TABLE OF CONTENT

Sr. Topic

1. Introduction

2. Review of literature

3. Industry profile

4. Objectives of the study

5. Research methodology

6. Data analysis

7. Limitations

8. Findings

9. Recommendations
10. Conclusions
11. Bibliography
12. Appendix

i
 CHAPTER-1
INTRODUCTION

1
 INTRODUCTION

Mother Dairy Milk

In this booming period Mother Dairy is looking to take advantage of the

opportunities which are in galore available for all milk manufacturers. Mother Dairy -

Delhi was set up in 1974 under the Operation Flood Program. It is now a subsidiary

company of National Dairy Development Board (NDDB). Mother Dairy sources its

entire requirement of liquid milk from dairy cooperatives.

Mother Dairy milk (bulk vended) is fortified with vitamin A with 2000 IU per litre as

social accountability. This program started with the Mother Dairy, Delhi, in February

1980. Thereafter the dairy continues this program on their own without having any

financial assistance from the government since it is felt that BVM is generally

consumed by the middle/lower middle/poor population. It is found that the dietary

practices adopted by these classes are deficient in Vitamin A. Mother Dairy sources

significant part of its requirement of liquid milk from dairy cooperatives.

Processing of milk is controlled by process automation whereby state-of-the-

art microprocessor technology is adopted to integrate and completely automate all

functions of the processing areas to ensure high product quality, reliability and safety.

Mother Dairy markets approximately 4.8 million liters of milk daily in the

markets of Delhi, Mumbai, Saurashtra and Hyderabad. They have 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

2
exclusive outlets. As of April 2013, the dairy commands 71% and Amul commands

29% of market.

Amul Milk

Amul has spurred the White Revolution of India, which has made India the largest

producer of milk and milk products in the world.Amul's genesis is linked to the

freedom movement in India. Sardar Vallabh bhai Patel, an eminent Indian freedom

fighter encouraged the dairy farmers from the Kaira district in Gujarat to form

a cooperative to counter the 'exploitatively' low prices offered for their milk by the

monopoly milk Supplier of the area, Polson's Dairy. The dairy farmers met in

Samarkha (Kaira district, Gujarat) on the 4th of January 1946, and decided to set up a

milk producers' cooperative that would deal directly with the Bombay government,

the final buyer of their milk. This was the origin of the Anandmodel. Initially, when

the Bombay government refused to deal with the cooperative, the farmers called a

strike. The government finally relented when Bombay went without milk for a

fortnight. The successful union registered itself as the Kaira District Cooperative Milk

Producers' Union Ltd. (KCMPUL), Anand, in Gujarat in December 1946. And so

did GCMMF and brand AMUL establish consequently. The main motto of Amul is to

help farmers i.e. Milk producers. Amul system works under objective of highest

possible compensation to the milk producers and lowest possible price to consumers.

Farmer are paid money in cash payment for the milk. Milk gives them money for the

daily necessities. Amul is the one who started using their profits for the milk

producers common good.

3
 Over the last five and a half decades, Dairy Cooperatives in Gujarat have

created an economic network that links more than 3.1 million village milk producers

with millions of consumers in India. These cooperatives collect on an average

9.4 million liters of milk per day from their producer members, more than 70% of

whom are small, marginal farmers and landless labourers and include a sizeable

population of tribal folk and people belonging to the scheduled castes. The turnover of

GCMMF (AMUL) during 2012–13 was 97.74 billion (US$1.77 billion). It markets

the products, produced by the district milk unions in 30 dairy plants.

DETAIL OF THE MARKET

Mother Dairy:

Mother dairy ensures milk availability across all the retail outlets through a control

room set up at the dairy premises. The control room is very vital for efficient

distribution of milk to all the retail outlets. It organizes distribution routes so that

shops do not run out of milk. Each milk tanker is fitted with a wireless set. As soon as

the person in the control room learns that a shop is running out of milk, he contacts

the tanker nearest to the shop on wireless which then delivers the milk to the shop.

Figure 2.1 – Full Cream Milk Sales

4
Mother Dairy markets approximately 4.8 million liters of milk daily in the markets of

Delhi, Mumbai, Saurashtra and Hyderabad. They have 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. As of April 2013, the dairy commands 71% and amul commands 29% of

market.

Figure 2.2 – Tonned Milk Sales

Amul Milk

AMUL has the largest distribution network for any FMCG company. It has nearly 50

sales offices spread all over the country, more than 5 000 wholesale dealers and more

than 700 000 retailers.Amul became the world's largest vegetarian cheese and the

largest pouched-milk brand. AMUL is also the largest exporter of dairy products in

the country. AMUL is available today in over 40 countries of the world. AMUL is

5
exporting a wide variety of products which include Whole and Skimmed Milk

Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee) and Indigenous

Sweets. The major markets are USA, West Indies, and countries in Africa, the Gulf

Region, and SAARC neighbors, Singapore, The Philippines, Thailand, Japan and

China, and others such as Mauritius, Australia, Hong Kong and a few South African

countries.

Over the years Amul has been witnessing strong growth in this portfolio, with

the segment growing at 53%, as a result of growing consumer awareness and demand

for good quality milk, the urban population has especially been showing great interest

in long life UHT products like Amul Taaza, which are packed in Tetra Pak cartons,

which undergoes UHT treatment to remove all harmful microorganisms while

retaining the nutrition in the milk. Today Amul sells around 4-500,000 liters of UHT

milk and other value added products per day and forecast this demand to continue

growing at 25%.The UHT products have enabled Amul to position itself as the market

leader in packaged milk segment by penetrating the deeper and vast markets by

maintaining long shelf life of milk, without the need of maintain cold supply chains.

