SUMMER INTERNSHIP PROGRAM A PROJECT REPORT ON DEMAND ESTIMATION OF AMUL MILK , BUTTER, CHEESE, GHEE, CHOCOLATE, ETC IN MODINAGAR

MARKET
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (B.B.A.) SUBMITTED TO: Mr. Mohit Garg (Project Guide) SUBMITTED BY:

Garima Tyagi ROLL NO -9052576 BBA-VI SEM

INSTITUTE OF MANAGEMENT & RESEARCH GHAZIABAD

Hard Work: The power that pulls everything successfully

No task is a single mans effort. Cooperation and coordination of various people at various places go into the successful implementation. It is a great pleasure to have the opportunity to extend my heartfelt thanks to everybody who helped me through the successful completion of this project It would be prudent to commence this report with a sincere tribute to all those who played an indispensable role in the accomplishment of this work and obliged whenever and wherever their able guidance was required.

ACKNOWLEDGEMENT

I would like to express my gratitude and deep regards to my esteemed and revered company guide Mr. ANANT NAG for the help rendered by him, for providing me the right way to approach the business problem, and for constantly guiding me with his most valuable suggestions in spite of having a busy schedule. My project would not have been possible without his expert guidance. I would also like to thank, Mr. VISHAL CHOPRA and all my colleagues of. Amul India (Gujarat Co-operative Milk Marketing Federation Ltd) Who helped me during the training process and made this project a learning experience for me. My acknowledgement would be incomplete without paying my gratitude to my college mentor Mr. Rahul Gupta for providing his timely and guidance and valuable suggestions as and when required. Without his

support this project would not have been the way it has come out.

Thanking you, Regards

With Garima Tyagi BBA-VI

Sem.

PREFACE
Summer Training is a necessary part for fulfillment of BBA- Vis Sem. course. The emphasizes in the project is providing the study and an insight in to Indian FMCG business scenario. The Summer Training has given a chance to try and apply the academic knowledge and gain insight in to corporate culture. This helps in developing decision-making abilities and emphasizes on active participation by the student.I undertook my training in Amul India (Gujarat Co-operative Milk Marketing Federation Ltd.) , a leading milk, OUT THE ICECREAM, DEMAND GHEE, icecream, butter manufacture company. During the training I had worked on the project TO FIND ESTIMATION OF MILK, BUTTER, CHOCOLATE IN MODINAGAR

REGION working depot under Amul India(gujrat co-operative milk marketing federation ltd.) I gained valuable experience & knowledge during the survey. The project consists of my findings after tabulation of collected data, then analyzed conclusions were drawn and finally suggestions were put forward.The preface say about the working culture of AMUL INDIA which is a FMCG type of organization, competitive market of soft milk,butter, chocollate industry shows the promotion scheme of AMUL as to make a higher sales in the market.

TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY a) INTRODUCTION .................................................................. b) GCMMF TODAY c) VARIOUS TYPE OF PRODUCT. AMUL BRIEF PROFILE a) ABOUT AMUL. b) MISSION & VISSION.. C) MARKETING STRATEGIES.. d) SWOT ANALYSIS... e) ORGANISATIONAL STRUTURE

CHAPTER 2 a)OBJECTIVE OF STUDY. b)NEED OF THE STUDY... c) RESEARCH METHODOLOGY OF THE STUDY..

CHAPTER3

a) DATA ANALYSIS AND INTERPRETATION b) FINDING AND RECOMMENDATION

CHAPTER 4 CONCLUSION

CHAPTER 5

BIBLIOGRAPHY & ANNEXURES

Chapter-1

Executive Summary
a)Introduction
Amul: The origin The mighty Ganges at it's origin is but a tiny stream in the Gangotri ranges of the Himalayas. Similar is the story of Amul which inspired 'Operation Flood' and heralded the 'White Revolution' in India. It began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to the flood it has become today. Today Amul collects, processes and distributes over a million liters of milk and milk products per day, during the peak, on behalf of more than a thousand village cooperatives owned by half a million farmer members. Further, as Ganga-ma carries the aspirations of generations for moksha, Amul too has become a symbol of the aspirations of millions of farmers.Creating a pattern of liberation and self-reliance for every farmer to follow.

The moppet who put Amul on India's breakfast table

50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No other brand comes even close to it. All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses. Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28year-old housewife is out in the balcony drying clothes. From her second floor flat she can see her neighbours on the road. There are other people
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too. The crowd seems to be growing larger by the minute. Unable to curb her curiosity Sheela Mane hurries down to see what all the commotion is about. She expects the worst but can see no signs of an accident. It is her four-year-old who draws her attention to the hoarding that has come up overnight. "It was the first Amul hoarding that was put up in Mumbai," recalls Sheela Mane. "People loved it. I remember it was our favourite topic of discussion for the next one week! Everywhere we went somehow or the other the campaign always seemed to crop up in our conversation." Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you, from strategically placed hoardings at many traffic lights. She is the Amul moppet everyone loves to love (including prickly votaries of the Shiv Sena and BJP). How often have we stopped, looked, chuckled at the Amul hoarding that casts her sometime as the coy, shy Madhuri, a bold sensuous Urmila or simply as herself, dressed in her little polka dotted dress and a red and white bow, holding out her favourite packet of butter. For 30 odd years the Utterly Butterly girl has managed to keep her fan following intact. So much so that the ads are now ready to enter the Guinness Book of World Records for being the longest running campaign ever. The ultimate compliment to the butter came when a British company launched a butter and called it Utterly Butterly, last year. It all began in 1966 when Sylvester daCunha, then the managing director of the advertising agency, ASP, clinched the account for Amul butter. The butter, which had been launched in 1945, had a staid, boring image, primarily because the earlier advertising agency which was in charge of the account preferred to stick to routine, corporate ads. In India, food was
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something one couldn't afford to fool around with. It had been taken too seriously, for too long. Sylvester daCunha decided it was time for a change of image. The year Sylvester daCunha took over the account, the country saw the birth of a campaign whose charm has endured fickle public opinion, gimmickry and all else. The Amul girl who lends herself so completely to Amul butter, created as a rival to the Polson butter girl. This one was sexy, village belle, clothed in a tantalising choli all but covering her upper regions. "Eustace Fernandez (the art director) and I decided that we needed a girl who would worm her way into a housewife's heart. And who better than a little girl?" says Sylvester daCunha. And so it came about that the famous Amul Moppet was born. That October, lamp kiosks and the bus sites of the city were splashed with the moppet on a horse. The baseline simply said, Thoroughbread, Utterly Butterly Delicious Amul,. It was a matter of just a few hours before the daCunha office was ringing with calls Not just adults, even children were calling up to say how much they had liked the ads. "The response was phenomenal," recalls Sylvester daCunha. "We knew our campaign was going to be successful." For the first one year the ads made statements of some kind or the other but they had not yet acquired the topical tone. In 1967, Sylvester decided that giving the ads a solid concept would give them extra mileage, more dum, so to say. It was a decision that would stand the daCunhas in good stead in the years to come.
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In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna movement, Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative team working on the Amul account came up with a clincher -- 'Hurry Amul, Hurry Hurry'. Bombay reacted to the ad with a fervour that was almost as devout as the Iskon fever. That was the first of the many topical ads that were in the offing. From then on Amul began playing the role of a social observer. Over the years the campaign acquired that all important Amul touch. India looked forward to Amul's evocative humour. If the Naxalite movement was the happening thing in Calcutta, Amul would be up there on the hoardings saying, "Bread without Amul Butter, cholbe na cholbe na (won't do, won't do). If there was an Indian Airlines strike Amul would be there again saying, Indian Airlines Won't Fly Without Amul. There are stories about the butter that people like to relate over cups of tea. "For over 10 years I have been collecting Amul ads. I especially like the ads on the backs of the butter packets, "says Mrs. Sumona Varma. What does she do with these ads? "I have made an album of them to amuse my grandchildren," she laughs. "They are almost part of our culture, aren't they? My grandchildren are already beginning to realise that these ads are not just a source of amusement. They make them aware of what is happening around them .Despite some of the negative reactions that the ads have got, DaCunhas have made it a policy not to play it safe. There are numerous ads that are risque in tone. "We had the option of being sweet and playing it safe, or making an impact. A fine balance had to be struck. We have a campaign that is
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strong enough to make a statement. I didn't want the hoardings to be pleasant or tame. They have to say something," says Rahul daCunha. "We ran a couple of ads that created quite a furore," says Sylvester daCunha. "The Indian Airlines one really angered the authorities. They said if they didn't take down the ads they would stop supplying Amul butter on the plane. So ultimately we discontinued the ad," he says laughing. Then there was the time when the Amul girl was shown wearing the Gandhi cap. The high command came down heavy on that one. The Gandhi cap was a symbol of independence, they couldn't have anyone not taking that seriously. So despite their reluctance the hoardings were wiped clean. "Then there was an ad during the Ganpati festival which said, Ganpati Bappa More Ghya (Ganpati Bappa take more). The Shiv Sena people said that if we didn't do something about removing the ad they would come and destroy our office. It is surprising how vigilant the political forces are in this country. Even when the Enron ads (Enr On Or Off) were running, Rebecca Mark wrote to us saying how much she liked them." There were other instances too. Heroine Addiction, Amul's little joke on Hussain had the artist ringing the daCunhas up to request them for a blow up of the ad. "He said that he had seen the hoarding while passing through a small district in UP. He said he had asked his assistant to take a photograph of himself with the ad because he had found it so funny," says Rahul daCunha in amused tones. Indians do have a sense of humour, afterall.

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From the Sixties to the Nineties, the Amul ads have come a long way. While most people agree that the Amul ads were at their peak in the Eighties they still maintain that the Amul ads continue to tease a laughter out of them. Where does Amul's magic actually lie? Many believe that the charm lies in the catchy lines. That we laugh because the humour is what anybody would enjoy. They don't pander to your nationality or certain sentiments. It is pure and simple, everyday fun.

The Birth of Amul and development of Indias Dairy Cooperative Movement

The birth of Amul at Anand provided the impetus to the cooperative dairy movement in the country. The Kaira District Cooperative Milk Producers Union Limited was registered on December 14, 1946 as a response to exploitation of marginal milk producers by traders or agents of existing dairies in the small town named Anand (in Kaira District of Gujarat). Milk Producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand. Often milk went sour as producers had to physically carry the milk in individual containers, especially in the summer season. These agents arbitrarily decided the prices depending on the production and 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 it to
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Impressed with the development of dairy cooperatives in Kaira District & its success, Shri Lal Bahadur Shastri, the then Prime Minister of India during his visit to Anand in 1964, asked Dr. V Kurien to replicate the Anand type dairy cooperatives all over India. Thus, the National Dairy Developed Board was formed and Operation Flood Programme was Bombay city in turn. India ranked nowhere amongst milk producing countries in the world in 1946.Angered by the unfair and manipulative trade practices, the farmers of Kaira District approached Sardar Vallabhbhai Patel (who later became the first Deputy Prime Minister and Home Minister of free India) under the leadership of the local farmer leader Tribhuvandas Patel. Sardar Patel advised the farmers to form a Cooperative and supply milk directly to the Bombay Milk Scheme instead of selling it to Polson (who did the same but gave low prices to the producers). He sent Morarji Desai (who later became Prime Minister of India) to organize the farmers. In 1946, the farmers of the area went on a milk strike refusing to be further oppressed. Thus the Kaira District Cooperative was established to collect and process milk in the District of Kaira in 1946. Milk collection was also decentralized, as most producers were marginal farmers who were in a position to deliver 1-2 litres of milk per day. Village level cooperatives were established to organize the marginal milk producers in each of these villages. The Cooperative was further developed & managed by Dr. V Kurien along with Shri H M Dalaya. 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
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anywhere in the world. The foundations of a modern dairy industry in India were thus laid since India had one of the largest buffalo populations in the world. The success of the dairy co-operative movement spread rapidly in Gujarat. Within a short span five other district unions Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were organized. In order to combine forces and expand the market while saving on advertising and avoid a situation where milk cooperatives would compete against each other it was decided to set up an apex marketing body of dairy cooperative unions in Gujarat. Thus, in 1973, the Gujarat Co-operative Milk Marketing Federation was established. The Kaira District Cooperative Milk Producers Union Ltd. which had established the brand name AMUL in 1955 decided to hand over the brand name to GCMMF (AMUL). With the creation of GCMMF (AMUL), we managed to eliminate competition between Gujarats cooperatives while competing with the private sector as a combined stronger force. GCMMF (AMUL) has ensured remunerative returns to the farmers while providing consumers with products under the brand name AMUL.This was possible due to the leadership of the founder Chairman of AMUL, Tribhuvandas Patel and the vision of the father of the White Revolution, Dr. Verghese Kurien who worked as a professional manager at AMUL. Numerous people contributed to this movement which would otherwise not have been possible. Dr. Verghese Kurien, the World Food Prize and the Magsaysay Award winner, is the architect of Indias White Revolution, which helped India emerge as the largest milk producer in the world.

