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A PROJECT REPORT ON
ENTITLED AS
PREFACE
Training is an integral part of PGDM and each and every student has to
undergo the training for 2 months 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.
ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for Kaira
District Co-operative Milk Producers’ Union Ltd., Anand. It has been an
enriching experience for me to undergo my summer training at AMUL, which
would not have possible without the goodwill and support of the people
around. As a student of CHAMELI DEVI INSTITUTE OF MANAGEMENT &
RESEARCH, INDORE I would like to express my sincere thanks too all those
who helped me during my practical training programme.
Words are insufficient to express my gratitude toward Mr. T.K ROY, the
depot Head of AMUL (Indore). I am very thankful to M r. Radheshyam, who
helped me at every step whenever needed.
At last but not least my grateful thanks are also extended to M r. Naresh
singh (Director’ CIMR INDORE) and my thanks to all my faculty members for
the proper guidance and assistance Extended by them.
However, I accept the sole responsibility for any possible error of omission
and would be extremely grateful to the readers of this project report if they
bring such mistakes to my notice.
DECLARATION
To the best of my work knowledge and belief the thesis embodies the
work of the candidate himself and has been duly completed. Simultaneously,
the thesis fulfills the requirement of the rules and regulation related to the
summer internship of the institute and I am assured that the project is up-to
the standard both in respect to the contents and language for being referred
to the examiner.
Signature of the Faculty Guide:
The dairy sector in the India has shown remarkable development in the past
decade and India has now become one of the largest producers of milk and
value-added milk products in the world.
The dairy sector has developed through co-operatives in many parts of the
State. During 1997-98, the State had 60 milk processing plants with an
aggregate processing capacity of 5.8 million liters per day. In addition to
these processing plants, 123 Government and 33 co-operatives milk chilling
centers operate in the State.
Also India today is the lowest cost producer of per liter of milk in the world,
at 27 cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also
to take advantage of this lowest cost of milk production and increasing
production in the country multinational companies are planning to expand
their activities here. Some of these milk producers have already obtained
quality standard certificates from the authorities. This will help them in
marketing their products in foreign countries in processed form.
India 81 84.5
Brazil 75 77
Russia 34 33
Germany 27 27
France 24 24
Pakistan 21 22
USA 71 71
UK 14 14
Ukraine 15 14
Poland 12 12
New Zealand 11 12
Netherlands 11 11
Italy 10 10
Australia 9 10
Research and Development in Dairy Industry:
The research and development need to the dairy industry to develop and
survives for long time with better status. The various institute and milk dairy
companies R&D results provide base for today’s industry growth and
development. The research and development of products of dairy, like yogurt
and cheese market research and company reports provides insights into
product and market trends, analysis opportunities, sales and marketing
strategies will help local milk
Unions to develop and spread world wide through obtaining this knowledge.
Specific on market share, segmentation, size and growth in the US and
global markets are also helps industry to expand its market worldwide even
small union also.
The food processing industry sector in India is one of the largest in terms of
production, consumption, export and growth prospects. The government of
accorded it is a high priority, with a number of fiscal relieves and incentives,
to encourage commercialization and value addition to agriculture produce,
for minimizing harvest wastage, generating employment and export growth.
Production in
Year
million MT
1993-94 61.2
1994-95 63.5
1995-96 65.0
1996-97 68.0
1997-98 71.0
1998-99 74.5
1999-00 78.0
2000-01 81.51
2001-02 85.17
2002-03 89.0
2003-04 93.0
2004-05 97.65
2005-06 102.45
2006-07 107.58
In the year1946 the first milk union was established. This union was started
with 250 liters of milk per day. In the year1955 AMUL was established. In the
year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK
PRODUCERS’ UNION. This union selected the brand name AMUL in 1955.
The brand name Amul means “AMULYA”. This word derived form the Sanskrit
word “AMULYA” which means “PRICELESS”.
A quality control expert in Anand had suggested the brand name “AMUL”.
