more Government participation or regulation than most other domestic agricultural
industries in the USA. There are also Federal Milk Marketing Orders and movement barriers
in the USA for "orderly marketing control, which is associated with stabilising fluid milk
prices, providing secured and dependable markets for individual farmers producing milk
primarily for the fluid market and improving the balance of market power between farmers
and handlers.
In the emerging liberalised global scenario, trade-distorting agricultural policies have been
the focus of the GATT multilateral trade negotiations. With the liberalisation of agricultural
trade under the new GATT regime, the heavy subsidies prevalent in the dairy sector in the
countries of the EU as well as in the USA will have to be brought down in the next few years.
The competitive advantages of the Indian dairy industry are then considered to be substantial.
With substantial and continued investment in building up milk production, India can emerge
as a major exporter of dairy products in the next few decades.
Pollution Control
No Objection Certificate from Pollution Control Board is a must.
Voluntary Standards
There are two organizations that deal with voluntary standardization and certification systems
in the food sector. The Bureau of Indian Standards looks after standardization of processed
foods and standardization of raw agricultural produce is under the purview of the Directorate
of Marketing and Inspection.
Bureau of Indian Standards (BIS)
The activities of BIS are two fold, the formulation of Indian standards in the processed foods
sector and the implementation of standards through promotion and through voluntary and
third party certification systems. BIS has on record, standards for most of processed foods. In
general, these standards cover raw materials permitted and their quality parameters, hygienic
conditions under which products are manufactured and packaging and labelling requirements.
Manufacturers complying with standards laid down by the BIS can obtain and "ISI" mark that
can be exhibited on product packages. BIS has identified certain items like food
colours/additives, vanaspati, containers for packing, milk powder and condensed milk, for
compulsory certification.
Directorate of Marketing and Inspection (DMI)
The DMI enforces the Agricultural Products (Grading and Marketing) Act, 1937. Under this
Act, Grade Standards are prescribed for agricultural and allied commodities. These are
known as "Agmark" Standards. Grading under the provisions of this Act is voluntary.
Manufacturers who comply with standard laid down by DMI are allowed to use "Agmark"
labels on their products.
However Certificate of Registration is required under the Milk and Milk Products Control
Order (MMPO) 1992.
Foreign Investment:
Foreign Investment in dairying requires prior approval from the Secretariat of Industrial
Approvals, Ministry of Industry, as dairying has not been included in the list of High
Priority Industries.
Automatic approval will be given upto 51% Foreign Investment in High Priority Industries.
In case of other Industries, proposals will be cleared on case to case basis. Government may
allow 51% without enforcing the old limit of 40% applicable under Foreign Exchange
Regulations Act at its discretion.
Foreign Technology Agreements in dairying also need prior approval. Foreign Exchange
required for payment of Royalty will have to be purchased at market rates.
Dividend Balancing
Remittances of dividend should be covered by earnings from exports recorded in the years
prior to the payment of dividend or in the years of the payment of the dividend.
Today, about a fourth of the GDP in agriculture is accounted for by the allied sectors, in
which animal husbandry accounts for the lion's share. The growing diversification of
agriculture is also an indication of changing consumption preferences and income levels. So
far, this activity was protected from international competition through import duties and
restrictions. However, consequent to the Uruguay Round of Multilateral Trade Negotiations
in 1994, to which India is a signatory, this sector is being gradually exposed to the
international market.
The WTO provisions may affect the Indian dairy in two ways. First, Indian dairy products
may have to compete with the major producers of processed dairy products such as the
European Union (EU), the US and the Oceania countries, such as Australia and New Zealand.
Second, in the absence of import restrictions, domestic dairy products may have to compete
with cheaper imports. Will Indian consumers then discard domestic products? Will Indian
butter become bitter? If this happens, the pattern of dairy development will go askew,
affecting income distribution and may lead to social unrest. It is, therefore, necessary to
effectively fortify the dairy industry from international onslaught and help the poor generate
income and raise their standards of living.
Of the total milk production, only 5-6 per cent is traded globally. Liquid milk is not traded.
The trade is confined only to processed milk products such as skimmed milk powder (SMP),
whole milk powder (WMP), butter and ghee (BG) and cheese. More than 90 per cent of the
total production of processed dairy products is concentrated in the EU, the US, India,
Pakistan, Brazil, Poland, Australia and New Zealand. About 75 per cent of the demand comes
from 8-9 nations. The pattern of world trade in milk production is also segmented. Most of
the low-value dairy products are exported to developing countries while the high-value milk
products are exchanged among developed countries. India has been exporting negligible
quantities of SMP and WMP.
WTO provisions
To make the dairy product market more competitive and improve efficiency of production,
multilateral negotiations in 1994 adopted a package of measures for countries producing
dairy products. These measures have to be adhered to by all WTO signatories. Some of the
important provisions are liberalising trade and government policies to augment world import
demand for dairy products, commitments on market access, reduction of domestic support
and subsidies on exports for the removal of distortions in the domestic market. India is a
signatory to the WTO and has already removed quantitative restrictions (QRs) on 714 items.
Provisions such as the commitment of domestic support and subsidies on exports under
normal circumstances may not have a negative impact on the Indian dairy industry, at least in
the short run. The Agreement on Agriculture (AoA) mentions that these provisions are
applicable only to select dairy products. Even among these products, only a few are
important. A country can successfully reduce support to unimportant items and support the
important ones, bringing down the total support well within the GATT permitted limit.
As for subsidies on exports, though India tops in milk production, the export of milk and milk
products is negligible. Among the processed dairy products, India exports only butter and
ghee and has a negligible presence in SMP and WMP trade. However, these provisions might
affect Indian dairy through a change in the import demand. A substantial cut in the export
subsidies by the developed countries, which are also bound by the WTO agreement, may
push up world prices, making domestic products, such as butter, cheaper. However, the
impact of these provisions will largely be determined by world price behaviour.
Other provisions, such as market access, removal of QRs, non-tariff barriers (sanitary and
phyto-sanitary regulations) and GMO issues are real cause for concern. The WTO supporters
argue that the withdrawal of domestic support and subsidies on exports will increase the
international prices of the dairy products. Countries with relatively lower costs of production
may enjoy comparative advantages and cash in on the external demand.
As per these provisions, the EU, which accounts for 40 per cent of the world trade of dairy
products, reduced the subsidy on butter from $1,481 a tonne in 1990 to $1,392 in 1995, with
a commitment to reduce it to $947 by 2000. Similarly on SMP, the subsidy was reduced from
$430 a tonne in 1990 to $406 in 1995 with a commitment to reduce it to $275. Thus, the
commitment of the EU has been to reduce 36 per cent of the subsidies uniformly.
The US is also committed to slashing subsidy on these products. However, looking at the
behaviour of the world prices of dairy products, one gets a contrary picture. Instead of the
world prices being pushed up, as was believed, they actually declined. For SMP, the price
declined from $2,025 a tonne (fob) in 1995 to $1,452 a tonne. WMP experienced a similar
Another reason is the dampened demand for dairy products from the crisis-stricken Russian
Federation, which has the largest share in the total demand for milk products. In fact, the
world market structure for dairy products appears to be oligoponist-oligopoly, wherein the
price determination does not follow the rules of supply and demand but of price leadership
and price wars. In fact, the EU has become the price-setter in international trade. In such a
situation, however, questions arise over how the WTO provisions can increase the
competition in the world market. This does not defy the efficiency argument. The only
beneficiary of depressed world prices is New Zealand which produces dairy products more
economically, even without subsidy. As a result, its share in the total exports rose more than
20 per cent.
India has already agreed to zero tariffs on SMP and other imports (the other country being
Singapore). Due to the depressed world price of SMP, the cheaper product would be available
to the domestic consumers. This may disturb SMP production, its price structure and the price
structure of milk and milk products. The Indian dairy industry should immediately advocate
the imposition of tariff equivalent to the difference between the world and domestic prices of
dairy products with some premium on it.
