SALES AND DISTRIBUTION

MANAGEMENT OF AMUL
 ACKNOWLEDGEMENT

At the beginning, we would like to thank GOD for his shower of blessings.
The desire of completing this project was given by our professor Pranay
Piplani. We are very much thankful to him for the guidance, support, and
time.

We would fail in my duty if we don’t thank each other and our parents who
are pillars of our life. Finally, a warm gratitude to all those who helped us
completing this project.

Annanya Verma
Manish Rathore
Tuhina Chakraverty
 INDEX

1 Dairy Profile in India

2 GCMMF
3 Company Profile of Amul
4 Brief History
5 Amul’s Turnover in 2021-2021
6 Product Portfolio
7 Amul Milk
8 Amul’s secret of success
9 Internal Organization Network of Amul
10 Distribution Network
11 Role of distributer and retailer in downstream
supply chain
12 AIDA model of Amul Milk
13 Recent products introduced by Amul
14 Bibliography
 DAIRY PROFILE IN INDIA
India is the world leader in milk production with total volume of 115 million
tons. Driven by steady population growth and rising income, milk consumption
continues to rise in India. Dairy market is currently growing at an annual
growth rate of around 7 per cent in volume terms. The market size of Indian
dairy industry stands at around US$ 45 billion. Since India population is
predominantly vegetarian; milk serves as an important part of daily diet.
Indians use milk in various preparations such as in brewing tea and coffee, in
making yogurt or curd and in preparing many Indian dishes. For most
households, milk is also a popular beverage due to its nutritional value.

In India, rural households consume almost 50 percent of total milk production.

Of the share of milk sold in the domestic market, almost 50 percent is
consumed in fluid form, 35 percent is consumed as traditional products
(cheese, yoghurt and milk-based sweets), and 15 percent is consumed for the
production of butter, ghee, milk powder and other processed dairy products
(including baby foods, ice cream, whey powder, casein, and milk albumin).
Most dairy products are consumed in the fresh form and only a small quantity
is processed for value addition. In recent years, however, the market for
branded processed food products has expanded. Although only around 2 per
cent food is processed in India, still the highest processing happens in the dairy
sector, where 35 per cent of the total produce is processed, of which only 13
per cent is processed by the organized sector.
 GCMMF
GUJRAT Cooperative Milk Marketing foundation is india largest food product
marketing organization. Its daily milk procurement is approx 23 million ltr per
day from 18600 village milk cooperative socities, 18 member unions covering
33 districts and 3.6 milk producer members.

It is the apex organisation of the dairy coorpratives of gujrat , popularly

knowns as AMUL which aim to provide remunerative returns to the farmers
and also serve the interest of consumers by providing quality products which
are good value for money. It operates through 61 sales office and dealer
network of 10000 dealers and 10 lakh retailers, one of the largest such
networks in India . its product range comprses milk , milk powder , health
beverges , ghee, butter, cheese , pizza, ice cream , paneer, chocolates and
tradinal indian sweets etc.

COMPANY PROFILE OF AMUL

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.

50 years after it was first launched, Amul's sale figures have jumped from 1000
ton a year in 1966 to over 25,000 ton a year in 1997. No other brand comes
even close to it. All because a thumb-sized girl climbed on to the hoardings and
put a magical spell on the masse

AMUL stands for,

A = Anand
M = Milk
U = Union
L = Limited

Amul (Anand milk union ltd.) is based on four hands, which are coordinated
with each other. The actual meaning of this symbol is co-ordination of four
hands of different people by whom this union is at the top position in Asia.

 First hand is of farmers, without whom the organization would not have
existed.
 Second hand is of processors, who process the row material (milk)into
finished goods.
 Third hand is of marketer, without whom the product would have not
reached the customers.
 Fourth hand is of customers, without whom the products would have
not carried on.

Amul, is an Indian dairy cooperative society, based at Anand in the Indian state
of Gujarat. Formed in 1946, it is a cooperative brand managed by a cooperative
body, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF),
which today is jointly owned by 36 lakh (3.6 million) milk producers in Gujarat,
and the apex body of 13 District Milk Unions, spread across 13,000 villages of
Gujarat. Amul spurred India's White Revolution, which made the country the
world's largest producer of milk and milk products.
 BRIEF HISTORY OF AMUL
The mighty Ganges at its origin is but a tiny stream in the Gangotri ranges of
the Himalayas. Similar is the story of Amul which inspired Operation Flood and
heralded the 'White Revolution' in India. It began with two village cooperatives
and 250 liters of milk per day, nothing but a trickle compared to the flood it
has become today. Today Amul collects processes and distributes over a
million liters of milk and milk products per day, during the peak, on behalf of
more than a thousand village cooperatives owned by half a million farmer
members.

