Project Report

ON

RESEARCH REPORT ON SALES &

DISTRIBUTION OF DAIRY INDUSTURY
Submitted for the partial fulfilment for the award
Of
Bachelor of Business Administration from
Chaudhary Charan Singh University, Meerut
2012-15
Submitted To:
SHANTI INSTITUTE OF TECHNOLOGY MEERUT

Under The supervision of: -

Submitted By:-

Mr. RAHUL SHARMA

(H.O.D, of BBA, Dept )

RUPAL POONIA
BBA VI SEM
Roll No. 3396534

DEPARTMENT OF MANAGEMENT
SHANTI INSTITUTE OF TECHNOLOGY MEERUT
BATCH-2012-15

DECLARATION

I Rupal Poonia Student of BBA VI Sem, SIT Meerut hereby declare that the project
report entitled Comparative Study into Sales & distribution of

AMUL

DAIRY & PARAG DAIRY Project Guide Mr. Rahul Sharma H.O.D., BBA
Department , SIT Meerut is an original and authentic work done by me and is based
upon the study conducted by me.

This project report was undertaken as a part of the M.B.A. Program of UPTU, Lucknow.

RUPAL POONIA
BBA VI SEM
Roll No. 3396534

ACKNOWLEDGEMENT
I would like to express my heartfelt gratitude toward management of AMUL, who gave
me permission to do my research project .

I am deeply thankful to SIT for permitting me to do Grand Research Project and

encouraging me to complete successfully. I would also like to thanks Project Guide
Mr. Rahul Sharma H.O.D., BBA Department , SIT Meerut, for her keen interest,
valuable guidance, inspiration, immense zeal for hard work and positive outlook towards
the subject. Their intellect, persuasiveness and insistence on a good work were a guiding
light in the darkness of my ignorance.

I would also like to express my sincere thanks to our Director Dr. Satnendra Kumar
who have helped me in carrying out my Research project. Lastly, I would like thank all
the persons who have helped me directly or indirectly in completing my project
successfully.

PREFACE
Project report is a part of BBA Program, which is very helpful in getting practical
knowledge in this globalization world. Now-a-days only theoretical knowledge is not
enough to success in life but most important we must have practical knowledge. With the
help of this project, I came to know how to apply theoretical knowledge in practice.

Main purpose of this project is to have awareness about industrial environment and to
know about different functions of an organization like Distribution, Production and
Marketing.

I consider myself privileged that I got a chance to know insights of these reputed
company and can upgrade my knowledge related to practical aspect of business world
which is very helpful in my career building.

CONTENTS
Executive Summary

Introduction to the Indian Dairy Industry

Company Profile of Amul

30

Company Profile of Parag Dairy

72

Company Profile of Mother Dairy

77

Objective of the study

82

Significance of the study

83

Research Methodology

84

Analytical Tools

85

Finding ,and Data interpretation and Analysis

87

Limitations of the study

88

Suggestions and Conclusion

97

Annexure

100

a) Questionnaire

101

b) Bibliography

107

EXECUTIVE SUMMARY
In todays competitive world while entering in the market it is very necessary to have
good knowledge of the potential of a particular market. The growth of a company is
invariably determined not just by its strategy, but on how it responds to the challenges
it encounters. Over the decades many Dairy companies have successfully countered
several challenges that have come its way with innovative responses and continuous
improvement, which have enabled them to remain stable and even convert some of
their challenges into opportunities. It is the culture of endurance that has accorded
Industry the insight and focus to deal with the current economic environment.
Drawing from its inner strength and beliefs, Dairy Companies responded by
launching several initiatives across all their operations in various geographies that are
helping the group achieve growth even in current times. It is also this very strategic
culture that will propel Dairy Industry to continue on its growth trajectory in years to
come.
The report provides a comprehensive insight into the company and also about the
companys SWOT analysis. This report mainly studies in detail the various product
mix strategies of the company and also focuses on the segmentation of both company
based and industry based and helps in analyzing the companys competitive
advantage and the reason behind its success.

INDIAN DAIRY
INDUSTRY

INTRODUCTION TO THE INDIAN DAIRY

INDUSTRY
The world's biggest dairy producing country is growing fast and looking to become
an export powerhouse despite major quality problems...
A Note to our Readers: the following information on India's dairy sector is reproduced
from India Infoline.com. India is the world's largest milk producing country and is
growing fast, with an eye toward becoming a major dairy exporter. This article is helpful
reading for anyone interested better understanding.

Consumer Habits and Practices

Milk has been an integral part of Indian food for centuries. The per capita
availability of milk in India has grown from 172 gm per person per day in 1972 to 182gm
in 1992 and 203 gm in 1998-99.This is expected to increase to 212gms for 2008.
However a large part of the population cannot afford milk. At this per capita consumption
it is below the world average of 285 gm and even less than 220 gm recommended by the
Nutritional Advisory Committee of the Indian Council of Medical Research.

There are regional disparities in production and consumption also. The per capita
availability in the north is 278 gm, west 174 gm, south 148 gm and in the east only 93 gm
per person per day. This disparity is due to concentration of milk production in some
pockets and high cost of transportation. Also the output of milk in cereal growing areas is
much higher than
elsewhere which can be attributed to abundant availability of fodder, crop residues, etc
which have a high food value for milky animals.
In India about 46 per cent of the total milk produced is consumed in liquid form
and 47 per cent is converted into traditional products like cottage butter, ghee, paneer,
khoya, curd, malai, etc. Only 7 per cent of the milk goes into the production of western
products like milk powders, processed butter and processed cheese. The remaining 54%
is utilized for conversion to milk products. Among the milk products manufactured by the
organized sector some of the prominent ones are ghee, butter, cheese, ice creams, milk
powders, malted milk food, condensed milk infants foods etc. Of these ghee alone
accounts for 85%.
It is estimated that around 20% of the total milk produced in the country is
consumed at producer-household level and remaining is marketed through various
cooperatives, private dairies and vendors. Also of the total produce more than 50% is
procured by cooperatives and other private dairies.
While for cooperatives of the total milk procured 60% is consumed in fluid form and rest
is used for manufacturing processed value added dairy products; for private dairies only
45% is marketed in fluid form and rest is processed into value added dairy products like
ghee, makhan etc.

Still, several consumers in urban areas prefer to buy loose milk from vendors due
to the strong perception that loose milk is fresh. Also, the current level of processing and
packaging capacity limits the availability of packaged milk.
The preferred dairy animal in India is buffalo unlike the majority of the world
market, which is dominated by cow milk. As high as 98% of milk is produced in rural
India, which caters to 72% of the total population, whereas the urban sector with 28%
population consumes 56% of total milk produced. Even in urban India, as high as 83% of
the consumed milk comes from the unorganized traditional sector.
Presently only 12% of the milk market is represented by packaged and branded
pasteurized milk, valued at about Rs.8, 000 crores. Quality of milk sold by unorganized
sector however is inconsistent and so is the price across the season in local areas. Also
these vendors add water and caustic soda, which makes the milk unhygienic.

Market Size and Growth

Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued
at Rs470bn. The market is currently growing at round 4% pa in volume terms. The milk
surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat,
Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk
products is concentrated in these milk surplus States. The top 6 states viz. Uttar Pradesh,
Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu and Gujarat together account for 58%
of national production.

Milk production grew by a mere 1% pa between 1947 and 1970. Since the early
70's, under Operation Flood, production growth increased significantly averaging over
5% pa.
About 75% of milk is consumed at the household level which is not a part of
commercial dairy industry. Loose milk has a larger market in India as it is perceived to be
fresh by most consumers. In reality however, it poses a higher risk of adulteration and
contamination.
The production of milk products, i.e. milk products including infant milk food,
malted food, condensed milk & cheese stood at 3.07 lakh MT in 2008. Production of milk
powder including infant milk-food has risen to 2.25 lakh MT in 2008, whereas that of
malted food is at 65000 MT. Cheese and condensed milk production stands at 5000 and
11000 MT respectively in the same year.

Major Players
The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative
Milk Marketing Federation (GCMMF) is the largest player. All other local dairy
cooperatives have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in
Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, etc). Other
private players include J K Dairy, Heritage Foods, Indiana Dairy, Dairy Specialties, etc.
Amrut Industries, once a leading player in the sector has turned bankrupt and is facing
liquidation.

