A Project Report

On

Amul Fed Dairy, Gandhinagar

(A unit of Gujarat Cooperative Milk Marketing Federation Ltd.)

Submitted to -

Chimanbhai Patel Institute of Business Administration

Under the guidance of

Dr. Kamal Patel

Submitted by: -

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 PREFACE
This project report has been prepared in partial fulfillment of the requirement for
the subject .Parctical student of the programme B.B.A. in sem 2 in the accdemic year
2022 -2023.we are required to make a report on ‘AMUL’.

It is the backbone of any organization, management it is critical factor. A which

determines the success of failure of the business unit. success in management depend
on through understanding the principle of management.

Student of B.B.A. must be well in formed by industrial activity because it’s

university criteria .I have tried my best to represent all relevant data and information
relating to my project work. I hope this report will serve the purpose of the readers.

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 Acknowledgement

I want to express sincere thanks to Dr kamal patel sir who gave me this opportunity
to work on this report
They helped in making me learn new things about the topic. They ensured I did the
proper research for the case . I successfully completed the industrial research work
with the help of (sir)
I am thankful for having their motivation with us at every step . I am also very
thankful to Chimnabhai Patel institute of business administration for providing me
with this embarks our experience of doing this project based on an industrial visit ,
which gave me enormous knowledge about the same .

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 INDEX

SR. CHAPTER PG.

NO. NO

1. General information 6.
2. Production department 14.
3. Marketing department 23.
4. Human resource department 31.
5. Finance department 42.
6. CSR Activities 50.
7. Conclusion 51.
8. bibliography 52.

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 A

PROJECT ON REPORT

ON

AMUL DAIRY

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 CH-1

GENERAL INFORMATION

 Introduction
 Company profile
 History & development
 Awards
 Achievement of gcccmf

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Introduction

 Amul , formed in 1946, is a dairy cooperative ,based in Anand

, Gujarat.
 Estabilshment of Amul was marked as an epoch in the white
revolution.
 Largest food brand in India & world’s largest pouched milk
brand.
 Product protfilio - bread spreads, milk drink, fresh milk,
power milk, cheese, dessert.
 Market leader in ghee and butter with 85% market share.
 Symbol of high quality product sold at reasonable price ,of
availability of service.
 Dr. Verghese kurine , founder – chirmain of the GCMMF
(Gujarat Co-operative Milk Marketing Federation ltd.) for
more than 30 year (1973-2006), is credited with the success of
amul.
 Recognizable mascot “amul girl” & tagline “ utterly butterly
delicious amul!”

 Amul ‘s advertising and marketing spend has never exceeded

1% of its revenues.
 It is one of the best example of co- operative achievement in the
developing company.
 It is also the biggest vegetarian cheese brand.

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Company profile

Type Cooperative society

Industry Food processing
FMCG
Founded 1946; 75 year
Founder Verghese kurien,
Tribhuvandas patel
Headquarters Anand , Gujarat, India
Area served Worldwide
Key people Rupinder singh soni
(MD)[1]
Product Dairy
Revenue 38,550 crore
(US$ 5.4 billion) [2] (2020)
Number of 1000(marketing arms)
employees 36 lakh (3.6 million)
(milk producting members)
Industry Baby food, dairy food, frozen food
focus
certificate APEDA, Govt. of India ,award
website Amul.com
Amuldairy.com

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 History & Development

Operation flood,a programme that dr.verghese kurien implementd as

chairman of the national dairy development Borad in three phase over a 26 year
span ,created flood of milk which eventully led to india becoming the world ‘s largest milk

produser , overtaking the us in 1998.

Dr. kurien mad

innovative use of a world bank
loan, EEC food aid and the
internal resources of
NDDB to usher in the white
revolution. It was an experiment immortalized by noted filmmaker shyam Benegal in
manthan and one.

During the 1970’s, dairy product were piling up as a major surplus in purope ,
a phenomenon in which dr.kurien saw both a threat and appourtunity.

Amul cooperative was registered on 19 December 1946 as a response to the

exploitation of marginal milk producers by trader and agents in small cities. The
price of milk were arbitrarily determined at the time .the government had given
polson an effective monopoly in milk collection form kaira and its subsequent supply
to Mumbai.

The farmers of kaira apporoached sardar vallabhabhai patel under the

leadership of local farmer leader tribhuvandas k. patel .he send morarji desai to
organize the farmer.

Milk collection was decentralized as most producer were marginal farmer

who could deliver , at most, 1-2 liters of milk per day. The national dairy
development board (NDDB),to replicate the kaira cooperative in other parts of india.

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 In 1970,it spearheaded the white revolution of India .To combine force and
expand the market while saving on advertising and avoid competing against each
other , the Gujarat co-operative milk marketing federation ltd.

Technological development at Amul have subsequently spread to other part

of india.

Amul is based in Anand , Gujarat and has been a sterling example of a co –

operative organization success in the long term .
The GCMMF is the largest food product marketing organization of India .
it is the apex organization of the dairy cooperatives of gujarat .it is the exclusive
marketing organization for the products under the brand name of amul sagar.

Over the last five and half decade, dairy cooperatives in Gujarat have
created an economic network that link more than 31 lakh village milk product with
crore of consumers in india. In 2007, Gujarat cooperative milk marketing federation
ltd., crossed us$ one billion in its sales turnover and entered the elite club of food
companies having this distinction from india.

In one more major achievement the dairy cooperative of Gujarat

under the GCMMF fold crossed milk procurement of100 lakh kgs. per day mark on
27 December 2007 which is the highest ever milk procurement achieved by any
dairy network in India.

