A PROJECT REPORT ON

“A Comparative Study OF AMUL and Other Milk Brand”

A REPORT SUBMITTED IN PARTIAL FULFILMENT OF THE DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION (2018-2020)
GAUHATI UNIVERSITY

Under Guidance of:

Institutional Guide - Organisational Guide-

PROF. MANOJ KR. CHOWDHARY Mr .Narendra Sonigra

Dept. of Business Administration AMUL

Gauhati University

Submitted by:
S VENGKAR SINGH
MBA III (SEM)
ROLL NO- PM-181-836-0039

0
 DECLARATION

I S VENGKAR SINGH do hereby declare that the project report entitled

“A Comparative Study OF AMUL and Other Milk Brand”

is prepared under the guidance of the institutional guide Prof. Manoj

Kr. Chowdhury,Dept. of Business Administration, Gauhati University

and organizational guide Mr. Narendra Sonigra in partial fulfilment

of the requirements for MBA degree in Gauhati University.

I further declare that this project report submitted by me is an

original work of my own effort and has not been submitted earlier to

any other university or institution for the award of any other degree or

diploma.

S VENGKAR SINGH
Dept. of Business Administration

1
 ACKNOWLEDGEMENT

I would like to express my heartfelt gratitude to AMUL, who gave me

permission to do my Summer Training Project

.I am very delighted to have Prof. Manoj Kr. Chowdhury, Dept. of Business

Administration, Gauhati University as my academic guide. I would like to give him

gratitude for providing his commendable guidance, support and suggestion at

each and every step for framing the present shape of the project.

Also I would like to convey my sincere thanks to Mr. Narendra

Sonigra(Branch Manager) who supported me in acquiring practical knowledge

throughout guiding me in my project.

I would like to thank the Distributors whom I contacted during the training

period for providing me the information about the market segments and position.

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 PREFACE

Summer Internship Programme is a part of MBA Programme, which is very

helpful in getting practical knowledge in this globalization world. Now-a-days only

theoretical knowledge is not enough to success in life but most important we

must have practical knowledge. With the help of this training, I came to know how

to apply theoretical knowledge in practice.

Main purpose of this training is to have awareness about industrial environment

and to know about different functions of an organization like Distribution,

Production and Marketing.

I got an opportunity in KAIRA DISTRICT CO-OPERATIVE MILK UNION

LIMITED, Anand, Gujarat to undergo Summer Internship Programme as a part of

MBA Programme. I consider myself privileged that I got a chance to work with

reputed company and can upgrade my knowledge related to practical aspect of

business world which is very helpful in my career building.

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 CONTENTS

Chapter 1

 Executive Summary

 Introduction to the Indian Dairy Industry

 Company Profile of Amul

 Company Profile of Parag Dairy

 Sales and Distribution strategies

Chapter 2

Research Methodology

 Objective of the study

 Significance of the study

 Research Methodology

 Data Collection Techniques

 Analytical Tools

 Limitations of the study

Chapter 3

Data interpretation and Graphical Analysis

Chapter 4

Findings, suggestions and Conclusion

Annexure

a) Questionnaire

b) Bibliography

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EXECUTIVE SUMMARY

In today’s competitive world while entering in the market it is very necessary to have

good knowledge of the potential of a particular market. The growth of a company is

invariably determined not just by its strategy, but on how it responds to the

challenges it encounters. Over the decades AMUL has successfully countered several

challenges that have come its way with innovative responses and continuous

improvement, which have enabled it to remain stable and even convert some of

these challenges into opportunities. It is the culture of endurance that has accorded

AMUL the insight and focus to deal with the current economic environment. Drawing

from its inner strength and beliefs, AMUL responded by launching several initiatives

across all its operations in various geographies that are helping the group achieve

growth even in current times. It is also this very strategic culture that will propel

AMUL to continue on its growth trajectory in years to come.

The report provides a comprehensive insight into the company and also about the

company’s SWOT analysis. This report mainly studies in detail the various product

mix strategies of the company and also focuses on the segmentation of both company

based and industry based and helps in analysing the company’s competitive

advantage and the reason behind its success.

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 Chapter 1
INDIAN DAIRY INDUSTRY

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INTRODUCTION TO THE INDIAN

DAIRY INDUSTRY
The world's biggest dairy producing country is growing fast and looking to become

an export powerhouse despite major quality problems...

A Note to our Readers: the following information on India's dairy sector is reproduced

from India Infoline.com. India is the world's largest milk producing country and is

growing fast, with an eye toward becoming a major dairy exporter. This article is helpful

reading for anyone interested better understanding.

Consumer Habits and Practices

Milk has been an integral part of Indian food for centuries. The per capita

availability of milk in India has grown from 172 gm per person per day in 1972 to 182gm

in 1992 and 203 gm in 1998-99.This is expected to increase to 212gms for 2008.

However a large part of the population cannot afford milk. At this per capita consumption

it is below the world average of 285 gm and even less than 220 gm recommended by the

Nutritional Advisory Committee of the Indian Council of Medical Research.

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 There are regional disparities in production and consumption also. The per capita

availability in the north is 278 gm, west 174 gm, south 148 gm and in the east only 93 gm

per person per day. This disparity is due to concentration of milk production in some

pockets and high cost of transportation. Also the output of milk in cereal growing areas is

much higher than

elsewhere which can be attributed to abundant availability of fodder, crop residues, etc

which have a high food value for milky animals.

In India about 46 per cent of the total milk produced is consumed in liquid form

and 47 per cent is converted into traditional products like cottage butter, ghee, paneer,

khoya, curd, malai, etc. Only 7 per cent of the milk goes into the production of western

products like milk powders, processed butter and processed cheese. The remaining 54%

is utilized for conversion to milk products. Among the milk products manufactured by the

organized sector some of the prominent ones are ghee, butter, cheese, ice creams, milk

powders, malted milk food, condensed milk infants foods etc. Of these ghee alone

accounts for 85%.

It is estimated that around 20% of the total milk produced in the country is

consumed at producer-household level and remaining is marketed through various

cooperatives, private dairies and vendors. Also of the total produce more than 50% is

procured by cooperatives and other private dairies.

While for cooperatives of the total milk procured 60% is consumed in fluid form and rest

is used for manufacturing processed value added dairy products; for private dairies only

45% is marketed in fluid form and rest is processed into value added dairy products like

ghee, makhan etc.

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 Still, several consumers in urban areas prefer to buy loose milk from vendors due

to the strong perception that loose milk is fresh. Also, the current level of processing and

packaging capacity limits the availability of packaged milk.

The preferred dairy animal in India is buffalo unlike the majority of the world

market, which is dominated by cow milk. As high as 98% of milk is produced in rural

India, which caters to 72% of the total population, whereas the urban sector with 28%

population consumes 56% of total milk produced. Even in urban India, as high as 83% of

the consumed milk comes from the unorganized traditional sector.

Presently only 12% of the milk market is represented by packaged and branded

pasteurized milk, valued at about Rs.8, 000 crores. Quality of milk sold by unorganized

sector however is inconsistent and so is the price across the season in local areas. Also

these vendors add water and caustic soda, which makes the milk unhygienic.

Market Size and Growth

Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued

at Rs470bn. The market is currently growing at round 4% pa in volume terms. The milk

surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat,

Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk

products is concentrated in these milk surplus States. The top 6 states viz. Uttar Pradesh,

Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu and Gujarat together account for 58%

of national production.

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 Milk production grew by a mere 1% pa between 1947 and 1970. Since the early

70's, under Operation Flood, production growth increased significantly averaging over

5% pa.

About 75% of milk is consumed at the household level which is not a part of

commercial dairy industry. Loose milk has a larger market in India as it is perceived to be

fresh by most consumers. In reality however, it poses a higher risk of adulteration and

contamination.

The production of milk products, i.e. milk products including infant milk food,

malted food, condensed milk & cheese stood at 3.07 lakh MT in 2008. Production of milk

powder including infant milk-food has risen to 2.25 lakh MT in 2008, whereas that of

malted food is at 65000 MT. Cheese and condensed milk production stands at 5000 and

11000 MT respectively in the same year.

Major Players

The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative

Milk Marketing Federation (GCMMF) is the largest player. All other local dairy

cooperatives have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in

Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, etc). Other

private players include J K Dairy, Heritage Foods, Indiana Dairy, Dairy Specialties, etc.

Amrut Industries, once a leading player in the sector has turned bankrupt and is facing

liquidation.

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Packaging Technology

Milk was initially sold door-to-door by the local milkman. When the dairy co-

operatives initially started marketing branded milk, it was sold in glass bottles sealed with

foil. Over the years, several developments in packaging media have taken place. In the

early 80's, plastic pouches replaced the bottles. Plastic pouches made transportation and

storage very convenient, besides reducing costs. Milk packed in plastic pouches/bottles

have a shelf life of just 1-2 days, that too only if refrigerated. In 1996, Tetra Packs were

introduced in India. Tetra Packs are aseptic laminate packs made of aluminum, paper,

board and plastic. Milk stored in tetra packs

and treated under Ultra High Temperature (UHT) technique can be stored for four months

without refrigeration. Most of the dairy co-operatives in Andhra Pradesh, Tamil Nadu,

Punjab

and Rajasthan sell milk in tetra packs. However tetra packed milk is costlier by Rs5-7

compared to plastic pouches. In 2008-00 Nestle launched its UHT milk. Amul too

relaunched its Amul Taaza brand of UHT milk. The UHT milk market is expected to

grow at a rate of more than 10-12% in coming years.

