RESEARCH PROJECT REPORT ON

Comparative Study into Sales & distribution of AM ! "A#R$ & PARA% "A#R$ &

S 'M#TTE" #N PART#A! ( !(#!MENT O( THE A)AR" O( THE "E%REE O( MASTERS O( ' S#NESS A"M#N#STRAT#ON *+,,-. +,//0
MAHAMA$A TECHN#CA! N#1ERS#T$

nder %uidan2e of3 by3 Mr. CYRIL PARMAR

KUMAR
(Training in charge)

Submitted
PRAVEEN MBA III (SEM) ROLL

NO.0909470068

%#MT #NST#T TE O( MANA%EMENT TECHNO!O%$4 %REATER NO#"A Affiliated to Mahamaya Technical University

"EC!ARAT#ON

I hereby dec !re "h!" "he #r$%ec" re#$r" e&"'" ed Comparative

Study into Sales & distribution of AM ! "A#R$ & PARA% "A#R$ &
'( !& $r')'&! !&d !*"he&"'c +$r, d$&e by -e !&d '( b!(ed *#$& "he ("*dy c$&d*c"ed by -e.

.h'( #r$%ec" re#$r" +!( *&der"!,e& !( ! #!r" $/ "he M.B.A. Pr$)r!--e $/ M!h!-!y! .ech&'c! U&'0er('"y.

*Praveen 5umar0 M'A 6rd SEM

ACKNOWLEDGEMENT
I would like to express my heartfelt gratitude toward Mr. Mr. . !. oshi "#. M.$ the chairman of the AMUL, who gave me permission to do my Summer raining !ro"ect in AMUL. Also I would like to convey my sincere thanks to Mr. Cyril %armar (Training in charge) who supported me in ac#uiring practical knowledge throughout guiding me in my pro"ect.

I am deeply thankful to $IM

Institute of Management %

echnology for

permitting me to do Summer raining !ro"ect and encouraging me to complete successfully. I would also like to thank my faculty mem&ers, for her keen interest, valua&le guidance, inspiration, immense 'eal for hard work and positive outlook towards the su&"ect. heir intellect, persuasiveness and

insistence on a good work were a guiding light in the darkness of my ignorance.

I would also like to express my sincere thanks to administrative personnel who have helped me in carrying out my summer training. Lastly, I would like thank all the persons who have helped me directly or indirectly in completing my pro"ect successfully.

PRA1EEN 5 MAR

PREFACE
Summer Internship !rogramme is a part of M(A !rogramme, which is very helpful in getting practical knowledge in this glo&ali'ation world. )ow*a*days only theoretical knowledge is not enough to success in life &ut most important we must have practical knowledge. +ith the help of this training, I came to know how to apply theoretical knowledge in practice.

Main purpose of this training is to have awareness a&out industrial environment and to know a&out different functions of an organi'ation like ,istri&ution, !roduction and Marketing.

I got an opportunity in -AI.A ,IS .I/ /0*0!1.A I21 MIL- U)I0) LIMI 1,, Anand, $u"arat to undergo Summer Internship !rogramme as a part of M(A !rogramme. I consider myself privileged that I got a chance to work with reputed company and can upgrade my knowledge related to practical aspect of &usiness world which is very helpful in my career &uilding.

C&'T('T)
Cha%ter * Executive Summary Introduction to the Indian Dairy Industry Company Profile of mul Company Profile of Para! Dairy

Cha%ter +

Sales and Distri"ution strate!ies

#esearch $ethodolo!y Cha%ter , Data interpretation and *raphical nalysis Cha%ter +indin!s, su!!estions and Conclusion Anne./re a- .uestionnaire "- /i"lio!raphy %"&ective of the study Si!nificance of the study #esearch $ethodolo!y Data Collection 'echni(ues nalytical 'ools )imitations of the study

EXECUTIVE SUMMARY
In todays competitive world while entering in the market it is very necessary to have good knowledge of the potential of a particular market. The growth of a company is invariably determined not just by its strategy, but on how it responds to the challenges it encounters. Over the decades A !" has successfully countered several challenges that have come its way with innovative responses and continuous improvement, which have enabled it to remain stable and even convert some of these challenges into opportunities. It is the culture of endurance that has accorded A !" the insight and focus to deal with the current economic environment. #rawing from its inner strength and beliefs, A !" responded by launching several initiatives across all its operations in various geographies that are helping the group achieve growth even in current times. It is also this very strategic culture that will propel A !" to continue on its growth trajectory in years to come.

'he report provides a comprehensive insi!ht into the company and also a"out the company2s S3%' analysis. 'his report mainly studies in detail the various product mix strate!ies of the company and also focuses on the se!mentation of "oth company "ased and industry "ased and helps in analysin! the company2s competitive advanta!e and the reason "ehind its success.

C7apter /
#N"#AN "A#R$ #N" STR$

67

#NTRO" CT#ON TO THE #N"#AN "A#R$ #N" STR$

The 0orld1s 2iggest dairy %rod/cing co/ntry is gro0ing fast and loo3ing to 2ecome an e.%ort %o0erho/se des%ite ma4or 5/ality %ro2lems... A 'ote to o/r Readers6 the follo8in! information on India9s dairy sector is reproduced from India Infoline.com. India is the 8orld9s lar!est mil: producin! country and is !ro8in! fast, 8ith an eye to8ard "ecomin! a ma&or dairy exporter. 'his article is helpful readin! for anyone interested "etter understandin!.

Cons/mer 7a2its and Practices $il: has "een an inte!ral part of Indian food for centuries. 'he per capita availa"ility of mil: in India has !ro8n from 612 !m per person per day in 6512 to 642!m in 6552 and 273 !m in 6554;55.'his is expected to increase to 262!ms for 2774. <o8ever a lar!e part of the population cannot afford mil:. t this per capita

consumption it is "elo8 the 8orld avera!e of 245 !m and even less than 227 !m recommended "y the =utritional dvisory Committee of the Indian Council of $edical #esearch.

66

'here are re!ional disparities in production and consumption also. 'he per capita availa"ility in the north is 214 !m, 8est 614 !m, south 644 !m and in the east only 53 !m per person per day. 'his disparity is due to concentration of mil: production in some poc:ets and hi!h cost of transportation. cereal !ro8in! areas is much hi!her than else8here 8hich can "e attri"uted to a"undant availa"ility of fodder, crop residues, etc 8hich have a hi!h food value for mil:y animals. In India a"out 40 per cent of the total mil: produced is consumed in li(uid form and 41 per cent is converted into traditional products li:e cotta!e "utter, !hee, paneer, :hoya, curd, malai, etc. %nly 1 per cent of the mil: !oes into the production of 8estern products li:e mil: po8ders, processed "utter and processed cheese. 'he remainin! 54> is utili?ed for conversion to mil: products. mon! the mil: products manufactured "y lso the output of mil: in

the or!ani?ed sector some of the prominent ones are !hee, "utter, cheese, ice creams, mil: po8ders, malted mil: food, condensed mil: infants foods etc. %f these !hee alone accounts for 45>. It is estimated that around 27> of the total mil: produced in the country is consumed at producer;household level and remainin! is mar:eted throu!h various cooperatives, private dairies and vendors. lso of the total produce more than 57> is

procured "y cooperatives and other private dairies. 3hile for cooperatives of the total mil: procured 07> is consumed in fluid form and rest is used for manufacturin! processed value added dairy products@ for private dairies only 45> is mar:eted in fluid form and rest is processed into value added dairy products li:e !hee, ma:han etc.

62

Still, several consumers in ur"an areas prefer to "uy loose mil: from vendors due to the stron! perception that loose mil: is fresh. lso, the current level of

processin! and pac:a!in! capacity limits the availa"ility of pac:a!ed mil:. 'he preferred dairy animal in India is "uffalo unli:e the ma&ority of the 8orld mar:et, 8hich is dominated "y co8 mil:. s hi!h as 54> of mil: is produced in rural

India, 8hich caters to 12> of the total population, 8hereas the ur"an sector 8ith 24> population consumes 50> of total mil: produced. Even in ur"an India, as hi!h as 43> of the consumed mil: comes from the unor!ani?ed traditional sector. Presently only 62> of the mil: mar:et is represented "y pac:a!ed and "randed pasteuri?ed mil:, valued at a"out #s.4, 777 crores. .uality of mil: sold "y unor!ani?ed sector ho8ever is inconsistent and so is the price across the season in local areas. these vendors add 8ater and caustic soda, 8hich ma:es the mil: unhy!ienic. lso

Mar3et )i8e and #ro0th $ar:et si?e for mil: Asold in looseB pac:a!ed form- is estimated to "e 30mn $' valued at #s417"n. 'he mar:et is currently !ro8in! at round 4> pa in volume terms. 'he mil: surplus states in India are Cttar Pradesh, Pun&a", <aryana, #a&asthan, *u&arat, $aharashtra, ndhra Pradesh, Darnata:a and 'amil =adu. 'he manufacturin! of mil:

products is concentrated in these mil: surplus States. 'he top 0 states vi?. Cttar Pradesh, Pun&a", $adhya Pradesh, #a&asthan, 'amil =adu and *u&arat to!ether account for 54> of national production.

63

$il: production !re8 "y a mere 6> pa "et8een 6541 and 6517. Since the early 179s, under %peration +lood, production !ro8th increased si!nificantly avera!in! over 5> pa. "out 15> of mil: is consumed at the household level 8hich is not a part of commercial dairy industry. )oose mil: has a lar!er mar:et in India as it is perceived to "e fresh "y most consumers. In reality ho8ever, it poses a hi!her ris: of adulteration and contamination. 'he production of mil: products, i.e. mil: products includin! infant mil: food, malted food, condensed mil: E cheese stood at 3.71 la:h $' in 2774. Production of mil: po8der includin! infant mil:;food has risen to 2.25 la:h $' in 2774, 8hereas that of malted food is at 05777 $'. Cheese and condensed mil: production stands at 5777 and 66777 $' respectively in the same year.

Ma4or Players 'he pac:a!ed mil: se!ment is dominated "y the dairy cooperatives. *u&arat Co; operative $il: $ar:etin! +ederation A*C$$+- is the lar!est player. ll other local

dairy cooperatives have their local "rands A+or e.!. *o:ul, 3arana in $aharashtra, Saras in #a&asthan, Fer:a in Pun&a", Fi&aya in ndhra Pradesh, avin in 'amil =adu,

etc-. %ther private players include G D Dairy, <erita!e +oods, Indiana Dairy, Dairy Specialties, etc. mrut Industries, once a leadin! player in the sector has turned

"an:rupt and is facin! li(uidation.

64

Pac3aging Technology $il: 8as initially sold door;to;door "y the local mil:man. 3hen the dairy co; operatives initially started mar:etin! "randed mil:, it 8as sold in !lass "ottles sealed 8ith foil. %ver the years, several developments in pac:a!in! media have ta:en place. In the early 479s, plastic pouches replaced the "ottles. Plastic pouches made transportation and stora!e very convenient, "esides reducin! costs. $il: pac:ed in plastic pouchesB"ottles have a shelf life of &ust 6;2 days, that too only if refri!erated. In 6550, 'etra Pac:s 8ere introduced in India. 'etra Pac:s are aseptic laminate pac:s made of aluminum, paper, "oard and plastic. $il: stored in tetra pac:s and treated under Cltra <i!h 'emperature AC<'- techni(ue can "e stored for four months 8ithout refri!eration. $ost of the dairy co;operatives in ndhra Pradesh, 'amil =adu, Pun&a" and #a&asthan sell mil: in tetra pac:s. <o8ever tetra pac:ed mil: is costlier "y #s5;1 compared to plastic pouches. In 2774;77 =estle launched its C<' mil:. relaunched its mul too

mul 'aa?a "rand of C<' mil:. 'he C<' mil: mar:et is expected to

!ro8 at a rate of more than 67;62> in comin! years.

