A

MAJOR PROJECT REPORT

ON

“A COMPREHENSIVE STUDY OF AMUL – TASTE

OF INDIA”

In Partial fulfillment of
Requirements for the award degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)

Of
Dr. B.A.M. University, Aurangabad
Submitted By

Mr. Ashish Pradip Wankhede

MBA 4th Semester

Under the guidance of

Prof. Kirti Kadam

MSS’s
College of Engineering & Technology
Department of Management- II shift
Nagewadi, Jalna.

1
 DECLARATION

I,undersigned,hereby declare that the project report, “A COMPREHENSIVE STUDY

OF AMUL – TASTE OF INDIA”submitted by to the MSS’s College of Engineering

and Technology, Jalna. It is my original work & the conclusions drawn there in are based

on the data & material collected by myself.

Jalna

Date:- Name:- Mr. Ashish Pradip Wankhede

2
 CERTIFICATE

This is to certify that the project report on “A COMPREHENSIVE STUDY

OFAMUL – TASTE OF INDIA” submitted by Ashish Pradip Wankhede is the
result of his original research work completed under our supervision. To the best of
our knowledge & belief the work embodied in this project report has not formed
earlier the basis for the award of any degree or similar title of this for any other
examining body.

Project guide H.O.D. Principal

Prof. Kirti Kadam Prof. M.Irfan Dr.S.K.BIRADAR

3
 ACKNOWLEDGMENT

A Good start leads to a Fine end. The ideal way to begin documenting this project work
would be to extend my earnest gratitude to everyone who has encouraged, motivated and
guided me to make a fine effort for successful completion of this project.
I am very thankful to faculty of business management for guiding me throughoutthe
project. My sincere Gratitude to the College Management for extending theirco-
operation for successful completion of my project. A final word of thanks goes to my
Parents, Friends and everyone else who made this project possible. Your contributions
have been most appreciated.

4
 INDEX

Sr.No. CONTENT Page

No.
1 Introduction 6
2 Range Of Products 7
3 Story Of Amul 10
4 Amul Products 16
5 Hr policies in amul – taste of india 31
6 TQM Conducted By Amul Company 39
7 Amul Yatra 42

8 Marketing And Sales Promotion 43

Strategy

9 Amul And Competition 52

10 Exports 56

11 Conclusion 64

12 Bibliography 65

5
 INTRODUCTION:-

Amul began the dairy cooperative movement in India and formed an apex cooperative
organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today
is jointly owned by some 2.2 million milk producers in Gujarat, India. Amul was formally
registered on December 14, 1946. The brand name Amul, sourced from the Sanskrit word
Amoolya, means priceless. It was suggested by a quality control expert in Anand. Some cite
the origin as an acronym to (Anand Milk Union Limited).The Amul revolution was started as
awareness among the farmers. It grew and matured into a protest movement that was
channeled towards economic prosperity.

ORGANISATION:-

Amul is a dairy cooperative movement in India. It is a brand name managed

by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd.
(GCMMF), which today is jointly owned by some 2.41 million milk producers in Gujarat,
India. It is based in Anand town of Gujarat and has been a sterling example of a co-operative
organization's success in the long term. The Amul Pattern has established itself as a uniquely
appropriate model for rural development. Amul has spurred the White Revolution of India,
which has made India one of the largest milk producers in the world. It is also the world's
biggest vegetarian cheese brand. Success of Kaira District Co-operative Milk Producers'
Union Limited and setting up of District Co-operative Milk Producers' Unions needed a
state-level organization for entire Gujarat. That leads to creation of Gujarat Cooperative Milk
Marketing Federation (GCMMF).

6
 RANGE OF PRODUCTS:-

Amul's product range includes milk powders, milk, butter, ghee, cheese,
chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and
others. . Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul
Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya In January
2006, Amul plans to launch India's first sports drink Stamina, which will be competing with
Coca Cola's Powerade and PepsiCo's Gatorade.

COMPETITION AND EXPORT:-

In January 2006, Amul plans to launch India's first sports drink Stamina, which
will be competing with Coca Cola's Powerade and PepsiCo's Gatorade Amul is the largest
food brand in India with an annual turnover of US $868 million (2005-06). Currently Amul
has 2.41 million producer members with milk collection average of
5.08 million litres/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. V.KURIEN – THE KEY PERSON

Dr Verghese Kurien, the chairman of the GCMMF, is recognized as the man

behind the success of Amul. The primary goal of Dr.
V. Kurien, Chairman GCMMF, the "Milk Man of India", has been to build a strong Indian
society economically through an innovative cooperative network, to provide quality service
and products to end-consumers and good returns to the farmer members. Dr. Kurien states,
"We have traversed a path that few have dared to.

