GENERAL INFORMATION

Introduction Of Dairy Industry

An industry whereby milk and milk products are handled are known as Dairy Industry. Dairy Industry includes all the firms dealing with the processing of milk and manufacturing of milk products and their marketing in industrial scale. Dairy Industry is a very important and the basic industry for country like India. Nearly 70% of the people in India is based on agriculture and most of them have cattle's (cows and buffaloes) in their houses. Indian Dairy Industry is dominated by cooperative sectors for so many years. Indian dairying is emerging as a sunrise industry. India represents one of the world's largest and fastest growing markets for milk and milk products. World focus on India for this industry are because of low cost economy, liberalisation process, low inflation rate, inexpensive labour, largest democracy, no government interference, etc. Dairy industry occupies a prominent position in the industrial structure of India. Dairy industry has very rapidly infrastructure facilities due to which severe bottlenecks have been created in the way of rapid industrialisation. Milk consumption in India has much less than the developed countries. Dairy industry occupies important place in Indian economy. It is one of the consumer goods industries. Its products is more useful items in popular diet, large proportion of Indian population is vegetarian, therefore for milk and milk products assume importance and only source of animal fat in their diet and importance source of animal protein. On the peasant milk producers of Khaira district, Gujarat the NDDB (National Dairy Development Board) was set up under the chairmanship of Dr. Verghese Kuriene in 1970 under the programme, the Anand Dairy of Khaira was developed first. Khaira is one of the India's flushest milk tracts and is distinguished by a famous dairy procurement, processing and marketing co-operative established at Anand in 1946. India has a long tradition of keeping milk animals as a part of the farming household. Animals are cared for highly rated milk and milk products are also greatly valued in the society as a source of good nutrition. Cow is considered to be a sacred animal since time immemorial. Milk is used in most of the rituals. Milk production and consumption is always been a part of Indian culture.

Industrial sector has played a crucial role in the development of Indian economy. Industrialisation holds the embryo of employment and fuller utilisation of resources. After 53 years of independence India has come a long way an her journey towards the goal of industrialisation and has become self-sufficient in respect of the consumer goods. Dairy industry a prominent position in the industrial structure of India. Dairy industry has very rapidly infrastructure facilities due to which severe bottlenecks have been created in the way of rapid industrialisation. Milk is complete a food. Though widely used per capita milk consumption in India was much less than the developed countries the dairymen were also not developed on commercial lines. In 1965, in order to support the farm economy by developing dairy sector on the request by peasant milk producers of Khaira district, Gujarat the NDDB (National Dairy Development Board) was set up under the chairmanship of Dr. Verghese Kuriene. During 1960s, the European countries were facing over production of milk, converted into dried skimmed milk and butter oil for which there was no adequate commercial outlet. In the latter part of 1960s the EEC (European Economic Community offered some part of these stocks as a donation to India through, the aid channels of the WFP (World Food Programme). The aid was to be handled by NDDB reasoned to sell those commodities within India rather than to distribute them as relief, which could be realised for twin purpose of enhancing milk production in India and establishing a national dairy marketing grid. To handle the financial aspects of such a programme the IDC (Indian Dairy Corporation) was set up by NDDB in 1970, the programme 'Operation Flood' or the 'White Revolution' as it is popularly known was launched. The programme was mainly to restructure India's diary industry on the lines of advanced dairying countries in order to enhance productivity and efficiency, while at the same time directing income benefits towards the rural poor. Under the programme, the Anand Dairy of Khaira was developed first. Khaira is one of the India's flushest milk tracts and is distinguished by a famous dairy procurement, processing and marketing co-operative established at Anand in 1946. In 1965, The National Dairy Development Board came to existence & as a result India at pioneers in dairy development.

First union exist in Maharashtra mane Dooth Sagar Dairy then in Baroda Dairy, Valsad has Vasundhara Dairy, Ahmedabad has Utter Dairy & Gandhinagar has Gandhinagar Dairy All these daries make milk, powder, cheese, ghee, butter & other Amuls products. All dairies have 4.6% crores of members jointly trade union has Rs 2200 crores. At the time of independence there were 106 dairy plans in the country. There were 92 liquid milk plants and 60 pilot milk societies. There were 26 product factories and 3 cream industries, 51 dairy projects were in different stage of implementation. In 1984-85 the number of dairy plants went up to 138. By March 1996 there were 72500 dairy co-operative in 1170 milk shades 9.2 million farmers were participated in those societies. * In 1997 India produced 74.3 million tones to occupy 2nd position in the world. * U.P. is to be largest producer of milk in India followed by Punjab, Bihar, A.P. and Rajasthan sharing 34% of the national production. * Bulk of milk production is in rural areas. In urban areas there are only 4% of milk cows and in the cities and town milk buffaloes are about 61%. * The rate of growth of this industry was around 1% only. It has gone up 4.2% later on cows and buffaloes are important animals for producing milk. 53% of milk is provided by buffaloes, 33% of milk is provided by cows. Government milk is used in some parts of the country.

Distribution Pattern
State Cow Milk 19.56% 30.16% 11% Buffalo Milk Cow Ghee Buffalo Ghee

UP Bihar & , Orissa West Bengal & Assam Maharashtra &

42.08% 60% 15.55%

11.16% 6.02% 11.26%

39.26% 3% 12.49%

Gujarat Karnataka, Chennai, Jammu & Kashmir MP&AP Rajasthan, Punjab & Himachal Pradesh

11%

7.77%

10.04%

9.90%

11.18% 18%

6.31% 22.18%

8.57% 52% to 92%

9.97% 27% to 38%

From the view point of economy dairy industry has several points of significant to this credit. (1) (2) (3) (4) (5) It gives production of milk and milk products which are dietcurious. It brings significant change in social economy structure of rural economy. It has important role in employment generation. By sound growth of co-operation this industry mutual help and self- sufficient are cultivated among the masses. It provides regular source of income as supplementary. Employment to small and marginal farmers and agricultural labours, therefore it acts as a cattail change in the directions of equitable society.

Scope For Foreign Investment In Dairy Industry

After adoption of the new economic policy 1991, India offers to foreign investors, a wellbalanced package of fiscal incentives for exports and industrial investment, without many interventions from government. DFP (Dairy Food Processing) offers a good opportunity to foreign investors in India. The changing international dairy trade pattern following GATT and the emergence of WTO (World Trade Organisation) offers the Indian dairy industry an opportunity to take its blow as an exporter. Indias enthusiasm to integrate with the world economy is reflected in technological up gradation professional excellence and a cost effective approach. The two main reasons for the world focus on India are: 1. The low cost economy. 2. The liberalization process initiated since 1991.

Other important factors include: Low inflation rate, inexpensive labour, the presence of the worlds third largest pool of technological man power, worlds largest democracy, an independent and well established judiciary and case is communication due to wide spread use of English among educated and professional class. At the same time the market within India as well as the exports markets is fast growing which ensures attractive return on entrepreneurs investment.

Problems Faced By Dairy Industry

1. The consumption of milk among rural population and also low income groups of urban population is low, despite of India having a tradition of milk consumption. 2. Inability to feed cattle adequately throughout the year remains the most wide spread constraint. 3. Quality dairy animals are in short supply. Artificial insemination service for breeding better cattle has limited coverage, barely reading an estimated 10% of bovines. 4. The animal health cover is getting increasingly neglected. In many states over 70-80% of the veterinary budget is used up for staff salaries and jeeps, with little left to buy medicines and other supplies. 5. On the production front, the pesticides contamination of new milk is demanding immediate remedial steps. 6. Limited marketing support handicaps rural milk producers seriously. Presently, urban milk supplies largely comes from major milk shed districts. Dairy producers in remote areas are neglected. 7. Limited investment in setting up or expansion of milk procurement network is another bottleneck. The rapid expansion in milk processing capacity has not kept place milk production and procurement. 8. The high cost of credit and unavailability of cheap credit on time is another adverse factor reducing viability of the dairy industry. 9. The immense problem to the dairy industry is due to infrastructure for transporting, processing, and distributing rurally produced milk to major consumer centres in urban areas. Improvement in raw milk by its chilling and refrigerated transport is vital for making quality products. 10. The rural women, an invisible partner need access to training in modern cattle management to maximize return.

Introduction Of Amul Dairy

Introduction Amul is nothing but an experiment. The Kaira District Co-operative Milk Producers union selected the board name AMUL for its product range in 1995. Amul means priceless in Sanskrit. The brand name AMUL is from the Sanskrit AMULYA was suggested by the quality control priceless are found in several Indian languages. Amul is situated at Anand in Gujarat. The chairman of Amul Dairy is Shri Ratan Singh A Rathod. Also there are many partners in the organization. It is a large -scale unit, so it requires a large number of employees. It has a co-operative society. It is also an association of personnel who joins together in a solvantary basis for further increase of their common economic interests. Amul Dairy is the largest dairy in Asia. Its full name is Kaira District Co-operative Milk Producing Committee today Amul is symbol of many things. (1) Of high quality products sold at reasonable prices. (2) Of the genesis of vast co-operative network (3) Of the triumph of indigenous technology (4) Of a proven model for dairy development

AMUL
Amul is an experiment, successful run since last 56 years with the objective of up liftment of rural economy. Amul word is derived from the Sanskrit word AMULYA which means priceless. In other words precious or which is price is not evaluated. Amul is a co-operative unit established on 14th December 1946 at Anand. The union was established under Kaira District Milk Product Limited. The logo of Amul has four hands joined together, which indicates :

Milk producers hand Milk processors hand Milk dealers hand Milk consumers hand

Mission Statement of Amul Committed to producer world class production Latest available technology must be upgraded. Most effective distribution network of marketing Confidence of large number of consumer of global level.

General Information

Name of the unit Registration office Factory site Head office Establishment year Form of organization Accounting year Chairman Vice chairman Managing director Manager (account) Name of banker

Amul Anand Anand Anand 14th December,1946 Co-operative 1st April to 31th March K S Desai (Milk) Shri Ramesh P Patel Shri Shiva M Vyas Shri Dipak Roy The Kaira District Co-operative Bank limited

Growth & Development Of Amul In beginning there were just a few farmers supplying about 250 litters of milk a day. Soon the number increased to 400 farmers and quantity of milk handled rise to 5000 litters a day. Milk yield is higher in winter and in winter, the Bombay milk schem could not absorb the extra milk offered. the farmers were forced to sell the surplus milk to traders at very low rates. This leads to the decision to set up a plant to process the surplus milk into butter and milk powder. With financial help from UNICEF, assistance from the government of New Zealand under the columbo plan & technical assistance provided by FAD, Rs. 5 million factories to manufacture milk powder & butter was planned. In 1958, the plant was expanded to manufacture sweetened condensed milk. Two years later Shri Morarji Desai by then the finance minister, inaugurated a new wing designed to produce 600 tones of cheese and 2500 tones of baby food was processed from buffalo milk on a large, commercial scale. A plant to produce balanced cattle food, donated by DXFAM was formally commissioned on October 31, 1964 by Lal Bahadur Shastri, then the PM of India. At the request of the government of India in 1963, a new dairy with a capacity of 40 tones of milk powder and 20 tones of butter a day was speedily completed. This was meant to meet the requirement of Indias defence forces. The dairy was declared open by Morarji Desai in April 1965. By now the dairy complex could hand 500000 liters of milk a day. The capacity was raised to 350000 liters a day in 1974. The same year the Kaira union set up a plant to produce high protein weaving food, chocolate & malted food at Mogar about 8 km, south of Anand. In September 1981, the cattle field plant at Kanjari, was started. The successful completion of the co-generation project on September 11, 1985 marked a new milestone on the energy front when two gas turbines generation of 1.5 M.W, each based on natural gas were commissioned Kaira up a bread spread plant at Mogar with the assistance of NDDB in 1994.

On October 31, 1992 Dr V Kurian, chairman of NDDB laid the foundation of Kaira unions third dairy with a processing capacity of 6.5 lakhs liters of milk a day. Work on the unions satelite dairy & cheese plant at Khatraj began in February 1994. There were about 250000 breedable buffaloes in Kaira which is helping Amul to ensure a regular & quality milk output for various parts of the country. Moreover, the district also had 50000 crores breed cows, which yield milk of high quality. The experiment in co-operation that began in Kaira district at the instance of Sardar Patel has new been replicated throughout the country in more than 160 milk sheds. Today there are 8 million dairy farmers who belong to the co-operative supporting between 4.5 to 5 crores family members.

Urban Chart Of Amul Area North East West South Metro Urban Rural Houses wives Main corners Males Females MHI < Rs20000 MHI Rs (20004000) MHI > Rs 4000 Rank 2nd 4th 1st Amul, which wants on the chart last year, comes straight on the top ----1st Amul was on No4 in metro segment, last year its jumps on 1st 1st Colgate vacates the top spot for Amul, which didnt feature on last years urban segment in top 10 dart 5th 2nd 2nd 3rd 1st Amul jumps & ranks on the top 5th 2nd 1st Score 52.92 59.41 52.08 ----58.10 54.59 49.22 53.67 53.05 49.73 53.02 50.23 52.91 55.21

Secret Of Amul Success

Despite of all the problems faced by the dairy industry in India, its progress is remarkable. It is one of the fastest growing industry, about to acquire second position in the world. Following are the basic sectors of success on India's dairy industry: 1. The efficient milk production, which is symbiotically integrated into agriculture. The crop farming system provides residues and by-products are feed and fodder's for dairy animals. The milk production system in turn provides drought power and organic fertilizers to the farming system. 2. The involvement's of milk producers in setting up their own organisation for milk production enhancement, procurement, processing and marketing. The dairy co-operative combines the strength of farmers with the skills of professionals to ensure high returns
3.

It has an important role in employment generation with regard to its contribution to national income it has 1st rank at producer price. The value of its output in the year 1997-98 was Rs.50,0511 crores. This is the amount next to the value of paddy.

4. The milk producers in India are assured of remunerative prices. They receive almost 66% of what is paid by the consumers as retail price. This has acted as an incentive to increase milk production. A low margin between the producer price and the retail price has also resulted in reasonable price to the consumer, thus expanding the market for milk and milk products. 5. Imports of dairy commodities in India have been cancelled through a farmer friendly NDDB, which ensures that imported commodities are not made available to the processing plants at a price lower than that of locally produced milk. 6. Collecting milk from the milk producers now carries the responsibility of supplying them inputs to increase the milk production. This linkage also optimizes on the transportation cost of the cattle feed to milk producers to the processing plants. 7. Bulk of the milk is delivered to processing plants within 3-4 hours of making, thus avoiding intermediate chilling. This has resulted in reducing the price spread between the producer and the customer. 8. National milk Grid: Milk now moves right across the length and breadth of the country, linking producers with the consumers and evening out of regional and seasonal disparities

in production and consumption. This ensures right prices to the producers and the continues supply to the customers. 9. India ha achieved bilk of the increase in milk production through the genetic upgradation of the local stock rather than important milk cattle. Only a limited number of exotic were imported for the production of exotic bulks needed for the up gradation of local stock. Cattle feed: Balanced cattle feed concentrates are now being made available to milk producers right at the village level at reasonable price. Trucks that bring also carry cattle feed thereby saving on the transportation cost. Organisation Structure Organization Structure are divided into two parts: 1. External Organization Structure 2. Internal Organization Structure 1. External Organization Structure: External Organization Structure is the organization structure which affects the organization from the out side. State Level Marketing Federation

District Milk Product Union Ltd.

Village Milk Product Union Ltd.

Villagers As we know, GCMMF is unit of Gujarat Milk Marketing Federation, which is a co-operative organization. The villagers of more than 10000 villages of Gujarat is the base of this structure. They all make a many village milk produces union ltd. Make district level milk produce union after all that one state level marketing federation is established. The structure is line relationship which provides easy way to operation. It also provide better communication

between two stages. So that the bigger and wider stage of organization. This stage of relationship is accepted. 2. Internal Organization Structure: Internal Organization Structure is the organization structure which affects the organization from the inside.

Organization Structure Chart

Chairman

Managing Director

General Manager Ass. General Manager

Finance Dept.

Production Dept.

Marketing Dept.

Sales & Purchase Dept.

Personnel Dept.

Senior Senior Manager Manager

Senior Manager

Senior Manager

Senior Manager

Finance Personnel Manager Manager

Production Manager

Marketing Manager

Sales Manager

A/C.tant P.R.F.

Office

Marketing Executive

Office

Officers Executive

Supervisor

F.S.R.

Salesmen

Staff

A systematic & well-defined organizational structure plays in vital role & provides accurate information to the top level management. An organisation structure define a clear cut line of authorities & responsibilities among the employees of GCMMF work together shaved a common discipline & contributed to the federation at a higher position. The Organisation structure of Amul is well arranged structure. At a glance a person can completely come to know about the organisation structure. Amul is leaded by the director under him five branches viz. Factory, Marketing, Accounts, Purchase, Human Resources Department. Factory department has a separate general manager under him there are six braches viz. Production, Stores, Distribution, Cold Storage, Quality, and Deep freezing. This department takes care of the factory work. Marketing department has regional senior marketing manager and under him there is a regional manager. This department takes care of the marketing aspects of Amul. Accounts department takes care regarding accounts i.e. day to day work. Under the accountant there is one clerk. Purchase department takes care regarding the purchase of raw materials and may other things. Purchase department have also various clerks.