65

Reg/latory 9rame0or3 'he dairy industry 8as de;licensed in 6556 8ith a vie8 to encoura!e private investment and flo8 of capital and ne8 technolo!y in the se!ment. lthou!h de;

licensin! attracted a lar!e num"er of players, concerns on issues li:e excess capacity, sale of contaminatedB su"standard (uality of mil: etc induced the *overnment to promul!ate the $$P% A$il: and $il: Products %rder- in 2774. $il: and $il: Products %rder A$$P%- re!ulates mil: and mil: products production in the country. 'he order re(uires no permission for units handlin! less than 67,777 litres of li(uid mil: per day or mil: solids up to 577 'P . $$P% prescri"es State re!istration to plants producin! "et8een 67,777 to 15,777 litres of mil: per day or manufacturin! mil: products containin! "et8een 577 to 3,157 tones of mil: solids per year. Plants producin! over 15,777 litres per day or more than 3,157 tones per year of mil: solids have to "e re!istered 8ith the Central *overnment. 'he strin!ent re!ulations, !overnment controls and licensin! re(uirements for ne8 capacities have restricted lar!e Indian and $=C players from ma:in! si!nificant investments in this product cate!ory. $ost of the private sector players have restricted themselves to manufacture of value added mil: products li:e "a"y food, dairy 8hiteners, condensed mil: etc. ll the mil: products except malted foods are covered in the cate!ory of industries for 8hich forei!n e(uity participation up to 56> is automatically allo8ed. Ice cream, 8hich 8as earlier reserved for manufacturin! in the small;scale sector, has no8 "een de;reserved. s such, no license is re(uired for settin! up of lar!e;scale production facilities for manufacture of ice cream.

60

Su"se(uent to de;canali?ation, exports of some mil: "ased products are freely allo8ed provided these units comply 8ith the compulsory inspection re(uirements of concerned a!encies li:eH =ational Dairy Development /oard, Export Inspection Council etc. /ureau of Indian standards has prescri"ed the necessary standards for almost all mil:;"ased products, 8hich are to "e adhered to "y the industry.

Pro%osal to Amend the MMP& proposal to raise the exemption limit for compulsory re!istration of dairy plants, from the present 67,777 litres a day to 27,777 litres, is "ein! considered "y the nimal <us"andry Department. 'he 15,777;litre limit is li:ely to "e raised either to 677,777 litres or 625,777 litres in the amended order. 'he ne8 order 8ould also do a8ay 8ith the provision for re;re!istration.

Penetration of mil3 %rod/cts 3estern ta"le spreads such as "utter, mar!arine and &ams are not very popular in India. ll India penetration of "utterB mar!arine is only 4>. 'his is also lar!ely

represented "y ur"an areas, 8here penetration is hi!her at 5>. In rural areas, "utterB mar!arine have penetrated in 2.6> of households only. 'he use of these products in the lar!e metros is hi!her, 8ith penetration at 65>.

61

Penetration of cheese is almost nil in rural areas and ne!li!i"le in the ur"an areas. Per capita consumption even amon! the cheese;consumin! households is a poor 2.4:! pa as compared to over 27:! in CS . 'he lo8er penetration is due to peculiar food ha"its, relatively expensive products and also non;availa"ility in many parts of the country. /utter, mar!arine and cheese products are mainly manufactured "y or!ani?ed sector. Similarly, penetration of !hee is hi!hest in medium si?ed to8ns at 31.2> compared to 36.1> in all ur"an areas and 26.3> in all rural areas. 'he all India penetration of !hee is 24.6>. In relative terms, penetration of !hee is si!nificantly hi!her in =orth and 3est, 8hich are mil: surplus re!ions. =orth accounts for 51> of !hee consumption and 3est for 23>, South E East to!ether account for the "alance 27>. lar!e part of !hee is made at home and "y smallB cotta!e industry from mil:.

'he relative share of "randed products in this cate!ory is very lo8 at around 6;2>. $il: po8der and condensed mil: have not "een a"le to !arner any si!nificant consumer acceptance in India as indicated "y a very lo8 4.1> penetration. 'he penetration is hi!her at 4.6> in ur"an areas and lo8er at 3.5> in rural areas. 3ithin ur"an areas, it is relatively hi!her in medium si?ed to8ns at 4.5> compared to 1.1> in lar!e metros.

64

(.%ort Potential India has the potential to "ecome one of the leadin! players in mil: and mil: product exports. )ocation advanta!eH India is located amidst ma&or mil: deficit countries in sia and frica. $a&or importers of mil: and mil: products are

/an!ladesh, China, <on! Don!, Sin!apore, 'hailand, $alaysia, Philippines, Gapan, C E, %man and other !ulf countries, all located close to India. The ma4or e.%ort %rod/cts6 : 'he products of mul is "ein! exported in the 47 , *ulf

countries of the 8orld . $any of the products are no8 availa"le in the C.S. countries and Sin!apore.

mul products are "ein! exported to the Sin!apore since last mul is the preferred taste of Indians in the *ulf

three decades . undou"tedly , countries.

Lo0 Cost of Prod/ctionH $il: production is scale insensitive and la"our intensive. Due to lo8 la"our cost, cost of production of mil: is si!nificantly lo8er in India. Concerns in export competitiveness are ;/ality6 Si!nificant investment has to "e made in mil: procurement, e(uipments, chillin! and refri!eration facilities. lso,

trainin! has to "e imparted to improve the (uality to "rin! it up to international standards.

Prod/ctivity6 'o have an exporta"le surplus in the lon!;term and also to maintain cost competitiveness, it is imperative to improve productivity of Indian cattle.

65

'here is a vast mar:et for the export of traditional mil: products such as !hee, paneer, shri:hand, rasa!ulas and other ethnic s8eets to the lar!e num"er of Indians scattered all over the 8orld.

#ndia8s e9ports of mil: produ2ts

"es2ription *;uantity4 M T<3 +,,=.,> +,,>.,+,,-./,

1alue4 Rs< million0 ;uantity 1alue ;uantity 1alue ;uantity S:immed mil: po?der @4A6><A+ 646B<6+ +>+<=, /-<A@ B<,, Mil: and Mil: (ood for ><+= +<,////<6= @<+= //<,, babies Mil: 2ream S?eetened 2ondensed mil: )7ey %7eeC'utterC'utter oil C7eese *a0 (res7 *b0 Pro2essed *20 Ot7er TOTA! 1alue ,<6=B +<,+

66+<+6 @/<=6

+><,@ +<>@

/<,, -<++

,<,>@ ,<-=

. A,<6-

. =<++

=><@A =4>-B<,>

6<=B @6/</

//<B, +--<-=

/<,/ A<,, ,<6@+ /-<+ @46B+<,> +46><-B

,</, B<A= AA<A@ .

,<,/6 /<+, ><6B >4=+<=

. +</ 6A<=> .

. ,<6=B ,<AB+<@

. ++</, +@<>@ .

. +</@<BB +4BB<A

#ndian *traditional0 Mil: Produ2ts 'here are a lar!e variety of traditional Indian mil: products such as

27

$a::han ; unsalted "utter. *hee ; "utter oil prepared "y heat clarification, for lon!er shelf life. Dheer ; a s8eet mix of "oiled mil:, su!ar and rice. /asundi ; mil: and su!ar "oiled do8n till it thic:ens. #a"ri ; s8eetened cream. Dahi ; a type of curd. )assi ; curd mixed 8ith 8ater and su!arB salt. ChannaBPaneer ; mil: mixed 8ith lactic acid to coa!ulate. Dhoa ; evaporated mil:, used as a "ase to produce s8eet meats. 'he mar:et for indi!enous "ased mil: food products is difficult to estimate as most of these products are manufactured at home or in small cotta!e industries caterin! to local areas. Consumers 8hile purchasin! dairy products loo: for freshness, (uality, taste and texture, variety and convenience. Products li:e Dahi and s8eets li:e Dheer, /asundi, #a"ri are perisha"le products 8ith a shelf life of less than a day. 'hese products are therefore manufactured and sold "y local mil: and s8eet shops. 'here are several such small shops 8ithin the vicinity of residential areas. Consumer loyalty is "uilt "y consistent (uality, taste and freshness. 'here are several s8eetmeat shops, 8hich have "uilt a stron! "rand franchise, and have several "ranches located in various parts of a city.

<randing &f Traditional Mil3 Prod/cts mon! the traditional mil: products, !hee is the only product, 8hich is currently mar:eted, in "randed form. main !hee "rands are Sa!ar, $il:man A/ritannia-, A*C$$+-, mul

arey A$afco )td-, Fi&aya A P Dairy Development Cooperative

+ederation-, Fer:a A Pun&a" Dairy Cooperative-, Everyday A=estle- and +arm +resh A3oc:hardt-.

26

3ith increasin! ur"ani?ation and chan!in! consumer preferences, there is possi"ility of lar!e scale manufacture of indi!enous mil: products also. 'he e(uipments in mil: manufacturin! have versatility and can "e adapted for several products. +or instance, e(uipments used to manufacture yo!urt also can "e adapted for lar!e scale production of Indian curd products Adahi and lassi-. Si!nificant research 8or: has "een done on dairy e(uipments under the ae!is of =DD/. $afco )imited sells )assi under the arey "rand and flavored mil: under the

Ener!ee franchise Ain the 3estern re!ion, mainly in $um"ai-. /ritannia has launched flavored mil: in various flavors in tetra pac:s. *C$$+ has also made a "e!innin! in "randin! of other traditional mil: products 8ith the launch of pac:a!ed Paneer under the mul "rand. It has also created

a ne8 um"rella "rand I mul $ithaeeI, for a ran!e of ethnic Indian s8eets that are proposed to "e launched the first ne8 product "een launched in ma&or Indian mar:ets. mul $ithaee *ula"&amun has already

=estern Mil3 Prod/cts 3estern mil: products such as "utter, cheese, yo!urt have !ained popularity in the Indian mar:et only durin! the last fe8 years. <o8ever consumption has "een expandin! 8ith increasin! ur"ani?ation.

22

</tter $ost Indians prefer to use home made 8hite "utter Ama::han- for reasons of taste and afforda"ility. $ost of the "randed "utter is sold in the to8ns and cities. 'he ma&or "rands are mul, Fi&aya, Sa!ar, =andini and arey. mul is the leadin! national "rand

8hile the other players have !reater shares in their local mar:ets. 'he latest entrant in the "utter mar:et has "een /ritannia. /ritannia has the advanta!es of a 8ide distri"ution reach and a stron! "rand recall. Priced at par 8ith the mul "rand, it is expected to !ive stiff competition to the existin! players. In 2774;77 the "utter production is estimated at 4 la:h $' of this only 45D $' is in the 8hite form used for ta"le purposes rest all is in the yello8 form.

Cheese 'he present mar:et for cheese in India is estimated at a"out 5,777 tonnes and is !ro8in! at the rate of a"out 65> per annum. Cheese is mainly consumed in the ur"an areas. 'he four metro cities alone account for more than 57> of consumption. $um"ai is the lar!est mar:et Aaccountin! for 37> of cheese sold in the country-, follo8ed "y Delhi A27>-. Calcutta A1>- and Chennai A0>-. $um"ai has a lar!er num"er of domestic consumers, compared to Delhi 8here the "ul: institutional se!ment Amainly hotels- is lar!er.

23

"emand for various types of 27eese in t7e #ndian mar:et Type of 27eese Pro2essed C7eese spread MoEEarella (lavoredCSpi2ed Ot7ers 'he ma&or players are D of total 2onsumption B, 6, /, B B mul, /ritannia, and Da"on International dominatin! the

mar:et. %ther ma&or "rands 8ere Fi&aya, Fer:a and =andini Aall "rands of various re!ional dairy cooperatives- and Fadilal. 'he heavy advertisin! and promotions "ein! underta:en "y these ne8 entrants is expected to lead to stron! 27> !ro8th in the se!ment. mul has also "ecome more a!!ressive 8ith launch of ne8 variants such as

$o??arella cheese Aused in Pi??a-, cheese po8der, etc.

'he entry of ne8 players and increased mar:etin! activity is expected to expand the mar:et. ll the ma&or players are expandin! their capacities

24

Capa2ity e9pansion in C7eese Company "ynami2s %roup %CMM( 'rands Manufa2tures 'ritannia Amul State forMa7aras7tra Capa2ity 6B tons per day +, tons per day /, tons per day

%uFarat

AP""C(

1iFaya

And7ra Prades7

Mil: Po?der $il: po8der is mainly of 2 types J 3hole mil: po8der J S:immed mil: po8der 3hole mil: po8der contains fat, as distin!uished from s:immed mil: po8der, 8hich is produced "y removin! fat from mil: solids. S:immed mil: po8der is preferred "y diet conscious consumers. Dairy 8hiteners contain more fat than s:immed mil: po8der "ut less compared to 8hole mil: po8der. Dairy 8hiteners are popular mil: su"stitute for ma:in! tea, coffee etc. 'he penetration of these products in mil: a"undant re!ions is driven "y convenience and non perisha"le nature Alon!er shelf life- of the product.

