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S.NO CONTENTS PAGE
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1. Introduction 6

2. Production function 11

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Mc ’ocation 10

Mc Plant ’ayout 12

Mc Operating Analysis 12

Mc Steps in production process 13

3. GCMMF overview 18

Mc ’ist of products 19

Mc Organizational structure 22

ëcExternal 22
ëcInternal 23

Mc Marketing Function 24
ccccccccccccccccccc c c c ccConclusion 28

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Before the cooperative movement began, middlemen who supplied milk to the
consumers were exploiting the dairy industry in the Kaira District. It began as a
response to this exploitation and put an end to it. It grew because it 


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cIt has thrived because farmers who have a
stake in its success, own it. And because it has been managed by capable professionals
and strengthened by dedicated scientists, technologists and workers, it has forged
ahead. Today in India. there are 75,000 dairy cooperative societies, spread all over the
country with a membership of 10 million. The farmer in the village is now assured of a
better future thanks to these cooperatives. Recently one of the European Embassies in

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Delhi requested Amul for information on the five biggest ´companiesµ in the dairy
business. The first three are in the cooperative sector The Gujarat Cooperative Milk
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Marketing Federation (GCMMF), The Kaira District Cooperative Milk Producers· Union
’imited and The Mehsana District Cooperative Milk Producers· Union. The Kaira
District Cooperative is the second best in the country. It helped to create GCMMF, the
apex body of all cooperatives in Gujarat.

.

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cIn the forties one firm Poisons, dominated the dairy industry. Established by a rather
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enterprising gentleman who discovered that Kaira District, of what was then Bombay
Presidency, produced a good deal of milk. He established a creamery and for a while
the name Poisons was synonymous with butter much as Amul is today.
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One of Polson·s businesses was to supply milk to Bombay. As Kaira district was an
abundant source of the commodity. Poison was chosen to procure it from there. He in
turn, entered into an arrangement with a number of contractors who actually went to
the villages and collected the milk. Everyone was happy. Bombay received reasonab’y
good quality milk and Polson made a handsome profit. The contractors too managed to
earn large margins by over quoting the farmers. It was only the poor farmers who were
unhappy for it. They invested in the animal feed and fodder and they put in their labor.
Yet, it was they who received the smallest share of the Bombay consumers· rupee. The
arrangement benefited everyone but them.


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Realizing that something needed to be done about the unequal balance of wealth, they
turned to Sardar Vallabhbhai Patel for advice. Sardar Patel knew that their only chance
of earning a decent income was when they themselves gained control over the resources
they created. He also knew that the cooperatives offered them the best chance of
gaining that control. So he advised them to stop selling milk to Poison and form a
cooperative of their own. In his opinion they were to c their own dairy unit. He said.
´Throw out Poison and his milk contractorsµ. They followed his advice and the Kaira
District Cooperative Milk Producers· Union (AMU’) was born, in 1946. By good
fortune, they could get as Chairman Shri Tribhuvandas 
c an equally remarkable
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man. He understood the concept of cooperation and he understood people. His

integrity was absolute. Because the farmers of Kaira district trusted and respected
Tribhuvandas Patel, the cooperative was able to pass through some very difficult times
and eventually become a model of cooperative dairying throughout the world.

The Kaira Union began with a clear goal, to ensure that its producer members received

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the highest possible share of the consumers· rupee. This goal itself defined their
direction. The focus was on production by the masses, not mass production. By the
early ¶sixties, the modest experiment in Kaira had not only become a success, people
began to recognize it as such. Farmers came from all parts of Gujarat to learn. They
went back to their own districts and started their own cooperatives. The result -

Together. the district milk producers unions of Gujarat own the Gujarat Cooperative
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cooperative·s success, he expressed his wish to ´transplant the spirit

of Anand in many other placesµ. He wanted the Anand model of dairy development
replicated in other parts of the country. With institutions owned by rural producers,
which were sensitive to their needs and responsive to their demands, it was an ideal
tool for progress. The National Dairy Development Board was created
in1965inresponsetothiscall.

