RONAK R, PATEL

Amul Dairy Ltd.

V.M.PATEL COLLEGE OF MANAGEMENT STUDIES, KHERVA 1

Amul Dairy Ltd.

♣ COMPANY PROFILE ♣

Name of the company:-

“Kaira District Co-operative Milk Producers Union Ltd.” OR Amul Dairy co-operative Ltd. (A UNIT OF GCMMF)

Located at:-

o Kaira District Co-operative Milk Producers Union Ltd.o Station Road,o Anand – 388001

Contact Information For Amul Dairy co-operative Ltd:-

TELEPHONE:

+91-2692- 258506 +91-2692- 258507 +91-2692- 258508 +91-2692- 258509

FAX: +91-2692-240208

E-MAIL ADDRESS:

[email protected]

WEBSITE: http:/www.amul.com


mailto:[email protected]

Amul Dairy Ltd.

Business Philosophy :-There are different business philosophies to different

companies. In like this Amul also different philosophy from others. There are main two business philosophies in the business.

To serve to interest to milk products. To provide quality product to the customer.

Objective of the project work:-To determine three main subjects-

o Marketing Managemento Finance Managemento Personnel Management

Date of Registered :-

Amul was registered on Dec 14, 1946.

Name of the students:-

PATEL RONAK R.. (F.Y. B.B.A.)

Institution in charge:-

V.M.PATEL COLLEGE OF MANAGEMENT STUDIES.

Report submitted to:-

GANPAT UNIVERSITY, KHERVA

Academic year:-

2006 – 2007


Amul Dairy Ltd.

♣ HISTORY AND DEVELOPMENT ♣

It began with a farmer in Kaira District as elsewhere in India. Derived his income almost entirely from seasonal crops the income from milk as paltry 4 could not be dependent upon. The main by years were milk traders of Polson limited a privately own company as enjoyed monopoly for supply of milk from kaira to the govt’s milk scheme Bombay.

In Linked to the freedom movement in India. Inspiration of pre-eminent national leaders SARDAR VALLABHBHAI PATEL & MANOJ DESAI. The public of farmer decided to meet a SARDAR VALLABHBHAI PATEL & he proposed to handle this dairy. The farmer appealed to Sardar Patel a great leader at India freedom movement for help Sardar Patel advice them to marker the milk through a co-operative of their own. Due to the milk through strike by kaira farmers for 15 days not a drop of milk was sold to the traders. The Bombay milk scheme was sold to the traders. The Bombay milk scheme was badly affected the milk commissioner of Bombay visited Anand assessor the situation & farmer’s demand.

Thus was born the Kaira District Co-operation Milk Producer’s Union Limited, Anand. It was formally on December 14th, 1946.

In 1947, the kaira union set up a plant to manufacture high protein weaning food, chocolate & malted at major, about 8 km south of Anand. AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found in several Indian languages. Amul products have been in use in millions of homes since 1946.

Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India.

Today Amul is a symbol of many things. Of high-quality products sold at reasonable prices. Of the genesis of a vast co-operative network. Of the triumph of indigenous technology. Of the marketing savvy of a farmers' organization. And of a proven model for dairy development. (Turnover: Rs. 37.74 billion in 2005-06).


Amul Dairy Ltd.

The Khaira district cooperative milk producers’ union--known as Amul Dairy--has organized over 10,000 village cooperatives of India and helped them design and implement multiple interventions along the value chain. Together these cooperatives bring more than 10 million liters of milk to market daily, which makes them the leading player in the Indian milk industry.

By decentralizing and computerizing milk collection, Amul Dairy transformed the several-days-long process of taking milk to the market, selling it, and receiving payments, into a five-minute collection and payment transaction. Amul developed a computerized quality testing machine, which makes the process transparent and fair to the farmer, and buys exclusively from women—a decision which has empowered women.

Amul sells a wide range of dairy products, ranging from powdered milk to ice cream, at affordable prices.


Amul Dairy Ltd.

♣ GCMMF: An Overview ♣

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 9 years.

GCMMF, the apex marketing body of well known Amul, Sagar and Dhara brands of products is a Cooperative Federation of more than 2 million milk producers of Gujarat. Pioneered by Dr. Verghese Kurien, the father of white revolution, GCMMF is today nation's largest food company with an annual turnover exceeding Rs 2300 Crores.

Looking at the emerging trends of liberalization and impact of WTO, the GCMMF proactively embarked upon Total Quality Management as a change management initiatives to strengthen all its functional processes to effectively combat emerging competition. It undertook successfully a number of TQM initiatives like Kaizen, Housekeeping, Small Group Activities, Hoshin Kanri (Policy Deployment) across the organization. Employees of GCMMF have done more than 1.60 lakhs Kaizen since May, 1995 which has impacted in bringing in a culture of continuous improvement. The housekeeping initiatives have helped keeping the offices/warehouses neat, clean and more productive, be it be the Office premises or the godowns or even Computers. More than 150 SGAs (Small Group Activity) have been carried out in cross functional groups to address the problem and pain areas of the organization, be it an issue of sales, marketing, HR or IT. The organization has implemented a customized ERP for seamless integration of its 40 odd sales offices from Jammu to Port-Blair and Head Office. All its wholesale dealers are computerized and GCMMF is moving on a B2B model for integration interface with its dealers be it for placing order for buying its products, sharing information or for tracking logistic of dispatch/receipt of goods.

One of the unique initiatives has been in terms of involvement of its wholesale dealers in a common platform to address issues of market/customers. All the wholesale dealers from across the country have visited Anand in a unique programme called "AMUL YATRA". In the next phase, the organization has already started inviting the salesmen of these wholesale dealers for this programme. It also intends to invite the top retailers of various cities/towns to Anand. The purpose is not as much to orient them to GCMMF's business plans, but to inculcate a super-ordinate goal in their heart that


Amul Dairy Ltd.

when they are associated with AMUL, they are working for a modest milk producer in the rural hinterland of the country and that is what true progress is about.

GCMMF has more than 200 Amul Quality Circles in the country where all the above wholesale Dealers meet in group on every third Saturday of the month to discuss their business, quality initiatives and also pain areas. This has impacted tremendously not only in communication but also in improving the transparency in the organization.

