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A project Report on



Submitted by






A report submitted in partial fulfillment of the degree

of MBA program of the



The main priority of every nation is to ensure food security for its citizens. The best way to
achieve this goal in a harmonious and sustainable manner is by ensuring economic well-
being of the men and women who feed our nation. The founding fathers of our nation had
clearly elucidated that farmers are the backbone of India and unless they prosper, our nation
cannot realize its growth potential.

Sardar Vallabhbhai Patel knew that India will achieve true independence only when
economic welfare of its farmers is assured.To achieve his vision, he inspired creation of
institution like AMUL, which are responsive to the genuine needs of rural India. Shri Lal
Bhadur Shasrti strongly believed that our farmer will make our country self sufficient in
terms of foodrequirement provided they are adequately supported with appropriate public
policies with respect to input ant output pricing and marketing. Shastriji repeatedly
emphasized the fact that our food security systems should be largely based on domestic
production, since agriculture provides livelihood to a vast majority of our population. During
his tenure as Prime minister he inspired creation of institutional structures which enabled
India to achieve self-reliance in the dairy sector.

Mahatma Gandhi had repeatedly asserted that ‘REAL INDIA” lives in its VILLAGES. He
stressed emphatically on leveraging the ‘cooperative form of organization’ as an effective
instrument of rural development. Sardar Vallabhbhai Patel had great faith in co-operation as
means of promoting farmer’s well being. He was the prime source of inspiration behind
“AMUL” condition of rural India.

“India is on a passage to prosperity. Health, Wealth and Knowledge are the three vehicles for
his growth. People of India have started feeling an inner strength and hope to make this
dream a reality by year 2020”

I hereby declare that the information given herein after , statements and related papers
enclosed along with this report , are to the best of my knowledge and belief, true and correct
in all respects.

With immense pleasure , I would like to present this project report for GUJARAT
experience for me to undergo my summer training at AMUL which would not have been
possible without the goodwill and support of the people around. As a student of Master of
Business Administration ,Devi Ahilya vishwa vidyalaya ,Indore I would like to express my
sincere thanks to all those who helped me during my practical training programme.

Words are insufficent to express my gratitude to my company guide Mr.Dinesh Mehrotra(Milk

Marketing Manager, AMUL) who inspite of his busy schedule has co-operated with me
continuously and indeed his valuable contribution and guidance have been certainly
indispensible for my project work. I would like to give my heartiest thanks for his invaluable
support and guidance which helped me to do the project

I am also grateful to my parents and friends for giving me moral support and constant
encouragement. However. I accept the sole responsibility for possible error of omission and
would be extremely grateful of this project report if they bring such mistakes to my notice.


• GCMMF: An Overview
















The M.B.A programme is well structured and integrated course of business studies. The main objective of practical
training at M.B.A level is to develop skill in student by supplement to the theoretical study of business management
in general. Industrial training helps to gain real life knowledge about the industrial environment and business
practices. The M..B.A programme provides student with a fundamental knowledge of business and organizational
functions and activities, as well as an exposure to strategic thinking of management.

In every professional course, training is an important factor. Professors give us theoretical knowledge of various
subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It
is only the training through which I come to know that what an industry is and how it works. I can learn about
various departmental operations being performed in the industry, which would, in return, help me in the future when
I will enter the practical field.

Training is an integral part of M.B.A and each and every student has to undergo the training for in a company and
then prepare a project report on the same after the completion of training. During this whole training I got a lot of
experience and came to know about the management practices in real that how it differs from those of theoretical
knowledge and the practically in the real life. In todays globalize world, where cut throat competition is prevailing in
the market, theoretical knowledge is not sufficient.

The Kaira District Cooperative Milk Producers’ Union Limited was established on
December 14, 1946 as a response to exploitation of marginal milk producers in
the city of Anand (in Kaira district of the western state of Gujarat in India) by
traders or agents of existing dairies.

Producers had to travel long distances to deliver milk to the only dairy, the
Polson Dairy in Anand – often milk went sour, especially in the summer season, as
producers had to physically carry in individual containers. These agents decided
the prices and the off-take from the farmers by the season.

Milk is a commodity that has to be collected twice a day from each cow/buffalo.
In winter, the producer was either left with surplus unsold milk or had to sell it at
very low prices. Moreover, the government at that time had given monopoly
rights to Polson Dairy (around that time Polson was the most well known butter
brand in the country) to collect milk from Anand and supply to Bombay city in
turn(about 400 kilometers away).

India ranked nowhere amongst milk producing countries in the world in 1946.
The producers of Kaira district took advice of the nationalist leaders, Sardar
Vallabhbhai Patel (who later became the first Home Minister of free India) and
Morarji Desai (who later become the Prime Minister of India). They advised the
farmers to form a Cooperative and supply directly to the Bombay Milk Scheme
instead of selling it to Polson (who did the same but gave low prices to the
producers). Thus the Kaira District Cooperative was established to collect and
process milk in the district of Kaira.

