AMUL – Anand Pattern Co – operatives

					PROJECT PROFILE ON AMUL – Anand Pattern Co – operatives

-: EXECUTED BY:CHIRAG Y. GANDHI, S.Y.B.B.A DIV: - I, Roll No. : - 25.


“The main priority of every nation is to ensure food security for its citizens. The best way to achieve this goal in a harmonious and sustainable manner is by ensuring economic well – being of the men and women who feed our nation. The founding fathers of our nation had clearly elucidated that farmers are the backbone of India and unless they prosper, our nation cannot realize its growth potential. Sardar Vallabhbhai Patel knew that India will achieve true independence only when economic welfare of its farmers is assured. To achieve his vision, he inspired creation of institution like AMUL, which are responsive to the genuine needs of rural India. Shri Lal Bahadur Shastri strongly believed that our farmers will make our country self sufficient in terms of food requirement provided they are adequately supported with appropriate public policies with respect to input & output pricing and marketing. Shastriji repeatedly emphasized the fact that our food security systems should be largely based on domestic production, since agriculture provides livelihood to a vast majority of our population. During his tenure as Prime Minister, he inspired creation of institutional structures which enabled India to achieve self – reliance in the dairy sector.” “Mahatma Gandhi had repeatedly asserted that “real India” lives in its villages. He stressed emphatically on leveraging the “cooperative form of organization” as an effective instrument of rural development. Sardar Vallabhbhai Patel had great faith in co – operation as a means of promoting farmer’s well – being. He was the prime source of inspiration behind our “AMUL” condition of rural India.” “India is on a passage to prosperity. Health, Wealth and Knowledge are the three vehicles for this growth. People of India have started feeling an inner strength and hope to make this dream a reality by year 2020.”



Global Factors: To study the industrial scenario in India.  To assess individual’s rate of growth & success in the life.  To study by a large economic deregulation & globalization in various sectors like capital industry, core industry, infrastructure projects, service oriented units & international finance portfolio etc.  To assess risk management – credit risk – market risk – operational risk – information technology risk.  To assess corporate social responsibility & corporate commitments.  To study Corporate Governance.  To assess Asset Quality. Socio – Economic Factors: To study the corporate benefits which are more available to the various Sector of the society for the welfare of the human being.  To study & develop the habit of clean business environment by deploying various techniques.  To study the economic reforms in the area of pollution control (Water, Soil, Sound & Air).  To study the Human Resources Management for the better productivity & sharp efficiency for the development of the nation.  To study co – operative development programs & assesses progress of dairy co – operative organization.  To assess & understand the future global requirements.  To study WTO norms in terms of ISO standards.  To study Value Addition in dairy industry – vision 2020.


The B.B.A programme is well structured and integrated course of business studies. The main objective of practical training at B.B.A level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The B.B.A programme provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management. In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry, which would, in return, help me in the future when I will enter the practical field. Training is an integral part of B.B.A and each and every student has to undergo the training for 1 month in a company and then prepare a project report on the same after the completion of training. During this whole training I got a lot of experience and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life. In todays globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that

“Experience is best teacher”.
B.B.A has become a degree for the talented & professional Indian students. This change can be attributed to the Indian Government’s liberalization of the economic policy & encouragement of the multinational companies to come forward for Foreign Direct Investment (FDI). Another reason is the widening of the corporate sector. There is a good scope for the B.B.A graduates to occupy positions of prestige and responsibility and to have handsome pay packets. Today, a majority of the vital position are held the B.B.A in the corporate sector as well as in the MNCs. Bachelor of Business Administration is an integrative programmed designed, to provide a degree course in management for those seeking senior position in industry. The objective of the course is Student will be equipped with latest management skills and strategies to cope up with industrial requirements. Candidates will be exposed to latest technologies, communication system, decision support systems that will enhance the skill set of the candidate to deal with day – to– day functions. The course aims to develop the essential management skills required to meet and participate in the increasingly international business environment.

I hereby declare that the information given herein after, statements & other related papers enclosed along with this report, are to the best of my knowledge & belief, true & correct in all respects.

Chirag Y. Gandhi


With immense pleasure, I would like to present this project report for Kaira District Co-operative Milk Producers‟ Union Ltd., Anand. It has been an enriching experience for me to undergo my summer training at AMUL, which would not have possible without the goodwill and support of the people around. As a student of Bachelor of Business Administration, M. S. University of Baroda (B.B.A) I would like to express my sincere thanks to all those who helped me during my practical training programme. Words are insufficient to express my gratitude toward Mr. Rahul Kumar, the Managing Director of AMUL. I would like to give my heartily thanks to Mr. J. K. Joshi, Manager of Administration, who permitted me to get training at AMUL. I am very thankful to Mr. Pankaj Gadhavi, who helped me at every step whenever needed and Mr. G. D. Trivedi who arranged all possible visits for me at AMUL. As we know research work needs hard work, keen insight and long patience with scholarly vision based on content operation hence it becomes a humble duty to express my sincere gratitude to Mr. Dalveer Singh, Production in-charge. At last but not least my grateful thanks is also extended to Mr. Kalpesh shah (Assistant Programme Directors) and my thanks to all my faculty members for the proper guidance and assistance extended by them. I am also grateful to my parents, friends, Mr. Nilesh Chavan, Mr. Ritesh Kamle, Mr. Mukesh suhanda, Mr. Prakash salunke, Mr. Viral Patanwadia (B.B.A Administrative Staff) to encourage & giving me moral support. However, I accept the sole responsibility for any possible error of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.

Chirag Y. Gandhi M. S. University of Baroda, S.Y.B.B.A - Div: - 1, Roll No.: 25, (Cell No. +91 9925767331).


SR. NO. 1 2 3 4 5 6 7 8 9 10 11 PARTICULARS PG.NO.

General Information. Human Resource Department. Production Department. Marketing Department. Finance Department. Prospect of Units. Future Challenges. The Road Ahead for Co – Operative Movement. Conclusion. Bibliography. Annexure.

008 029 067 082 102 111 113 114 115 116 117




SR. NO. 1 2 3 4

PARTICULARS Introduction & History. The Organization. Services Offered By AMUL. Management.

PG.NO. 010 018 024 025


In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS‟ UNION. This union selected the brand name AMUL in 1955. The brand name AMUL means “AMULYA”. This word derived from the Sanskrit word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast cooperative network, of the triumph of indigenous technology, of the marketing savvy of a farmers’ organization. And have a proven model for dairy development (Generally known as “ANAND PATTERN”). In the early 40’s, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterates’ farmers by the private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word. 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 co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his cooperation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk.



These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village cooperative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union. However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira district went on a milk strike. For 15 whole 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. Having seemed the condition, he decided to fulfill the farmers demand. Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in forming the Cooperative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL.


At the initial stage only 250 liters of milk was collected every day. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lack liters of milk every day. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1073 societies. With the financial help from UNICEF, assistance from the govt. of New Zealand under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Dr. Rajendra Prasad, the president of India laid the foundation on November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20, 1955.



The system succeeded mainly because it provides an assured market at remunerative prices for producers’ milk besides acting as a channel to market the production enhancement package. What’s more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic up liftment and common good. Looking back on the path traversed by Amul, the following features make it a pattern and model for emulation elsewhere.

AMUL has been able to:
1. Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its rotes and limitations, 2. Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. 3. Provide a support system to the milk producers without disturbing their agroeconomic systems, 4. Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers and 5. Even though, growing with time and on scale, it has remained with the smallest producer members. In that sense. Amul is an example par excellence, of an intervention for rural change. The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like – all through the village societies. Basically the union and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF INDIA.


Plants (Photographs).  First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavored milk and butter milk. It is establish in 1973.


 Second plant is at MOGAR, which engaged in manufacturing chocolate, Nutramul, Amul Ganthia and Amul Bite. This plant establish in 1973. It is situated on Anand – Vadodara Highway No. 8.

 Third plant is at Kanjari, which produces cattle feed. Old plant establish in 1964 & new plant in 1980.


 Fourth plant is at Khatraj, which engaged in producing cheese. It is situated between Nadiad – Mahemdabad.


 Chilling center :- Kapadvanj, Undel and Balasinor.  Satellite Dairy:- Balasinor, Undel. Today, twelve dairies are producing different products under the brand name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole India.


Co-operative is generally operated not for the profit but for the betterment of consumer and products. Their main objective is to serve people of the society with good quality of product with as much as low price. “AMUL” is the successful co-operative sector. The brand name itself indicates how AMUL is separated over the country and world. AMUL gets so many awards for its productivity and performance. Amul is Asia’s no.1st and 2nd in world, which is a matter of proud for India. In our country every men, women and now children know what AMUL is. This makes the popularity and contribution of the dairy industry. AMUL is co-operative organization and they also doing social works. They provide employment to the village people. They also provide health center and education facility to the villagers. AMUL has a three level structure. It has following way:-

Co-operation among this 3 level is necessary for achieve goal


Organisation profile:-


• "AMUL"(Anand Milk Union Ltd.)


• Co-operative sector registered under the Co-operative society act.



AMUL Dairy, Nr.station road, AMUL Dairy road, Anand, gujarat, India.


• 14th December 1946

Registered Office

• Kaira District Co-operative Milk Producer's Union Limited, Anand388001


• Production of different products are on large scale, besides the whole organisation is also very large, collecting 9 lakes liters milk everyday and producing milk product.


• Kaira District Centeral Co-operative Bank. • U.T.I.Bank. • State Bank of India. • Bank of Baroda. • Bank of Maharastra. • State Bank of Saurastra • Corporation Bank • Internal Auditor • Government Auditor




• • • • • • • • • • • • • • •

Milk Butter Cheese Milk Powder Condensed Milk Baby Food Ghee Nutramul Dan (Cattle Food) Amul ice-cream Chocolate Coco Butter Coco Powder Coco Mass Cream

Industrial Products

Initial Promoters

• Shri T.K. Patel • Shri Morarji Desai

Quality of Milk:The union has obtained ISO 9001-2000 and HACCP certification. It is, therefore, imperative that AMUL focus and lay emphasis on quality.



Symbol of “AMUL”(Anand Milk Union Ltd.) is ring of four hands, which are coordinated each other. The actual meaning of this symbol is coordination of hand of Different People By Whom This Union is now at top. The first hand of Farmer, second hand of Processor, third hand of Marketer and fourth hand of Customer. It’s a joint efforts & productive team work have achieved success in all its new venture, how famous worldwide & known as


No.of Employee

• Appro.1300

Total No. of Shifts

• First Shift Time :- 8:30 a.m. to 4.30 p.m. • Second shift Time :- 4:30 P.m. to 12:30 a.m. • Third Shift Time :- 12:30 a.m. to 8:30 a.m.

Office Time Total No. of Socity Members

• 10:30 a.m. to 5:30 p.m.

• Approxi. 2.28 Million

Foundation Inauguration


• Dr. Rajendra Prasad, the President of India laid the foundation on november 15,1954. on October 31,1955 Jawaharlal prime minister of India, declared it open.

List of Department

• • • • • • •

Administration Department MIS Department Purchase Department Sales Department Milk Procurement Department Account Department Marketing Department etc.


Motto:The main Motto of AMUL is to help farmer. AMUL system works under objective of highest possibale price to the milk producers and lowest possibale price to consumer. Farmers are paid money in cash payment for the milk. Milk gives them mony for daily necessities. AMUL is the one who started using their profit for the milk producer common good.

AMUL Quality Policy:We the motivated and devoted work force of AMUL are committed to produce whole some and safe food of excellent quality to remain market leader through deployment of quality management system, state-of-art technology innovation and eco – friendly operation to achieve delightment of customer and betterment of milk producers.


AMUL, being a co-operative union offers variety of services to the members of village and district level co-operative societies. The main services offered by AMUL are:  Medical Facilities for the Cattle Of Farmer:AMUL provide a medical facility to cattle of farmer at a concessional rate of Rs. 50/- includes medicines, treatment charge. While AMUL bears same services at around Rs. 100 to 150.  Cattle Feeding:AMUL provide the “Dan” to the cattle of member farmers. AMUL produces the “by pass protein Dan” and “Purk Dan” to the cattle of farmers at reasonable cost.  Artificial Insemination(Cattle Breeding):AMUL has established “Artificial insemination center” at Ode village near Anand.  Free Animal Vaccination:Often Animals are caught up in unknown diseases. To protect the animals from such diseases periodical Vaccination programme are arranged by AMUL.  Farmer Education Programmed:Generally,farmers believe in superstitions. Further, he is often not aware about how the animal should be taken care which things should be given prime concern while milking the animal. AMUL provide guidance and education through arranging seminar on periodic basis.  AMUL also provides scholarship to children of member of society.