GCMMF has also embarked upon for last 4 years, 'Hoshin Kanri' a ployment initiative where more than 100 Officers/Heads participate twice in a year to review its business goals/processes and implement new initiatives. These are further cascaded to the wholesale dealers in different territories in a two day exercise called Vision Mission Strategy (VMS) Workshop. These initiatives have resulted common understanding of goals, eliminating communication barrier.

The initiative of TQM six years back has made the organization efficient whether it be in launch of brands, or in implementing ERP's or expanding its distribution network. More striking feature of GCMMF's TQM experience is the integration of its business linkages at the village level to the forward linkage through its sales offices/wholesale dealers in the market.

In a glittering function organized at Vigyan Bhawan, New Delhi on 12th November, 2001, Shri Shanta Kumar, Hon'ble Minister of Consumer Affairs, Food and Public Distribution gave away the awards to Shri B.M. Vyas, MD of GCMMF.

Members: 12 district cooperative milk producers' Union

No. of Producer Members: 2.5 million

No. of Village Societies: 11,962

Total Milk handling capacity: 9.91 million liters per day

Milk collection (Total - 2005-06): 2.28 billion liters

Milk collection (Daily Average 2005-06):

No. of Dairy plants

6.3 million liters

19

Milk Drying Capacity: 511 metric Tons per day

Cattle feed manufacturing Capacity: 2340 Mts per day


Amul Dairy Ltd.

♣ EXISTING MANAGING BODY ♣

DESIGNATION NAME

Chairman :- Shri Parthibhai Bhatol

Vice-Chairman :- Shri Gordhanbhai Ashabhai Patel

Managing Director :- Shri B.M.Vyas

Director :- Shri Shivabhai Mahijibhai Parmar

Director :- Shri Navinbhai Ranchodbhai Patel

Director :- Shri Maganbhai Gokalbhai Zala

Director :- Shri Pravinsinh Fulsinh Solanki

Director :- Shri Pravinbhai Maganbhai Patel

Director :- Shri Bhaijibhai Amarsinh zala

Director :- Shri Somabhai Raijibhai Solanki

Director :-Shri Raijibhai Devjibhai Patel

Director :- Smt.Madhuben Dhamasinh Parmar

Director :- Smt saraben Bharatbhai Patel

Director :- Shri Rajitbhai Kantibhai Patel

Director :- Shri Rahul Kumar


Amul Dairy Ltd.

Bankers: - 1. The Kaira District Central Co-op.Bank Ltd. 2. State Bank of India 3. UTI Bank Ltd. 4. Bank of Baroda 5. Corporation Bank

6. Bank of Maharastra

Auditors:- Special Auditors (Milk) Milk Audit Office,

Anand.


Amul Dairy Ltd.

♣ ORGANIZATION STRUCTURE ♣


Managing Director

DirectorMkg & Prod

DirectorAdministration

ProductionDepartment

MarketingDepartment Finance

DepartmentPersonnel

DepartmentCompanySecretary

Marketing – In - Charge

Sales Supervisor

Salesman

QualityManager

ProductionManager

Chief AccountantAssistantSecretary

AssistantAccountant

LaboratoryIn charge

Maintenance in charge/Purchase in charge

Board of Directors

Amul Dairy Ltd.

♣ FORM OF ORGANIZATION & SIZE OF UNIT ♣

The unit can be divided in to large scale, medium scale, and small scale. The size determined by the investment of the unit of the it’s fixed assets and plant, the capital employed and employees working in the company. The Amul Dairy can be classifies as a large scale unit.

There are many forms of business like sole trader’s firm, partner firm, co-operative firm, joint stock Company, private company, limited company etc. The form of Amul Dairy is co-operative sectors because the dairy established on the basis of co-operation of the cattle racers and farmers or milk producers.

Professor “Pual Lamber” have been defined the co-operative societies are set up primary with the object of organism some basic or essential service for the benefits of members. Any surplus entered by the co-operative societies is in incidental to the motto of service.


Amul Dairy Ltd.

♣ PRODUCTS ♣ Amul produce large number of milk products in their business plant. These products are basically milk products. Some of their products are as below:

Amul’s consumer products:-

Pestenized milk Cheese Butter Amul’s whole milk powder Condense milk Amul baby food Amul cheese Amul’s Nutramul Amul lite Amul dan (cattle food)

Amul chocolate:-

Amul fruit & nut Amul orange Amul milk chocolate Amul butter Amul crope Amul coffee Amul crunch Amul badambar

Amul’s Industrial Products:-

cocoa Butter cocoa powder cocoa mass cream casein


Amul Dairy Ltd.

♣ PRODUCTS ♣V.M.PATEL COLLEGE OF MANAGEMENT STUDIES, KHERVA 13

Amul Dairy Ltd.

Amul produce large number of milk products in their business plant. These products are basically milk products. Some of their products are as below:

Amul Milk

Amul Cheese

Amul Ghee

Amul Milk Powder

Amul Masti Dahi

Amul Shrikhand

Amul Ice-cream

Amul Chocolate

Amul Pizza

Amul Butter

Amul Paneer

Amul Koolmilk

Amul Healthy Food

Amul Tea-coffee Powder

Amul Fresh Cream

♣ Amul Milk:-


Amul Dairy Ltd.

This is the most hygienic milk available in the market. Pasteurized in State-of-the-art processing plants and Pouch-packed for convenience.

♣ Amul Milk Powder:-

This powder is best for the child.

♣ Amul Kool Milk:-

Drinking milk in three flavors, rose, orange and kesar.

♣ Amul Healthy Food:-

Malted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.

♣ Amul Tea-Coffee Powder:-

Milk powder for making tea or Coffee.


Amul Dairy Ltd.

♣ Amul Skimmed Milk Powder:-

It is especially useful for diet preparations or for use by people on Low calorie and high protein diet.

♣ Amul Paneer:-

Ready to cook paneer to make your favorites recipes.

♣ Amul Butter:-

Utterly Butterly Delicious. Low fat, low Cholesterol Bread

Spread.

