COMPARATIVE ANALYSIS OF AMUL AND MOTEHER DAIRY

PRODUCTS

INTRODUCTION

INDIAN DAIRY INDUSTRY

The world's biggest dairy producing country is growing fast and looking to become an export
power house despite major quality problems. India is the world's largest milk producing country
and is growing fast, with an eye toward becoming a major dairy exporter. Indian dairy is
emerging as sunrise industry. India represents one of the world’s largest and fast growing
markets for milk and other products due to increasing disposable incomes among 275 million
middle class. The country is been changed after the end of 2000 A.D. as the world's number one
in milk production. The reason being that, it is rural based, land saving and gender natural
composed to the drop production to offers more favourable opportunities of employment. Dairy
farming provides substantial source of the landless labor as well as marginal farmer. During the
last 25 years, we have moved from a situation of scarcity and rationing of milk to a scenario in
which milk has been increasing at a rate faster than the rate of increasing of population. There is
large and rising domestic demand both for milk and milk products with an expanding middle
income group, there exist a market for value added products, especially in the cities and towns.
There is also the possibility and covering surplus into conventional milk products like casein is
not only import to developed countries.

AMUL

In the year 1946 the first milk union was established. This union was started
with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946
the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’
UNION. This union selected the brand name AMUL in 1955. The brand name Amul means
“AMULYA”. This word derived from the Sanskrit word “AMULYA” which means
“PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul
products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder,
Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, AmulShrikhand, Amul Ice cream,
Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale
is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products
sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of
indigenous technology, of the marketing savvy of a farmers' organization. And have a proven
model for dairy development (Generally known as “ANAND PATTERN”). In the early 40’s, the
main sources of earning for the farmers of Kaira district were farming and selling of milk. That
time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy
limited, which was a privately owned company and held monopoly over the supply of milk at
Bombay from the Kaira district. This system leads to exploitation of poor and illiterates’ farmers
by the private traders. The traders used to beside the prices of milk and the farmers were forced to
accept it without uttering a single word.
However, when the exploitation became intolerable, the farmers were frustrated. They
collectively appealed to SardarVallabhbhai Patel, who was a leading activist in the freedom
movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-
operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri
Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha
village near Anand, on 4th January 1946. He advised the farmers to form a society for collection
of the milk. These village societies would collect the milk themselves and would decide the prices
at which they can sell the milk. The district union was also form to collect the milk from such
village co-operative societies and to sell them. It was also resolved that the Government should be
asked to buy milk from the union However; the govt. did not seem to help farmers by any means.
It gave the negative response by turning down the demand for the milk. To respond to this action
of govt., the farmers of Kaira district went on a milk strike. For 15 whole days not a single drop
of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The
milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the
condition, he decided to fulfill the farmers demand.
Thus their cooperative unions were forced at the village and district level to collect and sell
milk on a cooperative basis, without the intervention of Government. Mr. VergheseKurien
showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who
lead the farmers in forming the Co-operative unions at the village level. The Kaira district milk
producers union was thus established in ANAND and was registered formally on 14th December
1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly
resolved to sell the milk under the brand name AMUL. At the initial stage only 250 liters of milk
was collected every day. But with the growing awareness of the benefits of the cooperativeness,
the collection of milk increased. Today Amul collect 11 lakhs liters of milk every day. Since milk
was a perishable commodity it becomes difficult to preserve milk flora longer period. Besides
when the milk was to be collected from the far places, there was a fear of spoiling of milk. To
overcome this problem the union thought out to develop the chilling unit at various junctions,
which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today
Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1073
societies.
With the financial help from UNICEF, assistance from the govt. of New Zealand under
the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was
planned. Dr.RajendraPrasad, the president of India laid the foundation on November 15, 1954.
Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on
November 20, 1955.

AMUL COMPANY PROFILE

Amul is an Indian cooperative dairy company, based at Anand in the state of Gujarat.
Formed in 1956, it is a cooperative brand managed by a cooperative body, the Gujarat Co-
operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.6
million milk producers in Gujarat.
Amul spurred India’s White Revolution, which made the country the world's largest producer of
milk and milk products. Amul was spearheaded by Tribhuvandas patel under the guidance of
Sardar Vallabhbhai Patel. As a result, Kaira District Milk Union Limited was born in 1946.
Tribhuvandas became the founding chairman of the organization and led it until his death. He
hired Dr Vergese Kurein in 1949. He convinced Dr. Kurien to stay and help with the mission.
Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited with
the success of Amul's marketing. Amul has ventured into markets overseas. Amul products have
been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee,
Amul spray, Amul Cheese, Amul Munch Times, Amul Shrikhand, Amul Ice Cream, Amul Milk,
Amul Milk Drinks and Amulya have made Amul a leading food brand in India. Today Amul is a
symbol of many things like of the high quality products sold at reasonable prices, of the genesis
of a vast co-operative network, of the triumph of indigenous technology of the marketing savvy
of a farmer’s organization. And have a proven model for dairy development.