Industry Structure
Global Scenario
Worlds major milk producer Country India U.S.A. Russia Germany Pakistan U.K. Poland New Zeland Italy Australia 2001-2002 85 80 40 34 28 22 20 15 11 9 (Million Tonnes) 2002-2003 88.5 81 42 35 28 24 21 17 11 10

(Source:Dairy industry newsletter)

The Worlds 20 largest dairy companies 2002 Company Name Nestle Dairy Farmers Of America Danone Phillip Morris (Kraft) Parmalat Suiza Foods Aria Foods Lactalis Campina Melkunie Snow Brand Unilever Friesland Coberco Dairy Foods Bongrain Land OLakes Meiji Milk Dean Foods Morinaga Sodiaal Dairy Crest Nordmilch
Source: Rabobank

Turnover (US $) 12.9 7.4 6.4 6.3 6.1 6.0 5.3 5.1 4.9 4.7 4.5 4.3 3.7 3.3 3.2 3.0 2.9 2.8 2.5 2.4

Indian Scenario
Milk Production In India

Year 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1997-98 1998-99 1999-00 2000-01

Production (In million tonnes) 41.5 44.0 46.1 46.7 48.4 51.4 53.7 56.3 58.6 70.0 75.0 78.1 81.0

Value (In million rupees) 1,31,650 1,47,670 1,62,010 1,82,880 2,07,900 2,47,800 2,92,690 3,46,500 4,04,000 5,00,000 5,35,725 5,78,665 6,52,485

Daily Collection Of Milk District Ahmedabad Kaira Baroda Bharuch Gandhinagar Panchmahal Sabarkantha Mahesana Banaskantha Rajkot Surat Valsad

Collection (Lakh Lit.) 360.93 2698.39 895.53 102.4 352.14 749.64 2153.49 3803.85 2171.56 269.97 2004.50 574.48

Milk Procurement and Turnover

Milk Procurement Year 1995-96 1996-97 1997-98 1998-99 Million (Lacks Lit/Day) 29.80 37.50 38.52 40.22

1999-00 2000-01 2001-02 2002-03

43.46 44.19 46.24 48.91

Turnover Year 2001-2002 2000-2001 1998-99 1996-97 1995-96 1994-95 Sales (Rs. In Crores) 2856.18 2564.87 2219.23 1553.69 1379.29 1114.04

Consumer Habits And Practices

Milk has been an integral part of Indian food for centuries. The per capita availability of milk in India has grown from 172 gm per person per day in 1972 to 182 gm in 1992 and 212 gm in 2002-2003.At this per capita consumption it is below the world average of 285 gm and even less than 220 gm recommended by the Nutrinitional Advisory Committee Of the Indian Council of Medical Research. There are regional disparities in production and consumption also. The per capita availability in the north is 278 gm, south 148gm,and east only 93 gm per person per day. This disparity is due to concentration of milk production in some pockets and high cost of transportation. Also the output of milk in several growing areas is much higher then elsewhere which can be attributed to abundant availability of fodder, crop residues, etc. which have a high food value for milch animals. In India about 46% of the total milk produced is consumed in liquid form and 47% is converted into traditional products like cottage butter, ghee, paneer, khoya, curd, malai etc. only 7% of the milk goes into the production of theystern products like milk powders, processed butter, and processed cheese. The remaining 54% is utilized for conversion to milk products. Among milk products manufactured by the organized sector. Some of the prominent ones are ghee, butter, cheese, ice creams, milk poweders.malted milk food, condensed milk infants food. Ghee alone accounts for 85%.

It is estimated that around 20% of the total milk produced in the country is consumed at producer- household level & remaining is marketed through various cooperatives, private dairies & vendors. Also of the total produce more than 50% is procured by cooperatives and other private dairies. While for cooperatives of the total milk procured 60% is consumed in fluid from and rest is used for manufacturing processed value added dairy products; for private dairies only 45% is marketed in fluid form and rest is processed into value added dairy products like ghee, makhan etc. Still several consumers in urban areas prefer to buy loose milk from vendors due to the strong perception that loose milk is fresh. Also, the current level of processing and packaging capacity limits. The preferred dairy animal in India is buffalo unlike the majority of the world market, which is dominated by cow milk .As high as 98% of milk is produced in rural India, which caters to 72% of the total population, whereas urban sector with 28 % population consumes 56% of total milk produced. Even in urban India, as high as 83% of the consumed milk comes from the unorganized tradinitional sector. Presently only 12% of the milk market is represented by packaged and branded pasteurized milk, valued at about Rs. 8,000 crores. Quality of milk sold by organized sector however is inconsistent and so is the price across the season in local areas. . Also these vendors add water and caustic soda, which makes the milk unhygienic.

Market Size and Growth

Market size for milk is estimated to be 36mn MT valued at Rs.470billion. The market is currently growing at round 4% p.a. in volume terms. The milk surplus states in India are U.P., Punjab, Haryana, Rajasthan, Gujarat, Maharastra, A.P., Karnataka, and Tamil Nadu. The manufacturing of milk products is concentrate Tamil Nadu d in these milk surplus states. The top 6 states are U.P, Punjab, Rajasthan, Gujarat, Tamil Nadu, and A.P together account for 58% of national production. Milk production grew by a 1% p.a. between 1947 to 1970. Since the early 70s, under operation flood, production growth increased at 5% p.a.

About 75% of milk is consumed at the household level, which is not a part of commercial dairy industry. Loose milk has a larger market in India as it is perceived to be fresh by most consumers, in reality however, it poses a higher risk of adulteration and contamination. The production of milk products, i.e. milk products including infant milk food, malted food, condensed milk & cheesed stood at 3.07 lakh MT in 2003. Production of milk powder including infant milk food has raised 2.25 lakh MT in 2003. Where as that of malted food is at 65000 MT. cheese and condensed milk production stands at 5000 and 11000 MT respectively in same year.

Market Share
GCMMF faces tough competition in the Indian market by different companies like Britannia, Vadialal Cadbury etc. Though it is quite new in the Indian market it shares a fair amount of dairy products in India. By advertising and promoting its product GCMMF has become one of the leading dairies in India. In western of India GCMMF shares the most of the market while in other parts of India it is next so. But slowly and surely GCMMF is growing in sharing the market with other competitors industries.

Major Players
The packaged milk segment is dominated by the dairy cooperatives. GCMMF is the largest player. All other local dairy cooperatives have their local brands.e.g.Warana in Maharastra, Saras in Rajasthan, Vijaya in A.P etc. other private players include J K Dairy, Heritage Foods, Indian Dairy etc.

Export Prospects For India

Presently, India a non-entity in international dairy market. However exports of milk products are picking up, having gone up by 40 times by value in the first half of the nineties, the value worth of RS. 400 million in 1994-95. Today GCMMF (Gujarat Co-operative Milk Marketing Federation) is Indias largest exported of dairy products valued at Rs. 18.3 crores in 1995-96. Its exports earnings are likely to get doubled in 1998-99. Two note worthy export opportunities are emerging one in South-east Asia and other in Russia, the immediate future is the prospects of an additional demand of over 3 million tonnes of milk products in the Asian region. Equally significant is the rise of Russia as the worlds biggest dairy importer.

India is not fully utilizing its export potential in respect of dairy products. The cost of milk production in India is the lowest. And the dairy industry is not getting any subsidy. There is an urgent need to pay special attention to the quality if India has to compete with other countries. At present the county is exporting the malted milk foods, ghee, butter, and cheese to other countries like Bangladesh, UAE, Nepal, Shri Lanka, Oman and Bahrain. Of course world milk prices are subject to dramatic fluctuations. Export earning from the live-stock sector and related products rose to Rs. 19,250 million in 1996-97 from Rs. 7,920 million in 1988-89.

Indias Export Of Milk Products

India is evident that except for baby food, the exports for all other milk products are showing an increasing trend in terms of quantity as well as in terms of value. On the other hand Indias imports of milk production specially milk powder and baby food is showing a declining trend. Looking at the growing export opportunities in the post GATT ERA, Indian planners have measures areas already adopted become quality conscious. Corrective measures areas already adopted to meet the sanitary and phyto-sanitary specifications prescribed by WTO. Besides, covering processed dairy products, the specifications of the WTO silos extended to the health status of cattle and other live stock. Consequently, the main thrust of the ninth plan proposals is on the improvement of animal health and adoption of sanitary and phyto sanitary specifications for dairy products. Towards this end, the TMDD (Technology Mission on Dairy Development) has initiated wide ranging programmes.

Concerns in export competitiveness are

Low cost Of Production Milk production is a combination of labour & capital intensive. Due to low labour cost, cost of production of milk is significantly to there in India. Quality

Significant investment has to be made in milk procurement, equipment, chilling and refrigeration facilities. Also, training has to be imparted to improve the quality to bring it up to international standards. Productivity To have an exportable surplus in the long term and also to maintain cost competitiveness, it is imperative to improve productivity of Indian cattle. There is a vast market for the export of traditional milk products such as ghee, paneer, shrikhand, rasgolas, etc.

MANAGEMENT FUNCTION
For any organisation to succeed the management function are as important as the production because what has been produced has to be marketed, to produce the items the finance is required and also the employees are required which is taken care in the finance and the personnel functions resp. So the important of these functions cannot be under done.

Personnel Management
Introduction The success to any industrial unit, depend upon their effective personnel department. Personnel department is basically commercial with human resource of an enterprise and it also continue procurement, development, non monetary comparison, integration and maintenance of the personnel purpose of contribution towards the accomplishment of the organizations major goal and objectives. Personnel management in opinion of many author is true management. So sometimes its told that management means to manage human behaviour. Personnel management is that phase of management which deals with the effective control of use of manpower as distinguished from other source of power. The management includes all aspects of works such as recruitment, selection, medical checkup, various types of training, transfer, welfare activities, union activities factory all provision and industrial dispatch.

Chart

Recruitment
Recruitment forms the first stage in the process which continues with selection and cased with the placement of the candidate recruitment makes it possible to acquire the number and types of people necessary to ensure to continues operation of the organization requirement has, been regarded as the most important function of personnel administration. Amuls recruitment and selection process is very systematic and comprehensive. All division head in inform about their manpower requirements. According to the requirement of the personnel division they get require employees by resources like postal services employment exchange education institution and advertisement. Amul Dairy receive lot of application in response to their advertisement. Thus from contains the information about candidates vest name, place of birth, nationality, region, qualification and experience details of personal employee status etc. these forms are to be checked by authorized person and he adopts only needed application and eliminate unnecessary of unqualified fated scrutinizing the application. Applicants are called for personal interview. Interview committee conducts this interview. When applicants are too many, then they conduct a written test for general knowledge. These who pass this test are called for interview then after smart selection process. Source of Recruitment 1. By giving advertisement in news papers 2. Labour Union 3. Voluntary Organisation 4. Leasing Contract 5. Private Employment Agency 6. Government Employment Exchange 7. School, Colleges, Universities and Professional Institutes

8. Recommendation of present Employee 9. Recruitment as Temporary Workers

Selection
Selection process is concerned with screening relevant information about an applicant. The objective of selection process is to determine whether an applicant meets the qualification for a specific job and to choose the applicant who is most likely to perform well in that job. In Amul rating are noted for general knowledge experience knowledge that particular field etc. from these forms then highest marks are selected and send for medical examination. The applicant which are physically fit are sent appointment letter which contains some terms and conditions of the candidate. The candidate will have to sign to this letter that he is ready to strictly obey these terms and conditions. Higher level is to be directly recruited and selected by the committee. The employee has to inform the date of joining the organization on such date specific period of training is adjusted.

Training & Development

Training and management development are the two separate things. Training is required for persons working at operative level and it it required for increasing the knowledge and skills of employees. So that they can perform their tasks in the best manner while management development refers to the activities which take place in order to improve the performance of the managerial levels personnels. Training and management development contribute a lot in increasing the productivity. It is matter pity that GCMMF is not having a separate dept. for training and development. For providing to newly selected person at operative level, he is places at the work under supervision of a senior worker who gives guidance and instructions about the particular work. For the managerial level personnel, they select only those person who are having an experience of at least three year in the same fields. Then a newly selected person is assigned such tasks as are of less important and his performance is observed for three months. There are two type of training methods:

On the job Training Methods:

1.

On Specific job - Experience - Coaching - Understood

2. 3. 4. 5.

Position Rotation Special Projects Selective Reading Apprenticeship Off the job Training Methods Special course and lecture Conference Case Studies Role playing method Management Games

1. 2. 3. 4. 5.

Promotion & Transfer Policy

Promotion A promote on the transfer of an employee do a job. which play more money are one that carries some preferred status. In Amul mainly two promotions policy are taken. 1. Automatic promotion 2. Merit cum seniority From time to time different type of promotion policies are adopted by Amul. During the period of 1972,their was negotiation with union under shish promotion was given automatically do a person who had completed his 6 yrs and 2nd promotion was given after 7 yrs. Then Amul adopted merit cum senioring policy. And now at present merit Amul favours promotion. Under this policy performance of the employee his part record behavior opinion of divisional head is taken into account while considering a promotion this capacity, to supervise his job knowledge is also considered.

Managing Director sign the promotion order after the recommendation by the personnel & Administration department.

Transfer
Transfer is the pre-relative right of the mgt. Transfer is done if it is necessary for the organization. Transfer is generally affected to build up a more satisfactory work team & to achievement some purpose. In Amul for transfer take place in flash season. Transfers are also to adjust the work forces of one plant with the another.

Wage & Salary Administration

Attendance is considered to be one of the major & important factor responsible for the Wage & Salary Administration. Common method is followed for the Wage & Salary Administration the present catalogue record received from the time keeping office. The present record is maintained to each employee in the register, which is known as master roll. Timekeeper sends this master roll to the account dept. Attendance of each & every employee is analyzed & entered into the computer. The record is scrutinized and statutory and non-statutory deductions are made after this salary is calculated for each employee through computer. The wages are paid in cash & also credited in corporate salary a/c. Employee wages are deducted according to grades of workers. Amul has A,B,C,D,E,F grade of workers.

Job Description
Job Description is an important document, which is basically descriptive in nature and contains a statement of job analysis. it defines the scope of job activities major responsibilities & positioning of job in organization. It provided the worker, analysist & supervisor with a clear idea of what the work must do to meet the demands of the job. In other words Job Description is rules & regulation regarding different jobs.

In Amul those who are at senior Level make job description regarding managerial position. These are some limitation regarding job description in future one may say that, I have to done what is mention in job description to avoid this problems. They are not providing job description to all except managerial levels. As well as job description is helpful because one is clear about their work. No problem arise in future.

Performance Appraisal
The performance appraisal system is a process of evaluation of employees performance on a jobs in loans of its recruitment. It is also known as assessment of behaviour performance and attitude of an employees. The value, excellence, spirit, qualities of status of some subjects of performance appraisal is quite useful in various administrative decision as training, transfer, promotion etc. In GCMMF there is very good performance appraisal system and the management of unit is good and profitability is very high.

Social & Welfare Activities

Every units success depends upon the regulatory and sincerity of the employees. The GCMMF is already regular in paying amount of salaries to employees satisfactority for their contribution in unit. The GCMMF has take many efforts in the welfare activities provided to their staff and employees are as mentions. Hospital Facility Canteen Facility Uniform Facility Leave Facility Loan Facility Accident Benefits Scheme Quarter Facility Bonus

Transportation Rest Intervals Cleaning, Washing, Sweeping

Total Employees and Time Keeping System

Total Employee: The success of the Amul depends upon their excellent team spirit and confidence of people in the personnel dept. The total employee of GCMMF is 750. Working Hours In Amul dairy there are three shifts in one day. All the shifts has eight hours. So the work of this union of the milk product are continuously and never stops. Therefore the union has produce maximum stock of this products. The timing of three shifts and office time are as follows: 1st Shift 2nd Shift 3rd Shift GCMMF office Time : : : : 8:00a.m. to 4:00 p.m. 4:00p.m. to 12:00 mid night 12:00 mid night to 8:00 a.m. 8:00a.m. to 5:00 p.m.