10

Packaging Technology
Milk was initially sold door-to-door by the local milkman. When the dairy cooperatives initially started marketing branded milk, it was sold in glass bottles sealed with
foil. Over the years, several developments in packaging media have taken place. In the
early 80's, plastic pouches replaced the bottles. Plastic pouches made transportation and
storage very convenient, besides reducing costs. Milk packed in plastic pouches/bottles
have a shelf life of just 1-2 days, that too only if refrigerated. In 1996, Tetra Packs were
introduced in India. Tetra Packs are aseptic laminate packs made of aluminum, paper,
board and plastic. Milk stored in tetra packs
and treated under Ultra High Temperature (UHT) technique can be stored for four months
without refrigeration. Most of the dairy co-operatives in Andhra Pradesh, Tamil Nadu,
Punjab
and Rajasthan sell milk in tetra packs. However tetra packed milk is costlier by Rs5-7
compared to plastic pouches. In 2008-00 Nestle launched its UHT milk. Amul too
relaunched its Amul Taaza brand of UHT milk. The UHT milk market is expected to
grow at a rate of more than 10-12% in coming years.

11

Regulatory Framework
The dairy industry was de-licensed in 1991 with a view to encourage private
investment and flow of capital and new technology in the segment. Although de-licensing
attracted a large number of players, concerns on issues like excess capacity, sale of
contaminated/ substandard quality of milk etc induced the Government to promulgate the
MMPO (Milk and Milk Products Order) in 2008. Milk and Milk Products Order
(MMPO) regulates milk and milk products production in the country. The order requires
no permission for units handling less than 10,000 litres of liquid milk per day or milk
solids up to 500 TPA. MMPO prescribes State registration to plants producing between
10,000 to 75,000 litres of milk per day or manufacturing milk products containing
between 500 to 3,750 tones of milk solids per year. Plants producing over 75,000 litres
per day or more than 3,750 tones per year of milk solids have to be registered with the
Central Government. The stringent regulations, government controls and licensing
requirements for new capacities have restricted large Indian and MNC players from
making significant investments in this product category. Most of the private sector
players have restricted themselves to manufacture of value added milk products like baby
food, dairy whiteners, condensed milk etc.
All the milk products except malted foods are covered in the category of
industries for which foreign equity participation up to 51% is automatically allowed. Ice
cream, which was
earlier reserved for manufacturing in the small-scale sector, has now been de-reserved. As
such, no license is required for setting up of large-scale production facilities for
manufacture of ice cream.

12

Subsequent to de-canalization, exports of some milk based products are freely

allowed provided these units comply with the compulsory inspection requirements of
concerned agencies like: National Dairy Development Board, Export Inspection Council
etc. Bureau of Indian standards has prescribed the necessary standards for almost all
milk-based products, which are to be adhered to by the industry.

Proposal to Amend the MMPO

A proposal to raise the exemption limit for compulsory registration of dairy
plants, from the present 10,000 litres a day to 20,000 litres, is being considered by the
Animal Husbandry Department. The 75,000-litre limit is likely to be raised either to
100,000 litres or 125,000 litres in the amended order. The new order would also do away
with the provision for re-registration.

Penetration of milk products

Western table spreads such as butter, margarine and jams are not very popular in
India. All India penetration of butter/ margarine is only 4%. This is also largely
represented by urban areas, where penetration is higher at 9%. In rural areas, butter/
margarine have penetrated in 2.1% of households only. The use of these products in the
large metros is higher, with penetration at 15%.

13

Penetration of cheese is almost nil in rural areas and negligible in the urban areas.
Per capita consumption even among the cheese-consuming households is a poor 2.4kg pa
as compared to over 20kg in USA. The lower penetration is due to peculiar food habits,
relatively expensive products and also non-availability in many parts of the country.
Butter, margarine and cheese products are mainly manufactured by organized sector.
Similarly, penetration of ghee is highest in medium sized towns at 37.2%
compared to 31.7% in all urban areas and 21.3% in all rural areas. The all India
penetration of ghee is 24.1%. In relative terms, penetration of ghee is significantly higher
in North and West, which are milk surplus regions. North accounts for 57% of ghee
consumption and West for 23%, South & East together account for the balance 20%. A
large part of ghee is made at home and by small/ cottage industry from milk. The relative
share of branded products in this category is very low at around 1-2%.
Milk powder and condensed milk have not been able to garner any significant
consumer acceptance in India as indicated by a very low 4.7% penetration. The
penetration is higher at
8.1% in urban areas and lower at 3.5% in rural areas. Within urban areas, it is relatively
higher in medium sized towns at 8.5% compared to 7.7% in large metros.

14

Export Potential
India has the potential to become one of the leading players in milk and milk
product exports. Location advantage: India is located amidst major milk deficit countries
in Asia and Africa. Major importers of milk and milk products are Bangladesh, China,
Hong Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other
gulf countries, all located close to India.
The major export products: -

The products of Amul is being exported in the 40

countries of the world . Many of the products are now available in the U.S.A , Gulf
countries and Singapore. Amul products are being exported to the Singapore since last
three decades. Undoubtedly, Amul is the preferred taste of Indians in the Gulf countries.

Low Cost of Production:

Milk production is scale insensitive and labour intensive. Due to low labour cost, cost of
production of milk is significantly lower in India.
Concerns in export competitiveness are Quality: Significant investment has to be
made in milk procurement, equipments, chilling and refrigeration facilities. Also, training
has to be imparted to improve the quality to bring it up to international standards.

Productivity: To have an exportable surplus in the long-term and also to maintain cost
competitiveness, it is imperative to improve productivity of Indian cattle.
There is a vast market for the export of traditional milk products such as ghee,
paneer, shrikhand, rasagulas and other ethnic sweets to the large number of Indians
scattered all over the world.

15

India's exports of milk products

Description

2009-10

2010-11

2013-14

(Quantity, M T.: Value, Rs.

million)

Skimmedmilk powder
Milk and Milk Food for
babies
Milk cream
Sweetened condensed milk
Whey
Ghee/Butter/Butter oil
Cheese
(a) Fresh
(b) Processed
(c) Other
TOTAL

8.27

Value
3,35.32
2.019

Quantity
282.70
111.37

Value
19.64
4.27

Quantity
5.00
11.00

Value
0.375
2.02

332.23
41.73
78.46
7,895.08

28.04
2.84
3.75
431.1

1.00
9.22
11.50
299.97

0.084
0.97
1.01
19.2

60.39
6.00
4,352.08

7.22
0.342
2,38.95

0.10
5.67
66.64
-

0.013
1.20
8.35
8,72.7

2.1
36.78
-

0.375
0.69
52.4

22.10
24.84
-

2.19
4.55
2,55.6

Quantity
4,638.62

Indian (traditional) Milk Products

There are a large variety of traditional Indian milk products such as
Makkhan - unsalted butter. Ghee - butter oil prepared by heat clarification, for longer
shelf life. Kheer - a sweet mix of boiled milk, sugar and rice. Basundi - milk and sugar
boiled down till it thickens. Rabri - sweetened cream. Dahi - a type of curd. Lassi - curd
mixed with water and sugar/ salt. Channa/Paneer - milk mixed with lactic acid to

16

coagulate. Khoa - evaporated milk, used as a base to produce sweet meats. The market
for indigenous based milk food products is difficult to estimate as most of these products
are manufactured at home or in small cottage industries catering to local areas.
Consumers while purchasing dairy products look for freshness, quality, taste and texture,
variety and convenience. Products like Dahi and sweets like Kheer, Basundi, Rabri are
perishable products with a shelf life of less than a day. These products are therefore
manufactured and sold by local milk and sweet shops. There are several such small shops
within the vicinity of residential areas. Consumer loyalty is built by consistent quality,
taste and freshness. There are several sweetmeat shops, which have built a strong brand
franchise, and have several branches located in various parts of a city.

Branding Of Traditional Milk Products

Among the traditional milk products, ghee is the only product, which is currently
marketed, in branded form. main ghee brands are Sagar, Milkman (Britannia), Amul
(GCMMF), Aarey (Mafco Ltd), Vijaya (AP Dairy Development Cooperative Federation),
Verka ( Punjab Dairy Cooperative), Everyday (Nestle) and Farm Fresh (Wockhardt).

With increasing urbanization and changing consumer preferences, there is

possibility of large scale manufacture of indigenous milk products also. The equipments
in milk manufacturing have versatility and can be adapted for several products. For
instance, equipments used to manufacture yogurt also can be adapted for large scale
production of Indian curd products (dahi and lassi). Significant research work has been
done on dairy equipments under the aegis of NDDB.

17

Mafco Limited sells Lassi under the Aarey brand and flavored milk under the
Energee franchise (in the Western region, mainly in Mumbai). Britannia has launched
flavored milk in various flavors in tetra packs.
GCMMF has also made a beginning in branding of other traditional milk products
with the launch of packaged Paneer under the Amul brand. It has also created a new
umbrella brand "Amul Mithaee", for a range of ethnic Indian sweets that are proposed to
be launched the first new product Amul Mithaee Gulabjamun has already been launched
in major Indian markets.

Western Milk Products

Western milk products such as butter, cheese, yogurt have gained popularity in the Indian
market only during the last few years. However consumption has been expanding with
increasing urbanization.