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Regulatory Framework

The dairy industry was de-licensed in 1991 with a view to encourage private

investment and flow of capital and new technology in the segment. Although de-licensing

attracted a large number of players, concerns on issues like excess capacity, sale of

contaminated/ substandard quality of milk etc induced the Government to promulgate the

MMPO (Milk and Milk Products Order) in 2008. Milk and Milk Products Order

(MMPO) regulates milk and milk products production in the country. The order requires

no permission for units handling less than 10,000 litres of liquid milk per day or milk

solids up to 500 TPA. MMPO prescribes State registration to plants producing between

10,000 to 75,000 litres of milk per day or manufacturing milk products containing

between 500 to 3,750 tones of milk solids per year. Plants producing over 75,000 litres

per day or more than 3,750 tones per year of milk solids have to be registered with the

Central Government. The stringent regulations, government controls and licensing

requirements for new capacities have restricted large Indian and MNC players from

making significant investments in this product category. Most of the private sector

players have restricted themselves to manufacture of value added milk products like baby

food, dairy whiteners, condensed milk etc.

All the milk products except malted foods are covered in the category of

industries for which foreign equity participation up to 51% is automatically allowed. Ice

cream, which was

earlier reserved for manufacturing in the small-scale sector, has now been de-reserved. As

such, no license is required for setting up of large-scale production facilities for

manufacture of ice cream.

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 Subsequent to de-canalization, exports of some milk based products are freely

allowed provided these units comply with the compulsory inspection requirements of

concerned agencies like: National Dairy Development Board, Export Inspection Council

etc. Bureau of Indian standards has prescribed the necessary standards for almost all

milk-based products, which are to be adhered to by the industry.

Proposal to Amend the MMPO

A proposal to raise the exemption limit for compulsory registration of dairy

plants, from the present 10,000 litres a day to 20,000 litres, is being considered by the

Animal Husbandry Department. The 75,000-litre limit is likely to be raised either to

100,000 litres or 125,000 litres in the amended order. The new order would also do away

with the provision for re-registration.

Penetration of milk products

Western table spreads such as butter, margarine and jams are not very popular in

India. All India penetration of butter/ margarine is only 4%. This is also largely

represented by urban areas, where penetration is higher at 9%. In rural areas, butter/

margarine have penetrated in 2.1% of households only. The use of these products in the

large metros is higher, with penetration at 15%.

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 Penetration of cheese is almost nil in rural areas and negligible in the urban areas.

Per capita consumption even among the cheese-consuming households is a poor 2.4kg pa

as compared to over 20kg in USA. The lower penetration is due to peculiar food habits,

relatively expensive products and also non-availability in many parts of the country.

Butter, margarine and cheese products are mainly manufactured by organized sector.

Similarly, penetration of ghee is highest in medium sized towns at 37.2%

compared to 31.7% in all urban areas and 21.3% in all rural areas. The all India

penetration of ghee is 24.1%. In relative terms, penetration of ghee is significantly higher

in North and West, which are milk surplus regions. North accounts for 57% of ghee

consumption and West for 23%, South & East together account for the balance 20%. A

large part of ghee is made at home and by small/ cottage industry from milk. The relative

share of branded products in this category is very low at around 1-2%.

Milk powder and condensed milk have not been able to garner any significant

consumer acceptance in India as indicated by a very low 4.7% penetration. The

penetration is higher at

8.1% in urban areas and lower at 3.5% in rural areas. Within urban areas, it is relatively

higher in medium sized towns at 8.5% compared to 7.7% in large metros.

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Export Potential

India has the potential to become one of the leading players in milk and milk

product exports. Location advantage: India is located amidst major milk deficit countries

in Asia and Africa. Major importers of milk and milk products are Bangladesh, China,

Hong Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other

gulf countries, all located close to India.

The major export products: - The products of Amul is being exported in the 40

countries of the world . Many of the products are now available in the U.S.A , Gulf

countries and Singapore. Amul products are being exported to the Singapore since last

three decades . undoubtedly , Amul is the preferred taste of Indians in the Gulf countries.

Low Cost of Production:

Milk production is scale insensitive and labour intensive. Due to low labour cost, cost of

production of milk is significantly lower in India.

Concerns in export competitiveness are Quality: Significant investment has to be

made in milk procurement, equipments, chilling and refrigeration facilities. Also, training

has to be imparted to improve the quality to bring it up to international standards.

Productivity: To have an exportable surplus in the long-term and also to maintain cost

competitiveness, it is imperative to improve productivity of Indian cattle.

There is a vast market for the export of traditional milk products such as ghee,

paneer, shrikhand, rasagulas and other ethnic sweets to the large number of Indians

scattered all over the world.

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India's exports of milk products

Description 2007-08 2008-09 2009-10

(Quantity, M T.:

Value, Rs. million)

Quantity Value Quantity Value Quantity Value
Skimmed milk powder 4,638.62 3,35.32 282.70 19.64 5.00 0.375
Milk and Milk Food for 8.27 2.019 111.37 4.27 11.00 2.02

babies
Milk cream 332.23 28.04 1.00 0.084 - -
Sweetened 41.73 2.84 9.22 0.97 60.39 7.22

condensed milk
Whey 78.46 3.75 11.50 1.01 6.00 0.342
Ghee/Butter/Butter 7,895.08 431.1 299.97 19.2 4,352.08 2,38.95

oil
Cheese
(a) Fresh 0.10 0.013 - - - -
(b) Processed 5.67 1.20 2.1 0.375 22.10 2.19
(c) Other 66.64 8.35 36.78 0.69 24.84 4.55
TOTAL - 8,72.7 - 52.4 - 2,55.6

Indian (traditional) Milk Products

There are a large variety of traditional Indian milk products such as

Makkhan - unsalted butter. Ghee - butter oil prepared by heat clarification, for longer

shelf life. Kheer - a sweet mix of boiled milk, sugar and rice. Basundi - milk and sugar

boiled down till it thickens. Rabri - sweetened cream. Dahi - a type of curd. Lassi - curd

mixed with water and sugar/ salt. Channa/Paneer - milk mixed with lactic acid to

16
coagulate. Khoa - evaporated milk, used as a base to produce sweet meats. The market

for indigenous based milk food products is difficult to estimate as most of these products

are manufactured at home or in small cottage industries catering to local areas.

Consumers while purchasing dairy products look for freshness, quality, taste and texture,

variety and convenience. Products like Dahi and sweets like Kheer, Basundi, Rabri are

perishable products with a shelf life of less than a day. These products are therefore

manufactured and sold by local milk and sweet shops. There are several such small shops

within the vicinity of residential areas. Consumer loyalty is built by consistent quality,

taste and freshness. There are several sweetmeat shops, which have built a strong brand

franchise, and have several branches located in various parts of a city.

Branding Of Traditional Milk Products

Among the traditional milk products, ghee is the only product, which is currently

marketed, in branded form. main ghee brands are Sagar, Milkman (Britannia), Amul

(GCMMF), Aarey (Mafco Ltd), Vijaya (AP Dairy Development Cooperative Federation),

Verka ( Punjab Dairy Cooperative), Everyday (Nestle) and Farm Fresh (Wockhardt).

With increasing urbanization and changing consumer preferences, there is

possibility of large scale manufacture of indigenous milk products also. The equipments

in milk manufacturing have versatility and can be adapted for several products. For

instance, equipments used to manufacture yogurt also can be adapted for large scale

production of Indian curd products (dahi and lassi). Significant research work has been

done on dairy equipments under the aegis of NDDB.

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 Mafco Limited sells Lassi under the Aarey brand and flavored milk under the

Energee franchise (in the Western region, mainly in Mumbai). Britannia has launched

flavored milk in various flavors in tetra packs.

GCMMF has also made a beginning in branding of other traditional milk products

with the launch of packaged Paneer under the Amul brand. It has also created a new

umbrella brand "Amul Mithaee", for a range of ethnic Indian sweets that are proposed to

be launched the first new product Amul Mithaee Gulabjamun has already been launched

in major Indian markets.

Western Milk Products

Western milk products such as butter, cheese, yogurt have gained popularity in the Indian

market only during the last few years. However consumption has been expanding with

increasing urbanization.

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Butter

Most Indians prefer to use home made white butter (makkhan) for reasons of taste and

affordability. Most of the branded butter is sold in the towns and cities. The major brands

are Amul, Vijaya, Sagar, Nandini and Aarey. Amul is the leading national brand while the

other players have greater shares in their local markets. The latest entrant in the butter

market has been Britannia. Britannia has the advantages of a wide distribution reach and

a strong brand recall.

Priced at par with the Amul brand, it is expected to give stiff competition to the existing

players. In 2008-00 the butter production is estimated at 4 lakh MT of this only 45K MT

is in the white form used for table purposes rest all is in the yellow form.

Cheese

The present market for cheese in India is estimated at about 9,000 tonnes and is growing

at the rate of about 15% per annum. Cheese is mainly consumed in the urban areas. The

four metro cities alone account for more than 50% of consumption. Mumbai is the largest

market (accounting for 30% of cheese sold in the country), followed by Delhi (20%).

Calcutta (7%) and Chennai (6%). Mumbai has a larger number of domestic consumers,

compared to Delhi where the bulk institutional segment (mainly hotels) is larger.

