CONTENTS

S.no Particulars
1. Certificate
2. Acknowledgement
3 Chapter 1: Introduction
4 Chapter 2 : Vision,Mission,and Objectives
5 Chapter 3 : History
6 Chapter 4 : Success story
7 Chapter 5 : Roadblocks and Feasible solution
8 Chapter 6 : Future projections
9 Chapter-7 Conclusions of the study
10 Chapter-8 Professional Outcome
11 References/bibliography
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.
Formed in 1950, it is a brand managed by a cooperative body, the Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.6 million
milk producers in Gujarat, with a tagline “AMUL-
THE TASTE OF INDIA” ., they sell milk and related products.
The white revolution was spearheaded by Tribhuvandas Patel under the guidance of
Sardar Patel and Verghese Kurien. As a result, Kaira District Milk Union Limited was
born in 1946. Tribhuvan das became the founding chairman of the organization which he
led till his last day of his life. He hired Dr. Kurien three years after the white revolution.
He convinced Dr.Kurien to stay and help with the mission rest was history in the dairying
industry.
Amul spurred India’s White Revolution , which made the country the world's largest
producer of milk and milk products. In the process Amul became the largest food brand
in India and has ventured into markets overseas.
Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–
2006), is credited with the success of Amul. Amul products are now available in more
than 60 countries in the world.

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 federated into a milk federation at the state level. Milk collection is done at the
village dairy society, milk procurement and processing at the District Milk Union and
milk products marketing at the state milk federation. Thus, the entire value-chain right
from the 'farm to the table (of the consumer)' is owned by the farmer, which is not the
case with many dairies elsewhere in the world where only some parts of the value-chain
belongs to the cooperative of farmers and the more lucrative, like marketing, given away
to multinationals and corporate .The structure was evolved at Amul's initial, solitary dairy
and later adopted by GCMMF and thereafter replicated all over the country under
the Operation flood programme. It is known as the 'Amul Model' or 'Anand Pattern'.

Products of Amul:

It consists of wide ranges of products which are outlined below:

 Amul Butter

 Amul Beverage Range / Milk Drinks

 Amul Powder Milk Range

 Amul Bread Spreads Range

 Amul Fresh Milk Range

 Amul Cheese Range

 Amul Dhai Range

 Amul Mithai / Desserts Range

 Amul Health Drink

 Amul Chocolates
Advertising

In 1966, Amul hired Sylvester daCunha, then managing director of the advertising
agency AS to design an ad campaign for Amul Butter. daCunha designed a campaign as
series of hoardings with topical ads, relating to day-to-day issues.It was popular and
earned a Guinness world record for the longest running ad campaign in the world. In the
1980s, cartoon artist Kumar Morey and script writer Bharat Dabholkar had been involved
with sketching the Amul ads; the latter rejected the trend of using celebrities in
advertisement campaigns. Dabholkar credited chairman Verghese Kurien with creating a
free atmosphere that fostered the development of the ads.
Despite encountering political pressure on several occasions, daCunha's agency has made
it a policy of not backing down. Some of the more controversial Amul ads include one
commenting on the Naxalite uprising in West Bengal, on the Indian Airlines employees
strike, and one depicting the Amul butter girl wearing a Gandhi cap.
In 2013, Amul tweeted a picture featuring the Amul butter girl, implying that 'freedom of
choice' died in '2013', in opposition to the Supreme Court of India overruling the
judgment of Delhi High Court and criminalising homosexuality again.
On 17 October 2016, Amul butter girl celebrated 50 years when she first appeared in the
topical ad titled "Thorough bread". The Ad showed a jockey holding a slice of bread
during the horse race season in 1966.The impish Amul missy had appeared for the first
time even before that, with Eustace Fernandez showed her offering bed-time prayers with
a wink and a lick of lips, saying "Give us this da our daily bread: with Amul butter". But
the topical hits started flowing in since 1966.
Brand equity in the Marketing strategy of Amul
Because of the excellent products, the top of the mind positioning, the fantastic
distribution and supply chain channels and finally the point of purchase branding and
advertising of the Amul girl, Amul finds itself in a very strong position where its brand
equity is concerned. Amul brand is worth $3.2 billion as per the 2013 brand equity report.
Furthermore, most analysts say that Amul would have touched the $4 billion mark, but
the dropping value of the rupee is what caused the difference.

Packaging
Packaging is the process of enclosing, or containing the product in bottles, plastic bags,
wrappers, lubes, paper cartoons and boxes etc. For the purpose of displaying useful
information regarding the product, its contents, weight, size, price, constituents, usage
necessary instruction about the usage and storing the product must be recorded on the
package. Package reduces the risk of wastage, spoilage, leakage, metage and evaporation
etc. in the process of transportation and storage.

PACKAGING CONTAINERS (FORMS) FOR MILK AND DAIRY PRODUCTS

 Bottle
The glass bottle still continues to be used for packaging of milk in some parts of the
world. However in several developed countries and some of the developing countries it
has lost ground to single service containers for packing milk.
  Carton
The cartons are the preferred medium or form for packaging milk. They are also used
for packaging liquid, frozen and coagulated milk products. Cartons are commonly made
of food grade paper coated on the inside with wax or plastics; or lined with paper, plastic
films or aluminium foil; or made of laminates.
The merits include maximum space utilization in vehicles, and storage; ability to carry
attractive printing and convenience as a means for stacking milk at super market shelves.
Retailers in the developed countries consider it the best available package for self-service
selling. Cartons also play a role in the bulk packaging of milk. Cartons are commonly
available either as preformed containers or as pre cut blanks ready to be formed in to
containers.

