PRESENTATION ON

GUIDED BY:Prof. MANISH SIR

PRESENTED BY:AMIT SHARMA GOURAV JAIN

CHAMELI DEVI INSTITUTE OF MANAGEMENT AND RESEARCH

ROAD MAP

INTRODUCTION & HISTORY HUMAN RESOURCE DEVELOPMANT DEPARTMENT

PRODUCTION DEPARTMENTMARKETING DEPARTMENTSOCIAL RESPONISIBILITIES SOME FACTSCONCLUSION RESOURCES

ANAND MILK FEDERATION LIMITED

KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD., ANAND.

In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day.

The union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION.

This union selected the brand name AMUL in 1955.

The brand name Amul means “AMULYA”. This word derived form the Sanskrit word “AMULYA” which means “PRICELESS”.

The successful pattern of Amul cooperatives ,in 1965 , the prime minister of India, SHRI LAL BAHADUR SHASTRI, created The National Dairy Development Board(NDDB) .

History of Amul

CONT……..

In 1973,Amul was managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).

Amul has spurred the White Revolution of India.

GCMMF – OVER VIEW GCMMF: Gujarat Cooperative Milk Marketing

Federation.

It was established in 1973.

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.

CRISIL(credit rating information services of India limited), India's leading Ratings, Research, Risk and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.

THE MAN WHO BEHIND THE AMUL

Dr. VERGHESE KURIEN The father of White revolution in India and also called Milkman of India . He was the chairman of the GCMMF. He was also the chairman of NDDB. He was awarded by Ramon magsaysay for

community leadership. He was awarded by BHATAR PADMA SHRI,

PADMA BHUSHAN,AND PADMA VIBHUSAN.

ORGANIZATIONAL STRUCTURE

HUMAN RESOURCE DEVELOPMENT DEPARTMENT

HUMAN RESOURCE MANAGEMENT DEPARTMENT

Recruitment, Selection & Induction. Training & Development. Performance appraisal. Promotions & Transfers. Wage & Salary Administration. Employee Turnover. Welfare Activities. Time Keeping Department. Personal Records.

Internal Source - Promotions

- Present Permanent Employee Transfers

- Employee Referrals

- Former Employees External Source - Advertisement - Campus Interview - Employee Exchange - Unsolicited Application Requirement of recruitment

Recruitment

SELECTION

Biographic Data Education Experience Personal Detail Aptitude Test Interest Test Intelligence Test Performance Test Personality Test Medical Test

INDUCTION

INTERNAL INDUCTION EXTERNAL INDUCTION

TRAINING AND DEVELOPMENT

oON THE JOB TRAININGoOFF THE JOB TRAININGoOUT HOUSE TRAINING

PERFORMANCE APPRAISAL

Feedback to the employee. Compensation decisions. Personal development. Training and development program . Promotion decision. TIME PERIOD OF APPRAISAL Manager - ¾ year. Temporary Workers - 1½ year. Workers - 1 year. Officers - 3 year.

PROMOTIONS & TRANSFERS.

Seniority.

Opinion of Divisional head, past record, behavior.

Skill and knowledge.

Experience.

Loyalty toward organization.

Time Wage Piece Wage Basic D.A. H.R.A. Traveling Allowances Medical Bonus

Credit Society Loan LIC Premium Provident Fund Canteen Coupon

Charge Profession Tax Income Tax Quarter Rent Advance

WAGES AND SALARY AND SALARY

DEDUCTION FROM SALARY

EMPLOYEE TURNOVER

Employee Hiring Managerial Style Environment Incentives And Reward

WELFARE ACTIVITIES

MEDICAL FACILITY CANTEEN FACILITIES BONUS LOAN FACILITY SAFETY UNIFORM PERSONAL ACCIDENT POLICY

TIME KEEPING DEPARTMENT

-ELECTRONIC PUNCH CARD SYSTEM(FOR OFFICERS)-MANUAL PUNCH CARD SYSTEM (FOR WORKERS)

CONT……..

