Project Report On Amul Dairy
Project Report On Amul Dairy
1 Introduction
1.1 Company profile
1.2 Company bio-data
1.3 History & development
1.4 Management body
1.5 Awards
1.6 Products
1.7 Certificates
1.8 Information about GCMMF
2 Production department
2.1 Products
2.2 Information regarding products
2.3 Competition
2.4 Production process
2.5 How it operates
2.6 Timely delivery
2.7 Packing process
2.8 Capacity
2.9 Milking process
3 Marketing department
3.1 Introduction
3.2 Structure
3.3 This is amul India
3.4 Competitors
3.5 Marketing channel
3.6 The marketing process
3.7 Amul parlour
3.8 Consumers
4 H.R. department
4.1 Intoeduction
4.2 Recruitment
4.3 Selection
4.4 Induction
4.5 Training & development
4.6 Promotion
4.7 Transfer
4.8 Wages and salary
4.9 Overtime work
4.10 Working of ESI schme
4.11 Providand fund
4.12 Grievance handling procedure
4.13 Collective bargining
4.14 Trade union
5 Finance department
6 Conclusion
7 Bibliography
INTRODUCTION
COMPANY PROFILE:-
We manufacture and market a wide range of dairy products in India and abroad
under the brand names of Amul and Sagar. The product categories are Infant Milk
Food, Skimmed Milk Powder, Full Cream Milk Powder, Dairy Whitener, Table
Butter, Cheddar Cheese, Mozzarella Cheese, Emmental Cheese, Cheese Spreads,
Gouda cheese, Ghee, Sweetened Condensed Milk, Chocolates, Malted Milk Food,
Blended Breadspreads, Fresh milk, UHT (Long life) Milk, Ice-ream and ethnic Indian
sweets. Each of our products is a market leader in India.
GCMMF is the largest exporter of dairy products from India. We export our
products in consumer packs and bulk to USA, Singapore, UAE, Australia, Bahrain,
Qatar, Oman, Kuwait, Bangladesh, Madagascar, Yemen, Sri Lanka etc. On a regular
basis. We have won 9 awards consecutively from APEDA, Govt of India.
COMPANY BIO-DATA
Country/Territory: India
Dr Kurien made innovative use of a World Bank loan, EEC food aid and the
internal resources of NDDB to usher in the White Revolution. It was an experiment
immortalised by noted filmmaker Shyam Benegal in Manthan (the churning) and one,
which Dr Kurien himself put down in black and white as An Unfinished Dream.
During the 1970's, dairy products were piling up as a major surplus in Europe, a
phenomenon in which Dr Kurien saw both a threat and an opportunity. In the event of
these surpluses being dumped in India at rock bottom prices, it would have prematurely
destroyed the fledgling dairy sector of the country.
The large quantities that India was already importing had eroded domestic
markets to the point where dairying was not viable. Kurien ingeniously turned this
double-edged sword to his advantage and incorporated it as a golden opportunity into the
Operation Flood strategy.
Funds generated through sale of these commodities were used in the development
of 18 rural milksheds in 10 states and for setting up dairies in the rural hinterlands and in
Mumbai, Delhi, and Kolkata
And Chennai. This led to a 60-per cent increase in milk production, which raised
from an estimated 20-million mt in 1970 to 32-million metric tones in 1978.
A year-round remunerative market for the milk producers was created and the sale
of milk in the major urban demand centres rose by 140 per cent.
During this phase, Operation Flood linked 18 of India's premier milksheds with
consumers in India's four major metropolitan cities: Delhi, Mumbai, Kolkata and
Chennai.
Impressed by the success of the first phase of the project, the government of India
decided to continue with dairy development through cooperatives but on a greatly
expanded scale. Operation Flood II, which began in 1981, aimed at building a National
Milk Grid linking 136 rural milksheds in 22 Indian states and the centrally-administered
Union territories with the urban demand centres in the country and creating the
infrastructure required to support a viable dairy industry.
The second phase of the programme was implemented with a World Bank credit
of $150 million and commodity assistance from EEC (216,584 mt of SMP, 62, 402 mt of
butter oil and 16577 mt of butter) and Rs280.87 crore which NDDB raised out of its own
resources during 1985 to 1987.
According to a World Bank audit, of the Rs200 crore that it invested in Operation
Flood II, the net return into the rural economy has been a whopping Rs24, 000 crore per
year over a period of 10 years, or a total of Rs240, 000 crore in all. No other major
development program has matched this input-output ratio.
Operation Flood's Phase II (1981-85) increased the milksheds from 18 to 136; 290 urban
markets expanded the outlets for milk. By the end of 1985, a self-sustaining system of
43,000 village cooperatives covering 4.25-million milk producers had become a reality.
Project year to 140,000 tons by 1989, all of the increase coming from dairies set up under
Operation Flood. In this way EEC gifts and World Bank loan helped to promote self-
reliance. Direct marketing of milk by producers' cooperatives increased by several
million liters a day.
