A Project Report On A Study On Amul Taste of India: Vikash Degree College Sambalpur University, Odisha
A Project Report On A Study On Amul Taste of India: Vikash Degree College Sambalpur University, Odisha
A STUDY ON AMUL
TASTE OF
INDIA
SUBMITTED TO
GUIDED BY SUBMITTEDBY
MISS SONU PRADHAN URMILA BISWAL
ROLL NO-S17316COM034
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DECLARATION
I hereby declare that this Project Report titled “A STUDY ON AMUL TASTE OF INDIA” submitted by me to the
Department “BACHELOR OF COMMERCE” is a bonafide work under taken by me and it is not submitted to any
other University or Institution for the award of any degree diploma / certificate or published any time before.
Date
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ACKNOWLEDGEMENT
On the way outset of this report, I would like to extend my sincere & heartfelt obligation towards all personages who
have helped me in this endeavor. Without their active guidance, help, cooperation & encouragement , I would not
have made headway in the project.
I am extremely thankful and pay my gratitude to my faculty guide MISS SONU PRADHAN for his valuable
guidance and support on completion of this project in its presently.
I extended my gratitude to SAMBALPUR UNIVERSITY for giving me this opportunity. At least but not least
gratitude goes to all my friends who directly or indirectly helped me to complete this project report.
Any omission in this brief acknowledgement does not mean lack of gratitude.
Thanking You
URMILA BISWAL
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CERTIFICATE
This is to certify that, URMILA BISWAL, a bonafide student of B.COM 6TH SEMESTER, VIKASH DEGREE
COLLEGE, SAMBALPUR UNIVERSITY, bearing roll no. S17316COM034 has successfully completed the project
on the topic “AMUL TASTE OF INDIA” under the guidance and supervision of MISS. SONU PRADHAN
(LECTURER IN COMMERCE) for the partial fulfillment of the degree i.e. “BACHELOR IN COMMERCE”.
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CONTENT
S NO
PAGE NO
3 CMMF:AN OVERRVIEW 8
4 GCMMF:CURRENT 9-10
6 AWARDS 13-15
8 AMUL YATRA 17
11 AMUL PALOURS 19
12 SWADESHI 19-20
14 EXPORT 24-25
18 INTERVIEW 28-30
19 CONCLUSION 31
20 BIBLIOGRAPHY 32
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AMUL – TASTE OF INDIA
INTRODUCTION:-
Amul began the dairy cooperative movement in India and formed an apex cooperative organization, Gujarat Co-
operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.2 million milk producers
in Gujarat, India. Amul was formally registered on December 14, 1946. The brand name Amul, sourced from the
Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand. Some cite the origin as
an acronym to (Anand Milk Union Limited).The Amul revolution was started as awareness among the farmers. It grew
and matured into a protest movement that was channeled towards economic prosperity.
ORGANISATION:-
name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd.
(GCMMF), which today is jointly owned by some 2.41 million milk producers in Gujarat, Amul is a dairy cooperative
movement in India. It is a brand India. It is based in Anand town of Gujarat and has been a sterling example of a co-
operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate
model for rural development. Amul has spurred the White Revolution of India, which has made India one of the largest
milk producers in the world. It is also the world's biggest vegetarian cheese brand. Success of Kaira District Co-operative
Milk Producers' Union Limited and setting up of District Co-operative Milk Producers' Unions needed a state-level
organization for entire Gujarat. That leads to creation of Gujarat Cooperative Milk Marketing Federation (GCMMF).
RANGE OF PRODUCTS:-
Amul's product range includes milk powders, milk, butter, ghee, cheese, chocolate, ice cream, cream, shrikhand,
paneer, gulab jamuns, basundi, Nutramul brand and others. . Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray,
Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya In January 2006,
Amul plans to launch India's first sports drink Stamina, which will be competing with Coca Cola's Powerade and
PepsiCo's Gatorade.
In January 2006, Amul plans to launch India's first sports drink Stamina, which will be competing with Coca Cola's
Powerade and PepsiCo's Gatorade Amul is the largest food brand in India with an annual turnover of US $868 million
(2005-06). Currently Amul has 2.41 million producer members with milk collection average of 5.08 million litres/day.
Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China,
Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded,
but now it has fresh plans of flooding the Japanese markets. Other potential markets being considered include Sri Lanka.
REVOLUTIONARY WORK:-
In 1996 Amul was one of the first major organizations in India to have a website. This site has been used both to
develop an intranet of Amul distributors as well as a cyber-store for consumers, one of the first examples of e-commerce
activity in India. The CEO of Amul, Mr. B M Vyas, recently said, "Amul is not a food company, it is an IT company in
the food business". He was recognizing that the most efficient way of building links between milk producers and
consumers so as to provide the best returns for both is through IT innovation.
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Amul has been able to withstand the onslaught of private and foreign players in the dairy industry and has also been
able to export products in limited quantities. The success of Amul resulted in similar organizations being setup by state
governments throughout India, most of which had reasonable success. Examples are Vijaya in Andhra Pradesh, Aavin in
Tamil Nadu and other
The Kaira District Co-operative Milk Producers' Union Limited began pasteurizing milk for the Bombay Milk
Scheme in June 1948. By the end of 1948, more than 400 farmers joined in more Village Society, and the quantity of
milk handled by one Union increased from 250 to 5,000 liters a day. The success of Amul was instrumental in launching
the White Revolution that resulted in increased milk production in India. It is officially termed as Operation Flood by
Amul. The breakthrough technology of spray-drying and processing buffalo milk, developed by Mr. H.M. Dalaya, was
one of the key factors that contributed to the Revolution.
