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I ntensification the Market Segment of AMUL I ce-Cream

Submitted By-
Nikhil Guwalani



Karnavati Knowledge Village,
907/A, Uvarsad, Dist. Gandhinagar.
Gujrat-382422

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DECLARATION

I hereby declare that this report on Intensification the market segment of AMUL Ice Cream in
Ahmadabad submitted to United world School of Business, Ahmadabad in fractional fulfilment of the
requirement to certify successful completion of Summer Internship Programme, is original and bonafide
work carried out by me.
The pragmatic findings in this report are based on the data collected after AMUL Ice Cream Market
Segment research and have not been taken or hackneyed from any other sources.


Place : Ahmedabad
Date - 2 July 2014




Signature
Name: Nikhil Guwalani
Batch, 2013-2015.



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CERTIFICATE

This is to certify that the report submitted in partial fulfillment for the award of certificate
declaring partial completion of the Post Graduate Diploma in Management of United World
School of Business is a result of the bonafide research work carried out by Mr. Nikhil
Guwalani under my supervision and guidance. To the best of my knowledge no part of this
report has been submitted for award of any other degree or diploma or any commercial
purpose.

Date
Place

Faculty guide : ______________
Signature: ______________
United World School of Business, Ahmadabad






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ACKNOWLEDGEMENT
It is with a sense of gratitude that I acknowledge the effort of a whole host of the well-wishers who in some
way or the other contributed in their own special ways to the success of this effort
Individual effort alone can never contribute in totality for the successful completion of any events. First of
all I wish to express my sincere gratitude towards my institute UWSB Ahmadabad, for providing me such a
wonderful environment .I am sincerely thankful to our Managing Director Mr.Ritesh Hada Sir, our
Director of Operations Prof. Jaideep Banerjee Sir, Dean of Academics Prof. Manas Chakraborty Sir
and Director Prof. Bhuwaneshwar Gupta Sir, for their constant effort in enriching us with their wisdom
and huge practical experience. I am also very thankful to GCMMF (Maninagar Branch) for giving me an
opportunity to work with such an esteemed organisation. I want to thank Mr.Hemant Gauni for giving us
the opportunity to work under him and learn a lot about the market closely. I also want to thank Mr. Nimit
Doshi my Project guide, who guided me in day to day matter. I am indeed very thankful to my mentor ,
my faculty guide, Prof. Laxman Singh Rathore without whom this two months training would not have
turned as exciting as it was. He helped me whenever I am in need during the course of this project and
giving me insights about how to proceed further.. I would also express my sincere thanks to Mr. Alpesh
Dalwadi and Mr. Deven Bhatt of GCMMF letting me conduct the survey Mr. Gaurang Patel owner of
Smith Marketing, the distributor of Amul in Ahmedabad for his time, to all the retailer whom I
interacted during my survey for giving me their valuable time and providing me the information along with
the suggestions that helped me during this ensure.
My thanks reach out to the United World School of business, and all the members and able staff, for their
help and encouragement

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TABLE OF CONTENT

1. The Company 3
1.1 Marketing.... 5
1.2 Human Resources 8
1.3 Operations... 11
1.4 Finance 13
2. The Customers.. 14
3. The Competition... 14
4. The Environment.. 15
5. The Technology 16
6. SWOT Analysis 17

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INDIAN DAIRY INDUSTRY
Size of the
Industry
More than 10 million dairy farmers
belong to 96,000 local dairy
cooperatives, who sell their product to
one of 170 milk producers' cooperative
unions who in turn are supported by 15
state cooperative
Geographical
distribution
Delhi, Punjab, Mumbai, Gujarat, Surat,
Lucknow, Bihar, Hyderabad
Output per
annum
Growing 5 % per annum
Market
Capitalization
The industry contributes about Rs
1,15,970 crores (US $ 25,771
million) to the national economy.


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History
India is the highest milk producer in the entire globe. India is well
known as the 'Oyster' of the global dairy industry, with opportunities
galore for the entrepreneurs globally. It might be dream for any nation
in the world to capitalize on the largest and fastest growing milk and mil
products' market. The dairy industry in India has been witnessing rapid
growth with liberalization. As the economy provides good opportunities
for MNCs and foreign investors to release the full potential of this
industry. The main objective of the Indian Dairy Industry is to manage
the national resources in a manner to enhance milk production and
upgrade milk processing using innovative technologies.


