Market Analyses & Impact of Localized

Promotional Activities of Amul Pro for the

Awareness of Consumers.
Submitted By
VIVEK SINGH
PGDM
Roll No. 113
Batch: 2013-2015

UNDER THE GUIDANCE OF

Prof. Dr. SUNITA SRIVASTAVA

A PROJECT SUBMITTED under part completion of PGDM to

Chetanas Institute of Management & Research
Bandra (East), Mumbai 400 051.
July, 2014

ACKNOWLEDGEMENT
It is my great privilege to acknowledge and remain indebted to the people who by their rich and
varied contribution have helped me in understanding the various aspects included in my project.
The successful completion of the project would be incomplete without the mention of the people
who made it possible.
I would like to thank and express my deep sense of gratitude to my Faculty Guide Prof. Dr.
Sunita Srivastava. I am greatly indebted to her for providing me with her precious
guidance,valuable suggestions, without which it would have not been possible to complete the
project.
I would also like to thank my Project Guide Mr. Manoj Agrawal who in spite of his busy
schedule has co-operated with me continuously and indeed, his valuable contribution and
guidance have been certainly indispensable for my project work.
I would also like to thank all respondents, and the dealers, who spared their valuable time and
enriched me with valuable information.
Last but not the least;I heartily thanks to my colleagues and friends who helped a lot during
project work.

VIVEK SINGH

CERTIFICATE

Date:
Place:
---------------------------------Internal Faculty Guide

EXECUTIVE SUMMARY:
The project was taken into consideration for the promotion and the marketing of the amul new
product i.e AMUL PRO.
3

The main task assigned to us by our mentors where to make the product available in each and
every stores.
It also focuses on the competitors product like bournvita Horlicks, boost etc.
Summer training was to first analyses the market situation focus on the need of the consumers
what the thing they are lacking in the competitors product so that the same thing didnt happened
in our product.
So after the whole promotion and marketing of the productwe have taken the sample size of 50
retailers retailers wand wanted to know the feed back which we are getting for our product.
The main objective of the project was study of internal customers (Retailer) Satisfaction level
within unit. To know more details of the problem area within a unit & provide recommendation
for the same.
Earlier, organizational administrators concentrated only on the satisfaction of external customers
i.e. the target market. But now it is being realized that if the internal customer is satisfied the
quality as well as the quantity is also appreciable. Higher the customer satisfaction index, higher
will be the quality of the production. This results in the satisfaction of external customers and
ultimately brings profits & prosperity to the organization.
It is important to emphasize that total customer satisfaction can be attained only if all employees
devoted to external customer satisfaction can work together and assist each other to achieve the
common objective
So, it is suggested to adopt retailer oriented approach to keep the internal customer satisfied and
motivated, who in turn will focus their attention and energy upon meeting the requirements
of their customers, thereby maximizing the customer, thereby maximizing the customer
satisfaction.
Customer satisfaction survey is the process to monitor the satisfaction quotient of their people. In
internal satisfaction surveys therefore tracks the return on your investments in keeping your
people happy, good coordination, a quality culture, a healthy work environment.

CONTENTS
Index

Page No.

1. Introduction...
2. Literature review
3. Research Methodology......................................................
4. Results &Interprtations.......
5. Conclusions....
6. Limitations of the project..................................
7. Recommendations.................................
Appendix.........
Bibliography.. .

List of Tables

List of Figures

Abbreviations:

1. Introduction
1.1 Industry Profile :
7

FOOD INDUSTRY The food industry is the complex, global collective of diverse businesses that together supply much of the food
energy consumed by the world population. Only subsistence farmers, those who survive on what
they grow, can be considered outside of the scope of the modern food industry.
The food industry includes:
Regulation: local, regional, national and international rules and regulations for food production and sale,
including food quality and food safety, and industry lobbying activities.
Education: Academic, vocational, consultancy.
Research and development: food technology.
Financial services: insurance, credit.
Manufacturing: agrichemicals, seed, farm machinery and supplies, agricultural construction, etc.
Agriculture: raising of crops and livestock, seafood.
Food processing: preparation of fresh products for market, manufacture of prepared food products.
Marketing: promotion of generic products (e.g. milk board), new products, public opinion, through
advertising, packaging, public relations, etc.
Wholesale and distribution: warehousing, transportation, logistics.
Retail: supermarket chains and independent food stores, direct-to-consumer, restaurant, food
services.

ADVANTAGE OF INDIA UNDER FOOD INDUSTRY:

India is one of the largest food producers in the world India has diverse agro-climatic conditions and has a large
and diverse raw material base suitable for food processing companies
Investment requirement of around US$ 15 billion exists in the food processing sector India is looking for
investment in infrastructure, packaging and marketing India has huge scientific and research talent pool
largely untapped domestic market of 1000 million consumers300 million upper and middle class consume
8

processed food200 million more consumers expected to shift to processed food by 2010Well
developed infrastructure and distribution network Rapid urbanization, increased literacy,
changing life style, increased number of women in workforce, rising per capita income- leading
to rapid growth and new opportunities in food and beverages sector50 per cent of household
expenditure by Indians is on food items strategic geographic location (proximity of India to markets in
Europe and far east, South East and West Asia)Under the food industry, Dairy product is
very important part of food processing. Dairy processing is acting good role in India.

Dairy Processing:
India ranks first in the world in terms of milk production. Indian production stands at 91million
tones growing at a CAGR of 4 per cent. This is primarily due to the initiatives taken by the
Operation flood programmers in organizing milk producers into cooperatives; building
infrastructure for milk procurement, processing and marketing and providing financial, technical and
management inputs by the Ministry of Agriculture and Ministry of Food Processing Industries to turn the
dairy sector into viable self-sustaining organized sector. About 35% of milk produced in India is
processed. The organized sector (large scale dairy plants) processes about 13 million tones annually,
while the unorganized sector processes about 22 million tones per annum. In the organized sector, there are
676 dairy plants in the Cooperative, Private and Government sectors registered with the
Government of India and the state Governments.
India has a unique pattern of production, processing and marketing/consumption of milk, which
is not comparable with any large milk producing country. Approximately 70 million
rural households (primarily, small and marginal farmers and landless labourers ) in the country are engaged
in milk production. Over 11 million farmer are organized into about0.1 million village Dairy
Cooperative Societies (DCS)(about 110 farmers per DCS). The cumulative milk handled by DCS across the
country is about 18 million kg of milk per day. These cooperatives form part of a national milk grid which links the
milk producers through out India with consumers in more than 700 towns and cities bridging the
gaps on account of seasonal and regional variations in the availability of milk. The Ministry of food
Processing Industries is promoting organized Dairy processing sector to accomplish upcoming
demands of processed dairy products and helping to identify various areas of research for future product
development and quality improvement to revamp the Indian dairy export by way of providing financial
assistance to the dairy processing units. 32 Units have been sanctioned financial assistance
(Rs.591 lakhs) under the plan scheme of the Ministry during the year 2006-07.

Major Indian Players and overseas in the Food industry

ITCLimited
Parle Products Pvt. Ltd.
Agro Tech Foods.
9

Amul India Ltd.

Cadbury India Ltd.
PepsiCo India Holdings.
Nestle India Pvt. Ltd.
Britannia Industries Ltd.
Hindustan uni lever limitedmtr foods limited.
Godrej industries limited.
Dabur India Ltd.