Organisation structure:Managing Director

General Manager

Assistant General Manager


Deputy Manager

Assistant Manager


Deputy Superintendent

Senior Officer

Junior Assistant



Board Members:Shri Ramsinh Prabhatsinh Parmar Shri Rajendrasinh Dhirsinh Parmar Shri Dhirubhai Amarsinh Chavda Shri Mansinh Kohyabhai Chauhan Shri Maganbhai Gokalbhai Zala Shri Shivabhai Mahijibhai Parmar Shri Pravinsinh Fulsinh Solanki Shri Chandubhai Madhubhai Parmar Shri Bhaijibhai Amarsinh Zala Shri Bipinbhai Manishankar Joshi Smt. Sarayuben Bharatbhai Patel Smt. Madhuben Dharmsinh Parmar Shri Ranjitbhai Kantibhai Patel Shri B. M. Vyas Shri Deepak Dalal Shri Rahul Kumar Chairman Vice-Chairman Director Director Director Director Director Director Director Director Director Director Director Managing Director (G.C.M.M.F) District Registrar Co-operative Societies, Govt. of Gujarat. Managing Director


Level of Management :-

There are three Level of Management in AMUL

Top Level Management

Middle Level Management

Lower Level Management


:- 01

Deputy Manager :- 004 Assi. Manager :- 022 Superintendent :- 036


:- 02


:- 02 Dy. Superintendent :- 047

Manager :- 14

Sr. Officer :- 101 Total :- 210


:- 19

Assistant :- 0070 Jr. Assistant :- 0036 "A" Grade Employees :- 0066 "B" Grade Employees :- 0072 "C" Grade Employees :- 0206 "D" Grade Employees :- 0239 "E" Grade Employees :- 0174 "F" Grade Employees :- 0090 "G" Grade Employees :- 0096 Total :- 1049


Function of Top Management :-

 Determine of goals or objective.  Policy Framing.  Formation of plans to carry out objectives and policy.  Mobilization of resources to implement the plan.  Motivating personnel for effective performance through appropriate leadership.  Co- ordination and communication.  Controlling operation to ensure realization of set goals or objectives.  Assembling the required resources.  Appoints the executives for the middle level.  Issue necessary instructions for the preparation of department budgets, schedule, procedures etc.  Top Management builds and maintains relations with the outside public.




SR. NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Introduction.


PG.NO. 031 036 044 048 052 053 058 059 060 061 061 064 065 066

Recruitment, Selection & Induction. Training & Development. Performance appraisal. Promotions & Transfers. Wage & Salary Administration. Retirement Benefits. Employee Turnover. Compensation. Industrial Relation. Welfare Activities. Time Keeping Department. Personal Records. Grievance Handling Procedure.


HUMAN RESOURCE MANAGEMENT “Management is nothing but develoment of people, not the direction of things.” In modern industry system,the production in the result of the joint efforts of all the factors of production i.e. land, labour, capital, organisation & enterpreneur labour unlike other factor of production is an active factor and coordinated output minimum labour cost is cost of labour by the best utilisation of human hence to get the maximum benefits out of efforts it puts in thus, the science that deals with problems of developmen of labour free in all respect. (Economical, Social Behaviour, and Political may be called personnel management) in the real sence; it is convinced with the proper use of the human factors. In business in mordern times the Team Personnel Management, Industry Relations ship, Employee or Man Power Management etc. Defination: According to flippo : - “Human resource Management is the Planning, Organisation, Directing and Controlling of the Procurement, development, Compensation, Integration, Maintenance and Reproduction of human resource to the end that individual, Organizational and Social Objectives are accomplished.”  According to Dale Yoder :- “The management of human resource is viewed as a system in which participants seeks to attain both individual and group goals.” HRM is concerned with integration- getting all the members of the organisation involved and working to gather with a sence of common purpose. Human Resource take active role in the modern economic scenario of any country. The abundant physical resources alone can not benefit the growth of the country without Human Resource component, which Transform Physical Resources into productive resources. The management of men is not only fundamental but also Dynamic and challenging task. Human being who is considered the most valuable assets of an organisation and their effective management is the key to its success. The organizations involve human resource department to take care of human aspects in the organisation. This department deals with issues like manpower planning, their recruitment, selection, training, development, motivation, direction, wage & salary administration, performance appraisal, promotion, demotion,transfer, negotiation, grievance handling, industrial relations etc. Hence it is prime requirement of any organisation.


 Objective of Human Resource Management: To improve the service rendered by the enterprise to society through building better employee morale.  To create and utilise an able and motivated workforce, to accomplish the basic organisational goales.  To recongnize and satisfy individual and group needs by providing adequate and equitable wages, incentives, employee benefit, security, status, social security etc.  To utilize human resources effectively in the achievement of organisational goals.  To strengthen and appreciate the human assets continuously by providing training and development programmes.  To maintain high employee morale and sound human relation by improving the various conditions and facilities.  To enhance job satisfaction and self-actualization of employees encouraging every employee to realize his full potential.  To provide facilities and condition of work for maintaining stability of employment.  Function of H.R.M:HRm is a process consisting of four functions. 1. Acquisition of Human Resources :Acquisition process is concerned with securing and employing the people prossessing required kind and level of human resources necessary to achieve the organisational objectives. The acquisition function begins with planning. It also cover functions like: Job Analysis.  Human Resource planning.  Recruitment.  Selection.  Placement.  Induction.  Internal Mobility.


2. Development Function:Development function is the process of improving, modeling and changing the skills, knowledge, creative ability, aptitude and values. The development function can be viewed along three dimensions: Employee training.  Management Development.  Career Development. 3. Motivation Function:The motivation function begins with the reorganisation that individuals are unique and that motivation techniques must reflect the needs of each individual. It is an area of management in integrating people into work situation in a way that motivates them to work together productively, co-operatively and with economic, psychological and social satisfaction. 4. Maintenance Function:The Maintenance function is concerned with providing those working conditions that employees believe are necessary in order to maintain their commitment to the organisation. The objective of the maintenance function is to retain people who are performing at high levels. This requires that the organisation provide safe and healthful working conditions and satisfactory labour relations. 5. Recruitment:Recruiting is the discovering of application for actual or anticipated organisational vacancies.  Factor Affecting Recruitment: The size of the organisation.  Working condition and salary and benefits packages offered by the organisation that may influence turnover and necessitate future recruiting.  The rate of growth of organisation.  Cultural, Economic and Legal factors.  The employment conditions in the community where the organisation is located.


6. Selection:The selection procedure adopted by an organisation is mostly tailor made to meet its particular needs. The procedure depends upon three factors.  The nature of selection, whether faulty or safe.  The policy of the company and the attitude of the management.  The length of the probationary or the trial period. The hiring process can be successful, if the following preliminary requirements are satisfied.  Some one should have the authority to hire.  There must be some standare or personnel with which a prospective employee may be compared.  There must be a sufficient number of applicants from whom the required number of employees may be selected. 7. Training and development:Training is a process of learning a sequence of programmed behaveior. Development is a related process. It covers not only those activities, which improve job performance, but also those, which bring about growth of the personality. Training is a sort – term process while development is along – term educational process. Training refers only to instruction in technical and mechanical operations, ehile development refers to philosophical and theoretical educational concepts. Training is designed for non – managers, while development involves managerial personnel. Training is generally for specific job – related purpose, while purpose of development is for general knowledge. 8. Appraisal:Performance appraisal has been considered as a moat significant and indispensable tool for an organisation for the information it provides is highly useful in making decision regarding various personal aspects such as promotions and merit increases. Performance measures also link information gathering and decision making processes, which provide a basis for judgeing the effectiveness of personnel sub – divisions such as recruiting, selection, training and compensation.


 Purposes of Appraisal: The provide systematic judgement to back up salary increases, transfers, demotions or terminations.  They are mens of telling a subording how he is doing, and suggestion needed changes in his attitude, skills,job knowledge.  The superior uses them as a base for coaching and counseling the individual. 9. Wage and Salary Administration:Wage and Salary Administration refers to the establishment and implementation of sound policies and practices of employee compensation. It includes areas such as development and maintenance of wage structure, wage payment, incentives, and profit sharing, establishing rules for administering wages. A sound wage and salary administration tries to achieve these objectives: For Employees: Employees are paid according to requirements of their jobs.  The chance of favoritism are generally minimized.  Emplyee’s morale and motivation are increased.  For Employers: They can systematically plan and control their labour costs.  It attracts qualified employees by ensuring an adequate payment for all the jobs.  A wage and salary administration reduces the likelihood of friction and grievances over wage inequities. 10. Rewards and Incentives:An incentive or reward can be anything that attracts a worker’s attention and stimulates hims to work. An incentive plan has following important features.  An incentive plan may consist of both monetary and non- monetary elements.  The timing, accuracy and frequencey of incentives are the basis of a successful incentive plans.  The plan requires that it should be properly communicated to the emplyees to encourage individual performance, provide feedback and encourage redirection.

 Recruitment:“recruitment forms the first stage in the process which continues with selection and placement of the candidate.” In the word recruitment is the generating of application for the spacific position. The selection process starts with the indent for recruitment by the departmental heads. These indents specify thereasons why recruitment is to be made. These indent are sent to the recruitment is to be made. These indent are sent to the personnel department. The personnel department has to check the financial implication of the recruitment to find out whether the additional expanses would be within the budgetary provision if other allowances were determind. It is a positive action as it involves inviting people to apply. Recruitment has been regarded as the most important function because the right of people are hired even the best plans and system would not do much good. A. Internal Sources:- Among the internal sources, the following may be included.  Promotions.  Transfers.  Response of employees to notified vacancy.  Employee Referrals. B. External Sources:- Folloing are the some sources are included.  Advertisement.  Employment Exchange.  Campus Recruitment.  Unsolicited Applications.  Labour Contractors.  Field Trips. There are two types of Recruitment sources followed by AMUL.:i. ii. Internal Sources. External Sources.


 Internal Source:Internal sources include personnel already on payroll of the organisation filling a vacancy from internal sources by promoting pople has the advantages of increasing the general level of moral of existing employees to providing employees to providing to company more reliable information about the candidate. Following are included in this source:i. ii. iii. Present Permanent Employees. Employee Referrals. Former Employees.

 External Source:These source lie outside the organisation in Amul they consider following sources for recruitment. i. ii. iii. iv. Advertisement. Campus Interview. Employment Exchange. Unsolicited Application.

 Advertisement:For the recruitment, AMUL consider this particular source. They give Advertisement in local newspaper and other newspaper for the suitable post.  Campus Interview:This is second option that AMUL consider. Recruiters are sent to educational institution where they find suitabale cadidate. AMUL go through this option. They have various famous institutions like IIM, IRMA etc.  Employee Exchange:An employment exchange is an office set up for bringing together as quickly as possible candidates searching for employment and employees looking for prospective employees.


 Employee Referrals:AMUL also considers this option for recruitment. Friends and relatives of present employees are also a good source from which employee may be drawn.  Unsolicited Application:Some candidates send in their application without any invitation from the organisation. A recruiter can use these unsolicited applications for appointment and when vacancies arise. AMUL consider this option also for recruitment. Union Adopted following scheme for the Recruitment. I. II. III. IV. Grade Scale. Under Scheme. Temporary Workers. Under Apprenticeship Act.

 Grade Scale:In AMUL they consider two ways under grade scale. Under this scheme they select well – experienced and qualified person for suitable candidate. For that they consider student of well – known institute like IRMA, IIM, M.S.University, and others.  Under scheme:Under this scheme, students with sifferent education qualification like M.S.W, B.B.A, M.B.A, Dairy Technologist, and M.Com recruited as management trainee for 1 year. Stipend given to that candidate for work done by him.  Temporary Workers:Under this scheme workers are recruitment temporary for 3 or 6 or 9 month they will be reacted in union as a trainee. Their training period is 3 years. If their work and attendance found satisfactory the record will be consider as permanent employee.if they are irregular then this training period may be extended.