The crossbred technology in the Indian Dairy Industry has further augmented with the viability of the dairy
units by increasing the milk production per animal. Then subsequently milk production has also increased at
an exponential rate while the benefits of an increase in milk production also reached the consumers from a
relatively lower increase in the price of milk. The favorable price environment for milk producers for the
Dairy Industry in India however appeared to have weakened during the 90's, a decline in the real price of
milk being noticed after the year 1992. And then slowly regained it is glory after 1992 to till now.
In India dairying from very much earlier is regarded as an instrument for social and economic development.
The country's milk supply comes from millions of small producers, who are dispersed throughout the rural
areas. All these farmers maintain an average herd of one or two milch animals, comprising cows and/or
buffaloes. Mostly ample labor and a small land base encourage farmers to practice dairying as an occupation
subsidiary to agriculture. As income from crop production is seasonal instead dairying provides a stable
which is a year-round income and also an important economic incentive for the small farmer.






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Brief Introduction


India had tremendous milk production in 40 years and has become the world's
largest milk-producing nation with a gross output of 84.6 million tons in 2001.
The Indian Dairy Industry has achieved this strength of a producer-owned and
professionally-managed cooperative system, despitethe facts that a majority of
dairy farmers are illiterate and run small, marginal operations and for many
farmers, selling milk is their sole source of income. More than 10 million dairy
farmers belong to 96,000 local dairy cooperatives, who sell their products to one
of 170 milk producers' cooperative unions who in turn are supported by 15 state
cooperative milk marketing federations.
In India dairy business has been practiced as rural cottage industry over the years. Semi-commercial dairy
started with the establishment of military dairy farms and co-operative milk unions throughout the country
towards the end of the 19th century. Since Independence this Industry has made rapid progress. A large
number of modern milk and milk product factories have since been established.The organized dairies in
India have been successfully engaged in the routine commercial production of pasteurized bottled milk for
Indian dairy products.
The growth of Indian Dairy Industry during the last three decades has been impressive, at more than 5% per
annum; and in the 90's the country has emerged as the largest producer of milk. This is not a small
achievement when we consider the fact that dairying in India is largely stringent that farmers in general keep
dairy animals in proportion to their free crop and also are available for family labor with little or no
purchased inputs and a minimum of marketed outputs. The existence of restrictive trade policy milk in the
Diary Industry and the emergence of Amul type cooperatives have changed the dairy farming practices in
the country. Farmers have gained the favorable price for their milk and for their production which was
essentially a self-reliant one is which are now being transformed into a commercial proposition.
In India Milk production is dominated by small and marginal land-holding farmers and also by landless
labourers who in aggregate own 70% of the national milch animal herd.And as the crop production on 78%
of the agricultural land still depends on rain, which is prone to both drought and floods, rendering
agricultural income is very much uncertain for most of the farmers. Dairying, as a subsidiary source of
income and occupation, is real relief to most of the farmers in the society. Usually one or two milch animals
enable the farmers to generate sufficient income to break the vicious subsistence agricultural-debt cycle.
The Operation Flood which is the successful Indian dairy development programmed has analyzed that how
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food aid can be utilized as an investment in building the type of institutional infrastructure that can bring
about national dairy development. Programmers like this, with similar policy orientations, may prove to be
appropriate to dairy development in India.
India in the early 1950's was commercially importing around 55000 tones of milk powder annually to meet
the urban milk demand. Most of the significant developments in dairying have taken place in India in this
century only.

India's Milk Product Mix

Fluid Milk 46.0%
Ghee 27.5%
Butter 6.5%
Curd 7.0%
Khoa (Partially Dehydrated Condensed Milk) 6.5%
Milk Powders, including IMF 3.5%
Paneer & Chhana (Cottage Cheese) 2.0%
Others, including Cream, Ice Cream 1.0%

