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A Report on the Industrial Visit of Amul Co-Operative Dairy

Semester-IV
Submitted
By

Name

: Chauhan Chetan N.
Roll No. : 4

Under the Guidance of:


Professor Jaydeep Patel &
Professor Pragna Patel

Submitted To:

Rudra College of Business Administration


Vahelal
March , 2014

CERTIFICATE BY THE GUIDE

This is to certify that the contents of this report entitled Chauhan Chetan N. submitted to Rudra
College of Business Administration for the partial fulfillment of the Degree of Business
Administration (BBA Sem- IV) is original report work carried out by him under our supervision.

Name : Chauhan Chetan N.


Roll Number : 4
Date :

Principal

PREFACE

Todays age is an age of management. It is the backbone of any organization, management is


the critical factor. A which determines the success or failure of the business unit. Success in
management depends on through understanding the principals of management. The sell
success of management dies in applying professional management in all management
activities. The B.B.A. degree course has its own distinguished & unique salidauty like other
professional courses. One of its basic requirements during the terms for the student of B.B.A.
is to undertake a visit to any industry to take such training. It is an important part of syllabus
and study. The objective behind this type of practical training at first year is to develop
among students feeling of industrial environment & consciousness of business partners.
Students of B.B.A. must be well informed by industrial activity because its a university
criteria. I am also B.B.A. student so, I had an opportunity to visit industry. In our
programme , we had visited a dairy industry namely AMUL DAIRY at Anand. We were
welcomed by them & given us necessary information about Amul Dairy. I have prepared this
report, which contains all the details of each department. I have studies in detailed the various
process & operations taking place in this unit general information about is also included.

ACKNOWLEDGEMENT

First of all I am very thankful to God for giving me this opportunity to visit AMUL DAIRY
and I believe that anything that happens is only by God. I am also thankful to following
persons.
I am thankfull to Gujarat University for take an indusrial visit in our syllabus.
I am thankfull to Amul Co-operative dairy to give permission for an industrial visit to their
unit & thankfull to Smruti Thakkar for give the information of their firm.
Prof. in charge of our visit & give me guidance to make this report :- Prof. Jaydeep Patel and
Pragna Patel being very helpful on visit with us.
I am also very thankful to my parents for giving me permission allow me took admission in
B.B.A. and also very thankful to B.B.A faculty allow me to go for visit.

INDEX
S.L.NO.

3.3 PRODUCTION
PERTICULARS
PROCESS

I
II
III
VI
1

PAGE
NO

TITLE PAGE
CERTIFICATE
PREFACE
ACKNOWLEDGEMENT
COMPANY PROFILE
1.1 REGISTER ADRESS
1.2 HISTORY
1.3 VISION & MISSION
1.4 PRODUCTS
1.5 FORM OF ORGANIZATION
1.6 ORGANIZATION STRUCTER
1.7 AWARDS & ACHIVEMENT
FINANCE
2.1 INTRODUCTION
2.2 BALANCE SHEET
2.3 TRADING / PROFIT & LOSS ACCOUNT
2.4 RESSERVE & FUND (BALANCE SHEET)
2.5 FIX ASSETS (BALANCE SHEET)
2.6 DISTRIBUTION OF PROFIT AS PER BYE LAWS
2.7 SALES TURNOVER
2.8 RATIO ANALYSIS
PRODUCTION
3.1 INTRODUCTION
3.2 PRODUCT RANGE