 Sachet / Bag / Pouch

Flexible waterproof plastic bags are commonly used for packaging milk and liquid dairy
products. Since it is difficult to pour from these, a jug is usually also provided. The
popular laminate for such bag is black or dark brown (to exclude UV light) or white.
The bags may be formed from either a reeled or flat film. Generally it is a form-fill-seal
system. Generally, ultra violet light is used to sterilize the films. The bags are heat-sealed
and cut, the common sequence being to bottom seal, fill, move down on sachet length,
top seal and cut
.

 Can
This is commonly used for packaging all types of solid, semi solid and powdered dairy
products. Cans are traditionally made of soldered tin plate steel, generally lacquered on
the inner surface to prevent corrosion.
Aluminium cans have now become famous. Cans are the most convenient for gas
packing.

 Box / Tub
It may be made up of wood or paper board. White wooden boxes / tubs are used for bulk
packing of butter and butteroil with butter paper / plastic liners, paperboard boxes are
generally used as over-wraps.
 A summary of packaging materials / containers used in Dairy Industry

S.No Product Packaging Material

1. Liquid milk Glass bottles LDPE film in combination with LLDPE or octane / butane based films
Paper laminates for tetra packs

2. Milk Powder Tin plate containers, nitrogen packed, and lacquered from outside.
Flexible laminates such as metallized PET / BOPP / Aluminium foil / Poly laminates.
Refill packs; lined cartons laminated with BOPP / PET, varnished on the outside.
Bag-in-box; Powder filled in laminate and packed in cartons.

3. Butter Duplexboard with vegetable parchment paper tin plate containers aluminum foil.

4. Cheese / Cheese Tin plate containers lacquered from inside First packed in aluminum foil and then in
spread duplex board carton injection moulded PP / HDPE container

5. Ghee Tin plate containers lacquered from inside Glass bottles HDPE film pouches.

6. Ice cream Thermoformed / Injection moulded plastic containers Duplex board carton (poly
laminated) Laminates of BOPP(Biaxially Oriented Polypropylene) / PET

7. Indian Dairy Injection moulded / thermoformed containers (shrikhand, gulab jamun)

Products Stand up laminated pouches

The packaging materials include paper and paper based products (coated or lined), glass,
tin plate, aluminium foil, timber (wood), plastics and laminates ( Tetra packs)

Paper and paper based products

The paper and paper based products form an excellent packaging material for milk and
milk products. They may be kraft paper, grease proof paper, vegetable parchment paper,
glassine paper, wax coated paper, plastic coated paper, paper boards, solid fibre boards,
liner boards, box boards etc.
The papers are used in the form of boxes, bags, wrappers, cartons, cups etc. The
advantage of using paper is that it is weightless, capability for printing on the surface,
low cost and easy disposability. The disadvantages include low wet and tear strength.

 Glass
The glass may be transparent or opaque. Glass is used in the form of bottles, tumblers,
jars, jugs etc.
The advantages cited for glass as a packaging material include its strength, rigidity,
ability to have a barrier for water and gas and inertness to chemical substances.
The disadvantage is its heavy weight, and fragility.

 Tin plate
It may be made up of a thin sheet (0.025 mm thick) of mild steel coated on both sides
with a layer of pure tin. It is desirable to have an internally lacquered can, which provides
better resistance to corrosion.
The advantages cited for tin containers as a packaging material are their good strength
and excellent barrier properties. The disadvantages are their high cost, heavy weight,
difficulty in closing the lid of the container, and disposal. The containers are mostly used
in the form of can.

 Aluminium foil
The common thickness of the foil used is 0.012 – 0.015 mm. To increase corrosion
resistance, it may be lacquered (coated with lacquer) or a thin film of plastic can be
applied for packing dairy products.
The advantages of these containers are good barrier properties, grease proof, non-
absorption, shrink proof, odourless, tasteless, hygienic, non toxic, opaque to light, bright
in appearance etc. The demerits are its low tear strength, susceptibility to strong acids and
alkalis. It is mostly used in the form of wrapper, carton and box.

 Timber
The required qualities for the timber to act as a packaging material are it should be free
from odour, have an attractive appearance, and required mechanical strength. It may be
treated with casein formalin, or sprayed with paraffin wax or plastics or to make it more
water resistant and to avoid the passage of timber taint to butter. It is generally used in the
form of a box, tub, cask or barrel.

 Plastics
The use of plastics in packaging has made tremendous progress in recent years all over
the world. A wide variety of plastics can be used as thermoformed, injection moulded or
blow moulded containers, such as bottles, cartons, cups, boxes etc. The merits of rigid
plastic containers are its low cost and ease of fabrication.
The demerits cited are lack of product compatibility, low barrier properties, plastic
deterioration, lack of resistance to high heat and fragility at lower temperatures. Flexible
plastic packaging films are used as wrappers or sachets or bags or pouches for packaging
milk and dairy products. The flexible plastics can be classified in to two types.
Polyethylene layer protects food from external moisture
The STORAGE OF MILK also plays a vital role in the packaging process.
VISION AND MISSION OF AMUL

Vision
Amul ‟s vision is to provide more and more satisfaction to the farmers, employees and
distributers.
Mission
We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavor to satisfy
the tasteand nutritional requirements of the customers of the world, through excellence in
marketing byour committed team. Through co-operative networking, we are committed
to offering quality products that provide best value for money.”
We the motivated and dedicated workforce at amul are committed to produce wholesome
and safe foods of excellent quality to remain market leader through development of
quality management system, state of art technology, innovation and eco-friendly
operations to achieve delightment of customers and milk producers”.