Total contribution to the economy/ sales
The Indian Dairy Industry engages in the production and processing of milk & cream. This industry is
involved in the manufacture of various dairy products like cheese, curd, yoghurt etc. The Indian Dairy
Industry specializes in the procurement, production, processing, storage and distribution of dairy products.
India as nation stands first in its share of dairy production in the international scenario. The industry
contributes about Rs 1,15,970 to the national economy.
Employment opportunities
The Indian Diary industry which is in the developing stage provides gainful employment to a vast majority
of the rural households. It employs about 8.47 million people on yearly basis out of which 71% are women.
Jobs in Indian dairy industry are mainly in the fields of production and processing of dairy products. An
individual with minimum of 60% marks who has bachelor's degree course in the dairy technology can easily
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be availing an opportunity to work in this industry. For the graduation course in Dairy technology one has to
qualify the All India Entrance Test that is affiliated to the Indian Council of Agricultural Research. After
that the person can continue with his masters in dairy technology. Jobs would be for the following positions.
Dairy Scientists: The main job of the dairy scientists is to deal with collection of milk and taking
care of the high yielding variety of animals.
Dairy Technologists: the work of Dairy technology requires procurement officers who take the
responsibility of collecting milk from farmers, milk booths ad cattle-rearers. This particular
procurement officer should well understand the latest technology that is applicable in maintaining the
quality of milk of the process of transporting it to the desired location.
Dairy Engineers: dairy engineers are usually appointed is to set up and maintain dairy plants.
Marketing Personnel: These individuals deal with the sale and marketing of milk together with
milk products.
Amuls Success Story
Amul's success had huge impact in the creation of same structure of milk
producers in other districts of Gujarat initially. Amul's experience was
driving forcein project planning and execution. The 'Anand Pattern' was
followed in Kaira district, Mehsana, Sabarkantha, Banaskantha, Baroda
and Surat districts. As even before the setting up of the Dairy Board of
India, farmers and their leaders carried out various tests of the hypotheses
that explained Amul's success. All through these districts, milk producers
and their leaders experienced significant commonalties and found easy,
effortless ways to adapt Amul's gameplan to their respective areas. This
eventually led to the Creation of the National Dairy Development Board
with the clear mandate of replicating the 'Anand pattern' in other parts of
the country. Initially this pattern was followed for the dairy Industry but
at later stage oilseeds, fruit and vegetables, salt, and tree sectors also
benefited from its success.




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INDIAN DAIRY INDUSTRY AT A GLANCE IN 2011 - 2012
India ranks first in the world in milk production, which went up from 17 million tonnes in 1950-51 to 121.84
million tonnes in 2010-11. The per capita availability of milk has also increased from 112 grams per day in
1968-69 to 281 grams in 2010-11. The world average per capita availability was 284 grams per day in 2009-
10 compared to 273 grams per day for India.

The Indian dairy sector acquired substantial growth momentum from the Ninth Plan onwards, achieving an
annual output of 121.84 million tones of milk during 2010-11. This represents sustained growth in the
availability of milk and milk products for the growing population of the country.

Dairying has become an important secondary source of income for millions of rural families and has
assumed an important role in providing employment and income-generating opportunities next to
agriculture.
INDIAN DAIRY INDUSTRY AT A GLANCE IN 2012 - 2013

India ranks first in the world in milk production, which has gone up from 53.9 million tonnes in 1990- 1991
to 127.9 million tonnes in 2012-13. The per capita availability of milk has also increased from 176 grams
per day in 1990s to 290 grams per day in 2012-13. This is comparable with the world per capita availability
of milk at 289.31 grams per day for 2012. This represents sustained growth in the availability of milk and
milk products for the growing population of the country, apart from being an important secondary source of
income for rural families.
The Intensive Dairy Development Programme, strengthening infrastructure for quality and clean milk
production, Assistance to Cooperatives, and Dairy Entrepreneurship Development Scheme are some of the
Indian Governments important schemes/programmes for meeting the growing demand for milk. The
National Project for Cattle and Buffalo Breeding has been under implementation since 2000. A new scheme
called the National Dairy Plan Phase I has also been initiated in 2012-13.


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1.The Company
Brief History:
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 Amul (Anand Milk-producers Union Limited), formed in 1946, is a dairy
cooperative movement in India.