The revolution started as awareness among the farmers that grew and
matured into a protest movement and the determination to liberate them.
Over four decades ago, the life of a farmer in Kaira District was very much like
that of his counterpart anywhere else in India. His income was derived almost
entirely from seasonal crops. The income from milch buffaloes was
undependable. The marketing and distribution system for the milk was
controlled by private traders and middlemen. As milk is perishable, farmers
were compelled to sell it for whatever they were offered. Often, they had to
sell cream and ghee at throwaway prices. In this situation, the one who gained
was the private trader. Gradually, the realization dawned on the farmers that
the exploitation by the trader could be checked only if marketed their milk
themselves. In order to do that they needed to form some sort of an
organization. This realization is what led to the establishment of the Kaira
District Cooperative Milk Producers' Union Limited (popularly known as Amul)
which was formally registered on December 14, 1946. The Kaira Union began
pasteurizing milk for the Bombay Milk Scheme in June 1948. An assured
market proved a great incentive to the milk producers of the district. By the
end of 1948, more than 400 farmers joined in more village societies, and the
quantity of milk handled by one Union increased from 250 to 5,000 liters a day.

Some key facts-

 65 per cent of the milk is sold in loose form.

 Only 5 per cent of the milk is sold through retail chains.
  70 per cent is delivered to the homes by milk agents.
 Carton milk or packaged milk has been growing at 24 per cent annually.

AMUL’s TURNOVER IN 2020-2021

The world’s eighth largest dairy group Amul procured 14 per cent more milk
during the pandemic in 2020-21, while its turnover grew by a sluggish pace of 2
per cent, owing to the demand destruction in bulk consuming segments of
restaurants, hotels and catering during the year.

The Amul Group turnover, which includes the businesses conducted by the 18
member dairies under the Gujarat Cooperative Milk Marketing Federation
(GCMMF), crossed ₹53,000 crore for the fiscal 2020-21, a 2-per cent rise over
last year’s ₹52,000 crore.

The unduplicated turnover of GCMMF, the marketer of Amul brand — stood at

₹39,248 crore for 2020-21, nearly 2 per cent up from ₹38,550 crore in the
previous year. Notably, in 2019-20, GCMMF’s turnover had grown by a health
17 per cent over previous year.

In a statement, GCMMF informed that the positive growth in the turnover was
“despite the negative impact of Covid pandemic on demand from restaurants,
hotels and catering segment, as well as adverse impact on dairy commodity
markets.”

The dairy cooperative — now in its 75th year — had begun from two small
villages in Anand district with 250 litres of milk per day in 1946, and now
handles over 29 million litres of milk a day during peak season now.

At the 47th annual general meeting of GCMMF held on July 20, the group
noted that the milk procurement during 2020-21 at all member unions under
GCMMF rose by 14 per cent. The cooperative handled extra 35-40 lakh litres of
milk every day during the pandemic period.
PANDEMIC FALLOUT

Explaining the impact on business, RS Sodhi, Managing Director, GCMMF, said,

“Since the out-of-home consumption in hotels, restaurants, cafes, and catering
segments was significantly impacted during the Covid pandemic, we focused
our attention on enhancing in-home consumption of our products. We
redesigned our marketing campaigns to educate and inform consumers about
using our range of products to try our restaurant-style dishes at home. The
consumer pack business of Amul grew by 8.1 per cent, while bulk dairy
commodities, as well as sales from restaurants and hotels suffered a decline in
2020-21, due to Covid-19. “Impressive growth in sales of our consumers
products in household segment, helped us overcome the impact on demand
from institutional segment,” Sodhi added.

