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PROJECT REPORT ON
ENTREPRENEURSHIP MANAGEMENT
SUCCESSFUL INDIAN ENTREPRENEUR AMUL
SUBMITTED BY
AKASH RANA
(ROLL NO: 701)
SUBMITED TO
UNIVERSITY OF MUMBAI
2016-17
PROJECT GUIDE
Prof.Kishore Karia
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Department of Commerce
Certificate
Thisistocertifythat, Mr.AKASHRANAofM.Com.II,Sem.III (RollNO701) hassuccessfully
completedtheprojecttitledSUCCESSFUL INDIAN ENTREPRENEUR AMULundermyguidance
fortheAcademicYear201617.Theinformationsubmittedistrueandoriginalaspermyknowledge.
Prof.GopiShamnani
Dr.ManjuLalwanipatha
(Coordinator,M.ComCourse)
(I/CPrincipal)
ExternalExaminer
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ACKNOWLEDGEMENT
Signature
DECLARATION
3 | Page
4 | Page
INDEX
Sr.No
PARTICULARS
.
1
ACKNOWLEGEMENT
Page
No
3
8
PART A
INTRODUCTION
ORGANISATION PROFILE
OBJECTIVE OF THE RESEARCH
LITERATURE REVIEW
5
6
MARKETING MANAGEMENT
9
11
17
21
22
27
31
34
8
9
10
FINANCE MANAGEMENT
38
SWOT ANALYSIS
41
PART B
44
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11
ENTREPRENEUR INTRODUCTION
12
13
14
CONCLUSION
BIBILOGRAPHY
47
50
51
Executive summary
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PART A
INTRODUCTION
Symbol of Amul is a ring of four hands, which are coordinated each other.
The actual meaning of this symbol is coordination of hand of different people
by
Whom this union is now at top.
First hand is for the farmers (producers), without whom the organization
Would do not existed. Farmers are the inspiration of the AMUL the taste of
India.
Second hand is for the representatives of processors by whom the raw
milk
Processed into different finished products.
Third hand is for marketers without whom the product would have not
be able to
reached to the customer.
Fourth hand is for customers without whom the organization could not
carry on
Because they are the people who consume the product. The union of Amul
would not
have been the second biggest successful company in the world without the
coordination of the above four hand.
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In the year 1946 the first milk union was established. This union was started with 250 liters of
milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as
KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION. This union selected
the brand name AMUL in 1955.
The brand name Amul means AMULYA. This word derived form the Sanskrit word
AMULYA which means PRICELESS. A quality control expert in Anand had suggested
the brand name AMUL. Amul products have been in use in millions of homes since 1946.
Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates,
Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading
food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many
things like of the high-quality products sold at reasonable prices, of the genesis of a vast cooperative network, of the triumph of indigenous technology, of the marketing savvy of a farmers'
organization. And have a proven model for dairy development (Generally known as ANAND
PATTERN).
In the early 40s, the main sources of earning for the farmers of Kaira district was
farming and selling of milk. That time there was high demand for milk in Bombay. The main
supplier of the milk was Polson dairy limited, which was a privately owned company and held
monopoly over the supply of milk at Bombay from the Kaira district. This system leads to
exploitation of poor and illiterates farmers by the private traders. The traders used to beside the
prices of milk and the farmers were forced to accept it without uttering a single word.
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ORGANIZATION PROFILE
NAME : KAIRA DISTRICT CO- OPERATIVE
MILK PRODUCERS UNION LIMITED,ANAND.
FORM : Co-operative sector under the co- operative
Society Act.
REG.OFFICE : Kaira District Co-operative Milk producers
Union ltd, Anand -3881001.Gujarat, India.
PROMOTERS (1)
(2)
(3)
(4)
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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 ecofriendly
delightment of customer and betterment of milk producer
HISTORY
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 upon. The 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.
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At the initial stage only 250 liters of milk was collected every day. 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 every day. 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 overcome 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 1097societies.
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.
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Amul Butter Girl: 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 tones a
year in 1966 to over 25,000 tones a year in 1997. 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 28-yearold
housewife is out in the balcony drying clothes. From her second floor flat she
can see her
neighbors on the road. There are other people too. The crowd seems to be
growing larger
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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-year-old girl who draws her attention to the hoarding that has come up
overnight.
Round eyed, chubby cheeked, winking at you, from strategically placed
hoardings. She is
the Amul moppet everyone loves to love
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.
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.