Countries such as New Zealand and Australia, which produce dairy products at the least cost
without subsidy, have imposed 10-20 per cent tariff on SMP imports. India would also have
to minimise production costs to protect the Indian dairy industry. A wide gap between the
cost of production and the world market price may enhance the competitive advantage to
increase exports and insulate the domestic market from cheaper imports. This calls for dairy
development on a more systematic and scientific lines, additional investment in
infrastructure, improved quality and better breeds of animals, transfer of technology and a
more professional approach to dairying.
Non-tariff barriers
EIC continued to operate mandatory export certification under the above system for fish and
fishery products (F& FP), egg products, milk products.
A total of 35 units have been approved by the EIC for export of milk products to the countries
of EU.
The raw effluent, comprising of dairy waste and domestic waste bears oil and grease, high
amount of suspended solids and bio-chemical oxygen demand. The conceptual approach of
the treatment includes the removal of oil and grease, coares and settleable suspended
particles, dissolved organic matter and handling of sludge for disposal. Substantial amount of
free oil and grease is removed by skimming operation in the grease trap. However, the heart
of this treatment system is the aerobic-biological reactors which are designed on the basis of
activated sludge process. The activated sludge treatment process basically involves the
degradation of organic matter by the action of various micro-organisms as depicted in the
following equation.
In this biological process, a part of the newly synthesised sludge undergoes oxidation called
Endogeneous respiration.
The efficiency of the system mainly depends upon the concentration of active micro-
organisms present to perform the assimilation of organic matter. The activated sludge, in
general consists bacterial and micro-organisms like protozoa, rotifiers, etc. The desirably
Delhi Mother Dairy has set up an effluent treatment plant which was commissioned in April,
1982. The capacity from 1000M3 was emcreased up 1650M3 in 1986. Not only is the waste
waster treated by the activated sludge process in this plant, but also the sewage from the
Dairy and adjoining staff quarters.
Infrastructure :
“Amul Dairy” is working in the best area of Anand in Kaira District. This is very good for
dairy industry.Some benefits arising out of this location as follows:
1) Cheap Labour
2) Cheap Land
3) Cheap water supply
4) Constant Electric supply
5) Constant Water Supply
6) Suitable Nature and Environment
Amul has wonderful Plant Layout means arranging machinery in a very systematic manner
which save the electricity as well improve the efficiency of the unit so increase the
production.
There is a no transporting problem because clear and wonderful road for transporting of
milk& milk’s products. The milk collection is very easy and speedy.
Monsoon
A good monsoon is critical for india’s economic growth in 2001-02. In June the first of the
four months the rain were well spread all over the country, rising hopes of a major recovery
in the agriculture sector
Economic Growth
Last five years has seen slackening of the GDP growth rate, largely due to fall in
manufacturing growth and poor performance of agriculture
2002-03 saw a big fall in agricultural output, and official GDP growth estimate for 2002-03 is
4.7%
Given good monsoon, CII for 2003-04 is at least 6.8% GDP growth
8 % 7.8 6.8
7.3
6.3
6.1
6 7.3
5.4
4 4.8 4.7
4.0
2
0
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
2001-02
2002-03
2003-04
1998-99
1999-00
2000-01
The Indian dairy industry registered a substantial growth from the 8th Plan onwards,
achieving an annual output of over 69 million tonnes of milk. India’s milk output
during 2001-02 was estimated to be 84.6 million tonnes and is expected to reach the
level of 88 million tonnes during 2002-03.
With more money on hand, more and more Indians are drinking milk and buttering their
bread. Rising income levels have led to a rapid increase in the consumption of milk and
milk products among Indian households.
Urbanization
Day by day the need of milk is continuously increase. In the year 1972 average requirement
of the milk per capita is 172 per gram. While in 2000 the requirement 215 gram per year. So
there will be more demand or milk and milk products in nearer future.
The consumption of milk is highest in north India that is 278 gram per day, while in west
region 174 gram per day. In eastern and southern area combines 215 grams per day require.
46% of the total milk is consumed in liquid form and 47% is converted into ghee, paneer and
ice cream and only 7% milk goes for western products like powder, cheese etc.
Presently only 12% of the milk is represented by packaged and branded pasteurized milk.
Population
During 1981-91, the population of India grew from 683 million in 1981 to 844 million in 1991-
indicating in increase of 161 million during the period. The rate of the growth slightly declined to
2.11 percent during 81-91 decade. Subsequently, during the 8 years period (1991-98), population
grew from 844 million to 987 million-an increase of 120 million. The annual average rate of
growth registered a decline to 1.8 per cent.
Milk processing: Better operational efficiencies are needed to improve yields and reduce
wastage, minimize fat/protein losses during processing, control production costs, save energy
and extend shelf life. The adoption of GMP (Good Manufacturing Practices) and HACCP
(Hazard Analysis Critical Control Points) would help manufacture milk products conforming
to international standards.
Packaging: Another area is the range of packing machines for butter, cheese and the like.
Better packaging can help retain nutritive value of products packed and extend shelf life. A
cold chain distribution system is needed for proper storage and transportation of dairy
products.
Value-added products: There's immense scope for value-added products like desserts,
puddings, custards, sauces, mousse, stirred yoghurt, nectars and sherbets.
In this 21st Century, the Indian dairy industry has set its goal to better manage its national
resources for enhancing milk production and upgrading milk processing through newer
technologies. Multinational dairy giants can carve a niche for themselves in this challenging
task — a win-win situation that can be won!
IT Technology
Supported by a the technical support team Smart Dairy Solutions is designed to deliver
tangible value to Dairy plants today while providing the scalability to fuel tomorrow's growth
A simple but powerful solution that addresses needs from procurements of milk to final
dispatch of products covering all intermediate activities i.e. Production, Quality control,
Accounts & finance, Personnel & Administration, Purchase & store and Marketing & Sales.
Dairy industry primarily constitute of dairy plants for procurement, processing and marketing
of milk and milk products, unions to supervise the societies at the village level, societies for
procuring milk from the villagers and additionally the state federations and organizations like
NDDB for technical and commercial consulting. Each dairy has societies attached to it for
supply of milk, chilling centers for intermediate storage of milk and fodder plants for
processing and supply of fodders to societies. The dairy in turn gives technical support,
veterinary & health services and fodder to the societies.
iBilt Technologies Ltd a along with their consultancy partner James Martin and Co with their
experience of providing integrated solution for all functional areas at Jaipur Dairy has given
us an immense insight into the process and people requirements of the dairy.
Above Tech.has been short listed by NDDB to implement the Dairy Solution in India.
The iBilt Tech. cater to the needs of dairy industry at all levels, with our offerings
Business Process Reengineering: In the changing business scenario, business focus needs to
shift to consumers/ buyers and it becomes imperative to revisit our business philosophies in
the aspects of operation, culture, social systems and technology. Our consulting team will do
an assessment of the business process identifying the strengthsand weaknesses and propose
the opportunities and guidelines for change.
• Dairy Website: To create web presence for the dairies and federations for effective
dissemination of information.
• Portal: An on line solution to integrate all the members of the dairy industry,
including NDDB, federations, unions, dairy plants, societies, milk producers and
concerned organizations in the field of dairy development.
Packaging Technology
Milk was initially sold door-to-door by the local milkman. When the dairy co-operatives
initially started marketing branded milk, it was sold in glass bottles sealed with foil. Over the
years, several developments in packaging media have taken place. In the early 80’s , plastic
pouches replaced the bottles. Plastic pouches made transportation & storage very convenient,
besides reducing cost. Milk packed in plastic pouches have a shelf life of just 1 to 2 days, that
too only if refrigerated. In 1996, tetra packs were introduced in India. Tetra packs are aseptic
laminate packs made of aluminum, paperboard and plastic. Milk stored in tetra packs and
treated under ultra high temperature technique (UHT) can be stored for four months without
refrigeration. Most of then dairy co-operatives in A.P, Tamil Nadu, Punjab & Rajasthan sell
milk in tetra packs. However tetra packed milk is costlier by Rs. 5 to 7 compared to plastic
For any organisation to succeed the management function are as important as the production
because what has been produced has to be marketed, to produce the items the finance is
required and also the employees are required which is taken care in the finance and the
personnel functions resp.