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Launched for replication of the Amul Model all over India. Operation Flood, the worlds largest dairy development programme, is based on the experience gained from the Amul Model dairy cooperatives. The facilities at all levels are entirely farmer-owned. The cooperatives are able to build markets, supply inputs and create valueadded processing. Thus, Amul Model cooperatives seem to be the most appropriate organizational force for promoting agricultural development using modern technologies and professional management and thereby generating employment for the rural masses and eradicating poverty in these undeveloped areas. India has already demonstrated the superiority of this approach. Every day Amul collects 447,000 litres of milk from 2.12 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods worth Rs 6 crore (Rs 60 million) to over 500,000 retail outlets across the country.Its supply chain is easily one of the most complicated in the world. How do managers at Amul prevent the milk from souring? Walk in to any Amul or Gujarat Cooperative Milk Marketing Federation (GCMMF) office, and you may or may not see a photograph of Mahatma Gandhi Image, but you will certainly see one particular photograph. It shows a long line of Gujarati women waiting patiently for a union truck to come and collect the milk they have brought in shining brass matkas. The picture is always prominently displayed. The message is clear: never forget your primary customer. If you don't, success is certain. The proof? A unique, Rs 2,200 crore (Rs 22 billion) enterprise.

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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. There are similar federations in other states. Right from the beginning, there was recognition that this initiative would directly benefit and transform small farmers and contribute to the development of society. Markets, then and even today, 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. 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. 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
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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.

Developing demand
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.

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.

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The distribution network

Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. This practice is consistent with GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This just-in-time inventory strategy improves dealers' return on investment (ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle operations.

Umbrella brand
The network follows an umbrella branding strategy. Amul is the common brand for most product categories produced by various unions: liquid milk, milk powders, butter, ghee, cheese, cocoa products, sweets, icecream and condensed milk. Amul's sub-brands include variants such as Amulspray, Amulspree, Amulya and Nutramul. The edible oil products are grouped around Dhara and Lokdhara, mineral water is sold under the Jal Dhara brand while fruit drinks bear the Safal name.

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By insisting on an umbrella brand, GCMMF not only skillfully avoided inter-union conflicts but also created an opportunity for the union members to cooperate in developing products.

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.

Coordination
Given the large number of organisations and entities in the supply chain and decentralised responsibility for various activities, effective coordination is critical for efficiency and cost control. GCMMF and the unions play a major role in this process and jointly achieve the desired degree of control. Buy-in from the unions is assured as the plans are approved by GCMMF's board. The board is drawn from the heads of all the unions, and the boards of the unions comprise of farmers elected through village societies, thereby creating a situation of interlocking control. The federation handles the distribution of end products and coordination with retailers and the dealers. The unions coordinate the supply side activities.These include monitoring milk collection contractors, the supply of animal feed and other supplies, provision of veterinary services, and educational activities.Managing third party service providers

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From the beginning, it was recognised that the unions' core activity lay in milk processing and the production of dairy products. Accordingly, marketing efforts (including brand development) were assumed by GCMMF. All other activities were entrusted to third parties. These include logistics of milk collection, distribution of dairy products, sale of products through dealers and retail stores, provision of animal feed, and veterinary services.It is worth noting that a number of these third parties are not in the organized sector, and many are not professionally managed with little regard for quality and service.This is a particularly critical issue in the logistics and transport of a perishable commodity where there are already weaknesses in the basic infrastructure.

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. Or a TQM program at the unions. Or housekeeping and good accounting practices at the village society level.More important, the network has been able to regularly roll out improvement programs across to a large number of members and the implementation rate is consistently high. For example, every Friday, without fail, between 10.00 a.m. and 11.00 a.m., all employees of GCMMF meet at the closest office, be it a department or a branch or a depot to discuss their various quality
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concerns.Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with a process check at the end to record how the meeting was conducted. Similar processes are in place at the village societies, the unions and even at the wholesaler and C&F agent levels as well. Examples of benefits from recent initiatives include reduction in transportation time from the depots to the wholesale dealers, improvement in ROI of wholesale dealers, implementation of Zero Stock Out through improved availability of products at depots and also the implementation of Just-in-Time in finance to reduce the float. Kaizens at the unions have helped improve the quality of milk in terms of acidity and sour milk. (Undertaken by multi-disciplined teams, Kaizens are highly focussed projects, reliant on a structured approach based on data gathering and analysis.) For example, Sabar Union's records show a reduction from 2.0% to 0.5% in the amount of sour milk/curd received at the union.The most impressive aspect of this large-scale roll out is that improvement processes are turning the village societies into individual improvement centers.

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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 to implement B2C commerce.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.

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The Three- tier "Amul Model"

The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level which in turn is further federated into a Milk Federation at the State level. The above three-tier structure was setup in order to delegate the various functions, milk collection is done at the Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation. This helps in eliminating not only internal competition but also ensuring that economies of scale is achieved. As the above structure was first evolved at Amul in Gujarat and thereafter replicated all over the country under the Operation Flood Programme, it is known as the Amul Model or Anand Pattern of Dairy Cooperatives.Responsible for Marketing of Milk & Milk Products Responsible for Procurement & Processing of Milk Responsible for Collection of Milk Responsible for Milk Production.

Dairy Village 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 Village Dairy Cooperative is the primary society under the three-tier structure. It has membership of milk producers of the village and is governed by an elected Management Committee consisting of 9 to 12 elected representatives of the milk producers based on the principle of one member, one vote. The village society further appoints a
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Secretary (a paid employee and member secretary of the Management Committee) for management of the day-to-day functions. It also employs various people for assisting the Secretary in accomplishing his / her daily duties. The main functions of the VDCS are as follows:

Collection of surplus milk from the milk producers of the village & payment based on quality & quantity. 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 Union.

District Cooperative Milk Producers Union (Milk Union)

The Village Societies of a District (ranging from 75 to 1653 per Milk Union in Gujarat) having surplus milk after local sales come together and form a District Milk Union. The Milk Union is the second tier under the three-tier structure. It has membership of Village Dairy Societies of the District and is governed by a Board of Directors consisting of 9 to 18 elected representatives of the Village Societies. The Milk Union further appoints a professional Managing Director (paid employee and member secretary of the Board) for management of the day-to-day functions. It also employs various people for assisting the Managing Director in

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accomplishing his / her daily duties. 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. Providing input services to the producers like Veterinary Care, Artificial Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, etc. Conducting training on Cooperative Development, Animal

Husbandry & Dairying for milk producers and conducting specialised skill development & Leadership Development training for VDCS staff & Management Committee members.

Providing management support to the VDCS along with regular supervision of its activities. 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.

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State Cooperative Milk 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. It has membership of all the cooperative Milk Unions of the State and is governed by a Board of Directors consisting of one elected representative of each Milk Union. The State Federation further appoints a Managing Director (paid employee and member secretary of the Board) for management of the day-to-day functions. It also employs various people for assisting the Managing Director in accomplishing his daily duties. The main functions of the Federation are as follows:

Marketing of milk & milk products processed / manufactured by Milk Unions. Establish distribution network for marketing of milk & milk products. Arranging transportation of milk & milk products from the Milk Unions to the market. Creating & maintaining a brand for marketing of milk & milk products (brand building). Providing support services to the Milk Unions & members like Technical Inputs, management support & advisory services. Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.

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Establish feeder-balancing Dairy Plants for processing the surplus milk of the Milk Unions. Arranging for common purchase of raw materials used in manufacture / packaging of milk products. Decide on the prices of milk & milk products to be paid to Milk Unions. Decide on the products to be manufactured at various Milk Unions (product-mix) and capacity required for the same. Conduct long-term Milk Production, Procurement & Processing as well as Marketing Planning. Arranging Finance for the Milk Unions and providing them technical know-how. Designing & Providing training on Cooperative Development, Technical & Marketing functions. Conflict Resolution & keeping the entire structure intact.

We move to the year 2008. 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 has emerged 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 has become the focal point of dairy development in the entire region and AMUL has emerged as one of the most recognized brands in India, ahead of many international brands. Today, we have around 176 cooperative dairy Unions formed by 1,25,000 dairy cooperative societies having a total membership of around 13 million farmers on the same pattern, who are processing and marketing
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milk and milk products profitably, be it Amul in Gujarat or Verka in Punjab, Vijaya in Andhra Pradesh or a Nandini in Karnataka. This entire process has created more than 190 dairy processing plants spread all over India with large investments by these farmers institutions. These cooperatives today collect approximately 23 million kgs. of milk per day and pay an aggregate amount of more than Rs.125 billion to the milk producers in a year.

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Amul Hits of 2010 - 2011

"Butter khana , not gymkhana!" , "INCOME ATTAX!", "Bharat Obama?"

"Kochi toh log Commission....err!"

kahenge!" , "Flight dis 'eruption'!" , "IPL

"CHENNAI

'SAPAAD'

KINGS!" , "Celebrating 50 years of

Gujarat" , "Swarnim india Swarnim gujarat Swarnim amul"

"MAHA NASHTA DAY!" , "BAS AB AUR NAHIN! KASAB AUR NAHIN!" , "Bites !"

"THE SNACKS snakes!"

EFFECT!" , "Party pooped!" , "Share your

"Beat the heat, just eat!" , "From bye bye to Bhai Bhai!" , "Yahan der bhi hai, andher bhi......"

"Toh ab goalie kha.....!" ,"Messi ko Maska dona.....!","OIL SLICK! BUTTER LICK!"

"Kashmir ki kali ko khilne Do!", "Jhat makhni pat byah!", "Sabka Paul khol diya!",

"WOH KHA!WOH KHA!", "Symbol for BUTTER", "BLED TIME STORY!", "Casting coach!"

"ONCE UPON A SLICE IN MUMBAI!!" , "Get buttered, not battered!" , "Prevent malaria.Spread amularia" , "Common wealth
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kha gaya?" , "POLLUTION TEL LAGAANE GAYA!" , "Butter? Jam?" , "RAI' BOT!" , "The No ball Prize !" , "Vishwa ke nath, Bharat ke kuch nahin? " , "For bookies! For bhookas!"

"EATEN 24 HOURS A DAY" , "BHARAT BANDH? ISKO KHOLO!" , "MASKA KHOLA HAI, DARLING TERE LEYE!" , "Jigrr mat haaro!" ,"Incurable India !"

"Divide......and unite !" , "He slices 1000 loaves with one finger!" , "I declare this pack open" Management of a Gymkhana in Mumbai, evicted a trangender activist from a dinner party hosted by one of its member- April'10

30

Anand : Gujarat Cooperative Milk Marketing Federation (GCMMF),

renowned for marketing milk & milk products under Amul & Sagar brands, announced record Sales Turnover of Rs. 8005 crores. The results of the apex body of the dairy cooperatives in Gujarat, were declared today in the 36th Annual General Meeting of the Federation. While commenting on the results, Shri Parthibhai G. Bhatol, Chairman, GCMMF informed that last year, our turnover was 6711 crores (Rs 67 billion) and our Federation registered a quantum growth of 19.3% to reach Rs 8005 crores (Rs 80 billion).This is an extremely impressive growth when viewed from the perspective of drought effect and resultant drop in milk procurement as well as 27.7% growth that we achieved in the year 200809 Shri Bhatol commented. He further informed, Federation has justified its undisputed leadership in milk business by achieving sales growth in pouch milk category by more than 21% and in value terms by 32% from existing markets only. We have achieved number one status in pouch milk sales in Delhi this year. With this achievement, Amul milk has emerged as the largest selling brand of milk in all major metro markets of Delhi, Mumbai, Kolkata and Ahmedabad.Further commenting, he said Our Masti Dahi sales grew at an impressive rate of 46%. Ice-cream sales registered a value growth of 22%. Amul Cheese sales increased by 20%. UHT milk also grew strongly at 14% along with Fresh Cream registering 39% growth. Our beverage sales grew by 25% and our chocolate sales also registered an encouraging growth of 30%.Regarding retail experiment of Amul, Shri Bhatol informed Federation has created 5000 Amul preferred outlets which exclusively sell wide range of Amul products. 2000 of these parlours have been added during the current year which speaks volumes about the quantum of scale
31

and speed with which the expansion has been dealt with. It is unthinkable for any competition to create such massive network of exclusive outlets. The Retailing business alone fetched a turnover of Rs. 300 Crore during the current financial year. Regarding exports, Shri Bhatol commented, We have been able to maintain and strengthen our presence in consumer pack export markets. This year too we have crossed a mark of Rs 100 crore in foreign exchange earnings. We have been able to achieve this figure for the 5th time by now.Regarding future plan of the dairy cooperative, Shri Bhatol informed, During last year, we prepared a perspective.