Every day Amul collects 447,000 litres of milk from 2.12 million farmers (many illiterate), converts the milk into
branded, packaged products, and delivers goods worth Rs 6 crore (Rs 60 million) to over 500,000 retail outlets across the
country. Its supply chain is easily one of the most complicated in the world. If we are visit to any Amul or Gujarat
Cooperative Milk Marketing Federation (GCMMF) office a photograph of Mahatma Gandhi will be missing but we can
certainly see one particular photograph showing a long line of Gujarati women waiting patiently for a union truck to
come and collect the milk they have brought in shining brass matkas. This makes the farmers or the member of the
organization of the organization how to prevent the milk from souring. Hence, Amul takes various initiatives to make the
farmer or the producer understand how to provide service to the consumers with the only resource available with them
i.e. milk a perishable one. The prominent display of picture states the message”
At the time Amul was formed, consumers had limited purchasing power, and modest consumption levels of milk and
other dairy products. Being a co-operative organization Amul adopted a low-cost price strategy to make its products
affordable and attractive to consumers by guaranteeing them value for money. Amul also introduced higher value
products. Beginning with liquid milk, Amul enhanced the product mix through the progressive addition of higher value
products while maintaining the desired growth in existing products.
Despite competition in the high value dairy product segments from firms such as Hindustan Lever, Nestle and
Britannia, GCMMF ensures that the product mix and the sequence in which Amul introduces its products is consistent
with the core philosophy of providing milk at a basic, affordable price.
Introduction:-
access to markets and to utilize the benefit for their efforts came together in 1946 and formed the Gujarat
Cooperative Milk Marketing Federation. The organization is situated in the village of .A group of farmers keen to free
themselves from intermediaries and to gain Anand, the Kaira District Milk Cooperative Union (better known as Amul)
which has now been expanded exponentially. GCMMF joined hands with other milk cooperatives, and the Gujarat
network now covers 2.12 million farmers, 10,411 village level milk collection centers and fourteen district level plants
(unions) all under the overall supervision of GCMMF. The GCMMF is been particularly been recognized for the
beneficiary of the farmers. The organization mainly helped to transform the small farmers and contribute mainly for the
development of the society. Markets, then and even today are primitive and poor in infrastructure. Amul and GCMMF
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acknowledged that development and growth could not be left to market forces and that proactive intervention was
required. Two key requirements were identified that are:
1. Sustained growth for the long term would depend on matching or maintained balance between supply and
demand. It would need heavy investment in the simultaneous development of suppliers and consumers. Effective
management of the network and commercial viability would require professional managers and technocrats.
2. To implement their vision while retaining their focus on farmers, a hierarchical network of cooperatives was
developed, this today forms the strong and healthy supply chain behind GCMMF’s endeavors. The vast and complex
supply chain stretches from small suppliers to large fragmented markets.
3. Management of this network is made more complex by the fact that GCMMF is directly responsible only for a
small part of the chain, with a number of third party players (distributors, retailers and logistics support providers)
playing large roles. Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by low
consumer prices supported by a low cost system.
CMMF: AN OVERVIEW
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Cattle feed manufacturing Capacity: 2340 Mts per day
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It
is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and
also serve the interest of consumers by providing quality products which are good value for money. The table mentioned
drawn below makes us understand about the members in the GCMMF organization, village societies, milk handling
capacity and various processes related with the collection capacity
GCMMF is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in
Gujarat, which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing
quality products, which are good value for money. GCMMF markets and manages the Amul brand. From mid-1990's
Amul has entered areas not related directly to its core business. Its entry into ice cream was regarded as successful due
to the large market share it was able to capture within a short period of time - primarily due to the price differential and
the brand name. It also entered the Pizza business, where the base and the recipes were made available to restaurant
owners who could price it as low as 30 rupees per pizza when the other players were charging upwards of 100 rupees.
The sales turnover of the GCMMF from 1994-2006 is been represented below which helps to get a clear view of the
earnings of the company, GCMMF is today nation's largest food company with an annual turnover exceeding Rs 2300
Crores.
To improve the farmer members' living standards and to facilitate affordable Internet access services including VOIP
Net telephony, the district union has also become a local Internet Service Provider (ISP) using these Village Information
Kiosks. Today the services are subsidized but
The goal is for the kiosks to become self-supporting Markets today are primitive and poor in infrastructure. Amul and
GCMMF acknowledged that development and growth could not be left to market forces and that proactive intervention
was required. Two key requirements were identified that are:
Sustained growth for the long term would depend on matching or maintained balance between supply and
demand. It would need heavy investment in the simultaneous development of suppliers and consumers. Effective
management of the network and commercial viability would require professional managers and technocrats.
To implement their vision while retaining their focus on farmers, a hierarchical network of cooperatives was
developed, this today forms the strong and healthy supply chain behind GCMMF’s endeavors. The vast and complex
supply chain stretches from small suppliers to large fragmented markets.
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Management of this network is made more complex by the fact that GCMMF is directly responsible only for a small
part of the chain, with a number of third party players (distributors, retailers and logistics support providers) playing large
roles. Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by low consumer
prices supported by a low cost system.
Manthan has been sponsored by 500,000 farmers of Gujarat, constituents of the Gujarat Co-operative Milk Marketing
Federation. This is the first time in India that a feature film has been financed by farmers. Several new trails have been
blazed by them; the "Anand Pattern" of dairy development, which today has been adopted all over the country, was also
their contribution. Their dairy cooperatives illustrated how small farmers could triumph over adversity. Appropriately, the
theme of "MANTHAN" is the churning up of the social structure when the milk cooperative movement erodes the
power of traditional bosses in a village.
