SUMMER INTERNSHIP PROGRAM

A
PROJECT REPORT
ON
DEMAND ESTIMATION OF AMUL MILK , BUTTER,
CHEESE, GHEE, CHOCOLATE, ETC IN MODINAGAR
MARKET
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION (B.B.A.)
SUBMITTED TO:
Mr. Mohit Garg
(Project Guide)
SUBMITTED BY:

Garima Tyagi
ROLL NO -9052576
BBA-VI SEM

INSTITUTE OF MANAGEMENT & RESEARCH

GHAZIABAD

Hard Work: The power that pulls everything successfully

No task is a single mans effort. Cooperation and coordination of various

people at various places go into the successful implementation. It is a great
pleasure to have the opportunity to extend my heartfelt thanks to everybody
who helped me through the successful completion of this project It would be
prudent to commence this report with a sincere tribute to all those who played
an indispensable role in the accomplishment

of this work and obliged

whenever and wherever their able guidance was required.

ACKNOWLEDGEMENT

I would like to express my gratitude and deep regards to my esteemed

and revered company guide Mr. ANANT NAG for the help rendered by
him, for providing me the right way to approach the business problem,
and for constantly guiding me with his most valuable suggestions in spite
of having a busy schedule. My project would not have been possible
without his expert guidance. I would also like to thank, Mr. VISHAL
CHOPRA and all my colleagues of. Amul India (Gujarat Co-operative
Milk Marketing Federation Ltd) Who helped me during the training
process and made this project a learning experience for me. My
acknowledgement would be incomplete without paying my gratitude to
my college mentor

Mr. Rahul Gupta for providing his timely and

valuable suggestions as and when required. Without his

guidance and

support this project would not have been the way it has come out.

Thanking you,
Regards

With
Garima Tyagi
BBA-VI

Sem.

PREFACE
Summer Training is a necessary part for fulfillment of BBA- Vis
Sem. course. The emphasizes in the project is providing the study and
an insight in to Indian FMCG business scenario. The Summer Training
has given a chance to try and apply the academic knowledge and gain
insight in to corporate culture. This helps in developing decision-making
abilities and emphasizes on active participation by the student.I undertook
my training in Amul India (Gujarat Co-operative Milk Marketing
Federation Ltd.) , a leading milk,

icecream,

butter manufacture

company. During the training I had worked on the project TO FIND

OUT THE

DEMAND

ICECREAM,

GHEE,

ESTIMATION OF MILK, BUTTER,

CHOCOLATE

IN

MODINAGAR

REGION working depot under Amul India(gujrat co-operative milk

marketing federation ltd.) I gained valuable experience & knowledge
during the

survey. The project consists of my findings after tabulation

of collected data, then analyzed conclusions were drawn and finally

suggestions were put forward.The preface say about the working culture
of AMUL INDIA which is a FMCG type of organization, competitive
market of soft milk,butter, chocollate industry shows the promotion
scheme of AMUL as to make a higher sales in the market.

TABLE OF CONTENTS
CHAPTER 1
EXECUTIVE SUMMARY
a) INTRODUCTION ..................................................................
b) GCMMF TODAY
c) VARIOUS TYPE OF PRODUCT.
AMUL BRIEF PROFILE
a) ABOUT AMUL.
b) MISSION & VISSION..
C) MARKETING STRATEGIES..
d) SWOT ANALYSIS...
e) ORGANISATIONAL STRUTURE

CHAPTER 2
a)OBJECTIVE OF STUDY.
b)NEED OF THE STUDY...
c) RESEARCH METHODOLOGY OF THE STUDY..

CHAPTER3

a) DATA ANALYSIS AND INTERPRETATION

b) FINDING AND RECOMMENDATION

CHAPTER 4
CONCLUSION

CHAPTER 5

BIBLIOGRAPHY & ANNEXURES

Chapter-1

Executive Summary
a)Introduction
Amul: The origin
The mighty Ganges at it's 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. Further, as
Ganga-ma carries the aspirations of generations for moksha, Amul too has
become a symbol of the aspirations of millions of farmers.Creating a
pattern of liberation and self-reliance for every farmer to follow.

The moppet who put Amul on India's breakfast table

50 years after it was first launched, Amul's sale figures have jumped from
1000 tonnes a year in 1966 to over 25,000 tonnes 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 spell on the masses.
Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28year-old housewife is out in the balcony drying clothes. From her second
floor flat she can see her neighbours on the road. There are other people
7

too. The crowd seems to be growing larger by the minute. Unable to curb
her curiosity Sheela Mane hurries down to see what all the commotion is
about. She expects the worst but can see no signs of an accident. It is her
four-year-old who draws her attention to the hoarding that has come up
overnight. "It was the first Amul hoarding that was put up in Mumbai,"
recalls Sheela Mane. "People loved it. I remember it was our favourite
topic of discussion for the next one week! Everywhere we went somehow
or the other the campaign always seemed to crop up in our conversation."
Call her the Friday to Friday star. Round eyed, chubby cheeked, winking
at you, from strategically placed hoardings at many traffic lights. She is
the Amul moppet everyone loves to love (including prickly votaries of the
Shiv Sena and BJP). How often have we stopped, looked, chuckled at the
Amul hoarding that casts her sometime as the coy, shy Madhuri, a bold
sensuous Urmila or simply as herself, dressed in her little polka dotted
dress and a red and white bow, holding out her favourite packet of butter.
For 30 odd years the Utterly Butterly girl has managed to keep her fan
following intact. So much so that the ads are now ready to enter
the Guinness Book of World Records for being the longest running
campaign ever. The ultimate compliment to the butter came when a
British company launched a butter and called it Utterly Butterly, last year.
It all began in 1966 when Sylvester daCunha, then the managing director
of the advertising agency, ASP, clinched the account for Amul butter. The
butter, which had been launched in 1945, had a staid, boring image,
primarily because the earlier advertising agency which was in charge of
the account preferred to stick to routine, corporate ads. In India, food was
8

something one couldn't afford to fool around with. It had been taken too
seriously, for too long. Sylvester daCunha decided it was time for a
change of image.
The year Sylvester daCunha took over the account, the country saw the
birth of a campaign whose charm has endured fickle public opinion,
gimmickry and all else.
The Amul girl who lends herself so completely to Amul butter, created as
a rival to the Polson butter girl. This one was sexy, village belle, clothed
in a tantalising choli all but covering her upper regions. "Eustace
Fernandez (the art director) and I decided that we needed a girl who
would worm her way into a housewife's heart. And who better than a little
girl?" says Sylvester daCunha. And so it came about that the famous
Amul Moppet was born.
That October, lamp kiosks and the bus sites of the city were splashed with
the moppet on a horse. The baseline simply said, Thoroughbread, Utterly
Butterly Delicious Amul,. It was a matter of just a few hours before the
daCunha office was ringing with calls
Not just adults, even children were calling up to say how much they had
liked the ads. "The response was phenomenal," recalls Sylvester daCunha.
"We knew our campaign was going to be successful."
For the first one year the ads made statements of some kind or the other
but they had not yet acquired the topical tone. In 1967, Sylvester decided
that giving the ads a solid concept would give them extra mileage,
more dum, so to say. It was a decision that would stand the daCunhas in
good stead in the years to come.
9

In 1969, when the city first saw the beginning of the Hare Rama Hare
Krishna movement, Sylvester daCunha, Mohammad Khan and Usha
Bandarkar, then the creative team working on the Amul account came up
with a clincher -- 'Hurry Amul, Hurry Hurry'. Bombay reacted to the ad
with a fervour that was almost as devout as the Iskon fever.
That was the first of the many topical ads that were in the offing. From
then on Amul began playing the role of a social observer. Over the years
the campaign acquired that all important Amul touch.
India looked forward to Amul's evocative humour. If the Naxalite
movement was the happening thing in Calcutta, Amul would be up there
on the hoardings saying, "Bread without Amul Butter, cholbe na cholbe
na (won't do, won't do). If there was an Indian Airlines strike Amul would
be there again saying, Indian Airlines Won't Fly Without Amul.
There are stories about the butter that people like to relate over cups of
tea. "For over 10 years I have been collecting Amul ads. I especially like
the ads on the backs of the butter packets, "says Mrs. Sumona Varma.
What does she do with these ads? "I have made an album of them to
amuse my grandchildren," she laughs. "They are almost part of our
culture, aren't they? My grandchildren are already beginning to realise
that these ads are not just a source of amusement. They make them aware
of what is happening around them .Despite some of the negative reactions
that the ads have got, DaCunhas have made it a policy not to play it safe.
There are numerous ads that are risque in tone.
"We had the option of being sweet and playing it safe, or making an
impact. A fine balance had to be struck. We have a campaign that is
10

strong enough to make a statement. I didn't want the hoardings to be

pleasant or tame. They have to say something," says Rahul daCunha.
"We ran a couple of ads that created quite a furore," says Sylvester
daCunha. "The Indian Airlines one really angered the authorities. They
said if they didn't take down the ads they would stop supplying Amul
butter on the plane. So ultimately we discontinued the ad," he says
laughing. Then there was the time when the Amul girl was shown wearing
the Gandhi cap. The high command came down heavy on that one. The
Gandhi cap was a symbol of independence, they couldn't have anyone not
taking that seriously. So despite their reluctance the hoardings were wiped
clean. "Then there was an ad during the Ganpati festival which said,
Ganpati Bappa More Ghya (Ganpati Bappa take more). The Shiv Sena
people said that if we didn't do something about removing the ad they
would come and destroy our office. It is surprising how vigilant the
political forces are in this country. Even when the Enron ads (Enr On Or
Off) were running, Rebecca Mark wrote to us saying how much she liked
them."
There were other instances too. Heroine Addiction, Amul's little joke on
Hussain had the artist ringing the daCunhas up to request them for a blow
up of the ad. "He said that he had seen the hoarding while passing through
a small district in UP. He said he had asked his assistant to take a
photograph of himself with the ad because he had found it so funny," says
Rahul daCunha in amused tones. Indians do have a sense of humour,
afterall.

11

From the Sixties to the Nineties, the Amul ads have come a long way.
While most people agree that the Amul ads were at their peak in the
Eighties they still maintain that the Amul ads continue to tease a laughter
out of them.
Where does Amul's magic actually lie? Many believe that the charm lies
in the catchy lines. That we laugh because the humour is what anybody
would enjoy. They don't pander to your nationality or certain sentiments.
It is pure and simple, everyday fun.

The Birth of Amul and development of Indias Dairy

Cooperative Movement
The birth of Amul at Anand provided the impetus to the cooperative dairy
movement in the country. The Kaira District Cooperative Milk Producers
Union Limited was registered on December 14, 1946 as a response to
exploitation of marginal milk producers by traders or agents of existing
dairies in the small town named Anand (in Kaira District of Gujarat).
Milk Producers had to travel long distances to deliver milk to the only
dairy, the Polson Dairy in Anand. Often milk went sour as producers had
to physically carry the milk in individual containers, especially in the
summer season. These agents arbitrarily decided the prices depending on
the production and the season. Milk is a commodity that has to be
collected twice a day from each cow/buffalo. In winter, the producer was
either left with surplus / unsold milk or had to sell it at very low prices.
Moreover, the government at that time had given monopoly rights to
Polson Dairy (around that time Polson was the most well known butter
brand in the country) to collect milk from Anand and supply it to
12

Impressed with the development of dairy cooperatives in Kaira District &

its success, Shri Lal Bahadur Shastri, the then Prime Minister of India
during his visit to Anand in 1964, asked Dr. V Kurien to replicate the
Anand type dairy cooperatives all over India. Thus, the National Dairy
Developed Board was formed and Operation Flood Programme was
Bombay city in turn. India ranked nowhere amongst milk producing
countries in the world in 1946.Angered by the unfair and manipulative
trade practices, the farmers of Kaira District approached Sardar
Vallabhbhai Patel (who later became the first Deputy Prime Minister and
Home Minister of free India) under the leadership of the local farmer
leader Tribhuvandas Patel. Sardar Patel advised the farmers to form a
Cooperative and supply milk directly to the Bombay Milk Scheme instead
of selling it to Polson (who did the same but gave low prices to the
producers). He sent Morarji Desai (who later became Prime Minister of
India) to organize the farmers. In 1946, the farmers of the area went on a
milk strike refusing to be further oppressed. Thus the Kaira District
Cooperative was established to collect and process milk in the District of
Kaira in 1946. Milk collection was also decentralized, as most producers
were marginal farmers who were in a position to deliver 1-2 litres of milk
per day. Village level cooperatives were established to organize the
marginal milk producers in each of these villages.
The Cooperative was further developed & managed by Dr. V Kurien
along with Shri H M Dalaya. The first modern dairy of the Kaira Union
was established at Anand (which popularly came to be known as AMUL
dairy after its brand name). Indigenous R&D and technology development
at the Cooperative had led to the successful production of skimmed milk
powder from buffalo milk the first time on a commercial scale
13

anywhere in the world. The foundations of a modern dairy industry in

India were thus laid since India had one of the largest buffalo populations
in the world.
The success of the dairy co-operative movement spread rapidly in
Gujarat. Within a short span five other district unions Mehsana,
Banaskantha, Baroda, Sabarkantha and Surat were organized. In order to
combine forces and expand the market while saving on advertising and
avoid a situation where milk cooperatives would compete against each
other it was decided to set up an apex marketing body of dairy
cooperative unions in Gujarat. Thus, in 1973, the Gujarat Co-operative
Milk Marketing Federation was established. The Kaira District Cooperative Milk Producers Union Ltd. which had established the brand
name AMUL in 1955 decided to hand over the brand name to GCMMF
(AMUL). With the creation of GCMMF (AMUL), we managed to
eliminate competition between Gujarats cooperatives while competing
with the private sector as a combined stronger force. GCMMF (AMUL)
has ensured remunerative returns to the farmers while

providing

consumers with products under the brand name AMUL.This was possible
due to the leadership of the founder Chairman of AMUL, Tribhuvandas
Patel and the vision of the father of the White Revolution, Dr. Verghese
Kurien who worked as a professional manager at AMUL. Numerous
people contributed to this movement which would otherwise not have
been possible.
Dr. Verghese Kurien, the World Food Prize and the Magsaysay Award
winner, is the architect of Indias White Revolution, which helped India
emerge as the largest milk producer in the world.

