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SHRI RAMSWAROOP MEMORIAL

UNIVERSITY
LUCKNOW-DEVA ROAD, UTTAR PRADESH

SUMMER TRAINING REPORT


ON

COMPARATIVE ANALYSIS OF AMUL & PARAG


SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE AWARD OF DEGREE
OF
BACHELOR OF BUSINESS ADMINISTRATION

TO
SHRI RAMSWAROOP MEMORIAL UNVERSITY
2016-17

Under Guidance of:


Submitted by:
Mr. Abhishek Kulshreshta
Mohd Khurshid
Institute of Management, Commerce & Economics
Roll No.201410702110038
SRMU, Lucknow.
1

ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to my


guide Mr. Abhishek Kulshreshta for his exemplary guidance, monitoring and
constant encouragement throughout the course of this project. The blessings, help
and guidance given by him time to time shall carry me a long way in the journey of
life on which I am about to embark.
I also take this opportunity to express a deep sense of gratitude to Ram Kumar,
Manger- Distribution, for his cordial support, valuable information and guidance,
which helped me in completing this task through various stages.
I am also obliged to staff members of Amul for the valuable information provided
by them in their respective fields. I am grateful for their cooperation during the
period of my summer training.
Finally, I am thankful to almighty, my parents, brothers, sisters and friends for their
consistent encouragement without which this project would have not been
completed.

Mohd Khurshid
201410702110038

CERTIFICATE OF ORIGINALITY
2

(To be filled in by the student in his / her handwriting)


I_____________________________________ Roll No __________________of, a fulltime bonafide
student of third year of Bachelor of Business Administration (BBA) of Shri Ramswaroop Memorial
University.

hereby

certify

that

for

this

project

at_________________________________________________ the

work

carried

report

out

submitted

by

me

in partial

fulfillment of the requirements of the programme is an original work of mine carried out under the
guidance

of

the

industry

mentor

___________________________________________________________________and
facultymentor_______________________________________________________and is not based or
reproduced from any existing work of any other person or on any earlier work undertaken at any other
time or for any other purpose, and has not been submitted anywhere else at any time to the best of my
knowledge.

(Mohd Khurshid)
Date:

INSTITUTE OF MANAGEMENT, COMMERCE & ECONOMICS


SRMU

CERTIFICATE
This is to certify that the project entitled ..

Submitted by . [Univ. Roll No. ...] and


in the partial fulfillment of the requirement for the award of the DEGREE OF BACHELOR OF
BUSINESS ADMINISTRATION of SHRI RAMSWAROOP MEMORIAL UNIVERSITY to
the best of my knowledge it is a record of students own work carried under our supervision and
guidance. The project report embodies result of original work and the study carried out by the
student and the contents do not form the basis for the award of any other degree to the candidate
or to anybody else.

(Mr. Abhishek Kulshreshta)

INSTITUTE OF MANAGEMENT, COMMERCE & ECONOMICS


SRMU

DECLARATION
4

I hereby declare that the project entitled ...

.. submitted by me in the partial fulfillment of the requirements for the award of the degree
of bachelor of Business Administration of Shri Ramswaroop Memorial University, is a record of
my

own

work

carried

under

the

supervision

and

guidance

of

..
To the best of my knowledge this project has not been submitted to SHRI RAMSWAROOP
MEMORIAL UNIVERSITY or any other University or Institute for the award of any degree.

Mohd Khurshid
University Roll. No 201410702110038

TABLE OF CONTENTS
Preface
CHAPTER I
Introduction
Objective of the study
Scope and limitations of study
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Methodology: this would contain the following things:


1. Sources of data
2. Sample sizes, if any
3. Methods of data collection
4. Instrument used
5. Tools and techniques of analysis

CHAPTER II
Company Profile

CHAPTER III
Data Analysis & Findings

CHAPTER IV
Suggestion/ Recommendation

CHAPTER V
Conclusion
Bibliography
Appendix

PREFACE
I consider myself very fortunate to get the opportunity to conduct the training
approval and project assignment by MR. ABHISHEK KULSHRESHTA. I got
opportunity to get a practical exposure into actual environment and it provided me
the golden opportunity to make my theoretical concept of Recruitment and
selection process in a more clear way.
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I am thankful to all the officials at AMUL & PARAG for their cooperation
during my training for providing me necessary information without which this
project report would not have been completed.
I have gone through various Sites, Research Books, Magazines and
Newspapers to get the accurate information for analysis and tried to find the best
conclusion.

Mohd Khurshid
University Roll. No 201410702110038

Executive Summary
Title of the project:
Comparative Analysis of AMUL & PARAG

Objectives:

Amul & Parag Dairy is the market leader of dairy based food products
in lucknow City. Amul is the major competitors in the market against Parag
Dairy. It is important to get an idea regarding Amuls & Parag Dairy position
in lucknow City. It would not help Amul to capitalize on existing potential
but also to formulate strategies and to fill the look holes and gaps to fight the
competitive situation
The Objective also contains:
To determine the market share of Amul & Parag dairy based product.
To determine the consumer preferences of Amul & Parag dairy product with
the help of some parameters -quality, taste, price, packing style.
To compare the dairy product of Amul and Parag dairy on the basis of above
parameters

SIGNIFICANCE OF THE TOPIC:


Create the awareness in the market.
Building confidence in retailers as well as in the customer.
To Understand the terminologies used in market by retailers.
Develop the usefulness in enhancing the usability of the product.
To know different selling skills at various situation of market.

To learn different strategies which are used by retailers in market to


convince the customers.

Research Methodology:
Primary data collected by personally visiting these milk consumer. Eg: AMUL &
PARAG

SAMPLE SIZE ;

50

Sample universe ;

Lucknow

Sample design ;

probability sample design

Data Collection:
Primary data collected through direct interaction with customer.
Sample size 50 people.
Secondary database from different magazines.
First and foremost, accumulating information from newspapers ,
Journals, Magazines, and company webside.
Thirdly, analyzing the data collected. Comparing the AMUL products
offered by PARAG products .
Critical analysis of consumer perception; their choice and preferences.

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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 AMUL 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 AMUL the insight and focus to deal with the current economic
environment. Drawing from its inner strength and beliefs, AMUL 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 AMUL to continue on its growth trajectory in years to
come.

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Chapter 1

12

13

INTROD
UCTION TO THE INDIAN DAIRY
INDUSTRY
The world's biggest dairy producing country is growing fast and looking to
become an export powerhouse despite major quality problems...
A Note to our Readers: the following information on India's dairy sector is
reproduced from

India Infoline.com.