AMUL PRODUCTS
AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a
quality control expert in Anand. Variants, all meaning "priceless", are found in several Indian languages. Amul products
have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul
Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a
leading food brand in India. (Turnover: Rs. 37.74 billion in 2005-06). Today Amul is a symbol of many things of high-
quality products sold at reasonable prices of the genesis of a vast co-operative network of the triumph of indigenous
technology of the marketing savvy of a farmers' organization. Amul represents a proven model for dairy development.
Amul butter is most commonly used in every household. Amul is made from butter common salt and permitted
natural colour. It is been marketed from last from 4 decades. Amul butter composes of fresh cream, milk fat, moisture,
salt as well as curd in specific proportions. Amul isstandardized product and has BIS specifications. The calorific value is
720 kcal./100g.
2. AMUL LITE : A Low Fat Low Cholesterol Bread Spread
Unlike Butter & Margarine, Amul Lite is a low-fat, low-calorie & low-cholesterol bread spread, hence a healthier
substitute. It contains 26% less fat and calorie content as compared to butter or margarine.
Unlike Butter & Margarine, Amul Lite is a low-fat, low-calorie & low-cholesterol bread spread, hence a healthier
substitute. It contains 26% less fat and calorie content as compared to butter or margarine. This product is specifically
prepared for diet considering population. It is considered as healthier substitutes as it contain 26% less fat and calorie.
Helps to maintain slim and trim without sacrificing. Amul lite is suitable for old age people as the heart disease chances
are been reduced. It contains Omega-6 and Omega-3. It helps to maintain healthy and cholesterol levels are kept at
minimum. This product is certified by AGMARK for quality. Tastes best with toast, sandwiches and bread. It can also be
used for topping on paranthas, paav bhaji, pulav, khichadi, and soups and also for household baking, preparation of cake
etc.
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4. AMULSPRAY INFANT MILK FOOD is made from partially skimmed milk, sugar, minerals and vitamins.
Amul has introduced various powder milk products the Amul spray infant milk food is made from partially
skimmed milk, sugar, minerals and vitamins It is composed of milk proteins, fats and carbohydrates. It has
various vitamins such as A,D,K,B,C and various minerals like calcium, magnesium, phosphorous, iron,
copper, iodine. This product is been marketed since 25 years. This product is formulated on guidelines set by
Codex Commission of WHO/ FAO
AMUL INSTANT FULL CREAM MILK POWDER (Spray Dried) is made from Toned Milk, Vitamins A, and D. It
composes of milk fat 26%, protein 26%, carbohydrates 37%, minerals 6%, and minerals 6%, moisture 3%. This product
is highly acceptable product made from the most modern dairy plant through a special formulation. It meets the
requirements laid down under PFA rules for processed Cheese Spread.
Amul's Emmental Cheese with holes can be traced back from 1290 AD. The tradition of cheese-making has
flourished in the skilled hands of sennen. This famous cheese with a Swiss taste owes its name to the Emmental valley,
near Berne in Switzerland.
This famous cheese with a Swiss taste owes its name to the Emmental valley, near Berne in Switzerland. Emmental is
actually a `live' cheese, i.e. it has live bacteria, which continue the ripening process, even after the cheese is packed and
placed on the retail shelves. However, it is a 100% vegetarian coagulating enzyme. The composition of Emmental cheese
is of moisture 43%, fat 46% and salt 1.5% this product is to be stored at ordinary refrigeration temperature i.e. 4 degrees
Centigrade to 8 degree Centigrade. Amul Emmental Cheese is available in a 200 gm pack.
moisture 0.3%. the calorific value 900 kcal/100g. Amul sagar pure ghee is made from fresh cream. It has a typical
rich aroma and granular texture. It is an ethnic product made by dairies with decades of experience being a rich source of
Vitamin A, D, E and K. Meets AGMARK SPECIAL GRADE specification of the AGMARK scheme (1938) of Govt. of
India.
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8. Mithai Mate
AMUL MITHAI MATE SWEETENED CONDENSED MILK is made from Sugar & Milk solids. It comprises of
Sweetened Condensed Milk, Total Milk Solids, Fat, Added Cane Sugar, Partly Skimmed Sweetened Condensed Milk,
Total Milk Solids, Fat, and Added Cane Sugar. It is a free flowing product and has a pleasant flavour. The product can be
used to manufacture Ice Creams, Confectioneries like Toffees, Biscuits and Sweets. It Meets BIS standards: IS: 1166.
9. Amul Shrikhand
AMUL SHRIKHAND is made from Chakka, Sugar and flavoring agents/fruits (Elaichi, Saffron, Mango pulp). It
contains fat, milk solids, and mango pulp. The Shrikhand is most commonly used at festive occasion as a sweet desert.
Most processes are undertaken in order to improve the taste of these Shrikhand and it acts as a auspicious feed during
festivals. Shrikhand is a traditional sweet. It is the only pasteurized Shrikhand which is been made from most modern
dairy equipment which helps the Shrikhand of an extended shelf life with smooth texture. The calorific value is 260
kcal./100g. the product meets BIS specification No.IS:9532-1980.
CREAM is made from Milk and Milk products, Sugar, Stabilizers & Emulsifiers. It composes of milk fat, total solids,
sugar, acidity, protein etc. Calories present are per 100 ml -196.7 kcal Various verities of Ice Cream can be made from the
basic mix by addition of required amount of permissible colors and flavour. Dry fruits and nuts would be used for making
premium varieties of Ice Cream. Various flavors of Amul ice-cream are as follows:-
Vanila, Strawberry, Pineapple, Orange, Rose, Mango, Chocolate, Honey-Dew-Melon, Tutti Frutti, Litchi, Kesar Pista,
Kaju Draksh, Butterscotch, Chocochips, Rajbhog and Cashew Break.