Personnel Department
Introduction
The success to any industrial unit, depend upon their effective personnel department.
Personnel department is basically commercial with human resource of an enterprise and it
also continue procurement, development, non monetary comparison, integration and
maintenance of the personnel purpose of contribution towards the accomplishment of the
organization’s major goal and objectives. Personnel management in opinion of many author
is true management. So sometimes it’s told that management means to manage human
behaviour. Personnel management is that phase of management which deals with the
effective control of use of manpower as distinguished from other source of power.
The management includes all aspects of works such as recruitment, selection, medical
checkup, various types of training, transfer, welfare activities, union activities factory all
provision and industrial dispatch.
Recruitment
Recruitment forms the first stage in the process which continues with selection and cased
with the placement of the candidate recruitment makes it possible to acquire the number and
types of people necessary to ensure to continues operation of the organization requirement
has, been regarded as the most important function of personnel administration.
Amul’s recruitment and selection process is very systematic and comprehensive. All division
head in inform about their manpower requirements. According to the requirement of the
personnel division they get require employees by resources like postal services employment
exchange education institution and advertisement.
Source of Recruitment
1. By giving advertisement in news papers
2. Labour Union
3. Voluntary Organisation
4. Leasing Contract
5. Private Employment Agency
6. Government Employment Exchange
7. School, Colleges, Universities and Professional Institutes
8. Recommendation of present Employee
9. Recruitment as Temporary Workers
Selection
Selection process is concerned with screening relevant information about an applicant. The
objective of selection process is to determine whether an applicant meets the qualification for
a specific job and to choose the applicant who is most likely to perform well in that job.
In Amul rating are noted for general knowledge experience knowledge that particular field
etc. from these forms then highest marks are selected and send for medical examination. The
applicant which are physically fit are sent appointment letter which contains some terms and
conditions of the candidate. The candidate will have to sign to this letter that he is ready to
strictly obey these terms and conditions. Higher level is to be directly recruited and selected
by the committee. The employee has to inform the date of joining the organization on such
date specific period of training is adjusted.
For providing to newly selected person at operative level, he is places at the work under
supervision of a senior worker who gives guidance and instructions about the particular work.
For the managerial level personnel, they select only those person who are having an
experience of at least three year in the same fields. Then a newly selected person is assigned
such tasks as are of less important and his performance is observed for three months.
A promote on the transfer of an employee do a job. which play more money are one that
carries some preferred status. In Amul mainly two promotions policy are taken.
1. Automatic promotion
2. Merit cum seniority
From time to time different type of promotion policies are adopted by Amul.
During the period of 1972,their was negotiation with union under shish promotion was given
automatically do a person who had completed his 6 yrs and 2nd promotion was given after 7
yrs.
Then Amul adopted merit cum senioring policy. And now at present merit Amul favours
promotion.
Under this policy performance of the employee his part record behavior opinion of divisional
head is taken into account while considering a promotion this capacity, to supervise his job
knowledge is also considered.
Managing Director sign the promotion order after the recommendation by the personnel &
Administration department.
Transfer
Transfer is the pre-relative right of the mgt. Transfer is done if it is necessary for the
organization.
Transfer is generally affected to build up a more satisfactory work team & to achievement
some purpose.
In Amul for transfer take place in flash season. Transfers are also to adjust the work forces of
one plant with the another.
Timekeeper sends this master roll to the account dept. Attendance of each & every employee
is analyzed & entered into the computer. The record is scrutinized and statutory and non-
statutory deductions are made after this salary is calculated for each employee through
computer.
The wages are paid in cash & also credited in corporate salary a/c. Employee wages are
deducted according to grades of workers. Amul has A,B,C,D,E,F grade of workers.
Job Description
Job Description is an important document, which is basically descriptive in nature and
contains a statement of job analysis. it defines the scope of job activities major
responsibilities & positioning of job in organization. It provided the worker, analysist &
supervisor with a clear idea of what the work must do to meet the demands of the job.
In other words Job Description is rules & regulation regarding different jobs.
In Amul those who are at senior Level make job description regarding managerial position.
These are some limitation regarding job description in future one may say that, I have to done
what is mention in job description to avoid this problems. They are not providing job
description to all except managerial levels.
As well as job description is helpful because one is clear about their work. No problem arise
in future.
Performance Appraisal
The performance appraisal system is a process of evaluation of employees performance on a
jobs in loans of it’s recruitment. It is also known as assessment of behaviour performance and
attitude of an employees.
The value, excellence, spirit, qualities of status of some subjects of performance appraisal is
quite useful in various administrative decision as training, transfer, promotion etc.
Every units success depends upon the regulatory and sincerity of the employees. The
GCMMF is already regular in paying amount of salaries to employees satisfactority for their
contribution in unit. The GCMMF has take many efforts in the welfare activities provided to
their staff and employees are as mentions.
Hospital Facility
Canteen Facility
Uniform Facility
Leave Facility
Loan Facility
Accident Benefits Scheme
Quarter Facility
Bonus
Transportation
Rest Intervals
Cleaning, Washing, Sweeping
Working Hours
In Amul dairy there are three shifts in one day. All the shifts has eight hours. So the work of
this union of the milk product are continuously and never stops. Therefore the union has
produce maximum stock of this products. The timing of three shifts and office time are as
follows:
Production Process
Introduction
Explosion of the production technology and changes in technical field is going to bring out
revolution in the industry sector which eventually gives stand to study and favour the
comebacking subject i.e. production and management.
Computers has evolved as a growing force with which operations managers tremendously use
for various purposes i.e. starting from cost reductions purposes management has been
enormously up graded to more higher level.
The core of production system is its conversion subsystem where in workers materials are to
covert inputs in to products and services. This production department is at heart of the firm’s
workers and capital assets are engaged and it is able to produce low cost products and
superior quality in timely manners.
Thus there arises enormous need of giving rise to this department as whole and function as an
individual with strong concrete base being foundation pillars of a manufacturing organization
if the intention is to succeed nationally and internationally.
Plant layout is the overall arrangement of the machine tools, handling equipments, storeroom,
tool aribs and other various accessories required for facilitating production in a factory. This
arrangement are preplanned with the results that the building has been constructed to fit a
layout of a given process.
GCMMF plant is indigenously worked out with facilitation of various production process and
production of multi products under one plant. The total plot is near about 2.27 kms. separate
buildings are provide with required arrangement of machine tools handling and computers
connection through the control room to fit for varying product manufacturing department.
The plant is engaged in producing milk, ice-creams, milk powder and ghee substantial
department is uniquely provide for the processing of each product. There are 4 production
department and packaging departments pertaining to each products respectively. Also the
strong of each particular is possible in the same. A fluent plant is proven to dispose off the
wastes and remainders water.
The plant also envisage a beautiful garden which cleans up the air and keeps the climate
pleasant. A parking at the right place has been provided for the outsiders and also for the
employees.
The plant is on the end of a large provident with 2 sides round and a beautiful lawn in the
division. At the front security guards cabin which grants the entry for specific tankers,
employees, visitors etc. visitors have to get approval from the office before head to get entry
in the plant. The office of the plant stands left a the pavement ends.
Thus plant layout encompasses all production and services facilities and provides for the
most effective utilization of the men, materials and machines constituting the process. It is
the master blue print of coordinating all operations.
A good layout results in elimination or minimization of accidents and hazards and cost while
increases the output . thus a good layout specifically is observed to be benefited on the
following grounds:
Efforts minimization
Fewer material handling will be provided manufacturing units cost will be lover
Bottlenecking of production will be eliminated
Thus a true beneficiary is provided to the plant through good and sound planning for plant
layout.
Desserts
The one and only raw materials on which the dairy plant function is milk. And as Gujarat has
abundant livestock especially cows & Buffalos, availability of the raw material.
Lower level or primary level milk producer’s co-operative make a collection of milk from
members producers. members producers are the farmers owing cows or buffalos. They bring
milk to primary level societies. The picture on the next page shows the collection of milk
through member producers standing in queue. An account of every member producer is
maintained which contains the details regarding the fat content, quality and quantity of goods
time of collection& the payment due or outstanding.