Vice-Chairman, Valamji Humbal, said, “Our ultimate objective is to become the

largest dairy organisation in the entire world, ensuring health, nutrition and
wellness of people across India and then around the globe, thereby ensuring
continuous prosperity and remunerative livelihood for Indian dairy farmers.”
The cooperative now aims to double its group turnover to ₹1-lakh crore by
2025. The AGM decided to mark the year for 75th anniversary celebrations of
Amul cooperative movement as well as birth centenary of Dr Verghese Kurien
father of the ‘White Revolution’ with several events.
 AMUL’s PRODUCT PORTFOLIO

Amul Milk, Bread Spreads, Cheese, Paneer, Dahi, Beverage Range, Ice Cream,
Ghee, Milk Powders, Chocolates, Fresh Cream, Mithai Mate, Happy Treats,
Amul PRO, Bakery Products, Amul Peanut Spread, Amul Puffles, Mithai Range,
Roti Softener, Panchamrit, Amul Sour Cream, Amul Cattle Feed, Amul Recipes

AMUL MILK
1. Full Cream Milk:
It is usually processed for children, bodybuilders or teenagers. One glass of
such milk contains 3.5% of fat, providing 150 calories. It is extremely creamier
and great to taste.

2. Single Toned Milk:

This type of milk helps in lessening body’s absorption of cholesterol. It contains
same nutrition as the whole milk sans the fat-soluble vitamins.
3. Double Toned Milk:
It is perfect for individuals trying to manage their weight. It has just 1.5% of fat.
It is full of Vitamin A and Calcium.

4. Flavoured Milk:
It is made out of milk, sugar, artificial flavours and colourings. Pasteurized
under high temperature, it has longer shelf life than plain milk.

AMUL’S SECRET OF SUCCESS

The system succeeded mainly because it provides an assured market at
remunerative prices for producers' milk besides acting as a channel to market
the production enhancement package. What's more, it does not disturb the
agriculture system of the farmers. It also enables the consumer an access to
high quality milk and milk products. Contrary to the traditional system, when
the profit of the business was cornered by the middlemen, the system ensured
that the profit goes to the participants for their socio-economic upliftment and
common good. Looking back on the path traversed by Amul, the following
features make it a pattern and model for emulation elsewhere. Amul has been
able to:

 Provide a support system to the milk producers without disturbing their

agroeconomic systems
 Even though, growing with time and on scale, it has remained with the
smallest producer members. In that sense, Amul is an example par
excellence, of an intervention for rural change.
 Bring at the command of the rural milk producers the best of the
technology and harness its fruit for betterment
 Produce an appropriate blend of the policy makers farmers board of
management and the professionals: each group appreciating its roles
and limitations
 Plough back the profits, by prudent use of men, material and machines,
in the rural sector for the common good and betterment of the member
producers and The Union looks after policy formulation, processing and
marketing of milk, provision of technical inputs to enhance milk yield of
animals, the artificial insemination service, veterinary care, better feeds
and the like - all through the village societies. The village society also
facilitates the implementation of various production enhancement and
member education programs undertaken by the Union. The staff of the
village societies has been trained to undertake the veterinary first-aid
and the artificial insemination activities on their own.
INTERNAL ORGANISATION STRUCTURE OF AMUL
CHAIRMAN

MANAGING DIRECTOR

GENERAL MANAGER

ASST. GENERAL MANAGER

FINANCE PRODUCTION MARKETING SALES & PURCHASE PERSONNEL

SENIOR MANAGER SENIOR MANAGER SENIOR MANAGER SENIOR MANAGER SENIOR MANAGER

FINANCE MANAGER PRODUCTION MANAGER MARKETING MANAGER SAKES MANAGER PERSONNEL MANAGER

ACCOUNTANT OFFICER MARKETING EXECUTIVE OFFICER P.R.F.

OFFICERS SUPERVISORS F.S.R. SALESMAN EXECUTIVE

A systematic & well-defined organizational structure plays a vital role &

provides
accurate information to the top-level management. An organisation structure
defines a
clear cut line of authorities & responsibilities among the employees of
GCMMF. The Organisation structure of Amul is well arranged structure. At a
glance a person can completely come to know about the organization
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 branches
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 many other things.