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

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The revolution started as awareness among the farmers that grew and matured into a
protest movement and the determination to liberate them. Over four decades ago, the
life of a farmer in Kaira District was very much like that of his counterpart anywhere
else in India. His income was derived almost entirely from seasonal crops. The income
from milch buffaloes was undependable. 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 and

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ghee at throwaway prices. In this situation, the one who gained was the private trader.
Gradually, the realization dawned on the farmers that the exploitation by the trader
could be checked only if marketed their milk themselves. In order to do that they
needed to form some sort of an organization. This realization is what led to the
establishment of the Kaira District Cooperative Milk Producers· Union ’imited
(popularly known as Amul) that was formally registered on December 14. 1946.
The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in June 1948. An
assured market proved a great incentive to the milk producers of the district. By the end
of 1948, more than 400 farmers joined in more village societies, and the quantity of milk
handled by one Union increased from 250 to 5.000 liters a day.

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

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The response to these provided stimulus for further growth. For example, as the
movement spread in the district, it was found that the Bombay Milk Scheme could not
absorb the extra milk collected by the Kaira Union in winter, when the production on an
average was £
times more than in summer. Thus, even by 1953, the farmer-members
had no assured market for the extra milk produced in winter. They were again forced to
sell a large surplus at low rates to the middlemen. The remedy was to set up a plant to
process milk into products like butter and milk powder. A Rs 5 million plant to
manufacture milk powder and butter was completed in 1 955. In 1958, the factory was
expanded to manufacture sweetened condensed milk. Two years later, a new wing was
added for the manufacture of 2500 tons of roller-dried baby food and 600 tons of cheese
per year, the former based on a formula developed with the assistance of Central Food
Technological Research Institute (CFTRI), Mysore. It was the first time anywhere in the
world that cheese or baby food was made from buffalo milk on a large, commercial

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scale. Another milestone was the completion of a project to manufacture balanced cattle
feed. The plant was donated by OXFAM under the Freedom from Hunger Campaign of
the FAQ.
To meet the requirement of milk powder for the Defense, the Kaira Union was asked by
the Government of India in 1963 to setup additional milk drying capacity. A new dairy
capable of producing 40 tons of milk powder and 20 tons of butter a day was speedily
completed. It was declared open in 1965. The Mogar Complex where high protein
weaning food, chocolate and malted food are being made was another initiative by
Amu’ to ensure that while it fulfilled the social responsibility to meet the demand for
liquid milk, its members were not deprived of the benefits to be had from the sale of
high value- added products.

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Traditionally daitying was a subsidiary occupation of the farmers of Kaira. However,
the contribution to the farmer·s income was not as prominent as his attachment to
dairying as a tradition handed down from one generation to the next. The milk yie’d
from animals, which were maintained mainly on the by products of the farm, was
decidedly low. That together with the lack of facilities to market even the little
produced rendered the scientific practice of animal husbandiy irrational as ve1l as
unaffordable. The return on the investment as vcl1 as the prospects of being able to
market the product looked very bleak. It was a vicious cycle reinforced by generations
of beliefs.

The Kaira Union broke the cycle by not only taking upon themselves the responsibility
of collecting the marketable surplus of milk but also provided the members with every
provision needed to enhance production. Thus the Kaira Union has full-fledged
machinery geared to provide animal health care and breeding facilities. As early as late
fifties, the Union started making high quality buffalo semen. Through village society
workers artificial insemination service was made available to the rural animal
population. The Union started its mobile veterinary services to render animal health
care at the farmers· doorstep. Probably for the first time in the country, veterinary first
aid services, by trained personnel, were made available in the villages. Fully qualified
staff mans the Union·s 16 mobile veterinary dispensaries. All the villages are visited bi-
monthly, on a predetermined day, to provide animal health care. A 24-hour Emergency

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Service is also available at a fee (Rs. 35 for members and Rs. 100 for non-members). All
the mobile veterinary vans are equipped with Radio Telephones.

The Union runs a semen production center where it maintains high pedigreed Surti
buffalo bulls; Holstein Friesian bulls, Jersey bulls and 50 per cent crossbred bulls. The
semen obtained from these bulls is used for artificial breeding of buffaloes and cows
belonging to the farmer members of the district. The artificial insemination service has
become very popular because it regulates the frequency of calving in cows and
buffaloes thus reducing their dry period. Not only that, a balanced feed concentrate is
manufactured in the Union·s Cattle Feed Plant and sold to the members through the
Societies at cost price.

Impressive though its growth. the unique feature of the Amul sagas did not lie in the
extensive use of modern technology. nor the range of its products, not even the rapid
inroads it made into the market for dairy products. The essence of the Amul story lies in
the breakthrough it achieved in modernizing the subsistence economy of a sector by
organizing the rural producers in the areas.