7
 REVOLUTIONARY WORK:-

In 1996 Amul was one of the first major organizations in India to have a
website. This site has been used both to develop an intranet of Amul distributors as well as a
cyber-store for consumers, one of the first examples of e-commerce activity in India. The
CEO of Amul, Mr. B M Vyas, recently said, "Amul is not a food company, it is an IT
company in the food business". He was recognizing that the most efficient way of building
links between milk producers and consumers so as to provide the best returns for both is
through IT innovation.
Amul has been able to withstand the onslaught of private and foreign players
in the dairy industry and has also been able to export products in limited quantities. The
success of Amul resulted in similar organizations being setup by state governments
throughout India, most of which had reasonable success. Examples are Vijaya in Andhra
Pradesh, Aavin in Tamil Nadu and others.

SITUATION OF FARMERS:-

Over five decades ago, the life of an average farmer in Kheda District was
very much like that of his/her counterpart anywhere else in India. His/her income was
derived almost entirely from seasonal crops. The income from milk buffaloes was
undependable. Private traders and middlemen controlled the marketing and distribution
system for the milk. As milk is perishable, farmers were compelled to sell it for whatever they
were offered. Often, they had to sell cream andghee at throw-away prices. In this situation, the
private trader made a killing.

8
 KAIRA DISTRICT CO-OPERATIVE MILK
PRODUCERS UNION:-

The Kaira District Co-operative Milk Producers' Union Limited began

pasteurizing milk for the Bombay Milk Scheme in June 1948. By the end of 1948, more than
400 farmers joined in more Village Society, and the quantity of milk handled by one Union
increased from 250 to 5,000 liters a day. The success of Amulwas instrumental in launching
the White Revolution that resulted in increased milk production in India. It is officially
termed as Operation Flood by Amul. The breakthrough technology of spray-drying and
processing buffalo milk, developed by Mr. H.M. Dalaya, was one of the key factors that
contributed to the Revolution.

9
 EXTRA ORDINARY STORY OF AMUL

Every day Amul collects 447,000 litres of milk from 2.12 million farmers
(many illiterate), converts the milk into branded, packaged products, and delivers goods
worth Rs 6 crore (Rs 60 million) to over 500,000 retail outlets across the country. Its supply
chain is easily one of the most complicated in the world. If weare visit to any Amul or Gujarat
Cooperative Milk Marketing Federation (GCMMF) office a photograph of Mahatma Gandhi
will be missing but we can certainly see one particular photograph showing a long line of
Gujarati women waiting patiently for a union truck to come and collect the milk they have
brought in shining brass matkas.This makes the farmers or the member of the organization of
the organization how to prevent the milk from souring. Hence, Amul takes various initiatives
to make the farmer or the producer understand how to provide service to the consumers with
the only resource available with them i.e. milk a perishable one. The prominent display of
picture states the message” NEVER FORGET YOUR CUSTOMER. IF YOU DON’T
SUCCESS IS CERTAIN”

At the time Amul was formed, consumers had limited purchasing power, and
modest consumption levels of milk and other dairy products. Being a co- operative
organization Amul adopted a low-cost price strategy to make its products affordable and
attractive to consumers by guaranteeing them value for money. Amul also introduced higher
value products. Beginning with liquid milk, Amul 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, Nestle and Britannia, 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.

10
 GUJARAT CO-OPERATIVE MILK MARKETING

FEDERATION(GCMMF)

Introduction:-

A group of farmers keen to free themselves from intermediaries and to gain

access to markets and to utilize the benefit for their efforts came together in 1946 and formed
the Gujarat Cooperative Milk Marketing Federation. The organization is situated in the
village of Anand, the Kaira District Milk Cooperative Union (better known as Amul) which
has now been expanded exponentially. GCMMF 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) all under the overall supervision of
GCMMF. The GCMMF is been particularly been recognized for the beneficiary of the
farmers. The organization mainly helped to transform the small farmers and contribute
mainly for the development of the 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 identified that are:

1. Sustained growth for the long term would depend on matching or maintained balance between
supply and demand. It would need heavy investment in the simultaneous development of
suppliers and consumers. Effective management of the network and commercial viability would
require professional managers and technocrats.
2. To implement their vision while retaining their focus on farmers, a hierarchical network of
cooperatives was developed, this today forms the strong and healthy supply chain behind
GCMMF’s endeavors. The vast and complex supply chain stretches from small suppliers to large
fragmented markets.

11
 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.

GCMMF: AN OVERVIEW

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest

food products marketing organization. It is a state level apex body of milk cooperatives in
Gujarat which aims to provide remunerative returns to the farmers and also serve the interest
of consumers by providing quality products which are good value for money. The table
mentioned drawn below makes us understand about the members in the GCMMF
organization, village societies, milk handling capacity and various processes related with the
collection capacity

Members: 12 district cooperative milk producers'Union

2.5 million

No. of Producer 11,962

Members: No. of Village 9.91 million litres per day

Societies: Total Milk 2.28 billion litres

handling capacity: 6.3 million litre

Milk collection (Total - 2005-

06):

12
 GCMMF :- CURRENT SCENARIO

GCMMF is India's largest food products marketing organization. It is a state

level apex body of milk cooperatives in Gujarat, which aims to provide remunerative returns
to the farmers and also serve the interest of consumers by providing quality products, which
are good value for money. GCMMF markets and manages the Amul brand. From mid-1990's
Amul has entered areas not related directly to its core business. Its entry into ice cream was
regarded as successful due to the large market share it was able to capture within a short
period of time - primarily due to the price differential and the brand name. It also entered the
Pizza business, where the base and the recipes were made available to restaurant owners who
could price it as low as 30 rupees per pizza when the other players were charging upwards of
100 rupees.