♣ Amul Cheese:-


Amul Dairy Ltd.

Tasty Cheese Spreads in great Flavors.

♣ Amul Ghee:-

Made from fresh cream. Has typical Rich aroma and granular texture. An ethnic product made by diaries with decades of experience.

♣ Amul Masti Dahi:-

A Dahi made from pure fated milk.

♣ Amul Fresh Cream:-

A fresh cream made from milk.

♣ Amul Gulab Jamun Mix:-


Amul Dairy Ltd.

Pure Khoya Gula Jamums. Best Served piping hot.

♣ Amul Shrikhand:-

A delicious treat, anytime.

♣ Amul Chocolate:-

The perfect gift for someone you love.

♣ Amul Pizza:-

A pizza as a fast food forever.

♣ Amul Ice-creams:-

Premium Ice Cream made in


Amul Dairy Ltd.

Various varieties and flavors with Dry fruits and nuts.

♣ Kesarpista Ice-cream:-

Ice cream in kesarpista flavore.

♣ Amul Soups:-

A new product of amul, the soup.

♣ PRODUCTION PLAN ♣

Issuing the Raw-Materials:


Amul Dairy Ltd.

As per the formula raw materials are indented from the store section to plant section.

Store superintendent issuing different ingredients to the hopper in the warehouse.

Now from the ware house different ingredients are taken to the interning conveys one by one into the plant.

Cleaning section:

First material is passed through a cleaning section.

Clearing means to remove all the useless part or particles from the materials.

Grinding section:

Powder ingredients like rice police fine, maize glutton etc. are taken to the grinding reaction for the purpose for the purpose of grinding.

Ground materials is taken to the respective pre-weighing binds 1 to 14 are well liked the respective materials as per the formula.

Batch preparation:

As per the formula different ingredients are extracted. From the pre-weighing brides & catty weighed & collected into a contract desk weighed.


Amul Dairy Ltd.

Preparation time per batch 3:5 Minutes

Ones batch is prepared whole batch is taken to be batch mixes machine for humongous mixing.

Now his mixed batch materials section.

Molasses Section:

In Molasses section Molasses is added into a how of any material at certain temperature & pressure.

Molassed & dry materials is mixed in molasses mixer machine.

Now this mixes materials is taken to the palletizing section.

Palletizing Section:

Steam is mixed materials in feeder conditioner & passed through a pallet mills dye & Pallet from is prepared.

Now this not finished product is passed through pallet corer to costs down its temperature.

Then finished product is taken to packaging section & powder or broken pallent 6 are taken to the direct mill for reprocess

Packaging Section:

In packaging section finished product is packs into the gunny bags with weight gross of 71.800 kg 70,000 kg get weight product


Amul Dairy Ltd.

00.900 kg gross weight of empty gunny bags. 00.900 kg gross excess feeling of finished product.

The finished product has in the invited stage a good amount of moisture to prevent the reduction of weight excess feeling is done in the since. The multitude dries cut after some time, the loss of weightier is correspondent with the exiles product.

Laboratory Testing:

Also at the time of packaging sample of finished product is taken into a box.

After 100 bags that sample box is collected by laboratory for the analysis of finished product.

Dispatch:

On the next day when analysis report comes to the despites section then finished product is dispatched to the village milk society.

C.F.F Kanjari comprises of two units of plant the 1st unit is totally imparted while 2nd unit is the product of R & D department of AMUL.

The average total production of 4390 MTS is achieved lay both the plants connectively.

♣ PASTEURIZATION PROCESS OF MILK ♣


Amul Dairy Ltd.

Pasteurization is a well know process named after a legendary French scientist Louis Pasteur who had developed a process to preserve perishable foods like milk in the 18th century.

The modern process of pasteurized refers to heating milk and milk products to at least 72 Celsius for 15 seconds in order to destroy harmful organisms present in ‘raw’ (non- pasteurized) milk. Thus, pasteurization makes milk and milk products safe for consumption and improves its keeping quality.

You must have observed a layer of cream from an the surface of milk when it is stored undisturbed for 2-3 hours. This is because the fat present in the milk is lighter than the other constituents of milk. Moreover, fat in milk is present in the form of small fat globules.

When they come together, they form a layer of fat, thus making them float.. Many times this is not desirable; because once the fat has formed a layer it is very difficult to mix it again with the rest of the milk. To solve this, a process has been developed which is know as Homogenization.

Homogenization is a process of making different sized fat globules form in to a uniform homogeneous small size.

Homogenized milk has increased whiteness so less milk is required to make tea and coffee. Homogenization gives a thicker consistency of milk. However, it is easy to digest.

♣ CURD PRODUCTION PROCESS ♣

V.M.PATEL COLLEGE OF MANAGEMENT STUDIES, KHERVA 23Manufacturing process for plain Curd

Milk

Amul Dairy Ltd.

♣ MANUFACTURING PROCESS ♣ OF


Add SMP & sugar

Heat to 800c for 17 seconds

Add Culture

Filter

Fill in cups

Incubate at 380c for 4 hrs(Acidity 0.63% to 0.8% la)

Cool to 150c

Stare under refrigeration

Amul Dairy Ltd.

PRODUCTS

1. Cream:- Means the product of cow or buffalo milk or a combination

therefore. It shall be free from starch and other ingredients foreign to milk. It may be of following three categories, namely:-

I. Low fat cream containing milk fat not less than 25.0 percent by weight.

II. Medium fat cream containing milk fat not less than 40.0 percent by weight.

III. High fat cream containing milk fat not less than 60.0 percent by weight.

2. Ghee :-Means the pure clarified fat derived solely from milk or

from card or from deshi (cooking) butter or from cream to which no coloring or preservative has been added. Ghee is manufactured by pre-stratification method, raising the temperature to 110-120c, when the product with mild flavor is obtained. Made from fresh cream. Has typical Rich aroma and granular texture. An ethnic product made by diaries with decades of experience.

3. Butter :-Means the products obtained from cow or buffalo milk or a

combination therefore or curd obtained from cow or buffalo milk or a combination thereof without the addition of any preservative including common salt. Any added flavoring agent. It shall be free from other animal fats. Wax and minerals oils; and vegetable oil and fats. Utterly Buttery Delicious. Low fat, low Cholesterol Bread Spread.