3.4 PRICE DISTRIBUTION CHENNAL


4

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MARKETING
4.1 INTRODUCTION

1
2
3
4
7-17
8
9
11
12
15
16
17
18-25
19
20
21
23
23
24
24
25
26-32
47
58

32
33-43
34

4.2 MARKETING STRUCTURE

35

4.3 MARKET SEGMENTATION

36

4.4 MARKET TARGETING

37

4.5 COMPETITIORS

38

4.6 PRICING POLICY

39

4.7 MARKETING & DISTRIBUTION CHENNEL

40

HUMAN RESOURCE MANAGEMENT


5.1INTRODUCTION

44-48
45

5.2 RECRUITMENT

45

5.3 SELECTION

46

5.4 TRAINING & DEVELOPMEMNT

47

5.5 PERFOMANCE APPRAISAL

47

5.6 PROMOTION /5.7 TRANSFER

6
7
8

4848

5.8 WAGES & SALARY

48

5.9 OVERTIME WORK

48

SOCIAL RESPONCIBILITY
CONCLUTION
BIBLIOGRAPHY

49
52
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CHEPTER NO. :1
COMPANY PROFILE

1.1 HEAD OFFICE :


Gujarat Cooperative Milk Marketing Federation Ltd.
Amul Dairy Road,
P B No.10, Anand - 388 001,
Gujarat, India.
Phone: +91-2692-258506, 258507, 258508, 258509
Fax: +91-2692-240208
Email: gcmmf@amul.coop

1.2 HISTORY

It began with a farmer in Kaira District as elsewhere in India.

Derived his income almost entirely from seasonal crops the income from milk as
paltry 4 could not be dependent upon. The main by years were milk traders of
Polson limited a privately own company as enjoyed monopoly for supply of milk
from kaira to the govts milk scheme Bombay.

The farmer appealed to Sardar Patel a great leader at India freedom movement
for help Sardar Patel advice them to marker the milk through a co-operative of

their own.
Due to the milk through strike by kaira farmers for 15 days not a drop of milk
was sold to the traders. The Bombay milk scheme was sold to the traders. The

Bombay milk scheme was badly affected the milk commissioner of Bombay

visited Anand assessor the situation & farmers demand.


Thus was born the Kaira District Co-operation Milk Producers Union Limited,

Anand. It was formally on December 14th, 1946.


In 1958, the plant was expended to manufacture sweetened condensed milk.
At the request of manufacture 40 tones milk powder 720 tones of butter a day

was completed in 1963.


In 1947, the kaira union set up a plant to manufacture high protein weaning food,

chocolate & malted at major, about 8 km south of Anand.


Indias modern dairy sector has expanded rapidly. India is recognized as a
biggest and fastest growing market in the world for milk and milk products.
India's dairy market is multi-layered. It's shaped like a pyramid with the base
made up of a vast market for Chocolate. The bulk of the demand for Chocolate is

among the Rural areas whose requirement is large.


Indias dairy sector is expected to triple its production in the next 10 years in
viewof expanding potential for export to Europe and the West; so all the
countries are looking at Indian dairy industry markets for exports. As per GATT
agreement the export subsidy is reduced. Because of this India is expecting
major changes in dairy industry of North America, Europe and Australia. It may
also get some advantage in this situation. After reduction in subsidies given by

other countries
India would be able to compete with their products efficiently on price in
international markets. At present India has a negligible export to international

markets.
Both public and private sector have contributed to the dairy industry growth in
India. Government dairy distributes 90% of its milk in sachets or in containers
while remaining 10% is marketed as butter, ghee etc. On contrary, private sector
only markets 20% of milk and remaining 80% of milk is made into preparations

suitable for exports. Amul have Chocolate as their main product.


Though India is No. 1 in milk production, it is unfortunate that we are importing
milk products from other countries. Since we do not have good technology for
production of skim milk powder we are forced to import them from Europe and
New Zealand.

1.3 VISION & MISSION


VISION
The vision of Amul- the test of India is to be a part of everyones life.

MISSION

Mission is expression of distribution network, creative marketing, consumer education

and product innovation.


We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavor to satisfy
the taste and nutritional requirements of the customers of the world, through excellence in

marketing by our committed team.


Through co-operative networking, we are committed to offering quality products that
provide best value for money.