The sales turnover of the GCMMF from 1994-2006 is been represented below
which helps to get a clear view of the earnings of the company, GCMMF is today nation's
largest food company with an annual turnover exceeding Rs 2300 Crores.

13
 Sales Turnover Rs US $ (in
(million) million)
2005-06 11140 355
2006-07 13790 400
2007-08 15540 450
2008-09 18840 455
2009-10 22192 493
2010-11 22185 493
2011-12 22588 500
2012-13 23365 500
2013-14 27457 575
2014-15 28941 616
2015-16 29225 672
2016-17 37736 850

Innovation at Grass Roots.

One of the members of GCMMF, the Banas dairy, has started a unique
initiative called the Internet Sewa Project in their district called Banaskantha. This isa village-
level effort at bridging the Digital Divide by providing information kiosks at the Village
Cooperative level. Each village has one information kiosk, which is the single point of
contact for Internet and other e-governance activities for the co- operative. Official forms,
Rural Jobs, Veterinary, Agriculture, and Matrimonial details, educational applications and
local market prices with buy & sell options are provided at the information kiosk so that people
do not have to travel all the way to the districtheadquarters for these information.
To improve the farmer members' living standards and to facilitate affordable
Internet access services including VOIP Net telephony, the district union has also become a
local Internet Service Provider (ISP) using these Village Information Kiosks. Today the
services are subsidized but
the goal is for the kiosks to become self-supporting Markets today are poor in
infrastructure.

14
Development and growth could not be left to market forces and that proactive intervention
was required. Two key requirements were identified that are:
Sustained growth for the long term would depend on matching or maintained
balance between supply and demand. It would need heavy investment in the simultaneous
development of suppliers and consumers. 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, this today forms the strong and healthy
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.

AWARENESS CREATED BY GCMMF THROUGH MOVIE-

MANTHAN:-

Manthan relates the story of a young urban group headed by a veterinary

doctor, which is sent by an organization to a poor village in order to help start milk
cooperative.
Manthan has been sponsored by 500,000 farmers of Gujarat, constituents of
the Gujarat Co-operative Milk Marketing Federation. This is the first time in India that a
feature film has been financed by farmers. Several
new trails have been blazed by them; the "Anand Pattern" of dairy development, which
today has been adopted all over the country.

15
 Amul Products:-

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 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. 37.74 billion in 2005-
06). 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' organization. Amul represents a proven model for dairy
development.

Amul Pasteurized Butter

Amul butter is most commonly used in every household. Amul is made from butter common saltand
permitted natural colour. It is been marketed from last from 4 decades. Amul butter composes of fresh
cream, milk fat, moisture, salt as well as curd in specific proportions. Amul isstandardized product and has
BIS specifications. The calorific value is 720 kcal./100g

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AMUL LITE : A Low Fat Low Cholesterol Bread Spread

Unlike Butter & Margarine, Amul Lite is a low-fat, low-calorie & low-
cholesterol bread spread, hence a healthier substitute. It contains 26% less fat and calorie
content as compared to butter or margarine. This product is specifically prepared for diet
considering population. It is considered as healthier substitutes asit contain 26% less fat and
calorie. Helps to maintain slim and trim without sacrificing. Amul lite is suitable for old age
people as the heart disease chances arebeen reduced. It contains Omega-6 and Omega-3. It
helps to maintain healthy andcholesterol levels are kept at minimum. This product is
certified by AGMARK for quality. Tastes best with toast, sandwiches and bread.

17
Amul Spray Infant Milk Food

AMULSPRAY INFANT MILK FOOD is made from partially skimmed

milk, sugar, minerals and vitamins. Amul has introduced various powder milk products the
Amul spray infant milk food is made from partially skimmed milk, sugar, minerals and
vitamins It is composed of milk proteins, fats and carbohydrates. It has various vitamins such
as A,D,K,B,C and various minerals like calcium, magnesium, phosphorous, iron, copper,
iodine. This product is been marketed since 25 years. This product is formulated on
guidelines set by Codex Commission of WHO/ FAO

18
Amul Instant Full Cream Milk Powder:
AMUL INSTANT FULL CREAM MILK POWDER (Spray Dried) is made from Toned Milk, Vitamins A,
and D. It composes of milk fat 26%, protein 26%, carbohydrates 37%, minerals 6%, and minerals 6%,
moisture 3%. This product is highly acceptable product made from the most modern dairy plant through a
special formulation. It meets the requirements laid down under PFA rules for processed Cheese Spread.