The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless. It was suggested by a
quality control expert in Anand. It is a brand name managed by an apex cooperative organization, Gujarat
Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.41
million milk producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling
example of a co-operative organization's success in the long term. The Amul Pattern has established itself as
a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which
has made India the largest producer of milk and milk products in the world. It is also the world's biggest
vegetarian cheese brand. Amul's product range includes Milk powders, Milk, Butter, Ghee, Cheese, Curd,
Chocolate, Ice-Cream, Cream, Shrikhand, Paneer, Gulab jamuns, Basundi, Nutramul brand and others.
Situation of farmers over five decades ago, the life of an average farmer in Kheda District was very much
like that of his/her counterpart anywhere else in India. His/her income was derived almost entirely from
seasonal crops. The income from milk buffaloes was undependable. Milk producers had to travel long
distances to deliver milk to the only dairy, the Polson Dairy in Anand often milk went sour, especially in
the summer season, as producers had to physically carry milk in individual containers. Private traders and
middlemen controlled the marketing and distribution system for the milk. These middlemen decided the
prices and the off-take from the farmers by the season. As milk is perishable, farmers were compelled to sell
it for whatever they were offered. Often, they had to sell cream and ghee at throw-away prices. In this
situation, the private trader made a killing. Moreover, the government at that time had given monopoly
rights to Polson Dairy (around that time Polson was the most well known butter brand in the country) to
collect milk from Anand and supply to Bombay city in turn (about 400 kilometers away). India ranked
nowhere amongst milk producing countries in the world in 1946. Gradually, the realization dawned on the
farmers with inspiration from then nationalist leaders Sardar Vallabhbhai Patel (who later became the first
Home Minister of free India) and Morarji Desai (who later become the Prime Minister of India) and local
farmer, freedom fighter and social worker Tribhovandas Patel, that the exploitation by the trader could be
checked only if they marketed their milk themselves. Amul was the result of the realization that they could
pool up their milk and work as a cooperative.
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Vision & Mission:

Vision:
To be part of everyones life.
To provide satisfaction to farmers, customers, employees and distributors.

Mission:
To motivate and dedicate workforce, expansion of distribution network, creative marketing,
consumer education, product innovation.
To remain market leaders by providing milk at a basic and at affordable price.
GCMMF - An Overview
Year of Establishment 1973
Members
17 District Cooperative Milk Producers' Unions (16 Members & 1
Nominal Members)
No. of Producer Members 3.18 Million
No. of Village Societies 16,914
Total Milk handling capacity per
day
16.8 Million liters per day
Milk Collection (Total - 2012-13) 4.66 billion liters
Milk collection (Daily Average
2012-13)
12.7 million liters
Cattle feed manufacturing Capacity 5890 Mts. per day
Sales Turnover -(2012-13) Rs. 13735 Crores (US $ 2.54 Billion)


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1.1 Marketing:
Product Portfolio of Amul
MILK ICE CREAM &
CHOCHOLATE
WET PRODUCTS DRY PRODUCTS
AMUL TAAZA AMUL MILK
CHOCOLATE
AMUL BUTTER AMUL FULL CREAM
MILK POWDER
AMUL GOLD AMUL FRUIT & NUT
CHOCOLATES
AMUL PIZZA CHEESE AMULYA DAIRY
WHITENER
AMUL SLIM & TRIM
MILK
ALMOND BAR AMUL MALAI
PANEER
SAGAR TEA &
COFFEE WHITENER
AMUL CHOLATE
MILK
ROYAL TREAT
RANGE
AMUL SHRIKHAND AMUL MITHAEE
GULABJAMUN MIX
AMUL FRESH CREAM MILK BARS AMUL PURE GHEE AMUL MITHAEE
KULFI MIX
AMUL SNOWCAP
SOFTY MIX
SUNDAE RANGE AMUL MASTI DHAI AMUL INFANT MILK
FORMULA 1&2
AMUL COOL MILK FUNDOO RANGE ICE
CREAM
AMUL BUTTER MILK NUTRAMUL
MALTED MILK FOOD
AMUL TAZA DOUBLE
TONED MILK
TRICONE CONES AMUL LASSEE
AMUL SAKTI
FLAVOURED MILK
NUT O MANIA
RANGE
AMUL MITHAEE
GULABJAMUNS



Market Share:
The organised ice cream industry in India has a booming growth rate of 12-15% annually. Amul ice
cream has 40% of market share as of now (4.5 times larger than nearest competitor) as the
distribution network is more than 800 towns. Amul is capable of delivering ice-cream from Kashmir
to kanya kumari and from Gujarat to north east. No other ice cream brand has been able to cater the
nations ice cream demand in such a wide geographical area. So this makes Amul Ice cream, Indias
top brand.