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 In 1970 it spearheaded the white revolution of india . to combine
force 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 these district cooperative was set up in 1973.

The Kaira union which had the brand name amul with it since 1955 ,
transferred it to GCMMF.

In 1999 it was awarded the best of all Rajiv Gandhi national quality
award.

On September 30, 2018 prime minister Narendra modi inaugurated

amul’s chocolate palnt in mogar, anad near their headquarters. It is fully automated
production factory with minimal human intervention.

The procces was expanded on a commercial scale which led to the

first modern dairy of the cooperative at anand . this cooperative would go on comete
against established players in the market.

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.
 

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Awards

 IMC Ramkrishna Bajaj national national qulity award – 2020

 World dairy innovation award -2020
 IMC Ramkrishna Bajaj national national qulity performance
excellence award -2018
 Special jury citation for risk management award-2018
 BML Munjal award -2017
 GCMMF received the & tv pitch top50 brand award -2007
 Development leadership award -2015
 Amul wins world dairy innovation award -2014
 GCMMF received APEDA award for 16 year continuously
 GCMMF finalist in world beverage innovation award -2014
 Amul wins AIMA high performance brand award -2013
 GCMMF wins the SAP award for customer excellence - 2013
 ET –Corporate citizen award of the year -2010-2011
 Amul receives green globe foundation award
 Dr. verghese kurien honoured with life time achievement award-
2010
 Amul bags international dairy federation award
 Amul bag srishti G –cube award for good green governance-2009
 Ramkrishna Bajaj national quality award -2003
 Qimpro gold standard award -2003
 Amul the test of India (GCMMF) receives international CIO 100
award for resourcefulness
 Rajiv Gandhi national quality award -1999

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 Achievement of GCMMF

 3.1 million milk producer member families

 15,760 village societies
 15 district unioun

 9.4 million liters of milk produce per day

 150 million disbursed in cash daily

 GCMMF is the largest cooperative business of small producer with an

annual turnover of 53 billion
 The govt. of India has honoured amul with the “best of all categories Rajiv
Gandhi national quality award .”
 Largest clod chain network
 48 sales officer ,5000 wholesale distribution , 7 lakh retail outets
 Export to 37 countries worth 150 crore

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 he consolidated turnover of the amul brand of products
exceeded Rs 52,000 Crore during 2019-20 the Gujarat cooperative
milk marketing federation (GCMMF), which sells and produces amul
product , said on Saturday . the federation said it aims to achieve a
group business turnover of Rs 1 Lakh crore by 2024-25.

Amul, which has ranked the 18th largest dairy organization in

the world in 2011, is the ninth position and has set the target of
breaking into the top three bracket.

The GCMMF chairman further said amul converted global

pandemic of COVID -19 into opportunity and procured additional 35
liters of milk per day.

He said the milk procurement had seen an increase of 138 per

cent from 90.93 lakh liter per day in 2009-10 to 215.96 liter per day
in 2019-20

Ahmedabad,jul 18 (PTI)the consolidated turnover of the amul

brand of products exceeded RS 52,000 crore during 2019-20 the
Gujarat cooperative milk marketing federation (GCMMF) , which
sells and produces amul products , said on Saturday.

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 CH-2
PRODUCTION DEPARTMENT

 product
 Milking process
 How it operate
 Timely delivery
 Paking process
 Capacity of amul dairy

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PRODUCT

Fresh milk:
 Amul taza toned milk 3% fat
 Amul gold full cream milk 6% fat
 Amul shakti standardised milk3% fat
 Amul smart double toned milk 5% fat
 Amul masti dahi
 Amul buttermilk
 Amul lassee

Amul icecream:
 Royal treat range(rajbhog ,cappachino,choco chips,butter scoch, truti fuitti)
 Nut-o mania range(kaju draksh, keser pista,roasted almond,keser
carnival,shista pista kulfi)
 utsav range(anjir , roasted almond)
 Milk bars(chocobar,mango dally, rasbarry dally, shahi badam kulfi, mava
malai
 Trikon kons(butter scotch, chocolates)

Bread spreads:
 Amul Butter
 Amul lite low fat bread spread
 Amul cooking buteer

Cheese range:
 Amul pasteurized processed cheddar cheese
 Amul process cheese spread
 Amul pizza (mozzarella)cheese
 Amul shredded pizza cheese

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  Amul emmental cheese
 Amul gouda cheese
 Amul Malai Paneer
 Utterly delicious pizza

Mithaee range:
 Amul shrikhand (mango,almond, pista, chocolate)
 Amul amrakhand
 Amul Mithaee Gulabjamuns
 Amul mithaee kulfi mix

UTH milk range:

 Amul taaza 3% fat milk
 Amul gold 4.5% fat mil
 Amul slim- n- trim 0% fat milk
 Amul chocolate milk
 Amul fresh milk
 Amul taaza double toned milk

Pure ghee:
 Amul pure ghee
 Sagar pure ghee
 Amul cow ghee

Infant milk range:

 Amul infant milk formula 1(0-6month )
 sagar infant milk formula 2(6 month above)
 amulspray infant milk food

Milk powder:
 amul full cream milk powder

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  amulya dairy whitener
 sagar skimmed milk powder
 sagar tea and coffee whitener

Milk drink:
 amul shakti flavored milk

Ready to serve soups:

 masti tomato soup

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 MILKING PROCESS

Step:1 the person in all distrinct deposits the milk at the village center by
electronic measurement.