19
Amul Emmental Cheese

Amul's Emmental Cheese with holes can be traced back from 1290 AD.
This famous cheese with a Swiss taste owes its name to the Emmental valley, near Berne in Switzerland.
Emmental is actually a `live' cheese, i.e. it has live bacteria, which continue the ripening process, even after
the cheese is packed and placed on the retail shelves. However, it is a 100% vegetarian coagulating enzyme.
The composition of Emmental cheese is of moisture 43%, fat 46% and salt 1.5% this product is to be stored
at ordinary refrigeration temperature i.e. 4 degrees Centigrade to 8 degree Centigrade. Amul Emmental
Cheese is available in a 200 gm pack.

20
AMUL PIZZA CHEESE

Amul, the largest selling brand of Cheese in India, introduced genuine Mozzarella Cheese for the first time.
Amul Pizza Cheese has Moist, Soft, Elastic texture and has a very timely surface sheenand when fresh, it
has a slightly salty blandish taste and pleasant aroma. Because of its stretch ability, i.e. ability to form
strings when hot, this cheese is ideal for preparing Lasagna, Veal Cutlet,Alla Parmagnia and as a topping on
pizzas.. Mozzarella is an excellent source of milk proteins andis palatable to the consumer and institutional
segments. It composes of fat, moisture and salt.

21
 AMUL MALAI PANEER

Technologically, it is equivalent to Cream Cottage Cheese of western products. Amul Malai Paneer is
available in already cut cubes form. The best quality Malai Paneer with quality assurance of Amul is the
only national brand of Paneer available in India since 1997. It is also exported to US, Gulf as well Singapore
& Japan markets regularly.” Richer, Softer, Better" Paneer is made out of fresh milk. Compositions of Amul
Malai Paneer are higher fat content (26-27%) and lower moisture content. This gives Amul Malai Paneer
smooth, uniform texture and softness that most consumers desire. Diced Paneer is available in three pack
sizes viz. 100 g, 200 g & 1 kg pack in heat sealed poly pouches to ensure the best quality.

22
 Amul Pure Ghee

AMUL PURE GHEE is made from Milk Fat. The composition of Amul is milk fat 99.7% and moisture
0.3%. the calorific value 900 kcal/100g. Amul sagar pure ghee is made from fresh cream. It has a typical rich
aroma and granular texture. It is an ethnic product made by dairies with decades of experience being a rich
source of Vitamin A, D, E and K. Meets AGMARK SPECIAL GRADE specification of the AGMARK
scheme (1938) of Govt. of India.

Mithai Mate

AMUL MITHAI MATE SWEETENED CONDENSED MILK is made from Sugar & Milk solids. It
comprises of Sweetened Condensed Milk, Total Milk Solids, Fat, Added Cane Sugar, Partly Skimmed
Sweetened Condensed Milk, Total Milk Solids, Fat, and Added Cane Sugar. It is a free flowing product
and has a pleasant flavour. The product can be used to manufacture Ice Creams,Confectioneries like Toffees,
Biscuits and Sweets. It Meets BIS standards: IS: 1166

23
.
Amul Shrikhand

AMUL SHRIKHAND is made from Chakka, Sugar and flavoring

agents/fruits (Elaichi, Saffron, Mango pulp). It contains fat, milk solids, and mango pulp. The
Shrikhand is most commonly used at festive occasion as a sweet desert. Most processes are
undertaken in order to improve the taste of these Shrikhand andit acts as a auspicious feed
during festivals. Shrikhand is a traditional sweet. It is theonly pasteurized Shrikhand which is
been made from most modern dairy equipment which helps the Shrikhand of an extended
shelf life with smooth texture. The calorific value is 260 kcal./100g. the product meets BIS
specification No.IS:9532- 1980.

24
Amul Masti Dahi

AMUL MASTI DAHI is made from Pasteurized Toned Milk. Amul mast dahi
composes of essential nutrients such as fat 3.5% and SNF 8.5%. This product is available in
packaged form. It is produced in a modern processing plant which helps to give a smooth,
mild acetic acidic taste and pleasant flavour consistently.

25
Amul Ice Creams

AMUL ICE CREAM is made from Milk and Milk products, Sugar, Stabilizers &Emulsifiers.
It composes of milk fat, total solids, sugar,
acidity, protein etc. Calories present are per 100 ml -196.7 kcal Various verities of IceCream can be
made from the basic mix by addition of required.

Various flavors of Amul ice-cream are as follows:-

Vanila, Strawberry, Pineapple, Orange, Rose, Mango, Chocolate, Honey-Dew-Melon, Tutti

Frutti, Litchi, Kesar Pista, Kaju Draksh, Butterscotch, Chocochips, Rajbhog and Cashew
Break.

26
Amul Mithaee

This is a ready-to-eat product and hence it liked by a majority of people.

