Project on Amul by jodhajodhpur

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Every work accomplished is a pleasure – a sense of
satisfaction. However a number of people always motivate,
criticize and appreciate a work with their objective ideas and
opinions, hence We would like to use his opportunity to thank
all, who have directly or indirectly helped us to accomplish
this project.

Firstly I would like to thank R.K. Pandey sir without whose
support this project could not be completed. Next we would
like to thank all the people, who gave their valuable time and
feedback to this project. We would also like to thank my
college for supporting us with resources, which beyond any
doubt have helped me.

Let me also use this opportunity to thank our team members
who have contributed to this project with their invaluable
opinions and suggestions, which has gone a long way in soothing
our rough edges as a teammate.
AMUL means "priceless" in Sanskrit. The brand name
"Amul," from the Sanskrit "Amoolya," was suggested by a
quality control expert in Anand. Variants, all meaning
"priceless", are found in several Indian languages. Amul
(Anand Milk Union Limited), formed in 1946, is a dairy
cooperative movement in India. It is a brand name managed
by an apex cooperative organisation, Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF), which today is
jointly owned by some 2.6 million milk producers in Gujarat,
India. AMUL is based in Anand town of Gujarat and has
been a sterling example of a co-operative organization's
success in the long term. It is one of the best examples of
co-operative achievement in the developing world. "Anyone
who has seen ... the dairy cooperatives in the state of
Gujarat, especially the highly successful one known as
AMUL, will naturally wonder what combination of influences
and incentives is needed to multiply such a model a
thousand times over in developing regions everywhere. The
Amul Pattern has established itself as a uniquely appropriate
model for rural development. Amul has spurred the White
Revolution of India, which has made India the largest
producer of milk and milk products in the world. It is also the
world's biggest vegetarian cheese brand.

Amul is the largest food brand in India and world's Largest
Pouched Milk Brand with an annual turnover of US $1050
million (2006-07). Currently Amul has 2.6 million producer
members with milk collection average of 10.16 million litres
per day. Besides India, Amul has entered overseas markets
such as Mauritius, UAE, USA, Bangladesh, Australia, China,
Singapore, Hong Kong and a few South African countries. Its
bid to enter Japanese market in 1994 had not succeeded,
but now it has fresh plans of flooding the Japanese markets.
Other potential markets being considered include Sri Lanka.
Dr Verghese Kurien, former chairman of the GCMMF, is
recognised as the man behind the success of Amul. On 10
Aug 2006 Parthi Bhatol, chairman of the Banaskantha
Union, was elected chairman of GCMMF.


Type          Cooperative

Founded       1946

Headquarters Anand, India
              Chairman, Gujarat Co-operative Milk Marketing
Key people
              Federation Ltd. (GCMMF)
Industry      Dairy

Products      Listing of product is given below
Revenue          Template:Revenue$1 billion USD (in 2006-07)

Employees        2.41 million milk producers

Amul products have been in use in millions of homes since
1946. Amul Butter, Amul Milk Powder, Amul Ghee,
Amulspray, Amul Cheese, Amul Chocolates, Amul
Shrikhand, Amul Ice cream, Nutramul, Amul Milk and
Amulya have made Amul a leading food brand in India.
(Turnover: Rs. 52.55 billion in 2007-08). Today Amul is a
symbol of many things. Of high-quality products sold at
reasonable prices. Of the genesis of a vast co-operative
network. Of the triumph of indigenous technology. Of the
marketing savvy of a farmers' organisation. And of a proven
model for dairy development.

Sales Turnover           Rs (million)     US $ (in million)
1994-95                  11140            355
1995-96                  13790            400
1996-97                  15540            450
1997-98                  18840            455
1998-99                  22192            493
1999-00                  22185            493
2000-01                  22588            500
2001-02                  23365            500
2002-03                  27457            575
2003-04                  28941              616
2004-05                  29225              672
2005-06                  37736              850
2006-07                  42778              1050
2007-08                  52554              1325

                          GCMMF LTD

Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's
largest food products marketing organisation. 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
Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the
largest Organisation in FMCG industry engaged in marketing of milk
& milk products under the brand names of AMUL and SAGAR with an
annual turnover exceeding Rs 5000 crores.
GCMMF is a unique organisation. It's a body created by Farmers,
managed by competent professionals serving a very competitive and
challenging consumer market. It is a true testimony of synergistic
national development through the practice of modern management
We in GCMMF stand for integrity, excellence and quality through
innovation. Our roots are embedded in the phrase " Work is worship
". Those who share these values will find themselves at home with
At GCMMF Ltd, while in pursuit of excellence, we offer a unique
career opportunity to unlock your own potential. If you are looking for
a challenging opportunity, you can explore your options with us. We
firmly believe that you will never look back in your career again.

Members:                        13 district cooperative milk
                                producers' Union
No. of Producer Members:        2.7 million
No. of Village Societies:       13,141
Total Milk handling             10.21 million litres per day
Milk collection (Total - 2007- 2.69 billion litres
Milk collection (Daily          7.4 million litres
Average 2007-08):
Milk Drying Capacity:           626 Mts. per day
Cattlefeed manufacturing        3090 Mts per day

Amul: The origin
The mighty Ganges at it's origin is but a tiny stream in the Gangotri
ranges of the Himalayas. Similar is the story of Amul which inspired
'Operation Flood' and heralded the 'White Revolution' in India. It
began with two village cooperatives and 250 liters of milk per day,
nothing but a trickle compared to the flood it has become today.
Today Amul collects, processes and distributes over a million liters of
milk and milk products per day, during the peak, on behalf of more
than a thousand village cooperatives owned by half a million farmer
members. Further, as Ganga-ma carries the aspirations of
generations for moksha, Amul too has become a symbol of the
aspirations of millions of farmers.Creating a pattern of liberation and
self-reliance for every farmer to follow.