HISTORY
Over seven decades ago the life of a farmer in Kaira was very much like that of farmers anywhere
else in India. His income was derived almost entirely from seasonal crops. Many poor farmers
faced starvation during off-seasons. Their income from milch buffaloes was undependable. The
milk marketing system was controlled by contractors and middlemen. As milk is perishable,
farmers were compelled to sell their milk for whatever they were offered. Often they had to sell
cream and ghee at a throwaway price. They were in general illiterate. But they could see that the
system under which contractors could buy their produce at a low price and arrange to sell it at huge
profits was just not fair. This became more noticeable when the Government of Bombay started
the Bombay Milk Scheme in 1945. Milk had to be transported 427 kilometres, from Anand to
Bombay. This could be done only if milk was pasteurized in Anand. After preliminary trials, the
Government of Bombay entered into an agreement with Polsons Limited to supply milk from
Anand to Bombay on a regular basis. The arrangement was highly satisfactory to all concerned –
except the farmers. The Government found it profitable; Polsons kept a good margin. Milk
contractors took the biggest cut. No one had taken the trouble to fix the price of milk to be paid to
the producers. Thus under the Bombay Milk Scheme the farmers of Kaira District were no better
off ever before. They were still at the mercy of milk contractors. They had to sell their milk at a
price the contractors fixed. The discontent of the farmers grew. They went in deputation to Sardar
Patel, who had advocated farmers’ co-operatives as early as 1942 Sardar Patel reiterated his advice
that they should market their milk through a co-operative society of their own. This co-operative
should have its own pasteurization plant. His advice was that the farmers should demand
permission to set up such a co-operative. If their demand was rejected, they should refuse to sell
their milk to middlemen. Sardar Patel pointed out that in undertaking such a strike there should be
some losses to the farmers as they would not be able to sell their milk for some time. If they were
prepared to put up with the loss, he was prepared to lead them. The farmers’ deputation readily
accepted his proposal.
Sardar then sent his trusted deputy, Mr. Morarjibhai Desai, to Kaira District to organize milk co-
operative – and a milk strike if necessary. Mr. Desai held a meeting in Samarkha village on January
4, 1946. It was resolved that milk producers’ co-operative societies should be organized in each
village of Kaira District to collect milk from their member-farmers. All the milk societies would
federate into a Union which would own milk processing facilities. The Government should
undertake to buy milk from the Union. If this wasn’t done, the farmers would refuse to sell milk
to any milk contractor in Kaira District. The Government turned down the demand. The farmers
called a ‘milk strike’. It lasted 15 days. Not a drop of milk was sold to the milk merchants. No
milk reached Bombay from Anand, and the Bombay Milk Scheme almost collapsed. After 15 days
the milk commissioner of Bombay, an Englishman, and his deputy visited Anand, assessed the
situation and accepted the farmers’ demand. This marked the beginning of the Kaira District Co-
operative Milk Producers’ Union Limited, Anand. It was formally registered on December 14,
1946. Its objective was to provide proper marketing facilities for the milk producers of the district.
The Union began pasteurizing milk in June 1948, for the Bombay Milk Scheme – just a handful
of farmers in two village co-operative societies producing about 250 litres a day. The only remedy
was to set up a plant to process the extra milk into products like butter and milk powder. The logic
of this step was readily accepted by the Government of Bombay and the Government of India,
except for a few doubting Thomases. The government of India helped the Union to get financial
help from UNICEF and assistance from the Government of New Zealand under the Colombo Plan.
Technical aid was provided by F.A.O. A Rs.50 – lakh factory to process milk powder and butter
was blueprinted. Its foundation stone was laid by the then President of India the late Dr. Rajendra
Prasad on November 15, 1954. The project was completed by October 31, 1955, on which day the
late Pandit Jawaharlal Nehru, the then Prime Minister of India, declared it open. The new dairy
provided a further fillip to the co-operative movement among milk producers. The union was thus
enabled to organize more village co-operative societies and to handle more and more milk each
year. This event also brought a breakthrough in dairy technology as the products were made
processing buffalo milk for the first time in the world. Kaira Union introduced the brand “Amul”
for marketing its product range. The word “Amul” is derived from Sanskrit word ‘Amulya’ which
means ‘priceless’ or precious’. In the subsequent years Amul made cheese and baby food on a
large commercial scale again processing buffalo milk creating a history in the world. 1964 was the
turning point in the history of dairy development programme in India. Late Shri Lal Bahadur
Shastri, the then Prime Minister of India who visited Anand on 31s October for inauguration of
Amul’s Cattle Feed Plant, having spent a night with farmers of Kaira and experiencing the success
wished and expressed to Mr Kurien, then the General Manager of Amul that replicating Amul
model throughout our country will bring a great change in the socio-economic conditions of the
people. In order to bring this dream into reality, 1965 The National Dairy Development Board
(NDDB) was established at Anand and by 1969-70 NDDB came out with the dairy development
programme for India popularly known as “Operation Flood” or “White Revolution”. The
Operation Flood programme, even today, stands to be the largest dairy development programme
ever drawn in the world. This saw Amul as model and this model is often referred in the history
of White Revolution as “Anand Pattern”. Replication of “Anand Pattern” has helped India to
emerge as the largest milk producing nation in the world.
PRODUCT PORTFOLIO :
Bread spread Amul Butter, Amul Lite, Delicious Table
Margarine

Cheese range Amul Pasteurized Processed Cheddar

Cheese, Amul Processed Cheese Spread,
Amul Pizza (Mozzarella) Cheese, Amul
Emmental Cheese, Amul Gouda Cheese,
Amul Malai Paneer (cottage cheese), Utterly
Delicious Pizza