People prefer to this product than the mix of Gulab Jamuns available. Thebest quality of the
food attracts the people as the nature, moistness and softnessis accepted which enforces the
people to buy the product.

27
Amul Gulab Jamun Mix

AMUL MITHAEE GULABJAMUN MIX is made from Whole Milk Powder,

Tartaric Acid, and Sodium Bicarbonate. Amul Mithaee Gulabjamun Mix is a mixtureof all
the required ingredients to produce tasty, softer and delicious Gulabjamuns.The moisture
content is more than the fat content.

28
Amul Chocolates

AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, Chocolate mass.The
composition is as follows Milk Fat, Sugar, Total Fat (Milk Fat + Cocoa Fat), Cocoa Solids,
and Milk Solids and meets all requirements under the PFA for boiled sugar confectionary.

29
Amul Basundi

Ingredients:-

Amul Basundi is concentrated milk based product with added sugar, flavors
and condiments and contains Fat - 11%, Milk Solids - 25%, Sugar - 9%. The calorific value
is 205 Calories per 100ml. Amul Basundi is available in 500 ml and 1 Liter aseptic Tetra
Pack. The Basundi is prepared from best quality, rich in nutrition and free from bacteria. It
can be stored in room temperature and maintains a long shelf life(6 months from date of
manufacturing ). It is economically priced and available round the year. Amul Basundi is
accepted and can be served as can be served as food companion or dessert. It also helps to
make Kheer, Payasam, Gajar Halwa, Seviya, Kulfi, Rabdi, Milk Shakes delicious.

30
HR POLICIES IN
AMUL – TASTE OF
INDIA

31
OBJECTIVES

In reviewing the purpose of HR Policies at Amul Ltd., the organization stated that the HR
Policies has been a key part of the management process for the effective utilization of human
resource. The company aims to fulfill the following objectives through its HR Policies:

Ensure a high degree of selectivity in recruitment so as to secure superachievers

and nurture them to excel in their performance.

Impart such induction, orientation and training as to match the individualto the task
and inculcate a high sense of organizational loyalty.

Provide facilities for all round of growth of individual by training in and outside the
organization, reorientation, lateral mobility and self- development through self-
motivation.

Groom every individual to realize his potential in all facets whilecontributing to

attain higher organizational and personal goals.

Build teams and foster team-work as the primary instrument in allactivities.

Recognize worthy contributions in time and appropriately, so as to maintain a high

level of employee motivation and morale. Appraisals and promotions shall be ethical
and impartial.

Implement equitable, scientific and objective system of rewards,

incentives and control.

Contribute towards health and welfare of employees.

MANAGEMENT REVIEW:

Management review meeting is held every six months at the Group Review. Meet is
conducted from time to time to ensure the suitability, adequacy and effectiveness of the HR
Policies.

32
CORRECTIVE ACTION FOR NON CONFORMANCE:

Non conformance to the policies mentioned is reviewed by the Group HR Cell,

respective CEO and HR Head of the company. The review will suggest remedial
measures to avoid repetition of the non conformance through elimination of the root
causes for the same.

Board of Directors is kept informed of the review and action plansdecided to avoid
the non conformance in the ensuing monthly meeting.

DOCUMENT AND DATA CONTROL:

Documents and data are generated by the Corp. HR in the form of hardcopies or
electronic medium.

Documents are reviewed and approved for adequacy by Corp. HR prior toissue.

The various procedures that form the HR Policy of the Organization are:

1. Recruitment and selection of manpower

2. Induction and Placement
3. Job Rotation
4. Performance appraisal
5. Counseling
6. Career Planning
7. Succession planning
8. Employee training and Development
9. Human Resource Information Management System
10.Retirement Planning
11.Job Enrichment
12.Exit Interviews

A brief preview of the above mentioned policies and the various objectives thatthese policies
aim to achieve are given in the subsequent chapters.

Due to high level of secrecy maintained in the organization, the policies givenbelow are
according to my understanding and interpretation of the subject.

33
1. RECRUITMENT POLICY

In Amul Group, recruitment and selection of personnel is explicitly based on

the criteria of their knowledge, skills and attitudes, so as to secure super
achievers and nurture them to excel in their performance.
All fresh candidates are absorbed only after satisfactory completion of
appropriate training.
All direct recruitment is through the HR department.
Detailed selection procedures as decided from time to time are adhered to
without any compromise.
Above procedures shall undergo continuous refinement throughevaluation and
feedback.

2. INDUCTION AND PLACEMENT POLICY

At Deepak Group, new recruits imparted such induction, orientation, training

and placement so as to individuals to the task and inculcate a high sense of
organizational loyalty.
The HRD Department and the concerned heads of parent departments
prepare a well-structured Induction Program toacquaint the new recruits with
the people, organizational structure, and interface between different
departments, functions and culture of the organization.
The Induction Program is formulated to suit the position of the candidate and
necessary to be provided to him.

3. JOB ROTATION POLICY

At Amul Limited, facilities are provided for all-round growth of individuals

through lateral mobility. This shall enhance their employability as well as
equip them to shoulder higher responsibilities.