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Explosion of the production technology and changes in technical field is going to bring
out revolution in the industry sector which eventually gives stand to study and favors
the come backing subject i.e. production and management.
Production and operation management is planning, organizing, staffing, directing and
controlling of all the production system those portion of organization that convert
inputs into products and services. In general production system takes raw material,
personnel, machines. buildings and other resources and produce products and services.
The core of production system is its conversion subsystem where in workers; raw
materials are used to convert inputs into products and services. This production
department is at heart of the firm, as it is able to produce low cost products and
superior quality in timely manners.
Thus, there arises enormous need of giving due importance to this department as a

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whole and a strong concrete base being foundation pillars of a manufacturing

organization, if the intention is to succeed domestically and globally.

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Following arc the cooperatives that function under GCMMF.

‡ Ahmedabad Dist Coop Milk Producers· Union ’td, Ahmedabad. Soc: 433, Mems:
52,428. 2cMilk Proc: 90,000 lpd.

‡ Banaskantha Dist Coop Milk Producers· Union ’td. Palanpur. Soc: 1,130. Moms:
6
£
 Av Milk Proc: 295.000 lpd.
‡ Baroda Dist Coop Milk Producers· Union ’td. Baroda. Soc: 783, Moms: 156,691. Av
Milk Proc: 225.000 lpd.
‡ Bharuch Dist Coop Milk Producers· Union ’td. Bharuch. Soc: 289, Moms: 37.900. Av
Milk Proc: 38,000 lpd.
‡ Bhavnagar Dist Coop Milk Producers· Union ’td. Bhavnagar. Soc: 190. Mems:
25,532. A· Milk Proc: 23,000 lpd.
‡ Gandhinagar Dist Coop Milk Producers· Union ’td. Gandhinagar. Soc: 56. Mems:
13,000. Av Milk Proc: 46,500 lpd.
‡ Junagadh Dist Coop Milk Producers· Union ’td. Junagadh. Soc: 400, Moms: 41,500.
Av Milk Proc: 73.000 lpd.
‡ Kaira Dist Coop Milk Producers· Union ’td. Amul Dairy, Anand. Soc: 943, Mems:

13.280. A· Milk Proc: 740,000 lpd.
‡ Kutch Dist Coop Milk Producers· Union ’td. Kutch Dairy, Madhapar. Av Milk Proc:
25.000 lpd.
‡ Mohsana Dist Coop Milk Producers· Union ’td. Dudhsagar Dairy, Mehsana. Soc:
1.020. Moms: 292,800. Av Milk Proc: 704,402 lpd.
‡ Panchmahal Dist Coop Milk Producers· Union ’td. Godhra. Soc: 1.133, Mems:
126.510. Av Milk Proc: 112,000 lpd.
‡ Rajkot Dist Coop Milk Producers· Union ’td. Rajkot. Soc: 193. Moms: 29.620. Av
Milk Proc: 50.000 lpd.
‡ Sabarkantha Dist Coop Milk Producers· Union ’td. Sabar Dairy. Himatnagar. Soc:
1.3 15. Moms: 200,482. Av Milk Proc: 322,346 lpd.
‡ Surat Dist Coop Milk Producers· Union ’td. Sumul Dairy, Surat. Soc: 864. Moms:
160.000. Av Milk Proc: 300,000 lpd.
‡ Surondranagar Dist Coop Milk Producers· Union ’td. Surendranagar. Soc: 486.
Moms: 31,000. Av Milk Proc: 30.000 lpd.

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‡ Valsad Dist Coop Milk Producers· Union ’td. Vasudhara Dairy, Valsad. Soc: 348,
Mems: 35,900. Av Milk Proc: 74,400 lpd.

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Plant layout is the overall arrangement of the machine tools, handling equipments.
storeroom and other various accessories required for facilitating production in a factory.
These arrangements are pre-planned with the results that the building has been
constructed to fit a layout of a given process.
AMU’ plant is indigenously worked out with facilitation of various production
processes and production of multi products under one plant. The total plot is nearly
about 2.27 kms. Separate buildings are provided with required arrangements of
machine tools handling and computers connection through the control room to fit for
varying product- manufacturing departments.
The plant is engaged in producing milk, ice creams, milk powder and ghee. Entire
department is uniquely provided with facilities for the processing each product. There
are 4 production departments and packaging departments pertaining to each product
respectively.
Thus, plant layout encompasses all production and service facilities and provides for
the most effective utilization of the men, materials and machines constituting the
process. It is the master blue print of coordinating all operations.

A good layout results in elimination or minimization of accidents and hazards and cost
while increases the output. Thus a good layout specifically is observed to be beneficial
on the following grounds:

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‡ Fewer material handling will be provided manufacturing units cost will be
cover.
‡ Bottlenecking of production will be eliminated
‡ Total item in process will be less
‡ Specialization of operations is facilitated
‡ ’ess inspection will be required
Production control will be easier to achieve
‡ Plant investment can be held to the necessary minimum
‡ Plant and equipment obso’escence may be less
‡ Wastage space will be eliminated
Thus, a true beneficiary is provided to the plant through good and sound
planning for plant layout.

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Amul·s only source of raw material is Village Milk societies. Milk is brought
from such village milk societies every morning and evening. This milk is then
sent to the dairy plant. In the dairy plant the milk is processed i.e. it is made free
from germs.

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The entire process of milk can be divided into following steps:
Steps:
Milk Processing  cc

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Collection of Raw-Milk


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Purchasing And Standardizing Process

Separation Process

Quality Check

Packaging Process


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Cold Storage

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Raw milk is collected from different co-operative societies of Gujarat. About 122000
liters of raw milk is collected per day. Before this milk is sent to the laboratory for
testing the FAT & SNF· proportion. the milk is separated from the raw milk. The milk is
taken from the chilling centers to Ahmedabad with the help of trucks.
After collecting the samples of milk, they are taken to the laboratory ,where two types
of tests are conducted.
‡ Electronic milk test
‡ Methyline blue reduction test
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Before pasteurizing the milk the samples are taken to the laboratory. In the laboratory
with the help of machine called electronic milk tester, the proportion of SNF & FAT is
checked with phosphate solution. When the colour of the milk becomes yellow, it is sent
for pasteurisation.

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Another test, which is taken in the laboratory, j called Methyline blue reduction test.
This test is conducted for checking for how long the milk will remain fresh. To check
this, 10 ml of milk is taken and I ml of methyline blue solution is added to it. It is then
kept under water at 57-degree C. After one hour, if the solution losses its colour than it
is called raw milk. If the solution remains the same even after 5 hours than it is
considered as fresh mi’k, which remains constant for a long period of time.
The dairy fixes the proportion of FAT & SAF.

MI’K SNF .c

Buffalo 9% 6%

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Cow 
 4.5%

After laboratory gives green signal and confirming the raw milk at the reception dock is
brought in to the house connected with the pump is sent to the milk processing plant.
This is than chilled below 4 degree C. and then stored in milk silos. After that milk is
processed which has two steps i.e. pasteurising and standardizing.

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After collecting and checking and conducting laboratory tests, the pasteurising
process is conducted. To pasteurized the milk means to kill all the germs in the milk by
a particular method which was invented by a scientist called James Pasteur and so the
name pasteurisation.
In pasteurizing, the milk is first heated at 72 C to 76 C for 15 seconds and then it is
immediately cooled below 4 C. By this method they destroy the pathogenic bacteria
present in the raw mi’k. But if the right degree of temperature is not provided there are
chances that the milk might still contain germs. After this process some milk goes to
separator machine and remaining is proportionately sent for standardization.

Standardization process is known such as it bifurcates the milk in 3 categories varying

according to that FAT & SNF contents. The equipment named OSTA. Auto
standardization adjusts the fat directly. The computer is just ordered whether gold or
standard milk is to be rationed and the same will be received with appropriate contents.

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Separator machine separates two kinds of products, skimmed milk & cream, through
channels. There are 100 disks fixed in separator machines, which revolve at 5000 rpm
(revolution per minute). It is taken to the tanks, which has the capacity of 20000 litres.
Whenever the milk is needed from the tank, it is tested in the laboratory and the deficit
proportion fat is added by mixing cream. This process continues for 24 hours.

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Pasteurized milk is sent for a quality check in the Quality Assurance laboratory of the
dairy plant. Within 14 seconds FAT and SNF proportion is received regarding 30 lack

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litres of milk. The total investment put into the lab by the Dairy plant is of Rs. 6 crores.
This laboratory only checks and analyses the powder, milk and ghee. There is a
separate ice-cream analysing laboratory.
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After this the milk is sent for packing to the milk packing station in the dairy plant. In
the milk packaging station there are huge pipelines and behind each of them there is
polylill machine from which the material to pack milk comes out. There are 12 such
polyfill machines in the packaging station from which the materials to pack milk comes
out. From each of these 12 machines 100 pouches are packed in one single minute.
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Then the milk is sent to the cold storage of the dairy where the milk is stored until it is
dispatched. Here the milk is stored at temperature ranging from
C to 10 C, it is
maintained with the help of exhaust fans having silicon chips. About 40000 litres of
milk is dispatched from the cold storage of the dairy plant everyday. The damaged
pouches are kept a side and the milk is once again put to the tank.
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For converting milk powder first of all water content is evaporated in condensing plant.
By this process they get condensed milk, it is used as a raw material. There after the
milk is sent to the drying plant. The spray drying plant is huge in size with a height of
70 feet. The plant is divided into many floors to enable easy use of the plant. First of all
the raw material i.e. condensed milk is put into the first floor of the plant along with air
at 200° C. By this process the remaining water, which the condensed milk might have
retained is also evaporated and milk comes as powder but this is not the last stage

.
This powder is again put in to a machine called milk calendaria. where it is turned in to
real milk powder. Its capacity is 1000 litres per 15 minutes. Then again this milk powder
is put into a Dense Waise Vessel. Here the lumps are removed and uniform milk
powder is sent tip. After processing the powder is sent for quality checking at quality
assurance laboratory. After the quality confirms, this milk powder is differentiated, by
adding different flavors to them like elaichi, chocolate & sugar free milk powder.
Thereafter they are packed in tins and boxes. Afterwards it is stored at storage
department. c

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Gujarat Cooperative Milk Marketing Federation (GCMMF) is the India·s largest food
product 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
c
interest of consumers by providing quality products that are good value for money.

Members 12 district cooperative milk producers· Union

No. of Producer Members 2.36 million

No. of Village Societies 11.333

Total Milk handling capacity 6.9 million litres per day

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Milk collection (Total ³ 2003-04) 1 .81 billion litres

d ccollection (Daily Average 2003-04) 4.97 million litres

Milk Drying Capacity 511 metric Tons per day

Cattle feed manufacturing Capacity 2340 MTs per day

c Sales Turnover Rs (million) US $ (in million)

c 1996-97 

 


c 1997-98 18840 



c 1998-99 22192 493

c 1999-00 22185 493
c 2000-01 22588 500
c 200 1-02 £
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c 2002-03 £ 



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2003-04 28941 616
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‡ Amul Butter
‡ Amul ’ite ’ow Fat Breadspread
‡ Amul Cooking Butter
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‡ Amul Pasteurized Processed Cheddar Cheese
‡ Amul Processed Cheese Spread
‡ Amul Pizza (Mozarella) Cheese
‡ Amul Shredded gj

Cheese
‡ Amul Emmental Cheese
‡ Amul Gouda Cheese

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‡ Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned

‡ Utterly Delicious Pizza
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‡ Amul Shrikhand (Mango. Saffron, Almond Pistachio. Cardamom)
‡ Amu’ Amrakhand
‡ Amul Mithaee Gulabjamuns
‡ Amul Mithaee Gulabjamun Mix
‡ Amul Mithaee Kulfi Mix
‡ Avsar’adoos
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‡ Amul Shakti 3% fat Milk
‡ Amul Taaza 1.5% fat Milk
‡ Amul Gold 4.5% fat Milk
‡ Amul ’ite Slim-n-Trim Milk 0% fat milk
‡ Amul Shakti Toned Milk
‡ Amul Fresh Cream
‡ Amul Snowcap Softy Mix
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‡ Amul Pure Ghee
‡ Sagar Pure Ghee
‡ Amul Cow Ghee
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‡ Amul Infant Milk Formula 1 (0-6 months)
‡ Amul Infant Milk Formula 2 (6 months above)
‡ Amulspray Infant Milk Food
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‡ Amul Full Cream Milk Powder
‡ Amulya Dairy Whitener
‡ Sagar Skimmed Milk Powder
‡ Sagar Tea and Coffee Whitener
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‡ Amul Mithaimate Sweetened Condensed Milk
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‡ Amul Taaza Toned Milk 3% fat
‡ Amul Gold Full Cream Milk 6% fat
‡ Amul Shakti Standardized Milk 
fat
‡ Amul Slim & Trim Double Toned Milk 
fat
‡ Amul Saathi Skimmed Milk 0% fat
‡ Amul Cow Milk
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‡ Yogi Sweetened Flavored Dahi (Dessert)
‡ Amul Masti Dahi (fresh curd)
‡ Amul Butter Milk
‡ Amul ’assee
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‡ Royal Treat Range (Rajbhog, Cappuchino. Chocochips, Butterscotch, Tutti
Fmtti)
‡ Nut-o-Mania Range(Kaju Drakshi, Kesar Pista. Roasted Almond, Kesar
Carnival, Badshahi Badam Kulli, Shista Pista Kulfi)
‡ UIsav Range (Anjir. Roasted Almond)
‡ Simply Delicious Range (Vanilla. Strawberry, Pineapple, Rose. Chocolate)
‡ Nature·s 
 c(Alphanso Mango. Fresh ’itchi, Anjir, Fresh Strawberry, Black
Currant)

‡ Sundae Range (Mango. Black Currant, Chocolate. Strawberry)

‡ Millennium Ice cream (Cheese with Almonds, Dates with Honey)
‡ Milk Bars (Chocobar. Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi
Pista Kulfi. Mawa Malai Kulfi, Green Pista Kulfi)
‡ Cool Candies (Orange. Mango)
‡ Cassatta
‡ Tricone Cones (Butterscotch, Chocolate)
‡ Megabite Almond Cone
‡ Frostik 3 layer chocolate Bar
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‡ Fundoo Range exclusively for kids

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‡ SlimScoop Fat Free Frozen Dessert (Vanilla. Banana. Mango. Pineapple)

‡ Health lsabcool


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‡ Amul Milk Chocolate
‡ Amul Fruit & Nut Chocolate
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‡ Nutramul Malted Milk Food
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‡ Arnul Kool Flavoured Milk
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‡ Amul Shakti White Milk Food
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‡ Masti Tomato Soup
‡ Masti Hot & Sour Soup
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‡ Amul Ganthiya

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Organization Structure is divided into two parts:
‡ External Organization Structure
‡ Internal Organization Structure
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External Organization Structure is the organization structure that affects the
organization from the out side.

State ’evel Marketing Federation

District Milk Product Union ’td.

Village Milk Product Union ’td.

Villagers

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As we know. GCMMF is unit of Gujarat Milk Marketing Federation, which is a coo

perative organization. The villagers of more than 10000 villages of Gujarat are the bases
of this structure. They all make village milk producers union. district level milk
producers union and then a state level marketing federation is established. The
structure is line relationship. which provides easy way to operation. It also provides
better communication between two stages.

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The following is internal organisation chart of Amul:

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Chairman

Managing Director

General Manager

Ass. General Manager

Finance Production Marketing Sales & Purchase Personnel

Dept. Dept. Dept. Dept. Dept.

Senior Senior Senior Senior Senior

Manager Manager Manager Manager Manager

Finance Production Marketing Sales Personnel

Manager Manager Manager Manager Manager

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Accountant Officer Marketing Officer P.R.F.

Executive

Officers Supervisor F.S.R. Salesmen Executive

A systematic & we’’-defined organizational structure plays a vital role & provides
accurate information to the top-level management. An organisation structure defines a
clear-cut line of authorities & responsibilities among the employees of GCMMF. The
Organisation structure of Amul is well-alTanged structure. At a glance a person can
completely come to know about the organization structure.

Amul is leaded by the director under him five branches viz. Factory. Marketing,
Accounts, Purchase,Human Resources Department.

Factory department has a separate general manager under him there are six braches uj

Production, Stores, Distribution. Cold Storage. Quality, and Deep-freezing. This
department takes care of the factory work.

Marketing department has regional senior marketing manager and under him there is a
regional manager. This department takes care of the marketing aspects of Amul.
Accounts department takes care regarding accounts i.e. day-to-day work. Under the
accountant there is one clerk.Purchase department takes care regarding the purchase of
raw materials .

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GCMMF D the first co-operative to be set up under operation flood. GCMMF·S dairy plant
commissioned in 1994 is one of the most modem and largest plants. It can handle up to I million
litres of milk per day. The plant also has facilities for pasteurizing and packing. It was funded
by NDDB. GCMMF·s milk is sold under its flagship brand Amt’l.
GCMMF was formed in 1973. As an apex marketing federation of 12 district milk unions of
Gujarat to operate own marketing and distribution network in India and abroad.
GCMMF sales turnover grew by 21% Rs. 

billion to Rs. 18.8 billion including consignment
sales of Rs. 3.7 billion sale of Amul milk in Gujarat and Maharastra increased by 11% and 16%
respectively. Dairy product turnover registered a 19% growth. Amul butter registered 18%
growth. The sale of Amul & Sagar Ghee increased by 47%. Amul Cheese registered 60% value
growth.
GCMMF·s sales to the defense services were Rs.233 million during the year. were mainly to