 Recruitment Under Apprentice Act.:There are three types of apprentice Act. I. II. III. Apprentice Act. 1961 Apprentice Act. 1973 Apprentice Act. 1986

 Apprentice Act.1961:Under this Act. Student from I.T.I., A.O.D (attendant operator Dairy,10th pass), IMCP (Instrument Mechanic Chemical Plant), Boiler Attendant Wireman are consider.  Apprentice Act. 1973:Under this Act. Setat are allotted for Engineers, Diploma & Degree. The student provides 1 year training.  Apprentice Act. 1986:Under this Act Vocational person are consider.  Requirement of Recruitment:There are so many reasons for recruitment process. Some of them in AMUL are:i. New Expansion. ii. New Planning. iii. Retirement.


 Selection:Selection either internal or external is a deliberate effort of the organisation to select a fixed number of personnel from a large number of applicants. The primary aim of employee selection is to choose those persons who are most likely to perform their jobs with maximum effectiveness and to remain with the comapany. Thus, in selection, an attempt is made to find a suitable candidate for the job. In doing so naturally many applicants are rejected. This makes selection a negative function. Following are the steps followed are as under: Application blank.  Initial interview of the candidate.  Employment tests. Detail  Interviews.  Checking references.  Physical or medical examination.  Final interview and induction. During this steps incover Biographic Data, Education, Experience, Personal Detail, Aptitude Test, Interest Test, Intelligence Test, Performance Test,Personality the interview different type of interview conducted like:  Preliminary interview.  Extensive interview.  Stress interview.  Discussion interview.  Structured interview.  Non – structured interview.  Grop interview.  Final interview.


 The Selection Process in AMUL is as Under:Vacancy in Any Department

Approval from M.D


Direct Application

Collection of Application

Securitization of application


Medical check up


 Vacancy In Any Department:When there is any vacancy in any any department of the organisation, they give advertisement in the newspapers.  Approval From M.D:When there is any vacancy in any department, first step is to take approval from M.D to give advertisement in newspaper. After getting approval the process go further.  Advertisement:After getting approval from M.D., Advertisement given in local newspaper for the related post.  Collection of Application:All the direct application are collected.


 Securitization of application :After collection of application they scrutinize them in detail and not suitable application are rejected and other kept for further process. During this process, suitable Applications are consider on base of criteria decided by AMUL.  Interview:Interview is being carried out by a panel of 4 to 5 members considers consists of head of related Department, M.D., Manager of Administration, one will be export of that particular fields. This panel will be rating in different aspects such as personality, knowledge of that particular field, general knowledge, written test etc. they will be having a rating sheet consists of all such headings mentions and each panel member giving marks and then after ranking will be done.  Medical checkup:Selected person sent for medical check. It held on interview day in AMUL when candidate found medically fit then selection is done.  Selection:After all these process they give the appointment letter to the person and he/she will join the organization.  Procedure for Appointing Selected Candidate:According Medical Report Appointment Letter Prepare and Approved by M.D.

Send Copy of Appointment Letter to Candidate and concern Department

Manager of concern Department Sign it and Send to Administration Department

Administration Department Maintain Personal Record of Candidate


After selection, the employee is generally have a probation period. In AMUL probation period is different for different type of person.  12 Months for Officers.  06 Months for Clerical.  03 Month for Workers.

 Induction:Induction is introducing an employee to the job and to the organisation. The primary purpose of induction is to give information about organisation about organisation so that he/she works comfortably. Generally induction convey three types of information:1) General information about the daiy work routine. 2) A review of the organisation history, objectives, operation, products, visiting different department. 3) Detail information of the organisation policies, work rules and benefits given to employee. At AMUL there is total 20 days induction progrm, where they include: 1) Internal Induction:The period of this is 5 to 6 days. During this employee have to familiar within department of organisation where he/she should work during this 5 days he/she getting information of department. Its people and work. 2) External Induction:During external induction program of 6 to 7 days employee is taken at all the plants, the chilling center. As AMUL is a co – operative sector an employee should get the feel of village and for that he/she should visit at least 2 or 3 village. 3) Finally in 10 days of induction emplyee get familiar with various departments that is just to get acquaintance of department like milk procurement department, purchase department, account department etc.


 Training:Training is process of learning a sequence of programmed behavior. It is application of knoeledge. It gives people an awareness of the rules and procedures to guide their behavior. It attempts to improve their performance on the current job or people them for an intended job. According to Edwin D flippo – “ the purpose of learning is to achieve a change in the behavior of those trained and to enable them to do their job better. In order to achieve this objective, any training program should try to bring positive change in:  Knowledge:- It helps a trainee to know facts, policies, procedures and rules pertaining to job.  Skills:- It helps him to increase his technical and manul efficiency necessary to do the job .  Attitude:- it moulds his behavior towards his co – workers and supervisors and creates a sense of responsibility in the trainee. Training become essential when introduction of new lines of production, changes in design the demands of competition etc. it is useful to organisation in various way like:  Higher productivity.  Better organisational climate.  Less supervision.  Prevents manpower obsolescence.  Prevents industrial accidents.  Improves quality.  Standardisation of procedures. Training also useful to the employee.  Personal growth.  Development of new skill.  Higher earning capacity.  Increased safety.  Confidence.

 Procedure of Training in AMUL
Identification of need of Training

Module Preparation

Selection of employee for the training



AMUL has accepted three methods for the training: On the job training.  Off the job training.  Out house training. I. On the job training:Under this method, his immediate superior who knows exactly what the trainee should learn to do gives the employee training at his workplace. The management should also keep a close watch and check up the training from time to time. For on the job training AMUL consider following form.  Coaching:- under coaching method, the employee is trained on the job by his immediate superior.  Job rotation:- the purpose of position rotation is to broaden the background of the employee in various positions. The employee is made to move from job to job at certain intervals. II. Off the job training:In the second method some managerial exports from within the organisation head conduct the training for the off the job method AMUL consider following form.


 Lecture method:- this is most commonly used to speak to large group about particluar topics. The trainees take notes as an aid to learning.  The conference method:- in this method, the participating individuals discuss points of common interest to each other. The conference is ideally suited to learning problems and issues and examining them from different angles.  Seminar:- seminar is based on a paper prepared by trainee on a subject selected in consultation with the person in charge of the seminar. The trainee read their papers and this is followed by a critical discussion. III. Out house training:In this method the employee are send to different training center outside the organisation for the training purpose. Generally this method use for the training for top management employees.  Need of Training:In AMUL training provided to all level employee of different department. There are different reasons for training. Some of them are:  When new technology introduce in union.  Increase quantity and quality of product.  To meet organisation need at all time.  For better economic use of materials.  To prepare the present employees for higher assignments so that they may promote from within.  Effect of Training:AMUL is a largest co – operative sector. They provide training to their employees on regular basis and whenever needed. After provide training they get the best result from that. Some results are:  Increase effectiveness of work.  Increase dedication feeling for the work.  They get higher productivity.  They also maintain their quality of product.  Prevents industrial accident.


 Development:Mr. J.R.D.Tata said “trained management are vital the economic development of the country. This business of executive’s management has been one of the most crucial end at the same time, one of the most difficult elements in providing continuity and efficient management. Development is a long – term educational process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and theoretical knowledge.” Management development implies that there will be a change in knowledge and behavior of the individuals undergoing development programme. The individual will not only be perform his job better but also increase his potential for future assignment through the acquisition, understandings and use of new knowledge, insights and skills. In other words it refers to technical knowledge or skill in operation but to philosophical concepts. It involves broader education and its purpose is long – term development. It refers to learning opportunities designed to help employees grow and evolve a vision able to future. Development is skill oriented but stressed on knowledge. Knowledge about business environment, management principles and techniques, human relations, specific industry analysis and the like is useful for better management of an organisation.  In AMUL various method are conducting for Development purpose.  Seminar:- in AMUL they organised seminar for development purpose.for that managerial person participate in seminar conducting by out side consultant company engage in such type of programmed. The seminar conducting at out side of premises. In such type of seminar they give development training about TQM, Motivation factor for employees, Technical performance, Improvement in Leadership and Supervision etc.  Conference:- the conference is ideally suited to learning problems and issues and examining them from different angles. In AMUL they also arrange such conference for managerial development. In this conference the topic discuss about quality assurance, problem solving etc. the trainee as a member can learn from others.  In AMUL Development program arrange during the job in institute like IRMA, IIM, to make employees knowledge, skill and attitude more sharpen. The employee selected from organisation through examination. They conduct an examination in AMUL. Employees of management level who are feet in criteria of AMUL appear in examination. Among them top 4 or 5 employee selected for training . during this Training , salary given to that employee and all expanse provided by union. After Training that employee must work with AMUL for specified period decided by union.


 The other development programme arranges by AMUL are within the premises. The development programme arrange on various topic like anger free life, mind power development, positive changing, personality development etc. also arrange program on effective leadership, motivation provided o employees. This help to managerial person for good relation with employees.  The Organisational Aims of Management Development are:  Improvement in technical performance.  Improvement in supervision and leadership at each level.  Improvement in inter departmental co – operation.  Improving organisational structure.  To prepare them for higher assignments.  To prevent obsolescence of manager.  To develop managers to perform better on their present assignments.

After an employee has been selected for a job, has been trained to do it and his worked on it for a period of time, his performance should be evaluated. Performance appraisal is the mechanisam to assess the contribution of all human resource working at each level of the organisation during a specific period of time. Performance appraisal is the process through which individual employees behavior and accomplishments for a fixed time period are measured and is to assess the worth of ability of an employee in performing his task. According to Dale Yoder, “performance appraisal includes all formal procedures used to evaluate personalities and contributions and potentials of group members in a working organisation. It is a continuous process to secure information necessary for making correct and objective and objective decisions on employees.”  Appraisal of employee‟s serves several useful purposes.  Feedback to the employee.  Compensation decisions.  Personal development.  Training and development programme.  Promotion decision.


 Now The Questions Arise That Who Will Appraiser? The Answer Is…  The employee’s peers.  Self appraisal.  The employees subordinates.  Higher – level manager.  Now the process of performance appraisal implemented in step by step.  Job Analysis, Job Description and Job Specification.  Establishing standerds of performance.  Communicating performance standards to employees.  Measuring actual performance.  Comparing actual performance with standrds and discuss the appraisal with employees.  Initiating corrective actions.  There are various methods for performance appraisal.  Straight ranking method.  Paired comparison method.  Granding method.  Graphic rating method.  Checklist method.  Confidential report.  360 degree appraisals.  Behavioral anchored rating scale method.  Job Analysis:It is a procedure by which pertinet information is obtained about a job, i.e. it is a detailed and systematic study of information relating to the operations and responsibility of a specific job. It is the determination of the tasks, which comprise of the job, and of the skill, knowledge, abilities and responsibilities required of the worker for a successful performance and which differentiate one job from all others.


 Techniques of job Analysis:i. ii. iii. iv. Personal observation. Sending out questionnaires. Maintenance of record. Conducting personal interview.

 Job Description:It is a written record of the duties, responsibilities and requirements of a particular job. A good job description gives a clear picture of the job. In this particular unit responsibility of each and every officers is defined. In Administration department following responsibilities are given to officers.  Guest house.  Recruitment and Selection.  Training and Development.  Personnel Record.  Confirmation.  Promotion and Transfer. In AMUL the performance Appraisal method is divided into different time period for different person.  Manager  Temporary Workers  Workers  Officers - ¾ year. - 1½ year. - 1 year. - 3 year.

During this time period the performance of each employee is measured respectively. There are various method used to appraise the performance of an employee. In AMUL the methods uses are: A. Self Appraisal:If individuals understand the objectives they are expected to achieve and the standards by which they are to be evaluated, they are to a great extent in the best position to appraise their own performance. In this method employee him self prepare appraisal report.



Manager‟s Appraisal:The general practice is that superiors appraise the performance of their subordinate. Other supervisors, who have contact with employee’s work may also appraise with a view to provide additional information.


A Higher Level Manager Appraisal:Higher level managers appraise the employee’s for their performance. In AMUL, various attributes consider for the Appraisal of employee.  Job knowledge.  Work output.  Quality of work.  Interest in work.  Initiatives.  Past Record.  Seniority.

 Procedure of Performance Appraisal In AMUL:Appraisal Report Prepare for Employee by Related Divisional Head and Sends it to Administration Department.

Manager of Administration Issued Letter with the Recommendation and Send it to M.D. for Final Approval.

M.D. Check Past Information of Employee and then Signed the Letter.

This Appraisal is also the rating scale method. Appraiser also appraised employee by following:  Outstanding.  Good.  Satisfactory.  Poor.


