INTRODUCTION

AMUL The Taste of India these four word says what common man think of these a mere slogan
but advertising people call this corporate positioning, these words lend meaning to Amuls commitment of
taking quality food products right down from urban-rural man to the common man.

To a Milk Producer A life enriching experience

To a consumer Assurance of having wholesome milk
To a mother A reliable source of nourishment f or her child
To the country Rural Development & Self Reliance

The name of the organization is Kaira District Co-operative Milk Producers Union Limited which is also
known as AMUL Anand Milk Union Limited, is established in 1946. It is a brand managed by cooperative
organization, Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF). AMUL is based in Anand
town of Gujarat and has been sterling example of cooperative organizations success in the long term. All the
laws, provisions, rules and regulation, MOA and AOA are done under Gujarat co-operative society Act 1965.
Amul has made a spurred the white revolution of India, which has made India the largest producer of milk
and milk products in the world. Amul pattern has established itself as a uniquely appropriate model for rural
development. Planners, economists, administrators, dairymen, journalists have been visiting Anand to study
the ingredients of its success.
The Anand pattern is essentially an economic organizational pattern to benefit small producers who join
hands forming an integrated approach in order to economy of large scale business. The adoption of modern
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production and marketing techniques helps in providing those services that small producers individually can
neither afford nor manage. Individual producers have the freedom to decide their own policies. The Anand
pattern succeeded because it gave fair price to the farmer and high quality milk and milk products to the
consumer. In short Anand pattern meant the utilization of resources in the most profitable manner at grassroot level

The unique characteristics of this organization is its three-tier cooperative structure with the dairy
cooperative societies at the village level federated under the milk union at the district level and a federation
of member unions at the state level.

Figure 1.1 Three Tier Structure

1st tier structure- Primary Village Co-Operative Society
An Anand pattern village dairy cooperative society is formed by milk producers. Any producer
can become Dairy Cooperative Society (DCS) member by buying a share and committing to
sell milk only to the society. Each DCS has a milk collection center where members take milk
every day. Each members milk is tested for quality with payments based on the percentage of
fat and SNF. At the end of each year, a position of the DCS profits is used to pay each member
a support bonus based on the quantity of milk poured. This also acts as a vital link for various
productivity enhancement and development programs of farmers.

The 2nd Tier District Union

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A District cooperative Milk Producers Union is owned

by dairy cooperative societies. It is a union of primary
village co-operative societies within a district. The
union buys all the societies milk, then process and
markets fluid milk and products. A District Union also
provides a range of inputs and services to village
cooperative societies and their members: feed
veterinary care, artificial insemination to sustain the
growth of milk production and the cooperatives
business. Union staff train and provide consulting
services to support village cooperative society leaders
and staff.

The 3rd Tier - The State Federation

The co-operation milk producers unions in a state form a
State Federation which is an apex marketing body
responsible for marketing of milk and milk products of
member unions. The Federation also plays a role in the
overall development of the district unions federated to it.
Maximizing farmer profit and productivity through cooperative effort is the hallmark of the Anand pattern
The main functions of the village dairy co.-operative society are as follows:

Collection of surplus milk from the producers of the village and the payment based on quality and

quantity
Providing support services to the members like veterinary first aid ,artificial insemination services,
cattle feed sales, mineral mixtures sales, fodder and fodder seed sales, conducting training o animal

husbandry and dairying

Selling liquid milk for local consumers of the village
Supplying milk to the District Milk Union

CSR Activities
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 Blood Donation
Amul in association with the Indian Red Cross Society aim to
inspire, encourage and initiate humanitarian services to
minimize, alleviate and prevent human suffering at all times to
contribute for Humanity to Peace. Towards this objective
Amul initiated blood donation campaign 1987. Blood donation
camps are organized regularly in rural areas through village
dairy co-operative societies. Similarly camps are organized in
Amul dairy campus where in the employees and their family
members join in donating blood. In addition, Amul organizes
donation of blood on emergency. Amul has made a trend in
donating
blood
to
the
society.

Dairy Demonstration Farm

As a part of Amuls continuous effort to improve the socio-economic condition and livelihood of
dairy farmers, Amul has come out with various schemes to
increase cattle holding per farmer thereby their income.
A Dairy Demonstration Farm (DDF) has been set up to
Mogar to demonstrate scientific methods of dairy farming.
The project envisages encouraging the farmers to use high
yielding animals and modern aids to increase production.
The Union provides technical support to the milk producers on Scientific Animal Husbandry
Practices and also facilities loan payment from the banks 5to the needy by guaranteeing the loan
repayment on behalf of farmers. The Dairy Demonstration Farm is generating overwhelming interest
in milk producer members because of its success and viability.
So far, under various schemes, thousands of farmers are covered to increase the cattle holding size
from small to medium size.

Rural Sanitation Campaign

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Amul Dairy has launched a novel scheme for total rural sanitation and set a target for itself whereby not a
single milk producer will attend to natures call in open. The Dairy with the support of District Rural
Development Agency (DRDA) will provide interest free loans to its milk producers in Anand and Kheda
Districts to set up Pucca toilet blocks, which will not only help women milk producers avoid
embarrassment but will also ensure hygine.
This mission is not just about bringing a cultural change by imbibing good habits among milk producers but
also targeted towards encouraging hygienic practices in the milk supply chain.
Amul has prepared a model of low cost toilet block that costs Rs. 11500 per unit. While DRDA will support
this initiative through subsidy ranging between Rs. 4500 and Rs. 4600 or BPL/APL families. Amul will
provide its member as interest free loan worth Rs. 4300 returnable in four years time. A member can pay up
this loan by getting Rs 100 per month deducted from his/ her bill.

Tree Plantation

In 1946, the unfair trade practises of the middle men brought the farmers of Kaira to unite and fight against
this system which brought Amul into existence. Their relentless effort in improving their socioeconomic
conditions ultimately brought their working as a model for dairy development programme in our country
popularly known as Anand Pattern. Replication of Anand Pattern through Operation Flood programme
helped India to achieve first position in production of milk in the world.
Alarmed by the climate change and global warming and their understanding of that dairy farming like
agriculture is dependent on nature, they took an oath on 15 th August, 2007, after the flag hoisting ceremony,
to plant a sapling and ensure that it grew into a tree. Then individually they planted sapling on their own at
their identified locations like their farm, near their home, on farm bunds, etc. This marked the beginning of a
silent new revolution to bring a green carpet on Gujarat and India.

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In the year 2007, 21,000 saplings were planted by the farmers in Kaira of which 10,000 plants have
survived. In the following year 2008, they planted more than 5,05,000 saplings of which 1,79,000 have
survived. In 2009, third year of their movement, more than 13,51,000 saplings have been planted.
Farmers have also created nurseries to produce saplings and almost 45 such nurseries have been created as of
date. For better coordination and sustainable success, Teams have been formed at various levels.
Inspired by this movement, whole dairy cooperative farmers of Gujarat under Gujarat Cooperative Milk
Marketing Federation Limited (GCMMF) have so far planted 312 lakh saplings.
According to statistics of Forest Survey of India considering on an average 3040 cm diameter of these trees,
106 trees would provide one hectare of green tree cover. Considering 47% survivability of planted trees
(based on post plantation survey data, around 148.12 lakhs out of 311.98 lakhs tree planted survived during
the last five years), when they fully grow up, would provide additional 1,39,735 ha. of green cover which is
additional 6.41% forest cover of Gujarat State of India.
In last five years, milk producers of GCMMF planted around 312 lakhs tree saplings. By doing so, milk
producers of Gujarat Dairy Cooperatives have shown their concern, awareness and commitment for
betterment of environment.
It has been estimated that when one tree is cut, in monetary terms there is loss or Rs. 33 lakhs (Oxygen
worth of Rs. 5.3 lakhs, Land Fertility of Rs. 6.4 lakhs, Rs. 10.5 lakh for reduction of pollution of atmosphere
and Rs. 5.3 lakh towards Flowers / Fruits and habitation to birds animals). But the benefits that accrue to
mankind when a tree is planted cannot be measured in money and is priceless.
When dairy farmers of Gujarat have planted more than 312 lakh trees in just five years and are planning to
plant more trees every year, they are doing an invaluable service to the society as the brand Amul means
price less priceless service to mankind.
In an era of global warming, Amul is contributing its share in making Gujarat lush green. In this way, the
milk producers of Gujarat are ushering in a silent revolution of greening Gujarat.