India is the world's largest milk producing

country and is growing fast, with an eye toward becoming a major dairy exporter.
This article is helpful reading for anyone interested better understanding.
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
182gm in 1992 and 203 gm in 1998-99.This is expected to increase to 212gms for
2008. However a large part of the population cannot afford milk. At this per capita
consumption it is below the world average of 285 gm and even less than 220 gm
recommended by the Nutritional 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, west 174 gm, south 148 gm and in the
east only 93 gm per person per day. This disparity is due to concentration of milk
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production in some pockets and high cost of transportation. Also the output of milk
in cereal growing areas is much higher than
In India about 46 per cent of the total milk produced is consumed in liquid
form and 47 per cent is converted into traditional products like cottage butter, ghee,
paneer, khoya, curd, malai, etc. Only 7 per cent of the milk goes into the
production of western products like milk powders, processed butter and processed
cheese. The remaining 54% is utilized for conversion to milk products. Among the
milk products manufactured by the organized sector some of the prominent ones
are ghee, butter, cheese, ice creams, milk powders, malted milk food, condensed
milk infants foods etc. Of these ghee alone accounts for 85%.
While for cooperatives of the total milk procured 60% is consumed in fluid form
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 availability of packaged milk.
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
unorganized 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.
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Market Size and Growth


Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT
valued at Rs470bn. The market is currently growing at round 4% pa in volume
terms. The milk surplus states in India are Uttar Pradesh, Punjab, Haryana,
Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The
manufacturing of milk products is concentrated in these milk surplus States. The
top 6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu
and Gujarat together account for 58% of national production.
Milk production grew by a mere 1% pa between 1947 and 1970. Since the
early 70's, under Operation Flood, production growth increased significantly
averaging over 5% pa.
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.
Major Players
The packaged milk segment is dominated by the dairy cooperatives. Gujarat Cooperative Milk Marketing Federation (GCMMF) is the largest player. All other
local dairy cooperatives have their local brands (For e.g. Gokul, Warana in
Maharashtra, Saras in Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh, Aavin
in Tamil Nadu, etc). Other private players include J K Dairy, Heritage Foods,
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Indiana Dairy, Dairy Specialties, etc. Amrut Industries, once a leading player in the
sector has turned bankrupt and is facing liquidation.
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 80's, plastic pouches replaced the bottles. Plastic pouches
made transportation and storage very convenient, besides reducing costs. Milk
packed in plastic pouches/bottles have a shelf life of just 1-2 days, that too only if
refrigerated. In 1996, Tetra Packs were introduced in India. Tetra Packs are aseptic
laminate packs made of aluminum, paper, board and plastic. Milk stored in tetra
packs and treated under Ultra High Temperature (UHT) technique can be stored for
four months without refrigeration. Most of the dairy co-operatives in Andhra
Pradesh, Tamil Nadu, Punjab and Rajasthan sell milk in tetra packs. However tetra
packed milk is costlier by Rs5-7 compared to plastic pouches. In 2008-00 Nestle
launched its UHT milk. Amul too relaunched its Amul Taaza brand of UHT milk.
The UHT milk market is expected to grow at a rate of more than 10-12% in
coming years.
Regulatory Framework
The dairy industry was de-licensed in 1991 with a view to encourage private
investment and flow of capital and new technology in the segment. Although delicensing attracted a large number of players, concerns on issues like excess
capacity, sale of contaminated/ substandard quality of milk etc induced the
Government to promulgate the MMPO (Milk and Milk Products Order) in 2008.
Milk and Milk Products Order (MMPO) regulates milk and milk products
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production in the country. The order requires no permission for units handling less
than 10,000 litres of liquid milk per day or milk solids up to 500 TPA. MMPO
prescribes State registration to plants producing between 10,000 to 75,000 litres of
milk per day or manufacturing milk products containing between 500 to 3,750
tones of milk solids per year. Plants producing over 75,000 litres per day or more
than 3,750 tones per year of milk solids have to be registered with the Central
Government. The stringent regulations, government controls and licensing
requirements for new capacities have restricted large Indian and MNC players
from making significant investments in this product category. Most of the private
sector players have restricted themselves to manufacture of value added milk
products like baby food, dairy whiteners, condensed milk etc.
Subsequent to de-canalization, exports of some milk based products are
freely allowed provided these units comply with the compulsory inspection
requirements of concerned agencies like: National Dairy Development Board,
Export Inspection Council etc. Bureau of Indian standards has prescribed the
necessary standards for almost all milk-based products, which are to be adhered to
by the industry.
Proposal to Amend the MMPO
A proposal to raise the exemption limit for compulsory registration of dairy
plants, from the present 10,000 litres a day to 20,000 litres, is being considered by
the Animal Husbandry Department. The 75,000-litre limit is likely to be raised
either to 100,000 litres or 125,000 litres in the amended order. The new order
would also do away with the provision for re-registration.

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Penetration of milk products


Western table spreads such as butter, margarine and jams are not very
popular in India. All India penetration of butter/ margarine is only 4%. This is also
largely represented by urban areas, where penetration is higher at 9%. In rural
areas, butter/ margarine have penetrated in 2.1% of households only. The use of
these products in the large metros is higher, with penetration at 15%.
Penetration of cheese is almost nil in rural areas and negligible in the urban
areas. Per capita consumption even among the cheese-consuming households is a
poor 2.4kg pa as compared to over 20kg in USA. The lower penetration is due to
peculiar food habits, relatively expensive products and also non-availability in
many parts of the country. Butter, margarine and cheese products are mainly
manufactured by organized sector.
Similarly, penetration of ghee is highest in medium sized towns at 37.2%
compared to 31.7% in all urban areas and 21.3% in all rural areas. The all India
penetration of ghee is 24.1%. In relative terms, penetration of ghee is significantly
higher in North and West, which are milk surplus regions. North accounts for 57%
of ghee consumption and West for 23%, South & East together account for the
balance 20%. A large part of ghee is made at home and by small/ cottage industry
from milk. The relative share of branded products in this category is very low at
around 1-2%.
Milk powder and condensed milk have not been able to garner any
significant consumer acceptance in India as indicated by a very low 4.7%
penetration. The penetration is higher at 8.1% in urban areas and lower at 3.5% in
rural areas. Within urban areas, it is relatively higher in medium sized towns at
8.5% compared to 7.7% in large metros.
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Export Potential
India has the potential to become one of the leading players in milk and milk
product exports. Location advantage: India is located amidst major milk deficit
countries in Asia and Africa. Major importers of milk and milk products are
Bangladesh, China, Hong Kong, Singapore, Thailand, Malaysia, Philippines,
Japan, UAE, Oman and other gulf countries, all located close to India.
The major export products: - The products of Amul is being exported in the 40
countries of the world . Many of the products are now available in the U.S.A , Gulf
countries and Singapore. Amul products are being exported to the Singapore since
last three decades . undoubtedly , Amul is the preferred taste of Indians in the Gulf
countries.
Low Cost of Production:
Milk production is scale insensitive and labour intensive. Due to low labour cost,
cost of production of milk is significantly lower in India.
Concerns in export competitiveness are Quality: Significant investment has
to be made in milk procurement, equipments, 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.

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There is a vast market for the export of traditional milk products such as
ghee, paneer, shrikhand, rasagulas and other ethnic sweets to the large number of
Indians scattered all over the world.
Indian (traditional) Milk Products
There are a large variety of traditional Indian milk products such as
Makkhan - unsalted butter. Ghee - butter oil prepared by heat clarification, for
longer shelf life. Kheer - a sweet mix of boiled milk, sugar and rice. Basundi - milk
and sugar boiled down till it thickens. Rabri - sweetened cream. Dahi - a type of
curd. Lassi - curd mixed with water and sugar/ salt. Channa/Paneer - milk mixed
with lactic acid to coagulate. Khoa - evaporated milk, used as a base to produce
sweet meats. The market for indigenous based milk food products is difficult to
estimate as most of these products are manufactured at home or in small cottage
industries catering to local areas.
Consumers while purchasing dairy products look for freshness, quality, taste and
texture, variety and convenience. Products like Dahi and sweets like Kheer,
Basundi, Rabri are perishable products with a shelf life of less than a day. These
products are therefore manufactured and sold by local milk and sweet shops. There
are several such small shops within the vicinity of residential areas. Consumer
loyalty is built by consistent quality, taste and freshness. There are several
sweetmeat shops, which have built a strong brand franchise, and have several
branches located in various parts of a city.