18

Butter
Most Indians prefer to use home made white butter (makkhan) for reasons of taste and
affordability. Most of the branded butter is sold in the towns and cities. The major brands
are Amul, Vijaya, Sagar, Nandini and Aarey. Amul is the leading national brand while the
other players have greater shares in their local markets. The latest entrant in the butter
market has been Britannia. Britannia has the advantages of a wide distribution reach and
a strong brand recall.
Priced at par with the Amul brand, it is expected to give stiff competition to the existing
players. In 2008-00 the butter production is estimated at 4 lakh MT of this only 45K MT
is in the white form used for table purposes rest all is in the yellow form.

Cheese
The present market for cheese in India is estimated at about 9,000 tonnes and is growing
at the rate of about 15% per annum. Cheese is mainly consumed in the urban areas. The
four metro cities alone account for more than 50% of consumption. Mumbai is the largest
market (accounting for 30% of cheese sold in the country), followed by Delhi (20%).
Calcutta (7%) and Chennai (6%). Mumbai has a larger number of domestic consumers,
compared to Delhi where the bulk institutional segment (mainly hotels) is larger.

19

Demand for various types of cheese in the Indian market

Type of cheese
Processed
Cheese spread
Mozzarella
Flavored/Spiced
Others

% of total consumption
50
30
10
5
5

The major players are Amul, Britannia, and Dabon International dominating the market.
Other major brands were Vijaya, Verka and Nandini (all brands of various regional dairy
cooperatives) and Vadilal. The heavy advertising and promotions being undertaken by
these new entrants is expected to lead to strong 20% growth in the segment. Amul has
also become more aggressive with launch of new variants such as Mozzarella cheese
(used in Pizza), cheese powder, etc.

The entry of new players and increased marketing activity is expected to expand the
market. All the major players are expanding their capacities

20

Capacity expansion in Cheese

Company
Dynamics Group
GCMMF
APDDCF

Brands
Manufactures for Britannia
Amul
Vijaya

State
Maharashtra
Gujarat
Andhra Pradesh

Capacity
35 tons per day
20 tons per day
10 tons per day

Milk Powder
Milk powder is mainly of 2 types
_ Whole milk powder
_ Skimmed milk powder
Whole milk powder contains fat, as distinguished from skimmed milk powder, which is
produced by removing fat from milk solids. Skimmed milk powder is preferred by diet
conscious consumers. Dairy whiteners contain more fat than skimmed milk powder but
less compared to whole milk powder. Dairy whiteners are popular milk substitute for
making tea, coffee etc.
The penetration of these products in milk abundant regions is driven by
convenience and non perishable nature (longer shelf life) of the product.
Dairy sector of advanced nations export milk products with a subsidy of $ 1000
per tones with a level of subsidy more than 60 % of the price of milk powder produced in
India, this has led to large scale imports of milk powder both in whole and skimmed
form. To protect the domestic sector from these subsidized imports the central
government has recently increased the basic import duty on all imports of milk powder
more than 10000 MT to 60% from 15%. For imports less than 10000 MT the basic
customs duty has been left unchanged at 15%.

21

In 2008 India is estimated to have imported about 18,000 tonnes of milk powder against a
total estimated production of 2.40 Lakh MTs. In 2007-08 India is expected to export
10000 MT of skimmed milk powder due to rise in international prices to $2300 per MT
from last year's levels of $1400 per MT. These expectations are based on the strong
demand from Russia, East Asia and Latin America, and also on tightening of supply in
EU, which accounts for 75% of the annual global Skimmed Milk Powder exports.
Milk Collection Cycle
The success of each and every dairy industry is the getting the milk from the
farmers and making that milk in use as soon as possible before that milk get spoiled
because the milk is the perishable product. For the smooth running the business of dairy
industry the industry must concentrate on the milk collection cycle. Amul dairy is very
conscious about the milk collection cycle because the base of the success of the Amul is
milk collection cycle.

Production capacity of Amul

Butter
Powder plant
Flavour milk

50 to 60 Tones
70 tones
40000 bottles

Major Players
Milk Powder/Dairy Whiteners: Major skimmed milk brands are Sagar (GCMMF) and
Nandini (Karnataka Milk Federation), Amul Full Cream milk powder is a whole milk
powder brand.
Leading brands in the dairy whitener segment are Nestls Everyday, GCMMF's Amulya,
Dalmia Industry's Sapan, Kwality Dairy India's cream country, Wockhardt's Farm Fresh
and Britannia's Milkman Dairy Whitener.

Condensed Milk
22

The condensed milk market has grown from 9000 MT in 2007 to 11000 MT in 2008.
Condensed milk is a popular ingredient used in home-made sweets and cakes. Nestls
Milkmaid is the leading brand with more than 55% market share. The only other
competitor is GCMMF's Amul.

Infant Foods
Nestle is the market leader in the segment. This is a category where brand loyalties are
very strong as mothers want the best for their babies. Heinz is the only other significant
competitor to Nestle in this segment. Nestls Cerelac and Nestum together have around
80% market share and Heinz's Farex has close to 18% share. Work hard is a relatively
new entrant with its First Food brand. Wockhardt also proposes to launch a new baby
food Easum containing moong (moong is one of the easily digestible pulses). The Easum
brand will directly compete with Nestle's Nestum (made from rice).
In infant formula also Nestle's Lactogen formula and Lactogen standard formula
are the leading brands with around 75% market share. Other brands are Heinz's Lactodex
Farex, Wockhardt's *Raptakos, and Amul's Amulspray

23

Major dairy products manufacturers

Some of the major dairy products manufacturers in the country:
Company
Nestle India Limited

Milk food Limited

Smith

Brands
Milkmaid, Cerelac,

Major Products
Sweetened condensed milk, malted

Lactogen, Milo,

foods, milk powder and Dairy

Everyday
Milk food

whitener
Ghee, ice cream, and other milk

Kline Horlicks, Maltova, Viva

Beecham Limited
Indodan
Limited

Industries

products
Malted Milk food, ghee, butter,
powdered milk, milk fluid and other

Indana

milk based baby foods.

Condensed milk, skimmed milk
powder, whole milk powder, dairy
milk whitener, chilled and processed
milk

24

Gujarat

Co-

operative

milk

Amul

Butter, cheese and other milk

products

Marketing
Federation Limited
H.J. Heinz Limited

Farex, Complan,

Infant Milkfood, malted Milkfood

Glactose, Bonniemix,
Britannia
Cadbury

Vitamilk
Milkman

Flavored milk, cheese, Milk Powder,

Bournvita

Ghee
Malted food

25

Manufacturing Process
Milk is pasteurized by treating it to high temperature for a short time. The main aim in
treating milk with high temperature is to destroy the disease causing pathogens and to
improve keeping quality.
Separation machine is typically a high powered centrifuge. The centrifugal force makes
milk fat globules and emerges as cream from the separator bowl. Separation of cream
produces skim milk from which several dairy products are made.
Baby food: Fresh milk, which is received from farmers/ traders, is chilled and stored.
Then MSK skimmed/ wet skimmed milk and sugar are added in turbo mixture to achieve
the desired specifications of ingredients in the milk. This is followed by addition of
vitamins and minerals. This milk which contains ingredients to specifications is filtered,
cooled, analyzed and then purified. Then it passes through specific pasteurization and is
taken to evaporator for pre-condensing. Pre-condensate is homogenized, cooled and
stored. Cooled pre-condensate is heated and dried in spray drier (Egron). Then sugar is
added. The powder is then passed through chemical analysis to check quality and is filled
in tins through filling machines. These tins are gassed during gas mix and then sealed,
packed and dispatched in cardboard cartons.

26

Butter: Whole milk is first separated into skim milk and cream by centrifugal force in a
separator. The cream is then pasteurized either through batch process or a continuous
process. In batch process, cream is heated to a minimum of 740 C and held at the
temperature for 30 minutes, while in continuous process it is heated at 850 C and is held
for only 15 seconds. The heat treatment destroys bacteria, inactivates enzymes and gives
the cream a cooked flavour.
After pasteurization, a tempering process is applied in which cream is held at 100 C to
allow rearrangement of the fat crystals. The cream is then churned to produce butter.
Continuous churning converts cream into butter in a few minutes while batch churning
takes a longer time. Composition and colour adjustment is also done at the churning stage
and a salt solution is added to give the finished butter a salty taste. About 13 litres of milk
with 6% fat is required to produce 1 kg of butter.

Cheese: There are thousands of varieties of cheese in the world. The type of
manufacturing process used in the production of cheese determines its flavour, which
ranges from extremely mild to very sharp, and its texture, which can be semi-solid to
almost stone hard. Cheese making requires four main ingredients - good quality milk,
rennet or coagulating acids, culture and salt. Cheese is generally made from cow's milk.
About 10 litres of milk with 3% fat is required for making 1 kg of cheese. Natural Cheese
is made by coagulating or curdling milk, stirring & heating the curd, draining off the
whey and collecting or pressing the curd. The desired flavour and texture is obtained by
varying the temperature, humidity and time period of the curing process. Sweetened
condensed milk is usually made from fresh milk by adding sugar to the milk pre-warming

27

and concentrating the mixture in the high vacuum. The syrupy milk is then cooled so that
the lactose crystallizes as very fine crystals and then the product is coagulated.
Future Prospects
India= = s dairy sector is expected to triple its production in the next 10 years in view of
expanding potential for export to Europe and the West. Moreover with WTO regulations
expected to come into force in coming years all the developed countries which are among
big exporters today would have to withdraw the support and subsidy to their domestic
milk products sector. Also India today is the lowest cost producer of per litre of milk in
the world, at 27 cents, compared with the U.S' 63 cents, and Japan= = s $2.8 dollars. Also
to take advantage of this lowest cost of milk production and increasing production in the
country multinational companies are planning to expand their activities here. Some of
these milk producers have already obtained quality standard certificates from the
authorities. This will help them in marketing their products in foreign countries in
processed form.
The urban market for milk products is expected to grow at an accelerated pace of around
33% per annum to around Rs.43,500 crores by year 2008. This growth is going to come
from the greater emphasis on the processed foods sector and also by increase in the
conversion of milk into milk products. By 2008, the value of Indian dairy produce is
expected to be Rs 10, 00,000 million. Presently the market is valued at around Rs
7, 00,000mn.

28

Company Profile of AMUL

The Amul Meaning
AMUL means priceless in Sanskrit . A quality control expert in Anand suggested the
brand name AMUL from the Sanskrit word Amoolya variants, all meaning
priceless are found in several Indian languages. Amul products have been used in
millions of home since 1946 .

Amul butter

Amul milk powder

Amul ghee

Amul spray

Amul cheese

Amul chocolates

Amul Ice- cream

Today Amul is a symbol of many things . of high quality products sold at reasonable
prices . F triumph of indigenous technology . Of the marketing savvy of a farmers
organization . And proven model for dairy development .

29

MOTTO, VISION, AND QUALITY POLICY

MOTTO
The main motto of AMUL is to help farmers. Farmers were the foundation stone of
AMUL. The system works only for farmers and for consumers, not for profit. The main
of AMUL is to provide quality products to the consumers at minimum cost. The goal of
AMUL is to provide maximum profit in terms of money to the farmers.
VISION
Vision of AMUL is to provide and vanish the problems of farmers (milk producers). The
AMUL apparition was to run the organization with co-operative of four main parties, the
farmers, the representatives, the marketers, and the consumers.
QUALITY POLICY
We the motivated and devoted work force of AMUL are committed to produce whole
some and safe foods of excellent quality to remain market leaders through deployment of
quality management system, state of art technology innovation and eco- friendly
delightment of customer and betterment of milk producer

30

HISTORY
In early 1940s a farmer in Kaira district, as elsewhere in India, derived his income
almost entirely from seasonal crops. The income from milk was paltry and could not be
depended upon. The main buyers were milk traders of Polson Ltd.-a privately owned

company that enjoyed monopoly for supply of milk from Kaira to the Government Milk
Scheme Bombay. The system leads to exploitation of poor and illiterate farmers by the
private traders. However, when the exploitation became intolerable, the farmers were
frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading
activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on
their own by establishing a cooperative union, instated of supplying milk to private
traders. Sardar Patel sent the farmer to Shri Morarji Dasai in order to gain his Cooperation and help. Shri Dasai held a meeting at Samrkha village near Anand, on

31

January 4, 1946. He advised the farmers to from a society for collection of the milk.These
village societies would collect the milk themselves and also decided prices for that which
would be profitable for them. The district union was also from to collect the milk from
such village cooperative societies and to sell them. It was also resolved that the
government should asked to buy milk from the union.
However, the government did not seem to help farmer by any means. It gave the negative
response by turning down the demand for the milk. To respond to this action of
government, farmer of Kaira district went on a milk strike. For 15 days not a single drop
of milk was sold to the traders. As a result the Bombay milk scheme was severely
affected. The milk commissioner of Bombay then visited Anand to assess the situation.
Finely he decided to fulfill the farmers demand. Thus their cooperative unions were
forced at village and district level to collect and sell milk on a cooperative basis, without
the intervention of government. Mr. Verghese Kurien had main interest in establishing
union who was supported by Shri Tribhuvandas Patel who convinced farmers in forming
the cooperative unions at thevillage level. The Kaira District Co-operative Milk
Producers Union was thus established in Anand and was registered formally under
section 10 of Bombay Act VII of 1925 on December 14, 1946. Since then farmers are
selling all the milk in Anand through cooperative union. In 1955 it was commonly
decided the sell milk under the brand name Amul
At the initial stage only 250 liters of milk was collected everyday. But with the
growing awareness of the benefits of the co-operative-ness the collection of milk
increased. Today Amul collect 50, 00,000 liters of milk everyday. As the milk is

32

perishable commodity it became difficult to preserve milk for a longer period. Besides
when the milk was to be collected from the far places there was a fear of spoiling of milk.
To over come this problem the union thought to develop the chilling unit at various
junctions, which would collect the milk and could chill so as preserve it a for a longer
period. Thus, today Amul has more than 168 chilling centers in various villages. Milk is
collected from almost 1097 societies.
With the financial help from UNICEF, assistance from the government of New
Zealand under the Colombo plan, of Rs. 50 million for factory to manufactory milk
powder and butter. Dr. Rajendara Prasad, the president of India laid the foundation on
November 50, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it
open at Amul dairy on November 20, 1955.
A plant to manufacture balanced cattle feed was formally commissioned on
October 31, 1964 by Shri Lalbahadur Shastri, the Prime Minister of India. At the request
of the government of India, a new dairy with a capacity to manufacture 40 tons of milk
powder and 20 tons of butter a day was completed in 1963. This was meant to meet the
requirement of Indias defense forces. The dairy was declared open by ShriMorarji Desai
in April, 1965. in 1974, the Kaira Union setup a plant to manufacture high-protein
weaning food, chocolate and malted food at Mogar, about 8 km south of Anand.
In September, 1981, the second cattle feed plant at Kanjari were started. The
succesion of the co-generation project on September 11, 1985, marked a milestone on the
energy front when two gas turbine generators of 1.5 MW each based on natural gas, were
commissioned. On October 31, 1992, Dr. V. Kurien chairman, National Dairy

33

Development Board, laid the foundation of Kaira Unions third dairy with a processing
capacity of 6.5 lakh liters of milk a day. Work on the third dairy and cheese plant at
Khatraj with capacity for 20 Metric Ton of cheese per day, began in February, 1994.
Also in 1994, Kaira Union put up bread spread plant at Mogar with the assistance from
National Dairy Development Board.
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.

34

Members:

13 district cooperative milk producers'

Union

No. of Producer Members:

2.6 million

No. of Village Societies:

Total Milk handling capacity:

12,792
10.16 million litres per day

Milk collection

2.38 billion litres

Milk collection

6.5 million litres

Milk Drying Capacity:

594 Mts. per day

Cattle feed manufacturing Capacity:

About Machinery

2640 Mts per day

In AMUL 3 production of powder, Butter and Milk are being done

continuously. These productions are done by latest machineries equipped with
computer system and it is handled by one technicians.
-

The Milk pasteurizer machines belong to Alfa level company of Pune

Powder plant machineries belong to L & T Larson and Turbo company

of India
Butter production machineries belong to S.G.company of switrzland and

other
Butter manufacturing production machineries belong to Simon Feres
com.of France

ORGANISATION STRUCTURE OF AMUL

Board of Director
CHAIRMAN
MANAGING CHAIRMAN

35

GENERAL MANAGER
ASSISTANT GENERAL MANAGER
MANAGER
DEPUTY MANAGER
ASSISTANT MANAGER
SENIOR EXECUTIVE

SENIOR OFFICER
SENIOR ASSITANT
WORKERS

Grade ( Ato E)
.