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GCMMF Today
GCMM F 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 affordable quality products. GCMMF markets and manages the Amul brand. From mid-1990s Amul has entered areas not related directly to its core business. Its entry into ice cream was regarded as successful due to the large market share it was able to capture within a short period of time - primarily due to the price differential and the brand name. It also entered the pizza business, where the base and the recipes were made available to restaurant owners who could price it as low as 30 rupees per pizza when the other players were charging upwards of 100 rupees.

33

GCMMF: An Overview
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.

Members: No. of

13 district cooperative milk producers' Union Producer 2.79 million Village 13,328

Members: No. of Societies:

Total Milk handling 11.22 million litres per day capacity: Milk collection 3.05 billion litres (Total - 2008-09): Milk collection 8.4 million litres (Daily Average 2008-09): Milk Capacity: Drying 626 Mts. per day

Cattle feed mfg. cap. 3500 Mts per day

34

Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 67242

US $ (in million) 355 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504 1594

c) Various Type Of Product

35

Amul is the acronym for Anand Milk Union Limited, a dairy cooperative company in Gujarat, India that markets a wide range of products including milk powders, milk, butter, ghee, cheese, chocolate, Shrikhand, Gulab Jamun, ice cream, cream, Nutramul brand and others making it the largest food brand in India with an annual turnover in excess of US $1 billion (2006-07). The complete listing is below.
Bread spreads Pure Ghee Milk Powders Sweetened Condensed Milk Sweets Fresh Milk Amul Icecreams Chocolate & Confectionery Brown Beverage Milk Drink Health Beverage References External links

Breadspreads

Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter Delicious Margarine Amul / Sagar Pure Ghee
36

Milk Powders

Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener

Sweetened Condensed Milk

Amul Mithaimate

Sweets

Amul Shrikhand & Amrakhand Amul Mithaee Khoya Gulabjamaun Amul Basundi

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
Amul Yogi, A Flavoured Yoghurt Amul Masti Dahi (Fresh Curd) Amul Lite Dahi (Fresh Low Fat Curd) Amul Prolife probiotic Dahi (Fresh Probiotic Curd) Amul Buttermilk (Available Fresh in Pouch Pack) 37

 Amul Masti Spiced Butter Milk Amul Lassee

Amul Icecreams

Vanilla Royale Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi) Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond)

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) Amul SUGAR FREE Frozen Foods (Milk Based Sweet) Amul ProLife Probiotic Ice cream

Chocolate & Confectionery

Amul Fruit & Nut Chocolate Amul Bindazz Amul Rejoice Amul kesar

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Brown Beverage

Nutramul Malted Milk Food

Milk Drink
Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate,Butterscotch)(Right now AMUL stopped its AMUL KOOL Production) Amul Kool Cafe amul sexy gums Amul Kool Koko

Health Beverage

Amul Shakti White Milk Food

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
39

Amul Cheese Amul Malai Paneer

Amul UHT Milk (Long Life)

Amul Gold Milk Amul Taaza Full Cream 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.

40

AWARD Rajiv Gandhi National Quality Award - 1999

After creating ripples in the market whether it be with a Rs. 20/- Pizza or with a "real" Ice Cream, Amul has done it again. But this time, it is not only for new product launches or giving a tough fight to best of the food companies in extremely competitive segments, it has now topped as the winner of t "Best of All" Rajiv Gandhi National Quality Award for the year, 1999.The award which is considered equivalent of Malcolm Baldrige National Quality Award of USA and European Quality Award, is the most prestigious award which recognizes achievements of an organization in terms of excellence in business results, business processes, customer satisfaction as well as societal and environmental impact. GCMMF, the apex marketing body of well known Amul, Sagar and Dhara brands of products is a Cooperative Federation of more than 2 million milk producers of Gujarat. Pioneered by Dr. Verghese Kurien, the father of white revolution, GCMMF is today nation's largest food company with an annual turnover exceeding Rs 2300 Crores. Looking at the emerging trends of liberalization and impact of WTO, the GCMMF proactively embarked upon Total Quality Management as a change management initiatives to strengthen all its functional processes to effectively combat
41

emerging competition. It undertook successfully a number of TQM initiatives like Kaizen, Housekeeping, Small Group Activities, Hoshin Kanri (Policy Deployment) across the organization. Realising that unless the TQM initiatives are accepted by all the business partners, the same would remain ineffective. As a very unique measure Amul extended all the TQM initiatives to its business partners whether it was the farmer producer in the village or a wholesale distributor in a metro town or its most sophisticated production unit. Shri B.M. Vyas, Managing Director, who championed this movement realized way back in 1994 that with emerging competition, doing business would become more exciting yet extremely competitive which would require at times not only a whole set of new skills and competencies but quick adaptability to change without much stress or turbulence. The initiation of TQM was to work with the well known quality management initiatives which have proven to be effective elsewhere to create a culture of transparency, openness and leadership in the organization. Employees of GCMMF have done more than 1.60 lakhs Kaizen since May, 1995 which has impacted in bringing in a culture of continuous improvement. The housekeeping initiatives have helped keeping the offices/warehouses neat, clean and more productive, be it be the Office premises or the godowns or even Computers. More than 150 SGAs (Small Group Activity) have been carried out in cross functional groups to address the problem and pain areas of the organization, be it an issue of sales, marketing, HR or IT. The organization has implemented a customized ERP for seamless integration of its 40 odd sales offices from Jammu to Port-Blair and Head Office. All its wholesale dealers are computerized and GCMMF is moving on a B2B model for integration interface with its
42

dealers be it for placing order for buying its products, sharing information or for tracking logistic of dispatch/receipt of goods. One of the unique initiatives has been in terms of involvement of its wholesale dealers in a common platform to address issues of market/customers. All the wholesale dealers from across the country have visited Anand in a unique programme called "AMUL YATRA". In the next phase, the organization has already started inviting the salesmen of these wholesale dealers for this programme. It also intends to invite the top retailers of various cities/towns to Anand. The purpose is not as much to orient them to GCMMF's business plans, but to inculcate a superordinate goal in their heart that when they are associated with AMUL, they are working for a modest milk producer in the rural hinterland of the country and that is what true progress is about. GCMMF has more than 200 Amul Quality Circles in the country where all the above wholesale Dealers meet in group on every third Saturday of the month to discuss their business, quality initiatives and also pain areas. This has impacted tremendously not only in communication but also in improving the transparency in the organization. GCMMF has also embarked upon for last 4 years, 'Hoshin Kanri' a ployment initiative where more than 100 Officers/Heads participate twice in a year to review its business goals/processes and implement new initiatives. These are further cascaded to the wholesale dealers in different territories in a two day exercise called Vision Mission Strategy (VMS) Workshop. These initiatives have resulted common understanding of goals, eliminating communication barrier. The initiative of TQM six years back has made the organization efficient whether it be in launch of
43

brands, or in implementing ERP's or expanding its distribution network. More striking feature of GCMMF's TQM experience is the integration of its business linkages at the village level to the forward linkage through its sales offices/wholesale dealers in the market. In a glittering function organized at Vigyan Bhawan, New Delhi on 12th November, 2001, Shri Shanta Kumar, Hon'ble Minister of Consumer Affairs, Food and Public Distribution gave away the awards to Shri B.M. Vyas, MD of GCMMF.

AMUL BRIEF PROFILE

44

Amul was formally registered on December 14, 1946. Dr Verghese Kurien is recognised as the man behind the success of Amul. The 'Amul revolution' started as awareness among the farmers, grew and matured into a protest movement that was channeled towards economic prosperity. Over five decades ago, the life of a farmer in Kheda District was very much like that of his/her counterpart anywhere else in India. His/her income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. Private traders and middlemen controlled the marketing and distribution system for the milk. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throw-away prices. In this situation, the private trader made a killing. Gradually, the realization dawned on the farmers that the exploitation by the trader could be checked only if marketed their milk themselves. Amul was the result of that realization. The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in June 1948. By the end of 1948, more than 400 farmers joined in more Village Society, and the quantity of milk handled by one Union increased from 250 to 5,000 liters a day. The success of Amul was instrumental in launching the White Revolution that resulted iincreased milk production in India. It is termed as "Operation Flood" by Amul. Currently Amul has 2.41 million producer members with milk collection average of 5.08 million litres/day. Amul's sales turnover in 2004-05 was 672 million US $.

Company info

45

The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest food products marketing organisation of India. It is the apex organization of the Dairy Cooperatives of Gujarat. This State has been a pioneer in organizing dairy cooperatives and our success has not only been emulated in India but serves as a model for rest of the World. Over the last five and a half decades, Dairy Cooperatives in Gujarat have created an economic network that links more than 2.8 million village milk producers with millions of consumers in India and abroad through a cooperative system that includes 13,141 Village Dairy Cooperative Societies (VDCS) at the village level, affiliated to 13 District Cooperative Milk Producers Unions at the District level and GCMMF at the State level. These cooperatives collect on an average 7.5 million litres 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 2008-09 was Rs. 67.11 billion. It markets the products, produced by the district milk unions in 30 dairy plants, under the renowned AMUL brand name. The combined processing capacity of these plants is 11.6 million litres per day, with four dairy plants having processing capacity in excess of 1 million Litres per day. The farmers of Gujarat own the largest state of the art dairy plant in Asia Mother Dairy, Gandhinagar, Gujarat - which can handle 2.5 million litres of milk per day and process 100 MTs of milk powder daily. During the last year, 3.1 billion litres of milk was collected by Member Unions of GCMMF. Huge capacities for milk drying, product manufacture and cattle feed manufacture have been installed. All its products are manufactured under the most hygienic conditions. All dairy plants of the
46

unions are ISO 9001-2000, ISO 22000 and HACCP certified. GCMMF (AMUL)s Total Quality Management ensures the quality of products right from the starting point (milk producer) through the value chain until it reaches the consumer. Ever since the movement was launched fifty-five years ago, Gujarats Dairy Cooperatives have brought about a significant social and economic change to our rural people. The Dairy Cooperatives have helped in ending the exploitation of farmers and demonstrated that when our rural producers benefit, the community and nation benefits as well. The Gujarat Cooperative Milk Marketing Federation Ltd. cannot be viewed simply as a business enterprise. It is an institution created by the milk producers themselves to primarily safeguard their interest economically, socially as well as democratically. Business houses create profit in order to distribute it to the shareholders. In the case of GCMMF the surplus is ploughed back to farmers through the District Unions as well as the village societies. This circulation of capital with value addition within the structure not only benefits the final beneficiary the farmer but eventually contributes to the development of the village community. This is the most significant contribution the Amul Model cooperatives has made in building the Nation.

Achievements of GCMMF
2.8 million milk producer member families

13,759 village societies 13 District Unions

47

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 billionss The Govt. of India has honoured Amul with the Best of all categories Rajiv Gandhi National Quality Award. 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

Amul Brand Building

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. 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 exporting a wide variety of products which include Whole and Skimmed Milk
48

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] SAARCneighbours Singapore, The Philippines, Thailand, Japan and China. In September 2009, Amul emerged as the leading Indian brand according to a survey by Synovate to find out Asia's top 1000 Brands.

b) MISSION AND VISSION OF AMUL

GCMMF plans Rs 2,600 cr investment for vision 2020 After having prepared its vision 2020, Gujarat Co-operative Milk Marketing Federation (GCMMF), which owns and markets Amul brand, plans to pump in around Rs. 2,600 crore to achieve its mission."As part of our mission, we intend to double the existing capacity of all our member
49

union by 2020. Around Rs. 2,600 crore are planned to be infused by 2020 to ramp up production as well as infrastructure capacities", said Parthi Bhatol, in-charge chairman, GCMMF."Whatever infrastructure and capacities we have today, will be doubled to achieve mission 2020", added BM Vyas, managing director, GCMMF. GCMMF has come up with a long term plan, which envisages increasing the turnover of all its member dairy co-operatives to Rs. 27,000 crore by 2020 from current level of Rs. 10,000 crore. Currently, the marketing federation has 13 member unions.The total milk procurement by its member union averaged at 87.19 lakh kgs per day in 2008-09, which represented the growth of 14.87 per cent over 75.90 lakh kgs per day. GCMMF also wants to double this milk procurement capapcity by 2020. Apart from this, these dairy cooperatives also demonstrated their ability to process 110 lakh kgs of milk per day.The expansion under mission 2020 includes increasing productivity of milk cattle, higher processing infrastructure to handle the peak milk procurement of 195 lakh per day. It also has plans to capture liquid milk market of major metro cities.GCMMF has further decided to focus more on retail expansion. As per the available details, the federation plans to add 6,000 Amul parlours across the country in financial year 2009-10.At present, it has retailing network of 4,000 Amul parlours. The apex body of dairy co-operatives plan to take the total tally of Amul parlours to 10,000 by adding 8,000 parlours during 2010-11.