Amul Scholar

Amul Scholarships: To encourage outstanding children of farmers in pursuing higher studies Amul
introduced scholarship schemes in 1992. The children are given scholarships for pursing Diploma,
Graduation, Post Graduation
and Doctorate. Every year the outstanding children are identified from the villages and scholarships are
provided to fulfil their dream of achieving academic excellence. This effort has motivated greatly children to
excel in their studies and spread education in rural areas.
Amul Scholar Felicitation Programme: Annually Amul felicitate outstanding children of employees who
have secured highest marks in 10th, 12th standards and Gold Medallist in graduation. Amul Scholars
Felicitation Programme was initiated in 2004 and has facilitated many outstanding students of Amul family.

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Amul Vidya Shree & Vidya Bhushan: Amuls vision is to see an educated, talented and strong youth in a
developed India of the future and thereby contribute towards nation building. We at Amul believe that the
sound education of its youth is the foundation of every state. Hence it is the most basic constituent for a
developing nation like ours. Towards this philosophy, Amul Vidyashree & Vidyabhushan Awards have been
instituted to recognize the brilliance of the students across India as well as the quality of education &
guidance imparted by the schools they study in. The inception of these awards dates back to 200405.
The Awards recognize the academic brilliance of Class 10th and 12th top merit rankers across India and the
quality of education and guidance imparted by the schools they study in and thereby encourage the spirit of
enlightenment among todays youth. In the first year of the Award Foundation, Amul honored 500 students
in Gujarat and other parts of India. In the second year it acknowledged further 2267 students across schools
in India. Moving ahead (200607) Amul instituted Amul Vidya Bhushan awards to recognize the toppers of
Std 12th examination also. The pan India details on these Awards are available in the following links.
It is Indias first of its kind award that recognizes and rewards brilliant minds of India. 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, worth emulating by others.
SGSY
Amul in its continued endeavour to improve the
socioeconomic conditions of rural people extended its
expertise in implementation of the Swarnjayanti Gram
Swarozgar Yojana (SGSY) of The Government of India
(Ministry of Rural Development) on their Special Project on
Improving Socioeconomic Conditions of BPL Families of
Kheda District through Animal Husbandry and Dairying
DAIRYING
AS
A
TOOL
FOR
POVERTY
ALLEVIATION.
The Swarnjayanti Gram Swarozagar Yojana is a holistic selfemployment programme for the rural poor of India. The basic objective of the programme is to bring below
poverty line families above poverty line by providing them in generating assets to become self-employed.
The purchase of assets is facilitated through a mix of government subsidy and bank credit.
It is a holistic self-employment programme as it supports all facets of selfemployment like organizing them
into Self Help Groups, helping them in selection of key activities, building their capacities, providing them
appropriate training and exposure, building infrastructure, introducing them to new technology, and
providing them marketing support. The programme is implemented through District Rural Development
Agencies (DRDAs) with active involvement of Panchayati Raj Institutions, banks, line departments of the
Government and development institutions.
Tribhuvandas Foundation

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Tribhuvandas Foundation is an Integrated Rural Health & Development Programme of Amul. Inspired by
the great success of round the clock health care services to the livestock of dairy farmers of Kaira, Shri
Tribhuvandas Patel, the Founder Chairman of Amul felt the need of such a service to the rural populace too
as he could learn and experience the afflictions brought to them by absence of medical services in rural
villages of Kaira. He donated the prize money of his Ramon Magsaysay Award and the fund he received
from kaira farmers on his retirement, for his life time service to them, to set up this Foundation. Dr V. Kurien
also played an active role in this set up. It was registered as a Charitable Trust under the Public Trust Act
1950, on July 1975.
The Foundation derives its uniqueness from the fact that it is a need based programme for villagers and is
run by the Foundation is also actively involved in promoting preventive health practices. It is headquartered
at Anand with sub centres spread over the district Anand and Kheda. The Foundation has a dedicated Team
of Medical Officers, Nurses, Administrative staff, Dais (Traditional Birth Attendants) and Village Health
Workers to provide the following services:
Treatment of common ailments Immunization through vaccination BCG, Triple Vaccine, Polio, Measles,
Tetanus, Anti rabies at subsidised rate Treatment of tuberculosis and anaemia Antenatal, postnatal care,
neonatal and infant care Nutritional rehabilitation centres for undernourished children and vulnerable
mothers Identification of suspected cases of cancer and referrals Education and counselling on reversible
and permanent methods of family planning, health education sessions and referral of critical cases to
secondary and tertiary care centers Building partnership with government for family planning programmes
in rural areas Distribution of contraceptive tablets and condoms through regular camps Laparoscopic TL
and minilab operations, insertion of CopperT (IUD), and Tubectomy Cancer awareness programme,
detection camp and treatment at Shri Krishna Hospital, Karamsad Balwadis (Day Care Centres) for
preschool play and learning activities for children of three to five years.
It also provides continuous training and retraining to Village Health Workers who are chosen from villages
with the help of the Dairy Cooperative Societies. This enables the Village Health Workers to carry out health
education and primary health care from door to door, in groups and at the Dairy Cooperative Societies
Centres with confidence. The training focuses on primary health care, waterborne disease, know your body,
pregnancy and the delivery period, new born care and care of the weak child, growth monitoring, breast
feeding, common disease of childhood, malaria, tuberculosis. Training is also imparted on other topics as the
need arises.

Tribhuvandas Foundation has become one of Asias largest community healthcare service providers covering
more than 700 villages. The Foundation still strives to extend its services to as much villages as possible.
The reasons of choosing AMUL for Organization Attachment Programme are as follows:
Amul is one of the fastest growing industries of India and also it is one of the first successful
cooperative societies and now it is market leader in the dairy sector.
As the products of Amul are FMCG and perishable the supply chain should be accurate thus to know
the management system of Amul, I choose to work as intern in this organization.
As Im the management student, I would like to know the whole system of Amul from head to toe,
thus got an opportunity to gain knowledge from Amul.
To know the three-tier structure of Amul as it is known as the best and unique feature to make Amul
succeed.
To know the financial position of company in details
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 To know the financial performance in the terms of profitability, leverage, liquidity and efficiency.

Page 9 of 69

The organization
History

Over six decades ago the life of a farmer in Kaira was very much like that of farmers anywhere else in India.
His income was derived almost entirely from seasonal crops. Many poor farmers faced starvation during
offseasons. Their income from milch buffaloes was undependable. The milk marketing system was
controlled by contractors and middlemen. As milk is perishable, farmers were compelled to sell their milk
for whatever they were offered. Often they had to sell cream and ghee at a throwaway price.

They were in general illiterate. But they could see that the system under which contractors could buy their
produce at a low price and arrange to sell it at huge profits was just not fair. This became more noticeable
when the Government of Bombay started the Bombay Milk Scheme in 1945. Milk had to be transported 427
kilometers, from Anand to Bombay. This could be done only if milk was pasteurized in Anand.

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After preliminary trials, the Government of Bombay

entered into an agreement with Polsons Limited to
supply milk from Anand to Bombay on a regular
basis. The arrangement

was highly satisfactory to all concerned except the

farmers.

The

Government found it profitable Polsons kept a good

margin.

Milk

contractors took the biggest cut. No one had taken the

trouble to fix the price of milk to be paid to the producers.

Sardar then sent his trusted deputy, Mr. Morarjibhai Desai, to Kaira District to organize milk co-operative
and a milk strike if necessary. Mr. Desai held a meeting in Samarkha village on January 4, 1946. It was
resolved that milk producers co-operative societies should be organized in each village of Kaira District to
collect milk from their member-farmers. All the milk societies would federate into a Union which would
own milk processing facilities. The Government should undertake to buy milk from the Union. If this wasnt
done, the farmers would refuse to sell milk to any milk contractor in Kaira District.
The Government turned down the demand. The farmers called a milk strike. It
lasted 15 days. Not a drop of milk was sold to the milk merchants. No milk
reached Bombay from Anand, and the Bombay Milk Scheme almost collapsed.
After 15 days the milk commissioner of Bombay, an Englishman, and his deputy
visited Anand, assessed the situation and accepted the farmers demand.