The overall assessmwnt is done through above rating and also the comment of reviewing officer is included. Apart from this, the performance linked allowance is provided in relation with the performance that is,  25%  50%  100%  Not allowed. This is provide by and under the knowledge of Managing Director. Generally in AMUL on base of performance Appraisal, Employee of Managerial level get special allowance. While for workers they get promotion.

 Promotion:Promotion may be defined as an upward advancement of an employee in an employee in an organisation, which command better pay, better working environment facilities and a higher responsibility. Following are some criteria to be considering for the promotion.  Promotion should be earned.  Opinion of Divisional Head, Past Record, Behavior is to be considering while promoting a person.  Skill and Knowledge is also considered. In AMUL following point are to be consider while promoting employees.:  Seniority.  Vacancies.  Opinion of Divisional head, past record, behavior.  Skill and knowledge.  Experience.  Loyalty toward organisation. In AMUL, Managing director signs the promotion letter getting recommendation from Administrative Department. They have promotion policy on the period 3 or 5 year. In AMUL Retirement Age decided is to 58 year. In AMUL performance Appraisal is also consider for requirment of training and development to employees. After conducting Appraisal they can decide that which employee need training for better performance.

 Transfers:A transfer involves the shifting of an employee from one job to another without any special reference to changing responsibility or compensation. In AMUL transfer of employee is done if necessary for organisation. Sometimes transfer is done to help the employee. Write making transfer, the skill of an employee is taken into the consideration. AMUL gives first preference for transfer to those who are coming from local areas. Normally, AMUL gives transfer to adjust the workforce of one plant to another.

 Wages:Compensation genarally comprises cash payment include wages, bonus and shared profit. Good compensation plan have a salutary effect on employees. They are happier in the work; co – operative with management and productivity is up. There can be both monetary and non – monetary forms of compensation. Wages in the widest sense mean any economic compensation paid by the employer undr some contract to his workers for the services rendered by them. They are basic salary and allowances. The basic wage is the remuneration, which is paid or payable to an employee in terms of his contract of employment for the work done by him. Allowance includes dearness allowance, bonus, overtime pay etc.  Method of wage payment: Time wage:- It is based on the amount of time spent wages measured on the basis of unit of time.  Piece wage:- it is based on the amount of work performed.  Compensation structure:structures.  Internal Equity.  External Competitiveness.  Performance based payment.  Wage Incentive:In the word of Hummel and Nickerson, Wage incentive:- “refers to all plans that provide extra pay for extra performance in addition to regular wages for a job.”

There are 3 sound primary compensation

A system of wage payment, which would maintain both quality and quantity, is called incentive wage plan. There are three broad categories of incentive schemes as classified. They are:  Simple incentive plan.  Sharing incentive wage plan.  Group incentive plan.  Wage Legislation:The government has enacted legislative measures to protect the wage earners rights and to emphasis managerial obligation in this regard. The main wage legislation are:  The payment of Wage Act,1936.  The minimum wages Act,1948.  The payment of Bonus Act, 1965.  Pay policy:According to the report of the third central pay commission:- “A sound compensation package should encomoass factor like adequacy of wage, social balance, supply and demand, fair comparison, equal pay for equal work.” Fair wages should be fair from the point of view of both employer and employee. While referring to basic wage levels, three terms are extensively used. They are:  Minimum Wages.  Fair Wages.  Living Wages. The above mentioned terms are used by the report of the committee on fair wages set up government of india in 1948, to determine the principle on which fair wages should be based and to suggest how these principles should be applied. According to this committee, the minimum wage should represent the lower limit, the next higher level is the fair wage and the highest level is the living wage.



Salary Administration:In AMUL salary counting is a centralization process. That means, salary of all plant worker, chilling center and AMUL dairy workers is counting at AMUL in Account Department. Every month leave must of concern plant send in an Account Department and according to that they prepare salary sleep of employees. In AMUL salary prepared on based of Attendance report from T.K Office. In AMUL Time Keeping Department has its own important. It play very important roll in AMUL. This Department is handling a work of keep attendance record of employees in AMUL. T.K Office send this report to account department. Attendance of all employees are analysed and entered into computer. On base of that record salary, wages and deduction is made. After made deduction salary is paid to them. Attendance is consider to be one of major and important factor. The wages are paid in cash and also have a facility of bank A/C in UTI bank for employees. salary transfer in that particular account of employee. ATM facility is also avilable for employees. so employee can withdraw money at any time.  Wages and Allowances:In AMUL they give various type of allowances to their employees. some of are mention under:  Basic:Basic pay is the fixed salary or wage, which contributes the rate for the job. In AMUL basic is decided according to designation of employee and their grade. In future the increment will given to employee in basic according to his/her experience.  D.A:D.A. is given to employees as a rule. D.A counting report came form Ahmadabad office. In AMUL D.A is counting by using following formula. D.A. = Price Index No.* 3.29 + Working days + 145 192 The price indext no. is considering of Ahmadabad Management and settlement committee decides D.A every three year.  Adhoc:Adhoc is a one type of allowance given to employees. union is deciding this allowance as an extra benefit for employees.


 HRA:House rent allowance is given to employees as an incentive. HRA is given to that employees who are not leave in quarter allotted by union.HRA is deciding by management committee every three year according to designation of employee.  Travel Allowance:Travel Allowance is given to employees as incentives. Travel allowance is deciding by management and committee according to designation of employee.  Medical:For the medical expanse of employees this allowance is given. Medical allowance is deciding by management committee according to designation of employee. This allowance is given to employee for their children education.  Bonus:Individual employees may receive additional comensation payments in the form of bonus, which is a one time payment that does not become part of the employee’s basic. In AMUL bonus is paid to employee on regular basis on Diwali. According to the payment of bonus Act.1965 organisation must paid bonus at a rate of 8.33%. AMUL follow this rule and paid minimum 8.33% of basic + D.A + Adhoc as a bonus. Some time they also paid more than 8.33% of bonus to employees.  Production Bonus:In AMUL production bonus is also paid to employees. management decides this bonus. In this bonus they decide some amount per day and than that amount is multiply with working days of employees. whatever the resulted amount is given to employees as a production bonus. For example if management decide Rs. 4 per day and one employee work 200 days in a year than Production Bonus = 200*4 Production Bonus = 800 So that employee get Rs. 800 as a production bonus. In AMUL the other allowance is also given like Performance Allowance. According to Grade this allownce is given. In AMUL if any employee want advance then there will be provision of such facility. In AMUL they also have given LTC every four year to their employees. this mount paid according to designation of employee.

 Deduction from Salary: Credit society:In AMUL, credit socity is run by union. Almost all employees are members of this society. Every month certain decided amount is deducted from salary of employee. The work of socity is if worker need financial help than he/she will take loan from the socity. The amount of this loan is deducted from salary in installment.  Loan:If any employee take a loan from socity than it will deduct from salary. The other provision in AMUL is if any employee takes loan from HDFC bank or Ghruh bank than their installment is deducted from salary of employees.  LIC Premium:LIC Premium is deducted from of employee directly.  Provident Fund:Provident Fund is deducted from salary of employee every month.  Canteen Coupon Charge:In AMUL there is a facility of canteen for the employees. for benefit of employee union give employees a coupon. Coupon is given of Rs. 19.50 to new employees while to old employees coupon given of Rs. 24.50. this amount is deducting from salary.  Professional Tax:Professional Tax deducting from the salary of employee every month according to their gross salary. According to rule the employee has a gross income between 3000 – 6000 the tax deducting Rs. 20 & 6000 – 9000 the tax deducting Rs. 40 & 9000 – 12000 the tax deducting Rs. 60 and more than 12000 the tax deducting Rs. 80.  Income Tax:Income Tax counting yearly for all employees who are came under government income tax policy. That amount divided by 12 and according that monthly income tax deducting from salary of that employee.  Quarter Rent:AMUL allotted quarter for their employees. Quarter rent deducting from salary of employee every month.

 Advance:In AMUL they give advance to their employee if he/she needed. If such advance paid to employee than that amount will be deducting from salary. AMUL also give festival advance to their employee. So that amount is also seducting from salary.

In AMUL the retirement age is 58 year. Ater employee get retirement AMUL provide some retirement benefit to their employees. such benefits helpful to employee for his/her life retirement. With this benefit employee can pass his/her life happily.  Provident Fund(P.F):The central Government provides such type of scheme for the employees. In AMUL P.F. scheme is also provided to the workers and work according. To the employee provident fund Act.1952. there is a „KDCC employee trust‟ in AMUL for the P.F. this trust manage by union and invest that money according to central government policy. In this scheme 12% of basic + DA + Adhoc is Deducted from the salary of employee every month. Management is also adding 12% in P.F. of employees. It means 12% of employee and employers and adding in P.F. this amount transfer and store in Account of that particular employee. Union paid interest on that amount every year. Basically center Government decides interest on the P.F. and according to that organisation should pay but in AMUL they paid more interest than decided by Government. This amount with interest than decided by Government. This amount with interest will give to employee at time of his/her retirement. During service if employee need money he/she can be withdraw some percentage of amount from account by providing satisfactory reasons. Employees can withdraw up to 90% of amount from their account as aloan for home construction, marrage, illness etc.  Gratuity:In AMUL they provide gratuity to their employees. union deposit 8.33% of total amount of basic + adhoc + DA at LIC branch at baroda in gratuity trust of AMUL. From that amount union give gratuity to their employees. Gratuity count by following formula in AMUL. These formula use at that situation after 5 year complited But in 1 year they joined 15 days. So these situation following formula are sued. Gratuity = basic + Adhoc + DA * 15 Total no. of 26 service OR Gratuity = Basic + Adhoc + DA * Total no. of service.

Union paid Gratuity to their employee’s accordingly above formula. They paid which ever is higher from above formula.  Super Annuations:In AMUL they have a provision of Super Annuation for their employees. union is deposit 12.5% of Basic + Adhoc for a super Annuation to their employees per year. From that fund 1/3 given in cash and 2/3 transfer in pension fund for employees.  Leave Salary:In AMUL, employee get benefit of more leaves than actual rule. That leave without use of employee converted into paid leave at the time of retirement. For leave with salary PL and LS is consider. So, these are the wage and salary facility provided by AMUL to their employees. it is a vary good and transparent system of AMUL for wages. About allowances, every three year settlement committee and management will decided that how allowances paid to employees.

Employee turnover is amost affecting factor in performance of organisation. If employee turnover contnue in organisation, this will be dangerous sign of organisation. This factor proves costly for organisation in financial as wll as performance base. There are so many reasons for employee turnover. Some of them are:  Hiring practices of Organisation.  Managerial Style.  Lack of Recognition.  Lack of Competitive Compensation System.  Toxic Workplace Environment. In AMUL the employee turnover rate is very minimum. AMUL concentrate more on this factor. For that they work effectively to retain their employees by providing good facility and good enviroment. Step taking by AMUL are:  AMUL has good hiring process. They putting right people in the right position at the right time and then training them properly.  Managerial style is also very good in AMUL. In AMUL managerial person think that management is about tomorrow, not yesterday. They have a clear vision and not myopic vision. So employees, who work under managerial person, work in good leadership. They are happy with the working style of top level management.

 In AMUL they provide very good enviroment to their employees. they provide good facility to their employees. so that employees can work with pleasant mind and this effict overall performance of organisation. Because of this employee turnover can be minimize.  In AMUL they awarded employees for their good work. So that they feel proud about organisation and try to work hard. This also increases dedication of employee toward the organisation. They always motivated employees. unio satisfies their basic needs. So this is the one reason that employee turnover is minimum in AMUL.  In AMUL there is a good incentives and reward system. This system is helpful to win employees trust and satisfaction. Because of good wage and reward system employees feel security. They give reward to employees at right time without delay. So employee turnover rate is minimum.  In AMUL employees get training at right time and right way. When any new technology introduce, AMUL conducting training and development programme. So that they can enjoy their work. These are some points on which AMUL focusing to retain their employees. union tries best to satisfy their employees by all way.

In AMUL, the workmen’s compensation Act. 1923 is very well executed. The compensation is given to employees as per the Act. In the case of major accident occur in organisation and if any worker get injure that time organisation take care of that employee. If the employee is under medical treatement and unable to came in organisation for job, than half salary will be given to that employee until he/she will again join organisation. Employee also gets all incentives during this period. Union provides complete expanse of medical treatement to his/her employees. they have a provision for that amount in welfare fund. For that a report from surgeon is considered. In case of minor accident, if any employee get injure that time disability certificate take as an evidence for the payment of compensation. According to disability cerificate union decide the compensation. Disability certificate must be issue by doctor from civil hospital. According to Act. If accident take place because of worker mistake than he/she will be unable to get compensation. But in AMUL even if accident occurs by workers mistake in that case union paid compensation according to injury. For that employees must pass through medical report. In case of accident, if worker get serious injury and he/she will be unable to do same work after getting recovery than management give them relief by transferring them in another section for suitable work. By this way they retain their employees.