Fresh milk Amul Gold Full Cream Milk 6% fat, Amul

Shakti Standardised Milk 4.5% Fat, Amul
Taaza Toned Milk 3% fat, Amul Slim &
Trim, Amul Cow Milk
 Milk drink Amul Kool Flavored Milk, Amul Kool Cafe,
Amul Kool Koko,Amul Kool Milk Shake,
Amul Kool Chocolate Milk,Nutramul Energy
Drink

Curd products Amul Milk (fresh curd), Amul Masti Spiced

Butter Milk, Amul Lassee, Amul Flaavyo
Yoghurt

Pure ghee Amul Pure Ghee, Sagar Pure Ghee

UTH Milk range Amul Gold 4.5% fat Milk, Amul Shakti 3%
fat Milk, Amul Taaza 1.5% fat Milk, Amul
Lite Slim-n-Trim Milk, Amul Fresh Cream

Milk powder Amul Full Cream Milk Powder, Amulya

Dairy Whitener, Sagar Skimmed Milk
Powder

VISION& MISSION
Amul’s vision is to provide more and more satisfaction to the farmers, employees and
distributers.
MISSION
“We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavour to satisfy the
taste and nutritional requirements of the customers of the world, through excellence in marketing
by our committed team. Through co-operative networking, we are committed to offering quality
products that provide best value for money.”

QUALITY INITIATIVES
The initiation of Total Quality Management (TQM) way back in 1994 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. Realizing that with
emerging competition, doing business would become more exciting yet extremely competitive
which would require at time not only a whole set of new skills and competencies but quick
adaptability to change without much stress or turbulence. 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.
From the strength of Total Quality Management initiative Amul went on to implement Quality
Management System of International Standard. Amul has been the first dairy in India to get
accredited with certification of ISO 2200:2005 & ISO 9001 for its operations and plants. Further
Amul has set an example that village Dairy Co-operative Societies could also achieve this
milestone as these societies are accredited with ISO 9001:2000 – a remarkable achievement in
the history of India. Amul Plants are certified by Agricultural and Processed Food Exports
Development Authority (APEDA) for export of dairy products to international markets. Gujarat
Co-operative Milk Marketing Federation (GCMMF) which markets and exports dairy products
under the brand of “Amul” has bagged award 11th time for excellent performance in exports of
dairy products from APEDA - 2008-09, IMC Ramkrishna Bajaj National Quality Award – 2003,
"Best Best of All" Rajiv Gandhi National Quality Award - 1999, The International Dairy
Federation Marketing Award (2007) for Amul pro-biotic ice-cream launch.
Amul Dairy has been recipient of countless awards for its outstanding efforts in processing and
providing quality products to consumers thereby enhanced income in to the hands of dairy
farmers. Some of these awards are the Best Productivity Performance Awards for three
consecutive years from 1985 and Sustained productivity Performance Award in 1988-89 from
National Productivity Council, Government of India, Indian Merchants’ Chamber Award - for
Outstanding Performance in the field of R&D of Food Processing Industries Based on
Agricultural Products -1988, again Best Productivity Performance Awards 1994-99 from
National productivity Council, G. D. Birla International Award - Outstanding Contribution to
Rural Upliftment , Sahkari Vikas Ratna Award – awarded on the occasion of Indian Co-
operative Centenary Celebration for the outstanding contributions in the field of Dairy Co-
operative movement in Asia – 2005, National Energy Conservation Award – 2009 from Ministry
of Power, Government of India.

PRODUCTION PROCESS:
Collection of Raw Milk: Raw milk is collected from different co-operatives of Gujarat. About
12, 22,000 liters of raw milk is collected per day. Before this milk is sent to the laboratory for
testing the FAT & SNF proportion, the milk is separated from the raw milk. The milk is taken
from the chilling centers to Collection of Raw Milk Raw milk is collected from different co-
operatives of Gujarat. About 12, 22,000 liters of raw milk is collected per day. Before this milk
is sent to the laboratory for testing the FAT & SNF proportion.

Testing of raw milk: After collecting the samples of milk they are taken to the laboratory where
two types of test are conducted:

1). ELECTRONIC MILK TEST before pasteurizing the milk the samples are taken to the
laboratory. In the laboratory with the help of machine called electronic milk tester, the proportion
of SNF & FAT is checked with phosphate solution. When the color of the milk becomes yellow,
it is sent for pasteurization.

2). METHYLINE BLUE REDUCTION TEST This test is conducted for checking for how long
the milk will remain fresh. To check this, 10 ml of milk is taken and 1 ml of METHYL solution
is added to it. It is then kept under water at 57 degree Celsius. After one hour if the solution
losses its color then it is called raw milk. If the solution remains the same even after 5 hours than
it is considered fresh milk, which remains constant for a long period of time the dairy fixes the
proportion of SNF & FAT. After laboratory gives green signal and conforming the raw milk at
reception dock is brought into the house connected with pump is sent to the milk processing
plant. This is then chilled below 4 degree Celsius and then stored in the milk silos. After that
milk is processed which has two steps: Pasteurizing and Standardizing?

Pasteurizing and standardizing: To pasteurize the milk means to kill the germs in the milk by a
particular method which was invented by a scientist called JAMES PASTEUR and so the name
pasteurization. In the pasteurization method the milk is first heated at 72 degree c to 76 degree c
for 15 seconds and then it is immediately cooled below 4 degree c by this method they destroy
the pathogenic bacteria present in the raw milk. But if the right degree of temperature is not
provided there are chances that milk might contain germs. After this process some milk goes to
separator machine and remaining is proportionately sent for standardization.
Standardization process bifurcates the milk in 3 categories varying according to the SNF & FAT
contents. The equipment named OSTA. Auto Standardization Adjusts the FAT directly. The
computer is just ordered whether gold or standard milk is to be rationed and the same will be
received with appropriate contents.