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Sales Force


Pricing Strategies
AMUL employs different pricing policies for different products depending upon the life cycle stage of the
product, market condition and the nature of the product. Now, in case Amul launches a new product into the
market it keeps the price low so as to penetrate in the new market.
While deciding the price of its products AMUL takes into consideration all the points mentioned factors:
Cost of raw materials
Cost of labour
Profit margin of distributors
Prices of competitors
Fair returns to farmers
Various administrative & manufacturing overheads

Promotion Strategies
AMUL implements various sales promotion tools for wholesalers, retailers, sales, force and customers. They
offers 3% to 3.5 % profit margin to stimulate its wholesaler and retailers. The sales people are given a
commission on a fixed percentage on their sales. The profit of the company reaches directly to the owners
i.e. the farmers in the way of increase in the price of milk, the other technical assistance and subsidies. The
ZONAL INCHARGE
DEPORT INCHARGE
EXECUTVES
F.S.R (FIELD SALES REPRESENTATIVE)

PILOT SALES MAN
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company also introduces various schemes for the customers like more quantity at less price, free gifts and
contests. The company had introduced a contest namely AMUL MAHARANI CONTEST in the previous
year for promoting its products.
Distribution Network
AMUL follows INCLUSIVE DISTRIBUTION
The Three Tire AMUL Model:-
It is basically a three tire cooperative structure. This structure consists of a dairy cooperative society at the
village level affiliated to a milk union at the district level which in turn is federated into a milk federation at
the state level. Milk collection is done at village dairy society; milk procurement and processing at the
district level milk union and milk and milk products marketing at the state milk federation.



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1.2 Human Resources:
Thus, Human Resource Management refers to set of program, functions, and activities designed and carried
out in order to MAXIMIZE the employees as well as organizational efficiency and effectiveness.

Organization Strucure

The HR planning in Amul is very smooth and transparent. It consists of the following:
Members 13 District Cooperatives Producers Union
Number of producer members 2.79 million
Number of village societies 13,328
750 employees of marketing arm.


AMUL is a three tier co-operative organization. The first tier is the co-operative society at the village, of
which; milk producers are voluntary members, managing the co-operative through a democratically elected
9-member managing committee, and doing business by purchasing milk from members and selling it to the
district level co-operative. There are more than 11,000 co-operatives in villages of Gujarat.
The second tier is the district co-operative that processes milk into milk products, markets locally and sells
surplus to the state co-operative for national and international marketing. There are 12 district co-operatives
each being managed by a 15-member board elected by the college comprising the nominated representatives
or chairmen of the village cooperatives.
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Third tier is the state level co-operative - the Gujarat Co-operative Milk Marketing Federation (GCMMF)
responsible for national and international marketing of milk and milk products produced and sold to it. The
GCMMF is managed by the board democratically elected by and from amongst the chairmen of the district
co-operatives. The entire three-tier structure with the GCMMF at its apex, is a unique institution because
it encompasses the entire chain from production of raw material to reaching the consumer with the end
product. Every function involves human intervention: 23.60 lakh primary milk producers; 35,000 rural
workmen in more than 11,400 village societies; 12,000 workers in 15 dairy plants; 750 marketing
professionals; 10,500 salesmen in distribution network and 600,000 sales-men in retail network.
Accumulation of human capital is sine qua non for the development and growth of any enterprise or
economy. The GCMMF is sensitive towards CSR. It believes that technology and capital are replicable
inputs but not the human capital. Since men are the basis for achieving the CSR, the GCMMF lays emphasis
on their development into competent, courteous, credible, reliable, responsive communicators and
performers.

The GCMMF hires and trains people to take advantage over its competitors. It has developed in-house
modules for training and competence buil-ding to improve andupgrade of their knowledge; communication
skills to understand the customer, be responsive to customer requirements, and communicate clearly for
trouble shooting of problems. They are expected to be courteous, friendly, respectful, and considerate to the
customer. To improve the credibility and trustworthiness of the managers it is important they perform
consistently and accurately every time and at all times. The structure of salary and perquisites is altogether
different. The first and foremost the staff must get satisfaction from the job they do.

Labour Welfare Scheme
MEDICAL ASSISTANCE SCHEME:
The society has a comprehensive medical benefit scheme for its employees. The employee and
his dependent family members are eligible for reimbursement of medical expenses in respect of
any ailment, disease, injury, or disability suffered by them. For routine medical treatment the
ceiling is as under:
No. Of family members Ceiling for routine Medical Treatment(per annum)
For 2 family members Rs. 2250


For 3 family members Rs. 4500
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In case of chronic diseases, specialized treatments, hospitalization, pathological and radiological
tests special medical sanctions are given at actual.



Canteen
Canteens have been provided at our factories, which provide lunch, tea and snacks. Canteen
management committees consisting of the employees also monitor the menus, cleanliness, quality
of food. Canteen Subsidy is paid @ 7% of the basic pay to officers and @ 5% of basic pay to
workmen.