1.2 Company Profile:

Gujarat Co-operative Milk Marketing Federation

10

Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF) is India's largest food products
marketing organization with annual sales turnover of Rs 13,735 crore in the year 2012-2013.
It manufactures and markets a wide range of dairy products in India and abroad under the brand
names of Amul and Sagar. GCMMF has 19 affiliated dairy plants with a total milk handling
capacity of 6.7 million litres per day. The total milk drying capacity is 510 MT per day. GCMMF
is also the largest exporter of dairy products from India.
It manufactures and markets a wide range of dairy products in India and abroad under the brand
names of Amul and Sagar. The product categories are Infant Milk Food, Skimmed Milk Powder,
Full Cream Milk Powder, Dairy Whitener, Table Butter, Cheddar Cheese, Mozzarella Cheese,
Emmental Cheese, Cheese Spreads, Gouda cheese, Ghee, Sweetened Condensed Milk,
Chocolates, Malted Milk Food, Blended Breadspreads, Fresh milk, UHT (Long life) Milk, Icecream and ethnic Indian sweets.
GCMMF is the largest exporter of dairy products from India. It exports our products in consumer
packs and bulk to USA, Singapore, UAE, Australia, Bahrain, Qatar, Oman, Kuwait, Bangladesh,
Madagascar, Yemen, Sri Lanka etc. on a regular basis. It has won 9 awards consecutively from
APEDA, Govt of India.

Vision: Amuls vision is to provide more and more satisfaction to the farmers, their customers,
employees and distributors.
Amuls vision is to see an educated, talented and strong youth in a developed India of the future
and thereby contribute towards nation building. Amul believe that the sound education of its
youth is the foundation of every state. Hence it is the most basic constituent for a developing
nation like ours. Towards this philosophy, Amul Vidyashree & Vidyabhushan Awards have been
11

instituted to recognize the brilliance of the students across India as well as the quality of
education & guidance imparted by the schools they study in. The inception of these awards dates
back to 2004-05. Since last 8 years, GCMMF has recognized 40,000 merit rankers from 30
central and state education boards pan India.
Amul Vidyashree & Amul Vidyabhushan Awards consists of the following:
A Memento
A Certificate of excellence
A Gift hamper of books
DVD: Amul India Story.
Liberate farmers from economic oppression and lead them to prosperity.
Mission: The motivated and dedicated workforce at Amul is committed to produce wholesome
and safe food of excellent quality to remain market leader through development of quality
management system, state of art technology, innovation and eco-friendly operations to delight
customers and milk producer.
Dairy cooperatives of Gujarat turnover of Rs. 27000 crores by the year 2020.
Future Plans:
Expansion of distribution network, creative marketing, consumer education and product
innovation, we will leverage effectively on rising income levels and growing affluence among
Indian consumers.
Tapping the rising demand for new value-added products.
Plan to double to processing capacity of dairy plants to 20.7 million kg per day, by 2020
Milk drying capacity will also be enhanced by 200 MTs per day
Plan to expand cattle feed manufacturing capacity, more than four times to 12,000 MTs per day,
by 2020. Total investments envisaged for creating all the required infrastructure would be Rs.
2,600 crores (Rs. 26 billion) till the year 2020.
GCMMF An Overview

Year of Establishment

1973

Members

17 District Cooperative Milk Producers' Unions (16

Members & 1 Nominal Members)
12

No. of Producer Members

3.18 Million

No. of Village Societies

16,914

Total Milk handling capacity per day 16.8 Million litres per day
Milk Collection (Total - 2012-13)

4.66 billion litres

Milk collection (Daily Average 201212.7 million litres

13)
Cattlefeed manufacturing Capacity

5890 Mts. per day

Sales Turnover -(2012-13)

Rs. 13735 Crore (US $ 2.54 Billion)

Table No. 1.1

13

Figure 1.1 Map of India showing locations of different offices of Amul

14

HISTORY OF AMUL

The birth of Amul at Anand provided the driving force to the cooperative dairy movement in the
country. The Kaira District Cooperative Milk Producers Union Limited was registered on
December 14, 1946 as a response to exploitation of marginal milk producers by traders or agents
of existing dairies in the small town named Anand (in Kaira District of Gujarat). Milk Producers
had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand. Often
milk went sour, as producers had to physically carry the milk in individual containers, especially
in the summer season. These agents arbitrarily decided the prices depending on the production
and the season. Milk is a commodity that has to be collected twice a day from each cow/buffalo.
In winter, the producer was either left with surplus / unsold milk or had to sell it at very low
prices. Moreover, the government at that time had given monopoly rights to Polson Dairy
(around that time Polson was the most well-known butter brand in the country) to collect milk
from Anand and supply it to Bombay city in turn. India ranked nowhere amongst milk producing
countries in the world in 1946.
Angered by the unfair and manipulative trade practices, the farmers of Kaira District approached
Sardar Vallabhbhai Patel (who later became the first Deputy Prime Minister and Home Minister
of free India) under the leadership of the local farmer leader Tribhuvandas Patel. Sardar Patel
advised the farmers to form a Cooperative and supply milk directly to the Bombay Milk Scheme.
Instead of selling it to Polson (who did the same, but gave low prices to the producers), He sent
Morarji Desai (who later became Prime Minister of India) to organize the farmers. In 1946, the
farmers of the area went on a milk strike refusing to be further oppressed. Thus, the Kaira
District Cooperative was established to collect and process milk in the District of Kaira in 1946.
15

Milk collection was also decentralized, as most producers were marginal farmers who were in a
position to deliver 1-2 liters of milk per day. Village level cooperatives were established to
organize the marginal milk producers in each of these villages.
The Cooperative was further developed & managed by Dr. V.N. Kurien along with Shri. H.M.
Dalaya. The first modern dairy of the Kaira Union was established at Anand (which popularly
came to be known as AMUL dairy after its brand name). Indigenous R&D and technology
development at the Cooperative had led to the successful production of skimmed milk powder
from buffalo milk the first time on a commercial scale anywhere in the world. The foundations
of a modern dairy industry in India were thus laid since India had one of the largest buffalo
populations in the world.
The success of the dairy co-operative movement spread rapidly in Gujarat. Within a short span
five other district unions Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were
organized. In order to combine forces, expand the market while saving on advertising, and avoid
a situation where milk cooperatives would compete against each other it was decided to set up an
apex marketing body of dairy cooperative unions in Gujarat. Thus, in 1973, the Gujarat Cooperative Milk Marketing Federation was established. The Kaira District Co-operative Milk
Producers Union Ltd., which had established the brand name AMUL in 1955, decided to hand
over the brand name to GCMMF (AMUL).
Dr. Verghese Kurien, the World Food Prize and the Magsaysay Award winner, is the architect of
Indias White Revolution, which helped India emerge as the largest milk producer in the world.
Impressed with the development of dairy cooperatives in Kaira District & its success, Shri Lal
Bahadur Shastri, the then Prime Minister of India during his visit to Anand in 1964, asked Dr. V
Kurien to replicate the Anand type dairy cooperatives all over India. Thus, the National Dairy
Developed Board was formed and Operation Flood Programme was launched for replication of
the Amul Model all over India.
Operation Flood, the worlds largest dairy development programme, is based on the experience
gained from the, Amul Model dairy cooperatives. The facilities at all levels are entirely farmerowned. The cooperatives are able to build markets, supply inputs and create value-added
processing. Thus, Amul Model cooperatives seem to be the most appropriate organizational force
for promoting agricultural development using modern technologies, professional management,

16

and thereby generating employment for the rural masses anderadicating poverty in these
undeveloped areas. India has already demonstrated the superiority of this approach.
Traditionally dairying was a subsidairy occupation of the farmers of Kaira. However, the
contribution to the farmer's income was not as prominent as his attachment to dairying as a
tradition handed down from one generation to the next. The milk yield from animals, which were
maintained mainly on the by-products of the farm, was decidedly low. That together with the
lack of facilities to market even the little produced rendered the scientific practice of animal
husbandry irrational as well as unaffordable. The return on the investment as well as the
prospects of being able to market the product looked very bleak. It was a vicious cycle reinforced
by generations of beliefs.
Member Unions:
1. Kaira District Cooperative Milk Producers' Union Ltd., Anand
2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana
3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar
4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur
5. Surat District Cooperative Milk Producers' Union Ltd., Surat
6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara
7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra
8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad
9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch
10. Ahmedabad District Cooperative Milk Producers' Union Ltd., Ahmedabad
11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot
12. Gandhinagar District Cooperative Milk Producers' Union Ltd., Gandhinagar
13. Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranagar
14. Amreli District Cooperative Milk Producers Union Ltd., Amreli
15. Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar
16. Kutch District Cooperative Milk Producers' Union Ltd., Anjar

17

THREE-TIER AMUL MODEL:

The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy
Co-operative Society at the village level affiliated to a Milk Union at the District levelwhich in
turn is further federated into a Milk Federation at the State level. The abovethree-tier structure
was set-up in order to delegate the various functions; milk collection isdone at the Village Dairy
Society, Milk Procurement & Processing at the District MilkUnion and Milk & Milk Products
Marketing at the State Milk Federation. This helps ineliminating not only internal competition
but also ensuring that an economy of scale is achieved. As the above structure was first evolved
at Amul in Gujarat and the, replicated all over the country under the Operation Flood
Programme, it is known as theAmul Model or Anand Pattern of Dairy Cooperatives.