SEPARATION PROCESS: Separation Process Separator machine separates two kinds of

products, skimmed milk and cream, through channels. There are 100 disks fixed in separator
machine, which revolve at 5000 rpm (revolution per minute). It is taken to the tanks, which has
the capacity of 20000 liters. Whenever the milk is needed from the tank, it is tested in the laboratory
and the deficit proportion FAT is added by mixing cream. This process continues for 24 hours.

QUALITY CHECK: Pasteurized milk is sent to the quality Assurance laboratory of the dairy
plant. Within 14 seconds the FAT & SNF proportion is received regarding 30 lack liters of milk.
The total investment put into the lab by the dairy plant is Rs. 6 crores. The laboratory only checks
and analyses the powder, milk and ghee. There is a separate ice cream analyzing laboratory.5).
Packaging Process After the milk is sent for the packaging to the milk packing station in the dairy
plant. In the milk packaging stations there are huge pipelines and behind them there is polyfil
machine from which the material to pack milk comes out. From each of these 12 machines 100
pouches are packed in one single minute.

STORAGE: Then the milk is sent to the cold storage of the dairy where the milk is stored until it
is dispatched. Here the milk is stored is temperature ranging from 5 degree c to 10 degree c, it is
maintained with the help of exhaust fans having silicon chips. About 40000 liters of milk is
dispatched from the cold storage of the dairy plant every day. The damaged pouches are kept aside
and the milk is once again put to the storage tank.
LOGO OF THE COMPANY
Logo of AMUL is a ring of four hands, which are co-coordinated each other. The actual meaning
of this symbol is co-ordination of hand of different people by whom this union is now at top.
FIRST HAND: Is for farmers (producers), without whom the organization would not be existed.
Farmers are the inspiration of the AMUL-taste of India.

SECOND HAND: Is for the representatives of processors by whom the raw milk processed in to
different finished products.

THIRD HAND: Is for marketers without whom the products would not been able to reach to the
customers.

FOURTH HAND: Is for customers without whom the organization could not carry on because
they are the people who consume the products.

NATURE OF THE COMPANY

The name Amul itself indicates that it is a co-operative union. There are various types of co-
operative society which are as under:

(1) Producers or manufactures co-operative society

(2) Consumer co-operative society

(3) Housing co-operative society

(4) Co-operative farming

(5) Co-operative credit solvency

This firm is the firm of association in which person combine together

toform a society for the purpose of manufacturing goods. Although it is democratic management
of industrial production. This is useful where large capital is neither necessary nor much
technical and expert knowledge of the management is needed. In India some of the Sugar mill
and ginning mills are running under this formation. Dairies are also adopting co-operating
format. Amul is the producer’s co-operative society.

OBJECTIVES OF AMUL DAIRY

Every organization is set up with some objectives to fulfil. The objectives may be social,
economic, national and human.

Amul was also set up with some basic objectives to fulfil including all social, economic, national
and human objectives.
Following are the objectives of Amul:

Social Objectives:
Amul has an objective to supply goods with best of quality and purity at very reasonable rates. It
helped to reduce malpractices carried out by merchants and milk traders .Its White revolution
made a huge contribution to the alleviation of poverty and famine levels from levels that were
dangerously low.

National Objectives:
Amul has helped India to increase its production of milk by 40 million metric tonnes and become
the country with the most milk production all over the world.

i) To increase the foreign exchange of the country by exporting the milk products .To produce
products according to national priorities.

ii) To help improve the health and nutrition of many within the country.

Human Objectives:
i) To help the villagers associated with Amul to sell their milk products

ii) To provide good working conditions to the employees

iii) To provide growth opportunities to the backward and unprivileged villagers

iv) To provide job satisfaction to the employees

Economic Objectives:
i) Expansion of distribution network.

ii) Creative and Unique marketing strategies.

iii) Optimum utilization of available resources.

iv) Creation and expansion of loyal customer base.