The seed capital rose from the sale of WFP / EEC gift products and World Bank
loan had created, by end 1985, a self-sustaining system of 43,000 village cooperatives
covering 4.25-million milk producers.
Operation Flood: phase 3
The third phase of Operation Flood, undertaken from 1987 to 1996 aimed at
consolidating the gains of the earlier phases. The main focus of the programme was on
achieving financial viability of the milk unions/ state federations and adopting the salient
institutional characteristics of the Amul Pattern or Amul Model Cooperatives.
This phase of the programme was funded by a World Bank credit of $365 million,
Rs222.6 crore of food-aid (75,000 mt of milk powder and 25,000 mt of butter / butter oil)
by the EEC and Rs207.6 crore by NDDB's own resources. At the end of May 1995, Rs1,
578 crore had been invested under the three phases of Operation.
MANAGEMENT BODY
CHAIRMAN
VICE-CHAIRMAN
DIRECTORS
MANAGING DIRECTOR
BANKERS
AUDITORS
Anand.
AWARDS
The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the top scorer
in the service category of the prestigious IMC Ramkrishna Bajaj National Quality Award
- 2003. The Certificate of Merit was presented at a glittering ceremony held at Mumbai
on March 11 by the Governor of the Reserve Bank of India, Dr. Y. V. Reddy.
According to Shri B. M. Vyas, Managing Director, GCMMF, this recognition has once
again reiterated GCMMF's commitment to quality and excellence. The biggest strength
of GCMMF is the trust it has created in the minds of consumers regarding the quality of
its products. GCMMF and its brand Amul stand for guaranteed purity for whatever
products it produces, he added.
GCMMF has bagged this award for adopting noteworthy quality management practices
for logistics and procurement. Over the years, it has established an efficient supply chain
that penetrates even the remotest corners of the country. The information systems of the
Federation are comprehensive and include details on product quality, delivery
performance, supplier quality, disaster recovery and all essential commercial areas, the
citation reads.
The Ramakrishna Bajaj National Quality Award is based on framework and principles
almost similar to the Malcolm Baldrige Award that is given by the President of the
United States to businesses - manufacturing and service, small and large - and to
education and healthcare organizations that apply and are judged to be outstanding in
seven areas: leadership, strategic planning, customer and market focus, information and
analysis, human resource focus, process management, and business results.
Qimpro Platinum Standard, the highest individual honour, has in recent years
been awarded to Chandra Mohan, Aditya Birla, Deepak Parekh, F C Kohli, Dr J Irani,
Azim Premji, and Kumar Mangalam BirlaA. Qimpro Awards are recognized by the ASQ
and the Institute of Quality Assurance, UK.
PRODUCT
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.
(Turnover: Rs. 37.74 billion in 2005-06). 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'
organisation. And of a proven model for dairy development
CERTIFICATES
The mighty Ganges when it sets out on its long and winding journey is but a tiny
stream in the Gangotri ranges of the Himalayas. So too is the story of AMUL which
inspired the 'Operation Flood' and heralded the White Revolution in this land. It began
with two village co-operatives and 250 litres of milk per day -- anything but a trickle
compared to the flood it has become today. Today AMUL collects processes and
distributes over 9 lakh litres of milk per day during the peak on behalf of 962 village co-
operatives owned by 5.42 lakh farmer members. Further, as Ganga-ma carries the
aspirations of generations for moksha, so too AMUL has become the sign and symbol of
the aspirations of millions of farmers, and the pattern of liberation and self-reliance for
every farmer.
What makes this saga so remarkable? What is so unique about it that it is made a
pattern and model for similar endeavors by farmers elsewhere? An awareness among the
farmers that grew and matured into a protest movement and the determination to liberate
themselves: this is the origin of AMUL.
Over four decades ago, the life of a farmer in Kheda 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 milk
marketing system was controlled by private traders and middlemen. As milk is
perishable, farmers were compelled to sell milk 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 they marketed their milk
through their own organization. This realization is what led to the establishment of the
Kheda District Co-operative Milk Producers' Union Limited (popularly known as
AMUL) which was formally registered on December 14, 1946.
The Kheda 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 the Union increased from 250 to 5000 litres a day. In the early years,
AMUL had to face a number of problems. The response to these provided stimulus for
further growth. For example, as the movement spread in the district, it was found that the
Bombay Milk Scheme could not absorb the extra milk collected by the Kheda Union in
winter, when the production on an average was 2.5 times more than in the summer. Thus,
even by 1953, the farmer-members had no assured market for the extra milk produced in
winter. They were again forced to sell a large surplus at low rates to the middlemen.
The remedy was to set up a plant to process milk into products like butter and
milk powder. A Rs. 5 million plant to manufacture milk powder and butter was
completed in 1955. In 1958, the factory was expanded to manufacture sweetened
condensed milk. Two years later, a new wing was added for the manufacture of 2500 tons
of roller-dried baby food and 600 tons of cheese per year, the former based on a formula
developed with the assistance of Central Food Technological Research Institute (CFTRI),
Mysore.
