Nikhil MMS SEM 4 1st
Nikhil MMS SEM 4 1st
project on
“A STUDY ON CSR OF AMUL”
Submitted in partial fulfilment for the award of the degree of
Master of Management Studies (MMS)
(under University of Mumbai)
Submitted By
STUDENT NAME: Nikhil Laxman Engole
(Roll No: M222411)
SPECIALIZATION
Under The Guidance of
DR/PROF - AVISHEK RAY
ACKNOWLEDGEMENT
Through this acknowledgement I express my sincere gratitude
towards all those people who
helped me in this project, which has been a learning experience.
This space wouldn't be enough to extend my warm gratitude
towards my project guide RIYA RUPANI
for her efforts in coordinating with my work and guiding in right
direction.
I escalate a heartfelt regard to our Institution HOD for giving me the
essential hand in concluding
this work.
It would be injustice to proceed without acknowledging those vital
supports I received from my
beloved classmates and friends, without whom I would have been
half done.
I also use this space to offer my sincere love to my mother and sister
and all others who had
been there, helping me walk through this work.
Nikhil Laxman Engole
CERTIFICATE
This is to certify that project titled “A STUDY ON CSR OF AMUL”
successfully completed by Mr./Ms. Nikhil Laxman Engole
pursuing the IV Semester, in partial fulfilment of the Master's Degree
in Management Studies Recognized by the University of Mumbai for
the academic year 2023-24 through KC COLLEGE OF ENGINEERING
MANAGEMENT STUDIES KC COLLEGE ६ RESEARCH
This project work is original and not submitted earlier for the award
of any degree / diploma or associateship of any other University /
Institution.
Name: Nikhil Laxman Engole
Date: 1 may 2024
(Signature of the Guide)
EXECUTIVE SUMMARY
Although the contemporary CSR agenda is maturing, the term “CSR” has not
yet taken hold within many public sector agencies, either in industrial or
developing countries. Few government initiatives have been undertaken
explicitly as “pro-CSR initiatives” but nonetheless many have contributed
effectively to the promotion of greater social responsibility.
CHAPTER 1: -INTRODUCTION
TO THE TOPIC
designed to increase its profit so long as it stays will the rules of the game,
which is to say, engages in open and free competition, without deception or
fraud.” [Milton The difference is that ethics concern individual actions which
can be assessed as right or wrong by reference to moral principles. CSR is
about the organisation’s obligations to all stakeholders – and not just
shareholders.
And there are people who would argue that it is not the job of business
organisations to be concerned about social issues and problems There
are two schools of thought on this issue:
▪ In the free market view, the job of business is to create wealth with the
interests of the shareholders as the guiding principle
▪ The corporate social responsibility view is that business organisation
should be concerned with social issues
The scope of the study on which this article reports is to study the various
Corporate social responsibility activities carried out by AMUL and what is it’s
impact towards society and others.
CHAPTER 2: - INTRODUCTION
TO THE COMPANY
INTRODUCTION OF INDUSTRY
In the recent time the market sentiments has completely changed and it has
become completely a buyer market. In the F.M.C.G. sector especially there is a
lot stress on who provides better services and of course at a better price.
Since Indian Market is perhaps very much price conscious market in the world.
In the ice-cream sector there are many players that are increasing their market
share by boosting their sale and try to get more popular among consumers.
Since ice-cream sector is a seasonal business, in this short period of time every
player want to earn more profit. The present era is an era of “BRAND
MARKETING” can be compared to the game of chess.
• Inspired by the freedom movement The seeds of this unusual saga were sown
more than 65 years back in Anand, a small town in the state of Gujarat in
western India. The exploitative trade practices followed by the local trade
cartel triggered off the cooperative movement. Angered by unfair and
He advised them to get rid of middlemen and form their own co-operative,
which would have procurement, processing and marketing under their control.