MISSION Amul Vidyashree & Amul Vidya Bhushan Awards

50

The foundation of every state is the sound education of its youth and hence is the most basic constituent for a developing nation like India. Towards this, we at Amul have always contributed our best towards ensuring development and encouraging the spirit of enlightenment among todays youth. As a continuation towards this endeavour, Amul has instituted Vidyashree Award to recognize the academic excellence of the class 10 school topper in the examination in each State/Central Board enrolled school every year.The objective of the awards is to recognize the efforts of the academic merit toppers and build equity for Amul among the young India. We are proud to constitute this award which is the first of its kind in India and operate Pan-India in such a large scale. By winning this award, not only the student gets recognized, but it also help the schools to enhance their image as an academy that imparts quality education, putting it at par with other premier institutions in India.

Both Amul Vidyashree & Amul Vidyabhushan Award consist: A specially designed Trophy.

A Certificate of excellence signed by MD, GCMMF and A Cash

Award of Rs.1000/- Listed along with photograph on our website www.amul.com.

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Feature in press advertisement in a leading national newspaper

The inception of this award too ar 2004-05, whereby in the first year we honoured the award to students of 500 schools in South India, East India and Gujarat. In the second year (2005-06) we further acknowledged 2267 students across schools in India. For the academic year 2006-07, we have till date recognized the academic excellence of around 3077 for Vidyashree Award across India. Moving ahead, in 2006-07 we have instituted the Amul Vidyabhushan Award to recognize the toppers of 12th Standard examinations. In the first of year of inception, we have awarded students 2073 students across India.For the academic year 200708, we plan to recognize the efforts of 10,000 Class X & Class XII merit rankers (5000 students each for Vidyashree and Vidyabhushan Awards). We further intend to increase the award number every year so that maximum students are recognized for their academic excellence through our Awards. All this is towards Amuls vision to see educated, talented and strong youth in future India and hence work our best towards nation building.

c)MARKETING STRATEGIES
Amul is the largest co-operative movement in India with 2.2 million milk producers organised in 10,552 co-operative societies in 2009-2010. The country's largest food company, Amul, is the market leader in butter, whole milk, cheese, ice cream, dairy whitener, condensed milk, saturated fats and long life milk .Amul follows a unique business model, which aims at providing 'value for money' products to its consumers, while
52

protecting the interests of the milk-producing farmers who are its suppliers as well as its owners. Despite being a farmers' co-operative, Amul has given multinationals a run for their money.

In butter, cheese and saturated fats, Amul has remained the undisputed market leader since its inception in 1955, by offering quality products at competitive prices. In other categories, Amul has nullified its late mover disadvantage through aggressive pricing, better quality, innovative promotion, and superior distribution .

d)

SWOT ANALYSIS

Strengths:

Demand profile: Absolutely optimistic. Margins: Quite reasonable, even on packed liquid milk.

53

Flexibility of product

mix: Tremendous.

With

balancing

equipment, you can keep on adding to your product line.

Availability of raw material: Abundant. Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which requires proper channelization. Technical manpower: Professionally-trained, resource pool, built over last 30 years technical human

Weaknesses:

Perishability: Pasteurization has overcome this weakness partially. UHT gives milk long life. Surely, many new processes will follow to improve milk quality and extend its shelf life. Lack of control over yield: Theoretically, there is little control over milk yield. However, increased awareness of developments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields. Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk procurement problematic. But

with the overall economic improvement in India, these problems would also get solved. Problematic distribution: Yes, all is not well with distribution. But then if ice creams can be sold virtually at every nook and corner, why cant we sell other dairy products too?Moreover, it is only a

54

matter of time before we see the emergence of a cold chain linking the producer to the refrigerator at the consumers home!

Competition: With so many newcomers entering this industry, competition is becoming tougher day by day. But then competition has to be faced as a ground reality. The market islarge enough for many to carve out their niche.

Opportunities:
"Failure is never final, and success never ending. Dr Kurien bears out this statement perfectly. He entered the industry when there were only threats. He met failure head-on, and now he clearly is an example of never ending success! If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped:

Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential areas of value addition:Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building.

Addition of cultured products like yoghurt and cheese lend further strength - both in terms of utilization of resources and presence in the market place. A lateral view opens up opportunities in milk proteins through casein, caseinates and other dietary proteins, further opening up export opportunities.
55

Yet another aspect can be the addition of infant foods, geriatric foods and nutritionals.

Export potential: Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty, opportunities will increase tremendously for the export of agri-products in general and dairy products in particular.

Threats:
Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance. The study of this SWOT analysis shows that the strengths and opportunities far outweigh weaknesses and threats. Strengths and opportunities are fundamental and weaknesses and threats are transitory. Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and marketing) and values (of quality/ethics). The Indian dairy industry, following its delicensing, has been attracting a large number of entrepreneurs. Their success in dairying depends on factors such as an efficient yet economical procurement network, hygienic and cost-effective processing facilities and innovativeness in the market place. All that needs to be done is: to innovate, convert products into commercially exploitable ideas. All the time keep reminding yourself:
56

Benjamin Franklin discovered electricity, but it was the man who invented the meter that really made the money.

e)ORGNISATION STRUCTURE
CHAIRMAN

BOARD OF DIRECTORS

57

MANAGING DIRECTORS

GENERAL MANAGER

MARKETING MANAGER

ASST. GEN. MANAGER HEAD OFFICE ASST. GEN. MANAGER ZONE-1 ASST. GEN. MANAGER ZONE-2

ASST. GEN. MANAGER ZONE-5 ASST. GEN. MANAGER ZONE-4 ASST. GEN. MANAGER ZONE-3

HUMAN RESOURSE DEVLOPMENT

PRODUCT MANAGEMENT CONTROL GROUP

QUALITY

SALE

INFORMATION SYSTEM

Assistant general manager

DEPUTY MANAGER MARKETING

Head office

ASSISTANT MANAGER MARKETING

SENIOR EXECUTIVE MARKETING

EXECUTIVE MARKETING 58 JUNIOUR EXECUTIVE MARKETING

B M O A A AN R SAA D SGS TI S C O . NT H AM. F GG SAG E A SD NRE S Td N I . KS . D. R E MT GDM E AT . A EDA C IG AS NI NT SS ANN RE .SO GGA T EN M R T . EC.G ASE .G RM M NTR AA GE AO EN HNN GRZ N EA.A ES O .M AGG REN ME DA RE AN R Z N OA O 5 AZ FG N A GO FE E H EN I R RE C M - E E Z1 D Z 4 AO N A OC NN E B NH AE WA E N -E - D D3 N D 2K N E A O L MI L

I M A BT AT IA

CHAPTER- 2 Objectives of the study

To find out market share of AMUL. To find out the demand estimation of milk, butter,cheese ghee, paneer, chocolate
59

To understand the marketing strategy of AMUL. To analyze the customers needs regarding the product and policies formulated by the company. To find out the brand image of AMUL

Need for the study

Management is like a coin having two sides. One is the theoretical part and second is the practical part. In the theoretical part of management we learn in our classroom from the lectures, seminars, group discussions thatare arranged from time to time.To know the practical aspect of management a practical training is provided to the students. The main idea behind practical training is to bring the management students face to face with the actual environment of practical management so that he/ she will be able to apply theory to practical situation before finally moving into the professional world to show the efficiency and capability.The project study focused on AMUL as a product and the subject is to understand the mind set of different customers about the product.

CHAPTER-3 Analysis of demand estimation of amul product

Place: Modinagar

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Analysis of household survey

Census:113218

(1)Higher income group: Sample size:10

Consumption of amul product (a)liquid milk (b)Butter (c)ghee (d)paneer (e)cheese (f)ice cream (g)chocolate kg/day 23775 79 22 34.4 22 12 15

(2)upper medium income group Sample size:10

Consumption of amul product (a)liquid milk (b)Butter (c)ghee (d)paneer (e)cheese (f)ice cream (g)chocolate kg/day 47551 106 59 142 52 105 9

(3) middle income group Sample size:10

Consumption of amul product (a)liquid milk (b)Butter (c)ghee (d)paneer
61

kg/day 23775 49.9 47.5 73.7

(e)cheese (f)ice cream (g)chocolate

38 6.4 4

(4)lower income group Sample size:10

Consumption of amul product (a)liquid milk (b)Butter (c)ghee (d)paneer (e)cheese (f)ice cream (g)chocolate kg/day 40418 nil 17 13 nil 2 2

Analysis of retailer survey Class-A

sample size:30 selling of amul product (a)liquid milk (b)Butter
62

kg/day 50512 90.5

(c)ghee (d)paneer (e)cheese (f)ice cream (g)chocolate

30kg/m 76 46 156.4 6

CLASS-B
sample size:10 selling of amul product (a)liquid milk (b)Butter (c)ghee (d)paneer (e)cheese (f)ice cream (g)chocolate kg/days 35856 54 24kg/m 6.4 13 10 6p/m

Method of calculation:
In this first I find out the population of that area where I went to find out the demand estimation. Place: Modinagar Census: 113218 As the example of milk for higher income group:

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Average consumption of milk = total consumption of milk/no of household. Population of higher income group in modinagar is :7% Total population of higher income group in modinagar is:-7925 So demand estimation of milk in higher income group is:7925*3lit=23775

Interpretation
During the survey I asked about the satisfaction level of household as well as retailer about the product and services after analysis it was found that (1) (2) (3) (4) Amul product is widely accepted by higher, middle and lower income group people. Amul product always be in reach of people easily. It shows that Amul has a strong distribution channel. Due to its brand image, quality, price and taste Amul is undisputed leader in retails with an evenly distributed Retail outlet in modinagar, which results for higher sales for Amul milk.

FINDINGS OF THE STUDY

The collected data that analyzed come out with following findings:The result of analysis of dairy product in modinagar is as follows (1) Amul is first largest dairy milk in modinagar and Mother dairy is the second.
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(2) (3)

The percentage of market share of Amul liquid milk is 52% and share of mother dairy is 46% and other is 2%. As far as Ice- cream and chocolate is concerned the competition is tough with reputed brands which fighting for their share in the modinagar market.

(4) (5)

Rest of product sell Like: -( Butter, ghee, paneer and cheese) is not so good due to lack of quality. The total percentage of promotional activities that help to increase the sales.

RECOMMENDATION:1 2 A healthy relationship should be developed by the company executive with the retailers. Service of Amul should be improved in the ease of repairing of its misleaders (Refrigerators) and glow sign boards which are out of

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order in an outlet up to the level thus it is parallel or even better than the competitor. 3 4 No.of route vehicles for delivery of goods should be increased in the entire area of modinagar effectively and efficiently. The company should supply its glow sign board Banners etc as an advertisement media to the retailers of few areas, which will as usual become sales promotion tool for them . 5 6 The commitment of supplying gift items or incentive should be carried out on or before the schedule time. The sales schemes and incentive should be properly communicated to the consumer ( retail outlets/ confectionary) and it should be time. 7 The company should be regular of its goods such as different flavors so as for proper availability at each and every retail/ confectionary shop. Otherwise it may lose its consumer and prospects thus distorting the image of the company. 8 Distributor and confectionary shop feed back should be taken time to time so as to trace the actual existing problem related to there and the market.