Amul has installed an "Any Time Milk" machine dispenses a 300-ml pouch of

fresh milk for Rs 10, at Anand's Amul Dairy. As a first step, Amul plans to install six

such ATMs in Anand itself. According to Rahul Kumar, MD of Amul Dairy, Amul

wants to add a whole range of dairy products, which could be dispensed through these

machines.

6
COMPARISON OF SELLING PREPOSITIONS

Product:

Amul India Mother Dairy

Amul Gold is Pasteurized milk and most

hygienic liquid milk available in the

market.

Amul Gold is available in Poly Pack -

500ml, 1000ml, 5 Ltr Mother dairy full cream is wholesome and

Amul Gold can be used for Tea or Coffee, packed with energy and nutrition that‟s

Sweets, Khoa, Curd, Buttermilk, Ghee essential for growing kids It makes them

Amul Taaza is pasteurized milk and most stronger from within and keeps them active

hygienic liquid milk available in the and healthy.

market Mother Dairy Toned Milk is a perfect blend

Amul Taaza is available in Poly Pack - of good health and wholesome taste. It‟s an

500ml, 1000ml, 200ml, 5 Ltr ideal choice for people in search of a

It can be used for Direct consumption, nutritionally balanced diet that does not

Making of: Tea or Coffee, Sweets, Khoa, compromise on taste. It is the right way to

Curd, Buttermilk, Ghee stay fit and fine, jolly and cheerful.

7
Price

Amul India Mother Dairy

At the time Amul was formed, consumers had

limited purchasing power, and modest

consumption levels of milk and other dairy

products. Thus Amul adopted a low-cost price

strategy to make its products affordable and

attractive to consumers by guaranteeing them

value for money.

Amul's Taaza brand of toned milk that sold for

Rs 34 now costs Rs 36. In early 2013, it was Mother Dairy toned milk now costs Rs

available for Rs 24-26 per litre. Amul Gold, the 36 per liter

full cream variant, now costs Rs 46 over Rs 44. Mother Dairy, the full cream variant,

The rate in 2013 was Rs 34-36 per litre. now costs Rs 46

8
Place

Amul India Mother Dairy

However, as far as other dairy products are

concerned, Mother Dairy plans to expand

across the board. Other than milk, for most

state federations, dairy products are still a

small part of their operations. So they are

taking their products to regions across India,

where they see enough market potential. In

ice creams, it was only two years ago that

Mother Dairy entered its first market outside

Currently Amul has 2.41 million producer Delhi -UP and Punjab. Today, it's extended its

members with milk collection average of operation to Haryana, Jaipur, Mumbai and

5.08 million liters/day. Besides India, Kolkata as well. Next year, it plans to go

Amul has entered overseas markets such south to Hyderabad and Bangalore. In the

as Mauritius, UAE, USA, Bangladesh, case of butter and cheese, it's present across

Australia, China, Singapore, Hong Kong north India, Mumbai and Kolkata, and has

and a few South African countries. Its bid plans to enter Bangalore by year-end. In UTH

to enter Japanese market in 1994 had not milk, it has entered Mumbai and the milk-

succeeded, but now it has fresh plans of short areas of West Bengal and north-east.

flooding the Japanese markets. Other For ghee, although the current focus is the

potential markets being considered northern region, it has plans for a nationwide

include Sri Lanka. presence.

9
Promotion:

Amul India Mother Dairy

Gujarat Co-operative Milk Marketing Federation

(GCMMF) has launched a print and digital

campaign for its brand Amul.

On the marketing front, Mother Dairy
Each ad of the campaign features a person with
says it's trying to take its product
a milk moustache who „Eats milk with every
campaigns and communications to a
meal‟, and lists exaggerated benefits of doing so
higher platform. For instance, in the
alongside nutritional benefits of Amul products.
case of milk, the campaigns do not talk
The characters depicted include a tennis player
about the obvious benefits - milk is
who wins doubles playing alone; a man who
good for health, it has calcium and so
lifts the car to change the tyre; an office geek
on - but rather it targets children and
who hasn‟t taken sick leave in five years; and a
are created around ideas such as "The
young woman who flaunts her out-of-the-
country needs you, grow faster".
shower look 24x7. Amul‟s dairy product range

including milk, butter, paneer, ice cream and

ghee are showcased.

10
 Amul takes humour route, to say „„Eat‟ milk

with every meal‟

POSITIONING MAP:

Figure 2.3 – Positioning Map

The above figure 2.3 shows the positioning map of Amul and Mother Dairy. Amul

has positioned it as a slow perishable and high on purity comparative to other milk

brands. On the second map, Amul has positioned as high on taste and health. On the

other hand, Mother Dairy has positioned as fast perishable as compared to Amul

however high on purity as compared to Amul. Mother Dairy is less healthy and low

on taste as compared to Amul.