25

Dairy sector of advanced nations export mil: products 8ith a su"sidy of K 6777 per tones 8ith a level of su"sidy more than 07 > of the price of mil: po8der produced in India, this has led to lar!e scale imports of mil: po8der "oth in 8hole and s:immed form. 'o protect the domestic sector from these su"sidi?ed imports the central !overnment has recently increased the "asic import duty on all imports of mil: po8der more than 67777 $' to 07> from 65>. +or imports less than 67777 $' the "asic customs duty has "een left unchan!ed at 65>. In 2774 India is estimated to have imported a"out 64,777 tonnes of mil: po8der a!ainst a total estimated production of 2.47 )a:h $'s. In 2771;74 India is expected to export 67777 $' of s:immed mil: po8der due to rise in international prices to K2377 per $' from last year9s levels of K6477 per $'. 'hese expectations are "ased on the stron! demand from #ussia, East sia and )atin merica, and also on ti!htenin! of supply in

EC, 8hich accounts for 15> of the annual !lo"al S:immed $il: Po8der exports. Mil3 Collection Cycle 'he success of each and every dairy industry is the !ettin! the mil: from the farmers and ma:in! that mil: in use as soon as possi"le "efore that mil: !et spoiled "ecause the mil: is the perisha"le product. +or the smooth runnin! the "usiness of dairy industry the industry must concentrate on the mil: collection cycle. mil: collection cycle. mul dairy is very conscious a"out the mil: collection cycle "ecause the "ase of the success of the mul is

Prod/ction ca%acity of Am/l

/utter Po8der plant Po8der plant 57 to 07 'ones 17 tones 07 tones

20

 +lavour mil:

47777 "ottles

21

Ma4or Players $il: Po8derBDairy 3hitenersH $a&or s:immed mil: "rands are Sa!ar A*C$$+- and =andini ADarnata:a $il: +ederation-, po8der "rand. )eadin! "rands in the dairy 8hitener se!ment are =estlL2s Everyday, *C$$+9s mulya, Dalmia Industry9s Sapan, D8ality Dairy India9s DreamDountry, 3oc:hardt9s +arm +resh and /ritannia9s $il:man Dairy 3hitener. mul +ull Cream mil: po8der is a 8hole mil:

Condensed Mil3 'he condensed mil: mar:et has !ro8n from 5777 $' in 2771 to 66777 $' in 2774. Condensed mil: is a popular in!redient used in home;made s8eets and ca:es. =estlL2s $il:maid is the leadin! "rand 8ith more than 55> mar:et share. 'he only other competitor is *C$$+9s mul.

Infant 9oods =estle is the mar:et leader in the se!ment. 'his is a cate!ory 8here "rand loyalties are very stron! as mothers 8ant the "est for their "a"ies. <ein? is the only other si!nificant competitor to =estle in this se!ment. =estlL2s Cerelac and =estum to!ether have around 47> mar:et share and <ein?9s +arex has close to 64> share. 3or: hard is a relatively ne8 entrant 8ith its +irst +ood "rand. 3oc:hardt also proposes to launch a ne8 "a"y food Easum containin! moon! Amoon! is one of the easily di!esti"le pulses-. 'he Easum "rand 8ill directly compete 8ith =estle9s =estum Amade from rice-.

24

In infant formula also =estle9s )acto!en formula and )acto!en standard formula are the leadin! "rands 8ith around 15> mar:et share. %ther "rands are <ein?9s )actodex +arex, 3oc:hardt9s M#apta:os, and mul9s mulspray

25

MaFor dairy produ2ts manufa2turers Some of t7e maFor dairy produ2ts manufa2turers in t7e 2ountry3 Company Nestle !imited 'rands MaFor Produ2ts #ndia Mil:maid4 Cerela24 S?eetened 2ondensed mil:4 !a2toGen4 Milo4 Everyday Mil: food malted foods4 mil: po?der and "airy ?7itener %7ee4 i2e 2ream4 and ot7er mil: produ2ts Malted Mil: food4 G7ee4 butter4 po?dered mil:4 mil: fluid and ot7er mil: based baby foods< Condensed mil:4 s:immed mil: po?der4 ?7ole mil: po?der4 dairy mil: ?7itener4 27illed and pro2essed mil:

Mil: !imited Smit7 'ee27am !imited

food

5line Horli2:s4 Maltova4 1iva

#ndodan #ndustries !imited

#ndana

37

%uFarat operative Mar:etinG (ederation !imited H<J< !imited

Co. mil:

Amul

'utter4 27eese and ot7er mil: produ2ts

HeinE (are94 Complan4 %la2tose4 'onniemi94 1itamil: Mil:man

#nfant Mil:food4 malted Mil:food

'ritannia

(lavored mil:4 27eese4 Mil: Po?der4 %7ee Malted food

Cadbury

'ournvita

36

Man/fact/ring Process $il: is pasteuri?ed "y treatin! it to hi!h temperature for a short time. 'he main aim in treatin! mil: 8ith hi!h temperature is to destroy the disease causin! patho!ens and to improve :eepin! (uality. Separation machine is typically a hi!h po8ered centrifu!e. 'he centrifu!al force ma:es mil: fat !lo"ules and emer!es as cream from the separator "o8l. Separation of cream produces s:im mil: from 8hich several dairy products are made. /a"y foodH +resh mil:, 8hich is received from farmersB traders, is chilled and stored. 'hen $SD s:immedB 8et s:immed mil: and su!ar are added in tur"o mixture to achieve the desired specifications of in!redients in the mil:. 'his is follo8ed "y addition of vitamins and minerals. 'his mil: 8hich contains in!redients to specifications is filtered, cooled, analy?ed and then purified. 'hen it passes throu!h specific pasteuri?ation and is ta:en to evaporator for pre;condensin!. Pre;condensate is homo!eni?ed, cooled and stored. Cooled pre;condensate is heated and dried in spray drier AE!ron-. 'hen su!ar is added. 'he po8der is then passed throu!h chemical analysis to chec: (uality and is filled in tins throu!h fillin! machines. 'hese tins are !assed durin! !as mix and then sealed, pac:ed and dispatched in card"oard cartons.

32

</tter6 3hole mil: is first separated into s:im mil: and cream "y centrifu!al force in a separator. 'he cream is then pasteuri?ed either throu!h "atch process or a continuous process. In "atch process, cream is heated to a minimum of 147 C and held at the temperature for 37 minutes, 8hile in continuous process it is heated at 457 C and is held for only 65 seconds. 'he heat treatment destroys "acteria, inactivates en?ymes and !ives the cream a coo:ed flavour. fter pasteuri?ation, a temperin! process is applied in 8hich cream is held at 677 C to allo8 rearran!ement of the fat crystals. 'he cream is then churned to produce "utter. Continuous churnin! converts cream into "utter in a fe8 minutes 8hile "atch churnin! ta:es a lon!er time. Composition and colour ad&ustment is also done at the churnin! sta!e and a salt solution is added to !ive the finished "utter a salty taste. "out 63 litres of mil: 8ith 0> fat is re(uired to produce 6 :! of "utter.

Cheese6 'here are thousands of varieties of cheese in the 8orld. 'he type of manufacturin! process used in the production of cheese determines its flavour, 8hich ran!es from extremely mild to very sharp, and its texture, 8hich can "e semi;solid to almost stone hard. Cheese ma:in! re(uires four main in!redients ; !ood (uality mil:, rennet or coa!ulatin! acids, culture and salt. Cheese is !enerally made from co89s mil:. "out 67 litres of mil: 8ith 3> fat is re(uired for ma:in! 6 :! of cheese. =atural Cheese is made "y coa!ulatin! or curdlin! mil:, stirrin! E heatin! the curd, drainin! off the 8hey and collectin! or pressin! the curd. 'he desired flavour and texture is o"tained "y varyin! the temperature, humidity and time period of the curin! process. S8eetened condensed mil: is usually made from fresh mil: "y addin! su!ar to the mil:

33

pre;8armin! and concentratin! the mixture in the hi!h vacuum. 'he syrupy mil: is then cooled so that the lactose crystalli?es as very fine crystals and then the product is coa!ulated. 9/t/re Pros%ects IndiaN N s dairy sector is expected to triple its production in the next 67 years in vie8 of expandin! potential for export to Europe and the 3est. $oreover 8ith 3'% re!ulations expected to come into force in comin! years all the developed countries 8hich are amon! "i! exporters today 8ould have to 8ithdra8 the support and su"sidy to their domestic mil: products sector. lso India today is the lo8est cost producer of

per litre of mil: in the 8orld, at 21 cents, compared 8ith the C.S9 03 cents, and GapanN N s K2.4 dollars. lso to ta:e advanta!e of this lo8est cost of mil: production and

increasin! production in the country multinational companies are plannin! to expand their activities here. Some of these mil: producers have already o"tained (uality standard certificates from the authorities. 'his 8ill help them in mar:etin! their products in forei!n countries in processed form. 'he ur"an mar:et for mil: products is expected to !ro8 at an accelerated pace of around 33> per annum to around #s.43,577 crores "y year 2774. 'his !ro8th is !oin! to come from the !reater emphasis on the processed foods sector and also "y increase in the conversion of mil: into mil: products. /y 2774, the value of Indian dairy produce is expected to "e #s 67, 77,777 million. Presently the mar:et is valued at around #s1, 77,777mn.

34

35

COMPANY PROFILE OF AMUL

The Am/l > Meaning
AMUL -e!&( 1 #r'ce e(( 1 '& S!&(,r'" . A 2*! '"y c$&"r$ e3#er" '& A&!&d (*))e("ed "he br!&d &!-e 1AMUL4 /r$- "he S!&(,r'" +$rd 1A-$$ y!4 0!r'!&"(5 ! -e!&'&)

1#r'ce e((4 !re /$*&d '& (e0er! I&d'!& !&)*!)e(. A-* #r$d*c"( h!0e bee& *(ed '& -' '$&( $/ h$-e ('&ce 6946 .

A-* b*""er A-* -' , #$+der A-* )hee A-* (#r!y A-* chee(e A-* ch$c$ !"e( A-* Ice7 cre!!"

.$d!y A-* '( ! (y-b$ $/ -!&y "h'&)( . $/ h')h 8 2*! '"y #r$d*c"( ($ d

re!($&!b e #r'ce( . 9 "r'*-#h $/ '&d')e&$*( "ech&$ $)y . O/ "he -!r,e"'&) (!00y $/ ! /!r-er( $r)!&':!"'$& . A&d #r$0e& -$de /$r d!'ry de0e $#-e&" .

M&TT&? @I)I&'? A'A ;UALITY P&LICY M&TT& 'he main motto of $C) is to help farmers. +armers 8ere the foundation stone of

$C). 'he system 8or:s only for farmers and for consumers, not for profit. 'he main of $C) is to provide (uality products to the consumers at minimum cost. 'he !oal of $C) is to provide maximum profit in terms of money to the farmers.

30

@I)I&' Fision of 'he $C) is to provide and vanish the pro"lems of farmers Amil: producers-.

$C) apparition 8as to run the or!ani?ation 8ith co;operative of four main

parties, the farmers, the representatives, the mar:eters, and the consumers. ;UALITY P&LICY 3e the motivated and devoted 8or: force of $C) are committed to produce 8hole

some and safe foods of excellent (uality to remain mar:et leaders throu!h deployment of (uality mana!ement system, state of art technolo!y innovation and eco; friendly deli!htment of customer and "etterment of mil: producer 7I)T&RY In early 65472s a farmer in Daira district, as else8here in India, derived his income almost entirely from seasonal crops. 'he income from mil: 8as paltry and could not "e depended upon. 'he main "uyers 8ere mil: traders of Polson )td.;a privately o8ned

31

company that en&oyed monopoly for supply of mil: from Daira to the *overnment $il: Scheme /om"ay. 'he system leads to exploitation of poor and illiterate farmers "y the private traders. <o8ever, 8hen the exploitation "ecame intolera"le, the farmers 8ere frustrated. 'hey collectively appealed to Sardar Falla"h"hai Patel, 8ho 8as a leadin! activist in the freedom movement. Sardar Patel advised the farmers to sell the mil: on their o8n "y esta"lishin! a cooperative union, instated of supplyin! mil: to private traders. Sardar Patel sent the farmer to Shri $orar&i Dasai in order to !ain his Co;operation and help. Shri Dasai held a meetin! at OSamr:ha2 villa!e near nand, on Ganuary 4, 6540. <e

advised the farmers to from a society for collection of the mil:.'hese villa!e societies 8ould collect the mil: themselves and also decided prices for that 8hich 8ould "e profita"le for them. 'he district union 8as also from to collect the mil: from such villa!e cooperative societies and to sell them. It 8as also resolved that the !overnment should as:ed to "uy mil: from the union. <o8ever, the !overnment did not seem to help farmer "y any means. It !ave the ne!ative response "y turnin! do8n the demand for the mil:. 'o respond to this action of !overnment, farmer of Daira district 8ent on a mil: stri:e. +or 65 days not a sin!le drop of mil: 8as sold to the traders. s a result the /om"ay mil: scheme 8as severely affected. 'he mil: commissioner of /om"ay then visited +inely he decided to fulfill the farmers demand. nand to assess the situation.