At the initial stage only 250 litres of milk was collected every day . But with the
growing awareness of the benefits of the cooperatives, the collection of milk
increased. Today AMUL Collects 8.4 millon litres per day.
Since milk was a perishable commodity it becomes difficult to preserve milk flora
for a longer period. Besides when the milk was to be collected from the far
places,there was a fear of spoiling the milk. To overcome this problem the union
thought to develop the chilling units at various junctions, which would collect the
milk and cool chill it , so as to preserve it for a longer period.

Village level cooperatives were established to organize the marginal milk

producers in each of these villages. The first modern dairy of the Kaira Union was
established at Anand (which popularly came to be known as AMUL dairy after its
brand name). Indigenous R&D and technology development at the Cooperative
had led to the successful production of skimmed milk powder from buffalo milk–
the first time on a commercial scale anywhere in the world. The foundations of a
modern dairy industry in India had just been laid as India had one of the largest
buffalo populations in the world. We move to year 2000.

The dairy industry in India and particularly in the State of Gujarat looks very
different. India for one has emerged as the largest milk producing country in the
world .Gujarat emerges as the most successful State in terms of milk and milk
product production through its cooperative dairy movement.
The Kaira District Cooperative Milk Producers’ Union Limited, Anand becomes the
focal point of dairy development in the entire region and AMUL emerges as one of
the most recognized brands in India, ahead of many international brands.
Looking back on the path traversed by Amul, the following features make it a pattern and model for
emulation elsewhere.

AMUL has been able to:

1. Produce an appropriate blend of the policy makers farmers board of management and the professionals

2. Bring at the command of the rural milk producers the best of the technology and harness its fruit for
3. Provide a support system to the milk producers without disturbing their agro- economic systems,
4. Plough back the profits, by prudent use of men, material and machines, in the rural sector for the
common good and betterment of the member producers

5. Even though, growing with time and on scale, it has remained with the smallest producer members. In
that sense. Amul is an example par excellence, of an intervention for rural change.

The Union looks after policy formulation, processing and marketing of milk,
provision of technical inputs to enhance milk yield of animals, the artificial insemination
service, veterinary care, better feeds and the like – all through the village societies.
Basically the union and cooperation of people brought Amul into fame i.e.AM UL a name
which suggests THE TASTE OF INDIA.

Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year.
Examples of FMCG generally include a wide range of frequently purchased consumer
products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and
detergents, as well as other non-durables such as glassware, bulbs, batteries, paper
products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics,
packaged food products, soft drinks, tissue paper, and chocolate bar


The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion.
Well-established distribution networks, as well as intense competition between the organised and
unorganised segments are the characteristics of this sector. FMCG in India has a strong and competitive
MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$
33.4 billion in 2015 from US $ billion 11.6 in 2003.

The middle class and the rural segments of the Indian population are the most promising market for
FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product
categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as
well as low penetration level, but the potential for growth is huge.

The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization,
increased literacy levels, and rising per capita income.

S. NO. Companies
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestlé India
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and
Health Care
10. Marico Industries

It is interesting to note that AMUL has adopted the network model in early 1950s in a
broader context and more complex environment, well before the approach was recognized in
Western Europe and North America. In the following sections we describe the AMUL story
and elaborate on its practices.

Every day Amul collects 8.4 millon litres of milk from 2.6 million farmers (many
illiterate), converts the milk into branded, packaged products, and delivers goods worth Rs
8crore (Rs 80 million) to over 12 millon retail outlets across India .Its supply chain is
easily one of the most complicated in the world.
Its motto is never forget your customer.
If you don't, success is certain. The proof? A unique, Rs 8,000crore (Rs 80 billion)

Organisation structure

It all started in December 1946 with a group of farmers keen to free themselves from
intermediaries, gain access to markets and thereby ensure maximum returns for their
efforts.Based in the village of Anand, the Kaira District Milk Cooperative Union (better known
as Amul) expanded exponentially. It joined hands with other milk cooperatives, and the
Gujarat network now covers 2.12 million farmers, 10,411 village level milk collection centers
and fourteen district level plants (unions) under the overall supervision of GCMMF.

Markets are primitive and poor in infrastructure. Amul and GCMMF acknowledged that
development and growth could not be left to market forces and that proactive intervention
was required.

Two key requirements were identified.

1. The first, that sustained growth for the long term would depend on matching supply
and demand. It would need heavy investment in the simultaneous development of
suppliers and consumers.
2. Second, that effective management of the network and commercial viability would
require professional managers and technocrats.