11
ABOUT THE PRODUCT:
Amul India Mother Dairy

Company
Product Name Amul Gold Mother Dairy Milk
Pasteurized milk Amul milk meets Pasteurized milk, meets the PFA
Description the PFA standards for the standards for the respective type
respective type of milk. of milk
Poly Pack - 500ml, 1000ml, 5 Ltr * Poly Pack - 500ml, 1000ml
Packing
* In Selected markets only

Product Specifications:
Company Amul India Mother Dairy
FAT(%) 6.0 min FAT(%) 6.0 min
Composition
SNF (%)* 9.0 min SNF (%)* 9.0 min
Serving Size 200 ml 250 ml
Amount per 100 ml 110 ml
Energy 87 kcal 87 kcal
Energy from FAT 54 kcal 54 kcal
Total FAT 6g 8g
Saturated FAT 3.7 g 3.9 g
Cholesterol 16 mg 16 mg
Total Carbohydrate 5.0 g 5.0 g
Added Sugar 0g 0g
Protein 3.3 g 3.0 g
Calcium 150 mg 150 mg
Phosphorus 130 mg 130 mg
Sodium 50 mg 50 mg
Thiamine 42 mcg 42 mcg
Riboflavin 120 mcg 120 mcg
Niacin 100 mcg 100 mcg
Folic Acid 7.5 mcg 7.5 mcg
Vit. A(Retinol) 65 mcg 65 mcg
*Approx. values
48 Hours from the date of packing if kept under refrigeration
Shelf Life
below 8°C

Storage condition Under Refrigeration (Below 8°C)

12
Product Features, Application and Market Availability:
Company Amul India
Amul Milk is the most hygienic liquid
milk available in the market.
It is pasteurized in state-of-the-art
processing plants and pouch-packed
to make it conveniently available to
Product Features consumers.
Direct consumption, Making of: Tea or
Coffee, Sweets, Khoa, Curd,
Application Buttermilk, Ghee
Gujarat, Delhi & NCR, Mumbai,
Kolkata, Kanpur, Lucknow, Allahabad,
Agra, Meerut, Aligarh, Asansol,
Nagpur, Raipur, Indore, Bhopal, Jaipur,
Ajmer, Pushkar, Udaipur, Jodhpur, Pali
Market Availability , Pune, Nasi
Mother Dairy
Packed with energy and
nutrition that’s essential for
growing kids. It makes them
stronger from within and keeps
them active and healthy.
Direct consumption, Making of:
Tea or Coffee, Sweets, Khoa,
Curd, Buttermilk, Ghee
Delhi, Mumbai, Saurashtra and
Hyderabad and Lucknow
13
 CHAPTER-2
REVIEW OF LITERATURE

14
 LITERATURE REVIEW

Dhanabalan. M. (2009)1 opined that dairy has an important role in improving the

overall economic conditions of rural India. To maintain the ecological balance, there

is need for sustainable and balanced development of agriculture and allied sectors.

From our first plan onwards, planners have given priority to allied sector for the

economic development of the rural sector. Dairy farming is described as a small

industry which provides gainful employment opportunities. It comprises of about six

per cent of the national income.

Mandeep Singh and Joshi.A.S. (2008)2 reported the economic analysis of dairy

farming has been reported for marginal and small farmers in Punjab for the year 2003-

04. It has been found that a majority of the farm households are not able to meet their

requirements from their income from crops. Further dairy farming has emerged as a

major allied enterprise for supplementing the income of marginal and small farmers in

Punjab. Income from off-farm sources has been identified another important factor

contributing significantly to the disposable income of these farm households. The

study has suggested to further exploit the potential of off-farm sources towards

meeting the domestic expenditure. Also, the technical efficiency of crops and dairy

farming should be improved to provide more income to farmers.

which Tehatta-II block was selected purposely. The block consisted of 7 gram

panchayats and 2 gram panchayats namely Palsunda-I and Barnia were selected

randomly. Fifty dairy farmers were selected from each gram panchayats based on

judgement sampling. The study area was more or less homogenous with respect to

animal husbandry practices, socio-cultural conditions, facilities for service and critical

inputs. Most of the dairy farmers in study areas were unorganized in milk production.

15
Relevant information from the individual milk producers (dairy farmers) has been

collected through personal interrogation method with the help of a structured

interview schedule prepared for the study. The study revealed that crossbred cows

were more economical and gave higher yield than the indigenous cows and inclusion

of a few crossbred cows can increase the income of a dairy entrepreneur and provide

gainful and round the year employment. Family labour work was carried out in the

mill pocket areas of eight districts of Marathwada region. About 59 percent of the

dairy farmers belong to general (unreserved) category, 25 percent were backward

class and only 8 percent each of SC and ST. The landless dairymen equally

contributed with dairymen having (large) land; 13 landless dairymen reported

comparable lactation yield as the number of milch animals increased, the herd

lactation performance decreased. The animals maintained by joint family were not

properly cared for while they were cared for properly by singly family.

Sintayehu Yigrem, et al. (2008)4 studied about two hundred forty dairy producers.

Both rural and urban producers in the four major towns representing the Shashemene–

Dilla area in southern Ethiopia, were selected using a multi-stage sampling

techniques, with the objective of characterizing dairy production,

processing/handling, marketing systems as well as to prioritize constraints and

opportunities for dairy development in the area. To characterize dairy marketing

systems in the study area, a Rapid Market Appraisal (RMA) technique was employed.

Dairy marketing systems were studied with the help of topical guidelines. Dairy

producers were interviewed using a pre-tested and structured formal questionnaire.