Industrial relation is the relationship between employer and employee. IR is a harmonious relationship. IR is an integral aspect of social relation arising out of employer employee interaction in modern industries. IR based on provides a good environment and working condition to employee. IR also based on satisfaction of employee about their wages and incentives. On other side employeer want good output from employee is necessary for build good IR. In AMUL IR is very good for that from both ends they always try to build it strongly. AMUL provide good facility to their employee and also do welfare activities for them. They also provide friendly envirment for them so they can work eith pleasant mind. They also satisfied basic needs of their employee. They provide good wage to their employee. For build good IR, good communication is also necessary. If there is a problem in organisation, it can be solve by communication. Either employee has a problem or management has a problem, they can solve it by communication. For that in AMUL they have a best provision for that. In AMUL the unique system is of “Patharna Meeting” that is held once in month. The most important feature of this meeting is that all top level management people and workers sit together on the floor and discuss all the problems exisiting in the organisation this is a meeting where chance given to every employee and employer to say about his or her experience whether good or bed in the organisation and their opinion about the organisation workings. In AMUL they give an award to the employee who completed their 25th year in AMUL. They also give award to children of employee who get success in 10 th or 12th examination. If there is any happy or sad social occasion at employee house, the key person of AMUL attend that occasion and try to share their joy and sorrow. This way they try to build strong IR system. Employees try to build good IR. They work very hard and give full satisfaction to the management.

 Factory Act.:AMUL is a cooperative sector in dairy industry. They follow Factory Act.1948. According to factory Act. They follow rule and regulation. In AMUL they arrange shifts for employees as afollowing:  Total No. of Shifts:- Three  First Shift Time:- 8:30 a.m. to 4:30 p.m.  Second Shift Time:- 4:30 p.m. to 12:30 a.m.  Third Shift Time:- 12:30 a.m. to 8:30 a.m.  Office Time:- 10:30a.m. to 5:30 p.m.

In AMUL, for overtime work they give one leave, if worker works 4 hours as over time. In AMUL, there are three committee are made for employees.  Workers committee.  Safety committee.  Canteen committee.  Facilities Provididng to Employee:For any organisation workers are main source. Without manpower not a single organisation survive. If workers are efficient that it is easy for the organisation to achieve goal. For that workers need good environment and facility. To apply this principle AMUL provide very good facility to their employee so that employee works productively. Under the Factory Act 1948, AMUL provide following facility to their employees.  Canteen facility:AMUL has its own canteen for its employees. All the employees of AMUL get tea, coffee, breakfast and lunch at minimum rate. They get tea and coffee 40 pasia per cup, Dry fast food at Rs. 8 per kg. And lunch dish at Rs. 5 per dish. For that they provide coupon to their employee contain coupon of 40 pasia, Rs. 1.20, Rs. 5, Rs. 8. They have a contract with a shop “Khati – Mitthi”. Employees also use their coupon there and get Dry Fast Food.  Medical Facility:AMUL also provide medical facility to its workers. They organized vaccination program for the workers on the regular basis. AMUL has its own Hospital in the organisation.  Bonus:In AMUL Bonus is given to the workers and officer befor Diwali. Production Bonus is also given to employees.  Loan Facility:In AMUL loan is also given to employee as per rule and regulation. For that they have a socity. It is made up of employees. every month some amount of employee deduct from his salary. It’s a one type of saving. When employee need loan they get from this.  Safety:AMUL also provide Hand Gloves, shoes, Apron and other things needed for the safety purpose of workers.  Uniform:AMUL gives 3 pairs of uniform every 2 year to the workers. They also provide free washing facility of uniform. For that workers have to leave their uniform for wash and collect in 2 days.

 Advance:The advance that the company provides is food gaining advance, festival advance etc.  Personal Accident Policy:The amount for this policy is set up for every workers category wise. The company on behalf of the workers pays the premium. In case of any accident this policy is very helpful for workers.  Workers comensation policy:If during the office time of working time any accident occurs the company will pay for the injury as per the workman compensation act.  Industrial dispute Act.:The industrial dispute Act. 1947, defines as industrial dispute as “ any dispute or difference between employers and employers.” Industrial disputes may take the form of strikes, hunger strikes, lockouts etc. industrial dispute may be raised on any one of the following issues:  Wages, fixation of wages, modes of payment.  Fairness of the standing orders.  Payment of gratuity, provident fund, allowance etc.  Dispute between employers and employees. In AMUL, to handle industrial dispute union made committee that contains 4 people from managerial post of different department and 4 people of workers side. Whenever dispute arises in organisation, they look out the problem and discuss that problem. from both side arguments take place and finally try to solve the problem. After getting Agreement from both sides they finally reach on conclusion. To resolve the industrial dispute in AMUL, they look out all small things, which create dispute. They work practively and take positive step to resolve dispute.  They provide good facility to their employees.  Union provides good working environment to their employees.  Union has a very good wages and allowance structure.  Welfare activity is also doing in AMUL.  They also look out job satisfaction for employees. For that they arrange meetings every month regularly. In that meeting top level as well as lower level employees take part. They discuss problem and try to solve that. They have a suggestion box facility for employees.

Because of such a facility AMUL is far from dispute. They also take care of employees as family member and not as an ordinary worker. They also look out job satisfaction for employees.

The Kaira District Co – operative Milk producer has a large volume of products and the manufacturing process of product continues for 24 hours of entire year. In AMUL Time Keeping Department has its own important. It play very important roll in AMUL. This Department is handling a work of keep attendance record of employees in AMUL. On base of that record salary, compensation, wages are decided to pay to employees. In AMUL there are two type of time keeping system in Dairy Plant.  Electronic punch card system ( for officers).  Manual punch card system ( for workers).  For Officers:In AMUL Dairy Muster keeper maintain Detail of each employee. This function is handle in time keeping office. When employee enters in the organisation he has to sign in the muster and also use electronic punch card. For that electronic system is fix at office. The punch card functioning in a way that employee uses it maximum 6 times in a day. If workers want to go outside during the recess than he has to punch card.  For workers:For the workers there is a manual punch card system. There are two type of card. The first one is pink and the other is white. The workers have to punch then whenever they going off the duty and at the recess time. Type of Leave: Privilege leave.  Casual leave.  L.W.S.  Notified holiday.  Optional holiday.  Accident leave.  Maternity leave.  Dog bite leave.


 Privilige leave:According to office rule employee can use 22 P.L in a year.  Casual leave:According to office rule in a year 7 C.L are given to the employee.  L.W.S:In year 16 L.W.S are given to the employee.  Notified holiday:In a year 12 day are notified holiday. All employee under office rule entitled for this 12 days leave.  Optional holiday:5 days optional holidays are entitled under office rule for the all workers, managerial group and other staff.  Accident leave:Medical certificate from doctor is required to be taken for the accident leave.  Maternity leave:For woman employees 12 weeks leave is given for the delivery.  Dog bite leave:If an injured person shows medical certificate, leave is given to that employee according to rule.

 SERVICE ROLL:- This file include following details:  Employment number.  Full name of employee.  Designation.  Date of joining.  Date of confirmation.  Date of increment.  Date of retirement.


 IN TERM OF TRANSFERS AND PROMOTION:  Date of transfer.  Change in designation.  Grade given.  Permanent address.  Phone no.  Progressive salary.  MUSTER KEEPER:Muster keeper is a file in which day – to – day presence and absence to be noted. Accordingly salary is adjusted.

There would be a company or industrial concern which functions absolutely all the time. The employees have complaints their subordinates or supervisors or reverse may be case. Broadly speaking, a complain affecting one or more worker constitutes a grievance. In AMUL, there are day – to – day problems of workers. To handle those problems, a grievance handling procedure is established. There are some committee, engineering committee, safety committee etc. this committee handles all problems and try to solve them. Safety committee is very important out of all committees. First of all, employee is given opportunity to express his/her problem to their supervisor. If the supervisor fails to settle to the grievance, he is sent to the manager. Their face –to – face discussion is done regarding grievance, he is sent to the manager. The ultimate person to solve the problem in the organisation because otherwise the problem will be taken care of by the above committee.




SR. NO. 1 2 3 4 5 6 7 8 9 10 11 Introduction. Production Plants.


PG.NO. 069 069 071 077 077 078 078 078 079 080 081

Manufacturing Process of Products. Interrelationship of Production Department. Manpower Scheduling. Material Handling Equipments. Production Scheduling. Plant Location. Plant Layout. Purchasing. Storing.


PRODUCTION DEPARTMENT The AMUL is started with only 250 liters of milk per day but now AMUL. Collect average 6.5 lakhs litters milk. With the financial help of UNICEF, union established a Rs. 5 million factory to manufacture milk powder and butter in november 15, 1954. In 1958 the plant was expanded to manufacture sweet condensed milk in 1960. In 1960 the other branch is started, which can produce 600 tones of cheese and 2500 tones of baby food every year. In 1964 the other plan was established to manufacture cattle feed on october 31, 1964. Today the AMUL has three plant known as AMUL 1, 2, and 3. All three plant work 24 hours a day continuously. The all manufacturing process done automatically.

Production is the process of conversion in which all inputs are converted into output. Production managemnt is very necessary for getting optimal output with maximum use of inputs and raw materials. AMUL has its manufacturing units. These all units are concerning with production of various milk product. The four plants are as follows:  AMUL DAIRY, ANAND:This plant is engaged in production of processed milk, powder, butter, flavored milk, ghee etc. This is located in An and city.  AMUL CHOCLATE PLANT, MOGAR:This plant basically manufactures Chocolates and Nutramul. It is situated anand – vadodara national highway no.8.  AMUL DAN, KANJARI:This plant is engaged in the production of Dan. Dan is basically the cattle food. It is situated between Nadiad and An and, near Kanajari railway station.  AMUL PLANT, KHATRAJ:This plant manufactures raw cheese. This plant is located between Nadiad and Mehmadavad.


 Products: Milk.  Butter.  Cheese.  Milk Powder.  Condensed Milk.  Baby Food.  Ghee.  Nutramul.  Chocolate.  AMUL Butter Milk.  AMUL ice – cream.  Dan (Cattle Food).  Industrial products: Coco Butter.  Coco Powder.  Coco Mass.  Cream.


For the Manufacturing of processed milk products, everyday milk is bought from 1028 village societies through truck. Since several no of chilling centers have been allotted to the village societies according the quality of milk being collected. Milk sourcing is eliminated further the trucks have the containers, which are thermoses shaped and hence protected the milk from getting spoiled. The milk comes twice a day. Generally about 85% of milk is the buffalo’s milk and rest is cows. AMUL have capacity of handling 15 lakh liter milk per day. Milk is received first at the raw milk receiving dock. The cans of milk are smelt washed and sample of milk is taken. Chemicals and hot air then wash the cans. While milk is brought to AMUL, its temperature is generally 8 to 9 degree C. So milk is pasteurized that means it is first heated at 70 to 80 degree C. this process kills the germs and bacteria from milk. Then milk is chilled at 3 to 4 degree to protect from getting spoiled. Then milk is stored in bullet like containers. AMUL has 8 such containers having the capacity of maintaining 15 lacks liter of milk each. The processed milk is thus used for producing milk products and the surplus milk sent villages and big cities in packing for sale. There is pouch machine for fulfilling this purpose, which packs 500 gm. of milk in pouches. The manufacturing processes for several products in AMUL plant are as under.  Butter:In the plant, there is a machine called separator vessel, which counts the fats of the milk and separate the excess fats from the milk. This excess fat is used to manufacturing butter. Butter is manufactured from the fresh cream of the milk. The raw milk is weighted and poured into cream separator. Pure fat on cream gets separated from milk. Then colored salt is added in it to make butter. The processing of butter takes 7 min. butter making is however a continous process. Almost 30 tones of butter are packed each day. Butter is then moved on the conveyor belt to pack it in 100 gms. packing. The butter packets are then automatically moved into a box, which contain specific number of butter packets as specified by the computer program formally.  Ghee:Sour milk is used for the production of ghee. This milk is sent to the cream machine for collecting cream. Cream is converted into butter and butter is heated to make ghee. Ghee is then packed in tins or plastic bags in the packing of 1, 2, 3, 4, 5, and 15 kg.