Step:2 from there it is taken to the chilling center. There are in all five chilling
center.

Step:3 the collected milk is tested against the set standards. The quality of milk
done here payment is done on the basis of quality and fat content.

Step:4 the received milk is sold locally as well as transported to the dairy for the
further processing.

Step:5 the milk tested in the lag. No compromise is done with the quality of
milk being received.

Step:6 the quality milk is received at the raw milk receiving dock at dairy.

Step:7after unloading the next step is to undertake the can cleaning process
before it is returned as cleanliness is necessary for better quality.

Step:8 from here the milk is pasteurized.clarified and standardized using latest
technological machines is and equipment.

Step:9 after the process is over the milk is again tested once it is cleared than it
is packed. The packing system is automatic and packs 18 pouches per minute.

Step:10 the next step pouch filling for the need users is done.

Step:11 after the milk is packed the milk are stored in a well.maintained cold
storage.

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Step:12 from here the milk are dispatched for the sales in the market.

Company is producing and marketing its products for various medical specialties
like gynecologist, physicians, orthopadicians, and other. The product profit of
the company includes antibiotics , multivitamins, anti-allegic, antheleminitic and
natural products.

How it operates…..?

Packaging Materials:

For packaging they use plastic cover as well as tins. The materials are kept in
stock according to the forecasting done by the purchase department which is
arrived at after taking into consideration the sales forecast of marketing
department.

Spare parts for machineries:

Breakdown spare parts of machineries are kept in order that less time is
wasted if any occurs due to wear and tear of the parts.

Transportation:

The purchase department also organizes the transportation of the raw

material purchased.

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Timely delivery:

The department checks that they get the required materials at the correct
time in order to keep a smooth production process /flow.

Milk procurement in AMUL DAIRY is done initially from village people &
further the channel can be explained by following charts.

Milk producers

Village co-operative milk society

District co- operative milk producer’s union ltd

Gujarat co- operative milk marketing federation.

Packing

Packing process is completed by means of semi automatic as well as

automatic packaging line.

The primary packing is done in pouches, tins, etc. while secondary

packaging is done in cartons and bags etc.

Packing process:

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Stitching ------coding--------fixing

Packing is aimed at impressing the buyers through Colorful attractive

and eye catching of The Product. The importance of packing has Increased
Considerable in the area of marketing recent years. Packing means all the
activities involved in designing and predicting the container or wrapper for a
product.

There are separate department for packing of the entire product. For
example Shrikhand is packed in 10G.M& 500G.M polypropylene cups. Under
the Brad name “Amul ”

Product specification:

Meet BIS specification no.IS:2785

Capacity of Amul dairy

Capacity of amul dairy for the production of milk and milk products as under.
1. Milk handling :10 lacks liter per day
a. Liquid milk packing : 04 lacks liter in per day
b. Powder MED capacity : 60 thousand liter per day
c. Ghee MED capacity : 60 thousand liter per day
d. Ice – cream med capacity : 10 kilos liter per day

2. UHT (ultra hit treated) packing : 25 kilos liters per day

a. Iec cream ,cups, party , pack, bulk pouch

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 Some of the machine used for production process are:

 Milk reception lies

 Milk chillers
 Milk pasteurizers
 Homogenizer
 Cream separators
 Stando meter
 Milk silos
 Horizontal milk storage tanks
 Cream pasteurizers
 Milk packing machine

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 CH-3
MARKETING DEPERTMENT

 introduction
 Channel of distribution
 Marketing process
 4 ‘p of marketing
 Marketing strategy
 Supply chain

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 Introduction

The concept of market are very important. marketing is a comprehensive learn. It

includes primary resources such as human resources ,finance & services from
producer to consumer in the process of exchange & distribution.

marketing may be defined as the process of exchange between seller& buyer. It

involves a number of inter releted activities designed to plan promote,
distribute& price a product or service in order to meet the wants & need of both
the parties in exchange.

Marketing is the “creating & delivery of standard of living to the society ” A

total system of interacting the business activities designed to plan , price
promote& distribute want satisfying product and servicer to present and potential
customer.

According to the committee of American marketing association marketing

consist of performance of business activity that direct the flow of good and
service from producers or supplier to the consumer and users.

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 Channel of distribution

Most producer do not sale their good directly to the final users. But they sale
their product by keeping marketing intermediaries performs various type of
function and bearing various names. It means most producer work with
marketing intermediaries to bring their producers to market . the marketing
intermediaries made up a marketing channel.

Marketing channel are sets of inter dependent organization involved in the

process of making a product of service available for use or consumption.

As amul dairy in milk selling is not able to distribute and sale the milk on its
own, it is taking the help of intermediary, which known in briging the product
and its tital closer to the final buyers constitute a channel level, amul dairy
distributes channel graphical representation is as follows.

AMUL DAIRY

Gcmmf

Area depot
Distributors

Retailers

Consumers

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 Marketing process

Marketing of amul’s product is done by G.C.M.M.F ltd. 90% of amul product

are marketed by federation expert for liquid milk.

Before establishment of G.C.M.M.F dairy maked the product directly, this lead
too many problems . Thus the Gujarat co-operative milk marketing federation
areas established in 1972 for marketing the dairies if Gujarat . (total 12 dairies).

All the function of marketing like advertising, budget, marketing research, price
for product etc.G.C.M.M.F . it sent monthly market requirement date to the
dairies & according to this another concerned dairies will work.