34

'hus their cooperative unions 8ere forced at villa!e and district level to collect and sell mil: on a cooperative "asis, 8ithout the intervention of !overnment. $r. Fer!hese Durien had main interest in esta"lishin! union 8ho 8as supported "y Shri 'ri"huvandas Patel 8ho convinced farmers in formin! the cooperative unions at thevilla!e level. O'he Daira District Co;operative $il: Producers2 Cnion2 8as thus esta"lished in nand and 8as re!istered formally under section 67 of /om"ay ct FII nand

of 6525 on Decem"er 64, 6540. Since then farmers are sellin! all the mil: in

throu!h cooperative union. In 6555 it 8as commonly decided the sell mil: under the "rand name O mul2 t the initial sta!e only 257 liters of mil: 8as collected everyday. /ut 8ith the !ro8in! a8areness of the "enefits of the co;operative;ness the collection of mil: increased. 'oday mul collect 57, 77,777 liters of mil: everyday. s the mil: is

perisha"le commodity it "ecame difficult to preserve mil: for a lon!er period. /esides 8hen the mil: 8as to "e collected from the far places there 8as a fear of spoilin! of mil:. 'o over come this pro"lem the union thou!ht to develop the chillin! unit at various &unctions, 8hich 8ould collect the mil: and could chill so as preserve it a for a lon!er period. 'hus, today mul has more than 604 chillin! centers in various villa!es. $il: is collected from almost 6751 societies. 3ith the financial help from C=ICE+, assistance from the !overnment of =e8 Pealand under the Colom"o plan, of #s. 57 million for factory to manufactory mil: po8der and "utter. Dr. #a&endara Prasad, the president of India laid the foundation on

35

=ovem"er 57, 6554. Shri Pandit Ga8aharlal =ehru, the prim minister of India declared it open at mul dairy on =ovem"er 27, 6555. plant to manufacture "alanced cattle feed 8as formally commissioned on %cto"er 36, 6504 "y Shri )al"ahadur Shastri, the Prime $inister of India. t the

re(uest of the !overnment of India, a ne8 dairy 8ith a capacity to manufacture 47 tons of mil: po8der and 27 tons of "utter a day 8as completed in 6503. 'his 8as meant to meet the re(uirement of India2s defense forces. 'he dairy 8as declared open "y Shri$orar&i Desai in pril, 6505. in 6514, the Daira Cnion setup a plant to manufacture hi!h;protein 8eanin! food, chocolate and malted food at $o!ar, a"out 4 :m south of nand. In Septem"er, 6546, the second cattle feed plant at ODan&ari2 8ere started. 'he succesion of the co;!eneration pro&ect on Septem"er 66, 6545, mar:ed a milestone on the ener!y front 8hen t8o !as tur"ine !enerators of 6.5 $3 each "ased on natural !as, 8ere commissioned. %n %cto"er 36, 6552, Dr. F. Durien chairman, =ational Dairy Development /oard, laid the foundation of Daira Cnion2s third dairy 8ith a processin! capacity of 0.5 la:h liters of mil: a day. 3or: on the third dairy and cheese plant at ODhatra&2 8ith capacity for 27 $etric 'on of cheese per day, "e!an in +e"ruary, 6554. lso in 6554, Daira Cnion put up "read spread plant at O$o!ar2 8ith the assistance from =ational Dairy Development /oard. *u&arat Cooperative $il: $ar:etin! +ederation A*C$$+- is India9s lar!est food products mar:etin! or!ani?ation. It is a state level apex "ody of mil: cooperatives in

47

*u&arat 8hich aims to provide remunerative returns to the farmers and also serve the interest of consumers "y providin! (uality products 8hich are !ood value for money.

46

Mem2ers6

63 district cooperative mil: producers9 Cnion

'o. of Prod/cer Mem2ers6 'o. of @illage )ocieties6 Total Mil3 handling ca%acity6 Mil3 collection Mil3 collection Mil3 Arying Ca%acity6 Cattle feed man/fact/ring Ca%acity6 A2o/t Machinery

2.0 million 62,152 67.60 million litres per day 2.34 "illion litres 0.5 million litres 554 $ts. per day 2047 $ts per day

In $C) Q 3 production of po8der, /utter and $il: are "ein! done continuously. 'hese productions are done "y latest machineries e(uipped 8ith computer system and it is handled "y one technicians.

; ;

'he $il: pasteuri?er machines "elon! to Alfa level com%any of P/ne Po8der plant machineries "elon! to L B T Larson and T/r2o company of India

/utter production machineries "elon! to ).#.com%any of s0itr8land and other

/utter manufacturin! production machineries "elon! to )imon 9eres com.of 9rance

42

%#* =IS 'I%= S'#CC'C#E %+ $C) <oard of Airector

C7AIRMA' MA'A#I'# C7AIRMA' #('(RAL MA'A#(R

A))I)TA'T #('(RAL MA'A#(R

MA'A#(R A(PUTY MA'A#(R

A))I)TA'T MA'A#(R )('I&R (C(CUTI@(

)('I&R &99IC(R )('I&R A))ITA'T =&R!(R)

#rade ( Ato () .

43

44

Sales Turnover
Sales Turnover 699479; 699;796 6996797 6997798 6998799 6999700 =000706 =00670= =00=70< =00<704 =00470; =00;706 =006707 =007708 =008709 =009760 Rs *million0 66640 6<790 6;;40 68840 ==69= ==68; ==;88 =<<6; =74;7 =8946 =9==; <77<6 4=778 ;==;4 6766< 800;< S H *in million0 <;; 400 4;0 4;; 49< 49< ;00 ;00 ;7; 666 67= 8;0 60;0 6<=; 6;0; 6700

List of Prod/cts Mar3eted6 <read s%reads6

mul /utter mul )ite )o8 +at /read spread mul Coo:in! /utter 45

Cheese Range6

mul Pasteuri?ed Processed Cheddar Cheese mul Processed Cheese Spread mul Pi??a A$o??arella- Cheese mul Shredded Pi??a Cheese mul Emmental Cheese mul *ouda Cheese mul $alai Paneer Acotta!e cheeseCtterly Delicious Pi??a

Mithaee Range ((thnic s0eets)6

mul Shri:hand A$an!o, Saffron, lmond Pistachio, Cardamommul mra:hand mul $ithaee *ula"&amuns mul $ithaee *ula"&amun $ix mul $ithaee Dulfi $ix vsar )adoos

U7T Mil3 Range6

mul Sha:ti 3> fat $il: mul 'aa?a 6.5> fat $il: mul *old 4.5> fat $il:

40

mul )ite Slim;n;'rim $il: 7> fat mil: mul Sha:ti 'oned $il: mul +resh Cream mul Sno8cap Softy $ix

P/re #hee6

mul Pure *hee Sa!ar Pure *hee mul Co8 *hee

Infant Mil3 Range6

mul Infant $il: +ormula 6 A7;0 monthsmul Infant $il: +ormula 2 A 0 months a"ovemulspray Infant $il: +ood

Mil3 Po0ders6

mul +ull Cream $il: Po8der mulya Dairy 3hitener Sa!ar S:immed $il: Po8der

)0eetened Condensed Mil36

mul $ithaimate S8eetened Condensed $il:

9resh Mil36

41

mul 'aa?a 'oned $il: 3> fat mul *old +ull Cream $il: 0> fat mul Sha:ti Standardi?ed $il: 4.5> fat mul Slim E 'rim Dou"le 'oned $il: 6.5> fat mul Saathi S:immed $il: 7> fat mul Co8 $il:

C/rd Prod/cts6

Ro!i S8eetened +lavoured Dahi ADessertmul $asti Dahi Afresh curdmul $asti Spiced /utter $il: mul )assee

44

Am/l Ice creams6

Royal Treat Range A/utterscotch, #a&"ho!, $alai Dulfi'/t:o:Mania Range ADa&u Dra:sh, Desar Pista #oyale, +ruit /onan?a, #oasted lmond-

'at/re1s Treat A lphanso $an!o, +resh )itchi, Shahi n&ir, +resh Stra8"erry, /lac: Currant, Santra $antra, +resh Pineapple-

)/ndae Range A$an!o, /lac: Currant, Sundae $a!ic, Dou"le SundaeAssorted Treat AChoco"ar, Dollies, +rosti:, Ice Candies, 'ricone,

Chococrunch, $e!a "ite, Cassatta

Utterly Aelicio/s AFanilla, Stra8"erry, Chocolate, Choc chips, Ca:e $a!ic-

Chocolate B Confectionery6

mul $il: Chocolate mul +ruit E =ut Chocolate

<ro0n <everage6

=utramul $alted $il: +ood

Mil3 Arin36

mul Dool +lavoured $il: A$an!o, Stra8"erry, Saffron, Cardamom, #ose, Chocolate-

mul Dool Cafe

45

7ealth <everage6

mul Sha:ti 3hite $il: +ood

Amul 'utter %irl Edited from an article by Mini Verma published in The Asian Age on March 3, 1996

T7e moppet ?7o put Amul on #ndia8s brea:fast table 57 years after it 8as first launched, mul9s sale fi!ures have &umped from 6777 tonnes

a year in 6500 to over 25,777 tonnes a year in 2774. =o other "rand comes even close to it. ll "ecause a thum";si?ed !irl clim"ed on to the hoardin!s and put a spell on the

masses.

<om2ay6 Summer of 6501.

Charni #oad flat. $rs. Sheela $ane, a 24;year;old

house8ife is out in the "alcony dryin! clothes. +rom her second floor flat she can see her nei!h"ours on the road. 'here are other people too. 'he cro8d seems to "e !ro8in! lar!er "y the minute. Cna"le to cur" her curiosity Sheela $ane hurries do8n to see 8hat all the commotion is a"out. She expects the 8orst "ut can see no si!ns of an accident. It is her four;year;old 8ho dra8s her attention to the hoardin! that has come up overni!ht. IIt 8as the first mul hoardin! that 8as put up in $um"ai,I recalls

Sheela $ane. IPeople loved it. I remem"er it 8as our favourite topic of discussion for the next one 8ee:S Every8here 8e 8ent someho8 or the other the campai!n al8ays seemed to crop up in our conversation.I

57

Call her the +riday to +riday star. #ound eyed, chu""y chee:ed, 8in:in! at you, from strate!ically placed hoardin!s at many traffic li!hts. She is the mul moppet

everyone loves to love Aincludin! pric:ly votaries of the Shiv Sena and /GP-. <o8 often have 8e stopped, loo:ed, chuc:led at the mul hoardin! that casts her sometime

as the coy, shy $adhuri, a "old sensuous Crmila or simply as herself, dressed in her little pol:a dotted dress and a red and 8hite "o8, holdin! out her favourite pac:et of "utter. +or 37 odd years the Ctterly /utterly !irl has mana!ed to :eep her fan follo8in! intact. So much so that the ads are no8 ready to enter the Guinness Book of World Records for "ein! the lon!est runnin! campai!n ever. 'he ultimate compliment to the "utter came 8hen a /ritish company launched "utter and called it Ctterly /utterly, last year. It all "e!an in 6500 8hen Sylvester daCunha, then the mana!in! director of the advertisin! a!ency, SP, clinched the account for mul "utter. 'he "utter, 8hich had

"een launched in 6545, had a staid, "orin! ima!e, primarily "ecause the earlier advertisin! a!ency 8hich 8as in char!e of the account preferred to stic: to routine, corporate ads.