14

Launched for replication of the Amul Model all over India.

Operation Flood, the worlds largest dairy development programme, is
based on the experience gained from the Amul Model dairy
cooperatives. The facilities at all levels are entirely farmer-owned. The
cooperatives are able to build markets, supply inputs and create valueadded processing. Thus, Amul Model cooperatives seem to be the most
appropriate organizational force for promoting agricultural development
using modern technologies and professional management and thereby
generating employment for the rural masses and eradicating poverty in
these undeveloped areas. India has already demonstrated the superiority
of this approach.
Every day Amul collects 447,000 litres of milk from 2.12 million farmers
(many illiterate), converts the milk into branded, packaged products, and
delivers goods worth Rs 6 crore (Rs 60 million) to over 500,000 retail
outlets across the country.Its supply chain is easily one of the most
complicated in the world. How do managers at Amul prevent the milk
from souring?
Walk in to any Amul or Gujarat Cooperative Milk Marketing Federation
(GCMMF) office, and you may or may not see a photograph of Mahatma
Gandhi Image, but you will certainly see one particular photograph. It
shows a long line of Gujarati women waiting patiently for a union truck to
come and collect the milk they have brought in shining brass matkas.
The picture is always prominently displayed. The message is clear: never
forget your primary customer. If you don't, success is certain. The proof?
A unique, Rs 2,200 crore (Rs 22 billion) enterprise.

15

Organisation structure
It all started in December 1946 with a group of farmers keen to free
themselves from intermediaries, gain access to markets and thereby
ensure maximum returns for their efforts.Based in the village of Anand,
the Kaira District Milk Cooperative Union (better known as Amul)
expanded exponentially. It joined hands with other milk cooperatives, and
the Gujarat network now covers 2.12 million farmers, 10,411 village level
milk collection centers and fourteen district level plants (unions) under
the overall supervision of GCMMF.
There are similar federations in other states. Right from the beginning,
there was recognition that this initiative would directly benefit and
transform small farmers and contribute to the development of society.
Markets, then and even today, are primitive and poor in infrastructure.
Amul and GCMMF acknowledged that development and growth could
not be left to market forces and that proactive intervention was required.
Two key requirements were identified.
The first, that sustained growth for the long term would depend on
matching supply and demand. It would need heavy investment in the
simultaneous development of suppliers and consumers.
Second, that effective management of the network and commercial
viability would require professional managers and technocrats.
To implement their vision while retaining their focus on farmers, a
hierarchical network of cooperatives was developed, which today forms
the robust supply chain behind GCMMF's endeavors. The vast and
complex supply chain stretches from small suppliers to large fragmented
16

markets.Management of this network is made more complex by the fact

that GCMMF is directly responsible only for a small part of the chain,
with a number of third party players (distributors, retailers and logistics
support providers) playing large roles.
Managing this supply chain efficiently is critical as GCMMF's
competitive position is driven by low consumer prices supported by a low
cost system.

Developing demand
At the time Amul was formed, consumers had limited purchasing power,
and modest consumption levels of milk and other dairy products. Thus
Amul adopted a low-cost price strategy to make its products affordable
and attractive to consumers by guaranteeing them value for money.

Introducing higher value products

Beginning with liquid milk, GCMMF enhanced the product mix through
the progressive addition of higher value products while maintaining the
desired growth in existing products.
Despite competition in the high value dairy product segments from firms
such as Hindustan Lever , Nestle and Britannia GCMMF ensures that
the product mix and the sequence in which Amul introduces its products
is consistent with the core philosophy of providing milk at a basic,
affordable price.

17

The distribution network

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

Umbrella brand
The network follows an umbrella branding strategy. Amul is the common
brand for most product categories produced by various unions: liquid
milk, milk powders, butter, ghee, cheese, cocoa products, sweets, icecream and condensed milk.
Amul's sub-brands include variants such as Amulspray, Amulspree,
Amulya and Nutramul. The edible oil products are grouped around Dhara
and Lokdhara, mineral water is sold under the Jal Dhara brand while fruit
drinks bear the Safal name.

18

By insisting on an umbrella brand, GCMMF not only skillfully avoided

inter-union conflicts but also created an opportunity for the union
members to cooperate in developing products.

Managing the supply chain

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

Coordination
Given the large number of organisations and entities in the supply chain
and

decentralised

responsibility

for

various

activities,

effective

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

19

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

Establishing best practices

A key source of competitive advantage has been the enterprise's ability to
continuously implement best practices across all elements of the network:
the federation, the unions, the village societies and the distribution
channel.
In developing these practices, the federation and the unions have adapted
successful models from around the world. It could be the implementation
of small group activities or quality circles at the federation. Or a TQM
program at the unions. Or housekeeping and good accounting practices at
the village society level.More important, the network has been able to
regularly roll out improvement programs across to a large number of
members and the implementation rate is consistently high.
For example, every Friday, without fail, between 10.00 a.m. and 11.00
a.m., all employees of GCMMF meet at the closest office, be it a
department or a branch or a depot to discuss their various quality
20

concerns.Each meeting has its pre-set format in terms of Purpose, Agenda

and Limit (PAL) with a process check at the end to record how the
meeting was conducted. Similar processes are in place at the village
societies, the unions and even at the wholesaler and C&F agent levels as
well.
Examples of benefits from recent initiatives include reduction in
transportation time from the depots to the wholesale dealers, improvement
in ROI of wholesale dealers, implementation of Zero Stock Out through
improved availability of products at depots and also the implementation
of Just-in-Time in finance to reduce the float.
Kaizens at the unions have helped improve the quality of milk in terms of
acidity and sour milk. (Undertaken by multi-disciplined teams, Kaizens
are highly focussed projects, reliant on a structured approach based on
data gathering and analysis.) For example, Sabar Union's records show a
reduction from 2.0% to 0.5% in the amount of sour milk/curd received at
the union.The most impressive aspect of this large-scale roll out is that
improvement processes are turning the village societies into individual
improvement centers.

21

Technology and e-initiatives

GCMMF's technology strategy is characterized by four distinct
components: new products, process technology, and complementary
assets to enhance milk production and e-commerce.Few dairies of the
world have the wide variety of products produced by the GCMMF
network. Village societies are encouraged through subsidies to install
chilling units. Automation in processing and packaging areas is common,
as is HACCP certification. Amul actively pursues developments in
embryo transfer and cattle breeding in order to improve cattle quality and
increases in milk yields.
GCMMF was one of the first FMCG (fast-moving consumer goods) firms
in

India

to

employ

Internet

technologies

to

implement

B2C

commerce.Today customers can order a variety of products through the

Internet and be assured of timely delivery with cash payment upon
receipt.Another e-initiative underway is to provide farmers access to
information relating to markets, technology and best practices in the dairy
industry through net enabled kiosks in the villages.
GCMMF has also implemented a Geographical Information System (GIS)
at both ends of the supply chain, i.e. milk collection as well as the
marketing process.
Farmers now have better access to information on the output as well as
support services while providing a better planning tool to marketing
personnel.

22

The Three- tier "Amul Model"

The Amul Model is a three-tier cooperative structure. This structure
consists of a Dairy Cooperative Society at the village level affiliated to a
Milk Union at the District level which in turn is further federated into a
Milk Federation at the State level. The above three-tier structure was setup in order to delegate the various functions, milk collection is done at the
Village Dairy Society, Milk Procurement & Processing at the District
Milk Union and Milk & Milk Products Marketing at the State Milk
Federation. This helps in eliminating not only internal competition but
also ensuring that economies of scale is achieved. As the above structure
was first evolved at Amul in Gujarat and thereafter replicated all over the
country under the Operation Flood Programme, it is known as the Amul
Model or Anand Pattern of Dairy Cooperatives.Responsible for
Marketing of Milk & Milk Products Responsible for Procurement &
Processing of Milk Responsible for Collection of Milk Responsible for
Milk Production.

Dairy Village Cooperative Society (VDCS)

The milk producers of a village, having surplus milk after own
consumption, come together and form a Village Dairy Cooperative
Society (VDCS). The Village Dairy Cooperative is the primary society
under the three-tier structure. It has membership of milk producers of the
village and is governed by an elected Management Committee consisting
of 9 to 12 elected representatives of the milk producers based on the
principle of one member, one vote. The village society further appoints a
23

Secretary (a paid employee and member secretary of the Management

Committee) for management of the day-to-day functions. It also employs
various people for assisting the Secretary in accomplishing his / her daily
duties. The main functions of the VDCS are as follows:

Collection of surplus milk from the milk producers of the village &
payment based on quality & quantity.

Providing support services to the members like Veterinary First

Aid, Artificial Insemination services, cattle-feed sales, mineral
mixture sales, fodder & fodder seed sales, conducting training on
Animal Husbandry & Dairying, etc.

Selling liquid milk for local consumers of the village.

Supplying milk to the District Milk Union.

Thus, the VDCS in an independent entity managed locally by the milk

producers and assisted by the District Milk Union.

District Cooperative Milk Producers Union (Milk Union)

The Village Societies of a District (ranging from 75 to 1653 per Milk
Union in Gujarat) having surplus milk after local sales come together and
form a District Milk Union. The Milk Union is the second tier under the
three-tier structure. It has membership of Village Dairy Societies of the
District and is governed by a Board of Directors consisting of 9 to 18
elected representatives of the Village Societies. The Milk Union further
appoints a professional Managing Director (paid employee and member
secretary of the Board) for management of the day-to-day functions. It
also employs various people for assisting the Managing Director in

24

accomplishing his / her daily duties. The main functions of the Milk
Union are as follows:

Procurement of milk from the Village Dairy Societies of the

District

Arranging transportation of raw milk from the VDCS to the Milk

Union.

Providing input services to the producers like Veterinary Care,

Artificial Insemination services, cattle-feed sales, mineral mixture
sales, fodder & fodder seed sales, etc.

Conducting

training on Cooperative Development, Animal

Husbandry & Dairying for milk producers and conducting

specialised skill development & Leadership Development training
for VDCS staff & Management Committee members.

Providing management support to the VDCS along with regular

supervision of its activities.

Establish Chilling Centres & Dairy Plants for processing the milk
received from the villages.

Selling liquid milk & milk products within the District

Process milk into various milk & milk products as per the
requirement of State Marketing Federation.

Decide on the prices of milk to be paid to milk producers as well on

the prices of support services provided to members.

25

State Cooperative Milk Federation

The Milk Unions of a State are federated into a State Cooperative Milk
Federation. The Federation is the apex tier under the three-tier structure. It
has membership of all the cooperative Milk Unions of the State and is
governed by a Board of Directors consisting of one elected representative
of each Milk Union. The State Federation further appoints a Managing
Director (paid employee and member secretary of the Board) for
management of the day-to-day functions. It also employs various people
for assisting the Managing Director in accomplishing his daily duties. The
main functions of the Federation are as follows:

Marketing of milk & milk products processed / manufactured by

Milk Unions.

Establish distribution network for marketing of milk & milk

products.

Arranging transportation of milk & milk products from the Milk

Unions to the market.

Creating & maintaining a brand for marketing of milk & milk

products (brand building).

Providing support services to the Milk Unions & members like

Technical Inputs, management support & advisory services.

Pooling surplus milk from the Milk Unions and supplying it to

deficit Milk Unions.

26

Establish feeder-balancing Dairy Plants for processing the surplus

milk of the Milk Unions.

Arranging for common purchase of raw materials used in

manufacture / packaging of milk products.

Decide on the prices of milk & milk products to be paid to Milk

Unions.

Decide on the products to be manufactured at various Milk Unions

(product-mix) and capacity required for the same.

Conduct long-term Milk Production, Procurement & Processing as

well as Marketing Planning.

Arranging Finance for the Milk Unions and providing them

technical know-how.

Designing & Providing training on Cooperative Development,

Technical & Marketing functions.

Conflict Resolution & keeping the entire structure intact.

We move to the year 2008. The dairy industry in India and particularly in
the State of Gujarat looks very different. India for one has emerged as the
largest milk producing country in the World. Gujarat has emerged as the
most successful State in terms of milk and milk product production
through its cooperative dairy movement. The Kaira District Cooperative
Milk Producers Union Limited, Anand has become the focal point of
dairy development in the entire region and AMUL has emerged as one of
the most recognized brands in India, ahead of many international brands.
Today, we have around 176 cooperative dairy Unions formed by
1,25,000 dairy cooperative societies having a total membership of around
13 million farmers on the same pattern, who are processing and marketing
27

milk and milk products profitably, be it Amul in Gujarat or Verka in

Punjab, Vijaya in Andhra Pradesh or a Nandini in Karnataka. This entire
process has created more than 190 dairy processing plants spread all over
India with large investments by these farmers institutions. These
cooperatives today collect approximately 23 million kgs. of milk per day
and pay an aggregate amount of more than Rs.125 billion to the milk
producers in a year.

28

Amul Hits of 2010 - 2011

"Butter khana , not gymkhana!" , "INCOME ATTAX!", "Bharat

Obama?"