It was the first time anywhere in the world that cheese or baby food was made
from buffalo milk on a large, commercial scale. Another milestone was the completion of
a project to manufacture balanced cattle feed. The plant was donated by OXFAM under
the Freedom From Hunger Campaign of the FAO. To meet the requirement of milk
powder for the Defense, the Kheda Union was asked by the Government of India in 1963
to set-up additional milk drying capacity.
A new dairy capable of producing 40 tons of milk powder and 20 tons of butter a
day was speedily completed. It was declared open in 1965. The Mogar Complex where
high protein weaning food, chocolate and malted food are being made was another
initiative by AMUL to ensure that while it fulfilled the social responsibility to meet the
demand for liquid milk, its members were not deprived of the benefits to be had from the
sale of high value-added products. The Mogar complex also started manufacturing
Amullite a substitute for butter in 1994. Amul has also set up a new Dairy Plant to handle
6.5 lakh liters per day with facilities to produce 60 tonnes of powder and 70 tonnes of
butter in a highly automated plant. It has recently set up a 20 MT Cheese plant at Khatraj
near Memdabad.
Impressive though its growth, the unique feature of the AMUL sagas did not lie in
the extensive use of modern technology, nor the range of its products, nor even the rapid
inroads it made into the market for dairy products. The essence of the AMUL story lies in
the breakthrough it achieved in modernising the subsistence economy of a sector by
organising the rural producers in the area.
Since its inception, the Kheda Union also believed that the responsibility to collect the
marketable surplus of milk should be coupled with the provision of making the
production enhancement inputs reach the members. The Kheda Union has thus a full-
fledged machinery to provide animal health care and breeding facilities. As early as late
fifties, the Union started making high quality buffalo semen and the artificial
insemination service available to the rural animal population through the village society
workers. The Union started its mobile veterinary services to render animal health care at
the door steps of the farmers. Probably for the first time in the country, the veterinary first
aid service was made available in the villages through trained village-society workers.
The Union's 16 mobile veterinary dispensaries have fully qualified staff. All the villages
are visited bi-monthly on a pre-determined day, to provide animal health care. A 24-hour
Emergency Service is also available at a fee (Rs.35 for members and Rs.100 for non-
members). All the mobile veterinary vans are equipped with Radio Telephones.
The Union runs a semen production centre where it maintains high pedigreed Surti
buffalo bulls, Holstein Fresian bulls, Jersey bulls and 50 per cent cross-bred bulls to cater
to the need of semen for artificial breeding of buffaloes and cows belonging to the farmer
members of the district. Artificial insemination service has become very popular and
effective because it regulates the frequency of calving in cows and buffaloes and thus
reduces their dry period. A balanced feed concentrate is manufactured in the Union's
Cattle Feed Plant and sold to the members through the societies at cost price.
A system, which involves participation of people on such a large magnitude, does not
confine itself to an isolated sector. The ripples of its turbulence affect other areas of the
society as well. So is true with this co-operative. It has not confined itself to milk alone.
The co-operatives in the villages of Kheda are contributing to various desirable social
changes such as:
The yearly elections to the management committee and its chairman by the
members are making the participants aware of their rights and the process to elect
right men for right jobs.
Perpetuating the voluntary mix of the various ethnic and social groups twice-a-
day for common cause and mutual betterment has resulted in eroding many social
disequilibria: high-low, rich-poor, and the elites-marginalized all seem to co-
operate for a common cause.
Live exposure to various modern technologies and their application in day-to-day
life has not only made them aware of these developments but also made it easier
for them to adopt them for their betterment. One might wonder whether the
population that knows almost everything about impregnating a cow or buffalo,
through their knowledge of artificial insemination, is also equally aware of the
similar process in the humans and work towards planning it.
More than 900 village co-operatives have created jobs for nearly 5000 people in
their own villages -- without disturbing the socio-agro system -- and thereby the
exodus from the rural areas has been arrested to a greater extent.
The income from milk has contributed to their household economy. Besides,
women, who are the major participants, now have a say in the home economy.
Independent studies by various individuals and institutions have shown that as high as
48 per cent of the income of the rural household in Kheda District is being derived from
dairying. Since dairying is a subsidiary occupation for the majority of the rural
population, such incomes are helping these people not only to liberate themselves from
the strangleholds of poverty but also to elevate their social status.
Amul’s success led to the creation of similar structures of milk producers in other
districts of Gujarat. They drew on Amul's experience in project planning and execution.
Thus the 'Anand Pattern' was not created in Kheda district but in Mehsana, Sabarkantha,
Banaskatha, Baroda and Surat districts, where even before the Dairy Board of India was
born, farmers and their leaders carried out empirical tests of the hypotheses that explained
AMUL's success. In these districts, milk producers and their leaders experienced
significant commonalties and found easy and effort-less ways to replicate AMUL's
success in their respective areas. This led to the creation of the National Dairy
Development Board with the clear mandate of replicating the 'Anand pattern' in other
parts of the country, initially in the dairy sector but at a later stage in oilseeds, fruit and
vegetables, salt, and tree sectors.