 Milk Powder:Standardized milk is first of all heated under vacuum and extra water of milk is evaporated from the condensed milk. This process is done in a triangle shape machine. When milk is heated, the milk takes the forms of drops. Then these drops are sprayed so that they become solid in powder form and get down through an automatic packing machine. AMUL has the capacity of manufacturing 60 lacks tones of milk powder everyday.  Flavored Milk:Market milk form AMUL – 3 is processed in this section marketed under the name of kool and AMUL shakti. It has four flavors i.e. Elaichi, Kesar, Rose, Coffee. The color is to different flavors.  Bottle filling:The bottle are filled and caped in a machine. It has max. capacity of 60 per min. the empty bottles are kept on conveyer of packing machine. For this there are 12 heads. The bottles are filled by 12 heads. The bottles are placed on conveyer. The laser printer then prints mfg. Date, bach no., MRP and best before. Shrink packing is at 155 – 165 C.  Production Capacity:In AMUL there are different product produce. The production capacity of product per day is:  Butter  Powder Plant (L & T)  Powder Plant (F60)  Powder Plant (F30)  Flavor Milk  Milk – 50 to 60 tones. – 70 tones. – 60 tones. – 30 tones. – 40000 bottles. – 2200 – 2500 cerate.

AMUL has 20 warehouses for storing the products.  Pouch Packing Section:Pouch packing section deals with packing of milk into the pouches. There are three packing machines, each machine consists of two identical heads for packing, each head draws heats sealable polyethylene sheet from a separate roll and is fed with milk to be packed from the over head tank by gravity. The materials moved continuously downwards in a strip, the film be folded. First, vertical seling occurs. As continuously cylinder moves, downward transverse heat seals are made by jaws which has the effect of closing the

bottom of pouch, so that measured volume of milk if filled into the space above a seal.

Milk pouch specification:Milk: standardized pasteurized milk.  FAT % 4.5 (min).

SNF % 8.5 (min).

MILK RECEPTION Quality control lab


Skim Milk

Market Dispatch


Powder Plant



Butter Plant

Ghee Plant



 Process Flow Charts: Milk:Raw chilled milk in tankers



Milk Clarifier

Raw Milk Silo

Cream separator

Skim Milk

Cream Balance Tank


Cream Pasteurizer

Milk Separator

Cream Storage Tank

Issued to Powder Section

Issued to Butter Section


 Butter:Raw Milk


Separation &Skimming

Skimmed Milk





Ripening of cream

Standardized Milk


Storage in consumer packs Consideration of Milk Dispatch White Butter




Spray Drying








Ghee:White Butter

Flavored Milk:Receiving Milk

Melting Vat


Melted Butter Pump

Pre – Heating at 60 c


Addition of Sugar

Chilling at 5 c Melted Butter Tank in Pot Addition of flavors & colors

Open Butter Valve for Heating

Bottling Sampling

Capping Ghee Buffer Tank





The production is the heart of organization. In AMUL all the departments are interrelated. They depend on each other.  Purchase and Production Department:The purchase department purchases the engineering equipment and packaging material. They purchase it according to requirements and this keep continuous flow of production.  Sales and Production Department:In AMUL sales department are sale product of AMUL at local level by AMUL parlor. A sale is done according to production.  Marketing and Production Department:AMUL has marketing department known as GCMMF. In AMUL GCMMF forecast the possible sales in the future and market report on it. This report is sent to the production department and production department produce accordingly.

 Maintenance:Kaira Union collects milk every night and day, it means 365 day in a year and manufacturing products. There are mainly three shifts of working employees:  8:30 a.m. to 4:30 p.m. – 390 workers.  4:30 p.m. to 12:30 a.m.  12:30 a.m. to 8:30 p.m.  Total Workman: Manager  Workers  Officers  Clerical – 45. – 1200 approx. – 180. – 258. – 270 workers. – 190 workers.

Each and every year is declined trend in employment because of technological improvement. When the shift starts workers punch card and officers have to sine in the master roll and also there is mentioned recess time.  Morning  Noon – 10 minutes. – 30 minutes.

 Afternoon – 10minutes.

Material handling is art and science of moving packaging and storing of in any form. In AMUL there are following types of material handling equipments:  Milk Tankers.  Tempos.  Belt Conveyers.  Crates.  Cans.  Trolley.  Cans Tube.  Plastic Tube.  Glass Bottles.

Product scheduling plan develop and successfully markets the products. It is initial point for whole marketing functions. In AMUL, federation decides what type of product is to be produced or what are the requirements for developing the new product. If the prevailing products are not at their best then what kind of up gradations are required that GCMMF guides AMUL for following concern and accordingly the unit works. So the product planning is to introduce and develop the new product as per the consumer’s requirement.

Plant location deals with the selection of optimum location for establishing industry. The selection of location is affected by a variety of factors like:  Availability of raw material.  Proximity of market.  Availability of water, power etc.  Government policy.  Availability of finance.  Availability of labour.

 Infrastructure facility.  Link with the transportation network. Hence location decision should be taken with proper care and understanding after evaluating the each of above factors. As far as AMUL is concerned, it has selected the best location. This is because AMUL is based on the availability of milk and kaira district involves number of village surrounding an and which are main sources of for getting milk since the villagers mainly depend on selling milk to earn income. Further AMUL is very near to milk to market since milk is prime requirement of every house. Labour is cheaply available with various kinds of skills required. Anand is linked with national highway no.8 and railway, thus having good transportation facilities. Besides AMUL has developed better infrastructure facilities at its plants. Thus AMUL has chosen best location for it.

Plant layout is arrangement of facility inside the factory location. Plant layout basically deals with arrangement of equipments and machineries inside the factory building in such a manner, which ensures smooth movement of man and materials inside the factory as well as the minimum movement of man and material. It is the designing of factory place in optimum manner so as to fit the manufacturing process. There are basically three types of layouts namely.  Product layout.  Process layout.  Mix layout. AMUL is organization which is engaged the continuous manufacturing process of various milk products. As a result, AMUL has developed the product layout which follows the continuous manufacturing system. Under the product layout, product is given more emphasis than process and machineries are engaged in the order in which the product is prepared. Formerly AMUL has the old factory structure in which old machines were performing the production operation. This was taking too much time. Therefore AMUL adopted modernization and set up a totally automatic plant. As result it has developed a new plant layout at AMUL to adjust the automatic equipments and machineries.


The material, if not enough in quantity has to be purchased. Hence purchasing is an important task of production department. Material has to be purchased on timely based so that production may be sound. At AMUL purchasing procedure follows following steps:  The required department i.e. the milk – producing department send the requisition to the stores department for the requisition to the stores department for the requirement of materials.  If the store has enough quantity of material in stock, it supplies them to the department concerned.  If the stores don’t have proper quantity of material, it contacts the purchasing department for the purchase of required material.  The purchase department maintains contact with the supplier of material and demand quotation forms them.  The purchase department thus chooses the suppliers and places order with him for supply of material required. Now as the material comes to the plant, the material is first taken to the lab for testing and if material is as per order, material is accepted and moved to the stores. Once materials come to store, the concerned department would receive the materials from stores by sending material requisition. The goods received note is prepared by the purchase department. This G.R. note is then checked by the procurement billing department. The procurement billing department verifies this G.R. note with the purchase order and then prepares the cash voucher. The department would send this voucher to account section which would pay the supplier along with the cash voucher. The cash voucher will include details of supplied good & their quality as well as include details of supplied good and their quality as well as the amount approved for materials purchased. One copy of cash voucher is also sent the concerned bank.


The organization that are engaged in the activity of production need to keep the stock of raw materials as well as other part to support the uninterrupted production. At the same time, the organization also has to store finished goods because it is not sure that the goods produced will be sold immediately. Hence they have to be prevented against spoilage and breakage when they are in stored in storage house. Since milk is a perishable commodity, it has to be treated in a special manner in order to prevent it from spoilage. Hence the milk is first of chilled at 3 to 4 C. AMUL has developed the bullet type storage towers which are implementing the concept of a thermos. AMUL has 8 such towers; each having the capacity of storing 1.5 lacks liters of milk. Thus the milk is stored such storage towers.




SR. NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Introduction.


PG.NO. 084 085 087 090 090 095 096 096 098 099 100 100 101 101

Organization Structure List of Products. Market Segmentation. Marketing Research. Product Planning. Branding and Packaging. Marketing Mix. Channels of Distribution. Advertising. Competition. Pricing Policy. Sales Promotion. Export.


MARKETING MANAGEMENT  The Chartered Institute of Marketing Defines Marketing as: “ Marketing is the management process for identifying, anticipating and satisfying consumer requirements profitably”.  American Management Associations Defines Marketing as: “ Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and service to create exchange that satisfy individual and organisationl objectives.” The Marketing concept, a philosophy of early 1950s gave marketing a much more important role in business. To apply this concept, an organisation must meet three basic needs.  First, it must truly believe in the customer’s importance. Most of the companise give lip service to this idea. By contrast, a genuine customer orientation demands a commitment of people, time and monetary resources to implement this orientation.  Second, marketing efforts must be integrated. Specific and measurable goals should be set; all marketing activities should be coordinated.  Finally, management must accept the assumption that profit goals will be reached through satisfied customers. Clearly, the path to profit is not a simple one; all business firms compete within a complex environment that demand astute management of organisational resources and efforts. Marketing Concept:The marketing concept holds the key to achieveing its organisational goals consists of the company being more effective than competitors in creating, delivering and communicating customer value to its chosen target markets. Marketing starts with the determination of consumer wants and ends with the satisfaction of those wants. The concept say that any business should be organisation around the marketing function, anticipating, stimulating and meeting customer’s requirements. The marketing concept rests on four pillars. They are:


 Target market.  Customer Needs.  Integrated Marketing.  Profitability.

Managing Director

Deputy Director

Product – dispatch manager


Deputy Superintendent

Senior Officer


Marketing activity of AMUL is performed by GCMMF (Gujarat Co- operative Milk Marketing Federation). Total 90% of AMUL’s products marketed by except for liquid milk. Till 1960 AMUL was marketing their product on its own. But there were many problems against such direct marketing and therefore the idea of marketing federation was turned into establishment of GCMMF. Thus the federation was established in1972 for marketing the product of all dairies in Gujarat.


GCMMF does all the function of marketing for AMUL. GCMMF sends monthly market requirements data to the unit and accordingly the unit works for the fulfillment of the order. AMUL daily the amount of production of ghee, cheese, butter, milk powder are sent to the commercial department by production department at 10:00 o’clock. These production data are utilized for dispatching the order to federation. These dispatched orders are sending to concerned state by federation. The price of product is fixed by a programmer committee and members of this committee are as follows:  Two Members of Federation.  Two Member of AMUL.  Two Members of NDDB. Gujarat Cooperative Milk Marketing Federation (GCMMF) is an India’s largest food product 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. Member‟s No. of Producer Members. Total Milk Handling Capacity. No. of Village Societies. Milk Collection( Total – 2008-09) Milk Collection(Daily Average 200809) Milk Drying Capacity. Cattle feed Manufacturing Capacity. 12 – District Cooperative Milk Producer‟s Union 2.28 Million. 6.7 million Liters per Day. 11,132. 4017 Lac Kgs of Milk. 15.21 Lac Kgs of Milk on a Single Day. 510 Metric Tons Per Day. 1450 Metric Tons Per Day.


 Bread Spreads: AMUL Butter.  AMUL Lite Low Fat Bread Spread.  AMUL Cooking Butter.  Cheese Range: AMUL Shredded Pizza Cheese.  AMUL Emmental Cheese.  AMUL Gouda Cheese.  AMUL Malai Paneer (cottage cheese) Frozen and Tinned.  Utterly Delicious Pizza.  Mithaee Range ( Ethnic Sweets): AMUL Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom).  AMUL Amrakhand.  AMUL Mithaee Gulabjamuns.  AMUL Mithaee Gulabjamuns Mix.  AMUL Mithaee Kulfi Mix.  UHT Milk Range: AMUL Taaza 3% Fat Milk.  AMUL Gold 4.5% Fat Milk.  AMUL Slim – n – Trim 0% Fat Milk.  AMUL Chocolate Milk.  AMUL Fresh Cream.  AMUL Snowcap Softy Milk.  AMUL Taaza Double Toned Milk.