4. Table butter :-


Amul Dairy Ltd.

Means the products obtained from cow or buffalo milk or a combination thereof, or from cream or curd obtained from cow or buffalo milk, or a combination thereof, with or without the addition of common salt, and taint not less than 80.0% of milk fat, not more than 16.0% moisture, not more than 3.0% common salt, and not more than 1.0% of curd. No preservative is permissible in butter.

5. Skimmed milk powder :-The product obtained from skimmed

milk of cow or buffalo or a combination thereof by the removal of water through spray drying or by roller drying. This powder is best for the child. It is especially useful for diet preparations or for use by people on Low calorie and high protein diet.

6. Processed cheese :-The food prepared by comminuting and

mixing in to a homogeneous plastic mass with the aid of heat one or more types of hard cheeses with or without sorbet acid or nixing or both the maximum extend of 0.1% by mass. Tasty Cheese Spreads in great flavors.

♣ PACKAGING ♣V.M.PATEL COLLEGE OF MANAGEMENT STUDIES, KHERVA 26

Amul Dairy Ltd.

Packing is aimed at impressing the buyers through colorful attractive and eye caching packing of the product. The importance of packing has increased considerably in the area of marketing recent years. Pacing means all the activities involved in designing and producing the container or wrapper for a product.

Packaging is the activities of designing and producing the container or wrapper for a product. Amul produce only milk items, so that it’s product packaging are also of good quality.

There packaging is perishable, convenience, easy to handle, attractive, all information about the product is written in the packages. It is food item so that packaging must be strong and enough. So that the food remains fresh.

PRODUCT SCHEDULING:-

Product scheduling is to introduce & develop the new products as per the consumer’s requirement.

In Amul, federation decides what type of product is to be produced or what the requirements for developing a new product. If the product are not at their best then what kinds of up gradations are required GCMMF guides AMUL for the above concern & accordingly the unit works.

♣ Product Line And Mix ♣V.M.PATEL COLLEGE OF MANAGEMENT STUDIES, KHERVA 27

Amul Dairy Ltd.

MILK ICE-CREAM & CHOCOLATE

WET PRODUCTS

DRY PRODUCTS

Amul Tazza Amul Milk Chocolate Amul Butter Amul Full Cram Milk powder

Amul Gold Amul Fruit & Nut Chocolate

Amul Litelow Fat Borad

Amulya Dairy Winter

Amul Slim & Trim Mix

Amul Eclairs Amul Cooking Butter

Sagar tea-coffee Whitener

Amul Chocolate Mix

Amul Fundoo Chocolate

Amul pizza Cheese Amul Mithaee Gulab Jamun

Amul Freash Cream

Amul Bindas Chocolate

Amul Emmental cheese

Amul Mithaee Kulfi Mix

Amul Tazza Toned Milk

Alnond Bar Amul Malai Paneer Sagar Skimmed Milk Powder

Amul Shakti standordised

Nut-o-Mania Range Amul Pure Ghee Amul Shakti Health Food

Amul Smart Double Toned Milk

Visav Range Amul Masti Dahi Amul Spary Infant Milk Food

Amul Gold Full Cream Milk

Amul Cooking Chocolate

PERFORMANCE HIGHLIGHTS


Amul Dairy Ltd.

Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850


Amul Dairy Ltd.

♣ INRTODUCTION ♣


Amul Dairy Ltd.

Marketing is very important for any organization. If company has not marketing department so it is not sales it’s product. This type of organization structure is very important because when company has marketing department so it can easy to sale it’s product.

According to Philp Kotlar, “Marketing Management is the analysis, planning, implementation and control of programs designing to create build and maintain beneficial exchange with target buyers for the purpose of achieving organizational objectives.”

The concepts of market are very important. Marketing is a comprehensive learn. It includes primary resources such as human resources, finance & management as well as a set of activities in order to direct the flow of goods & services from producer to consumer in the process of exchange & distribution.

Marketing may be defined as the process of exchange between seller & buyer. It involves a number of inter related activities designed to plan promote, distribute & price a product or service in order to meet the wants & needs of both the parties in exchange.

Marketing is the “Creating & delivery of standard of living to the society” A total system of interacting the business activities designed to plan, price promote & distribute want satisfying products & servicer to present & potential customers.

According to the committee of American marketing association. Marketing consist of performance of business activity that direct the flow of good and services from producers or supplier to the consumer and users.

♣ CHANNEL OF DISTRIBUTION ♣V.M.PATEL COLLEGE OF MANAGEMENT STUDIES, KHERVA 31

Amul Dairy Ltd.

Most producers use intermediaries to bring their product to market. They try to force a distribution channel. “ A set of interdependent organization involved in the process of making a product or services available for use or consumption by the consumer or business users.” Number of the intermediate shows the length of the distribution channel. There are different channels shows in below:

Direct Marketing Channel: -

Direct marketing channel has no intermediary levels. It consists of a company selling directly to the consumers.

Indirect Marketing Channel: -

Indirect marketing channels have one or more than one intermediaries levels. As above diagram all the distribution channels level except channel the examples of indirect marketing channels.

Now, we will discuss that Amul is using which types of distribution channel.

Amul is using Indirect Marketing Channel.


Manufacture

Manufacture

Manufacture

Manufacture

Whole Saler

Whole Saler

Jobber

Retailer

Retailer

Consumer

Consumer

Consumer

Consumer

Retailer

Amul Dairy Ltd.

The milk which is comes from villages brings to process in Amul. They distribute their processed milk in refrigeration, which are:

♣ MARKETING PROCESS ♣ Marketing of Amul’s Product is done by G.C.M.M.F Ltd. 90% of Amul Product are marketed by federation except for liquid milk. Before establishment of G.C.M.M.F dairy marked the product directly, this lead to many problems. Thus the Gujarat Co-Operative milk marketing federation areas established in 1972 for marketing the dairies of Gujarat. (total 12 Dairies)

All the function of marketing like advertising, budget, marketing research, price for product etc. G.C.M.M.F. It sent montly market requirements date to the dairies & according to this another concerned dairies will work.