Dairy the amout of production of amul like cheese, butter, milk powder,
chocolates etc. are sent to the commercial department through production
department. This data is very useful to the amul dispatch orders, which is sent to
the federation dispatch order. It involves quality of good when the good are to be
sent price signal executive etc.
There dispatch order are sent to concerned state by programme committee &
under committee member different person are included line member of amul.

Through federation amul get fixed percentage of commission on each

production. Federation selling function done through 33 sales officers in all india
& 250 persons are working on this sales office.

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 Marketing strategy

 Pricing strategy:

India is a price sensitive market , hence, amul tries to cater to the

needs of all the Indian market segments keeping in mind the wallets size
of this target customers without compromising with the product quality.
Amul deals in daily need dairy product like ice cream ,milk , butter,
cheese, ghee, cream at comparatively lower price offered by bits
competitors which in return helps amul to capture huge market share.

 Segmentation, targeting, and , positioning , market

strategy of amul

Amul’s target segment is the mass population ,we generally see

people of all age grouop and demographics enjoying amul’s dairy
products as, amul’s dairy product are a common product for all, have you
ever heard of any ice cream or butter only to be consumed by aged
people ?
As it has a very vast product portfolio, the company doesn’t
differentiate in its customer but uses mass marketing principle and this
strategy has proven itself to be the most suitable one , as this principal is
still working well with the amul’s marketing strategy.

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 Amul’s target audience are the regular users and middle class
people. However , for products like butter and cheese, both upper middle
class and lower middle class people are the target audience.
Positioning strategy used by amul is the top of the mind , as it got
some leverage fopr being the first brand which comes in mind when
taking of milk, cheese, butter, ice cream or any other dairy product from
amul’s product portfolio.

Competitive advantage
in the
marketing strategy of Amul

Amul carries two major competitive advantage

listed below :

1. Its supply chain :

Amul has large number of dairy supplier which provide

It tremendous strength and facilitates amul to producer high volumes by relying
on its supply chain.

2. Its wide product portfolio :

Amul has a really wide product line due to which it can

run amul shoppes’s and also maintain its product presence in market, especially
at retail level. Amul’s product portfolio analysis indicates that its butter and ice
cream are cash cows for it.

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 Competitive analysis of Amul’s
marketing strategies

Amul has many competitors , who has entered the

Market in last decade and are growing their market share steadily .in ice cream
category amul owns a major share but even though individually these competitor
brands might not be a worthy adversary, combined and due to synergy , all of
them together are giving very tough competition to amul.

List of its top competitors:

 Kwalty walls
 Vadilal
 Havmore
 Dinshaws
 Baskin robbins
 London dairy
 Arun lec cream

Many of these ice cream product are niche or geographic target centric.
havmore is more successful and strong in west india whereas arun ice
cream is strong is strong in south.

Besides these organized players , amul has many unorganized ans small
competitors as well which offer their own ice cream variants in own
outlets. But the competition in other dairy product like butter and cheese
is far.

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 Marketing analysis

The FMCG market is highly competitive in nature and is known to have

a combination of organized players as unorganized players. As well as
unorganized players .similarly in FMCG, direct competition is equally
important as indirect competition. For example – during winters, ice cream and
cold milk product will not sell , whereas butter and cheese will sell equally well.

But on the other hand, during summers the demand of ice cream shoots
up so much so that companies are not able to meet demands. Thus, when we
analysis the market of amul , in some cases amul is the clear market leader ,
whereas in the product it is a competitor in the market.

4 ps of amul company

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Product:
Tracks consumer needs & their changing lifestyles , & accordingly
develops products to suit their needs.
Product quality plays a paramount role & so does packaging.

Price:

The man USP of amul brand is its low pricing. It hits at the transnational
by reducing its price on its product portfolio.
The competitive advantage is its “backward integration “backward
integration” strategy, which helps substantially in cost reduction.

Place:

Any food company requires a dedicated cool chain network.

Amul boasts of the largest cold chain network (18000 refrigerators) in India, as
compared to any others company.
It is surprising to note that it sells pizzas in rural markets too.
Rural, urban & international market.

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 Promotion :

amul spend very less on its advertising budget, but spend it very
effectively.
It uses a variety of media to communicate .The master chef of India
context.
Amul food festival & the endearing polka dressed girl.
Amul maharani context.

Supply chain

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P a g e | 38
 CH-4
HUMAN RESOURCE
MANAGEMENT

 introduction
 Function of human resource department
 Org. structure of amul
 Recruitment
 Selection
 Traning and development
 Wages & salary
 Wage structure
 Human res. Information system
 User’s perception

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  Introduction

According to scoot clothier and spriggel human resource management as the

branch of management on astaff basis for concentrating on those aspects of
relationship of management to employee and employees to employees and with the
development of the individual and the group . The objective is to attain maximum
individual between employees and effective molding of human resources as
contrasted with physical resources.

Personal (human resource) management plays a very important role for any
organization. The firm having all types of resources like machine, materials, money,
information etc. will not be success in business without effective manpower. Human
capital is the greatest assets of business enterprise and manpower management is the
most important and critical job because the managing group is the heart of the
company.

Human resource management plays most important role in establishing good

relation and harmony among all.

No. of shift :

 1st shift time : 8:30 A.M to 4:30 P.M

 2nd shift time : 4:30 P.M to 12:30 A.M
 3rd shift time : 12:30 A.M to 8:30 A.M

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Function of human resource department

1. Recruitment and selection

2. Training and development
3. Performance appraisal
4. Salary and wage administion
5. Employee turnover
6. Compensation
7. Industrial relation
8. Factor act
9. Industrial dispute act
10. Human resource information system (HRLS)

Organization structure of Amul

Board of director

Chairman

Managing chairman

General manager

Assistant general manager

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 Manager

Deputy manager

Assistant manager

Senior manager

Senior executive

Senior officer

Senior assistant

Workers

Grade (A to E)

Recruitment and selection function

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 Recruitment:

There are two types of recruitment sources followed by amul:

 External source
 Internal source

Internal source:
Internal sources include personnel already on the payroll of the
organization.
 Present permanent employees
 Employees referrals
 Farmers employees

External source:
These sources lie outside the organization in amul they consider
following sources for recruitment.
 Campus interview
 Unsolicited application
 Application blank
 Placement agencies

Recruitment policy of Amul :

 Entry level qualification

 Below officers caders

1. S.S.C/ H.S.C attendant operator dairy (AOD) – G.Gr.

worker
2. professional qualification E/F grand worker (boiler
attendant)

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 3. BA / B.COM /COM/M.A/MAW/MRM/MRS M.E biz of
Gujarat vidhyadeep and c grade worker similer non –
university institutions
4. BSC/MSC/DIPLOMA engineers B grade workers
apprenticeship lab assistant for 1 yr 3 months for BSC&
MSC ; 1 yr for DIPLOMA engg. than 2/3 yrs as trainee
technicians, than based on appraisal appointed as
technician b grade
5. BBA management trainee for 1 yr jr. assisatnat.

Selection:

Selection procedure is concerned with securing relevant information

about the applicant. The main objective of selection process is to determine
whether an applicant meets the qualification for a specific job and choose the
application that is most likely to perform well in the job.
The Selection process in AMUL is as under

Vacancy in any department

Approval from M.D

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 Advertisement

Collection of application

Securitize the application

Interview

Medical checkup

selection

After selection, the employees generally have probation period.In AMUL

probation period is different for different type of employees. Probation period
for officers is 12 months, 6 months for clerical employees and 3 month for
workers.

Training and Development

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 It is a subsystem of an organization. It ensures that randomness is
reduced and learning or behavioral change takes place in structured format.
Training is the process where the work related knowledge, skills and attitude are
given to new employees. By which they aware the policies rules and increase
technical and manual efficiency and create of responsibility.

AMUL has accepted these methods for the training

1. On the job method

2. Off the job method 20
3. In house training
4 Out house training

Training Procedure in Amul

Identification of need of Training

↓
Module Preparation
↓
Selection of Employee for the Training
↓
Training
↓
Feedback

Performance Appraisal

Performance appraisal is the process of evaluating the performance and

qualification of employees in terms of the requirement of the jobs for which they
are employed. It is highly useful in making decision regarding the promotion,

P a g e | 46
transfer, wage and salary administration etc. The AMUL adopts the following
appraisal system.

Final confirmation with the recommendation by the divisional heads

comes from the MD on annual basis. His work is evaluated by Check list
Method of Performance Appraisal. These are a various method used to appraise
the performance of an employee. In Amul the following methods are used

Self Appraisal

If individuals understand the objectives they are expected to achieve the

standards by which they are to be evaluated they are to a great extent in the best
position to appraise their own performance .in this method employee himself.

Manager’s Appraisal

The general practice is superiors appraise the performance of their

subordinate. Other supervisors, who have close contact with employee‘s work
may also appraise with a view to provide additional information. A higher –
level manager appraise the employees for their performance.

In Amul various attributes consider for the appraisal of employee.

• Job knowledge
• Work output
• Quality of work
• Interest in work
• Initiatives
• Past records
• Seniority

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 This appraisal is also the rating scale. Method appraiser also appraised
employee by following.

o Outstanding
o Good
o Satisfactory
o Poor

The overall assessment is done through above rating and also the comment
of reviewing officer is included. Apart from this the performance in liked
allowance is provided in relation with performance that is,
o 25%
o 50%
o 100%
o Not allowed

This is provided by and under knowledge of under Managing Director

Generally in Amul on base of performance appraisal employee of managerial
level gets specials allowance. While for workers they get promotions

Wages and Salary

A common method is followed for the wage and salary

administration according to “Muster roll “.

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 Timekeeper sends that muster roll to the account department for
attendance of each and every employee. This will analyze and entered in the
computer.
After this salary is calculated for each employee through computer
according to that they prepare salary sleep of employees.

Wage Structure (Approx)

Post grade payscale

Managing director Manager 21000-28000
General manager Manager 15000-21000
Assistant general manager Manager 7000-15000
Assistant Clerical 25000-75000
Senior clerk worker 2000-5000

Human resource information system

In AMUL, the HRIS is not used for the recruitment process as

it is done manually in the organization the recruitment of the is carried in the
following way
Vacancy in department

Advertisement

Receiving of application

Short listing of applicant

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 There is no role of HRIS (ERP oracle) in the recruitment
process, after the short listing of the application; the applications which are
selected are called for a personal interview with the general manager of the
AMUL. After the candidate is selected for the particular job, the role of HRIS
starts by keeping different types of records of an employee such as
A. Personal details
B. Previous organization details
C. Training details
D. Service records
E. Joining details
F. Retirement details

 HRIS is also useful in the turnover analysis of the Amul; it helps the
organization to know the number of time employees left the organization.
 HRIS, is useful in keeping the Accident details of the employees, on the
basis of this reports employees are injured due accident are been given
medical facility and financial help.
 The time keeping process of Amul is decentralized, in the various plants
of Amul like Mogar plant, Khatraj plant, Anand plant and Kanjari plant.
If any information regarding any employee absence and present of other
plant is needed by the central head office at Anand, that it is available
with the help of ERP ORAC.