Even though the basic objective is not to make profit, some profits are still to be made so as to
survive and expand.
MOTHER DAIRY
Mother Dairy was commissioned in 1974 and is a wholly owned subsidiary of the National Dairy
Development Board (NDDB). It was an initiative under Operation Flood, the world's biggest
dairy development program launched to make India a milk sufficient nation. Over the years,
Mother Dairy has contributed significantly in achieving this objective through a series of
innovations and programs. Today, Mother Dairy manufactures markets & sells milk and milk
products including cultured products, ice creams, paneer and ghee under the Mother Dairy brand.
The Company also has a diversified portfolio with products in edible oils, fruits & vegetables,
frozen vegetables, pulses, processed food like fruit juices, jams, etc. to meet the daily
requirements of every household. The Company over the last many years has created a market
leadership position for itself in branded milk segment in Delhi & NCR through a robust network
of its booth and retail channels. It has also expanded its reach to other regions in North, South,
East and West with its offering of Milk and Milk products pegging it among the few companies
to own such a vast channel of distribution in India.
Brand Mother Dairy sources a significant part of its requirement of liquid milk from dairy
cooperatives and village level farmer centric organizations. The Company is committed to uphold
institutional structures that empower milk producers and farmers through processes that are
equitable. A significant portion of its income is ploughed back into the value chain to support
and maintain the system. Safal, F&V arm of Mother Dairy was the first Company to organize the
fruits and vegetables business in India. Today Safal is the market leader in organized fruit &
vegetable retail business in Delhi NCR and operates the largest number of F&V Stores in Delhi
NCR and has significant presence in Bangalore. Safal was also the first brand in India to launch
frozen vegetable in mid 90s. Over the years, the brand has gained significant customer support
and has become a household brand with market leadership and presence across the country.
Safal also has a state of the art plant in Bangalore which produces and sells around 23000 MT of
aseptic fruit pulp & concentrate annually and supplies to noteworthy companies in food
processing space like Coca Cola, Pepsi, Unilever, Nestle etc. Safal also has a prominent presence
across 40 countries viz., USA; Mother Dairy is also present into edible oils segment under the
brand name Dhara which was launched under the 'Operation Golden Flow' program of NDDB as
a market intervention program to address a larger cause of the Indian farmers & consumers. Trust,
Purity and Taste are the hallmarks of Dhara cooking oil. Europe, Russia, Middle East, Asia and
Africa and exports Fresh Fruits & Vegetables (Grapes, Banana, Gherkin, Onion, etc.), Fruit Pulp
& Concentrate, Frozen Fruits & Vegetables, etc. It has been a constant endeavour at Mother Dairy
to stay connected with its stakeholders. The corporate tag line of the latest brand campaign -
Happy Food Happy People - captures the essence of what the Company stands for. Mother Dairy
is committed to bring happiness to every individual with its range offering pure, hygienic and
adulteration-free high-quality products which has been the strength, differentiator and heritage
of the brand over years. Mother Dairy has been recognized as the 2nd best in the FMCG Industry
and has also been ranked at 39th amongst India's Top 100 Best Companies to Work, in a study
by Great Place To Work Institute in association with the Economic Times for their annual 2015
survey. The corresponding ranking in 2014 was 62nd amongst the list of Top 100. In the survey,
the brand also witnessed a significant move its Trust Index from 70% to 83% in 2015.

MOTHER DAIRY COMPANY PROFILE

‘Mother Dairy’ is the largest liquid milk brand in Asia. It started its operations in 1974 under
the Operation Flood programme of the National Dairy Development Board. Operation Flood is
one of the largest dairy development papers in the world. Mother Diary, Delhi is IS/ISO- 9002 &
IS-15000 (HACCP) certified organization. ‘Mother Dairy’ is the single largest brand of milk in
Delhi, India as well as in Asia, marketing about 2.8 million liters of milk per day. Mother Dairy
commands 66% market share in the organized sector in and around Delhi, primarily because of
consistent quality and service reliability. In addition to toned milk through Bulk vending, Mother
Dairy also markets full cream milk, standardized milk, toned milk, double toned milk and
Skimmed milk (light) in poly bags. Mother Dairy, Delhi is an IS/ISO-9001:2000 and Hazard
Analysis Critical Control Points (HACCP) and IS-14001:1996 Environment Management
System (EMS) Certified organization. Mother Dairy was the first industry in country to
implement ISO-14031(Environment Performance Evaluation) paper. This provides assurance to
the consumer in respect of Quality and Safety of products manufactured and marketed by Mother
Dairy.

The National Dairy Development Board (NDDB) commissioned Mother Dairy in the first phase
of Operation Flood in 1974. Considering the success of Dairy industry NDDB established Fruit
& Vegetable Paper in Delhi in 1988 with "SAFAL" as its umbrella brand. With a view to
separating the commercial activities from developmental activities, the NDDB merged Mother
Dairy and the Fruit & Vegetable paper into a wholly owned company named Mother Dairy Fruit
&Vegetable Ltd (MDFVL) in April 2000. This becomes the holding company of Mother Dairy
India Ltd (MDIL)- a marketing company and Mother Dairy Foods Processing Ltd (MDFPL) a
processing company. The company is a highly trusted household name for its wide range of milk
products like Milk, Flavored Milk, Ice-Cream, Dahi, Lassi, Table Butter, Dairy Whitener, Ghee
etc.

HISTORY
Mother dairy was set up in 1974 under the operation flood programming. It is know a wholly
owned company of the National Dairy Development Board (NDDB). Mother markets and sells
dairy products under the mother dairy brand like liquid milk, dahi, ice cream, cheese and butter. It
is one of the largest liquid plants in Asia. Completely automate all function of the milk processing
area ensures high quality, reliability, and safety. Mother Dairy sources its entire requirement of
liquid milk from dairy cooperatives. Similarly, Mother Dairy sources fruits and vegetables from
farmers/growers associations.

Mother Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi,
Mumbai, Saurashtra and Hyderabad. Mother Dairy Milk has a market share of 66% in the branded
sector in Delhi where it sells 2.3 million liters of milk daily and undertakes its marketing operations
through around 14,000 retail outlets and 845 exclusive outlets of Mother Dairy.