CONCLUSION
Working for an organization like GCMMF in the ghaziabad region is a pride for me and gave me a chance to learn the marketing skill and help me to understand the real environment of business in modinagar market potential for dairy product helps me lot.In an area like modinagar need a lot of planning has to be made before making any offer to the customer.
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As far as ice cream, milk is concerned the competition is tough with reputed brands which fighting for their share in the market. But owing to its brand image, quality, price and taste Amul is undisputed leader in retails with an evenly distributed retail outlet in modinagar, which results for higher sales for Amul milk. As far as other avenues for sales is concerned like pushcarts, institutional selling and other bulk deals etc. Amul is far behind and has to cover a long distance and more efforts have to be done in this field, to increase its total revenue. At last it was a great experience to me working with Amul, a reputed brand in FMCG sector because many of the management gurus sai work successfully in FMCG sector than you can survive easily in any sector.

BIBLIOGRAPHY

1. WWW.AMUL.COM 2. WWW.NDDB.COM

3. WWW.GOOGLE..COM
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4. MARKETING MANAGEMENT: BY PHILIP KOTLER 5. RESEARCH METHODOLOGY : BY C.R.KOTHARI

ANNEXURE-1

Chairman's Speech: 36th Annual General Body Meeting held on 18th August, 2010

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The year that passed by was challenging one, not just for the global economy as a whole but also for India and its dairy industry. During the last year, India witnessed one of the worst monsoons in two decades leading to drop in agricultural production mainly in case of Wheat, Rice, Sugar and Pulses with its impact varying across different geographies and categories. With record buffer stock of Rice and Wheat accumulated by the Government during previous year, the nation could meet demand of Rice and Wheat from within. However in case of Sugar and Pulses, we had to resort to large-scale imports. India being one of the largest consumers of Pulses and Sugar in the World, import of these commodities resulted into record International prices and domestic prices too, shot up leading to price increases not only in these commodities but also in their substitutes and by-products. Compared to these commodities, there was relatively lower impact of draught on milk production in the country and substantial growth has also been achieved. Due to the sound procurement and distribution network as well as immaculate planning, in Gujarat we were able to wither the draught and also achieve 6.68% growth in milk procurement. We could foresee the impact of below normal monsoon in August 2009 itself and started planning to maintain milk production, procurement and inventory levels. At a time when due to lower production of cereals, fodder prices had jumped almost two-fold, we enhanced our supplies of cattle-feed to milk producers and maintained its prices below cost and were able to provide better returns to the milk producers to overcome the stress of draught. Our cooperative system stood by their members on one hand and also tried to be more cautious in keeping the consumers prices of milk and milk
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products at the barest minimum. Our cooperatives have therefore been successful in enhancing trust amongst its members as well as consumers during such difficult time. We are sure that with these measures and near normal monsoon during the next year, would lead to major increase in milk production as well as procurement. The current drought can be mainly attributed to the phenomenon of world-wide climate change. Developed nations in their quest for industrialisation, have perpetrated unhealthy levels of carbon emissions in the atmosphere. Developing nations including India have also joined the league. While every nation has a right of economic development, the current carbon emissions are not desirable and must be immediately brought down in order to provide a better tomorrow to our future generations. Our dairy cooperatives have initiated various activities to tackle this challenge prominent being; Tree Plantation Programme for afforestation, installation of Bio-gas plants for curbing methane emissions, installation of solar power packs at village level, adoption of energy efficient methods for milk processing and distribution, etc. While the previous year led to the world-wide economic recession, the year in retrospect was more of a global effort to overcome from the recession and all major economies announcing stimulus packages to provide necessary momentum to the economies. All these measures have restricted the fall in growth rates of developed nations, large-scale Government spending and cut in taxes have led to huge sovereign debts and many countries especially in Western Europe are battling to address this issue. In case of India however, the effect of economic recession was lower due to the inherent nature of the domestic consumption led growth story of the economy. Further, the slew of stimulus measures announced by the Government has provided necessary
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momentum to the economy and the economy is again geared to achieve double-digit growth in the coming years. Apart from the tax breaks provided to various Industries in form of stimulus package, the economy also got a boost from the increase in Government spending, which had a cascading effect leading to higher consumption. Further, increase in procurement prices [minimum support price for agriculture products] along with implementation of various Government schemes for rural development and loan waiver for farmers, which was introduced in the last Union Budget; have contributed to a rise in rural demand. The increase in rural purchasing power is reflected in rural growth across a number of categories. With increasing disposable incomes in urban as well as rural areas, there has also been significant shift in the food habits with a bias towards more value-added food products. This has led to higher demand for milk and milk products. At the same time, due to draught and resultant decline in agricultural production, significant demand-supply mismatch was evident during the last year. As a result, food prices have jumped and there has been considerable increase in the prices of almost all major agricultural commodities including fruits and vegetables and even the headline food inflation touched 20% over the last year. This has also resulted in steep price increase of all the cattle-feed ingredients such as; prices of de-oiled rice bran which constitutes 25-35% of cattle-feed have increased from Rs. 3483/MT in 2005-06 to Rs. 6380/MT in 2009-10 (83% increase), prices of molasses which constitutes 10-12% of cattle-feed have increased from Rs. 3546/MT in 2005-06 to Rs. 8448/MT in 2009-10 (138% increase), prices of Rapeseed extraction which constitutes 10-12% of cattle-feed have increased from Rs.
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5141/MT in 2005-06 to Rs. 11781/MT in 2009-10 (131% increase), prices of Rice Polish which constitutes 10-12% of cattle-feed have increased from Rs. 5612/MT in 2005-06 to Rs. 9630/MT in 2009-10 (72% increase), prices of Jowar which constitutes 10-12% of cattle-feed have increased from Rs. 5918/MT in 2005-06 to Rs. 9157/MT in 2009-10 (55% increase). The price rise in these raw materials has been particularly severe in the last year with prices increasing in the range of 25-35%. This has put tremendous cost burden on the milk producers. Further Molasses, which being a by-product of Sugar, has seen significant price increase in recent past. Apart from these high prices, Molasses attracts Excise Duty and VAT at the highest rate. Thus, total tax burden on Molasses is around 30% of its basic cost and there is no special consideration in taxes for Molasses used in manufacture of cattle-feed. Therefore, the average price of cattle-feed charged by our dairy cooperatives has increased from Rs. 6600 per MT in April 2008 to Rs. 10000 per MT in March 2010, an increase of above 50%. However, our dairies are not charging the actual cost of manufacturing cattle-feed and are subsidizing it for the milk producer members. This has put pressure on the viability of cattle-feed plants. It is ironic that at this juncture India is exporting nutrition in large quantity in form of de-oiled cakes, which is rich in crude protein. The escalation in feed cost leads to increase in production cost of milk and contributes to inflation in the consumer prices of milk. Hence, India should discourage export of de-oiled cakes. This will boost availability of nutrition in the country. All the above factors have led to increase in cost of production for milk and milk products. Since dairy farmers are also consumers of these
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agricultural commodities, such high level of food inflation affects their livelihood and they need to be compensated for the same. Therefore, your Federation has been forced to increase the prices of its products. However, the price increase affected by us is quite lower as compared to above increase in input cost. While the Government is contemplating introduction of uniform Goods & Service Tax (GST) across the country, we would like to highlight that many dairy products like Baby Milk Food, Butter, Ghee, Cheese, Icecream, etc. are now-a-days products of mass consumption. Dairy cooperatives provide these products at very reasonable rates to the consumers of India. This has led to affordability for the common man to include these products in her daily consumption. However, these products are classified under the category of 12.5% VAT in the most of the States. In the interest of consumers from all sections of society, we firmly believe that if VAT rates applicable to dairy products are reduced to the minimum rate of 4%, it would increase consumer demand, boost milk products consumption and improve their health by way of better nutrition. It has been observed that there is a general lack of recognition of cooperatives as economic institutions both amongst the policy makers and public at large. It is therefore necessary to consider the importance of a progressive and enabling legislation, which provides a level playing field for cooperatives with other corporate entities. As per the directives of the Central Government, the Reserve Bank of India focuses on the priority sector for its lending as those sectors that impact large sections of the populations, the weaker sections and sectors which are employment intensive. However, when it comes to disbursement of short term and long
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term loans for dairy cooperatives, our activities are not treated as priority sector category for direct finance to agriculture. The entire finances to District Unions and State Federation of Cooperative Dairies should be treated as direct finances to farmers, covered under priority sector lending norms as these organisations have been created under three-tier Amul Pattern, for the betterment of rural farmers and are nothing but the forward integration of farmers for better price-realisation. Similarly, the agricultural income of farmers is exempted from the purview of Income tax. Income earned from the dairy business is nothing but the part of agricultural as animal husbandry is supplementary to agriculture. However, currently, Milk Cooperatives are taxable in the highest Income Tax bracket of 30% + cess. About 15 years ago, tax on the cooperatives was always lower than the corporate rates and same difference be maintained as dairy cooperatives are primarily engaged in the activity of removal of rural poverty and economic development of farmers in the country. Milk is the largest agriculture commodity in the country with its production estimated at 110 Million MTs during the previous year and its revenues expected to be around Rs. 2.2 lakh crores in value terms. Further, milk today touches the lives of millions of rural milk producers, especially women engaged primarily in this vocation. All across the world, governments keep buffer stocks of milk powders, butter, etc. in order to support the milk producers on one hand and to check undue price fluctuations on the other hand. These systems of buffer stock mechanism for milk products are very well established in US and European countries. In case of India too, similar systems exists for other agricultural commodities like wheat, rice, etc. A mechanism of buffer stocking of
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milk products is also required in India in order to provide cushion to milk producers as well as consumers. After entering a slump during the previous year, international dairy product prices has been rising rapidly in recent months, sparking speculation about a repeat of the large price spike that took markets by surprise three years earlier. All dairy products are showing signs of strong recovery with the largest increase been displayed by butter, the price of which has doubled over the year. However, prices for both skimmed milk and whole milk powder have also increased by over 90 per cent. The economic recovery underway in major countries may be an important factor in renewed import demand. The sustainability of the rise in prices is uncertain, though contingent on the responses of the European Union and other exporting countries which hold dairy product stocks. On the domestic front however, dairy farmers now face a real squeeze from both the fronts; higher cost of production and threat of subsidised imports flooding our dairy markets. When International prices of milk commodities increased to unprecedented levels during 2007, Government banned exports of these commodities, which has later been revoked while withdrawing the export incentives provided on exports of these commodities, thus effectively closing the door on exports of milk commodities and not providing the dairy farmers an opportunity to reap higher rates. Now in order to contain high inflation of food products in the country, Government has completely removed import duty on 30000 MT milk powder and 15000 MT of Butteroil / Butter with effect from March 2010. This will jeopardise the returns of milk producers of the country while allowing developed nations to dump their excess commodities backed by heavy subsidies.
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It is important to note that milk and milk products forms the largest share of expenditure on food item in a consumer basket and hence the rise in milk prices affect common man of India the most. Thus, in todays critical situation affecting every citizen of the country, Government urgently needs to act and protect dairy farmers of India by supporting them. We had represented to the Government in form of a memorandum submitted to the Hon. Prime Minister way back on 31st August, 2009. Further, dairy cooperative leaders of the country also had a meeting with the Hon. Prime Minister on 31st March, 2010 and discussed the following issues: 1. Amendment in the Cooperative Act. 2. Reduction in Income Tax on Dairy Cooperatives 3. Increase in prices of cattle-feed raw material and corrective actions required thereof. 4. VAT on all value-added Dairy products to be fixed at minimum rate of 4%. 5. Removal of VAT & Excise Duty on use of Molasses in cattle-feed. 6. Restrict imports of Skimmed Milk Powder and Butter Oil. 7. Classification of Advances to dairy co-operatives under Priority Sector Lending. However, till date dairy cooperatives have not received any reprieve on any of the above issues. Food security is of paramount concern for every nation. A comprehensive strategy for food and nutrition security in the country is required in order to move towards the goal of universal food security. Food security involves every individual gaining physical, economic, social and environmental access to a balanced diet. With more than 65% of the
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Indian population residing in rural areas and rural economy being centred on agriculture, the real impact of this years drought is immense. While the share of agriculture in GDP of the country is reducing with each passing year, it is pertinent to note that the economic growth achieved by the country has to be inclusive. With rural folks too, sharing the fruits of this development. The three-tier Amul pattern provides the right mix of rural employment on one hand while providing nutrition to the masses on the other hand. The need is to recognise the power of this movement, which has been tested over last six decades and provide due importance for strengthening the same. I now present to you, our Federations Annual Report and the Audited Accounts for the year 2009-10.