"Kochi toh log

kahenge!" , "Flight dis 'eruption'!" , "IPL

Commission....err!"

"CHENNAI

'SAPAAD'

KINGS!" , "Celebrating 50 years of

Gujarat" , "Swarnim india Swarnim gujarat Swarnim amul"

"MAHA NASHTA DAY!" , "BAS AB AUR NAHIN! KASAB

AUR NAHIN!" , "Bites !"

"THE SNACKS

EFFECT!" , "Party pooped!" , "Share your

snakes!"

"Beat the heat, just eat!" , "From bye bye to Bhai Bhai!" , "Yahan
der bhi hai, andher bhi......"

"Toh ab goalie kha.....!" ,"Messi ko Maska dona.....!","OIL SLICK!

BUTTER LICK!"

"Kashmir ki kali ko khilne Do!", "Jhat makhni pat byah!", "Sabka

Paul khol diya!",

"WOH KHA!WOH KHA!", "Symbol for BUTTER", "BLED

TIME STORY!", "Casting coach!"

"ONCE UPON A SLICE IN MUMBAI!!" , "Get buttered, not

battered!" , "Prevent malaria.Spread amularia" , "Common wealth
29

kha gaya?" , "POLLUTION TEL LAGAANE GAYA!" , "Butter?

Jam?" , "RAI' BOT!" , "The No ball Prize !" , "Vishwa ke nath,
Bharat ke kuch nahin? " , "For bookies! For bhookas!"

"EATEN 24 HOURS A DAY" , "BHARAT BANDH? ISKO

KHOLO!" , "MASKA KHOLA HAI, DARLING TERE LEYE!" ,
"Jigrr mat haaro!" ,"Incurable India !"

"Divide......and unite !" , "He slices 1000 loaves with one finger!" ,
"I declare this pack open"

Management of a Gymkhana in Mumbai, evicted a trangender

activist from a dinner party hosted by one of its member- April'10

30

Anand : Gujarat Cooperative Milk Marketing Federation (GCMMF),

renowned for marketing milk & milk products under Amul & Sagar
brands, announced record Sales Turnover of Rs. 8005 crores. The results
of the apex body of the dairy cooperatives in Gujarat, were declared today
in the 36th Annual General Meeting of the Federation. While commenting
on the results, Shri Parthibhai G. Bhatol, Chairman, GCMMF informed
that last year, our turnover was 6711 crores (Rs 67 billion) and our
Federation registered a quantum growth of 19.3% to reach Rs 8005 crores
(Rs 80 billion).This is an extremely impressive growth when viewed
from the perspective of drought effect and resultant drop in milk
procurement as well as 27.7% growth that we achieved in the year 200809 Shri Bhatol commented. He further informed, Federation has
justified its undisputed leadership in milk business by achieving sales
growth in pouch milk category by more than 21% and in value terms by
32% from existing markets only. We have achieved number one status in
pouch milk sales in Delhi this year. With this achievement, Amul milk
has emerged as the largest selling brand of milk in all major metro
markets

of

Delhi,

Mumbai,

Kolkata

and

Ahmedabad.Further

commenting, he said Our Masti Dahi sales grew at an impressive rate of

46%. Ice-cream sales registered a value growth of 22%. Amul Cheese
sales increased by 20%. UHT milk also grew strongly at 14% along with
Fresh Cream registering 39% growth. Our beverage sales grew by 25%
and our chocolate sales also registered an encouraging growth of
30%.Regarding retail experiment of Amul, Shri Bhatol informed
Federation has created 5000 Amul preferred outlets which exclusively
sell wide range of Amul products. 2000 of these parlours have been added
during the current year which speaks volumes about the quantum of scale
31

and speed with which the expansion has been dealt with. It is unthinkable
for any competition to create such massive network of exclusive outlets.
The Retailing business alone fetched a turnover of Rs. 300 Crore during
the current financial year. Regarding exports, Shri Bhatol commented,
We have been able to maintain and strengthen our presence in consumer
pack export markets. This year too we have crossed a mark of Rs 100
crore in foreign exchange earnings. We have been able to achieve this
figure for the 5th time by now.Regarding future plan of the dairy
cooperative, Shri Bhatol informed, During last year, we prepared a
perspective.

32

GCMMF Today
GCMM F is India's largest food products marketing organisation]. 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 affordable quality products. GCMMF markets
and manages the Amul brand. From mid-1990s Amul has entered areas
not related directly to its core business. Its entry into ice cream was
regarded as successful due to the large market share it was able to capture
within a short period of time - primarily due to the price differential and
the brand name. It also entered the pizza business, where the base and the
recipes were made available to restaurant owners who could price it as
low as 30 rupees per pizza when the other players were charging upwards
of 100 rupees.

33

GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's
largest food products marketing organisation. 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.

Members:

13 district cooperative milk

producers' Union

No.

of

Producer 2.79 million

Members:
No.
of
Societies:

Village 13,328

Total Milk handling 11.22 million litres per day

capacity:
Milk
collection 3.05 billion litres
(Total - 2008-09):
Milk
collection 8.4 million litres
(Daily
Average
2008-09):
Milk
Capacity:

Drying 626 Mts. per day

Cattle feed mfg. cap. 3500 Mts per day

34

Sales Turnover
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10

Rs (million)
11140
13790
15540
18840
22192
22185
22588
23365
27457
28941
29225
37736
42778
52554
67113
67242

c) Various Type Of Product

35

US $ (in million)
355
400
450
455
493
493
500
500
575
616
672
850
1050
1325
1504
1594

Amul is the acronym for Anand Milk Union Limited, a dairy cooperative
company in Gujarat, India that markets a wide range of products
including milk powders, milk, butter, ghee, cheese, chocolate, Shrikhand,
Gulab Jamun, ice cream, cream, Nutramul brand and others making it the
largest food brand in India with an annual turnover in excess of US $1
billion (2006-07). The complete listing is below.
Bread spreads
Pure Ghee
Milk Powders
Sweetened Condensed Milk
Sweets
Fresh Milk
Amul Icecreams
Chocolate & Confectionery
Brown Beverage
Milk Drink
Health Beverage
References
External links

Breadspreads

Amul Butter

Amul Lite Low Fat Breadspread

Amul Cooking Butter

Delicious Margarine

Amul / Sagar Pure Ghee

36

Milk Powders

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Sweetened Condensed Milk

Amul Mithaimate

Sweets

Amul Shrikhand & Amrakhand

Amul Mithaee Khoya Gulabjamaun

Amul Basundi

Fresh Milk
Amul Taaza Toned Milk 3% fat
Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardised Milk 4.5% fat
Amul Slim & Trim Double Toned Milk 1.5% fat
Amul Saathi Skimmed Milk 0% fat
Amul Cow Milk
Amul Yogi, A Flavoured Yoghurt
Amul Masti Dahi (Fresh Curd)
Amul Lite Dahi (Fresh Low Fat Curd)
Amul Prolife probiotic Dahi (Fresh Probiotic Curd)
Amul Buttermilk (Available Fresh in Pouch Pack)
37

 Amul Masti Spiced Butter Milk

Amul Lassee

Amul Icecreams

Vanilla Royale

Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit

Bonanza, Roasted Almond)

Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh

Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)

Sundae Range (Mango, Black Currant, Sundae Magic, Double

Sundae)

Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone,

Chococrunch, Megabite, Cassatta)

Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips,

Cake

Magic)

Amul SUGAR FREE Frozen Foods (Milk Based Sweet)

Amul ProLife Probiotic Ice cream

Chocolate & Confectionery

Amul Fruit & Nut Chocolate

Amul Bindazz

Amul Rejoice

Amul kesar

38

Brown Beverage

Nutramul Malted Milk Food

Milk Drink
Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom,
Rose, Chocolate,Butterscotch)(Right now AMUL stopped its AMUL
KOOL Production)
Amul Kool Cafe amul sexy gums
Amul Kool Koko

Health Beverage

Amul Shakti White Milk Food

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 11 years.
The major export products are:

Consumer Packs

Amul Pure Ghee

Amul Butter

Amul Shrikhand

Amul Mithaee Gulabjamun

Nutramul Brown Beverage

39

Amul Cheese

Amul Malai Paneer

Amul UHT Milk (Long Life)

Amul Gold Milk

Amul Taaza Full Cream Milk

Amul Lite Slim and Trim Milk

Amul Fresh Cream

Bulk Packs

Amul Skimmed Milk Powder

Amul Full Cream Milk Powder

Many of our products are now available in the USA, Gulf

Countries and Singapore.

40

AWARD
Rajiv Gandhi National Quality Award - 1999
After creating ripples in the
market whether it be with a Rs.
20/- Pizza or with a "real" Ice
Cream, Amul has done it again.
But this time, it is not only for
new product launches or giving
a tough fight to best of the food
companies

in

extremely

competitive segments, it has

now topped as the winner of
t "Best of All" Rajiv Gandhi National Quality Award for the year,
1999.The award which is considered equivalent of Malcolm Baldrige
National Quality Award of USA and European Quality Award, is the
most prestigious award which recognizes achievements of an organization
in terms of excellence in business results, business processes, customer
satisfaction as well as societal and environmental impact. 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
41

emerging competition. It undertook successfully a number of TQM

initiatives like Kaizen, Housekeeping, Small Group Activities, Hoshin
Kanri (Policy Deployment) across the organization. Realising that unless
the TQM initiatives are accepted by all the business partners, the same
would remain ineffective. As a very unique measure Amul extended all
the TQM initiatives to its business partners whether it was the farmer
producer in the village or a wholesale distributor in a metro town or its
most sophisticated production unit.
Shri B.M. Vyas, Managing Director, who championed this movement
realized way back in 1994 that with emerging competition, doing business
would become more exciting yet extremely competitive which would
require at times not only a whole set of new skills and competencies but
quick adaptability to change without much stress or turbulence. The
initiation of TQM was to work with the well known quality management
initiatives which have proven to be effective elsewhere to create a culture
of transparency, openness and leadership in 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
42

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 superordinate goal in their heart that 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
43

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.

AMUL BRIEF PROFILE

44

Amul was formally registered on December 14, 1946. Dr Verghese

Kurien is recognised as the man behind the success of Amul. The 'Amul
revolution' started as awareness among the farmers, grew and matured
into a protest movement that was channeled towards economic prosperity.
Over five decades ago, the life of a farmer in Kheda District was very
much like that of his/her counterpart anywhere else in India. His/her
income was derived almost entirely from seasonal crops. The income
from milk buffaloes was undependable. Private traders and middlemen
controlled the marketing and distribution system for the milk. As milk is
perishable, farmers were compelled to sell it for whatever they were
offered. Often, they had to sell cream and ghee at throw-away prices. In
this situation, the private trader made a killing. Gradually, the realization
dawned on the farmers that the exploitation by the trader could be
checked only if marketed their milk themselves. Amul was the result of
that realization. The Kaira Union began pasteurizing milk for the Bombay
Milk Scheme in June 1948. By the end of 1948, more than 400 farmers
joined in more Village Society, and the quantity of milk handled by one
Union increased from 250 to 5,000 liters a day. The success of Amul was
instrumental in launching the White Revolution that resulted iincreased
milk production in India. It is termed as "Operation Flood" by Amul.
Currently Amul has 2.41 million producer members with milk collection
average of 5.08 million litres/day. Amul's sales turnover in 2004-05 was
672 million US $.

Company info

45

The Gujarat Cooperative Milk Marketing Federation Ltd, Anand

(GCMMF) is the largest food products marketing organisation of India. It
is the apex organization of the Dairy Cooperatives of Gujarat. This State
has been a pioneer in organizing dairy cooperatives and our success has
not only been emulated in India but serves as a model for rest of the
World. Over the last five and a half decades, Dairy Cooperatives in
Gujarat have created an economic network that links more than 2.8
million village milk producers with millions of consumers in India and
abroad through a cooperative system that includes 13,141 Village Dairy
Cooperative Societies (VDCS) at the village level, affiliated to 13 District
Cooperative Milk Producers Unions at the District level and GCMMF at
the State level. These cooperatives collect on an average 7.5 million litres
of milk per day from their producer members, more than 70% of whom
are small, marginal farmers and landless labourers and include a sizeable
population of tribal folk and people belonging to the scheduled castes.
The turnover of GCMMF (AMUL) during 2008-09 was Rs. 67.11 billion.
It markets the products, produced by the district milk unions in 30 dairy
plants, under the renowned AMUL brand name. The combined processing
capacity of these plants is 11.6 million litres per day, with four dairy
plants having processing capacity in excess of 1 million Litres per day.
The farmers of Gujarat own the largest state of the art dairy plant in Asia
Mother Dairy, Gandhinagar, Gujarat - which can handle 2.5 million
litres of milk per day and process 100 MTs of milk powder daily. During
the last year, 3.1 billion litres of milk was collected by Member Unions of
GCMMF. Huge capacities for milk drying, product manufacture and
cattle feed manufacture have been installed. All its products are
manufactured under the most hygienic conditions. All dairy plants of the
46

unions are ISO 9001-2000, ISO 22000 and HACCP certified. GCMMF
(AMUL)s Total Quality Management ensures the quality of products
right from the starting point (milk producer) through the value chain until
it reaches the consumer. Ever since the movement was launched fifty-five
years ago, Gujarats Dairy Cooperatives have brought about a significant
social and economic change to our rural people. The Dairy Cooperatives
have helped in ending the exploitation of farmers and demonstrated that
when our rural producers benefit, the community and nation benefits as
well.
The Gujarat Cooperative Milk Marketing Federation Ltd. cannot be
viewed simply as a business enterprise. It is an institution created by the
milk producers themselves to primarily safeguard their interest
economically, socially as well as democratically. Business houses create
profit in order to distribute it to the shareholders. In the case of GCMMF
the surplus is ploughed back to farmers through the District Unions as
well as the village societies. This circulation of capital with value addition
within the structure not only benefits the final beneficiary the farmer
but eventually contributes to the development of the village community.
This is the most significant contribution the Amul Model cooperatives has
made in building the Nation.

Achievements of GCMMF
2.8 million milk producer member families

13,759 village societies

13 District Unions
47

8.5 million liters of milk procured per day

Rs. 150 million disbursed in cash daily

GCMMF is the largest cooperative business of small producers

with an annual turnover of Rs. 53 billionss

The Govt. of India has honoured Amul with the Best of all
categories Rajiv Gandhi National Quality Award.

Largest milk handling capacity in Asia

Largest Cold Chain Network

48 Sales offices, 3000 Wholesale Distributors, 5 lakh retail outlets

Export to 37 countries worth Rs. 150 crores

Winner of APEDA award for nine consecutive years

Amul Brand Building

GCMMF (AMUL) has the largest distribution network for any FMCG
company. It has nearly 50 sales offices spread all over the country, more
than 3,000 wholesale dealers and more than 5,00,000 retailers. AMUL is
also the largest exporter of dairy products in the country. AMUL is
available today in over 40 countries of the world. AMUL is exporting a
wide variety of products which include Whole and Skimmed Milk
48

Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee) and
Indigenous Sweets. The major markets are USA, West Indies, and
countries in Africa, the Gulf Region, and [SAARC] SAARCneighbours
Singapore, The Philippines, Thailand, Japan and China. In September
2009, Amul emerged as the leading Indian brand according to a survey by
Synovate to find out Asia's top 1000 Brands.

b) MISSION AND VISSION OF AMUL

GCMMF plans Rs 2,600 cr investment for vision 2020
After having prepared its vision 2020, Gujarat Co-operative Milk
Marketing Federation (GCMMF), which owns and markets Amul brand,
plans to pump in around Rs. 2,600 crore to achieve its mission."As part of
our mission, we intend to double the existing capacity of all our member
49

union by 2020. Around Rs. 2,600 crore are planned to be infused by 2020
to ramp up production as well as infrastructure capacities", said Parthi
Bhatol, in-charge chairman, GCMMF."Whatever infrastructure and
capacities we have today, will be doubled to achieve mission 2020",
added BM Vyas, managing director, GCMMF. GCMMF has come up
with a long term plan, which envisages increasing the turnover of all its
member dairy co-operatives to Rs. 27,000 crore by 2020 from current
level of Rs. 10,000 crore. Currently, the marketing federation has 13
member unions.The total milk procurement by its member union averaged
at 87.19 lakh kgs per day in 2008-09, which represented the growth of
14.87 per cent over 75.90 lakh kgs per day. GCMMF also wants to double
this milk procurement capapcity by 2020. Apart from this, these dairy cooperatives also demonstrated their ability to process 110 lakh kgs of milk
per day.The expansion under mission 2020 includes increasing
productivity of milk cattle, higher processing infrastructure to handle the
peak milk procurement of 195 lakh per day. It also has plans to capture
liquid milk market of major metro cities.GCMMF has further decided to
focus more on retail expansion. As per the available details, the federation
plans to add 6,000 Amul parlours across the country in financial year
2009-10.At present, it has retailing network of 4,000 Amul parlours. The
apex body of dairy co-operatives plan to take the total tally of Amul
parlours to 10,000 by adding 8,000 parlours during 2010-11.

MISSION
Amul Vidyashree & Amul Vidya Bhushan Awards
50

The foundation of every state is the sound education of its youth and
hence is the most basic constituent for a developing nation like India.
Towards this, we at Amul have always contributed our best towards
ensuring development and encouraging the spirit of enlightenment among
todays youth. As a continuation towards this endeavour, Amul has
instituted Vidyashree Award to recognize the academic excellence of the
class 10 school topper in the examination in each State/Central Board
enrolled school every

year.The objective of the awards is to recognize

the efforts of the academic merit toppers and build equity for Amul
among the young India. We are proud to constitute this award which is
the first of its kind in India and operate Pan-India in such a large scale.
By winning this award, not only the student gets recognized, but it also
help the schools to enhance their image as an academy that imparts
quality education, putting it at par with other premier institutions in India.

Both Amul Vidyashree & Amul Vidyabhushan Award

consist:
A specially designed Trophy.

A Certificate of excellence signed by MD, GCMMF and A Cash

Award of Rs.1000/- Listed along with photograph on our website
www.amul.com.

51

Feature in press advertisement in a leading national

newspaper
The inception of this award too ar 2004-05, whereby in the first year we
honoured the award to students of 500 schools in South India, East India
and Gujarat. In the second year (2005-06) we further acknowledged 2267
students across schools in India. For the academic year 2006-07, we have
till date recognized the academic excellence of around 3077 for
Vidyashree Award across India. Moving ahead, in 2006-07 we have
instituted the Amul Vidyabhushan Award to recognize the toppers of
12th Standard examinations. In the first of year of inception, we have
awarded students 2073 students across India.For the academic year 200708, we plan to recognize the efforts of 10,000 Class X & Class XII merit
rankers (5000 students each for Vidyashree and Vidyabhushan Awards).
We further intend to increase the award number every year so that
maximum students are recognized for their academic excellence through
our Awards. All this is towards Amuls vision to see educated, talented
and strong youth in future India and hence work our best towards nation
building.

c)MARKETING STRATEGIES
Amul is the largest co-operative movement in India with 2.2 million milk
producers organised in 10,552 co-operative societies in 2009-2010.
The country's largest food company, Amul, is the market leader in butter,
whole milk, cheese, ice cream, dairy whitener, condensed milk, saturated
fats and long life milk .Amul follows a unique business model, which
aims at providing 'value for money' products to its consumers, while
52

protecting the interests of the milk-producing farmers who are its

suppliers as well as its owners. Despite being a farmers' co-operative,
Amul has given multinationals a run for their money.

In butter, cheese and saturated fats, Amul has remained the undisputed
market leader since its inception in 1955, by offering quality products at
competitive prices. In other categories, Amul has nullified its late mover
disadvantage through aggressive pricing, better quality, innovative
promotion, and superior distribution .

d)

SWOT ANALYSIS

Strengths:

Demand profile: Absolutely optimistic.

Margins: Quite reasonable, even on packed liquid milk.

53

Flexibility of product

mix: Tremendous.

With

balancing

equipment, you can keep on adding to your product line.

Availability of raw material: Abundant. Presently, more than 80 per

cent of milk produced is flowing into the unorganized sector, which
requires proper channelization.

Technical manpower: Professionally-trained,

technical

human

resource pool, built over last 30 years

Weaknesses:

Perishability: Pasteurization has overcome this weakness partially.

UHT gives milk long life. Surely, many new processes will follow
to improve milk quality and extend its shelf life.

Lack of control over yield: Theoretically, there is little control over

milk yield. However, increased awareness of developments like
embryo transplant, artificial insemination and properly managed
animal husbandry practices, coupled with higher income to rural
milk producers should automatically lead to improvement in milk
yields.

Logistics of procurement: Woes of bad roads and inadequate

transportation facility make milk procurement problematic. But

with the overall economic improvement in India, these problems

would also get solved.

Problematic distribution: Yes, all is not well with distribution. But

then if ice creams can be sold virtually at every nook and corner,
why cant we sell other dairy products too?Moreover, it is only a

54

matter of time before we see the emergence of a cold chain linking

the producer to the refrigerator at the consumers home!

Competition: With so many newcomers entering this industry,

competition is becoming tougher day by day. But then competition
has to be faced as a ground reality. The market islarge enough for
many to carve out their niche.

Opportunities:
"Failure is never final, and success never ending. Dr Kurien bears out
this statement perfectly. He entered the industry when there were only
threats. He met failure head-on, and now he clearly is an example of
never

ending

success! If

dairy

entrepreneurs

are

looking

for opportunities in India, the following areas must be tapped:

Value addition: There is a phenomenal scope for innovations in

product development, packaging and presentation. Given below are
potential areas of value addition:Steps should be taken to introduce
value-added products like shrikhand, ice creams, paneer, khoa,
flavored milk, dairy sweets, etc. This will lead to a greater presence
and flexibility in the market place along with opportunities in the
field of brand building.

Addition of cultured products like yoghurt and cheese lend

further strength - both in terms of utilization of resources and
presence in the market place.

A lateral view opens up opportunities in milk proteins

through casein, caseinates and other dietary proteins, further
opening up export opportunities.
55

Yet another aspect can be the addition of infant foods,

geriatric foods and nutritionals.

Export potential: Efforts to exploit export potential are already on.

Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the
Middle East. Following the new GATT treaty, opportunities will
increase tremendously for the export of agri-products in general
and dairy products in particular.

Threats:
Milk vendors, the un-organized sector: Today milk vendors are occupying
the pride of place in the industry. Organized dissemination of information
about the harm that they are doing to producers and consumers should see
a steady decline in their importance. The study of this SWOT analysis
shows that the strengths and opportunities far outweigh weaknesses
and threats. Strengths and opportunities are fundamental and
weaknesses and threats are transitory. Any investment idea can do well
only when you have three essential ingredients: entrepreneurship (the
ability to take risks), innovative approach (in product lines and marketing)
and values (of quality/ethics).
The Indian dairy industry, following its delicensing, has been attracting a
large number of entrepreneurs. Their success in dairying depends on
factors such as an efficient yet economical procurement network, hygienic
and cost-effective processing facilities and innovativeness in the market
place. All that needs to be done is: to innovate, convert products into
commercially exploitable ideas. All the time keep reminding yourself:
56

Benjamin Franklin discovered electricity, but it was the man who

invented the meter that really made the money.

e)ORGNISATION STRUCTURE
CHAIRMAN

BOARD OF DIRECTORS

57

MANAGING DIRECTORS

GENERAL MANAGER

MARKETING MANAGER

ASST. GEN.
MANAGER HEAD
OFFICE

ASST. GEN.
MANAGER ZONE-5

ASST. GEN.
MANAGER ZONE-1

ASST. GEN.
MANAGER ZONE-4

ASST. GEN.
MANAGER ZONE-2

ASST. GEN.
MANAGER ZONE-3

HUMAN
RESOURSE
DEVLOPMENT

PRODUCT
MANAGEMENT
CONTROL
GROUP

QUALITY

Assistant general manager

DEPUTY MANAGER MARKETING

Head office

ASSISTANT MANAGER MARKETING

SENIOR EXECUTIVE MARKETING

EXECUTIVE MARKETING 58
JUNIOUR EXECUTIVE MARKETING

SALE

INFORMATION
SYSTEM

B
M
O
A
A
AN
RA
SA
DS
SG
TI S
C
OT
.N
AH
F.
GM
SG
EAG
A
SR
D
E
Nd S
TK
IN
.D
S
.E
R
.
MDT
GT
E
ADAM
.
EAICA
NISG
NTN
ASN
SE
.R
O
GSG
N
TA
E
M
R
ETC.G.
ASE
R.M
GM
NGT
AER
A
AEO
NNN
H
GRZ
ENA
.A
ES O
A.GM
G
RM
E
N
D AE
ARNE
R
ZN O
A
O
FAG5Z
N
FGEA
O
EE H
I RN
CR M
E
- E
E Z1 D
AZ O
4
NO A
N NC
E
ANEB
H
W
A
E
N -E
D- 3D
N
D2
KN
E
OA
LM
LI

IM
A
BT
AT
IA

CHAPTER- 2
Objectives of the study

To find out market share of AMUL.

To find out the demand estimation of milk, butter,cheese ghee,

paneer, chocolate
59

To understand the marketing strategy of AMUL.

To analyze the customers needs regarding the product and policies

formulated by the company.

To find out the brand image of AMUL

Need for the study

Management is like a coin having two sides. One is the theoretical part
and second is the practical part. In the theoretical part of management we
learn in our classroom from the lectures, seminars, group discussions
thatare arranged from time to time.To know the practical aspect of
management a practical training is provided to the students. The main
idea behind practical training is to bring the management students face to
face with the actual environment of practical management so that he/ she
will be able to apply theory to practical situation before finally moving
into the professional world to show the efficiency and capability.The
project study focused on AMUL as a product and the subject is to
understand the mind set of different customers about the product.

CHAPTER-3
Analysis of demand estimation of amul product
Place: Modinagar

60

Analysis of household survey

Census:113218

(1)Higher income group:

Sample size:10
Consumption of amul product
(a)liquid milk
(b)Butter
(c)ghee
(d)paneer
(e)cheese
(f)ice cream
(g)chocolate

kg/day
23775
79
22
34.4
22
12
15

(2)upper medium income group

Sample size:10
Consumption of amul product
(a)liquid milk
(b)Butter
(c)ghee
(d)paneer
(e)cheese
(f)ice cream
(g)chocolate

kg/day
47551
106
59
142
52
105
9

(3) middle income group

Sample size:10
Consumption of amul product
(a)liquid milk
(b)Butter
(c)ghee
(d)paneer

kg/day
23775
49.9
47.5
73.7
61

(e)cheese
(f)ice cream
(g)chocolate

38
6.4
4

(4)lower income group

Sample size:10
Consumption of amul product
(a)liquid milk
(b)Butter
(c)ghee
(d)paneer
(e)cheese
(f)ice cream
(g)chocolate

kg/day
40418
nil
17
13
nil
2
2

Analysis of retailer survey

Class-A
sample size:30
selling of amul product

kg/day

(a)liquid milk

50512

(b)Butter

90.5
62

(c)ghee

30kg/m

(d)paneer

76

(e)cheese

46

(f)ice cream

156.4

(g)chocolate

CLASS-B
sample size:10
selling of amul product

kg/days

(a)liquid milk

35856

(b)Butter

54

(c)ghee

24kg/m

(d)paneer

6.4

(e)cheese

13

(f)ice cream

10

(g)chocolate

6p/m

Method of calculation:
In this first I find out the population of that area where I went to find out
the demand estimation.
Place: Modinagar
Census: 113218
As the example of milk for higher income group:

63

Average consumption of milk = total consumption of milk/no of

household.

Population of higher income group in modinagar is :7%

Total population of higher income group in modinagar is:-7925

So demand estimation of milk in higher income group

is:7925*3lit=23775

Interpretation
During the survey I asked about the satisfaction level of household as well as
retailer about the product and services after analysis it was found that
(1)

Amul product is widely accepted by higher, middle and lower

income group people.

(2)

Amul product always be in reach of people easily.

(3)

It shows that Amul has a strong distribution channel.

(4)

Due to its brand image, quality, price and taste Amul is undisputed
leader in retails with an evenly distributed Retail outlet in
modinagar, which results for higher sales for Amul milk.

FINDINGS OF THE STUDY

The collected data that analyzed come out with following findings:The result of analysis of dairy product in modinagar is as follows
(1)

Amul is first largest dairy milk in modinagar and Mother dairy is

the second.
64

(2)

The percentage of market share of Amul liquid milk is 52% and

share of mother dairy is 46% and other is 2%.

(3)

As far as Ice- cream and chocolate is concerned the competition is

tough with reputed brands which fighting for their share in the
modinagar market.

(4)

Rest of product sell Like: -( Butter, ghee, paneer and cheese) is not
so good due to lack of quality.

(5)

The total percentage of promotional activities that help to increase

the sales.

RECOMMENDATION:1

A healthy relationship should be developed by the company

executive with the retailers.

Service of Amul should be improved in the ease of repairing of its

misleaders (Refrigerators) and glow sign boards which are out of

65

order in an outlet up to the level thus it is parallel or even better

than the competitor.
3

No.of route vehicles for delivery of goods should be increased in

the entire area of modinagar effectively and efficiently.

The company should supply its glow sign board Banners etc
as an advertisement media to the retailers of few areas, which will
as usual become sales promotion tool for them .

The commitment of supplying gift items or incentive should be

carried out on or before the schedule time.

The sales schemes and incentive should be properly communicated

to the consumer ( retail outlets/ confectionary) and it should be
time.

The company should be regular of its goods such as different

flavors so as for proper availability at each and every retail/
confectionary shop. Otherwise it may lose its consumer and
prospects thus distorting the image of the company.

Distributor and confectionary shop feed back should be taken time

to time so as to trace the actual existing problem related to there
and the market.

CONCLUSION
Working for an organization like GCMMF in the ghaziabad region is a
pride for me and gave me a chance to learn the marketing skill and help
me to understand the real environment of business in modinagar market
potential for dairy product helps me lot.In an area like modinagar need a
lot of planning has to be made before making any offer to the customer.
66

As far as ice cream, milk is concerned the competition is tough with

reputed brands which fighting for their share in the market. But owing to
its brand image, quality, price and taste Amul is undisputed leader in
retails with an evenly distributed retail outlet in modinagar, which results
for higher sales for Amul milk. As far as other avenues for sales is
concerned like pushcarts, institutional selling and other bulk deals etc.
Amul is far behind and has to cover a long distance and more efforts have
to be done in this field, to increase its total revenue. At last it was a great
experience to me working with Amul, a reputed brand in FMCG sector
because many of the management gurus sai work successfully in FMCG
sector than you can survive easily in any sector.

BIBLIOGRAPHY

1. WWW.AMUL.COM
2. WWW.NDDB.COM

3. WWW.GOOGLE..COM
67

4. MARKETING MANAGEMENT: BY PHILIP KOTLER

5. RESEARCH METHODOLOGY : BY C.R.KOTHARI

ANNEXURE-1

Chairman's Speech: 36th Annual General Body Meeting held

on 18th August, 2010

68

The year that passed by was challenging one, not just for the global
economy as a whole but also for India and its dairy industry.
During the last year, India witnessed one of the worst monsoons in two
decades leading to drop in agricultural production mainly in case of
Wheat, Rice, Sugar and Pulses with its impact varying across different
geographies and categories. With record buffer stock of Rice and Wheat
accumulated by the Government during previous year, the nation could
meet demand of Rice and Wheat from within. However in case of Sugar
and Pulses, we had to resort to large-scale imports. India being one of the
largest consumers of Pulses and Sugar in the World, import of these
commodities resulted into record International prices and domestic prices
too, shot up leading to price increases not only in these commodities but
also in their substitutes and by-products. Compared to these commodities,
there was relatively lower impact of draught on milk production in the
country and substantial growth has also been achieved.
Due to the sound procurement and distribution network as well as
immaculate planning, in Gujarat we were able to wither the draught and
also achieve 6.68% growth in milk procurement. We could foresee the
impact of below normal monsoon in August 2009 itself and started
planning to maintain milk production, procurement and inventory levels.
At a time when due to lower production of cereals, fodder prices had
jumped almost two-fold, we enhanced our supplies of cattle-feed to milk
producers and maintained its prices below cost and were able to provide
better returns to the milk producers to overcome the stress of draught. Our
cooperative system stood by their members on one hand and also tried to
be more cautious in keeping the consumers prices of milk and milk
69

products at the barest minimum. Our cooperatives have therefore been

successful in enhancing trust amongst its members as well as consumers
during such difficult time. We are sure that with these measures and near
normal monsoon during the next year, would lead to major increase in
milk production as well as procurement. The current drought can be
mainly attributed to the phenomenon of world-wide climate change.
Developed nations in their quest for industrialisation, have perpetrated
unhealthy levels of carbon emissions in the atmosphere. Developing
nations including India have also joined the league. While every nation
has a right of economic development, the current carbon emissions are not
desirable and must be immediately brought down in order to provide a
better tomorrow to our future generations. Our dairy cooperatives have
initiated various activities to tackle this challenge prominent being; Tree
Plantation Programme for afforestation, installation of Bio-gas plants for
curbing methane emissions, installation of solar power packs at village
level, adoption of energy efficient methods for milk processing and
distribution, etc. While the previous year led to the world-wide economic
recession, the year in retrospect was more of a global effort to overcome
from the recession and all major economies announcing stimulus
packages to provide necessary momentum to the economies. All these
measures have restricted the fall in growth rates of developed nations,
large-scale Government spending and cut in taxes have led to huge
sovereign debts and many countries especially in Western Europe are
battling to address this issue. In case of India however, the effect of
economic recession was lower due to the inherent nature of the domestic
consumption led growth story of the economy. Further, the slew of
stimulus measures announced by the Government has provided necessary
70

momentum to the economy and the economy is again geared to achieve

double-digit growth in the coming years. Apart from the tax breaks
provided to various Industries in form of stimulus package, the economy
also got a boost from the increase in Government spending, which had a
cascading effect leading to higher consumption. Further, increase in
procurement prices [minimum support price for agriculture products]
along with implementation of various Government schemes for rural
development and loan waiver for farmers, which was introduced in the
last Union Budget; have contributed to a rise in rural demand. The
increase in rural purchasing power is reflected in rural growth across a
number of categories. With increasing disposable incomes in urban as
well as rural areas, there has also been significant shift in the food habits
with a bias towards more value-added food products. This has led to
higher demand for milk and milk products. At the same time, due to
draught and resultant decline in agricultural production, significant
demand-supply mismatch was evident during the last year. As a result,
food prices have jumped and there has been considerable increase in the
prices of almost all major agricultural commodities including fruits and
vegetables and even the headline food inflation touched 20% over the last
year.
This has also resulted in steep price increase of all the cattle-feed
ingredients such as; prices of de-oiled rice bran which constitutes 25-35%
of cattle-feed have increased from Rs. 3483/MT in 2005-06 to Rs.
6380/MT in 2009-10 (83% increase), prices of molasses which constitutes
10-12% of cattle-feed have increased from Rs. 3546/MT in 2005-06 to
Rs. 8448/MT in 2009-10 (138% increase), prices of Rapeseed extraction
which constitutes 10-12% of cattle-feed have increased from Rs.
71

5141/MT in 2005-06 to Rs. 11781/MT in 2009-10 (131% increase), prices

of Rice Polish which constitutes 10-12% of cattle-feed have increased
from Rs. 5612/MT in 2005-06 to Rs. 9630/MT in 2009-10 (72%
increase), prices of Jowar which constitutes 10-12% of cattle-feed have
increased from Rs. 5918/MT in 2005-06 to Rs. 9157/MT in 2009-10 (55%
increase). The price rise in these raw materials has been particularly
severe in the last year with prices increasing in the range of 25-35%. This
has put tremendous cost burden on the milk producers. Further Molasses,
which being a by-product of Sugar, has seen significant price increase in
recent past. Apart from these high prices, Molasses attracts Excise Duty
and VAT at the highest rate. Thus, total tax burden on Molasses is around
30% of its basic cost and there is no special consideration in taxes for
Molasses used in manufacture of cattle-feed.
Therefore, the average price of cattle-feed charged by our dairy
cooperatives has increased from Rs. 6600 per MT in April 2008 to Rs.
10000 per MT in March 2010, an increase of above 50%. However, our
dairies are not charging the actual cost of manufacturing cattle-feed and
are subsidizing it for the milk producer members. This has put pressure on
the viability of cattle-feed plants. It is ironic that at this juncture India is
exporting nutrition in large quantity in form of de-oiled cakes, which is
rich in crude protein. The escalation in feed cost leads to increase in
production cost of milk and contributes to inflation in the consumer prices
of milk. Hence, India should discourage export of de-oiled cakes. This
will boost availability of nutrition in the country.
All the above factors have led to increase in cost of production for milk
and milk products. Since dairy farmers are also consumers of these
72

agricultural commodities, such high level of food inflation affects their

livelihood and they need to be compensated for the same. Therefore, your
Federation has been forced to increase the prices of its products.
However, the price increase affected by us is quite lower as compared to
above increase in input cost.
While the Government is contemplating introduction of uniform Goods &
Service Tax (GST) across the country, we would like to highlight that
many dairy products like Baby Milk Food, Butter, Ghee, Cheese, Icecream, etc. are now-a-days products of mass consumption. Dairy
cooperatives provide these products at very reasonable rates to the
consumers of India. This has led to affordability for the common man to
include these products in her daily consumption. However, these products
are classified under the category of 12.5% VAT in the most of the States.
In the interest of consumers from all sections of society, we firmly believe
that if VAT rates applicable to dairy products are reduced to the minimum
rate of 4%, it would increase consumer demand, boost milk products
consumption and improve their health by way of better nutrition.
It has been observed that there is a general lack of recognition of
cooperatives as economic institutions both amongst the policy makers and
public at large. It is therefore necessary to consider the importance of a
progressive and enabling legislation, which provides a level playing field
for cooperatives with other corporate entities. As per the directives of the
Central Government, the Reserve Bank of India focuses on the priority
sector for its lending as those sectors that impact large sections of the
populations, the weaker sections and sectors which are employment
intensive. However, when it comes to disbursement of short term and long
73

term loans for dairy cooperatives, our activities are not treated as priority
sector category for direct finance to agriculture. The entire finances to
District Unions and State Federation of Cooperative Dairies should be
treated as direct finances to farmers, covered under priority sector lending
norms as these organisations have been created under three-tier Amul
Pattern, for the betterment of rural farmers and are nothing but the
forward integration of farmers for better price-realisation. Similarly, the
agricultural income of farmers is exempted from the purview of Income
tax. Income earned from the dairy business is nothing but the part of
agricultural as animal husbandry is supplementary to agriculture.
However, currently, Milk Cooperatives are taxable in the highest Income
Tax bracket of 30% + cess. About 15 years ago, tax on the cooperatives
was always lower than the corporate rates and same difference be
maintained as dairy cooperatives are primarily engaged in the activity of
removal of rural poverty and economic development of farmers in the
country.
Milk is the largest agriculture commodity in the country with its
production estimated at 110 Million MTs during the previous year and its
revenues expected to be around Rs. 2.2 lakh crores in value terms.
Further, milk today touches the lives of millions of rural milk producers,
especially women engaged primarily in this vocation. All across the
world, governments keep buffer stocks of milk powders, butter, etc. in
order to support the milk producers on one hand and to check undue price
fluctuations on the other hand. These systems of buffer stock mechanism
for milk products are very well established in US and European countries.
In case of India too, similar systems exists for other agricultural
commodities like wheat, rice, etc. A mechanism of buffer stocking of
74

milk products is also required in India in order to provide cushion to milk

producers as well as consumers.
After entering a slump during the previous year, international dairy
product prices has been rising rapidly in recent months, sparking
speculation about a repeat of the large price spike that took markets by
surprise three years earlier. All dairy products are showing signs of strong
recovery with the largest increase been displayed by butter, the price of
which has doubled over the year. However, prices for both skimmed milk
and whole milk powder have also increased by over 90 per cent. The
economic recovery underway in major countries may be an important
factor in renewed import demand. The sustainability of the rise in prices is
uncertain, though contingent on the responses of the European Union and
other exporting countries which hold dairy product stocks. On the
domestic front however, dairy farmers now face a real squeeze from both
the fronts; higher cost of production and threat of subsidised imports
flooding our dairy markets. When International prices of milk
commodities increased to unprecedented levels during 2007, Government
banned exports of these commodities, which has later been revoked while
withdrawing the export incentives provided on exports of these
commodities, thus effectively closing the door on exports of milk
commodities and not providing the dairy farmers an opportunity to reap
higher rates. Now in order to contain high inflation of food products in the
country, Government has completely removed import duty on 30000 MT
milk powder and 15000 MT of Butteroil / Butter with effect from March
2010. This will jeopardise the returns of milk producers of the country
while allowing developed nations to dump their excess commodities
backed by heavy subsidies.
75