Amul products have been in use in millions of homes since1946. Amul Butter,
Amul Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates,
Amul Shrikhand, Amul Ice cream,Nutramul, Amul Milk and Amulya have
made Amul a leading food brand in India. (The total sale is Rs. 6 billion in
2005). Today Amul is a symbol of many things like of the high-quality
products sold at reasonable prices, of the genesis of a vast co-operative
network, of the triumph of indigenous technology, of the marketing savvy of
affirmers' organization. And have a proven model for dairy development
(Generally known as “ANAND PATTERN”)
In the early 40’s, the main sources of earning for the farmers of Kaira district
were farming and selling of milk. That time there was high demand for milk
in Bombay. The main supplier of the milk was Polson dairy limited, which was
a privately owned company and held monopoly over the supply of milk at
Bombay from the Kaira district. This system leads to exploitation of poor and
illiterates farmers by the private traders. The traders used to beside the
prices of milk and the farmers were forced to accept it without uttering a
single word.
These village societies would collect the milk themselves and would decide
the prices at which they can sell the milk. The district union was also form to
collect the milk from such village co-operative societies and to sell them. It
was also resolved that the Government should be asked to buy milk from the
union.
However, the govt. did not seem to help farmers by any means. It gave the
negative response by turning down the demand for the milk. To respond to
this action of govt., the farmers of Kaira district went on a milk strike. For 15
whole days not a single drop of milk was sold to the traders. As a result the
Bombay milk scheme was severely affected. The milk commissioner of
Bombay then visited Anand to assess the situation. Having seemed the
condition, he decided to fulfill the farmers demand.
Thus their cooperative unions were forced at the village and district level to
collect and sell milk on a cooperative basis, without the intervention of
Government. Mr.Verghese Kurien showed main interest in establishing union
who was supported by Shri Tribhuvandas Patel who lead the farmers in
forming the Co- operative unions at the village level. The Kaira district milk
producers union was thus established in ANAND and was registered formally
on 14th December 1946. Since farmers sold all the milk in Anand through a
co-operative union, it was commonly resolved to sell the milk under the
brand name AMUL.
At initial stage only 250 liters of milk was collected everyday. But with the
growing awareness of the benefits of the cooperativeness, the collection of
milk increased. Today Amul collect 11 lakhs liters of milk everyday. Since
milk was a perishable commodity it becomes difficult to preserve milk flora
longer period .Besides when the milk was to be collected from the far places,
there was a fear of spoiling of milk. To overcome this problem the union
thought out to develop the chilling unit at various junctions, which would
collect the milk and could chill it, so as to preserve it for a longer period.
Thus, today Amul has more than 150 chilling centers in various villages. Milk
is collected from almost 1073 societies.
With the financial help from UNICEF, assistance from the govt. of New
Zealand under the Colombo plan, of Rs. 50 millions for factory to
manufacture milk powder and butter was planned. Dr. Rajendra Prasad, the
president of India laid the foundation on November 15, 1954. Shri Pandit
Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy
on November 20, 1955.
The system succeeded mainly because it provides an assured market at
remunerative prices for producers' milk besides acting as a channel to
market the production enhancement package. What's more, it does not
disturb the agro-system of the farmers. It also enables the consumer an
access to high quality milk and milk products. Contrary to the traditional
system, when the profit of the business was cornered by the middlemen, the
system ensured that the profit goes to the participants for their socio-
economic upliftment and common good.
Looking back on the path traversed by Amul, the following features make it a
pattern and model for emulation elsewhere.
• Bring at the command of the rural milk producers the best of the
technology and harness its fruit for betterment.
• 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.
• 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. AMUL (ANAND MILK UNION LIMITED), a name which
suggest THE TASTE OF INDIA.
GCMMF Overview:
VISION:
SALES TURNOVER:
AREAS OF OPERATIONS
Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA, Bangladesh,
Australia, China, Singapore, Hong Kong and a few South African nations. Other potential
markets being considered include Sri Lanka.