Systematic Job Rotation from time to time shall have a revitalizingeffect on the
individual as well as the organization.

All promotions to the level of HODs will be considered only whenan individual
has undergone rotation through at least 2 sections.

34
4. PERFORMANCE APPRAISAL POLICY

Performance Appraisal grooms every individual to realize his potential in all

facets by helping to identify and achieve his personal goals within the
framework of organizational objectives.

Appraisals shall be ethical and impartial so as to recognize worthy

contributions appropriately and in time in order to maintain a high level of
employee motivation and morale.

The Performance Appraisal Systems aims at integration of

individual and organizational goals.

5. COUNSELLING

Counseling sessions, which are conducted by HR Department OR Professional

Counselor OR Performance Appraiser, are available to all the employees in order to
fulfill the following objectives:

To prepare employees for future responsibilities.

To establish a better working relationship between the superior andsubordinate.
To enable employees to cope with personal problems.

6. CAREER PLANNING POLICY

Career Planning system in Amul Limited is aimed at developing people of the

right caliber to meet present and future needs of the organization. It shall be
an essential ingredient for Succession Planning.
The mandatory factors to be considered prior to career planning shall be:

a.
b. Manpower skills required towards implementing these plans.
c. Attrition rate of people with high potential, above average and
average caliber.
d. Recruitment through internal and external sources at all levels
and its ratio as appropriate to the organization.
e. The number of people recruited and trained every year.

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7. SUCCESSION PLANNING POLICY

HODs and above identify successors, primary and secondary, to his position at the
time of annual appraisal. This is reviewed every year alongwith the annual appraisal.

8. TRAINING AND DEVELOPMENT POLICY

At Amul Limited, training and development activities strive to ensure

continuous growth of organization by nurturing the strengths of the
employees and providing the environment and opportunity for every
individual to realize his/her potential.
The policy aims at broadening the outlook of the individuals and bridging the
gap between actual performance and the performance necessary to deliver
results.
Facilities are provided to all individuals towards self development and all
round growth through training.
HR Department identifies average performers and provide special training.

9. HUMAN RESOURCE INFORMATION MANAGEMENT SYSTEM

Human Resource Information Management Systems (HRIMS)aims at:

a. Providing accurate information about employees to
management for decision making.
b. Eliminating duplication of efforts.
c. Offering quick and easy access to human resource information
at random as well as in regular report form.

The system has two layers of security. Access to the system is through keying
in the valid combination of username and password. Permission to access
certain programs is restricted to identify key personnel.

An integrated employee database is maintained and continuously updated

with information from personnel at regular intervals regarding biographical
data, work experience, qualifications,appraisal, training and career paths.

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 10. RETIREMENT PLANNING

At Amul Limited, retirement of all individuals is aided through planned

programs by HR Department so as to lessen the associated misgivings and
anxiety.

11. JOB ENRICHMENT

Amul Limited follows a people centered approach to job enrichment with a

view to enhance the performance of the employee, leading to higher job
satisfaction.

12. EXIT INTERVIEWS

The organization has a regular turnover of employees due to various

reasons such as retirement, voluntary retirement, and resignation etc. from
time to time. Feedback is obtained from the employee on occasions of
separation from the organization. Such feedback on matters that effect well
being of the people is useful in improving the organization in respect of HR
Policies and practices.

The HR Policy Manual (or Managerial Service condition Manual) was designed in order to
facilitate the mangers in gathering the information regarding the various service conditions
that are offered by the organization. This manual includes the service conditions which are
most frequently asked for. The various services conditions included are:

1. Provident Fund
2. Gratuity
3. Privilege Leave
4. Superannuation Scheme
5. Medical Reimbursement & Hospitalization
6. Dental Policy
7. Group Accident Insurance Scheme
8. Housing Loan Scheme
9. Vehicle Loan Scheme
10.Phone Policy
11.Leave Travel Assistance (LTA)
12.Local Conveyance Rules 13.Transfer
Policy
14. HRR Policy for Area Office Managers

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15. Canteen Service
16. Cash Payments & Advance Settlements
17.Performance Excellence Scheme 18.Performance
excellence Form 19.Parivar Suraksha Yojna
20.Policy for Get Together of Employees 21.Notice Period for
Managerial Employees
22.Conveyance Reimbursement for Interview Candidates23.Car Policy
24.Post Retrial Benefits 25.Inland Travel Rules
26.Foreign Travel Rules 27.Application for Housing
Loan28.Application for Car Loan
29.Application for 2-wheeler Loan 30.Application for 2-wheeler
(wards) Loan