Amul never forgot its “primary customer” - Amul collects 447,000 ltrs of milk from
2.12 million farmers (many illiterate)
Product for youth - Amul launched Chocolate milk under brand name of ‘Amul Kool
Koko’ targeting the youth
Product for diabetic people - India’s First Pro-Biotic Wellness Ice cream & Sugar Free
Delights For Diabetics.
Product for the health conscious - Amul Launched “low fat, low cholesterol bread
spreads”
Product for the price sensitive India - Low Priced Amul Ice Creams and affordable
‘sagar’ whitener.
Product for the urban class - Amul launched emmental, gouda and pizza mozzarella
cheese
OBJECTIVES OF THE COMPANY
 To capture the large share of the market.
 To analyse the development of farmers in dairy sector.
 To anlyse the women empowerment among the dairy society.
 To provide maximum customer satisfaction.
 Continue product modification and improvement effort to increase customer
benefit and reduce cost.
 To meet the highest international standards of quality.
 To expand production capacity.

The objective of Amul, the dairy cooperative in India, is to spur the White Revolution in
the country and make India the largest producer of milk and milk products in the world.
The cooperative is shared between over 2.8 million dairy producers.

OBJECTIVES OF THE STUDY:

 To analyse the market share of Amul.

 To analye the company’s contribution towards the farmers and women
empowerment.
 To know the contribution of Amul towards the society..
 To know about the different types of product they are dealing with.
 To know the level of customer satisfaction of amul.
 To know the future projections of Amul.
 To know about the roadblocks Amul is dealing with.
Amul Model has increased India's milk production on an incredible scale.

Amul: Amazing story of India's most successful brand

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.
Formed in 1950, it is a brand managed by a cooperative body, the Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.6 million
milk producers in Gujarat.
The white revolution was spearheaded by Tribhuvandas Patel under the guidance of
Sardar Patel and Verghese Kurien. As a result, Kaira District Milk Union Limited was
born in 1946. Tribhuvan das became the founding chairman of the organization which he
led till his last day of his life. He hired Dr. Kurien three years after the white revolution.
He convinced Dr.Kurien to stay and help with the mission rest was history in the dairying
industry.
Amul spurred India’s White Revolution , which made the country the world's largest
producer of milk and milk products. In the process Amul became the largest food brand
in India and has ventured into markets overseas.
Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–
2006), is credited with the success of Amul. Amul products are now available in more
than 60 countries in the world.
The tubby little moppet in the familiar polka-dotted dress is not just the Amul Butter
mascot. The Amul Girl, who has entered urban lore with her regular appearance on
billboards accompanied by clever catchphrases that comment on contemporary events,
stands for the very fight its parent was born to counter.
The cooperative movement that began Gujarat back in 1946 was a movement against the
atrocities of Polson Dairy, a locally-owned dairy in Anand, Gujarat, which allegedly
procured milk from farmers at very low rates to sell to the Bombay (now Mumbai)
government.
Amul’s architect in almost every way was the late Dr Verghese Kurien (who, ironically,
died in the 50th year of the creation of the Amul girl).
Arriving in Anand in 1949 as a government employee to manage a dairy, he went from
helping farmers repair their machinery to revolutionising the Indian dairy industry by
scripting Operation Flood, a cooperative movement that turned India from a net importer
of milk into one of the world’s two largest producers today.
Not for nothing was Verghese Kurien (left) called the Milkman of India, though his
vision was a simple one of offering thousands of small dairy farmers centralised
marketing and quality control facilities, the missing links in the dairy economy at the
time.
Thus, in 1973 the Gujarat Cooperative Milk Marketing Federation was established to
market milk and milk products manufactured by six district cooperative unions of
Gujarat.
As R S Sodhi, GCMMF’s managing director today, says, competition in the dairy sector
40 years ago was very different. “In the sixties and seventies, India was a milk-deficit
"Milk powder was imported. From a per capita milk consumption of less than 110 grams
per person to around 300 grams per person is a long way, and largely possible due to the
cooperative movement.” But branding also played a role, cleverly designed to add a tinge
of nationalism to an essentially rural revolution. When experts asked Kurien to choose
brandnames that would sound foreign, he wisely insisted on an Indian name.
Thus, Amul (then short for Anand Milk Union Ltd) was born.
Amul was not just a milk and butter brand, it became an umbrella for all the products that
GCMMF marketed. The (original) Amul Girl was created by Sylvester daCunha
(daCunha )A seasoned marketer, Kurien gave DaCunha Communications immense
creative freedom to release the Amul Girl ads without waiting to take permission.
The freedom is still maintained and is the the reason the Amul Girl is never late with her
take on the world around, says the agency, led by Rahul daCunha, son of Sylvester.
While the late Eustace Fernandes sketched the mascot, it was ad and theatre veteran
Bharat Dabholkar who created some of the more popular ads.
The first dairy, Kaira District Co-operative Milk Producers’ Union, which created Amul
in 1955, handed over the brand name to GCMMF in 1973. By then, Amul had become a
brandname in its own right. It is said that for Operation Flood, Kurien’s idea of having
farmers own the brand went a long way in creating a sense of ownership and, in turn,
responsibility for the product’s quality. This is the reason state federations now have
their own brands -- Nandini in Karnataka, Verka in Punjab, Saras in Rajasthan and
Mahananda in Maharashtra.
Branding gave a farmers’ cooperative a quasi-commercial strength, enabling it to adapt to
competition.
In the nineties, it laid down the distribution of edible oil and frozen products and in 2000-
2010, liquid milk outside of Gujarat. Since 2010, Amul’s parent has been busy procuring
milk from outside Gujarat.
The supply chain spanning four distribution channels and pricing with attractive margins
have ensured the federation can venture into new product categories and stay on top of
competition.
“Even after the opening up of the sector in 1991, and the entry of several private dairies,
there are few serious brands that have emerged in the domestic market,” Sodhi says.
Amul reaches one million retailers through a network of 10,000 dealers.
Sodhi says since the mid-90s, Amul has been able to take the “range outside the security
of our traditional products, milk powder and butter.
Achievements of the dairy cooperatives during the last 100 years

During the pre-independence era, public and private agencies dominated the dairy
industry, although government policy did not favour any one organizational form. Early
efforts to organize dairying along cooperative lines were made immediately after the
enactment of the Cooperative Societies Act, 1912. The present day Anand Pattern dairy
cooperatives trace its origin to the establishment of a dairy cooperative at Anand in 1946
under the direction and guidance of Sardar Vallabhbhai Patel. The dairy farmers of the
then Kheda District of Gujarat organized themselves to form a dairy cooperative in order
to directly undertake sale and processing of milk collected from member dairy farmers of
the district.