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:
Dr. V. Kurien, the then Chairman, National Dairy Development Board (NDDB),
Anand and the erstwhile Indian Dairy Corporation (IDC) conceived the idea of
establishing an institute for training rural managers in the context of Operation
Flood. Dr. Kurien was convinced, on the basis of his experience as the Chief
Executive Officer of the Kaira District Co-operative Milk Producers’ Union Ltd.,
popularly known as AMUL, that professional management of co-operatives being
established all over the country under Operation Flood was essential to their
success. He also realized fairly early on that management graduates trained at
Indian Institutes of Management and other schools would not fit the bill. He was a
Member of the Board of Governors of the Indian Institute of Management,
Ahmedabad (IIMA) and had approached Prof. Ravi J Matthai, the then Director,
IIMA, and its Board to see whether IIMA would consider training rural managers
for Operation Flood Projects. He was told that IIMA graduates would not fit the
bill. This was when he resolved to establish a new institution for this rather
unique task. The rest is history.
Operation Flood II had provided Rs 50 lakhsa for manpower development. IDC was
the funding body and NDDB the implementing agency. NDDB established a Centre for
Management and Consultancy in Rural Development in 1979. This Centre was the
precursor of the Institute of Rural Management, Anand (IRMA). Dr. Kamla Chowdhry,
formerly a professor at IIMA and an adviser to the Ford Foundation, New Delhi in 1979,
suggested to Dr. Kurien in a brief document that this Centre should become a full-
fledged, independent, national institute for it to do justice to the task at hand. NDDB
accepted this proposal in principle and mounted a search for personnel to start and run the
proposed institute.
Dr. Shreekant Sambrani, at that time the Chief of Research Bureau of the Economic
Times, Mumbai, and formerly professor at IIMA, was the first person to be invited to join
the proposed institute as a Senior Professor. A Management Committee under the
chairmanship of Dr. Kamla Chowdhry, with Mr G M Jhalaa, Managing Director of IDC,
and Shri VC Sood of NDDB as members and Dr. Sambrani as the Member-Secretary (the
operating head of the Institute) were constituted. The Committee, through the Chairman
and the Member-Secretary, was responsible for completing the substantive tasks as well
as formalities leading to the establishment of the Institute. This was in July 1979. The
target date to select the first batch of students was July 1980. The funds provided for
manpower development under Operation Flood II became the seed money for the
Institute. The core IRMA personnel occupied a few small offices in the administrative
block of NDDB. The first tasks were Identification of a suitable location for the Institute,
recruitment of faculty, programme design, student intake, and numerous formalities
connected with establishing a new institute.
As the staff strength increased, larger office space became necessary. The Diagnostic
Laboratory Complex of NDDB had just been completed across the road from its main
campus. NDDB graciously delayed its plans for its use and offered it to the Institute
instead. This remained the Institute’s home until its own campus was ready.
The Institute of Rural Management, Anand Society was registered under the
Societies Registration Act, 1860, and the Bombay Public Trusts Act, 1950, on December
14, 1979. This became the Institute’s formal Foundation Day, although it had begun
functioning some five months earlier. The faculty, mostly new to the teaching
profession, plunged into the task of preparing curricula, teaching materials and mastering
pedagogical methods with rare energy and gusto. New case studies based on co-
operatives were prepared with a great deal of encouragement from the organizations
themselves. The admissions process, comprising a competitive examination and personal
interviews, was modeled after similar procedures used by IIMS, although the faculty tried
to consciously inject a pronounced “rural bias” in the test materials and interview
questions.
The admissions announcement evoked a good response from more than 2,000
applicants. The admission process was completed by April 1980. The first batch of 54
(later reduced to 48 due to various reasons) entered the Institute on June 30, 1980, right
on schedule. It was in the fitness of things that the late Mr. Tribhuvandas Patel, the
Founder-Chairman of Amul, welcomed the first batch of students to the Institute. The
students were housed in the Farmers’ Hostel of NDDB.
The Institute had identified a 24-ha. Plot of land adjoining the main NDDB
campus, which was then a part of the tobacco research farm of the Gujarat Agriculture
University as the most suitable one for its own campus, after considering several
alternative sites, including one next to the Hindustan Packaging plant at Itola. The
Government of Gujarat agreed to donate it to the Institute. The Institute took possession
of it in early 1981, with the entire population of students and staff planting trees on it. Mr.
Achyut Kanvinde took up the task of designing a unique campus.
In the meanwhile, Dr. Kurien had met officials of the Swiss Development
Cooperation (SDC) during a scheduled visit to Berne, Switzerland. The SDC officials
took an interest in the proposed Institute and agreed, in principle, to provide financial
support to it. A proposal seeking a grant of 15.4 million Swiss francs was submitted to
the Government of India. The late Mr. N Rajgopal, the then Joint Secretary, Department
of Agriculture and Cooperation, Ministry of Agriculture, ensured that the government
approved the proposal just days before the then Prime Minister, Mrs. Indira Gandhi
delivered the first IRMA Convocation Address in February 1982.