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Demand for various types of cheese in the Indian market

Type of cheese % of total consumption

Processed 50
Cheese spread 30
Mozzarella 10
Flavored/Spiced 5
Others 5

The major players are Amul, Britannia, and Dabon International dominating the market.

Other major brands were Vijaya, Verka and Nandini (all brands of various regional dairy

cooperatives) and Vadilal. The heavy advertising and promotions being undertaken by

these new entrants is expected to lead to strong 20% growth in the segment. Amul has

also become more aggressive with launch of new variants such as Mozzarella cheese

(used in Pizza), cheese powder, etc.

The entry of new players and increased marketing activity is expected to expand the

market. All the major players are expanding their capacities

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Capacity expansion in Cheese

Company Brands State Capacity

Dynamics Manufactures forMaharashtra 35 tons per

Group Britannia day

GCMMF Amul Gujarat 20 tons per

day
APDDCF Vijaya Andhra 10 tons per

Pradesh day

Milk Powder

Milk powder is mainly of 2 types

_ Whole milk powder

_ Skimmed milk powder

Whole milk powder contains fat, as distinguished from skimmed milk powder, which is

produced by removing fat from milk solids. Skimmed milk powder is preferred by diet

conscious consumers. Dairy whiteners contain more fat than skimmed milk powder but

less compared to whole milk powder. Dairy whiteners are popular milk substitute for

making tea, coffee etc.

The penetration of these products in milk abundant regions is driven by

convenience and non perishable nature (longer shelf life) of the product.

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 Dairy sector of advanced nations export milk products with a subsidy of $ 1000

per tones with a level of subsidy more than 60 % of the price of milk powder produced in

India, this has led to large scale imports of milk powder both in whole and skimmed

form. To protect the domestic sector from these subsidized imports the central

government has recently increased the basic import duty on all imports of milk powder

more than 10000 MT to 60% from 15%. For imports less than 10000 MT the basic

customs duty has been left unchanged at 15%.

In 2008 India is estimated to have imported about 18,000 tonnes of milk powder against a

total estimated production of 2.40 Lakh MTs. In 2007-08 India is expected to export

10000 MT of skimmed milk powder due to rise in international prices to $2300 per MT

from last year's levels of $1400 per MT. These expectations are based on the strong

demand from Russia, East Asia and Latin America, and also on tightening of supply in

EU, which accounts for 75% of the annual global Skimmed Milk Powder exports.

Milk Collection Cycle

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

Production capacity of Amul

 Butter 50 to 60 Tones
 Powder plant 70 tones
 Powder plant 60 tones
 Flavour milk 40000 bottles

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Major Players

Milk Powder/Dairy Whiteners: Major skimmed milk brands are Sagar (GCMMF) and

Nandini (Karnataka Milk Federation), Amul Full Cream milk powder is a whole milk

powder brand.

Leading brands in the dairy whitener segment are Nestlé’s Everyday, GCMMF's Amulya,

Dalmia Industry's Sapan, Kwality Dairy India's KreamKountry, Wockhardt's Farm Fresh

and Britannia's Milkman Dairy Whitener.

Condensed Milk

The condensed milk market has grown from 9000 MT in 2007 to 11000 MT in 2008.

Condensed milk is a popular ingredient used in home-made sweets and cakes. Nestlé’s

Milkmaid is the leading brand with more than 55% market share. The only other

competitor is GCMMF's Amul.

Infant Foods

Nestle is the market leader in the segment. This is a category where brand loyalties are

very strong as mothers want the best for their babies. Heinz is the only other significant

competitor to Nestle in this segment. Nestlé’s Cerelac and Nestum together have around

80% market share and Heinz's Farex has close to 18% share. Work hard is a relatively

new entrant with its First Food brand. Wockhardt also proposes to launch a new baby

food Easum containing moong (moong is one of the easily digestible pulses). The Easum

brand will directly compete with Nestle's Nestum (made from rice).

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 In infant formula also Nestle's Lactogen formula and Lactogen standard formula

are the leading brands with around 75% market share. Other brands are Heinz's Lactodex

Farex, Wockhardt's *Raptakos, and Amul's Amulspray

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Major dairy products manufacturers

Some of the major dairy products manufacturers in the

country:

Company Brands Major Products

Nestle India Milkmaid, Cerelac, Sweetened condensed milk,

Limited Lactogen, Milo, malted foods, milk powder

Everyday and Dairy whitener

Milk food Milk food Ghee, ice cream, and other

Limited milk products

Smith Kline Horlicks, Maltova, Malted Milk food, ghee,

Beecham Viva butter, powdered milk, milk

Limited fluid and other milk based

baby foods.
Indodan Indana Condensed milk, skimmed

Industries milk powder, whole milk

Limited powder, dairy milk

whitener, chilled and

processed milk

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Gujarat Co- Amul Butter, cheese and other

operative milk milk products

Marketing

Federation

Limited
H.J. Heinz Farex, Complan, Infant Milkfood, malted

Limited Glactose, Milkfood

Bonniemix,

Vitamilk
Britannia Milkman Flavored milk, cheese, Milk

Powder, Ghee
Cadbury Bournvita Malted food

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Manufacturing Process

Milk is pasteurized by treating it to high temperature for a short time. The main aim in

treating milk with high temperature is to destroy the disease causing pathogens and to

improve keeping quality.

Separation machine is typically a high powered centrifuge. The centrifugal force makes

milk fat globules and emerges as cream from the separator bowl. Separation of cream

produces skim milk from which several dairy products are made.

Baby food: Fresh milk, which is received from farmers/ traders, is chilled and stored.

Then MSK skimmed/ wet skimmed milk and sugar are added in turbo mixture to achieve

the desired specifications of ingredients in the milk. This is followed by addition of

vitamins and minerals. This milk which contains ingredients to specifications is filtered,

cooled, analyzed and then purified. Then it passes through specific pasteurization and is

taken to evaporator for pre-condensing. Pre-condensate is homogenized, cooled and

stored. Cooled pre-condensate is heated and dried in spray drier (Egron). Then sugar is

added. The powder is then passed through chemical analysis to check quality and is filled

in tins through filling machines. These tins are gassed during gas mix and then sealed,

packed and dispatched in cardboard cartons.

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Butter: Whole milk is first separated into skim milk and cream by centrifugal force in a

separator. The cream is then pasteurized either through batch process or a continuous

process. In batch process, cream is heated to a minimum of 740 C and held at the

temperature for 30 minutes, while in continuous process it is heated at 850 C and is held

for only 15 seconds. The heat treatment destroys bacteria, inactivates enzymes and gives

the cream a cooked flavour.

After pasteurization, a tempering process is applied in which cream is held at 100 C to

allow rearrangement of the fat crystals. The cream is then churned to produce butter.

Continuous churning converts cream into butter in a few minutes while batch churning

takes a longer time. Composition and colour adjustment is also done at the churning stage

and a salt solution is added to give the finished butter a salty taste. About 13 litres of milk

with 6% fat is required to produce 1 kg of butter.

Cheese: There are thousands of varieties of cheese in the world. The type of

manufacturing process used in the production of cheese determines its flavour, which

ranges from extremely mild to very sharp, and its texture, which can be semi-solid to

almost stone hard. Cheese making requires four main ingredients - good quality milk,

rennet or coagulating acids, culture and salt. Cheese is generally made from cow's milk.

About 10 litres of milk with 3% fat is required for making 1 kg of cheese. Natural Cheese

is made by coagulating or curdling milk, stirring & heating the curd, draining off the

whey and collecting or pressing the curd. The desired flavour and texture is obtained by

varying the temperature, humidity and time period of the curing process. Sweetened

condensed milk is usually made from fresh milk by adding sugar to the milk pre-warming

28
and concentrating the mixture in the high vacuum. The syrupy milk is then cooled so that

the lactose crystallizes as very fine crystals and then the product is coagulated.

Future Prospects

India= = s dairy sector is expected to triple its production in the next 10 years in view of

expanding potential for export to Europe and the West. Moreover with WTO regulations

expected to come into force in coming years all the developed countries which are among

big exporters today would have to withdraw the support and subsidy to their domestic

milk products sector. Also India today is the lowest cost producer of per litre of milk in

the world, at 27 cents, compared with the U.S' 63 cents, and Japan= = s $2.8 dollars. Also

to take advantage of this lowest cost of milk production and increasing production in the

country multinational companies are planning to expand their activities here. Some of

these milk producers have already obtained quality standard certificates from the

authorities. This will help them in marketing their products in foreign countries in

processed form.

The urban market for milk products is expected to grow at an accelerated pace of around

33% per annum to around Rs.43,500 crores by year 2008. This growth is going to come

from the greater emphasis on the processed foods sector and also by increase in the

conversion of milk into milk products. By 2008, the value of Indian dairy produce is

expected to be Rs 10, 00,000 million. Presently the market is valued at around Rs7,

00,000mn.

29
30
 COMPANY PROFILE OF AMUL

The Amul – Meaning

AMUL means “ priceless “ in Sanskrit . A quality control expert in Anand suggested

the brand name “AMUL” from the Sanskrit word “Amoolya” variants, all meaning

“priceless” are found in several Indian languages. Amul products have been used in

millions of home since 1946 .

 Amul butter

 Amul milk powder

 Amul ghee

 Amulspray

 Amul cheese

 Amul chocolates

 Amul Ice- cream

Today Amul is a symbol of many things . of high – quality products sold at

reasonable prices . F triumph of indigenous technology . Of the marketing savvy of a

farmers organization . And proven model for dairy development .