The Amul girl who lends herself so completely to Amul butter, created as a
rival to the
Polson butter girl. This one was, 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.
Board of Director
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CHAIRMAN
MANAGING CHAIRMAN
GENERAL MANAGER
ASSISTANT GENERAL MANAGER
MANAGER
DEPUTY MANAGER
ASSISTANT MANAGER
SENIOR EXECUTIVE
SENIOR OFFICER
SENIOR ASSITANT
WORKERS
ACHIEVEMENTS:
Amul : Asias largest dairy co-operative was created way back in1946 to
make the milk producer self-reliant 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.
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AWARDS:
Amul a co-operative society and its co-operation has led many
different awards in its favor.
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LITERATURE REVIEW
Abstract
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In this paper we describe a case study of a dairy cooperative, AMUL, in western India that has
developed a successful model for doing business in large emerging economy. It has been
primarily responsible, through its innovative practices, for India to become worlds largest
producer of milk. This paper draws various lessons from the experiences of AMUL that would be
useful to cooperatives globally as well as firms that are interested in doing business in large
emerging markets like India and China.
Many of these economies have underdeveloped markets and fragmented supply bases.
Market failures for many of these small producers are high. On the other hand, the size of both,
markets and the suppliers is large. As a result, firms that identify appropriate business strategies
that take into account these characteristics are more likely to succeed in these markets. The
following are some key message from AMULs success: firms in these environments need to
simultaneously develop markets and suppliers to synchronize demand and supply planning,
develop or become a part of network of producers (i.e., cooperatives in this case) to obtain scale
economies, focus on operational effectiveness to achieve cost leadership to enable low price
strategy. In addition, a central focus to bring the diverse element together and a long-term
approach are required.
In emerging economies different industrial sectors may be at different stages of
development. In some of the sectors all of the above environmental characteristics faced may not
hold. However, a subset of strategies followed by AMUL would still be very useful. Thus, firms
that are contemplating addressing large undeveloped markets or have an intention of taking
advantage of extensive but marginal supplier base would still benefit.
MARKETING MANAGEMENT
Every organization that produces one or more products requires marketing of
the products sell them in the market. It is only through marketing that people
know about a company's products.
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Concept
The marketing concept holds the key to achieving its organizational goals
consists of the company being more effective than competitors in creating ,
delivering and communicating customer value to its chosen target markets .
marketing starts with the determination of consumer wants and ends with
the satisfaction of those wants. The concept says that any business should
be organization around the marketing function, anticipating and stimulating
and meeting customers need . The marketing concept rests on four pillars
and
They Are
1.
2.
3.
4.
Target market
Customer needs
Integrated marketing
Profitability
AMUL has also its own marketing concept. AMUL targets all type of
customers like
Babies, children, young customers and old age customers etc. Amul try best
for
Satisfying needs by providing good quality products.
Marketing Mix
The marketing mix , which is set of four elements or four P of marketing
are as
Follow
1. Product
2. Price
3. Place
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4. Promotion
Same as four P there is also four C of marketing.
1. Customer solution
2. Cost
3. Convenience
4. Communication
PRODUCT:
A product is anything that satisfies needs or wants and can be offered to the
market for
Exchange. A product can be goods, services without product there is no
marketing.
This includes product variety, product design, packaging, quality, brand
name, size etc.
AMUL produces and sell i.e. Milk , It has to plan Its product very carefully so
that the
Consumer gets only good quality products. There are various products
marketed by
GCMMF
Cheese range
Amul butter
Amul Lite Low bread spread
Amul cooking butter
Amul
Amul
Amul
Amul
Pure ghee
Amul
Amul
Amul
Amul
Amul
Curd products
Price:-
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The prices of products of Amul are also decided by the GCMMF. The GCMMF
conducts
the market survey to check the validity and feasibility of prices in the market
and
accordingly decides the prices of Amul products.
The price of the products of Amul are also decided by the Gcmmf .The
Gcmmf
conducts the market survey to check the validity and feasibility of prices in
the market
and accordingly decides the price of Amul products . However , the price is
inclusive of
several elements like:
Cost of milk
Labour cost
Processing cost
Packaging cost
Advertising cost
Transportation cost
Sales promotion cost
Taxes etc.
The GCMMF considers all this cost . aspects and set them up in pricing
structure to
decide the selling price of milk and milk products.