PRODUCTION DEPARTMENT
Introduction Plant layout Product Profile of Raw-Material Milk Processing Milk Powder Butter Oil (Ghee) Ice-Cream (A) (B) (C) (D) (E) Pollution Other Department Quality Assurance Laboratory Milk Packaging Station Cold Storage Spray Drying Plant Boiler Operating Analysis

Sources

(A) (B) (C) (D)

Production Process
Introduction Explosion of the production technology and changes in technical field is going to bring out revolution in the industry sector which eventually gives stand to study and favour the comebacking subject i.e. production and management. Computers has evolved as a growing force with which operations managers tremendously use for various purposes i.e. starting from cost reductions purposes management has been enormously up graded to more higher level. Production and operation management is planning, organizing, staffing, directing and controlling of all the production system those portion of organization that convert inputs into products and services. In the general production system take raw-materials, personnel, machines, buildings and other resources and produce products and services. Moreover outputs i.e. products and services which generate revenues and perpetuate the system are not only the concentrated things but also the over looked indirect outputs like axes, wages and pollution, technological advances, wages and salaries and community are today looked over as important output. The core of production system is its conversion subsystem where in workers materials are to covert inputs in to products and services. This production department is at heart of the firms workers and capital assets are engaged and it is able to produce low cost products and superior quality in timely manners. Thus there arises enormous need of giving rise to this department as whole and function as an individual with strong concrete base being foundation pillars of a manufacturing organization if the intention is to succeed nationally and internationally.

Plant Layout
Plant layout is the overall arrangement of the machine tools, handling equipments, storeroom, tool aribs and other various accessories required for facilitating production in a factory. This arrangement are preplanned with the results that the building has been constructed to fit a layout of a given process. GCMMF plant is indigenously worked out with facilitation of various production process and production of multi products under one plant. The total plot is near about 2.27 kms. separate buildings are provide with required arrangement of machine tools handling and computers connection through the control room to fit for varying product manufacturing department. The plant is engaged in producing milk, ice-creams, milk powder and ghee substantial department is uniquely provide for the processing of each product. There are 4 production department and packaging departments pertaining to each products respectively. Also the strong of each particular is possible in the same. A fluent plant is proven to dispose off the wastes and remainders water. The plant also envisage a beautiful garden which cleans up the air and keeps the climate pleasant. A parking at the right place has been provided for the outsiders and also for the employees. The plant is on the end of a large provident with 2 sides round and a beautiful lawn in the division. At the front security guards cabin which grants the entry for specific tankers, employees, visitors etc. visitors have to get approval from the office before head to get entry in the plant. The office of the plant stands left a the pavement ends. Thus plant layout encompasses all production and services facilities and provides for the most effective utilization of the men, materials and machines constituting the process. It is the master blue print of coordinating all operations. A good layout results in elimination or minimization of accidents and hazards and cost while increases the output . thus a good layout specifically is observed to be benefited on the following grounds: Efforts minimization

Fewer material handling will be provided manufacturing units cost will be lover Bottlenecking of production will be eliminated

 Total item in process will be less Specialization of operations is facilitated Less inspection will be required Production control will be easier to achieve Plant investment can be held to the necessary minimum Plant and equipment obsolescence may be less

Wastage space will be eliminated

Thus a true beneficiary is provided to the plant through good and sound planning for plant layout.

Product Profile
Bread Spreads Amul Butter Powder Milk Powder Milk Amul Spray Infant Milk Food Cheese Amul Instant Full Cream Milk Powder Sagar Skimmed Milk Powder Sagar Tea Coffee Whitener Amulya Dairy Whitener Fresh Milk Amul Fresh Milk Amul Gold Milk Amul Taaza Slim and Trim Fresh Cream Chocolate Milk Amul Cheese Spread Amul Emmental Cheese Amul Pizza Mozzarella Cheese Gouda Cheese For Cooking Amul / Sagar Pure Ghee Cooking Butter Amul Paneer Utterly Delicious Pizza Mithai Mate Masti Dahi Masti Soups Cheese Amul Pasteurised Processed Healthy Drink Nutramul

Desserts Amul Ice Creams Amul Mithaee Gulab Jamuns Kulfi Mix Amul Shrikhand Gulab Jamun Mix Amul Chocolates

Sources Of Raw Material

The one and only raw materials on which the dairy plant function is milk. And as Gujarat has abundant livestock especially cows & Buffalos, availability of the raw material. Lower level or primary level milk producers co-operative make a collection of milk from members producers. members producers are the farmers owing cows or buffalos. They bring milk to primary level societies. The picture on the next page shows the collection of milk through member producers standing in queue. An account of every member producer is maintained which contains the details regarding the fat content, quality and quantity of goods time of collection& the payment due or outstanding. In case of quality of the co-operative must be alert so as to neglect the collection of sour milk and substandard milk. For pricing collected milk importance is given to quality. The milks prices is based on fat and snuff i.e. solid non fat content. it needs to consider the bacterial population in the milk for raw paying milk price. Payment is done on monthly or daily basis depending upon co-operating policy and member preference. This milk is proportionally distributed and brought to various milk processing plant GCMMF is also the same.

Operating Analysis
As is mentioned is sources of raw materials the one and only source from where they procure milk are village milk societies. Milk is brought on from such village milk societies every morning and evening. This milk is then to the dairy plant. It is here in the dairy plant the milk is processed i.e. it is made free from germs.

Milk Processing
The entire process of milk can b divided into following steps: Steps: Milk Processing Chart: Collection of Raw-Milk

Electronic Milk Test Methyline Blue Reduction Test Purchasing And Standardizing Process

Separation Process

Quality Check Packaging Process

Cold Storage

1. Collection of Raw Milk

Raw milk is collected from different co-operative societies of different 470 village of Gujarat. About 122000 liters of raw milk is collected per day. Before this milk is sent to the laboratory for tasting the FAT & SNF proportion, the milk is separated from the raw milk. The milk is taken from the chilling centers to Ahmedabad with the help of 407 trucks. Inside and outside of the tankers the thermocol is to be put. Because of the thermocols the milk is not affect by the outside environment. After collecting the samples of milk are taken to the laboratory. Where two types of tests are conduct. Electronic milk test Methyline blue reduction test

Electronic Milk Test:

Before pasteurizing the milk the samples are taken to the laboratory. In the laboratory with the help of machine called electronic milk test, the proportion of SNF & FAT 2.2 m.l. of phesphatic solution becomes yellow than it is sent for pasteurization. Methyline blue reduction test: Another test which is taken in the laboratory is called Methyline blue reduction test. This test is conducted for checking for how long the milk will remain fresh. To check this, 10 ml of milk is taken and 1 ml of methline blue solution is added to it. It is then kept in the test under water bath 57 degree C. after one hour, if the solution losses its colour than it is called raw milk. If the solution remains the same even after 5 hours than it is considered as a fresh milk which remains constant for a long period of time. The proportion of FAT & SAF is fixed by the dairy. The minimum proportion of SNF decided for the first grade buffalo is 6% and for cow it is 4.5% . We consider if as fixed rate. We further explain it by as under: MILK OF Buffalo Cow SNF 9% 8.5% FAT 6% 4.5%

After laboratory gives green signal and confirming the raw milk at the reception dock is brought in to the house connected with the pump is sent to the milk processing plant. This is than chilled below 4 degree C. and then stored in milk silos. After that milk is processed which has two steps i.e . pasteurizing and standardizing .

2. Pasteurising & standardizing:

After collecting and checking and conducting laboratory tests the pasteurizing process is conducted. To pasteurizing the milk means to kill all the germs in The milk by a particular method which was invented by a scientist called James Paseure and so the name pasteurization.

In pasteurizing the milk is first heated at 72 C to 76 C far 15 second and then it is immediately cooled below 4 C. By this method they destroy the pathogenic bacteria present in the raw milk. But if the right degree of temperature is not provided there are chances that the milk might still contain germs. After this process some milk goes to separator machine and remaining is proportionately sent for standardization. Standardization process is know as such as it bifurcates the milk in 3 categories varying according to that FAT & SNF contents. The equipment named OSTA ---Auto standardization adjusts the fat directly. The computer is just ordered whether gold or standard milk is to be rationed and the same will be received with appropriate contents. Ready Milk = Pasteurized + standardized.

3. Separation process: Separator machine separates two kinds of products, skimmed milk & cream, through

channels. There are 100 disks fixed in separator machines which has 5000 RPN (revolution per minute). It is taken to the tanks to the tanks which has the capacity of 20000 liters. There are total 8 insulated tanks in the dairy. The milk in every tanks has different position of SNF. Whenever the milk is needed from the tank, it is tasted in the laboratory and the deficit proportion fat is added by mixing cream. This process continue for 24 hours.

Quality Check:

Pasteurized milk is sent for a quality check in the QUALITY ASSURANCE lab. Of the dairy plant. Within 14 second FAT and SNF proportion is received regarding 30 lacks liters of milk. The total investment put into the lab by the Dairy plant is of RS. 6 crores. This laboratory only check and analyses the powder and milk and ghee. There is a separate icecream analyzing laboratory.
5

Packing Process:

After this the milk is sent for packing to the milk packing station in the dairy plant. In the milk packaging station there are huge pipelines and behind each of them there is polyfill machine from which the material to pack milk comes out. There are 12 such polyfill machines in the packaging station from which the materials to pack milk comes out. From each of these 12 machines 100 pouches are packed in one single minute. Per day each machines having capacity of 50000 pouches. The materials which is used for packaging is called fill farm slip and it is manufactured by a firm called. 6. Storage: Then the milk is sent to the cold storage of the dairy where the milk is stored until it is dispatched. Here the milk is stored at temperature ranging from 5 C to 10 C, it is maintained with the help of exhaust fans having silicon chips. To maintain the temperature for refrigerator amenia is used. About 40000 liters of milk is dispatched from the cold storage of the dairy plant everyday. The damaged pouches are kept a side and the milk is once again put to the tank.

Milk Powder
When there is excess supply of milk convert some of the excess milk into milk powder. For converting milk powder first of all 505 of water is evaporated plant/condensing plant. By this process they get condensed milk, it is used as a raw-materials. There after the milk is sent to the drying plant. The spray drying plant is huge in size with a height of 70 feet abd which of 20 feet. The plant is divided into many floors to enables easy use of the plant. First of all the raw0materials i.e. condensed milk is put into the first floor of the plant along with air at 200 C. by this process the remaining water which the condensed milk might have retained is also evaporated and milk comes as powder but this is not the last stage. This powder is again put in to a machine is called milk calendaria, where it is turned in to real milk powder. Its capacity is 15 minutes 1000 liters. Then again this milk powder is put into a Dense Waise Vessel. Here the lumps are removed and uniform milk powder is sent up. After the processing the powder is sent for quality checking at quality assurance laboratory. After the quality confirms, this milk powder is then differentiated by adding differentiated by

adding different flavour to them like elaichi flavour, chocolate flavour & sugar free milk powder. Thereafter they are packed in tins and boxes. Afterwards it is stored at storage department (Torage Plant). In summer the milk production is tremendously increased.

Butter Oil (Ghee)

After milk separation milk scanning is done. Here excess of cream is extracted form the milk through cream separators. The scanning of milk is done till they get 99% fat and than it is changed in to ghee. The separated and scanned ghee is than sent for quality testing in QAL. After it confirm to the laid standard after checking ghee is sent for packaging. The packaging is done in tin cans or pouches like that of milk and marketed under the brand name of Amul Ghee. The packed ghee is standard in the ghee storage department.

Process of Making Ice-cream

Milk can Dump tank Milk pump Milk chiller Milk shortage tank Milk pump Batch pasteurizer Milk pump

Homogenizer Mix chiller Aging vat Flavour tank Continuous freezer Cone machine Packing table Hardening tunnel Cold storage Cup filling machine Chocolate coating tank DISPATCH

Pollution
Unlike many other units this unit has a its own affluent to be released per day set by the GPCB is 1,20,000 liters of affluent per day. Entire the ratio of milk. Affluent in this plant was 1:1:2.but modernization and automation of the unit has now reduced. it affluent generation capacity of the unit. Now it is only 700 cubic liters per day compared to1,20,000 liters earlier. Besides the air pollution by the unit is also minimums as far pollution is concerned this unit has a faire well in fulfilling its social responsibility towards the whole society.

1. Machines & Equipments:

Machines are the important factors of production which is highly involved in conversion or processing of raw material into semi finished or consumable finished goods.this machines is used to scan the qualities of milk the percentage of far, solid not fat. And it takes just 14 second for this purpose. The machines cost around Rs.30,00,000. 2. Polyfill Machine: The polyfill machine helps to pack the milk into the pouches of various sizes. One such machines can pack 100 pouches of milk in one single minute. 3. Milk Separator: this machine is used in the production of ghee. The raw-material put into the surplus cream crtracted while processing milk. And from this cream, the machine keeps extracting water out of it until they get 99% fat. 4. Milk Calendria: This machines is used in the production of milk powder. It is used to turn milk in to milk powder. It is kept in the boiler plant of the unit. 5. Dense Waise Vessel: This machine is also used in the production of milk powder. After the milk is converted into milk powder it helps to move the lumps form the milk powder. Other Machines & Equipments are as under:

Milk tanker Electronic Milk Tester Packeging machine Milk Siolos Hoses & Pipeline for supply for milk Spray dying Machine

 Boiler and Furnaces Condersors Milk Scanner Pasteurising Machine Lab Equipment It is observed that the technical know how is purchased from L&T, while some of the machine are exported from out sided country. Ice creams manufacturing equipment are purchase from Akta Co., Italy while pouch-packing machine are purchase from France. GCMMF is an automated fully computerized plant. The benefits that are arrived to GCMMF due to automation are; Increased machine efficiency Improved quality of products Reduction of accidents Conversation of manpower Decrease in time of process Reduction of process inventory & working capital required Reduction in cost per unit of production manufacturing Lower cost and higher outputs

Other Departments
(A) Quality Assurance Laboratory: Quality can be defined in narrow sense as freedom from defect. However quality has a direct impact on product performance and hence on customer satisfaction. GCMMFS quality assurance laboratory all its products are tested for their respective qualities e.g. for assuring the quality of milk there is a machine called milk scan which scans the quality of milk within 14 seconds. The machine is a fully automatic one and so it cost the unit RS.30 lakh. The whole laboratory itself was get us with an investment of RS. 6 crores. All the

activities of the laboratory are controlled from a control room which controls all the activities by a computer. (B) Milk Packing Station: The primary function of packaging is done to contain & protect the product. In olden days milk used to be distributed in the bottles. But as they broke very often and also due to the difficult in transporting them now a days usually milk is packed in plastic pouches of 500 m.l. GCMMF there is a big milk packaging station. here there are big pipelines through which milk comes out to be packed and behind each such pipeline there is a pollyfill machine. There are 12 such polyfill machine in the plant and each of these machines can pack 100 pouches of milk per minute. The material used for packing is called fillfarmslip. It is a product manufactured by a company called prepack. The unit of mother dairy itself also has a plastic film manufacturing plant in GIDC Gandhinagar. (C) Cold Storage:

As soon as milk is packed it cannot be distributed by the wholesalers to the various retail outlets because it takes time to reach out and besides the time at which the milk is to be made available to the customers has also to be considered. Therefore during that gap the milk is stared in a cold storage of the unit. The temperature in the cold storage ranges from 5C to 10C. and in the night when it is time to distribute the milk, the milk is dispatched from here in big trucks. Among 4,00,000 liters of milk is dispatched from per day. (D) Spray Drying Plant: In this plant the excess milk is converted into milk powder. For this first of all 50% water is evaporated from the milk in an evaporating plant/ condensing plant. This condensed milk is used as a raw material in the spray plant. The spray drying plant is huge in size measuring 70 feet high and 20 feet. This plant is divided in to some floors to enable easy handling. First the condensed milk is put in to the first floor of the plant along with air at 200C. And so the remaining water room which controls all the activities of the spray drying plant like maintaining various levels of temperature etc. by a computer.

(E) Boiler: The plant is equipped with large boiler in which a furnace is used to, make steam. I.e. heating water at 90 C to 95 C and this in turn is used to heat milk. The boiler is huge 4-stored plant the activities of which are completely controlled by a computerized control room. This plant includes a machine called milk calendaria where milk is turned to milk powder. The plant also contains a machine called a Dense Waise Vessel which removes the lumps from the milk powder and this fine milk powder is then sent to Rilo, which is a milk powder storage tank.

Marketing Department
Introduction
Introduction is very vital function in any industry. Every company has to handle its marketing function with care. As the whole world is turning in to a global market, marketing function is getting more and important in every company. The term marketing is changing in the world. Now selling product by advertising. It is not only the function of marketing. But in this new world marketing puts weightage on satisfying consumer needs. If the market does a good job understanding consumer needs, develops product that provide superior value and price, distributes and promotes them effectively. This products will sell very easily.

Definition of Marketing
A social and managerial process by which an individual and groups obtain what they need and want though creating and exchanging products and value with others.

Marketing Environment
The concept of markets finally brings as full circle to the concept pf marketing. Marketing means managing markets to bring about exchanges for the purpose of satisfying human wants. Thus we return to our definition of marketing as a process by which individual and groups obtain what they need and what by creating and exchanging products and value with others. The follow will show is the marketing environment of an industry.

Company Marketer Marketing Intermediaries Competitor Environment End User Market

Supplier

Marketing Environment Chart Above figure shows the main element in a modern marketing system in the usual situations, marketing involves serving for market of end users in the face of competitors send their respective products and message directly to consumer or their marketing intermediaries to the end users.