Branding Of Traditional Milk Products


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Among the traditional milk products, ghee is the only product, which is currently
marketed, in branded form. main ghee brands are Sagar, Milkman (Britannia),
Amul (GCMMF), Aarey (Mafco Ltd), Vijaya (AP Dairy Development Cooperative
Federation), Verka ( Punjab Dairy Cooperative), Everyday (Nestle) and Farm Fresh
(Wockhardt).
With increasing urbanization and changing consumer preferences, there is
possibility of large scale manufacture of indigenous milk products also. The
equipments in milk manufacturing have versatility and can be adapted for several
products. For instance, equipments used to manufacture yogurt also can be adapted
for large scale production of Indian curd products (dahi and lassi). Significant
research work has been done on dairy equipments under the aegis of NDDB.
Mafco Limited sells Lassi under the Aarey brand and flavored milk under
the Energee franchise (in the Western region, mainly in Mumbai). Britannia has
launched flavored milk in various flavors in tetra packs.
GCMMF has also made a beginning in branding of other traditional milk
products with the launch of packaged Paneer under the Amul brand. It has also
created a new umbrella brand "Amul Mithaee", for a range of ethnic Indian sweets
that are proposed to be launched the first new product Amul Mithaee Gulabjamun
has already been launched in major Indian markets.

Demand for various types of cheese in the Indian market


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Type of cheese
Processed
Cheese spread
Mozzarella
Flavored/Spiced
Others

% of total consumption
50
30
10
5
5

The major players are Amul, Britannia, and Dabon International dominating the
market. Other major brands were Vijaya, Verka and Nandini (all brands of various
regional dairy cooperatives) and Vadilal. The heavy advertising and promotions
being undertaken by these new entrants is expected to lead to strong 20% growth
in the segment. Amul has also become more aggressive with launch of new
variants such as Mozzarella cheese (used in Pizza), cheese powder, etc.

Capacity expansion in Cheese


Company
Dynamics

Brands
Manufactures

Group
GCMMF
APDDCF

Britannia
Amul
Vijaya

State
forMaharashtra

Capacity
35 tons per day

Gujarat
20 tons per day
Andhra Pradesh 10 tons per day

Milk Powder
Milk powder is mainly of 2 types
_ Whole milk powder
_ Skimmed milk powder

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Whole milk powder contains fat, as distinguished from skimmed milk powder,
which is produced by removing fat from milk solids. Skimmed milk powder is
preferred by diet conscious consumers. Dairy whiteners contain more fat than
skimmed milk powder but less compared to whole milk powder. Dairy whiteners
are popular milk substitute for making tea, coffee etc.
The penetration of these products in milk abundant regions is driven by
convenience and non perishable nature (longer shelf life) of the product.
Dairy sector of advanced nations export milk products with a subsidy of $ 1000 per
tones with a level of subsidy more than 60 % of the price of milk powder produced
in India, this has led to large scale imports of milk powder both in whole and
skimmed form. To protect the domestic sector from these subsidized imports the
central government has recently increased the basic import duty on all imports of
milk powder more than 10000 MT to 60% from 15%. For imports less than 10000
MT the basic customs duty has been left unchanged at 15%.
In 2008 India is estimated to have imported about 18,000 tonnes of milk powder
against a total estimated production of 2.40 Lakh MTs. In 2007-08 India is
expected to export 10000 MT of skimmed milk powder due to rise in international
prices to $2300 per MT from last year's levels of $1400 per MT. These
expectations are based on the strong demand from Russia, East Asia and Latin
America, and also on tightening of supply in EU, which accounts for 75% of the
annual global Skimmed Milk Powder exports.
Milk Collection Cycle
The success of each and every dairy industry is the getting the milk from the
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farmers and making that milk in use as soon as possible before that milk get
spoiled because the milk is the perishable product. For the smooth running the
business of dairy industry the industry must concentrate on the milk collection
cycle. Amul dairy is very conscious about the milk collection cycle because the
base of the success of the Amul is milk collection cycle.

Production capacity of Amul

Butter
Powder plant
Powder plant
Flavour milk

50 to 60 Tones
70 tones
60 tones
40000 bottles

Major Players
Milk Powder/Dairy Whiteners: Major skimmed milk brands are Sagar (GCMMF)
and Nandini (Karnataka Milk Federation), Amul Full Cream milk powder is a
whole milk powder brand.
Leading brands in the dairy whitener segment are Nestls Everyday, GCMMF's
Amulya, Dalmia Industry's Sapan, Kwality Dairy India's KreamKountry,
Wockhardt's Farm Fresh and Britannia's Milkman Dairy Whitener.
Condensed Milk
The condensed milk market has grown from 9000 MT in 2007 to 11000 MT in
2008. Condensed milk is a popular ingredient used in home-made sweets and
cakes. Nestls Milkmaid is the leading brand with more than 55% market share.
The only other competitor is GCMMF's Amul.

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Infant Foods
Nestle is the market leader in the segment. This is a category where brand loyalties
are very strong as mothers want the best for their babies. Heinz is the only other
significant competitor to Nestle in this segment. Nestls Cerelac and Nestum
together have around 80% market share and Heinz's Farex has close to 18% share.
Work hard is a relatively new entrant with its First Food brand. Wockhardt also
proposes to launch a new baby food Easum containing moong (moong is one of the
easily digestible pulses). The Easum brand will directly compete with Nestle's
Nestum (made from rice).
Manufacturing Process
Milk is pasteurized by treating it to high temperature for a short time. The main
aim in treating milk with high temperature is to destroy the disease causing
pathogens and to improve keeping quality.
Separation machine is typically a high powered centrifuge. The centrifugal force
makes milk fat globules and emerges as cream from the separator bowl. Separation
of cream produces skim milk from which several dairy products are made.
Baby food: Fresh milk, which is received from farmers/ traders, is chilled and
stored. Then MSK skimmed/ wet skimmed milk and sugar are added in turbo
mixture to achieve the desired specifications of ingredients in the milk. This is
followed by addition of vitamins and minerals. This milk which contains
ingredients to specifications is filtered, cooled, analyzed and then purified. Then it
passes through specific pasteurization and is taken to evaporator for precondensing. Pre-condensate is homogenized, cooled and stored. Cooled precondensate is heated and dried in spray drier (Egron). Then sugar is added. The
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powder is then passed through chemical analysis to check quality and is filled in
tins through filling machines. These tins are gassed during gas mix and then sealed,
packed and dispatched in cardboard cartons.
.
Future Prospects
India= = s dairy sector is expected to triple its production in the next 10 years in
view of expanding potential for export to Europe and the West. Moreover with
WTO regulations 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 is the
lowest cost producer of per litre of milk in the world, at 27 cents, compared with
the U.S' 63 cents, and Japan= = s $2.8 dollars. Also to take advantage of this lowest
cost of milk production and increasing production in the country multinational
companies are planning to expand their activities here. Some of these milk
producers have already obtained quality standard certificates from the authorities.
This will help them in marketing their products in foreign countries in processed
form.
The urban market for milk products is expected to grow at an accelerated pace of
around 33% per annum to around Rs.43,500 crores by year 2008. This growth is
going to come from the greater emphasis on the processed foods sector and also by
increase in the conversion of milk into milk products. By 2008, the value of Indian
dairy produce is expected to be Rs 10, 00,000 million. Presently the market is
valued at around Rs7, 00,000mn.

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28

CHAPTER-2

29

30

COMPANY PROFILE OF AMUL


The Amul Meaning
AMUL means priceless in Sanskrit . A quality control expert in Anand suggested the
brand name AMUL from the Sanskrit word Amoolya variants, all meaning
priceless are found in several Indian languages. Amul products have been used in
millions of home since 1946 .
Amul butter
Amul milk powder
Amul ghee
Amulspray
Amul cheese
Amul chocolates
Amul Ice- cream
Today Amul is a symbol of many things . of high quality products sold at reasonable
prices . triumph of indigenous technology . Of the market(Turnover: Rs. 42.78 billion

in 2007-08). Today Amul is a symbol of many things. Of high-quality


products sold at reasonable prices. Of the genesis of a vast co-operative
network. Of the triumph of indigenous technology. Of the marketing savvy of
a farmers' organization. And of a proven model for dairy development.