The government of India took some steps to improve the quality of milch animals and
their productivity through the Key Village Scheme, launched as part of the First Five-
Year Plan (1951-56) and the Intensive Cattle Development Plan, launched under the
Third Five-Year plan (1961-66). However, in the absence of a stable and remunerative
market for milk, production remained more or less stagnant. During the two decades
between 1951 and 1970, milk production grew by barely 1 per cent annually, while per
capita milk availability declined by an equivalent amount.
During the 1960s, various state governments tried different strategies to develop dairying,
including establishing dairies run by their own departments, setting up cattle colonies in
urban areas, and organizing milk schemes. Almost invariably, dairy processing plants
were built in cities rather than in the milk sheds where milk was produced. This urban
orientation to milk production led to the establishment of cattle colonies in Mumbai,
Calcutta, and Madras. The objective was to meet the demand for milk and milk products
in big cities through improvements in milk collection, processing, and distribution.
The Operation Flood (OF) programme implemented by the National Dairy Development
Board (NDDB) from 1970 to 1996 played the key role in bringing about the
transformation in dairy development in the country. The OF programme established milk
producers cooperatives in villages and made modern technology available to them. The
broad objectives were to increase milk production ("a flood of milk"), augment rural
incomes, and transfer to milk producers the profits of milk marketing that were hitherto
enjoyed by well-to-do middlemen.
The importance of Operation Flood lies in its focus on small rural producers. Lucrative
alternate employment opportunities are often not available in Indian villages, making
dairying an attractive option for many villagers. Low capital intensity, a short operating
cycle, and steady returns make dairying a preferred activity among marginal (less than
one hectare of land holding) and small farmers (those having 1-2 hectares of land
holding), who make up about 57 per cent of rural households in India. Dairying is
feasible even for the landless, who depend for fodder on common grazing and forest
lands. Nearly 70 million Indian households hold a total of 98 million cows and buffaloes.
A majority of milk producers have one or two milch animals, and these small producers
account for some 70 per cent of the milk production. On average, 22.5 percent of the
income of rural households is contributed by milk.

The Operation Flood programme is based on what are known as Anand Pattern dairy
cooperatives, referring to their origin in Anand District in the state of Gujarat. Starting in
1970, NDDB replicated the Anand Pattern cooperatives through the OF programme all
over India. Under the Anand Pattern structure, individual farmers are joined in village-
level dairy cooperative societies (DCS), which are joined to form district-level unions,
which in turn are joined in state-level marketing federations.
In each state, the Anand Pattern features:
 decentralized milk production by the small milk producers;
 milk procurement by the village-level dairy cooperative societies;
 centralized milk processing by the district-level unions; and
The primary milk producers democratically govern this entire federal cooperative
structure to ensure that the higher-tier organizations serve the purpose of the lower levels
and that the gains at all levels flow back to the milk producers in significant measure. The
core feature of the Anand Pattern model is farmer control of the three stages following
production, that is, procurement, processing, and marketing of milk and milk
products.The value added at the procurement and processing stages can be realized by the
cooperatives only through control over marketing, which is therefore an essential
requirement for success. In contrast, many dairy cooperatives worldwide end up as
suppliers of raw material to private companies that own the brands and control marketing.
By cutting out the need for middlemen in procuring and selling milk, the Anand Pattern
cooperatives have helped to reduce seasonal price variations and have enabled the
farmers to enjoy the fruits of their labour instead of surrendering most of the profit to
corrupt and exploitative middlemen.
Consumers too have benefited. In 2003, dairy cooperatives accounted for the major share
of processed liquid milk marketed in India. Milk reaches consumers in 750 towns and
cities through the National Milk Grid network. Over the years, brands of dairy products
created by the cooperatives have become known for quality and value.

Growth in womens dairy cooperatives

Milch cattle in India are mainly tended by women. Amul realized this and built womens
empowerment activities as an important component of its dairy development programme.
In the early phases of OF, the strategy was to train women in modern animal husbandry
practices, and a large number of training programmes were specifically organized for
them. Special incentives were given to all women dairy cooperative societies in order to
encourage participation of women in governance of the cooperatives. According to
NDDB annual report, 2001-02, the number of women who are members of dairy
cooperatives has increased to 2.47 million in 2001-2002 from 0.62 million in 1986-87.

Growth in milk production and availability

Milk production in 1968-69, before the launching of Operation Flood, was only 21.2
million metric tones. It increased to 31.6 million metric tones by 1980-81, 53.9 million by
1990-91, and 84.6 million by 2001-2. The annual growth rate was 4.08 per cent during
the first phase of Operation Flood. It was much higher (7.85 per cent) during the second
phase, and production continued to grow at 5.05 per cent per year during the third phase.
As a result of substantial increase in milk production, milk consumption in India has risen
from a low of 112 grams per day in 1968-69 to over 226 grams per day in 2002.
The increase in milk production and availability helped stabilizing milk prices over the
years. Today most of our cities and towns receive adequate supply of hygienic milk, and
the small farmers and landless labourers who make up the majority of dairy cooperative
members now have a regular source of income.