Transport Facilities
AMUL is providing bus facility to its employees for coming to their workplace.






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1.3 OPERATIONS
Process
Collection of Raw Milk:
Raw milk is collected from different co-operatives of Gujarat. About 12,22,000 litres of raw
milk is collected per day. Before this milk is sent to the laboratory for testing the FAT & SNF
proportion, the milk is separated from the raw milk. The milk is taken from the chilling centres to
Collection of Raw Milk.

Testing of Raw Milk:
After collecting the samples of milk they are taken to the laboratory where two types of test are
conducted:
1) Electronic Milk Test: Before pasteurizing the milk the samples are taken to the laboratory . In
the laboratory with the help of machine called electronic milk tester, the proportion of SNF & FAT is
checked with phosphate solution. When the color of the milk become yellow, it is sent for
pasteurization.
2) Methyline Blue Reduction Test: This test is conducted for checking for how long the milk will
remain fresh. To check this, 10 ml of milk is taken and 1 ml of METHYL solution is added to it. It is
then kept under water at 57 degree Celsius. After one hour if the solution losses its color then it is
called raw milk. If the solution remains the same even after 5 hours than it is considered fresh milk,
which remains constant for a long period of time. The dairy fixes the proportion of SNF & FAT.
After laboratory gives green signal and conforming the raw milk at reception dock is brought into the
house connected with pump is sent to the milk processing plant. This is then chilled below 4 degree
Celsius and then stored in the milk silos. After that milk is processed which has two steps:
Pasteurizing and Standardizing?

Pasteurizing and Standardizing:
To pasteurize the milk means to kill the germs in the milk by a particular method which was
invented by a scientist called JAMES PASTEUR and so the name pasteurization. In the
pasteurization method the milk is first heated at 72 degree c to 76 degree c for 15 seconds and then it
is immediately cooled below 4 degree c by this method they destroy the pathogenic bacteria present
in the raw milk. But if the right degree of temperature is not provided there are chances that
milk might contain germs. After this process some milk goes to separator machine and remaining is
proportionately sent for standardization.
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Standardization process bifurcates the milk in 3 categories varying according to the SNF & FAT
contents. The equipment named OSTA. Auto Standardization Adjusts the FAT directly. The
computer is just ordered whether gold or standard milk is to be rationed and the same will be
received with appropriate content

Separation Process:
Separation Process Separator machine separates two kinds of products, skimmed milk and
cream, through channels. There are 100 disks fixed in separator machine, which revolve at 5000
rpm(revolution per minute). It is taken to the tanks, which has the capacity of 20000 litres. Whenever
the milk is needed from the tank, it is tested in the laboratory and the deficit proportion FAT is added
by mixing cream. This process continues for 24 hours.

Quality Check:
Pasteurized milk is sent to the quality Assurance laboratory of the dairy plant. Within 14
seconds the FAT & SNF proportion is received regarding 30 lack litres of milk. The total investment
put into the lab by the dairy plant is Rs. 6 crores. The laboratory only checks and analyses the
powder, milk and ghee. There is a separate ice cream analyzing laboratory. Packaging Process After
the milk is sent for the packaging to the milk packing station in the dairy plant. In the milk packaging
stations there are huge pipelines and behind them there is polyfil machine from which the material to
pack milk comes out. From each of these 12 machines 100 pouches are packed in one single minute.

Storage:
Then the milk is sent to the cold storage of the dairy where the milk is stored until it is dispatched.
Here the milk is stored is temperature ranging from 5 degree c to 10 degree c, it is maintained with
the help of exhaust fans having silicon chips. About 40000 litres of milk is dispatched from the cold
storage of the dairy plant every day. The damaged pouches are kept aside and the milk is once again
put to the storage tank.



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1.4 FINANCE
Turnover
The Gujarat Cooperative Milk Marketing Federation (GCMMF) which markets the popular Amul brand of
milk and dairy products crosses the 2 billion dollar sales turnover mark. During the financial year 2012-
2013, GCMMF registered a topline growth of 17.72%, achieving turnover of Rs 13,735.15 crore.