It is important to note that milk and milk products forms the largest share
of expenditure on food item in a consumer basket and hence the rise in
milk prices affect common man of India the most. Thus, in todays critical
situation affecting every citizen of the country, Government urgently
needs to act and protect dairy farmers of India by supporting them. We
had represented to the Government in form of a memorandum submitted
to the Hon. Prime Minister way back on 31st August, 2009. Further, dairy
cooperative leaders of the country also had a meeting with the Hon. Prime
Minister on 31st March, 2010 and discussed the following issues:
1. Amendment in the Cooperative Act.
2. Reduction in Income Tax on Dairy Cooperatives
3. Increase in prices of cattle-feed raw material and corrective actions
required thereof.
4. VAT on all value-added Dairy products to be fixed at minimum rate of
4%.
5. Removal of VAT & Excise Duty on use of Molasses in cattle-feed.
6. Restrict imports of Skimmed Milk Powder and Butter Oil.
7. Classification of Advances to dairy co-operatives under Priority Sector
Lending.
However, till date dairy cooperatives have not received any reprieve on
any of the above issues.
Food security is of paramount concern for every nation. A comprehensive
strategy for food and nutrition security in the country is required in order
to move towards the goal of universal food security. Food security
involves every individual gaining physical, economic, social and
environmental access to a balanced diet. With more than 65% of the
76

Indian population residing in rural areas and rural economy being centred
on agriculture, the real impact of this years drought is immense. While
the share of agriculture in GDP of the country is reducing with each
passing year, it is pertinent to note that the economic growth achieved by
the country has to be inclusive. With rural folks too, sharing the fruits of
this development. The three-tier Amul pattern provides the right mix of
rural employment on one hand while providing nutrition to the masses on
the other hand. The need is to recognise the power of this movement,
which has been tested over last six decades and provide due importance
for strengthening the same. I now present to you, our Federations Annual
Report and the Audited Accounts for the year 2009-10.

MILK PROCUREMENT
Total milk procurement by our Member Unions during the year 2009-10
averaged 93.02 lakh kilograms (9.30 million kgs) per day representing a
growth of 6.68% over 87.19 lakh kgs (8.7 million kgs) per day achieved
during the year 2008-09. The highest procurement as usual was recorded
during January, 2010 at 122.5 lakh kgs per day.

SALES
During the year, sales of our Federation registered a quantum growth of
19.3% to reach Rs. 8005.36 crores (Rs. 80 billion). Last year, our turnover
was Rs. 6711.31 crores (Rs. 67.11 billion). This is an extremely
impressive growth when viewed from the perspective of draught effect
and resultant drop in milk procurement as well as 27.7% growth that we
achieved in the year 2008-09. Our Federation has justified its undisputed
leadership in milk business by achieving sales growth in pouch milk
77

category by more than 21% and achieving average sales volume of 38.30
LLPD (lakh litres per day). The Sales growth in value terms is 32% from
existing markets only. We have achieved number one status in pouch milk
sales in Delhi this year. With this achievement, Amul Milk has emerged
as the largest selling brand of milk in all major metro markets of Delhi,
Mumbai, Kolkata and Ahmedabad. Our Masti Dahi sales grew at an
impressive rate of 46%. Ice-cream sales registered a value growth of 22%.
Amul Cheese sales increased by 20%. UHT milk also grew strongly at
14% along with Fresh Cream registering 39% growth. Our beverage sales
grew by 23% and our chocolate sales also registered an encouraging
growth of 30%.
RETAILING
Our Federation has created 5000 Amul preferred outlets which
exclusively sell wide range of Amul products. 2000 of these parlours have
been added during the current year which speaks volumes about the
quantum of scale and speed with which the expansion has been dealt with.
It is unthinkable for any competitors to create such massive network of
exclusive outlets. This has been possible due to strong brand equity,
consumer pull and relentless efforts on part of our entire sales
organisation which includes our wholesale dealers. These parlours have
not only enhanced the Amul brand visibility but also are giving an easy
access to millions of discerning consumers to our unmatched range of
existing products and new products which we launch on regular basis.
Moreover, these parlours have increased the efficiency in distribution by
reducing the distribution costs significantly. The Retailing business alone
fetched a turnover of Rs. 300 crores during the current financial year
which is approximately 4% of the Federations total turnover.
78

EXPORT
We have been able to maintain and strengthen our presence in consumer
pack export markets. This year too we have crossed a mark of Rs. 100
crores in foreign exchange earnings. We have been able to achieve this
figure for the 5th time by now. You will be pleased to learn that during
the year we have been able to expand our reach to New Zealand with
exports of Paneer, Shrikhand, Butter, etc. We have also started export of
our Cheese and Butter to Sri Lankan market. Our traditional market of
Middle East and Far East are doing very well especially in newer products
like Paneer as well as in case of established products like ghee, butter, etc.

DISTRIBUTION NETWORK
Amul range of products continues to penetrate deeper and deeper across
the country simultaneously through our four distribution highways created
with specialist distributors handling ambient milk products, chilled milk
products, fresh milk products and frozen products. This unique
combination of managing distribution highways has always been our
huge competitive advantage. Distributors are considered to be Marketing
Managers of Federation in true sense. To develop Self Leadership
amongst each individual distributor, a major initiative called SLDP (Self
Leadership Development Programme) has been implemented since last
year. Distributors along with their stake-holders undergo a Vision Mission
Strategy (VMS) workshop at their level which would eventually integrate
each of them in the process of organisations strategic planning and
enable them to manage their own business efficiently by meeting the
challenges of competitive environment. In the process, Distributor
prepares his Mission statement and business plan for next few years. To
79

get exposure to our network of cooperative Institutions, we organise Amul

Yatra for our channel partners. Distributors and major retailers from
across the country come to Anand in Amul Yatra programme. So far more
than 7700 distributors and other channel partners have visited Anand in
Amul Yatra. This year too the initiative continued with inclusion of more
distributors and retailers.

MISSION 2020
In the last years report, I had shared with you our perspective plan for the
year 2020 for our member unions envisaging a capital investment of Rs.
2600 crores (Rs. 26 billion) and a projected group sales turnover of Rs.
27000 crores (Rs. 270 billion). I am glad to inform you that all of our
dairies have started activities to achieve the planned targets. It may be
noted that Kaira Union has commissioned a state-of-the-art Paneer Plant
and also a whey drying plant. Our Sabarkantha Union too is in process of
commissioning a similar Paneer Plant. Our Mehsana Union has expanded
capacity to 9.61 lakh litres per day at its dairy at Manesar near Delhi.
Banaskantha Union too has embarked on installing new powder plant and
cattle-feed plant which shall be commissioned soon. New cattle-feed
plants are being put up by Mehsana and Valsad Unions as well.
SUSTAINABLE ECOLOGICAL DEVELOPMENT GREEN AMUL
GREEN INDIA CAMPAIGN
Dairy farming like agriculture is dependent on nature. It draws resource
from the nature and needs natures support for its growth and
80

development. Generally agriculture and dairying go hand in hand and are

mutually beneficial activities in India. Over the years, due to intensive
agriculture and deforestation, various natural resources have been
depleted in Gujarat. We, therefore, gave a serious thought in this direction
and discovered a novel idea for giving back to nature. The idea was Tree
Plantation by milk producer members of Dairy Cooperatives on every
Independence day.
The idea was put in to the practice first time in the year 2007. Immaculate
planning was done to execute the idea of One member One tree
plantation. On the day of plantation, after the flag hoisting ceremony,
each milk producer member took an oath to plant a sapling and ensure
that it grew in to a tree. The milk producers planted sapling on their own
at their identified locations like their farm, near their home, on farm
bunds, etc. and thus in Gujarat, they planted 18.9 lakh trees across 19
districts of Gujarat on our 60th Independence day, 15th August, 2007.
This was just the beginning. Enthused by the success of the campaign,
Milk Producers of Gujarat decided that every year they shall celebrate
15th August (Independence Day) as a Go Green Revolution Day by Tree
Plantation to Protect Mother Earth from Pollution, Climate Change and
Global Warming. On 15th August, 2008, a more ambitious target was
planned and we planted around 52.74 lakh tree saplings on One member,
Three tree basis across 21 districts of Gujarat. In 2009, the third year of
the programme, we took up an ambitious plan to plant one crore trees on
One member, Five tree basis and successfully planted around 84.04
lakhs tree saplings across Gujarat despite acute rain shortage. During last
three years, our members have planted more than 155.6 lakh trees and
demonstrated their commitment towards preserving and contributing to
81

improvement of the environment. For this activity, we have received

Good Green Governance award from Srishti for three consecutive years
during 2007, 2008 and 2009. It is heartening to note that the International
Dairy Federation has awarded the Amul Green movement the best
environment initiative in the sustainability category at the 4th Global
Dairy Conference held at Salzburg Congress Centre, Austria on 28th
April, 2010. I would like to dedicate this award to all our milk producer
members and the respective team of our committed employees in our
unions since this will now inspire all milk producers across the world. I
am sure all of us will continue to work harder to achieve more milestones
in future.
CO-OPERATIVE DEVELOPMENT
During the year, Junagadh and Kutch Milk Unions have become nominal
members of GCMMF. Along with nominal membership of Amreli and
Bhavnagar Milk Unions, the Federations reach to milk producers has
been extended to 24 out of 26 districts of Gujarat. During the last ten
years, our Member Unions are implementing Internal Consultant
Development (ICD) intervention for developing self leadership among
member producers and thereby enabling them to manage their dairy
business efficiently leading to their overall development. During the year,
Member Unions continued to implement the module on Vision Mission
Strategy (VMS) for primary milk producer members and Village Dairy
Cooperatives. Facilitated by specially trained consultants, 736 Village
Dairy Cooperative Societies (VDCS) have conducted their Vision
Mission Strategy Workshops, prepared their Mission Statements and
Business Plans for next five years. Till date, 6508 VDCS have prepared
82

their mission statement and Business plan under the initiative. During the
year, 5173 VDCS have also reviewed their business plan under annual
revisit of VMS and have prepared action plan for next year to propel the
momentum gained through VMS. During the year three member unions
namely Rajkot, Bharuch and Gandhinagar have initiated VMS programme
in their VDCS. The core group have trained 145 consultants of these
Unions for expanding the reach of the initiative. In order to strengthen
knowledge and skill base of young girls and women of the villages about
milk production management, our Federation with technical collaboration
and resources of Anand Agriculture University, has initiated Mahila
Pashupalan Talim Karyakram for women resource persons of the
member unions and during the year, 739 women resource person have
been trained under this programme. For strengthening infrastructure for
quality and clean milk production, our member unions have identified
4000 potential VDCS for installation of Bulk Milk Coolers (BMC) and till
date, 1806 BMC have already been installed. Continuing the cleanliness
drive at village level, till March 2010, member unions have implemented
cleanliness module at 9507 VDCS. To enhance the level of cleanliness
this year 7735 VDCS celebrated Red Tag Day on Gandhi Jayanti - 2nd
October and the Unions also awarded best performing VDCS.
Considering a long term vision to improve the productivity of animals and
to reduce infertile animal from their milkshed; our Board decided to
implement Fertility Improvement Programme (FIP) from year 2007-08.
The concept of FIP is an integrated one, addressing the aspects of animal
nutrition, breeding and health in a holistic manner and thereby converting
a non-productive animal into productive asset. To implement FIP, milk
unions have deployed 44 FIP teams of veterinary consultants and they are
83

working in 974 villages. During last three years, they have registered 2.32
lakhs non-productive milch cattles and buffaloes under FIP and out of
this, 1.14 lakh milch animals have been made productive. FIP is being
monitored through a dedicated system on www.amul.org.in Encouraged
by the success of FIP, it has been decided to implement a more
comprehensive Productivity Enhancement Programme from the year
2010-11 to improve the productivity of milch animals. In collaboration
with Institute of Rural Management, a year-long Certificate Programme in
Dairy Management (CPDM) has been evolved. The basic objective of the
programme is to create a pool of talented managers in order to meet the
future manpower requirement of the member unions. Till date, two
CPDM programme have been conducted and 39 candidates have been
trained for member unions and Mother Dairy, Gandhinagar.
INFORMATION TECHNOLOGY INTEGRATION
We are glad to inform that in order to stay technologically advanced,
simplify business operations across the supply chain and strengthen the
linkages between GCMMF and its member unions; your Federation is
implementing

a common

Enterprise

Resource

Planning

(ERP)

solution across GCMMF and its member unions. The ERP solution is
expected to bring the entire supply chain on a single common platform
and improve efficiency. As a first step, your Federation has set up a
centralized state-of-the-art data center for its entire IT operations at
Anand. We have further advanced our Information Technology solutions
by integrating Milk Marketing Depots and Milk Plants on a common
communication backbone to strengthen and automate the Milk marketing

84

operations. We have also extended customized ERP solution to all our

warehouses for improve the distribution process.