BRANDS AND SUSIDIARIES

The company sells milk products under the "Mother Dairy" brand.
Safal is the fruit and vegetable arm of Mother Dairy. It operates a large number of fruit and vegetable
stores in the NCR, and also has a significant presence in Bengaluru. Safal also has a plant in Bengaluru,
which produces around 23,000 MT of aseptic fruit pulp and concentrates annually. It supplies to food
processing companies such as Coca-Cola, Pepsi, Unilever, Nestle, etc. Safal also has a presence across 40
countries viz., USA, Europe, Russia, Middle East, Asia and Africa and exports Fresh Fruits & Vegetables
(Grapes, Banana, Gherkin, Onion, etc.), Fruit Pulp & Concentrate, Frozen Fruits & Vegetables, etc .Mother
Dairy is also present into edible oils segment under the brand name Dhara, which was launched under
the Operation Golden Flow program of NDDB

VISION & MISSION

Vision - Provide quality food and beverages to consumers at affordable prices while ensuring fair
returns to the producers.

Mission - Mother Dairy’s heritage is intrinsically linked to the cooperative movement in India.
With determination & pride we will continue to serve our farmers, rural India & our consumers.
Our values reflect who we are & what we firmly believe in.

OBJECTIVES OF MOTHER DAIRY

The main objectives of Mother Dairy are to promote suitable measures to give power to farmers
and milk producers through methods that are equitable and also to make sure that farmers and milk
producers receive fair market prices for their products. Mother Dairy has ensured that the quality
of its products is of high standards for it has adopted world class standard microprocessor
technology for the processing of milk. Mother Dairy in Delhi has received many certifications
such as ISO 14001:2004 (Environmental Management Systems), ISO 9001:2000 (Quality
Management Systems) and 2002 RvA (Food Safety Management Systems). Mother Dairy markets
over 2.2 million litres of milk each day in Mumbai, Hyderabad, Delhi, parts of Haryana and Uttar
Pradesh. The company has a market share of around 66% in the region of Delhi where it takes up
marketing operations through over 10,000 retail outlets and sells around 2 million litres of milk
each day. The company launched Mother Dairy Ice Creams in 1995 and they are available in the
markets of Delhi, NCR, Mumbai, Kolkata, Rajasthan, Punjab and Uttar Pradesh. Mother Dairy has
a wide range of Dhara edible oils that are marketed all over the country in more than 200,000
outlets. The company also markets under the brand name Safal, a wide range of frozen and fresh
vegetables and fruits through over 20,000 outlets in different parts of the country.
QUALITY:
Mother Dairy is committed to deliver products which meet all regulatory, industrial, consumer
Quality and Food safety requirements to our valued consumers.
Our continuous efforts focused on building a sustainable “Quality and Food Safety Program”
across food chain, using state of the art processes and innovative technologies towards delivering
wide range of “Dairy and Food” products.
Our systems are designed to have process monitoring and controls at each stage of food chain
towards Continual Improvements. We, assure that our valued consumers are satisfied, each time
they experience our product.

We achieve this by,

● Implementing robust Mother Dairy Management System, which is an Internal System,
developed to meet the all Process Requirements based on National & International
Standards.
● Implementing International Management System Standards (ISO)
● Bench Marking, Best-In-Class requirements
● Process Optimization : Constantly working on latest innovative Technologies
● Capability Development across the Organization
● Auditing & Assessments : Mother Dairy has established a frame work for Auditing &
Assessments of Complete Food Chain
● Consumer Satisfaction

It is our endeavour to create a culture of “Total Quality” where continuous improvement of our
people, processes and products becomes a way of life. At Mother Dairy Innovation Centre, we
have a dedicated team of Scientists who are constantly collaborating international standards and
best practices for Quality & Food Safety in its products.

MILK PRODUCTION PROCESS

1. Raw Material Receiving Dock (The Process Flow of the Mother Dairy Raw): Raw Milk
Reception: Raw milk received through insulated road/rail tankers at a very low temperature thus
retaining the freshness of milk. The milk goes for more than 15 stringent quality tests before it is
accepted for the processing of milk. Milk achieved from individual producers is checked for all
basic quality parameters meeting the company specification and required norms at respective
collection and chilling centres. Milk is then supplied to the dairy units through insulated milk
tankers at 4 degree C.

2. Storage area- for milk storage tanks The main objective of storage tank is to provide an
improved form and operation of an interim milk-cooling storage; to provide an improved form and
arrangement of milk cooling storage tank within an insulated housing; to provide an improved
arrangement and operation of means for spraying ice water over the exterior walls of the milk
storage tank.

3. Clarification: The chilled milk from the silos goes to the clarifier after pre-heating. The clarifier
spins the milk at very high speed, removing all the dust particles that are invisible to naked eyes.

4. Standardization: Milk from different breeds of cow and buffalo may vary in its composition.
Hence, to make Milk uniform in composition, before supply to the market, it is standardized by
raising or lowering its fat and SNF percentage present in the milk to a desired level, so as to deliver
the milk to consumers as per prescribed norms of FSSAI.

5. Homogenization: In this process, the milk is processed at very high pressure during which the
large fat globules presently in milk are broken down into tiny droplets. The milk fat gets evenly
distributed in the milk and milk become whiter and thicker. Milk is homogenized for consumers
who do not like cream layer on top. Homogenization improves Palatability of milk and is easily
digestible.

6. Pasteurization: The milk is then pasteurized, named after Louis Pasteur, a French Scientist who
invented the process to use in wine. Pasteurization was first applied by Dr.Soxhiet of Germany.
This involves heating of milk to 72 degree Celsius for 15 second and then cooling it down to 4
degree Celsius. The process kills all pathogenic bacteria present in the milk making. It makes milk
safe for consumption. Pasteurization, unlike boiling does not affect the nutritional value of the
milk.

7. Dispatch in Insulated Tankers: “Milk Transfer” tanks are specially insulated stainless steel
tanks ensuring safe milk transportation. They guarantee stable temperature for long time periods,
are easily installed on vehicles of varying types and allow multiple shipments from different
producers. The quality and treatment of the metal construction and its washing system prevent the
entrapment of even the minute’s milk quantity, therefore avoiding the development of bacteria and
the deterioration of the transported milk.

PRODUCT PORTFOLIO
Milk
Mother Dairy maintains stringent measures to ensure the quality and purity of the milk provided
to its consumers. Each batch of incoming and outgoing milk is subjected to 21 quality tests
including presence of foreign matter and bacteriological tests. The quality of milk accepted and
dispatched meets certain predetermined standards. The milk goes through various processes such
as Clarification, Homogenization, Standardization and Pasteurization, to ensure that it is safe for
human consumption. Our motive for following such strict quality measures is to ensure that there
is no contamination while processing or packaging. Mother Dairy promises its consumers that it
will continue to produce products of the highest quality standard. Its Dairy products are processed
& packed in ISO certified plants & strict controls are exercised by quality assurance department
on all the plants. Most of our plants are certified for FOOD SAFETY MANAGEMENT SYSTEM.
Quality Assurance Laboratory at Mother Dairy Delhi is certified by National Accreditation Board
for Testing and Calibration Laboratory (NABL)-Department of Science and Technology,
Government of India. All the operations in our organization are manned by qualified & highly
experienced personnel.
We at Mother Dairy focus on motivated & hard working, well qualified & trained personnel in
front end as well as back end operations. The dedicated Field QA team ensures that the products
manufactured at the plant are handled properly once the products dispatched from manufacturing
units.

Fruit & Vegetable:

Quality of “Safal” Produce starts from the field itself. Mother Dairy Quality Assurance
professionals constantly provide technical support to Farmers during all stages of Supply chain
(e.g. harvesting, handling, transportation and storage).
We, at Mother Dairy Monitor and Control the produce quality during material receiving,
processing and finished product stage against Company Standards & Specifications. Our state of
the art Manufacturing Operations are certified for Quality Management System (ISO 9001: 2008)
and Food Safety Management System (ISO 22000: 2005). The Core purpose of “Safal” is to bring
Fresh, Frozen and Processed Fruit & Vegetable Quality products that form daily diet of the people.

Edible Oil:
Dhara uses sophisticated quality assurance instruments such as GLC, GCMS, HPLC, HPTLC,
Rancimat etc. to ensure that Dhara oils are 100 % pure. The unique packaging material used for
packing Dhara oil variants is food grade to ensure that the oil packed in it remains hygienic and
fresh.

OBJECTIVES OF THE STUDY:

● To perform the comparative analysis between Amul Milk and Mother Dairy Milk to
understand their marketing and positioning strategy
● To study the current market position of Amul Milk and Mother Dairy Milk
● To compare the marketing mix of Amul Milk and Mother Dairy Milk
● To determine the consumer preferences of Amul and Mother dairy products with the help
of some parameters -quality, taste, price, packing style etc.
● To identify various factors this motivates people to use Mother & Amul dairy products.

LITERATURE REVIEW
Amul has justified its undisputed leadership in foods business by creating 6000 Amul preferred
outlets in a record time which exclusively sell wide range of Amul products. This has been possible
due to strong brand equity and immense consumer support. Amul are now having ambitious plans
of creating 10,000 Amul parlours by 2012.Amul Parlours are successfully operating in more than
1400 towns at high streets, residential areas, Railway Stations, Bus Stations, Educational
Institutions and a whole lot of Centres of Excellence. Amul is one of the most successful Indian
business firms. It provides various milk products in which its main brand product Amul Butter is
also present. Amul begins with just little group of milk producing villagers and now become largest
milk producing cooperative society in India. It had started with two village cooperatives with 250
liters milk producing capacity and now it collects daily a 6.5 million (average) of milk from a very
large no of Indian villages. It has become a hope for poor villagers who were exploiting by
middlemen before the origin of Amul or Gujarat milk marketing federation or Kaira union. By
originated Amul got its first chairman Shri Tribhuvandas Patel who through his integrity had favor
of villagers and understands the needs of cooperative society. Through their interpersonal faith
and cooperation Amul got this success history besides facing various difficulties. Gujarat Milk
Marketing Federation is a cooperative society. It had done a very good job in milk marketing,
making way for poor villagers’ earnings. It not only provides effective returns to the farmers but
also take cares of customers interests. It serves for customer on the basis of Indian ethics. They
provide milk of better nutrients, better quality products regularly and help in meeting the country’s
need of daily milk requirements. Some of the articles on Amul are as follows:-

On 14 December 1946 the predecessor of the Gujarat Milk Marketing Federation, better known as

the AMUL dairy cooperative, was founded in Kaira (Gujarat state).

i) The daily milk collection was 247 litres.

ii) Anno 2005 the 2.4 million members/ dairy farmers supplied AMUL daily with 5.9 million litres

of milk.

In the 2003/04 financial year, the milk collection was up to 5.1 million litres per day, a rise of

some 15.2%. By contrast, the co-operative’s turnover rose by just 1.4% in the financial year

2004/05, bringing it to INR 29.22 billion or EUR 584 million. This growth is lower than expected

and due, believes Khanna, to the reduced milk supply in the latter months of 2004 and the poor

increase in the price of basic products in the early months of 2005.