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MOTTO, VISION, AND QUALITY POLICY


MOTTO
The main motto of AMUL is to help farmers. Farmers were the foundation stone of
AMUL. The system works only for farmers and for consumers, not for profit. The
main of AMUL is to provide quality products to the consumers at minimum cost.
The goal of AMUL is to provide maximum profit in terms of money to the farmers.
VISION
Vision of AMUL is to provide and vanish the problems of farmers (milk
producers). The AMUL apparition was to run the organization with co-operative of
four main parties, the farmers, the representatives, the marketers, and the
consumers.
QUALITY POLICY
We the motivated and devoted work force of AMUL are committed to produce
whole some and safe foods of excellent quality to remain market leaders through
deployment of quality management system, state of art technology innovation and
eco- friendly delightment of customer and betterment of milk producer

HISTORY
32

In early 1940s a farmer in Kaira district, as elsewhere in India, derived his income
almost entirely from seasonal crops. The income from milk was paltry and could
not

be

depended
The

upon.
main

buyers were milk


traders of Polson Ltd.-a
privately
owned company

that

enjoyed
monopoly

for

supply of milk

from

Kaira to the Government Milk Scheme Bombay. The system leads to exploitation
of poor and illiterate farmers by the private traders.
However, when the exploitation became intolerable, the farmers were frustrated.
They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist
in the freedom movement. Sardar Patel advised the farmers to sell the milk on their
own by establishing a cooperative union, instated of supplying milk to private
traders. Sardar Patel sent the farmer to Shri Morarji Dasai in order to gain his Cooperation and help. Shri Dasai held a meeting at Samrkha village near Anand, on
January 4, 1946. He advised the farmers to from a society for collection of the
milk.These village societies would collect the milk themselves and also decided
prices for that which would be profitable for them. The district union was also
from to collect the milk from such village cooperative societies and to sell them. It
was also resolved that the government should asked to buy milk from the union.
33

However, the government did not seem to help farmer by any means. It gave the
negative response by turning down the demand for the milk. To respond to this
action of government, farmer of Kaira district went on a milk strike. For 15 days
not a single drop of milk was sold to the traders. As a result the Bombay milk
scheme was severely affected. The milk commissioner of Bombay then visited
Anand to assess the situation. Finely he decided to fulfill the farmers demand.
Thus their cooperative unions were forced at village and district level to collect and
sell milk on a cooperative basis, without the intervention of government. Mr.
Verghese Kurien had main interest in establishing union who was supported by
Shri Tribhuvandas Patel who convinced farmers in forming the cooperative unions
at thevillage level. The Kaira District Co-operative Milk Producers Union was
thus established in Anand and was registered formally under section 10 of Bombay
Act VII of 1925 on December 14, 1946. Since then farmers are selling all the milk
in Anand through cooperative union. In 1955 it was commonly decided the sell
milk under the brand name Amul
At the initial stage only 250 liters of milk was collected everyday. But with
the growing awareness of the benefits of the co-operative-ness the collection of
milk increased. Today Amul collect 50, 00,000 liters of milk everyday. As the milk
is perishable commodity it became difficult to preserve milk for a longer period.
Besides when the milk was to be collected from the far places there was a fear of
spoiling of milk. To over come this problem the union thought to develop the
chilling unit at various junctions, which would collect the milk and could chill so
as preserve it a for a longer period. Thus, today Amul has more than 168 chilling
centers in various villages. Milk is collected from almost 1097 societies.
34

With the financial help from UNICEF, assistance from the government of
New Zealand under the Colombo plan, of Rs. 50 million for factory to manufactory
milk powder and butter. Dr. Rajendara Prasad, the president of India laid the
foundation on November 50, 1954. Shri Pandit Jawaharlal Nehru, the prim
minister of India declared it open at Amul dairy on November 20, 1955.
A plant to manufacture balanced cattle feed was formally commissioned on
October 31, 1964 by Shri Lalbahadur Shastri, the Prime Minister of India. At the
request of the government of India, a new dairy with a capacity to manufacture 40
tons of milk powder and 20 tons of butter a day was completed in 1963. This was
meant to meet the requirement of Indias defense forces. The dairy was declared
open by ShriMorarji Desai in April, 1965. in 1974, the Kaira Union setup a plant to
manufacture high-protein weaning food, chocolate and malted food at Mogar,
about 8 km south of Anand.

In September, 1981, the second cattle feed plant at Kanjari were


started. The succesion of the co-generation project on September 11, 1985,
marked a milestone on the energy front when two gas turbine generators of
1.5 MW each based on natural gas, were commissioned. On October 31,
1992, Dr. V. Kurien chairman, National Dairy Development Board, laid the
foundation of Kaira Unions third dairy with a processing capacity of 6.5 lakh
liters of milk a day. Work on the third dairy and cheese plant at Khatraj with
capacity for 20 Metric Ton of cheese per day, began in February, 1994..

35

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest


food products marketing organization. It is a state level apex body of milk
cooperatives in Gujarat which aims to provide remunerative returns to the
farmers and also serve the interest of consumers by providing quality
products which are good value for money.

Members:

13 district cooperative milk producers'


Union

No. of Producer Members:


No. of Village Societies:
Total Milk handling capacity:

2.6 million
12,792
10.16 million litres per day

Milk collection

2.38 billion litres

Milk collection

6.5 million litres

Milk Drying Capacity:

594 Mts. per day

Cattle

2640 Mts per day

feed

manufacturing

Capacity:
About Machinery
In AMUL 3 production of powder, Butter and Milk are being done
continuously. These productions are done by latest machineries equipped
with computer system and it is handled by one technicians.
- The Milk pasteurizer machines belong to Alfa level company of
Pune
- Powder plant machineries belong to L & T Larson and Turbo
company of India
36

- Butter production machineries belong to S.G.company of switrzland


and other
- Butter manufacturing production machineries belong to Simon Feres
com.of France

37

Sales Turnover
Sales Turnover

Rs (million)

US $ (in million)

2000-01

22588

500

2001-02

23365

500

2002-03

27457

575

2003-04

28941

616

2004-05

29225

672

2005-06

37736

850

2006-07

42778

1050

2007-08

52254

1325

2008-09

67113

1505

2009-10

80053

1700

2011-12
2012-13
2013-14
2014-15
2015-16

81001
81250
81375
85250
86230

1725
1775
1785
1790
1800

List of Products Marketed:


Bread spreads:

Amul Butter

Amul Lite Low Fat Bread spread


38

Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozzarella) Cheese

Amul Shredded Pizza Cheese

Amul Emmental Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese)


Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

Amul Amrakhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix

Avsar Ladoos

39

UHT Milk Range:


Amul Shakti 3% fat Milk

Amul Taaza 1.5% fat Milk

Amul Gold 4.5% fat Milk

Amul Lite Slim-n-Trim Milk 0% fat milk

Amul Shakti Toned Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

Pure Ghee:

Amul Pure Ghee

Sagar Pure Ghee

Amul Cow Ghee

Infant Milk Range:


Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 ( 6 months above)

Amulspray Infant Milk Food

40

Milk Powders:

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardized Milk 4.5% fat


Amul Slim & Trim Double Toned Milk 1.5% fat
Amul Saathi Skimmed Milk 0% fat
Amul Cow Milk