Marketing Aspects Of Dairy Industry

Indias diary market is multi-layered, shaped like as pyramid with the base made up of vast market for low cost milk. The narrow tip at the top is a small but affluent market for western type milk products. The bulk of demand for milk, however is among the poor in urban areas where individual requirement is small may be a glassful for use as whitener for their tea. Nevertheless, it adds upto a sizeable volume of millions of litres per day in major urban centres where lays the immense growth potential for the modern sector. Presently, its milk distribution network serves hardly 778 out of 3700 cities and towns, dispensing hygienically segment would double in the next five years. Following readings are important to understand the market structure of dairy industry and what is projected for 2000 A.D. 1. Urban V/s rural market:

In 1995 out of the total milk production 44% was retained in rural areas for 72.2% of population; where as 58% of milk was brought to the urban areas for 27.8% population. By 2000 A.D. the rural to urban ratio is projected to be 40:60. It is evident of urban bias in the milk market. 2. Organised V/s unorganized sector: Despite of the fact that under OF (Operation Flood) programme, the emphasis was given on developing organised sector was only 18% in the total milk that was marketed in the urban area. Its share is projected to increase 22% by 2000 A.D. The index for plant capacity is also showing a rising trend for organised sector. The plant capacity is 1950s was around 10,000-20,000 litre per day, it increased to 1,00,000 income per day in 1970s to 5,00,000 income per day in 1980s and to 1 mega litre/day in 1990s.

3. Co-operative V/s government and private sector:

Within the organised sector the ratio of co-operative V/s governments department to private sector was 60:40. This ratio is likely to be 50:50 by 2000 A.D. as new private sector dairies are entering in the market as a result of policy of liberalization. The proportion of liquid milk to other milk products in co-operative and government sector was 90:10. The estimation is this ratio will change to 80:20 and 30:70 for co-operative and private sector respectively. This is an indication of growing market of other milk products in the country.

Marketing Chart

State Level Marketing Federation

Milk & Milk

Revenue from Sales

Produc
District Milk Products Union Ltd

Raw Material

Input like seeds, cattle food, education vetsea, fertilised Village Milk Co-operative Society

Village 1 Village 2

Village 3

Marketing Function of GCMMF

Gujarat Co-operative Milk Marketing Federation (GCMMF) GCMMF was the first co-operative to be set up under operation flood. GCMMFS dairy plant commissioned in 19994. is one of the most modern and largest plant. it can handle up to 1milion litre of milk per day. The plant also has facilities for pasteurizing and packing. The plant has employed only the 187 people. it was funded by NDDB. GCMMFs milk is sold under its flagship brand Amul. GCMMF was formed in 1973.As a apex marketing federation of 12 district milk unions of Gujarat. To operate own marketing and distribution network in India and abroad. Joint hand for co-operation and cares for marketing. GCMMF sales turnover grew by 21% Rs. 15.5 billion to Rs. 18.8 billion including consignment sales of Rs. 3.7 billion sale of Amul milk in Gujarat and Maharastra increased by 11% and 16% respectively. Dairy product turnover is registered a19% growth.Amul butter registered 18% growth. The sale of Amul & Sagar Ghee increased by 47%growth. Amul Cheese registered 60% value growth.

GCMMFs sales to the defence services were Rs.233 million during the year, were mainly to Barma, Uganda AND West Africa. The company plans to expand its export markets in Saudi Arabia and other Middle East countries. During 19998, the Amul ice-cream brand franchise was extended by launching it in 8 states and 2 union territories.Amul ice-creams has become Indias 2nd largest brand. New product launched during the year were Amul Pizza, Cheese and Amul slice cheese,Amul paneer and Amul mithaee range.safal mango drink has been launched strategic alliance with safal (A union of NDDB). The product range to be launched under the safal brand will include fruit drinks, squashes, pickles, jams, and ketchup and mango pulp. Amul ice-cream brand franchise was extended with launch in 8 states & 2 union territories.Amul ice-cream has become the 2nd largest brand in the country & has garnered major share in its existing markets in a short time span of 3 years.Amuls main ice-cream manufacturing facility is located at Gandhinagar. Which is Asias largest and most modern integrated ice-cream manufacturing plant and uses world renewed refrigeration units and an efficient cold chain for the regional dairy co-operatives like Mother Dairy for the northern market. Mother Dairy for the southern market & the Patna Dairy project which commenced production from April 98 for the eastern market. GCMMF has become very popular because of its excellence marketing strategy. GCMMF marketing strategy is to understand the consumer needs, develop products that provide superior value at less price. These type of marketing has made GCMMF on of the leading dairy in India. GCMMF has shown a tremendous commitment to the flood water situations. GCMMF has never stopped the supply of milk and other milk products. And unlike other competitors, it has never taken wrong benefits in these kinds of situations. All these have made Mother Dairy No. 1 dairy in Gujarat and in India. GCMMF has developed an excellent distribution channel to provide its products to the consumers. It has made its products in each part of Gujarat & India. Basic Information about GCMMF Name of the industry: Address: Amul Dairy Industry Amul Dairy Industry Anand 388001 Gujarat.

Marketed By:

GCCMMF Ltd. Anand 388001 Gujarat.

Manufactured By:

Banashkatha district Co-operative milk producer union ltd. Palanpur 385001

Email Address: Form of the Organisation: Year of Establishment: Executive President: Bankers: Members: No. of Producer Members: No. of Village Societies: Total Milk handling capacity: Milk collection (Total 2002-03):

www.amul.com Co-operative society. 1973 S.K. Bansal HDFC & UTI 12 district cooperative milk producers' Union 2.28 million 11,132 6.7 million litres per day 1.86 billion litres

Milk collection (Daily Average 2002- 5.08 million litres 03): Milk Drying Capacity: 510 metric Tons per day Cattlefeed manufacturing Capacity: 1450 Mts per day Mission of GCMMF Amul at Gujarat Co-operative milk marketing federation (GCMMF) endearing to satisfy and nutritiory requirements of the customers the world through the excellence in marketing by our committed team.

Slogan Amul The Taste Of India Utterly, Amul Delicious Real Milk Real Ice-cream

Market Segmentation Market segment is a very important function for the market department of the GCMMF, because the market consists of buyers different in any ways. They are different their wants resources, locating buying practices. Because buyers have unique needs and wants each buyer is potentially separate market GCMMF has segmented its market in following variables. Geographic segmentation: Under these variables GCMMF has divides market into difference geographic units such as region, states, cities etc. GCMMF sells its products by geographic segment action like in the north where production of milk is very high the sale of Amuls product is not much. But in the western region it is high. GCMMF identifies this kind of variables and deals with it. Demographic Segmentation: Under this variable GCMMF has dividend market into several graphs such as age, genders family, size, income, occupation etc. for the every group GCMMF marketing strategy is different. In milk Amul targets all the class where as in the other products like butter, ghee, icecream etc. is targeted to the middle and higher middle class.

Marketing Mix Product Mix

What is Product? A product in simple words means a set of tangible physical and chemical attributes assembled in an identifiable and recently reorganized form. Anything that can be offer to a market for attention acquisition use for consumption that might satisfy a want or need. Product is a bundle of utilities consisting of various product features and accompanying service. Soap, Shampoo, Powder, etc. are some example of product. Product mix is the set of all products and items that a particular seller offers for a sell. A product mix consists of all the product lines and item that are sold by the company.

Check out this vast and ever-growing range of 'tasteful' Amul delectables! Bread Spreads

Amul Butter Utterly Butterly Delicous

Amul Lite The Low at Fat Bread Spread. It is made from a blend of hydrogenated refined oils, milk fats, skimmed milk powder, common salt, emulsifier, class II preservatives, and antioxidants. Vitamin A not less than 30 IU/gm and Vitamin clamps 2 IU/gm. Composition: Total Fat 59% Milk fat 10%

Powder Milk

Amul Spray Infant Milk Food Still, Mother's Milk is Best for your baby

Amul Instant Full Cream Milk Powder A dairy in your home Ingredients : Tooned Milk, Vitamins A. D Composition : Milk Fat Protein Carbohydrates Minerals Moisture 37% 6% 3%

28% 26%

Special Features : the product has more milk fat as compared to normal milk powders. It is parked under an atmosphere of Nitrogen. The product is creamy while in colour. Marketed in India since last 3 decades. Product Specification : Meets ADPI extra grade standard for quality and BIS Specification No.IS:1165-1992.

Sagar Skimmed Milk Powder Which is especially useful for diet preparations or for use by people on low calorie and high protein diet.

Sagar Tea Coffee Whitener

Amulya Dairy Whitener The Richest, Purest Dairy Whitener. It is made from partially skimmed milk and sugar. Composition: Fat Moisture Proteins Carbohydrates Minerals Calorific Value: 470 keal/100gm 20% 3% 21% 33% 5%

Fresh Milk
Amul Fresh Milk This is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience.

Amul Gold Milk

Composition : Variety Amul Gold Amul Shakti

Fat(%) 6 4.5

SNF(%) 9 8.5

Amul Taaza

8.5

Special Features : Amul Milk is the most hygienic liquid milk available in the market. It is pasteurised in state of the art processing plants and pouch-packed to make it conveniently available in consumers. Product Specification : Amul milk meets the PFA standards for the respective type of milk.

Amul Taaza Slim and Trim

Chocolate Milk Fresh Cream

Cheese
Amul Pasteurised Processed Cheese 100% Vegetarian Cheese made from microbial rennet. Amul Pasteurised Processed Cheese is made from sodium citrate, common salt, citric acid, permitted natural colours, annatto, emulsifier and class II preservative Composition: Fat 27%

Moisture Proteins Added salt Calorific Value: 340 keal/100gm

45% 23% 2.5%

Amul Cheese Spreads Tasty Cheese Spreads in 3 great flavours. It is made from soft cheese, cheddar cheese and common salt Composition: Fat Moisture Proteins Added salt Sodium citrate 2.5% Calorific Value: 240 keal/100gm 18-20% 60% 14-15% 1.8%

Amul Emmental Cheese The Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma

Amul Pizza Mozzarella Cheese Pizza cheese...makes great tasting pizzas!

Gouda Cheese

For Cooking
Amul / Sagar Pure Ghee Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by diaries with decades of experience.

Ingredients : Milk Fat Composition : Milk Fat Moisture 99.7% 0.3%

Calorific Value : 900 Kcal/100g Special Features : Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience. A rich source of Vitamin A, D, E and K. Product Specification : Meets AGMARK SPECIAL GRADE specification of the Agmark scheme (1938) of government in India.

Cooking Butter

Amul Paneer Ready to cook paneer to make your favourite recipes!

Dhara Edible Oils Largest selling brand of edible oils in India.

Utterly Delicious Pizza

Mithai Mate Sweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste.

Ingredients : Sugar & Milk solids Composition :

Sweetened Condensed Milk Total Milk Solids 31.% minimum Fat Added Cane Sugar 9.0% minimum 40.0% minimum

Partly Skimmed Sweetened Condensed Milk Total Milk Solids Fat Added Cane Sugar 28.0% minimum 3.0% to (.0% minimum 40.0% minimum

Special Features : Produced on the only continuous condensing plant in the country. The product contains on preservatives. Product Specification : Meets BIS standards : IS : 1166 Use of Product : The product can be used to manufacture Ice Cream, Confectioneries like Toffees, Biscuits and Sweets.

Masti Dahi

Desserts
Amul Ice Creams Premium Ice Cream made in various varieties and flavours with dry fruits and nuts. Ingredients : Milk and Milk products, Sugar, Stabilizers & Emulsifiers Composition : Milk Fat 13.5% to 14.5%

Total Solids Sugar Acidity Protein

40% to 41% 15% Approx. 0.17% to 0.19% 3.9% to 4.1%

Flavours :Vanilla, Strawberry, Pineapple, Orange, Rose, Mango, Chocolate, Honey-DewMelon, Tutti Frutti, Litchi, Kesar Pista, Kaju Draksh, Butterscotch, Chocochips, RajBhog and Cashew Break. Packing :50ml cup, 100 ml cup, 500 ml pack, 1 litre pack, 4 litre pack, Chocobar, ice candies, Cones and Kulfies. Product Specification : Product meets BIS specification

Amul Shrikhand A delicious treat, anytime. It is made from chukka, sugar, milk, curd, flavouring agents or fruits like safferum, elaichi, mango, pineapple,etc. Ingredients : Chakka, Sugar and flavouring agents/fruits

Composition: Milk solid-not fat Sugar Flavouring agent Mango pulp Calorific Value: 260 keal/100gm 13.5% 40% 2.5% 0.7%

Fat

5.5%

Special Features : shrikhand is a traditional sweet. It is the only pasfeurized Shrikhand available in the country with smooth texture and exlended shelf life. Made from most modern dairy equipment.

Product Specification : Meets BIS specification No. IS:9532-1980

Amul Mithaee Gulab Jamuns Pure Khoya Gulab Jamums...best served piping hot.

Gulab Jamun Mix

Kulfi Mix

Amul Chocolates The perfect gift for someone you love. Ingredients : Sugar, Cocoa Butter, Milk Solids, Chocolate mass Composition : Milk Fat Sugar Total Fat Coca Solids Milk solids 55% 32-33% 7.5% 20% 2%

Special Features : Meets all requirements under the PFA for boiled sugar confectionary

Healthy Drink
Nutramul Malted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India. Composition: Fat Moisture Proteins Carbohydrates Starch & sugar Cocoa powder 6.5% 2% 11.5% 70% 23% 8%

 Packaging and Labeling Strategy

It refers to wrapping, crafting, filling or compressing of goods to protect them from spoilage, pilferage, breakage, leakage etc. various kinds of goods are placed of packed into appropriate containers for protection and convenient handling. Bulky materials like cotton and jute are compressed into bales. Liquid material like oil and milk are put into bottles and cans. Heavy goods ate orated and fragile products ate placed in boxes, tins or special containers. The packing implies placing products in suitable package for safe and easy handling. Packing involves designing and producing appropriate package for products. It is concerned with the determination of convenient size lots in which the products is to be put on the market and creation of proper package for different lot sizes, a package is a case container, wrapper or other receptive used in packing products. PRODUCT Amul pasteurized butter Amul processed cheese Amul milk Amul full milk cream powder Amulya dairy whitener Amul cheese spread Amul lite bread spread Amul pure ghee Amul Ice-cream Amul mithaee mate Labeling Label is a subject of packaging. Labeling helps in Identifying the Products Describe the Products Promoting the Product through attractive graphics. PACKING Cardboard Tins & cardboard Plastic polythenes Tins Tins Plastic cups Plastic box Tins Plastic cup Tins

All the dairy product marketed by GCMMF on the label-the brand name Amul. Moreover it carries all necessary details like Co.s name, address, date and year of manufacturing, batch no., M.R.P., punch line etc. Thus the Amul has well design packaging and labeling strategy.