MILK PROCUREMENT
Total milk procurement by our Member Unions during the year 2009-10 averaged 93.02 lakh kilograms (9.30 million kgs) per day representing a growth of 6.68% over 87.19 lakh kgs (8.7 million kgs) per day achieved during the year 2008-09. The highest procurement as usual was recorded during January, 2010 at 122.5 lakh kgs per day.

SALES
During the year, sales of our Federation registered a quantum growth of 19.3% to reach Rs. 8005.36 crores (Rs. 80 billion). Last year, our turnover was Rs. 6711.31 crores (Rs. 67.11 billion). This is an extremely impressive growth when viewed from the perspective of draught effect and resultant drop in milk procurement as well as 27.7% growth that we achieved in the year 2008-09. Our Federation has justified its undisputed leadership in milk business by achieving sales growth in pouch milk
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category by more than 21% and achieving average sales volume of 38.30 LLPD (lakh litres per day). The Sales growth in value terms is 32% from existing markets only. We have achieved number one status in pouch milk sales in Delhi this year. With this achievement, Amul Milk has emerged as the largest selling brand of milk in all major metro markets of Delhi, Mumbai, Kolkata and Ahmedabad. Our Masti Dahi sales grew at an impressive rate of 46%. Ice-cream sales registered a value growth of 22%. Amul Cheese sales increased by 20%. UHT milk also grew strongly at 14% along with Fresh Cream registering 39% growth. Our beverage sales grew by 23% and our chocolate sales also registered an encouraging growth of 30%. RETAILING Our Federation has created 5000 Amul preferred outlets which exclusively sell wide range of Amul products. 2000 of these parlours have been added during the current year which speaks volumes about the quantum of scale and speed with which the expansion has been dealt with. It is unthinkable for any competitors to create such massive network of exclusive outlets. This has been possible due to strong brand equity, consumer pull and relentless efforts on part of our entire sales organisation which includes our wholesale dealers. These parlours have not only enhanced the Amul brand visibility but also are giving an easy access to millions of discerning consumers to our unmatched range of existing products and new products which we launch on regular basis. Moreover, these parlours have increased the efficiency in distribution by reducing the distribution costs significantly. The Retailing business alone fetched a turnover of Rs. 300 crores during the current financial year which is approximately 4% of the Federations total turnover.
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EXPORT We have been able to maintain and strengthen our presence in consumer pack export markets. This year too we have crossed a mark of Rs. 100 crores in foreign exchange earnings. We have been able to achieve this figure for the 5th time by now. You will be pleased to learn that during the year we have been able to expand our reach to New Zealand with exports of Paneer, Shrikhand, Butter, etc. We have also started export of our Cheese and Butter to Sri Lankan market. Our traditional market of Middle East and Far East are doing very well especially in newer products like Paneer as well as in case of established products like ghee, butter, etc.

DISTRIBUTION NETWORK
Amul range of products continues to penetrate deeper and deeper across the country simultaneously through our four distribution highways created with specialist distributors handling ambient milk products, chilled milk products, fresh milk products and frozen products. This unique combination of managing distribution highways has always been our huge competitive advantage. Distributors are considered to be Marketing Managers of Federation in true sense. To develop Self Leadership amongst each individual distributor, a major initiative called SLDP (Self Leadership Development Programme) has been implemented since last year. Distributors along with their stake-holders undergo a Vision Mission Strategy (VMS) workshop at their level which would eventually integrate each of them in the process of organisations strategic planning and enable them to manage their own business efficiently by meeting the challenges of competitive environment. In the process, Distributor prepares his Mission statement and business plan for next few years. To
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get exposure to our network of cooperative Institutions, we organise Amul Yatra for our channel partners. Distributors and major retailers from across the country come to Anand in Amul Yatra programme. So far more than 7700 distributors and other channel partners have visited Anand in Amul Yatra. This year too the initiative continued with inclusion of more distributors and retailers.

MISSION 2020 In the last years report, I had shared with you our perspective plan for the year 2020 for our member unions envisaging a capital investment of Rs. 2600 crores (Rs. 26 billion) and a projected group sales turnover of Rs. 27000 crores (Rs. 270 billion). I am glad to inform you that all of our dairies have started activities to achieve the planned targets. It may be noted that Kaira Union has commissioned a state-of-the-art Paneer Plant and also a whey drying plant. Our Sabarkantha Union too is in process of commissioning a similar Paneer Plant. Our Mehsana Union has expanded capacity to 9.61 lakh litres per day at its dairy at Manesar near Delhi. Banaskantha Union too has embarked on installing new powder plant and cattle-feed plant which shall be commissioned soon. New cattle-feed plants are being put up by Mehsana and Valsad Unions as well. SUSTAINABLE ECOLOGICAL DEVELOPMENT GREEN AMUL GREEN INDIA CAMPAIGN Dairy farming like agriculture is dependent on nature. It draws resource from the nature and needs natures support for its growth and
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development. Generally agriculture and dairying go hand in hand and are mutually beneficial activities in India. Over the years, due to intensive agriculture and deforestation, various natural resources have been depleted in Gujarat. We, therefore, gave a serious thought in this direction and discovered a novel idea for giving back to nature. The idea was Tree Plantation by milk producer members of Dairy Cooperatives on every Independence day. The idea was put in to the practice first time in the year 2007. Immaculate planning was done to execute the idea of One member One tree plantation. On the day of plantation, after the flag hoisting ceremony, each milk producer member took an oath to plant a sapling and ensure that it grew in to a tree. The milk producers planted sapling on their own at their identified locations like their farm, near their home, on farm bunds, etc. and thus in Gujarat, they planted 18.9 lakh trees across 19 districts of Gujarat on our 60th Independence day, 15th August, 2007. This was just the beginning. Enthused by the success of the campaign, Milk Producers of Gujarat decided that every year they shall celebrate 15th August (Independence Day) as a Go Green Revolution Day by Tree Plantation to Protect Mother Earth from Pollution, Climate Change and Global Warming. On 15th August, 2008, a more ambitious target was planned and we planted around 52.74 lakh tree saplings on One member, Three tree basis across 21 districts of Gujarat. In 2009, the third year of the programme, we took up an ambitious plan to plant one crore trees on One member, Five tree basis and successfully planted around 84.04 lakhs tree saplings across Gujarat despite acute rain shortage. During last three years, our members have planted more than 155.6 lakh trees and demonstrated their commitment towards preserving and contributing to
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improvement of the environment. For this activity, we have received Good Green Governance award from Srishti for three consecutive years during 2007, 2008 and 2009. It is heartening to note that the International Dairy Federation has awarded the Amul Green movement the best environment initiative in the sustainability category at the 4th Global Dairy Conference held at Salzburg Congress Centre, Austria on 28th April, 2010. I would like to dedicate this award to all our milk producer members and the respective team of our committed employees in our unions since this will now inspire all milk producers across the world. I am sure all of us will continue to work harder to achieve more milestones in future. CO-OPERATIVE DEVELOPMENT During the year, Junagadh and Kutch Milk Unions have become nominal members of GCMMF. Along with nominal membership of Amreli and Bhavnagar Milk Unions, the Federations reach to milk producers has been extended to 24 out of 26 districts of Gujarat. During the last ten years, our Member Unions are implementing Internal Consultant Development (ICD) intervention for developing self leadership among member producers and thereby enabling them to manage their dairy business efficiently leading to their overall development. During the year, Member Unions continued to implement the module on Vision Mission Strategy (VMS) for primary milk producer members and Village Dairy Cooperatives. Facilitated by specially trained consultants, 736 Village Dairy Cooperative Societies (VDCS) have conducted their Vision Mission Strategy Workshops, prepared their Mission Statements and Business Plans for next five years. Till date, 6508 VDCS have prepared
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their mission statement and Business plan under the initiative. During the year, 5173 VDCS have also reviewed their business plan under annual revisit of VMS and have prepared action plan for next year to propel the momentum gained through VMS. During the year three member unions namely Rajkot, Bharuch and Gandhinagar have initiated VMS programme in their VDCS. The core group have trained 145 consultants of these Unions for expanding the reach of the initiative. In order to strengthen knowledge and skill base of young girls and women of the villages about milk production management, our Federation with technical collaboration and resources of Anand Agriculture University, has initiated Mahila Pashupalan Talim Karyakram for women resource persons of the member unions and during the year, 739 women resource person have been trained under this programme. For strengthening infrastructure for quality and clean milk production, our member unions have identified 4000 potential VDCS for installation of Bulk Milk Coolers (BMC) and till date, 1806 BMC have already been installed. Continuing the cleanliness drive at village level, till March 2010, member unions have implemented cleanliness module at 9507 VDCS. To enhance the level of cleanliness this year 7735 VDCS celebrated Red Tag Day on Gandhi Jayanti - 2nd October and the Unions also awarded best performing VDCS. Considering a long term vision to improve the productivity of animals and to reduce infertile animal from their milkshed; our Board decided to implement Fertility Improvement Programme (FIP) from year 2007-08. The concept of FIP is an integrated one, addressing the aspects of animal nutrition, breeding and health in a holistic manner and thereby converting a non-productive animal into productive asset. To implement FIP, milk unions have deployed 44 FIP teams of veterinary consultants and they are
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working in 974 villages. During last three years, they have registered 2.32 lakhs non-productive milch cattles and buffaloes under FIP and out of this, 1.14 lakh milch animals have been made productive. FIP is being monitored through a dedicated system on www.amul.org.in Encouraged by the success of FIP, it has been decided to implement a more comprehensive Productivity Enhancement Programme from the year 2010-11 to improve the productivity of milch animals. In collaboration with Institute of Rural Management, a year-long Certificate Programme in Dairy Management (CPDM) has been evolved. The basic objective of the programme is to create a pool of talented managers in order to meet the future manpower requirement of the member unions. Till date, two CPDM programme have been conducted and 39 candidates have been trained for member unions and Mother Dairy, Gandhinagar. INFORMATION TECHNOLOGY INTEGRATION We are glad to inform that in order to stay technologically advanced, simplify business operations across the supply chain and strengthen the linkages between GCMMF and its member unions; your Federation is implementing a common Enterprise Resource Planning (ERP) solution across GCMMF and its member unions. The ERP solution is expected to bring the entire supply chain on a single common platform and improve efficiency. As a first step, your Federation has set up a centralized state-of-the-art data center for its entire IT operations at Anand. We have further advanced our Information Technology solutions by integrating Milk Marketing Depots and Milk Plants on a common communication backbone to strengthen and automate the Milk marketing

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operations. We have also extended customized ERP solution to all our warehouses for improve the distribution process.

ACKNOWLEDGEMENTS Before closing, I would like to thank all those who have helped to make our Federations operations successful. We are grateful to the Government of India for the immense support received on numerous occasions. We are also thankful to the Government of Gujarat for all the help and cooperation, extended to our organisation. National Cooperative Dairy Federation of India had been providing us with invaluable support in coordination with other agencies and organisations. National Dairy Development Board had played a role in our growth and development. I am very grateful to them. Institute of Rural Management, Anand, as always, has contributed to the perspective building and professionalization of the management of the cooperative sector. We express deep gratitude for its support. We are indebted to Vidya Dairy for having organised training programmes on dairy technology for our employees. We are also grateful to SMC College of Dairy Science, Anand and National Dairy Research Institute, Karnal for strengthening the dairy cooperative sector, by providing technically skilled manpower. We express our sincere thanks to the College of Veterinary Science and Animal Husbandry, Anand. Our advertising
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agencies, bankers, insurers, management consultants, suppliers and transport contractors have been of great help to us in managing our growth and are our partners in success. We acknowledge their contributions and commit ourselves to continue and strengthen this fruitful alliance in all times to come. The Indian Railways has played a crucial role in the growth of our dairy cooperatives since inception. We thank them for their continuous support. We depend on the efficiency of our WC&F agents, distributors, retailers and most important of all, the patronage of our consumers, who have come to regard our brands as synonymous with quality and value. While thanking them for their support, we assure them that we shall strive endlessly to delight them. Our Member Unions are our strength. We thank them for their guidance, support and cooperation without which we would not exist. Lastly, we thank the officers and staff of our Federation for their continued perseverance, loyalty and unflinching efforts devoted to our cause.