38
TOTAL QUALITY MANAGEMENT CONDUCTED
BY
AMUL COMPANY

Introduction:-

As AMUL concerned with the manufacturing of perishable products it had a bird eye on the
quality of the products produced by the company. In today’s stiff competition it tried to
strengthen its functional processes. Emerging trends of liberalization and impact of WTO has
led to focus on Total Quality Management. Realizing that unless the TQM initiatives is been
accepted by all business partners, the same would remain ineffective. As a very unique
measure Amul extended all the TQM initiatives to its business partners whether it was the
farmer producer in the village or a wholesale distributor in a metro town or its most
sophisticated production unit. A number of TQM initiatives which run successfully across
the organization are been mentioned below:-

1. Kaizen

2. Housekeeping

3. Small Group Activities

4. Hoshin Kanri(Policy Development )

Shri B.M. Vyas, Managing Director, championed this movement realized way back in 1994
that with emerging competition, doing business would become more exciting yet extremely
competitive which would require at times not only a whole set of new skills and
competencies but quick adaptability to change without much stress or turbulence.

39
1. Kaizen:-

Employees of GCMMF have done more than 1.60 lakhs Kaizen since May,
1995 which has impacted in bringing in a culture of continuousimprovement.

2. Housekeeping:-

The housekeeping initiatives have helped keeping the offices/ warehouses

neat, clean and more productive, be it is the Office premises or the godowns or even
Computers.

3. Small Group Activities :-

150 SGA’S have been carried out in cross functional groups to address the
problem and pain areas of the organization i.e. issue of sales, marketing, HR or IT. The
organization has implemented a customized ERP for seamless integration of its 40 odd
sales offices from Jammu to Port-Blair and Head Office. All its wholesale dealers are
computerized and GCMMF is moving on a B2B model for integration interface with its
dealers be it for placing order for buying its products, sharing information or for tracking
logistic of dispatch/receipt of goods.

40
4. Hoshin Kanri(Policy Development):-

GCMMF has also embarked upon for last 4 years, 'Hoshin Kanri' a employment initiative
where more than 100 Officers/Heads participate twice in a year to review its business
goals/processes and implement new initiatives. These are further cascaded to the wholesale
dealers in different territories in a two day exercise called Vision Mission Strategy (VMS)
Workshop. These initiatives have resulted common understanding of goals, eliminating
communication barrier.

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 EFFECTIVENESS:
-

The initiative of TQM six years back has made the organization efficient
whether it be in launch of brands, or in implementing ERP's or expanding its distribution
network. More striking feature of GCMMF's TQM experience is the integration of its
business linkages at the village level to the forward linkage through its sales offices/wholesale
dealers in the market.

AMUL YATRA

One of the unique initiatives has been in terms of involvement of its wholesale dealers in a
common platform to address issues of market/customers. All the wholesale dealers from
across the country have visited Anand in a unique programme called "AMUL YATRA". In
the next phase, the organization has already started inviting the salesmen of these wholesale
dealers for this programme. It also intends to invite the top retailers of various cities/towns to
Anand. The purpose is not as much to orient them to GCMMF's business plans, but to
inculcate a super- ordinate goal in their heart that when they are associated with AMUL, they
are working for a modest milk producer in the rural hinterland of the country and that is what
true progress is about. GCMMF has more than 200 Amul Quality Circles in the country
where all the above wholesale Dealers meet in group on every third Saturday of the month to
discuss their business, quality initiatives and also pain areas. This has impacted tremendously
not only in communication but also in improving the transparency in the organization.

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MARKETING & SALES PROMOTION STRATEGY

Looking at the current Indian marketing scenario, we can say that we are
moving back in time. Kotler says that in the evolution of marketing, before the marketing
concept became popular, there is a selling concept which states that "customers and
businesses, if left alone will ordinarily not buy enough of the organizations products. The
organization must therefore undertake an aggressive selling and promotion effort" In this
present scenario, it is true that companies will survive only if there is a super efficient sales
force. The reasons are that increasingly every product is being commoditized and there is an
increase in the power of retails,information explosion that has given the consumer an unusual
power. This has ensured that without an efficient sales force companies cannot survive.
Even when companies focus on sales effort, concept like segmentation should
not be overlooked. For example, there has been lot of effort on increasing credit card usage in
India. Credit card now comes free for life and sales people are just selling credit cards like
chocolates. Is it not wise to look at whether the consumer wants a credit card? Does he like to
use one? Does he have the abilityto pay back? Recently a news channel showed a mutual fund
agent giving discounts to a client from his brokerage. What does that mean? It simply means
that we are not practicing marketing. We are just selling....
Many business gurus’ are saying that,” customers are the god or king of the market”. It can be
understood from the fact that the customer is not the king as the companies want the
consumer to be loyal. The real fact is that no company regard customer as the king. Everyone
in the market cares about the money. Marketing is creating and exchanging goods of value
between company objectives are achieved in that process. So what is happening now is this
exchange process. Marketers tried to attract customersby treating them well and thus came the
cliche “customer is the King". It is only economics in play. It is now the choice of the
customer that whetherhe wants himself to be treated as a king (and pay for it).