This is a ready-to-eat product and hence it liked by a majority of people. People prefer to this product than the mix of
Gulab Jamuns available. The best quality of the food attracts the people as the nature, moistness and softness is accepted
which enforces the people to buy the product.
AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, Chocolate mass. The composition is as
follows Milk Fat, Sugar, Total Fat (Milk Fat + Cocoa Fat), Cocoa Solids, and Milk Solids and meets all requirements
under the PFA for boiled sugar confectionary.
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15. Amul Basundi
Ingredients:-
Amul Basundi is concentrated milk based product with added sugar, flavors and condiments and contains Fat - 11%,
Milk Solids - 25%, Sugar - 9%. The calorific value is 205 Calories per 100ml. Amul Basundi is available in 500 ml and 1
Liter aseptic Tetra Pack. The Basundi is prepared from best quality, rich in nutrition and free from bacteria. It can be
stored in room temperature and maintains a long shelf life(6 months from date of manufacturing ). It is economically
priced and available round the year. Amul Basundi is accepted and can be served as can be served as food companion or
dessert. It also helps to make Kheer, Payasam, Gajar Halwa, Seviya, Kulfi, Rabdi, Milk Shakes delicious
16. Nutramul
NUTRAMUL MALTED MILK FOOD Amul's Nutramul has the highest protein content among all the brown
beverage powders sold in India and is the only one in India with BIS certification mark. Amul's Nutramul is made from
malt extract, milk solids, sugar, cocoa powder, emulsifying agents, sodium bicarbonate and added flavour. It composes of
fat carbohydrates starch, sugar protein and cocoa. Carries BIS certification mark IS: 1806-1975 Type II.
Amul Shakti is a unique combination of Milk and natural goodness of Kesar (Saffron) & Almond. Amul Shakti, a
complete food in a drink, is ideally balanced for the nourishment and health of the entire family. It contains more of Milk
Protein and Milk Calcium which are easily digested and assimilated in the body. Amul Shakti contains essential Amino
Acids, Vitamins, Minerals and Micronutrients needed for building up internal immunity and maintaining good health.
The product is available in two flavors Kesar-Almond and Chocolate. Amul Shakti contains essential Amino Acids,
Vitamins, Minerals and Micronutrients needed for building up internal immunity and maintaining good health. The
product is available in two flavors Kesar-Almond and Chocolate and in Glass Jars - 500 gm & 200 gm Refill Boxes - 500
gm & 200 gm Pouches - 50 gm & 25 gm.
AWARDS
Amul has always produced qualitative products. The company maintains its total quality management in order to
produce best quality products. The products produced by the company were always been appreciated by the consumers.
In fact we can state that Amul has maintained a tradition to improve its performance and get noted amongst the top
companies by bagging the most worthy prizes from business ceremony by getting these awards. The list of awards
received by Amul for their tremendous performance states the various measures adopted by the company in order to
increase the sales. Following are the
three big awards which got by Amul for their best performances are:
According to Shri B. M. Vyas, Managing Director, GCMMF, this recognition has once again reiterated GCMMF's
commitment to quality and excellence. The biggest strength of GCMMF is the trust it has created in the minds of
consumers regarding the quality of its products. GCMMF and its brand Amul stand for guaranteed purity for whatever
products it produces, he added.
GCMMF has bagged this award for adopting noteworthy quality management practices for logistics and procurement.
Over the years, it has established an efficient supply chain that penetrates even the remotest corners of the country.
The information systems of the Federation are comprehensive and include details on product quality, delivery
performance, supplier quality, disaster recovery and all essential commercial areas, the citation reads.
The Ramakrishna Bajaj National Quality Award is based on framework and principles almost similar to the Malcolm
Baldrige Award that is given by the President of the United States to businesses - manufacturing and service, small and
large - and to education and healthcare organizations that apply and are judged to be outstanding in seven areas:
leadership, strategic planning, customer and market focus, information and analysis, human resource focus, process
management, and business results.
receives
INTERNATIONAL CIO 100 AWARD FOR RESOURCEFULNESS
GCMMF is a winner of the prestigious international CIO 100 award from IDG's CIO Magazine, USA. The 2003 CIO
100 award recognizes the organizations around the world that excel in positive business performance through resourceful
IT management and best practices.
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This CIO International IT excellence Award has recognized the Cooperative Movement & its Leadership under the
"Amul" brand, initiated by Dr. V Kurien, Milkman of India, who’s main Motto is to build Indian Society economically &
literally strong through innovative cooperative resourceful network, so as to provide quality service & products to the end
consumers and good returns to the farmer members.
This award has also given direction that IT need to be encouraged & adopted more & more at grass root level and
bridge the digital divide through proper training, re-training so as to bring radical change & benefit to the Indian society.
It has also recognized the Managing Director, Mr. B M Vyas, who has taken IT initiative by setting the direction
"GCMMF as IT Company in Food business". It has also inspired all the employees of GCMMF Enterprise to sustain
the challenges as a "Change Agent" by excelling their IT skills in order to transform the people around them towards IT
Integration (e-Vision) on both the ends of supply chain (Village level Farmer to end consumer). This award also
motivated the each & every member dairy, Amul's wholesale distributors, retailers, transporters and suppliers who have
supported whole-heartedly the IT initiatives of GCMMF.
The Gujarat Co-operative Milk Marketing Federation (GCMMF) has been honoured at the CIO 100 Symposium &
Award Ceremony on August 19, 2003, at the Broad moor in Colorado Springs, Colorado, USA. Shri Subbarao Hegde,
Head of IT had been to USA and received the said Award on behalf of GCMMF.