56

O&e $/ "he /'r(" A-* h$!rd'&)(

In India, food 8as somethin! one couldn9t afford to fool around 8ith. It had "een ta:en too seriously, for too lon!. Sylvester daCunha decided it 8as time for a chan!e of ima!e. 'he year Sylvester daCunha too: over the account, the country sa8 the "irth of a campai!n 8hose charm has endured fic:le pu"lic opinion, !immic:ry and all else. 'he mul !irl 8ho lends herself so completely to mul "utter, created as a rival to the

Polson "utter !irl. 'his one 8as sexy, villa!e "elle, clothed in a tantali?in! choli all "ut coverin! her upper re!ions. IEustace +ernande? Athe art director- and I decided that 8e needed a !irl 8ho 8ould 8orm her 8ay into a house8ife9s heart. nd 8ho "etter than a little !irlTI says Sylvester daCunha. $oppet 8as "orn. 'hat %cto"er, lamp :ios:s and the "us sites of the city 8ere splashed 8ith the moppet on a horse. 'he "aseline simply said, 'horou!h "read, Ctterly /utterly Delicious mul,. It 8as a matter of &ust a fe8 hours "efore the daCunha office 8as nd so it came a"out that the famous mul

rin!in! 8ith calls. =ot &ust adults, even children 8ere callin! up to say ho8 much they had li:ed the ads. I'he response 8as phenomenal,I recalls Sylvester daCunha. I3e :ne8 our campai!n 8as !oin! to "e successful.I

52

+or the first one year the ads made statements of some :ind or the other "ut they had not yet ac(uired the topical tone. In 6501, Sylvester decided that !ivin! the ads a solid concept 8ould !ive them extra milea!e, more dum, so to say. It 8as a decision that 8ould stand the daCunhas in !ood stead in the years to come. In 6505, 8hen the city first sa8 the "e!innin! of the <are #ama <are Drishna movement, Sylvester daCunha, $ohammad Dhan and Csha /andar:ar, then the creative team 8or:in! on the mul account came up 8ith a clincher ;; 9<urry mul,

<urry <urry9. /om"ay reacted to the ad 8ith a fervour that 8as almost as devout as the Is:on fever. 'hat 8as the first of the many topical ads that 8ere in the offin!. +rom then on mul

"e!an playin! the role of a social o"server. %ver the years the campai!n ac(uired that all important mul touch. India loo:ed for8ard to mul9s evocative humour. If the =axalite movement mul 8ould "e up there on the hoardin!s sayin!,

8as the happenin! thin! in Calcutta, I/read 8ithout Indian

mul /utter, cholbe na cholbe na A8on9t do, 8on9t do-. If there 8as an mul 8ould "e there a!ain sayin!, Indian irlines 3on9t +ly

irlines stri:e

3ithout mul.

53

'here are stories a"out the "utter that people li:e to relate over cups of tea. I+or over 67 years I have "een collectin! mul ads. I especially li:e the ads on the "ac:s of

the "utter pac:ets, Isays $rs. Sumona Farma. 3hat does she do 8ith these adsT II have made an al"um of them to amuse my !randchildren,I she lau!hs. I'hey are almost part of our culture, aren9t theyT $y !randchildren are already "e!innin! to realise that these ads are not &ust a source of amusement. 'hey ma:e them a8are of 8hat is happenin! around them.I Despite some of the ne!ative reactions that the ads have !ot, DaCunhas have made it a policy not to play it safe. 'here are numerous ads that are ris(uL in tone. I3e had the option of "ein! s8eet and playin! it safe, or ma:in! an impact. fine "alance had to "e struc:. 3e have a campai!n that is stron! enou!h to ma:e a statement. I didn9t 8ant the hoardin!s to "e pleasant or tame. 'hey have to say somethin!,I says #ahul daCunha. I3e ran a couple of ads that created (uite a furore,I says Sylvester daCunha. I'he Indian irlines one really an!ered the authorities. 'hey said if they didn9t ta:e do8n the ads they 8ould stop supplyin! mul "utter on the plane. So ultimately 8e discontinued mul !irl 8as sho8n

the ad,I he says lau!hin!. 'hen there 8as the time 8hen the

8earin! the *andhi cap. 'he hi!h command came do8n heavy on that one. 'he *andhi cap 8as a sym"ol of independence@ they couldn9t have anyone not ta:in! that seriously. So despite their reluctance the hoardin!s 8ere 8iped clean. I'hen there 8as an ad durin! the *anpati festival 8hich said, *anpati /appa more *hya A*anpati /appa ta:e more-. 'he Shiv Sena people said that if 8e didn9t do somethin! a"out removin! the ad they 8ould come and destroy our office. It is surprisin! ho8 vi!ilant the political forces

54

are in this country. Even 8hen the Enron ads AEnr on or off- 8ere runnin!, #e"ecca $ar: 8rote to us sayin! ho8 much she li:ed them.I

A-* >( #$'&" $/ 0'e+ $& "he MR c$//ee c$&"r$0er(y

'here 8ere other instances too. <eroine

ddiction,

mul9s little &o:e on <ussain had

the artist rin!in! the daCunhas up to re(uest them for a "lo8 up of the ad. I<e said that he had seen the hoardin! 8hile passin! throu!h a small district in CP. a<e sid says #ahul daCunha in amused tones. Indians do have a sense of humour, afterall.he had as:ed his assistant to ta:e a photo!raph of himself 8ith the ad "ecause he had found it so funny,I +rom the Sixties to the =ineties, the mul ads have come a lon! 8ay. 3hile most

people a!ree that the mul ads 8ere at their pea: in the Ei!hties they still maintain that the mul ads continue to tease lau!hter out of them. 3here does mul9s ma!ic actually lieT $any "elieve that the charm lies in the catchy

lines. 'hat 8e lau!h "ecause the humour is 8hat any"ody 8ould en&oy. 'hey don9t pander to your nationality or certain sentiments. It is pure and simple, everyday fun.

55

PR&AUCTI&' B&P(RATI&' A(PARTM('T

I'TR&AUCTI&' Production mana!ement is refers to the process of correction of past mista:es catchin! up 8ith the ne8 techni(ues, ta:in! up steps 8ith developin! techni(ues and ta:in! measures for the production of !oods at competitive cost.U 'he "asic philosophy of production mana!ement is to launch a frontal attac: on direct costs and effective use the availa"ility manpo8er 8eavin! ne8 techni(ues in to the 8hole to :eep the production unit efficient and developin! production mana!ement is the process of plannin!, or!ani?in!, directin! and controllin!. 'he mul is started 8ith only 257 liters of mil: per day. /ut no8 t the initial sta!e, mul collect

avera!e 5 la:hs of liters mil: per day.

mul has not any pro"lem

re!ardin! mil:, "ut in the 8inter season there 8as excess supply of mil:. So, mul has to sell out that excess mil: at the lo8 price or mul has to face loss. 'o removin! these pro"lems mul ta:e decision to set up a plant to process the surplus mil: "utter and

mil: po8der. 'oday the mul has three plants Dno8n as mul 6, 2 E 3 all three plant 8or:

24 hours a day continuously. 'he all manufacturin! process is done automatically. 'he production is done in the special machines. 'hese machines and the technolo!y are import;id from the '#+' PE D Company. 'here is also facility of chillin! of mil:,

so that the mil: remains usa"le. 'oday three plant of $C) perform different function. $C) Q 6 presently it is use as a !o do8n for storin! ra8 materials.

50

6.

$C) Q 2 'oday in this unit, the production process of *hee and pac:in!s are runnin! .

2.

$C) Q 3 'his unit is producin! flavored mil:.

$C) "utter,

$C) spray po8der, and

0rgani'ation Structure Managing ,irector $eneral Manager

,airy !lant Manager 3!roduction4 Manager 31ng.4 ,y. Manager 31ng.4 A.M. 31ng.4 +orkers 0fficer

Asstt. $. M. A.M. 31ng.4 0fficers

echnicians 1ng. +orkers

0fficers echnicians 1ng. +orker

51

54

Mil3 Collection Cycle 'he success of each and every dairy industry is the !ettin! the mil: from the farmers and ma:in! that mil: in use as soon as possi"le "efore that mil: !et spoiled "ecause the mil: is the perisha"le product. +or the smooth runnin! the "usiness of dairy industry the industry must concentrate on the mil: collection cycle. mul dairy is very

conscious a"out the mil: collection cycle "ecause the "ase of the success of the mul is mil: collection cycle.

Prod/ction ca%acity of Am/l

/utter Po8der plant Po8der plant +lavour mil: 57 to 07 'ones 17 tones 07 tones 47777 "ottles

A2o/t Machinery In $C) Q 3 production of po8der, /utter and $il: are "ein! done continuously. 'hese productions are done "y latest machineries e(uipped 8ith computer system and it is handled "y one technicians. ; ; 'he $il: pasteuri?er machines "elon! to Alfa level com%any of P/ne Po8der plant machineries "elon! to L B T Larson and T/r2o company of India /utter production machineries "elon! to ).#.com%any of s0itr8land and other

55

/utter manufacturin! production machineries "elon! to )imon 9eres com.of 9rance

07

Am/l > + Ra0 Rece%tion Aoc3

#eception doc: is the very first department of any dairy 8here mil: is unloaded and simultaneously tested . mul;2 has a 8ell desi!ned #$#D , situated in the 8est 8in!

of dairy . #a8 mil: at mul; 2 is received mainly throu!h cans . 'here are 2 reception lines for unloadin! mil: cans in and remainin! 47> is co8 mil: . mul Q 2 . "out 07 > of reception is of "uffalo mil:

9lo0 chart of Am/l:+ %rocess

Unloading of cans /hain conveyer .emoval of cans lid !hysically inception of milk ransfer of milk to dump tank 3 56*57cans8 min4 9ilter +eighing .aw milk collection tank : Amul *7 !asteuri'ation 3 At ;< / for 5= seconds4 Standardi'ation !rocessed milk silo

06

Sent to different production section section

milk pouch packing

02

</tter section
'he utterly /utterly Delicious "utter of the of mul is one of the most popular product mul

mul dairy alon! 8ith the famous "utter !irl . 'he "utter section is located in

;3 8hich manufactures 'a"le /utter , 8hite "utter and renduced salt "utter . 'he section is completely computer controlled and is e(uipped 8ith most modern imported e(uipments ./utter section very important as it handles fat, 8hich is the costliest constituent . 'he cream o"tained from process section is fully utili?ed for "utter ma:in! . mul 8hite and ta"le /utter is exported to CS and various $iddle Eastern countries .

&P(RATI&'
'he cream for manufacturin! /utter is receivin! from mul;3 process section 8hile

standardi?ation of mil: . In mul ;3 the mil: fat 8ill "e separated at a"ove 07 Celsius , the centrifu!al separators inline 8ith $il: pasteuri?er separate this as cream . 'he cream thus separated is pasteuri?ed and then pumped to the cream "uffer tan:s and to cream silo . fter a!ein! at 4 Celsius for 24 hrs , cream is pumped to cream chillin! unit in the "utter section . there the temperature of cream is ad&usted to the re(uired churnin! temperature of continuous /utter $a:in! $achine.

03

9lo0 chart of </tter %rocessing

.aw cream !asteuri'er 3>< to >= / 4 /ooling 3;*> /4 Ageing3;*> /8 6?hours4 /ream (alance tank !@1 3 for temperature ad"ustment at A*; /4

/hurning 3speed =<<* 56<<rpm4 (utter $rains +ashing with &utter milk +orking 3 7<* B<rpm 4 6 washing with &utter milk silo working
nd

&utter Milk

white &utter addition

salt 3C6D4 %color

5= kg packing (lending 3 6=*7< rpm %vacuum 4 04

export ghee &utter section packaging lines

>.5g &lister pack 3Army4

5<<g refill pack

5<<g refill pack

?<<tin Air pack 36gm4

Pac3ing materials /sed 6

Delocali?e mar:et Dou"le laminated is used for export 'in Q used for 477! rmy pac: Card "oard "ox; used for tertiary pac:in! 3ply for 5.6 ! 8ei!ht pac:a!e 5ply for normal E export

Po0der %lant
+;35 plant is situated in mul ;2 near to the rail8ay sidin! . 'he plant is a sin!le sta!e

dryin! plant havin! a capacity of 35 'DP. 'he plant is not in re!ular use and mainly used for the manufacturin! of cheese 8hey po8der .