ACKNOWLEDGEMENTS
Before closing, I would like to thank all those who have helped to make
our Federations operations successful.
We are grateful to the Government of India for the immense support
received on numerous occasions. We are also thankful to the Government
of Gujarat for all the help and cooperation, extended to our organisation.
National Cooperative Dairy Federation of India had been providing us
with invaluable support in coordination with other agencies and
organisations. National Dairy Development Board had played a role in
our growth and development. I am very grateful to them. Institute of
Rural Management, Anand, as always, has contributed to the perspective
building and professionalization of the management of the cooperative
sector. We express deep gratitude for its support. We are indebted to
Vidya Dairy for having organised training programmes on dairy
technology for our employees. We are also grateful to SMC College of
Dairy Science, Anand and National Dairy Research Institute, Karnal for
strengthening the dairy cooperative sector, by providing technically
skilled manpower. We express our sincere thanks to the College of
Veterinary Science and Animal Husbandry, Anand. Our advertising
85

agencies, bankers, insurers, management consultants, suppliers and

transport contractors have been of great help to us in managing our
growth and are our partners in success. We acknowledge their
contributions and commit ourselves to continue and strengthen this
fruitful alliance in all times to come. The Indian Railways has played a
crucial role in the growth of our dairy cooperatives since inception. We
thank them for their continuous support. We depend on the efficiency of
our WC&F agents, distributors, retailers and most important of all, the
patronage of our consumers, who have come to regard our brands as
synonymous with quality and value. While thanking them for their
support, we assure them that we shall strive endlessly to delight them.
Our Member Unions are our strength. We thank them for their guidance,
support and cooperation without which we would not exist. Lastly, we
thank the officers and staff of our Federation for their continued
perseverance, loyalty and unflinching efforts devoted to our cause.

86

ANNEXURE- 2
SOME ARTICLES RELATED WITH AMUL
Amul Help during Flood, by donates 6 Lac packs of Tetra Pack Milk for
the Flood Victims Gujarat had never witnessed such fury of the rains. It
rained relentlessly for about a week throwing life out of gear completely
in central Gujarat, including the Milk Capital of India - Anand. There was
knee-deep to neck deep water in most parts of the town. With
communication links snapped, no electricity and ironically no drinking
water, Anand remained practically cut off for a few days. The citizens of
the milk capital of India braved it all. They were united in their misery
and lent a helping hand to those who were worse off than them. From
Sunday with the rain gods relenting, things started improving slowly. Life
is slowly limping back to normal though even today some parts of the
town are inundated and still without power. Schools are slowly reopening, trickle of vegetables are coming to the market and road links
have slowly been restored though trains links between Vadodara and
Ahmedabad still remains cut off. The people of Anand once again showed
their grit and determination to face any odd and emerge triumphant.As in
earlier occasions, the Gujarat Cooperative Milk Marketing Federation
87

Ltd. has once again come to the aid of the victims of the worst ever floods
in Gujarat. It will supply 6 lac packs of Amul Milk in 200 ml tetra pack
for the flood relief operations. The approximate cost of the milk would
come to Rs. 28.00 lacs. The milk will be supplied as a contribution to the
Chief Minister's Relief Fund.This follows the discussions Shri B.M. Vyas,
Managing Director, GCMMF had with Shri Bhupendrasinh Chudasama,
Minister of Agriculture & Cooperation, Govt. of Gujarat regarding the
need to provide safe milk for distribution in the flood affected areas of
Gujarat when the minister visited Anand on Monday.

Marginal drop in Milk Procurement

In spite of the unprecedented floods in Gujarat, milk procurement by the
Member Unions of Gujarat had shown only a marginal decline of 7% last
week. However, with an improvement in the situation, milk procurement
is slowly expected to return to normal.. On an average the milk
procurement was about 51 lakh liters per day. Milk procurement in
Baroda & Kaira Unions has been affected more than the other Unions.
The priority now is to supply milk rather than go in for products whose
stocks are available across the country.The resilience of the farmer
members was demonstrated when Members from many Societies who
were not able to deliver milk in their Village Society due to floods, came
all the way to Amul Dairy in tractors and unloaded the milk themselves.

88

Amul Focuses on Ice-Cream; Eyes 17% Growth to Rs 3,200 Crore

Mohini Bhatnagar
Anand: Gujarat Cooperative Milk Marketing Federation (GCMMF), one
of India's greatest success stories with its Amul brand, is now aiming at a
17-per cent growth in sales to Rs 3,200 crore this fiscal against sales of Rs
2,746 crore in the previous year ended 31 March 2003.The federation is
expecting each of its products to contribute higher sales this year as new
products are being added to each product line.The big hope is not
surprisingly the Amul brand of ice-creams, which is expected to
contribute Rs 250 crore to the turnover, up from Rs 150 crore last year.
Says GCMMF managing director B M Vyas: "Last year we saw a good
growth in ice-cream, cheese, butter and ghee. We are planning to launch
new products in almost every line that we are in, with specific stress on
ice-creams."For its ice-cream and milk business, GCMMF has begun
investing in increasing its milk capacity. It recently firmed up plans to
invest Rs 100-120 crore to expand this from 1.1 million litres a day to 1.8
million litre a day at its Gandhinagar factory. The investment will take
place over the next two years.The cooperative is also planning to expand
its production facilities beyond Gujarat to service other regions in India.
GCMMF recently bought an ice-cream manufacturing unit in Nagpur and
is installing a dairy unit alongside. Through this unit, the organization has
also extended its milk supply to over 10 cities spread over Rajasthan,
Madhya Pradesh and Maharashtra.

89

Amul is now focusing on its supply system. Efforts are on to ensure

greater availability of Amul ice-cream at pushcarts and small outlets. The
company feels that availability is the most important factor in ice cream
sales. Thus, Amul ice-cream can be found in 'just around the corner
shops,' local STD booths, local kirana shops, chemists and bakers, who
stock the ice-cream in deep freezers.The idea is to ensure visibility and
availability, which more often than not ensures a sale as ice-cream
consumed out of home is most often an impulsive purchase. For ensuring
a presence in southern India, the cooperative has tie-ups with various state
marketing federations in that region. For production of ice-creams it is
considering expanding the agreements with other state-cooperatives as
well.Amul expects to clock sales of 34 million litres during the current
year and the accent will be on offering 'value for money' products. The
new ice-creams to be launched from Amul this year include a mega-bite
almond cone (the largest volume cone in the country), an orange icecream (Santra Mantra), a Bouncer ice-cream with nuts and essential
proteins, vitamins and minerals for the growing children, a cheese icecream and a sundae in cone for kids in different variants. Both Amul and
Hindustan Lever's (HLL) Kwality Walls claim to be the largest selling
ice-cream brands in India. While HLL quotes a market research study by
AC Nielson, which puts Kwality Walls at the No 1 spot, an independent
study by Ahmedabad-based Consumer Education and Research Society
(CERS) ranks Amul as No 1, followed by Kwality Walls (among four
brands including Vadilal and four loose samples) on various parameters
of taste, melting quality, weight, fat and sugar content. Amul ice-cream is
positioned as 'real ice-cream' made from real milk cream, while HLL's
Kwality Walls is made from vegetable oil and its items are dubbed as
90

Frozen Deserts. Last year, Amul ice-cream made its entry into New Delhi,
India's biggest ice-cream market, where its anti-compete agreement with
Mother Dairy has expired. Amul has been outracing its entire ice-cream
requirement for the northern market (including Delhi) from its own
Gandhinagar plant.

91

Americans to get a taste of India

Amul makes it to the shelves of Wal-Mart, the largest US retailer

The recent news that Gujarat Cooperative Milk Marketing Federation had
signed an agreement with Wal-Mart to stock its shelves with products
under its Amul brand name is proof that the 'the taste of India' has finally
arrived. But this is not the first time that Amul will be stepping foot on
US soil. Amul has been in the US since 1998 through Kanan Dairy, which
markets Amul processed cheese, pure ghee, Shrikhand, Nutramul, Amul's
Mithaee Gulab Jamuns to more than 1,000 ethnic Indian grocery stores in
the US through a network of seven distributors.

And this may just be the right time to go full-fledged into the US market
via discount stores like Wal-Mart. Dairy prices milk, yogurt, ice
cream, cheese are at record highs primarily due to lower dairy cattle
and high gasoline prices in the milk trucking industry. Mozzarella cheese
92

prices have been increasing in the past one year. And mozzarella cheese is
an important part of Amul's product portfolio. Amul decided to go up the
food chain and into the mini-pizza market in India only to proliferate the
consumption of mozzarella cheese, thus giving Britannia a run for its
money in the cheese market.Now, since milk is an integral part of the
American diet, consumption levels will be almost maintained. But,
consumers may seek out low-priced stores like Wal-Mart not only for
milk but other dairy products as well. This will work to the advantage of
Amul.While the potential is enormous, the key to Amul's success will be
its ability to localize. For instance, when big MNCs came looking to
capture a slice of the pie of the growing emerging markets, they decided
to customize their offerings. Like McDonald's introduction of Aloo Tikki,
in deference to the Indian palate or when Pepsi coined the Yeh Dil
Maange More tag-line in India. Amul will have to customize its products
and look outside the ethnic box to suit the American and other ethnic
palates. It simply cannot use its home-ground strategies in the US and
expect to make a mark, even if Wal-Mart plans to push the brand only in
stores and only in states like New York and New Jersey, where the Indian
community is very strong.

Still, with more than 50 per cent of Americans being medically obese, and
if Amul is really looking to capture the hearts of the second- and third-

93

generation Indians, offering low-fat versions of its brands, would make a

lot of commercial sense.
And baiting the two-million strong Indian community with an estimated
disposable income of more than $88 billion with ethnic products like
Amul Mithai makes commercial sense for the $257-billion Wal-Mart. As
such riding piggyback on chain stores like Wal-Mart, which has 3,200
stores in the US and another 1,000 internationally, augurs well for Amul.
Amul can be a potentially strong brand in the US. There is certainly
evidence of foreign brands capturing a large part of the domestic market.
It has happened in India a classic case being Unilever, which adapted
and created products to suit the needs of the Indian population. It has
happened in the US, when Japanese automakers flooded the US car
market with cheap cars. And, it can happen with Amul in the US dairy
market. While Amul wants to focus only on the Indian market for the
moment and is just 'testing' the foreign waters, it has already travelled to
India's neighbouring countries, Singapore and Hong Kong. And it will
now be available in Dubai and other Middle Eastern countries as well.
Amul's export strategy seems to be paying off. In fiscal 2003-04, Amul's
innovative marketing strategies achieved around a 20 per cent increase in
sales to Rs2,893 crore, including export revenue of Rs50 crore. Amul has
come a long way from 1946 when it collected only 247 litres of milk a
day to the six million litres of milk per day it now collects from about
10,675 separate village co-operative societies throughout Gujarat. With
access to low cost milk, an innovative and almost 'just-in-time' supply
chain, a ready market among the Indian community and 50 years of
understanding milk, Amul can definitely build the 'taste of India' in the
US. The only question is when?
94

Amul "Utterly Delicious" Parlors

Amul has recently entered into direct retailing through "Amul Utterly Delicious"
parlors 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 Parlors at
some prominent locations in the country, which are run by the company or its
wholesale dealers:
1. Delhi Metro Rail Corporation
2. Indian Space Research Organization
3. The Somnath Temple
4. National Institute of Design
5. Infosys Technologies in Bangalore, Mysore & Pune
95

6. Wipro campus in Bangalore

7. Ahmadabad Municipal Corporation
8. Surat Municipal Corporation
9. Delhi Police
10.Gujarat State Road Transport Corporation
"Amul Utterly Delicious" parlors 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).

1. The criteria for selection of APOs would be

a. Visibility - How prominent is the location of your shop?
b. Shop area: 100 - 300 sq. ft.
c. Good Business potential
d. Exclusive Amul outlet - no other products
e. Willingness to sell the entire range of Amul Products
f. Creditworthiness and past business experience
2.

On your inquiry - our Field force would visit your site. He/She would
fill the APO proposal form with your passport size photograph. You would
require:

a. Shops and Establishment license

b. Layout of the shop and frontage - The layout of the shop designed by a local
architect/local contractor.
c. 2 Passport size photographs
96

3. Renovation Work of the Shop to give it a standard look - would be done to

meet the design and specifications at your cost. The cost of renovation of a
typical shop would normally be between Rs. 60,000 to Rs. 1 lac.
4. Branding- The APOs would be branded as "Amul Utterly Delicious". The
cost of the signage fabrication and installation would be borne by GCMMF
office operating in your region.
5. Equipment- You would require the following equipment:
a. 1or 2 deep freezers can be purchased through Hamara Apna Deep Freezer
Scheme
b. 1 Refrigerator through Hamara Apna Refrigerator Scheme
c. 1 pizza oven
d. 1 Chest Milk Cooler for Pouch Milk
6. Security Deposit- You would be required to furnish an interest free
refundable security deposit of Rs. 25,000 to us. An amount of Rs. 5000/would be deducted towards refurbishing the signage, in the event of closure
of APO before 3-year of operation.
7. Supplies- The delivery of products would be done through our wholesale
dealers
8. We feel that the shop has good potential, and needs support in the initial
days, we can offer additional margins up to maximum of 1% on dairy
products and 2% on Ice cream. The additional margin shall be target based
and shall be given in kind. The support at best would be given only for he
first year of business.
9. Agreement- An agreement bringing us together would be signed.
97