 Pricing
PRICE MIX
What is Pricing? The amount of money charged for a product or service, on the sum of the values that consumer exchange for the benefit of having the product or service. In general price is the amount of money charged for a product or service. Historically price has been the major factor affecting buyers choice. Price is one of the flexible element of the price mix. This is the marketing strategy by which companies set price of their product by which they can decide to when they should target in the market and how to position themselves in the market. Therefore the company have three choices:

1. Setting a uniform price: In this strategy the company would have as same price of each product in each region or each sector of the market. This would result not too high in rich countries. 2. Setting a market based price: Here the company would set a price in such a way that every consumer can afford it but this ignores differences in the actual cost from one market another. 3. Setting a cost based price: Here company would use a standard mark up of its cost everywhere but this strategy price the company can be out of the market where it cost is high. in the price being too high in poor countries and

Prices of the Product

The following are the different prices of different products of Amul industries:

Milk and Milk Product

Amul Butter 100 gm 200 gm (Amul lite) 500 gm 60.00 14.00

Prices 20.00

Amul Cheese Chiplet 200 gm Cheese 1 kg Mozzarella 1 kg Mozzarella 250 gm Cheese Slice 100 gm Cheese Slice 200 gm Cheese Tin 400 gm Emmental 200 gm Amul Cheese Spread Garlic 200 gm Plain 200 gm Pepper 200 gm 28.00 28.00 28.00 45.00 154.00 150.00 48.00 23.00 43.00 72.00 60.00

Amul Ghee 15 litre Tin 1 litre Tetra pack 1 litre Tin 2 litre Tin 200 ml Tetra pack 500 ml Pouch 2270.00 155.00 160.00 315.00 30.00 79.00

Sagar Ghee 1 litre Tin 2 litre Tin 160.00 315.00

500 ml Pouch

79.00

Liquid Milk Gold 5 litre Pouch Gold 500 ml Pouch Shakti 500 ml Pouch Taaza 500 ml Pouch Saathi 500 ml Pouch Butter milk 500 ml Pouch 90.00 9.00 8.00 7.00 6.00 3.00

Masti Dahi 100 gm 200 gm 200 gm pouch 400 gm pouch UHT Long Life Milk Gold 1 litre S & T 1 litre Taaza 1 litre Gold 200 ml Taaza 200 ml Chocolate milk 20 ml 24.00 20.00 22.00 7.50 6.50 10.00 4.00 7.00 5.00 14.00

Panner Panner 1 kg Panner 100 gm Panner 200 gm 11.50 22.00 95.00

Amul Shrikhand Elachi 100 gm Elachi 200 gm 9.00 17.00

Elachi 500 gm Elachi 1 kg Kesar 100 gm Kesar 500 gm Mango 100 gm Mango 500 gm Badam-pista 200 gm Badam-pista 500 gm 9.00 40.00

38.00 55.00 9.00 40.00

20.00 45.00

Amul Chocolates Choclaire Milklairs Badam bar 35 gm F & N 40 gm Chocolate milk 18 gm Chocolate milk 35 gm Nutramul 500 gm Jar 500 gm RFI 76.00 72.00 1.00 1.00 10.00 15.00 5.00 10.00

Amulya 200 gm RFI 500 gm RFI 30.00 70.00

Gulab Jamun 1 kg Tin 500 gm Tin Mix 200 gm RFI Amul Mithaimate 400 gm Tin 30.00 72.00 40.00 30.00

Amul Spray 1 kg Tin 1 kg RFI 500 gm Tin 500 gm RFI Sagar S.M.P S.M.P 500 gm pouch Amul Instant Formula Formula I Formula II 105.00 95.00 50.00 138.00 130.00 72.00 68.00

EDIBLE OIL
Dhara Groundnut Oil DFGO 1 litre pouch DFGO 1 litre tetra DFGO 5 litre jar Dhara Mustard Oil DFGO 1 litre tetra DFGO 1 litre jar 45.00 240.00 52.00 56.00 270.00

Dhara Health 1 litre pouch 1 litre tetra 15 litre jar 5 litre jar 59.00 61.00 750.00 310.00

ICE - CREAM
Vanila 50 ml 100 ml 500 ml 1 liter/1.25 litre 4 litre/5 litre Strawberry 50 ml 100 ml 500 ml 1 liter/1.25 litre 4 litre/5 litre Pineapple 100 ml 500 ml 1 litre Alphanso Mango 100 ml 500 ml 1 litre Chocolate 100 ml 500 ml 1 litre Rose 100 ml 500 ml 10.00 35.00 12.00 60.00 100.00 15.00 60.00 100.00 10.00 35.00 65.00 6.00 10.00 35.00 60.00 230.00 5.00 10.00 35.00 60.00 230.00

1 litre Anjir 100 ml cup 500 ml 1 litre 4 litre/5 litre Fresh Strawberry 100 ml cup 500 ml 1 liter/1.25 litre Fresh Litchi 100 ml 500 ml 1 litre Cappucino 100 ml 500 ml 1 litre Butter Scotch 100 ml 500 ml 1 litre Kaju Draksh 100 ml cup 500 ml 1 litre/1.25 litre Kesar Pista 100 ml

65.00 15.00 65.00 120.00 360.00

15.00 60.00 110.00

14.00 60.00 110.00

14.00 60.00 110.00

10.00 50.00 110.00

13.00 50.00 90.00

15.00

500 ml 1 litre

60.00 100.00

Raj Bhog 100 ml cup 500 ml 1 litre Black Current 100 ml cup 500 ml 1 litre/1.25 litre Roasted Almond 100 ml cup 500 ml 1 litre 4 litre/5 litre Tricone Butter Scotch 120 ml Chocolate 120 ml Mini cone 50 ml Milk Bars Frostik 80 ml Chocobar 60 ml Mango Dolly 60 ml Rasberry Dolly 60 ml Shahi Badam Kulfi 60 ml Shahi Pista Kulfi 60 ml Mava Malai Kulfi 60 ml Green Pista Kulfi 60 ml Mini Chocobar 40 ml 15.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 6.00 15.00 15.00 5.00 15.00 65.00 120.00 360.00 15.00 65.00 120.00 15.00 65.00 120.00

Orange Candy 60 ml Mango Candy 60 ml Fundoo Vanila Ball 100 ml Strawberry 100 ml Mango 125 ml Sundae 125 ml Mava Malai Kulfi 35 ml Green Pista Kulfi 35 ml Mango Candy 35 ml Orange Candy 35 ml Popsicle 45 ml Pizza Regular Pizza Jain Pizza Premium Pizza 30.00

5.00 5.00

10.00 12.00 14.00 15.00 5.00 6.00 5.00 5.00 1.50

20.00 20.00

Softy Ice-cream Mix Vanila Ball 1 litre Butter Scotch 1 litre Pineapple 1 litre Strawberry 1 litre Chocolate 1 litre Softy Cone 70 ml 50.00 50.00 50.00 50.00 50.00 5.00

Place

Place is marketing tool which includes the various activities the company undertake to make the product accessible and available to the target customers. Amul has a good channel of distribution having more than 3000 dealers which the customers to have their product. Now Amul are spreading in all over the India. Amuls offices in Ahmedabad are around 15 and 50 in all over in India. Thus, we can say that Amul dairy industry is very well established in India. Amuls products or milk is transported to dealers by vans everyday for their customers giving the quality product.

Place Decision
Retailers often cite three critical factors in retailing success. Location, location and location? A retailers locations is key to its ability to attract customer. The cost of building on leasing facilities have a major impact on the retailers profits. Thus, building on leasing facilities have a major impact on retailers profit. Small retailers may have to settle for whatever location they can finally afford. Long retailers usually employ specialists who select location using advanced method. Amul owns there own retail shops. They have introduce new projects of Vishramnagar Audagarden, Ahmedabad - 380052 Ghatlodia Audagarden, Ahmedabad- 380060 Thaltej Audagarden, Ahmedabad 380054 Pragatinagar Audagarden, Ahmedabad 380013 Premchandnagar

Audagarden, Ahmedabad 380015 Vijay Cross road Audagarden, Ahmedabad 380009 Shyamal Crossing Audagarden, Ahmedabad 380051 Police head quarters Audagarden, Ahmedabad 380004 NID Audagarden, Ahmedabad Civil hospital Audagarden, Ahmedabad 380016 In this way we consider the people of India mostly go to consume ice-cream like

Promotion
Sales Promotion is a key ingredient in marketing campaigns. Where advertising offers a reason to buy, sales promotion offers an incentive to buy. Objectives of Sale Promotion For Amul the objective of sales promotion for consumers are as follows: To attract new triers. To increase repurchase rate of occasional users. To stimulate short term sales. To attract brand switchers.

Sales Promotion Tools There are two types of Sales Promotion tools: 1. Consumer Promotional Tools Major Consumer promotional tools used by Amul are

- Price packs - Extra benefits like 20gm Cheese free on 50gm Cheese pack, one jar free on 2 lt. Icecream family pack. Amul introduces schemes like Dhanteras scheme in which on the purchase of icecream you get free plastic containers. - Amul introduces schemes like free home delivery within 2 kms for order of Rs. 150/or more. - Amul also arranges marriages party on birthday parties orders. They also offers free catering services. 2. Trade Promotional Tools Retailers or distributors are offered discounts or price of on the M.R.P. which may range from 10-15 %. 3. Business Promotional Tools These tools are used to acquired lead over its regional competitors as well as to interest and reward the customers. Amul in trade shows and fairs and setup booths and displays to demonstrates its products. It also offers coupons and gifts during these trade shows and fairs to customers who purchase any products during such shows and win lucky draws.

Advertising
Advertising can be traced back to the very beginning of recorded history. Any paid form of non personal, presentation and promotion of ideas goods or services by an identified sponsor is known as advertising. Advertising is very important tool to combat competition. Amul has got many competitors to compete with. So the company has to give out adapting in new s papers and magazines at regular interval time period. GCMMF success lies in its excellence advertisements in the market. In the beginning GCMMF was nothing that much important on advertisement. But after some time it understand that if it was to enter in the Indian market, it would have to advertisement its product largely in the market so it stated advertisements its products in different media.

Just recently it has adopted a new message or slogan that says Amul, The taste of India and GCMMF has recorded 12% rise in the sales of its products. GCMMF has made its products very popular by advertisement in all the parts of India.

Different Advertising Objectives: Informing When a product is to be introduced in the market the product gives the information about it in advance. In this case objectives is to be build the ad in customers mind. At the time of Uttarayan Amul introduce a new concept of kite bite and chocolate chikki. Persuasive advertising Advertising used to build selective demand for a brand by persuading consumers that it offers the best quality for their money. Combined Advertisement Amul gives advertisement of Nutramul as well as Sagar ghee and also provide inter related scheme. Reminding Advertising Reminding customers that the product may be needed in the near future reminding customers where to but the product keeping the product in customers minds during off seasons maintaining top-of-mind position and product awareness. Amul advertises itself by giving advertisements everyday in newspaper and especially on Sunday, they provide many schemes and discounts.

Entertainment Zone
Books The Amul India Story Ruth Herediya Management Kurein Style MV Kamath The Unfinished Dream

V. Kurein Sponsored Programs Amul Surabhai Doordarshan, India Amul India Show Star Plus Channel Feature Films Sardar The Iron man of India Ketan Mehta Manthan Shyam Benegal TV Films (Coming soon) Utterly Butterly Amul New 30 sec. TV film Amul: The taste of India TVC: 60 sec film Amul Golden Jubliee Manthan TV film: 60 sec film Amul Cheese TV film 40 sec TV film Amul Ice-cream TV film 40 sec TV film

Distribution Channel
Most producers work with marketing intermediaries to bring their products to market. The marketing intermediaries make up a marketing channel also called distribution cannel. Distribution channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption.

A zero level of channel also called a direct marketing channel consists of a manufacturer selling directly to the final customers. A one level channel; contain one selling intermediary such as retailer to the final customers. A two level channel two intermediaries are typically wholesaler and retailer. A three level channel are typically wholesaler, retailer and jobber in between.

GCMMF has an excellent distribution. It is its distribution channel, which has made it so popular. GCMMFs products like milk and milk products are perishable. It becomes that much important for them to have a good distribution. So Amul dairy industry has two level distribution channel in which there are a wholesaler, retailer to final customer.

Distribution Chart
Products

Agents

Wholesaler

Retailer

Consumer

We can see from above figure that GCMMF distribution channel is simple and clear. The produced in the plants are sold to whole sale dealers than to retailers and then the products comes in the hands of the consumers.

Forecasting Demand

GCMMF produces perishable goods so it becomes very important for them to forecast the market demand for its products. In any industry forecasting the demands always remain alert in forecasting the demand. In different like in the summer, in monsoon season sometimes flood water situations appear in these situations demand of milk may go high. In the case of GCMMF, it has been observed that sales forecast is on the bases of projection made by utilizing past sales data. Next years Sale = Current years Sale X Current years sales Last years sales

Branding
Branding is a very important part of a production. Consumers view a brand as an important part of a product and branding and value to a product. For example, most consumer would buy Amuls gold brand of milk very easily. But if the same milk is put into an unpopular companys brand. The people might not give that much important to it. GCMMF made branding a major issue in its product strategy. Developing a branded product requires a great deal of long term marketing investment for GCMMF.

Storage: (In technology)

GCMMF is a perishable goods producing industry so it is very important for it have a good storage facility. GCMMF has milk per day, which is largest in Asia. Milk & other products are perishable. So there lay a danger products being perished while packing distributing them. But GCMMF has an outstanding storage facility. The distribution vehicles are fully air-conditioned. The products are stored in the company under minus temperature.

Management of Information System

GCMMF federation has now integrated its country-wide operations through successful implementation of the enterprise wide Integrated Application System. GCMMF is among the top 100 IT users in the country. Currently there are mote than 3000 computers installed in

different village societies, which support the Automated Milk Collection System. GCMMF distributors can now place their order on their internet website www.amulb2b.com . We continue to receive a good consumer response to our website www.amul.com which is noted for its distinct features like Cyber Store for ice-cream and other milk products, cricket ratings and the recently launched e-greetings site.

Managing Competition

The Indian market is dominated by a large number of small local manufacturer and regional players. There are an estimated 150 manufacturers in the organized segment which accounts for 30-35% of sales and about 1000 units in the unorganized segments of the market. In the organized segment the significant brands are Kwality Walls , Vadilal, Amul, Mother dairy and Baking Robbins. They have also competitor in the market. They felt very tuff competition in our country and outing countries

For Liquid Milk

Payal Milk Sardar Milk Super Milk Sagar Milk Gayatri Milk Samruddhi Milk

For Icecream products Gokul Ice-cream Dairy-den Ice-cream Quality Walls Ice-cream

Havmior Ice-cream Max Vadilal Ice-cream

For Ghee Product

Gopi ghee Krishna ghee Gayatri Ghee Abad ghee

Butter

Chocolate

Nature butter

Cadburry Max Dairy Milk Five Star Nestle

Cheese

Britannia Lebon

Products Life Cycle

All products have a limited life. They passes through different stages of life cycles: o Introduction Stage o Growth Stage

o Maturity Stage o Decline Stage As far as dairy products is concerned, it is in the Maturity Stage of the product life cycle. Thus though dairy industry in maturity stage, still it has lot of market potential in the coming years.

Marketing Strategies as a Market Leader

Differentiation and Positioning Strategies

Differentiation Strategies Any market offering an be differentiated along five dimensions: Product, Services, Personnel, Channel, or Image

** Amuls differentiation strategies are - Its major focus on distributors and retailers. It offers 10-15 % margin to distributors and 57% to retailers which is higher than competitors. - Another differentiating point is its quality. - The lots of flavors of its dairy products is also different from its competitors. - Its pricing is very reasonable compare to competitors. Positioning Strategies It has tries to position through punch line like Amul- The Taste of India for its all products.

Marketing Ethics
There are some marketing ethics followed by NDDB. They all are given 7 discussed briefly. To provide good quality product:

To provide good quality product is the first ethic of marketing each & every profit making organization has to follow this. Because if you provide good quality product, customers will be satisfied. Satisfied customers create a successful company. To provide speedy & efficient service: It is another one important marketing strategy. An organization should try to provide speedy & efficient service that gives the customer satisfaction. An organization is providing speedy services that is must. To give people knowledge about nutrition: NDDB is the unit which is connected with milk & only milk. As we know, milk has greater nutrition value. People connected with NDDB are expects in this field. So many doctors are also with them. The main tasks of their selves is to sat the people that milk and milk products are very useful for the over all working of our body. By much advertisement they are telling us that milk products are necessary for body. To create Customers: The basic ethics of marketing is to create, customers. We can create customers by providing good quality product & highly efficient service. It is our gain to create as more as possible customer. Here, we had seen the marketing ethics followed by the NDDB and GCMMF which helps to take diploid about marketing policies.

PRODUCTION AND SUPPLY

Indian dairying has made rapid strides, but the animal productivity has remained low. A wide variation in milk productivity per animal exists among different countries. Against the world average of 2038 kg per location, the highest is around 9000 kg, U.K 5462 kg, Australia at 4451 kg. At the other hand Indian average is about 987 kg per location. Here it is appropriate to differentiate between high and low but economic yields. For e.g. New-Zeeland has much lower productivity of 2986 kg compared to many western countries yet it is counted among worlds leading dairying nations with reputation for its economic milk production. i.e. low-cost production. In most of the undeveloped countries including India methods of milk production are economical. Within India milk yields vary widely. At one end there are herds in institutional farms, reared under modern management with an average yield of 200-3000 kg. At the other end animals with an average yield of just 400-800 kg. This low productivity is due to: 1. Gradual breed deterioration from general neglect over continues 2. Chronic shortages of feed and other fodder coupled with their poor nutritive value also lead to lower productivity as well as poor fertility of dairy animals. 3. If the effect of better breeding can be largely neglected if animals are not properly fed.

PRODUCTIVITY HOLDS THE KEY

The dairy industry in India made raped progress particularly during the last two decades. Today, India occupies first position in milk production in the world, surpassing the US. The credit no doubts goes to the Operation Flood which has played a key role in the development of dairying. India is a milk consuming nation. This coupled with our large population, ensures steady increase in demand for milk. The employment potential of Indian dairy sector is substantial. This sector provides additional income and generates job opportunities for 80 million farmer families. More than 70% of marginal farmers and landless labourers maintain diary animals to supplement their incomes.

At present, dairy farms are owned by individuals investors and multi-nationals. The cooperative sector has contributed significantly for the success of white revolution in India. There are more than 97,000 milk co-operative in 264 districts. This sector grows at the rate of 6.5% per annum.

MILK PRODUCTION IN INDIA

Production (In million tonnes) 41.5 44.0 46.1 46.7 48.4 51.4 53.7 56.3 58.6 70.0 75.0 78.1 81.0 Value (In million rupees) 1,31,650 1,47,670 1,62,010 1,82,880 2,07,900 2,47,800 2,92,690 3,46,500 4,04,000 5,00,000 5,35,725 5,78,665 6,52,485

Year 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1997-98 1998-99 1999-00 2000-01

Production of milk rose from 20.7 million tonnes in 1969-70 to 75 million tonnes in 1998-99. However 45% of the total milk is still handled by the traditional sector. In 1987, 77 million buffaloes produced about 50% of the total milk production in the country. In the same year, about 200 million cows produced about 45% of the total milk production.