Privilege leave:- According to office rule employee can use 22 P.L in

a year. Casual leave:- According to office rule in a year 7 C.L are given to

the employee.

Notified holiday:- In a year 12 day are notified holiday. All employee

under office rule entitled for this 12 days leave.

CONT…….

Optional holiday:- 5 days optional holidays are entitled under office

rule for the all workers, managerial group and other staff.

Accident leave:- Medical certificate from doctor is required to be

taken for the accident leave. Maternity leave:- For woman employees 12 weeks leave is given for

the delivery. Dog bite leave:- If an injured person shows medical certificate, leave

is given to that employee according to rule.

PERSONAL RECORD

Employment number. Full name of employee. Designation. Date of joining. Date of confirmation. Date of increment. Date of retirement.

PRODUCTION DEPARTMENT

ROAD MAP

Introduction Production plants Manufacturing process Interrelationship of production department Purchasing Manpower scheduling Material handling Production scheduling Plant location Storing

The AMUL is started with only 250 liters of milk per day but now AMUL.

Collect average 6.5 lakhs litters milk. With the financial help of UNICEF, union established a Rs. 5 million factory to manufacture milk powder and butter in November 15, 1954.

In 1958 the plant was expanded to manufacture sweet condensed milk .

In 1960 the other branch is started, which can produce 600 tones of cheese and 2500 tones of baby food every year.

PRODUCTION DEPARTMENT

CONT……

In 1964 the other plan was established to manufacture cattle feed on October 31, 1964.

Today the AMUL has three plant known as AMUL 1, 2, and 3. All three plant work 24 hours a day continuously.

The all manufacturing process done automatically.

 

PRODUCTION PLANTS

Production is the process of conversion in which all inputs are converted into output.

Production management is very necessary

for getting optimal output with maximum use of inputs and raw materials.

AMUL has its manufacturing units. These all units are concerning with production of various milk product. The four plants are as follows:

PlantsFirst plant is at ANAND, which engaged in the

manufacturing of milk, butter, ghee, milk powder, flavored milk and

buttermilk.

Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia and Amul lite.

Third plant is at Kanjari, which produces cattle feed.

Fourth plant is at Khatraj, which engaged in producing cheese.

Today, twelve dairies are producing different products under the brand name Amul.

AMUL - BUSINESS MODEL

RAW MILK

DriedSkimmed Milk

Powder

Packaged Milk

Ice creamBeverages

Condensed

GheeButterCream

pasteurization

MANUFACTURING PROCESS OF PRODUCTS

Place Collection center Process product Butter , Ghee , Milk powder , Flavored milk

ProcessingProcessing

Skim MilkSkim Milk

Powder Plant

Powder Plant

Market DispatchMarket Dispatch

DairiesDairies SellingSelling

CreamCream

Butter PlantButter Plant

Ghee PlantGhee Plant

Selling Selling

DIAGRAM OF ACTIVITIES OF PRODUCTION DEPARTMENT

MILK RECEPTION

MILK RECEPTION

INTERRELATIONSHIP OF PRODUCTION DEPARTMENT

Purchase and Production Department .

Sales and Production Department .

Marketing and Production Department .

PURCHASING

The required department i.e. the milk – producing department send the requisition to the stores department for the requisition to the stores department for the requirement of materials.

If the store has enough quantity of material in stock, it supplies them to the department concerned.

If the stores don’t have proper quantity of material, it contacts the purchasing department for the purchase of required material.

The purchase department maintains contact with the supplier of material and demand quotation forms them.

The purchase department thus chooses the suppliers and places order with him for supply of material required.

MANPOWER SHEDULING

Maintenance:- Kaira Union collects milk every night and day, it

means 365 day in a year and manufacturing products. There are mainly three shifts of working employees:

8:30 a.m. to 4:30 p.m. – 390 workers. 4:30 p.m. to 12:30 a.m. – 270 workers. 12:30 a.m. to 8:30 p.m. – 190 workers.