SOME FACTS:
ACHIEVEMENTS
Last year, they are divided the retail market into 14 specific segments to
achieve further distribution efficiency. This year our focus was on inducting
distributors having expertise in servicing such Specific market segments.
This initiative is yielding results by way of ensuring wider availability of our
product range.
The role of distributors in our business process has never been more diverse
or more important, as it is today. As a matter of fact, we consider our
Distributor to be the real “Marketing Manager” of our organization. To
enhance business performance of our Distributors, a workshop on Marketing
and Sales Management was designed in collaboration with a premier
business school. The objective of the entire initiative was to upgrade the
knowledge of our Distributors in terms of contemporary Business
Management Practices, so that they can perform well not only as our
business partner but also as Marketing Managers. During the year, 659
Distributors have undergone this programme in 39 locations. Cold Storage is
an extremely essential component in the Federation’s distribution process.
CHITALE DAIRY
Chitale Dairy bears the quality tag of the Chitale Group.The company
manufactures and markets highly functional products. These cutting edge
products are manufactured using state-of-the-art technology and find
applications in day-to-day transactions. Chitale dairy annual turn over of over
Rs. 500 crores.
KATRAJ DAIRY
GOKUL
The Kolhapur District Co-operative Milk producers Union Ltd., Kolhapur was
established on 16th March 1963 under the Co-operative Act. It made a
moderate beginning by collecting 700 liters of Milk per day from 22 societies.
Most success stories have a humble begining & so have been with Kolhapur
Zilla Sahakari Dudh Utpadak Sangh Ltd.
On 16th March 1963 a spark stormed a fire to help the White Revolution
revolt heavily, when on this day came into being the “Kolhapur Zilla Sahakari
Dudh Utpadak Sangh Ltd” with the introduction of its popular brand of Gokul
Milk & its wide range of Dairy products in to the market. Gokul milk has 6,
05,000 litres average sales per day.
ORGANIZATION STRUCTURE
Chairman
Managing Director
General Manager
• Amul is leaded by the director under him five branches viz. Factory,
Marketing, Accounts, Purchase, Human Resources Department.
• Factory department has a separate general manager under him there are
six braches viz. Production, Stores, Distribution, Cold Storage, Quality,
and Deep-freezing. This department takes care of the factory work.
• Marketing department has regional senior marketing manager and under
him there is a regional manager. This department takes care of the
marketing aspects of Amul.
• Accounts department takes care regarding accounts i.e. day-to-day
work. Under the accountant there is one clerk.
SECOND PLANT is at
MOGAR, which engaged
in manufacturing
chocolate, nutramul,Amul
Ganthia and Amul lite.
FOURTH PLANT is at
KHATRAJ, which engaged in
producing cheese.
MARKETING RESEARCH
Marketing research plays an important role in the process of
marketing. Starting with market component of the total marketing talks. It helps
the firm to acquire a better understanding of the consumers, the competition
and the marketing environment.
DEFINITION
– Phillip Kotler.
(a) Primary Data: - Primary datas are those which are gathered specially
for the project at hand, directly – e.g. through questionnaires & interviews.
Primary data sources include company salesman, middleman, consumers,
buyers, trade association’s executives & other businessman & even
competitors.
(b) Secondary Data: - These are generally published sources, which have
been collected originally for some other purpose. Source are internal
company records, government publication, reports & publication, reports &
journals, trade, professional and business associations publications &
reports.
A) Survey
B) Observation
C) Experimentation
a) Preparation of questionnaire
b) Presetting of questionnaire
c) Planning of the sample
(6) Tabulate, Analysis and Interpret the Data :-
The report must give/contain the following information:-
a) The title of research
(7) Follow-up the study: - The researchers, in the last stage, should
follow up this study to find if his recommendation are being implemented
and if not, why?
WHAT IS PROMOTION:-
RESEARCH DESIGN