This marked the beginning of the Kaira District Cooperative Milk Producers
Union Limited, Anand. It was formally registered on December 14, 1946. Its
objective was to provide proper marketing facilities for the milk producers of the
district. The Union began pasteurizingmilk in June 1948, for the Bombay Milk
Scheme just a handful of farmers in two village co-operative societies producing
about 250 liters a day.
The only remedy was to set up a plant to process the extra milk into products like butter and milk powder.
The logic of this step was readily accepted by the Government of Bombay and the Government of India,
except for a few doubting Thomases. The government of India helped the Union to get financial help from
UNICEF and assistance from the Government of New Zealand under the Colombo Plan. Technical aid was
Page 11 of 69

provided by F.A.O. A Rs.50 lakh factory to process milk powder and

butter was blueprinted. Its foundation stone was laid by the then President
of India the late Dr. Rajendra Prasad on November 15, 1954. The project
was completed by October 31, 1955, on which day the late Pandit
Jawaharlal Nehru, the then Prime Minister of India, declared it open. The
new dairy provided a further fillip to the cooperative movement among
milk producers. The union was thus enabled to organize more village cooperative societies and to handle more and more milk each year. This event
also brought a breakthrough in dairy technology as the products were made processing buffalo milk for the
first time in the world. Kaira Union introduced the brand Amul for marketing its product range. The word
Amul is derived from Sanskrit word Amulya which means priceless or precious. In the subsequent
years Amul made cheese and baby food on a large commercial scale again processing buffalo milk creating a
history in the world. 1964 was the turning point in the history of dairy development programme in India.
Late Shri Lal Bahadur Shastri, the then Prime Minister of India who visited Anand on 31s October for
inauguration of Amuls Cattle Feed Plant, having spent a night with farmers of Kaira and experiencing the
success wished and expressed to Mr Kurien, then the General Manager of Amul that replicating Amul model
throughout our country will bring a great change in the socio-economic conditions of the people. In order to
bring this dream into reality, 1965 The National Dairy Development Board (NDDB) was established at
Anand and by 1969-70 NDDB came out with the dairy development programme for India popularly known
as Operation Flood or White Revolution. The Operation Flood programme, even today, stands to be the
largest dairy development programme ever drawn in the world. This saw Amul as model and this model is
often referred in the history of White Revolution as Anand Pattern. Replication of Anand Pattern has
helped India to emerge as the largest milk producing nation in the world.
Evolution of AMUL
Before the cooperative movement began, middlemen who supplied milk to the consumers were exploiting the dairy industry in
the Kaira District. It began as a response to this exploitation and put an end to it. It grew because it responded to the farmers
financially as well as with services. It has thrived because farmers who have a stake in its success, own it. And because it has
been managed by capable professionals and strengthened by dedicated scientists, technologists and workers, it has forged ahead.
Today in India, there are 75,000dairy cooperative societies, spread all over the country with a membership of 10million. The
farmer in the village is now assured of a better future thanks to these cooperatives. Recently one of the European Embassies in
Delhi requested Amul for information on the five biggest "companies" in the dairy business. The first three are in the cooperative
sector - The Gujarat Cooperative Milk Marketing Federation (GCMMF), The Kaira District Cooperative Milk Producers'
Union Limited and The Mehsana District Cooperative Milk Producers' Union. The Kaira District Cooperative is the second best
in the country. It helped to create GCMMF, the apex body of all cooperatives in Gujarat
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Logo of Amul

Figure 1.2 Logo of Amul

Page 13 of 69

SWOT Analysis

Figure 1.3 SWOT Analyses

Page 14 of 69

Architects of AMUL

Sowed spirit cooperative industry

Envisioned White Revolution

Guiding spirit

Father of white revolution technocrat

Social reformist and founder of Amul

Figure 1.4 Architects of Amul

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Vision: Liberate our farmers from economic operation and lead them to prosperity.
Vision of AMUL is to vanish the problems of farmers. The AMUL is running to serve the main four parties:
1.
2.
3.
4.

Farmers
Representatives
Marketers
Consumers.

Mission: We at AMUL endeavor to satisfy the taste and nutritional requirements of the customers of the
world, through excellence in marketing by our committed team. Through co-operative networking, we are
committed to offering quality products that provide best value of money.
Farmers are the foundation stone of AMUL. The system only works for farmers and not for
profit. The main aim of AMUL is to provide highest possible price to farmers (milk producers)
and provide the lowest possible price to consumers.

Milestones since inception

NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY AWARDS

198586.
Presented for Best Productivity Performance in Dairy Development and
Production in Cooperative sector by Shri G.S. Dhillion, Union Minister of
Agriculture to Amul Dairy, Kaira District Cooperative Milk Producers Union
Limited, Anand (Gujarat) New Delhi 22nd April, 1987.

NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY AWARDS 198788.

Sponsored by Ministry of Agriculture Presented for Best Productivity Performance
in Dairy Development Product Plants by Shri Bhajan Lal, Union Minister of
Agriculture to Amul Dairy, Kaira District Cooperative Milk Producers Union
Limited, Anand (Gujarat) New Delhi, 31st March 1989.

Page 16 of 69

NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY AWARDS 1994-95.

Presented for Best Productivity Performance in Dairy Processing Industries by Shri H.D. Deve Gowda,
Hon'ble Prime Minister of India to Kaira District Cooperative Milk
NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY AWARDS 1993-94.
Sponsored by Ministry of Food Processing Industries, Presented for Second Best Productivity Performance
in Dairy Processing Industries by Dr Shanker Dayal Sharma, Hon'ble President of India to Kaira District
Cooperative Milk Producers' Union Ltd., Anand, Gujarat, New Delhi, 30th Oct 1995.
INDIAN MERCHANTS' CHAMBER BOMBAY 1988 AWARD
for Outstanding Performance in the field of R&D of Food Processing Industries Based on Agricultural
Products awarded to Kaira District Cooperative Milk Producers Union Limited, Anand (Shri Mathurdas
Vissanji Endowment) 1988.

NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY AWARDS 1991-92.

Sponsored by Ministry of Agriculture Presented for Second Best Productivity Performance in Dairy
Development & Production in Cooperative Sector (Product Plant) by Dr. Balram Jakhar, Union Minister of
Agriculture to Kaira District Cooperative Milk Producers Union Ltd., Anand (Gujarat) New Delhi, 19th oct
1993.
NATIONAL PRODUCTIVITY COUNCIL PRODUCTIVITY AWARDS 199899.
Presented for Second Best Productivity Performance in Dairy Processing Industries by Shri Krishna Kant,
Vice President of India to Kaira District Cooperative Milk Producers' Union Ltd., Anand (Gujarat) New
Delhi, 24th Aug 2000.

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INDIAN COOPERATIVECENTENARY CELEBRATION : SHAKARI VIKAS RATNAAWAR- 2004

On the occasion of 100 years the CooperativeMovement in Gujarat we are proud to award "shakari vikas
ratna award" to Amul Dairy Kheda District Cooperative Milk Producers' Union Ltd, Anand, Gujarat State
Cooperative Union, Ahmedabad, 23rd Apr 2005.
NATIONAL ENERGY CONSERVATION AWARD 2009.
This commendation certificate is awarded to Kaira District Cooperative Milk Producers Union Limited,
Amul Dairy, Anand (Gujarat) in appreciation of the efforts in Energy Conservation in Dairy Sector by
Ministry of Power, New Delhi, 14 Dec 2009.
CARE AWARDS HEALTHCARE CATEGORY 2013
Sponsored by Aaj Tak TV Today Network, India Today Group for striving towards inclusive & sustainable
development with a "society centered" purpose for Amul's Total Sanitation Campaign.

CII NATIONAL AWARD FOR FOOD SAFETY 2013

Amul Dairy received CII National Award for Food Safety 2013 for its Outstanding Performance in the Dairy
Sector Manufacturing, Large Food Business Category. Besides Global standards & Indian Regulations on
Food Safety Systems, the model includes assessment of Social compliance & Organisational Improvement
initiatives.The award was received on December3, 2013.