Achievements of the Dairy Cooperatives in India till 2003-04

Reach
The dairy cooperative network is owned by nearly 12 million farmer members.
These producers are grouped in nearly 1,08,574 village-level dairy cooperative societies.
The societies are grouped in 170 district-level unions spanning 338 districts.
The unions make up 22 state-level marketing federations.
Milk production
Indias milk production increased from 21.2 million metric tons in 1968-69 to 88.1 million
metric tons in 2003-04.
Per capita availability of milk increased from 112 grams per day in 1968-69 to 231 grams
per day in 2003-04.
Indias 3.8 percent annual growth of milk production surpasses the 2 per cent growth in
population; the net increase in availability is around 2 per cent per year.
 Marketing
In 2003-04, average daily cooperative milk marketing stood at 14.87 million litres;
annual growth has averaged about 4.2 per cent compounded over the last five years.
Dairy cooperatives now market milk in about 200 class I cities including metros and
some 550 smaller towns.
During the last decade, the daily milk supply has increased from 17.5 to 52 litres per
1,000 urban consumers.
Innovation
Bulk vending saves money and conserves the environment.
Milk travels as far as 2,200 kilometres to areas of shortage, carried by rail and road milk
tankers.
India produces 95 per cent of its own dairy equipment, saving valuable foreign exchange.

The table below presents select data on the growth of the dairy cooperatives during the
three OF phases and after the programme.
Achievements of Operation Flood, 1970-2002

OF phases
Indicator Post-OF phase
Phase I> Phase II Phase III

October April
Date started July 1970 April 1996
1979 1985

March March March

Date concluded March 2002
1981 1985 1996

Investments (Rs. million) 1,165 2,772 13,031

No. of federations/apex milk unions

10 18 22 22
operating

No. of milk sheds covered 39 136 170 170

No. of dairy cooperative societies set up 13.3 34.5 72.5 74.3

(thousands)

No. of members (millions) 1.75 3.63 9.26 11.06

Average milk procurement (million

2.56 5.78 10.99 17.60
kg/day)

Liquid milk marketing (million

2.79 5.01 10.02 12.67
litres/day)

Processing capacity

Rural dairies (million litres/day) 3.59 8.78 18.09 26.47

Metro dairies (million litres/day) 2.9 3.5 3.88 NA

Milk drying capacity (mt/day) 261.0 507.5 842.0 990.0

Technical inputs

No. of Artificial Insemination centres

4.9 7.5 16.8 22.0
(thousands)

No. of AIs done (million/year) 0.82 1.33 3.94 6.00

Cattle feed capacity (thousand mt/day) 1.7 3.3 4.9 5.2

Market dominance of the dairy cooperatives

Today milk is processed and marketed by 170 district-level unions, which are federated
to 22 state-level marketing federations. Over the years, cooperative brands have earned
the reputation of being known for quality and value. Some of the brands that have earned
consumer confidence are Amul (in Gujarat), Vijaya (Andhra Pradesh), Verka (Punjab),
Saras (Rajasthan), Nandini (Karnataka), Milma (Kerala) etc. Each of these brands has
become market leader in its own state or traditional area of operation and gradually
expanding its presence in other states. Presently, the Gujarat Cooperative Milk Marketing
Federation (of Amul brand) is the largest food company in India. The success of Amul
proves that cooperatives can successfully compete with even multinational companies.
Empowerment Elements
Empowerment is a multidimensional construct. As suggested by the World Bank for
assessing the Operation Flood programme on three dimensions: social empowerment,
economic empowerment, and political empowerment.

Social Empowerment
Social empowerment deals with issues of exclusion and inclusion. They become
important in a religiously diverse, multicultural, and highly stratified society like India
where rural poor face many forms of exclusion. While Operation Flood is not an all-
purpose development program and cannot hope to sweep away economic and social
inequalities that existed in rural India for centuries, it has nonetheless had a profound
impact on the social landscape of the countryside.
In its 1976 report on rural employment, the National Commission on Agriculture
observed:
Next to crops, animal husbandry programmes have the largest employment potential. The
most important features of these programmes are that they provide subsidiary occupation,
offer gainful employment at the location itself, and make better utilization of female and
child labour. . .Most of these programmes are particularly suitable for weaker sections of
the rural community and have re-distributive effect on rural income in favour of them.

Renowned Sociologist BS Baviskar explains that Operation Flood was considered a

means of overcoming the barriers of caste, class, and power, something earlier rural
development programs had been unable to do.
Since milk production does not require much land, but family labour which the poor have
amply, the landless poor can easily and profitably participate in the white revolution,
deriving employment and additional income from it. Since milk is not a polluting
substance in the Hindu religious ideology, people belonging to any caste, even the lowest,
can and do participate in producing milk. . . . Also cooperatives which organize only milk
producers can successfully bypass the constraint of village power structure.
Amul adopts Tetra Pack technology for processing & packaging

Amul said it will upgrade its present processing and packaging facility by adopting Tetra
Pak's new generation high speed lines to meet the rising demand of Ultra-High
Temperature (UHT) milk.

Dairy major Amul today said it will upgrade its present processing and packaging facility
by adopting Tetra Pak's new generation high speed lines to meet the rising demand of
Ultra-High Temperature(UHT)milk.

The high speed lines from Tetra Pak, the world's leading aseptic processing and
packaging solutions provider, will enable Amul to meet growing consumer demand for
UHT milk, Sodhi added that at present sale of UHT milk other value added products per
day stood at 4-5 lakh litres per day and expect this demand to continue growing at 25 per
cent.
Tatra Pak also added that rise in the demand of UHT milk and other value added products
in the country has encouraged their customers to enhance packaging and processing
facilities.
"It is encouraging to see Amul's confidence in the UHT milk segment. We look forward
to building on our long association with Amul and gearing up for future potential of UHT
milk market in India," Tetra Pak South Asia Markets Managing Director Kandarp Singh
said.

Amul is the brand name under which Gujarat Cooperative Milk Marketing Federation
(GCMMF) sells its products. It markets the products, produced by the district milk unions
in 50 dairy plants, under the renowned Amul brand name. The GCMMF's turnover during
2012-13 was USD 2.5 billion.