To implement their vision while retaining their focus on farmers, a hierarchical network
of cooperatives was developed, which today forms the robust supply chain behind
GCMMF's endeavors. The vast and complex supply chain stretches from small suppliers
to large fragmented markets. Management of this network is made more complex by the
fact that GCMMF is directly responsible only for a small part of the chain, with a number
of third party players (distributors, retailers and logistics support providers) playing large
roles. Managing this supply chain efficiently is critical as GCMMF's competitive position is
driven by low consumer prices supported by a low cost system.

Introducing higher value products

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

Managing the supply chain

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

A key source of competitive advantage has been the enterprise's ability to continuously
implement best practices across all elements of the network: the federation, the unions,
the village societies and the distribution channel. In developing these practices, the
federation and the unions have adapted successful models from around the world. It
could be the implementation of small group activities or quality circles at the federation.

Technology and e-initiatives

GCMMF's technology strategy is characterized by four distinct components: new

products, process technology, and complementary assets to enhance milk production
and e-commerce. Few dairies of the world have the wide variety of products produced by
the GCMMF network. Village societies are encouraged through subsidies to install chilling
units. Automation in processing and packaging areas is common, as is HACCP
certification. Amul actively pursues developments in embryo transfer and cattle breeding
in order to improve cattle quality and increases in milk yields.

GCMMF was one of the first FMCG (fast-moving consumer goods) firms in India
to employ Internet technologies

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

GCMMF: An Overview

. Distribution Network of GCMMF:

Most producers work with marketing intermediaries to bring their products to market. The
marketing intermediaries make up a marketing channel also called distribution cannel.
Distribution channels are sets of interdependent organizations involved in the process of
making a product or service available for use or consumption.
The Head Office of GCMMF is located at Anand. The entire market is divided in 5 zones. The
zonal offices are located at Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai. Moreover
there are 49 Depots located across the country and GCMMF caters to 13 Export markets.

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which
aims to provide remunerative returns to the farmers and also serve the interest of
consumers by providing quality products which are good value for money.

CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned its
highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.

Members: 13 district cooperative milk producers'


No. of Producer Members: 2.79 million

No. of Village Societies: 13,328

Total Milk handling capacity: 11.22 million litres per day

Milk collection (Total - 2008-09): 3.05 billion litres

Milk collection (Daily Average 8.4 million litres


Milk Drying Capacity: 626 Mts. per day

Cattlefeed manufacturing 3500 Mts per day


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

2007-08 52554 1325

2008-09 67113 1504



• Amul Butter
• Amul Lite Low Fat Breadspread
• Amul Cooking Butter

Cheese Range:

• Amul Pasteurized Processed Cheddar Cheese

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

Mithaee Range (Ethnic sweets):

• Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

• Amul Amrakhand
• Amul Mithaee Gulabjamuns
• Amul Mithaee Gulabjamun Mix
• Amul Mithaee Kulfi Mix
• Avsar Ladoos

UHT Milk Range:

• Amul Shakti 3% fat Milk

• Amul Taaza 1.5% fat Milk
• Amul Gold 4.5% fat Milk
• Amul Lite Slim-n-Trim Milk 0% fat milk
• Amul Shakti Toned Milk
• Amul Fresh Cream
• Amul Snowcap Softy Mix

Pure Ghee:

• Amul Pure Ghee

• Sagar Pure Ghee
• Amul Cow Ghee

Infant Milk Range:

• Amul Infant Milk Formula 1 (0-6 months)

• Amul Infant Milk Formula 2 ( 6 months above)
• Amulspray Infant Milk Food
Milk Powders:

• Amul Full Cream Milk Powder

• Amulya Dairy Whitener
• Sagar Skimmed Milk Powder
• Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

• Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

• Amul Taaza Toned Milk 3% fat

• Amul Gold Full Cream Milk 6% fat
• Amul Shakti Standardised Milk 4.5% fat
• Amul Slim & Trim Double Toned Milk 1.5% fat
• Amul Saathi Skimmed Milk 0% fat
• Amul Cow Milk

Curd Products:

• Yogi Sweetened Flavoured Dahi (Dessert)

• Amul Masti Dahi (fresh curd)
• Amul Masti Spiced Butter Milk
• Amul Lassee

Amul Icecreams:

• Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

• Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted
• Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black
Currant, Santra Mantra, Fresh Pineapple)
• Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
• Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch,
Megabite, Cassatta)
• Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)

Chocolate & Confectionery:

• Amul Milk Chocolate

• Amul Fruit & Nut Chocolate

Brown Beverage:

• Nutramul Malted Milk Food

Milk Drink:

• Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate)
• Amul Kool Cafe
• Amul Kool Koko
• Amul Kool Millk Shaake (Mango, Strawberry, Badam, Banana)

Health Beverage:

• Amul Shakti White Milk Food

Achievements of GCMMF

• 2.8 million milk producer member families

• 13,759 village societies
• 13 District Unions
• 8.5 million liters of milk procured per day
• Rs. 150 million disbursed in cash daily
• GCMMF is the largest cooperative business of small producers with an annual turnover of Rs. 53 billion
• The Govt. of India has honoured Amul with the “Best of all categories Rajiv Gandhi National Quality
• Largest milk handling capacity in Asia
• Largest Cold Chain Network
• 48 Sales offices, 3000 Wholesale Distributors, 5 lakh retail outlets
• Export to 37 countries worth Rs. 150 crores
• Winner of APEDA award for nine consecutive years

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50 sales offices spread
all over the country, more than 3,000 wholesale dealers and more than 5,00,000 retailers.