36

37

Sales Turnover
Sales Turnover

Rs (million)

US $ (in million)

2000-01

22588

500

2001-02

23365

500

2002-03

27457

575

2003-04

28941

616

2004-05

29225

672

2005-06

37736

850

2006-07

42778

1050

2007-08

52554

1325

2008-09

67113

1504

2009-10

80053

1700

2010-11

97742

2172

2011-12

116680

2500

2012-13

137350

2540

2013-14

181434

3024

38

List of Products Marketed:

Bread spreads:

Amul Butter

Amul Lite Low Fat Bread spread

Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozzarella) Cheese

Amul Shredded Pizza Cheese

Amul Emmental Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese)

Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

Amul Amrakhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix

Avsar Ladoos
39

UHT Milk Range:

Amul Shakti 3% fat Milk

Amul Taaza 1.5% fat Milk

Amul Gold 4.5% fat Milk

Amul Lite Slim-n-Trim Milk 0% fat milk

Amul Shakti Toned Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

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 Cream Milk Powder

Amulya Dairy Whitener

40

Sagar Skimmed Milk Powder

Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardized Milk 4.5% fat

Amul Slim & Trim Double Toned Milk 1.5% fat

Amul Saathi Skimmed Milk 0% fat

Amul Cow Milk

Curd Products:

Yogi Sweetened Flavoured Dahi (Dessert)

Amul Masti Dahi (fresh curd)

Amul Masti Spiced Butter Milk

Amul Lassee

41

Amul Ice creams:

Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted
Almond)

Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry,
Black Currant, Santra Mantra, Fresh Pineapple)

Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)

Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch,

Mega bite, Cassatta)

Utterly Delicious (Vanilla, Strawberry, Chocolate, Choc chips, Cake Magic)

Chocolate & Confectionery:

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Brown Beverage:

Nutramul Malted Milk Food

Milk Drink:

Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose,

Chocolate)

Amul Kool Cafe

42

PRODUCTION &OPERATION DEPARTMENT

INTRODUCTION
Production management is refers to the process of correction of past mistakes catching up
with the new techniques, taking up steps with developing techniques and taking measures
for the production of goods at competitive cost.
The basic philosophy of production management is to launch a frontal attack on
direct costs and effective use the availability manpower weaving new techniques in to the
whole to keep the production unit efficient and developing production management is the
process of planning, organizing, directing and controlling.
The Amul is started with only 250 liters of milk per day. But now Amul collect
average 9 lakhs of liters milk per day. At the initial stage, Amul has not any problem
regarding milk, but in the winter season there was excess supply of milk. So, Amul has to
sell out that excess milk at the low price or Amul has to face loss. To removing these
problems Amul take decision to set up a plant to process the surplus milk butter and milk
powder.
Today the Amul has three plants Known as Amul 1, 2 & 3 all three plant work 24
hours a day continuously. The all manufacturing process is done automatically. The
production is done in the special machines. These machines and the technology are
import-id from the TRFTA PEAK Company. There is also facility of chilling of milk, so
that the milk remains usable.
Today three plant of AMUL perform different function.

43

AMUL 1 presently it is use as a go down for storing raw materials.

1. AMUL 2 Today in this unit, the production process of Ghee and packings are
running .
2. AMUL 3 This unit is producing AMUL butter, AMUL spray powder, and
flavored milk.
Organization Structure
Managing Director
General Manager

Dairy Plant
Manager
(Production)

Asstt. G. M.
Manager

Officer

A.M.

(Eng.)
Dy. Manager Workers

(Eng.)
Officers

(Eng.)
A.M.

Technicians

(Eng.)
Eng. Workers
Officers
Technicians
Eng. Worker

44

Milk Collection Cycle

The success of each and every dairy industry is the getting the milk from the
farmers and making that milk in use as soon as possible before that milk get spoiled
because the milk is the perishable product. For the smooth running the business of dairy
industry the industry must concentrate on the milk collection cycle. Amul dairy is very
conscious about the milk collection cycle because the base of the success of the Amul is
milk collection cycle.

Production capacity of Amul

Butter
Powder plant
Powder plant
Flavour milk

50 to 60 Tones
70 tones
60 tones
40000 bottles

About Machinery
In AMUL 3 production of powder, Butter and Milk are being done
continuously. These productions are done by latest machineries equipped with
computer system and it is handled by one technicians.
-

The Milk pasteurizer machines belong to Alfa level company of Pune

Powder plant machineries belong to L & T Larson and Turbo company

of India

Butter production machineries belong to S.G.company of switrzland and

other

Butter manufacturing production machineries belong to Simon Feres

com.of France

45

Amul 2 Raw Reception Dock

Reception dock is the very first department of any dairy where milk is unloaded and
simultaneously tested . Amul-2 has a well designed RMRD , situated in the west wing of
dairy . Raw milk at Amul- 2 is received mainly through cans . There are 2 reception lines
for unloading milk cans in Amul 2 . About 60 % of reception is of buffalo milk and
remaining 40% is cow milk .

Flow chart of Amul-2 process

Unloading of cans
Chain conveyer
Removal of cans lid
Physically inception of milk
Transfer of milk to dump tank ( 12-13cans/ min)
Filter
Weighing
Raw milk collection tank Amul -3
Pasteurization ( At 80 C for 15 seconds)
Standardization
Processed milk silo

Sent to different production section

milk pouch packing section

46

Butter section
The utterly Butterly Delicious butter of the Amul is one of the most popular product of
Amul dairy along with the famous butter girl . The butter section is located in Amul -3
which manufactures Table Butter , white butter and renduced salt butter . The section is
completely computer controlled and is equipped with most modern imported
equipments .Butter section

very important as it handles fat, which is the costliest

constituent . The cream obtained from process section is fully utilized for butter making .
Amul white and table Butter is exported to USA and various Middle Eastern countries .

OPERATION
The cream for manufacturing Butter is receiving from Amul-3 process section while
standardization of milk . In Amul -3 the milk fat will be separated at above 60 Celsius ,
the centrifugal separators inline with Milk pasteurizer separate this as cream . The cream
thus separated is pasteurized and then pumped to the cream buffer tanks and to cream silo
.After ageing at 8 Celsius for 24 hrs , cream is pumped to cream chilling unit in the
butter section . there the temperature of cream is adjusted to the required churning
temperature of continuous Butter Making Machine.

47

Flow chart of Butter processing

Raw cream
Pasteurizer (90 to 95 C )
Cooling (8-9 C)
Ageing(8-9 C/ 24hours)
Cream Balance tank
PHE ( for temperature adjustment at 6-8 C)

Churning (speed 500- 1200rpm)

Butter Grains
Washing with butter milk

butter Milk

Working ( 30- 70rpm )

2 washing with butter milk
silo
working
nd

white butter addition

salt (@2%) &color

15 kg packing
Blending
( 25-30 rpm
&vacuum )

48

export
ghee

butter section
packaging lines

9.1g blister pack

(Army)

100g refill pack

100g refill pack

400tin
Air pack (2gm)

Packing materials used :

Delocalize market
Double laminated is used for export
Tin used for 400g Army pack
Card board box- used for tertiary packing
3ply for 9.1 g weight package
5ply for normal & export

Powder plant
F-35 plant is situated in Amul -2 near to the railway siding . The plant is a single stage
drying plant having a capacity of 35 TDP. The plant is not in regular use and mainly used
for the manufacturing of cheese whey powder .
F-35 CONDENSING PLANT DETAILS
Make : SSP ,Faridabad
Type : Falling film vertical tube type
No of Pre heater : 5
No of calendria : 7

49

No of vapor separators : 5

OPERATION DETAIL
PRODUCT USE AND CHARACTERISTICS
MILK
One of the most versatile food consumed by us. All children start their with mothers
milk and continue to use it in one other throughout their life. It is the secretion from the
mammary glands of a lactating mammal. The white fluid, know as milk, is made up of
milk fat and other milk solids.
AMUL ICE CREAM
Amul ice cream is made up from fresh milk.
Ice cream are rich in protein, calcium, dairy cream and vitamins.
Ice cream are a complete food, easy to digest and full of energy.
MANUFACTURING PROCESS FOR ICE CREAM
Amul ice cream is made up from milk, milk products, sugar, stabilizers and emulsifiers.
Composition

Milk Fat 13.5% to 14.5%

Total Solids 40% to 41%

Sugar 15% Approx.

Acidity 0.17% to 0.19%

Protein 3.9% to 4.1%

50

Food Energy Value

Calories per 100 ml -196.7 kcal
Flavors
VANILA , Strawberry, Pineapple, Orange, Rose, Mango, Chocolate, Honey-Dew-Melon,
Tutee Fruity, Litchi, Kesar Pista, Kaju Draksh, Butterscotch, Choc chips, Rajbhog and
Cashew Break.

Packaging
50 ml cup, 100 ml cup, 500 ml pack,1 litre pack, 4 litre pack, Chocobar, Ice candies,
Cones and Kulfies .

MANUFACTURING PROCESS FOR MILK

MILK PROCUREMENT
Total milk procurement by our Member Unions during the year 2006-07 averaged 67.25
lakh kilograms (6.7 million kg) per day, representing a growth of 4.5 per cent over 64.38
lakh kilograms (6.4 million kg) per day achieved during 2005-06. The highest
procurement as usual was recorded during January 2007 at 84.09 lakh kilograms (8.4
million kg) per day. This increase in milk procurement is very impressive, keeping in
mind the massive loss suffered by our farmers due to
floods during the monsoon season, specially in Surat district.