Responsible for Marketing of Milk & Milk Products.

Responsible for Procurement & Processing of Milk.
Responsible for Collection of Milk Responsible for Milk Production.

18

1. Village Dairy Cooperative Society (VDCS):

The milk producers of a village, having surplus milk after own consumption, cometogether and
form a Village Dairy Cooperative Society (VDCS). The Village DairyCo-operative is the primary
society under the three-tier structure. It has membership ofmilk producers of the village and is
governed by an elected Management Committeeconsisting of 9 to 12 elected representatives of
the milk producers based on the principleof one member, one vote. The village society further
appoints a Secretary (a paidemployee and member secretary of the Management Committee) for

19

management of theday-to-day functions. It also employs various people for assisting the
Secretary inaccomplishing his / her daily duties. The main functions of the VDCS are as follows:
Collection of surplus milk from the milk producers of the village & paymentbased
onquality & quantity.
Providing support services

to

the

members

like

Veterinary

First

Aid,

ArtificialInsemination services, cattle-feed sales, mineral mixture sales, fodder & fodder
seedsales, conducting training on Animal Husbandry & Dairying, etc.
Selling liquid milk for local consumers of the village.
Supplying milk to the District Milk Union.
Thus, the VDCS in an independent entity managed locally by the milk producers andassisted by
the District Milk Union.
2. District Cooperative Milk Producers Union(Milk Union):
The Village Societies of a District (ranging from 75 to 1653 per Milk Union in
Gujarat)having surplus milk after local sales come together and form a District Milk Union.
TheMilk Union is the second tier under the three-tier structure. It has membership of
VillageDairy Societies of the District and is governed by a Board of Directors consisting of 9
to18 electedrepresentatives of the Village Societies. The Milk Union further appoints
aprofessionalManaging Director (paid employee and member secretary of the Board)
formanagement of the day-to-day functions. It also employs various people for assisting
theManaging Director in accomplishing his/ her daily duties.
The main functions of theMilk Union are as follows:
Procurement of milk from the Village Dairy Societies of the District.
Arranging transportation of raw milk from the VDCS to the Milk Union.
Providing input services to the producers like Veterinary Care, Artificial Insemination
services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, etc.
Conducting training on Cooperative Development, Animal Husbandry & Dairying for
milk producers and conducting specialised skill development & Leadership Development
training for VDCS staff & Management Committee members.
Providing management support to the VDCS along with regular supervision of its
activities.
Establish Chilling Centres & Dairy Plants for processing the milk received from the
villages.
20

 Selling liquid milk & milk products within the District

Process milk into various milk & milk products as per the requirement of State Marketing
Federation.
Decide on the prices of milk to be paid to milk producers as well on the prices of support
services provided to members.
3. State Cooperative Milk Federation(Federation):
The Milk Unions of a State are federated into a State Cooperative Milk Federation.
TheFederation is the apex tier under the three-tier structure. It has membership of all
thecooperative Milk Unions of the State and is governed by a Board of Directors consistingof
one electedrepresentative of each Milk Union. The State Federation further appoints aManaging
Director (paid employee and member secretary of the Board) for managementof the day-to-day
functions. It also employs various people for assisting the ManagingDirector in accomplishing
his dailyduties.
The main functions of the Federation are asfollows:

Marketing of milk & milk products processed / manufactured by Milk Unions.

Establish distribution network for marketing of milk & milk products.
Arranging transportation of milk & milk products from the Milk Unions to themarket.
Creating & maintaining a brand for marketing of milk & milk products (brandbuilding).
Providing support services to the Milk Unions & members like Technical Inputs,

management support & advisory services.

Pooling surplus milk from the Milk Unions and supplying it to deficit MilkUnions.
Establish feeder-balancing Dairy Plants for processing the surplus milk of the
MilkUnions.
Arranging for common purchase of raw materials used in manufacture/ packaging of milk
products.
Decide on the prices of milk & milk products to be paid to Milk Unions.
Decide on the products to be manufactured at various Milk Unions (product-mix) and
capacity required for the same.
Conduct long-term Milk Production, Procurement & Processing as well as Marketing
Planning.
Arranging Finance for the Milk Unions and providing them technical know-how.

21

 Designing &providing training in Cooperative Development, Technical & Marketing

functions.
Conflict Resolution & keeping the entire structure intact.
Impact of Amul Model:
The effects of Operation Flood Programme are more appraised by the World Bank in its recent
evaluation report. It has been proved that an investment of Rs. 20 billion over 20 years under
Operation Flood Programme in 70s & 80s has contributed in an increase of Indias milk
production by 40 Million Metric Tonne (MMT) i.e. from about 20 MMT in pre- Operation Flood
period to more than 60 MMT at the end of Operation flood Programme. Thus, an incremental
return of Rs. 400 billion annually have been generated by an investment of Rs. 20 billion over a
period of 20 years. This has been the most beneficial project funded by the World Bank
anywhere in the World. One can continue to see the effect of these efforts as Indias milk
production continues to increase and now stands at 90 MMT. Despite this fourfold increase in
milk production, there has not been drop in the prices of milk during the period and hascontinued
to grow.
Due to this movement, the countrys milk production tripled between the years 1971 to 1996.
Similarly, the per capita milk consumption doubled from 111 gm per day in 1973 to 222 gm per
day in 2000. Thus, these cooperatives have not just been instrumental in economic development
of the rural society of India but it also has provided vital ingredient for improving health &
nutritional requirement of the Indian society. Very few industries of India have such parallels of
development encompassing such a large population.
These dairy cooperatives have been responsible in uplifting the social & economic status of the
women folk in particular as women are basically involved in dairying while the men are busy
with their agriculture. This has also provided a definite source of income to the women leading to
their economic emancipation.
The three-tier Amul Model has been instrumental in bringing about the White Revolution in the
country. As per the assessment report of the World Bank on the Impact of Dairy Development in
India, the Anand Pattern has demonstrated the following benefits:

It has multi-dimensional impacts.

22

Importance of getting government out of commercial enterprises.

Power & problems of participatory organisations.

The Amul brand

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50
sales offices spread all over the country, more than 5,000 wholesale dealers and more than
7,00,000 retailers.
Amul became the world's largest vegetarian cheese and the largest pouched-milk brand.
AMUL is also the largest exporter of dairy products in the country. AMUL is available today in
over 40 countries of the world. AMUL is exporting a wide variety of products which include
Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee)
and Indigenous Sweets. The major markets are USA, West Indies, and countries in Africa, the
Gulf Region, and SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China,
and others such as Mauritius, Australia, Hong Kong and a few South African countries. Its bid to
enter the Japanese market in 1994 did not succeed, but it plans to venture again.
In September 2007, Amul emerged as the leading Indian brand according to a survey by
Synovate to find out Asia's top 1000 Brands.
Distribution Network:
Amul have efficient distribution network. It follows downstream channel of distribution.
Amul manufactures Ice-cream in Gujarat. The stock goes to cold storage from Gujarat. Cold
store manager distributes stock in various warehouses across India. In Mumbai, Amul has its
warehouse in Andheri. From warehouse stock goes to different distributors. And then distributor
supplies stocks to retailers, caterers, hotels etc., and then finally stock reaches to the end
consumer.