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status.
GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product
Exports for the last 11 years.

The major export products are:

Consumer Packs

• Amul Pure Ghee

• Amul Butter
• Amul Shrikhand
• Amul Mithaee Gulabjamun
• Nutramul Brown Beverage
• Amul Cheese
• Amul Malai Paneer
• Amul UHT Milk (Long Life)
• Amul Gold Milk
• Amul Taaza Double Toned Milk
• Amul Lite Slim and Trim Milk
• Amul Fresh Cream

Bulk Packs

• Amul Skimmed Milk Powder

• Amul Full Cream Milk Powder

Many of our products are now available in the USA, Gulf Countries and Singapore
Amulya have made Amul a leading food brand in India. (Turnover: Rs. 80 billion in 2009-10).
Today Amul is a symbol of many things.

Of high-quality products sold at reasonable prices.

Of the genesis of a vast co-operative network.

Of the triumph of indigenous technology.

Of the marketing savvy of a farmers' organisation.

And of a proven model for dairy development.


2.79 millon milking farmers

13000 village co-operaive societies

13 District Co-operative Milk producers Union+1 Mother dairy

 Amul Dairy ,Anand

 Dudhsagar Dairy,Mehsana

 Sabar Dairy,Himmatnagar

 Banas Dairy,Palanpur

 Baroda Dairy,Baroda

 Sumul Dairy,Surat

 Panchamrut dairy,Godhra

 Uttam Dairy, Ahmedabad

 Rajkot Dairy, Rajkot

 Vasudhara Dairy, Valsad

 Dudhdhara Dairy, Bharuch

 Gandhinagar Dairy, Gandinagar

 Cheese Plant, Khatraj

 Vidya Dairy, Anand

 Poly film plant, Gandhinagar

 Mother Dairy , Gandhinagar

GCMMF LTD.(State level apex body - Gujrat Co-operative milk marketing Federation)

Plants of Amul in Delhi/NCR region

1.Manesar plant(Gurgaon)- 10 lakh litres per day

2.Goga plant(Baghpath, U.P)-3 lakh litres per day

3.Kwality plant(Palwal)- 3 lakh litres per day

4.Nagar dairy(Hapur)-3.75 lakh litres per day

Nagar dairy has 150 distributers in NCR region and 60 distributers in Noida and Ghaziabad


1. Production of milk 2. Milk collection 3. Milk processing


5.Distribution 6.Retailing 7.customers

The above figure describes the hierarchical nature of the cooperative structure. It presents
the Supply chain linking farmer-suppliers of milk with the millions of consumers. Gujarat
Cooperative Milk Marketing Federation or GCMMF is the marketing entity for the State of


3 tier structure of Amul

1.Village Dairy Cooperative Society (VDCS)

The milk producers of a village, having surplus milk after own consumption, come together and form a Village Dairy
Cooperative Society (VDCS). The main functions of the VDCS are as follows:

• Collection of surplus milk from the milk producers of the village & payment based on quality &
• Providing support services to the members like Veterinary First Aid, Artificial Insemination
services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, conducting training on
Animal Husbandry & Dairying, etc.
• Selling liquid milk for local consumers of the village
• Supplying milk to the District Milk Union

Thus, the VDCS in an independent entity managed locally by the milk producers and assisted by the District Milk

2.District Cooperative Milk Producers’ Union (Milk Union)

The Village Societies of a District having surplus milk after local sales come together and form a District Milk
Union. The main functions of the Milk Union are as follows:

• Procurement of milk from the Village Dairy Societies of the District

• Arranging transportation of raw milk from the VDCS to the Milk Union.
• Establish Chilling Centres & Dairy Plants for processing the milk received from the villages.
• Selling liquid milk & milk products within the District
• Process milk into various milk & milk products as per the requirement of State Marketing Federation.
• Decide on the prices of milk to be paid to milk producers as well on the prices of support services provided
to members.

3. State Cooperative Milk Federation (Federation)

The Milk Unions of a State are federated into a State Cooperative Milk Federation. The Federation is the
apex tier under the three-tier structure. The main functions of the Federation are as follows:

• Marketing of milk & milk products processed / manufactured by Milk Unions.