Total Workman:- Manager – 45. , Workers – 1200 approx. Officers – 180. Clerical – 258.

MATERIAL HANDLING EQUIPMENTS

Milk Tankers. Tempos. Belt Conveyers. Crates. Cans. Trolley. Cans Tube. Plastic Tube. Glass Bottles.

PRODUCTION SCHEDULING

Product scheduling plan develop and successfully markets the products. It is initial point for whole marketing functions.

In AMUL, federation decides what type of product is to be produced or what are the requirements for developing the new product.

If the prevailing products are not at their best then what kind of up gradations are required that GCMMF guides AMUL for following concern and accordingly the unit works.

So the product planning is to introduce and develop the new product as per the consumer’s requirement.

PLANT LOCATION

Plant location deals with the selection of optimum location for establishing industry. The selection of location is affected by a variety of factors like:

Availability of raw material. Proximity of market. Availability of water, power etc. Government policy. Availability of finance. Availability of labour. Infrastructure facility. Link with the transportation network

STORING

The stock of raw materials Store finished goods

MARKETING DEPARTMENT

ROAD MAP

List of Product Market segmentation Market research Branding and packaging Marketing mix Advertising Competitors Export

LIST OF PRODUCT

Bread Spreads:- AMUL Butter. AMUL Lite Low Fat Bread Spread. AMUL Cooking Butter.

Cheese Range:- - AMUL Shredded Pizza Cheese. - AMUL Emmental Cheese. - AMUL Gouda Cheese. - AMUL Malai Paneer (cottage cheese) Frozen and

Tinned. - Utterly Delicious Pizza.

LIST OF PRODUCT

Mithaee Range

― AMUL Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom).

― AMUL Amrakhand.― AMUL Mithaee

Gulabjamuns.― AMUL Mithaee

Gulabjamuns Mix.― AMUL Mithaee Kulfi Mix.

UHT Milk Range:-

― AMUL Taaza 3% Fat Milk.― AMUL Gold 4.5% Fat Milk.― AMUL Slim – n – Trim 0%

Fat Milk.― AMUL Chocolate Milk.― AMUL Fresh Cream.― AMUL Snowcap Softy Milk.― AMUL Taaza Double Toned

Milk.

 

LIST OF PRODUCT

Pure Ghee:-― AMUL Pure Ghee.― Sagar Pure Ghee.― AMUL Cow Ghee.

Infant Milk Range:-― AMUL Infant Milk Formula

1(0 – 6 months).― AMUL Infant Milk Formula

2(6 months above).― Amul spray Infant Milk

Food.

Milk Powders:-― AMUL Full Milk Powder.― Amulya Dairy Whitener.― Sagar Skimmed Milk

Powder.― Sagar Tea and Coffee

Whitener.

Sweetened Condensed Milk:-

― AMUL Mithaimate Sweetened Condensed Milk.

LIST OF PRODUCT  Fresh Milk:- AMUL Taaza Toned Milk 3%

Fat.

AMUL Gold Full Cream Milk 6% Fat.

AMUL Shakti Standardized Milk 3% Fat.

AMUL Smart Double Toned Milk 1.5% Fat.

Curd products:- AMUL Masti Dahi (Fresh

Curd).

AMUL Butter Milk.

AMUL Lassee.

Brown Beverage:-

Nutramul Malted Milk Food.

Milk Drink:-

AMUL Shakti Flavored Milk.

Ready to serve soups:-

Masti Tomato Soup.

Masti Hot and Sour Soup.

 Chocolate and Confectionery:-

AMUL Milk Chocolate.

AMUL Fruit and Nut Chocolate.

AMUL Éclairs.

 

 

 

LIST OF PRODUCT

Ice-cream

― Royal Treat Range (Rajbhog, Cappucino, Butterscotch, Truti Fruti).

― Nut – o – Mania Range (Kaju Draksh, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Sahi Pista Kulfi).