 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).  Amul spray Infant Milk Food.  Milk Powders: AMUL Full Milk Powder.  Amulya Dairy Whitener.  Sagar Skimmed Milk Powder.  Sagar Tea and Coffee Whitener.  Sweetened Condensed Milk: AMUL Mithaimate Sweetened Condensed Milk.  Fresh Milk: AMUL Taaza Toned Milk 3% Fat.  AMUL Gold Full Cream Milk 6% Fat.  AMUL Shakti Standardized Milk 3% Fat.  AMUL Smart Double Toned Milk 1.5% Fat.  Curd products: AMUL Masti Dahi (Fresh Curd).  AMUL Butter Milk.  AMUL Lassee.


 AMUL ice – creams: Royal Treat Range (Rajbhog, Cappucino, Butterscotch, Truti Fruti).  Nut – o – Mania Range (Kaju Draksh, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Sahi Pista Kulfi).  Utsav Range (Anjir, Roasted Almond).  Simply Delicious Chocolate). Range (Vanilla, Strawberry, Pineapple, Rose,

 Nature’s Treating (Alphanso Mango, Strawberry, and Black Currant).

Fresh Litchi, Anjir, Fresh

 Sundae Range (Mango, Black Currant, Chocolate, Strawberry).  Millennium ice-cream (Cheese with Almonds, Dates with Honey).  Milk Bars (Chocó bar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi pista Kulfi, Mawa Kulfi, Green Pista Kulfi).  Cool Candies (Orange, Mango).  Cassatta.  Tricone Cones (Butterscotch, Chocolate).  Megabit Almond Cone.  Frostik – 3 Layers Chocolate Bar.  Fundoo Range – Exclusively for Kids.  SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple).  Health: Isabcool.  Chocolate and Confectionery: AMUL Milk Chocolate.  AMUL Fruit and Nut Chocolate.  AMUL Éclairs.  Brown Beverage: Nutramul Malted Milk Food.


 Milk Drink: AMUL Shakti Flavored Milk.  Ready to serve soups: Masti Tomato Soup.  Masti Hot and Sour Soup.

At AMUL, since the marketing activities are handled by the GCMMF, market segmentation is also decided by GCMMF. Generally Milk and Milk products like butter, cheese, are also popular in the all age group. Hence they are segmented at the national level. Milk products like chocolates and milk powder are segmented on the basis of age. The GCMMF conduct the market survey to know the demand for the products AMUL in the market and then accordingly determines the market segments, defines the target market.

“Marketing research is the systematic design collection analysis and reporting of data and finding relevant to a specific marketing situation the company.” AMUL performs the marketing research mainly to launch a new product in market. The purpose is checking the viability of the new products in the target market for local area. AMUL conducts the market survey by appointing business administration students for conducting the market survey. PRIMARY TABULATION & INTERPRETATION I am a student of B.B.A. from M. S. University, Vadodara conducting a survey on Effectiveness of advertising towards sales of Chocolates from Marketing Department of AMUL Dairy, Anand. [1] What kind of Chocolate do you eat?


[2] Who uses chocolates in your family?

[3] What form of Chocolate do you like?

[4] Which Television channel you like to watch most?


[5] In between what time you like to watch television?

[6] By which media you prefer to watch advertisements?

[7] What factors effects you in a chocolate advertisement?


[8] Have you ever tasted AMUL Chocolate?

[9] Can you recall AMUL Chocolate advertisement?

[10] Which Chocolate do you like most?


[11] What is the frequency of purchasing Chocolate?

[12] How do you scale your Chocolate? ATTRIBUTE PRICE SWEETNESS PACKAGING SOFTNESS SCHEMES AVAILABILITY POOR 48% 20% 33% 12% 37% 12% AVERAGE 22% 14% 18% 16% 13% 15% GOOD 23% 20% 12% 23% 17% 23% EXCELLENT 07% 46% 37% 49% 33% 50%

LIMITATIONS OF SURVEY: Limited time available for interviewing the respondents. As a result of this it was not possible to gather full information about the respondents.  When I interviewed children and teenagers, sometimes they use to give answers under the influence of their parents or elders.  As summer training is going under summer season so sometimes people are less interested in filling up questionnaire.  Sometimes the problem which I face is language problem for which I have to make them understand.  Non-cooperative approach and rude behavior of the respondents.  If the respondents answer does not falls between amongst the options given then it will turn up to be a biased answer.


MY FINDINGS: During the survey it was found that still there are 10% people who have not tasted Amul Chocolate.  Lake of Awareness in consumers. Many people are not know about Amul chocolates specially children and teenagers.  As I found that the main product of Amul is Milk and company firstly wants to capture maximum market share in milk market which is approx. 66%, after it Amul is concentrating upon butter & cheese which has market share of approx. 88%, so it is not concentrating upon chocolates.  When I interviewed people then many of the people cannot recall Amul chocolate advertisement. It shows Lake of Advertisement or advertisement is not timely given or advertisement is not given on right time.  In its advertisement is not using any brand ambassador which attracts all age group people like Cadbury.  There is Lack of Sales Promotional Activities i.e. free tattoo, extra weight, toys, quiz contest etc.  Cadbury is main competitor and strategically better performer then Amul.  I find the main thing is that “Amul” brand name has very good image in consumer’s mind and they consider it as Pure & Good Product.  People who have tasted Amul Chocolate are not ready to purchase the same again.

The product is origin of marketing. The product is synonymously used with things producing and services. But we can satisfy the human wants is product. By the exchange of this product sellers gets profit while customers get satisfaction by using it. By the nature of users it can be analyses in to customer product and industrial product. The product which is directly used by customer is consumer product while the product is used by industrial for further production is industrial product. The product are produce by AMUL Dairy i.e. Milk Powder. Therefore they are defining as customer product while allied product to its member feed is used by its member to increase the production of Milk is called industrial product.


In developing marketing strategy for individual products, the marketing manager has to confront the branding decision. Branding is a major issue in the product development. A brand or a name, sign, term, symbol or design or combination of then, intended to identify the goods or services produced by the firm order to differentiate their products from those of competitors. A brand is company’s promise to consistently deliver a specific set of features, benefits or services to buyers. The best brand conveys a warranty of quality. Packaging involves activities of designing and producing container or wrapper for the product. The branding is the decision for the products of AMUL are taken by GCMMF. GCMMF has decided well in advanced to sell all he products under the name of “AMUL” and “Sager”. Hence all the milk products produced by AMUL are sold under the either of two names. On the other hand packaging of AMUL’s milk and milk products is carried on by AMUL itself. It is responsibility of production department to undertake the packaging task as soon as the product is manufactured. Hence the packaging of the products is settled at the end of the product processing lines.

The marketing mix, which is a set of four element: - Product, Price, Place, and Promotion. Product:A product is anything that satisfies a need or wants and can be offered in the exchange. A product can be goods, service or idea. Without product there is no marketing. This includes product variety, quality, product design, and brand name, sizes, warranties. AMUL produces and sell the product i.e. milk; it has to plan its product very carefully so that the consumer gets only good quality products. At AMUL, “GUJARAT CO – OPERATIVE MILK MARKETING FEDERATION LIMITED (GCMMF)” does the product planning at national level. It is the duty of GCMMF to plan the new product by conducting the market survey at the state and national level. However, issues of product lunch at the local level are taken care of by AMUL itself. The AMUL has set up the commercial department, which conducts the survey in the local areas through business. The new product decisions are also taken by the GCMMF.


PRICE:It is the value, usually in monetary terms that sellers ask for in exchange for the products they are offering. Pricing and product image are closely related. Customers will pay a higher price for well – known, well – regarded products, partly because of the image created through advertising and other promotions. This includes list price, discount, allowance, and credit terms. The prices of products of AMUL are also decided by the GCMMF. The GCMMF conducts the market survey to check the validity and feasibility of prices in the market and accordingly decides the prices of AMUL products. However, the price is inclusive of several elements like,  Cost of milk.  Labour cost.  Processing cost.  Packaging cost.  Advertising cost.  Transportation cost.  Sales promotion costs.  Taxes etc. The GCMMF considers all these cost aspects and set them up in pricing structure to decide the selling price of milk and milk products. Promotion:Place refers to marketing activities used to communicate positive, information about an organization, its products and activities to directly or indirectly expedite exchanges in target market. It includes a variety of techniques including advertisement, sale promotion, public relation and personal selling that are used to communicate with customers and potential customers. AMUL promotes its products through newspaper, T.V.; hoarding etc. television is the best media for advertising. The GCMMF however uses hoarding for advertising in local areas. Hoarding designed on the creative basis attract the customer more. Place:Place refers to marketing activities that make products available to consumers at the right time in a convenient location. It is the process of moving products from the producer to the consumer, which may involve several steps and the participation of multiple.


AMUL has developed federation and AMUL parlors located in several part of country. The GCMMF handles the works relating to managing of stocks and distributors in country. Thus GCMMF look after the disbursement of product to the various marketing channels.

Distribution decisions are very critical since they vary from product to product, customer to customer and place to place. From the customer’s point of view, a good distribution is one that enables them to purchase the product or services at on arm’s length at competitive price intermediaries or middlemen play an important role in the marketing of the product. AMUL follows following types of channel as per the product’s characteristics. Two Level Channel

Three Level Channel
AMUL Butter & Ghee

Whole Sales/ Dealer








Advertising is one of the important elements of the marketing mix and is paid of mass communication that can be traces to an identification sponsor; over the year advertising has grown from being just another element in marketing mix to a key strategic input to brand building and image creation. AMUL is using different media for advertising like T.V., Radio, Hoardings and newspaper etc. hording are generally used only in nearer area of the during plant for advertisement. In recent time, advertise for all the products of AMUL in television have been very popular in the household. They have used the slogan.



Competitors are the person who produce & sell the same product as producer by the unit competitors affect the business with several caused. The main rivals are following.  RICH MILK.  SARDAR MILK.  NESTLE.  BRITANIA.  CHEESE OF LE – BOEN.

Pricing is the sum of the values consumers exchange for the benefit of having or using the amount of money changed for a product as organization & many nonprofit organization set prices is the only element in the marketing mix that producers revenue prices is also one of the most flexible element of marketing mix. Throughout the history prices were set by buyers & sellers negotiation with each other sellers would ask for a higher price than expected to pay through bargaining, they would arrive at an acceptable price. Price is all round as all profit making. Setting one price for all buyers is relating is modern idea. It was given important by the developments of the large scale retailing at the end of the nineteenth century. A company can purpose any of the following objectives through its pricing.  Survival.  Maximum current profit.  Maximum current revenue.  Maximum scale growth.  Maximum quality leadership.


Sales promotion consists of a diverse collection of incentive tools, mostly short term designed to stimulated quick and greater purchase of particular product & services by consumers or the trades, sales promotion offers an incentive to buy. Sales promotion includes tools for consumer promotion e.g. sample, coupon, price off, free tried, warrantee, demonstration, contest, allowances, co – operative advertising, prices premium etc. sales promotion often attract the brand switches & turn them in to loyal brand users. Major decision in sales promotion as:  Establishing the sales promotion objectives.  Selecting the sales promotion tools.  Developing the sales promotion program.  Evaluating the sales promoting result. AMUL dairy believe in the term “satisfied customers are their sales representatives” and its gets repetitive order it’s from any customer.

The products like Butter, Ghee, Nutramul, Chocolates etc. made by AMUL are also exported to various countries like U.S.A, Nepal, South Africa, Kenya, Bhutan, Bangladesh, Thailand, Australia, and Gulf countries etc. New market like Russia and UAE etc. are the prospective market in international platform. In international market the federation growth rate is 34% in the AMUL brand. The federation has opened a warehouse in Dubai to serve better customers.




SR. NO. 1 2 3 4 5 6 7 8 9 Introduction.


PG.NO. 104 105 106 106 107 107 108 109 109

Organization Structure. Importance of Finance Management. Function of Account Department. Capital Structure. Working Capital. Management of Inventories. Source Capital. MIS Report Generation


FINANCE MANAGEMENT Finance is the foundation key for any organization. It is a pivot around which all the economic activities take maximum use of available finance approved distribution of prop. It is the main concept of finance management. Finance is the lifeblood of business. It is rightly turned as the sciences of money - need finance for the production of goods & services as well as their distribution. It has been said that a businessman takes money to make money. If you have money and manage it probably you will make money more. Finance management applied to an organization irrespective of its size, nature of ownership & control whether it is manufacturer or services organization. Finance management is called upon to take 3 major decisions.  Investment decision.  Finance decision.  Dividend decision. This invites finance in an economy based on money & credit. Finance management is required to purchase raw material to make product, even to sales the product & to meet current obligation. So it is necessary to collect finance in addition to its proper use of visible of resources. Financial management is activity, which is concerned with the acquisition and conservation of capital fund in meeting financial needs and overall objectives of business enterprise. In financial management process following points are consider.  Financial Analysis.  Financial Decision – Making.  Financial planning.  Financial Control.