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1.4 PRODUCTS
Fresh Milk :
Amul Taaza Toned Milk 3% fat
Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardised Milk 3% fat
Amul Smart Double Toned Milk 1.5% fat
Amul Masti Dahi (fresh curd)
Amul Butter Milk
Amul Lassee
Amul Icecreams :
Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)
Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi
Badam Kulfi, Shista Pista Kulfi)
Utsav Range (Anjir, Roasted Almond)
Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi Pista Kulfi,
Mawa Malai Kulfi, Green Pista Kulfi)
Tricone Cones (Butterscotch, Chocolate)
Bread spreads :
Amul Butter
Amul Lite Low Fat Breadspread
Amul Cooking Butter
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Cheese Range:
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese
Amul Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese) Frozen and Tinned
Utterly Delicious Pizza
Mithaee Rang :
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
Amul Amrakhand
Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamun Mix
Amul Mithaee Kulfi Mix
UHT Milk Range :
Amul Taaza 3% fat Milk
Amul Gold 4.5% fat Milk
Amul Slim-n-Trim 0% fat milk
Amul Chocolate Milk

12

Amul Fresh Cream


Amul Taaza Double Toned Milk
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)
Amulspray Infant Milk Food
Milk Powders:
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener
Milk Drink :
Amul Shakti Flavoured Milk
Ready to Serve Soups :
Masti Tomato Soup

13

1.5 FORM OF ORGANIZATION

There are many forms of business like sole traders firm, partner firm, cooperative firm, joint stock company etc. The form of Amul Dairy is co1.6
ORGANIZATION STRUCTURE
operative sectors because the dairy established on the basis of cooperation of the cattle racers and farmers or milk producers. Professor
Pual Lamber have been
defined
the co-operative societies are set up
Managing
Director
primary with the object of organism some basic or essential service for
the benefits of mambers. Any surplus entered by the co-operative
Director

societies is in incidental to the motto of service.


There are types of size of the industrial unit.
General Manager

Large-scale industries
Material
Medium scale industries
Handing
dept.
Small scale industries
Manager

Grinding dept.

Packing

Officer

The Amul Dairy. can be classifies as a large scale unit.


Sales Officer

Heat treatment

Assemble department

Department officer

Workers/Subordinates

14

Workers/Subordinates

1.7 AWARDS & ACHIVEMENTS

Shri R S Sodhi, MD-GCMMF, receives prestigious QIMPRO GOLD


STANDARD Quality Award 2013
GCMMF wins the SAP Award for Customer Excellence (SAPACE) 2013
under the category of "Best Run Award in Finance"
ET-Corporate Citizen Award of the Year 2010-11 to GCMMF
Amul receives Green Globe Foundation Award
Dr. V.Kurien honoured with Life Time Achievement Award
GCMMF receives Srishti's G-Cube Award - 2010
Amul Bags International Dairy Federation Award
Amul Bags Srishti G-cube Award For Good Green Governance - 2009
Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit

15

CHEPTER NO. :2
FINANCE MANAGEMENT

2.1 INTRODUCTION OF FINANCE MANAGEMENT


16

Any organization, whether it is small or large scale, clears with financing every
businessman keeps separate records of financial matters. Finance and account

department of the business depends upon the financial policy of the firm.
Financial management is mainly concerned with finding out rational basis through
answering following three questions.
What total value of funds should be invested in the business?
What specific assets should the business require?
How should the required funds be raised?
production and distribution stage to customer stage to customers trade credit
creates receivables involves credit policy, monitoring accounting receivables.
A firm may follow a latent or a straight credit policy. Before following
establishing any credit policy finance manager has to evaluate the effect of
policy in terms of cost and benefits.

17

18

19

20

21

According to the chart the turnover of Amul dairy Rs.2746crore in year 2002-03 & There was
Rs.13735crore turnover in year 2012-13.
Amul increase their turnover between 10 years (2002-03 to 2012-13) Rs.10989crore.

22

RATIO ANALYSIS

Ratio analysis is one of the techniques of financial analysis where ratios are
used as a yardstick for evaluating the financial condition and performance of a
firm. Ratios may be classified according to functions or tests as solvency,
liquidity, or profitability ratios and according to nature as leverage ratios and
activity ratios.