In a glittering function organized at Vigyan Bhawan, New Delhi on 12th November, 2001, Shri Shanta Kumar,
Hon'ble Minister of Consumer Affairs, Food and Public Distribution gave away the awards to Shri B.M. Vyas, MD of
GCMMF.
AMUL COMPANY
Introduction:-
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As AMUL concerned with the manufacturing of perishable products it had a bird eye on the quality of the products
produced by the company. In today’s stiff competition it tried to strengthen its functional processes. Emerging trends of
liberalization and impact of WTO has led to focus on Total Quality Management. Realizing that unless the TQM
initiatives is been accepted by all business partners, the same would remain ineffective. As a very unique measure Amul
extended all the TQM initiatives to its business partners whether it was the farmer producer in the village or a wholesale
distributor in a metro town or its most sophisticated production unit. A number of TQM initiatives which run successfully
across the organization are been mentioned below:-
1. Kaizen
2. Housekeeping
Shri B.M. Vyas, Managing Director, championed this movement realized way back in 1994 that with emerging
competition, doing business would become more exciting yet extremely competitive which would require at times not
only a whole set of new skills and competencies but quick adaptability to change without much stress or turbulence. The
initiation of TQM was to work with the well known quality management initiatives which have proven to be effective
elsewhere to create a culture of transparency, openness and leadership in the organization.
1. Kaizen:-
Employees of GCMMF have done more than 1.60 lakhs Kaizen since May, 1995 which has impacted in bringing in a
culture of continuous improvement.
1. Housekeeping:-
2. The housekeeping initiatives have helped keeping the offices/warehouses neat, clean and more productive, be
it is the Office premises or the godowns or even Computers.
2. 150 SGA’S have been carried out in cross functional groups to address the problem and pain areas of the
organization i.e. issue of sales, marketing, HR or IT. The organization has implemented a customized ERP for seamless
integration of its 40 odd sales offices from Jammu to Port-Blair and Head Office. All its wholesale dealers are
computerized and GCMMF is moving on a B2B model for integration interface with its dealers be it for placing order for
buying its products, sharing information or for tracking logistic of dispatch/receipt of goods.
GCMMF has also embarked upon for last 4 years, 'Hoshin Kanri' a employment initiative where more than 100
Officers/Heads
participate twice in a year to review its business goals/processes and implement new initiatives. These are further
cascaded to the wholesale dealers in different territories in a two day exercise called Vision Mission Strategy (VMS)
Workshop. These initiatives have resulted common understanding of goals, eliminating communication barrier.
EFFECTIVENESS:-
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The initiative of TQM six years back has made the organization efficient whether it be in launch of brands, or in
implementing ERP's or expanding its distribution network. More striking feature of GCMMF's TQM experience is the
integration of its business linkages at the village level to the forward linkage through its sales offices/wholesale dealers in
the market.
AMUL YATRA
One of the unique initiatives has been in terms of involvement of its wholesale dealers in a common platform to
address issues of market/customers. All the wholesale dealers from across the country have visited Anand in a unique
programme called "AMUL YATRA". In the next phase, the organization has already started inviting the salesmen of these
wholesale dealers for this programme. It also intends to invite the top retailers of various cities/towns to Anand. The
purpose is not as much to orient them to GCMMF's business plans, but to inculcate a super-ordinate goal in their heart
that when they are associated with AMUL, they are working for a modest milk producer in the rural hinterland of the
country and that is what true progress is about. GCMMF has more than 200 Amul Quality Circles in the country where
all the above wholesale Dealers meet in group on every third Saturday of the month to discuss their business, quality
initiatives and also pain areas. This has impacted tremendously not only in communication but also in improving the
transparency in the organization.
product is being commoditized and there is an increase in the power of retails, information explosion that has given
the consumer an unusual power. This has ensured that without an efficient sales force companies cannot survive.
Even when companies focus on sales effort, concept like segmentation should not be overlooked. For
example, there has been lot of effort on increasing credit card usage in India. Credit card now comes free for life and
sales people are just selling credit cards like chocolates. Is it not wise to look at whether the consumer wants a credit
card? Does he like to use one? Does he have the ability to pay back? Recently a news channel showed a mutual fund
agent giving discounts to a client from his brokerage. What does that mean? It simply means that we are not practicing
marketing. We are just selling....
Many business gurus’ are saying that,” customers are the god or king of the market”. It can be understood from the
fact that the customer is not the king as the companies want the consumer to be loyal. The real fact is that no company
regard customer as the king. Everyone in the market cares about the money. Marketing is creating and exchanging goods
of value between company objectives are achieved in that process. So what is happening now is this exchange process.
Marketers tried to attract customersby treating them well and thus came the cliche “customer is the King". It is only
economics in play. It is now the choice of the customer that whether he wants himself to be treated as a king (and pay for
it).
After realizations of the big issue Amul stated to make the marketing and sales promotion strategy to overcome the
problem. Amul is the largest co-operative movement in India with 2.2 million milk producers organized in 10,552 co-
operative societies in 2003-2004. The country's largest food company, Amul, is the market leader in butter, whole milk,
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cheese, ice cream, dairy whitener, condensed milk, saturated fats and long life milk. Amul follows a unique business
model, which aims at providing 'value for money' products to its consumers, while protecting the interests of the milk-
producing farmers who are its suppliers as well as its owners. Despite being a farmers' co-operative, Amul has given
multinationals a run for their money. In butter, cheese and saturated fats, Amul has remained the undisputed market
leader since its inception in 1955, by offering quality products at competitive prices. In other categories, Amul has
nullified its late mover disadvantage through aggressive pricing, better quality, innovative promotion, and superior
distribution.