User’s Perception

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 After interviewing the fifteen respondents from the organization I have
come to know that the organization is using the software named “ERP ORACLE
“in HRIS and by observing and interviewing the user of the system the following
data is gathered.
 The users of the system is fully satisfied with the present system ERP
ORACLE
 The AMUL is using this system since last thirteen years and they are
trying to bring change by implementing new system named SAP which is
under the progress.
 With help of HRIS the organization gets the following benefits such as
1. Time saving
2. Cost saving
3. Effective work
 HRIS helps to supports the following HR task of the Amul
1. HR development and workplace training
2. Communication
3. Career management (for employees)
4. Decision making
 The HRIS system of Amul is fully secured, so there no threat of linking
of any kind of data.

Futuristic Vision

On the basis of the various issues and challenges the following suggestions
will be of much help to the philosophy of HRM with regard to its futuristic
vision:

 There should be a properly defined recruitment policy in the organization that

should give its focus on professional aspect and merit based selection.
 In every decision-making process there should be given proper weightage to
the aspect that employees are involved wherever possible.

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 It will ultimately lead to sense of team spirit, team-work and inter-team
collaboration.
 Opportunity and comprehensive framework should be provided for full
expression of employees' talents and manifest potentialities.
 Networking skills of the organizations should be developed internally and
externally as well as horizontally and vertically.
 For performance appraisal of the employee’s emphasis should be given to
360 degree feedback which is based on the review by superiors, peers,
subordinates as well as self-review.
 360 degree feedback will further lead to increased focus on customer
services, creating of highly involved workforce, decreased hierarchies,
avoiding discrimination and biases and identifying performance threshold.
 More emphasis should be given to Total Quality Management.
 There should be focus on job rotation so that vision and knowledge of the
employees are broadened as well as potentialities of the employees are
increased for future job prospects.
 For proper utilization of manpower in the organization the concept of six
sigma of improving productivity should be intermingled in the HRM
strategy.
 The capacities of the employees should be accessed through potential
appraisal for performing new roles and responsibilities.
 It should not be confined to organizational aspects only but the
environmental changes of political, economic and social considerations
should also be taken into account.
 The career of the employees should be planned in such a way that
individualizing process and socializing process come together for fusion
process and career planning should constitute the part of human resource
planning.

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P a g e | 53
 CH-5
FINANCE DEPARTMENT

 Finance department
 Finance structure
 Source of capital of amul
 Turnover
 Organization profile
 Objective of finance department
 Today business


P a g e | 54
 Finances Managed by Amul Company

A country like India is deep-rooted in its agriculture and cattle rearing and hence this
is something that the nation can rely on when it comes to business. The dairy industry
has been responsible for India’s economic growth since the time of independence.

A name that has been majorly associated with this dairy business in the country is
AMUL or Anand Milk Union Limited. It has been a popular brand name for the milk
producers of the Kaira District Co-operative Union since 1955.

It has its daily network that is spread all across Indian states as well as abroad in
central Asian countries like Bangladesh, Thailand, Indonesia, Malaysia, and
Singapore. The Amul had begun with a very little source of milk that was 250 liters
and only 2 societies and in today’s world it produces more than 15 lakh liter milk per
day and has more than 1113 societies with 6 lakh plus farmer members. It has
completed its 73rd year on the 14th of December 2017.

This is a process that involves planning and controlling of the company’s financial
resources. All other departments of the company strongly depend upon the finance
department to go on with their departmental activities individually.

the growth of a company like Amul management of finances is very important.

Without this, the business cannot survive or expand in this competitive market. Here
are some points that make it highly important for an organization:

 Promoting the business

 Decision Making
 Successful business
 Measuring the Performance
 Helpful for Shareholders & Investors

The third and the last tier is the state level co-operative namely, Gujarat Co-operative
Milk Marketing Federation (GCMMF). This tier takes the complete responsibility or
marketing the products international and national market.

P a g e | 55
This acts as a complete mechanism that works together keeping GCMMF at the top of
its pyramid and forms a chain that involves theproduction of raw material as well as
its distribution as a finished product in the buyer’s market.

The man work involved in this functioning can be accounted as 23.60 lakh primary
producers of milk; 35,000 workmen at rural areas in more than 11,400 village
societies; 12,000 workers in 15 dairy plants; 750 marketing professionals; 10,500
salesmen in thedistribution network and 600,000 salesmen in theretail network.

P a g e | 56
 Sources of Capital for Amul

1.    As the products are sold on a daily basis to Gujrat Co-operative Marketing
Federation (GCMMF). An amount is given by the federation to the union so that it
gets paid for the sale of its products.

2.    The societies that are involved in its functioning hold fixed deposits that act as a
major source of capital.

3.    As these Fixed deposits release some kind of Interest when deposited in banks
like UTI, BOB etc. These act as another source of the finance.

4.    The share capital is not public hence it is not listed in the market it is exclusively
for the members of the society.