The start of a revolution

The revolution started as an awareness among the farmers that grew
and matured into a protest movement and the determination to
liberate themselves. Over four decades ago, the life of a farmer in
Kaira District was very much like that of his counterpart anywhere
else in India. His income was derived almost entirely from seasonal
crops. The income from milch buffaloes was undependable. The
marketing and distribution system for the milk was controlled by
private traders and middlemen. As milk is perishable, farmers were
compelled to sell it for whatever they were offered. Often, they had to
sell cream and ghee at throwaway prices. In this situation, the one
who gained was the private trader. Gradually, the realization dawned
on the farmers that the exploitation by the trader could be checked
only if marketed their milk themselves. In order to do that they
needed to form some sort of an organization. This realization is what
led to the establishment of the Kaira District Cooperative Milk
Producers' Union Limited (popularly known as Amul) which was
formally registered on December 14, 1946.The Kaira Union began
pasteurizing milk for the Bombay Milk Scheme in June 1948. An
assured market proved a great incentive to the milk producers of the
district. By the end of 1948, more than 400 farmers joined in more
village societies, and the quantity of milk handled by one Union
increased from 250 to 5,000 liters a day.

Obstacles: Springboards for success.
Each failure, each obstacle, each stumbling block can be turned into
a success story. In the early years, Amul had to face a number of
problems. With every problem came opportunity. A chance to turn a
negative into a positive. Milk by products and supplementary yield
which suffered from the same lack of marketing and distribution
facilities became encumbrances. Instead of being bogged down by
their fate they were used as stepping stones for expansion. Backward
integration of the process led the cooperatives to advances in animal
husbandry and veterinary practice.
Milk by products: An excuse to expand.

The response to these provided stimulus for further growth. For
example, as the movement spread in the district, it was found that the
Bombay Milk Scheme could not absorb the extra milk collected by the
Kaira Union in winter, when the production on an average was 2.5
times more than in summer. Thus, even by 1953, the farmer-
members had no assured market for the extra milk produced in
winter. They were again forced to sell a large surplus at low rates to
the middlemen. The remedy was to set up a plant to process milk into
products like butter and milk powder. A Rs 5 million plant to
manufacture milk powder and butter was completed in 1955. In 1958,
the factory was expanded to manufacture sweetened condensed
milk. Two years later, a new wing was added for the manufacture of
2500 tons of roller-dried baby food and 600 tons of cheese per year,
the former based on a formula developed with the assistance of
Central Food Technological Research Institute (CFTRI), Mysore. It
was the first time anywhere in the world that cheese or baby food was
made from buffalo milk on a large, commercial scale. Another
milestone was the completion of a project to manufacture balanced
cattle feed. The plant was donated by OXFAM under the Freedom
From Hunger Campaign of the FAO. To meet the requirement of milk
powder for the Defense, the Kaira Union was asked by the
Government of India in 1963 to setup additional milk drying capacity.
A new dairy capable of producing 40 tons of milk powder and 20 tons
of butter a day was speedily completed. It was declared open in
1965. The Mogar Complex where high protein weaning food,
chocolate and malted food are being made was another initiative by
Amul to ensure that while it fulfilled the social responsibility to meet
the demand for liquid milk, its members were not deprived of the
benefits to be had from the sale of high value-added products.

Cattle: From stumbling blocks to building blocks.
Traditionally dairying was a subsidairy occupation of the farmers of
Kaira. However, the contribution to the farmer's income was not as
prominent as his attachment to dairying as a tradition handed down
from one generation to the next. The milk yield from animals, which
were maintained mainly on the by products of the farm, was
decidedly low. That together with the lack of facilities to market even
the little produced rendered the scientific practice of animal
husbandry irrational as well as unaffordable. The return on the
investment as well as the prospects of being able to market the
product looked very bleak. It was a vicious cycle reinforced by
generations of beliefs. The Kaira Union broke the cycle by not only
taking upon themselves the responsibility of collecting the marketable
surplus of milk but also provided the members with every provision
needed to enhance production. Thus the Kaira Union has full-fledged
machinery geared to provide animal health care and breeding
facilities. As early as late fifties, the Union started making high quality
buffalo semen. Through village society workers artificial insemination
service was made available to the rural animal population. The Union
started its mobile veterinary services to render animal health care at
the farmers' doorstep. Probably for the first time in the country,
veterinary first aid services, by trained personnel, were made
available in the villages.The Union's 16 mobile veterinary
dispensaries are manned by fully qualified staff. All the villages are
visited bi-monthly, on a predetermined day, to provide animal health
care. A 24-hour Emergency Service is also available at a fee (Rs. 35
for members and Rs. 100 for non-members). All the mobile veterinary
vans are equipped with Radio Telephones. The Union runs a semen
production center where it maintains high pedigreed Surti buffalo
bulls, Holstein Friesian bulls, Jersey bulls and 50 per cent crossbred
bulls. The semen obtained from these bulls is used for artificial
breeding of buffaloes and cows belonging to the farmer members of
the district. The artificial insemination service has become very
popular because it regulates the frequency of calving in cows and
buffaloes thus reducing their dry period. Not only that, a balanced
feed concentrate is manufactured in the Union's Cattle Feed Plant
and sold to the members through the societies at cost
price.Impressive though its growth, the unique feature of the Amul
sagas did not lie in the extensive use of modern technology, nor the
range of its products, not even the rapid inroads it made into the
market for dairy products. The essence of the Amul story lies in the
breakthrough it achieved in modernizing the subsistence economy of
a sector by organizing the rural producers in the areas.
The Kaira experiment: A new beginning in more ways
than one.
A system which involves participation of people on such a large
magnitude does not confine itself to an isolated sector. The ripples of
its turbulence affect other areas of the society as well. The
cooperatives in the villages of Kaira are contributing to various
desirable social changes such as:
The yearly elections of the management committee and its chairman,
by the members, are making the participants aware of their rights
and educating them about the democratic process. Perpetuating the
voluntary mix of the various ethnic and social groups twice-a-day for
common causes and mutual betterment has resulted in eroding many
social inequilibria. The rich and the poor, the elite and the ordinary
come together to cooperate for a common cause. Live exposure to
various modern technologies and their application in day-to-day life
has not only made them aware of these developments but also made
it easier for them to adopt these very processes for their own
betterment. One might wonder whether the farmer who knows almost
everything about impregnating a cow or buffalo, is also equally aware
of the process in the humans and works towards planning it.
 More than 900 village cooperatives have created jobs for nearly
5000 people in their own villages -- without disturbing the socio-agro-
system -- and thereby the exodus from the rural areas has been
arrested to a great extent.The income from milk has contributed to
their household economy. Besides, women, who are the major
participants, now have a say in the home economy.
Independent studies by various individuals and institutions have
shown that as high as 48 per cent of the income of the rural
household in Kaira District is being derived from dairying. Since
dairying is a subsidairy occupation for the majority of the rural
population, this income is helping these people not only to liberate
themselves from the stronghold of poverty but also to elevate their
social status.
                     About the Company