With the generous Swiss grant, the IRMA campus construction work progressed
rapidly, with the Engineering Division of NDDB supervising it. The work was over in a
short time of just two years. The entire IRMA community moved into the new campus in
June 1983.
Despite the fact that IRMA was established to train managers for the co-operative
sector, it was not called the Institute of Co-operative Management. Implicit in this was
the recognition that the new institution must concern itself with all rural activities, and
not just those of formally registered co-operatives. This foresight was amply rewarded
when, even in its early years, a variety of rural organizations – co-operatives, NGOs,
government and business entities – began to make demands on IRMA. The IRMA Board,
always protective of its autonomy even as it acknowledged NDDB’s patronage, warmly
welcomed all of them, except private companies, into IRMA’s fold. While private
business could seek the services of over 400 business schools in India, there was but one
Institute, IRMA, to serve co-operatives, NGOs and people’s organizations. Therefore, it
was important that IRMA directed its energies to this grossly under-managed sector. The
Institute remained focused on strengthening management of people-centered
organizations – those controlled by users of their services – rather than in capital-centered
ones – those controlled by capital suppliers. This is how IRMA’s identity began to
emerge. The core IRMA operating philosophy continues to be the promotion of a
partnership between rural producers and committed professional managers as the basis
for sustainable development and social justice in rural India.
PRPRODUCTION DEPARTMENT:-
A new injects able unit, ointment department and hormone department
and natural product unit.
The production department undertakes the work of processing the raw materials
and converting them into different products. The production forecast is done based on the
sales forecast and that is depended on current market situation, the demand etc.
PRODUCTS:-
Amul Products are being exported to the Gulf since last three decades. Undoubtedly,
Amul is the preferred taste for Indians in the Gulf!
As far as this point is concerned dairy industry was kept reserve for corporative
sector only. So there is no competition and competitors, but after the policy liberalization
the doors of private dairies were open and in competition the following dairies came.
COMPETITORS PRODUCTS
1 Powders Nestle
2 Milk Gayatri
Uttam
Royal
Payal
Sardar
3 Chocolate Nestle
Nutrine
Cadburys
4 Ice cream Vadilal
Gocool
Halmor
5 Cheese Britannia
6 Ghee
We manufacture and market a wide range of dairy products in India and abroad
under the brand names of Amul and Sagar. The product categories are Infant Milk Food,
Skimmed Milk Powder, Full Cream Milk Powder, Dairy Whitener, Table Butter,
Cheddar Cheese, Mozzarella Cheese, Emmental Cheese, Cheese Spreads, Gouda cheese,
Ghee, Sweetened Condensed Milk, Chocolates, Malted Milk Food, Blended
Breadspreads, Fresh milk, UHT (Long life) Milk, Ice-ream and ethnic Indian sweets.
Each of our products is a market leader in India.
GCMMF is the largest exporter of dairy products from India. We export our
products in consumer packs and bulk to USA, Singapore, UAE, Australia, Bahrain,
Qatar, Oman, Kuwait, Bangladesh, Madagascar, Yemen, Sri Lanka etc. On a regular
basis. We have won 9 awards consecutively from APEDA, Govt of
• Each year some 615 billion kg milk is produced world wide, almost 15%
of which is produced in India.
• with production running at 92 billion kg per annum India is the world’s
largest milk producer.
But India is a dairy giant walking barefoot. That is evident from this report on
India’s dairy farming and dairy industries. In this enormous country with more than one
billion inhabitants, milk is produced from north to south, but primarily in the country’s
west. Much of the production is transported to the major population centres in the
country’s interior and east.
Rising production
Pankaj Karna, Corporate Finance director of Rabo India Finance, paints a picture
of the Indian dairy sector in short, sharp lines.
Karna describes India’s unique system of milk production and milk collection;
there’s nothing like it anywhere else in the world. No fewer than 70 million households
are involved in the production of milk. These are mainly small and even marginal cattle
farmers, but also labourers without land, who have at most two dairy cows or buffaloes,
tethered near their homes.
Of these 70 million households, 11 million can be characterised as cattle farmers.
These are dairy cattle farmers with an average of two cows or buffaloes producing
between 10 and 12 litres of milk per day. They are organised into no fewer than 110,000
village dairy co-operatives or Dairy Co-operative Societies (DCSs). These co-operatives
set up across India following the Anand Model (read more about the Anand model
here>>), collect the milk from their dairy farmers and cool it at 4-6 degrees Celsius.
Some of this unpasteurised milk they sell to the village residents. The rest is collected by
the travelling Milk Collectors, who take the milk to the co-operative Milk Unions for
processing. This industry is organised on a state by state basis. This approach connects
the predominately small dairy farmers via their co-operative system directly with the
many hundreds of big cities in India. India also has various rivately owned dairy
companies. They procure their milk from both milk collection centres in the villages and,
in the north-west in particular, from milk traders. These traders are responsible for the
quality of the milk they supply. The state of Maharashtra is a case apart because milk
production there is subsidised by the government and the government is responsible for
the milk collection. The state pays the dairy farmers a higher price than is paid by the
state’s processing industry.