Promotion
Place
Market segmentation: Any commodity has not a single Market. But it has a composite Market which
can be
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MARKETING &GCMMF
GCMMF is Indias largest exporter of dairy products. It has been awarded as a
Trading House status. GCMMF has received the APEDA award from the
government
Of India for Excellence in dairy products Exports for the last 11 years. Gcmmf
is Indias
Largest food products Marketing Organization. It is a state level apex body of
milk cooperatives in the Gujarat which aims to provide remunerative returns
to farmers and also serve the interest of consumers by providing quality
products which are good value for money
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.
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Consumer packs:
BULK PACKS
Marketing Research: Marketing Research is the systematic design collection, analysis and
reporting of
Data and findings relevant to a specific marketing situation of the company.
Amul performs the marketing research mainly to launch new products in the
market. The purpose is of checking the validity of the new products in the
market for the
local new . Amul conducts the market survey by appointing business
administration
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students for conducting the market survey . Extending policy of the new
producted
launched , Amul has recently launched the energy drink named STAMINA
specially
targeted to the people who are playing sports daily .
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Organization Structure
Managing Director
General Manager
Dairy Plant
Asstt. G.
M.
Manager
Manager
Officer
A.M.
(Production)
(Eng.)
(Eng.)
Dy. Manager
Workers
Officers
(Eng.)
A.M.
Technicians
(Eng.)
Eng. Workers
Officers
Technicians
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Eng. Worker
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.
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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.
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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 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
MILK PROCESSING BLOCK
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As per the above diagram there are the first components is raw material:
In our company the raw materials are milk, powder for ice creams
manufacturing, different types of flavors for ice creams, packaging material,
sugar etc. required by the company for manufacturing. In this step GCMMF
play a very important role it procures milk from villages and for this it
develops three types of system and that is societies at village level, district
level and state level.
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 handles all the marketing for AMUL products.
GCMMF's products were marketed through 50 sales offices located across
India to 4,000 stockiest. These stockiest supplied the products to more than
500,000 retail outlets.
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.
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Organization structure
Managing Director
General Manager
Assistant General Manager
Officers
Clerk
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Peons
RECRUITMENT AND SELECTION
RECRUITMENT:
Labassistant for 1yr 3 months for B.SC & M.SC ;1yr for Diploma Engg.
Then 2/3 yrs as trainee technician,than based on appraisal Appointed as
Technician B Grade.
5. BBA Management Trainee for 1yrs .Jr. Assistant
Superintendent
NO training period, direct appointment. However, in case of fresh recruitment
of candidates with exceptional qualification form reputed Institutions such as
IIM/IIT/IRMA o Central Institution, consideration for appointment to Higher
Grade be given due weightage, notwithstanding the above minimal
requirements.
SELECTION:
Selection procedure is concerned with securing relevant information about
the
applicant. The main objective of selection process is to determine whether an
applicant meets the qualification for a specific job and choose the application
that
is most likely to perform well in the job. The Selection process in AMUL is as
under
Vacancy in any department
Advertisement
Collection of application
Interview
Medical checkups
Selection
After selection, the employees generally have probation period. In AMUL
probation period is different for different type of employees. Probation period
for officers is 12 months, 6 months for clerical employees and 3month for
workers
Module Preparation
Training
Feedback
AMUL HAS ACCEPTED THE 3 METODS OF TRAINING,
1. on the job method
2. off the job method
3. In house training
4 out house training
PERFORMANCE APPRAISAL
Performance appraisal is the process of evaluating the performance and
qualification of employees in terms of the requirement of the jobs for which they are
employed. It is highly useful
Managers
3 year
Officers
1 year
1.5 year
Workers
Temporary
workers
Self appraisal
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Managers Appraisal
The general practice is superiors appraise the performance of their
subordinate. Other supervisors ,who have close contact with employee s
work may also appraise with a view to provide additional information.
Finance Management
INTRODUCTION:Sound working capital management has become a necessity in era of
information technology for a company to succeed. The best example to
support this argument is the performance of Dell computers as reported in
one of the recent Fortune article. A perusal of the article will give us an
insight into how Dell could use technology for improving the performance of
components of working capital.
Use of internet as a tool for reducing costs of linking manufacture with their
supplier and dealers.
Outsourcing operations if the firms core competence does not permit the
performance of the operation effectively.
Train the employees to accept change.
Introduction of internet business.
Releasing Capital by reduction in investment in inventory for improving the
profitability of operating capital.
A financial manager spends a large part of his time in managing working
capital.