05

+;35 C%=DE=SI=* P) =' DE' I)S $a:e H SSP ,+arida"ad 'ype H +allin! film vertical tu"e type =o of Pre heater H 5 =o of calendria H 1 =o of vapor separators H 5

&P(RATI&' A(TAIL PR&AUCT U)( A'A C7ARACT(RI)TIC)

MIL! %ne of the most versatile food consumed "y us. ll children start their 8ith mother2s

mil: and continue to use it in one other throu!hout their life. It is the secretion from the mammary !lands of a lactatin! mammal. 'he 8hite fluid, :no8 as mil:, is made up of mil: fat and other mil: solids. AMUL IC( CR(AM mul ice cream is made up from fresh mil:. Ice cream are rich in protein, calcium, dairy cream and vitamins. Ice cream are a complete food, easy to di!est and full of ener!y. MA'U9ACTURI'# PR&C()) 9&R IC( CR(AM mul ice cream is made up from mil:, mil: products, su!ar, sta"ili?ers and emulsifiers. Com%osition

$il: +at 63.5> to 64.5> 'otal Solids 47> to 46> Su!ar 65> pprox. cidity 7.61> to 7.65>

00

Protein 3.5> to 4.6>

01

9ood (nergy @al/e Calories per 677 ml ;650.1 :cal

Flavors 2A)ILA , Straw&erry, !ineapple, 0range, .ose, Mango, /hocolate, @oney*,ew*Melon, utee 9ruity, Litchi, -esar !ista, -a"u ,raksh, (utterscotch, /hocE chips, .a"&hog and /ashew (reak.

Packaging
=< ml cup, 5<< ml cup, =<< ml pack,5 litre pack, ? litre pack, /hoco&ar, Ice candies, /ones and -ulfies .

MA'U9ACTURI'# PR&C()) 9&R MIL!

MIL! PR&CUR(M('T 'otal mil: procurement "y our $em"er Cnions durin! the year 2770;71 avera!ed 01.25 la:h :ilo!rams A0.1 million :!- per day, representin! a !ro8th of 4.5 per cent over 04.34 la:h :ilo!rams A0.4 million :!- per day achieved durin! 2775;70. 'he hi!hest procurement as usual 8as recorded durin! Ganuary 2771 at 44.75 la:h :ilo!rams A4.4 million :!- per day. 'his increase in mil: procurement is very impressive, :eepin! in mind the massive loss suffered "y our farmers due to floods durin! the monsoon season, specially in Surat district.

04

MIL! PR&C())I'#
6 7omogeni8ation6 ; $il: must then "e homo!eni?ed. 3ithout homo!eni?ation, the mil: fat 8ould separate from the mil: and rise to the top. $il: fat is 8hat !ives mil: its rich and creamy taste. In this process $il: is transferred to a piece of e(uipment called a homo!eni?er. In this machine the mil: fat is forced, under hi!h pressure throu!h tiny holes.

6 . Paste/ri8ationH; Pasteuri?ation is the process that purifies mil: and helps it stay fresher, lon!er. $il: is pasteuri?ed "y heatin! it to 12VC for 60 seconds then (uic:ly coolin! it to 4VC. Pasteuri?ation is named after )ouis Pasteur, the famous scientist.

05

.Adding VitaminsF * /efore homo!eni?ation, vitamin D is added to all mil:.

Fitamin D com"ined 8ith the calcium that naturally exists in mil: help !ives us stron! "ones and teeth. Dairies also add Fitamin !ood for our eyesi!ht. to s:im, 6> and 2> mil:. Fitamin is

?.Packaging MilkG * $il: is no8 ready to "e pac:a!ed. $il: is pumped throu!h automatic fillin! machines direct into "a!s, cartons and &u!s. 'he machines are carefully saniti?ed and pac:a!es are filled and sealed 8ithout human hands. Durin! the entire time that mil: is at the dairy, it is :ept at 6V ; 2VC. 'his prevents the development of extra "acteria and :eeps the mil: it2s freshest.

17

=.StoringG* $il: is delivered to !rocery stores, convenience stores and restaurants in refri!erated truc:s that :eep mil: cooled to 6V ; 4VC. 'he stores ta:e their mil: and immediately place it in their refri!erated stora!e area. /ecause fresh mil: is so important to our diets, dairies, and our health.

16

)/%%ly chain management of AMUL

)UPPLI(R)

#CMM9D) )UPPLY C7AI'

Processing : fter the union received the mil:, it 8as tested and if it 8as found to "e of !ood (uality, it 8as sent for processin!. If the mil: 8as found to have hi!h acidity, it 8as used to ma:e "uttermil:. #a8 mil: 8as sent throu!h a filter and clarifier and 8as pasteuri?ed. +or pasteuri?ation, mil: 8as treated at hi!h temperatures for a specified.

'his helped in destroyin! the patho!ens and in maintainin! the (uality.

fter

pasteuri?ation, the mil: 8as sent throu!h a separation machine. <ere the cream 8as separated and s:immed mil: 8as o"tained. ccordin! to the demand, the unions

pac:ed the mil: after it 8as pasteuri?ed and sent for distri"ution. 'he cream 8as mar:eted as mul +resh cream .

12

Distribution *C$$+ coordinated 8ith various unions to !et a re!ular supply of mil: and dairy products. 'he processed mil: and dairy products 8ere procured from district dairy unions and distri"uted throu!h third party distri"utors. 'o ensure (uality and timely deliveries, *C$$+ and the district unions had several mechanisms in place. 'he FCS constantly monitored the deliveries of the mil: collected and ensured that the mil: 8as pic:ed up on time. 'he unions monitored the supplies of mil: and the distri"ution of finished products.

=AR( 7&U)I'#:

mul products are availa"le in over 577,777 retail outlets across

India throu!h its net8or: of over 3,577 distri"utors. 'here are 41 depots 8ith dry and cold 8arehouses to "uffer inventory of the entire ran!e of products. *C$$+ transacts on an advance demand draft "asis from its 8holesale dealers instead of the che(ue system adopted "y other ma&or +$C* companies. 'his practice is consistent 8ith *C$$+9s philosophy of maintainin! cash transactions throu!hout the supply chain and it also minimi?es dumpin!. 3holesale dealers carry inventory that is &ust ade(uate to ta:e care of the transit time from the "ranch 8arehouse to their premises. 'his &ust; in;time inventory strate!y improves dealers9 return on investment A#%I-. "ranches en!a!e in route schedulin! and have dedicated vehicle operation . ll *C$$+

13

MIL! PR&C())I'# <L&C!

14

)UPPLY C7AI' (CPLA'ATI&' =IT7 AIA#RAM(

A(9I'ITI&' &9 @ALU( C7AI'

s per the a"ove dia!ram there are the first components is ra8 materialH In our company the ra8 materials are mil:, po8der for ice creams manufacturin!, different types of flavors for ice creams, pac:a!in! material, su!ar etc. re(uired "y the company for manufacturin!. In this step *C$$+ play a very important role it procures mil: from villa!es and for this it develops three types of system and that is societies at vill!e level, district level and state level.

15

Second component is suppliers are the farmers and other ra8 material for manufacturin! the ice creams are provided "y $ < = P#%'EI=S )'D., IDE ) ICE C#E $S and /< # ' ESSE=CE. 'his component is manufacturin! process 8hich is descri"e a"ove. In mil: process there are mainly five steps are re(uired and i.e. homo!eni?ation, pasteuri?ation, addin! vitamins, pac:a!in!, storin!. In this process there are also re(uirement of 8arehouse for storin! the product 8hich already made and also for the ra8 material. 'he next step is the distri"ution channel in 8hich *C$$+ plays very important role in that. It handle all the mar:etin! for $C) products. *C$$+9s products 8ere

mar:eted throu!h 57 sales offices located across India to 4,777 stoc:ists. 'hese stoc:ists supplied the products to more than 577,777 retail outlets.

10

'he next step is the customers in this cate!ory there are restaurants includes. retail shops and 8hole sellers are included.

lso the

'he last step is the consumer in 8hich the actual hose hold are included in this cate!ory. &/r Prod/ct AMUL means "priceless" in Sans:rit. 'he "rand name I mul,I from the Sans:rit I moolya,I 8as su!!ested "y a (uality control expert in IpricelessI, are found in several Indian lan!ua!es. millions of homes since 6540. mulspray, =utramul, mul Cheese, mul $il: and mul /utter, nand. Fariants, all meanin!

mul products have "een in use in mul $il: Po8der, mul Shri:hand, mul *hee,

mul Chocolates, mulya have made

mul Ice cream,

mul a leadin! food "rand in India. mul is a sym"ol of many thin!s. %f

A'urnoverH #s. 42.14 "illion in 2771;74-. 'oday

hi!h;(uality products sold at reasona"le prices. %f the !enesis of a vast co;operative net8or:. %f the triumph of indi!enous technolo!y. %f the mar:etin! savvy of a farmers9 or!ani?ation. nd of a proven model for dairy development.

11

C7e2: out t7is vast and ever.Gro?inG ranGe of 8tasteful8 Amul dele2tableI

EPlease clic3 here to do0nload the latest PR&AUCT A(TAIL(RE. <read )%reads Amul 'utter U""er y B*""er y ?e 'c'$*( Amul !ite L$+ /!"5 $+ @h$ e("er$ Bre!d S#re!d

"eli2ious Table MarGarine .he ?e 'c'$*( +!y "$ e!" he! "hy

Mil: "rin:s Amul 5ool Amul 5ool Cafe

5ool 5o:o A de ')h" "$ @h$c$ !"e L$0er(. ?e 'c'$*( @h$c$ !"e "!("e

Nutramul EnerGy "rin: A dr'&, /$r K'd( 7 #r$0'de( e&er)y "$ 14

(*'" "he &eed( $/ )r$+'&) K'd(

Amul 5ool C7o2olate Mil:

Amul 5ool (lavoured 'ottled Mil:

Amul 5ool (lavoured Tetra Pa2:

Amul Masti Spi2ed 'uttermil: A-* '&"r$d*ce( "he Be(" .h'r(" A*e&ch'&) ?r'&,

Amul 5ool T7andai

Po?der Mil:

15

Amul Spray #nfant Mil: (ood S"' 5 M$"her>( M' , '( Be(" /$r y$*r b!by

Amul #nstant (ull Cream Mil: Po?der A d!'ry '& y$*r h$-e

SaGar S:immed Mil: Po?der Bh'ch '( e(#ec'! y *(e/* /$r d'e" #re#!r!"'$&( $r /$r *(e by #e$# e $& $+ c! $r'e !&d h')h #r$"e'& d'e".

SaGar Tea Coffee )7itener

Amulya "airy )7itener .he R'che("5 P*re(" ?!'ry Bh'"e&er

(res7 Mil:

47

Amul (res7 Mil: .h'( '( "he -$(" hy)'e&'c -' , !0!' !b e '& "he

Amul %old Mil:

-!r,e". P!("e*r'(ed '& ("!"e7$/7"he7!r" #r$ce(('&) # !&"( !&d #$*ch7#!c,ed /$r c$&0e&'e&ce.

Amul TaaEa "ouble Toned Mil:

Amul !ite Slim and Trim Mil:

Amul (res7 Cream

Amul S7a:ti Toned Mil:

Amul Cal2iJ

46

C7eese Amul Pasteurised Pro2essed C7eese 600C Ve)e"!r'!& @hee(e -!de /r$-'cr$b'! re&&e" Amul C7eese Spreads .!("y @hee(e S#re!d( '& < )re!" / !0$*r(.

Amul Emmental C7eese .he Dre!" S+'(( @hee(e /r$- A-* 5 h!( ! (+ee"7dry / !0$*r !&d h!:e &*" !r$-!

Amul PiEEa MoEEarella C7eese P'::! chee(e...-!,e( )re!" "!("'&) #'::!(E

%ouda C7eese

42

(or Coo:inG Amul C SaGar Pure %7ee M!de /r$- /re(h cre!-. F!( "y#'c! r'ch !r$-! !&d )r!&* !r "e3"*re. A& e"h&'c #r$d*c" -!de by d!'r'e( +'"h dec!de( $/ e3#er'e&ce. Coo:inG 'utter

Amul Malai Paneer Re!dy "$ c$$, #!&eer "$ -!,e y$*r /!0$*r'"e rec'#e(E

tterly "eli2ious PiEEa

Mit7ai Mate S+ee"e&ed @$&de&(ed M' , 8

Masti "a7i

9ree / $+'&) !&d (-$$"h "e3"*re.

43

Bh'"e "$ cre!-y c$ $r +'"h ! # e!(!&" "!("e.

44

"esserts Amul #2e Creams Pre-'*- Ice @re!-!de '& 0!r'$*( 0!r'e"'e( !&d / !0$*r( +'"h dry /r*'"( !&d &*"(. Amul S7ri:7and7777 A de 'c'$*( "re!"(5 !&y"'-e.

Amul Mit7aee %ulab Jamuns P*re Kh$y! D* !b G!-*-(...be(" (er0ed #'#'&) h$".

Amul C7o2olates .he #er/ec" )'/" /$r ($-e$&e y$* $0e.