Organisation structure
It all started in December 1946 with a group of farmers keen to free
themselves from intermediaries, gain access to markets and thereby
ensure maximum returns for their efforts. Based in the village of
Anand, the Kaira District Milk Cooperative Union (better known as
Amul) expanded exponentially. It joined hands with other milk
cooperatives, and the Gujarat network now covers 2.12 million
farmers, 10,411 village level milk collection centers and fourteen
district level plants (unions) under the overall supervision of GCMMF.
There are similar federations in other states. Right from the
beginning, there was recognition that this initiative would directly
benefit and transform small farmers and contribute to the
development of society. Markets, then and even today, are primitive
and poor in infrastructure. Amul and GCMMF acknowledged that
development and growth could not be left to market forces and that
proactive intervention was required. Two key requirements were
The first, that sustained growth for the long term would depend on
matching supply and demand. It would need heavy investment in the
simultaneous development of suppliers and consumers. Second, that
effective management of the network and commercial viability would
require professional managers and technocrats. To implement their
vision while retaining their focus on farmers, a hierarchical network of
cooperatives was developed, which today forms the robust supply
chain behind GCMMF's endeavors. The vast and complex supply
chain stretches from small suppliers to large fragmented markets.
Management of this network is made more complex by the fact that
GCMMF is directly responsible only for a small part of the chain, with
a number of third party players (distributors, retailers and logistics
support providers) playing large roles.Managing this supply chain
efficiently is critical as GCMMF's competitive position is driven by low
consumer prices supported by a low cost system.

Developing demand
                                        At the time Amul was formed,
                                        consumers had limited
                                        purchasing power, and
modest consumption levels of milk and other dairy products. Thus
Amul adopted a low-cost price strategy to make its products
affordable and attractive to consumers by guaranteeing them value
for money.

Introducing higher value products

Beginning with liquid milk, GCMMF enhanced the product mix
through the progressive addition of higher value products while
maintaining the desired growth in existing products.
Despite competition in the high value dairy product segments from
firms such as Hindustan Lever [Get Quote], Nestle [Get Quote] and
Britannia [Get Quote], GCMMF ensures that the product mix and the
sequence in which Amul introduces its products is consistent with the
core philosophy of providing milk at a basic, affordable price.

The distribution network
Amul products are available in over 500,000 retail outlets across India
through its network of over 3,500 distributors. There are 47 depots
with dry and cold warehouses to buffer inventory of the entire range
of products.

GCMMF transacts on an advance demand draft basis from its
wholesale dealers instead of the cheque system adopted by other
major FMCG companies. This practice is consistent with GCMMF's
philosophy of maintaining cash transactions throughout the supply
chain and it also minimizes dumping.
Wholesale dealers carry inventory that is just adequate to take care
of the transit time from the branch warehouse to their premises. This
just-in-time inventory strategy improves dealers' return on investment
(ROI). All GCMMF branches engage in route scheduling and have
dedicated vehicle operations.

Umbrella brand
The network follows an umbrella branding strategy. Amul is the
common brand for most product categories produced by various
unions: liquid milk, milk powders, butter, ghee, cheese, cocoa
products, sweets, ice-cream and condensed milk.Amul's sub-brands
include variants such as Amulspray, Amulspree, Amulya and
Nutramul. The edible oil products are grouped around Dhara and
Lokdhara, mineral water is sold under the Jal Dhara brand while fruit
drinks bear the Safal name.
By insisting on an umbrella brand, GCMMF not only skillfully avoided
inter-union conflicts but also created an opportunity for the union
members to cooperate in developing products.

Managing the supply chain

Even though the cooperative was formed to bring together farmers, it
was recognised that professional managers and technocrats would
be required to manage the network effectively and make it
commercially viable.


Given the large number of organisations and entities in the supply
chain and decentralised responsibility for various activities, effective
coordination is critical for efficiency and cost control. GCMMF and the
unions play a major role in this process and jointly achieve the
desired degree of control.
Buy-in from the unions is assured as the plans are approved by
GCMMF's board. The board is drawn from the heads of all the
unions, and the boards of the unions comprise of farmers elected
through village societies, thereby creating a situation of interlocking
The federation handles the distribution of end products and
coordination with retailers and the dealers. The unions coordinate the
supply side activities. These include monitoring milk collection
contractors, the supply of animal feed and other supplies, provision of
veterinary services, and educational activities.