51

MILK PROCESSING
1 Homogenization: - Milk must then be homogenized. Without homogenization, the
milk fat would separate from the milk and rise to the top. Milk fat is what gives milk its
rich and creamy taste. In this process Milk is transferred to a piece of equipment called a
homogenizer. In this machine the milk fat is forced, under high pressure through tiny
holes.

2 . Pasteurization:- Pasteurization is the process that purifies milk and helps it stay
fresher, longer. Milk is pasteurized by heating it to 72C for 16 seconds then quickly
cooling it to 4C. Pasteurization is named after Louis Pasteur, the famous scientist.

52

3 .Adding Vitamins; - Before homogenization, vitamin D is added to all milk. Vitamin

D combined with the calcium that naturally exists in milk help gives us strong bones and
teeth. Dairies also add Vitamin A to skim, 1% and 2% milk. Vitamin A is good for our
eyesight.

4.Packaging Milk: - Milk is now ready to be packaged. Milk is pumped through

automatic filling machines direct into bags, cartons and jugs. The machines are carefully
sanitized and packages are filled and sealed without human hands. During the entire time
that milk is at the dairy, it is kept at 1 - 2C. This prevents the development of extra
bacteria and keeps the milk its freshest.

53

5.Storing:- Milk is delivered to grocery stores, convenience stores and restaurants in

refrigerated trucks that keep milk cooled to 1 - 4C. The stores take their milk and
immediately place it in their refrigerated storage area. Because fresh milk is so important
to our diets, dairies, and our health.

54

Supply chain management of AMUL

SUPPLIERS

GCMMFS SUPPLY CHAIN

Processing :
After the union received the milk, it was tested and if it was found to be of good quality,
it was sent for processing. If the milk was found to have high acidity, it was used to make
buttermilk. Raw milk was sent through a filter and clarifier and was pasteurized. For
pasteurization, milk was treated at high temperatures for a specified.

0This helped in destroying the pathogens and in maintaining the quality. After
pasteurization, the milk was sent through a separation machine. Here the cream was
separated and skimmed milk was obtained. According to the demand, the unions packed
the milk after it was pasteurized and sent for distribution. The cream was marketed as
Amul Fresh cream .

55

Distribution
GCMMF coordinated with various unions to get a regular supply of milk and dairy
products. The processed milk and dairy products were procured from district dairy unions
and distributed through third party distributors. To ensure quality and timely deliveries,
GCMMF and the district unions had several mechanisms in place. The VCS constantly
monitored the deliveries of the milk collected and ensured that the milk was picked up on
time. The unions monitored the supplies of milk and the distribution of finished products.

WARE HOUSING: Amul products are available in over 500,000 retail outlets across
India through its network of over 3,500 distributors. There are 47 depots with dry and
cold warehouses to buffer inventory of the entire range of products. GCMMF transacts on
an advance demand draft basis from its wholesale dealers instead of the cheque system
adopted by other major FMCG companies. This practice is consistent with GCMMF's
philosophy of maintaining cash transactions throughout the supply chain and it also
minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care
of the transit time from the branch warehouse to their premises. This just-in-time
inventory strategy improves dealers' return on investment (ROI). All GCMMF branches
engage in route scheduling and have dedicated vehicle operation .

56

MILK PROCESSING BLOCK

57

SUPPLY CHAIN EXPLANATION WITH

DIAGRAME
DEFINITION OF VALUE CHAIN

As per the above diagram there are the first components is raw material:
In our company the raw materials are milk, powder for ice creams manufacturing,
different types of flavors for ice creams, packaging material, sugar etc. required by the
company for manufacturing. In this step GCMMF play a very important role it procures
milk from villages and for this it develops three types of system and that is societies at
villge level, district level and state level.

58

Second component is suppliers are the farmers and other raw material for manufacturing
the ice creams are provided by MAHAN PROTEINS LTD., IDEAL ICE CREAMS and
BHARAT ESSENCE.
This component is manufacturing process which is describe above. In milk process there
are mainly five steps are required and i.e. homogenization, pasteurization, adding
vitamins, packaging, storing. In this process there are also requirement of warehouse for
storing the product which already made and also for the raw material.
The next step is the distribution channel in which GCMMF plays very important role in
that. It handle all the marketing for AMUL products. GCMMF's products were marketed
through 50 sales offices located across India to 4,000 stockists. These stockists supplied
the products to more than 500,000 retail outlets.

59

The next step is the customers in this category there are restaurants includes. Also the
retail shops and whole sellers are included.
The last step is the consumer in which the actual hose hold are included in this category.

Our Product
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. 181434
Millions in 2013-14). 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. And of a
proven model for dairy development.

60

Check out this vast and ever-growing range of 'tasteful' Amul delectable!
"Please click here to download the latest PRODUCT DETAILER".
Bread Spreads
Amul Butter

Amul Lite

Utterly Butterly

Low fat, low Cholesterol

Delicious

Bread Spread

Delicious Table
Margarine
The Delicious way to eat
healthy

Milk Drinks
Amul Kool

Amul Kool Cafe

Chill your Dil

Kool Koko

Nutramul Energy Drink

A delight to Chocolate

A drink for Kids - provides

Lovers. Delicious

energy to suit the needs of

Chocolate taste

growing Kids

Amul Kool Chocolate

Amul Kool Flavoured

Milk

Bottled Milk

61

Amul Kool Flavoured

Amul Masti Spiced

Tetra Pack

Buttermilk
Amul introduces the Best
Thirst Quenching Drink

Amul Kool Thandai

Powder Milk
Amul Spray Infant

Amul Instant Full

Milk Food

Cream Milk Powder

Still, Mother's Milk is

A dairy in your home

Best for your baby

Sagar Skimmed Milk

Sagar Tea Coffee

Powder

Whitener

Which is especially
useful for diet
preparations or for use
by people on low
calorie and high protein
diet.

Amulya Dairy

62

Whitener
The Richest, Purest
Dairy Whitener

Fresh Milk
Amul Fresh Milk

Amul Gold Milk

This is the most hygienic

milk available in the
market. Pasteurised in
state-of-the-art processing
plants and pouch-packed
for convenience.

Amul Taaza Double

Amul Lite Slim and Trim

Toned Milk

Milk

Amul Fresh Cream

Amul Shakti Toned Milk

Amul Calci+

63

Cheese
Amul Pasteurised

Amul Cheese Spreads

Processed Cheese

Tasty Cheese Spreads in 3

100% Vegetarian Cheese

great flavours.

made from microbial

rennet

Amul Emmental Cheese

Amul Pizza Mozzarella

The Great Swiss Cheese

Cheese

from Amul, has a sweet-dry

Pizza cheese...makes great

flavour and hazelnut aroma

tasting pizzas!

Gouda Cheese

For Cooking
Amul / Sagar Pure Ghee

Cooking Butter

Made from fresh cream.

Has typical rich aroma and
granular texture. An ethnic
product made by dairies
with decades of experience.

64

Amul Malai Paneer

Utterly Delicious Pizza

Ready to cook paneer to

make your favourite
recipes!

Mithai Mate

Masti Dahi

Sweetened Condensed
Milk
Free flowing and smooth
texture. White to creamy
color with a pleasant taste.

65

Desserts
Amul Ice Creams

Amul Shrikhand----

Premium Ice Cream made

A delicious treats, anytime.

in various varieties and

flavours with dry fruits
and nuts.

Amul Mithaee Gulab

Amul Chocolates

Jamuns

The perfect gift for

Pure Khoya Gulab

someone you love.

Jamums...best served
piping hot.

Amul Lassee

Amul Basundi

Health Drink
Nutramul

Amul Shakti Health

Malted Milk Food

Food Drink

made from malt extract

Available in Kesar-

66

has the highest protein

Almond and Chocolate

content among all the

flavours.

brown beverage
powders sold in India.

67

COMPANY PROFILE OF PARAG DAIRY

Parag Dairy Delhi was set up in 1974 under the Operation Flood Programme. It is now
a wholly owned company of the National Dairy Development Board (NDDB).
Parag Dairy markets & sells dairy products under the Parag Dairy brand (like Liquid
Milk, Dahi, Ice creams, Cheese and Butter), Dhara range of edible oils and the Safal
range of fresh fruits & vegetables, frozen vegetables and fruit juices at a national level
through its sales and distribution networks for marketing food items.
Parag Dairy sources significant part of its requirement of liquid milk from dairy
cooperatives. Similarly, Parag Dairy sources fruits and vegetables from farmers / growers
associations. Parag Dairy also contributes to the cause of oilseeds grower cooperatives
that manufacture/ pack the Dhara range of edible oils by undertaking to nationally market
all Dhara products. It is Parag Dairys constant endeavor to
(a) Ensure that milk producers and farmers regularly and continually receive market
prices by offering quality milk, milk products and other food products to consumers at
competitive prices and;
(b) Uphold institutional structures that empower milk producers and farmers through
processes that are equitable.