In 1946, the farmers of this area went on a milk strike refusing to be cowed
down by the cartel. Under the inspiration of Sardar Patel, and the guidance of
leaders like Morarji Desai and Tribhuvandas Patel, they formed their own
cooperative in 1946. This co-operative, the Kaira District Co-operative Milk
Producers Union Ltd. began with just two village dairy co-operative societies
and 247 litres of milk and is today better known as Amul Dairy. Amul grew
from strength to strength thanks to the inspired leadership of Tribhuvandas
Patel, the founder Chairman and the 2 committed professionalism of Dr
Verghese Kurien,who was entrusted the task of running the dairy from 1950.
The then Prime Minister of India, Lal Bahadur Shastri decided that the same
approach should become the basis of a National Dairy Development policy.
He understood that the success of Amul could be attributed to four important
factors. The farmers owned the dairy, their elected representatives managed the
village societies and the district union, they employed professionals to operate
the dairy and manage its business. Most importantly, the co-operatives were
sensitive to the needs of farmers and responsive to their demands.
At his instance in 1965 the National Dairy Development Board was set up with
the basic objective of replicating the Amul model.
Dr. Kurien was chosen to head the institution as its Chairman and asked to
replicate this model throughout the country. The Amul Model The Amul Model
of dairy development is a three-tiered structure with the dairy cooperative
societies at the village level federated under a milk union at the district level
and a federation of member unions at the state level.
The Amul model has helped India to emerge as the largest milk producer in the
world. More than 13 million milk producers pour their milk in 1,28,799 dairy
cooperative societies across the country. Their milk is processed in 176 District
Co-operative Unions and marketed by 22 State Marketing Federations, ensuring
a better life for millions.
The future of Indian dairying depends upon how rapidly dairy cooperatives are
enabled to function as genuine member-owned and controlled business
enterprises. Therefore, the main challenge before dairy cooperatives is to be
able to quickly adapt to a rapidly changing domestic and world economic order,
and with the WTO in place, not only hold .
Its own in this country but becomes a regional force! Faced with this challenge,
NDDB has proactively rethought the strategy of providing a competitive
advantage to the Indian farmer, by focusing on strengthening the Marketing,
Sales and Distribution of the dairy sector in India and Amul has been identified
as the vehicle for driving and realizing this strategy.
The strategy is being operationalized through the formation of joint ventures
between Amul and the State co-operative federations. The joint venture
companies would take on the responsibility of driving the ongoing business of
marketing, sale and distribution of the State federation in a more organized,
professional and efficient manner.
In addition to this, the existing structure of Amul group has been further 6
restructured to form entities that would exclusively focus on providing effective
management support to the joint venture companies and on expanding the sales
and distribution of select Amul products at a national level.
With these changes, Amul is all set to emerge as one of the largest food and
dairy products company in the country in the next few years. The overall
approach not only provides the freedom to appoint the requisite professional
talent in key positions and to take decisions with the flexibility and speed that is
required in an increasingly competitive market, but also helps to introduce
elected leaders to the processes of better planning and management.
Thus, as the identified change agent for bringing about transformation in the
dairy co-operative sector across the country has a tremendously challenging
responsibility on its shoulders- considering the complexities of regional and
cultural diversity in the country, the magnitude of the change to be managed
and the profile of stakeholders who are going to be impacted by this initiative
(ranging from the farmers at the grassroots level, the unions at the district level,
state run bodies at the federation level to the new age professionals 7 managing
the change initiative). Amul is geared up to meet this challenge, with its entire
infrastructure, technological and people resources focused on this single point
objective.
AMUL is a three tier co-operative organisation. 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 cooperatives in
villages of Gujarat. The second tier is the district co-operative that processes milk
into milk products, markets locally and sells surplus to the state co-operative for
national and international marketing. There are 12 district co-operatives each
being managed by a 15-member board elected by the college comprising the
nominated representatives or chairmen of the village cooperatives.