In case of quality of the co-operative must be alert so as to neglect the collection of sour milk
and substandard milk.
For pricing collected milk importance is given to quality. The milk’s prices is based on fat
and snuff i.e. solid non – fat content. it needs to consider the bacterial population in the milk
for raw paying milk price. Payment is done on monthly or daily basis depending upon co-
operating policy and member preference.
This milk is proportionally distributed and brought to various milk processing plant
GCMMF is also the same.
Operating Analysis
As is mentioned is sources of raw materials the one and only source from where they procure
milk are village milk societies. Milk is brought on from such village milk societies every
morning and evening. This milk is then to the dairy plant. It is here in the dairy plant the milk
is processed i.e. it is made free from germs.
Milk Processing
Collection of Raw-Milk
Separation Process
Quality Check
Packaging Process
Cold Storage
Raw milk is collected from different co-operative societies of different 470 village of Gujarat.
About 122000 liters of raw milk is collected per day.
Before this milk is sent to the laboratory for tasting the ‘FAT & SNF’ proportion, the milk is
separated from the raw milk.
The milk is taken from the chilling centers to Ahmedabad with the help of 407 trucks. Inside
and outside of the tankers the thermocol is to be put. Because of the thermocols the milk is
not affect by the outside environment.
After collecting the samples of milk are taken to the laboratory. Where two types of tests are
conduct.
Another test which is taken in the laboratory is called Methyline blue reduction test. This test
is conducted for checking for how long the milk will remain fresh. To check this, 10 ml of
milk is taken and 1 ml of methline blue solution is added to it. It is then kept in the test under
water bath 57 degree C. after one hour, if the solution losses its colour than it is called raw
milk.
If the solution remains the same even after 5 hours than it is considered as a fresh milk which
remains constant for a long period of time.
The proportion of FAT & SAF is fixed by the dairy. The minimum proportion of SNF
decided for the first grade buffalo is 6% and for cow it is 4.5% .
After laboratory gives green signal and confirming the raw milk at the reception dock is
brought in to the house connected with the pump is sent to the milk processing plant. This is
than chilled below 4 degree C. and then stored in milk silos. After that milk is processed
which has two steps i.e . pasteurizing and standardizing .
After collecting and checking and conducting laboratory tests the pasteurizing process is
conducted. To pasteurizing the milk means to kill all the germs in
The milk by a particular method which was invented by a scientist called James Paseure and
so the name pasteurization.
After this process some milk goes to separator machine and remaining is proportionately sent
for standardization.
3. Separation process:
Separator machine separates two kinds of products, skimmed milk & cream, through
channels. There are 100 disks fixed in separator machines which has 5000 RPN (revolution
per minute). It is taken to the tanks to the tanks which has the capacity of 20000 liters. There
are total 8 insulated tanks in the dairy. The milk in every tanks has different position of
‘SNF’.
Whenever the milk is needed from the tank, it is tasted in the laboratory and the deficit
proportion fat is added by mixing cream. This process continue for 24 hours.
4 Quality Check:
Pasteurized milk is sent for a quality check in the QUALITY ASSURANCE lab. Of the
dairy plant. Within 14 second FAT and SNF proportion is received regarding 30 lacks liters
of milk. The total investment put into the lab by the Dairy plant is of RS. 6 crores.
This laboratory only check and analyses the powder and milk and ghee. There is a separate
ice-cream analyzing laboratory.
5 Packing Process:
6. Storage:
Then the milk is sent to the cold storage of the dairy where the milk is stored until it is
dispatched. Here the milk is stored at temperature ranging from 5 C to 10 C, it is
maintained with the help of exhaust fans having silicon chips. To maintain the temperature
for refrigerator amenia is used. About 40000 liters of milk is dispatched from the cold
storage of the dairy plant everyday.
The damaged pouches are kept a side and the milk is once again put to the tank.
Milk Powder
When there is excess supply of milk convert some of the excess milk into milk powder. For
converting milk powder first of all 505 of water is evaporated plant/condensing plant. By this
process they get condensed milk, it is used as a raw-materials.
There after the milk is sent to the drying plant. The spray drying plant is huge in size with a
height of 70 feet abd which of 20 feet. The plant is divided into many floors to enables easy
use of the plant. First of all the raw0materials i.e. condensed milk is put into the first floor of
the plant along with air at 200 C. by this process the remaining water which the condensed
milk might have retained is also evaporated and milk comes as powder but this is not the last
stage.
This powder is again put in to a machine is called milk calendaria, where it is turned in to real
milk powder. Its capacity is 15 minutes 1000 liters. Then again this milk powder is put into a
Dense Waise Vessel. Here the lumps are removed and uniform milk powder is sent up.
After milk separation milk scanning is done. Here excess of cream is extracted form the milk
through cream separators. The scanning of milk is done till they get 99% fat and than it is
changed in to ghee.
The separated and scanned ghee is than sent for quality testing in QAL. After it confirm to
the laid standard after checking ghee is sent for packaging.
The packaging is done in tin cans or pouches like that of milk and marketed under the brand
name of Amul Ghee. The packed ghee is standard in the ghee storage department.
Dump tank
Milk pump
Milk chiller
Milk pump
Batch pasteurizer
Homogenizer
Mix chiller
Aging vat
Flavour tank
Continuous freezer
Cone machine
Packing table
Hardening tunnel
Cold storage
DISPATCH
Pollution
Unlike many other units this unit has a its own affluent to be released per day set by the
GPCB is 1,20,000 liters of affluent per day. Entire the ratio of milk. Affluent in this plant was
1:1:2.but modernization and automation of the unit has now reduced. it affluent generation
capacity of the unit. Now it is only 700 cubic liters per day compared to1,20,000 liters earlier.
Machines are the important factors of production which is highly involved in conversion or
processing of raw material into semi finished or consumable finished goods.this machines is
used to scan the qualities of milk the percentage of far, solid not fat. And it takes just 14
second for this purpose. The machines cost around Rs.30,00,000.
2. Polyfill Machine:
The polyfill machine helps to pack the milk into the pouches of various sizes. One such
machines can pack 100 pouches of milk in one single minute.
3. Milk Separator:
this machine is used in the production of ghee. The raw-material put into the surplus cream
crtracted while processing milk. And from this cream, the machine keeps extracting water out
of it until they get 99% fat.
4. Milk Calendria:
This machines is used in the production of milk powder. It is used to turn milk in to milk
powder. It is kept in the boiler plant of the unit.
This machine is also used in the production of milk powder. After the milk is converted into
milk powder it helps to move the lumps form the milk powder.
Milk tanker
Electronic Milk Tester
Packeging machine
It is observed that the technical know how is purchased from L&T, while some of the
machine are exported from out sided country. Ice creams manufacturing equipment are
purchase from Akta Co., Italy while pouch-packing machine are purchase from France.
GCMMF is an automated fully computerized plant. The benefits that are arrived to GCMMF
due to automation are;
Other Departments
Quality can be defined in narrow sense as ‘freedom from defect’. However quality has a
direct impact on product performance and hence on customer satisfaction.
GCMMF’S quality assurance laboratory all its products are tested for their respective
qualities e.g. for assuring the quality of milk there is a machine called milk scan which scans
The primary function of packaging is done to contain & protect the product. In olden days
milk used to be distributed in the bottles. But as they broke very often and also due to the
difficult in transporting them now a days usually milk is packed in plastic pouches of 500 m.l.
GCMMF there is a big milk packaging station. here there are big pipelines through which
milk comes out to be packed and behind each such pipeline there is a pollyfill machine. There
are 12 such polyfill machine in the plant and each of these machines can pack 100 pouches of
milk per minute. The material used for packing is called fillfarmslip. It is a product
manufactured by a company called prepack. The unit of mother dairy itself also has a plastic
film manufacturing plant in GIDC Gandhinagar.
As soon as milk is packed it cannot be distributed by the wholesalers to the various retail
outlets because it takes time to reach out and besides the time at which the milk is to be made
available to the customers has also to be considered. Therefore during that gap the milk is
stared in a cold storage of the unit. The temperature in the cold storage ranges from 5C to
10C. and in the night when it is time to distribute the milk, the milk is dispatched from here
in big trucks. Among 4,00,000 liters of milk is dispatched from per day.