2011-2012
Net profit ratio : Net profit / Sales *100 = 1070.29/246610.43*100
=0.43%
Gross profit ratio : gross profit / Sales *100=42633.33/246610.43*100
=17.29%
Stock turn over ratio: cost of goods sold /average stock =

/16184.73

2012-2013
Net profit ratio : Net profit / Sales *100=722.12/284999.60*100
=0.25%
Gross profit ratio : gross profit / Sales *100=48882.78/284999.60*100
=17.15%
Stock turn over ratio: cost of goods sold /average stock =
=

23

/16184.73

CHEPTER NO. : 3
PRODUCTION DEPARTMENT

24

3.1 INTRODUCTION
In any industry, the production department is a sour of unit. It affects all the departments of a
unit. It affects all the departments of the unit of company main goal are to earn more profit so
that the handling of production must be efficiently.
Production means collect the raw material and done the process on its so that the product can
be use by human resources.
Explosion of the production technology and changes in the field is going to bring out
revolution in the industry sector which eventually gives stand to study and favor the come
baking subject i.e. production and operation management.
Production and operation management is planning organization stating diverging and
controlling of all the production system that portion of organization that convert inputs in to
produces and services. In the general production system take raw materials products and
services.
The cure of production system is its conversion sub system where in workers materials are
used to convert inputs in to products and services. This production department is at the heart
engaged and it is able to produce law cost products and superior quality in timely manners.

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3.2 THE PRODUCT RANGE


Breadspreads

Amul Butter, Amul Lite, Delicious Table Margarine


Amul Pasteurized Processed Cheddar Cheese, Amul Processed
Cheese Spread, Amul Pizza (Mozarella) Cheese,Amul Emmental

Cheese Range

Cheese, Amul Gouda Cheese, Amul Malai Paneer (cottage cheese),


Utterly Delicious Pizza
Amul Gold Full Cream Milk 6% fat, Amul Shakti Standardised Milk

Fresh Milk

4.5% Fat, Amul Taaza Toned Milk 3% fat,Amul Slim & Trim, Amul
Cow Milk

UHT Milk Range

Amul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk, Amul Taaza
1.5% fat Milk, Amul Lite Slim-n-Trim Milk, Amul Fresh Cream
Amul Full Cream Milk Powder, Amulya Dairy Whitener, Sagar

Milk Powders

Skimmed Milk Powder, Amulspray Infant Milk Food, Sagar Tea and
Coffee Whitener
Amul Kool Flavoured Milk, Amul Kool Cafe, Amul Kool

Milk Drink

Koko,Amul

Kool

Millk

Shaake,

Amul

Kool

Chocolate

Milk,Nutramul Energy Drink


Health Drink

Stamina Instant Energy Drink

Brown Beverage

Nutramul Malted Milk Food


Amul Masti Dahi (fresh curd), Amul Masti Spiced Butter Milk,Amul

Curd Products

Lassee, Amul Flaavyo Yoghurt

Pure Ghee

Amul Pure Ghee, Sagar Pure Ghee

Sweetened Condensed
Milk
Mithaee

Amul Mithaimate

Range Amul Shrikhand, Amul Mithaee Gulabjamuns, Amul Basundi,Avsar

(Ethnic Sweets)

Ladoos

Ice-cream

Sundae Range, probiotic,,sugarfree and probiotic

3.3 PRODUCTION PROCESS


The dairy industry is moving forward by leaps and bounds. Aided and supported by
extensive R&D, emergence of new state of the art Dairy plants, training programs
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conducted by NDDB and quality control measures that make sure the end consumer
gets optimum value for money.

The National Dairy Development Board - the accolades for the progress of the dairy
industry rest squarely on it's collective shoulders.

The screw compressor room of the refrigeration plant at the 30 TPD Power plant,
Meerut, the first of it's kind in the country.