• Arranging transportation of milk & milk products from the Milk Unions to the market.
• Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.
• Arranging for common purchase of raw materials used in manufacture / packaging of milk
• Decide on the prices of milk & milk products to be paid to Milk Unions.


A)Logistics in collection:

a)8.4 million liters of milk collected daily.

Procurement Channel

• Milking is done every morning and evening. On an average around 2.79 million milking
farmers come to sell milk at their local-co-operative milk collection centers.

• Each farmer has been given a plastic card for identification.

• In this whole process the time consumed is about 3-4 hrs.

b) 13,000 village co-operative societies.

• Collection of surplus milk from the milk producers of the village and paying
them on the basis of quality & quantity.
• The Village Societies ( Milk Union in Gujarat) having surplus milk after local
sales come together and gives the surplus milk to District Milk Union.

• At the milk collection counter , the farmer drops the card into the box and the
identification number is transmitted to a personal computer attached to the

• The milk is then weighed and the fat content of the milk is measured by an
electronic fat testing machine.

Cow milk fat-3-4%

Buffalo milk fat -6-8%

Fat rate- Rs.350 per Kg

If the milk contains 6% then( for 1Kg 350* 0.06 =Rs.21)

Lesser the fat in the milk , lesser will be the price paid to them.

• All the details are recorded in the computer. The computer then calculates the
amount due to the farmers on the basis of the fat content given above.

• The value of the milk is then printed out on a slip and handed over to the

• The time consumed in this whole process is 5-6 hrs

B) Logistics in co-ordination of-

a) Storing the milk in chillers

 The milk is stored in large chilling centres of the village co-operative societies. Around 43 chilling
centres.are present.

 Then the milk is supplied to the 13 District Cooperative Milk Producers’ Union
(Milk Union) through tanks having capacity of about 20,000L .After the whole
demand of 13 unions are fulfilled the surplus milk is supplied to the Mother Dairy ,

 The district Union supplying milk in the Ghazianad and Noida region is Sabarkantha
Dairy, Himmatnagar.

b) Processing of the milk at the milk Union(Sabarkantha Dairy)

• Milk Processing Chart:

• Collection of Raw-Milk
• Electronic Milk Test
• Methyline Blue Reduction Test
• Purchasing And Standardizing Process
• Separation Process
• Quality Check
• Packaging Process
• Cold Storage

• Tankers are received at the reception Dock

• Tankers are checked whether they are sealed properly or not and a small
amount of sample is taken for Quality check

• If there is any quality deviation like acidity is above 0.135 and milk is
adulterated with urea, glucose, starch, vegetable oil then the whole tank is
rejected .
1) After this further lab testing is done with the help of these two types of tests:

i)Electronic milk test

ii) Methyline blue reduction test

Electronic Milk Test : Before pasteurizing the milk the samples are
taken to the laboratory. In the laboratory with the help of machine called
electronic milk tester, the proportion of SNF & FAT is checked with
phosphate solution. When the colour of the milk becomes yellow, it is sent
for pasteurisation.

Methyline blue reduction test: Another test, which is taken in the

laboratory, is called methyline blue reduction test.This test is conducted
for checking for how long the milk will remain fresh. To check this, 10 ml
of milk is taken and 1 ml of methyline blue solution is added to it. It is
then kept under water at 57-degree C. After one hour, if the solution
losses its colour than it is called raw milk. If the solution remains the same
even after 5 hours than it is considered as fresh milk, which remains
constant for a long period of time. The dairy fixes the proportion of FAT &

• M • F • S
• Buffalo • 6% • 9%
• Cow • 4.5% • 4.5

• After laboratory gives green signal and confirming the raw milk at the
reception dock Gross weight of the tankers are taken and then the tankers are
unloaded and their tare weight (empty weight) is taken.

Net weight of the milk received = Gross weight - Tare weight

• Then the milk is brought in to the house connected with the pump is sent to the
milk processing plant for filtration.
• This is than chilled below 4 degree C in chillers and then stored in milk silos.
• After that milk is processed which has two steps i.e. pasteurizing and
2. Pasteurizing & standardizing: After collecting and checking and conducting
laboratory tests, the pasteurizing process is conducted. To pasteurized the milk means
to kill all the germs in the milk by a particular method which was invented by a
scientist called James Pasteur and so the name pasteurization.
In pasteurizing, the milk is first heated at 80C to 82 C for 30 seconds and then it is
immediately cooled below 4 C. By this method they destroy the pathogenic bacteria
present in the raw milk. But if the right degree of temperature is not provided there
are chances that the milk might still contain germs.
After pasteurization the milk is again send to the chilling units (temp below 3
degrees) and then to the pasteurized Milk tank.
After this process some milk goes to separator machine and remaining is
proportionately sent for standardization.