In this plant the excess milk is converted into milk powder. For this first of all 50% water is
evaporated from the milk in an evaporating plant/ condensing plant. This condensed milk is
used as a raw material in the spray plant. The spray drying plant is huge in size measuring 70
feet high and 20 feet. This plant is divided in to some floors to enable easy handling. First
the condensed milk is put in to the first floor of the plant along with air at 200C.
(E) Boiler:
The plant is equipped with large boiler in which a furnace is used to, make steam. I.e. heating
water at 90 C to 95 C and this in turn is used to heat milk. The boiler is huge 4-stored plant
the activities of which are completely controlled by a computerized control room. This plant
includes a machine called milk calendaria where milk is turned to milk powder. The plant
also contains a machine called a Dense Waise Vessel which removes the lumps from the milk
powder and this fine milk powder is then sent to Rilo, which is a milk powder storage tank.
Introduction
Introduction is very vital function in any industry. Every company has to handle its marketing
function with care. As the whole world is turning in to a global market, marketing function is
getting more and important in every company. The term marketing is changing in the world.
Now selling product by advertising. It is not only the function of marketing. But in this new
world marketing puts weightage on satisfying consumer needs. If the market does a good job
understanding consumer needs, develops product that provide superior value and price,
distributes and promotes them effectively. This products will sell very easily.
Definition of Marketing
A social and managerial process by which an individual and groups obtain what they need
and want though creating and exchanging products and value with others.
Marketing Environment
The concept of markets finally brings as full circle to the concept pf marketing. Marketing
means managing markets to bring about exchanges for the purpose of satisfying human
wants. Thus we return to our definition of marketing as a process by which individual and
groups obtain what they need and what by creating and exchanging products and value with
others. The follow will show is the marketing environment of an industry.
Competitor
Environment
Above figure shows the main element in a modern marketing system in the usual situations,
marketing involves serving for market of end users in the face of competitors send their
respective products and message directly to consumer or their marketing intermediaries to
the end users.
India’s diary market is multi-layered, shaped like as pyramid with the base made up of vast
market for low cost milk. The narrow tip at the top is a small but affluent market for western
type milk products. The bulk of demand for milk, however is among the poor in urban areas
where individual requirement is small may be a glassful for use as whitener for their tea.
Nevertheless, it adds upto a sizeable volume of millions of litres per day in major urban
centres where lays the immense growth potential for the modern sector. Presently, its milk
distribution network serves hardly 778 out of 3700 cities and towns, dispensing hygienically
segment would double in the next five years.
Following readings are important to understand the market structure of dairy industry and
what is projected for 2000 A.D.
Despite of the fact that under OF (Operation Flood) programme, the emphasis was given
on developing organised sector was only 18% in the total milk that was marketed in the
urban area. Its share is projected to increase 22% by 2000 A.D.
The index for plant capacity is also showing a rising trend for organised sector. The plant
capacity is 1950’s was around 10,000-20,000 litre per day, it increased to 1,00,000
income per day in 1970’s to 5,00,000 income per day in 1980’s and to 1 mega litre/day in
1990’s.
The proportion of liquid milk to other milk products in co-operative and government
sector was 90:10. The estimation is this ratio will change to 80:20 and 30:70 for co-
operative and private sector respectively. This is an indication of growing market of other
milk products in the country.
Marketing Chart
Village 1 Village 3
Village 2
GCMMF was the first co-operative to be set up under operation flood. GCMMF’S dairy plant
commissioned in 19994. is one of the most modern and largest plant. it can handle up to
1milion litre of milk per day. The plant also has facilities for pasteurizing and packing. The
plant has employed only the 187 people. it was funded by NDDB. GCMMF’s milk is sold
under its flagship brand Amul.
GCMMF was formed in 1973.As a apex marketing federation of 12 district milk unions of
Gujarat. To operate own marketing and distribution network in India and abroad. Joint hand
for co-operation and cares for marketing.
GCMMF sales turnover grew by 21% Rs. 15.5 billion to Rs. 18.8 billion including
consignment sales of Rs. 3.7 billion sale of Amul milk in Gujarat and Maharastra increased
by 11% and 16% respectively. Dairy product turnover is registered a19% growth.Amul butter
registered 18% growth. The sale of Amul & Sagar Ghee increased by 47%growth. Amul
Cheese registered 60% value growth.
During 19998, the Amul ice-cream brand franchise was extended by launching it in 8 states
and 2 union territories.Amul ice-creams has become India’s 2nd largest brand.
New product launched during the year were Amul Pizza, Cheese and Amul slice
cheese,Amul paneer and Amul mithaee range.safal mango drink has been launched strategic
alliance with safal (A union of NDDB). The product range to be launched under the safal
brand will include fruit drinks, squashes, pickles, jams, and ketchup and mango pulp.
Amul ice-cream brand franchise was extended with launch in 8 states & 2 union
territories.Amul ice-cream has become the 2nd largest brand in the country & has garnered
major share in its existing markets in a short time span of 3 years.Amul’s main ice-cream
manufacturing facility is located at Gandhinagar. Which is Asia’s largest and most modern
integrated ice-cream manufacturing plant and uses world renewed refrigeration units and an
efficient cold chain for the regional dairy co-operatives like Mother Dairy for the northern
market. Mother Dairy for the southern market & the Patna Dairy project which commenced
production from April 98 for the eastern market.
GCMMF has become very popular because of its excellence marketing strategy. GCMMF
marketing strategy is to understand the consumer needs, develop products that provide
superior value at less price. These type of marketing has made GCMMF on of the leading
dairy in India. GCMMF has shown a tremendous commitment to the flood water situations.
GCMMF has never stopped the supply of milk and other milk products. And unlike other
competitors, it has never taken wrong benefits in these kinds of situations. All these have
made Mother Dairy No. 1 dairy in Gujarat and in India. GCMMF has developed an excellent
distribution channel to provide its products to the consumers. It has made its products in each
part of Gujarat & India.
Mission of GCMMF
Amul at Gujarat Co-operative milk marketing federation (GCMMF) endearing to satisfy and
nutritiory requirements of the customers the world through the excellence in marketing by
our committed team.
Slogan
“Amul The Taste Of India”
Market Segmentation
Market segment is a very important function for the market department of the GCMMF,
because the market consists of buyers different in any ways. They are different their wants
resources, locating buying practices. Because buyers have unique needs and wants each buyer
is potentially separate market GCMMF has segmented its market in following variables.
Geographic segmentation:
Under these variables GCMMF has divides market into difference geographic units such as
region, states, cities etc. GCMMF sells its products by geographic segment action like in the
north where production of milk is very high the sale of Amul’s product is not much. But in
the western region it is high. GCMMF identifies this kind of variables and deals with it.
Demographic Segmentation:
Under this variable GCMMF has dividend market into several graphs such as age, genders
family, size, income, occupation etc. for the every group GCMMF marketing strategy is
different. In milk Amul targets all the class where as in the other products like butter, ghee,
ice-cream etc. is targeted to the middle and higher middle class.
Product Mix
What is Product?
A product in simple words means a set of tangible physical and chemical attributes assembled
in an identifiable and recently reorganized form.
Anything that can be offer to a market for attention acquisition use for consumption that
might satisfy a want or need. Product is a bundle of utilities consisting of various product
features and accompanying service.
Product mix is the set of all products and items that a particular seller offers for a sell. A
product mix consists of all the product lines and item that are sold by the company.
Check out this vast and ever-growing range of 'tasteful' Amul delectables!
Bread Spreads
Amul Butter
Utterly Butterly Delicous
Amul Lite
The Low at Fat Bread Spread. It is made from a blend of hydrogenated refined oils, milk fats,
skimmed milk powder, common salt, emulsifier, class – II preservatives, and antioxidants.
Vitamin A not less than 30 IU/gm and Vitamin clamps 2 IU/gm.