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. Since men are the basis for
achieving the CSR, the GCMMF lays emphasis on their development into
competent, courteous, credible, reliable, responsive communicators and
performers.
realisation of value for their produce. Invariably the price paid to the member-
producers in Gujarat is higher by 15 per cent than the national average.
The GCMMF has identified the distributors and retailers are its important link
in its vendor supply chain. Through surveys the GCMMF found that 90% of the
distributors do not get any opportunity of exposure to latest management
practices. The GCMMF realised that it was a corporate social responsibility to
strengthen the core business process of its distributors so as to keep them in
mainstream business and compete with those with formal training in
management. The GCMMF has developed and trained all its distributors through
Value-Mission-Strategy Workshops, competence building, Amul Yatra, Amul
Quality Circle meetings, computerisation, and electronic commerce activities.
Competency Building Module of the GCMMF is meant to infuse professional
selling skills by making the distributors and their salesmen aware of latest sales
management tools and techniques; enhance their knowledge of products;
positioning and segmentation strategies for various products. Under Amul Yatra
the distributors and their salesmen are taken on a visit to Anand. During this visit
they are shown dairy plants, their upkeep, international standards of hygiene and
quality; the practices adopted for clean milk production, and above all the
cooperative philosophy.
Through one to one talk with the farmers, the distributors and salesmen realise
AMUL is a large business of small farmers. The visit leaves an everlasting
impression on their minds that by selling AMUL products, they are discharging
a social responsibility towards a large number of poor farmers whose livelihood
depends upon their skill and integrity. They feel proud that they are participants
in development of rural society and thus in nation building
The net profit (PADT) of the GCMMF during 2003-04 was Rs 7.31 crore against
a turnover of Rs 2,947 crore, a meagre 0.25%. Further out of the net profit of Rs
7.31 crore, Rs 4 crore was given as share dividend to the cooperatives. To fulfil
its corporate social responsibility towards its milk producers and cooperatives
the GCMMF works on razor thin profits and retention of funds.
4) CSR-oriented To Staff
The GCMMF hires and trains people to take advantage over its competitors. It
has developed inhouse modules for training and competence building to improve
and upgrade of their knowledge; communication skills to understand the
customer, be responsive to customer requirements, and communicate clearly for
trouble shooting of problems. They are expected to be courteous, friendly,
respectful, and considerate to the customer. To improve the credibility and
trustworthiness of the managers it is important they perform consistently and
accurately every time and at all times. The structure of salary and perquisites is
altogether different.
The first and foremost the staff must get satisfaction from the job they. They are
recognised for their contribution (Climate Survey) CSR-AMUL WAY
The unique fact about the programme was that the milk producer members took
up the oath to protect tree saplings till it survives and grows into tree. Over the
years, due to intensive agriculture and dairying various natural resources are
getting consumed at faster pace in Gujarat state of India. The state level apex
body of dairy farmers in Gujarat gave a serious thought in this direction and
discovered a novel idea for giving back to nature. The idea was "one member one
tree" plantation on our 60th Independence day - 15th August 2007.To put this
idea in to the practice a design team constituting of representatives of member
unions were formed.
The team accepted the idea by heart and immediately decided to spread it among
farmer members of village dairy cooperative societies. Then the idea was
communicated to farmer members and they all welcomed it and enthusiastically
agreed to implement the idea. For smooth implementation of the idea, the design
team chalked out the road map for various activities.
Execution teams were formed at district union level to give final shape and put
the plan in action. Village level coordinators were identified and they were
trained to streamline activity of tree plantation. Various awareness materials were
prepared. Through various communication media farmer members were made
aware of benefits of tree plantation and tree plantation activity schedule The
entire plantation activity was coordinated at all the three tiers of Anand pattern -
at village, district and state level dairy cooperatives.