An embryo transfer laboratory at Sabarmati Ashram Gaushala working to implement


the latest technology so that small farmers have access tot he best breeds in the
business.

MILK
PROCUREMENT
Amul Dairy procures milk and conserved commodities exclusively from the state cooperative
dairy.
Federations of Anaad and villeges around kaira district.

27

The federations in procure milk through the district cooperative unions and the village
cooperative societies.
PROCESSING OF MILK :
The initial capacity of 10 lakh liter per day was enhanced from time to time to meet demand
and present capacity of the plant is 8 lakh liter per day. The present sale of milk through bulk
vending system is around 12-lakh liter per day. BVM is fortified with vitamin A and is
processed and handled using the state of the art facilities after pasteurization it is stored in
silos and further chilled to about 30 C by deep chillers and then dispatched to retail outlets in
insulated road wheel tankers.

Processing of milk is controlled by process cumation, which is based on distributed control


system (DCS). State of the art microprocessor based technology is adopted to integrate and
completely automate all functions of the milk processing areas based on intelligent
automations system. Plant automation ensures high product quality or reliability .
On production as the programmers carries various inter looking and checks for the optimum
temperature, pressure and flow of the plant. Mother dairy has switched over to new
refrigeration plant with screw compressors which are more effective, energetic, efficient and
technologically advanced. In the plant environment, friendly, ammonia is used as refrigerant
in place of foreign.
BUTTER :
Its delicious. Its creamy. And its so easy to spread. Available in 100 and 500 gram packs,
Mother Dairy Butter is produced under totally hygienic conditions using Mother Dairys
wholesome milk. No wonder Makkhan Singh loves it!
In case youre wondering who Makkhan Singh is well, hes this really cool guy who loves
Mother Dairy Butter its his favourite. Along with his gang of friends, Makkhan Singh is
always up to a bunch of crazy stunts to get his hands on Mother Dairy Butter.
CHEESE :
Mother Dairy presents yummy Cheese made from freshly collected cow's milk.

28

Mother Dairy Cheese with its great taste and creamy, soft texture lends itself well to be used
in a variety of foods.
It's made with calcium rich milk and each slice of Mother Dairy Cheese offers approximately
20% of a growing child's everyday Calcium requirement
It's made with calcium rich milk and each slice of Mother Dairy Cheese offers approximately
20% of -growing child's everyday Calcium requirement
Bring your food alive with taste and health with Mother Dairy Cheese
Currently, available in three formats:Individually Wrapped Slices (IWS): 200gms (10 slices)
Cubes: 200gms (10 cubes) Spreads: 200gms

3.4 PRICE DISTRIBUTION CHANEL

29

30

CHEPTER NO. :4
MARKETING

4.1 INTRODUCTION
The concepts of market are very important. Marketing is a comprehensive learn. It includes
primary resources such as human resources, finance & management as well as a set of

31

activities in order to direct the flow of goods & services from producer to consumer in the
process of exchange & distribution.
Marketing may be defined as the process of exchange between seller & buyer. It involves a
number of inter related activities designed to plan promote, distribute & price a product or
service in order to meet the wants & needs of both the parties in exchange.
Transaction Viz :- Consumer (buyers) & producer (sellers) P.Kotler defines marketing as
The human activity directed at satisfying needs & wants through exchange process.
Marketing is the Creating & delivery of standard of living to the society A total system of
interacting the business activities designed to plan, price promote & distribute want satisfying
products & servicer to present & potential customers.
According to the committee of American marketing association. Marketing consist of
performance of business activity that direct the flow of good and services from producers or
supplier to the consumer and users.
In Amul Dairy proper emphasis has given is the concept of marketing as it helps in increasing
the selling and profitability and that is why the separate department of marketing has kept to
carry on and control marketing activities of milk made products are performed by Gujarat
Milk Marketing Federation Ltd. On behalf of Amul Dairy this Organization has been set up
with the purpose of the overcoming the intro competition between member and to give fight
to outer competitors GCMMF carries on all the marketing activities on behalf of its member.