Powder Milk
Composition :
Milk Fat 28%
Protein 26%
Carbohydrates 37%
Minerals 6%
Moisture 3%
Special Features : the product has more milk fat as compared to normal milk powders. It is
parked under an atmosphere of Nitrogen. The product is creamy while in colour. Marketed in
India since last 3 decades.
Product Specification : Meets ADPI extra grade standard for quality and BIS Specification
No.IS:1165-1992.
The Richest, Purest Dairy Whitener. It is made from partially skimmed milk and sugar.
Composition:
Fat 20%
Moisture 3%
Proteins 21%
Carbohydrates 33%
Minerals 5%
Calorific Value:
470 keal/100gm
Fresh Milk
Composition :
Variety Fat(%) SNF(%)
Amul Gold 6 9
Amul Shakti 4.5 8.5
Special Features : Amul Milk is the most hygienic liquid milk available in the market. It is
pasteurised in state of the art processing plants and pouch-packed to make it conveniently
available in consumers.
Product Specification : Amul milk meets the PFA standards for the respective type of milk.
Amul Taaza
Slim and Trim
Chocolate Milk
Fresh Cream
Cheese
Calorific Value:
340 keal/100gm
Composition:
Fat 18-20%
Moisture 60%
Proteins 14-15%
Added salt 1.8%
Sodium citrate 2.5%
Calorific Value:
240 keal/100gm
For Cooking
Composition :
Milk Fat 99.7%
Moisture 0.3%
Special Features : Made from fresh cream. Has typical rich aroma and granular texture. An
ethnic product made by dairies with decades of experience. A rich source of Vitamin A, D, E
and K.
Amul Paneer
Ready to cook paneer to
make your favourite
recipes!
Mithai Mate
Sweetened Condensed Milk - Free flowing and smooth texture.
White to creamy color with a pleasant taste.
Composition :
Special Features : Produced on the only continuous condensing plant in the country. The
product contains on preservatives.
Use of Product : The product can be used to manufacture Ice Cream, Confectioneries like
Toffees, Biscuits and Sweets.
Masti Dahi
Desserts
Composition :
Milk Fat 13.5% to 14.5%
Packing :50ml cup, 100 ml cup, 500 ml pack, 1 litre pack, 4 litre pack, Chocobar, ice
candies, Cones and Kulfies.
Amul Shrikhand
A delicious treat, anytime. It is made from chukka, sugar,
milk, curd, flavouring agents or fruits like safferum, elaichi,
mango, pineapple,etc.
Ingredients : Chakka, Sugar and flavouring agents/fruits
Calorific Value:
260 keal/100gm
Kulfi Mix
Composition :
Milk Fat 2%
Sugar 55%
Total Fat 32-33%
Coca Solids 7.5%
Milk solids 20%
Special Features : Meets all requirements under the PFA for boiled sugar confectionary
Healthy Drink
Nutramul
Malted Milk Food made from malt extract has the highest protein content among all the
brown beverage powders sold in India.
Composition: Fat 6.5%
Moisture 2%
Proteins 11.5%
Carbohydrates 70%
Starch & sugar 23%
Cocoa powder 8%
PRODUCT PACKING
Amul pasteurized butter Cardboard
Amul processed cheese Tins & cardboard
Amul milk Plastic polythenes
Amul full milk cream powder Tins
Amulya dairy whitener Tins
Amul cheese spread Plastic cups
Amul lite bread spread Plastic box
Amul pure ghee Tins
Amul Ice-cream Plastic cup
Amul mithaee mate Tins
Labeling
Label is a subject of packaging. Labeling helps in
- Identifying the Products
- Describe the Products
- Promoting the Product through attractive graphics.
All the dairy product marketed by GCMMF on the label-the brand name ‘Amul’. Moreover it
carries all necessary details like Co.’s name, address, date and year of manufacturing, batch
no., M.R.P., punch line etc. Thus the Amul has well design packaging and labeling strategy.
PRICE MIX
What is Pricing?
The amount of money charged for a product or service, on the sum of the values that
consumer exchange for the benefit of having the product or service.
In general price is the amount of money charged for a product or service. Historically price
has been the major factor affecting buyers choice. Price is one of the flexible element of the
price mix.
This is the marketing strategy by which companies set price of their product by which they
can decide to when they should target in the market and how to position themselves in the
market. Therefore the company have three choices:
Amul Cheese
Chiplet 200 gm 45.00
Cheese 1 kg 154.00
Mozzarella 1 kg 150.00
Mozzarella 250 gm 48.00
Cheese Slice 100 gm 23.00
Cheese Slice 200 gm 43.00
Cheese Tin 400 gm 72.00
Emmental 200 gm 60.00
Amul Ghee
15 litre Tin 2270.00
1 litre Tetra pack 155.00
1 litre Tin 160.00
2 litre Tin 315.00
200 ml Tetra pack 30.00
500 ml Pouch 79.00
Sagar Ghee
1 litre Tin 160.00
2 litre Tin 315.00
Liquid Milk
Gold 5 litre Pouch 90.00
Gold 500 ml Pouch 9.00
Shakti 500 ml Pouch 8.00
Taaza 500 ml Pouch 7.00
Saathi 500 ml Pouch 6.00
Butter milk 500 ml Pouch 3.00
Masti Dahi
100 gm 4.00
200 gm 7.00
200 gm pouch 5.00
400 gm pouch 14.00
Panner
Panner 1 kg 95.00
Panner 100 gm 11.50
Panner 200 gm 22.00
Amul Shrikhand
Elachi 100 gm 9.00
Elachi 200 gm 17.00
Amul Chocolates
Choclaire 1.00
Milklairs 1.00
Badam bar 35 gm 10.00
F & N 40 gm 15.00
Chocolate milk 18 gm 5.00
Chocolate milk 35 gm 10.00
Nutramul
500 gm Jar 76.00
500 gm RFI 72.00
Amulya
200 gm RFI 30.00
500 gm RFI 70.00
Gulab Jamun
1 kg Tin 72.00
500 gm Tin 40.00
Mix 200 gm RFI 30.00
Amul Mithaimate
400 gm Tin 30.00
Sagar S.M.P
S.M.P 500 gm pouch 50.00
EDIBLE OIL
Dhara Groundnut Oil
DFGO 1 litre pouch 52.00
DFGO 1 litre tetra 56.00
DFGO 5 litre jar 270.00
Dhara Health
1 litre pouch 59.00
1 litre tetra 61.00
15 litre jar 750.00
5 litre jar 310.00
Strawberry
50 ml 6.00
100 ml 10.00
500 ml 35.00
1 liter/1.25 litre 60.00
4 litre/5 litre 230.00
Pineapple
100 ml 10.00
500 ml 35.00
1 litre 65.00
Alphanso Mango
100 ml 15.00
500 ml 60.00
1 litre 100.00
Chocolate
100 ml 12.00
500 ml 60.00
1 litre 100.00
Rose
100 ml 10.00
500 ml 35.00
Fresh Strawberry
100 ml cup 15.00
500 ml 60.00
1 liter/1.25 litre 110.00
Fresh Litchi
100 ml 14.00
500 ml 60.00
1 litre 110.00
Cappucino
100 ml 14.00
500 ml 60.00
1 litre 110.00
Butter Scotch
100 ml 10.00
500 ml 50.00
1 litre 110.00
Kaju Draksh
100 ml cup 13.00
500 ml 50.00
1 litre/1.25 litre 90.00
Kesar Pista
100 ml 15.00
Raj Bhog
100 ml cup 15.00
500 ml 65.00
1 litre 120.00
Black Current
100 ml cup 15.00
500 ml 65.00
1 litre/1.25 litre 120.00
Roasted Almond
100 ml cup 15.00
500 ml 65.00
1 litre 120.00
4 litre/5 litre 360.00
Tricone
Butter Scotch 120 ml 15.00
Chocolate 120 ml 15.00
Mini cone 50 ml 5.00
Milk Bars
Frostik 80 ml 15.00
Chocobar 60 ml 10.00
Mango Dolly 60 ml 10.00
Rasberry Dolly 60 ml 10.00
Shahi Badam Kulfi 60 ml 10.00
Shahi Pista Kulfi 60 ml 10.00
Mava Malai Kulfi 60 ml 10.00
Green Pista Kulfi 60 ml 10.00
Mini Chocobar 40 ml 6.00
Fundoo
Vanila Ball 100 ml 10.00
Strawberry 100 ml 12.00
Mango 125 ml 14.00
Sundae 125 ml 15.00
Mava Malai Kulfi 35 ml 5.00
Green Pista Kulfi 35 ml 6.00
Mango Candy 35 ml 5.00
Orange Candy 35 ml 5.00
Popsicle 45 ml 1.50
Pizza
Regular Pizza 20.00
Jain Pizza 20.00
Premium Pizza 30.00
Place
Amul has a good channel of distribution having more than 3000 dealers which the customers
to have their product.