MOTTO, VISION, AND QUALITY POLICY

MOTTO

The main motto of AMUL is to help farmers. Farmers were the foundation stone of

AMUL. The system works only for farmers and for consumers, not for profit. The main

of AMUL is to provide quality products to the consumers at minimum cost. The goal of

AMUL is to provide maximum profit in terms of money to the farmers.

31
VISION

Vision of AMUL is to provide and vanish the problems of farmers (milk producers). The

AMUL apparition was to run the organization with co-operative of four main parties, the

farmers, the representatives, the marketers, and the consumers.

QUALITY POLICY

We the motivated and devoted work force of AMUL are committed to produce whole

some and safe foods of excellent quality to remain market leaders through deployment of

quality management system, state of art technology innovation and eco- friendly

delightment of customer and betterment of milk producer

HISTORY

In early 1940’s 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

32
company that enjoyed monopoly for supply of milk from Kaira to the Government Milk

Scheme Bombay. The system leads to exploitation of poor and illiterate farmers by the

private traders.

However, when the exploitation became intolerable, the farmers were frustrated. They

collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the

freedom movement. Sardar Patel advised the farmers to sell the milk on their own by

establishing a cooperative union, instated of supplying milk to private traders. Sardar

Patel sent the farmer to Shri Morarji Dasai in order to gain his Co-operation and help.

Shri Dasai held a meeting at ‘Samrkha’ village near Anand, on January 4, 1946. He

advised the farmers to from a society for collection of the milk.These village societies

would collect the milk themselves and also decided prices for that which would be

profitable for them. The district union was also from to collect the milk from such village

cooperative societies and to sell them. It was also resolved that the government should

asked to buy milk from the union.

However, the government did not seem to help farmer by any means. It gave the negative

response by turning down the demand for the milk. To respond to this action of

government, farmer of Kaira district went on a milk strike. For 15 days not a single drop

of milk was sold to the traders. As a result the Bombay milk scheme was severely

affected. The milk commissioner of Bombay then visited Anand to assess the situation.

Finely he decided to fulfill the farmers demand.

33
Thus their cooperative unions were forced at village and district level to collect and sell

milk on a cooperative basis, without the intervention of government. Mr. Verghese Kurien

had main interest in establishing union who was supported by Shri Tribhuvandas Patel

who convinced farmers in forming the cooperative unions at thevillage level. ‘The Kaira

District Co-operative Milk Producers’ Union’ was thus established in Anand and was

registered formally under section 10 of Bombay Act VII of 1925 on December 14, 1946.

Since then farmers are selling all the milk in Anand through cooperative union. In 1955 it

was commonly decided the sell milk under the brand name ‘Amul’

At the initial stage only 250 liters of milk was collected everyday. But with the

growing awareness of the benefits of the co-operative-ness the collection of milk

increased. Today Amul collect 50, 00,000 liters of milk everyday. As the milk is

perishable commodity it became difficult to preserve milk for a longer period. Besides

when the milk was to be collected from the far places there was a fear of spoiling of milk.

To over come this problem the union thought to develop the chilling unit at various

junctions, which would collect the milk and could chill so as preserve it a for a longer

period. Thus, today Amul has more than 168 chilling centers in various villages. Milk is

collected from almost 1097 societies.

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.

34
 A plant to manufacture balanced cattle feed was formally commissioned on

October 31, 1964 by Shri Lalbahadur Shastri, the Prime Minister of India. At the request

of the government of India, a new dairy with a capacity to manufacture 40 tons of milk

powder and 20 tons of butter a day was completed in 1963. This was meant to meet the

requirement of India’s defense forces. The dairy was declared open by ShriMorarji Desai

in April, 1965. in 1974, the Kaira Union setup a plant to manufacture high-protein

weaning food, chocolate and malted food at Mogar, about 8 km south of Anand.

In September, 1981, the second cattle feed plant at ‘Kanjari’ were started. The

succesion of the co-generation project on September 11, 1985, marked a milestone on the

energy front when two gas turbine generators of 1.5 MW each based on natural gas, were

commissioned. On October 31, 1992, Dr. V. Kurien chairman, National Dairy

Development Board, laid the foundation of Kaira Union’s third dairy with a processing

capacity of 6.5 lakh liters of milk a day. Work on the third dairy and cheese plant at

‘Khatraj’ with capacity for 20 Metric Ton of cheese per day, began in February, 1994.

Also in 1994, Kaira Union put up bread spread plant at ‘Mogar’ with the assistance from

National Dairy Development Board.

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

products marketing organization. It is a state level apex body of milk cooperatives in

Gujarat which aims to provide remunerative returns to the farmers and also serve the

interest of consumers by providing quality products which are good value for money.

35
Members: 13 district cooperative milk producers'

Union
No. of Producer Members: 2.6 million
No. of Village Societies: 12,792
Total Milk handling capacity: 10.16 million litres per day
Milk collection 2.38 billion litres
Milk collection 6.5 million litres
Milk Drying Capacity: 594 Mts. per day
Cattle feed manufacturing Capacity: 2640 Mts per day
About Machinery
In AMUL – 3 production of powder, Butter and Milk are being done

continuously. These productions are done by latest machineries equipped with

computer system and it is handled by one technicians.

- The Milk pasteurizer machines belong to Alfa level company of Pune

- Powder plant machineries belong to L & T Larson and Turbo company

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

other
- Butter manufacturing production machineries belong to Simon Feres

com.of France

36
ORGANISATION STRUCTURE OF AMUL
Board of Director

CHAIRMAN

MANAGING CHAIRMAN

GENERAL MANAGER

ASSISTANT GENERAL MANAGER

MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

SENIOR EXECUTIVE

SENIOR OFFICER

SENIOR ASSITANT

WORKERS

Grade ( Ato E)
.

37
38
 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 52254 1325

2008-09 67113 1505

2009-10 80053 1700

List of Products Marketed:

Bread spreads:

 Amul Butter

 Amul Lite Low Fat Bread spread

 Amul Cooking Butter

39
Cheese Range:

 Amul Pasteurized Processed Cheddar Cheese

 Amul Processed Cheese Spread

 Amul Pizza (Mozzarella) Cheese

 Amul Shredded Pizza Cheese

 Amul Emmental Cheese

 Amul Gouda Cheese

 Amul Malai Paneer (cottage cheese)

 Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

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

 Amul Amrakhand

 Amul Mithaee Gulabjamuns

 Amul Mithaee Gulabjamun Mix

 Amul Mithaee Kulfi Mix

 Avsar Ladoos

UHT Milk Range:

 Amul Shakti 3% fat Milk

 Amul Taaza 1.5% fat Milk

 Amul Gold 4.5% fat Milk

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

 Amul Shakti Toned Milk

40
  Amul Fresh Cream

 Amul Snowcap Softy Mix

Pure Ghee:

 Amul Pure Ghee

 Sagar Pure Ghee

 Amul Cow Ghee

Infant Milk Range:

 Amul Infant Milk Formula 1 (0-6 months)

 Amul Infant Milk Formula 2 ( 6 months above)

 Amulspray Infant Milk Food

Milk Powders:

 Amul Full Cream Milk Powder

 Amulya Dairy Whitener

 Sagar Skimmed Milk Powder

Sweetened Condensed Milk:

 Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

 Amul Taaza Toned Milk 3% fat

 Amul Gold Full Cream Milk 6% fat

41
  Amul Shakti Standardized Milk 4.5% fat

 Amul Slim & Trim Double Toned Milk 1.5% fat

 Amul Saathi Skimmed Milk 0% fat

 Amul Cow Milk

Curd Products:

 Yogi Sweetened Flavoured Dahi (Dessert)

 Amul Masti Dahi (fresh curd)

 Amul Masti Spiced Butter Milk

 Amul Lassee

42
Amul Ice creams:

 Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

 Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted

Almond)

 Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry,

Black Currant, Santra Mantra, Fresh Pineapple)

 Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)

 Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch,

Mega bite, Cassatta)

 Utterly Delicious (Vanilla, Strawberry, Chocolate, Choc chips, Cake Magic)

Chocolate & Confectionery:

 Amul Milk Chocolate

 Amul Fruit & Nut Chocolate

Brown Beverage:

 Nutramul Malted Milk Food

Milk Drink:

 Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose,

Chocolate)

 Amul Kool Cafe

43
Health Beverage:

 Amul Shakti White Milk Food

Amul Butter Girl

Edited from an article by Mini Verma published in The Asian

Age on March 3, 1996

The moppet who put Amul on India's breakfast table

50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a

year in 1966 to over 25,000 tonnes a year in 2008. No other brand comes even close to it.

All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses.

Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old

housewife is out in the balcony drying clothes. From her second floor flat she can see her

neighbours on the road. There are other people too. The crowd seems to be growing

larger by the minute. Unable to curb her curiosity Sheela Mane hurries down to see what

all the commotion is about. She expects the worst but can see no signs of an accident. It is

her four-year-old who draws her attention to the hoarding that has come up overnight. "It

was the first Amul hoarding that was put up in Mumbai," recalls Sheela Mane. "People

loved it. I remember it was our favourite topic of discussion for the next one week!

Everywhere we went somehow or the other the campaign always seemed to crop up in

our conversation."