Capital structure
Amul is co-operative organization therefore there is nothing like market value of share whenever Amul
needs funds it issue adequate number of share, but only to its shareholder or members of societies and not to
the others. The capital structure of firm would generally denote the ratio of own capital do the borrowed
capital. The capital structure thus, indicates how the capital has been raised

Sources of Funds
Inflow:
Source of capital of Amul are:
Federation gives them dairy amount decided by union.
Fix deposit of society is major source of finance.
Interest of fixed deposit of bank use SBI, BOB, and Sardar Sarovar Bond etc is one of the source of finance.
Net profit of Amul during the year 2012-2013 is Rs. 3,366.75 lacs

Bankers:
UTI-For the salary related transaction.
Kaira district-Cooperative bank for the payment of society.
State Bank of India
Bank of Baroda
Bank of Maharastra

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2. The Customers
The brand name of Amul is just enough of any customers to trust its any product or the quality of the
product. Amul ice cream is made up of milk fat unlike the other products which are made up of
vegetable fat and are not good for health this are also called frozen desserts not ice cream. Amul has
always brought newness in each and every product keeping in mind the taste and preference of the
consumers also the changes in the market scenario. Now when we see the variations in the ice cream
we will easily make out that range of the products are also affordable in terms of price wise and
properly segmented i.e. a 6-12 years of a guy will always prefer or always tend to buy a multicolour
type of a ice cream, and 13 or above will always prefer the ice cream which suits their taste and
preference. On the other hand as per market survey, most of the people are today becoming health
and calorie conscious. Amul wanted to capture this health conscious market segment of ice cream
consumers with the launch of its specially created Probiotic wellness ice cream. Essentially, it would
not only convert non- consumers of ice-cream into eaters but also increase frequency of ice cream
eating. As the Probiotic help in digestion, improve the immune system, fight against allergic
reactions and are effective in controlling diarrhea. They also help in the prevention of formation and
growth of colon cancer and enhance brain activity.
We can also say that it is a wellness ice-cream as now the diabetic patients can also enjoy their
desires for ice-cream.






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3. The Competition

AMUL AS COMPETITIOR
PRODUCT / BRANDS COMPETI TORS
BUTTER BRITANNIA , NESTLE , MOTHER
DAIRY
CHEESE BRITANNIA
BABY FOOD NESTLE , HEINZ
DAIRY WHITENER SEGMENT BRITANNIA , NESTLE, MOTHER DAIRY
ICE CREAM HUL, MOTHER DAIRY , HAVE MORE ,
VADELAL , SHEETAL, CREAM BELL
CHOCOLATES CADBURY , NESTLE
PIZZA PIZZA HUT , DOMINOS etc
FLAVOURED MILK BRITANNIA , NESTLE
PANEER BRITANIA
SWEET CONDENSED MILK NESTLE , MOTHER DAIRY
CURD NESTLE , MOTHER DAIRY
ULTRA HIGH TREATED MILK NESTLE , MOTHER DAIRY

As we can see in the above table that there are big players in the market competing with Amul. Still Amul
succeeds to maintain the rank 1 in the Indian market from the past 50-60 years.
The credit also goes to the advertisement strategy of Amul. In fact Amul has one of the most successful ad
campaigns in the country. Innovative and refreshing. Also the longest running advertising campaign ever
and the reason behind it is the simplicity of the ads. These ads do not involve any high flying or high tech
special effects. The main reason for their success is the range of topics they cover in their ads. The ads
always take a short at the current hot topics in the news. Such has been the popularity of these campaigns
that people go down to the nearest Amul hoarding just to see the latest ad. On the other hand all the other
company hires brand ambassadors for their ad campaign which increases the cost of advertisements still not
that effective.


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4. The Environment
Micro-Environment
It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known as 'AMUL', 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. Its success has not only been emulated in India but serves as a
model for rest of the World. It is exclusive marketing organisation of 'Amul' and 'Sagar' branded products.
It operates through 48 Sales Offices and has a dealer network of 5000 dealers and 10 lakh retailers, one of
the largest such networks in India. Its product range comprises milk, milk powder, health beverages, ghee,
butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc
Macro-Environment
GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. Many
of our products are available in USA, Gulf Countries, Singapore, The Philippines, Japan, China and
Australia. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy
Product Exports for the last 13 years. For the year 2009-10, GCMMF has been awarded "Golden Trophy"
for its outstanding export performance and contribution in dairy products sector by APEDA. The Amul
brand is not only a product, but also a movement. It is in one way, the representation of the economic
freedom of farmers. It has given farmers the courage to dream. To hope. To live.
In last five years, milk producers of GCMMF planted around 311.98 lakhs tree saplings in 21 districts of
Gujarat. By doing so, milk producers of Gujarat Dairy Cooperatives have shown their concern, awareness
and commitment for betterment of environment.First tree plantation programme (15th August, 2007) was
carried out on "one member, One tree" basis. Second tree plantation programme (15th August, 2008) in
which around 52.74 lakhs tree were planted was conducted on "one member three tree" basis. In year 2009
and in year 2010, in mass tree plantation programme around 84.24 and 83.5 lakhs tree saplings were planted
respectively. The programme was conducted on "One member, Five tree" basis. Further, this year 2011
around 72.6 lakhs trees were planted, the programme was carried out as per the same process and
procedures followed in last year.