Managing third party service providers
From the beginning, it was recognised that the unions' core activity
lay in milk processing and the production of dairy products.
Accordingly, marketing efforts (including brand development) were
assumed by GCMMF. All other activities were entrusted to third
parties. These include logistics of milk collection, distribution of dairy
products, sale of products through dealers and retail stores, provision
of animal feed, and veterinary services.
It is worth noting that a number of these third parties are not in the
organized sector, and many are not professionally managed with little
regard for quality and service.
This is a particularly critical issue in the logistics and transport of a
perishable commodity where there are already weaknesses in the
basic Infrastructure.

Establishing best practices

A key source of competitive advantage has been the enterprise's
ability to continuously implement best practices across all elements of
the network: the federation, the unions, the village societies and the
distribution channel.
In developing these practices, the federation and the unions have
adapted successful models from around the world. It could be the
implementation of small group activities or quality circles at the
federation. Or a TQM program at the unions. Or housekeeping and
good accounting practices at the village society level.
More important, the network has been able to regularly roll out
improvement programs across to a large number of members and the
implementation rate is consistently high.

For example, every Friday, without fail, between 10.00 a.m. and
11.00 a.m., all employees of GCMMF meet at the closest office, be it
a department or a branch or a depot to discuss their various quality
Each meeting has its pre-set format in terms of Purpose, Agenda and
Limit (PAL) with a process check at the end to record how the
meeting was conducted. Similar processes are in place at the village
societies, the unions and even at the wholesaler and C&F agent
levels as well.
Examples of benefits from recent initiatives include reduction in
transportation time from the depots to the wholesale dealers,
improvement in ROI of wholesale dealers, implementation of Zero
Stock Out through improved availability of products at depots and
also the implementation of Just-in-Time in finance to reduce the float.
Kaizens at the unions have helped improve the quality of milk in
terms of acidity and sour milk. (Undertaken by multi-disciplined
teams, Kaizens are highly focussed projects, reliant on a structured
approach based on data gathering and analysis.) For example, Sabar
Union's records show a reduction from 2.0% to 0.5% in the amount of
sour milk/curd received at the union.
The most impressive aspect of this large-scale roll out is that
improvement processes are turning the village societies into
individual improvement centers.

Technology and e-initiatives

GCMMF's technology strategy is characterized by four distinct
components: new products, process technology, and complementary
assets to enhance milk production and e-commerce.
Few dairies of the world have the wide variety of products produced
by the GCMMF network. Village societies are encouraged through
subsidies to install chilling units. Automation in processing and
packaging areas is common, as is HACCP certification. Amul actively
pursues developments in embryo transfer and cattle breeding in order
to improve cattle quality and increases in milk yields.
GCMMF was one of the first FMCG (fast-moving consumer goods)
firms in India to employ Internet technologies to implement B2C
Today customers can order a variety of products through the
Internet and be assured of timely delivery with cash payment upon
Another e-initiative underway is to provide farmers access to
information relating to markets, technology and best practices in the
dairy industry through net enabled kiosks in the villages.
GCMMF has also implemented a Geographical Information System
(GIS) at both ends of the supply chain, i.e. milk collection as well as
the marketing process.
Farmers now have better access to information on the output as well
as support services while providing a better planning tool to
marketing personnel.
List of Products Marketed:

    Amul Butter
    Amul Lite Low Fat Breadspread
    Amul Cooking Butter

    Cheese Range:
    Amul Pasteurized Processed Cheddar Cheese
    Amul Processed Cheese Spread
    Amul Pizza (Mozarella) Cheese
    Amul Shredded Pizza Cheese
    Amul Emmental Cheese
    Amul Gouda Cheese
    Amul Malai Paneer (cottage cheese)

    Utterly Delicious Pizza

    Mithaee Range (Ethnic sweets):
    Amul Shrikhand (Mango, Saffron, Almond Pistachio,
    Amul Amrakhand
    Amul Mithaee Gulabjamuns
    Amul Mithaee Gulabjamun Mix
    Amul Mithaee Kulfi Mix
    Avsar Ladoos

    UHT Milk Range:
    Amul Shakti 3% fat Milk
    Amul Taaza 1.5% fat Milk
    Amul Gold 4.5% fat Milk
    Amul Lite Slim-n-Trim Milk 0% fat milk
    Amul Shakti Toned Milk
    Amul Fresh Cream
    Amul Snowcap Softy Mix

    Pure Ghee:
Amul Pure Ghee
Sagar Pure Ghee
Amul Cow Ghee

Infant Milk Range:
Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 ( 6 months above)
Amulspray Infant Milk Food

Milk Powders:
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
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 Standardised Milk 4.5% fat
Amul Slim & Trim Double Toned Milk 1.5% fat
Amul Saathi Skimmed Milk 0% fat
Amul Cow Milk

Curd Products:
Yogi Sweetened Flavoured Dahi (Dessert)
Amul Masti Dahi (fresh curd)
Amul Masti Spiced Butter Milk
Amul Lassee

Amul Icecreams:
Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)
Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit
Bonanza, Roasted Almond)
Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir,
Fresh Strawberry, Black Currant, Santra Mantra, Fresh
    Sundae Range (Mango, Black Currant, Sundae Magic, Double
    Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies,
    Tricone, Chococrunch, Megabite, Cassatta)
    Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips,
    Cake Magic)
    Chocolate & Confectionery:
    Amul Milk Chocolate
    Amul Fruit & Nut Chocolate

    Brown Beverage:
    Nutramul Malted Milk Food

    Milk Drink:
    Amul Kool Flavoured Milk (Mango, Strawberry, Saffron,
    Cardamom, Rose, Chocolate)
    Amul Kool Cafe

    Health Beverage:
    Amul Shakti White Milk Food

Current Scenario
Federation‟s Annual Report and the Audited Accounts for the year


Total milk procurement by our Member Unions during the year
2007-08 averaged 75.90 lakh kilograms (7.6 million kg) per day,
representing a quantum growth of 12.9 per cent over 67.25 lakh
kilograms (6.7 million kg) per day achieved during 2006-07. The
highest procurement as usual was recorded during January 2008 at
98.81 lakh kilogram (9.9 million kg) per day. This increase in milk
procurement is very impressive, against the backdrop of 4.5 per
cent growth registered during the previous year. During the peak
procurement period, we have successfully demonstrated our ability
to process almost 10 million liters of milk per day.