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ANNEXURE- 2
SOME ARTICLES RELATED WITH AMUL Amul Help during Flood, by donates 6 Lac packs of Tetra Pack Milk for the Flood Victims Gujarat had never witnessed such fury of the rains. It rained relentlessly for about a week throwing life out of gear completely in central Gujarat, including the Milk Capital of India - Anand. There was knee-deep to neck deep water in most parts of the town. With communication links snapped, no electricity and ironically no drinking water, Anand remained practically cut off for a few days. The citizens of the milk capital of India braved it all. They were united in their misery and lent a helping hand to those who were worse off than them. From Sunday with the rain gods relenting, things started improving slowly. Life is slowly limping back to normal though even today some parts of the town are inundated and still without power. Schools are slowly reopening, trickle of vegetables are coming to the market and road links have slowly been restored though trains links between Vadodara and Ahmedabad still remains cut off. The people of Anand once again showed their grit and determination to face any odd and emerge triumphant.As in earlier occasions, the Gujarat Cooperative Milk Marketing Federation
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Ltd. has once again come to the aid of the victims of the worst ever floods in Gujarat. It will supply 6 lac packs of Amul Milk in 200 ml tetra pack for the flood relief operations. The approximate cost of the milk would come to Rs. 28.00 lacs. The milk will be supplied as a contribution to the Chief Minister's Relief Fund.This follows the discussions Shri B.M. Vyas, Managing Director, GCMMF had with Shri Bhupendrasinh Chudasama, Minister of Agriculture & Cooperation, Govt. of Gujarat regarding the need to provide safe milk for distribution in the flood affected areas of Gujarat when the minister visited Anand on Monday.

Marginal drop in Milk Procurement

In spite of the unprecedented floods in Gujarat, milk procurement by the Member Unions of Gujarat had shown only a marginal decline of 7% last week. However, with an improvement in the situation, milk procurement is slowly expected to return to normal.. On an average the milk procurement was about 51 lakh liters per day. Milk procurement in Baroda & Kaira Unions has been affected more than the other Unions. The priority now is to supply milk rather than go in for products whose stocks are available across the country.The resilience of the farmer members was demonstrated when Members from many Societies who were not able to deliver milk in their Village Society due to floods, came all the way to Amul Dairy in tractors and unloaded the milk themselves.

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Amul Focuses on Ice-Cream; Eyes 17% Growth to Rs 3,200 Crore

Mohini Bhatnagar
Anand: Gujarat Cooperative Milk Marketing Federation (GCMMF), one of India's greatest success stories with its Amul brand, is now aiming at a 17-per cent growth in sales to Rs 3,200 crore this fiscal against sales of Rs 2,746 crore in the previous year ended 31 March 2003.The federation is expecting each of its products to contribute higher sales this year as new products are being added to each product line.The big hope is not surprisingly the Amul brand of ice-creams, which is expected to contribute Rs 250 crore to the turnover, up from Rs 150 crore last year. Says GCMMF managing director B M Vyas: "Last year we saw a good growth in ice-cream, cheese, butter and ghee. We are planning to launch new products in almost every line that we are in, with specific stress on ice-creams."For its ice-cream and milk business, GCMMF has begun investing in increasing its milk capacity. It recently firmed up plans to invest Rs 100-120 crore to expand this from 1.1 million litres a day to 1.8 million litre a day at its Gandhinagar factory. The investment will take place over the next two years.The cooperative is also planning to expand its production facilities beyond Gujarat to service other regions in India. GCMMF recently bought an ice-cream manufacturing unit in Nagpur and is installing a dairy unit alongside. Through this unit, the organization has also extended its milk supply to over 10 cities spread over Rajasthan, Madhya Pradesh and Maharashtra.

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Amul is now focusing on its supply system. Efforts are on to ensure greater availability of Amul ice-cream at pushcarts and small outlets. The company feels that availability is the most important factor in ice cream sales. Thus, Amul ice-cream can be found in 'just around the corner shops,' local STD booths, local kirana shops, chemists and bakers, who stock the ice-cream in deep freezers.The idea is to ensure visibility and availability, which more often than not ensures a sale as ice-cream consumed out of home is most often an impulsive purchase. For ensuring a presence in southern India, the cooperative has tie-ups with various state marketing federations in that region. For production of ice-creams it is considering expanding the agreements with other state-cooperatives as well.Amul expects to clock sales of 34 million litres during the current year and the accent will be on offering 'value for money' products. The new ice-creams to be launched from Amul this year include a mega-bite almond cone (the largest volume cone in the country), an orange icecream (Santra Mantra), a Bouncer ice-cream with nuts and essential proteins, vitamins and minerals for the growing children, a cheese icecream and a sundae in cone for kids in different variants. Both Amul and Hindustan Lever's (HLL) Kwality Walls claim to be the largest selling ice-cream brands in India. While HLL quotes a market research study by AC Nielson, which puts Kwality Walls at the No 1 spot, an independent study by Ahmedabad-based Consumer Education and Research Society (CERS) ranks Amul as No 1, followed by Kwality Walls (among four brands including Vadilal and four loose samples) on various parameters of taste, melting quality, weight, fat and sugar content. Amul ice-cream is positioned as 'real ice-cream' made from real milk cream, while HLL's Kwality Walls is made from vegetable oil and its items are dubbed as
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Frozen Deserts. Last year, Amul ice-cream made its entry into New Delhi, India's biggest ice-cream market, where its anti-compete agreement with Mother Dairy has expired. Amul has been outracing its entire ice-cream requirement for the northern market (including Delhi) from its own Gandhinagar plant.

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Americans to get a taste of India

Amul makes it to the shelves of Wal-Mart, the largest US retailer

The recent news that Gujarat Cooperative Milk Marketing Federation had signed an agreement with Wal-Mart to stock its shelves with products under its Amul brand name is proof that the 'the taste of India' has finally arrived. But this is not the first time that Amul will be stepping foot on US soil. Amul has been in the US since 1998 through Kanan Dairy, which markets Amul processed cheese, pure ghee, Shrikhand, Nutramul, Amul's Mithaee Gulab Jamuns to more than 1,000 ethnic Indian grocery stores in the US through a network of seven distributors.

And this may just be the right time to go full-fledged into the US market via discount stores like Wal-Mart. Dairy prices milk, yogurt, ice cream, cheese are at record highs primarily due to lower dairy cattle and high gasoline prices in the milk trucking industry. Mozzarella cheese
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prices have been increasing in the past one year. And mozzarella cheese is an important part of Amul's product portfolio. Amul decided to go up the food chain and into the mini-pizza market in India only to proliferate the consumption of mozzarella cheese, thus giving Britannia a run for its money in the cheese market.Now, since milk is an integral part of the American diet, consumption levels will be almost maintained. But, consumers may seek out low-priced stores like Wal-Mart not only for milk but other dairy products as well. This will work to the advantage of Amul.While the potential is enormous, the key to Amul's success will be its ability to localize. For instance, when big MNCs came looking to capture a slice of the pie of the growing emerging markets, they decided to customize their offerings. Like McDonald's introduction of Aloo Tikki, in deference to the Indian palate or when Pepsi coined the Yeh Dil Maange More tag-line in India. Amul will have to customize its products and look outside the ethnic box to suit the American and other ethnic palates. It simply cannot use its home-ground strategies in the US and expect to make a mark, even if Wal-Mart plans to push the brand only in stores and only in states like New York and New Jersey, where the Indian community is very strong.

Still, with more than 50 per cent of Americans being medically obese, and if Amul is really looking to capture the hearts of the second- and third-

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generation Indians, offering low-fat versions of its brands, would make a lot of commercial sense. And baiting the two-million strong Indian community with an estimated disposable income of more than $88 billion with ethnic products like Amul Mithai makes commercial sense for the $257-billion Wal-Mart. As such riding piggyback on chain stores like Wal-Mart, which has 3,200 stores in the US and another 1,000 internationally, augurs well for Amul. Amul can be a potentially strong brand in the US. There is certainly evidence of foreign brands capturing a large part of the domestic market. It has happened in India a classic case being Unilever, which adapted and created products to suit the needs of the Indian population. It has happened in the US, when Japanese automakers flooded the US car market with cheap cars. And, it can happen with Amul in the US dairy market. While Amul wants to focus only on the Indian market for the moment and is just 'testing' the foreign waters, it has already travelled to India's neighbouring countries, Singapore and Hong Kong. And it will now be available in Dubai and other Middle Eastern countries as well. Amul's export strategy seems to be paying off. In fiscal 2003-04, Amul's innovative marketing strategies achieved around a 20 per cent increase in sales to Rs2,893 crore, including export revenue of Rs50 crore. Amul has come a long way from 1946 when it collected only 247 litres of milk a day to the six million litres of milk per day it now collects from about 10,675 separate village co-operative societies throughout Gujarat. With access to low cost milk, an innovative and almost 'just-in-time' supply chain, a ready market among the Indian community and 50 years of understanding milk, Amul can definitely build the 'taste of India' in the US. The only question is when?
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Amul "Utterly Delicious" Parlors

Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlors created in major cities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat. Amul has plans to create a large chain of such outlets to be managed by franchisees throughout the country. We have created Amul Parlors at some prominent locations in the country, which are run by the company or its wholesale dealers: 1. Delhi Metro Rail Corporation 2. Indian Space Research Organization 3. The Somnath Temple 4. National Institute of Design 5. Infosys Technologies in Bangalore, Mysore & Pune
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6. Wipro campus in Bangalore 7. Ahmadabad Municipal Corporation 8. Surat Municipal Corporation 9. Delhi Police 10.Gujarat State Road Transport Corporation "Amul Utterly Delicious" parlors are an excellent business opportunity for investors, shopkeepers and organizations. In order to come closer to the customer, we have decided to create a model for retail outlets, which would be known as "Amul Preferred Outlets"(APO).

1. The criteria for selection of APOs would be

a. Visibility - How prominent is the location of your shop? b. Shop area: 100 - 300 sq. ft. c. Good Business potential d. Exclusive Amul outlet - no other products e. Willingness to sell the entire range of Amul Products f. Creditworthiness and past business experience 2.

On your inquiry - our Field force would visit your site. He/She would
fill the APO proposal form with your passport size photograph. You would require:

a. Shops and Establishment license b. Layout of the shop and frontage - The layout of the shop designed by a local architect/local contractor. c. 2 Passport size photographs
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3. Renovation Work of the Shop to give it a standard look - would be done to meet the design and specifications at your cost. The cost of renovation of a typical shop would normally be between Rs. 60,000 to Rs. 1 lac. 4. Branding- The APOs would be branded as "Amul Utterly Delicious". The cost of the signage fabrication and installation would be borne by GCMMF office operating in your region. 5. Equipment- You would require the following equipment: a. 1or 2 deep freezers can be purchased through Hamara Apna Deep Freezer Scheme b. 1 Refrigerator through Hamara Apna Refrigerator Scheme c. 1 pizza oven d. 1 Chest Milk Cooler for Pouch Milk 6. Security Deposit- You would be required to furnish an interest free refundable security deposit of Rs. 25,000 to us. An amount of Rs. 5000/would be deducted towards refurbishing the signage, in the event of closure of APO before 3-year of operation. 7. Supplies- The delivery of products would be done through our wholesale dealers 8. We feel that the shop has good potential, and needs support in the initial days, we can offer additional margins up to maximum of 1% on dairy products and 2% on Ice cream. The additional margin shall be target based and shall be given in kind. The support at best would be given only for he first year of business. 9. Agreement- An agreement bringing us together would be signed.
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Amul Enters Delhi Ice Cream Market In 'Co-Operative Competition ' With Mother Dairy NEW DELHI, April 25
THE Gujarat Cooperative Milk Marketing Federation (GCMMF or Amul) has launched its ice cream in Delhi, setting the stage for a three-cornered tussle with Kwality Walls and Mother Dairy for the country's largest market for ice creams. Delhi currently accounts for around 18 per cent of the country's estimated Rs 525 crore organized ice cream market of 80.8 million litres. It also boasts of a per capita annual ice cream consumption of 1.45 litres, as against the national average of 0.25 litres. The Delhi market is currently dominated by Hindustan Lever Ltd's (HLL) Kwality Walls and Mother Dairy, which is a brand of Amul's sister cooperative concern, National Dairy Development Board (NDDB). Both Kwality Walls and Mother Dairy now sell 6.5-7 million litres each of ice creams in Delhi. "As a third entrant, we hope to capture 25 per cent of the market in two years' time. And this will come not at the expense of Mother Dairy, but Kwality Walls," said Mr Vipul Mittal, Manager (Sales), GCMMF. Amul has priced its ice cream at Rs 65 for a 1,250 ml Vanilla brick, which is what Kwality Walls and Mother Dairy are charging for a similar pack of 750 ml and 1,200 ml respectively. Similarly, it is selling a 100 ml Vanilla cup for Rs 10, which is the same as Mother Dairy, whereas Kwality Walls is charging the same for an 80 ml cup. "By ensuring that our prices are more or less the same as that of Mother Dairy, but much lower than that of Kwality Walls, we hope to increase the market share of
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the cooperative sector in the Delhi market," Mr Mittal said. He ruled out the possibility that Amul's `cooperative competition' with Mother Dairy would actually end up in the two cooperatives eating into each other's rather than KwalityWalls' share. Delhi is a market that is expanding by 20 per cent each year. On the other hand, Mother Dairy's plant here has capacity constraints to cater to this expanding market. Our presence would ensure that the incremental market will not accrue to Kwality Walls alone," he added. In fact, Amul, till recently, was using Mother Dairy's facility to manufacture its ice cream for the neighboring markets such as Faridabad, Gurgaon and Ghaziabad. But from now on, Amul will source its entire ice cream requirement (including for Delhi) from its own Gandhinagar plant. Amul claims to have already deployed 1,000-odd deep freezers in the last 15 days in Delhi under its `Hamara Apna Deep Freezer (HADF)' scheme. Under this, retailers are encouraged to buy their own deep freezers for vending ice creams, with Amul negotiating a discounted price on their behalf with refrigeration companies like Blue Star, Voltas and Carrier. This is as against the practice of the ice cream company itself providing the freezer at the retailer's end, subject to the latter depositing a refundable security amount. "In the HADF scheme, the retailer not only saves on the security deposit, but also enjoys the flexibility arising from owning the asset and availing a direct five-year guarantee from the manufacturer. These, together with our negotiating a discounted price on their behalf, entails cost savings of Rs 5,000-8,000 per freezer depending on capacity and make," Mr Mittal said.