Curd Products:
Yogi Sweetened Flavoured Dahi (Dessert)

Amul Masti Dahi (fresh curd)

Amul Masti Spiced Butter Milk


41

Amul Lassee

Amul Ice creams:

Royal Treat Range

Nut-o-Mania Range

(Butterscotch, Rajbhog, Malai Kulfi)


(Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted

Almond)

Nature's Treat

(Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry,

Black Currant, Santra Mantra, Fresh Pineapple)


Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone,
Chococrunch, Mega bite, Cassatta)
Utterly Delicious (Vanilla, Strawberry, Chocolate, Choc chips, Cake Magic)

Chocolate & Confectionery:

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Brown Beverage:

Nutramul Malted Milk Food

42

Milk Drink:
Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose,
Chocolate)
Amul Kool Cafe

Health Beverage:
Amul Shakti White Milk Food

Amul Butter Girl


Edited from an article by Mini Verma published in The Asian
Age on March 3, 1996

The moppet who put Amul on India's breakfast table


50 years after it was first launched, Amul's sale figures have jumped from
1000 tonnes a year in 1966 to over 25,000 tonnes a year in 2008. No other
brand comes even close to it. All because a thumb-sized girl climbed on to
the hoardings and put a spell on the masses.

Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28year-old housewife is out in the balcony drying clothes. From her second
43

floor flat she can see her neighbours on the road. There are other people too.
The crowd seems to be growing larger by the minute. Unable to curb her
curiosity Sheela Mane hurries down to see what all the commotion is about.
She expects the worst but can see no signs of an accident. It is her four-yearold who draws her attention to the hoarding that has come up overnight. "It
was the first Amul hoarding that was put up in Mumbai," recalls Sheela
Mane. "People loved it. I remember it was our favourite topic of discussion
for the next one week! Everywhere we went somehow or the other the
campaign always seemed to crop up in our conversation."

Call her the Friday to Friday star. Round eyed, chubby cheeked,
winking at you, from strategically placed hoardings at many traffic lights.
She is the Amul moppet everyone loves to love (including prickly votaries of
the Shiv Sena and BJP). How often have we stopped, looked, chuckled at the
Amul hoarding that casts her sometime as the coy, shy Madhuri, a bold
sensuous Urmila or simply as herself, dressed in her little polka dotted dress
and a red and white bow, holding out her favourite packet of butter.

For 30 odd years the Utterly Butterly girl has managed to keep her fan
following intact. So much so that the ads are now ready to enter the Guinness
Book of World Records for being the longest running campaign ever. The
ultimate compliment to the butter came when a British company launched
butter and called it Utterly Butterly, last year.
44

It all began in 1966 when Sylvester daCunha, then the managing


director of the advertising agency, ASP, clinched the account for Amul butter.
The butter, which had been launched in 1945, had a staid, boring image,
primarily because the earlier advertising agency which was in charge of the
account preferred to stick to routine, corporate ads.

One of the first Amul hoardings

In India, food was something one couldn't afford to fool around with. It had
been taken too seriously, for too long. Sylvester daCunha decided it was time
for a change of image.

The year Sylvester daCunha took over the account, the country saw the birth
of a campaign whose charm has endured fickle public opinion, gimmickry
and all else.

45

The Amul girl who lends herself so completely to Amul butter, created as a
rival to the Polson butter girl. This one was sexy, village belle, clothed in a
tantalizing choli all but covering her upper regions. "Eustace Fernandez (the
art director) and I decided that we needed a girl who would worm her way
into a housewife's heart. And who better than a little girl?" says Sylvester
daCunha. And so it came about that the famous Amul Moppet was born.

That October, lamp kiosks and the bus sites of the city were splashed with
the moppet on a horse. The baseline simply said, Thorough bread, Utterly Butterly
Delicious Amul,. It was a matter of just a few hours before the daCunha office was
ringing with calls. Not just adults, even children were calling up to say how much
they had liked the ads. "The response was phenomenal," recalls Sylvester daCunha.
"We knew our campaign was going to be successful."
For the first one year the ads made statements of some kind or the other but they
had not yet acquired the topical tone. In 1967, Sylvester decided that giving the ads
a solid concept would give them extra mileage, more dum, so to say. It was a
decision that would stand the daCunhas in good stead in the years to come.

In 1969, when the city first saw the beginning of the Hare Rama Hare
Krishna movement, Sylvester daCunha, Mohammad Khan and Usha
Bandarkar, then the creative team working on the Amul account came up with
a clincher -- 'Hurry Amul, Hurry Hurry'. Bombay reacted to the ad with a
fervour that was almost as devout as the Iskon fever.
46

That was the first of the many topical ads that were in the offing. From then
on Amul began playing the role of a social observer. Over the years the
campaign acquired that all important Amul touch.

India looked forward to Amul's evocative humour. If the Naxalite


movement was the happening thing in Calcutta, Amul would be up there on
the hoardings saying, "Bread without Amul Butter, cholbe na cholbe na
(won't do, won't do). If there was an Indian Airlines strike Amul would be
there again saying, Indian Airlines Won't Fly Without Amul.

There are stories about the butter that people like to relate over cups of
tea. "For over 10 years I have been collecting Amul ads. I especially like the
ads on the backs of the butter packets, "says Mrs. Sumona Varma. What does
she do with these ads? "I have made an album of them to amuse my
grandchildren," she laughs. "They are almost part of our culture, aren't they?
My grandchildren are already beginning to realise that these ads are not just a
source of amusement. They make them aware of what is happening around
them."

Despite some of the negative reactions that the ads have got, DaCunhas
have made it a policy not to play it safe. There are numerous ads that are
risqu in tone.
47

"We had the option of being sweet and playing it safe, or making an
impact. A fine balance had to be struck. We have a campaign that is strong
enough to make a statement. I didn't want the hoardings to be pleasant or
tame. They have to say something," says Rahul daCunha.
"We ran a couple of ads that created quite a furore," says Sylvester daCunha.
"The Indian Airlines one really angered the authorities. They said if they
didn't take down the ads they would stop supplying Amul butter on the plane.
So ultimately we discontinued the ad," he says laughing. Then there was the
time when the Amul girl was shown wearing the Gandhi cap. The high
command came down heavy on that one. The Gandhi cap was a symbol of
independence; they couldn't have anyone not taking that seriously. So despite
their reluctance the hoardings were wiped clean. "Then there was an ad
during the Ganpati festival which said, Ganpati Bappa more Ghya (Ganpati
Bappa take more). The Shiv Sena people said that if we didn't do something
about removing the ad they would come and destroy our office. It is
surprising how vigilant the political forces are in this country. Even when the
Enron ads (Enr on or off) were running, Rebecca Mark wrote to us saying
how much she liked them."

There were other instances too. Heroine Addiction, Amul's little joke on
Hussain had the artist ringing the daCunhas up to request them for a blow up
of the ad. "He said that he had seen the hoarding while passing through a
48

small district in UP. He sid says Rahul daCunha in amused tones. Indians do
have a sense of humour, afterall.he had asked his assistant to take a
photograph of himself with the ad because he had found it so funny,"
From the Sixties to the Nineties, the Amul ads have come a long way. While
most people agree that the Amul ads were at their peak in the Eighties they
still maintain that the Amul ads continue to tease laughter out of them.

Where does Amul's magic actually lie? Many believe that the charm lies in
the catchy lines. That we laugh because the humour is what anybody would
enjoy. They don't pander to your nationality or certain sentiments. It is pure
and simple, everyday fun.