On 15th August, 2007, after the flag hoisting ceremony, each member took an
oath to plant saplings and ensure that they grew in to trees. Then individually
they planted sapling on their own at their identified locations like their farm, near
their home, on Farm bunds, etc. They have taken necessary care to ensure that
this sapling survives and they also reported regarding the survival to village level
coordinator and district milk unions after five months. In this way, 18.9 lakh trees
were planted on 15th August 2007.
This was just the beginning. Henceforth, the Village Dairy 6 | P a g e Cooperative
Societies of Gujarat as a mark of respect for our nation decided to conduct such
event on every Independence Day and accepted 15th August (Independence Day)
as a "Green Revolution Day by Afforestation to Protect Mother Earth from
Pollution, Climate change and Global Warming".
But all this required immaculate planning and execution. An action plan of tree
plantation programme was drawn up months back in advance. After the
identification of the chief coordinator for each district milk union, the
organization of a task force for the programme was put in place. Roles and
responsibilities were assigned to each member and area of operation allocated.
After preparing the overall action plan, each union issued a circular to the Dairy
Cooperative Societies regarding the programme and arranged meetings with the
societies covered.
The coordinator at Milk Union level chalked out overall action plan for the
programme and assigned roles and responsibilities and area of operation to each
member of task force. Milk Unions (MUs) issued circular to their respective
VDCSs (Village Dairy Cooperative Societies) mentioning the entire activity and
procedure planned for the celebration of the programme. In circular details for
milk producer members to make necessary preparations like deciding the place,
digging the pit, taking care of saplings etc. well in advance were also provided.
The circular was placed on notice board of VDCSs. MUs task force members
contacted & communicated about the concept to VDCS and identified the village
level coordinator and assigned them roles and responsibilities. 7 | P a g e MUs
Coordinator properly explored and communicated the saplings acquiring
sources/nursery details to VDCSs.
They also ensured that saplings reach the VDCSs before 3 days. A press note
was prepared by the coordinator of the programme at MU level and which were
given in the newspapers on a day before tree plantation to boost morale of
producer members and mentally prepare them for the execution of programme
on next day. At time of handing over the saplings to members from VDCS, the
producer members took oath to protect the saplings and accepted the
responsibility for successfully growing the sapling into tree. On 15th August,
after the milk collection process, at a predecided time sirens at VDCSs were
sounded or other means like beating Thali/utensil, loudspeaker etc. were used to
facilitate the gathering producer members in time at predecided place in the
village for celebration of Independence Day in VDCS premises, common plot,
school etc.
After flag hoisting ceremony, the tree plantation activity was executed by the
producer members. In many villages the milk producer members planted the trees
after performing the Puja (worship) of saplings before planting them. To add
fervour and enthusiasm in the programme at many places the Chairman,
Managing Director and Board of Directors of Member Unions participated in the
programme. Next day after the programme on a post programme press note was
prepared giving details of the programme celebrations along with photographs.
Similar such notes were published in house magazines/ newsletters. After the
completion of the programme the MU's were asked to submit the report on tree
plantation activity. MUs conducted survey after 5 months to find out the survival
rate of sapling under the programme.
First tree plantation programme (15th August, 2007) was carried out on "one
member, One tree" basis. Second tree plantation programme (15th August,
2008) in which around 52.74 lakhs tree were planted was conducted on "one
member three tree" basis. In year 2009 and in year 2010, in mass tree plantation
programme around 84.24 and 83.5 lakhs tree saplings were planted respectively.
The programme was conducted on "One member, five tree" basis. Further, this
year 2011 around 72.6 lakhs trees were planted, the programme was carried out
as per the same process and procedures followed in last year. Hence, in last five
years, milk producers of GCMMF planted around 311.98 lakhs tree saplings in
21 districts of Gujarat. By doing so, milk producers 8 | P a g e of Gujarat Dairy
Cooperatives have shown their concern, awareness and commitment for
betterment of environment. Year wise details of tree plantation and survival of
tree saplings planted is as under.