Amul !assee

Amul 'asundi

Healt7 "rin:

45

Nutramul M! "ed M' , 9$$d -!de /r$- -! " e3"r!c" h!( "he h')he(" #r$"e'& c$&"e&" !-$&) ! "he br$+& be0er!)e #$+der( ($ d '& I&d'!.

Amul S7a:ti Healt7 (ood "rin: A0!' !b e '& Ke(!r7 A -$&d !&d @h$c$ !"e / !0$*r(.

40

PR&9IL( &9 PARA# AAIRY

Para! Dairy Q Delhi 8as set up in 6514 under the %peration +lood Pro!ramme. It is no8 a 8holly o8ned company of the =ational Dairy Development /oard A=DD/-. Para! Dairy mar:ets E sells dairy products under the Para! Dairy "rand Ali:e )i(uid $il:, Dahi, Ice creams, Cheese and /utter-, Dhara ran!e of edi"le oils and the Safal ran!e of fresh fruits E ve!eta"les, fro?en ve!eta"les and fruit &uices at a national level throu!h its sales and distri"ution net8or:s for mar:etin! food items. Para! Dairy sources si!nificant part of its re(uirement of li(uid mil: from dairy cooperatives. Similarly, Para! Dairy sources fruits and ve!eta"les from farmers B !ro8ers associations. Para! Dairy also contri"utes to the cause of oilseeds !ro8er cooperatives that manufactureB pac: the Dhara ran!e of edi"le oils "y underta:in! to nationally mar:et all Dhara products. It is Para! Dairy2s constant endeavor to Aa- Ensure that mil: producers and farmers re!ularly and continually receive mar:et prices "y offerin! (uality mil:, mil: products and other food products to consumers at competitive prices and@ A"- Cphold institutional structures that empo8er mil: producers and farmers throu!h processes that are e(uita"le.

41

t Para! Dairy, processin! of mil: is controlled "y process automation 8here"y state;of;the;art microprocessor technolo!y is adopted to inte!rate and completely automate all functions of the mil: processin! areas to ensure hi!h product (ualityB relia"ility and safety. Para! Dairy is an ISB IS%;5772, IS;65777 < CCP and IS;64776 E$S certified or!ani?ation. $oreover, its .uality ssurance )a"oratory is certified "y =ational ccreditation /oard for 'estin!

and Cali"ration )a"oratory A= /)-;Department of Science and 'echnolo!y, *overnment of India. Para! Dairy mar:ets approximately 2.4 million liters of mil: daily in the mar:ets of Delhi, $um"ai, Saurashtra and <ydera"ad. Para! Dairy $il: has a mar:et share of 00> in the "randed sector in Delhi 8here it sells 2.3 million liters of mil: daily and underta:es its mar:etin! operations throu!h around 64,777 retail outlets and 445 exclusive outlets of Para! Dairy. 'he company2s derives si!nificant competitive advanta!e from its uni(ue distri"ution net8or: of "ul: vendin! "ooths, retail outlets and mo"ile units. Para! Dairy ice creams launched in the year 6555 have sho8n continuous !ro8th over the years and today "oasts of approximately 02> mar:et share in Delhi and =C#. Para! Dairy also manufactures and mar:ets a 8ide ran!e of dairy products that include /utter, Dahi, *hee, Cheese, C<' $il:, )assi E +lavored $il: and most of these products are availa"le across the country. 'he company mar:ets an array of fresh and fro?en fruit and ve!eta"le products under the "rand name S + ) throu!h a chain of 477W o8n +ruit and Fe!eta"le shops and more than 27,777 retail outlets in various parts of the country. +resh produce from

44

the producers is handled at the Company2s modern distri"ution facility in Delhi 8ith an annual capacity of 277,777 $'. n I.+ facility 8ith capacity of around 15 $' per day is also operational in Delhi. state;of;the;art fruit processin! plant of fruit handlin!

capacity of 627 $' per day, a 677 percent E%C, setup in 6550 at $um"ai supplies (uality products in the international mar:et.

45

3ith increasin! demand another state;of;the;art fruit processin! plant has "een set up at /an!alore 8ith fruit handlin! capacity of around 257 $' per day. Para! Dairy has also "een mar:etin! the Dhara ran!e of edi"le oils for the last fe8 years. 'oday it is a leadin! "rand of edi"le oils and is availa"le across the country in over 2, 77,777 outlets. 'he "rand is currently availa"le in the follo8in! variantsH #efined Fe!eta"le %il, #efined Soy"ean %il, #efined Sunflo8er %il, #efined #ice /ran %il, Dachi *hani $ustard %il and +iltered *roundnut %il. Para! Dairy has also launched extra vir!in %live %il under the Daroliva "rand. Para! Dairy has over the last 3 decades, harnessed the po8er of farmer cooperatives to deliver a ran!e of delicious products and "rin! a smile on your face. In times to come, Para! Dairy shall strive to remain one of India2s finest food companies.

List of Prod/cts Mar3eted6

<read s%reads6

Para! /utter

Cheese Range6

Para! Processed Cheese Para! Pi??a Cheese Para! Paneer

U7T Mil3 Range6

57

Para! $il: Para! +resh Cream

P/re #hee6

Para! Pure *hee

Infant Mil3 Range6

Para! spray $il: +ood

Mil3 Po0ders6

Para!ya Dairy 3hitener Sa!ar S:immed $il: Po8der

9resh Mil36

Para! 'aa?a 'oned $il: Para! Co8 $il:

56

MAR!(T )7AR( &9 AMUL )PRAY I' F A#( (Agra)

TERR#TOR#ES V'%!y N!)!r S!&%!y P !ce Kh!&d!r' S',!&dr! R!%#*r @h*&)' S!d!r B!:!r Sh!(h"r'#*r!B$d ! Gee0&' M!&d' R!+!"#!r! Be !&)!&% .!%)!&% L$h!-!&d' R!%!-!&d' TOTAL

AM ! SPRA$ 6.40 =.80 0.=0 =.40 6.40 6.00 <.70 4.00 <.00 6.=0 0.60 6;.;= 0.60 0.;0 <7.<=

PARA% "A#R$ !ECTO%#N <.66 60.<6 4.00 ;.6= 4.;0 6.40 =.86 6.00 8.66 =.40 0.40 6<.;= 6.=0 <.80 6=.68

52

SA!ES O( ' TTER '$ TERR#TOR$ *5%0 (A)r!)

TERR#TOR#ES 1iFay NaGar S!&%!y P !ce Kh!&d!r' S',!&dr! R!%#*r @h*&)' S!d!r B!:!r Sh!(h"r'#*r!B$d ! Gee0&' M!&d' R!+!"#!r! Be !&)!&% .!%)!&% L$h!-!&d' TOTA!

AM ! ' TTER 6;9 9= 7<4 <;; 690.; 678 ;00 470 <;0 40.; 64 =;9 8 6>B,

PARA% "A#R$ ' TTER 0 <0 7= 0 0 0 4= = 600 0 60 0 0 6,A

MAR5ET SHARE O( AM ! ' TTER #N DA%E

TERR#TOR#ES

AM ! ' TTER

PARA% ' TTER

"A#R$

53

1iFay NaGar S!&%!y P !ce Kh!&d!r' S',!&dr! R!%#*r @h*&)' S!d!r B!:!r Sh!(h"r'#*r!B$d ! Gee0&' M!&d' R!+!"#!r! Be !&)!&% .!%)!&% L$h!-!&d' TOTA!

<.8< =.=6 67.76 8.49 4.;6 66.<= 6=.0< 66.<6 8.<6 0.96 0.<< 6.=< 0.69 -+<B>

0 .7= 6.80 0 0 0 6.06 0.0; =.46 0 6.4< 0 0 =<@+

SA!ES O( "A#R$ )H#TE '$ TERR#TOR$ *5%0

.ERRI.ORIES V'%!y N!)!r S!&%!y P !ce Kh!&d!r' S',!&dr! R!%#*r @h*&)' S!d!r B!:!r Sh!(h"r'#*r!B$d ! Gee0&' M!&d' R!+!"#!r! Be !&)!&% .!%)!&% L$h!-!&d'

AM !$A =7 6 ;6 46 0 =4 ; <7 =8 4< <60 = 60

ParaG "airy 0 ; = 8 0 = < < 0 0 <4 0 0

OTHERS 9 6 =; =8 66 67 4 4 0 0 0 0 0

54

TOTA!

B>-

B=

/,-

MAR5ET SHARE O( "A#R$ )H#TE #N D A%E (A)r!)

.ERRI.ORIES V'%!y N!)!r S!&%!y P !ce Kh!&d!r' S',!&dr! R!%#*r @h*&)' S!d!r B!:!r Sh!(h"r'#*r!B$d ! Gee0&' M!&d' R!+!"#!r! Be !&)!&% .!%)!&% L$h!-!&d' TOTA!

AM !$A =.0= 0.4; <.7= <.<4 0 6.78 0.<7 =.8< =.68 <.== =<.=0 0.6; 0.7; @@<,/

ParaG "airy 0 0.<7 0.6; 0.;8 0 0.<7 0.== 0.== 0 0 =.;4 0 0 @<@B

OTHERS 0.76 0.4; 6.96 =.68 6.69 6.=7 0.<8 0.<8 0 0 0 0 0 ><B=

Consumer Per2eption to?ards Amul & ParaG "airy Produ2ts

55

E9port Potential India has the potential to "ecome one of the leadin! players in mil: and mil: product exports. )ocation advanta!eH India is located amidst ma&or mil: deficit countries in sia and frica. $a&or importers of mil: and mil: products are /an!ladesh, China,

<on! Don!, Sin!apore, 'hailand, $alaysia, Philippines, Gapan, C E, %man and other !ulf countries, all located close to India.

Lo0 Cost of Prod/ctionH $il: production is scale insensitive and la"our intensive. Due to lo8 la"our cost, cost of production of mil: is si!nificantly lo8er in India. Concerns in export competitiveness are ;/ality6 Si!nificant investment has to "e made in mil: procurement, e(uipments, chillin! and refri!eration facilities. lso, trainin! has

to "e imparted to improve the (uality to "rin! it up to international standards.

Prod/ctivity6 'o have an exporta"le surplus in the lon!;term and also to maintain cost competitiveness, it is imperative to improve productivity of Indian cattle. 'here is a vast mar:et for the export of traditional mil: products such as !hee, paneer, shri:hand, ras!olas and other ethnic s8eets to the lar!e num"er of Indians scattered all over the 8orld

50

C7apter 6 Resear27 met7odoloGy

51

O'JECT#1E O( THE ST "$

mul E Para! Dairy is the mar:et leader of dairy "ased food products in !ra City. mul is the ma&or competitors in the mar:et a!ainst Para! Dairy. It is important to !et an idea re!ardin! mul2s E Para! Dairy position in !ra City. It 8ould not help

mul to capitali?e on existin! potential "ut also to formulate strate!ies and to fill the loo: holes and !aps to fi!ht the competitive situation 'he %"&ective also containsH 'o determine the mar:et share of mul E Para! dairy "ased product. 'o determine the consumer preferences of mul E Para! dairy product 8ith the help of some parameters ;(uality, taste, price, pac:in! style. 'o compare the dairy product of parameters mul and Para! dairy on the "asis of a"ove

54

)I#'I9ICA'C( &9 T7( T&PIC

Create the a8areness in the mar:et. /uildin! confidence in retailers as 8ell as in the customer. 'o Cnderstand the terminolo!ies used in mar:et "y retailers. Develop the usefulness in enhancin! the usa"ility of the product. 'o :no8 different sellin! s:ills at various situation of mar:et. 'o learn different strate!ies 8hich are used "y retailers in mar:et to convince the customers.

55

R()(ARC7 M(T7&A&L&#Y
$ethodolo!y for a study li:e this is the most important part .'he method of study operate "y me is totally is to increase K to !ather the more information re!ardin! this pro&ect. 'he ma&or emphasis in such studies is on the discovery of the ideas fruitful relevant information. s such the research desi!n appropriate for such studies must "e flexi"le enou!h to provide opportunity for considerin! different aspect of a pro"lem under study. I collected the information re!ardin! this pro&ect throu!h Q I. II. P#I$ #R D ' SEC%=D #R D ' Primary data is collected "y the customers and Para! retailers. Secondary data is collected "y retailer E personal intervie8. Since our research is descriptive type, so research desi!n is also descriptive.