During the year, sales of our Federation registered a quantum
growth of 22.9 per cent to reach Rs. 5255.41 crores (Rs. 52.55
billion). This is an extremely impressive growth, when viewed
from the perspective of 13.4 per cent growth that we had achieved
in 2006-07 and 29 per cent growth achieved in 2005-06. Our sales
performance has been consistent in recent years and we are
confident of maintaining these excellent results in the coming
years, as well. In global terms, our turnover is $ 1.3 billion, at the
existing currency exchange rate.
We are also pleased to note that our Federation has done
remarkably well in most of the value-added consumer packs. Sales
of Amul Milk in pouches have grown by 48% in value terms. In
2007, Amul Milk was launched in Jaipur and was received
enthusiastically by consumers. Pouch milk is the largest
contributor to the turnover of the Federation. UHT Milk has also
shown an impressive growth of 60%. We have expanded our range
in UHT milk category; through the recent launch our innovative
calcium enriched variant, Amul Calci+. Following the successful
launch of Amul Kool Café last year, we launched Amul Kool
Koko in 2007, because of which our sales in the Flavored Milk
segment has seen an exponential increase of 39%. Our policy of
continuous product innovation was accorded global recognition,
when we received the prestigious International Dairy Federation
Marketing Award 2007 for the launch of Amul Probiotic Ice-
Our sales in Amul Processed Cheese have shown consistent and
very impressive growth, year after year. In 2007-2008, we
recorded 27% growth in sales for Amul Processed Cheese, yet
again. At the same time, we also managed to achieve quantum
growth of 39% in the sales of Amul Cheese Spread. In the Infant
Milk Food category, our brand Amulspray registered a growth of
19%. In the dairy whitener segment, Amulya recorded a growth of
almost 20%. We managed to register double-digit value growth in
Butter, despite intense competition in this category. In our effort to
ensure that all sections of our society are able to afford Amul
Butter, we have given special emphasis to low unit value packs, in
our marketing effort. In line with the prevailing trend of wellness
and health-consciousness, we have recently launched Amul
Reduced Salt Butter. Extending our policy of innovative product
launches, we have introduced Amul Probiotic Dahi which has
helped to increase our sales in the curd category by 35%. Since
there is a growing demand for pure and natural products in India,
we have introduced pure natural vanilla ice-cream in a wide range
of pack sizes.


The strategic thrust placed on opening Amul Parlors since 2002
has now started yielding the desired results. We had anticipated the
paradigm shift in macro economic scenario and the burgeoning
threat of organized retailers. Amul Parlors will enable us to counter
the potential threat from competitors. They will also increase the
visibility of the Amul brand in the retail market. Our own outlets
enable us to interface directly with consumers and provide an ideal
platform to showcase our entire range of products. Through a
concerted team effort, we have managed to create 2300 Amul
Parlors in 2007-08, from which a sales turnover of Rs.107 crores
was generated. Our outlets have not only helped brand Amul to
become ubiquitous but also have managed to provide a very
rewarding employment opportunity to hundreds of entrepreneurs
across India. During the new financial year, we have taken a goal
of setting up 10,000 outlets by March 2009. To achieve this
challenging goal, we have identified certain potential locations
such as Railways, Airports, Universities and Shopping Malls.


As you are aware, there was a ban on exports of milk powder
during initial six months of the year and hence our export of bulk
milk powder was adversely affected. However, it is my pleasure to
inform you that our export turnover has more than doubled during
the year. We have recorded turnover of Rs 125 crores this year
against the last year’s turnover of Rs 60 crore. However, we have
been able to perform extremely well in exports of consumer packs
with very encouraging growth in ethnic Indian products like
Paneer. We are planning to focus more on consumer products and
brand building during the coming years in the global market so that
brand “Amul” can truly become “The Taste of India” to the entire


Consumers expect marketers to deliver products in the locations
and forms they require. To meet expectations of such demanding
consumers, alignments of our four Distribution Highways of Fresh,
Chilled, Frozen and Ambient products were already made by
introducing Project DIL. Subsequently, a major initiative was
taken to enhance distribution network to smaller towns. About
1200 distributors in small towns across India were added during
this initiative. Today about 3000 Distributors ensure availability of
our products across India, whether it is in Leh or Lakshadweep, in
Kutch or Arunachal. Simultaneously, to augment fresh milk
distribution in various markets of India, approximately 1400
exclusive Milk Distributors have been inducted.
Last year, we divided the retail market into 14 specific segments to
achieve further distribution efficiency. This year our focus was on
inducting distributors having expertise in servicing such specific
market segments. This initiative is yielding results by way of
ensuring wider availability of our product range.
The role of distributors in our business process has never been
more diverse or more important, as it is today. As a matter of fact,
we consider our Distributor to be the real “Marketing Manager” of
our organization. To enhance business performance of our
Distributors, a workshop on Marketing and Sales Management was
designed in collaboration with a premier business school. The
objective of the entire initiative was to upgrade the knowledge of
our Distributors in terms of contemporary Business Management
Practices, so that they can perform well not only as our business
partner but also as Marketing Managers. During the year, 659
Distributors have undergone this programme in 39 locations. Cold
Storage is an extremely essential component in the Federation’s
distribution process. Unfortunately, availability of efficient cold
storage facilities is grossly inadequate in our country. To cope up
with the increasing need of suitable cold stores closer to our
markets, we have continued our endeavour of creating the
Federation’s own cold stores this year in various locations across
the country. We now own 24 state-of- the art cold rooms of
different sizes.
To get an exposure to our cooperative structure, our culture as well
as operational systems and processes, every year we invite our
distributors, major retailers and other business partners to Anand,
for Amul Yatra. So far, about 7000 Distributors and other business
partners have participated in this Amul Yatra.


During the last eight years, our Member Unions are implementing
Internal Consultant Development Programme for developing self
leadership among member producers and thereby enabling them to
manage their dairy business efficiently, leading to their overall
development. During the year, Member Unions conducted workshops
on Vision Mission Strategy for primary milk producer members and
Village Dairy Cooperatives. Facilitated by specially trained
consultants, 894 Village Dairy Cooperative Societies have conducted
their Vision Mission Strategy Workshops, prepared their Mission
Statements and Business Plans for the next five years. Till today total
5,322 village dairy societies have prepared their five year Business
plans. The programme has prompted milk producers to initiate
activities at villages such as Clean Milk Production, Water
Management, Planned Animal Breeding, Animal Feed management,
Improved Member Services Management, Information Technology,
Integration and Networking, which has very far-reaching and long-
term effects on the milk business.
As a part of the Breeding Services Improvement Programme, during
the year Member Unions have continued implementation of the
module of Improvement in Artificial Insemination Services and
imparted training to 226 Core groups at the village level. In order to
increase an awareness about the dairy industry scenario and impart
leadership skills to the Chairmen and Secretaries of the Village Dairy
Cooperatives, Member Unions in collaboration with Federation, are
conducting Chairmen and Secretaries‟ Orientation Programme at
Mother Dairy, Gandhinagar. During the year 924 Village Dairy
Cooperative Societies have been covered under this programme
involving 1,796 Chairmen and Secretaries of the Village Dairy
During the year, our Member Unions continued to encourage
increased participation of women milk producers in the Dairy
Cooperative Societies. To develop their skills and enhance leadership
qualities, Member Unions organized Self Managing Leadership
Programme at Prajapita Brahmakumaris, Mount Abu for 1,100
women resource persons along with Chairmen and Secretaries of
250 village dairy societies.
In order to strengthen the knowledge and skill base of young girls and
women of the villages about milk production management and to
motivate them to implement scientific milch animal breeding, feeding
and management methods for their animals, the Federation, with
technical collaboration and resources of the Anand Agriculture
University, has initiated an animal husbandry programme for women
resource persons of the Member Unions. During the year, 464
women resource persons have been trained under this programme.
As envisaged last year, our Member Unions have successfully
initiated Fertility Improvement Programme in their milkshed area, to
improve fertility of milch animals. During the year Member Unions
have implemented this programme in 892 villages.
With a mission of planting one tree per member, our Member Unions
celebrated the 60th year of Independence on 15th August, 2007 in a
unique way. Our 18 lakh members have planted one sapling each
across 19 districts of Gujarat and demonstrated their commitment
towards preserving and contributing to the improvement of the


To strengthen business linkages with the business partners, GCMMF
has enhanced its “Amul e-Groupware System” by adding more
features like e-mailing the invoices and ledgers to business partners,
announcing various schemes online, calendar facility etc.
“Video conferencing” is rapidly gaining in popularity, which provides
business with the ability to meet and to work with others over a
distance. For real time communication, better brainstorming,
knowledge sharing and information gathering, we have installed and
implemented Video conferencing System at our Head Office, Zonal
Offices and a few Sales Offices.
The world is moving towards virtual reality by creating virtual world on
the Internet. Our Federation has taken the initiatives towards virtual
commerce by creating an online virtual Amul Parlor in the Second
Life, an online virtual world. GCMMF has further advanced the use of
Geographical Information systems by implementing GIS based Sales
Analytics solution across various offices.


During the last 62 years, our Amul cooperative movement has served
as an effective catalyst in transforming the socio-economic landscape
of rural India. In the process of enhancing the nutritional and
economic health of our nation, we have also ensured prosperity for
2.7 million families, spread across 13000 villages in rural Gujarat.
During the peak winter months, this year, we have ably demonstrated
our efficacy and efficiency in processing as much as 10 million litres
of milk per day. Through creative marketing and innovative product
launches, we have been able to leverage effectively on the rising
income levels and growing affluence among Indian consumers. While
ensuring easy availability of „value-for-money‟ milk and dairy products
to all our citizens across the country, we have also been able to tap
the growing demand for value-added milk products which provide
higher remuneration to our farmers. Having successfully countered
the competitive challenge posed by multinational corporations, as
well as the domestic private sector, we are well poised to steer the
dairy cooperative sector into an era of further prosperity and growth.
While a glorious future certainly beckons us, our ability to actually
realize its promising potential, depends entirely on the efficacy with
which we are able to overcome the external and internal challenges
that we face today. Globalization is a phenomenon that we cannot
wish away and its politico-economic impact on our business needs to
be clearly understood. We are more vulnerable to global changes
than ever before. Remote events such as adverse agro-climatic
conditions in Australia, diversion of maize-crop from feed to fuel in
U.S., reduction in subsidies given to dairy farmers in EU, can deeply
impact prevailing conditions in the domestic Indian market. Enhanced
competition and proliferation of imported brands on our Indian retail
shelves is a reality that we will have to embrace. Innovative
technologies, creative ideas and new products that emerge on the
global horizon are swiftly making a beeline for the Indian market.
In order to effectively counter such challenges, the entire dairy
cooperative sector will have to be even more adaptive, flexible and
responsive to market realities. We need to be more agile and fleet-
footed in terms of adopting cutting-edge technologies and investing in
accelerated product innovation. We will also have to ensure that we
continue keeping our finger on the pulse of Indian consumers. As we
have done in the past, we shall have to continue incorporating the
best emerging industry practices, from around the world, into our key
business processes. We need to explore new avenues of further
leveraging on information technology to streamline our business
To enhance our efficacy and competitiveness, we need to be more
pro-active at all stages of our value-chain. Adoption of new breeding
practices and focused approach towards increasing productivity of
our milch-animals should be the highest priority for all dairy
cooperatives. Effective use of latest inputs and best technology for
enhancing milk production will be of immense benefit to our farmers.
Through process re-engineering, we will have to maintain and further
increase our operational efficiencies, so that our costs remain under
The current leaders of dairy cooperatives in India have an enormous
responsibility on their shoulders. The entire nation expects us to
exemplify virtues of selfless dedication and visionary leadership. Like
our illustrious predecessors such as Shri Tribhuvandas Patel, Dr.
Verghese Kurien and Shri Motibhai Choudhary, we will also have to
personify our core values of integrity, excellence, customer-
orientation, quality-consciousness, innovation, commitment to
farmers and employee-satisfaction. The success of our Amul
cooperative movement can also be attributed to the culture of
professional excellence that we have nurtured and encouraged in our
organization. It is our responsibility to ensure that this culture of
professionalism continues to prevail in all aspects of our business
operations. Ultimately, it is our obligation towards our nation, to
propel the Indian dairy sector towards a position of dominance on the
global dairy map.

       Various Articles taken from various newspapers

Amul hopes to flow into Japanese market
Sindhu Bhattacharya
Friday, December 30, 2005
NEW DELHI: Amul is going places. Literally. After having established
its presence in China, Mauritius and Hong Kong, Gujarat Cooperative
Milk Marketing Federation (GCMMF), India‟s largest milk cooperative,
is waiting to flood the Japanese market.The milk cooperative, which
markets Amul brand of products, is hopeful of bagging a major export
order from Japan.
In keeping with the popularity of the brand abroad, GCMMF has
revised its export target for this fiscal by Rs 50 crore to Rs 200 crore.
Says GCMMF managing director B M Vyas, “We have had a
distributor in Japan since 1994 but no major presence in that country.
But a few days ago a delegation from Japan, under the aegis of
Agriculture and Livestock Industry Corp (ALIC), visited our facilities at
Anand (Gujarat) and were pleasantly surprised with the sheer scale
of our dairy operations. I am hopeful that some of our products, such
as milk powder and cheese, could be exported to Japan soon.”
Then, GCMMF is also looking at Sri Lanka as one of its next export
destinations. Amul products are already available on shelves across
several countries, including the US, China, Australia, West Asian
countries and Africa.
While Vyas declined to reveal other overseas markets that the
federation is targeting now, he said that demand for dairy products
from India is expected to grow in many overseas markets.
Claiming that buoyant exports help the company maintain prices in
the domestic market, Vyas said that in times of milk surplus, having
ready export markets allow the federation to save itself from making
any distress sales.
GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products
include pouch milk, ultra heat treated (UHT) milk, ice-cream, butter,
cheese and buttermilk.

Taken From The Financial Express

Amul ready to take on Pepsi, Coke in sports drink segment LALITHA
SRINIVASAN Posted online: Wednesday, January 11, 2006 at
MUMBAI, JAN 10: Swadeshi FMCG major Gujarat Co-operative Milk
Marketing Federation Ltd (GCMMF) is getting ready to launch India's
first sports drink 'Stamina' in two weeks.On the other hand, videshi
major Coca-Cola India is planning to introduce its global sports brand
'Powerade' in India and PepsiCo India is preparing for a national roll-
out of 'Gatorade', which is available only in select metros now.
According to industry analysts, this nascent segment will witness a lot
of action in 2006--with the entry of new players. "Most companies
now want to cash in on the growing consumerism in India.
As lifestyles change, consumers opt for energy and sports drinks to
stay fit. At present, Red Bull which is priced at Rs 75 is the only major
player in this segment," said analysts. On Amul's foray into the sports
drinks sector, RS Sodhi, general manager, GCMMF informed the
company plans to launch 'Stamina' in select metros, which include
Mumbai, Chennai, Delhi and Ahmedabad - to start with." Stamina will
the first sports drink from India. With lemon flavour, it will be available
in Tetra Paks and is priced at Rs 12(for 200 ml). Two years ago, we
entered flavoured milk segment,"said Mr Sodhi.
According to analysts, with competitive pricing strategy, Amul will
score over other sports drinks in India, which are priced above Rs 75.
As for Coca-Cola's strategy for 'Powerade' in India, the company
spokesperson was reluctant to divulge details on coke's new
initiatives. "We are exploring opportunities to bring in new beverages
targeted at different segments in the new year," he said.
The vital question is -Will a swadeshi brand like Amul take on global
brands in the sports drinks sector in India?

News Articles:

Amul, now a billion dollar Co-Operative enterprise The
Economic Times: June 23, 2008

Gujarat: Gujarat Co-operative Milk Marketing Federation (GCMMF)
popularly known for its products brand name Amul has become
India's first billion dollar co-operative unit after touching the record
annual turnover of Rs. 5,255.41 crores (52.554 bn rupees).
It has registered quantum growth of 22.9 pc with an increase of
nearly Rs.1,000 crores (10 bn rupees) in absolute terms over the
previous fiscal year.
Besides, the GCMMF, the apex marketing body of 13 district milk
unions of Gujarat having a membership of at least 27 lakh (2.7 mn)
milk producers has reached another milestone by processing almost
one crore litres of milk in a single day.
This success was announced on the 34th annual General Body
meeting by GCMMF held at Anand recently while reviewing the
annual performance.
"Last fiscal (2006-07) our milk procurement represented a growth of
average 13 to 14 pc with average milk collection of 7.5 mn litres per
During peak procurement period, we have successfully demonstrated
to process almost 10 mn litres of milk per day. With this, our sales
turnover has gone up by 15 to 20 percent and we have crossed a
sales turnover by almost rupees 52.55 bn.
This shows an increase of rupees 1,000 crores (10 bn rupees). We
are constantly doing equally well and hope to post similar growth in
the upcoming years," said B.M. Vyas, Managing Director of Gujarat
Co-operative Milk Marketing Federation (GCMMF).
During the fiscal year, Gujarat Co-operative Milk Marketing
Federation has done remarkably well in most value added consumer
products in which Amul milk pouches have been considered the
largest contributor to the turnover with sales up by 48 per cent in
value terms.
Ultra Heat Treated (UHT) milk has also shown an impressive growth
of 60 pc. Sales in the flavoured milk segment rose by 39 pc while the
processed Amul cheese and Amul cheese spread recorded a growth
of 27 pc and 39 pc respectively.
The dairy whitener Amulya also recorded a growth of 20 pc and the
infant milk powder named Amulspray recorded higher sales of 19 pc.
Despite a stiff competition from multi national companies (MNCs) in
butter category, Amul managed to register double-digit growth in
In tune with the lifestyle trends, GCMMF has focussed on healthier
life products. Amul calci plus and Amul shake are new innovative
UHT milk category which will hit the market soon.
"Level playing is that our farmers should be protected from subsidies
export which may take place from developed world into India. If the
duties are lowered, a lot of export subsidies exist in agriculture and
when you allow such commodities to come into India with duty free it
damages Indian agriculture where our production falls down. And we
need the shelter to import and maintain supply," said Vyas.
"So we need to correct things if the exporting country subsidizing
their agriculture corresponding import duty should be there so that
Indian farmers have level playing field," he added.
Today, being the largest milk-producing nation in the world, India is
also self-reliant in terms of milk products. However, we do not have
buffer stock mechanism for dairy commodities in India.
Vyas suggested if the country can maintain and consolidate this
achievement, the policy makers must put in place an effective buffer
stock mechanism for dairy commodities alongside proper
management of demand and supply equation from milk products.
Another secret of GCMMF's success could be attributed to its policy
of supporting farmer owned organisations and giving them all their
Recently World Bank has initiated to replicate Amul's model in African
countries for their co-operative dairy development, which has shown
a remarkable growth.

Corporate Social Responsibility, The Amul Way
Corporate social responsibility (CSR) has been defined as the
“commitment of business to contribute to sustainable economic
development working with employees, their families, the local
community, and society at large to improve their quality of life, in
ways that are both good for business and good for development.”
To meet with the CSR it is expected that a business in its entire
procurement-production-processing-marketing chain should focus on
human development involving the producer, the worker, the supplier,
the consumer, the civil society, and the environment.
Indeed, a very tough task. Most businesses would certainly flounder
in not being able to achieve at least one or many of those
expectations. But AMUL has shown the way.

CSR-sensitive Organizational Structure

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

Amul (Gujarat Co-operative Milk Marketing Federation), India is the
largest food production organisation in India and have contributed
their growth and success to their
co-operative culture, co-operative networking, market acumen,
respect for both producer and the consumer and their contribution to
social integration among members of different backgrounds. They
aim to provide remunerative returns to farmers and members. When
the 2001 Gujarat earthquake struck, the Amul Relief Fund donated 50
million Indian rupees to reconstructing schools.

A devastating earthquake (Richter scale – 7.9) hit Gujarat on 26th
January 2001. The epicenter of the quake was located in Kutch
district. It caused death of thousands of people, tens of thousands
were injured, hundreds of thousands were rendered homeless and
damage of billions of Rupees was done.
GCMMF formed a specific organization named “Amul Relief Trust”
(ART) under the Chairmanship of Dr. V. Kurien in 2001 with a
donation of Rs. 50 Millions for reconstruction of the school buildings
damaged in the 2001 earthquake in the Kutch area.
The Trust reconstructed 6 schools damaged by the above earthquake
at a cost of Rs. 41.1 millions in Kutch area. Four of these schools
started re-functioning from the last two academic sessions and the
other two schools from the current session.

A school reconstructed by Amul Relief Trust in the earthquake
affected Ratadia Village in Mundra Taluka of Gujarat

A school reconstructed by Amul Relief Trust in the earthquake
affected Devpar Village in Mandvi Taluka of Gujarat
A school reconstructed by Amul Relief Trust in the earthquake
affected Devpar Village in Mandvi Taluka of Gujarat
                  Future Plans

            Amul to foray into bottled water

To capitalise on its tremendous brand
equity and offset the margin pressure on
the dairy business, Amul is planning to
foray into the bottled water segment
starting with its home state, Gujarat.
The brand name of the water shall be
„Narmada Neer‟ to capitalise on the sacred status of Narmada river in
Gujarat. It would be available in 200ml pouches, 1 litre, 5 litre and 20
litre PET bottles.
If the product get accepted in Gujarat, the venture would be extended
to other states in Indian and then Amul could piggy back on its
extensive retail network of five lakh outlets across the country.
Bottled water could otherwise provide good margins and the profits
from the venture would be primarily used for welfare of families in the
Amul‟s dairy trade. 10 years back, Amul did take a shot at bottled
water through „Jaldhara‟ which was produced by NDDB. However the
venture failed owing to less demand for packaged water in market.
But with this market growing bigger and expected to grow at 40%
every year, Amul is surely going to benefit. Another positive for the
company is that 40% of total national market for packaged bottled
drinking water is in western India, which Amul is exploring initially.
But going by scale and investments of Amul, it would seem that the
venture would be albeit on a shorter scale and done only to fulfill
corporate social responsibility.







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