Amul FY17 sales jump 17.5% to Rs 27,043 crore

The growth rate in the reporting year is much lower than the previous year's, when it
clipped at 67 per cent to Rs 23,004 crore over fiscal 2015.

The Gujarat Cooperative Milk Marketing Federation(GCMMF), which markets the

popular Amul brand of milk and dairy products, has clocked a turnover of Rs 27,043
crore in fiscal 2017, an in crease of 17.5 per cent over the previous year.

However, the growth rate in the reporting year is much lower than the previous year's,
when it clipped at 67 per cent to Rs 23,004 crore over fiscal 2015.

The cooperative said its turnover has increased by 3.5 times-- from Rs 8,005 crore in
fiscal 2010 to Rs 27,043 crore in fiscal 2017 and attributed this to the rapid expansion of
its procurement, processing and distribution network, and the cooperative.

"The cooperative will be rapidly expanding milk procurement, increase manufacturing

facilities and marketing and distribution network," it said.

The turnover has registered quantum growth of 238 per cent in the past seven years,
which implies the cumulative average growth rate (CAGR) of 19 per cent during this
period.

The group turnover and its constituent member unions, representing unduplicated
turnover of all products sold under Amul brand was Rs 38,000 crore for the year.

The nation's largest cooperative aims to achieve a business turnover of Rs 50,000 crore
and become the largest FMCG player in the country by fiscal 2021, the company said
after its 43rd annual general meeting at Anand in Gujarat today.

In the long-term, Amul claims to establish itself as the largest dairy organisation in the
world, rising up from its current ranking of 13, it said.

The federation has also successfully quadrupled the income of its dairy farmers in the
past seven years as during this period, its milk procurement prices more than doubled
from Rs 24.30 a litre for buffalo milk in fiscal 2010 to Rs 49 in fiscal 2017.

Since the cooperative's total milk procurement also doubled during this period, from 90.9
lakh litres per day to 176.5 lakh litres per day, this effectively increased the income of its
dairy farmers by fourfold during the past seven years.

Milk procurement rose a phenomenal 96 per cent, while the farmer-members saw their
payout increase by 102 per cent.
Better returns from dairying have motivated them to enhance their investments in
increasing milk production, cooperative chairman Jethabhai Patel said.

Managing director R S Sodhi said the federation has significantly enhanced production
capacities for major dairy products during the last three years by setting up several dairy
plants, including dairy factories in Faridabad, Rohtak, Lucknow, Kanpur, Amreli and the
Kutch.

Its new plants in Taloja in Maharashtra, Kolkata, Surendranagar and Ahmedabad are in
various stages of construction and will further add to the capacity.

The processing capacity of AmulFed dairy at Gandhinagar is being enhanced from 35

lakhlitres to 50 lakh litres per day.

It is also enhancing milk powder manufacturing capacity with a new factory of 150
metric tonne per day capacity in Gandhinagar, along with another new milk powder plant
in Himmatnagar. That apart, it is also significantly increasing chocolates and paneer
capacity, he added.

Amul’s sales turnover crosses ₹23,000-cr mark in FY-16

The sales turnover of Gujarat Cooperative Milk Marketing Federation (GCMMF), which
markets the Amul brand of milk and dairy products, has crossed the 23,000-crore mark
in 2015-16.
According to provisional turnover data announced on Friday, the milk behemoth has
registered a turnover of 23,005 crore during the financial year ended March 31.
This is 11 per cent higher than the last financial year's sales turnover of 20,733 crore.
The entire sales turnover growth has come because of volume. In fact, GCMMF’s
turnover has increased by 187 per cent during the last six years, a spokesman said.
The provisional unduplicated group turnover of member unions of Amul group has
crossed 33,000 crore, which is also higher by 14 per cent compared to the last financial
year.
GCMMF, which had planned to achieve sales turnover of 30,000 crore by 2017-18, has
been achieving a value growth of more than 20 per cent since the last six years because of
higher milk procurement, continuous expansion in terms of adding new markets,
launching of new products and adding new milk processing capacities across India.
In order to reach interior markets, GCMMF had started twelve new branches in India
during the last three years.
Rs. Sodhi, Managing Director, GCMMF, said t -hat pouch milk is the highest turnover
product, showing a double-digit volume.
The AMUL BUTTER faces roadblocks in three aspects :-
Competition in terms of Price and Availability

Solution : Slums to Sun-N-Sand”( both order the 8 grams butter packs- slum dwellers
due to affordability and big hotels as a butter supplement to specific dishes). AMUL has
kept the provision of purchasing Institutional Packs for High Consumption Groups like
restaurants and caterers who usually place their order in cases(one case has 30 packs of
500 grams). Also,Price - The next important aspect that provides a Competitive
Advantage to AMUL butter over its competitors is its price. AMUL butter spends less
than 1% of its revenues into advertising which is much less than the industry average of
8-9%. Add to this, they’ve a highly efficient distribution channel which facilitates
effective pricing. The Cooperative network of the Milk Union eradicates the scope of the
middle man on the supply side ensuring fair pricing and the strong marketing channel
carries forth the trend, which gives them a strong pricing advantage.
So on one hand its closest competitor, Britannia charges Rs.27 for a 100 gram
packet, Amul charges Rs.25. AMUL’s Institutional Packs have an attractive pricing of
Rs 110 compared to retail packs priced at Rs.122 for a 500 gram pack. The range of
product packages Amul offers(8 grams being the minimum) makes it easier for lower
income groups to afford it. Thus, over a period of time they’ve expanded on their target
group with effective packaging and pricing
.