4.2 MARKETING STRUCTURE OF ORGANISATION

32

CHAIRMAN

MANAGER (ADM & COM)

MARKETING MANAGER

SALES SUPERVISOR

SALESMEN

ASSISTANT

CLERK

This ritual began 51 years age, is today observed twice a day in 10,000
villages. Their only factor that decides who a stand first is who come first.

4.3 MARKET SEGMENTATION

33

Market Segmentation is the act of sub dividing a market into distinct sets of customers
who merit attention. Targeting these customers for marketing by evaluating, selecting,
and concentrating becomes a corollary to segmentation. Market segmentation assumes
importance in the context of intense competition market is bombarded with. A market
consists of buyers, and buyers differ in one or more ways. They may differ in their
wants, resources, locations, products requirements. These variables have to be
considered in the process of segmentation
There are different levels of market segmentation. They are mass marketing,
segment marketing, niche marketing and micro marketing. Markets can be
segmented on the geographical basis, demographical basis, psychological basis,
behavioral basis and loyalty status.
AMUL segments its market on the following basis:
1. GEOGRAPHICAL BASIS:
This segmentation is done on the basis of the lifestyle of people in different regions
and their tastes and consumption patterns which are distinct according to their
geographical situation. AMUL has segmented India geographically into 5 zones.
2. DEMOGRAPHICAL BASIS:
They have segmented its market on the basis of the socio-economic status of the
customers. i.e. on the basis of their purchasing power and income level as follows:
o GROUPA:
Consumers falling in this group are from higher social and economic class.
o GROUPB:
Consumers falling in this group are from middle socio-economic class.
o GROUPC:
Consumers falling in this group are from the lower middle class.
The main segmentation of AMUL is that anyone buy the products of Amul
anywhere even lives in city or village.

4.4 MARKET TARGETING


After segmenting the market, company evaluate the various segments and decides
how many and which ones to target.
Generally the market is targeted in three ways:1) UNDIFFERENTIATED MARKETING
2) DIFFERENTIATED MARKETING
3) CONCENTRATED MARKETING

34

AMUL uses undifferentiated marketing strategy for targeting its customers as far as
its milk and milk product line is concerned. While the company implements
differentiated marketing strategy for targeting its customers for the other product lines
that are ice creams and chocolates, wet products and dry products. AMUL targets its
customers according to the segments like geographic and demographic. AMUL
mainly targeting children for the ice cream , chocolates , flavoured milk ,sweets etc.
BRANDING:
A brand is a name, term, sign, symbol or design or a combination of these used to
identify a product or company..
Decisions about branding are taken at the Head Office at Anand. AMUL
meanspriceless 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 languages of India. AMUL manufactures and
markets its products under two brand names AMUL and SAGAR Information
Technology (IT) has played a significant role in developing the Amul brand. The
installation of 3000 Automatic Milk Collection System Units (AMCUS) at Village
Societies to capture member information, milk fat content, the volume collected and
amount payable to each member has proved invaluable in ensuring fairness and
transparency throughout the whole Amul organization.

BRAND EQUITY:
Brand equity refers to the value of a brand, based on the extent to which it has brand
loyalty, brand name awareness, perceived quality, strong brand associations, and the
other assets such as patents, trademarks and channel relationship.
1. BRAND AWARENESS:. AMUL enjoys very high brand awareness among its
customers. According to the survey done by the company, brand awareness is as
high as almost 90%.
2. BRAND LOYALTY:

AMUL is blessed with high brand loyalty among its

customers. As it is one of the biggest market players it has proportionately larger


group of loyal customer, who are in turn a medium of marketing/ advertising.
3. BRAND ASSOCIATIONS: Customers associate AMULs brand with high quality
standards and reasonable price.
4. BRAND IMAGE: AMUL has created brand image by offering excellent quality
products at reasonable price.