Turnover of Amul

The consolidated turnover of the Amul brand of products exceeded Rs 52,000 crore

during 2019-20, the Gujarat Cooperative Milk Marketing Federation (GCMMF),
which sells and produces Amul products, said on Saturday.
The federation said it aims to achieve a group business turnover of Rs 1 lakh crore
by 2024-25.
"The group turnover of GCMMF and its constituent member unions, representing
consolidated turnover of all products sold under Amul brand is exceeding Rs 52,000
crore or USD 7 billion. GCMMF aims to achieve a group business turnover of Rs 1
lakh crore by 2024-25," it said in a statement after the 42nd AGM held at Anand.

P a g e | 57
The GCMMF said it registered a sales turnover of Rs 38,542 crore in 2019-20,
which is 17 per cent higher than the previous financial year.
A rapid expansion has helped Amul record a turnover almost five times higher than
Rs 8,005 crore in 2009-10, it said.
Daily milk procurement was 215.96 lakh litre per day in 2019-20, GCMMF said,
quoting its Chairman Ramsinh Parmar.
"This enormous growth was a result of the high milk procurement price paid to our
farmer-members which has increased by 127 per cent, from Rs 337 per kg fat in the
year 2009-10 to Rs 765 per kg fat in the year 2019-20," the GCMMF said quoting
Parmar.
Parmar further said that during lockdown, when private milk firms stopped
procuring from farmers, milk unions of Gujarat procured an additional 35 lakh litres
of milk per day, giving around Rs 800 crore extra to the rural milk producers.
India continues to be the world's largest producer of milk, and is likely to retain its
prime position with an annual growth rate of 5.5 per cent during the last three to four
years as against global growth of 2 per cent, GCMMF Vice Chairman Jethabhai
Bharwad said.
GCMMF Managing Director RS Sodhi said the Rs 15,000 crore dairy infrastructure
fund announced by Prime Minister Narendra Modi and Union Finance Minister
Nirmala Sitharaman for setting up supply chain and dairy plants will help Indian
dairy industry to build around 4 to 5 crore litres of extra capacity.
"These extra five crore litres of milk collected and processed by the organised dairy
industry will provide livelihood to approximately 30 lakh people in rural India.
This is really the need of the hour, when hundreds of thousands of people have
migrated back to their villages from urban centres," he was quoted in the statement
as saying.
The Board members also expressed their "heartfelt gratitude" to the Government of
India for taking a firm stand during Regional Comprehensive Economic Partnership
(RCEP) negotiations that will benefit 10 crore dairy farmers of the country.

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 ORGANIZATION PROFILE

NAME: KAIRA DISTRICT CO-OPERATIVE MILK

PRODUCERS UNION LIMITED widely known as AMUL.
FORM: Co-Operative sector registered under the co-operative
Society Act.
LOCATION: Kaira District Co-Operative Milk Producers Ltd,
Nr. Railway station
Amul Dairy Road,
Anand-388001
Gujarat.
REGISTRATION: 14TH December 1946.
REG.OFFICE: Kaira District Co-Operative Milk Producer Union Ltd.
SALES OFFICE: Gujarat Co-operation Milk Marketing Federation, Anand.
CERTIFICATES: ISO 9001:2000
ISO 2000:2005
SIZE: On Large scale basis.
PROMOTERS: (1) SHRI TRIBHOVAN DAS PATEL
(2) SHRI MORARJI DESAI
(3) SHRI VALLABH BHAI PATEL
(4) Dr. VARGHESE KURIEN
(5) Dr. H.M.DALAYA.
BANKERS: 1.Kaira District Co- Operative Bank.

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 2. Axis Bank
3. State Bank of India
4. Bank of Maharashtra
5. Corporation Bank
6. Bank of Baroda
7. Bank of Saurastra

AUDITORS: Special Auditor (Milk), Milk Audit Office Anand

INTERNAL AUDITOR: B. B. Bhabhor.
NO.OF SHIFT: 1st shift time: 08:30 A.M to 04:30 P.M
2nd shift time: 10:00 A.M to 06:00 P.M
3rd shift time: 04:30 P.M to 12:30 A.M
VILLAGE COOPERATIVE
SOCIETIES: 1163
MEMBERS: 6, 34,675.
OFFICE TIME: 10:00A.M TO 6:00P.M
PREMISES: 49.55Acres.

OBJECTIVE OF FINANCIAL MANAGEMENT

Efficient financial management requires the existence of some objectives, which are
as
follows:

 Profit maximization:
 Profit maximization
The objective of financial management is the same as the objective of a company
which is to earn profit. But profit maximization alone cannot be the sole
objective of a company. It is a limited objective. If profits are given undue
important then problems may arise as discussed below:
 The term profit is vague & it involves much more contradictions.
 Profit maximization must be attempted with a realization of risks involved.
A

P a g e | 60
positive relationship exists between risk & profits. So both risk & profit objectives
should be balanced.

 welth maximize
 Profit maximization:
It is commonly understood that the objective of a firm is to maximize value of a firm
is represented by the market price of the company‘s stock. The market price of a
firm‘s stock represents the assessment of all market particular firms.
It takes into account present & prospective future earnings per share, the timing &
risk of these earnings, the dividend policy of the firm & many other factors that bear
upon the market price of the stock.
Market price acts as the performance index or report card of the firm‘s progress &
potential.

 process
 PROCESS:
Finance department is that managerial activity concerned with the
controlling of the firm‘s financial resources. Among all the 5Ms, i.e. man,
money,
machine, material, and market, money plays a vital role in the organization. Finance
is the lifeblood for the success of an organization. For the organization to grow and
develop on an even basis, availability of finance on adequate basis is the prime
requirement.