DISTRIBUTION NETWORK
Most producers work with marketing intermediaries to bring their products to
market. The marketing intermediaries make up a marketing channel also called
distribution channel. Distribution channels are sets of interdependent
organizations involved in the process of making a product or service available
for use or consumption. The Head Office of GCMMF is located at Anand. The
entire market is divided in 5 zones. The zonal offices are located at
Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai. Moreover, there are
49 Depots located across the country and GCMMF caters to 13 Export markets.
A zero level of channel also called a direct marketing channel consists of a
manufacturer selling directly to the final customers. A one level channel;
contains 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.
DISTRIBUTION CHART-

We can see from above figure that GCMMF distribution channel is simple and
clear. The products change hands for three times before it reaches to the final
consumer. First of all, the products are stored at the Agents end who are mere
facilitators in the network. Then the products are sold to wholesale dealers
who then sell to retailers and then the product finally reaches the consumers.

Amul Parlors

Amul has come out with a unique concept of Amul Parlors. They have classified
those under four types namely:

Center for excellence: These Amul Parlors are specifically at a place, which has
a class of excellence of its own. We can find such parlors at the Infosys, IIMA,
NID Ahmedabad etc.

On the Move: These parlors are at the railway stations and at different state
bus depots across different cities.

Amul Parlors: These parlors can be seen at different gardens across different
cities. These are fully owned by Amul.

Amul Preferred Outlets: These are the private shops that keep the entire of
product range of Amul. They also agree not to keep any competitor brands in
the outlets. They can keep other brands that are in the non-competitor
category. Amul has more than 200 such outlets right now.

There are basically, three types of selling channels-

1- Selling directly to consumers- The umbrella term used for this purpose is
B2C (Business to consumer) refers to the process of selling products and
services directly between a business and consumers who are the end-users of
its products or services. Most companies that sell directly to consumers can be
referred to as B2C companies. And one of them is Amul.

2- Selling through retailers- Sell-through refers to the percentage of a product

that is sold by a retailer after being shipped by its supplier, typically expressed
as a percentage. Net sales essentially refer to the same thing, in absolute
numbers. Sell-through is calculated during a period (usually 1 month).

3- Selling through wholesalers- Wholesalers buy products directly from

manufacturers. Then they sell the products to retailers, which are typically
physical stores, although online retailers also buy products from wholesalers.
The wholesaler plays a vital role in the supply chain by selling and distributing
your products to other businesses. An effective wholesaler has an excellent
sales team and can implement complex shipping strategies to ensure your
products arrive in stores safe, sound and in a timely manner.
 DISTRIBUTION NETWORK OF AMUL

DISTRIBUTION-

 The cooperative body, the Gujarat Cooperative Milk Marketing

Federation Ltd. (GCMMF), which manages the cooperative brand Amul,
coordinates with various unions to get a regular supply of milk and dairy
products.
 The processed milk and dairy products are procured from district dairy
unions and distributed through third party distributors.
 To ensure quality and timely deliveries, GCMMF and the district unions
have several mechanisms in place.
 The unions monitor the supplies of milk and the distribution of finished
products.
DOWNSTREAM FLOW-

 First leg-
o Manufacturing units to company depots using 9 and 18 MT
trucks.
o Frozen food below -18°C
o Dairy wet 0-4°C
 Second leg-
o Depots to wholesalers
o Transport through insulated 3 and 5 MT TATA 407’s
 Third leg-
o Wholesalers to retailers
o Transport through rickshaws

Consumers

Amul plants located in Delhi/NCR

1- Dudhmansagar dairy, Plot-26 d sector-3, IMT Manesar-122050, Distt-

Gurgaon Haryana

2- Dudhmotisagar dairy, Plot no-17 Huda Industrial Area, Dharehera-123106,

Distt- Rewari Haryana

3- Sabarkantha Distt- co-operative milk producers union ltd, Sabar dairy Rohtak
plant, Plot-1,2 and 3 Sector 30- A, HSIIDC IMT Distt- Rohtak Haryana 124001

4- Banaskantha Distt Co-operative milk producers union ltd, Banas Dairy, Plot-
921-922 Sector- 68 IMT Faridabad Haryana 121004
 ROLE OF DISTRIBUTER AND RETAILER IN
DOWNSTREAM SUPLLY CHAIN
 Distributor
1. Order for milk: Generally, the quantity is fix for daily routine but
if they get the demand from the retails than they tell the Amul
executive to increase the quantity of the milk for next day for
example in the festival season the demand of milk increase so
they update the quantity to be delivered.
2. Transportation of milk: milk big truck transport the milk in the
crate to the spot near the distributor so they can collect the milk
in mini truck (Tata Ace) for delivery to the retailers. Our
distributor who situated in shastri N agar delhi-110052 name
Ajay have 5 mini trucks and 10 employees to do that.
3. How to preserve: Generally, the big tanker has refrigerator
technology in it so they chilled the milk to very low in
temperature so distributer can easily have around 2-3 hours for
delivery to the retailers after that the use chilled water or small
ice to spill over the milk pouches. In our distributer is very less
case they can’t deliver on time.
4. Collection: They collect the money on regular basis which start
from the evening from around 3 to 7 they collect money as well
as the empty crates.
 Retailer
1. Order for milk: Generally, the quantity is fix for daily routine but if they
get the demand from the consumer than they tell the distributor over
phone to increase the quantity of the milk for next day for example in
the festival season the demand of milk increase so they update the
quantity to be delivered.
2. Transportation of milk: Distributors deliver the milk crates to the shop
of the retailer and they sell on the shop and also doing home delivery to
some loyal customers at free of cost.
3. How to preserve: After the delivery of milk, they remain the create
outside because the milk is chilled and the demand is high during Moring
from 6 to 7 after that they place the milk in the refrigerators (normal
home refrigerators or some retailers buy big refrigerators also.
4. Collection: They collect the money on regular basis like cash basis and
also on monthly basis for regular customer.
 AIDA MODEL FOR AMUL

The AIDA Model identifies the cognitive stages that a person goes through
when purchasing a product or service. It's a purchasing funnel that buyers go
through at each stage to help them make the final purchase.

An AIDA model entails the following steps:

 Attention: The first step in marketing or advertising is to consider how to

attract the attention of consumers.
 Interest: Once the consumer is aware that the product or service exists,
the business must work on increasing the potential customer’s interest
level. Disney, for example, increases interest in upcoming tours by
announcing the stars who will perform on the tours.
 Desire: After the consumer is interested in the product or service, then
the goal is to make consumers desire it, moving their mindset from “I
like it” to “I want it.” For example, if the Disney stars for the upcoming
tour tell the target audience how fantastic the show will be, the
audience is more likely to want to attend.
 Action: The ultimate goal is to drive the receiver of the marketing
campaign to initiate action and purchase the product or service.

As a result, according to the AIDA model, awareness leads to interest, which

leads to desire, which leads to action.
AMUL-

 Attention-
o A girl who would worm her way into
a housewife’s heart.
 Interest-
o India looked forward to Amul’s
evocative humor.
 Desire-
o “The Taste of India” caters to people
belonging to all walks of life & across
cultures.
o “Amul Milk, Hamesha fresh”
 Action-
o The low cost but assurance of good
quality created repeated purchase.
o To reach out to every Indian
household, conveying the message
that at any point, any time you can
possess Amul milk.
 RECENT PRODUCTS INTRODUCED BY AMUL

Amul small pack

 Packaging: This come in 2 packing simple plastic pouch and other is tetra
packing.
 Price: Rs.10 for normal pouch and Rs.15 for Tetra packaging.
 Quantity: both the package contains same 160 ml now earlier it come at
200 ml.
 Shelf life: for normal pouch it for 2 days only and for tetra pack its shelf
life is around 6 months or 180 days.
 Advertisement: Amul doesn’t advertise this in television or any other
media because it advertised by word of mouth through retailers by
provide milk at cheaper rate 200ml milk for Rs.10 which is cheaper than
the normal pack but the product is same.
 Focus on: these basically focus on the one time use like product for
example if someone have the pouch of 1000ml or 500ml and
requirement of only 100 to 200 ml than he has to store the rest of the
milk properly till the total milk is used.
Basically, this product is for the which have low quantity demand and small
packs with same quality.

BIBLIOGRAPHY
1- https://www.thehindubusinessline.com/companies/amul-turnover-grows-
2-amidst-covid-19-challenges/article35423185.ece

2- https://docshare.tips/amul-distribution_585c9ef8b6d87f8d1c8b6ac9.html

3- https://amul.com/m/organisation

4- http://www.amuldairy.com/index.php/the-organization/an-overview

5- https://www.marketing91.com/marketing-mix-of-
amul/#:~:text=The%20Amul%20family%20tree%20has,Amul%20chocolates%2
C%20Amul%20butter%20milk.