Amul Enters Delhi Ice Cream Market

In 'Co-Operative Competition ' With Mother Dairy
NEW DELHI, April 25
THE Gujarat Cooperative Milk Marketing Federation (GCMMF or Amul)
has launched its ice cream in Delhi, setting the stage for a three-cornered
tussle with Kwality Walls and Mother Dairy for the country's largest
market for ice creams. Delhi currently accounts for around 18 per cent of
the country's estimated Rs 525 crore organized ice cream market of 80.8
million litres. It also boasts of a per capita annual ice cream consumption
of 1.45 litres, as against the national average of 0.25 litres. The Delhi
market is currently dominated by Hindustan Lever Ltd's (HLL) Kwality
Walls and Mother Dairy, which is a brand of Amul's sister cooperative
concern, National Dairy Development Board (NDDB). Both Kwality
Walls and Mother Dairy now sell 6.5-7 million litres each of ice creams in
Delhi. "As a third entrant, we hope to capture 25 per cent of the market in
two years' time. And this will come not at the expense of Mother Dairy,
but Kwality Walls," said Mr Vipul Mittal, Manager (Sales), GCMMF.
Amul has priced its ice cream at Rs 65 for a 1,250 ml Vanilla brick, which
is what Kwality Walls and Mother Dairy are charging for a similar pack
of 750 ml and 1,200 ml respectively. Similarly, it is selling a 100 ml
Vanilla cup for Rs 10, which is the same as Mother Dairy, whereas
Kwality Walls is charging the same for an 80 ml cup. "By ensuring that
our prices are more or less the same as that of Mother Dairy, but much
lower than that of Kwality Walls, we hope to increase the market share of
98

the cooperative sector in the Delhi market," Mr Mittal said. He ruled out
the possibility that Amul's `cooperative competition' with Mother Dairy
would actually end up in the two cooperatives eating into each other's
rather than KwalityWalls' share. Delhi is a market that is expanding by 20
per cent each year. On the other hand, Mother Dairy's plant here has
capacity constraints to cater to this expanding market. Our presence
would ensure that the incremental market will not accrue to Kwality
Walls alone," he added. In fact, Amul, till recently, was using Mother
Dairy's facility to manufacture its ice cream for the neighboring markets
such as Faridabad, Gurgaon and Ghaziabad. But from now on, Amul will
source its entire ice cream requirement (including for Delhi) from its own
Gandhinagar plant. Amul claims to have already deployed 1,000-odd deep
freezers in the last 15 days in Delhi under its `Hamara Apna Deep Freezer
(HADF)' scheme. Under this, retailers are encouraged to buy their own
deep freezers for vending ice creams, with Amul negotiating a discounted
price on their behalf with refrigeration companies like Blue Star, Voltas
and Carrier. This is as against the practice of the ice cream company itself
providing the freezer at the retailer's end, subject to the latter depositing a
refundable security amount. "In the HADF scheme, the retailer not only
saves on the security deposit, but also enjoys the flexibility arising from
owning the asset and availing a direct five-year guarantee from the
manufacturer. These, together with our negotiating a discounted price on
their behalf, entails cost savings of Rs 5,000-8,000 per freezer depending
on capacity and make," Mr Mittal said.

99

Summer has started unusually early this year. And, as the mercury rises
nobody is happier than the ice-cream manufacturers who are already
filling their ice-boxes with dollops of new, mouthwatering flavours.Out
there in front is the hungry-for-growth Rs 3,500-crore (Rs 35 billion)
Anand-based Gujarat Co-operative Milk Marketing Federation which
markets the Amul brand of ice-creams.After wooing the masses with its
economy range, it has a new cooling strategy this summer and aims to
take a bigger scoop from the premium ice-cream segment. Also, it
planning to flex its muscles even more and strengthen its distribution
clout. More than six months ago, Amul launched its super premium ice
-creams -- Amul Utterly Delicious -- in the 100 million litres per annum
organized ice -cream market. But with Hindustan Lever's Kwality Wall's
forsaking volumes for value, Amul is pitching for another head on battle
with the foods and toiletries giant. The new weapons in Amul's armoury
are flavours like litchi, anjeer and cheese almonds. "With a premium
product, this is like taking the battle into HLL territory," says an icecream maker. it was only a couple of years ago that HLL changed its
strategy mix for ice-creams. And in keeping with this strategy, it also
began focusing on just the six big metros. With low priced competitors,
it was decided that we focus on scooping value share rather than volume
100

share," says an HLL manager. What has this done to the market? Amul is
the market leader in this frozen category with a 27 per cent share. It is
followed by Kwality-Wall's at 8 per cent, Vadilal and Mother Dairy,
Delhi at 7 per cent each with Dinshaw and Arun each having a 4 per cent
share of the market. The rest of the cone is filled up by regional brands.
The ice-cream mix was completely different two years ago with both
Amul and Kwality Wall's running almost neck-to-neck. But, Amul's lowpriced offerings were something that HLL couldn't take on for long. And
a couple of years ago, HLL abandoned the masses to chase value shares in
the Rs 2,000 crore (Rs 20 billion) ice-cream market.Of this, the organized
sector which is growing at 20 per cent per annum, accounts for only Rs
200 crore (Rs 2 billion).Now, look at what the strategy change has done to
ice- cream volumes for both HLL and Amul over the years. During the
last five years, HLL's ice-box was filled with acquisitions. On its icecream shopping spree, it picked up Kwality from the Ghais, Cadbury's
Dollop's and Milk Food combined with their very own Wall's brand.
Eventually, most of the brands were phased out and Kwality Wall's
emerged as the mother brand. In 1997, HLL churned out 24.60 million
litres of ice-cream that resulted in sales of Rs 152.63 crore (Rs 1.526
billion). In comparison, Amul's 4 million litre ice-cream box notched up a
turnover of Rs 27.40 crore (Rs 274 million). In 2001, while HLL's
volumes were stagnant, its sales were marginally up at Rs 156.39 crore
(Rs 1.563 billion).In the same period, Amul's Rs 115.01 crore (Rs 1.150
billion) sales were up more than four-fold to touch 17.80 million liters. In
calendar 2002, with HLL deciding to concentrate only on the premium
segment, its volumes halved to 10 million litres which resulted in sales
worth only Rs 107.25 crore (Rs 1.072 billion).Last fiscal, it sold 8.60
101

million litres of ice-cream and earned Rs 93 crore (Rs 930

million).During the same time Amul was selling 27 million litres with Rs
160 crore (Rs 1.60 billion) sales.
Now look at the other competitors. The National Dairy Development
Board's Mother Dairy is available only in the north.
Amul entered the Delhi market last year. Vadilal is largely a Gujarat
brand while the rest of the players each take a lick off the regional
markets. Or take the multinationals. Already, the $600-million Iowabased Wells Dairy Inc-owned Blue Bunny ice-cream launched early this
millennium has melted. Distributed and marketed in India by Sno Shack
Frozen Foods Pvt Ltd, it pulled out citing reasons like high excise
structure and low volumes. Even the Allied Domecq-promoted Baskin
Robbins has been in a restructuring mode for the past five years. First it
shrunk the size of its outlets, then it slashed prices and finally halved its
network. Today a Baskin Robbins outlet has become a rarity.No wonder
then, with such casualties Amul is going all out to grab the market.
Although Amul is known for its lackluster supplies, it is seeking more
visibility. "Now that Amul has achieved critical mass and emerged as a
market leader, we are now embarking on increasing consumption," says R
S Sodhi, general manager GCMMF.He knows there is enough scope for
that even though Indians aren't eating that much ice-cream. "Price has
been the main hindrance," says a multinational player.The per capita
consumption of ice-creams in India is a paltry 250 ml per annum while
the average global consumption is 2 litres. Even countries like Sri Lanka
and Pakistan consume much more than India. That's why, like Kwality
Wall's, Amul too wants to take its frozen and ambient platter on the road
102

through push carts and smaller outlets. It plans to supply freezers to

bakeries and chemists to mom-and-pop shops and even STD booths.At
the same time, GCMMF is investing around Rs 120 crore (Rs 1.20
billion) over the next two years to expand capacity from 1.1 million litres
a day to 1.8 million a day.To build a national presence, GCMMF has
bought an ice-cream manufacturing unit in Nagpur. By installing a dairy
unit on the premises, it plans to extend its milk supply to states like
Maharashtra, Rajasthan and Madhya Pradesh.Then, with the NDDB
entering into joint ventures with state co-operatives to market their milk
and milk products, GCMMF too is doing the same. There are also new
offerings. In the last one year, it introduced the largest volume cone in the
country. There's Santra mantra, an orange ice-cream coupled with other
low fat and vitamin-packed offerings for children. All this is likely to
push up volumes to 34 million litres with value sales almost doubling.
Even HLL has been trying hard to create excitement around its brands. Its
Kwality Wall's Max, for children, was relaunched with offerings, like
Rainbow and Twister, supported by a new look Max lion.The last festive
season, it introduced Vanilla Surprise to distinguish from the low-priced
commodity vanilla products, and a range of new sundaes.All these
offering are no doubt welcome in the sweltering heat. But as a marketing
consultant put it: "With everyone on a health binge, it would be
challenging for players to increase consumption."Renowned for
marketing milk and milk products under the brands of Sagar and
Amul, Gujarat Cooperative Milk Marketing Federation (GCMMF), has
announced today its Rs. 8005 crores record sales. In the 36th Annual
General Meeting of the Federation, the apex body results of the dairy
cooperatives in Gujarat were just announced today.GCMMF Chariman
103

Parthibhai G. Bhatol, informed, while commenting on the results, that last

year, they turnover was Rs 67 billion and their Federation filed a quantum
growth of 19.3 percent to accomplish Rs 80 billion or 8005 crores.He said
that the Federation justifies its leadership in the milk business by attaining
the pouch more than 21% sales growth in pouch milk category and 32%
in value terms from existing markets. Theyve reached the number 1
status in New Delhis pouch milk sales this year. And, Amul milk, with
this achievement, emerges as the largest selling brand of milk in all major
metro markets of Mumbai, Ahmedabad, Delhi and Kolkata.Concerning
about Amuls retail experiment, Bhatol said that the Federation has
produced 5,000 outlest which exclusively sell huge range of Amul
products and 2,000 of those have been added during the recent year that
speaks volumes about the scales quantum and speed with which the
expansion has been covered with. It is unconceivable for any competitor
to produce such substantial network of exclusive outlets. Bhatol
commented regarding the exports that theyve been able to keep and
toughen their presence in the markets of consumer pack export and also
this year, theyve reached Rs 100 core in foreign exchange profits and its
the 5th time by now that theyve been able to reach this figure.Shri Bhatol
said, about the novel concept of the efforts of the Federation in controlling
global warming through tree plantation, that during the 3 years, their
members have already planted more than 155 trees and showed their
dedication towards contributing and preserving towards the development
of the environment. And for this one, theyve received Good Greeen
Governance award from Srishti for 3 consecutive eyar already from 2007
until 2009.Amul received the International Dairy Federation Award for
the best environmental initiative during the 4th Global Dairy Conference
104

which was held last April 28, 2010 at the Salburg Congress Centre,
Salsburg, Australia.Parthibhai said that their 29 milk lakh milk producers
in more than 14,000 villages, have already planted about one crore sapling

105

RESEARCH METHODOLOGY OF THE STUDY

sample survey method
a)sample size:-20
b)sample group:-retailer and household

QUESTIONNAIRE SAMPLE FOR HOUSEHOLD

AMUL
NAME:.

DATE:

(1) Are you using Amul product

(a) Yes (b) no
(2) Which product you are using?
(a)milk

(b)butter

(c)ice-cream

(d) others ?

(3) What is your daily consumption of butter?

(a) Below 100gm

(b)100-200gm

(c)more than 200g

(4) Which milk you are using?

(a)milk powder

(b)liquid milk

(5) What is your daily milk consumption?

(a) lit. (b) 1 lit. (c) 2-4 lit.

(d) more than 4 lit.

(6) What is your consumption of cheese?

(a) Below 100gm.

(b)100-200gm.
106

(c)more than 200gm.

(7) What is your daily consumption of Ghee?

(a) Below 100gm

(b)100-200gm

(c)more than 200gm

(8) what is your daily consumption of paneer?

(a)100gm

(b)200-300gm

(c)more than 300gm

(9) How much chocolate you are using?

(a) Below 100gm

(b)100-200gm

(c)more than 200gm

(10)How much do you consume fresh cream?

(a) Below 100gm

(b)100-200gm

(c)more than 200gm

(11) Would u like to prefer other brand instead of Amul?

(a) yes

(b) no

(c) may be

(12) What you think about product availability of Amul?

(a) 20%

(b) 40%

(C) 60% (d) more than 80%

SUGGESTION OR COMMENT:

107

QUESTIONNAIRE SAMPLE FOR RETAILER

Shop no:AMUL
NAME:.

DATE:

(1) What is your daily selling of butter?

(a) Below1kg

(b)1-2kg

(c)2-4kg

(d)more than4kg

(2) What is your daily liquid milk selling?

(a) Below20-30 lit. (b)30-40 lit. (c)40-50lit. (d)more than 50lit
(3) What is your daily powder milk selling?
(a) Below 5 kg

(b) 5-10kg. (c) 10-15kg.

(d) more than15kg.

(4) What is your daily selling of cheese?

(a) Below1kgm.

(b)1-2kg. (c)2-4kg. (d)more than 4kg.

(5) What is your daily selling of Ghee?

(a)1- 2kgm

(b)2-4kg (c)4-6kg

(d)more than 6kg

(6) What is your daily selling of paneer?

(a)2-4kg

(b)4-6kg

(c)6-8kg
108

(d)more than10kg

(7) How much chocolate you are selling on the daily basis?
(a) Below100gm

(b)100-200gm

(c)more than 200gm

(8)what is your daily selling of buttermilk/lassi?

(a) Below 2-4lit.

(b)4lit.-6lit.

(c)6-8lt

(d)more than10lit

(9)what is your daily selling of curd?

(a)below1kg

(b)1-2kg

(c)2-3kg (d)more than 3 kg.

(10)what is your daily selling of ice-cream?

(a)below 1 kg

(b)1-2kg

(c)2-3kg

SUGGESTION OR COMMENT:

109

(d)more than 3 kg.