23

24

Marketing Concept: 7 Ps of Amul:

1.Product:

25

26

2. Place: Amul in Mumbai has 5 zone offices and the main office is situated in Fort. All the
activities are guided from there. The zone office undertakes the charge of distributing the stocks
to the stockiest and super stockiest and from there it is transferred to the local distributors.
Example: - Thane depot / zone are the biggest consumer of Curd and probiotic Lassi. Western
line is the biggest consumer of yogurt. Amul has launched a new concept call Amul preferred
outlets which is just like an experience zone wherein you will get all the products of Amul at one
go.

27

3. Price: Amuls mission is to provide products which are not only high in quality but are
incredibly affordable to people. They always talk about value for money. Hence all the products
are placed in a manner in which no competitors can enter. Amul Curd is priced at Rs. 22 per
200gms where as other competitors competing in the same segment is charging Rs 25 per
200gms for the same product.
4. Promotion: Amul does not believe in investing in advertisements since it believes in
traditional methods. It has been issuing topical which is based on social issues. But times are

28

changing and Amul has taken a big step and has started investing in Advertisements and also has
launch discount coupons so as to generate demand in the market. The following are the topical

5. People: Amul has a rich cultural back ground. The people at Amul are proud of being a part of
the company. The employees are always motivated to work hard and always spend time in the
market and try to understand the problems. The founder of Amul movement is Dr. Kurien who
has dedicated his life to bring the white revolution in the country. He is known as the father of
white revolution. Customer services are important for them and hence try to solve the complaints
as early as possible.
6. Process: The process of solving complaints with respect to product damage is 21 days. The
response time is slow but they are trying to improve on that part. The service to the customers is
29

the sup of the company. They have one of the best distribution channels in the country. So they
are trying to reach more and more customers and try to solve their complaints.
7. Physical evidence: In Mumbai their main office is situated in fort at Rampart house. From
their all the planning and all paper work is carried out.

30

Source: http://www.amul.com/m/about-us

31

Sales Turnover
Sales Turnover

Rs (million)

US$ (in million)

1994-95

11140

355

1995-96

13790

400

1996-97

15540

450

1997-98

18840

455

1998-99

22192

493

1999-00

22185

493

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

52554

1325

2008-09

67113

1504

2009-10

80053

1700

2010-11

97742

2172

2011-12

116680

2500

2012-13

137350

2540

2013-14

181434

3024

32

Area of operation
Besides India, AMUL has entered overseas markets such as Mauritius,UAE, USA, Bangladesh, Australia, China,
Singapore, Hong Kong and a few South Africa nations. 0ther potential market being considered includes srilanka.
Some Facts
Members union:

13 district cooperative milk producers

No. of Producer Members: 2.79 million

No. of Village Societies: 13,328
Total Milk handling capacity: 12.22 million litres per day
Milk collection: 3.50 billion litres
Milk collection: 10 million litres
Milk Drying Capacity:626 Mts. per day
Cattlefeed manufacturing Capacity: 3500 Mts per day
GCMMF is largest food products marketing organization of the country with annual turnover of
Rs 18000 crore during the year 2013-14

33

ACHIEVEMENTS:
Amul :Asias largest dairy co-operative was created way back in1946 to make the milk producer selfreliant and conduct milk- business with pride.
Amul has always been the trend setter in bringing and adapting the most modern technology to door
steps to rural farmers.
Amul created history in following areas:
a)First self motivated and autonomous farmers organization comprising of more than
5000000 marginal milk producers of Kaira District.
b) Created Dairy co-operatives at village level functioning with milk collection centres owned by them.
c) Computerized milk collection system with electronic scale and computerized accounting
system.
d)The first and only organization in world to get ISO 9000 standard for its farmers co-operatives.
e)First to produce milk from powder from surplus milk .Amul is the live example of how co-operation amongst
the poor marginal farmers can provide means for the socio-economic development of the under
privileged marginal farmers.
Amul in abroad:
Amul is going places. Literally. After having established its presence in China, Mauritius
and Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), Indias
largest milk cooperative, is waiting to flood the Japanese market. Then, GCMMF is also looking at Sri Lanka as
one of its next export destinations. Amul products are already available on shelves across several
countries, including the US, China,Australia, West Asian countries and Africa.GCMMF recorded
a turnover of Rs 2,922 crore last fiscal. Its products include pouch milk,ultra heat treated (UHT)
milk, ice-cream, butter, cheese and buttermilk.

34

AWARDS:Amul a co-operative society and its co-operation has led many different awards in itsfavour. Magsaysay award for
community leadership presented in manila. Philippines to Shri Tribhuvandas Patel, Shri D N Khurody and Shri V.
Kurien 1964: Padmabhusanaward given to Shri T.K. Patel
1965:Padmshriawarded was given to V. Kurien, general manager, by the presidentof India.
1987: Best Productivityawarded by national productivity council for the year 1985-86awarded to Amul
dairy.
1988: Best Productivityawarded for the second successive year 1986-87 by thepresident of India, Mr. R.
Venkatrao to kaira union.
1993:ICA Memenoto towards genuine and self sustaining cooperative worldwide ICA regional office for Asia
and pacific, New Delhi, 1996.
1999: G.B.Birla award. Moreover the Amul union has achieved the prestigious ISO9001-2000 and HACCP
Certificate and effects are got to obtain ISO 14000.
1999: Best of All" Rajiv Gandhi National Quality Award for the year,
2003: The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the top scorer in the service
category of the prestigious IMC Ramakrishna Bajaj National Quality Award.
2006-07: GCMMF has bagged award for excellent performance in exports of dairy products from Agricultural
and Processed Food Exports Development Authority (APEDA).
2007: Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit
2009 : National Energy Conservation Award by ministry of power
2011 Dr. V. Kurein Honoured with life time achievements awards by CNN -IBN
2013 : Care Awards Health Care Category sponsored by Aaj Tak TV Today Networks
2013 : Amul wins AIMA brand performance award
2014 : Amul wins world dairy innovation Awards

35

Introduction of Topic Topic:

Market Analysis & Impact of Localized Promotional Activities of Amul Pro for the
awareness Of Consumers.

Details of Product:

Product Details
Product Name
Description
Packing

Amul PRO
Malt Based Food
500g Glass Cube Jar: The glass cube jar is a unique pack in the category,
giving Amul PRO a distinct advantage of standing out of the clutter on retail
shelves.
500g Refill: Amul PRO is also available in an attractive 5 panel 500g Refill

Product Specifications
Composition
Nutritional
Information

Ingredients : Malt Extract, Sugar,Milk solids, Cocoa solids,

Caramel,Vitamins,Minerla,Permitted emulsifiers(E322,E476), Raiding
agent (E500(ii)), DHA and salt.
Nutritional information (Approx. values)
Energy, kcal

392

Energy from Fat, kcal

19.8

*Source of energy
Fat, g

2.2

Carbohydrate, g

85.0

Added Sugar, g

32.7

Dietary Fibre, g

0.68

*For growth and maintenance of body

Protein, g

8.0

*Boost immune and nervous system function

Vitamin B1 (Thiamin), mg

0.75

Vitamin B2 (Riboflavin),mg

2.51

36

Vitamin B3 (Niacin), mg

5.21

Vitamin B5 (Pantothenic acid), mg

5.6

Vitamin B6 (Pyridoxine), mg

7.1

Vitamin B12 (Cynacobalamin), mcg

9.73

Vitamin B7 (Biotin), mcg

30.0

Copper, mg

0.44

Selenium, mcg

32

Zinc, mg

2.2

*Production of red blood cells

Vitamin B9 (Folic Acid), mcg
*For normal vision
Vitamin A, mcg

244.0
935

*Keeps you mentally sharp, alert and physically active

Iron, mg

8.02

Iodine, mcg

137

*Development of bones & teeth

Calcium, mg

186

Phosphorus, mg

175

Vitamin D, mcg

6.89

*Fight infections and protects body cells from damage

Vitamin C, mg

39.2

Vitamin E, mg

3.7

Manganese, mg

0.49

*Body fluid maintenance

Sodium, mg

173

Potassium, mg

540

Magnesium, mg

21

*Development of Brain
DHA, mg

3.0

*Known functions of nutrients

Shelf Life
Storage condition

Amul PRO is best before 12 months from the date of manufacture when
stored in a cool,dry and hygenic place.
Ambient

37

Product Features
Amul PRO is a malt based milk additive, which not only enhances milks nutritive
value but also makes milk a very tasty drink for people of all ages, especially kids, who need milk and nutrition for
healthy growth. It comes from the House of Amul, the brand which is known all over for providing quality
products at value for money price.

Key product attributes of Amul PRO are as follows:

Whey Protein: Muscle building & Immunity Whey Protein is the purest and most essential form of protein. It is
easy to digest and helps muscle building and nurturing growth.
Why Protein is often referred to as Fast Protein, provides quick nourishment to muscles,
helping your child strengthening the immunity and stay healthy.

DHA:Brain Development
Docosahexaenoic Acid (DHA) is an essential fatty acid required for optimal development and function of the
brain, eyes and central nervous system of a child. It plays an
important role in enhancing your childs immunity by protecting it from
allergies like Asthma.

27 Essential Nutrients: Complete Wellness

Amul PRO contains 27 essential nutrients (proteins, vitamins and minerals) that help in boosting immune system
enhance metabolism and nervous system functions and helps children be mentally sharp and physically agile.

Product Application
It's a milk additive, which means it can be consumed by adding directly to milk. It is easy to make and tasty to
drink and is suitable for people across age groups, particularly kids who require adequate nourishment for proper
growth Amul PRO can be consumed with both hot as well as cold milk

SIGNIFICANCE OF THE STUDY:

38

As health drink Amul Pro is newly launched product, so to make the awareness among the customers of the
product the different promotional activities are to be executed in the target areas of Ahmadabad city. It is used for
the study for the analysis of the market and customers towards the product.. It is important for the study of
improvement for the new established market development and analyses the market strategy for the developed the
new product and market expansion of the various product of AMUL milk product

1.3 Definition and purpose of the project:

The objective of the project is to create a space for Amul Pro in the Retail Market.
Management objectives are:
1) To emphasize difference between products of Amul and its competitors.
2) To promote Amul Pro in the Retail Chain.

Purpose of the objectives:

Amul had Launched Amul Pro in Pan India. And they want to capture Retailers & Consumers
for the sale of Fresh products. Hence, it has become imperative to find out average daily
consumption of these products. So, Amul wanted to check the feasibility and gauge the potential
market by promoting and penetrating Amul Pro in the retail market. Also innovate and
understand new marketing strategies to promote new product in the market for end user.

39

1.4Scope and objectives of the project:

Research Objective:
1) To study the product Amul Pros Market
2) To increase the market share of Amul Pro product in Chembur region of Mumbai.
3) To analyse the problem faced by distributor and retailer and solve their problems.
4) To understand the strategy adopted by Amul as well as Competitor

1.5 Salient Contributions of the project:

Promoted and Created Space for Amul Pro in the Retail Market.
Created awareness among Consumer & Retailer for the Product.
The project offers the opportunity to understand marketing strategy.
Create opportunity and reach target audience to promote and sell the new product.
The project provides insights about how the retail channel works, what are competitors
activities to trigger their sales.

1.6 Outline of the project report:

40

Introduction:It includes company profile of Amul and its history. It also gives gist about Amuls three tier
model and its impact.
Literature:It includes the theoretical frame work. It includes articles related to the Food Industry, Dairy
Industry.
Research Methodology:The research design specifiesthe method & procedure to conduct a particular research. In
above project the research methodology used is Descriptive Research.
Result & Interpretations:The results & interpretations of the study highlighted in the project reflect various factors
which are considered by Observation Method.
Conclusion:The conclusion drawn is to attract customer and retain them so that loyalty maintain in future
as well.
Limitations of the Project:Limitations of the project are based upon the survey & sampling performed.
Recommendations:Specific recommendations were submitted to the Territory sales manager during the project
& most of them were approved.

2. Literature Review

41

2.1 Theoretical framework, background theory:

About FMCG:
Products which have a quick turnover, & relatively low cost are known as Fast Moving
Consumer Goods (FMCG). They do not require a lot of thoughts, time & financial investment to
purchase. FMCG products are those that get replaced within a year. Examples of FMCG
generally include a wide range of frequently purchased consumer products such as toiletries,
soap, cosmetics, bulbs, batteries, paper products & plastic goods. FMCG may also include
pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper &
chocolate bars.
FMCG Sectors in India:

4th largest in the economy

Characterized by intense competition between 3sets of players
Global players
Large Indian players
Regional players

Well established distribution networks, as well as intense competition between the organization
& unorganized segments are the characteristics of this sector. FMCG in India has a strong &
competitive MNCs presence across the entire value chain.
The middle-class & the rural segments of the Indian population are the most promising market
for FMCG & give brand makers the opportunity to convert them to branded products. Most of
the product categories like jams, toothpaste, skin care, shampoo, etc., in India, have low per
capita consumption as well as low penetration level, but the potential for growth is huge.
The Indian Economy is surging ahead by leaps & bounds, keeping pace with rapid urbanization,
increased literacy levels, & rising per capita income. The big firms are growing bigger & small
time companies are catching up as well. According to the study conducted by AC Nielsen, 62 of
the top 100 brands are owned by MNCs & the balance by Indian Companies. 15 companies own
these 62 brands & 27 of these are owned by Hindustan Unilever, ITC is at number 3 followed by
Nestle, Parle Agro takes 5th place, followed by Britannia Industries (6th Place),
Marico (7th Place), P&G (8th Place) & Godrej (9th Place). Personal care, Cigarettes & Soft-Drinks
are the 3 biggest categories in FMCG. Between them, they account for 35 of the top 100 brands.

42

THE TOP-10 COMPANIES IN FMCG SECTOR

Sr.No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

COMPANIES
Hindustan Unilever Ltd.
Colgate-Palmolive
ITC (Indian Tobacco Company)
Nestle
Parle Agro
Britannia Industries
Marico
Procter & Gamble Hygiene & Health Care (P&G)
Godrej Group
Amul

There is a huge potential of growth for all the FMCG companies as the per capita consumption
of almost all products in the country is amongst the lowest in the world. Again the demand or
prospect could be increased further if these companies can change the consumers mindset &
offer the new generation products. Earlier, Indian Consumers were using non-branded apparel
but today, clothes of different brand are available & the same consumers are willing to pay for
more branded quality clothes. Its the quality, promotion & innovation of products which can
drive many sectors.

NUTRITION OF INDIA
After 4 years of age, a child's energy needs per kilogram of bodyweight are decreasing but the actual amount of
energy (calories) required increases, as the child gets older. From 5 years to adolescence, there is
a period of slow but steady growth. Dietary intakes of some children may be less than recommended for iron,
43

calcium, vitamins A and D and vitamin C, although in most cases -as long as the energy and protein intakes are
adequate and a variety of foods, including fruit and vegetables, are eaten-deficiencies are
unlikely. Regular meals and healthy snacks that include carbohydrate-rich foods, fruits and
vegetables, dairy products, lean meats, fish, poultry, eggs, legumes and nuts should contribute to
proper growth and development without supplying excessive energy to the diet. Children need to drink plenty
of fluids, especially if it is hot or they are physically active. Water is obviously a good source of liquid and supplies
fluid without calories. Variety is important in children's diets and other sources of fluid such as milk and milk
drinks, fruit juices can also be chosen to provide needed fluids. In India, each State is practically
equivalent to a country with its specific socio-economic level, different ethnic groups, food
habits, health infrastructures and communication facilities. Thus, the nutritional status of the
population shows significant variation between states since it results from a varying combination
of factors.
In the last 20 years, there has been an improvement in the nutritional status of the Indian
population. This improvement results from not only changes in food intake but also socioeconomic factors, increase availability of potable water, lower morbidity and improvement of health facilities.
In children under five years of age, the marked improvement in nutritional status is shown by the
reduction of the prevalence of underweight from 63%, in the 1975-79 period to 53% in the 198890 period. The under-five mortality rate (U5MR), an important indicator of the socio-economic
development, and health and nutritional status of a society, declined from 282% in 1962 to 115
in1994. However, a multitude of infectious diseases such as respiratory and intestinal infections
as well as malaria remain the main cause of death in children under five, with malnutrition being
an aggravating factor. Measles, tetanus, typhoid and hepatitis are also frequent causes of death
during infancy and child hood. In the last 20 years, there have been no significant changes in
patterns of dietary intake. Cereals remain the staple food in India providing most of the energy
intake. Since the seventies the consumption of foods like pulses, roots and tubers has fallen,
while those of other foods like sugar, "jaggery" (unrefined brown sugar), fats and oils and green
leafy vegetables have slightly increased. The average Indian diet remains largely deficient in
green leafy vegetables, meat, and fish, milk and milk products. Moreover, it also remains
deficient in some micronutrients such as vitamin A, iodine and iron. Adolescents who are
undergoing rapid growth and development are one of the nutritionally vulnerable groups who
have not received the attention they deserve. In under-nourished children rapid growth during
adolescence may increase the severity of under-nutrition. Early marriage and pregnancy will
perpetuate both maternal and child under-nutrition. At the other end of spectrum among the
affluent segment of population, adolescent obesity is increasingly becoming a problem.
Pre-school children constitute the most nutritionally vulnerable segment of the population and
their nutritional status is considered to be a sensitive indicator of community health and nutrition.
Over the last two decades there has been some improvement in energy intake and substantial
reduction in moderate and severe under- nutrition in pre- school children
Asia has the largest number of malnourished children in the world. The Double Burden of
Malnutrition in Asia was inspired by the massive challenge that this situation currently poses for
Asia. It describes the main driving forces behind the groundswell of under-nutrition, while
shedding light on the emerging double burden of co-existing underweight and overweight, and
the linkages between these two different forms of malnutrition. There are two types of nutritional problems
- one is under-nutrition and another is over-nutrition. Emphasis should be given not only to food but also
44

to care and health, the reason being that even if children in the age group of 0-2 years are able to
get food, they may have mothers who do not have enough time to pay attention to their children.
Similarly, if there is no health-guaranteeing environment, and children suffer from diarrhoeal
diseases, no amount of food will help prevent malnutrition.
Over-nutrition, on the other hand, means either too many calories or the wrong types of calories
such as saturated fats or highly processed sugar that lead to obesity, vascular diseases, etc. Many
developing countries have under-nutrition and those in Europe and North America have overnutrition problems. There is this in-between category with countries like India that still have an
enormous amount of under-nutrition and significant over-nutrition problems. In India, for
instance, around 50 per cent of its children under the age of five are undernourished or
malnourished. But in urban areas, the over-nutrition problems shooting up, thanks to the change
in lifestyle and food habits. As a result, health systems are under huge stress. When there is
malnutrition, there is a higher level of lower birth rate. One in three babies born in India weigh
significantly low because their mothers are undernourished. Some low-weight babies die and
some survive and those who survive adapt to malnutrition and scarcity. That is, the biological
adaptation is programmed to maximize every calorie the body gets. This adaptation that helped a
malnourished baby survive suddenly turns out to be a mal-adaptation when the baby becomes an
adult. The adult, who was malnourished in the past, gains extra weight even when he takes only normal amount of
food because of the biological adaptation.

AMUL PRO
Amul PRO is a malt based milk additive, which not only enhances milks nutritive value but also
makes milk a very tasty drink for people of all ages, especially kids, who need milk and nutrition
for healthy growth. It comes from the House of Amul, the brand which is known all over for
providing quality products at value for money price.
45

Key product attributes of Amul PRO are as follows:

Whey Protein: Muscle building & Immunity
Whey Protein is the purest and most essential form of protein. It is easy to digest and helps
muscle building and nurturing growth. Why Protein is often referred to as Fast Protein, provides
quick nourishment to muscles, helping your child strengthening the immunity and stay healthy.
DHA: Brain Development
Docosahexaenoic Acid (DHA) is an essential fatty acid required for optimal development and
function of the brain, eyes and central nervous system of a child. It plays an important role in
enhancing your childs immunity by protecting it from allergies like Asthma.
27 Essential Nutrients: Complete Wellness
Amul PRO contains 27 essential nutrients (proteins, vitamins and minerals) that help in boosting
immune system enhance metabolism and nervous system functions and helps children be
mentally sharp and physically agile.

BOURNVITA
Bournvita, previously called Bourn-vita, is the name of a brand of malted and chocolate malt
drink mixes sold in Europe and North America, as well as Nepal, India, Nigeria, Ghana, South
Africa, Benin and Togo, and manufactured by Cadbury. Bournvita was discontinued in the UK
market in 2008. The drink was named by Cadbury which was derived from Bournville, the
model village which is the site of the Cadbury factory (Bourn + Vita). It was first sold in 1949

Comparing Amul Pro with Bournvita:

46

AMUL PRO:

It contains DHA advantage.

With power of vitamin D and calcium
Whey protein which helps for bodybuilding.
Goodness of milk.

BOURNVITA:

47

 Dha only for age group of 5yrs

Similarly whey protein also for the age group of 5yrs.
Prices of the jar as well as the pack is very high as compared with the
Amul pro.
Whereas Amul pro is for every age group right from the children up to
grandfather.

2.2 Review of existing literature:

Article 1.Sleuths uncover malpractice in sale of dairy products

48

Legal metrology officials on Monday conducted surprise checks on dairy product processing and
packaging units across the state and registered 24 cases against owners or managers of the
companies for short supply of products.
During the inspections, legal metrology officials found that packaged commodities, including
milk, curd and ice creams, were less than the quantity printed on the packaging. "We have
registered cases against 24 companies, including Heritage Milk Dairy, Jersey Milk Dairy,
Tirumala Milk Dairy, Shakunthala Milk Dairy, Kurnool Milk Dairy and Vardhannapet Swakrushi
Womens Dairy," legal metrology controller S Gopal Reddy said.
Of the 24 cases, nine were registered in Hyderabad, four in Eluru, three in Kurnool, two each in
Vishakhapatnam, Vijayawada and Karimnagar, and one each in Nizamabad and Warangal. On
noticing any malpractices, consumers are advised to contact legal metrology sleuths on the toll.