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Summer has started unusually early this year. And, as the mercury rises nobody is happier than the ice-cream manufacturers who are already filling their ice-boxes with dollops of new, mouthwatering flavours.Out there in front is the hungry-for-growth Rs 3,500-crore (Rs 35 billion) Anand-based Gujarat Co-operative Milk Marketing Federation which markets the Amul brand of ice-creams.After wooing the masses with its economy range, it has a new cooling strategy this summer and aims to take a bigger scoop from the premium ice-cream segment. Also, it planning to flex its muscles even more and strengthen its distribution clout. More than six months ago, Amul launched its super premium ice -creams -- Amul Utterly Delicious -- in the 100 million litres per annum organized ice -cream market. But with Hindustan Lever's Kwality Wall's forsaking volumes for value, Amul is pitching for another head on battle with the foods and toiletries giant. The new weapons in Amul's armoury are flavours like litchi, anjeer and cheese almonds. "With a premium product, this is like taking the battle into HLL territory," says an icecream maker. it was only a couple of years ago that HLL changed its strategy mix for ice-creams. And in keeping with this strategy, it also began focusing on just the six big metros. With low priced competitors, it was decided that we focus on scooping value share rather than volume
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share," says an HLL manager. What has this done to the market? Amul is the market leader in this frozen category with a 27 per cent share. It is followed by Kwality-Wall's at 8 per cent, Vadilal and Mother Dairy, Delhi at 7 per cent each with Dinshaw and Arun each having a 4 per cent share of the market. The rest of the cone is filled up by regional brands. The ice-cream mix was completely different two years ago with both Amul and Kwality Wall's running almost neck-to-neck. But, Amul's lowpriced offerings were something that HLL couldn't take on for long. And a couple of years ago, HLL abandoned the masses to chase value shares in the Rs 2,000 crore (Rs 20 billion) ice-cream market.Of this, the organized sector which is growing at 20 per cent per annum, accounts for only Rs 200 crore (Rs 2 billion).Now, look at what the strategy change has done to ice- cream volumes for both HLL and Amul over the years. During the last five years, HLL's ice-box was filled with acquisitions. On its icecream shopping spree, it picked up Kwality from the Ghais, Cadbury's Dollop's and Milk Food combined with their very own Wall's brand. Eventually, most of the brands were phased out and Kwality Wall's emerged as the mother brand. In 1997, HLL churned out 24.60 million litres of ice-cream that resulted in sales of Rs 152.63 crore (Rs 1.526 billion). In comparison, Amul's 4 million litre ice-cream box notched up a turnover of Rs 27.40 crore (Rs 274 million). In 2001, while HLL's volumes were stagnant, its sales were marginally up at Rs 156.39 crore (Rs 1.563 billion).In the same period, Amul's Rs 115.01 crore (Rs 1.150 billion) sales were up more than four-fold to touch 17.80 million liters. In calendar 2002, with HLL deciding to concentrate only on the premium segment, its volumes halved to 10 million litres which resulted in sales worth only Rs 107.25 crore (Rs 1.072 billion).Last fiscal, it sold 8.60
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million litres of ice-cream and earned Rs 93 crore (Rs 930 million).During the same time Amul was selling 27 million litres with Rs 160 crore (Rs 1.60 billion) sales. Now look at the other competitors. The National Dairy Development Board's Mother Dairy is available only in the north. Amul entered the Delhi market last year. Vadilal is largely a Gujarat brand while the rest of the players each take a lick off the regional markets. Or take the multinationals. Already, the $600-million Iowabased Wells Dairy Inc-owned Blue Bunny ice-cream launched early this millennium has melted. Distributed and marketed in India by Sno Shack Frozen Foods Pvt Ltd, it pulled out citing reasons like high excise structure and low volumes. Even the Allied Domecq-promoted Baskin Robbins has been in a restructuring mode for the past five years. First it shrunk the size of its outlets, then it slashed prices and finally halved its network. Today a Baskin Robbins outlet has become a rarity.No wonder then, with such casualties Amul is going all out to grab the market. Although Amul is known for its lackluster supplies, it is seeking more visibility. "Now that Amul has achieved critical mass and emerged as a market leader, we are now embarking on increasing consumption," says R S Sodhi, general manager GCMMF.He knows there is enough scope for that even though Indians aren't eating that much ice-cream. "Price has been the main hindrance," says a multinational player.The per capita consumption of ice-creams in India is a paltry 250 ml per annum while the average global consumption is 2 litres. Even countries like Sri Lanka and Pakistan consume much more than India. That's why, like Kwality Wall's, Amul too wants to take its frozen and ambient platter on the road
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through push carts and smaller outlets. It plans to supply freezers to bakeries and chemists to mom-and-pop shops and even STD booths.At the same time, GCMMF is investing around Rs 120 crore (Rs 1.20 billion) over the next two years to expand capacity from 1.1 million litres a day to 1.8 million a day.To build a national presence, GCMMF has bought an ice-cream manufacturing unit in Nagpur. By installing a dairy unit on the premises, it plans to extend its milk supply to states like Maharashtra, Rajasthan and Madhya Pradesh.Then, with the NDDB entering into joint ventures with state co-operatives to market their milk and milk products, GCMMF too is doing the same. There are also new offerings. In the last one year, it introduced the largest volume cone in the country. There's Santra mantra, an orange ice-cream coupled with other low fat and vitamin-packed offerings for children. All this is likely to push up volumes to 34 million litres with value sales almost doubling. Even HLL has been trying hard to create excitement around its brands. Its Kwality Wall's Max, for children, was relaunched with offerings, like Rainbow and Twister, supported by a new look Max lion.The last festive season, it introduced Vanilla Surprise to distinguish from the low-priced commodity vanilla products, and a range of new sundaes.All these offering are no doubt welcome in the sweltering heat. But as a marketing consultant put it: "With everyone on a health binge, it would be challenging for players to increase consumption."Renowned for marketing milk and milk products under the brands of Sagar and Amul, Gujarat Cooperative Milk Marketing Federation (GCMMF), has announced today its Rs. 8005 crores record sales. In the 36th Annual General Meeting of the Federation, the apex body results of the dairy cooperatives in Gujarat were just announced today.GCMMF Chariman
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Parthibhai G. Bhatol, informed, while commenting on the results, that last year, they turnover was Rs 67 billion and their Federation filed a quantum growth of 19.3 percent to accomplish Rs 80 billion or 8005 crores.He said that the Federation justifies its leadership in the milk business by attaining the pouch more than 21% sales growth in pouch milk category and 32% in value terms from existing markets. Theyve reached the number 1 status in New Delhis pouch milk sales this year. And, Amul milk, with this achievement, emerges as the largest selling brand of milk in all major metro markets of Mumbai, Ahmedabad, Delhi and Kolkata.Concerning about Amuls retail experiment, Bhatol said that the Federation has produced 5,000 outlest which exclusively sell huge range of Amul products and 2,000 of those have been added during the recent year that speaks volumes about the scales quantum and speed with which the expansion has been covered with. It is unconceivable for any competitor to produce such substantial network of exclusive outlets. Bhatol commented regarding the exports that theyve been able to keep and toughen their presence in the markets of consumer pack export and also this year, theyve reached Rs 100 core in foreign exchange profits and its the 5th time by now that theyve been able to reach this figure.Shri Bhatol said, about the novel concept of the efforts of the Federation in controlling global warming through tree plantation, that during the 3 years, their members have already planted more than 155 trees and showed their dedication towards contributing and preserving towards the development of the environment. And for this one, theyve received Good Greeen Governance award from Srishti for 3 consecutive eyar already from 2007 until 2009.Amul received the International Dairy Federation Award for the best environmental initiative during the 4th Global Dairy Conference
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which was held last April 28, 2010 at the Salburg Congress Centre, Salsburg, Australia.Parthibhai said that their 29 milk lakh milk producers in more than 14,000 villages, have already planted about one crore sapling

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RESEARCH METHODOLOGY OF THE STUDY sample survey method

a)sample size:-20 b)sample group:-retailer and household

QUESTIONNAIRE SAMPLE FOR HOUSEHOLD AMUL

NAME:. (1) Are you using Amul product (a) Yes (b) no (2) Which product you are using? (a)milk (b)butter (c)ice-cream (d) others ? DATE:

(3) What is your daily consumption of butter? (a) Below 100gm (b)100-200gm (c)more than 200g

(4) Which milk you are using? (a)milk powder (b)liquid milk

(5) What is your daily milk consumption? (a) lit. (b) 1 lit. (c) 2-4 lit. (d) more than 4 lit.

(6) What is your consumption of cheese? (a) Below 100gm. (b)100-200gm.

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(c)more than 200gm.

(7) What is your daily consumption of Ghee? (a) Below 100gm (b)100-200gm (c)more than 200gm

(8) what is your daily consumption of paneer? (a)100gm (b)200-300gm (c)more than 300gm

(9) How much chocolate you are using? (a) Below 100gm (b)100-200gm (c)more than 200gm

(10)How much do you consume fresh cream? (a) Below 100gm (b)100-200gm (c)more than 200gm

(11) Would u like to prefer other brand instead of Amul? (a) yes (b) no (c) may be

(12) What you think about product availability of Amul? (a) 20% (b) 40% (C) 60% (d) more than 80%

SUGGESTION OR COMMENT:

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QUESTIONNAIRE SAMPLE FOR RETAILER Shop no:AMUL

NAME:.
(1) What is your daily selling of butter? (a) Below1kg (b)1-2kg (c)2-4kg (d)more than4kg

DATE:

(2) What is your daily liquid milk selling? (a) Below20-30 lit. (b)30-40 lit. (c)40-50lit. (d)more than 50lit (3) What is your daily powder milk selling? (a) Below 5 kg (b) 5-10kg. (c) 10-15kg. (d) more than15kg.

(4) What is your daily selling of cheese? (a) Below1kgm. (b)1-2kg. (c)2-4kg. (d)more than 4kg.

(5) What is your daily selling of Ghee? (a)1- 2kgm (b)2-4kg (c)4-6kg (d)more than 6kg

(6) What is your daily selling of paneer? (a)2-4kg (b)4-6kg (c)6-8kg

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(d)more than10kg

(7) How much chocolate you are selling on the daily basis? (a) Below100gm (b)100-200gm (c)more than 200gm

(8)what is your daily selling of buttermilk/lassi? (a) Below 2-4lit. (b)4lit.-6lit. (c)6-8lt (d)more than10lit

(9)what is your daily selling of curd? (a)below1kg (b)1-2kg (c)2-3kg (d)more than 3 kg.

(10)what is your daily selling of ice-cream? (a)below 1 kg (b)1-2kg (c)2-3kg (d)more than 3 kg.

SUGGESTION OR COMMENT:

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