65% unpasteurised
Finally, he admits that the consumption of milk and dairy products in India is
outstripping domestic production. Consumer demand for dairy products like drinking
milk, condensed milk, baby food, ghee, butter and ice cream, is estimated to be worth
EUR 13.54 billion. This demand grew by an average of 7.6% per year between 1996 and
2002. Despite this growth, the average availability of milk per capita of the population in
India is no more than 229 gram per day. And that is clearly below the world average for
per capita consumption, says Pankay Karna, which stands at 285 gram per day.
Moreover, the quality of Indian milk is not particularly high. ‘We can establish the
content of the milk’s fat and other standard constituents. But we have no infrastructure of
laboratories to study any other aspects of t
Store:-
The store keeper estimate as to what has to be ordered based on the production
forecast, existing stock level and the normal consumption pattern which can be worked
out from the stock card.
The goods is used according to the FIFO system (First in first out) .The raw
material is checked, weighed and or counted after it is unloaded. The expiry date of the
raw materials is also checked by the store keeper while unloading.
Quality Control:-
The quality control is a crucial area for this organization especially since it is a food
industry and the product’s expiry period is also limited.
The first quality inspection is carried out in the laboratory when the raw materials
are brought-in.
The second stage quality check is undertaken when the goods are in process.
Including the taste, color, amount of raw material used, temperature, weighing
etc.
The third stage is after the packing is completed where the method of packing is
checked against the set standard.
This system is applied for each and every products line of the Mother Dairy.
Machinery:-
Most of the machineries are imported mainly from Italy & Japan.
The daily production planning is done based on the rated capacity of machines/lines
with the required men so as to achieve the maximum efficiency in production.
We had carried out a thorough study on the powder processing line and learned that
only 100 employees were required per line.
Packing:-
The primary packing is done in pouches, tins, etc. While secondary packaging is
done in cartons and bags etc.
After the goods are packed they are sore in dry place at cool temperature.
T
imely Delivery:-
The department checks that they get the required materials at the
correct time in order to keep a smooth production process/flow.
Milk Producers
Packing is aimed at impressing the buyers through colorful attractive and eye
caching of the product. The importance of packing has increased considerable in the area
of marketing recent years. Packing means all the activities involved in designing and
predicting the container or wrapper for a product.
There are separate department for packing of the entire product. For example
shrikhand is packed in 10 G.M. & 500 G.M. polypropylene cups, under the brad name
“Amul”
Product Specification:
Capacity of Amul Dairy for the production of milk and milk products as under.
1. Milk handling: 10 lacks litter per day
a. Liquid milk packing: 04 lacks litter per day
b. Powder MED capacity: 60 thousand liters per day
c. Ghee MED capacity: 60 thousand liters per day
d. Ice-Cream Med Capacity: 10kilos litters per day
2. UHT (ultra hit treated) packing: 25 kilos litters per day
a. Ice-cream: Cups, Party pack, Bulk pouch
MILKING PROCESS
Step: 1 the person in all districts deposits the milk at the village center by
electronic measurement
Step: 2 from there it is taken to the chilling center. There are in all five chilling
center.
Step: 3 the collected milk is tested against the set standards. The quality of milk
done here payment is done on the basis of quality and fat content.
Step: 4 the received milk is sold locally as well as transported to the dairy for
further processing.
Step: 5 the milk tested in the lag. No compromise is done with the quality of milk
being received.
Step: 6 the quality milk is received at the raw milk receiving Dock at dairy.
Step: 7 after unloading the next step is to undertake the can cleaning process
before it is returned as cleanliness is necessary for better quality.
Step: 8 from here the milk is pasteurized, clarified and standardized using latest
technological machines is and equipments.
Step: 9 after the process is over the milk is again tested once it is cleared than it is
packed. The packing system is automatic and packs 18 pouches per minute.
Step: 10 the next step pouch filing for the need users is done.
Step: 11 after the milk is packed the milk are stored in a well-maintained cold
storage.
Step: 12 from here the milk are dispatched for the sales in the market.
Company is producing and marketing its products for various medical specialties like
Gynecologists, Physicians, Orthopadicians and other. The product profit of the company
includes Antibiotics, multivitamins, Anti-allergic, Antheleminitic and Natural products
MARKETING DEPARTMENT
INTRODUCTION
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.
Most producer do not sale their good directly to the final users. But they sale their
product by keeping marketing intermediaries performs various type of functions and
bearing various names. It means most producer work with marketing intermediaries to
bring their producers to market. The marketing intermediaries made up a marketing
channel.
Marketing channels are sets of inter dependent organization involved in the process
of making a product of service available for use or consumption.