Now Amul are spreading in all over the India. Amul’s offices in Ahmedabad are around 15
and 50 in all over in India. Thus, we can say that Amul dairy industry is very well established
in India.
Amul’s products or milk is transported to dealers by vans everyday for their customers giving
the quality product.
Place Decision
Retailers often cite three critical factors in retailing success. Location, location and location?
A retailers locations is key to its ability to attract customer. The cost of building on leasing
facilities have a major impact on the retailers’ profits. Thus, building on leasing facilities
have a major impact on retailers profit. Small retailers may have to settle for whatever
location they can finally afford. Long retailers usually employ specialists who select location
using advanced method.
Amul owns there own retail shops. They have introduce new projects of
Vishramnagar
Audagarden, Ahmedabad - 380052
Ghatlodia
Audagarden, Ahmedabad- 380060
Thaltej
Audagarden, Ahmedabad – 380054
Pragatinagar
Audagarden, Ahmedabad – 380013
Shyamal Crossing
Audagarden, Ahmedabad – 380051
NID
Audagarden, Ahmedabad
Civil hospital
Audagarden, Ahmedabad – 380016
In this way we consider the people of India mostly go to consume ice-cream like
Promotion
Sales Promotion is a key ingredient in marketing campaigns. Where advertising offers a
reason to buy, sales promotion offers an incentive to buy.
Objectives of Sale Promotion
For Amul the objective of sales promotion for consumers are as follows:
Advertising
Advertising can be traced back to the very beginning of recorded history. Any paid form of
non personal, presentation and promotion of ideas goods or services by an identified sponsor
is known as advertising. Advertising is very important tool to combat competition.
Amul has got many competitors to compete with. So the company has to give out adapting in
new s papers and magazines at regular interval time period.
GCMMF success lies in its excellence advertisements in the market. In the beginning
GCMMF was nothing that much important on advertisement. But after some time it
understand that if it was to enter in the Indian market, it would have to advertisement its
product largely in the market so it stated advertisements its products in different media.
Persuasive advertising
Advertising used to build selective demand for a brand by persuading consumers that it offers
the best quality for their money.
Combined Advertisement
Amul gives advertisement of Nutramul as well as Sagar ghee and also provide inter related
scheme.
Reminding Advertising
Reminding customers that the product may be needed in the near future reminding customers
where to but the product keeping the product in customers minds during off seasons
maintaining top-of-mind position and product awareness.
Entertainment Zone
Books
The Amul India Story
Ruth Herediya
Management Kurein Style
MV Kamath
The Unfinished Dream
Sponsored Programs
Amul Surabhai
Doordarshan, India
Amul India Show
Star Plus Channel
Feature Films
Sardar – The Iron man of India
Ketan Mehta
Manthan
Shyam Benegal
Distribution Channel
Most producers work with marketing intermediaries to bring their products to market. The
marketing intermediaries make up a marketing channel also called distribution cannel.
A one level channel; contain one selling intermediary such as retailer to the final customers.
A two level channel two intermediaries are typically wholesaler and retailer.
A three level channel are typically wholesaler, retailer and jobber in between.
GCMMF has an excellent distribution. It is its distribution channel, which has made it so
popular. GCMMF’s products like milk and milk products are perishable. It becomes that
much important for them to have a good distribution.
So Amul dairy industry has two level distribution channel in which there are a wholesaler,
retailer to final customer.
Distribution Chart
Products
Agents
Wholesaler
Retailer
Consumer
We can see from above figure that GCMMF distribution channel is simple and clear. The
produced in the plants are sold to whole sale dealers than to retailers and then the products
comes in the hands of the consumers.
Forecasting Demand
In the case of GCMMF, it has been observed that sales forecast is on the bases of projection
made by utilizing past sales data.
Branding
GCMMF made branding a major issue in its product strategy. Developing a branded product
requires a great deal of long term marketing investment for GCMMF.
GCMMF federation has now integrated it’s country-wide operations through successful
implementation of the “enterprise wide Integrated Application System”. GCMMF is among
the top 100 IT users in the country. Currently there are mote than 3000 computers installed in
different village societies, which support the Automated Milk Collection System. GCMMF
distributors can now place their order on their internet website www.amulb2b.com . We
continue to receive a good consumer response to our website www.amul.com which is noted
for its distinct features like Cyber Store for ice-cream and other milk products, cricket ratings
and the recently launched e-greetings site.
Managing Competition
They have also competitor in the market. They felt very tuff competition in our country and
outing countries
κ Payal Milk
κ Sardar Milk
κ Super Milk
κ Sagar Milk
κ Gayatri Milk
κ Samruddhi Milk
κ Gokul Ice-cream
κ Dairy-den Ice-cream
κ Havmior Ice-cream
κ Max
κ Vadilal Ice-cream
κ Gopi ghee
κ Gayatri Ghee
κ Abad ghee
Butter
κ Nature butter
Chocolate
κ Cadburry
κ Max
κ Dairy Milk
κ Five Star
κ Nestle
Cheese
κ Britannia
κ Lebon
All products have a limited life. They passes through different stages of life cycles:
o Introduction Stage
o Growth Stage
o Maturity Stage
o Decline Stage
As far as dairy products is concerned, it is in the “Maturity Stage” of the product life cycle.
Thus though dairy industry in maturity stage, still it has lot of market potential in the coming
years.
Differentiation Strategies
Positioning Strategies
It has tries to position through punch line like “Amul- The Taste of India” for its all
products.
Marketing Ethics
There are some marketing ethics followed by NDDB. They all are given 7 discussed briefly.
To provide good quality product is the first ethic of marketing each & every profit making
organization has to follow this. Because if you provide good quality product, customers will
be satisfied. Satisfied customers create a successful company.
It is another one important marketing strategy. An organization should try to provide speedy
& efficient service that gives the customer satisfaction. An organization is providing speedy
services that is must.
NDDB is the unit which is connected with milk & only milk. As we know, milk has greater
nutrition value. People connected with NDDB are expects in this field. So many doctors are
also with them. The main tasks of their selves is to sat the people that milk and milk products
are very useful for the over all working of our body. By much advertisement they are telling
us that milk products are necessary for body.
To create Customers:
The basic ethics of marketing is to create, customers. We can create customers by providing
good quality product & highly efficient service. It is our gain to create as more as possible
customer.
Here, we had seen the marketing ethics followed by the NDDB and GCMMF which helps to
take diploid about marketing policies.
Introduction
Financial management is that managerial activity which is concerned with the planing and
controlling of the firm’s financial resources. Finance is nothing to other but the money.
Money is necessary input for economic activities. In the other wards “Finance is the common
denominator the vast range of corporate objectives. The major part of any corporate plant
must be expressed in financial term”.
This unit is co-operative, so the finance is raised from members by a way to share capital. In
this share capital is limited. This unit has invested so many rupees in the structure of
organization. Finance for this unit based on share capital they are given 15% dividend to the
share holders. Amul has a long term finance project.
Financial Details
Name of bankers
Π Corporation Bank
2001-2002
Net Profit
Share Dividand
Net Profit
Share Dividand
Interpretation:
The sales are increased by 7.93%. The company has controlled raw material cost significantly
and has attained economic of scale. The salary & wages expenses is increasing. The
Interpretation:
The proportion of other income is increased. So that the reducing in decrease in stock. The
proportion of processing, packing, marketing, power & fuel expenses is decreasing. The
salary & wages and repair & maintenance expenses is increasing. So that company is try to
reduce their expenses.