Diagrammatic representation of Pasteurizer milk process

• Standardization process is known such as it bifurcates the milk in 3 categories

varying according to that FAT & SNF contents. The equipment named OSTA.
Autostandardization adjusts the fat directly. The computer is just ordered
whether gold or ,Taaza milk is to be rationed and the same will be received with
appropriate contents.
Ready Milk = Pasteurised + Standardized.

3. Separation process:
Separator machine separates two kinds of products, skimmed milk & cream,
channels. There are 100 disks fixed in separator machines, which revolve at
5000 rpm
(revolution per minute). It is taken to the tanks, which has the capacity of
20000 litres.
Whenever the milk is needed from the tank, it is tested in the laboratory and
the deficit
proportion fat is added by mixing cream. This process continues for 24 hours.

4. Quality Check
Pasteurized milk is sent for a quality check in the Quality Assurance
laboratory of the
dairy plant. Within 14 seconds FAT and SNF proportion is received

5. Packing Process
After this the milk is sent for packing to the milk packing station in the dairy
At the milk packing station(Nagar dairy) this whole process of
processing of milk is again repeated .
In the milk packaging station there are huge pipelines and behind each of them
there is polyfill machine from which the material to pack milk comes out.
The pouches are kept in the crates and stored in the cold room stores.

6. Storage
Then the milk is sent to the cold storage of the dairy where the milk is stored
until it is
Here the milk is stored at temperature ranging from 5 C to 10 C, it is
maintained with the help of exhaust fans having silicon chips.
The damaged pouches are kept a side and the milk is once again put to the
• In the cold room the crates are stacked on the lorry and brought to the dispatch
dock . From the dock they are loaded in the milk vans and finally dispatched to
the distributers who supply it to the retailers and then the milk finally reaches the

7 .Distributing and marketing of milk BY GCMMF.

The marketing and distribution of milk processed and manufactured by milk unions
is done by GCMMF.

• Distributers supply it to the retailers and then the milk finally reaches the
• Arranges transportation of milk & milk products from the Milk Unions to the market.
• GCMMF takes the daily demand from the distributers and accordingly inform it to the packing plant(Nagar

A zero level of channel also called A direct marketing channel consists of a

selling directly to the final customers.
A one level channel; contains one selling intermediary such as retailer to the final
A two level channel two intermediaries are typically wholesaler and retailer.
A three level channel are typically wholesaler, retailer and jobber in between.

GCMMF has an excellent distribution. It is its distribution channel, which has made it so
popular. GCMMF’s products like milk and milk products are perishable. It becomes that
much important for them to have a good distribution.
Distribution Chart of GCMMF:
• Milk
• Wholesaler
• Retailer
• Customers

We can see from above figure that GCMMF distribution channel is simple and
clear. The products change

hands for three times before it reaches to the final consumer. First of all the
products are stored at the Agents

end who are mere facilitators in the network. Then the products are sold to
wholesale dealers who then sell

to retailers and then the product finally reaches the consumers.


Amul has come out with a unique concept of Amul Parlors. They have classified them
under four types namely:
· Center for excellence
· On the Move
· Amul Parlours
· Amul Preferred Outlets

1.Center for Excellence: These Amul Parlours are specifically at a place, which has a
class of excellence of its own. We can find such parlors at the Infosys, IIMA, NID
Ahmedabad etc.

2.On the Move: These parlors are at the railway stations and at different state bus
across different cities.

3.Amul Parlours: These parlors can be seen at different gardens across different cities.
These are fully owned by Amul.
Amul Preferred Outlets: These are the private shops that keep the entire of product
range of Amul. They also agree not to keep any competitor brands in the outlets. They
can keep other brands that are in the non-competitor category.



This study attempts to find out the distributers supply chain of AMUL fresh milk to the
retailers based on various key factors. The study was conducted as follows :
Sampling technique: Non- probability sampling

Sample Unit: Distributers who are selling fresh milk

Sample size: 20 respondents

Method: Direct interview and questionnaire

Data analysis method: Graphical method

Area of survey: Noida and Ghaziabad

Q1. Mode of transport from the plant.:


TATA 209 260
TATA 407 360
TATA 709 664
TATA 1109 900


Q2. Temperature of the milk at the time of delivery to the distributers:

INFERENCE: Average Temperature of the milk at the time of delivery to maximum no. of
distributers is 7-9 degrees . This temperature is very close to the cold room storage
temperature(6 degrees).

Q3. Time of delivery:

To the ADA:
To the retailers:


Among the 20 distributers surveyed it was found that the 12 distributers (ADA) receive the
milk from the Plant in the morning between 1:00am-3:00am and 8 0f them receive the milk
at around 3:00pm-5:00pm in the evening.

The morning supply reach the retailers between 3:00am-5:00am and evening supply reaches
between 4:00pm-6:00pm.