677

)am%le design6 Samplin! is a process of o"tainin! information a"out an entire population "y examinin! only a part of it.

s depicted "elo8, I have ta:en 64 retailers and 37 customers as my sample si?e

Sample siEe3 RE.AILER H @US.OMERH <; 660

Analyti2al tools6 'his study is "ased on collectin! data "y usin! 8ell;
connected (uestionnaire for consumer from various demo!raphic se!ments and also data is collected usin! secondary sources. fter collectin! data it is arran!ed in the

form of ta"les from analysis and interpretation. *raphs and percenta!e analysis are the main tools used for the purpose of interpretation.

676

Areas 0here I made s/rvey

Fi&ay =a!ar San&ay Place Dhandari Si:andra #a&pur Chun!i Sadar /a?ar Shastripuram /odla Geevni $andi #a8at Para /elan *an& 'a& *an& )oha $andi

672

LIMITATI&') &9 T7( )TUAY

'his survey althou!h carried out 8ith fullest possi"le efforts and devotion, the limitation of the time, resources availa"le and limited area chose may lead to limited representation of the universe. 'he ma&or limitations from 8hich the study suffers are as follo8s. 'ime ConstraintH; 'ime factor has "een a very "i! limitation in the researchBsurvey li:e this. 'he retailers have limited time so they sometimes refuse to ans8er the (uestionnaire, also me as a surveyor has less time to conduct the survey. So the si?e of the sample 8as restricted to !ra. /iasness in InformationH; It 8as felt that retailers did not come up 8ith true responses, in several cases the retailers ans8ered the (uestions 8ith the help of other mem"ers and it 8as mostly in case of less educated persons. +inancial ConstraintH; 'he financial aspect, 8hich includes the travelin! cost, cost of administratin! (uestionnaire and collection of data throu!h other resources 8as also costly. Constraint re!ardin! the use of techni(ueH;

673

'he deeper statistical techni(ues such as analysis usin! variance, multiple re!ressions etc., could not "e adopted due to the constraint of time and efforts. So, simple statistical techni(ues 8ere used to analy?e the data.

C7apter @ "ata #nterpretation & %rap7i2al analysis

674

ANA!$S#S AN" #NTERPRETAT#ON O( "ATA

I.

Bh'ch c$-#!&y>( d!'ry #r$d*c" y$* *(eI

!arag, 5=D 0ther, 7<D

Amul, ==D

#nterpretation3
;; #erce&" c$&(*-er( *(e A-* J <0 #er ce&" *(ed $"her( !&d !(" 6; #erce&" c$&(*-er *(ed P!r!) d!'ry #r$d*c"(.

675

II.

Bh'ch $/ "he #r$d*c" -$(" y y$* )$ /$rI

50% 47% 40% 3!%

=<D ?=D ?<D 7=D 7<D 6=D 6<D 5=D 5<D =D <D $hee 32%

48%

38%

28% 25% 20% 2% 22%

Amul !arag 0thers

Milk

(utter

/heese

#nterpretation3
A-* Dhee *(ed c$&(*-er <=C5 P!r!) Dhee *(ed =0C !&d $"her( 48C. M' , *(ed by c$&(*-er =8C A-* 5 =;C P!r!) !&d $"her( 47C. B*""er *(ed by c$&(*-er <8C A-* 5 6=C P!r!) !&d 40C $"her(.

670

III.

Are y$* (!"'(/'ed +'"h y$*r #r$d*c"I

)o, 6<D

Hes, ;<D

#nterpretation3
80C @$&(*-er (!"'(/'ed +'"h "he'r #r$d*c"( !&d =0 C c$&(*-er &$" (!"'(/'ed "he'r #r$d*c"(.

671

IV.

Bhy !re y$* '&c '&ed "$ y$*r #r$d*c"I

80% !8% !0% 70%

;<D B<D A<D =<D ?<D 7<D 6<D 5<D <D Iuality (rand !rice 40% 32% 30%

Amul !arag 20%

aste

#nterpretation3
A-* A*! '"y '&c '&ed "$ #r$d*c"( by c$&(*-er 60C5 P!r!) (!"'(/'ed 40C. Br!&d #re/erred by c$&(*-er e.). 68C A-* !&d <=C P!r!). Pr'ce (!"'(/!c"'$& +'"h c$&(*-er 70C A-* !&d <0C P!r!).

674

V.
><D ;<D B<D A<D =<D ?<D 7<D 6<D 5<D <D 20%

?$ y$* ',e !&y ch!&)e '& #r$d*c"I

85% 80% 75% 75% 70% !0% 55% Amul Hes 45% 40% 30% 25% 25% 5% 40% Amul )o !arag Hes !arag )o !0%

aste

!rice

!acking Style

Iuality

#nterpretation3
ll consumers satisfied 8ith their product and some consumer chan!e product 'aste "y consumer mul 47> and no27> and Para! 8ith satisfied 45> and not

675

satisfied 45>. Price "y consumer

mul 37> and no17> and Para! 8ith satisfied 47> mul 25> and no15> and Para! 8ith mul 65> and no 45> and Para!

and not satisfied 07>. Pac:in! "y consumer

satisfied 15> and not satisfied 25>. .uality 8ise 8ith satisfied 07> and not satisfied 47>.

RETA#!ER ANA!$S#S
I. I& d!'ry #r$d*c"(5 +h'ch c$-#!&y #r$d*c" de-!&d '( h')herI

0ther, 7<D

!arag, 6<D

Amul, =<D

667

#nterpretation3
;0#er ce&" c$&(*-er( de-!&d /$r A-* d!'ry #r$d*c"( J <0 #er ce&" c$&(*-er #re/erred $"her( br!&ded #r$d*c"( !&d !(" =0 #erce&" c$&(*-er #re/erred P!r!) d!'ry #r$d*c"(.

II.

Re!($&KKKKKKKKKKKKKKKKK

20% !acking style 80% 30% (rand 70% !arag 32% aste !8% 40% !rice !0% 5<D 6<D 7<D ?<D =<D A<D B<D ;<D Amul

<D

666

#nterpretation3
mul dairy products Pac:in! Style 8ise "y consumer 47>, Para! preferred 27>. /rand preferred "y consumer e.!. 17> consumer 04> Para!. mul and 37> Para!. 'aste preferred "y mul and 47>

mul and 32> Para!. Price 8ise "y consumer 07>

III.

Bh'ch #r$d*c" $/

A-* '( #re/erred by c*("$-er(I

5<<D ><D ;<D B<D A<D =<D ?<D 7<D 6<D 5<D <D $hee Milk (utter /heese 32% 28% 38% 3!% 20% 25% 2% 22% 0thers !arag Amul 48% 47% 50% 40%

662

#nterpretation3
ll consumers Preferred 8ith their product and some consumer chan!e product 'aste "y consumer mul 47> and no27> and Para! 8ith Preferred 45> and not mul 37> and no17> and Para! 8ith Preferred mul 25> and no15> and Para! mul 65> and no 45> and

Preferred 45>. Price "y consumer

47> and not Preferred 07>. Pac:in! "y consumer

8ith Preferred 15> and not Preferred 25>. .uality 8ise Para! 8ith Preferred 07> and not Preferred 47>.

663

C7apter B 9'&d'&)(5 (*))e("'$&( J c$&c *('$&

(#N"#N%S

664

6. I'he company caters to the Indian palate, 8hich is its primary driver of successI. In li!ht of this statement, critically examine the mar:etin! strate!ies adopted "y mul E Para! Dairy to capture a si?ea"le mar:et share of the

or!ani?ed Dairy "ased food Product in India.

2. In the modern competitive scenario, promotion is a :ey element in the mar:etin! mix of a company. Critically analy?e the promotion strate!ies adopted "y mul India Pvt. )td. 3hat other efforts must the company ta:e to

effectively promote its productsT

3. Dairy "ased Products contri"ute a ma&or share of the revenues of

mul. *iven

the competitive scenario in the Dairy Products in India, 8here competitors such as Para! Dairy are introducin! several innovative products, 8hat measures must mul ta:e to remain competitiveT Explain in detail.

665

RECOMMENDATIONS
6. Company should have feed "ac: from mar:et and consumer a"out the Dairy "ased Products. 2. 'he more +lavors of "ecome in the $ar:et. 3. 4. 5. 'he company provided some small schemes for retailer also. 'he company !ives some !ifts for customer also. 'he company should associate itself 8ith some !ames or tournaments li:e foot"all, cric:et and so on. 0. Company should provide sponsored seminar mar:et intelli!ence; Company should maintain the healthy relationship 8ith mar:et distri"ution channel i.e. 8hole seller, distri"utor, retailers 8hich 8ill "oost the "rand ima!e. 1. Company should chec: the mar:et real position help the trainees and other survey or!ani?ations. 4. channels@ i.e. X 'railer in cinema halls X <oardin!s X Spencer any education scholarship or !ames. Company should launch its 8e"site and use ne8 advertisin! mul E Para! Dairy Products should

660

C&'CLU)I&'
I have studied and analy?ed the Dairy "ased food Product $ar:et of Amul & Parag Dairy Products at Agra on different aspects of the mar:ets, outlets, distri"ution E consumers. 'he survey 8as conducted in various areas of !ra city 8ith !reat enthusiasm. 'his pro&ect report Concludes that Amul E Para! Dairy are easily availa"le in various parts of !ra. The Parag distribution channel of the Amul is much strong the most important thin!, 8hich I feel to improve is Ythe availa"ility to retailers E consumersU. 'he retailers E consumers "oth promotes either Amul or Para! Dairy of it2s "rands for could "e 8ith re!ard to order processin!, 8arehousin!, inventory mana!ement E transportation@ "esides that shop coverin!, exit from the mar:et "y the salesmen !lo8 shine "oard, schemes, incentives, pri?es, !ifts, discount, returnin! of defective !oods, proper supply should "e improved. $y &o" 8as to ma:e mar:etin! mana!ers a8are of all the pro"lems so that a proper course of action is re(uired to "e underta:en.

661

ANNEK RE

664

; EST#ONNA#RE

@US.OMERH NAME3

A??RESSH #NCOME3

I.

3hich company9s dairy product you use "- mul

a- Para! c- %thers

II.

3hich of the product mostly you !o forT "- mil: d- cheese

a- *hee c- /utter

III. a- Res

re you satisfied 8ith your productT "- =o

#E S%=Z

665

IF.

3hy are you inclined to your productT "d- taste "rand

a- .uality c- Price

F. a- Res

Do you li:e any chan!e in product "- no

FI.

I= 3<IC< P # $E'E#H ZZZZZZZZZZZ "- price d- (uality

a- 'aste c- Pac:in! style

R(TAIL(R6 'AM(6

AAAR())6 I'C&M(6

FII.

In dairy products, 8hich company product demand is hi!herT "- Para! dairy c- others

a- mul

FIII. #easonZZZZZZZZZZZZZZZZZ a- Price c- /rand "- taste d- pac:in! style

627

I[. 3hich product of a- *hee c- Cheese e- ny other

mul is preferred "y customersT "- mil:

d- "utter

#E S%=Z a- Price c- .uality "- taste d- pac:in! style

[. 3hich product of Para! dairy is preferred least "y customersT a- *hee c- Cheese e- ny other "- mil: d- "utter

[I. 3hich product of amul is preferred least "y customersT a- *hee c- Cheese eny other "- mil: d- "utter

[II. 3hich of Para! dairy is preferred least "y customerT a- *hee c- Cheese "- mil: d- "utter 626

e- ny other

[III. #an: the preferences of consumers for mul K Para! dairy.

Amul %7ee C7eese "a7i 'utter Mil: Ot7ers

ParaG dairy

Ot7ers

622

COMPARAT#1E ST "$ O( AM ! AN" PARA% "A#R$ PRO" CTS

Consumer Preferen2es /< Pri2e +< ;uality 6< Taste @< Pa2:inG Style %7ee

ParaG "airy Mil: 'utter C7eese %7ee

Amul Mil: 'utter C7e ese

F')h F')h

F')h F')h

F')h F')h

F')h F')h Be""er Be""er

L$+ D$$d D$$d Be("

L$+

L$+

L$+ D$$d D$$d Be("

D$$d D$$d D$$d D$$d Be(" Be("

Be""er Be""er Be""er Be""er Be""er Be""er

'#'!#O%RAPH$

$ar:et #esearch #esearch $ethodolo!y

; )uc: and #u"in ; C.#. Dothari 623

Product $ana!ement $ar:etin! $ana!ement 888.!oo!le.com 888.amul.com 888.Para!dairy.com

; #amanu& $a&umdar ; #.). Fashney E S.). *upta

624