Interpretation:
The reserve & surplus is increased so that most of the profit is distributed to reserve &
surplus. So that it is good for the company. Net fixed assets is increased. The investment is
Interpretation:
The proportion of the capital is reduced. Because of increasing the loan. So that the company
is to pay higher interest rate. The debt of the company is increased. The reserve & surplus of
the company is reducing. The proportion of the liability of the company is reducing from
34.04 to 21.25. The company has efficiently used fix assets to augment sales. Half of the
capital is invested in fix assets. The proportion of the inventory is moderate. The recovery of
the bill receivable is fast. Company is trying to reduce the fix cost.
Ratio Analysis
Liquidity Ratio
Current ratio 3.30 2.36
Quick ratio 1.93 1.64
Leverage Ratio
Debt equity ratio 0.75 5.90
Profitability Ratio
Net profit margin 0.25 0.31
Return on Assets 0.54 0.61
ROCE 1.00 1.32
Return on total assets 0.26times 0.25times
Turnover
Interpretation:
The company has high current ratio so it has the ability to discharge current liabilities by
generating cash from current assets. So it is good for the company.
The company enjoys high debt equity ratio it shows the aggressive entrepreneurial spirit of
promoters. So the company has to increase the burden. Because company is to pay high
interest.
Inventory ratio is low. So it shows the inefficiency of inventory mgt. Soothe Company is try
to increase the inventory turnover ration. It is bad for the company.
So that average collection period is low. So that it is good for the company.
The net profit margin is around o.31. So that company is try to increase the net profit. The
return on fixed assets is low. So that the money is blocked. The financial position is
unsatisfactory.
Distribution Of Profit
2001-2002 2000-2001
DISTRIBUTION
co-operative union
-----
-----
20000
15000
10000
5000
0
1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02
Inventory : Others:
742763385 135732554
The main purpose of its plant to increase export. They develop their production process to use
new technology. Research and Development has also taken a sponsored project.
• According to Porter (1980) a firm must be analyzed in relation to its industry. Factors
outside the industry tend to influence all the industry’s firms in the same way and are
thus not as important to study.
• To a large extent, industry structure governs the strategies open to the firms. The
profitability and attractiveness of an industry is dependent of the level of competition.
Competition in an industry originates from industry structure and goes well beyond
the behavior of individual competitors.
• According to Porter, each industry has a potential profitability and the profitability for
the firms is dependent on the competitive forces in the industry. Porter identifies five
competitive forces that derive from the ambition to obtain as large share of the
profitability as possible. The five forces are the foundation of the five-force model.
• The firm commits it self to being the cheapest alternative. Cost reduction must be
applied throughout the firm. The cost leader competes head on with all other firms in
the industry. Favourable history with first mover advantages
• Amul dairy face tremendous level of competition. Further there is old and
conventional culture still exists in the Amul dairy. Every is trying to capture other’s
pie in the market share. Every day each player comes out with the new strategies and
innovative products. They always diffentiate their brand with those of competitors.
FOR MILK
I. Gayatri
II. Royal
III. Sardar
FOR GHEE:
I. Gayatri
II. Nestle
FOR CHOCOLATE:
I. Nestle
II. Cadbury
The success of the national and local competitor’s brands includes effective
distribution system, advertising, good pricing policy etc. The major porter’s factor
can be listed and described in context of Amul dairy such as
• Amul dairy is having state of the art technology bring down from Denmark
German. And except loose milk vendor mother dairy is the single district level
seller of the milk. However the Amul dairy is bound by the norms of
federation. So, the pricing policy will be decided only by GCMMF and
customer would have not have bargaining power. In nutshell, the bargaining
• The products of the most of dairy which are listed under the Gujarat
cooperative milk marketing federation are marketed under the one unique
name ‘Amul’. Though, it is not having competition from the domestic level.
Amul dairy which is at the state level faces the competion from Nestle,
Britania, Gayatri dairy, sugam, Dairy dan. The major competitor of the Amul
5) Threats Of Substitute :
• Most of the milk and milk products substitute are very low. Milk powder can
be taken as a close substitute for the milk. In case of the ice-cream category
the close substitute is cold drink and soft drinks. So, the substitute of the milk
and milk product is completely low.
STRENGTHS:
WEAKNESSES:
Parishability:
Pasteurization has overcome this weakness partially. UHT gives milk long life. 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.
However, increased awareness of development 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 facility make milk procurement
problematic. But with the overall economic improvement in India, these problems would
also get solved.
Problematic distribution:
Yes, all is not will with distribution. But then if ice creams can be sold virtually at every
nook and corner, why can’t they sell other dairy products too? Moreover, it is only a
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.
OPPORTUNITIES:
“Failure is never final and success never ending.” Dr. Kurien bears out this statement
perfectly. He entered the industry when there are only threats. He met failure head-on 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.
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 addition products like shrikhand, ice-cream,
panner, khoa, favored milk etc. This will lead to a greater presence and flexibility in the
market place along with opportunities in the field of brand building.
Addition cultured product like yoghurt and cheese lend further strength both in terms of
utilization of resources and presence in the market place.
A lateral view opens up opportunities in milk proteins thro’ casein, caseinates and other
dietary protein, future opening up export opportunities.
Yet another aspect can be addition of infant foods geriatric foods and nutritionals.
Export potential:
Efforts to exploit export potential are already on. Amul is exporting to Bangladesh,
Srilanka, Nigeria, and Middle East. Following the new GATT treaty, opportunities will
THREATS:
Expansion up grading of plant and equipment to meet increasing demanded for quality and
quantity with the help of better qualified personnel.
Rapid increase in productivity while respecting the basic man land animal dynamic that is
control to dairy and agriculture development in India.
Development of new markets and expansion of old ones replacing additional system with
quality packaged milk products and vegetable.
Rapid progress towards the highest quality standard strengthens institutions leaders,
managers and members.
1) Sources of raw materials the one and only source from where they procure milk are
village milk societies so they need to strengthen relation with villagers.
2) Department must have to develop strict standard for Quality control milk because
milk is perishable product so advance testing lab is required.
3) Though the good technology used by the dairy advance and automated technology
will be introduce to lower the rate of exposure of the product to human being.
4) All the workers should be allowed with good safety.
5) Sanitation shall be kept clean and hygienic.
The urban market for milk products is expected to grow at 33% p.a to around Rs. 43500 crore
by year 2005. This growth is going to come from the greater emphasize on the processed
food sector and also increased in the conversion of milk into milk products. By 2005 the
value of Indian dairy produce is expected to be Rs. 10 lac million. Presently the market is
valued at around Rs. 700000 million.
Our overall impression about the unit and GCMMF is inexpressible. In this report after
analyzing we can conclude that “GCMMF” is progressive very rapidly in the Indian market.
The performance of the unit is very impressive in the past year. Though there is tough
competition with Britannia, Nestle, Vadilal, Havemore etc. It has shown a good progress.
According to Amul and GCMMF organization – MARG surveys GCMMF remarked 24th last
year among the top 60 industry in India.
In present Amul is become popular as The Taste of India. 50 years is a very big time for any
brand to establish itself successfully in the market. This give us golden opportunity to know
all functional area of amul. We know about the products of GCMMF, their quality, packaging
and price. The product of GCMMF demanded at very large scale because of their very
reasonable price.
Marketing of GCMMF made it so popular. Under the guidance of Dr. Vergees Kurein Mother
Dairy is growing day by day.
Hope and wise that the success story of AMUL going forever and other industries should take
inspiration from this successfully story.
We are sure and confident that successor capable and innovative my best wishes for future
success of the industry is an important part of our visit.
1. Books:
• Kotlar Philip “Marketing Management”, Published by Pearson Education, 10th edition
• K. Aswathappa, Human Resource And Personal Management 3rd edition
2. Websites:
• www.nddb.com
• www.amul.com
3. Search Engine
www.google.com
www.msn.com
www.yahoo.com
4. Magazines:
• Dairy India (March, July, Sept-2003)
• Review of Dairy Industry