Projected Per Capita milk availability (1991-92 to 2000-01) (in grams/day)

250 200 150 100 50 0 199192 199293 199394 199495 199596 199697 199798 199899 199900 200001 181.11 186.4 191.1 197.7 203.7 209.9 216.5 223.3 230.5 238.06

In a country like India where a large population is dependent on agriculture for livelihoods, the dairy industry assumes special importance. India has emerged as the largest milk producing country in the world with an annual production is likely to reach 15.2% by 2004 A.D. Indian milk production is not only economical but highly energy efficient. The Operation Flood launched in 1970 could raise the per capita milk consumption from 112 grams in 1970-71 to 235 grams in 1998-99, the world average being 285 grams. But a large population in the country still does not get the required quantity of milk. In the rural areas it is only 121 grams a day.

Growth of milk production in India (in million tonnes)

100 80 60 40 20 0 17 20 22 31.6 53 69 86

1950- 1960- 197051 61 71

1980- 1990- 1996- 200081 91 97 01

The major mills producing states are UP 18.3%, Punjab 10.2%, Rajasthan 7.8%, MP 7.6%, Maharashtra 7.4%, Gujarat 7%, Andhra Pradesh 6.3%, and Haryana 5.8%. These states account about 70% of the total milk production.

Production of milk by species

Species Buffaloes Cow Coat, etc. Total Production (MT) 34.5 30.0 1.8 66.3 Percentage %) 52 45 3 100

Strengths of Amul (SWOT)

Flawless hygiene Quality Ingredients Experts Chef

Classic Cuisine Innovate Preparation Fast Response Neat Packing Friendly Service Irresistible Taste 100% Vegetarian Products Market Share of About 28-29% in Gujarat Selling 50,00 litres of Ice-cream every day.

FINANCE DEPARTMENT
Introduction
Financial management is that managerial activity which is concerned with the planing and controlling of the firms financial resources. Finance is nothing to other but the money. Money is necessary input for economic activities. In the other wards Finance is the common denominator the vast range of corporate objectives. The major part of any corporate plant must be expressed in financial term. This unit is co-operative, so the finance is raised from members by a way to share capital. In this share capital is limited. This unit has invested so many rupees in the structure of organization. Finance for this unit based on share capital they are given 15% dividend to the share holders. Amul has a long term finance project.

Financial Details
Name of bankers The Kaira district State Bank of India State Bank of Saurashtra UTI Bank Ltd Corporation Bank

Name of Auditors : K S DESAI Special Auditors (Milk) Milk Audit Office Anand

Highlights Of Trading And P & L Account

Particulars Purchases Sales Processing expenses Packing expenses Power & Fuel expenses Salary & wages Repair & maintenance Raw material consumption Marketing expenses Miscellaneous expenses 2001-2002 2863073762 4687806783 12473006 267523189 233990391 132527532 33726844 800117555 2596396 2223598 2000-2001 3127610687 5091812736 17433143 337660231 295347066 127628470 37935798 873255754 3195280 2688325

2001-2002

Net Profit Distribution of reserve fund 25% Share Dividand

2000-2001

Net Profit Distribution of reserve fund 25% Share Dividand

Trend Analysis of Profit & Loss Account for Period Particulars Sales Increase/Decrease of Stock Total Income Expenses COGS Processing expenses Packing expenses Power & Fuel expenses Salary & wages Repair & maintenance Raw material consumption Marketing expenses Miscellaneous expenses Total Expenses Net profit transferred to capital A/c Interpretation: The sales are increased by 7.93%. The company has controlled raw material cost significantly and has attained economic of scale. The salary & wages expenses is increasing. The processing 31/03/2001 100 100 100 100 100 100 100 100 100 100 100 100 100 100 31/03/2002 92.07 (91.54) 92.90 93.92 71.55 79.23 79.22 103.84 88.91 91.62 81.26 82.71 92.90 113.55

expenses is decreasing. The selling & distribution expenses are decreasing. It has to manage the cutthroat competition.

Common Size Statement of Profit & Loss Account for Period Particulars Sales Other income Increase/Decrease of Stock Total Income Expenses Processing expenses Packing expenses Power & fuel Expenses Salary & Wages Expenses Repair & Maintaince Expenses Raw material consumption Marketing expenses Miscellaneous expenses Total Expenses Interpretation: The proportion of other income is increased. So that the reducing in decrease in stock. The proportion of processing, packing, marketing, power & fuel expenses is decreasing. The salary & wages and repair & maintenance expenses is increasing. So that company is try to reduce their expenses. 31/03/2001 100 38.58 61.42 100 1.03 19.92 17.42 7.53 2.24 51.52 0.19 0.15 100 31/03/2002 100 38.93 61.07 100 0.85 18.01 15.76 8.92 2.27 53.87 0.17 0.15 100

Hghlights Of Balance Sheet

Particulars

2001-2002

2000-2001

Share capital Reserves & surplus Loans Current liabilities Fixed Assets Investment Stock Advances & debtors Cash & bank balance

200000000 729968022 1180019189 569515380 2402873468 135732554 742763385 464370707 331549715

200000000 727935581 150985785 557005785 2390406846 132240711 761026395 618710965 326145366

Trend Analysis of Balance Sheets As On that Date

Particulars Capital & Liabilities: Sources Of Funds: Share capital Reserves & surplus Loans Current liabilities Total Sources of Funds Assets Uses of Funds Fixed Assets Investment Current Assets Inventories Advance & Sundry Debtors Cash & Bank Balance Total Uses Of Funds Interpretation:

31/03/2001 100 100 100 100 100

31/03/2002 100 101 7.82 102.25 163.79

100 100 100 100 100 100

100.52 102.64 97.60 75.05 101.66 163.79

The reserve & surplus is increased so that most of the profit is distributed to reserve & surplus. So that it is good for the company. Net fixed assets is increased. The investment is also increased. Inventories is decreased. So that it is good of the company. So that company in not

face the working capital, problem. The loans decreased 100 to 7.82 so that company is to pay less interest. So that profit is increased. The company has relied on long term debt for equity. So that it is good or the company.

Common Size Statement for B/S as On Date Particulars Capital & Liabilities Sources Of Funds Share capital Reserve & Surplus Loans Current Liabilities Total sources of fund Assets Fixed Assets Investment Current Assets Inventories Advance & Sundry Debtors Cash & Bank Balance Total Uses Of Funds Interpretation: The proportion of the capital is reduced. Because of increasing the loan. So that the company is to pay higher interest rate. The debt of the company is increased. The reserve & surplus of the company is reducing. The proportion of the liability of the company is reducing from 34.04 to 21.25. The company has efficiently used fix assets to augment sales. Half of the capital is invested in fix assets. The proportion of the inventory is moderate. The recovery of the bill receivable is fast. Company is trying to reduce the fix cost. 31/03/2001 12.23 44.50 9.23 34.04 100 56.53 3.13 18.00 14.63 7.71 100 31/03/2002 7.46 27.25 44.04 21.25 100 58.93 3.33 18.22 11.39 8.13 100

Ratio Analysis
Ratios Liquidity Ratio Current ratio Quick ratio Turnover Ratio Inventory turn Over ratio Debtor turnover ratio Creditor turnover ratio 2000-2001 2001-2002

3.30 1.93

2.36 1.64

1.17times 44days 20days

1.36times 36days 18days

Leverage Ratio Debt equity ratio Profitability Ratio Net profit margin Return on Assets ROCE Return on total assets Turnover Interpretation:

0.75

5.90

0.25 0.54 1.00 0.26times

0.31 0.61 1.32 0.25times

The company has high current ratio so it has the ability to discharge current liabilities by generating cash from current assets. So it is good for the company. The company enjoys high debt equity ratio it shows the aggressive entrepreneurial spirit of promoters. So the company has to increase the burden. Because company is to pay high interest. Inventory ratio is low. So it shows the inefficiency of inventory mgt. Soothe Company is try to increase the inventory turnover ration. It is bad for the company. So that average collection period is low. So that it is good for the company. The net profit margin is around o.31. So that company is try to increase the net profit. The return on fixed assets is low. So that the money is blocked. The financial position is unsatisfactory.

Distribution Of Profit
2001-2002 2000-2001

Net Profit DISTRIBUTION Reserve fund (25%) Contribution toward education fund of Gujarat co-operative union Share dividend (15%) Dividend equalization fund General reserve Charity fund Co-operative propaganda Education fund Research & development fund

14574181

12834473

3643545

3208618

300000 10410000 165477

300000 9110000 43171 138147

44127 11032 ---------

17269 8634 8634

Sales Turnover Of The Amuls

Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Rs. (Million) 11140.00 13790.00 15540.00 18840.00 22192.00 22185.00 22588.00 23365.00 Us $ (Million) 355.00 400.00 450.00 455.00 493.00 493.00 500.00 500.00

Sales Turnover Graph

25000

20000

15000

10000

5000

0 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02

Significant Accounting Policies

The union follows accrual system of accounting in the preparation. The financial statements are prepares on the historical cost convention and in accordance with the generally accepted accounting principles. Fixed Assets are values at cost. Depreciation on fixed assets is provided on written down values methods. Raw Materials, packing Material, Semi Packed Goods And Goods in Transit are valued at cost on FIFO basis.

Finished goods in case of Anand, Kanjari, Mogar and Khatraj are valued at the Exfactory price less 8%, which is fair estimation of the Direct Cost. Excise duty applicable on Finished Goods stock has been include in the valuation of Finished Goods. Sales includes excise Duty. Investment is for long term period and is stated at cost.

DUPOINT ANALYSIS FOR THE YEAR 2001-02

Return on Total Assets : 0.61 %

Net Profit Margin : 0.31%

Total Assets Turnover : 0.26 times

N.P. : 14574181

Net Sales : 4687806783

Net Sales : 4687806783

Total Assets : 4077289829

Net Sales : 4690030381

Total Cost : 1485178511 Fixed Assets: 2402873468 Current Assets: 1674416361

COGS : 1024615466

Operating Exp.: 460563045

Cash + Bank: 331549715

Debtors : 464370707

Inventory : 742763385

Others: 135732554

RESEARCH AND DEVELOPMENT

The Research and Development facilities of Amul dairy endeavors continuously to bring out new and delivery flavors. The company does not a point any special staff for approval of its new vanities managers themselves keeping contributed in this regard. The main purpose of its plant to increase export. They develop their production process to use new technology. Research and Development has also taken a sponsored project.

PEST ANALYSIS

POLITICAL FACTOR
Political factor is very important aspect for the growth of any industry, thus the political factor can immerge as opportunity or threat for that industry.

Regulatory Environment in the Dairy Processing Sector

The Indian processed dairy industry has grown and diversified enormously in the last few years. To ensure the proper development and growth of this industrial sector, the Government of India has instituted various laws and regulations. The various regulations that govern the dairy processing industry can broadly be classified into:

Compulsory Legislation Prevention of Food Adulteration Act, 1954 This Act is the basic statute that is intended to protect the common consumer against the supply of adulterated food. This specifies different standards for various food articles. The standards are in terms of minimum quality levels intended for ensuring safety in the consumption of these food items and for safeguarding against harmful impurities and adulteration. The Central Committee for Food Standards, under the Directorate General of Health Services, Ministry of Health and Family Welfare, is responsible for the operation of this Act. The provisions of the Act are mandatory and contravention of the rules can lead to both fines and imprisonment. Milk and Milk Product Order (MMPO) 1992 The Milk and Milk Product Order (MMPO), 1992, issued on June 9, 1992 seeks to ensure the supply of liquid milk, an essential commodity, to consumers by regulating its processing and distribution. Within eight years of its operation, the Central/State Registering Authorities have till December 2000 registered 666 units with a total processing capacity of 65.8 million litres per day (mlpd). Silent Features of the MMPO Order include the following:

Registrations for units handling up to 75,000 litres of milk per day are granted by the State Governments and units with more than 75,000 litres per day capacity are registered by the Central Registering Authority. The Certificate also specifies the milkshed area, which, under the order is defined as a geographical area demarcated by the Registering Authority for the collection of milk by the registered unit. Maintenance of specified hygienic conditions in the premises where milk and milk products are handled, processed, manufactured or stored. The collection, transportation and processing of milk normally centres around the operations of a processing plant. The region from which the marketable surplus of milk production finds its way to a processing plant is called a 'milkshed'. The concept of milkshed areas is pivotal to the MMPO. For an orderly development of the dairy industry, a proper assignment/allocation of milkshed is critical. The dairy industry is regulated in most countries through various ways. Many subsidise part or whole of domestic production. Imports are commonly restricted, and exports frequently subsidised. High dairy price supports in many countries are put in place to stimulate production to the extent that subsidies for exports are necessitated to maintain domestic dairy programmes In the United Kingdom, all the milk produced by farmers is procured by the cooperatives. Private dairies are required to buy their milk requirement from cooperatives. New Zealand has no private sector dairy plants. As many as 90 per cent of dairies in the erstwhile West Germany and 100 per cent in Denmark, Netherlands and Sweden are in the cooperative sector. In the United States, 70 per cent of the dairy industry is cooperative. Dairy programmes are subject to more Government participation or regulation than most other domestic agricultural industries in the USA. There are also Federal Milk Marketing Orders and movement barriers in the USA for "orderly marketing control, which is associated with stabilising fluid milk prices, providing secured and dependable markets for individual farmers producing milk primarily for the fluid market and improving the balance of market power between farmers and handlers. In the emerging liberalised global scenario, trade-distorting agricultural policies have been the focus of the GATT multilateral trade negotiations. With the liberalisation of agricultural trade

under the new GATT regime, the heavy subsidies prevalent in the dairy sector in the countries of the EU as well as in the USA will have to be brought down in the next few years. The competitive advantages of the Indian dairy industry are then considered to be substantial. With substantial and continued investment in building up milk production, India can emerge as a major exporter of dairy products in the next few decades. Standards on Weights and Measures (Packaged Commodities) Rules, 1977 These Rules lay down certain obligatory conditions for all commodities that are packed form, with respect to declarations on quantities contained. These Rules are operated by the Directorate of Weights and Measures, under the Ministry of Food and Civil Supplies. Export (Quality Control & Inspection) Act, 1963 The Export Inspection Council is responsible for the operation of this Act. Under the Act, a large number of exportable commodities have been notified for compulsory pre-shipment inspection. The quality control and inspection of various export products is administered through a network of more than fifty offices located around major production centres and ports of shipment. In addition, organizations may be recognized as agencies for inspection and /or quality control. Recently, the government has exempted agriculture and food products, fruit products and fish and fishery products from compulsory pre-shipment inspections, provided that the exporter has a firm letter from the overseas buyer stating that the overseas buyer does not require pre-shipment inspection from official Indian inspection agencies.

Pollution Control
No Objection Certificate from Pollution Control Board is a must.

Voluntary Standards
There are two organizations that deal with voluntary standardization and certification systems in the food sector. The Bureau of Indian Standards looks after standardization of processed foods and standardization of raw agricultural produce is under the purview of the Directorate of Marketing and Inspection. Bureau of Indian Standards (BIS) The activities of BIS are two fold, the formulation of Indian standards in the processed foods sector and the implementation of standards through promotion and through voluntary and third party certification systems. BIS has on record, standards for most of processed foods. In general, these standards cover raw materials permitted and their quality parameters, hygienic conditions under which products are manufactured and packaging and labelling requirements.

Manufacturers complying with standards laid down by the BIS can obtain and "ISI" mark that can be exhibited on product packages. BIS has identified certain items like food colours/additives, vanaspati, containers for packing, milk powder and condensed milk, for compulsory certification. Directorate of Marketing and Inspection (DMI) The DMI enforces the Agricultural Products (Grading and Marketing) Act, 1937. Under this Act, Grade Standards are prescribed for agricultural and allied commodities. These are known as "Agmark" Standards. Grading under the provisions of this Act is voluntary. Manufacturers who comply with standard laid down by DMI are allowed to use "Agmark" labels on their products. Other Government Regulations Industrial Licence: No licence is required for setting up a Dairy Project in India. Only a Memorandum has to be submitted to the Secretariat for Industrial Approvals (SIA) and an acknowledgment is to be obtained. However Certificate of Registration is required under the Milk and Milk Products Control Order (MMPO) 1992. Foreign Investment: Foreign Investment in dairying requires prior approval from the Secretariat of Industrial Approvals, Ministry of Industry, as dairying has not been included in the list of High Priority Industries. Automatic approval will be given upto 51% Foreign Investment in High Priority Industries. In case of other Industries, proposals will be cleared on case to case basis. Government may allow 51% without enforcing the old limit of 40% applicable under Foreign Exchange Regulations Act at its discretion.