Whole Saler

Amul Dairy

GCMMF

Cold Storage

Distributors

Villages

Retailer

Final Consumer

Amul Dairy Ltd.

Daily the amount of production of Amul like Cheese, Butter, Milk, Powder, Chocolate etc. are sent to the commercial department through production department. This data is very useful to the Amul dispatch orders, which is sent to the federation dispatch order. It involves quality of good when the goods are to be sent price signal executive etc.

There dispatch order are sent to concerned state by programme committee & under committee member different persons are included line member of Amul.

Through federation Amul get fixed percentage of commission on each production. Federation selling function done through 33 sales officers in all India & 250 persons are working on this sales office.

♣ Amul "Utterly Delicious" Parlours♣


Amul Dairy Ltd.

Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlours created in major cities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat. Amul has plans to create a large chain of such outlets to be managed by franchisees throughout the country. We have created Amul Parlours at some prominent locations in the country, which are run by the company or its wholesale dealers:

"Amul Utterly Delicious" parlours are an excellent business opportunity for investors, shopkeepers and organizations. In order to come closer to the customer, we have decided to create a model for retail outlets, which would be known as "Amul Preferred Outlets"(APO).

♣ MARKET SEGMENTATION ♣


Amul Dairy Ltd.

“Marketing segmentation is the sub dividing of a market in to disting sub set of customers, where any subsets of customers may be selected as a target market to be reached with a disting marketing mix”.

In segmenting markets, markets can apply Geographic, Demographic & Psychographic variable related to consumer characteristics as well as Behavioral variables related to consumer responses.

1. Geographic Segmentation: -

Geographic segmentation calls for dividing the market into different geographic units such as: nations, states, regions, countries, cities or neighborhoods.

A Company may decide to operate in one or a few geographical area, or to operate in all areas but pay attention to local variations in geographic difference in needs and wants.

2. Demographic Segmentation: -

Demographic segmentation dividing market into group based on demographic variable such as age, gender, family size, family life style, income, occupation, education, religion, generation and nationality.

i. Age And Lifecycle Segmentation

ii. Gender Segmentation

iii. Income Segmentation

I. Age and Life Cycle Segmentation: -


Amul Dairy Ltd.

Age & life cycle segmentation offering different product or using different market approaches for different age & lifecycle groups.

II. Gender Segmentation: -

Gender segmentation dividing a market into different groups based on gender. Gender segmentation has long been used in Clothing, cosmetics and magazines.

III. Income Segmentation: -

Income segmentation dividing a market into different income groups. The marketers of products and services such as automobiles, boats, clothing, cosmetics, financial services and travel have long used income segmentation.

Amul Dairy has adopted Income segmentation. The high-class people used Amul gold pasteurized standardized milk and lower Class people used Amul Taaza pasteurized standardized milk.

♣ PRICING ♣


Amul Dairy Ltd.

Pricing is the sum of the values consumers exchange for the benefits of having or using the amount of money changed for a product as organization & many non- profit organization set prices is the only element in the marketing mix that producers revenue price is also one of the most flexible element of marketing mix.

Through out the history prices were set by buyers & seller’s negotiation with each other sellers would ask for a higher price then they expected to pay through bargaining, they would arrive at an acceptable price.

Price is all round as all profit- making. Setting one price for all buyers is relating modern idea. It was given impetus by the development of the large scale retailing at the end of the nineteenth century.

Price is the amount of money charged for a product or sevice or the sum of the values that consumer exchange for the benefit of having or using the product or services.

The price of the company charged will be somewhere between one that is too low to product a profit and one that is too high to product any demand. Product costs set a floor to the price; consumer perception of the product values set the selling. The company must consider competitor’s price and other external and internal factors to find the best price between too extremes.

Company set the price by selecting general pricing approach. There are three types of policy.

1. Cost Based Approach2. Buyer (value) Based Approach3. Competition Based Approach

Amul is using buyer (value) based approach.

In this approach company is basing of their price on the products perceived value. Value based pricing uses buyer’s perception of value not the seller’s cost, as the key to pricing. Value based price means that the marketer cannot design a product and marketing program and then set the price. Price consider along with the other marketing mix variable before the marketing program is set. A company using value-based price must find out what value buyer assign to different competitive offers.

♣ SALES PROMOTION ♣V.M.PATEL COLLEGE OF MANAGEMENT STUDIES, KHERVA 38

Amul Dairy Ltd.

Sales promotion is a key ingredient is marketing campaigns. Sales promotion consists of diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular product or by consumers or the trade.

PURPOSE OF SALES PROMOTION:-

Prize and free sample to stimulate consumer trial, to attract new trials , to rewards loyal customer and to increase the repurchase the rate of occasional users.

OBJECTIVE ON PROMOTION:-

For consumers, objectives include encouraging purchase of large size units, building trial among non-users and attracting switchers away from competitor brand.

For retailers, objectives include persuading retailers to carry new items and higher levels of inventory, encouraging stocking of related items, off setting competitor promotions, building brand loyalty. And gaining entry in to new retailer outlets.

(A) Consumer Sales Promotion Tools :-

The main consumer promotion tools include sample, coupons, cash refund, price pack, premium, advertising specialty, Point of purchase displays and demonstration, contests, sweepstakes and games. Here, we discuss some of them,

1. Sample: -A small amount of a product offered to the consumer for trail.

2. Coupons: - Certificate that gives buyers a saving when they purchase a specified product.


Amul Dairy Ltd.

3. Premium: -Good offered either free or at low cost as an Incentive to

buy a product.4. Price Pack: -

Reduced price that is marked by the producers directly on the label or packaging.

5. Cash Refund Offer: -

Offer of refund part of the purchase price of a product to consumers who send a “Proof of purchase” to the manufacturer.

6. Advertising Specialty: -

Useful article imprinted with an advertiser’s name, gives as a gift to consumer.

(B) Trade Promotion Tools :-

Manufacturer use several trade promotion tools. Many of the tools used for consumer promotion. Contests, premium, displays can also be used as trade promotion.