Sr. NoYear of tree plantation No. of trees planted (in lakhs)No. of trees Survived
(in lakhs) Survival percentage 1 2007 18.9011 58 2 2008 52.7426 49 3 2009
84.2438 45 4 2010 83.5 39 47 5 2011* 72.6 34 47 Total 311.98 148.122 47
*estimated (as survey for survival percentage of the saplings planted in year 2010
is ongoing) According to statistics of Forest Survey of India considering on an
average 30-40 cm diameter of these trees, 106 trees would provide one hectare
of green tree cover. Considering 47% survivability of planted trees (based on post
plantation survey data, around 148.12 lakhs out of 311.98 lakhs tree planted
survived during last five years), when they fully grow up, would provide
additional 1,39,735 ha. of green cover which is additional 6.41 percent forest
cover of Gujarat State of India.
Achievements: This effort to provide green cover to the earth was also
acknowledged when the state level apex body of Gujarat Dairy Cooperatives
GCMMF received four successive prestigious "SRISHTI's G-Cube Award"2007,
2008, 2009 and 2010 for Good Green Governance in the "Service Category".
Further, "Amul Green" movement has also been awarded by International Dairy
Federation for best environment initiative in the "sustainability category" during
the 4th Global Dairy Conference held at Salzburg Congress Center, Austria on
28th April, 2010. It has been estimated that when one tree is cut, in monetary
terms there is loss or Rs. 33 lakhs (Oxygen worth of Rs. 5.3 lakhs, Land Fertility
of Rs. 6.4 lakhs, Rs. 10.5 lakh for reduction of pollution of atmosphere and Rs.
5.3 lakh towards Flowers / Fruits and habitation to birds animals). But the
benefits that accrue to mankind when a tree is planted cannot be measured in
money and is priceless. 9 | P a g e The producer members of GCMMF have really
set an example for all the cooperatives and other institutions to turn India green
in the era of Global warming and environmental crisis. When 3 million dairy
farmers of Gujarat have planted more than 311.98 lakh trees in just five years and
are planning to plant more trees every year, they are doing an invaluable - truly
Amul - service to the society.
SWOT ANALYSIS
STRENGTH
Amul is a famous and old brand and its products are preferable by all over India.
It has Brand Equity. • Quality of Amul is high class and each product is made
from best resources. Amul is a symbol of a proven model for dairy products. •
Amul ice-cream is very cheap to the competitor.
OPPORTUNITIES • Amul has great market potential in the near future because
of its brand name, quality and its capability to supply uninterrupted ice-cream. •
Demand could be increased by improving quality and providing supply in the
evening and also improving the service in morning. • Advertisements are required
to create awareness about Amul ice-cream
. THREATS • The biggest threat is its biggest competitor, Mother Dairy, which
has a good market share and also famous among local retailers and consumers,
being a local brand. There is also the threat of upcoming competitor kawlity
walls.
CHAPTER 3: - RESEARCH
METHODOLOGY
3.1 RESEARCH DESIGN
Definition: -
In preparing the project the information collected from the following sources.
➢ Secondary Data :
Secondary data are data that were collected for another purpose and already
exist somewhere.
SUGGESTION
Maintain the quality as Amul has been providing to the customer. The quality
should be sustainable so that people get the better quality and service.
• Amul has good quality comparatively to Mother Dairy, but itsservice is not
satisfactory. Service is mostly not on time in evening.
of the company. According to them they are not getting timely replacement
which decrease their fate on the company. Due to fear of malting they do not
store it.
• And because of this reason the retailers take limited icecream so that they
could sell it in the night only. So provide timely replacement we can motivate
them to stock the ice cream in bulk which can be use when supply will be
late. Mostly distributor use 2-3 people for these type of work which is not
sufficient for such kind of work.
CONCLUSION
From the above research it can be concluded that amul is a biggest brand in
ice-cream since its inception in 2010 due to its CSR and marketing strategies in
rural and urban sectors.