Organisation Structure
Page 18 of 69

Figure 1.5 Organization Structure

Profile
Page 19 of 69

Name

Kaira District Milk Producers Union

Limited, Anand known as AMUL Anand

Sector

Milk Union Limited or Amul Dairy

Co-operative sector registered under the

Registered Address

co-operative society Act

KDCMPUL (AMUL Dairy)
Amul Dairy Road,
Nr. Railway station,
Anand, Gujarat,

Registration Date
Registration Number
Initial Promoters

India.
14th December, 1946
p.330 / 1946
Shri Sardar Vallabhai Patel
Shri Tribhuvandas Patel

Head of Department
Telephone

Shri Morarji Desai

Dr. K Ratnam (Managing Director)
(02692)256124-224-324-424-524-724-824-924

Fax Line
Email

(10:00 to 18:00 Hrs)

(02692) 240 225
amuldairy@amuldairy.com
www.amuldairy.com

Websites

Logo

Total Manpower

Group

No. of Manpower

Managerial
Officers
Supervisors &

95
220
160

Clerical
workers
Total

1055
1530

Page 20 of 69

Office Timings

10:15 A.M to 5:45 P.M

1st Shift
08:30 am to 4:30 pm
2nd Shift

04:30 pm to 12:30

Shift Timings

am
3rd Shift

12:30 pm to 08:30

am
Kaira District Co-operative Bank Ltd.
Axis Bank(formerly: UTI Bank)
Bank of Baroda
Corporation Bank
Bankers

State Bank of India

Oriental Bank of Commerce

Village Society
Daily milk collection
Total Members
Bulk Milk Coolers

1239
19 lac liters
635599
172

Geographical spread of Organization

The company is performing well in the countries like USA, Nepal, South Africa, Kenya, Bhutan,
Bangladesh, Thailand, Shrilanka, Tanzania, Australia and Gulf countries.

Page 21 of 69

Figure 1.5 Plants of Amul

There are 11 plants of Amul spread all over. In Gujarat there are 5 plants while in Maharashtra, West Bengal,
Punjab and U.S.A there are 2, 1, 2 and 1 plants. The geographical location is spreading all over the world
slowly. Amul has started new plant at U.S.A named as Waterloo and another one in Mumbai as Virar which
is totally based on technology.
Following are the plants of Gujarat along with manufacturing products
o Anand Butter, Ghee, Flavored milk and Milk Powder
o Mogar Chocolates, Amul pro, Amul lite, Sweets, Bakery items
o Kanjari Cattlefeed
o Khatraj Cheese, paneer and Whey powder
o Kapadivav Cattlefeed

Following are the plants of Maharashtra along with manufacturing products

o Pune Milk, Ice cream and Curd
o Virar Ice-cream
Following is the plant of West Bengal along with manufacturing products
o Kolkata Milk, Flavoured Milk and Ice-cream
Following are the plants of Punjab along with manufacturing products
o Batala Pouch milk
o Khamano
Following is the plant of U.S.A along with manufacturing products
o New Jersey Cheese, Paneer and Shrikhand
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FUNCTIONAL AREAS
MARKETS AND MARKETING FUNCTION
Market
The marketing concept holds the key to achieving its organizational goals consist of the company being
more effective than competitor in creating, delivering and communicating customer value to its chosen target
markets. Marketing starts with the determination of consumer wants and ends with the satisfaction of those
wants. The concept says that any business should be organization around the marketing function, an
anticipating and simulating and meeting customers need.
Products and Brands
Amul has a major player in dairy sector, mainly are in production activity of various dairy products. List of
all products are given below, they are separated in different ranges and they are:

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Bread spreads

Amul butter

Amul light low fat bread spread

Amul cooking butter

Delicious Margarine
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Cheese range :

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul mozzarella cheese

Amul shredded pizza cheese

Amul emmental cheese

Amul gouda cheese

Amul malai paneer(cottage cheese)

Utterly delicious pizza

Mithaee Range(Ethnic Sweets)

Amul Shrikhand and Amarkhand

Amul Mithaee khoya gulabjamun

Amul Basundi
Page 25 of 69

Amul Avasar Kaju Katri

Amul Avasar Kesar Peda

Fresh Milk

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardized Milk 4.5% fat

Amul Slim & Trim Double Toned Milk 1.5% fat

Amul Saathi Milk 0% fat

Amul Cow Milk

Curd Products

Yogi Sweetend Flavoured Dahi(Dessert)

Amul Masti Dahi(Fresh Curd)

Amul Lite Dahi

Amul Prolife Probiotic Dahi

Amul Masti Spiced Butter Milk

Page 26 of 69

Amul Lassee

Amul Ice Creams

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

Amul Ghee

Amu Pure ghee

Amul Cow Ghee

Page 27 of 69

Milk powder

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Sweetened Condensed Milk

Amul Mithaimate

Chocolate and Confectionery

Page 28 of 69

chco mini

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Amul Bindazz

Amul Rejoice

Milk drink

Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate, Butterscotch)

Amul Kool Cafe

Amul Kool Koak

Health And Brown Beverage

Nutramul Malted Milk Food

Amul Shakti White Milk Food

Cattle Feed

Nutri Gold
Nutri Rich
Nutri Plus
Vardan
Jeevan

Page 29 of 69

Market Behavior
The market behavior of AMUL is seasonal i.e if it is summer than the production will be of more butter milk
and if it is winter than production will be of milk .the market behavior is depend on season . This season is
further divided into two Lean season and Flush season.

Figure 1.6 Market Behavior

Lean season is a season where the production of milk is less i.e in summer season, the cows and buffalos are
not able to produce much milk due to which the production capacity of milk is less.
Flush season is a season where the production of milk is more than lean season i.e in winter, the cows and
buffaloes are able to produce milk due to the fresh green vegetable available in winter season which leads in
increase the production capacity of milk in flush season.
Thus, the market behavior of Amul is seasonal.
Competitors and their products
Generally, the most common competitors of amul is loose venders i.e dudh vala of every village who are
selling their milk at lower cost than amul.

Butter

IceCream

Ghe

Curd
Chocol
Page 30 of 69

Figure 1.7 Competitors of Amul

Butter - Nestle, Gowardhan, Mother India, Britania

Ice-Cream Kwalty Walls, Vadilal, Baskin Robins
Ghee Britania, Gowardhan
Chocolate Cadbury, Nestle
Curd nestle, Gowardhan, Danone

Market Segmentation
It is process in marketing of grouping a market (i.e. customers) into smaller subgroups. These markets are
often termed niche markets or specialty markets. These segments are fairly homogenous in their attitudes
about certain variables.
The marketing concept rests on four pillars and they are:

Figure 1.8 Market Segmentation

Following are four sub activities performed by Amul while targeting is:

Defining the abilities of the product and resources needed to enter in a market
Analyzing competitors on their resources and skills
Considering the companys abilities compared to the competitors
Deciding on the actual target markets

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Amul has also its own marketing concept. Amul targets all type of customers like babies, children,
youngsters and old age customets too. Amul try to satisfy needs by providing good quality products.

The market segmentation of Amul Milk is done according to the fat wise:

Market segmentation by Fat

High Fat

Target Market
Youngsters

Reason
They have high digestion
power
Work capacity is more in

Low Fat

Children and old age

comparison to others
They can easily digest

people
Figure 1.9 Market Segmentation by fat
Market Share for various products
The brand positions itself as a brand of both masses and classes, unlike competitors like nestle, GCMMF,
owners of amul brand of milk and dairy products, posted sales of rs. 116570 crore for the year ended march
2012, almost 55% more than nestle indias sale of rs 7541 crore sales. Amul owns 88% share in butter market
and 75% share in cheese market. Amul is the market leader in rs 600 crores cheese market in india. It Also
has 63% share in infant milk and 45% market share in dairy whitner. Amul also enjoys a 26% share in the
25000 crore packaged milk marker. With expected growth rate of 20%, 12% growth rate can be attributed to
price rise and another 8% to rise in demand for dairy products.
Market share of Amul
Category
Butter
Milk Powder
Cheese
Ice-cream
Sweets
Chocolate Drinks
Chocolates

Market Share
Market Position
88%
1
40%
1
75%
1
25%
2
50%
1
90%
1
10%
3
Figure 1.10 Market Share

Page 32 of 69

88%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

90%

75%

40%

50%
25%
Market Share
10%

Figure 2 Market Share

Amul has a high share in the chocolate drinks that means the competition is low and the low market share in
the chocolate because of high competition. A sweet covers 50% of market share while cheese, milk powder
and butter cover 75%, 40% and 88%.
Product Life Cycle
Amul butter has been the market leader in the butter category since past many years. The competition has
failed to beat AMULs leadership in the butter category. The Product life Cycle curve of Amul butter shows
that Amul butter is at maturity stage.