Milk Collection Cycle


The success of each and every dairy industry is the getting the milk from the
farmers and making that milk in use as soon as possible before that milk get
spoiled because the milk is the perishable product. For the smooth running the
business of dairy industry the industry must concentrate on the milk collection
cycle. Amul dairy is very conscious about the milk collection cycle because the
base of the success of the Amul is milk collection cycle.

Production capacity of Amul


49

Butter
Powder plant
Powder plant
Flavour milk

50 to 60 Tones
70 tones
60 tones
40000 bottles

About Machinery
In AMUL 3 production of powder, Butter and Milk are being done
continuously. These productions are done by latest machineries equipped
with computer system and it is handled by one technicians.
- The Milk pasteurizer machines belong to Alfa level company of
Pune
- Powder plant machineries belong to L & T Larson and Turbo
company of India
- Butter production machineries belong to S.G.company of switrzland
and other
- Butter manufacturing production machineries belong to Simon Feres
com.of France

Butter section
The utterly Butterfly Delicious butter of the Amul is one of the most popular
product of Amul dairy along with the famous butter girl . The butter section is
located in Amul -3 which manufactures Table Butter , white butter and reduced salt
butter . The section is completely computer controlled and is equipped with most
modern imported equipments .Butter section very important as it handles fat,
which is the costliest constituent . The cream obtained from process section is fully
50

utilized for butter making . Amul white and table Butter is exported to USA and
various Middle Eastern countries .

OPERATION
The cream for manufacturing Butter is receiving from Amul-3 process section
while standardization of milk . In Amul -3 the milk fat will be separated at above
60 Celsius , the centrifugal separators in line with Milk pasteurizer separate this as
cream . The cream thus separated is pasteurized and then pumped to the cream
buffer tanks and to cream silo .After ageing at 8 Celsius for 24 hrs , cream is
pumped to cream chilling unit in the butter section . there the temperature of cream
is adjusted to the required churning temperature of continuous Butter Making
Machine.

Packing materials used :


Delocalize market
Double laminated is used for export
Tin used for 400g Army pack
Card board box- used for tertiary packing
3ply for 9.1 g weight package
5ply for normal & export

Powder plant
F-35 plant is situated in Amul -2 near to the railway siding . The plant is a single
stage drying plant having a capacity of 35 TDP. The plant is not in regular use and
mainly used for the manufacturing of cheese whey powder .
F-35 CONDENSING PLANT DETAILS
Make : SSP ,Faridabad
51

Type : Falling film vertical tube type


No of Pre heater : 5
No of calendria : 7
No of vapor separators : 5

OPERATION DETAIL
PRODUCT USE AND CHARACTERISTICS
MILK
One of the most versatile food consumed by us. All children start their with
mothers milk and continue to use it in one other throughout their life. It is the
secretion from the mammary glands of a lactating mammal. The white fluid, know
as milk, is made up of milk fat and other milk solids.
AMUL ICE CREAM
Amul ice cream is made up from fresh milk.
Ice cream are rich in protein, calcium, dairy cream and vitamins.
Ice cream are a complete food, easy to digest and full of energy.
MANUFACTURING PROCESS FOR ICE CREAM
Amul ice cream is made up from milk, milk products, sugar, stabilizers and
emulsifiers.
Composition
52

Milk Fat 13.5% to 14.5%


Total Solids 40% to 41%
Sugar 15% Approx.
Acidity 0.17% to 0.19%
Protein 3.9% to 4.1%
Food Energy Value
Calories per 100 ml -196.7 kcal

Flavors
VANILA , Strawberry, Pineapple, Orange, Rose, Mango, Chocolate, HoneyDew-Melon, Tutee Fruity, Litchi, Kesar Pista, Kaju Draksh, Butterscotch,
Choc chips, Rajbhog and Cashew Break.

Packaging
50 ml cup, 100 ml cup, 500 ml pack,1 litre pack, 4 litre pack, Chocobar, Ice
candies, Cones and Kulfies .

MANUFACTURING PROCESS FOR MILK


MILK PROCUREMENT
53

Total milk procurement by our Member Unions during the year 2006-07 averaged
67.25 lakh kilograms (6.7 million kg) per day, representing a growth of 4.5 per
cent over 64.38 lakh kilograms (6.4 million kg) per day achieved during 2005-06.
The highest procurement as usual was recorded during January 2007 at 84.09 lakh
kilograms (8.4 million kg) per day. This increase in milk procurement is very
impressive, keeping in mind the massive loss suffered by our farmers due to
floods during the monsoon season, specially in Surat district.

MILK PROCESSING
1 Homogenization: - Milk must then be homogenized. Without homogenization,
the milk fat would separate from the milk and rise to the top. Milk fat is what gives
milk its rich and creamy taste. In this process Milk is transferred to a piece of
equipment called a homogenizer. In this machine the milk fat is forced, under high
pressure through tiny holes.
2 . Pasteurization:- Pasteurization is the process that purifies milk and helps it
stay fresher, longer. Milk is pasteurized by heating it to 72C for 16 seconds then
quickly cooling it to 4C. Pasteurization is named after Louis Pasteur, the famous
scientist.
3

.Adding Vitamins; - Before homogenization, vitamin D is added to all milk.

Vitamin D combined with the calcium that naturally exists in milk help gives us
strong bones and teeth. Dairies also add Vitamin A to skim, 1% and 2% milk.
Vitamin A is good for our eyesight.

54

4.Packaging Milk: - Milk is now ready to be packaged. Milk is pumped through


automatic filling machines direct into bags, cartons and jugs. The machines are
carefully sanitized and packages are filled and sealed without human hands.
During the entire time that milk is at the dairy, it is kept at 1 - 2C. This prevents
the development of extra bacteria and keeps the milk its freshest.
5.Storing:- Milk is delivered to grocery stores, convenience stores and restaurants
in refrigerated trucks that keep milk cooled to 1 - 4C. The stores take their milk
and immediately place it in their refrigerated storage area. Because fresh milk is so
important to our diets, dairies, and our health.

Distribution
GCMMF coordinated with various unions to get a regular supply of milk and dairy
products. The processed milk and dairy products were procured from district dairy
unions and distributed through third party distributors. To ensure quality and timely
deliveries, GCMMF and the district unions had several mechanisms in place. The
VCS constantly monitored the deliveries of the milk collected and ensured that the
milk was picked up on time. The unions monitored the supplies of milk and the
distribution of finished products.
WARE HOUSING: Amul products are available in over 500,000 retail outlets
across India through its network of over 3,500 distributors. There are 47 depots
with dry and cold warehouses to buffer inventory of the entire range of products.
GCMMF transacts on an advance demand draft basis from its wholesale dealers
instead of the cheque system adopted by other major FMCG companies. This
practice is consistent with GCMMF's philosophy of maintaining cash transactions
55

throughout the supply chain and it also minimizes dumping. Wholesale dealers
carry inventory that is just adequate to take care of the transit time from the branch
warehouse to their premises. This just-in-time inventory strategy improves dealers'
return on investment (ROI). All GCMMF branches engage in route scheduling and
have dedicated vehicle operation .

SUPPLY CHAIN EXPLANATION WITH DIAGRAME


DEFINITION OF VALUE CHAIN

56

Second component is suppliers are the farmers and other raw material for
manufacturing the ice creams are provided by MAHAN PROTEINS LTD., IDEAL
ICE CREAMS and BHARAT ESSENCE.
This component

is manufacturing process which is describe above. In milk

process there are mainly five steps are required and i.e. homogenization,
pasteurization, adding vitamins, packaging, storing. In this process there are also
requirement of warehouse for storing the product which already made and also for
the raw material.
The next step is the distribution channel in which GCMMF plays very important
role in that. It handle all the marketing for AMUL products. GCMMF's products
were marketed through 50 sales offices located across India to 4,000 stockists.
These stockists supplied the products to more than 500,000 retail outlets.
57

The next step is the customers in this category there are restaurants includes. Also
the retail shops and whole sellers are included.
The last step is the consumer in which the actual hose hold are included in this
category.

