COMPARITIVE STUDY ON

COOPERATIVE INSTITUTIONS
NAME:
UNIQUE ID:

THE VIKASA SCHOOL

TUTICORIN
ECONOMICS PROJECT-1
2022-23
 INDEX
1. Introduction
2. Objectives and methodology
3. Reviews of literature
4. Analysis of the study
5. Findings
6. Conclusion
INTODUCTION
About cooperative institutions :

Cooperatives are associations or organizations whose goals are

to satisfy their members’ social, economic, and cultural needs. Each
member enjoys equal voting rights in a cooperative regardless of the
number of shares they own. Different regions around the world offer a
variety of legal structures for cooperatives.

Informal associations have fewer members with particular needs, for

example, community or amateur sporting associations.
These cooperatives are typically unincorporated, forming
a partnership amongst the members.  

As the membership grows along with their combined needs,

such organizations become larger and more
formal. Cooperatives under such circumstances may incorporate to
gain a separate legal identity and better satisfy the more significant
requirements of their membership base.

Importance of Cooperative Society

Cooperative institutions that started mainly for the provision of debt have
taken many forms today. There are many cooperative institutions in the
country with different sects of people as members. Cooperative Institutions
arrange loans and provide funds to their members at reasonable interest.
Cooperative organizations sell their offerings in Mandis at reasonable prices,
thereby avoiding exploitation by middlemen. Cooperative milk laboratories
collect milk from the villages and sell it in cities and provide the members
with the right price for their milk.
Cooperative stores save people’s money by providing them with the right
kind of goods at a reasonable price and curb arbitrary price collection by
traders. Similarly, Cooperative Housing Societies provide cheap houses to the
people. Today, in almost every sphere of life, cooperative institutions are
engaged in the welfare of their members.
Functions of a Cooperative Society 

 As it's far from a voluntary association, the club is likewise voluntary. a

person is free to enroll in a Cooperative Society and also can leave
whenever as in step with his preference. no matter their faith, gender
& caste, the club is open to all. 
 It's far more obligatory for the co-operative society to get registration.
The Cooperative Society is a separate legal identity from society. 
 It does not get laid low with the entry or exit of its members.
 There's the restrained liability of the contributors of the co-operative
society. liability is constrained to the quantity of the amount
contributed by way of individuals as capital.
 An elected managing committee has the electricity to make selections.
contributors have the right to vote, by way of which they go with the
participants who will represent the dealing with the committee.
 The Cooperative Society works on the precept of mutual assistance &
welfare. Hence, the principle of provider dominates its working. If any
surplus is generated, it is dispensed among the contributors as a
dividend in conformity with the bye-laws of the society.
Benefits of Cooperative Societies
The cooperative movement has contributed significantly to the development
of rural areas. The feeling of brotherhood and a tendency to work together
has grown among the members of these societies. Moreover, a sense of real
democracy is communicated among the people. Cooperative marketing
institutions have helped many get out of the clutches of money lenders and
protect them from the exploitation of middlemen. Through these
committees, farmers get help in saving money from moneylenders; as a
result, they get into the habit of saving. It, in turn, helps them to face their
problem on their own.

ASSINGNMENT
About vasudhara diary:

Vasudhara Dairy (Valsad District's Milk Producers Union Ltd) is a dairy

cooperative in India, headquartered in Alipore, approx 3 km
from Chikhli. It produces and markets milk and ghee (clarified butter)
for the local market under the Amul brand name. Its current capacity is
4 lakh litres per day.
It has branches (ice creame manufacturing plants)
at Nagpur and Boisar. Amul Ice Cream produces here is marketed
to Mumbai and Maharashtra markets.

Vasudhara diary’s mother company is amul which is very famous in the

north part of india now lets study a little bit about the mother company
amul

About amul [the mother company of vasudhara dairy]:

Amul is an Indian dairy state government cooperative society, based

at Anand, Gujarat.[3] Formed in 1946, it is a cooperative brand managed
by Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF),
which today is controlled jointly by 36 lakh milk producers in Gujarat
and the apex body of 13 district milk unions, spread across 13,000
villages of Gujarat.[4] Amul spurred India's White Revolution, which
made the country the world's largest producer of milk and milk
products.[5] The Word AMUL stands for Anand Milk Union Limited.
[6]
 Kaira Union has introduced the brand "Amul" for marketing its
product range. The word "Amul" is derived from the Sanskrit word
'Amulya' which means 'priceless' or 'precious', a name proposed by the
founding leader of Anand Agriculture College, Maganbhai Patel.
Tribhuvandas Kishibhai Patel under the guidance of Sardar Vallabhbhai
Patel became the founding chairman of the organization and led it until
his retirement in the 70s. He hired Verghese Kurien in 1949 and
convinced him to stay and help with the mission.[7][8] Under the
chairmanship of Tribhuvandas, Kurien was initially the general manager
and helped guide the technical and marketing efforts of Amul. Kurien
was the chairman of Amul briefly after Tribhuvandas Kishibhai Patel
died in 1994. 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 overseas markets.