Competition in terms of "Healthy" factor

Solution : AMUL has constantly taken the right steps to ensure a high quality product
that gets prodigious customer satisfaction. Since health consciousness is gaining
momentum in our country as well ,Amul reacted to it with the introduction of new
products in its line- Amul Lite which offers a low fat butter and Delicious which is a no
cholesterol table margarine( a substitute for butter). This gives them a wider reach to the
new found segment of health aware target group.
The Brand Awareness for Amul Lite and Delicious is very less.

Advertising and Promotion’s paucity is the biggest weakness of Amul, which has not
effected their product butter yet, but is clearly reflected in ‘AMUL Lite’ and ‘Delicious’
brands of butter. The hawkers who do roaring business are also his clients. The usual
trend is that distributors sell to only those who order more than five packets of 500 grams
perday.
Nutralite is gaining momentum because of higher awareness in people about it compared
to AMUL Lite or Delicious. Retail Visibility is a collaborative decision of the company
and the retail store. AMUL less proactive in this regard compared to Britannia.

AMUL provides the one of the best quality products in the industry. But they are a very
traditional enterprise. If they create better communication strategies, they can see better
avenues for higher sales and accessibility to the customers.

Cost of Operations – Amul’s operation is huge. And so is the cost. Plus the sector is
such that maintaining margins becomes difficult day by day. Thus, to
face international players, Amul needs to maintain the operations in the same manner it is
carrying out today. It is not a weakness but rather a constant challenge for Amul. In fact,
during summers, the brand faces severe shortage of supply.
Chocolates – Amuls expansion to chocolate has failed and hardly any product of Amul
chocolates is selling in the market. Amul needs further products to expand its product
line and increase bottomline.
Increasing competition in Ice cream segment – Many players, local and international,
are entering the ice cream market thereby taking away share of wallet from
Amul. Kwality walls, Naturals, London dairy, Havmor, Arun ice cream, Vadilal, Ramani,
are some of the few brands who are directly in competition with Amul.
 Perishable nature of product
 No diversification
 Lack of aggressive marketing
 Since it is cooperative society thus take time to implement new strategies
  Lack of infrastructure to suffice international norms
 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 hher income to rural
milk producers should automatically lead to improvement in milk yields.

 MNC competitor such as Nestle, Britania

 Local competitor such as Aarey, Mahananda etc.
 Bann on PLASTIC
 Misuse of brand name (There is a brand named Amol which sells ice-creams)
 Misinterpretation of Ads
The Indian dairy industry, following its delicensing, has been attracting a large number
of entrepreneurs.
Amul, Big Basket among firms getting government approval to set 101 cold chain
projects.
NEW DELHI: Indian dairy marvel Amul and online grocer Big Basket are among the
companies that have got the federal approval to set up 101 integrated cold-chain projects,
signaling big investments in a sector considered crucial to reducing farm output losses in
Asia’s third-biggest economy.

These projects, allocated by the Food Processing ministry, would help in the storage of
perishable produce such as fruits and vegetables, dairy, fish, meat, marine, poultry, and
the ready-to-eat.
NEW DELHI: Indian dairy marvel Amul and online grocer Big Basket are among the
companies that have got the federal approval to set up 101 integrated cold-chain projects,
signaling big investments in a sector considered crucial to reducing farm output losses in
Asia’s third-biggest economy.

These 101 new integrated cold chain projects will leverage total investment of Rs 3,100
crore for creation of modern infrastructure for the food processing sector. The total
expected grant-in-aid to be released to these projects is Rs 838 crore,” Harsimrat Kaur
Badal, the Minister for Food Processing, told the media.

Among other big names winning such projects is the Haldiram Group that makes ready-
to-eat Indian snack-foods. The new projects will create additional capacity of 2.76 l lakh
tonnes of cold storages, including controlled atmosphere and frozen storage, 115 tonnes
per hour of individual quick freezing (IQF) capacity, 56 lakh litres per day of milk
processing, 210 tonnes per batch of blast freezing, and 629 refrigerated and insulated
vehicles, she said.

“India is one of the largest food producers in the world and is the second largest producer
of fruits and vegetables, yet only 2.2% of our fruits and vegetables are processed. While
existing cold storages are concentrated in a few states and roughly 80 to 90% are used for
potatoes, India has a long way to go,” said Badal.

The minister added that the cold chains will help provide better prices to farmers. “The
infrastructure will also reduce the wastage of perishables, add value to to the agricultural
produce, and create huge employment opportunities especially in rural areas,” she said.

Amul starts third party unit in Guwahati, launches pouch milk

GCMMF has launched its pouch milk in Guwahati. Initially it plans to sell around
30,000 litres milk per day. Guwahati unit has producing facility of one lakh litres
milk per day.

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) has come up with third
party milk processing unit in Guwahati.

GCMMF has launched its pouch milk in Guwahati. Initially it plans to sell around 30,000
litres milk per day. Guwahati unit has producing facility of one lakh litres milk per day.

K.M. Jhala, Chief Operating Officer, GCMMF who was in Guwahati on Wednesday said,
“We have identified Assam and North-East (NER) as an opportune market for our Fresh
Product offerings. Guwahati has total milk market of about 3.20 Lakh Litres per day, out
of which 50 percent of milk is sold in loose form. Loose milk doesn’t ensure consistent
quality throughout the year which is ensured by Amulpouch Milk. Amul is looking to
garner a market share of 40 percent in Guwahati fresh milk market.”

GCMMF, which is selling 125 lakh litres per day of pouch milk across India with 25
percent market share in pouch milk category, aims to reach out to 17 lakh residents in
Guwahati.

Amul Dairy's managing director Dr K Rathnam said that per capita consumption of milk
in Assam is 70 grams per person per day while national average is 336 gram per person
per day.