Article 2.Amul increases milk prices by Rs 2/litre in Delhi-NCR

region
New Delhi, May 9: Dairy major Amul has increased milk prices in the Delhi-NCR region by Rs
2 a litre from today due to increase in cost of milk production. It is also considering raising
prices in other parts of the country. "In recent past, there has been a substantial increase in raw
material cost of cattle feed and labour costs, and this has led to increase in cost of milk
production," Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells milk under
brand Amul, said. "We have increased the milk prices by Rs 2 litre across all variants in DelhiNCR region," GCMMF Managing Director R S Sodhi told PTI. Sodhi said the company is also
considering increasing milk prices in other markets including in Uttar Pradesh and Kolkata. Last
week, the company had increased milk prices in Gujarat and Mumbai, citing the same reason.
After this recent increase, the Amul Diamond (premium quality) will now cost Rs 50 per litre
from Rs 48 per litre earlier, while Amul Gold (full cream milk) price has been raised to Rs 48 per
litre. Amul Taaza (toned milk) would now cost Rs 38 a litre. The price of Amul Slim n Trim milk
which is available in 500 ml and lower volume pouches has been increased to Rs 17 per half
litre. Amul assured that benefits from recent price hike will be passed on to the farmers. "The
price hike will flow back to farmers directly and not in the pockets of middlemen," the company
said. The Gujarat-based dairy firm underlined that for every rupee taken from customers, almost
80 paise is paid back to the diary farmers who, it said, are the actual owners. It is the best
consumer to producer price ratio in this part of the world, it claimed. Amul is a major supplier of
milk to the national capital region, sells about 26 lakh litres per day. PTI JTR MJH TVS

Article 3. After Amul, Mother Dairy hikes milk prices by Rs 2/litre NEW DELHI: Leading milk supplier Mother Dairy will increase milk prices by Rs 2 per litre in
Delhi-NCR from tomorrow due to increase in procurement cost.
49

Mother Dairy, the largest milk supplier in Delhi-NCR with sales of about 30 lakh litres per day,
has increased the rates just two days after Amul hiked the its price by a similar amount.
"Mother Dairy raises its milk prices in Delhi-NCR for all its variants with effect from May 12,
2014," the company said in a statement.
Full cream milk will be sold at Rs 48 per litre from tomorrow as against Rs 46 per litre, while
price of toned milk has been raised to Rs 38 per litre from Rs 36.
Prices of double toned milk has been hiked to Rs 34 from Rs 32 per litre and rate of token milk
has been revised to Rs 36 per litre from Rs 34 per litre.
Mother Dairy had last increased the milk prices in Delhi-NCR on February 1 this year.
"The company is compelled to raise the retail prices because of the ongoing rise in the prices of
raw milk in the last few months coupled with the need to ensure availability of milk in the
market," the statement said.
The company said it has always attempted to strike a balance between the consumers' interest
and the milk producers' interest and believes in giving remunerative price to the farmer to ensure
sustainability of milk farming.
The company said it passes on 80 per cent of the total sales proceed towards the procurement on
milk.
Amul, a major supplier of milk to the national capital region, sells about 26 lakh litres per day.
Kwality Ltd has also decided to increase the price by Rs 2 per litre from Wednesday. It sells
about 3.5 lakh litres per day in the national capital region.

Article 4. Amul posts 32% jump in turnover to Rs 18,143 crore in

FY14 -

50

NEW DELHI: Dairy major Amul reported a sharp 32 per cent growth in turnover to Rs 18,143
crore during 2013-14 on the back of strong sales.
Gujarat Co-operative Milk Marketing Federation (GCMMF), which sells milk products under the
Amul brand, had a turnover of Rs 13,700 crore in 2012-13.
"There was substantial increase in sales in both volume and value terms which was the main
driver of our growth," GCMMF Managing Director RS Sodhi told PTI.

Article 5. Amul follows Modi, to set up Rs 200 crore dairy plant in

Varanasi VADODARA: Asia's biggest milk brand, Amul, has followed BJP's PM candidate Narendra
Modi to Varanasi. Palanpur-based Banas Dairy, a member the union of the Gujarat Cooperative
Milk Marketing Federation that markets Amul, will set up a dairy processing plant in the holy
city. The plant will initially process five lakh litres per day with the capacity to double the
production.
Banas Dairy, Asia's biggest milk union, will invest Rs 200 crore to set up this plant, its chairman
Parthi Bhatol told TOI on Wednesday. "We've completed the process with UP State Industrial
Development Corporation Ltd for land acquisition at Karkhianv industrial area near Varanasi
airport," Bhatol said.
Interestingly, Uttar Pradesh chief minister Akhilesh Yadav, whose Samajwadi Party professes
diametric opposition to Modi, has offered Amul 30 acres land in Varanasi which, in all
likelihood, will be represented by the Gujarat CM. In fact, Yadav has helped Amul increase its
footprint in UP, which is India's largest milk producing state, by facilitating land in Kanpur and
Lucknow as well, where Banas Dairy has started work to set up dairy plants.

After the Akhilesh government invited Amul for dairy development in UP, Banas Dairy also
acquired 40 acres land in Kanpur and another 20 acres land in Lucknow to set up dairy
processing plants, each with Rs 200 crore investment. Like the Varanasi plant, both Kanpur and
Lucknow plants will have the capacity to process five lakh litres per day, expandable to 10
LLPD.
51

"We will start with milk, curd and buttermilk packaging, and later add ice cream and other dairy
products," said Bhatol.
Gujarat Cooperative Milk Marketing Federation MD R S Sodhi said, "Amul is the most preferred
milk brand in all milk markets in UP including Varanasi, which consumes 75,000 litres milk per
day. Since Banas Dairy began procuring milk locally in UP based on Amul model of cooperatives, farmers in UP are getting better remuneration for their milk.

Article 6. Amul to invest Rs 4,000-4,500 crore in two years on

expansionNEW DELHI: Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells products
under Amul brand, is going to invest around Rs 4,000-4,500 crore in next two financial years for
processing higher quantity of milk.
GCMMF has already increased its milk processing capacity to 230 lakh litres per day from 170
lakh litres per day in last three years.
"We are looking to invest around Rs 4,000-4,500 crore by the end of 2015-16, mainly on setting
up new milk processing plants and other dairy products processing units," GCMMF Managing
Director R S Sodhi told PTI.
As per expansion plans, the company has proposed to set up 11 new milk processing plants
across the country, including five in Gujarat, three in Uttar Pradesh, two in Haryana and one in
Kolkata, he said.
In Haryana, the company will set up a plant each at Rohtak and Faridabad of 10 lakh litres day
and 15 lakh litres per day respectively while it will put in place in Uttar Pradesh a plant each of 5
lakh litres per day at Lucknow, Kanpur and Varanasi.
Besides these plants, the company will also establish five milk processing plants of two lakh
litres per day at Saurashtra region in its home state Gujarat.
"The aim is to with increasing milk procurement, raise the milk processing capacity and explore
new markets," Sodhi said.
Other than milk, Amul has plans to set up a cheese factory and a milk powder plant of 120 tonnes
per day at its Banas cooperative dairy in Palanpur in Gujarat.
Sodhi added that work on all these proposed new units has already been started.
52

For this financial year, the cooperative plans to achieve a turnover of Rs 21,600 crore.
Amul had reported a sharp 32 per cent growth in turnover to Rs 18,143 crore during 2013-14
from Rs 13,700 crore in 2012-13 on the back of strong sales.
"There was substantial increase in sales in both volume and value terms in 2013-14 which was
the main driver of our growth," Sodhi said.
Amul is at present associated with about 33 lakh farmers and has around 50 milk processing
units. Besides milk, the company deals in all other major dairy products like butter, cheese,
paneer, ice-cream and others.

Article 7. Dairy farms take to tech boost

PUNE: From fully automated plants to tagging cows and buffaloes to playing music for better
yield and developing cellphone apps to managing cattle and milk production, dairy owners in the
53

state are becoming innovators.