Amul cooperative was registered on 19 December 1946, as a response

to the exploitation of marginal milk producers by traders and agents in
small cities. The prices of milk were arbitrarily determined at the time.
The government had given Polson an effective monopoly in milk
collection from Kaira and its subsequent supply to Mumbai.[11][12]
Angered by the unfair trade practices, the farmers of Kaira
approached Sardar Vallabhbhai Patel under the leadership of local
farmer leader Tribhuvandas K. Patel. He advised them to form a
cooperative (Kaira District Co-operative Milk Producers' Union) and
supply milk directly to the Bombay Milk Scheme instead of Polson (who
did the same but gave them low prices).[13] He sent Morarji Desai to
organize the farmers. In 1946, the milk farmers of the area went on a
strike which led to the setting up of the cooperative to collect and
process milk.[12] Milk collection was decentralized, as most producers
were marginal farmers who could deliver, at most, 1–2 liters of milk per
day. Cooperatives were formed for each village, too. [14] By June 1948,
the KDCMPUL had started pasteurizing milk for the Bombay Milk
Scheme. Then Prime Minister Lal Bahadur Shastri visited Anand to
inaugurate Amul's cattle feed factory. On 31 October 1964, and
sporganization in the village and spoke to farmers about their
cooperative and after returning to Delhi, he set in motion the creation
of an organization, the National Dairy Development Board (NDDB), to
replicate the Kaira cooperative in other parts of India.[15] Under the
leadership of Tribhuvandas Patel, in 1973, Amul celebrated its 25th
Anniversary with Morarji Desai, Maniben Patel, and Verghese Kurien.

Under the leadership of Tribhuvandas Patel, the cooperative was

further developed through the efforts of Verghese Kurien and H. M.
Dalaya. Dalaya's innovation of making skim milk powder from buffalo
milk was a technological breakthrough that revolutionized India's
organized dairy industry.[16]
With Kurien's help, the process was expanded on a commercial scale
which led to the first modern dairy of the cooperative at Anand. This
cooperative would go on to compete against established players in the
market.[17]
The trio's (T. K. Patel, Kurien, and Dalaya's) success at the cooperative's
dairy soon spread to Anand's neighborhood in Gujarat. Within a short
span, five unions in other districts
– Mehsana, Banaskantha, Baroda, Sabarkantha, and Surat – were set
up, following the approach sometimes described as the Anand pattern.
[12]

In 1970, it spearheaded the "White Revolution" of India. To combine

forces and expand the market while saving on advertising and avoid
competing against each other, the Gujarat Co-operative Milk Marketing
Federation Ltd., an apex marketing body of these district cooperatives,
was set up in 1973. The Kaira Union, which had the brand name Amul
with it since 1955, transferred it to GCMMF.[18]
In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality
Award
Technological developments at Amul have subsequently spread to
other parts of India.
The GCMMF is the largest food products marketing organization in
India. It is the apex organization of the dairy cooperatives of Gujarat. It
is the exclusive marketing organization for products under the brand
name Amul and Sagar. Over the last five and a half decades, dairy
cooperatives in Gujarat have created an economic network that links
more than 3.1 million (3.1  million) village milk products with crores of
consumers in India. In 2007, Gujarat Cooperative Milk Marketing
Federation Ltd crossed US$ 1 billion in its sales turnover and entered
the elite club of food companies having this distinction from India.[20] In
one more major achievement, the dairy cooperatives of Gujarat under
the GCMMF fold crossed milk procurement of 10 million kgs. per day
mark on 27 December 2007, which is the highest ever milk
procurement achieved by any dairy network in India, be it private or
cooperative. The entire quantity of milk received was accepted without
any milk holidays and was processed successfully into milk and other
milk products.[20]
On 30 September 2018, Prime Minister Narendra Modi inaugurated
Amul's chocolate plant in Mogar, Anand near their headquarters. The
new plant has been built with an increased capacity of 1,000 tonnes per
month against the earlier 250 tonnes a month capacity. GCMMF has
invested around ₹3 billion in this project. It is a fully automated
production factory with minimal human intervention.

Firstly let me tell what is a organizational structure :

An organizational structure is a system that outlines how certain
activities are directed in order to achieve the goals of an organization.
These activities can include rules, roles, and responsibilities.
The organizational structure also determines how information flows
between levels within the company. For example, in a centralized
structure, decisions flow from the top down, while in a decentralized
structure, decision-making power is distributed among various levels of
the organization. Having an organizational structure in place allows
companies to remain efficient and focused.

Now lets see about the organizational structure of vasudhara diary:

It has a board of directors and people who work as follows

Chairman-MR. Mogabhai desai

Vice chairman-MR. Ajit mehata

Directors – MR. Rajiv choradia , MR. Rajubhai mehata , MR. Amit patel

Managing directors- MR. B.M. Vashi

Project manager- MR. Darshan mehata

Works manager -MR. S.N. Samant

Now lets see what is financial structure:

The financial structure refers to sources of capital and the proportion

of financing coming from short-term liabilities, short-term debt, long-
term debt, and equity to fund the company’s long-term and short-
term working capital requirements.

 Debt includes a loan or other borrowed money that has an

interest component associated with it which is periodically paid
till the borrowed amount is fully repaid.
 Equity refers to diluting the owner’s stake in the company and
selling it to investors. Equity investor does not need to be paid
interest like debt. Rather, the profit earned by a company is
attributed to them as they own a share in the company and are
part owners. Profit is distributed through dividends paid by the
company to its investors.

Now lets see about the financial structure of vasudhara dairy: