ASSIGNMENT

ON
AMUL

Submitted to: Submitted by:

Dr. Azizinder Sekhon Chandan Garg
MBA-E (1yr)
16421237

SCHOOL OF MANAGEMENT STUDIES,

PUNJABI UNIVERSITY, PATIALA
 INTRODUCTION

Amul was set up in 1946 and its full form is Anand Milk- producers Union Ltd. The Brand Amul
is a movement in dairy cooperative in India. The management of the brand name is done by the
Gujarat Cooperative Milk Marketing Federation Ltd(GCMMF) which is a cooperative
organization. Gujarat Cooperative Milk Marketing Federation (GCMMF) is Indias largest food
products marketing organization. It is a state level apex body of milk cooperatives in Gujarat
which aims to provide remunerative returns to the farmers and also serve the interest of
consumers by providing quality products which are good value for money. Amul is located in the
town Anand which is in the state of Gujarat and it has set up itself as a model for development in
the rural areas. The Amul Brand has started the White Revolution in India which has helped to
make the country the biggest manufacturer of milk and its by-products in the whole world. Amul
has around 2.9million producer members covering 15,322 village societies and the total capacity
for handling milk is around 13.07 million liters every day. The brands capacity for milk drying is
around 647 Mts. each day and its capacity for cattle feed manufacturing is about 3740 Mts. each
day
 HISTORY

Amul-coperative registered on 14 December 1946 as a response to the exploitation of marginal

milk producers by traders or agents of the only existing dairy, the Polson dairy, in the small city
distances to deliver milk, which often went sour in summer, to Polson. The prices of milk were
arbitrarily determined. Moreover, the government had given monopoly rights to Polson to collect
milk from Kaira and supply it to Bombay city.

Angered by the unfair trade practices, the farmers of Kaira approached Sardar Vallabhbhai
Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to form
a cooperative and supply milk directly to the Bombay Milk Scheme instead of Polson (who did
the same but gave them low prices). He sent Morarji Desai to organise the farmers. In 1946, the
milk farmers of the area went on a strike which led to the setting up of the cooperative to collect
and process milk. Milk collection was decentralized, as most producers were marginal farmers
who could deliver, at most, 12 litres of milk per day. Cooperatives were formed for each
village, too.

The cooperative was further developed and managed by Dr.Verghese Kurien with H.M. Dalaya.
Dalaya's innovation of making skim milk powder from buffalo milk (for the first time in the
world) and a little later, with Kurien's help, making it on a commercial scale, led to the first
modern dairy of the cooperative at Anand, which would compete against established players in
the market. Kurien's brother-in-law K.M. Philip sensitized Kurien to the needs of attending to the
finer points of marketing, including the creation and popularization of a brand. This led to the
search for an attractive brand name. In a brainstorming session, a chemist who worked in the
dairy laboratory suggested Amul, which came from the Sanskrit word "amulya", which means
"priceless" and "denoted and symbolised the pride of swadeshi production."

In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.
 RETENTION STRATEGIES

The strategic decisions taken by AMUL for retention and induction of customers can be
classified in thefollowing broad categories:

1. Technology

2. Pricing

3. Quality

4. Product Portfolio

5. Distribution Network

1. Technology Strategy:

The technology, packaging and Amuls approach to marketing is based on the

changing taste buds of the consumers. The technology strategy is characterized by
four distinct components:
e-commerce
complementary assets to enhance milk production
process technology
new products

Few dairies of the world have the wide variety of products produced by the
Gujarat Cooperative Milk and Marketing Federation (GCMMF) network. Village
societies are encouraged through subsidies to install chilling units. Automation in
processing and packaging areas is common, as is Hazard Analysis Critical Control
Point (HACCP) certification.
 Amul actively pursues developments in embryo transfer and cattle breeding in
order to improve cattle quality and increase in milk yields.

GCMMF was one of the first FMCG (fast-moving consumer goods) firms in India
to employ Internet technologies to implement business to consumer (B2C)
commerce. Today customers can order a variety of products through the Internet
and be assured of timely delivery with cash payment upon receipt.

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 has better access to information on the output as well as support
services while providing a better planning tool to marketing personnel.

2. Pricing Strategy: 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.

3. Quality: Amul has not changed its core values give the best quality product to the
customer.

A key source of competitive advantage has been the enterprises ability to

continuously implement best practices across all elements of the network: the
federation, the unions, the village societies and the distribution channel (TQM
activities).
 A regular Friday meeting is conducted that 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 implementation of Just-in-Time in finance to
reduce the float

Kaizen at the unions have helped improve the quality of milk in terms of acidity
and sour milk. (Undertaken by multi-disciplined teams, Kaizen are highly focused
projects, reliant on a structured approach based on data gathering and analysis.)
For example, Sabar Unions records show a reduction from 2.0% to 0.5% in the
amount of sour milk/curd received at the union.

4. Enhance Product Portfolio: Amuls strategy of umbrella branding has also helped
establish its brand firmly in peoples minds. 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.

5. 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 GCMMFs 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.
 RECRUITMENT

There are two types of recruitment sources:

1. INTERNAL SOURCES : : Internal sources include personnel already on the payroll of the
organization.

i. Former Employee
ii. Employee Referrals
iii. Present Permanent Employees.

2. EXTERNAL SOURCES: These sources lie outside the organization. In Amul they consider
following sources for recruitment:

i. Unsolicited Application
ii. Campus Interview
iii. Placement Agencies
iv. Application Blank

RECRUTMENT POLICY OF AMUL

Entry level qualification :-

Below officers cadres :-

1. S.S.C / H,S.C Attendant Operator Dairy (AOD) G Gr.Worker Taken as apprentice under
trade apprentice Act 1961 2/3 yrs Apprenticeship, then based on their appraisal report, selected
as temporary worker. After total 5 yrs of work ,may be selected as G-Grade Worker.

2. Professional Qualification E/F Grade Worker (Boiler Attendant)

3. BA / B.COM / M.COM / M.A (general) MSW / MRM /MRS M.E_Biz of Gujarat Vidyapeeth
and C Grade Worker similar non University Institutions.

4. B.Sc / M.Sc / Diploma Engineers B Grade Workers. Apprenticesship Lab assistant for 1yr 3
months for B.SC Application Blank & M.SC ;1yr for Diploma Engg. Then 2/3 yrs as trainee
technician, then based on appraisal Appointed as Technician B Grade.

5. BBA Management Trainee for 1yrs .Jr. Assistant

(a) M.SC ( Agriculture ) /MRS /MRM /MSW /MLW/ MBA/ B.Tech (DT ) / MCA / M.E Biz. (
From recognized University ) 1 yr as a trainee then appointed as senior officer.

(b) Inter CA /Inter ICWA / BE 1 yr as training period, then appointed as Dy. Sup. Deputy
Superintendent

(c) CA/ICWA Superintendent NO training period, direct appointment. However, in case of fresh
recruitment of candidates with exceptional qualificational form reputed Institutions such as
IIM/IIT/IRMA o Central Institution, consideration for appointment to Higher Grade be given due
weightage, not withstanding the above minimal requirements.
 SELECTION

Selection procedure is concerned with securing relevant information about the applicant. The
main objective of selection process is to determine whether an applicant meets the qualification
for a specific job and choose the application that is most likely to perform well in the job. The
Selection process in AMUL is as under

Vacancy in any department

Approval from MD

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Collection of Application

Securitize of Application

Interview

Medical Checkups

Selection
After selection, the employees generally have probation period. In AMUL probation period is
different for different type of employees. Probation period for officers is 12 months, 6 months
for clerical employees and 3 month for workers.
 DEVELOPMENT

It is a subsystem of an organization. It ensures that randomness is reduced and learning or

behavioral change takes place in structured format. Various development programmes are:

VMS Workshops: This programme aims at to create a document on Vision, Mission and
Strategy for Village Dairy Co-operative Societies. This process has helped to involve and
develop dairy farmers for their future planning and review of the growth thereby improve their
income and quality of life.

Milk Day Celebration: This programme aims at bringing together all members, including
Chairman, Management Committee Members and respective producer members of Dairy Co-
operative Societies to identify and solve their problems. This programme is attended by the
respective Board of Director and Chairman from the District Union, Internal Consultant of Co-
operative Department of District Union.

Amul Darshan: This programme aims at exposing producer members to various facets of dairy
operations to keep them informed and aware of the development and adopt to good management
practices in production of milk. The exposure visits include visit to Cattle Feed Plant, Dairy
Plant, Chocolate Plant, Dairy Demonstration Farm and presentation by the Co-operative
Development Group.

Management Development Programme: This programme aims at capacity building of

Secretaries of Dairy Co-operative Societies in better management and maintenance of ISO
standards. For the Management Committee Members it imparts training on management
strategies, co-operative laws and their roles and responsibilities.

Zonal Meeting: This programme aims at review of internal audit on Quality Management
System and Cleanliness of Dairy Co-operative Societies for continuous improvement. This helps
in knowing achievements and identifying grey areas for improvement.
Village Group Discussion: It aims at encouraging discussion among dairy farmers on scientific
animal husbandry practices and its application. The discussions are facilitated by the Internal
Consultant of District Union.

Awareness and Refreshers Training: It aims at training of Dairy Co-operative Society

personnel on Quality Management System in order that the ISO is effectively followed.

Dairymen Training: This programme aims at building managerial skills of progressive farmers
who have more than five milch animals to bring more success in their dairy husbandry.

Development Review: This programme aims at District Unions review of the comparative
progress of five year programme of Dairy Co-operative Societies and suggests remedial
measures.
Self Managing Leadership Programme: Amul undertakes Self Managing Leadership
Programme for women resource persons through Brahmakumari Iswariya Vishwa Vidyalaya at
Mt. Abu to bring a value based approach in development process.

Amul Patrika: It is an in-house Newsletter distributed monthly to producer members to

strengthen their knowledge on scientific animal husbandry practices, quality of milk and sharing
success stories.
 TRAINING

Training is the process where the work related knowledge, skills and attitude are given to new
employees. By which they aware the policies rules and increase technical and manual efficiency
and create of responsibility.

TRAINING PROCEDURE IN AMUL

Identification of need of Training

Module Preparation

Selection of Employee for the Training

Training

Feedback

AMUL HAS ACCEPTED THE 3 METODS OF TRAINING:

1. On the job method
2. Off the job method
3. In house training
4 out house training
 PERFORMANCE APPRAISAL

Performance appraisal is the process of evaluating the performance and qualification of

employees in terms of the requirement of the jobs for which they are employed. It is highly
useful in making decision regarding the promotion, transfer, wage and salary administration etc.

The AMUL adopts the following appraisal system:

Promotion Period Appraisal For

1 year Managers
3 years Officers
1 year Workers
1.5 year Temporary workers

Final confirmation with the recommendation by the divisional heads comes from the MD on
annual basis. His work is evaluated by Check list Method of Performance Appraisal. These are a
various method used to appraise the performance of an employee.

In Amul the following methods are used:

1. Self appraisal: If individuals understand the objectives they are expected to achieve 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 himself.

2. Managers Appraisal: The general practice is superiors appraise the performance of their
subordinate. Other supervisors, who have close contact with employees work may also appraise
with a view to provide additional information.

A higher level manager appraise the employees 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 records

Seniority

This appraisal is also the rating scale. Method appraiser also appraised employee by following:

Satisfactory

Good

Outstanding

Poor

The overall assessment is done through above rating and also the comment of reviewing officer
is included. Apart form this the performance in liked allowance is provided in relation with
performance that is,
 25%

50%

100%

Not allowed

This is provided by and under knowledge of under Managing Director Generally in Amul on
base of performance appraisal employee of managerial level gets specials allowance. While for
workers they get promotions.
 WAGES AND SALARY

A common method is followed for the wage and salary administration according to
Muster roll.
Timekeeper sends that muster roll to the account department for attendance of each and
every employee. This will analyze and entered in the computer.
After this salary is calculated for each employee through computer according to that they
prepare salary sleep of employees.

WAGE STRUCTURE (Approx)

POST GRADE PAYSCALE

Managing Director Manager 21000-28000
General Manager Manager 15000 -21000
Assistant General Manager Manager 7000-15000
Assistant Clerical 2500-7500
Senior clerk Worker 2000-5000