44
 Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you,

from strategically placed hoardings at many traffic lights. She is the Amul moppet

everyone loves to love (including prickly votaries of the Shiv Sena and BJP). How often

have we stopped, looked, chuckled at the Amul hoarding that casts her sometime as the

coy, shy Madhuri, a bold sensuous Urmila or simply as herself, dressed in her little polka

dotted dress and a red and white bow, holding out her favourite packet of butter.

For 30 odd years the Utterly Butterly girl has managed to keep her fan following

intact. So much so that the ads are now ready to enter the Guinness Book of World

Records for being the longest running campaign ever. The ultimate compliment to the

butter came when a British company launched butter and called it Utterly Butterly, last

year.

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.

45
One of the first Amul hoardings

In India, food was something one couldn't afford to fool around with. It had been taken

too seriously, for too long. Sylvester daCunha decided it was time for a change of image.

The year Sylvester daCunha took over the account, the country saw the birth of a

campaign whose charm has endured fickle public opinion, gimmickry and all else.

The Amul girl who lends herself so completely to Amul butter, created as a rival to the

Polson butter girl. This one was sexy, village belle, clothed in a tantalizing choli all but

covering her upper regions. "Eustace Fernandez (the art director) and I decided that we

needed a girl who would worm her way into a housewife's heart. And who better than a

little girl?" says Sylvester daCunha. And so it came about that the famous Amul Moppet

was born.

That October, lamp kiosks and the bus sites of the city were splashed with the

moppet on a horse. The baseline simply said, Thorough bread, Utterly Butterly Delicious

Amul,. It was a matter of just a few hours before the daCunha office was ringing with

calls. Not just adults, even children were calling up to say how much they had liked the

ads. "The response was phenomenal," recalls Sylvester daCunha. "We knew our

campaign was going to be successful."

46
For the first one year the ads made statements of some kind or the other but they had not

yet acquired the topical tone. In 1967, Sylvester decided that giving the ads a solid

concept would give them extra mileage, more dum, so to say. It was a decision that would

stand the daCunhas in good stead in the years to come.

In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna

movement, Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative

team working on the Amul account came up with a clincher -- 'Hurry Amul, Hurry

Hurry'. Bombay reacted to the ad with a fervour that was almost as devout as the Iskon

fever.

That was the first of the many topical ads that were in the offing. From then on Amul

began playing the role of a social observer. Over the years the campaign acquired that all

important Amul touch.

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

the happening thing in Calcutta, Amul would be up there on the hoardings saying, "Bread

without Amul Butter, cholbe na cholbe na (won't do, won't do). If there was an Indian

Airlines strike Amul would be there again saying, Indian Airlines Won't Fly Without

Amul.

47
 There are stories about the butter that people like to relate over cups of tea. "For

over 10 years I have been collecting Amul ads. I especially like the ads on the backs of

the butter packets, "says Mrs. Sumona Varma. What does she do with these ads? "I have

made an album of them to amuse my grandchildren," she laughs. "They are almost part of

our culture, aren't they? My grandchildren are already beginning to realise that these ads

are not just a source of amusement. They make them aware of what is happening around

them."

Despite some of the negative reactions that the ads have got, DaCunhas have

made it a policy not to play it safe. There are numerous ads that are risqué in tone.

"We had the option of being sweet and playing it safe, or making an impact. A

fine balance had to be struck. We have a campaign that is strong enough to make a

statement. I didn't want the hoardings to be pleasant or tame. They have to say

something," says Rahul daCunha.

"We ran a couple of ads that created quite a furore," says Sylvester daCunha. "The Indian

Airlines one really angered the authorities. They said if they didn't take down the ads they

would stop supplying Amul butter on the plane. So ultimately we discontinued the ad," he

says laughing. Then there was the time when the Amul girl was shown wearing the

Gandhi cap. The high command came down heavy on that one. The Gandhi cap was a

symbol of independence; they couldn't have anyone not taking that seriously. So despite

their reluctance the hoardings were wiped clean. "Then there was an ad during the

Ganpati festival which said, Ganpati Bappa more Ghya (Ganpati Bappa take more). The

Shiv Sena people said that if we didn't do something about removing the ad they would

come and destroy our office. It is surprising how vigilant the political forces are in this

48
country. Even when the Enron ads (Enr on or off) were running, Rebecca Mark wrote to

us saying how much she liked them."

Amul's point of view on the MR coffee controversy

There were other instances too. Heroine Addiction, Amul's little joke on Hussain had the

artist ringing the daCunhas up to request them for a blow up of the ad. "He said that he

had seen the hoarding while passing through a small district in UP. aHe sid says Rahul

daCunha in amused tones. Indians do have a sense of humour, afterall.he had asked his

assistant to take a photograph of himself with the ad because he had found it so funny,"

From the Sixties to the Nineties, the Amul ads have come a long way. While most people

agree that the Amul ads were at their peak in the Eighties they still maintain that the

Amul ads continue to tease laughter out of them.

Where does Amul's magic actually lie? Many believe that the charm lies in the catchy

lines. That we laugh because the humour is what anybody would enjoy. They don't

pander to your nationality or certain sentiments. It is pure and simple, everyday fun.

49
PRODUCTION &OPERATION DEPARTMENT

INTRODUCTION

Production management is refers to the process of correction of past mistakes catching up

with the new techniques, taking up steps with developing techniques and taking measures

for the production of goods at competitive cost.”

The basic philosophy of production management is to launch a frontal attack on

direct costs and effective use the availability manpower weaving new techniques in to the

whole to keep the production unit efficient and developing production management is the

process of planning, organizing, directing and controlling.

The Amul is started with only 250 liters of milk per day. But now Amul collect

average 9 lakhs of liters milk per day. At the initial stage, Amul has not any problem

regarding milk, but in the winter season there was excess supply of milk. So, Amul has to

sell out that excess milk at the low price or Amul has to face loss. To removing these

problems Amul take decision to set up a plant to process the surplus milk butter and milk

powder.

Today the Amul has three plants Known as Amul 1, 2 & 3 all three plant work 24

hours a day continuously. The all manufacturing process is done automatically. The

production is done in the special machines. These machines and the technology are

import-id from the TRFTA PEAK Company. There is also facility of chilling of milk, so

that the milk remains usable.

Today three plant of AMUL perform different function.

AMUL – 1 presently it is use as a go down for storing raw materials.

50
 1. AMUL – 2 Today in this unit, the production process of Ghee and packings are

running .
2. AMUL – 3 This unit is producing AMUL butter, AMUL spray powder, and

flavored milk.

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

Eng. Worker

51
52
Milk Collection Cycle
The success of each and every dairy industry is the getting the milk from the

farmers and making that milk in use as soon as possible before that milk get spoiled

because the milk is the perishable product. For the smooth running the business of dairy

industry the industry must concentrate on the milk collection cycle. Amul dairy is very

conscious about the milk collection cycle because the base of the success of the Amul is

milk collection cycle.

Production capacity of Amul

 Butter 50 to 60 Tones
 Powder plant 70 tones
 Powder plant 60 tones
 Flavour milk 40000 bottles

About Machinery
In AMUL – 3 production of powder, Butter and Milk are being done

continuously. These productions are done by latest machineries equipped with

computer system and it is handled by one technicians.

- The Milk pasteurizer machines belong to Alfa level company of Pune

- Powder plant machineries belong to L & T Larson and Turbo company

of India

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

other

- Butter manufacturing production machineries belong to Simon Feres

com.of France

53
Amul – 2 Raw Reception Dock
Reception dock is the very first department of any dairy where milk is unloaded and

simultaneously tested . Amul-2 has a well designed RMRD , situated in the west wing of

dairy . Raw milk at Amul- 2 is received mainly through cans . There are 2 reception lines

for unloading milk cans in Amul – 2 . About 60 % of reception is of buffalo milk and

remaining 40% is cow milk .

Flow chart of Amul-2 process

Unloading of cans

Chain conveyer

Removal of cans lid

Physically inception of milk

Transfer of milk to dump tank ( 12-13cans/ min)

Filter

Weighing

Raw milk collection tank – Amul -3

Pasteurization ( At 80 C for 15 seconds)

Standardization

Processed milk silo

54
Sent to different production section milk pouch packing
section

55
Butter section
The utterly Butterly Delicious butter of the Amul is one of the most popular product of

Amul dairy along with the famous butter girl . The butter section is located in Amul -3

which manufactures Table Butter , white butter and renduced salt butter . The section is

completely computer controlled and is equipped with most modern imported

equipments .Butter section very important as it handles fat, which is the costliest

constituent . The cream obtained from process section is fully utilized for butter making .

Amul white and table Butter is exported to USA and various Middle Eastern countries .

OPERATION
The cream for manufacturing Butter is receiving from Amul-3 process section while

standardization of milk . In Amul -3 the milk fat will be separated at above 60 Celsius ,

the centrifugal separators inline with Milk pasteurizer separate this as cream . The cream

thus separated is pasteurized and then pumped to the cream buffer tanks and to cream silo

.After ageing at 8 Celsius for 24 hrs , cream is pumped to cream chilling unit in the

butter section . there the temperature of cream is adjusted to the required churning

temperature of continuous Butter Making Machine.

56
Flow chart of Butter processing
Raw cream

Pasteurizer (90 to 95 C )

Cooling (8-9 C)

Ageing(8-9 C/ 24hours)

Cream Balance tank

PHE ( for temperature adjustment at 6-8 C)

Churning (speed 500- 1200rpm)

Butter Grains butter Milk

Washing with butter milk

Working ( 30- 70rpm )

nd
2 washing with butter milk
silo
working

white butter addition salt (@2%) &color

15 kg packing

Blending

( 25-30 rpm
&vacuum )

57
 export
ghee butter section

packaging lines

9.1g blister pack 100g refill pack 100g refill pack 400tin
(Army)

Air pack (2gm)

Packing materials used :

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

Powder plant
F-35 plant is situated in Amul -2 near to the railway siding . The plant is a single stage

drying plant having a capacity of 35 TDP. The plant is not in regular use and mainly used

for the manufacturing of cheese whey powder .

F-35 CONDENSING PLANT DETAILS

Make : SSP ,Faridabad

Type : Falling film vertical tube type

No of Pre heater : 5

No of calendria : 7

58
No of vapor separators : 5

OPERATION DETAIL
PRODUCT USE AND CHARACTERISTICS
MILK
One of the most versatile food consumed by us. All children start their with mother’s

milk and continue to use it in one other throughout their life. It is the secretion from the

mammary glands of a lactating mammal. The white fluid, know as milk, is made up of

milk fat and other milk solids.

AMUL ICE CREAM

Amul ice cream is made up from fresh milk.

Ice cream are rich in protein, calcium, dairy cream and vitamins.

Ice cream are a complete food, easy to digest and full of energy.

MANUFACTURING PROCESS FOR ICE CREAM

Amul ice cream is made up from milk, milk products, sugar, stabilizers and emulsifiers.

Composition

 Milk Fat 13.5% to 14.5%

 Total Solids 40% to 41%

 Sugar 15% Approx.

 Acidity 0.17% to 0.19%

 Protein 3.9% to 4.1%

59
Food Energy Value

Calories per 100 ml -196.7 kcal

Flavors

VANILA , Strawberry, Pineapple, Orange, Rose, Mango, Chocolate, Honey-Dew-Melon, Tutee

Fruity, Litchi, Kesar Pista, Kaju Draksh, Butterscotch, Chocó chips, Rajbhog and Cashew Break.

Packaging

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

MANUFACTURING PROCESS FOR MILK

MILK PROCUREMENT
Total milk procurement by our Member Unions during the year 2006-07 averaged 67.25

lakh kilograms (6.7 million kg) per day, representing a growth of 4.5 per cent over 64.38

lakh kilograms (6.4 million kg) per day achieved during 2005-06. The highest

procurement as usual was recorded during January 2007 at 84.09 lakh kilograms (8.4

million kg) per day. This increase in milk procurement is very impressive, keeping in

mind the massive loss suffered by our farmers due to

floods during the monsoon season, specially in Surat district.

60
MILK PROCESSING
1 Homogenization: - Milk must then be homogenized. Without homogenization, the

milk fat would separate from the milk and rise to the top. Milk fat is what gives milk its

rich and creamy taste. In this process Milk is transferred to a piece of equipment called a

homogenizer. In this machine the milk fat is forced, under high pressure through tiny

holes.

2 . Pasteurization:- Pasteurization is the process that purifies milk and helps it stay

fresher, longer. Milk is pasteurized by heating it to 72°C for 16 seconds then quickly

cooling it to 4°C. Pasteurization is named after Louis Pasteur, the famous scientist.

61
3 .Adding Vitamins; - Before homogenization, vitamin D is added to all milk.

Vitamin D combined with the calcium that naturally exists in milk help gives us strong

bones and teeth. Dairies also add Vitamin A to skim, 1% and 2% milk. Vitamin A is good

for our eyesight.

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

automatic filling machines direct into bags, cartons and jugs. The machines are carefully

sanitized and packages are filled and sealed without human hands. During the entire time

that milk is at the dairy, it is kept at 1° - 2°C. This prevents the development of extra

bacteria and keeps the milk it’s freshest.

62
5.Storing:- Milk is delivered to grocery stores, convenience stores and restaurants in

refrigerated trucks that keep milk cooled to 1° - 4°C. The stores take their milk and

immediately place it in their refrigerated storage area. Because fresh milk is so important

to our diets, dairies, and our health.

63
Supply chain management of AMUL

SUPPLIERS

GCMMF’S SUPPLY CHAIN

Processing :

After the union received the milk, it was tested and if it was found to be of good quality,

it was sent for processing. If the milk was found to have high acidity, it was used to make

buttermilk. Raw milk was sent through a filter and clarifier and was pasteurized. For

pasteurization, milk was treated at high temperatures for a specified.

This helped in destroying the pathogens and in maintaining the quality. After

pasteurization, the milk was sent through a separation machine. Here the cream was

separated and skimmed milk was obtained. According to the demand, the unions packed

the milk after it was pasteurized and sent for distribution. The cream was marketed as

Amul Fresh cream .

64
Distribution

GCMMF coordinated with various unions to get a regular supply of milk and dairy

products. The processed milk and dairy products were procured from district dairy unions

and distributed through third party distributors. To ensure quality and timely deliveries,

GCMMF and the district unions had several mechanisms in place. The VCS constantly

monitored the deliveries of the milk collected and ensured that the milk was picked up on

time. The unions monitored the supplies of milk and the distribution of finished products.

WARE HOUSING: Amul products are available in over 500,000 retail outlets across

India through its network of over 3,500 distributors. There are 47 depots with dry and

cold warehouses to buffer inventory of the entire range of products. GCMMF transacts on

an advance demand draft basis from its wholesale dealers instead of the cheque system

adopted by other major FMCG companies. This practice is consistent with GCMMF's

philosophy of maintaining cash transactions 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 .

65
MILK PROCESSING BLOCK

66
 SUPPLY CHAIN EXPLANATION WITH DIAGRAME

DEFINITION OF VALUE CHAIN

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

villge level, district level and state level.

67
Second component is suppliers are the farmers and other raw material for manufacturing

the ice creams are provided by MAHAN PROTEINS LTD., IDEAL ICE CREAMS and

BHARAT ESSENCE.

This component is manufacturing process which is describe above. In milk process there

are mainly five steps are required and i.e. homogenization, pasteurization, adding

vitamins, packaging, storing. In this process there are also requirement of warehouse for

storing the product which already made and also for the raw material.

The next step is the distribution channel in which GCMMF plays very important role in

that. It handle all the marketing for AMUL products. GCMMF's products were marketed

through 50 sales offices located across India to 4,000 stockists. These stockists supplied

the products to more than 500,000 retail outlets.

68
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.

Our Product

AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit

"Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning

"priceless", are found in several Indian languages. 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. (Turnover: Rs. 42.78

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

sold at reasonable prices. Of the genesis of a vast co-operative network. Of the triumph of

indigenous technology. Of the marketing savvy of a farmers' organization. And of a

proven model for dairy development.

69
Check out this vast and ever-growing range of 'tasteful' Amul delectable!

"Please click here to download the latest PRODUCT DETAILER".

Bread Spreads
Amul Butter Amul Lite

Utterly Butterly Low fat, low

Delicious Cholesterol Bread

Spread

Delicious Table

Margarine

The Delicious way

to eat healthy

Milk Drinks
Amul Kool Amul Kool Cafe

Kool Koko Nutramul Energy

A delight to Chocolate Drink

Lovers. Delicious A drink for Kids -

Chocolate taste provides energy to

70
 suit the needs of

growing Kids

Amul Kool Amul Kool

Chocolate Milk Flavoured Bottled

Milk

Amul Kool Amul Masti Spiced

Flavoured Tetra Buttermilk

Pack Amul introduces the

Best Thirst Quenching

Drink

Amul Kool Thandai

Powder Milk

71
 Amul Spray Amul Instant

Infant Milk Food Full Cream Milk

Still, Mother's Milk Powder

is Best for your A dairy in your

baby home

Sagar Skimmed Sagar Tea Coffee

Milk Powder Whitener

Which is especially

useful for diet

preparations or for

use by people on

low calorie and

high protein diet.

Amulya Dairy

Whitener

The Richest,

Purest Dairy

Whitener

Fresh Milk

72
Amul Fresh Milk Amul Gold Milk

This is the most

hygienic milk

available in the

market. Pasteurised

in state-of-the-art

processing plants and

pouch-packed for

convenience.

Amul Taaza Double Amul Lite Slim and

Toned Milk Trim Milk

Amul Fresh Cream Amul Shakti Toned

Milk

Amul Calci+

73
Cheese
Amul Pasteurised Amul Cheese

Processed Cheese Spreads

100% Vegetarian Tasty Cheese Spreads

Cheese made from in 3 great flavours.

microbial rennet

Amul Emmental Amul Pizza

Cheese Mozzarella Cheese

The Great Swiss Pizza cheese...makes

Cheese from Amul, great tasting pizzas!

has a sweet-dry

flavour and hazelnut

aroma

Gouda Cheese

74
For Cooking
Amul / Sagar Pure Cooking Butter

Ghee

Made from fresh

cream. Has typical

rich aroma and

granular texture. An

ethnic product made

by dairies with

decades of

experience.

Amul Malai Paneer Utterly Delicious

Ready to cook paneer Pizza

to make your

favourite recipes!

Mithai Mate Masti Dahi

Sweetened

Condensed Milk –

Free flowing and

smooth texture.

75
White to creamy color

with a pleasant taste.

76
Desserts
Amul Ice Creams Amul Shrikhand----

Premium Ice Cream A delicious treats,

made in various anytime.

varieties and flavours

with dry fruits and

nuts.

Amul Mithaee Amul Chocolates

Gulab Jamuns The perfect gift for

Pure Khoya Gulab someone you love.

Jamums...best

served piping hot.

Amul Lassee Amul Basundi

Health Drink

77
Nutramul Amul Shakti

Malted Milk Food Health Food

made from malt Drink

extract has the Available in Kesar-

highest protein Almond and

content among all Chocolate

the brown flavours.

beverage powders

sold in India.

78
 PROFILE OF PARAG DAIRY

Parag Dairy – Delhi was set up in 1974 under the Operation Flood Programme. It is now

a wholly owned company of the National Dairy Development Board (NDDB).

Parag Dairy markets & sells dairy products under the Parag Dairy brand (like Liquid

Milk, Dahi, Ice creams, Cheese and Butter), Dhara range of edible oils and the Safal

range of fresh fruits & vegetables, frozen vegetables and fruit juices at a national level

through its sales and distribution networks for marketing food items.

Parag Dairy sources significant part of its requirement of liquid milk from dairy

cooperatives. Similarly, Parag Dairy sources fruits and vegetables from farmers / growers

associations. Parag Dairy also contributes to the cause of oilseeds grower cooperatives

that manufacture/ pack the Dhara range of edible oils by undertaking to nationally market

all Dhara products. It is Parag Dairy’s constant endeavor to

(a) Ensure that milk producers and farmers regularly and continually receive market

prices by offering quality milk, milk products and other food products to consumers at

competitive prices and;

(b) Uphold institutional structures that empower milk producers and farmers through

processes that are equitable.

79
 At Parag Dairy, processing of milk is controlled by process automation whereby

state-of-the-art microprocessor technology is adopted to integrate and completely

automate all functions of the milk processing areas to ensure high product quality/

reliability and safety. Parag Dairy is an IS/ ISO-9002, IS-15000 HACCP and IS-14001

EMS certified organization. Moreover, its

Quality Assurance Laboratory is certified by National Accreditation Board for Testing

and Calibration Laboratory (NABL)-Department of Science and Technology,

Government of India.

Parag Dairy markets approximately 2.8 million liters of milk daily in the markets

of Delhi, Mumbai, Saurashtra and Hyderabad. Parag Dairy Milk has a market share of

66% in the branded sector in Delhi where it sells 2.3 million liters of milk daily and

undertakes its marketing operations through around 14,000 retail outlets and 845

exclusive outlets of Parag Dairy.

The company’s derives significant competitive advantage from its unique

distribution network of bulk vending booths, retail outlets and mobile units. Parag Dairy

ice creams launched in the year 1995 have shown continuous growth over the years and

today boasts of approximately 62% market share in Delhi and NCR. Parag Dairy also

manufactures and markets a wide range of dairy products that include Butter, Dahi, Ghee,

Cheese, UHT Milk, Lassi & Flavored Milk and most of these products are available

across the country.

The company markets an array of fresh and frozen fruit and vegetable products

under the brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops

and more than 20,000 retail outlets in various parts of the country. Fresh produce from

80
the producers is handled at the Company’s modern distribution facility in Delhi with an

annual capacity of 200,000 MT. An IQF facility with capacity of around 75 MT per day is

also operational in Delhi. A state-of-the-art fruit processing plant of fruit handling

capacity of 120 MT per day, a 100 percent EOU, setup in 1996 at Mumbai supplies

quality products in the international market.

81
 With increasing demand another state-of-the-art fruit processing plant has been

set up at Bangalore with fruit handling capacity of around 250 MT per day. Parag Dairy

has also been marketing the Dhara range of edible oils for the last few years. Today it is a

leading brand of edible oils and is available across the country in over 2, 00,000 outlets.

The brand is currently available in the following variants: Refined Vegetable Oil, Refined

Soybean Oil, Refined Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil

and Filtered Groundnut Oil. Parag Dairy has also launched extra virgin Olive Oil under

the Daroliva brand.

Parag Dairy has over the last 3 decades, harnessed the power of farmer

cooperatives to deliver a range of delicious products and bring a smile on your face. In

times to come, Parag Dairy shall strive to remain one of India’s finest food companies.

List of Products Marketed:

Bread spreads:

 Parag Butter

Cheese Range:

 Parag Processed Cheese

 Parag Pizza Cheese

 Parag Paneer

UHT Milk Range:

 Parag Milk

82
  Parag Fresh Cream

Pure Ghee:

 Parag Pure Ghee

Infant Milk Range:

 Parag spray Milk Food

Milk Powders:

 Paragya Dairy Whitener

 Sagar Skimmed Milk Powder

Fresh Milk:

 Parag Taaza Toned Milk

 Parag Cow Milk

83
 MARKET SHARE OF AMUL SPRAY IN % AGE (Agra)

TERRITORIES AMUL SPRAY PARAG DAIRY

LECTOGIN
Vijay Nagar 1.40 3.61
Sanjay Place 2.80 10.31
Khandari 0.20 4.00
Sikandra 2.40 5.12
Rajpur Chungi 1.40 4.50
Sadar Bazar 1.00 1.40
Shashtripuram 3.70 2.81
Bodla 4.00 1.00
Jeevni Mandi 3.00 8.61
Rawatpara 1.20 2.40
Belanganj 0.10 0.40
Tajganj 15.52 13.52
Lohamandi 0.10 1.20
Rajamandi 0.50 3.80
37.32 62.68
TOTAL

SALES OF BUTTER BY TERRITORY (KG) (Agra)

TERRITORIES AMUL BUTTER PARAG DAIRY

BUTTER
Vijay Nagar 159 0
Sanjay Place 92 30
Khandari 734 72

84
 Sikandra 355 0
Rajpur Chungi 190.5 0
Sadar Bazar 678 0
Shashtripuram 500 42
Bodla 470 2
Jeevni Mandi 350 100
Rawatpara 40.5 0
Belanganj 14 60
Tajganj 259 0
Lohamandi 8 0
TOTAL 3850 306

MARKET SHARE OF AMUL BUTTER IN %AGE

TERRITORIES AMUL BUTTER PARAG DAIRY

BUTTER
Vijay Nagar 3.83 0
Sanjay Place 2.21 .72
Khandari 17.76 1.80
Sikandra 8.49 0
Rajpur Chungi 4.56 0
Sadar Bazar 16.32 0
Shashtripuram 12.03 1.01
Bodla 11.31 0.05
Jeevni Mandi 8.36 2.41
Rawatpara 0.96 0
Belanganj 0.33 1.43
Tajganj 6.23 0
Lohamandi 0.19 0
TOTAL 92.58 7.42

85
SALES OF DAIRY WHITE BY TERRITORY (KG)

AMULYA Parag Dairy OTHERS

TERRITORIES
Vijay Nagar 27 0 9
Sanjay Place 6 5 6
Khandari 51 2 25
Sikandra 46 8 28
Rajpur Chungi 0 0 16
Sadar Bazar 24 2 17
Shashtripuram 5 3 4
Bodla 37 3 4
Jeevni Mandi 28 0 0
Rawatpara 43 0 0
Belanganj 310 34 0
Tajganj 2 0 0
Lohamandi 10 0 0
TOTAL 589 57 109

MARKET SHARE OF DAIRY WHITE IN % AGE (Agra)

AMULYA Parag Dairy OTHERS

TERRITORIES

Vijay Nagar 2.02 0 0.76

Sanjay Place 0.45 0.37 0.45
Khandari 3.72 0.15 1.96

86
Sikandra 3.34 0.58 2.18
Rajpur Chungi 0 0 1.19
Sadar Bazar 1.78 0.37 1.27
Shashtripuram 0.37 0.22 0.38
Bodla 2.83 0.22 0.38
Jeevni Mandi 2.18 0 0
Rawatpara 3.22 0 0
Belanganj 23.20 2.54 0
Tajganj 0.15 0 0
Lohamandi 0.75 0 0
TOTAL 44.01 4.45 8.57

Consumer Perception towards Amul & Parag Dairy Products

Export Potential

India has the potential to become one of the leading players in milk and milk product

exports. Location advantage: India is located amidst major milk deficit countries in Asia

and Africa. Major importers of milk and milk products are Bangladesh, China, Hong

Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf

countries, all located close to India.

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

to low labour cost, cost of production of milk is significantly lower in India.

87
Concerns in export competitiveness are Quality: Significant investment has to be made

in milk procurement, equipments, chilling and refrigeration facilities. Also, training has

to be imparted to improve the quality to bring it up to international standards.

Productivity: To have an exportable surplus in the long-term and also to maintain cost

competitiveness, it is imperative to improve productivity of Indian cattle.

There is a vast market for the export of traditional milk products such as ghee, paneer,

shrikhand, rasgolas and other ethnic sweets to the large number of Indians scattered all

over the world

88
 Chapter 3

Research
methodology

89
 OBJECTIVE OF THE STUDY

Amul & Parag Dairy is the market leader of dairy based food products in Agra

City. Amul is the major competitors in the market against Parag Dairy. It is important to

get an idea regarding Amul’s & Parag Dairy position in Agra City. It would not help

Amul to capitalize on existing potential but also to formulate strategies and to fill the

look holes and gaps to fight the competitive situation

The Objective also contains:

 To determine the market share of Amul & Parag dairy based product.

 To determine the consumer preferences of Amul & Parag dairy product with the

help of some parameters -quality, taste, price, packing style.

 To compare the dairy product of Amul and Parag dairy on the basis of above

parameters

90
 SIGNIFICANCE OF THE TOPIC

 Create the awareness in the market.