Foreign Technology Agreements:

Foreign Technology Agreements are freely allowed in high priority industries under the following terms: Lump sum payment of Rs 10 million Royalty payment of 5% on domestic sales and 8% as exports subject to total payment of 8% on sales turnover, over a 10 year period from the date of agreement or 7 years from commencement of production.

Foreign Technology Agreements in dairying also need prior approval. Foreign Exchange required for payment of Royalty will have to be purchased at market rates. Foreign Technicians can be freely hired. Import of Capital Goods Import of capital goods is automatically allowed if it is financed through Foreign Equity. Alternatively, approval is needed from the Secretariat of Industrial Approvals. The approval depends on the availability of Foreign Exchange Resources.

Import of Second Hand Capital Goods Import of Second hand goods is allowed subject to the following conditions: Minimum Residual life of 5 years The equipment should not be more than 7 years old. A certificate from the Chartered Engineers of the country of origin certifying the age and the Residual life is to be produced. Import will be allowed only for actual users. Dividend Balancing Remittances of dividend should be covered by earnings from exports recorded in the years prior to the payment of dividend or in the years of the payment of the dividend.

WTO norms may milk Indian dairy dry

IN INDIA, dairy farming contributes significantly to the generation of employment in the rural areas, supplementing the income of small and marginal farmers and landless labourers, particularly in the rain-fed and drought-prone areas. Allied sectors, such as animal husbandry and fisheries, which have a negligible share of GDP in agriculture, grew rapidly compared to the crop sector in 1980-96. Today, about a fourth of the GDP in agriculture is accounted for by the allied sectors, in which animal husbandry accounts for the lion's share. The growing diversification of agriculture is also an indication of changing consumption preferences and income levels. So far, this activity was protected from international competition through import duties and restrictions. However, consequent to the Uruguay Round of Multilateral Trade Negotiations in 1994, to which India is a signatory, this sector is being gradually exposed to the international market.

The WTO provisions may affect the Indian dairy in two ways. First, Indian dairy products may have to compete with the major producers of processed dairy products such as the European Union (EU), the US and the Oceania countries, such as Australia and New Zealand. Second, in the absence of import restrictions, domestic dairy products may have to compete with cheaper imports. Will Indian consumers then discard domestic products? Will Indian butter become bitter? If this happens, the pattern of dairy development will go askew, affecting income distribution and may lead to social unrest. It is, therefore, necessary to effectively fortify the dairy industry from international onslaught and help the poor generate income and raise their standards of living. According to FAO statistics, of the world milk production of 556 million tonne (MT), roughly two-thirds is concentrated in the developed countries. The erstwhile East European bloc and West Europe together account for 18 per cent and South Asia, including India, 17 per cent. North America, consisting of the US, Canada and Central America, produces 24 per cent, the Oceania countries produce 4 per cent, while the rest is from the remaining countries. About 86 per cent of the world production comprises cow milk and only 10.3 per cent is buffalo milk, mostly confined to the South Asian countries. About 72 per cent of the production of cow milk is concentrated in developed countries such as the US and the EU, accounting for about 50 per cent of total world milk production. Today, India ranks first in milk production and has the largest cattle and buffalo population. Thanks to Operation Flood, or the `white revolution', and cooperative efforts, which raised milk output from 22.5 MT in 1971 to 71 MT in 1997, the annual growth rate is 4.7 per cent, perhaps the highest in the world. The per capita availability of milk rose by around 2 per cent per annum in the same period. Milk trade Of the total milk production, only 5-6 per cent is traded globally. Liquid milk is not traded. The trade is confined only to processed milk products such as skimmed milk powder (SMP), whole milk powder (WMP), butter and ghee (BG) and cheese. More than 90 per cent of the total production of processed dairy products is concentrated in the EU, the US, India, Pakistan, Brazil, Poland, Australia and New Zealand. About 75 per cent of the demand comes from 8-9 nations. The pattern of world trade in milk production is also segmented. Most of the low-value dairy products are exported to developing countries while the high-value milk products are

exchanged among developed countries. India has been exporting negligible quantities of SMP and WMP. WTO provisions To make the dairy product market more competitive and improve efficiency of production, multilateral negotiations in 1994 adopted a package of measures for countries producing dairy products. These measures have to be adhered to by all WTO signatories. Some of the important provisions are liberalising trade and government policies to augment world import demand for dairy products, commitments on market access, reduction of domestic support and subsidies on exports for the removal of distortions in the domestic market. India is a signatory to the WTO and has already removed quantitative restrictions (QRs) on 714 items.

The impact
Provisions such as the commitment of domestic support and subsidies on exports under normal circumstances may not have a negative impact on the Indian dairy industry, at least in the short run. The Agreement on Agriculture (AoA) mentions that these provisions are applicable only to select dairy products. Even among these products, only a few are important. A country can successfully reduce support to unimportant items and support the important ones, bringing down the total support well within the GATT permitted limit. As for subsidies on exports, though India tops in milk production, the export of milk and milk products is negligible. Among the processed dairy products, India exports only butter and ghee and has a negligible presence in SMP and WMP trade. However, these provisions might affect Indian dairy through a change in the import demand. A substantial cut in the export subsidies by the developed countries, which are also bound by the WTO agreement, may push up world prices, making domestic products, such as butter, cheaper. However, the impact of these provisions will largely be determined by world price behaviour. Other provisions, such as market access, removal of QRs, non-tariff barriers (sanitary and phyto-sanitary regulations) and GMO issues are real cause for concern. The WTO supporters argue that the withdrawal of domestic support and subsidies on exports will increase the international prices of the dairy products. Countries with relatively lower costs of production may enjoy comparative advantages and cash in on the external demand.

As per these provisions, the EU, which accounts for 40 per cent of the world trade of dairy products, reduced the subsidy on butter from $1,481 a tonne in 1990 to $1,392 in 1995, with a commitment to reduce it to $947 by 2000. Similarly on SMP, the subsidy was reduced from $430 a tonne in 1990 to $406 in 1995 with a commitment to reduce it to $275. Thus, the commitment of the EU has been to reduce 36 per cent of the subsidies uniformly. The US is also committed to slashing subsidy on these products. However, looking at the behaviour of the world prices of dairy products, one gets a contrary picture. Instead of the world prices being pushed up, as was believed, they actually declined. For SMP, the price declined from $2,025 a tonne (fob) in 1995 to $1,452 a tonne. WMP experienced a similar price reduction. In some quarters this is attributed to the increased subsidy by the EU and the US and to the policy of differential subsidy across the globe. In the US, the rate of subsidy is reported to be higher on the consignments of milk powder destined to South Asia, perhaps to nullify the freight advantage enjoyed by Oceania countries such as Australia and New Zealand, which are nearer to South Asia. Another reason is the dampened demand for dairy products from the crisis-stricken Russian Federation, which has the largest share in the total demand for milk products. In fact, the world market structure for dairy products appears to be oligoponist-oligopoly, wherein the price determination does not follow the rules of supply and demand but of price leadership and price wars. In fact, the EU has become the price-setter in international trade. In such a situation, however, questions arise over how the WTO provisions can increase the competition in the world market. This does not defy the efficiency argument. The only beneficiary of depressed world prices is New Zealand which produces dairy products more economically, even without subsidy. As a result, its share in the total exports rose more than 20 per cent. India has already agreed to zero tariffs on SMP and other imports (the other country being Singapore). Due to the depressed world price of SMP, the cheaper product would be available to the domestic consumers. This may disturb SMP production, its price structure and the price structure of milk and milk products. The Indian dairy industry should immediately advocate the imposition of tariff equivalent to the difference between the world and domestic prices of dairy products with some premium on it.

Countries such as New Zealand and Australia, which produce dairy products at the least cost without subsidy, have imposed 10-20 per cent tariff on SMP imports. India would also have to minimise production costs to protect the Indian dairy industry. A wide gap between the cost of production and the world market price may enhance the competitive advantage to increase exports and insulate the domestic market from cheaper imports. This calls for dairy development on a more systematic and scientific lines, additional investment in infrastructure, improved quality and better breeds of animals, transfer of technology and a more professional approach to dairying. Non-tariff barriers Apart from the tariffs, there could be many non-tariff barriers, either under provisions of Technical Barriers to Trade (TBT) or imposed by the countries, to be overcome by Indian dairy products to make inroads into the markets of developed countries. Though the WTO provision lays down that the minimum five per cent market access may have to be given by importing countries, the developed countries impose certain quality norms and product specifications and other sanitary and phyto-sanitary regulations. The EU now insists that milking cows be fully mechanised to avoid contamination, and potable water used to process milk. It also prescribes that only steel machinery and filtered air be used for processing. To adhere to these specifications, the Indian dairy industry may have to invest much capital in the required infrastructure, either through co-operative efforts or corporate sector intervention. However, this may increase the cost of milk at the present yield levels. The expansion of milk production through better animal variety, and breeds, therefore, becomes a precondition for such an approach.

Quality Control & Pre-Shipment Inspection

The Export Inspection Council of India (EIC) was set up by the Government of India under Section 3 of the Export (Quality Control and Inspection) Act, 1963 to provide for sound development of export trade through quality control and pre-shipment inspection Approval Of Food Products Processing Units Under Fsms EIC continued to operate mandatory export certification under the above system for fish and fishery products (F& FP), egg products, milk products.

A total of 35 units have been approved by the EIC for export of milk products to the countries of EU.

Regulations About Waste

Discharge Over the years the discharge of wastes have increased and regulations were imposed in various countries all over the world making it mandatory on the part of the industries to treat the waste before it is discharged into the rivers or lakes to avoid pollution of water. India is no exception in this regard and an Act was passed in the Parliament in 1974 to prevent and control water pollution

Dairy Waste Generation in India Regarding dairy industry in India, improved facilities to farmers and wider use of mechanical refrigeration have made it possible to collect milk over considerable areas and to bring it to a large central processing plant either for marketing as fluid milk or after conversion into products. This has resulted in greater concentration of waste and the diary waste being rich in nutrients may endanger aquatic life if let into rivers or lakes without treatment. A dissolved oxygen level of 7 PPM is present in rivers or lakes and if this level reaches below 5 PPM the aquatic life is in danger because the micro-organisms present in the waste or in the water of the river or lake use the dissolved oxygen to convert the organic matter constituting of protein, lactose, Fat, etc. into end products. Hence it has become necessary for the dairy industry to treat its waste before it is discharged into rivers or lakes. Treatment Process Concept : The raw effluent, comprising of dairy waste and domestic waste bears oil and grease, high amount of suspended solids and bio-chemical oxygen demand. The conceptual approach of the treatment includes the removal of oil and grease, coares and settleable suspended particles, dissolved organic matter and handling of sludge for disposal. Substantial amount of free oil and grease is removed by skimming operation in the grease trap. However, the heart of this treatment system is the aerobic-biological reactors which are designed on the basis of activated sludge process. The activated sludge treatment process basically involves the degradation of organic matter by the action of various micro-organisms as depicted in the following equation. Organics + Micro + Oxygen + Nutrients -> New cells + Carbon-dioxide + Ammonia + Energy.

This could be restated as : Waste + Sludge + Surplus Sludge + End product In this biological process, a part of the newly synthesised sludge undergoes oxidation called Endogeneous respiration. Cells + Oxygen - End products + Less cells The efficiency of the system mainly depends upon the concentration of active micro-organisms present to perform the assimilation of organic matter. The activated sludge, in general consists bacterial and micro-organisms like protozoa, rotifiers, etc. The desirably environmental conditions like sufficient dissolved oxygen, substrate and nutrients are required for cell growth and energy for various metabolic functions. It is, essential that the biological floe should readily separate from the treated waste water in the final clarifier. The concentration of microflora is maintained by routing the mixed liquor flowing from the aeration tank through a secondary clarifier and recycling most of the settled biological solids back to the aeration tank. Delhi Mother Dairy has set up an effluent treatment plant which was commissioned in April, 1982. The capacity from 1000M3 was emcreased up 1650M3 in 1986. Not only is the waste waster treated by the activated sludge process in this plant, but also the sewage from the Dairy and adjoining staff quarters.

TECHNOLOGICAL FACTORS
Some areas of Indian dairy industry can be strengthened by the induction of specialized technologies and equipment from overseas. These include: Raw milk handling: It needs to be upgraded in terms of physico-chemical and microbiological attributes of the milk collected. The use of clarification and bactofugation in raw milk processing can help improve quality of the milk products. Milk processing: Better operational efficiencies are needed to improve yields and reduce wastage, minimize fat/protein losses during processing, control production costs, save energy and extend shelf life. The adoption of GMP (Good Manufacturing Practices) and HACCP (Hazard Analysis Critical Control Points) would help manufacture milk products conforming to international standards. Packaging: Another area is the range of packing machines for butter, cheese and the like. Better packaging can help retain nutritive value of products packed and extend shelf life. A cold chain distribution system is needed for proper storage and transportation of dairy products. Value-added products: There's immense scope for value-added products like desserts, puddings, custards, sauces, mousse, stirred yoghurt, nectars and sherbets. In this 21st Century, the Indian dairy industry has set its goal to better manage its national resources for enhancing milk production and upgrading milk processing through newer technologies. Multinational dairy giants can carve a niche for themselves in this challenging task a win-win situation that can be won!

IT Technology
In todays cost conscious, competitive business environment the efficiency of streamlined processes, and the flexibility to grow are important for your business. The IT solution implementation has been deterred by the need for large investment, huge information technology (IT) teams, and lengthy implementation schedules to achieve desired benefits until now.

Smart dairy Solution a comprehensive solution portfolio that addresses the unique needs of Dairy plant management. It provides a simple but complete business solution to efficiently meet a wide variety of general and Dairy-specific business requirements

Supported by a the technical support team Smart Dairy Solutions is designed to deliver tangible value to Dairy plants today while providing the scalability to fuel tomorrow's growth A simple but powerful solution that addresses needs from procurements of milk to final dispatch of products covering all intermediate activities i.e. Production, Quality control, Accounts & finance, Personnel & Administration, Purchase & store and Marketing & Sales. Dairy industry primarily constitute of dairy plants for procurement, processing and marketing of milk and milk products, unions to supervise the societies at the village level, societies for procuring milk from the villagers and additionally the state federations and organizations like NDDB for technical and commercial consulting. Each dairy has societies attached to it for supply of milk, chilling centers for intermediate storage of milk and fodder plants for processing and supply of fodders to societies. The dairy in turn gives technical support, veterinary & health services and fodder to the societies.

iBilt Technologies Ltd a along with their consultancy partner James Martin and Co with their experience of providing integrated solution for all functional areas at Jaipur Dairy has given us an immense insight into the process and people requirements of the dairy. Above Tech.has been short listed by NDDB to implement the Dairy Solution in India. The iBilt Tech. cater to the needs of dairy industry at all levels, with our offerings Business Process Reengineering: In the changing business scenario, business focus needs to shift to consumers/ buyers and it becomes imperative to revisit our business philosophies in the aspects of operation, culture, social systems and technology. Our consulting team will do an assessment of the business process identifying the strengthsand weaknesses and propose the opportunities and guidelines for change.

Information Strategy Plan: Our consulting team will identify the long term IT needs in terms of hardware, network, software application.

Dairy Website: To create web presence for the dairies and federations for effective dissemination of information.

Portal: An on line solution to integrate all the members of the dairy industry, including NDDB, federations, unions, dairy plants, societies, milk producers and concerned organizations in the field of dairy development.

Enterprise Resource Planning: A comprehensive application catering to all the functionalities of dairy plant and its associate entities. The Smart Dairy Solution shall cater to all the business processes of the dairy plant. The solutions shall capture the data at the process level of dairies and compile the same for decision making at Union and federation level. The solution shall also provide ready made interface to chilling centers and other third party software used at the dairy level.

Decision Support System: DSS is an interactive computer-based systems and subsystems Intended to help decision makers use data, documents, knowledge and/or models to identify and solve problems and make decisions.

Data warehousing: A data warehouse is a computer system designed to give

business decision makers instant access to information by copying data from existing systems and storing it for use by

Packaging Technology
Milk was initially sold door-to-door by the local milkman. When the dairy co-operatives initially started marketing branded milk, it was sold in glass bottles sealed with foil. Over the years, several developments in packaging media have taken place. In the early 80s , plastic pouches replaced the bottles. Plastic pouches made transportation & storage very convenient, besides reducing cost. Milk packed in plastic pouches have a shelf life of just 1 to 2 days, that too only if refrigerated. In 1996, tetra packs were introduced in India. Tetra packs are aseptic laminate packs made of aluminum, paperboard and plastic. Milk stored in tetra packs and treated under ultra high temperature technique (UHT) can be stored for four months without refrigeration. Most of then dairy co-operatives in A.P, Tamil Nadu, Punjab & Rajasthan sell milk in tetra packs. However tetra packed milk is costlier by Rs. 5 to 7 compared to plastic pouches. In 1999-2000 Nestle launched its UHT milk. Amul too relaunched its Amul Taaza

brand of UHTs milk. The UHT milk market is expected to grow at a rate of more than 10-12% in coming years.