There are two important elements of working capital management.
Decision on the amount of current assets to be held by a firm for efficient
operations of its business.
Decision on financing working capital requirement. Inadequacy or
mismanagement of WORKING CAPITAL is the leading cause of many business
failures. Working capital is that portion of asset of a business which are used
in current operations. They are used in the operating cycle of the firm. It is
defined as the excess of Current Assets over Current Liabilities and
provisions.
Objective of Working Capital Management:The basic objective of financial management is maximizing the Net wealth of
shareholders. A firm must earn sufficient return from its operations to ensure
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Bills Payable
Creditors for outstanding expenses
Provision for tax
Other provisions against the liabilities payable within a period of 12
months.
CALCULATION OF NET WORKING CAPITAL OF AMUL:PARTICULARS
2012-13
2013-14
(A) Total Current Assets
19774.20
28995.89
Less: Total Current Liabilities
Deposits
380.71
168.24
Due to Societies
6264.11
7223.31
Outstanding against Expenses
1076.90
1423.59
Outstanding against purchase
3373.85
4298.31
Sundry Creditors
337.14
459.06
Total (B)
11432.71
13572.51
Net Working Capital (A-B)
8441.49
15423.38
2014-15
28674.39
232.99
12017.60
1828.48
3058.15
336.56
17473.79
11200.60
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SWOT ANALYSIS
Strengths
The company is having Indian origin thus creating feeling of oneness in the mind
of the customers.
It manufactures only milk and milk products, which is purely vegetarian thus
providing quality confidence in the minds of the customers
It is aiming at rural segment, which covers a large area of loyal customers, which
other companies had failed to do.
People are quite confident for the quality products provided by Amul.
Amul has its base in India with its butter and so can easily promote chocolates
without fearing of loses.
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Weaknesses
There are various big players in the chocolate market, which acts as major
competitors restricting their growth.
Lack of capital invested as compared to other companies.
Improper distribution channel in India.
Opportunities
There is a lot of potential for growth and development as huge population stay in
rural market where other companies are not targeting.
The chocolate market is at growth stage with very less competition so by
introducing new brand and intensive advertising there can be a very good scope in
future.
Threats
The major threat is from other companies who hold the majority share of
consumers in Indian market i.e. Cadburys and Nestle.
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There exists no brand loyalty in the chocolate market and consumers frequently
shift their brands.
New companies entering in Indian market like Fantasie fine poses lot problems for
Amul.
PART B
ENTREPRENEUR INTRODUCTION
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INTRODUCTION
1.1 MEANING OF ENTREPRENEURSHIP
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technical and business skills, to serve as the major link in the process
of innovation, development, and economic growth and revitalization.
The study of entrepreneurship and education of potential
entrepreneurs are essential parts of any attempt to strengthen this link
so essential to a countrys economic well-being.
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The Amul model has helped India to emerge as the largest milk
producer in the world.
Diverse Portfolio Of Products
With its diversified product portfolio, Amul has been able to cater
to the needs of all the segments. From kids to teenagers, men to
women, calorie conscious to health conscious, the company has
ensured that it launches products for every segment. Providing
the value and benefits to its target segment, Amul has been able
to build a strong brand association with its customers over the
years.
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Conclusion
This Polish proverb that rightly says, If the farmer is poor then so
is the whole country. It was Sardar Vallabhai Patel, Tribhuvandas
Patel and Dr Verghese Kurien who mustve understood what this
quote meant and took certain measures to stop the exploitation
of the farmers.
It was their sheer determination, and hard work that ensured a
self-sustained state for the farmers and India became the number
one milk producing nation in the world.
Today, the brand has enabled farmers to be entrepreneurs and
earn their own living. The whole process being transparent has
ensured there is no exploitation of the underprivileged. It has
changed the whole traditional scenario and caused a disruption in
milk procurement process.
The Amul brand has proved that it is not just a product but a movement that
represents the economic freedom of farmers. The brand has given farmers the
courage to dream, to hope, to live.
Amul in its all sense has proved that it is Amulya i.e. Priceless for our nation and
we must preserve it.
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BIBLIOGRAPHY
Marketing Management Philip Kotler, The Millennium Edition, Prentice Hall
Of India Private Limited, New Delhi.
Periodical:
Business World
Research Methodology:
www.google.co.in
ii.
www.wikipedia.com
iii.
www.amul.com.
iv.
www.marketresearch.com
v.
www.dairy.com
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