In addition, tracking technologies for cattle and transport vehicles have brought a dose of
modernity to traditional dairy farms.
Both small and big dairies in Maharashtra are looking at raising their production, cutting down
losses and increasing their client base.
After Amul tagged each milk-yielding animal on their Anand farm using radio frequency
identification (RFID), Chitale used the same technology at their Bhilawdi farm in Sangli to tag
and track each animal and store the information on their private servers. Gowardhan Dairy in
Manchar near Pune also adopted RFID to identify their cattle by numbers.
Vishwas Chitale, founder and partner of Chitale Dairy, terms it as the 'cow-to-cloud'
phenomenon, where all information about the cattle is stored on the cloud. "Technology reduces
the number of people required to look after 10,000 cattle to only five," said Chitale. Earlier, a
team of 20 to 40 people were required.
Information such as the animal's age, health, feeding habits, milk production is stored in the
dairy-owned central server or data centre. This information is used to give out inputs on the
farmer's hand-held devices, with in-house cellphone applications. Farmers get daily updates
about what and when to feed a cow and if a cow is unwell, the medicine that should be
administered.
"We have used RFID on cattle in our Gujarat farms, but we haven't yet applied this in our
Maharashtra facility in Virar," said RS Sodhi, managing director at Gujarat Cooperative Milk
Marketing Federation, popularly known as Amul.
Chitale and Amul have also started programmes for selective mating of cows to minimize the
shortcomings. While Amul has a 'fertility improvement programme' in Anand, Gujarat, Chitale
has a 'genetic mating system' in place in Bhilawdi.
The programme has increased the yield drastically, dairy owners said. India's national average
for milk production is 800 litres per lactation for a cow or buffalo, less than their counterparts in
the US or the UK, where the averages are 8,000 litres and 1,200 litres, respectively.
"Acceptance of technology is necessary to increase yield and to balance costs and quality," said
Chitale. "We have to make the business of milk and dairy seem lucrative for youths, hence cost
effectiveness is critical for business too," added Sodhi.
There is a demand for better quality and value-added products like flavoured milk, flavoured
cheese, probiotics and nutraceuticals in India, since people have been observing this in foreign
markets, said Mahesh Israni, chief marketing officer at Gowardhan and 'Go', Parag Milk Foods.
They procured technology from Germany for cheese production and got personnel trained in
breeding and maintenance of cattle at the farm level. "It is cost-effective being able to churn out
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40 tonne cheese a day. We are able to provide cheese of any kind and on demand without
incurring losses. The data for every client is stored in our client relationship management
systems and we are able to target customers better."
Cattle are being looked after by nutritionists, selectively fed, their health and life-cycle
monitored. Soothing music and comfortable mats help produce maximum yield Automated
systems like the rotary parlour at the Gowardhan facility collect milk.
Cows get up on a platform, wait to be miked and get off after the process is over. "Cows are not
hurt, and the machine has a massage setting and can detect if the cow needs a massage," added
Israni.
Traditional dairies have started venturing into nutraceuticals food - products mixed with
nutrients, baby food and other fortified milk products. They are looking for companies who can
provide the technology which has led to many small companies and startups joining the
bandwagon.
Navi Mumbai-based Promethean Power has come up with a thermal-battery based technology
which cuts down the need for using generator backups at storage facilities.
"Our technology helps keep the milk from spoiling, keeps it chilled at below 4 degrees for more
than two hours, if there is no power," said its managing director Kaushlesh Varshney.
HRS Process Systems provides dairies the technology for energy-efficient heating systems. V
Gokuldas, managing director at HRS Systems, said their thermal processing units and Ecoflux
corrugated heat exchangers help save 60% energy. "The most energy spent in dairy plants is in
the heating and cooling processes," he added.

Article 8. Amul MD to join France's Lactalis group

Vadodara/Anand: After working with the co-operative sector for 22 years, Rahul Kumar,
managing director of the Kheda District Co-operative Milk Producers Union Limited
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(KDCMPUL) popularly known as Amul Dairy is all set to join world's largest dairy group - Le
Groupe Lactalis.
Kumar, who has served as managing director of Amul Dairy for eleven years, is set to head
Indian operations of France-based Le Groupe Lactalis, which has recently entered India's dairy
market. While Kumar did not comment on the development, Amul Dairy's chairman Ramsinh
Parmar confirmed that the dairy co-operative's managing director has informed him about his
decision. "He has intimated me that he would like to take a new job," Parmar told TOI.
Before joining Amul Dairy as managing director, Kumar had worked with the Gujarat Cooperative Milk Marketing Federation (GCMMF) that markets brand Amul.

Article 9. Amul model reaches Bapu's Porbandar

VADODARA: From the land of Sardar Patel, Gujarat's famed Amul pattern of co-operatives has
now reached Porbandar the birthplace of Mahatma Gandhi. Milk producers of Porbandar
district have started Porbandar District Co-operative Milk Producers Union Limited
(PDCMPUL), which they have named Sudama Dairy.
Based on Amul model of co-operatives, Sudama Dairy, which became functional last week, has
joined the Amul family by becoming the 18th member union of Gujarat Cooperative Milk
Marketing Federation (GCMMF) - the apex body of all district dairy unions of Gujarat.
It was in 1946 that establishment of Amul Dairy in the greater Kheda district had paved the way
for White Revolution in India, which was inspired by Iron Man of India - Sardar Vallabhbhai
Patel.
Later, cooperative milk unions were established in other districts of Gujarat. In 1973, late Dr
Verghese Kurien, the father of White Revolution, federated six milk unions of Gujarat to form
GCMMF.
"It is dawn of the White Revolution for Porbandar district as Amul-affiliated Porbandar milk
union has started ultra modern processing and milk procurement through automatic milk
collection system, and milk producers have got remunerative price and market for milk at their
doorstep," GCMMF's managing director R S Sodhi told TOI, adding that the estimated milk
production of the district is around four lakh litre per day.
"We are planning to procure around two lakh litres of milk per day from our district within the
next two years," said Arjanbhai Bhutaiya, chairman of Sudama Dairy. He added that at present
the dairy union collects 8,000 litres milk per day from 20 villages in the district. "We will cover
all the 154 villages of the district to achieve the two lakh litre target," he said.
Thanks to the Jafrabadi buffaloes of Porbandar, the quality of milk from the latest district dairy
union of Gujarat is being considered the best in the state. Instead of the average 5.6 to 5.7 per
cent fat that is registered elsewhere in Gujarat, milk received by Sudama Dairy has an average
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7.6 per cent fat. "We have also established a modern dairy plant for milk processing at the cost of
Rs 3 crore in Porbandar GIDC," Bhutaiya said.

Article 10. Amul launches Indias first milk ATM

An ATM from where people will now be able to withdraw other basic products like milk,
chocolates, yogurt etc is not a joke but a reality. The pilot project of this 24x7 ATM began with
the installation of a vending machine at the gate of Amul Dairy in Anand town of Gujarat on
Sunday.
According to the company officials, Amul plans to install 1100 more such ATMs. These ATMs
will be installed at different public places in Anand and Kheda towns, enabling the consumers to
buy milk whenever needed.
For Rs 10, the ATM would dispense a 300 ml pouch of Amul Taaza milk. The ATM, fitted with
refrigeration facility, has a capacity to hold 150 pouches at a time.
According to the company officials, if these ATMs prove to be a hit, then Amul will install them
in other parts of the country also.

2.3 Comparison of current project work with the work reported in the
literature by others researchers:

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The literature is related to the FMCG sectors, the way it is having an upward movement of
growth, also by adopting new innovative methods & new innovative products, quality of the
products & promotion techniques adopted has led them for huge consumers attention.
The literature also highlights also similar to my project reports & its objectives as it is said in
literature about innovation these the thing why Amul is at great heights for eg: Amul innovation
of 50 gm packet has grab the attention of consumers & intense competition for its competitors
the innovation has led to their increase in sales of Amul products.
The 2nd thing which was highlighted was about promotion in the Literature that strategy & study
was also about how Amul uses the promotion strategies which beneficial for retailers & also it
grabs consumers attention.
The 3rd thing highlighted is about the product quality & some different product of which the
consumer is just having in its mind to buy it if it comes in market these what he FMCG
companies are adopting especially, Amul is for sure adopting it & due to these literature it has
also help me to wider my knowledge on my projects as well because it somewhat highlights my
projects as well.

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