a) PRODUCT:-
Tracks consumer needs & their changing lifestyles, & accordingly develops products to suit their needs. Product
quality plays a paramount role & so does packaging.
a) PRICING:-
The main USP of Amul brand is its low pricing. It hits at the transnationals by reducing its prices on its product
portfolio. The competitive advantage is its “backward integration” strategy, which helps substantially in cost reduction.
b) PLACE:-
Any food company requires a dedicated cool chain network. Amul boasts of the largest cold chain network (18000
refrigerators) in India, as compared to any other company. It is surprising to note that it sells pizzas in rural markets too!
c) PROMOTION:-
Amul spends very less on its advertising budget, but spends it very effectively. It has the power of an umbrella brand
Amul, which is highly respected brand name & enjoy the trust of 1000 million households. Thank to its brand mascot, the
Amul girl, the co-operative has been able to get away with spending just one per cent of its revenues on advertising. In
contrast, its competitors spends anywhere between 7 to 10 per cent on advertising. Amul positioning is “Value for
Money”. It uses the services of Da Cunha Associates & FCB Ulka for its advertising efforts.
Advertising:-
An Amul butter ad on Pakistan's Kargil War fiasco. The image shows the "Amul baby" in between George Fernandes
and Vajpayee.
Its advertising has also started using tongue-in-cheek sketches starring the Amul baby commenting jovially on the
latest news or current events. The pun in her words has been popular. The Amul ads are one of the longest running ads
based on a theme, now vying for the Guinness records for being the longest running ad campaign ever. Sylvester
daCunha, was themanagngdirector of the advertising agency, ASP, that created the campaign in 1967 whose charm has
endured fickle public opinion, gimmickry and all else.
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Mascot
AMUL PALOURS:-
8. Delhi Police
"Amul Utterly Delicious" parlours are an excellent business opportunity for investors, shopkeepers and organizations.
In order to come closer to the customer, Amul have decided to create a model for retail outlets, which would be known as
"Amul Preferred Outlets"(APO).
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According to industry analysts, this nascent segment will witness a lot of action in 2006--with the entry of new
players. "Most companies now want to cash in on the growing consumerism in India.
As lifestyles change, consumers opt for energy and sports drinks to stay fit. At present, Red Bull which is priced at Rs
75 is the only major player in this segment," said analysts. On Amul's foray into the sports drinks sector, RS Sodhi,
general manager, GCMMF informed the company plans to launch 'Stamina' in select metros, which include Mumbai,
Chennai, Delhi and Ahmedabad - to start with." Stamina will the first sports drink from India. With lemon flavour, it will
be available in Tetra Packs and is priced at Rs 12(for 200 ml). Two years ago, we entered flavored milk segment,” said
Mr. Sodhi.
According to analysts, with competitive pricing strategy, Amul will score over other sports drinks in India, which are
priced above Rs 75.
As for Coca-Cola's strategy for 'Powerade' in India, the company spokesperson was reluctant to divulge details on
coke's new initiatives. "We are exploring opportunities to bring in new beverages targeted at different segments in the
New Year," he said.
The vital question is -Will a swadeshi brand like Amul take on global brands in the sports drinks sector in India?
CADBURY
HINDUSTA
NESTLE N LEVER
AMUL
1. ICE-CREAM:-
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Expanding market with Building a national chain ofretail chain
snowcap ice-cream parlours
Launched Fundoo to
combat HLL’s max
1. CHOCOLATES / CONFECTIONERY:-
Planning to enter
value- added segments
2. PIZZA:-
AMUL NESTLE
To enter the market with three variants Creating entry barriers for amul through
price and cross promotions
4. CURD:-
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AMUL NESTLE MOTHER DAIRY
Expanding reach by Means to compete its dairy Leveraging its liquid milk
aligning with other milk co- range distribution network in Delhi to
operatives sell curd
6. DAIRY WHITENERS:-
AMUL BRITANNIA
Wants to dominate market through Amulya Focusing on the geographical market with
milkman
7. BUTTER:-
AMUL NESTLE
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Emphasizing price leadership to drive Holding prices of milkmaid and heavily
Mithai-Mate to market dominance cross promoting the product
9. CHEESE:-
AMUL NESTLE
Wants to create institutional market for its Focusing on top A and B class outlets and
mozzarella cheese seeking to maintain its leadership in cheese
slices
AMUL BRITANNIA
Plans to create a market for branded paneer Moving from frozen to refrigerated paneer
by launching non-diced product
EXPORT
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GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. GCMMF has
received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 9 years.
Consumer Packs:-
Amul Pure Ghee
Amul Butter
Amul Shrikhand
Amul Mithaee Gulabjamun
Nutramul Brown Beverage
Amulspray Infant Milk Food
Amul Cheese
Amul Malai Paneer
Amul UHT Milk (Long Life)
Amul Fresh Cream
Bulk Packs:-
Amul Skimmed Milk Powder
Many of our products are now available in the USA, Gulf Countries and Singapor
In keeping with the popularity of the brand abroad, GCMMF has revised its export target for this fiscal by Rs 50 crore
to Rs 200 crore. Says GCMMF managing director B M Vyas, “We have had a distributor in Japan since 1994 but no
major presence in that country. But a few days ago a delegation from Japan, under the aegis of Agriculture and Livestock
Industry Corp (ALIC), visited our facilities at Anand (Gujarat) and were pleasantly surprised with the sheer scale of our
dairy operations. I am hopeful that some of our products, such as milk powder and cheese, could be exported to Japan
soon.”
Then, GCMMF is also looking at Sri Lanka as one of its next export destinations. Amul products are already
available on shelves across several countries, including the US, China, Australia, West Asian countries and Africa.