Figure 1.11 Product Life Cycle

New Product Development Strategy

Mostly all the marketing is been done by GCMMF but Amul performs the marketing research mainly to
launch new products in the market. The purpose is off checking the validity of the new products in the

Page 33 of 69

market for the local new. Amul conducts the market survey by appointing business administration students
for conducting the market survey. Extending policy of the new product launch.
Amul has expanded its ice cream portfolio with the launch of Amul Crme Rich range of premium ice
creams in this flavors - almond fudge, caramel, vanilla.
According to the company, this new range is a super permimium offering which is defined as one with lover
amount of aeration and a higher fat content than regular ice-cream, there by giving rich taste and more
weight /volume to consumer. It tastes creamer and richer than regular icecream.also, it carries high value
ingredients such as premium nuts, fruits and flavors.
Currently, this range is launched in major metro markets in cups of 125 ml and 500 ml tubs, price just as RS.
30 and 100 respectively.
Amul is major a market leader with more than 40% market share in the dairy segment and only brand
having national presence in more than 1200 cities across length and breadth in India. The brand reaches out
from Kashmir to Kanyakumari and fro Gujarat to north east. The products are marketed by GCMMF, which
is largest food products marketing organization.

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PRODUCTION/ OPERATION FUNCTION

Input-Operation-Output Framework

Individual

Village
Society

Village
Society

Village
Society

Village
Society

District Cooperative Milk

Producers

Gujarat cooperative Milk

Marketing Federation

Figure 1.12 Operation Framework

Page 35 of 69

Competitive Priorities
The competitive priorities of Amul Products have adopted cost , quality, delivery and flexibility, following
are the reason behind it
Cost: The name amul came from Amulya Priceless. If Amul is non profit earning firm if the organization
is earning profit than some of part will amul take and the remaing profit will get return to the members of the
Amul i.e Farmers. Every operation and every products acctracts the costs. Amul has cost calculating system
named SAP where all the costing and other transation are directly done in SAP.
Quality: Amul are committed to produce wholesome and safe food of excellent quality to remain market
leader through deployment of quality management to achieve deligment of customers and betterment of milk
producers. The quality of Amul is so transparent that the production process is also can be seen the glasses
thus, it provides satisfaction to the visitor about the quality.
Delivery: Amul is having the best system in delivery as it is FMCG products and that to perishable so the
delivering networking system should be perfect. Evry depo have their own quantity of products for delivery,
GCMMF give plans to company according to demand and supply of products of every month.
Flexibilty: Amul is having perfect system no need of flexibility but sometime due to the circumstances
flexibility is done due to the competition.

Production Capacity of each Products

Sr. No
1
2
3
4
5
6
7
8
9
10

Name of the product

Production capacity
Liquid Milk
25 LLPD
Liquid Milk Pouch Pack
1 LLPD
Butter
80 MT
Butter Table Salted
60 MT
Butter White
40 MT
Milk Powder Baby food Amul Spray
80 MTPD
Skim Milk
60 MTPD
Ghee
20 MTPD
Curd
2.5 MTPD
Flavored Milk
25 MTPD
Figure 1.13 Production capacity

Page 36 of 69

Organization Structure of production ( AMUL-3)

Milk
Reception

Quality
Control Lab

Ghee Plant

Cream

Processing

Skim Milk

Butter Plant

Standardize
d

Selling

Market
Dispatch

Pasteurized

Sent to
different

Selling

Dairies

Processed to
different
Products

Figure 1.14 Organization structure of Amul 3

Page 37 of 69

Consideration in the choice of following in relation to other competitors in the industry the firm
operates

Location: The location should be at place where you can get all sources easily.
Capacity: The requirement capacity of product increases or enhancing due to demand and supply of product.
For e.g. The production of cheese was in Anand but due to the more requirement and demand of cheese it
changed to Khatraj. Thus, the production capacity of cheese increases due to which it leads to change
location and make particular place for the production now Khatraj is only producing cheese and paneer.
Thus competition plays an important role on this area.
Technology: Amul is having the best and latest technology system . Amul is highly technology upgraded
cooperative society. Amul is used SAP system i.e System Application Programming and Data Processing.
Milko meter system where the fat of milk and the water contained is been checked. The advance technology
machines like fully automated. Amul is having modern and traditional mechanism.
For e.g. the best example for technology of Amul is Virar plant of Mumbai , it is fully automatic with
modern machines , latest technology, highly upgraded etc. and this plant was made on 2014.
Layout: the layout of Amul is done according to the product and production. The products are divided into
ambient products that is products which are dry products which can place in surroundings. Refrigerator
product are products which can be kept in cool place at o-5 degree C. and other is Frozen products where
ice-creams is kept at 40 degree, paneer for 30 degree and mozerelaa cheese is 10 to 20 degree C.

Production process of Amul plants

Flow Chart of Cheedar Cheese
Silo

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VAT-1
Thermophilic/Mesophilic culture
Rennet enzyme stir for 5 minutes

Incubation for 1 hour

Cutting(30-40 degrees)

Transferring to cheese master

Salted/sweet
Steamed is Passed

Cheese Tower

Whey

Vacuum Sealing

Metal Detector

Weighing

Description for Making of Cheddar Cheese:

The milk stored in silos enters the vat1. the capacity of vat is 16500 litres.
In vat we add thermophilic and mesophilic culture and we stir it for one hour
Then we add rennet enzyme and stirred for 5 minutes and incubate it for one hour at 45

degrees .ripening is done in it and cutting is done

From vat cheese enters cheese master .In cheese master we add either salt or sugar for it

for preservation
Then steam is supplied to separate cheese and whey .
Whey is filtered through fine saver and send to whey powder plant
The cheddar cheese enters cheese tower where it is made into fine blocks
The fine blocks are sealed in vacuum sealing to remove moisture.
From there it is sent into metal detector then it is weighed
Then it is sent for packing

Page 39 of 69

 Flow Chart of Whey Powder

The remaining liquid during the process of cheese, paneer is sent to silo.
It is called as whey. This is sent to pasteurizer and heated at 81 c.
The whey is sent to clarifier where the dust particles are removed.
After clarifier it enters the separator where fat is separated.
Then whey is sent to Nano filtration where water gets evaporated.
Then the whey is sent into EDR tank where PH & CONDUCTIVITY is maintained.
Then the whey is crystallized in crystallization tank.
Then it finally enters into dryer and it is packed.

Silo

Pasteurizer (81oC)

Clarifier (Dust)

Separator (FAT)

Nano Filtration

EDR
PH and Conductivity is maintained

E-Operator

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Crystallization

Dryer

Types of material Handling equipment

Milk Tankers

Trucks

Crates

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Trolleys

Gravity Roller

Silos

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Milk Tower

Conveyer Belt

Containers

Homogenizer

Page 43 of 69

Pasteurizer

Raw Material used and their sources

Page 44 of 69

Raw material are divided into different segments and they are as follows

Figure 1.15 Raw Material and their

segments

Inventory Management
Inventory management is very necessary for the firm because if the firm has lesser investment inventory, this
would lead unavailability of materials when required which would ultimately lead interruption in production
process. Similarly if the firm has higher investment in inventory this would lead to locking up of funds in
inventory, thus reducing the working capital. Hence, the inventory should be properly managed in every
organization.
At all the plants of Amul inventory is classified mainly in five heads and they are:
1. Raw Milk stock
2. Raw Materials: It is a major input in the organization which is used in the production activity. Its
quantity will be determined by rate of consumption and the time required to get the supplies.

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3. Stock in Progress: In this stage the stock are in between materials and finished goods form. The
quantum of work-In-Progress depends upon the time taken in manufacturing process.
4. Finished Goods: It means that goods are ready to consume. Its stock provides buffer between
production and market.
5. Scraps
The prime objective of inventory management at Kaira District Co-operative Society is
To minimize the possibility of disruption in the production schedule of a firm
To keep down capital investment in inventory.