Two major dairy production systems, namely the urban and mixed crop–livestock

16
systems were identified, and again classified into two categories based on the major

crops grown as a cereal crop producing and earnest-coffee producing areas. The

average family size of urban and rural dairy producers was 7.19 ± 0.26 and 7.58 ±

0.23 persons, respectively. Dairy contributed about half of the income of urban

producers but it made up only 1.6% of the total income of families in the mixed

croplivestock production system. Average farm size of households in the mixed

system was 1.14 ± 0.99 ha, while more than 97% of the urban producers use their own

residence compound for dairying, which is only 200–400 square meters. Average herd

size per household in the cereal based mixed system (3.8 ± 0.42) was higher than in

the earnest - coffee based systems (2.3 ± 0.36). Out of the total herds of urban

producers, 32% of cattle were local cows while 19% were crossbred. Husbandry

practices like feeding, watering, housing, breeding, milking, calf rearing, waste

management, and record keeping were also different between the two production

systems. An estimated total of 9,645,020 litres of milk was produced annually from

4463 small and medium farms in the four towns. The majority of producers (61.7%)

in the mixed crop–livestock system process produced milk for home, while the

majority of urban producers (79.2%) produced milk for sale.

Radha Krishnan, Nigam.S, and Shantanu Kumar (2008)5 in their opinion growing

human population, rising per capita income and increasing urbanization are fuelling

rapid growth in the demand for food and animal origin in developing countries. India

possesses the largest livestock population in the world. Contrary to the large

population of livestock in India productivity of Indian livestock is low compared to

many developing countries.

17
Waghmare P.R. and Hedgire D.N. (2007)6 opined that Milk productions in India

during 1950-51 was 17 million tonnes which has reached 78 million tonnes in 1997-

98. Presently India ranks first in the world in milk production. The Operation Flood

Programme was instrumental in dairy development activities. These programmes are

useful in upgrading the standard of living of farmers.

18
 CHAPTER-3
COMPANY PROFILE

19
 COMPANY PROFILE

Amul

Type Company

Industry Dairy/fast-moving consumer good (FMCG)

Founded 1946; 73 years ago

Founder Tribhuvandas Patel

Headquarters Anand, Gujarat, India

Area served worldwide

Key people Rupinder Singh Sodhi (Managing Director)

Revenue ₹38,000 crore(US$5.3 billion) (2018-19)

Number of 752 (Marketing Arm)

employees 3.6 million (milk producing members)
Website www.amul.com/

Anand Milk Union Limited or Amul is an Indian dairy company, based at Anand in

the state of Gujarat.

Formed in 1948, 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.

20
The white revolution was spearheaded by Tribhuvandas Patel under the guidance of

Sardar 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. Verghese Kurien three years after the white revolution. 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 become the largest food

brand in India and has ventured into markets overseas.

21
Amul India:
Amul was started when milk became a symbol of protest.
The company Founded in 1946 to stop the exploitation by
middlemen, inspired by the freedom movement. The seeds
of this unusual saga were sown more than 65 years back in
Anand, a small town in the state of Gujarat in western
India. The exploitative trade practices followed by the local trade cartel triggered off
the cooperative movement. Angered by unfair and manipulative practices followed by
the trade, the farmers of the district approached the great Indian patriot Sardar
Vallabhbhai Patel for a solution. He advised them to get rid of middlemen and form
their own co-operative, which would have procurement, processing and marketing
under their control.

In 1946, the farmers of this area went on a milk strike refusing to be cowed
down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders
like Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in
1946.

This co-operative, the Kaira District Co-operative Milk Producers Union Ltd.
began with just two village dairy co-operative societies and 247 liters of milk and is
today better known as Amul Dairy. Amul grew from strength to strength thanks to the
inspired leadership of Tribhuvandas Patel, the founder Chairman and the committed
professionalism of Dr Verghese Kurien, who was entrusted the task of running the
dairy from 1950.

The then Prime Minister of India, Lal Bahadur Shastri decided that the same
approach should become the basis of a National Dairy Development policy. He
understood that the success of Amul could be attributed to four important factors. The
farmers owned the dairy, their elected representatives managed the village societies
and the district union, a they employed professionals to operate the dairy and manage
its business. Most importantly, the co-operatives were sensitive to the needs of
farmers and responsive to their demands.
At his instance in 1965 the National Dairy Development Board was set up
with the basic objective of replicating the Amul model. Dr. Kurien was chosen to

22
head the institution as its Chairman and asked to replicate this model throughout the
country.

Business Model:
The Amul Model of dairy development is a
three-tiered structure with the dairy
cooperative societies at the village level
federated under a milk union at the district
level and a federation of member unions at the
state level.
 Establishment of a direct linkage
between milk producers and
consumers by eliminating middlemen
 Milk Producers (farmers) control
procurement, processing and
marketing
 Professional management

23
The Amul model has helped India to emerge as the largest milk producer in the world.
More than 15 million milk producers pour their milk in 1, 44,246 dairy cooperative
societies across the country. Their milk is processed in 177 District Co-operative
Unions and marketed by 22 State Marketing Federations, ensuring a better life for
millions.

24
 It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly
known as 'AMUL', which aims to provide remunerative returns to the farmers and
also serve the interest of consumers by providing quality products which are good
value for money. Its success has not only been emulated in India but serves as a
model for rest of the World. It is exclusive marketing organisation
of 'Amul' and 'Sagar' branded products. It operates through 47 Sales Offices and has
a dealer network of 5000 dealers and 10 lakh retailers, one of the largest such
networks in India. Its product range comprises milk, milk powder, health beverages,
ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional
Indian sweets, etc.

GCMMF is India's largest exporter of Dairy Products. It has been accorded a

"Trading House" status. Many of our products are available in USA, Gulf Countries,

Singapore, The Philippines, Japan, China and Australia. GCMMF has received the

APEDA Award from Government of India for Excellence in Dairy Product Exports

25
for the last 13 years. For the year 2009-10, GCMMF has been awarded "Golden

Trophy' for its outstanding export performance and contribution in dairy products

sector by APEDA.