As Amul Dairy in milk selling is not able to distribute and sale the milk on its own, it
is taking the help of intermediary, which known in bringing the product and its tital closer
to the final buyers constitute a channel level. Amul Dairy distributes channels graphical
representation is as follows.
Amul Dairy
GCMMF
Area Depot
Distributors
Retailers
Consumers
MARKETING PROCESS
Before establishment of G.C.M.M.F dairy marked the product directly, this lead
too 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..
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.
CHAIRMAN
MARKETING MANAGER
SALES SUPERVISOR
COMPETITORS OF AMUL
PRODUCT OF AMUL DAIRY
DAIRY
Powder Nestle
Chocolate Nestle, Nutrient, Cadburys
Ice cream Vadilal, Go cool, Havemore
Cheese Britannia
They haven’t competitors because
Ghee Ghee is traditional products.
Supplier Enduser
Amul dairy uses the help of media in marketing its products. It gives
advertisement in the newspapers & in the television which to increase
demand of its products.
The process of marketing.:-
1. Analyzing market opportunities
2. Selecting target markets
3. Developing the marketing mix
4. Managing the marketing effort
AMUL PARLOUR
now in days Amul is selling its own products in the Amul parlor
operated indirectly by Amul dairy
HUMAN RESOURCE DEPARTMENT
INTRODUCTION
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, tranning, 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.
RECRUITMENT
It forms the first stage in the process, which continuous with selection causes
with the placement of the candidates recruitment is the discovering of potential
applications.
1. Direct
2. 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.
Direct application
Collection of application
Scritinisation of application
Interview
Medical Check up
Selection
2.Collection of application :
After collection of application. They are studies in detail & not suitable
application are rejected & other kept for further process.
4.Interview :
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 join in a work. In
Amul probation period is different for different types of person.
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 diffeent categories
of persons.
Payroll Systems
Pay scale Post Grade
7000 to 15000 M.D Manager
5000 to 11000 G.M Manager
3900 to 8300 A.G.M Manager
3500 to 7800 Manager Manager
2300 to 6200 Deputy Manager Manager
GRADE MANPOWER
Manager 54
Officier 209
Supervisor & clerical 8
Workers 1083
1764
LABOUR WELFARE
Manpower is the lift hood of an organization.It is Property coduct then only the
organization can work Efficiently & properly.
1.Canteen Facilities :
Amul has its own Canteeen for its workwrs as welll as staff members . All the
workers of the organization get tea ,coffee, breakfast at minimum rate Tea & coffee 40
Paise 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 has 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.Bonuos:
Amul given bonos before Diwali to their workers & office staff also.
5.Loan Facilities :
6.Safety:
Amul also provide hand ,googol ,and shoes for workers safety
1.Divisional.
2.Manager proposal.
3.performance Appraisal
PERFORMANCE APPRAISAL
Internal movement of present employee fills many vacancies. There movements are
transfer and promotion. The former terms refer, changes in which the pay, status & job
conditions of the new positions are approximately the same as of the old. In the case of
promotion, the new positions have higher pay, status & job conditions as compared with
the old.
Promotion
Promotion means increased in authority, responsibility, status, salary etc. It means to do
liftman of an employee with in the organization and push in direction of top level.
The primary purpose of a promotion is to increase the effectiveness services and profit
objective, when employees are placed in position in which whey can be most productive,
change for successful result of the organization for which they work are consolingly
increased. It should be the aim, therefore, of any company to change position of
employee as soon as their capacities increase and opportunities warrant.
In Mother Dairy promotion policy is to take both on merit and or seniority basic they
have eloped merit aim seniority base, generally after every seven years promotion is
given to graduate and diploma holder and who pass I.T.I. and for non-graduated and non
I.T.I. and who passed only S.S.C. then person get promotion after nine years,
“Top executives tend to choose those who are carbon copies of them selves.”
TRANSFER
For office the mutual transfer is there and also requirement of person met with
transfer but for workers, labour transfer is very rate in this unit. Dairy allows only shift
Hansford to workers from one shift to another shift.
For the transfer there so no fixed policy. Transfer are made as and when need
arise or when demanded employees.
Amul Dairy normally refers to the weekly or monthly rate paid to decrial
administrative and professional employees.
For unskilled workers Rs. 45 per day, for skilled workers Rs. 3287 per month.
Scale 155-359 for Sr. Mgr. Rs. 8532 scale 4100-8050 for assi. General manager scale
3000-5625.
Overtime work
Those wants to work 5 to 6 hours more and above their they get double are
overtime of their salary.
The following is the salary grade and many other allowances, which are given to the
officers and workers for Amul Dairy.
Employees state insurance act make provision for cash be benefits for employees
in the event of sickness and disability on account of industrial accident. It also provider
for such benefits to dependents of industrial accident.
This is certainly a great step in the history of the industrial worker, as he assured
of something to depend upon at times of sickness or disability.
But old age and unemployment insurance as in other developed countries is still a
dream.
It is the responsibility of the state to enact provision for the working classes. It is
also the give a lead in the matter on a voluntary basis.