1. Discount: -A strategy reduction in price on purchases during a state

period of time.

2. Allowance: -

Promotional money paid by manufacturers to retailer in return form agreement to feature the manufacturer’s product in some way.


Amul Dairy Ltd.

♣ ADVERTISING♣

Advertising is one of the tools that a company uses to direct persuasive communication to target buyers & consumer. Advertising is any paid from of non-personal presentation & promotion of ideas well as services by identified sponsors.

Advertising is employed in all the countries of the world. Advertising is a cost effective ways to dissemination messages.

The major objective of advertising is to inform to persuade & to remind customers about the media. Frequency & impact, choosing, among major media type, selecting specific media vehicles, deciding on media timing & deciding geographical media allocation.

Advertising is very important tool for the product range of Amul Dairy. The company is given advertising in reputed & well-circulated industrial magazines T.V, Newspapers etc.

This is done order to bring awareness of the company’s various products among the customers & introduce, co-range of product into nearly diversification fields.


Amul Dairy Ltd.


Amul Dairy Ltd.

♣ MARKETING RESEARCH ♣

Market decision making is both problems in challenge because it depend on consumer behavior to meet with this problems and challenge the marketing manager has to collect dependable marketing data and information base of decision making, this job of collecting recording and analysis data for analyzing data for marketing decision is known as “Marketing Research”

According to CRISP “Marketing Research” is the systematic objective and exhaustive search study of the facts relevant to any marketing problem.

The scope of this research is related up to market price consumer and sales as well as distribution. While a marketing research on national level are performed by GCMMF. For this GCMMF has appointed various management and marketing expected who study the market, fashion behavior, future demand and present demand and inform their union’s research. The marketing research expenditure is paid by GCMMF.

During marketing research due important is being given to the consumer expected price, competitor’s strength and govt’s force the product image, sales growth, target sales quota etc. by Amul Dairy is a GCMMF. Amul Dairy has also quality control department.


Amul Dairy Ltd.

♣ PUBLIC RELATION♣

Another major mass promotion tools are public relation. Building good relation company various publics by obtaining favorable publicity, building up a good co-part image and handling or heading off unfavorable stories and events.

Public relation is used to promote product, people, place, ideas, activities; organizations and even nation Amul also use public relation to promote sales of its product or creating good consumer relationship.


Amul Dairy Ltd.


Amul Dairy Ltd.

♣ INTRODUCTION ♣

Personnel department is one of the vital departments in any organization today. Main is active factored of production and there is doubt that it is the main controls & manages machine, material, money & market. It is like the heart of any enterprise, without manpower the organization can not run or work. Amul Dairy Ltd. has a personnel department which deals with various matters relating to the personnel.

During our visit in Amul Dairy,I found that there is a separate department for human resources development i.e personnel department, which performs the function like personnel administrator, wage & salary administration, staffing, training, motivation, industrial relation recruitment and selection, personnel records and personnel audit.

Thus we can say that thought giving full guidance, advice, motivation, etc to the employee and increasing their morale. Amul dairy has achieved its short term goals promptly and built the structure for long time objective. Due to the efficiency and competency of HRD manger, there has been no strike in Amul Dairy, right its establishment and employees are promptly satisfied with the job, which has been offered to him.


Amul Dairy Ltd.

♣ RECRUITMENT & SELECTION ♣

RECRUITMENT:-

It forms the first stage in the process, which continuous with selection causes with the placement of the candidate’s recruitment is the discovering of potential applications.

There are 3 method of recruitment.

1. Direct2. Indirect 3. Third Party Method

Amul has adopted direct method of recruitment

In Amul 4 types of Recruitment.

1. Graded Skill:

In this type of recruitments employees are recruited two ways under graded skill firstly well qualified & experienced persons are considered secondly fresh graduate from well know institute like I.R.M.A, TATA etc. are considered.

2. Recruitment Under Union Scheme:

This scheme is owned schemed of Amul according to this scheme M.L.W, M.R.M.D, D.C.A, M.B.A Candidates are recruited as management trainee candidates is 1 year & stipend Rs.1500 per month ,for engineering training period is 1 year & stipend Rs. 2000 per month for 1st year is Rs.1200 ,2nd year Rs 1500 & 3rd year Rs.1500.

3. Recruitment of Temporary Workers :

Under this scheme workers are recruited temporary for 3,6,9 or 12 month they will be recruited in union scheme as trainee. Their training period is three year if they are irregular then their training period may be extended .


Amul Dairy Ltd.

4. Recruitment Under Apprentice Act: There are three of apprentice Act.Apprentice Act 1961

Under this act 61 student from S.S.C, B.S.C, government takes I.T.I .

Apprentice Act 1973:

Under this act seat are allotted for engineering ,diploma & degree. They are given the post like technician’s food & diary technology etc.Per diploma student 1 year training Rs. 900 per month & for degree holder student 1-year training stipend Rs 2000 per month.

Apprentice Act 1986:

Under this act Vocation al persons are consider they given post like management trainee. Their training period is Rs 450 per month in 1 year training.

SELECTION:- Selection procedure of Amul is as under.

Vacancy in any Department

Direct application

Collection of application

Scritinisation of application

Interview

Medical Check up

Selection


Amul Dairy Ltd.

1. Vacancy in any department:

Where there is any organization department then they collect information through collages, institution, university etc.

2. Collection of application:

They collect application from post which are directly received. They collect list from district employment exchange campus interview etc.

3. Scrutinisation of application:

After collection of application. They are studies in detail & not suitable application are rejected & other kept for further process.

4. Interview:

Remaining applications are then called for interview in this interview person personality, experiences, subject knowledge, general knowledge etc. Are tested Interview result declared on that day.

5. Medical checkup:

Selected person sent for medical checkup & when person medically fit then section is done

6. Selection:

Medical fit person gave offer letter & then person is joining in a work. In Amul probation period is different for different types of person.

12 month for officers.6 month for clericals.3 month for workers

If any person is not suitable for his job then they have a write to terminate their services also.


Amul Dairy Ltd.