For its consistent adherence to quality, customer focus and dependability, GCMMF

has received numerous awards and accolades over the years. It received the Rajiv

Gandhi National Quality Award in1999 in Best of All Category. In 2002 GCMMF

bagged India's Most Respected Company Award instituted by Business World. In

2003, it was awarded the IMC Ramkrishna Bajaj National Quality Award - 2003 for

adopting noteworthy quality management practices for logistics and procurement.

GCMMF is the first and only Indian organisation to win topmost International Dairy

Federation Marketing Award for probiotic ice cream launch in 2007.

The Amul brand is not only a product, but also a movement. It is in one way, the

representation of the economic freedom of farmers. It has given farmers the courage

to dream. To hope. To live.

26
Member Unions:
 Kaira District Cooperative Milk Producers' Union Ltd., Anand
 Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana
 Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar
 Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur
 Surat District Cooperative Milk Producers' Union Ltd., Surat
 Baroda District Cooperative Milk Producers' Union Ltd., Vadodara
 Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra
 Valsad District Cooperative Milk Producers' Union Ltd., Valsad
 Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch
 Ahmedabad District Cooperative Milk Producers' Union Ltd., Ahmedabad
 Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot
 Gandhinagar District Cooperative Milk Producers' Union Ltd., Gandhinagar
 Surendranagar District Cooperative Milk Producers' Union Ltd.,
Surendranagar
 Amreli District Cooperative Milk Producers Union Ltd., Amreli
 Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar
 Kutch District Cooperative Milk Producers' Union Ltd., Anjar

Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050

27
 Sales Turnover Rs (million) US $ (in million)
2007-08 52554 1325
2008-09 67113 1504
2009-10 80053 1700
2010-11 97742 2172
2011-12 116680 2500

Product Portfolio:
Breadspreads Amul Butter, Amul Lite, Delicious Table Margarine

Amul Pasteurized Processed Cheddar Cheese, Amul

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

Amul Gold Full Cream Milk 6% fat, Amul Shakti

Fresh Milk Standardised Milk 4.5% Fat, Amul Taaza Toned Milk 3%
fat,Amul Slim & Trim, Amul Cow Milk

Amul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk,

UHT Milk Range Amul Taaza 1.5% fat Milk, Amul Lite Slim-n-Trim Milk,
Amul Fresh Cream

Amul Full Cream Milk Powder, Amulya Dairy Whitener,

Milk Powders Sagar Skimmed Milk Powder, Amulspray Infant Milk
Food, Sagar Tea and Coffee Whitener

Amul Kool Flavored Milk, Amul Kool Cafe, Amul Kool

Milk Drink Koko,Amul Kool Millk Shaake, Amul Kool Chocolate
Milk,Nutramul Energy Drink

Health Drink Stamina Instant Energy Drink

Brown Beverage Nutramul Malted Milk Food

Amul Milk (fresh curd), Amul Masti Spiced Butter

Curd Products
Milk,Amul Lassee, Amul Flaavyo Yoghurt

28
Pure Ghee Amul Pure Ghee, Sagar Pure Ghee

Sweetened Condensed Milk Amul Mithaimate

Mithaee Range (Ethnic Amul Shrikhand, Amul Mithaee Gulabjamuns, Amul

Sweets) Basundi,Avsar Ladoos

Ice-cream Sundae Range, probiotic,,sugarfree and probiotic

Amul Milk Chocolate, Amul Fruit & Nut Chocolate,

Chocolate & Confectionery
Amul Chocozoo, Amul Bindass, Amul Fundoo

29
Mother Dairy:

Mother Dairy was set up in 1974 under the Operation

Flood Program. A wholly owned company of the National

Dairy Development Board (NDDB), Mother Dairy

manufactures, markets & sells milk and milk products under the Mother Dairy brand

(Milk, Cultured Products, Ice Creams, Paneer and Ghee), Dhara range of edible oils,

Safal range of fresh Fruit & vegetables, Frozen Vegetables, Processed Fruit &

Vegetable Products, Fruit Pulps & Concentrates in bulk aseptic packaging and fruit

juices at a national level through its sales and distribution networks for marketing

food items.

Mother Dairy sources significant part of its requirement of liquid milk from dairy

cooperatives. Similarly, Mother Dairy sources fruits and vegetables from farmers /

growers associations. Mother Dairy also contributes to the cause of oilseeds grower

cooperatives that manufacture/ pack the Dhara range of edible oils by undertaking to

nationally market all Dhara products. It is Mother Dairy‟s constant endeavor to ensure

that milk producers and farmers regularly and continually receive market prices by

offering quality milk, milk products and other food products to consumers at

30
competitive prices and uphold institutional structures that empower milk producers

and farmers through processes that are equitable.

At Mother Dairy, processing of milk is controlled by process automation

whereby state-of-the-art microprocessor technology is adopted to integrate and

completely automate all functions of the milk processing areas to ensure high product

quality/ reliability and safety. Mother Dairy is an ISO 9001:2008 (QMS), ISO

22000:2005 (FSMS) and ISO 14001:2004 (EMS) certified organization. Mother Dairy

has Certificate of Approval from Export Inspection Council of India also. Moreover,

its Quality Assurance Laboratory is certified by National Accreditation Board for

Testing and Calibration Laboratory (NABL)-Department of Science and Technology,

Government of India.

Mother Dairy markets approximately 3.2 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 2.5 million liters of

milk daily and undertakes its marketing operations through around 1400 retail outlets

and over 1000 exclusive outlets of Mother Dairy.

The company derives significant competitive advantage from its unique

distribution network of bulk vending milk booths, retail outlets and mobile units.