This study attempts to find out the retailers supply chain of AMUL fresh milk to the
customers based on various key factors. The study was conducted as follows :

Sampling technique: Non- probability sampling

Sample Unit: Retailers/Wholesalers who are selling fresh milk

Sample size: 30 respondents

Method: Direct interview and questionnaire

Data analysis method: Graphical method

Area of survey: Noida and Ghaziabad

Q1. Milk storage capacity


Among 30 retailers surveyed it was found that around 14 of them had the mik storage
capacity of 720L(60 crates), 12 of them had around 480L(40 crates ) and 4 of them had
240L(20 crates) storage capacity
Q2. Time of delivery:


The Retailers receive the milk from the ADA in the morning at at 5:30am and at around
4:00pm-6:00pm in the evening.Most of them were unsatisfied with the evening supply of

Q3. Temperature of milk at the time of delivery to the retailers:


Average Temperature of the milk at the time of delivery to maximum no. of retailers is 9-
10 degrees . The quality of the milk does not get detoriated if milk is retained at this
temperature even for two days.

Q4. Mode of delivery to the customers


The survey conducted shows that every retailer delivers the milk packets at the door steps
of the customers i.e the home delivery system through prepaid coupons or post paid
coupons and approx 67% of their expected sales is through home delivery system and only
33% is by counter sales.

Q6 .Are you satisfied with the existing supply chain?


Most of the dealers (approx 90%) felt that AMUL’s existing supply chain is working very
efficiently as they get timely supply of milk in the morning except in very rare cases.
Approximately 80% were unsatisfied with the timings of the evening supply of milk.


This study attempts to find out that consumers perception and how they scale AMUL on
various factors key factors.The study was conducted as follows:

Sampling technique: Non- probability sampling

Sample Unit: Customers who consume milk

Sample size: 40 respondents

Method: Direct interview and questionnaire

Data analysis method: Graphical method

Area of survey: Noida and Ghaziabad

Q1. No. of family members


The survey results shows that no. of family members in the area surveyed are mostly 4
including the working couples and their children or in rare cases grandparents were also

Q2 Mode of delivery


Among the customers surveyed most of the families had working parents of the age around
25-50 and so they preferred purchasing the milk through home delivery system i.e through
prepaid coupons 23 and 12 through post paid coupons sand rest 5 of them brought through
counter sales.

Q3. Time of purchase:


Most of the customers (60%) preferred buying i.e through counter sales or getting the
home delivery of milk in the morning between 6:00am -9:00am and in the evening (40%)
between 6:00 pm -9:00 pm.

Q4. Temperature of the milk at the time of delivery to the customers.


Average Temperature of the milk at the time of delivery to most of the customers is 10-14
degrees . The quality of the milk does not get detoriated if milk is retained at this
temperature even for two days.
Q5.Quantity consumed daily


The survey results shows that in majority of households about 2litres of milk is consumed
daily. Milk is a commodity which is required on daily basis and so company must take more
steps to enhance the sale of milk.

Q6.Type of milk you consume daily


Out of the survey conducted it was found that around 12 customers prefer consuming
toned milk,3 preferred double toned,25 preferred full cream and demand for standard milk
is nil. The customers are mostly demand for full cream milk type.



• Raw milk is received by the Nagar dairy from Himmatnagar-based Sabarkantha

District Co-operative Milk Producers’ Union Ltd

• Turnover of the NAGAR plant 183 crores.

• Total milk handling capacity -3.9 lakh litres

• Distance of member union from Plant-1100km

• Type of vehicle used for carrying milk- TATA 407,709,1109

• Storage Temp of milk during transit-2.5 degrees

• Average time of transit(union to plant) -30 hrs

• Cold room capacity & storage temperature- 5lakh litres , 5-6 degrees

• No. of vehicles being loaded at plant-

• Average time of loading per vehicle-1-2 hrs.

• Details of vehicle being loaded from the plant:


TATA 209 260
TATA 407 360
... TATA 709 664
TATA 1109 900
TATA 25-15 1500


a) Auxiliary equipments: -,
i) Milk tanks –
20-22 milk tanks come daily from Sabar Dairy
Milk handling capacity of each tank- 20,000L
ii) Feed milk pumps – for filtering milk

b) Equipment for processing:

i) Plate heat exchangers for milk,
ii) HTST pasteurizers for milk,
Pasteurization time 30seconds
Pasteurization temperature 80-82 degrees

c) Instant Milk Chilling Unit,

2 chillers
Chilling capacity of 1st chiller- 10,000L/Hr
Chilling capacity of 2nd chiller-20,000L/Hr
Temperature of the chiller 3 degrees

d) Milk silo – for storage

Milk handling capacity of each silo- 50,000L
Temprature of the Silo- 3 degrees
e) Milk packing machine
12 machines
Each machine has 2 heads
From 1 head comes out -45 pouches/min
Total no. of pouches produced daily- 70,000

Daily dispatch of various types of milk from the plant.