PROFILE OF PARAG DAIRY


Parag Dairy Delhi was set up in 1974 under the Operation Flood Programme. It
is now a wholly owned company of the National Dairy Development Board
(NDDB).
Parag Dairy markets & sells dairy products under the Parag Dairy brand (like
Liquid Milk, Dahi, Ice creams, Cheese and Butter), Dhara range of edible oils and
the Safal range of fresh fruits & vegetables, frozen vegetables and fruit juices at a
national level through its sales and distribution networks for marketing food items.
Parag Dairy sources significant part of its requirement of liquid milk from dairy
cooperatives. Similarly, Parag Dairy sources fruits and vegetables from farmers /
growers associations. Parag Dairy also contributes to the cause of oilseeds grower

58

cooperatives that manufacture/ pack the Dhara range of edible oils by undertaking
to nationally market all Dhara products. It is Parag Dairys constant endeavor to
(a) Ensure that milk producers and farmers regularly and continually receive
market prices by offering quality milk, milk products and other food products to
consumers at competitive prices and;
(b) Uphold institutional structures that empower milk producers and farmers
through processes that are equitable.
At Parag Dairy, processing of milk is controlled by process automation whereby
state-of-the-art microprocessor technology is adopted to integrate and completely
automate all functions of the milk processing areas to ensure high product quality/
reliability and safety. Parag Dairy is an IS/ ISO-9002, IS-15000 HACCP and IS14001 EMS certified organization. Moreover, its
Quality Assurance Laboratory is certified by National Accreditation Board for
Testing and Calibration Laboratory (NABL)-Department of Science and
Technology, Government of India.
Parag Dairy markets approximately 2.8 million liters of milk daily in the
markets of Delhi, Mumbai, Saurashtra and Hyderabad. Parag Dairy Milk has a
market share of 66% in the branded sector in Delhi where it sells 2.3 million liters
of milk daily and undertakes its marketing operations through around 14,000 retail
outlets and 845 exclusive outlets of Parag Dairy.
The companys derives significant competitive advantage from its unique
distribution network of bulk vending booths, retail outlets and mobile units. Parag
Dairy ice creams launched in the year 1995 have shown continuous growth over
the years and today boasts of approximately 62% market share in Delhi and NCR.
Parag Dairy also manufactures and markets a wide range of dairy products that
59

include Butter, Dahi, Ghee, Cheese, UHT Milk, Lassi & Flavored Milk and most
of these products are available across the country.
The company markets an array of fresh and frozen fruit and vegetable
products under the brand name SAFAL through a chain of 400+ own Fruit and
Vegetable shops and more than 20,000 retail outlets in various parts of the country.
Fresh produce from the producers is handled at the Companys modern distribution
facility in Delhi with an annual capacity of 200,000 MT. An IQF facility with
capacity of around 75 MT per day is also operational in Delhi. A state-of-the-art
fruit processing plant of fruit handling capacity of 120 MT per day, a 100 percent
EOU, setup in 1996 at Mumbai supplies quality products in the international
market.
With increasing demand another state-of-the-art fruit processing plant has been set
up at Bangalore with fruit handling capacity of around 250 MT per day. Parag
Dairy has also been marketing the Dhara range of edible oils for the last few years.
Today it is a leading brand of edible oils and is available across the country in over
2, 00,000 outlets. The brand is currently available in the following variants:
Refined Vegetable Oil, Refined Soybean Oil, Refined Sunflower Oil, Refined Rice
Bran Oil, Kachi Ghani Mustard Oil and Filtered Groundnut Oil. Parag Dairy has
also launched extra virgin Olive Oil under the Daroliva brand.
Parag Dairy has over the last 3 decades, harnessed the power of farmer
cooperatives to deliver a range of delicious products and bring a smile on your
face. In times to come, Parag Dairy shall strive to remain one of Indias finest food
companies.
60

List of Products Marketed:

Bread spreads:
Parag Butter

Cheese Range:

Parag Processed Cheese

Parag Pizza Cheese

Parag Paneer

UHT Milk Range:


Parag Milk

Parag Fresh Cream

Pure Ghee:

Parag Pure Ghee

61

Infant Milk Range:

Parag spray Milk Food

Milk Powders:

Paragya Dairy Whitener

Sagar Skimmed Milk Powder

Fresh Milk:

Parag Taaza Toned Milk

Parag Cow Milk

Consumer Perception towards Amul & Parag Dairy Products


Export Potential
India has the potential to become one of the leading players in milk and milk
product exports. Location advantage: India is located amidst major milk deficit
countries in Asia and Africa. Major importers of milk and milk products are
Bangladesh, China, Hong Kong, Singapore, Thailand, Malaysia, Philippines,
Japan, UAE, Oman and other gulf countries, all located close to India.
62

Low Cost of Production: Milk production is scale insensitive and labour


intensive. Due to low labour cost, cost of production of milk is significantly lower
in India.
Concerns in export competitiveness are Quality: Significant investment has to be
made in milk procurement, equipments, 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 and other ethnic sweets to the large number of Indians
scattered all over the world

63

CHAPTER 3

64

RESEARCH METHODOLOGY
Methodology for a study like this is the most important part .The
method of study operate by me is totally is to increase & gather the more
information regarding this project.

65

The major emphasis in such studies is on the discovery of the ideas


fruitful relevant information. As such the research design appropriate for
such studies must be flexible enough to provide opportunity for
considering different aspect of a problem under study.
I collected the information regarding this project through
I.

PRIMARY DATA

II.

SECONDARY DATA
Primary data is collected through the customers and retailers.

Secondary data is collected through personal interview.


Since our research is descriptive type, so research design is also descriptive.
Sample design:
Sampling is a process of obtaining information about an entire population by
examining only a part of it.

Sample size: 50

Analytical tools: This study is based on collecting data by using wellconnected questionnaire for consumer from various demographic segments and
also data is collected using secondary sources. After collecting data it is arranged
in the form of tables from analysis and interpretation. Graphs and percentage
analysis are the main tools used for the purpose of interpretation.
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Areas where I made survey


GOMTI NAGAR
INDIRA NAGAR
HAZRAT GANJ
SAHARA GANJ
ALIGANJ
CHAR BAGH
BHOOT NATH
VIKAS NAGAR

LIMITATIONS OF THE STUDY


This survey although carried out with fullest possible efforts and devotion,
the limitation of the time, resources available and limited area chose may lead to
limited representation of the universe. The major limitations from which the study
suffers are as follows.
Time Constraint:Time factor has been a very big limitation in the research/survey like this.
The retailers have limited time so they sometimes refuse to answer the
questionnaire, also me as a surveyor has less time to conduct the survey. So the
size of the sample was restricted to LUCKNOW.
Biasness in Information:-

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It was felt that retailers did not come up with true responses, in several cases the
retailers answered the questions with the help of other members and it was mostly
in case of less educated persons.
Financial Constraint:The financial aspect, which includes the traveling cost, cost of
administrating questionnaire and collection of data through other resources was
also costly.