 Building confidence in retailers as well as in the customer.

 To Understand the terminologies used in market by retailers.

 Develop the usefulness in enhancing the usability of the product.

 To know different selling skills at various situation of market.

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

customers.

91
 RESEARCH METHODOLOGY

Methodology for a study like this is the most important part .The method of study

operate by me is totally is to increase $ to gather the more information regarding this

project.

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

relevant information. As such the research design appropriate for such studies must be

flexible enough to provide opportunity for considering different aspect of a problem

under study.

I collected the information regarding this project through –

I. PRIMARY DATA

II. SECONDARY DATA

Primary data is collected by the customers and Parag retailers.

Secondary data is collected by retailer & personal interview.

Since our research is descriptive type, so research design is also descriptive.

92
Sample design:

Sampling is a process of obtaining information about an entire population by

examining only a part of it.

As depicted below, I have taken 14 retailers and 30 customers as my sample size

Sample size:

RETAILER : 35
CUSTOMER: 110

Analytical tools: This study is based on collecting data by using well-connected

questionnaire for consumer from various demographic segments and also data is

collected using secondary sources. After collecting data it is arranged in the form of

tables from analysis and interpretation. Graphs and percentage analysis are the main tools

used for the purpose of interpretation.

93
Areas where I made survey

 Vijay Nagar

 Sanjay Place

 Khandari

 Sikandra

 Rajpur Chungi

 Sadar Bazar

 Shastripuram

 Bodla

 Jeevni Mandi

 Rawat Para

 Belan Ganj

 Taj Ganj

 Loha Mandi

94
 LIMITATIONS OF THE STUDY

This survey although carried out with fullest possible efforts and devotion, the

limitation of the time, resources available and limited area chose may lead to limited

representation of the universe. The major limitations from which the study suffers are as

follows.

Time Constraint:-

Time factor has been a very big limitation in the research/survey like this. The

retailers have limited time so they sometimes refuse to answer the questionnaire, also me

as a surveyor has less time to conduct the survey. So the size of the sample was restricted

to Agra.

Biasness in Information:-

It was felt that retailers did not come up with true responses, in several cases the retailers

answered the questions with the help of other members and it was mostly in case of less

educated persons.

Financial Constraint:-

The financial aspect, which includes the traveling cost, cost of administrating

questionnaire and collection of data through other resources was also costly.

Constraint regarding the use of technique:-

95
 The deeper statistical techniques such as analysis using variance, multiple

regressions etc., could not be adopted due to the constraint of time and efforts. So, simple

statistical techniques were used to analyze the data.

Chapter 4

Data Interpretation

&

Graphical analysis

96
 ANALYSIS AND INTERPRETATION OF DATA

I. Which company's dairy product you use?

Interpretation:

55 percent consumers use Amul & 30 per cent used others and

last 15 percent consumer used Parag dairy products.

97
II. Which of the product mostly you go for?

Interpretation:

Amul Ghee used consumer 32%, Parag Ghee used 20% and

others 48%. Milk used by consumer 28% Amul, 25% Parag and others

47%. Butter used by consumer 38% Amul, 12% Parag and 40%

others.

98
III. Are you satisfied with your product?

Interpretation:

80% Consumer satisfied with their products and 20 % consumer

not satisfied their products.

99
IV. Why are you inclined to your product?

Interpretation:

Amul Quality inclined to products by consumer 60%, Parag

satisfied 40%. Brand preferred by consumer e.g. 68% Amul and 32%

Parag. Price satisfaction with consumer 70% Amul and 30% Parag.

100
V. Do you like any change in product?

Interpretation:

All consumers satisfied with their product and some consumer change product

Taste by consumer Amul 80% and no20% and Parag with satisfied 45% and not satisfied

45%. Price by consumer Amul 30% and no70% and Parag with satisfied 40% and not

satisfied 60%. Packing by consumer Amul 25% and no75% and Parag with satisfied 75%

101
and not satisfied 25%. Quality wise Amul 15% and no 85% and Parag with satisfied 60%

and not satisfied 40%.

RETAILER ANALYSIS

I. In dairy products, which company product demand is

higher?

Interpretation:

102
 50per cent consumers demand for Amul dairy products & 30 per

cent consumer preferred others branded products and last 20 percent

consumer preferred Parag dairy products.

II. Reason……………………………………………

Interpretation:

103
 Amul dairy products Packing Style wise by consumer 80%, Parag preferred 20%.

Brand preferred by consumer e.g. 70% Amul and 30% Parag. Taste preferred by

consumer 68% Amul and 32% Parag. Price wise by consumer 60% Amul and 40% Parag.

III. Which product of Amul is preferred by customers?

Interpretation:

104
 All consumers Preferred with their product and some consumer change product

Taste by consumer Amul 80% and no20% and Parag with Preferred 45% and not

Preferred 45%. Price by consumer Amul 30% and no70% and Parag with Preferred 40%

and not Preferred 60%. Packing by consumer Amul 25% and no75% and Parag with

Preferred 75% and not Preferred 25%. Quality wise Amul 15% and no 85% and Parag

with Preferred 60% and not Preferred 40%.

105
 Chapter 5

Findings,
suggestions &
conclusion

FINDINGS

106
1. "The company caters to the Indian palate, which is its primary driver of success".

In light of this statement, critically examine the marketing strategies adopted by

Amul & Parag Dairy to capture a sizeable market share of the organized Dairy

based food Product in India.

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

mix of a company. Critically analyze the promotion strategies adopted by Amul

India Pvt. Ltd. What other efforts must the company take to effectively promote

its products?

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

competitive scenario in the Dairy Products in India, where competitors such as

Parag Dairy are introducing several innovative products, what measures must

Amul take to remain competitive? Explain in detail.

107
 RECOMMENDATIONS

1. Company should have feed back from market and consumer about

the Dairy based Products.

2. The more Flavors of Amul & Parag Dairy Products should become

in the Market.

3. The company provided some small schemes for retailer also.

4. The company gives some gifts for customer also.

5. The company should associate itself with some games or

tournaments like football, cricket and so on.

6. Company should provide sponsored seminar market intelligence-

Company should maintain the healthy relationship with market distribution

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

7. Company should check the market real position help the trainees

and other survey organizations.

8. Company should launch its website and use new advertising

channels; i.e.

♦ Trailer in cinema halls

♦ Hoardings

♦ Spencer any education scholarship or games.

108
 CONCLUSION
I have studied and analyzed the Dairy based food Product Market of Amul &

Parag Dairy Products at Agra on different aspects of the markets, outlets, distribution &

consumers. The survey was conducted in various areas of Agra city with great

enthusiasm. This project report Concludes that Amul & Parag Dairy are easily available

in various parts of Agra. The Parag distribution channel of the Amul is much strong the

most important thing, which I feel to improve is “the availability to retailers &

consumers”.

The retailers & consumers both promotes either Amul or Parag Dairy of it’s brands

for could be with regard to order processing, warehousing, inventory management &

transportation; besides that shop covering, exit from the market by the salesmen

glow shine board, schemes, incentives, prizes, gifts, discount, returning of defective

goods, proper supply should be improved.

My job was to make marketing managers aware of all the problems so that a

proper course of action is required to be undertaken.

109
ANNEXURE

110
 QUESTIONNAIRE

CUSTOMER: ADDRESS:

NAME: INCOME:

I. Which company's dairy product you use

a) Parag b) Amul

c) Others

II. Which of the product mostly you go for?

a) Ghee b) milk

c) Butter d) cheese

111
III. Are you satisfied with your product?

a) Yes b) No

REASON…

IV. Why are you inclined to your product?

a) Quality b) brand

c) Price d) taste

V. Do you like any change in product

a) Yes b) no

VI. IN WHICH PARAMETER: ……………………………

a) Taste b) price

c) Packing style d) quality

RETAILER: ADDRESS:

NAME: INCOME:

VII. In dairy products, which company product demand is higher?

a) Amul b) Parag dairy c) others

112
 VIII. Reason……………………………………………

a) Price b) taste

c) Brand d) packing style

IX. Which product of Amul is preferred by customers?

a) Ghee b) milk

c) Cheese d) butter

e) Any other

REASON…

a) Price b) taste

c) Quality d) packing style

X. Which product of Parag dairy is preferred least by customers?

a) Ghee b) milk

c) Cheese d) butter

e) Any other

XI. Which product of amul is preferred least by customers?

a) Ghee b) milk

c) Cheese d) butter

e) Any other

113
 XII. Which of Parag dairy is preferred least by customer?

a) Ghee b) milk

c) Cheese d) butter

e) Any other

XIII. Rank the preferences of consumers for Amul $ Parag dairy.

Amul Parag dairy Others

Ghee
Cheese
Dahi
Butter
Milk
Others

114
 COMPARATIVE STUDY OF AMUL AND PARAG DAIRY PRODUCTS

Consumer Parag Dairy Amul

Ghee Milk Butter Cheese Ghee Milk Butter Che
Preferences
ese
1. Price High High High High Low Low Low Low
2. Quality High High High High Good Good Good Good
3. Taste Better Better Better Better Good Good Good Good
4. Packing Style Better Better Better Better Best Best Best Best

BIBLIOGRAPHY

Market Research - Luck and Rubin

115
Research Methodology - C.R. Kothari

Product Management - Ramanuj Majumdar

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

 www.google.com

 www.amul.com

 www.Paragdairy.com

116