Type of milk Volume in litres
Amul Gold(full cream) 2,30,000
Amul Taaza(toned milk) 1,90,000
Amul slim $ trim(double toned 18,000

ADA (Area delivery agent )Survey:

A Survey was conducted on the supply chain of AMUL pouch milk in certain sectors of


• Milk in this area is comes to the distributers from the Nagar Dairy,Hapur

• Temperature of the milk at the time of delivery to maximum no. of

wholesalers is 7-9 degrees

• It was found that the 60% of the distributers (ADA) receive the milk from the
Plant in the morning between 1:00am-3:00am and 40% of them receive the
milk at around 3:00pm-5:00pm in the evening.

• The morning supply reach the retailers between 3:00am-5:00am and evening
supply reaches between 4:00pm-6:00pm.

• Expected sales of the ADA is ranging between 400crates-1400 crates.

Retailers Survey:

A Survey was conducted on the supply chain of AMUL pouch milk in certain sectors of NOIDA

• Retailers store the milk crates outside their shops or the APO .It was found that
around 47% of the retailers had the milk storage capacity of 720L(60 crates)

• Expected sales of the retailers was around 30-40 crates.

• The Retailers receive the milk from the ADA in the morning at at 5:30am and at
around 4:00pm-6:00pm in the evening .Most of them were unsatisfied with the
evening supply of milk. Most of them were of the opinion that timely supply and
distribution channel are the two main things which affect the sales of milk
.Distribution channel efficiency plays an important role in maintaining the stocks and
delivering it to the customers.

• Average Temperature of the milk at the time of delivery to maximum no. of retailers
is 9-10 degrees.

• Approx 67% of their expected sales of the retailers is through home delivery system
and only 33% is by counter sales.

Customers Survey:

A Survey was conducted on the supply chain of AMUL pouch milk in certain sectors of NOIDA


• Respondents surveyed were in between the age of 20-50 years and had mostly
4 family members including the working couples and their children or in rare
cases grandparents were also present.

• In the survey majority of the contribution was made by the housewives and

• Approximately 87.5% of customers surveyed preferred purchasing the milk

(which is a daily necessity in every household) through home delivery system
i.e the prepaid coupons and post paid coupons rather than purchasing the
milk on the counter(only 23.5% of the customers)
• Most of the customers (60%) preferred buying or getting the home delivery of
milk in the morning between 6:00am -9:00am and in the evening (40%)
between 6:00 pm -9:00 pm.

• Average Temperature of the milk at the time of delivery to 47.5% of the

customers is 10-14 degrees . During summers Approx. 15% of the customers
are receiving the milk above 16 degrees and have complain regarding the
curdling of milk.

• In Majority of households about 2litres of milk is consumed daily

• It was found that around 30% of the customers prefer consuming toned milk,
only 7.5% preferred double toned, 62.5% preferred full cream and demand for
standard milk is nil. Consumers prefer buying toned milk for their own
consumption and for their children, and for making ghee and curd they mostly
prefer full cream.

• Curd available is a bit loose when made by the toned and double toned milk.
Temprature loss Temprature gain

During the supply 27 degrees

between farmers and
village co-operative

During the supply 7 degrees

between village co-
operative society and

During the supply 3 degrees

between union and

During the supply 3 degrees

between distributers

During the supply 1 degrees

between dustributers
and retailers

During the supply Approx. 2

between retailers and degrees

During this whole channel the temprature maintainance is the most important
factor to maintain the quality of milk and prevent bacterial growth (higher the
temprature more the bacterial growth.) Proper care should be taken, specially
regarding the temprature gain between the retailers and the customers .
Time in hours

Time taken by farmers for 4hrs


Kept in chilling centres at 6 hrs


Milk Processing at the 18-20 hrs


Time taken to reach the 30 hrs


Milk Processing at the plant 12 hrs

Time taken to reach the 2hrs


Time taken to reach the 2 hrs

Total time taken in the milk procurement channel in the NOIDA AND GHAZIABAD region is
around 72-76hrs or around 3days.


• Temperature maintenance at all levels of supply chain is a must ,in order to maintain
the quality of milk , specially between retailers and customers ,where there is
maximum temperature loss

• Measures must be taken to minimize the temperature loss between ,the distributers
and the plant and for this purpose the insulation of TATA ACE must take care of, and
the retailers should have proper refrigeration facilities.

• There must be greater retailers and distributers co-ordination and integration ,as
some of the retailers were of the opinion that the behavior of distributers towards
them were not up to the mark.

• Retailers must get better understanding of customers needs and demands. Along with
the milk ,GCMMF must also pay heed to availability of other products of Amul at the
Amul parlors.

• In order to increase the sale of milk in NCR region, the supply of milk to the
distributers must be increased, as the retailers were having the storage capacity much
more than their expected sales.

• The plant ser milk timely in the evening.

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