Inventory control method

Power control of inventory not only solves the acute problem of liquidity, but also increase the annual profits
and causes subsential deduction in working capital of the firm.
There are many inventory control method but among them Amul use ABC, EOQ and VED. On paper they
are maintaining ABC and EOQ method, but in practice they do not follow such method because the
production budget and milk receipt is variable. The production budget is constantly changing according to
the instruction of GCMMF.
1. ABC Analysis: This method provides mechanism for identifying items that will have a significant
impact on overall inventory cost, while also providing a mechanism for identifying different
categories of stock that will require different management and controls.
2. EOQ method: A problem which always remains in that how much material may be ordered at time,
thus due to this problem EOQ method is used. From this method we can know the lowest cost per
unit and is most advantages that how much material to order at time.
3. VED Analysis: Vital essential and desirable analysis is used primarily for the control of spare parts.
The spare parts can be divided into three categories:
i.
Vital: The spares the stock out of which even for a short time will stop production for quite
ii.

some time and future cost of stock out is very high are vital spares.
Essential: The spare stock out of which even for a few hours of days and cost of lost

iii.

production is high is essential.

Desirable: Spares are those which are needed but their absence for even a week or so will not
lead to stoppage of production.

Page 46 of 69

Total Quality Management

Quality policy
We motivated and devoted work force of AMUL are committed to produce whole some and

safe foods of excellent quality to remain market leader through deployment of quality
management system, state of art and technology innovation and eco-friendly operation
delightment of customer and betterment of milk producers.

Figure 1.16 TQM values

Page 47 of 69

SUPPLY CHAIN AND LOGISTICS

Organization of Supply Chain

Figure 1.17 Supply Chain

The farmer is a milk producer and the member of the village dairy
Village dairy collect the milk from the milk producer and send to the district union which is ICO

certified.
The district union dairies are like Baroda dairy of Baroda, Sumul dairy of Surat etc.
GCMMF collects the final product from all dairies and then selling and marketing is done by

GCMMF.
Distributor collects the goods from GCMMF and further they will sell to wholesaler
Same way wholesaler will sale to the retailer, retailer will buy the product an will sell to the

customer.
At last the supply chain ends with consumer.

Purchase/supply procedure
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The following procedure is supply procedure, how the goods are been supplied to the other

GCMMF gives yearly plan to Amul on monthly basis how to supply, where to supply and how much

to supply the goods at what time.

The user department checks the requirement of the goods and then it makes the purchase requisite.
The goods are been verified and then the PR is been made after making PR , purchase order is been

made and purchase order is been taken.

After taking the purchase order to vendors the documentation is been done i.e the legal documents of

vehicle is been checked.

Than the vehicle is been unload, the weight of vehicle is been check and then after it the physical test

is been checked.
The goods are been verified and then GRN is been made.
After all the systematic procedure the goods are ready to supply.

Figure 1.18 Purchase/Suppliers procedure

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HRM FUNCTION
All the HR activities decisions such as recruitment, selection, training, promotion, transfer, remuneration,
etc are taken by the business partners (i.e. such decision are centralized). It is one of the important functions
of middle manager in motivating, inspiring and leading their subordinates. This also includes building a team
and supporting any team member when necessary.
The objective is to attain maximum individual between employer and employees and effective molding
human resources as contrasted with physical resources. Personal (human) resource management plays a very
important role for any organization. The firm having all types of resources like machines, material, money,
information etc but will not be success in the business without effective manpower.
Human capital is the greatest assets of the business enterprise and manpower management is the most
important and a crucial job because the managing group is the heart of the company. Human resource
department plays important role in establishing good relation and harmony among all.
HRD is divided into seven main function and they are as follows:

Figure 1.19 Functions of HRD

Personal and Administration This includes activities starting from collection of job application,
recruitment, selection to promotion, transfer and retirement. This also includes recruitment of
apprentice and muster keeping.
Human Resource Department This function is for providing different types of training. Training
g includes on the job, off the job, in house and out house training, ISO Awareness Training, Kaizan
activity is also carried out.
Human Resource Accounting This function includes docket file maintenance, online employees
Database, Wages and salary Administration, Leave and Bonus calculation, Compensation etc.
Human Resource Management Various activity includes by this category are manpower
planning, getting right man at right job at right place at right time, employees Turnover.
Industrial Relation To abide by the various Acts applicable to the union. Various Acts like Factory
Act, Trade Union Act, Contract Labor Act, Gratuity Act, Bonus Act, Payment of wages Act,
Apprentice Act, Workman companion Act, Industrial Dispute Act, apart from these acts IR also
Page 50 of 69

includes Uniform, Apron, Safety items, Free Buttermilk, Subside food and Farsan in canteen, Free
Medical Checkup and Festival Advance.
Legal This includes liaison with different parties like Government Labor Officer, Assistant
Commissioner of Labor, Factory Inspector, Apprentice Advisor and Environ inspector settlement
with union and court matters.
General Administration This function includes Housekeeping, Security Arrangement, Gardening
Management, Guest House Management, Parking Arrangement and Event Management.
There are two types of organization structure in Amul
1. Internal organization structure
2. External Organization Structure
Internal organization structure

Figure 1.20 Internal structure of

Amul

External Organization Structure

Page 51 of 69

Figure 1.21 External structure of Amul

Human Resource plannig, Recruitment anf selection
Recruitment
Recruitment forms the first stage in the process which continous with selection and placement of candidate,
in other word recruitment is generating of application for the specific position.
There are two types pf recruitment source followed by Amul
Internal Sources
Internal sources include personnel already on the payroll of the organization. Filling vacany from internal
sources by promoting people has the advantage of increasing general level of moral of existing employees.
Following are included in this sources:
Present permanent employees
Employee Referrals
Fomar Employee
External Sources
This sources lie outside the organization. In Amul they consider following sources for recruitment
Campus interview
Unsolicited Application
Application Blank
Placement Agencies
Selection
Selection procedure is concerned with securing relevant information about applicant. The main objective of
selection process is to determine whether an applicant meets the qualification for a specific job and choose
the apllication that is most likely to perform well in the job.

Page 52 of 69

Figure 1.22 Selection process of Amul

After selection, the employees generallly have a probation period. In Amul probation period is different for
different type of employees. The probation peroid for officers is 12 months ,6 months for clerical employees,
and 3 months for workers.
Training and Development Activities
Training and development is a subsystem of an organization. It ensures that randomness is reduced and
learning or behavioural change take place in structured format. Training is the process where the work
related knowledge, skills and attitude are given to new employees, by which they are aware about the
policies rules and increase technical and manual efficiency and create responsibility. Amul has accepted
following method for the training
On the job method
Off the job method
In house training
Out house training

Training Procedure in Amul

Page 53 of 69

Figure 1.23 Training process of Amul

Empoyee Welfare Measures

Cerain facilities are provided at the site of work itself, such as subsidized canteens nad medical

facilities
Some facilities relate to the economic needs of workers such as copoerative credit societies,
consumers cooperative stress, staff benefit fund, the educational assiastance to work uniform, Pron,

cap , overcoat.
Parking facility
Safety items
Subside food in canteen
Free milk
Subside farsan
Free buttermilk
Fist in canteen
Free medical checkup
Food grain festval advance

Statutory Welfare Schemes

Drinking water - At all the places safe hyginic drinking water should be provided.
Facility for sitting - In every organization, especially factories, suitable sitting arrangements are to

be provided.
First Aid Appliances - First Aid appliances are to be and should be readily assessable so that in case

of any minor accident initial medication can be provided to the needed employee
Latrines and Urinals - A sufficient number of laterines and urinals are to be provided in the office
and factory premises and are to be maintained in neat and clean condition.
Page 54 of 69

Canteen Facilities - Caferia or Canteens are to be provided by the employer so as to provide hyginic

and nutrious food to the employees.

Lightning - Lightning facilities are given to the workers so that they cannot face any difficulty while
doing work also generator facilities are given. They are given proper and sufficient lights so that

employees can work safely during the nght shift.

Washing places - Adequate washing places such as bathrooms, wash basin with tap and tap on the

stand pipe are provided in the port area in the vicinity of work place.
Rest rooms - Adequate number of restrooms are provided to thew workers with provisions of water

supply , wash basins, toilet, bathrooms, etc.