♣ WAGE & SALARY ADMINISTRATION ♣

The wages are paid in cash & are also credited in the sawing & Bank Account of the employees. Wages are deducted according to the grade of works. Amul has A, B, C, D, E, F grades of workers.

Following are the minimum & maximum pay scale for different categories of persons.

Payroll Systems

Pay scale Post Grade 7000 to 15000 M.D Manager5000 to 11000 G.M Manager3900 to 8300 A.G.M Manager3500 to 7800 Manager Manager2300 to 6200 Deputy Manager Manager

1800 to 5480 Supdt officers1550 to 5078 Dy. Supdt officers1300 to 5480 Sr. officers’ officers

950 to 3645 Assistant clerical750 to 3684 Sr.Clerk clerical300 to 350 Grade ‘C’ Workers280 to 895 Grade ‘D’ Workers195 to 68 Grade ‘E’ Workers175 to 60 Grade ‘F’ Workers Total NO of employees are include in Amul Dairy at anand.

GRADE MANPOWER

Manager 54Officer 209Supervisor & clerical 8Workers 1083 1354


Amul Dairy Ltd.

♣ LABOUR WELFARE ♣

Manpower is the lift hood of an organization. It is Property conduct then only the organization can work efficiently & properly.

1. Canteen Facilities:

Amul has its own Canteen for its workers’ as well as staff members . All the workers of the organization get tea ,coffee, breakfast at minimum rate Tea & coffee 40 Paisa per cap>Dry fast food Rs. Per kg.Lunch dish Rs 5 per dish. 2. Medical Facilities:

Amul also provided Medical facilities to its workers.Amul have its own medical hospital within Organization.

3. Education Facilities:

Amul is also given Education facilities to its own workers children maximum to Rs 1000.

4. Bonus:

Amul given bonus before Diwali to their workers & office staff also.

5. Loan Facilities:

They gave loan to workers.

6. Safety:

Amul also provide hand, googol, and shoes for workers safety.


Amul Dairy Ltd.

♣ TRAINING & DEVELOPMENT ♣

Every organization needs to have well-trained & experienced people to perform the activate that have to be done. Training is or process of leaving a sequence of programmed behavior .It is a system to improve the skill.

Training in Amul is done by three ways.

1. Divisional.2. Manager proposal.3. Performance Appraisal

Training is provided to the capable & responsible person in Amul.

Manager proposed for training is to be send to different training institutions like IEM, IRMA etc.Employment are analyzed about their performances to their job. Those who are selected for training has to submit their report after completed their training.

So, young talented officer are send for training their time period is 2 year.


Amul Dairy Ltd.

♣ PERFORMANCE APPRAISAL ♣

The process of evaluating the performances & Qualification of the employees in term of the requirement of the job for which he employed is said to be performances appraisal system.

It is highly useful in making decision regarding various personnelAspect such as promotion & merit.

Amul adopts two type of Appraisal system.

1. For Nearly joint2. Promoters from one place to other performances

Appraisal period far trainees are one-year temporary workers.

1 ½ year Managerial & Engineers

Trainer ¾ year.

Workers 1 year.

Officers 3 year.

Clerical 4 supervisors 2 year.


Amul Dairy Ltd.

♣ PROMOTION & TRANSFER POLICY♣

PROMOTION:-

Competence to discharge the responsibility of each job is the prime consideration for promotion to a post. The judgment of the competence of an individual to discharge his duties will be based on:-

Academic performance

Experience in and outside AMUL DAIRY.

Nature of experience

Interview performance

Quality of post performance

His suitability for the senior position post

His potential for future development

D.P.Committee:-

For all posts in grade “G1” and above - MDFor all posts in grade “H1” and below - H0 – ED (P& A) Matg. By mktg. Division.

Details of employees in the zone of consideration for promotion falling under following categories shall be specifically brought to the notice of the members of the DPCs:-

Employees who are under suspension, pending enquiry.

Disciplinary proceedings are pending or a decision has been taken to initiate disciplinary proceedings.

Employees who are awarded punishment as a result of enquiry.


Amul Dairy Ltd.

Employees against whom vigilance case is pending and or being contemplated.

TRANSFER:-

In case, the employee is awarded punishment his disability period shall be extended by the following period:

1. Demotion / reduction in post/grade/pay - 2 years

2. Withholding of increments with or without cumulative effect - 1 year

Seniority of demoted employee shall be recorded from the original date of entry in the demoted grade not from the date of demotion.

Employee brings outside influence in the matter pertaining to his/her service will be debarred from consideration from promotion for a period of one year from the date of his eligibility.

Employee refuses to accept promotion, with the change in the place of posting, will be debarred for promotion for 2 years.


Amul Dairy Ltd.

♣ TIME KEEPING SYSTEM ♣

The time keeping system enable the organization to the relevant information regarding the employee, present , absence , overtime , casual level , regularly etc.

Attendance is capturing through on line data capturing terminals. There are two machines one is Time-In machine & other is Time-Out machine.

Time-In machine is use at the entering in the Amul dairy. Time-Out machine is use at the time of going from Amul dairy by there employees. Time office is also loading the leave foams and over time foams for attendance of that employee.

Final masking is done at 25th of the every month. Then it is given to accounts department and according to it the pay-slip is prepared & that amount is deposited directly to there employees accounts. And if there is any absentee is found than the salary is cut from its pay-slip directly.

The Amul dairy is being operated under 3 shifts.

The time keeping helps the Amul dairy in deciding the wages and based on level and overtime. It also helps in appraising the performance of personnel for promotion.

V.M.PATEL COLLEGE OF MANAGEMENT STUDIES, KHERVA

SHIFT TIME1st shift 12:00 A.M. TO 8:00 A.M2nd shift 8:00 A.M. TO 4:00 P.M.3rd shift 4:00 P.M. TO 12:00 A.M.

56

Amul Dairy Ltd.


Amul Dairy Ltd.