Zonal in charge of GCMMF, Apurba Misra said, “We will reaching out to customers in
Guwahati with 15000 retail outlets. ”

Amul to launch camel milk in next 3 months

With food safety regulator FSSAI setting new standards for camel milk, dairy major
GCMMF, which sells products under the Amul brand, today said it will launch camel
milk in the next three months. Amul will first start selling camel milk in Ahmedabad and
will later launch in other cities. “We operationised standards for camel milk today. We
took two years to come out with standards. The standards will help better marketing of
camel milk in cities,” Food Safety and Standards Authority (FSSAI) Chairman Pawan
Agarwal said at an exhibition organised by NGOs ‘Sahjeevan’ and ‘Foundation for
Ecological Security’ here. This will also help create awareness about the health benefits
of camel milk, he added.
Aggarwal assured that it would take possible measures if any fine tuning is required in
the standards going forward. Speaking on the occasion, Gujarat Cooperative Milk
Marketing Federation’s (GCMMF) Marketing Manager Hardeep Banga said that the
cooperatiave will launch camel milk in 500 ml bottle in the next three months. “Now, the
plant is ready in Kutch. We are going to market camel milk in the next three months.
Initially, it is will be sold in Ahmedabad through Amul booths in 500 ml bottle,” he said,
adding that the camel milk would later be marketed in Delhi and Mumbai.
Two years back, Sahjeevan approached GCMMF for marketing of camel milk produced
in Kutch area. A Rs 3 crore project was initiated and about Rs 70 lakh funding support
was provided together by state and central governments, he added. Union Agriculture
Minister Radha Mohan Singh said, “After assessing scientifically, camel milk has been
recognised with the line of food grade. This will not only benefits rearers of camels but
also facilitate for value-addition productions.”
A beginner?s book on pastoralism ‘A World Without a Roof’ written by Sarita Sundar
was also launched at the exhibition on pastoralists being held at Indira Gandhi National
Centre for the Arts (IGNCA) here from December 2-18. The 16-day multi-media
exhibition will showcase the lifestyles of Indian pastoralists ? their remarkable history of
mobility, the fantastic eco-systems which nurture their life-world, their culture, science,
art, spiritual moorings and the economics of herding.

Amul to sponsor New Zealand in ICC Champions Trophy

Dairy giant Amul will be the prime sponsor of the New Zealand cricket team in the
upcoming ICC Champions Trophy that commences on June 1 in England.
“Amul will be the principal sponsors of the New Zealand cricket team for the upcoming
Champions Trophy,” R.S. Sodhi, managing director of Gujarat Co-operative Milk
Marketing Federation announced on Saturday.

The Blackcaps, who are in the same group with Australia, England and Bangladesh in the
Champion’s trophy, would sport a new jersey with the Amul logo on its chest during the
tournament.
Expressing his excitement about the new tie-up, James Wear, the commercial director of
New Zealand Cricket, said they were keen on a long term partnership with GCMMF.
“We, on behalf of New Zealand Cricket are very excited. We are looking towards at least
a couple of months and hopefully a long term partnership,” Wear said with Kiwi players
Trent Boult, Tim Southee and Colin De Grandhomme by his side.
Profession Outcome

The professional outcome of the study are as follows :

 Amul is the one of the leading dairy industry.

 The main aim of Amul is the welfare of the society and not to maximize the
profit.

 It has a strong distribution network and various functional departments.

 Amul provides a large amount of employment in the villages.

 Amul focuses on continuos product modification and innovation.

 It has a large number of product for each and every market segment.

 For supply & collection of milk at Amul there is three tier structure with modern
infrastructure consisting of Village level Dairy Cooperative Societies (DCS),
District level Milk Unions & State level Federations.
 Amul is expanding its horizons covering maximum number of states & regions in
India.
 Amul adopted tetra pack technology in milk packaging.
CONCLUSION

• The report consists of the details on AMUL. It is one of the most effluent
company’s of India for processed milk and milk Products.
• The company was basically founded in Gujarat in 1950. It is jointly owned by 3.6
million milk producers in Gujarat, with a tagline “AMUL- THE TASTE OF
INDIA”.
• The main aim of AMUL is the welfare of the society by providing quality milk to
its consumers at an affordable price.
• It has various functional departments such as the Production, Human Resource,
Finance, Marketing, Purchase and Stores, Quality Assurance, Dispatch and
Logistics.
• It has a large amout of customers buying their products.
• Other than milk, AMUL has a long list of its products. AMUL is famous for
maintaining its quality and regular supply.
• It also sells various products like cheese ,ghee ,dahi ,beverage drinks,etc .
• The AMUL had to face various challenges, road blocks and threats. By
developing strategies, the company has overcome these problems and its business
is growing steadily and continuously.

• Due to policies and marketing of the AMUL, its sales jump 17.5% to Rs. 27,043
crores.

• The AMUL has been widely recognised for its functioning and achievements at
various levels and has a long list of awards and recognition.
BIBLIOGRAPHY

 http://www.amul.com/m/a-note-on-the-achievements-of-the-dairy-cooperatives
 https://retail.economictimes.indiatimes.com/news/food-
entertainment/grocery/amul-adopts-tetra-pak-technology-for-processing-
packaging/22464210
 http://economictimes.indiatimes.com/news/economy/agriculture/government-
okays-101-cold-chain-projects-costing-rs-3100-crore/articleshow/57856053.cms
 http://www.rediff.com/business/special/pix-amul-an-utterly-butterly-self-
sufficient-brand/20140904.htm
 http://suvarnabskaushal.blogspot.in/2014/09/competition-for-amul.html
 CHAPTER-I
INTRODUCTION
 CHAPTER-II
VISION,MISSION AND
OBJECTIVES
CHAPTER-III
HISTORY
 CHAPTER-IV
SUCCESS STORY
 CHAPTER-V
ROADBLOCKS AND
FEASABLE SOLUTIONS
 CHAPTER-VI
FUTURE PROJECTIONS
CHAPTER-VII
CONCLUSIONS
OF THE STUDY
CHAPTER-VIII
PROFESSION
OUTCOME