In “Amul Dairy” has followed the EST Schemes, all the factories with 20 or more
employees, that employee whose monthly basic does not exceeds 6500 for employee
5055%, 7.25% is deposited on bank.
The employee provident fund act came into force on 1 st Nov. 1952. At present it
applies the companies which has 20 of more employees. The aim of provident fund
scheme is facilitate the social security. It means for the retires life of the persons.
The employees provident fund act. Which is one of the government social
security measures, make it obligatory on the part of certain employers for his dependents
in case of his early death.
The “Amul Dairy” provide 12% provident fund as per act our of his 12% pension
8.33% is transferred into reserve provident fund. Weather amount by this way is
collected. This is benefit for the workers.
For the settlement of grievance there is a welfare officer in deity for this they believe in
management by working and any problem or grievance is solved by way of justice.
The aggrieved workman in the first instance may obtain the grievance from personnel
department and submit his grievance in person in the proscribed for to his immediate
superior who would. If the finds part of the grievance justified and part of the grievance
unjustified will still register his comments.
COLLECTIVE BARGAINING
In the Amul Dairy if the problem arises, it can be solved by way of meeting and
the decisions made are traded as agreements.
The management may at any time, in the even of, fire catastrophe, break down of
the machinery, civil commotion, epidemic, shortage of raw materials/quell/power etc. or
accumulation of stocks or adviser trade condition, periodical repairs, slow down or other
causes beyond the control of the management stop any machines stop any section or
department or the establishment wholly or partially as may be considered necessary or
lay off any number or workman.
In the event of such stoppage during working hours, the workman effected shall
be notified by notices put upon the notice board fixed near the time keeping office and at
administration building as soon as practicable and the work will be resumed and whether
they are should leave the factory and when they should leave the factory. The workman
shall not go on strike without given 15 days notice.
TRADE UNION
The above statement is the basic principle, which facilitate the growth and
development of trade unions act 1926 confess on the workers and employers or the
purpose of regulating the relations between workman, for between employees and
employers, or for imposing restrictive conditions of the conducts of any trade, or
business. And it includes any federation of two or more trade unions
The primary object of a trade union the popular sense is to protect and advance the
interest of the workers who are its member. Thus trade union is the combination of
workers to solve their problems & to maintain cordial relation.
Packing Process
Packing is aimed at impressing the buyers through colorful attractive and eye
caching of the product. The importance of packing has increased considerable in the area
of marketing recent years. Packing means all the activities involved in designing and
predicting the container or wrapper for a product.There are separate department for
packing of the entire product. For example shrikhand is packed in 10 g.m. & 500 g.m.
polypropylene cups, under the brad name “Amul”
Product Specification
553.60 513.58
STOCK
7662.36 9671.26
8714.43 7923.99
2219.70 1395.69
2000.00 2000.00
2057.23 2154.60
Grants.
2162.34 1839.60
Redeemable dab…
1175.06 1162.93
Loans:
7330.00 5290.00
Current liabilities:
7933.20 8891.59
Provisions:
Assets Gross Gross Gross Gross Depre. Depre. Depre Depre. Net Net
block block block block . block block
As on Additio Sales or As on Fund As Addi. Redu. Fund As
ns on on on
1-4-05 Transfer 31-3-06 1-4-05 Sale. 31-3-06 31-3-06 31-3-05
1 2 3 4 5 6 7 8 9 10 11
Land 200.20 0.00 0.00 200.20 0.00 0.00 0.00 0.00 200.20 200.20
Building 3096.75 64.84 0.67 3160.92 1312.55 103.72 0.67 1415.60 1745.32 1784.20
Plant 19409.23 529.11 67.78 19870.56 15923.49 1685.19 56.24 17552.44 2318.12 3485.74
Railway 3.38 0.00 0.00 3.38 3.38 0.00 0.00 3.38 0.00 0.00
Vehicles 145.72 25.95 0.00 171.22 107.87 9.36 0.00 117.23 53.99 37.40
Dead 884.22 98.78 86.51 896.49 413.73 45.66 7.29 452.10 444.39 470.49
stock
Com… 613.32 17.96 0.00 631.28 551.72 23.87 0.00 575.59 55.69 61.66
Cans 188.04 101.45 4.34 285.15 123.35 19.55 4.07 138.83 446.32 64.69
Library 1.85 0.00 0.00 1.85 1.20 0.06 0.00 1.26 0.59 0.65
Live 2.88 1.16 0.00 4.04 0.00 0.00 0.00 0.00 4.04 2.88
stock
TOTAL 24545.14 839.25 159.30 25225.09 18437.29 1887.41 68.27 20256.43 4968.66 6107.85
CONCLUSION
Overall present position of the organization is too sound & the future seems
BOOKS:-
The author, Ruth Heredia's connection with Amul dates back to the
inauguration of the Amul Dairy when, aged four, she presented a bouquet to
the guest of honour, Pandit Jawaharlal Nehru. She and her family have
sampled the taste of Amul Condensed Milk and Amul Cheese through their
various progressive stages.