Manager Head A/C

Assistant Manager A/C


Deputy Superintendent

Senior Officer

Senior Assistant

Junior Assistant

In AMUL to handle the finance related matter there is an Account Department. It contains 4 Division for different function.  Account Division:The function of this Division is prepare voucher, bills. It also issue Check for the payment.  ESTA Division:The function of this division is to prepare payroll of employee.  Purchase Bill Division:The function of this division is issue Check or Draft to party from whom they purchse raw material.  MIS Division:The function of this division is handle Data related Account. They have a data base system for that. They have Accounting sofyware system Telly 6.3. in which they input all information related Accounting.


Financial Management is indeed the key to successful business operations. The importance of financial management can be ascertained from the following point.  Successful Promotion:If the plan fails to provide adequate capital to meet the requirements of fixed and working capital, the firm cannot carry on its business successfully.  Smooth Running:Proper Financial Administration becomes necessary for the running of business enterprise.  Decision Making:Financial management provides scientific analysis of all facts and figures through various financial tools such as ratio analysis, budgets etc. helps the management to evaluate profitability of the plan.  Solutions to Financial Problems:The efficient financial management helps the top management by providing solution to the various financial problems.  Measure of Performance:Financial management is considered as a yardstick to measure the performance of the firm.  Capital Management:Capital Budgeting refers to planning the deployment of available capital for the purpose of maximizing the long – term profitability of the firm it is the firm’s decision to invest its current funds most efficiently in long – term activities.

 Account department handles the function related Salary, PF, Gratuity.  Income Tax related issue.  Milk payment to society.  Prepare Journal Voucher, Cash Voucher, and Bank Voucher.  Prepare Payroll. AMUL is co – operative organization therefore there is nothing like market value of share one of the source of capital acquisition for AMUL is share capital. AMUL are issue share for member of society only and not for the others. Capital structure of AMUL would be clear from some of the figure given below.


AMUL is co – operative organization therefore is nothing like market value of share whenever AMUL needs funds it issue adequate number of share, but only to its shareholders or members of societies and not to the others. The capital structure of a firm would generally denote the ratio of own capital do the borrowed capital. The capital structure thus, indicates how the capital has been raised. The capital structure of the AMUL Dairy figure is given below. Capital Structure 2006 – 07 (Rs. In Lac) 2007 – 08(Rs. In Lac) 40,00,00 Share of 100 each 2362.18 1039.51 1001.63 451.51

Authorized Share Capital 40,00,00 Share of 100 each Subscribe Capital Reserve Fund Redeemable Debentures Borrowed Loan Net Profit For the Year 2241.59 1145.30 2530.00 411.50

The basic goal of working capital management is to manage is to manage and current liabilities so as achieve a satisfactory level of working capital. The need for working capital arises because the production sales and cash flows are not instantaneous. In almost all the firm 50% to 60% of the total capital forms the working capital. Different views on working capital can be classified into two groups.  Gross Working Capital:According to this concept, working capital refers to the sum total of all current assets of the enterprise employed in the business process like funds of creditors, customers, and owners and of bankers.  Net Working Capital:This concept represents excess of current assets over current liabilities. Working capital management includes both the management of current assets and management of current liabilities. The term working capital has specific significance as long – term resources are financing the net working capital i.e. net current assets. Therefore the management of current assets and current liabilities is an important aspect of the present study.

In AMUL there is no credit with the federation. GCMMF is owned by 11 union members and wholesale dealers. Requirement of working capital in winter season is much higher and availability of fund is lesser. To meet with this working capital requirement, AMUL has got certain provision and short – term investments. From the monthly sale, GCMMF gives returns to AMUL from which it covers up its short – term expenses. Types of Working Capital:Working capital can be divided into two categories on the basis of time:  Permanent working capital:Permanent working capital represents current assets required on a continuous basis over the entire year. So, minimum amount of current assets, which the firm has to hold for all time to come to carry an operation at any time, is termed as permanent capital.  Temporary Working Capital:It represents the additional assets which are required at different times during the operating year additional inventory, extra cash etc. Sources of Working Capital:Commercial banks play the most significant role in providing working capital finance, particularly in Indian context. The other long – term sources are:  Loans from financial institutions.  Accepting public deposits.  Issue of shares.  Raising funds by internal financing.  Bank loan.

Inventory consists of raw materials, goods in progress, finished good and other stores and spares. The prime objectives of inventory management are:  To minimize possibility of disruption in production schedule of firm.  To keep down capital investment in inventories. There should be balance between two much inventory and little inventory. The efficient management and effective control of inventory help in achieving better operational results and reduce investment in working capital. Proper control of inventory not only solves the accurate problem of liquidity but also increase the annual profits and causes deduction in working capital of firm.


Since AMUL is working on continuous basis it is bound to have enough amount of inventory in stock to ensure smoothness in production without any interruption. AMUL brings milk from 1028 villages surrounding the kaira district. To store milk AMUL has provided chilling centers at co – operatives unions. To store the processed milk AMUL has developed eight milk storing towers. The milk is sold in kaira district and remaining stock is used for producing other milk products.

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 fix deposit of bank like SBI, BOB, GEB Bond, and Sardar Sarovar Bond etc. is one of the sources of finance.  Share Capital of AMUL. Share of AMUL is not for public but only for the society members.  Net profit of AMUL during the year 2007 – 2008 is 451.51 lack. Bankers: U.T.I bank: - For the salary related Transaction.  Kaira District co – operative bank: - For the payment of society.  State Bank of India.  Bank of Baroda.  Bank of Maharastra.  State Bank of Saurastra.  Corporation Bank.

MIS is Management Information System. MIS report is necessary in any type of factory wealth big or small. In any factory the small transaction are accrued. The account officer has credit or debit transaction recorded in the books. The expenses are debit and the income is credit in the books. MIS report is also known as sundry account. MIS report provides all department information to managing director. It provides two types of information.  Daily sales.  Daily production.

MIS report provides information about daily sales and daily production of the organization. It shows the actual production of the organization and compares targets with actual production. In daily production how much the company will produce and how much company can sale above data will be noted down in MIS report. MIS report provides the information about the funds required for material purchase packaging raw materials, distribution etc. then after it provides the information about the store department. This report also provides the packaging information like different types of packing 100gms, 200gms, packed in pouch or boxes. MIS report provides information about the shares, debentures, bonds, loans, profit and loss account. MIS report provides all the information to the managing director of the company. Costing:In AMUL costing section, direct and indirect costs are included cost like:  Raw Material Cost – Direct Cost.  Power and Fuel – Direct Cost.  Input Cost – Direct Cost.  Overhead Cost includes Depreciation, Interest and Marketing Costs.


The very concepts of kaira union’s system of co – operative dairying were destined to become “priceless” for millions of farmers AMUL grow day to day. In the world of liberalization, globalization and competition in international market, AMUL try best to compete with dairy industry of world. For that they have some future plans. They work hard on that future plan. Future Plans: Dairy Demonstration Project:The “Dairy Demonstration Project” is a collective effort of the union and bank. The project envisages the farmer to use high yielding animals and modern aids to increase ilk production. The union will provide necessary guidance to the milk producers on various techniques and required financial support will be forthcoming with the co – participation of bank. To illustrate and bring about better understanding of the project, a “Model Farm” establish in Mogar and Khataraj to import training to the participants.  Suvarn Jayanti Grams Swarojgar Yojana:As part of reaching the under privileged section of the society and alleviate their economic conditions, the government of India has sanctioned a scheme namely Suvarn Jayanti Gram Swarojgar Yojana (SGSY) where in beneficiaries may avail of a loan from the bank with the approval of the government and the union. Under this scheme, a marginal producer intending to avail the benefits, is allocated an amount adequate for purchase of two milk animals along with required other implements on soft – loan basis with appropriate guidance and training, it more beneficiaries subscribe to the scheme, it will not only enhance the productivity and living standards of subscribing producers. The union in turn will also be benefited by way of enlarged membership and increased milk procurement. Under this Yojana, union work for employment of village people who are living under poverty line, so that they become self reliance.  World is changing very fast. Today liberalization and globalization is everywhere. So handle this situation AMUL also prepare plan. Competition is increase in market AMUL works on that actively.  Now a day’s new technology introduce in market every day. AMUL has a plan to introduce latest technology up to 2010 in AMUL Dairy. They have also plan to introduce new product in market research and development department of AMUL is working for that.


 AMUL Parlor:AMUL will think to open own parlor at different places so that customer gets all AMUL product from one place in less price. The idea behind this is sometimes customer purchase products of other brand because the necessary AMUL product is not available own AMUL parlor. They all ready started AMUL parlor at some places but union will increase the number of parlor in near future. Potentiality of Unit for Growth: AMUL have more than 718 dairies where they establish automatic milk collection plan.  Union provides a facility of solar light system, computer to most of the dairies.  Union gets ISO 9001 – 2000 certificate and village societies also get ISO certificate. This has further helped in enhancing the image of AMUL internationally. Growth Comparison:-

Growth Comparision
No. of Societies. No. of Members. Chilling Units. Milk Collection Centers. 2006 - 2007 1095 5,76,081 172 890 2007 - 2008 1113 5,98,000 272 903

From the above figures the conclusion made is growing rate of AMUL increase every year. They move ahead and have a target to be number one dairy industry in the world.


The future of any institution is a subject, which requires constant attention. The future is perceived is one embroiled with hardship. Hardship may surface in many forms as global demands and changes, foreign affiliations, competition, liberalization, changing values, urban shifting etc. are some of them to name which we foresee and union has to cope with these. In future union should be adopt latest technology. Union should not sit foremost quality of product and co placement with existing product range but think in more innovative way. To stay ahead research and development unit has to be strengthened. Union also thinks of price to sustain leading position in the market. Prices will have to remain steady and to so union should concentrate on reducing and maintenance expanse rather than proposing increasing product price. In comparison with other countries, which are in leading position in dairy industry, the milk – producing animals in our country gives yield 4 times less milk. Hence, it is time that union should review enhancement of milk production by adopting better animal husbandry practices. So, these are the some future challenges for union that it has to be face.


“Today, co – operatives are a force to be reckoned with. We appreciate the co – operatives that have succeeded. We also recognize that these are the co – operatives that have been autonomous. Autonomy is the right of co – operatives to do what they believe they must do for their members. Our co – operative societies have succeeded not because of some protection, but because they have kept the needs of their members with honesty, integrity and perseverance.” “We must realize that today we are the flag bearers of a uniquely successful experiment of a movement that not only provides stability to marginal farm income but also nurtures and lends security to the socio – economic future of the nation. In this light it becomes our sacred duty to nurture and take forward this movement.”



India has emerged as the highest Milk Producing Country in the world. The Dairy Industry in India is considered to be a category, which has been Growing & Profitable. The Major Markets for Export of Dairy products from India include Germany, USA, UAE, & Nepal. Indian Dairy Products play a significant role in the socio – Economic & Religious activities of our population. AMUL is well poised to steer the Dairy Co- operative Sector into an era of further prosperity & Growth. AMUL have been serving as the “ROLE MODEL” for Dairy Co- operatives across the world. Since inception of Co – operative movement 1946, AMUL is having Flag bearers of a uniquely successful experiment which provides stability to marginal farm incomes & lends security to the socio – economic future of the nation. India is progressing day by day to achieve the highest position of “MAHA SATTA” in near future.

Chirag Y. Gandhi


Personal discussion of various department head. 62nd annual Report AMUL Dairy, Anand. www.Speech of chairman - P.G.Bhatol, AMUL Dairy, Anand. Human Resource Management by P. Subba Rao. Marketing Management by Philip kotler. Project Finance by H. P. S. Pahwa Production & Operations Management by Chunawalla & Patel. Business Laws & Management (for C.S. Foundation Course) by N. D. Kapoor & Dinkar Pagare. Project Report & Appraisals by H. P. S. Pahwa (Bhart Law House Pvt. Ltd., New Delhi). News from IIM, Ahmadabad.




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