Changing rooms - Giving appropriate changing rooms to the employees to change their cloth in the
factory are office premises along with their own lockers so that they can keep their stuff inside safely.

Various Acts Applicale to the Union

o Factory Act,1948
o Trade Union Act,1926
o Contract Labor Act,1972
o Apprentice Act,1961
o Minimum Wages Act,1948
o Bonus Act,1965
o Gratuity Act,1972
o Provident Fund Act,1952
o Payment of Wages Act,1936
o Workman Compensation Act,1923

Performance Appraisal
Performance appraisal is the process of evaluating the performance and qualification of employees in the
terms of the requirement of the jobs for which they are employed.

Figure
Final

the MD

Promotion Period

Appraisal For

1 Yrs.

Managers

3 Yrs.

Officers

recommendation

1 Yrs.

Workers

divisional heads comes from

1.5 Yrs.

Temporary Workers

1.24 Performance Appraisal

confirmation
with
the
by

the

on annual basis. His work is

evaluated

by

Check

List

Method of performance appraisal.

There are various method used to appraise the performance of an employee. In Amul the following methods
are used.
1. Self Appraisal
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If individuals understand the objectives they are expected to achieve the standards by which
they are to be evaluated they are to a great extent in the best position to appraise their own
performance. In this method employee appraise himself.
2. Managers Appraisal
The general practice is supervisors appraise the performance their subordinate. Other
supervisors, who have close contact with employees work may also appraise with a view to
provide additional information. A higher- level manager appraise the employees for their
performance.
In Amul various attributes consider for the appraisal of employees
o Job Knowledge
o Work output
o Quality of work
o Interest in work
o Initiatives
o Past records
o Seniority

This appraisal is also having the rating scale. Method of appraisal also appraised employee by the following
ratings:
o Outstanding
o Good
o Satisfactory
o Poor
The Overall assessment is done through above training rating and also the comment of reviewing officer is
included. Apart from this the performance is likes allowance is provided in relation with performance that is,
o 25%
o 50%
o 100%
o Not Allowed
This is provided by and under the knowledge of Managing Director, generally in Amul on base of
performance appraisal employee of managerial level gets special allowance, while for workers they get
promotions.
Wages and Salary Structure

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Figure 1.25 Wages and salary Structure

1. A common method is followed for the wage and salary administration according to Muster
Roll.
2. Timekeeper sends that muster roll to the account department for the attendance of each and every
employee. This will analyze and entered in the computer.
3. After this salary is calculated for each employee through computer according to that they prepare
salary sleep of employees.
Industrial relation environment
Following are the industrial relation at Amul:
Co-ordination with works committee, canteen committee, safety committee and implement the

suggestions obtained.
Co-ordination and councel workers, assistants and office for the activities of settlement.
Co-ordinate Assembly meetings/ patharna meeting
Co-ordination for awarding special rewards for good performance
Attending social functions to develop strong bonding between employers and employee
Implementation of various methods and acceptation of suggestion for the welfare of employees such
that the level of dissatisfaction comes down

Computer Application in Human Resource

Systematic application and Data processing SAP
Quick Book

Page 57 of 69

Page 58 of 69

FINANCE FUNCTION
Long term and short term financial management

Capital structure and its variation over time

Capital structure is the mix of financial securities used to finance the firm. The value of firm is
defined to be the sum of value of firms debts and the firms equity.
Amul is a cooperative organization, therefore there is nothing like market value of share whenever
AMUL need funds it issues adequate number of share, but only to its shareholders or members of
societies and not to the others. The capital structure of a firm would generally denote the ratio of own
capital do the borrowed capital. The capital structure thus, indicates how the capital is been rose.
Factors that influence capital structure
o Business risk
o Company tax exposure
o Financial flexibility
o Management style
o Growth rate
o Market condition
o Cost of fixed assets
o Size of business organization
o Nature of business organization
o Elasticity of capital structure
Sources of finance
o Federation makes payment to Amul dairy on daily basis
o FD from member societies is major source of finance
o Interest of FD from banks like SBI, BOB, MGVCL (GEB) security deposit , and Sardar
Sarovar Bond etc.
o Share of Amul is not for public but only for the members of Amul society
o Cash credit, overdraft and short term working capital loan from banks

Working Capital Management

Amul makes most of its sales to GCMMF on credit basis. Requirement of working capital in winter
season is much higher and availability of fund is lesser. To meet with this working capital
requirement, Amul has got certain provision and short-term investment. From the monthly sale,
GCMMF gives return to Amul from which it covers up its short term expenses.

Operating Cycle

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Operating cycle is the firms time duration required to convert sales after the conversion of resources
into inventories into cash. This operating cycle of manufacturing firm involves three phases
acquisition of resources such as a raw material, labor and power etc.
Manufacturing of the product which is included in conversion of raw material into work in progress
into finished goods. Sale of the product is either for cash or credit basis. Credit sales create account
receivable for collection.
Accounts Payable

Value Addition

Operating Cycle

Figure 1.26 Operating

cycle

Phase 1- First of all the company purchases the raw material and then conversion of raw material into WIP,
finished goods and finally the transfer of goods to stock at the end of the manufacturing process. In the case
of trading companies this phase is shorter as there would be no manufacturing activity and cash is directly
converted into inventory.
Phase 2- In this phase, the inventory is converted into receivables as credit sales are made to the customers
firms which do not have the phase 2 of the operating cycle. After that the firm earns the receivables in the
form of cash. From that cash the firm pays the account payables to the creditors.
Phase 2- The last phase of operating cycle represents the stage when receivables are collected. Thus, the firm
has moved from cash to inventory to the receivables and to cash again. From that cash the firms have to
purchase the raw material for the next year also. So, in this way the operating cycle will continue.

Page 60 of 69

Organization Structure:

Figure 1.27 Organization structure of Finance

Page 61 of 69

Cash Management
The management of cash is done on wide bases in all areas. The circulation of cash starts from the debtors to
direct dealers. The fund is collected from all side that is from debtors to dealers.

Figure 1.28 Flow of cash

Every day the cash payment is been done with very huge amount. The flow of cash is done in such a way
that there should not be delay in payment. Daily cash comes from the bank, marketing federation, direct
sales etc. daily plans is been made for flow of funds with CFO.
The cash payment is done by NEFT upto 2 Lacs and RTGS (more than 2 Lacs) if it is very huge amount. If
the cash is not available than they use the bank overdraft. The certain limits are given for the utilization of
overdraft to complete the transaction. If the cash comes then all the money is credited to overdraft so that
they have to pay less interest on it. All cash is been transfer to OD from the current account due to which
they can utilize the source of money whenever is required
Different accounts are made for the transaction of cash. If after all this there is excess cash is available Amul
used to invest in short term fixed projects.
Major payments are fixed in times i.e. in 10 days, in months 3 times, 10-15 days etc. For creditors cycle of
cash management is 30 days and for debtors it is for 7-10 days.

Name of payment

Duration of payment

Milk purchase

10-11 days

Milk inward transport

15 days

Cattle field transport

15 days

Raw and packing material

15-30 days

Figure 1.29 Duration of Payment

Amul is having the Accrual System
Page 62 of 69

Management Information System

The term Digital divide has always fascinated the Indian IT industry. Both the government and the private
social organizations from the private sectors have launched the various schemes to take IT to the masses .
Amul has been on of the first organization to use IT enables transactions.
GCMMF has embarked on information technology as a thrust area for gaining a competitive edge in its
global business operation, with the view of handling the rapid growth and data volumes that needed to be
effectively managed. GCMMF has studied its structure and operations prevailing development in the
information technology which gave a birth to information system a step by step planning document for
GCMMF. The main concern was to make the information strategy as an integral part of the business strategy
through the end to end total quality management.
The use of Information Communication Technologies (ICT) made effective in rural areas. This system made
easy for farmers to get the cash payment as soon as the milk is been delivered.

DECISION MAKING
Decision making can be regarded as the cognitive process resulting in the selection of a belief or a course of
action among several alternative possibilities. Every decision making process produce a final choice that
may or may not prompt action. Decision making is the only study of identifying alternative based on the
values and preferences of the decision maker. Decision making is one of the central activities of the
management and is huge part of ant process of implementation.