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At Parag Dairy, processing of milk is controlled by process automation whereby

state-of-the-art microprocessor technology is adopted to integrate and completely
automate all functions of the milk processing areas to ensure high product quality/
reliability and safety. Parag Dairy is an IS/ ISO-9002, IS-15000 HACCP and IS-14001
EMS certified organization. Moreover, its
Quality Assurance Laboratory is certified by National Accreditation Board for Testing
and Calibration Laboratory (NABL)-Department of Science and Technology,
Government of India.
Parag Dairy markets approximately 2.8 million liters of milk daily in the markets
of Delhi, Mumbai, Saurashtra and Hyderabad. Parag Dairy Milk has a market share of
66% in the branded sector in Delhi where it sells 2.3 million liters of milk daily and
undertakes its marketing operations through around 14,000 retail outlets and 845
exclusive outlets of Parag Dairy.
The companys derives significant competitive advantage from its unique
distribution network of bulk vending booths, retail outlets and mobile units. Parag Dairy
ice creams launched in the year 1995 have shown continuous growth over the years and
today boasts of approximately 62% market share in Delhi and NCR. Parag Dairy also
manufactures and markets a wide range of dairy products that include Butter, Dahi, Ghee,
Cheese, UHT Milk, Lassi & Flavored Milk and most of these products are available
across the country.
The company markets an array of fresh and frozen fruit and vegetable products
under the brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops
and more than 20,000 retail outlets in various parts of the country. Fresh produce from

69

the producers is handled at the Companys modern distribution facility in Delhi with an
annual capacity of 200,000 MT. An IQF facility with capacity of around 75 MT per day is
also operational in Delhi. A state-of-the-art fruit processing plant of fruit handling
capacity of 120 MT per day, a 100 percent EOU, setup in 1996 at Mumbai supplies
quality products in the international market.
With increasing demand another state-of-the-art fruit processing plant has been set up at
Bangalore with fruit handling capacity of around 250 MT per day. Parag Dairy has also
been marketing the Dhara range of edible oils for the last few years. Today it is a leading
brand of edible oils and is available across the country in over 2, 00,000 outlets. The
brand is currently available in the following variants: Refined Vegetable Oil, Refined
Soybean Oil, Refined Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil
and Filtered Groundnut Oil. Parag Dairy has also launched extra virgin Olive Oil under
the Daroliva brand.
Parag Dairy has over the last 3 decades, harnessed the power of farmer
cooperatives to deliver a range of delicious products and bring a smile on your face. In
times to come, Parag Dairy shall strive to remain one of Indias finest food companies.

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List of Products Marketed:

Bread spreads:

Parag Butter

Cheese Range:

Parag Processed Cheese

Parag Pizza Cheese

Parag Paneer

UHT Milk Range:

Parag Milk

Parag Fresh Cream

Pure Ghee:

Parag Pure Ghee

Infant Milk Range:

Parag spray Milk Food

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Milk Powders:

Paragya Dairy Whitener

Sagar Skimmed Milk Powder

Fresh Milk:

Parag Taaza Toned Milk

Parag Cow Milk

72

Company Profile of MOTHER DAIRY

Mother Dairy was commissioned in 1974 as a wholly owned subsidiary of the National
Dairy Development Board (NDDB). It was an initiative under Operation Flood, the
world's biggest dairy development program launched to make India a milk sufficient
nation. Over the years, Mother Dairy has contributed significantly in achieving this
objective through a series of innovations and programs. Today, Mother Dairy
manufactures, markets & sells milk and milk products including cultured products, ice
creams, paneer and ghee under the Mother Dairy brand. The Company also has a
diversified portfolio with products in edible oils, fruits & vegetables, frozen vegetables,
processed food like fruit juices, jams, pickles etc to meet the daily requirements of every
household.
The Company over the last many years has created a market leadership position for itself
in branded milk segment in Delhi & NCR through a robust network of its booth and retail
channels. It has also expanded its reach to other regions in North, South, East and West
with its offering of Milk and Milk products pegging it among the few companies to own
such a vast channel of distribution in India.
Brand Mother Dairy sources a significant part of its requirement of liquid milk from dairy
cooperatives and village level farmer centric organizations. The Company is committed
to uphold institutional structures that empower milk producers and farmers through
processes that are equitable. A significant portion of its income is ploughed back into the
value chain to support and maintain the system.
Mother Dairy is an ISO 9001:2008 (QMS), ISO 22000:2005 (FSMS) and ISO
14001:2004 (EMS) certified organization. Quality of milk is of paramount importance for
the company and hence it has invested extensively in installing hi tech automated
machines to ensure high product quality/reliability and safety.
Safal, F&V arm of Mother Dairy was the first Company to organize the fruits and
vegetables business in India. Today Safal is the market leader in organized fruit &
vegetable retail business in Delhi NCR and operates the largest number of F&V Stores in

73

Delhi NCR and has significant presence in Bangalore. Safal was also the first brand in
India to launch frozen vegetable in mid 90s. Over the years, the brand has gained
significant customer support and has become a household brand with market leadership
and presence across the country.
Safal also has a state of the art plant in Bangalore which produces and sells around 23000
MT of aseptic fruit pulp & concentrate annually and supplies to noteworthy companies in
food processing space like Coca Cola, Pepsi, Unilever, Nestle etc. Safal also has a
prominent presence across 40 countries viz., USA, Europe, Russia, Middle East, Asia and
Africa and exports Fresh Fruits & Vegetables (Grapes, Banana, Gherkin, Onion, etc.),
Fruit Pulp & Concentrate, Frozen Fruits & Vegetables, etc.
Mother Dairy is also present into edible oils segment under the brand name Dhara which
was launched under the Operation Golden Flow program of NDDB as a market
intervention program to address a larger cause of the Indian farmers & consumers. Trust,
Purity and Taste are the hallmarks of Dhara cooking oil.

It has been a constant endeavor at Mother Dairy to stay connected with its stakeholders.
The corporate tag line of the latest brand campaign Happy Food Happy People
captures the essence of what the Company stands for. Mother Dairy is committed to bring
happiness to every individual with its range offering pure, hygienic and adulteration-free
high-quality products which has been the strength, differentiator and heritage of the brand
over years.

In our effort to instil and create happiness in all the lives we touch, we live our notion of
creating happiness for our employees through creating a workplace reality that is
fulfilling and enriching for them. We constantly listen to our employees and evolve our
people practices. As a result of this, Mother Dairy has been recognized as a Great Place to
Work by Great Place to Work Institute in their annual survey, where we have appeared at
62nd position among the top 100 best places to work and 5th in Manufacturing sector.
Over a period of two years, our Trust Index has risen from 70% to 81%. Our HR
practices around the Concessionaire Management have been cited as Examples of
Excellent practices across all the Organizations.

74

Vision & Mission

Vision - Provide quality food and beverages to consumers at affordable prices while
ensuring fair returns to the producers.
Mission - Mother Dairys heritage is intrinsically linked to the cooperative movement in
India. With determination & pride we will continue to serve our farmers, rural India &
our consumers. Our values reflect who we are & what we firmly believe in.

Token Milk

Premium Full Cream Milk

Full Cream Milk

75

Toned Milk

Standardized Milk

Double Toned Milk

Skimmed Milk

Special Toned Milk

UHT Toned Milk

Live lite

76

Consumer Perception towards Amul & Parag &

Mother Dairy Products
Export Potential
India has the potential to become one of the leading players in milk and milk product
exports. Location advantage: India is located amidst major milk deficit countries in Asia
and Africa. Major importers of milk and milk products are Bangladesh, China, Hong
Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf
countries, all located close to India.

Low Cost of Production: Milk production is scale insensitive and labour intensive. Due
to low labour cost, cost of production of milk is significantly lower in India.
Concerns in export competitiveness are Quality: Significant investment has to be made
in milk procurement, equipments, chilling and refrigeration facilities. Also, training has
to be imparted to improve the quality to bring it up to international standards.

Productivity: To have an exportable surplus in the long-term and also to maintain cost
competitiveness, it is imperative to improve productivity of Indian cattle.
There is a vast market for the export of traditional milk products such as ghee, paneer,
shrikhand, rasgolas and other ethnic sweets to the large number of Indians scattered all
over the world

77

OBJECTIVE OF THE STUDY

Amul & Mother Dairy is the market leader of dairy based food products in Meerut City.
Amul is the major competitors in the market against Parag Dairy. It is important to
get an idea regarding Amuls & Parag Dairy position. It would not help Amul to
capitalize on existing potential but also to formulate strategies and to fill the look
holes and gaps to fight the competitive situation
The Objective also contains:

To determine the consumer preferences of Amul & Parag dairy product with the
help of some parameters -quality, taste, price, packing style.