TRADING, PROFIT & LOSS ACCOUNT for the year ended 31st MARCH 2006

2004-05 PARTICULARS 2005-06Rs. In Lacs To Opening stock Rs. In Lacs

2046.29 Finished Good Stock 4990.73 1271.94 Stock in process 1179.10 74.25 Milk Stock 126.26 0.00 Stock in Transit 111.65 0.00 Parlour Stock 0.65 3392.48 6408.39 39890.82 To Milk Purchases 46502.01 10040.21 To Raw Material Consumption 10872.93 582.97 To Research & Extension Exp. 727.41 299.79 To Processing Exp 570.19 4317.15 To Packaging Exp. 5267.93 2324.58 To Power & Fuel Exp. 2564.09 1410.85 To Salaries and Wages 1378.63 368.53 To Staff Provident Fund, Gratuity & Other 481.82

674.09 To Repairs & Maintenance Exp. 736.24306.01 To Freights & Forwarding Exp. 465.7769.72 To Marketing Exp. 97.62

45.04To Postage,Telegram,Telephone,Printing & Stationary Exp 58.10

43.87 To Insurance Premium 76.1023.28 To Rent, Rates & Taxes 47.0172.14 To Audit Fees 82.96

122.18 To Administrative Exp. 127.83848.69 To Interest & Bank Commission 789.23

To Depreciation4440.11 Total Depreciation Charged 1887.41356.73 Less Adjusted against Grants 340.20

2853.25 Less Adjusted for prev years' Grants 386.521230.13 1160.69

0.00 To Fringe Benefit Tax Provision 30.000.00 To Bad debts Provision 5.00

25.67 To Leave Encashment Provision 26.6622.15 To Provision for Decline in Stocks 0.0047.32 To Prior Period Exp. 86.32

311.23 To Net Profit 323.7466468.90 Total 78886.67


Amul Dairy Ltd.

BALANCE SHEET as at 31st MARCH 2005- 2006(Rs. in Lacks)

31.3.2005 Assets 31.3.2006

Amount Assets Amount Amount24545.14 Gross Value 25225.09

As per schedule.3,col.5

18437.29 Less Depreciation Fund 20256.43As per schedule.3 col.9

6107.85 Net Assets : 4968.66

0.00 Capital Work in Progress 51.09 51.09

Investments 0.180.20 National Saving Certificates 433.40

433.40 Share investment 80.00140.00 Fixed Deposits573.60 513.58

Stock 6408.39 Trading Stock 7989.621253.97 Stores 1681.647662.36 9671.26

Advances & Debtors178.64 Deposits 166.96

0.13 Due From Societies 0.01237.49 Advances & Debtors 552.26

8006.97 Trade Debtors 6764.65222.02 Sundry Debtors 365.6169.18 Income Tax Deposit 74.5

8714.43 7923.99Cash & Bank Balances

286.39 with Bank 396.571932.45 Deposits in Bank 998.29

0.86 on Hand 0.832219.70 1395.69

70.900.00 Deferred Revenue Expenditure 70.90

[to the extent not written off]

25277.94 Total 24595.17


Amul Dairy Ltd.

31.3.2005 Liabilities 31.3. 2006


Amul Dairy Ltd.

Amount Authorized share Capital Amount Amount 2000.00 [20,00,000 shares of Rs. 100] 2000.001395.42 Share Capital 1599.81

2057.23 Reserve Fund & Other Fund 2154.60[as per schedule 1,col.5]

2162.34 Grants 1839.60[as per schedule 2,col.6]

1175.06 Redeemable Debentures 1162.93

Loans:5830.00 UTI Bank Long Term Loan 4290.00500.00 UTI Bank Cash Credit Facility 500.00

1000.00 Short term Loan 500.007330.00 5290.00

2858.10 Fixed deposits 3263.70

Current Liabilities285.46 Deposits 347.39

3444.98 Due to Societies 41610.041049.46 Out Standing Agents Expenses 955.752661.84 Out Standing Agents Purchases 2989.69491.46 Sundry Creditors 438.72

7933.20 8891.59

Provisions0.00 Fringe Benefit tax 30.004.67 Bad Debts 9.672.87 Decline in investinents 2.87

25.67 Leave Encashment 26.6622.15 Decline in stock 0.0055.36

69.2311.23 Net profit during the year 323.74

25277.94 Total 24595.17

♣ CONCLUSION ♣


Amul Dairy Ltd.

Amul is a leading food publisher group of India. Since it is belongs to a big will experienced and established group. It has strength to be market in any part of India. Amul is a food co-operation that is good in the both the matter, financial as well as marketing.

Amul can be market leader by its hard work. The top authority gives all the necessary guidance whatever it needed to its marketing persons. Company’s marketing strategy is well defined so that every one can work in uniform manner, which is pre-decided by the authority.

Company’s techniques to throw its competitor out of the market are so much good.

Company is growing more and more and there will be one day when it will be no.1 in all over the India. Its high innovating techniques and right decision at right time makes the company so much effective and efficient in good consumer relationship and high market share.

♣ SUGGESTION & RECOMMENDATION ♣


Amul Dairy Ltd.

Amul who has successful history. Through it is man hold enterprise it grows rapidly by giving tuff competition to their competitors. Amul has introduced its food product in number of states only still it has opportunity to enter in other state also. Thus Amul should strive hard to become leading food product in India.

Amul staff is very active they should train their staff more and so that they get motivated and strive for the achievement of the organizational goal of the enterprise. They can more and more attracting customer because in the age of high competition any firm will have to maintain good relationship with their customer to have good market.

Amul is doing a lot for social welfare it should keep up it so that image of the organization in the people is become good. They also try to organize different event for social welfare.

Amul should also do more and more advertisement for sales promotion of their products. It has competitor like catbary, hawmore which are a big firm having leadership in chocolate and ice cream industry from so many years. They should try to do all for throwing catbary and hawmore out of the market.

♣ BIBLIOGRAPHY ♣Books:-


Amul Dairy Ltd.

1. Philips Kotler “Marketing Management”, Ninth Edition. Published by – Tata Mc - Graw Hill

2. K. Ashwathappa. “Human Resource Management”, Published by – Tata Mc Graw Hill

Website:-

WWW.AMUL.COM SEARCH ENGINE LIKE: - WWW.GOOGLE.COM

Annual Report:-

2005-2006


http://WWW.GOOGLE.COM/

http://WWW.AMUL.COM/

RONAK R, PATEL

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