Mother Dairy ice creams launched in the year 1995 have shown continuous growth

over the years and today boasts of approximately 62% market share in Delhi and

NCR. Mother Dairy also manufactures and markets a wide range of dairy products

that include Butter, Mishti Doi, Paneer, Dahi, Ghee, Cheese, UHT Milk, Probiotic

31
Products, Lassi &Flavored Milk and most of these products are available across the

country.

Safal is the market leader in the organized fruit & vegetable retail business in

Delhi NCR where it sells an average of 300 MT/day through a network of 350+

exclusive retail outlets under brand name Safal/ Safal Pure Veg, supported by a state-

of-the-art large and ultramodern Central Distribution Facility located in Delhi with an

annual capacity to handle and process 2,00,000 MT of fresh fruits and vegetables.

Safal today operates the largest number of F&V Stores in Delhi NCR and has further

expansion plans in place. Retail Outlets are also present in Bangalore under the brand

name Safal Daily Fresh.

Safal has a prominent presence in Export market spread 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. A state-of-the-art fruit processing plant of fruit handling

capacity of 15,000 MT annually, setup in 1996 at Mumbai supplies quality products

in the international market. With increasing demand another state-of-the-art fruit

processing plant has been set up at Bangalore with fruit handling capacity of around

50,000 MT annually.

The Dhara range of edible oils is marketed by Mother dairy. Today it is one of the

leading brand of edible oils and is available across the country in over 2, 00,000

outlets. The brand is known for its PURITY and focuses on the indigenous oil. The

brand is currently available in the following variants: Refined Vegetable Oil, Refined

32
Soybean Oil, Refined Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard

Oil and Filtered Groundnut Oil.

Mother Dairy has over the past 3 decades, harnessed the power of farmer

cooperatives to deliver a range of delicious products and bring a smile on your face.

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.

Quality:

Mother Dairy is committed to deliver

products which meet all regulatory,

industrial, consumer Quality and Food

safety requirements to our valued

consumers.

33
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 endeavor 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.

34
Product Quality:

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

35
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.

36
 CHAPTER-4
OBJECTIVES OF THE STUDY

37
 RESEARCH OBJECTIVES

 To perform the comparative analysis between Amul Milk and Mother Dairy Milk.

 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

38
 CHAPTER-5
RESEARCH METHODOLOGY

39
 RESEARCH METHODOLOGY
Research methodology is a way to systematically represent research on any problem.

It tends taken by the researcher in studying the research problem along with the logic

behind them. It tends to define the methodology for the solution of the problem that

has been undertaken for the purpose of the study. The methodology may include

publication research, interviews, surveys and other research techniques.

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis

of data in a manner that aims to combine relevance to the research purpose
with economy in procedure. In fact, the research design is the conceptual
structure within which research is conducted. This research was descriptive in
nature.

DESCRIPTIVE RESEARCH:

The research undertaken will be a descriptive research as it was concerned

with specific predictions, with narration of facts and characteristics concerning
A COMPARATIVE STUDY ON OF AMUL INDIA AND MOTHER DAIRY
PRODUCTS.

SAMPLING DESIGN

The following factors have been decided within the scope of sample design:

Universe of study: Lucknow.

Sample Size: A sample of minimum respondents will be selected from various areas

of Lucknow. An effort was made to select respondents evenly. The survey will be

carried out on 100 respondents.

Sample Unit: In this project sampling unit consisted of the various individuals who

are the customers of Amul India and Mother Dairy.

40
Sampling Technique: For the purpose of research convenient sampling technique

will be used.

Sampling Frame: It consisted of various sources from where information about the

respondent is extracted.

DATA COLLECTION

There will be two types of data sources used in this research. These will be

Secondary data

Secondary data is the data collected from already been use or published information
like journals, diaries, books, etc .In this research project, secondary source used were
various journals, and website of various online journals.

Primary data

Primary data is the data collected for the first time from the source and never have
been used earlier. The data can be collected through interviews, observations and
questionnaires. In this project, an appropriate questionnaire will be designed which
will be filled by the customers of Amul and Mother Dairy.

41
 CHAPTER-6

DATA ANALYSIS

42
 Analysis and Interpretation

Q1. How will you rate the quality of Amul Milk/ Mother Dairy Milk?
Excellent Good Average Poor
Amul Milk 31% 44% 19% 6%
Mother Dairy Milk 25% 43% 22% 10%

Figure 4.2

Figure 4.2 shows that 31% respondents replied that Amul Milk has excellent quality
however 25% respondents replied that Mother Dairy Milk excellent quality, 44%
respondents replied that Amul Milk is good in terms of quality however 43%
respondents replied that Mother Dairy Milk is good in terms of quality.

43
Q2. Which Milk brand is more demanding by the customer?
Amul Milk 64%
Mother Dairy Milk 36%

Figure 4.3
Figure 4.3 shows that 64% respondents replied that Amul Milk is more demanding by
the customer however 36% respondents replied that Mother Dairy Milk is more
demanding by the customer.

44
Q3. How will you rate the packaging of Amul Milk/Mother Dairy Milk in terms
of safety and attractiveness?
Excellent Good Average Poor
Amul Milk 30% 45% 22% 6%
Mother Dairy Milk 33% 46% 13% 8%

Figure 4.4
Figure 4.4 shows that 30% respondents replied that Amul Milk has excellent
packaging in terms of safety and attractiveness however 33% respondents replied that
Mother Dairy Milk has excellent packaging in terms of safety and attractiveness. 42%
respondents replied that Amul Milk has good packaging in terms of safety and
attractiveness however 46% respondents replied that Mother Dairy Milk has good
packaging in terms of safety and attractiveness.