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4.5 COMPETITORS
Amul dairy has many competitors in their different products.

COMPETITORS OF AMUL

PRODUCT OF AMUL DAIRY

DAIRY

Powder

Nestle

Chocolate

Nestle, Nutrient, Cadburys

Ice cream

Vadilal, Go cool, Havemore

Cheese

Britannia
Local market

Ghee

Amul dairy markets most if its products with the help of its marketing
intermediaries but some of the products are marketed directly.
Supplier

Marketing intermediaries

Enduser

Amul dairy uses the help of media in marketing its products. It gives
advertisement in the newspapers & in the television which to
increase demand of its products.

4.6 PRICING POLICIES

36

The amount of money charged for a product or service or the sum of the
values that consumers exchange for the benefit of having or using the
product or service is called its price. A companys pricing decisions are
affected by both internal factors like companys objectives, marketing
mix strategy, cost and organizational considerations and external factors
like nature of the market and demand, competition and other
environmental elements.
While deciding the price of its products AMUL takes into consideration all
the below mentioned factors, this is true for all the products.
Cost of raw materials
Cost of labour
Profit margin of distributors
Various administrative and manufacturing overheads
Demand and supply position in market

Fair return to the farmers


AMUL

always

refers law cost price of its product from the

costumers.

4.7 MARKETING & DISTRIBUTION CHANNEL:


A distribution channel is a set of interdependent organizations involved in the
process of making a product or service available for the use of consumption by the
consumer or business user. Decisions taken by AMUL are as under:
1. ANALYSING CONSUMERS NEEDS
2. SELECTING CHANNEL OBJECTIVES
3. TYPES OF INTERMEDIARIES
4. NUMBER OF INTERMEDIARIES
37

5. EVALUATING ALTERNATIVES

38

39

(i) ZERO-LEVEL CHANNEL:


Manufacturer

Consumer

(ii) ONE-LEVEL CHANNEL:


Manufacturer

Retailer

Consumer

(iii) TWO-LEVEL CHANNEL:


Manufacturer

Wholesaler

Retailer

Consumer

(iv) THREE - LEVEL CHANNEL:


Manufacturer

Wholesaler

Agents

Retailer

Consumer

AMUL has three-level distribution channel, i.e. it employs carry forward agents,
wholesaler and retailers to carry its products to the final consumers.
Till today, the major development on the distribution front is the development and
alignment of four distribution highways - those of Fresh Products, Chilled Products,
Frozen Products and Ambient Products. This is a significant achievement because it
allows AMUL to develop synergies among all their product lines and to leverage these
highways to introduce and distribute new products as per market demand. No other
organization in India has been able to develop this kind of channel synergy so far.
Another major initiative undertaken is the Time-based Military Technique (TMT) of
distribution. This has been deployed to effect a nationally synchronized mass
distribution of their products with the objective of achieving total channel penetration
on a single day.
After Distributor Salesmen in the previous year and Distributors in the year before
last, it was the turn of the top Retailers across the country to participate in the Amul
Yatra Programme which is a unique experiment conducted by Amul to bring their
channel partners face to face with their cooperative institutions, activities, culture and
achievements through a guided tour in and around Anand. A total of 114 Distributor
Salesmen and 482 top retailers from across the country participated in the Amul Yatra
this year. With the opening of several new milk markets and 3 separate Milk Sales
Offices at Mumbai, New Delhi and Boisar, the number of Milk Area Delivery Agents
has increased.
Amul Dairy
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GCMMF

Area Depot

Distributors

Retailers

Consumers

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CHEPTER NO.: 5
HUMAN RESOURCE

5.1 INTRODUCTION

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Human resource management means managing people in the orgenisation.HRM involves


planning , organising ,directing and controlling the operative function of procurement ,
development , compensation and integration of human resources of an orgenisation for
achievement of objective.