 Financial function
The financial management involves critical decisions on which the very survival of
the organization depends. The main financial decisions are as follows:

 Investment Decision
 Financing Decision
 Dividend Decision

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
Financial decisions are thus very crucial and important decisions for the firm. The
main function of finance department is to tackle the day-to-day financial
requirement and other short term and long-term expenses, which an organization
might quite often incur.

All the other departments of the organization strongly depend upon the finance
department to carry on their departmental activity efficiently. Hence, it is the
responsibility of the finance manger to manage the finance function with proper care.
Timely availability of finance in the organization would lead to organizational
success and the failure to do accurately manage finance will lead to inefficiency.

Today business

Amul aims to achieve a business turnover of Rs 50,000 crore by 2021 The

Gujarat Cooperative Milk Marketing Federation, which sells milk and milk products
under the Amul brand, has recorded a sales turnover of Rs 33,150 crore for the
financial year 2018-19, which is 13 per cent higher than the previous financial year

PTI New Delhi Last Updated: May 29, 2019 | 08:50 IST

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 The Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells
milk and milk products under the Amul brand, Tuesday said it aims to achieve a
business turnover of Rs 50,000 crore by 2020-21.

In the long term, Amul aims to establish itself as the largest dairy
organisation in the world, rising up from its current ranking as the ninth-largest dairy
organisation globally, the GCMMF said after its 45th annual general meeting held at
Anand Tuesday.

The GCMMF has recorded a sales turnover of Rs 33,150 crore for the
financial year 2018-19, which is 13 per cent higher than the previous financial year.

The Federation has registered a rapid growth in the past decade, with its
turnover growing four times during this period, from Rs 8,005 crore in the financial
year 2009-10 to Rs 33,150 crore in 2018-19, the release said.

The total turnover of GCMMF and its constituent member unions, turnoverof
all products sold under Amul brand, is exceeding Rs 45,000 crore or USD 6.5
billion.

GCMMF aims toachieve a business turnover of Rs 50,000 crore and become

the largest fast-moving consumer goods organisation in India by 2020-21.

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 CH-6
CSR ACTIVITIES
1. Programs: Amul has been working towards empowering farmers
through various initiatives like artificial Dairy Development
insemination, veterinary care, and fodder development programs.
Through these programs, Amul has been able to increase the
productivity of milk, thus increasing the income of farmers.
2. Education and Training: Amul provides education and training to
dairy farmers to help them adopt best practices in dairy farming. The
company also offers training to women in the villages in the
production and marketing of dairy products, creating employment
opportunities.
3. Environmental Sustainability: Amul has taken several steps to ensure
the sustainability of the environment. The company has installed a
bio-gas plant that converts cow dung into biogas, which is then used
as a cooking fuel. Amul has also planted trees in the villages to
promote reforestation.
4. Health and Nutrition: Amul has launched several initiatives to
improve the health and nutrition of people. The company has started
the "Ksheer Yojana" initiative to provide milk to underprivileged
children in schools. Amul has also launched "Amul Sagar" initiative,
which provides clean drinking water to people in rural areas.
5. Disaster Relief: Amul has contributed to disaster relief efforts in the
past. For instance, during the Gujarat earthquake of 2001, Amul
provided relief materials to the affected people.

Overall, Amul has been actively engaged in corporate social responsibility

initiatives, which have not only helped the company but also contributed to the
betterment of society

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 Conclusion

Three key practices are there behind the success of AMUL.

The first, that Amul has developed a strong brand and implemented its marketing
strategy towards strengthening it constantly.
The second that AMUL presented traditionally accepted milk products with a
brand value as well as targeted sustained growth for the long term depending upon
matching supply and demand.
Third, that Amul never compromised on professional grounds and separated
decision making and management into two folds. Member Farmers were always
involved in decision making and controlling the giant and on the other hand,
professional managers and technocrats were appointed to run the management.
This paper describes success story of a cooperative institution (AMUL)
which has touched the level of excellence as top corporate players. Cooperative has
farmers as members and they used to sell their milk collectively under cooperative
framework to maximize profits and increase bargaining power.
Profitability of a cooperative is heavily depends upon maintaining balance
between farmer’s ownership in cooperative and professional management.
Objective of this paper is to review the AMUL story, derive core practices
responsible behind the success of Amul and find how branding has played a role in
AMUL’s phenomenal growth.
In AMUL’s case Marketing strategy and Branding have been the mantras of
success as AMUL Brand is one of the super brands of Indian market and it has
established its contract with customers showcasing its higher qualitystandards,
justified and correct pricing strategy & product availability in every part of India.
This paper is based on secondary data collected through different websites,
magazines and newspapers.
Importance of a strong brand has been focused and Amul branding strategy
has been discussed with brief description of market share of different Amul products.
This paper has been divided in Introduction, Evolution of Cooperative, Brand
Building, Range of Products and Conclusion.

P a g e | 65
 It has been emphasized that Cooperative always stands strong if
democratic, participatory, and efficient management have been developed to run it.
At the end, it has been concluded that Amul stands profitable at same time
competitive due to three strong practices namely Branding, matching supply and

demand and professional management.

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 Bibliography

 http://www.amuldairy.com
 http://www.amul.com
 National dairy development board – http://nddb.org/
 http://en.m.wikipedia.org
 www.gcmmf.org
 http://www.amul.com/product/amul_lactose_free_milk%20php
 http://www.amul.com/m/action-at-amul
 http://www.amul.com/m/brands
 http://www.amul.com/files/pdf/wdiw-action_at-amilpdf
 http://www.marketreserch.com

books:
 Amul India 3.0

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