While Vyas declined to reveal other overseas markets that the federation is targeting now, he said that demand for
dairy products from India is expected to grow in many overseas markets.
Claiming that buoyant exports help the company maintain prices in the domestic market, Vyas said that in times of
milk surplus, having ready export markets allow the federation to save itself from making any distress sales.
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GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include pouch milk, ultra heat treated (UHT)
milk, ice-cream, butter, cheese and buttermilks.
KANAN DAIRY:-
Kanan Group is a fast growing group with interests in the Fashion and food Industry. Kanan Group of Companies, a
trusted name in the United States, brings a wide verity of products and services to consumers. In partnership with Amul,
we are dedicated to bring in your home, the favorite Amul products.
These dairy-based products are imported to the United States throughout the year and sold to more than 1000 ethnic
grocery stores around the country through KDP’s network of 7 distributors. While awaiting distribution, the Amul
products are stored in KDP warehouses in New Jersey, Chicago, and the Los Angeles area.
By the end of the year 2005, Kanan Dairy plans to market three more dairy-based 'Amul' products.
SOCIAL AWARENESS
AMUL RELIEF TRUST:-
A devastating earthquake (Richter scale – 7.9) hit Gujarat on 26th January 2001. The epicenter of the quake was
located in Kutch district. It caused death of thousands of people, tens of thousands were injured, hundreds of thousands
were rendered homeless and damage of billions of Rupees was done.
GCMMF formed a specific organization named “Amul Relief Trust” (ART) under the Chairmanship of Dr. V.
Kurien in 2001 with a donation of Rs. 50 Millions for reconstruction of the school buildings damaged in the 2001
earthquake in the Kutch area.
The Trust reconstructed 6 schools damaged by the above earthquake at a cost of Rs. 41.1 millions in Kutch area. Four
of these schools started re-functioning from the last two academic sessions and the other two schools from the current
session.
1. A school reconstructed by Amul Relief Trust in the earthquake affected Ratadia Village in Mundra Taluka of
Gujarat.
2. A school reconstructed by Amul Relief Trust in the earthquake affected Nana Asalia Village in Mundra Taluka of
Gujarat
3. A school reconstructed by Amul Relief Trust in the earthquake affected Devpar Village in Mandvi Taluka of
Gujarat.
4. A school reconstructed by Amul Relief Trust in the earthquake affected Toda Village in Mundra Taluka of
Gujarat.
5. A school reconstructed by Amul Relief Trust in the earthquake affected Kathada Village in Mandvi Taluka of
Gujarat.
6. A school reconstructed by Amul Relief Trust in the earthquake affected Kathada Village in Mandvi Taluka of
Gujarat.
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A school reconstructed by Amul Relief Trust in the earthquake affected Ratadia Village in Mundra Taluka of
Gujarat.
A school reconstructed by Amul Relief Trust in the earthquake affected Nana Asalia Village in Mundra Taluka
of Gujarat.
A school reconstructed by Amul Relief Trust in the earthquake affected Devpar Village in Mandvi Taluka of
Gujarat.
A school reconstructed by Amul Relief Trust in the earthquake affected Toda Village in Mundra Taluka of
Gujarat.
A school reconstructed by Amul Relief Trust in the earthquake affected Moti Bhadai Village in Mandvi Taluka
of Gujarat.
A school reconstructed by Amul Relief Trust in the earthquake affected Kathada Village in Mandvi Taluka of
Gujarat.
This is an attempt to include the School Segment as part of our Amul Food Festival. During 2005-06, we have
instituted an Amul Shakti Vidya Shree Award, to be given to the Class 10 topper of schools.
Our mission is to create a strong association of Amul Shakti with Academic performance at the school level.
The Objective is to initiate and institutionalize an award in order to recognize the academic effort of the
Class 10 school topper in the State/ Central Board.
Examinations.
Trophy
Certificate
To be eligible for the Amul Shakti Vidyashree Award the student must have passed Std.10 in the academic
year 2005-06 at the State or Central Board Examinations in any medium and must have scores highest aggregate marks in
the school.
The Application Form along with an attested copy of the student’s mark-sheet and passport size photograph is
to be sent with a covering letter on the schools letter-head. The covering letter must also contain a brief write-up of the
school. Application for the Award is also available in the Times of India, Times Life Supplement, dated 29thMay, 2006.
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Entries to reach Shri BR Mallick, Manager (Mktg.), GCMMF Ltd., PO Box No.10, Anand 388 001, Gujarat
by 30th June, 2006
From the entries received, students scoring the highest aggregate marks will be selected for the Awards.
In 1966, when Sylvester Da Cunha, then the managing director of the advertising agency, ASP,
clinched the account for Amul butter. The butter, which had been launched in 1945, had a staid, boring image, primarily
because the earlier advertising agency which was in charge of the account preferred to stick to routine, corporate ads.
India looked forward to Amul's evocative humour. If the Naxalite movement was the happening thing in Calcutta, Amul
would be up there on the hoardings saying, "Bread without Amul Butter, cholbe na cholbe na (won't do, won't do). If
there was an Indian Airlines strike Amul would be there again saying, Indian Airlines Won't Fly Without Amul.There are
stories about the butter that people like to relate over cups of tea. "For over 10 years I have been collecting Amul ads. I
especially like the ads on the backs of the butter packets, "says one of the regular customers and with these ads have
made an album of them to amuse her grandchildren. She relates the are almost part of our culture. These ads aware of
what is happening around them as it always relates to the social issues .
From the Sixties to the Nineties, the Amul ads have come a long way. While most people agree that
the Amul ads were at their peak in the eighties they still maintain that the Amul ads continue to tease a laughter out of
them.