After realizations of the big issue Amul stated to make the marketing and
sales promotion strategy to overcome the problem. Amul is the largest co- operative
movement in India with 2.2 million milk producers organized in 10,552 co-operative societies
in 2003-2004. The country's largest food company, Amul, is the

43
 market leader in butter, whole milk, cheese, ice cream, dairy whitener,
condensed milk, saturated fats and long life milk. Amul follows a unique business model,
which aims at providing 'value for money' products to its consumers, while protecting the
interests of the milk-producing farmers who are its suppliers as well as its owners. Despite
being a farmers' co-operative, Amul has given multinationals a run for their money. In butter,
cheese and saturated fats, Amul has remained the undisputed market leader since its
inception in 1955, by offering quality products at competitive prices. In other categories,
Amul has nullified its late mover disadvantage through aggressive pricing, better quality,
innovative promotion, and superior distribution.

44
AMUL AND COMPETITION
Amul operates in a highly competitive environment. Amul has to compete with 6 to 8
transnational in the market place. GCMMF popularly known as Amul is taking on
trannationals across a clutch of product categories. “Get your focus right” is the mantra
for Amul.

CADBURY

HINDUSTA
NESTLE
N LEVER

AMU

BRITANNIA PIZZA COS

45
AMUL AND COMPETITION: - A STATUS REPORT

1. ICE-CREAM:-

AMUL HLL NIRULAS

Focusing on lower
Expanding reach price Fortifying Delhi-centric
presence with ice- cream
Expanding market with points only retail chain
snowcap Building a national
Launched Fundoo to chain of ice-cream
combat HLL’s max parlours

2. PIZZA:-

AMUL NIRULAS PIZZA-HUT DOMMINO

Entering the Fortifying Delhi- Plans to Closing down
ready- to-cook centric presence, increase , to 100 Unprofitable
consumer by launching outlets in the Outlets
segment through frozen ready-to- next three years
Utterly Delicious cook pizza

3. INFANT MILK SUBSTITUTES:-

AMUL NESTLE
To enter the market with three Creating entry barriers for amul
variants through price and cross promotions

46
 4. CURD:-

AMUL NESTLE MOTHER DAIRY

Expanding reach by Means to compete its Leveraging its liquid
dairy
aligning with other milk range milk distribution
co-operatives network in Delhi to sell
Curd

5. DAIRY WHITENERS:-

AMUL BRITANNIA
Focusing on the geographical
Wants to dominate market through market
Amulya with milkman

6. BUTTER:-

AMUL NESTLE BRITANNIA

Plans to protect near An outsourced productto Focusing on flavoured
complete dairy range
dominance in low high margin UHT
margin market with Markets
price Plans to capture key
Markets

47
 6. SWEETENED CONDENSED MILK:-

AMUL NESTLE
Emphasizing price leadership to
drive Holding prices of milkmaid and
heavily cross promoting the
Mithai-Mate to market dominance product

8. CHEESE:-

AMUL NESTLE
Focusing on top A and B class
Wants to create institutional market outlets
and seeking to maintain its
for its mozzarella cheese leadership
in cheese slices

9. HEALTH DRINK:-

AMUL CADBURY SMITH-KLINE

BEECHAM
Amul Shakti is been Re-launched Bournvita Acquired Maltova and
v9iva to fortify its
launched to compete recently stable
with other brands. of Boost and Horlicks

48
 EXPORTS

GCMMF is India's largest exporter of Dairy Products. It has been accorded a

"Trading House" status. GCMMF has received the APEDA Award from Government
of India for Excellence in Dairy Product Exports for the last 9 years.

The major export products are:

Consumer Packs:-

· Amul Pure Ghee

· Amul Butter

· Amul Shrikhand

· Amul Mithaee Gulabjamun

· Nutramul Brown Beverage

· Amulspray Infant Milk Food

· Amul Cheese

· Amul Malai Paneer

· Amul UHT Milk (Long Life)

· Amul Fresh Cream

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Bulk Packs:-

· Amul Skimmed Milk Powder

· Amul Full Cream Milk Powder

Many of our products are now available in the USA, Gulf Countries andSingapore.

50
 Amul hopes to flow into Japanese market:-

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.

51
CONCLUSION

Amul plans to be a leader in food business. This 3458 crore co-operative is planning to foray
in restaurants, ready-to-eat curries etc. it also plans to launch ready to drinkcoffee and tea. The
plan of this co-operative is to make Amul, India’s best known food brand and also to garner a
sizable marketplace in 30 countries wherein its products are exported to. The brand should
not be known in milk, butter & cheese but as a food brand. Its numerical target, a turnover in
excess of Rs. 10000 crore by 2006.
In words of Dr, verghese Kurien, chairman (GCMMF). Amul is a brand that is
trustworthy of 1000 million Indians. Why should it be seen only as a brand label for butter?
Hope, its competitors are listening!

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 BIBLIOGRA
PHY

Books:

Business Guru’s

The Story of V. Kurien.

Co-operative Management- Kale & Ahmad.

Websites:

www.amul.com

www.google.com

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