― Utsav Range (Anjir, Roasted Almond).― Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose,

Chocolate).― Nature’s Treating (Alphanso Mango, Fresh Litchi, Anjir, Fresh

Strawberry, and Black Currant).― Sundae Range (Mango, Black Currant, Chocolate, Strawberry).― Tricone Cones (Butterscotch, Chocolate).― Megabit Almond Cone.― Frostik – 3 Layers Chocolate Bar.

LIST OF PRODUCT

― Millennium ice-cream (Cheese with Almonds, Dates with Honey).

― Milk Bars (Chocó bar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi pista Kulfi, Mawa Kulfi, Green Pista Kulfi).

― Cool Candies (Orange, Mango).― Cassatta.― Fundoo Range – Exclusively for Kids.― SlimScoop Fat Free Frozen Dessert (Vanilla,

Banana, Mango, Pineapple).― Health: Isabcool.

Customer Based Market Segmentation

Kids

Women

Calorie Conscious

Health Conscious

Youth

Amul Kool Chocolate MilkNutramul Energy DrinkAmul Kool Millk Shaake

Amul Calci +

Utterly Delicious PizzaAmul Emmental CheeseAmul Cheese Spreads

Amul LiteSagar Skimmed Milk PowderAmul Lite Slim and Trim Milk

NutramulAmul Shakti Health Food Drink

INDUSTRY BASED MARKET SEGMENTATION

Milk

Butter/Cheese/Ghee

Ice-cream Manufacturers

Restaurant/Food Chains

Temples

Bakery & Confectionaries

Pizza Retailers

Snacks Retailers

Coffee Shop Chains

BRANDING AND PACKAGING

A brand or a name, sign, term, symbol or design .

A brand is company’s promise to consistently deliver a specific set of features, benefits or services to buyers .

The best brand conveys a warranty of quality .

Packaging involves activities of designing and producing container or wrapper for the product.

MARKET RESEARCH

“Marketing research is the systematic design collection analysis and reporting of data and finding relevant to a specific marketing situation the company.”

AMUL performs the marketing research mainly to launch a new product in market.

The purpose is checking the viability of the new products in the target market for local area.

AMUL conducts the market survey by appointing business administration students for conducting the market survey.

AMUL – PRODUCT PORTFOLIO

Category Market Share Market Position

Butter, Ghee 85% 1

Milk Powder 40% 1

Cheese 50% 1

Ice-cream 24.75% 2

Sweets 50% 1

Chocolate Drink 90% 1

Chocolate 10% 3

PRODUCT MIX OF AMUL

PRODUCT A product is anything that satisfies a need or

wants and can be offered in the exchange .

A product can be goods, service or idea.

AMUL produces and sell the product i.e. milk;and milk base it has to plan its product very carefully so that the consumer gets only good quality products.

PRICE

Pricing and product image are closely related. Cost of milk. Labor cost. Processing cost. Packaging cost. Advertising cost. Transportation cost. Sales promotion costs. Taxes etc.

PROMOTION

Advertising philosophy“ to be simple, fresh and innovative".

The clean, emotion-based ads.

Amul ads-creative , apt for the current situation.

The Amul ads are one of the longest running ads based on a theme , now vying for the Guinness records

1% of its turnover on promotions.

Not spending more than Rs2 crore on Amul butter

BILLBOARD CAMPAIGN

First billboard came up in 1967

For the first one year the ads made statements of some kind

Later many topical adds came into existence

When Mumbai first saw the beginning of the Hare Rama Hare Krishna movement .

Amul came up with a clincher—‘ Hurry Amul , Hurry Hurry ‘.

PROMOTION BY EVENTS

Amul Chef of the Year , 2009 contest.

Amul Maharani Contest,2008-09.

Amul Food festival Contest.

Winners of Slogan likho Disney land dekho contest.

Winners of"Amul ya Fly to Bangkok Contest.

Sponsoring amul star voice of india .