45
Q4. How will you rate the Amul Milk/Mother Dairy Milk in terms of nutritive
values?
Excellent Good Average Poor
Amul Milk 34% 40% 15% 11%
Mother Dairy Milk 30% 49% 11% 10%

Figure 4.5
Figure 4.5 shows that 34% respondents replied that Amul Milk is excellent in terms of
nutritive values however 30% respondents replied that Mother Dairy Milk is excellent
in terms of nutritive values. 40% respondents replied that Amul Milk is good in terms
of nutritive values however 49% respondents replied that Mother Dairy Milk is good
in terms of nutritive values.

46
Q5. How will you rate the Amul Milk/Mother Dairy Milk in terms of taste?
Excellent Good Average Poor
Amul Milk 24% 43% 23% 10%
Mother Dairy Milk 31% 45% 20% 4%

Figure 4.6
Figure 4.6 shows that 24% respondents replied that Amul Milk is excellent in terms of
taste however 31% respondents replied that Mother Dairy Milk is excellent in terms
of taste. 43% respondents replied that Amul Milk is good in terms of taste however
45% respondents replied that Mother Dairy Milk is good in terms of taste.

47
CHAPTER-7

LIMITATIONS

48
 LIMITATIONS

1. The sample size was restricted to hundred customers.

2. Resources like time and cost was a constraint.

3. The study was conducted in Lucknow city. So the findings and conclusion

drawn are applicable to Lucknow only.

4. The methods used for analysis and interpretation purpose may have some

limitations of their own and some errors can always creep in.

Type your text

49
CHAPTER-8
FINDINGS

50
 FINDINGS

 31% respondents replied that Amul Milk has excellent quality however 25%

respondents replied that Mother Dairy Milk excellent quality, 44%

respondents replied that Amul Milk is good in terms of quality however 43%

respondents replied that Mother Dairy Milk is good in terms of quality

 64% respondents replied that Amul Milk is more demanding by the customer

however 36% respondents replied that Mother Dairy Milk is more demanding

by the customer

 30% respondents replied that Amul Milk has excellent packaging in terms of

safety and attractiveness however 33% respondents replied that Mother Dairy

Milk has excellent packaging in terms of safety and attractiveness. 42%

respondents replied that Amul Milk has good packaging in terms of safety and

attractiveness however 46% respondents replied that Mother Dairy Milk has

good packaging in terms of safety and attractiveness.

 34% respondents replied that Amul Milk is excellent in terms of nutritive

values however 30% respondents replied that Mother Dairy Milk is excellent

in terms of nutritive values. 40% respondents replied that Amul Milk is good

in terms of nutritive values however 49% respondents replied that Mother

Dairy Milk is good in terms of nutritive values.

 24% respondents replied that Amul Milk is excellent in terms of taste however

31% respondents replied that Mother Dairy Milk is excellent in terms of taste.

43% respondents replied that Amul Milk is good in terms of taste however

45% respondents replied that Mother Dairy Milk is good in terms of taste.

51
 28% respondents replied that Amul Milk is excellent in terms of healthiness

however 22% respondents replied that Mother Dairy Milk is excellent in terms

of healthiness. 46% respondents replied that Amul Milk is good in terms of

healthiness however 52% respondents replied that Mother Dairy Milk is good

in terms of healthiness.

 25% respondents replied that Amul Milk is excellent in terms of value for

money however 27% respondents replied that Mother Dairy Milk is excellent

in terms of value for money. 42% respondents replied that Amul Milk is good

in terms of value for money however 43% respondents replied that Mother

Dairy Milk is good in terms of value for money. 

 75% respondents replied that the pricing of Amul Milk is reasonable however

69% respondents replied that the pricing of Mother Dairy Milk is reasonable.

 32% respondents were strongly agreed with the fact that Amul Milk always

available at their shops however 38% respondents were strongly agreed with

the fact that Mother Dairy Milk always available at their shops. 49%

respondents were agreed with the fact that Amul Milk always available at their

shops however 45% respondents were agreed with the fact that Mother Dairy

Milk always available at their shops.

 21% respondents replied that Amul Milk has excellent distribution system

however 22% respondents replied that Mother Dairy Milk has excellent

distribution system. 44% respondents replied that Amul Milk has good

distribution system however 47% respondents replied that Mother Dairy Milk

has good distribution system.

 23% rated the promotional efforts of Amul Milk as very effective however

22% rated the promotional efforts of Mother Dairy Milk as very effective.

52
 56% rated the promotional efforts of Amul Milk as effective however 53%

rated the promotional efforts of Mother Dairy Milk as effective.

 31% rated the TV advertisement of Amul Milk as very effective however 32%

rated the TV advertisement of Mother Dairy Milk as very effective. 47% rated

the TV advertisement of Amul Milk as effective however 49% rated the TV

advertisement of Mother Dairy Milk as effective. 

 25% rated the online advertisement of Amul Milk as very effective however

30% rated the online advertisement of Mother Dairy Milk as very effective.

54% rated the online advertisement of Amul Milk as effective however 52%

rated the online advertisement of Mother Dairy Milk as effective.

53
 CHAPTER-9
RECOMMENDATIONS

54
 RECOMMENDATIONS

 Both companies can cut costs for some period of time followed immediately

by strong advertising. As we have seen during the research that most of

institutions give most preference to the margin provided to them on milk

(except coffee outlets). As the quality and taste and availability of mother

dairy milk are best in market and local milk companies‟ good margin to them,

Price remains the main criteria of institutional milk sales.