Year wise details of tree plantation and survival of tree saplings planted is as under.
Sr.
No
Year of tree
plantation
No. of trees planted (in
lakhs)
No. of trees Survived (in
lakhs)
Survival
percentage
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1 2007 18.90 11 58
2 2008 52.74 26 49
3 2009 84.24 38 45
4 2010 83.5 39 47
5 2011* 72.6 34 47
Total 311.98 148.122 47
*estimated (as survey for survival percentage of the saplings planted in year 2010 is ongoing)
According to statistics of Forest Survey of India considering on an average 30-40 cm diameter of these trees,
106 trees would provide one hectare of green tree cover. Considering 47% survivability of planted trees
(based on post plantation survey data, around 148.12 lakhs out of 311.98 lakhs tree planted survived during
last five years), when they fully grow up, would provide additional 1,39,735 ha. of green cover which is
additional 6.41 percent forest cover of Gujarat State of India.














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5. The Technology
According to our survey we have come to know that Amul has moved a step further in integrating SAP ERP
System with www.amulwd.com site through which Wholesale Distributers (WDs) can book their order
Online and also view their Ledger Balance on real time basis.
Amul Federation has developed SMS facility for sending SMS to various groups viz. To sales team,
distributers and Amul parlour franchisees with regard to various promotional initiatives, New Product
Launches and advertising campaigns. Amul federation has also developed Mobile Application to automate
order booking by pouch milk distributers. This will help milk distributer to collect and send the order
directly from the market.
GCMMF was one of the first FMCG (fast-moving consumer goods) firms in India to employ Internet
technologies to implement B2C commerce. GCMMF has also implemented a Geographical Information
System (GIS) at both ends of the supply chain, i.e. milk collection as well as the marketing process. Farmers
now have better access to information on the output as well as support services while providing a better
planning tool to marketing personnel.

















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SWOT ANALYSI S OF AMUL I CE CREAM

STRENGTH:
1. Good product range.
2. Good quality & packaging
3. One of the top Brand image in India.
4. Launched Probiotic and sugar free ice cream.
5. Made up of milk fats instead of vegetable fats.
WEAKNESS:
1. Limited international presence as compared to other leading global brands.
2. Presence of the local brands in the market with cheaper price.
3. No unique advertisement strategy.
OPPORTUNITY:
1. Tie up with food chain & restaurants.
2. Can introduce Nish ice cream products for the high income group
3. Can enter new into new countries and can explore new markets
THREATS:
1. Health conscious people refraining from sweets
2. Growing competition from international brands e.g.- basking robins. And also with few domestic
players e.g.- havmore & vadilal
3. Mother dairy that has production right for amul is a threat now as it has launched its own ice-cream
and milk product and they have information of ingredients that amul uses.









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FINDINGS ACCORDING TO AREA WISE

SARDARNAGAR
Amul 5
Havemore 3
Vadilal 8
Seetal
Mother dairy
Kwality walls 3
others 3











17%
47%
18%
18%
fig 1
havemore vadilal sheetal mother dairy kwality walls others
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MEGHANI NAGAR DATA

Amul 8
Vadelal 5
have more 2
shetal
mother dairy
Vimal
kwality walls
others











34%
13%
53%
fig 2
vadelal have more shetal mother dairy Vimal kwality walls others Amul
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NARORA DATA
AMUL 14
vadelal 3
Have more 7
Shettal
Mother dairy
Vimal 3
Kwality walls 1
others 5












AMUL
43%
vadelal
9%
have more
21%
vimal
9%
kwality walls
3%
others
15%
FIG3
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SHAIBAG DATA
Amul 6
vadelal 11
have more 12
shetal
mother dairy 1
Vimal
kwality walls 3



18%
33%
37%
3%
9%
Sales
Amul vadelal have more shetal mother dairy vimal kwality wallas