COMPARATIVE STUDY OF AMUL AND PARAG DAIRY


PRODUCTS
Consumer
Preferences

Parag Dairy
Ghee

Amul

Milk

Butter Cheese Ghee Milk Butter Chee

1. Price

High

High

High

High

Low

Low

Low

se
Low

2. Quality

High

High

High

High

Good

Goo

Good

Goo

d
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3. Taste
4. Packing Style

Better Better
Better Better

Better
Better

Better
Better

Good

Goo

Best

d
Best

Good

Goo

Best

d
Best

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CHAPTER 4

70

ANALYSIS AND INTERPRETATION OF DATA


Q.1 Which company's dairy product you use?
(a) Parag

( b) Amul

( c) Others

71

20%
30%
Parag
Amul
Other

50%

Interpretation:
50% of the consumer uses Amul over 30% Parag & 10% others.

Q.2 Which of the product mostly you go for?

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(a) Ghee

(b) Milk

(c) Butter

(d)cheese

20%

ghee

milk

17%

butter

28%

cheese

35%

Interpretation:
35% of the consumer uses milk, 28% uses Butter 17% Ghee & 20% Cheese.

.3 Reason behind choosing a particular brand?


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(a)
(c)

Price

(b) Taste

Brand name

(d) Packing style

16%

price

taste

24%

20%

brand name

packing style

40%

Interpretation:
40% of the consumer prefer tasteso, as to choose a particular brand, 20% due
to price, 24% due to brand name & 116% uses due to packaging style,

Q.4 Which product of Amul is preferred by you?


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(a)Ghee

(b) Milk

(c) Butter

(d) Cheese

20%
Ghee

Milk

5%

Butter
40%

Cheese

35%

Interpretation:
40% of consumer uses Amul milk, 35% uses Butter, 20% of consumer uses
Amul Cheese 5% of consumer go for Amul Gheee.

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Q.5 Are you particular about preferred dairy brand?


(a) very much

(b) rare

(c) not at all

26%
39%
Very much

Rare

Not at all

35%

Interpretation:
42% prefer dairy brand very much, 38% consumer prefer rarely &28%prefer not at
all.

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Q.6 Which product of Parag dairy is preferred by you?


(a)Ghee

(b) Milk

(c) Butter

(d) Cheese

10%

Ghee

23%

Milk

25%
Butter

Cheese

42%

Interpretation:
42% prefer Parag milk 23% prefer Parag Butter, 25% consumer prefer Parag Ghee,
& 10% of consumer prefer Parag Cheese.

Q.7 Which product of Parag dairy is preferred least by you?


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(a)Ghee

(b) Milk

(c) Butter

(d) Cheese

10%
7%
Ghee

Milk

10%

Butter

Cheese

73%

Interpretation:
The least preference is of user to Parag Cheese which is 73%, 10% to Parag Ghee.
10% to Parag Butter,7%of Parag milk.

Q.8 Are you satisfied with your product?


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(a) yes

(b) no

27%
73%
Yes

No

Interpretation:
27% consumer Prefer that they are satisfied with the product while 73% consumer
are not satisfied with it.

Q.9 Are you inclined to your product?


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(a)Quality

(b) Brand

(c)Price

(d) Taste

Interpretation:
53% are inclined to taste, 37% are towards quality 7% towards Brand & 3%
towards price.

Q.10 Do you want any changes in your preferred brand?


80

(a) Yes

(b) No

27%
73%
Yes

No

Interpretation:
73% consumer give no preference towards change while 27% consumer give
preference toward change.

Q.11 In which parameter?

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(a)Taste

(b) Price

(c) Packing style

(d) Quality

23%

Taste

27%
Price

10%

40%
Packing Style

Quality

Interpretation:
40% consumer want change in price 23% consumer want change in quality, 27%
in packing style while 10% in taste.

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CHAPTER 5

83

FINDINGS
84

1. "The company caters to the Indian palate, which is its primary driver of
success". In light of this statement, critically examine the marketing
strategies adopted by Amul & Parag Dairy to capture a sizeable market
share of the organized Dairy based food Product in India.

2. In the modern competitive scenario, promotion is a key element in the


marketing mix of a company. Critically analyze the promotion
strategies adopted by Amul India Pvt. Ltd. What other efforts must the
company take to effectively promote its products?

3. Dairy based Products contribute a major share of the revenues of Amul.


Given the competitive scenario in the Dairy Products in India, where
competitors such as Parag Dairy are introducing several innovative
products, what measures must Amul take to remain competitive?
Explain in detail.

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SUGGESTIONS
1.

Company should have feed back from market and consumer


about the Dairy based Products.

2.

The more Flavors of Amul & Parag Dairy Products should


become in the Market.

3.

The company provided some small schemes for retailer also.

4.

The company gives some gifts for customer also.

5.

The company should associate itself with some games or


tournaments like football, cricket and so on.

6.

Company

should

provide

sponsored

seminar

market

intelligence- Company should maintain the healthy relationship with market


distribution channel i.e. whole seller, distributor, retailers which will boost
the brand image.
7.

Company should check the market real position help the


trainees and other survey organizations.

8.

Company should launch its website and use new advertising


channels; i.e.
Trailer in cinema halls
Hoardings
Spencer any education scholarship or games.

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CONCLUSION
I have studied and analyzed the Dairy based food Product Market of
Amul & Parag Dairy Products at Lucknow on different aspects of the
markets, outlets, distribution & consumers. The survey was conducted in
various areas of Lucknow city with great enthusiasm. This project report
Concludes that Amul & Parag Dairy are easily available in various parts of
LUCKNOW.The Parag distribution channel of the Amul is much strong the
most important thing, which I feel to improve is the availability to retailers
& consumers.
The retailers & consumers both promotes either Amul or Parag Dairy of its
brands for could be with regard to order processing, warehousing, inventory
management & transportation; besides that shop covering, exit from the market
by the salesmen glow shine board, schemes, incentives, prizes, gifts, discount,
returning of defective goods, proper supply should be improved.
My job was to make marketing managers aware of all the problems so that a
proper course of action is required to be undertaken.

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LIMITATION
1. Time Constraint, as the research had to be completed in one months so it
is very difficult to cover all the areas .
2. Geographical Constraint
3. Financial Constraint
4. Language Constaints

88

BIBLIOGRAPHY
Market Research

- Luck and Rubin

Research Methodology

- C.R. Kothari

Product Management

Marketing Management

- Ramanuj Majumdar

- R.L. Vashney & S.L. Gupta

www.google.com

www.amul.com
www.Paragdairy.com

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QUESTIONNAIRE
NAME:
GENDER:

Mob.No.:

ADDRESS:
Q.1Which company dairy product you use?
(a) Parag

(b) Amul

(c) Others

Q.2 Which of the product mostly you go for?


(a)Ghee

(b) Milk

(c)Butter

(d) Cheese

Q.3 Reason behind choosing a particular brand?


(b)

Price

(b) Taste
90

(c)

Brand name

(d) Packing style

Q.4 Which product of Amul is preferred by you?


(a)Ghee

(b) Milk

(c) Butter

(d) Cheese

Q.5 Are you particular about preferred dairy brand?


(a) very much

(b) rare

(c) not at all

Q.6 Which product of Parag dairy is preferred by you?


(a)Ghee

(b) Milk

(c) Butter

(d) Cheese

Q.7 Which product of Parag dairy is preferred least by you?


(a)Ghee

(b) Milk
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(c) Butter

(d) Cheese

Q.8 Are you satisfied with your product?


(a) yes

(b) no

Q.9 Are you inclined to your product?


(a)Quality

(b) Brand

(c)Price

(d) Taste

Q.10 Do you want any changes in your preferred brand?


(a) Yes

(b) No

Q.11 In which parameter?


(a)Taste

(b) Price

(c) Packing style

(d) Quality

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Thank you for sparing your precious time!

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