Road, Ahmehdabad
Road, Ahmehdabad
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INTERVIEW
1. Whom do you consider a leading role of your whole organization?
2. Our employees. Because without work force business can’t survive. We have well qualified employees in the
organization they do hard work for our organization & achieve the objective i.e. better quality of dairy product in
reasonable cost to the cuse
3. Give the information about marketing and sales promotion of Amul products. (If possible state the strategy
relating to marketing and sales promotion of Amul product.) advertisement
I am happy to say the existence of our Amul baby for Amul butter is very popular & very well known to customer. It
very useful for Amul Company to capture the more and more market. Even now we are continuing this advertisement
because this advertisement create brand image in mind of the customer. We also take help of different advertisement
agencies for advertising our different products. As per research conducted by our researcher we make the advertisement
very effective and create market for the products
We are making or producing consumer eatables product. So we have to take many precautions while producing the
product. So we are made compulsion to be maker or the workers who are making the product for wearing the hand gloves
while making the product. And after the production of the products this all product are goes in to quality inspection dept.
for quality inspection and then send it to those products in the market.
During the initial stages of the Amul the Amul company is one of the companies who produced the milk product.
But now we have many competitors in this particular segment like nestle, Cadbury etc but from that nestle is one of
powerful competitors of the company because now nestle acts not only in the chocolate segment but also have entered in
milk and other segment. And today’s competitor’s worlds if we stand in the market then Amul have to prove better than
not only than nestle but also any other company in the market.
Our company produces many items of milk. It requires many processes and it also requires different types of
machinery. Any accident can be possible at any time. So we provide the necessary information about machinery i.e. how
to handle the particular machine etc. to our new as well as old workers about new changes, technology and techniques
available in the factory. So that workers can handle the machine properly and that prevent the accident.
8. Amul has corporate offices and dept in the state like Gujarat etc. so we required different types, different field
of employees. After many interviews the eligible person appointed in the amul. After the appointment we are giving off
job training and also on the job training related to the job to the person who are newly appointed. After giving and having
all potential to that particular person, the person selected for particular job.
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We have seen the performances of the employees if the performance is good then we are giving non monetary as well
as monetary benefits and other facilities to the employees. And motivate and retain the employees. If performance of the
employees is not good due to some problem or reasons then we discuss that particular problem with are employees and
tackle the problem. So good and faithful relationship is been maintained with the employees. Due to that employees think
about the management in positive way. So employees works freely in the organization and automatically efficient work is
carried out. We provide them bonus or various incentives.
10. Do you conduct any training and development sessions for your employees?
Yes, we always conduct training program for our employees. If any new recruitment is done or any new changes, new
technology is introduced in the market then it is very important to introduce his innovation in the organization. Through
training program we introduce new changes in organization. We also conduct the development session for employees but
it is not in large extent.
11. Have you ever faced the problem of labor turnover? How efficiently do you tackle them?
No till now we are not faced the problem of labor turnover because we don’t consider the workers as labourers but
the owners of the organizations. In most of cases employees leave the jobs but we know the importance of the people so
that we always try to retained are employee by way maintaining good relationship with employees, motivation, training
program.
12. Did you have to make any special efforts to make a separate identity in the corporate world?
This answer may be yes or no because I don’t think so, to maintain good quality of products requires special efforts.
But we try to provide better type & quality of products and services to the customer. Amul always try to make better
quality of products. Amul also try to provide the wide variety of products to the customer. So that Amul will be one of the
big and topmost company in the world to provide better quality of variety of dairy and other consumer eatables.
13. Why don’t you choose any “BRAND AMBASSADOR” for your product?
Because better quality of dairy product is one of the brand ambassador of the amul company. So we don’t require
any type of brand ambassador for amul. We think that those appoint brand ambassador for particular product because
the co and its product is may or may not be well known in the market. So that they show their product through the
ambassador. But customer knows the company’s product from last many years only because of quality. So as per our
opinion on brand ambassador is better quality of products it is the only brand ambassador for amul company.
Till now we are not entered in the tele marketing. Because till now Amul not required to market their product though
tele marketing. We are market our product through print media like news paper, magazine etc and also through audio-
visual media like T.V. advertisement.
If any complaints received by the Amul, amul check out from which area complaints is to came. Whatever defects or
expectations made by the customers the inspection and problem solving research study is to be undertaken. And then the
necessary changes, modification are to be done as per the requirement of the customers
Yes, we are entered in the social work but not on largest extent. Amul relief trust is established by the Amul Company
under the chairmanship of Dr. V. Kurien. Through this relief trust the social work is to be undertaken. The earthquake
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occurred in 2001 the Amul relief trust gives the Rs.50 million for the reconstruction of the school buildings. We are also
undertaking the other activities like tree plantation etc.
Amul co wants to make the Amul is one of the leading and topmost company or brand in the world to produce wide
variety dairy products and other consumers eatables in better quality.
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CONCLUSION
Amul plans to be a leader in food business. This 3458 crore co-operative is planning to foray in restaurants, ready-to-
eat curries etc. it also plans to launch ready to drink coffee and tea. The plan of this co-operative is to make Amul, India’s
best known food brand and also to garner a sizable marketplace in 30 countries wherein its products are exported to. The
brand should not be known in milk, butter & cheese but as a food brand. Its numerical target, a turnover in excess of Rs.
10000 crore by 2006.
In words of Dr, verghese Kurien, chairman (GCMMF). Amul is a brand that is trustworthy of 1000 million Indians.
Why should it be seen only as a brand label for butter? Hope, its competitors are listening!
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BIBLIOGRAPHY
Books:
Business Guru’s
Websites:
www.amul.com
www.google.com
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