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Decision Making Process

Figure 1.30 Decision Making Process

Here all the long term decisions are being taken by chairman of AMUL. Top management is responsible for
the funding and guiding the organization to its peaks. Visions and missions are generally prepared by them in
order to maintain the growth of the firm.
Middle management provides the links between the top management and operating staff. Here they work as
conveyor. The plant level management is in the hand of middle managers. They are responsible for the
production activities being done in the plant and report them to all top management.
Operating staff is working staffs who actually engaged in the production process as well as other activities
running in grass root level in the organization. They are working on the instructions of middle level manager
of plant. Their feedback is also important for the improvement in the processes running in the organization.
The organization structure in AMUL is highly decentralized as they only adhere to their conventional model
of structure. Here in the company decision making is slow and time consuming. The communication pattern
is highly emphasizing on downward side of the pyramid. Major decisions are only being taken by the top
management.
According to the company in every month there has to be of top executive of the companies with all
department heads in order to discuss the issues and decision making.
The co-ordination pattern is very simple. Only the departments communicate horizontally with each other
for smooth function of the organization and as shown in the pyramid the communication is vertically
downward.

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Figure 1.31 Vertical Downward Communications

Financial Analysis

A ratio is an arithmetic relationship between two figures. Financial ratio analysis is a study of ratios between
various items or group of items in financial statement.
Ratio analysis is a widely used tool of financial analysis. It is defined as the systematic use of ratio to
interpret the financial statement to that the strength and weakness firm as well as its historical performance
and current financial condition can be determined. A ratio is relationship expressed in mathematical terms
between two individuals and groups of figures connected with each other in some logical manner. The
relationship between two or more accounting figure is called financial ratio.
A financial ratio helps to summarize a large mass of financial data into concise form and to make meaningful
interpretation and conclusion about the performance and position of firm.

Ratio Analysis
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Ratio

Liquidity Ratio
Leverage Ratio

Turnover Ratio

Profitability Ratio

2010-11

2011-12

2012-13

2013-14

2014-15

1.36
0.76
0.53
5.65
0.85
14.45
31.9
13.55
3.81
4.76
0.44
1.68
36.41

1.14
0.67
0.12
7.04
0.88
14.6
40.43
12.53
3.87
4.21
0.43
1.68
38.08

1.15
0.65
0.05
8.18
0.72
9.67
20.2
9.33
3.19
3.76
0.25
0.81
25.29

1.04
0.62
0.05
8.4
0.8
11.28
20.56
8.68
3.45
5
0.25
0.85
29.34

1.1
0.57
0.03
10.28
0.81
14.09
22.5
8.94
3.76
4.57
0.28
1.06
39.91

Current Ratio
Quick Ratio
Cash Ratio
Debt/Equity Ratio
Debt/Asset Ratio
Inventory Turnover Ratio
Debtors Turnover Ratio
Fixed Assets Ratio
Total Asset Turnover Ratio
Gross Profit Margin Ratio
Net Profit Margin Ratio
Return on Asset Ratio
Return on Equity Ratio

WORKING CAPITAL
2010-11
Amt. (In
Lacs)

2011-12
Amt. (In
Lacs)

2012-13
Amt. (In
Lacs)

2013-14
Amt. (In
Lacs)

2014-15
Amt. (In
Lacs)

CURRENT ASSESTS
Stock :
Trading Stock
Stores

13193.56
3268.82

16462.38

19965.14
5758.72

25723.86

36792.8
5853.47

42646.27

21191.06
6503.23

27694.3

37244.12
7156.43

44400.55

Advances & Debtors :

Deposits
Dues from Societies
Society Loans- BMC Project
Advance
Trade Debtors
Sundry Debtors
Income-Tax Deposits

460.34
2.13
1983.7
1551.35
1560.66
621.28
164.63

456.09
624.91
2342.22
5141.65
9418.65
642.2
260.68

534.17
662.61
2281.24
1700.83
15977.71
588.93
260.84

593.18
596.03
1602.55
3600.27
14151.93
497.08
558.1

626.26
595.98
1462.05
4576.1
18980.27
823.29
570.16

6344.09

18886.4

22006.33

21599.1

27634.11

6331.46
8150.12
2.56

1789.05
2414.91
1.63

1171.63
717.55
0.19

1838.5
203.07
0.44

1395.41
97.88
0.3

Cash & Bank Balances :

In Bank Current Accounts
Fixed Deposits in Banks
Cash on Hand

14484.14

4205.59

1889.37

Page 66 of 69

2042.01

1493.59

Total Current Assets

37290.61

48815.85

66541.97

51335.4

73528.25

336.18
19202.52
3185.65
1767.94
1568.72

346.48
23851.96
881.19
5546.69
1865.66
8541.57

425.56
24447.06
972.29
4981.13
1894.81
20891.37

587.23
27473.03
1534.07
4574.22
2354.65
11267.68

529.12
33494.31
2314.83
2783.75
9384.3
16098.53

26061.01

41033.55

53612.22

47790.9

64604.84

557.78
69
58.95
1.5
578.24
36.21

1491.98
0
58.95
1.5
172.33
65.62

1100.44
0
58.95
1.5
138.57
51.75

932.44
0
58.95
1.5
352.33
374.52

1359.94
0
58.95
1.5
308.27
617.9

1301.68

1790.38

1351.21

1719.74

2346.56

10000
10045.18
0

0
14127.12
0

0
5070.25
20000

20045.18

14127.1

25070.25

CURRENT LIABILITIES
Current Liabilities:
Deposits
Due to Societies
Outstanding Against Expenses
Outstanding Against Purchases
Sundry Creditors
Bank Overdraft

Provisions:
Income Tax
Fringe Benefit Tax
Doubtful Trade Debtors
Decline in Investments
Gratuity
Leave Encashment

Short Term Loans

HDFC Bank Short Term Loan
SBI Short Term Loan
NABARD Short Term Loan

0
0
0

Total Current Liabilities

27362.69

42823.93

75008.61

63637.7

92021.65

Net Working Capital

9927.92

5991.92

-8466.64

-12302

-18493.4

Working Capital Management

100000
80000
60000

Total Current Assets

40000

Total Current Liabilities

20000

Net Working Capital

0
-200000.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
-40000
Years (2011-15)

Figure 2.14 Working Capital Management

Pivot Table

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Row Labels
CURRENT
ASSESTS
CURRENT
LIABILITIES
Grand Total

Sum of
2010-11

Sum of
2011-12

Sum of
2012-13

Sum of
2013-14

Sum of
2014-15

37290.61

48815.85

66541.97

51335.44

73528.25

27362.69
64653.3

42823.93
91639.78

75008.61
141550.58

63637.74
114973.18

92021.65
165549.9

Figure 2.15 Pivot Table of Working Capital Management

Interpretation:
In the year 2010-11 and 2011-12, the working capital tends to decreased. But then in 2012-13, 2013-14,
2014-15 it went to negative. This is because of negative cash cycle, as described as following part of
analysis.
In short the reason for negative net working capital is because the KDCMPUL is having more credit payable
period then receivable period. Means the creditors for the current year are not quickly paid then the current
asset.

Page 68 of 69

INTERNSHIP LEARNINGS
Organization Attachment Programme is always great learning experience of our career. This was my first
prior work experience in the corporate exposure. When I gain an opportunity to work with a brand like Amul
I was very excited. The experience I gathered in my OAP that will really help me in future.
It has to be clear in mind that, it is not going to be the bed of rose. The more you face difficulties, the more
you learn. For me it was also true.
Following are the things I had learnt from internship:
Whatever I had studied yet like from head to toe i.e starting from the managerial functions, taxation,
accountings, decision making, values and ethics, types of communication, etc. Here I had work

practically especially on finance how practically the system works for the organization.
How whole system works practically with step wise
I had learned practical entries on SAP system on transactions given
How all the people is linked with each other with their work
The systematic chain of working
How to communicate with higher authorities with discipline and etiquettes
Research on Amul Green
Ability to adapt on tasks of decision making, judgments, patience, time accuracy
Concept of PF and pension plans
Cash management system
Amul pattern
Preparation of cost sheet
Quick book system of Amul for U.S.A Waterloo
Financial analysis of the Amul

Along with this I had learnt to be a hard worker, time management, communication, personal qualities i.e.
physical strength and stability to work, self motivation.

Page 69 of 69