 Can start schemes like cash prizes or foreign trips on scratching the barcode

on the packet

 Locate the institutions using competitor‟s milk and provide them attractive

offers to increase the market share so that at least the big competitors will not

try to expand.

 Mergers and Acquisition in the milk industry with local players help the

company in increasing its distribution network and Market share. Following

this both companies can buy the milk from local dairies taking over their

business which is substantial in terms of market share

 Both companies should introduce a mascot for the milk. This will help in easy

Brand differentiation and Recognition.

 Efficiency in distribution

 Remove communication barriers and misconceptions between the Institutions

and distributors by effective communication with institutions time to time.

55
CHAPTER-10
CONCLUSION

56
 CONCLUSION

In today‟s competitive world while entering in the market it is very necessary to have

good knowledge of the potential of a particular market. The information regarding the

activities of competitor‟s existing in the market so that we can plan our each activity

according to that. It is also necessary to retain the existing customers apart from

attracting the new customers. The final outcome of the project is that the parameters

which hinder the sale of milk products of Mother dairy and Amul are Price, Quality,

Service and Taste. Milk market is a totally unpredictable market and the organization

should be over-cautious of any complaints that come into milk as it includes the

sentiments of a mother for her kid and she would not prefer to give anything to her

kid for which she is not 100% satisfied. So the company should take every step

possible to contain these problems which in some way or the other affects the sale of

Mother dairy and Amul and its retailers. It is concluded that Mother dairy milk i.e.

Single Toned milk has a high potential in the market and it is the known to its

customers and its acceptance is comparatively higher as of other variants and

competitors present in the market, on the other side most of the consumer

continuously using Amul gold milk and they do not want to switch over to other

brand.

57
 CHAPTER-11
BIBLIOGRAPHY

58
 BIBLIOGRAPHY

 Candler, W. and N. Kumar (1998) India: The Dairy Revolution: Impact of

Dairy Development in India and the World Bank‟s Contribution, The World

Bank Operation Evaluation Department (OED), Washington, D.C.: The World

Bank.

 Chahal, S. S. and Gill, G. S. (1988) Milk cooperatives for rural development

in Punjab. Kurukshetra, 36 (5): 12-15.

 Rajan, S. R. G. (1990) Growth of dairy industry in Andhra Pradesh. Indian

Dairyman. 42 (3): 93-95.

 Rao, S. V. N., V. Venkatasubramanian and B.S. Rao, (1995) Constraints of

dairy development in India: A review. Indian Journal of Animal Production

and Management, 111(4): 177-185.

 Sharma, K. N. S., J. Chander and S. Singh, (1974) A study in the procurement

of milk by organized sector of dairy industry in India. Indian Dairyman. 26

(3): 107-111.

 Sharma, K.N.S., S. Singh and J. Chander (1974) Marketing and distribution of

fluid milk through organized sector of dairy industry in India. Indian

Dairyman, 26 (5): 187-192.

 Shukla, R.K. and S.D. Brahmankar (1999) Impact Evaluation of Operation

Flood on Rural Dairy Sector, National Council of Applied Economic

Research, New Delhi, pp. 58-60.

59
CHAPTER-12
APPENDIX

60
 QUESTIONNAIRE

Q1. How will you rate the quality of Amul Milk/ Mother Dairy Milk?
Excellent Good Average Poor
Amul Milk
Mother Dairy Milk

Q2. Which milk brand is more demanding by the customer?

Amul Milk
Mother Dairy Milk

Q3. How will you rate the packaging of Amul Milk/ Mother Dairy Milk in terms of
safety and attractiveness?
Excellent Good Average Poor
Amul Milk
Mother Dairy Milk

Q4. How will you rate the Amul Milk/ Mother Dairy Milk in terms of nutritive
values?
Excellent Good Average Poor
Amul Milk
Mother Dairy Milk

Q5. How will you rate the Amul Milk/ Mother Dairy Milk in terms of taste?
Excellent Good Average Poor
Amul Milk
Mother Dairy Milk

Q6. How will you rate the Amul Milk/ Mother Dairy Milk in terms of healthiness?
Excellent Good Average Poor
Amul Milk
Mother Dairy Milk

61
Q7. How will you rate the Amul Milk/ Mother Dairy Milk in terms of value for
money?
Excellent Good Average Poor
Amul Milk
Mother Dairy Milk

Q8. How will you rate the pricing of Amul Milk/ Mother Dairy Milk?
High Reasonable Low
Amul Milk
Mother Dairy Milk

Q9. Amul Milk/ Mother Dairy Milk always available at your shop
Strongly Strongly
Agree Agree Neutral Disagree Disagree
Amul Milk
Mother Dairy Milk

Q10. How will you rate the distribution system of Amul Milk/ Mother Dairy Milk?
Excellent Good Average Poor
Amul Milk
Mother Dairy Milk

62
Q11. How will you rate the promotional efforts of Amul Milk/ Mother Dairy Milk?
Very Not
Effective Effective Effective Not at all Effective
Amul Milk
Mother Dairy Milk

Q12. How will you rate the TV advertisement of Amul Milk/ Mother Dairy Milk?
Very Not
Effective Effective Effective Not at all Effective
Amul Milk
Mother Dairy Milk

Q13. How will you rate the online advertisement of Amul Milk/ Mother Dairy Milk?
Very Not
Effective Effective Effective Not at all Effective
Amul Milk
Mother Dairy Milk

63