To compare the dairy product of Amul and Parag dairy on the basis of above
parameters

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SIGNIFICANCE OF THE STUDY

To know perception regarding these dairy products among both retailers as well as
in the customers.
To Understand the terminologies used in market by retailers.
Develop the usefulness in enhancing the usability of the product.
To know different selling skills at various situation of market.
To gain knowledge about distribution network of Amul and Parag.
To learn different strategies which are used by retailers in market to convince the
customers.

79

RESEARCH METHODOLOGY
Methodology for a study like this is the most important part .The method of study
operate by me is totally is to increase $ to gather the more information regarding this
project.
The major emphasis in such studies is on the discovery of the ideas fruitful
relevant information. As such the research design appropriate for such studies must be
flexible enough to provide opportunity for considering different aspect of a problem
under study.
I collected the information regarding this project through SECONDARY DATA
Secondary data is collected by various newspapers and magazines also staff.
Since our research is descriptive type, so research design is also descriptive.

80

Analytical tools: This study is based on collecting data by using well-connected

questionnaire for consumer from various demographic segments and also data is
collected using secondary sources. After collecting data it is arranged in the form of
tables from analysis and interpretation. Graphs and percentage analysis are the main tools
used for the purpose of interpretation.

81

LIMITATIONS OF THE STUDY

This survey although carried out with fullest possible efforts and devotion, the
limitation of the time, resources available and limited area chose may lead to limited
representation of the universe. The major limitations from which the study suffers are as
follows.
Time Constraint: - Time factor has been a very big limitation in the research/survey like
this. The retailers have limited time so they sometimes refuse to answer the questionnaire,
also me as a surveyor has less time to conduct the survey. So the size of the sample was
restricted to Meerut city.
Biasness in Information: -

It was felt that retailers did not come up with true responses,

in several cases the retailers answered the questions with the help of other members and it
was mostly in case of less educated persons.
Financial Constraint: -

The financial aspect, which includes the traveling cost, cost of

administrating questionnaire and collection of data through other resources was also
costly.
Constraint regarding the use of technique: -

The deeper statistical techniques such as

analysis using variance, multiple regressions etc., could not be adopted due to the
constraint of time and efforts. So, simple statistical techniques were used to analyze the
data.

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Findings & Data

interpretation

ANALYSIS AND INTERPRETATION OF DATA

83

I.

Which company's dairy product you use?

Interpretation:
55 percent consumers use Amul & 30 per cent used others and last 15 percent
consumer used Parag dairy products.

II.

Which of the product mostly you go for?

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Interpretation:
Amul Ghee used consumer 32%, Parag Ghee used 20% and others 48%. Milk
used by consumer 28% Amul, 25% Parag and others 47%. Butter used by consumer 38%
Amul, 12% Parag and 40% others.

III.

Are you satisfied with your product?

85

Interpretation:
80% Consumer satisfied with their products and 20 % consumer not satisfied their
products.

86

IV.

Why are you inclined to your product?

Interpretation:
Amul Quality inclined to products by consumer 60%, Parag satisfied 40%. Brand
preferred by consumer e.g. 68% Amul and 32% Parag. Price satisfaction with consumer
70% Amul and 30% Parag.

87

V.

Do you like any change in product?

Interpretation:
All consumers satisfied with their product and some consumer change product
Taste by consumer Amul 80% and no20% and Parag with satisfied 45% and not satisfied
45%. Price by consumer Amul 30% and no70% and Parag with satisfied 40% and not
satisfied 60%. Packing by consumer Amul 25% and no75% and Parag with satisfied 75%
and not satisfied 25%. Quality wise Amul 15% and no 85% and Parag with satisfied 60%
and not satisfied 40%.

88

RETAILER ANALYSIS
I.

In dairy products, which company product demand is higher?

Interpretation:
50per cent consumers demand for Amul dairy products & 30 per cent consumer
preferred others branded products and last 20 percent consumer preferred Parag dairy
products.

89

II.

Reason

Interpretation:
Amul dairy products Packing Style wise by consumer 80%, Parag preferred 20%.
Brand preferred by consumer e.g. 70% Amul and 30% Parag. Taste preferred by
consumer 68% Amul and 32% Parag. Price wise by consumer 60% Amul and 40% Parag.

90

III.

Which product of Amul is preferred by customers?

Interpretation:
All consumers Preferred with their product and some consumer change product
Taste by consumer Amul 80% and no20% and Parag with Preferred 45% and not
Preferred 45%. Price by consumer Amul 30% and no70% and Parag with Preferred 40%
and not Preferred 60%. Packing by consumer Amul 25% and no75% and Parag with
Preferred 75% and not Preferred 25%. Quality wise Amul 15% and no 85% and Parag
with Preferred 60% and not Preferred 40%.

91

RECOMMENDATIONS

92

RECOMMENDATIONS
1.

Company should have feed back from market and consumer about
the Dairy based Products.

2.

The more Flavors of Amul & Parag Dairy Products should become
in the Market.

3.

The company provided some small schemes for retailer also.

4.

The company gives some gifts for customer also.

5.

The company should associate itself with some games or

tournaments like football, cricket and so on.

6.

Company should provide sponsored seminar market intelligenceCompany should maintain the healthy relationship with market distribution
channel i.e. whole seller, distributor, retailers which will boost the brand image.

7.

Company should check the market real position help the trainees
and other survey organizations.

8.

Company should launch its website and use new advertising

channels; i.e.
Trailer in cinema halls
Hoardings
Spencer any education scholarship or games.

93

CONCLUSION
I have studied and analyzed the Dairy based food Product Market of Amul &
Parag Dairy Products on different aspects of the markets, outlets, distribution &
consumers. This project report Concludes that Amul & Parag Dairy are easily available in
various parts in India. The Parag distribution channel of the Amul is much strong the
most important thing, which I feel to improve is the availability to retailers &
consumers.
The retailers & consumers both promotes either Amul or Parag Dairy of its brands
for could be with regard to order processing, warehousing, inventory management &
transportation; besides that shop covering, exit from the market by the salesmen
glow shine board, schemes, incentives, prizes, gifts, discount, returning of defective
goods, proper supply should be improved.
My job was to make marketing managers aware of all the problems so that a
proper course of action is required to be undertaken.

94

ANNEXURE

95

96

QUESTIONNAIRE

CUSTOMER:

ADDRESS:

NAME:

I.

Which company's dairy product you use

a) Parag

b) Amul

c) Others

II.

Which of the product mostly you go for?

a) Ghee

b) milk

c) Butter

d) cheese

III.

Are you satisfied with your product?

a) Yes

b) No

REASON

IV.

Why are you inclined to your product?

a) Quality

b)

c) Price

d) taste

brand

97

V.

Do you like any change in product

a) Yes

VI.

b) no

IN WHICH PARAMETER:

a) Taste

b) price

c) Packing style

d) quality

RETAILER:
NAME:
ADDRESS:

VII.

In dairy products, which company product demand is higher?

a) Amul

b) Parag dairy

c) others

VIII. Reason
a) Price

b) taste

c) Brand

d) packing style

IX. Which product of Amul is preferred by customers?

a) Ghee

b) milk

c) Cheese

d) butter

e) Any other

98

REASON
a) Price

b) taste

c) Quality

d) packing style

X. Which product of Parag dairy is preferred by customers?

a) Ghee

b) milk

c) Cheese

d) butter

e) Any other

XI. Which product of amul is preferred least by customers?

a) Ghee

b) milk

c) Cheese

d) butter

e) Any other

XII. Which of Parag dairy is preferred least by customer?

a) Ghee

b) milk

c) Cheese

d) butter

e) Any other

99

XIII. Rank the preferences of consumers for Amul $ Parag dairy.

Amul

Parag dairy

Mother Dairy

Ghee
Cheese
Dahi
Butter
Milk
Others

100

COMPARATIVE STUDY OF AMUL AND PARAG DAIRY PRODUCTS

Consumer Preferences

Parag Dairy
Ghee

Milk

Butter

Amul
Cheese

Ghee

Milk

Butter

Chees
e

1. Price

High

High

High

High

Low

Low

Low

Low

2. Quality

High

High

High

High

Good

Good

Good

Good

3. Taste
4. Packing Style

Better
Better

Better
Better

Better
Better

Better
Better

Good
Best

Good
Best

Good
Best

Good
Best

101

BIBLIOGRAPHY

Market Research

- Luck and Rubin

Research Methodology

- C.R. Kothari

Product Management

- Ramanuj Majumdar

Marketing Management

- R.L. Vashney & S.L. Gupta

www.google.com

www.amul.com

www.Paragdairy.com

102