ECONOMICAL FACTORS Infrastructure :

Amul Dairy is working in the best area of Anand in Kaira District. This is very good for dairy industry.Some benefits arising out of this location as follows: 1) Cheap Labour 2) Cheap Land 3) Cheap water supply 4) Constant Electric supply 5) Constant Water Supply 6) Suitable Nature and Environment Amul has wonderful Plant Layout means arranging machinery in a very systematic manner which save the electricity as well improve the efficiency of the unit so increase the production. There is a no transporting problem because clear and wonderful road for transporting of milk& milks products. The milk collection is very easy and speedy.

Monsoon
A good monsoon is critical for indias economic growth in 2001-02. In June the first of the four months the rain were well spread all over the country, rising hopes of a major recovery in the agriculture sector Rain fall in June (percentage deviation from normal)

1999 2000 2001 Week1 10 85 50 Week2 -50 50 40 Week3 25 -25 85 Week4 45 -45 -20 Week5 -25 (source: Indian economy Ruddar dutta and k.p sundaram)

The intensity of rains was only during the last weak of the months of 35-sub sdivision, 23 received different to scantly rainfall ,largely covering Rajasthan ,MP ,Gujarat ,Maharastra,Andhra Pradesh, Karnataka, and Tamil Nadu.

Economic Growth
Last five years has seen slackening of the GDP growth rate, largely due to fall in manufacturing growth and poor performance of agriculture 2002-03 saw a big fall in agricultural output, and official GDP growth estimate for 2002-03 is 4.7% Given good monsoon, CII for 2003-04 is at least 6.8% GDP growth

8 6 4 2 0

7.3 7.3

7.8 6.3 6.1

6.8

5.4 4.8 4.0

4.7

2001-02

2002-03

(Source: Indian economy 2003)

Indian dairy sector is clocking a healthy growth of over 4% a year. The Indian dairy industry registered a substantial growth from the 8th Plan onwards, achieving an annual output of over 69 million tonnes of milk. Indias milk output during 2001-02 was estimated to be 84.6 million tonnes and is expected to reach the level of 88 million tonnes during 2002-03.

2000-01

1999-00

1998-99

2003-04

1992-93

1991-92

1995-96

1996-97

1997-98

1994-95

1993-94

SOCIAL FACTOR
Life Style Trend
With more money on hand, more and more Indians are drinking milk and buttering their bread. Rising income levels have led to a rapid increase in the consumption of milk and milk products among Indian households.

Urbanization
Urban population is increased about 26 million 1901 to 62 millions in 1951 an increase of only 36 million in 50 years. But thereafter the absolute increase during the next three decades was of the order of 98 million(1951-81). Due to this reason the consumption of the milk was drastically increase during last two to four decades. Because of the consumption of milk is high in urban area compared to rural area. By the year of last the urban population is reached around 25.7 percent of total population. The effective milk market is largely confined to urban areas, inhabited by over 25 per cent of the country's population. An estimated 50 per cent of the total milk produced is consumed here. By the end of the twentieth century, the urban population is expected to increase by more than 100 million to touch 364 million in 2000 a growth of about 40 per cent. The expected rise in urban population would be a boon to Indian dairying. Presently, the organized sector both cooperative and private and the traditional sector cater to this market.

Consumption Habit And Practices

Day by day the need of milk is continuously increase. In the year 1972 average requirement of the milk per capita is 172 per gram. While in 2000 the requirement 215 gram per year. So there will be more demand or milk and milk products in nearer future. The consumption of milk is highest in north India that is 278 gram per day, while in west region 174 gram per day. In eastern and southern area combines 215 grams per day require. 46% of the total milk is consumed in liquid form and 47% is converted into ghee, paneer and ice cream and only 7% milk goes for western products like powder, cheese etc.

The 98% of the milk produced in the rural area which is cats of 72% of the population whereas the urban sector with 28% populations. Even in urban India India as high as 83% of the consumed milk comes from the unorganized sector. Presently only 12% of the milk is represented by packaged and branded pasteurized milk.

Population
During 1981-91, the population of India grew from 683 million in 1981 to 844 million in 1991indicating in increase of 161 million during the period. The rate of the growth slightly declined to 2.11 percent during 81-91 decade. Subsequently, during the 8 years period (1991-98), population grew from 844 million to 987 million-an increase of 120 million. The annual average rate of growth registered a decline to 1.8 per cent.

MICHALE PORTER`S FIVE FORCE ANALYSIS:

Porters Five Force Analysis

According to Porter (1980) a firm must be analyzed in relation to its industry. Factors outside the industry tend to influence all the industrys firms in the same way and are thus not as important to study. To a large extent, industry structure governs the strategies open to the firms. The profitability and attractiveness of an industry is dependent of the level of competition. Competition in an industry originates from industry structure and goes well beyond the behavior of individual competitors. According to Porter, each industry has a potential profitability and the profitability for the firms is dependent on the competitive forces in the industry. Porter identifies five competitive forces that derive from the ambition to obtain as large share of the profitability as possible. The five forces are the foundation of the five-force model.

Porters Five-Force Model: In coping with the five forces, there are three potentially successful generic strategic approaches to outperform other firms in an industry:

Overall cost leadership: The firm commits it self to being the cheapest alternative. Cost reduction must be applied throughout the firm. The cost leader competes head on with all other firms in the industry. Favourable history with first mover advantages Amul dairy face tremendous level of competition. Further there is old and conventional culture still exists in the Amul dairy. Every is trying to capture others pie in the market share. Every day each player comes out with the new strategies and innovative products. They always diffentiate their brand with those of competitors. The major competitors of the Amul dairy include:

I.

FOR MILK
Gayatri

II. III. IV. V.

Royal Sardar Uttam Shreshta

I. II. III.

FOR ICE CREAM:

Vadilal Havmore Dairy den

FOR GHEE:
I. Gayatri II. Nestle

FOR MILK POWDER:

Nestle

I.

FOR CHOCOLATE:
Nestle II. Cadbury The success of the national and local competitors brands includes effective distribution system, advertising, good pricing policy etc. The major porters factor can be listed and described in context of Amul dairy such as

1) Threats of new entrants 2) Bargaining power of suppliers 3) Bargaining power of buyers 4) Rivalry among competitors

5) Threats substitutes Above factor can be shortly briefly known by following points.

1)

Threats Of New Entrants :

Amul dairy is co-operative society. That means cooperation among competitive is the fundamental principle. Amul dairy is managed under the norms of GCMMF and market the products under the brand name Amul, which has good reputation at domestic and international level. Here, the raw material procurement is very difficult for the new entrants. Consequently Capital requirement is also high. Still new entrants are emerging such as domestic and international players. So the treats of new entrants are moderate. Government rules and regulation are not favourable for new entrants. Raw material is also depending on the villagers who are mostly depend on good rain. In the seasonal uncertainties will also restrict the new entrants to establish the new plant.

2)

Bargaining power of supplier :

The objective of Amul dairy is not profit making. As it is a part of co-operative society, it runs for the benefit of farmers those are the supplier of milk and users of milk product. According the concept of the cooperative society supplier has bargaining power to have a good return on his or her supply. However, supplier has limited rights to bargain with the cooperative society because it made and run for the sake of mass not for individual benefit. There is moderate bargaining power of the supplier. In olden days there were not any kind of cooperative societies as the farmer was exploited. But, nowadays the farmers right has been protected under the cooperative rules and regulations, which ultimately result in moderate power of bargaining from the supplier.

3) Bargaining power of buyers :

Amul dairy is having state of the art technology bring down from Denmark German. And except loose milk vendor mother dairy is the single district level seller of the milk. However the Amul dairy is bound by the norms of federation. So, the pricing policy will be decided only by GCMMF and customer would have not have bargaining power. In nutshell, the bargaining power of the buyer is low.

4) Rivalry among competitors:

The products of the most of dairy which are listed under the Gujarat cooperative milk marketing federation are marketed under the one unique name Amul. Though, it is not having competition from the domestic level. Amul dairy which is at the state level faces the competion from Nestle, Britania, Gayatri dairy, sugam, Dairy dan. The major competitor of the Amul in ice-cream category is

HLLs kwality walls.Although, dairy is not having tough competition from the local players but international level it is exist.

5)

Threats Of Substitute :
Most of the milk and milk products substitute are very low. Milk powder can be taken as a close substitute for the milk. In case of the ice-cream category the close substitute is cold drink and soft drinks. So, the substitute of the milk and milk product is completely low.

SWOT Analysis of GCMMF

STRENGTHS:
Demand profile: Absolutely optimistic Margins: Quite reasonable, even on packed liquid milk. Flexibility of product mix: Tremendous. With balancing equipment, you can keep on adding to your product line. Availability of raw material: Abundant. Presently, more than 80% of milk produced is flowing into the unorganized sector, which requires proper channelization. Technical manpower: Professionally-trained, technical human resource pool, built over last 30 years.

WEAKNESSES:
Parishability: Pasteurization has overcome this weakness partially. UHT gives milk long life. Surely, many new processes will follow to improve milk quality and extend its shelf life. Lack of control over yield: Theoretically, there is little control over milk yield. However, increased awareness of development like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields. Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk procurement problematic. But with the overall economic improvement in India, these problems would also get solved. Problematic distribution: Yes, all is not will with distribution. But then if ice creams can be sold virtually at every nook and corner, why cant they sell other dairy products too? Moreover, it is only a matter of time before they see the emergence of a cold chain linking the producer to the refrigerator at the consumers home.

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

OPPORTUNITIES:
Failure is never final and success never ending. Dr. Kurien bears out this statement perfectly. He entered the industry when there are only threats. He met failure head-on and now he clearly is an example of Never ending success. If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped. Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential areas of value addition. Steps should be taken to introduce value addition products like shrikhand, ice-cream, panner, khoa, favored milk etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building. Addition cultured product like yoghurt and cheese lend further strength both in terms of utilization of resources and presence in the market place. A lateral view opens up opportunities in milk proteins thro casein, caseinates and other dietary protein, future opening up export opportunities. Yet another aspect can be addition of infant foods geriatric foods and nutritionals. Export potential: Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Srilanka, Nigeria, and Middle East. Following the new GATT treaty, opportunities will increase tremendously for the export of agri-products in general and dairy products in particular.

 THREATS:
Milk vendors, The un-organized sector Today milk vendor are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance.

FUTURE PLANS

The GCMMF has targeted a sales turnover of Rs. 10000 cr by 2005. GCMMF want to increase the export from Rs. 30 Cr to 100 Cr. They want that their future will include another 100 offices dealing with about 7500 stockiest. They needs of Indias next door neighbour for exports of milk and milk products i.e. Pakistan, Bangladesh, China etc.

GCMMF is going to launch VAT milk in a card board pack of 500 ml. Amul want to gave discount other on average big scale. Also in place will be a distribution network 7500 stock is (3500 today) and 1 million retail outlets (4 lack today). Current amul ice-cream are manufactured at 15 plants, which are mainly co-operative dairies amul plans to increase their 70 to 25. Amul is focusing on new added value products like Butter Milk.

PROBLEMS
GCMMF is facing a tough competition in the international market from countries like Australia, New Zealand is affecting its exports. The GCMMF is facing competition from private companies in different product ranges are follows: Cheese Cubes - Britannia, Lebon Ghee Chocolate Milk Mkt Ice-Cream - Abad, Vijaya - Nestle, Cadbury - Abad, Uttam, Sardar, Gokul etc. - Vadilal, Kwality walls, Havemore, Gokul

Mineral water - Bisleri, Yes, Bacfree

RECOMMENDATION
The GCMMF limited for enhancing the demand and increasing the market is as follows: (1)The GCMMF should provide: Amul cheese in different flavors to the consumer for expanding the cheese market for e.g. missal,capsicum,paper etc. (2)The GCMMF should increase: (i) The GCMMF want to people to know Amuls production process in such manner so because this GCMMF give visiting time of 2 hours is 3.00 p.m. to 5.00 p.m. (ii) The marketing of milk powder to increase its demand which some what reduced due to the adequate supplier of milk. (iii) Amul Shrikhand as the Shrikhand mkt is fully occupied by local and domestic Shrikhand producers. (iv) Amul make Juldhara pure drinking water to compete with Bisleri, Ganga, Yes etc. (v) Amul make safely mango nectar to compete with frosty, peal etc.

ACHIEVEMENTS
Mother Dairy a branch of Amul is fully computerized vaccum and automatic dairy in Asia. It has 1000000 liters milk producing capacity with managing 200 employees. The type of technology is imported form L & T. They can 1000000 liters of milk per day and packed and distribute. For packing they have own plastic bag factory in Gandhinagar. They have owned tube well water demand. Amul was received J.D.Birla Award for rural development in the year 1999. In the year 1998-99 the GCMMF popular as largest dairy product market organization. Milk payment to farmer rising from Rs.2.1 million in 1972 to close to Rs.40 billion today. Substantial increase in employment both direct and indirect. The no. of women who are involved in the running of dairy co-operation have gone up from 622000 in 1986-87 to 196700 in 1997-98. This increasing involvement of women has resulted in more girls attending school longer. Joint turnover of 12 union federation is more than 2200 cr. According to Amul official in just 3 years, Amul has become a formidable player in the organized sector with nearly 40% of total market share. In this financial year many foreign has demanded amul products. Veterinary case has reduced the economic losses suffered from disease.

Challenges to Be Met
Expansion up grading of plant and equipment to meet increasing demanded for quality and quantity with the help of better qualified personnel. Rapid increase in productivity while respecting the basic man land animal dynamic that is control to dairy and agriculture development in India. Development of new markets and expansion of old ones replacing additional system with quality packaged milk products and vegetable. Creating a national information network to ensure that accurate timely information is available to all who need it. Rapid progress towards the highest quality standard strengthens institutions leaders, managers and members.

FUTURE PROSPECTS
Indias dairy sector is expected to triple its production in the next 10 years in view of expanding to triple its production in the next 10 years in view of expanding potential for export to Europe. More over with WTO regulation expected to come into force in coming years. All the developed countries which are among big exporters. Today would have to withdraw the support and subsidy to their domestic milk products sector. Also India today if the low cost producer of milk in the world at 27% compare with U.S, 63% and Japan $2.8. Also to take advantage of this low cost of milk production and increasing production in the country. MNC are planning to expand their activities. Some of the milk producer have already obtain quality standard certificate from the authorities this will help them in marketing their products in foreign countries. The urban market for milk products is expected to grow at 33% p.a to around Rs. 43500 crore by year 2005. This growth is going to come from the greater emphasize on the processed food sector and also increased in the conversion of milk into milk products. By 2005 the value of Indian dairy produce is expected to be Rs. 10 lac million. Presently the market is valued at around Rs. 700000 million.

BIBLIOGRAPHY

CONCLUSION
Our overall impression about the unit and GCMMF is inexpressible. In this report after analyzing we can conclude that GCMMF is progressive very rapidly in the Indian market. The performance of the unit is very impressive in the past year. Though there is tough competition with Britannia, Nestle, Vadilal, Havemore etc. It has shown a good progress. According to Amul and GCMMF organization MARG surveys GCMMF remarked 24th last year among the top 60 industry in India. In present Amul is become popular as The Taste of India. 50 years is a very big time for any brand to establish itself successfully in the market. This give us golden opportunity to know all functional area of amul. We know about the products of GCMMF, their quality, packaging and price. The product of GCMMF demanded at very large scale because of their very reasonable price. Marketing of GCMMF made it so popular. Under the guidance of Dr. Vergees Kurein Mother Dairy is growing day by day. Hope and wise that the success story of AMUL going forever and other industries should take inspiration from this successfully story. We are sure and confident that successor capable and innovative my best wishes for future success of the industry is an important part of our visit.

Suggestion to Production department

1) Sources of raw materials the one and only source from where they procure milk are village milk societies so they need to strengthen relation with villagers. 2) Department must have to develop strict standard for Quality control milk because milk is perishable product so advance testing lab is required. 3) Though the good technology used by the dairy advance and automated technology will be introduce to lower the rate of exposure of the product to human being. 4) All the workers should be allowed with good safety. 5) Sanitation shall be kept clean and hygienic.

Suggestion to marketing department

1) 2) The Company should adopt scientific ways to allocate and manage the resources for advertisements and sales promotion so as to gain optimum results Amul should design its own marketing research system. It should hire people to carry out systematic market research and surveying the following areas. - To know consumer taste, preferences and their consumption and buying pattern. - Before launching new products in the market. - Retailers and distributors survey from time to time to know competitors tricks and practices as well as the satisfaction level. 3) Instead of advertising on national level, one more option that the company should try for promotion of its brands is to give add on local cable TV network. 4) There should be no gaps in products like more flavor, more scheme, reasonable price etc to compete the local players as well as competitors.

Suggestion to H.R. department

1)
2)

There should be professional approach. They should provide professional training to field force for specific time period for

sharpening selling skills.