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Burma. Uganda and West Africa. The company plans to expand its export markets in Saudi
Arabia and other Middle East countries.
During 1999, launching it in 8 states and 2 union territories extended the Amul ice-cream brand
franchise. Amul ice creams have become India·s 2nd largest brand. Recently it has commissioned
a dairy at Kolkata.
New products launched during the early 2000 were Amul Pizza. Cheese and Amul slice cheese,
Amul paneer and Amul Mithaee range. Safal mango drink has been launched by Strategic

cwith Safal (A union of NDDB). The product range to be launched under the Safal
brand will include fruit drinks, squashes, pickles, jams, and ketchup and mango pulp.

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Market segment is a very important function for the market department of the GCMMF,
because the market consists of buyers different in many ways. They are different in
their wants resources, locating buying practices. Because buyers have unique needs and
wants, each buyer is potentially separate market.
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Under these variables, GCMMF has divided market into different geographic units such
as region, states, cities etc. GCMMF sells its products by geographic segment action like
in the north where production of milk is very high the sale of Amul·s product is not
much. But in the western region it is high. GCMMF identifies this kind of variables and
deals with it.
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Under this variable GCMMF has divided market into several segments such as age,
gender, family. size, income, occupation etc. For each group GCMMF marketing
strategy is different. In milk Amul targets all the class where as in the other products
like butter. ghee, ice-cream etc. it targets to the middle and higher middle class.

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Most producers work with marketing intermediaries to bring their products to
market. The marketing intermediaries make up a marketing channel also called
distribution cannel. Distribution channels are sets of interdependent organizations
involved in the process of making a product or service available for use or
consumption.
The Head Office of GCMMF is located at Anand. The entire market is divided in

zones. The zonal offices are located at Ahmedabad, Mumbai, New Delhi, Kolkata and
Chennai. Moreover there arc 49 Depots located across the cowflry and GCMMF caters
to
13 Export markets.

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A zero level of channel also called a direct marketing channel consists of a manufacturer
selling directly to the final customers. A one level channel; contains one selling
intermediary such as retailer to the final customers. A two level channel two
intermediaries are typically wholesaler and retailer. A three level channel are typically
wholesaler, retai’er and jobber in between.
GCMMF has an excellent distribution, It is its distribution channel, which has made it
so popular. GCMMF·s products like milk and milk products are perishable. It becomes
that much important for them to have a good distribution.


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We can see from above figure that GCMMF distribution channel is simple and clear.
The products change hands for three times before it reaches to the final consumer. First
of all the products are stored at the Agents end who are mere facilitators in the network.
Then the products are sold to wholesale dealers who then sell to retailers and then the
product finally reaches the consumers.
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Amul has come out with a unique concept of Amul Parlours. They have classified them
under four types namely:
‡ Center for excellence
‡ On the Move
‡ Amu’ Parlours ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc
‡ Amul Preferred Outlets


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cThese Amul Parlours are specifically at a place, which has a class of
excellence of its own. We can find such parlors at the Infosys, IIMA, NID Ahmedabad etc.
cthe Move: These parlors are at the railway stations and at different state bus depots across
different cities.
Amul Parlours: These parlors can be seen at different gardens across different cities. These are
fully owned by Amul.
Amul Preferred Outlets: These are the private shops that keep the entire of product range of
Amul. They also agree not to keep any competitor brands in the outlets. They can keep other
brands that are in the non-competitor category.
Amul has more than 200 such outlets right now. It wants to have 1,00.000 parlors by the end of
the year 2010.
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The Indian market is dominated by a large number of small local and regional players. There
are an estimated 
manufacturers in the organized segment, which accounts for  
of
sa’es and about 1000 units in the unorganized segments of the market. In the organized
segment the significant brands are Kwality Walls . Vadilal, Amul, Havmor, Mother dairy and
Baskins & Robbins. GCMMF is facing very tough competition from both in and outside India.
Amul combats competition from its competitors by providing quality products at a price which

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its customers value. Along with good quality products and reasonable price the packaging is
also very good. Most of its products are available in many flavors. Excel’ent

advertising backs its products and helps GCMMF (AMU’) to leave its competitors a
tough time. Also Amul has come out with Amul Parlours to cater to various segments
of customers. Amul has a very strong Brand Image in the Domestic market. Many
products are exported by GCMMF.
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GCMMF is India·s largest exporter of Dairy Products. It has been accorded a ´Trading
Houseµ 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:


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‡ Amul Pure Ghee
‡ Amul Butter
‡ Amul Shrikhand
‡ Amul Mithaee Gulabjarnun
‡ Nutramul Brown Beverage
‡ Amulspray Infant Milk Food
‡ Amul Cheese
‡ Amul Malai Paneer
‡ Amul UHT Milk (’ong ’ife)
‡ Amul Fresh Cream
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‡ Amu’ Skimmed Milk Powder
‡ Amul Full Cream Milk Powder

The products are exported to 18 countries namely, USA. Kuwait. Qatar, UAE, Yemen,
Bahrain, Muscat, Saudi Arabia. Tanzania, Madagascar, Sri ’anka, Singapore, Nepal,
Bangladesh. Nepal Thailand and Australia.

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Amul has two agencies that look after its entire range of products namely FCB Ulka
and Da Cunha.
FCB Ulka looks after a broad range of products namely, Amul ’ite Breadspread. Amul
Shrikhand, Amul Chocolates, Amul Pancer. Amul SnowCap Softy Mix Ice cream,
Amul/Sagar Ghee. Amul Infant Milk Formula I & 2, Sagar Tea and Coffee whitener,
Amul Spray Infant Milk Food, Arnul Mithaee, Amul Gulab Jamun, Amulya Dairy

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Whitener, Mithaimate Sweetened Condensed Milk. Amul Ice cream, Sagar Skimmed
Milk Powder and Amul Whole milk Powder.
Da Cunha looks after the Amul butter. Da Cunha also prepares the very popular Amul
butter billboard campaigns. which we see at various locations. Over and above the
Arnul butter, Da Cunha also looks after the Amul Cheese, Cheese spread, Gouda
Cheese, Emmental Cheese, Masti Dahi and Buttermilk, Amul Slim-n-Trim, Amul Taaza
and Amul Gold (all different brands of milk), Amul Fresh Cream. Amul Chocolate
Milk, Amul Fresh Milk and Nutramul.
FCB Ulka also looks after the corporate campaign.

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GCMMF (AMU’) has the largest distribution network for any FMCG company. It has
nearly 50 sales offices spread all over the country, more than 3,000 wholesale dealers
and more than 5,00,000 retailers.

AMU’ is also the largest exporter of dairy products in the country. AMU’ is available
today in over 40 countries of the world. AMU’ is exporting a wide variety of products
which include Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk,
Clarified Butter (Ghee) and Indigenous Sweets. The major markets are USA, West
Indies, and countries in Africa, the Gulf Region, and [SAARC]neighbours, Singapore,
The Philippines, Thailand, Japan and China.

In September 2007, Amul emerged as the leading Indian brand according to a survey by
Synovate to find out Asia's top 1000 Brands.

The effects of Operation Flood Programme are more appraised by the World Bank in its
recent evaluation report. It has been proved that an investment of Rs. 20 billion over 20
years under Operation Flood Programme in 70s & 80s has contributed in increase of
India·s milk production by 40 Million Metric Tonne (MMT) i.e. from about 20 MMT in
pre- Operation Flood period to more than 60 MMT at the end of Operation flood
Programme. Thus, an incremental return of Rs. 400 billion annually have been
generated by an investment of Rs. 20 billion over a period of 20 years. This has been the
most beneficial project funded by the World Bank anywhere in the World. One can
continue to see the effect of these efforts as India·s milk production continues to
increase and now stands at 90 MMT. Despite this four-fold increase in milk production,
there has not been drop in the prices of milk during the period and has continued to
grow.

Due to this movement, the country·s milk production tripled between the years 1971 to
1996. Similarly, the per capita milk consumption doubled from 111 gms per day in 1973
to 222 gms per day in 2000. Thus, these cooperatives have not just been instrumental in
economic development of the rural society of India but it also has provided vital

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ingredient for improving health & nutritional requirement of the Indian society. Very
few industries of India have such parallels of development encompassing such a large
population.

These dairy cooperatives have been responsible in uplifting the social & economic
status of the women folk in particular as women are basically involved in dairying
while the men are busy with their agriculture. This has also provided a definite source
of income to the women leading to their economic emancipation.

The three-tier ¶Amul Model· has been instrumental in bringing about the White
Revolution in the country.

THANK
YOU
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