According to Khanna, it is evident that AMUL is a co-operative operation without equal. The 2.4

million members/ dairy farmers in the state of Gujarat are grouped into 11,615 village co-

operatives equipped with both testing equipment and a milk cooling tank. Some of the

unpasteurised milk is sold to the villagers. The rest is transported by milk tankers twice a day to

the 12 district Milk Unions in the state. These Milk Unions process the milk by using the services

of 24 processing companies. The output of dairy products reflects the order submitted by the state’s

marketing body, the Gujarat Co-operative Milk Marketing Federation. These products are then

sold throughout India under the AMUL and Sagar brand names.

Indian consumers are increasingly showing a preference for packaged dairy products, due to food

safety concerns. This explains in part why the revenues of AMUL’s consumer range of packaged

dairy products grew by 11.8% in the last financial year. The sales revenue of pasteurised drinking
milk in plastic pouches under the AMUL brand rose in 2004/05 by no less than 36%. This rise was

attributable chiefly to the successful introduction of AMUL milk more than a year ago in the Indian

city of Kolkata (formerly Calcutta), home to millions of people. Thanks to this success, the

pasteurised milk pouches are the biggest contributor to AMUL’s total turnover. In the 2004/05

financial year, this range brought in a turnover of INR 6.26 billion or EUR 125 million.

The turnover of UHT milk grew 23% in the last financial year compared to preceding year. The

turnover of ice cream rose by 10%, consolidating AMUL’s position as market leader. And

despite cut-throat competition, the sales of AMUL brand butter rose by 4.5%. The sales of

cheese and cheese spreads rose by 21%. Cheese includes cheese for pizzas. And, says Kurien,

other packaged products such as flavoured milk, fresh cream, paneer or cottage cheese also

have the potential to become major products bearing the AMUL brand within a couple of

years. As the country’s largest co-operative dairy, AMUL has developed a two-pronged

strategy to address this issue and develop national presence. Firstly, last year AMUL expanded

its distribution network to include some of India’s smaller cities. In so doing, the co-operative

has responded quickly to rapidly changing market conditions.

Rajeev Ranjan, Rahul Bangabash (2015)- This required paying close attention to the

customer needs and quality. Mother Dairy realized that it was not enough that Mother Dairy

itself was wedded to these ideas; the entire supply chain had to conform. Hence it launched a

“Total Quality Management” or TQM to ensure the high quality of the products from the

starting point (the village farmer who supplied milk) right through the value chain until it

reached the consumer. This meant the need for the involvement of farmers, transporters, factory

personnel, wholesalers and retailers, each of whom had a role to play.

N Rangasamy, JP Dhaka (2008) - This study on marketing efficiency of dairy products for

co-operative and private plants has shown that the marketing cost for toned milk is same for

both the dairy plants, whereas it has been found higher for standardized milk, full-cream milk

and flavoured milk in the co-operative dairy plant. However, for butter and ghee, marketing

cost has been observed less in the co- operative dairy.

Jaana Auramo, Kari Tanskanen and Johanna Smaros (2010) - This paper illustrate how

new service concepts in which product suppliers get more involved in their customers’

operations enable suppliers to arrange their own supply chains more efficiently, while

simultaneously providing better service to the customer.

The dairy industry involves processing raw milk into products such as consumer milk, butter,

cheese, yogurt, condensed milk, dried milk (milk powder), and ice cream, using processes such

as chilling, pasteurization, and homogenization. Typical by-products include buttermilk, whey,

and their derivatives. While most countries produce their own milk products, the structure of the

dairy industry varies in different parts of the world. In major milk-producing countries most milk

is distributed through wholesale markets. In developing countries, the past practice of farmers

marketing milk in their own neighbourhoods is changing rapidly. Notable developments include

considerable foreign investment in the dairy industry and a growing role for dairy cooperatives.

Output of milk is growing rapidly in such countries and presents a major source of income growth

for many farmers. Dairy plants process the raw milk they receive from farmers so as to extend

its marketable life. Two main types of processes are employed: heat treatment to ensure the safety

of milk for human consumption and to lengthen its shelf-life, and dehydrating dairy products

such as butter, hard cheese and milk powders so that they can be stored. The global market for

Dairy Products is forecast to reach US$494 billion by the year 2015. Recovery in consumption

post global recession, continuing population growth, rising demand from developing countries,

trade liberalization, and continued growth in advertising are expected to fuel market growth. In
the present situation, as customers demand dairy products that fit their diet and nutritional chart,

the scope for the growth of new, innovative, and healthier products has increased. As per the

recent report of GIA (Global Industry Analysts) the global market for dairy products continues

to be driven by exceptional growth in Asia, Latin America and the Caribbea.

CURRENT SCENARIO

Mother dairy has a market share of around 33 % in the branded sector in West Bengal where it
sells 3.4 lakh litres of milk daily on an average and undertakes its marketing operations through
around 51 distributors and around 600 retailers in Delhi itself. It has a huge advantage over its
competitors as it is the only player when it comes to sale of loose milk through token. Before
the entrance of competitors like Amul ,sale of loose milk through Mother Dairy booths was
around 35 % of the entire sale in branded segment , when Mother dairy was the only player in
the market. However since last five years the sale is continuously declining and presently it is
just 8-9 %.