ADVERTISEMENTS

ADVERTISEMENTS

SOME TV ADD

AMUL MASCOT

The term mascot – defined as a term for any person, animal, or object thought to bring luck[1] – colloquially (informally) includes anything used to represent a group with a common public identity, such as a school, professional sports team, society, military unit, or brand name.

COMPETITORS

Brittania

Nestle

Cadboury

Mother Dairy

VADILAL

CREAM BELL

AMUL - PRODUCT ABANDONMENT

20 years back, Amul took 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. The product was abandoned.

Now Amul is all set to re-launch bottled water “NARMADA NEER”

DIRECT MARKETING

SERVICES OFFERED BY AMUL

Medical facilities for the cattle of former

Cattle feeding

Artificial insemination (Cattle Breeding )

Free animal vaccination

Former education programs

AMUL also provide the scholarship to children of member of society.

FACTSMembers: 13 district cooperative milk producers'

Union

No. of Producer Members: 2.79 million

No. of Village Societies: 13,328

Total Milk handling capacity: 11.22 million liters per day

Milk collection (Total - 2008-09): 3.05 billion liters

Milk collection (Daily Average 2008-09):

8.4 million liters

Milk Drying Capacity: 626 Mts. per day

Cattle feed manufacturing Capacity:

3500 Mts. per day

CONT…

Every day Amul collects 7 million liters of milk from 2.79 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods to over 5,00,000 retail outlets across the country.

Its supply chain one of the most complicated in the world.

Annual Turnover Of Rs 4300 Crore (2006-07)

Rs 10,000-crore mark over the next three years.

Four decades to become Rs 2,000-crore entity, But the turnover doubled to over Rs 4,300 crore within nine years from 1999 to 2007

Annual Turnover

4300

10000

2000

0

2000

4000

6000

8000

10000

1946 1999 2007 2008 2009 2010

Time Frame

INR

Cro

res

CAGR: 32%

REASONS FOR SUCCESS

Robust Supply ChainThe vast and complex supply chain Hierarchical network of cooperatives

Stretches from small suppliers to large fragmented markets

Low Cost Strategy Amul adopted a low-cost price strategy to make its products

affordable and attractive to consumers by guaranteeing them value for money

Diverse Product MixAmul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates,

Shrikhand, Ice cream, Nutramul, Milk and Amulya

Strong Distribution NetworkAmul products are available in over 500,000 retail outlets across

India through its network of over 3,500 distributors. 47 depots with dry and cold warehouses to buffer inventory of the

entire range of products.

Technology and e-initiatives New products

Process technologyComplementary assets to enhance milk production

E-commerce.

Success!!

WHAT MORE CAN AMUL DO?To improve further Amul can try out the following ideas:

I) Amul can venture out on new products like Toned milk, Condensed milk that can be used for sweets, Baby food products.

II) There are certain product like Amul basundi, gulab jamoon, chocolates etc which are not as popular as Amul ice cream. Amul must try to understand the cause of this through market research and work on improving these products.

III) Though Amul’s hoardings are a huge success, it can penetrate even better in the rural areas by advertising through the media with cable channels and newspapers. Sponsoring shows in TV, sports events can be of great help.

CONCLUSION

India has emerged as the highest Milk Producing Country in the world.

The Dairy Industry in India is considered to be a category, which has been Growing & Profitable.

The Major Markets for Export of Dairy products from India include Germany, USA, UAE, & Nepal.

Indian Dairy Products play a significant role in the socio – Economic & Religious activities of our population.

CONT……………

AMUL is well poised to steer the Dairy Co- operative Sector into an era of further prosperity & Growth.

AMUL have been serving as the “ROLE MODEL” for Dairy Co- operatives across the world.

Amul is one of the successful business houses and other companies should learn from Amul that how to do their business in a corporately socially responsible manner.

Amul has proved a point , Amul uses only 1 percent of its turnover for promotions .This shows that it is not always necessary to spend millions on promotion when you have creativity.

Thank You !!

REFERENCES

www.wikipedia.com www.Amul.com www.amuldairy.com www.slideshare.com www.dairy.com The story of Amul