5.2 RECRUITMENT
It forms the first stage in the process, which continuous with selection
causes with the placement of the candidates recruitment is the
discovering of potential applications.
There are 3 method of recruitment .
1. Direct
2. Indirect
3. Third Party Method
Amul has adopted direct method of recruitment In Amul 4 types of Recruitment.
In this type of recruitments employees are recruited two ways under graded skill
firstly well qualified & experienced persons are considered secondly fresh graduate

from well know institute like I.R.M.A, TATA etc. are considered.
Recruitment Under Union Scheme:
This scheme is owned schemed of Amul according to this scheme

M.L.W, M.R.M.D, D.C.A, M.B.A Candidates are recruited as management


trainee candidates is 1 year

& stipend

Rs.1500 per month ,for

engineering training period is 1 year & stipend Rs. 2000 per month for 1 st
year is Rs.1200 ,2nd year Rs 1500 & 3rd year Rs.1500.

5.3 SELECTION
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Selection procedure of Amul is as under.

Vacancy in any Department

Direct application

Collection of application

Scritinisation of application

Interview

Medical Check up

Selection
5.4 TRAINING & DEVELOPMENT

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Training is or process of leaving a sequence of programmed bahaviour .It is a system


to improve the skill.
Training in Amul is done by three ways.
1.Divisional.
2.Manager proposal.
3.performance Appraisal
Training is provided to the capable & responsible person in Amul.
Manager proposed for training is to be send to different training institutions like
IEM,IRMA etc.Employment are analyzed about their performances to their job. Those
who are selected for training has to submit their report after completed their training.
So, young talented officer are send for training their time period is 2 year.

5.5 PERFORMANCE APPRAISAL

The process of evaluating the performances & Qualificaton of the employees in term
of the requirement of the job for which he employed is said to be performances
appraisal system.
It is highly useful in making decision regarding various personnel Aspect such as
promotion & merit.
Amul adopts two type of Appraisal system.
1.For Nearly joint
2.Promoters from one places to another performances

5.6 PROMOTION
Promotion means increased in authority, responsibility, status, salary etc. It means to
do liftman of an employee with in the organization and push in direction of top level.
The primary purpose of a promotion is to increase the effectiveness
services and profit objective, when employees are placed in position in
which whey can be most productive, change for successful result of the
organization for which they work are consolingly increased. It should be
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the aim, therefore, of any company to change position of employee as


soon as their capacities increase and opportunities warrant.
In AMUL Dairy promotion policy is to take both on merit and or seniority basic they
have eloped merit aim seniority base, generally after every seven years promotion is
given to graduate and diploma holder and who pass I.T.I. and for non-graduated and
non I.T.I. and who passed only S.S.C. then person get promotion after nine years,
Top executives tend to choose those who are carbon copies of them selves.

5.7 TRANSFER
Transfer means change in work, place or department etc. The authority,
responsibilities etc. may be more of less or remain the same.
For the transfer there so no fixed policy. Transfer are made as and when need arise or
when demanded employees.

5.8 WAGE AND SALARY


Amul Dairy normally refers to the weekly or monthly rate paid to decrial
administrative and professional employees.
For unskilled workers Rs. 45 per day, for skilled workers Rs. 3287 per month. Scale
155-359 for Sr. Mgr. Rs. 8532 scale 4100-8050 for assi. General manager scale 30005625.

5.9 OVER TIME WORK


Those wants to work 5 to 6 hours more and above their they get double are overtime
of their salary.
The following is the salary grade and many other allowances, which are given to the
officers and workers for Amul Dairy.

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CHEPTER NO.: 6
SOCIAL RFSPONSIBILITY

Amul and blood donation

Amul in association with the Indian Red Cross Society aim to


inspire, encourage and initiate humanitarian services to
minimize, alleviate and prevent human suffering at all times to
contribute for Humanity to Peace. Towards this objective Amul
initiated blood donation campaign since 1987. Blood donation
camps are organized regularly in rural areas through Village

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Dairy Co-operative Societies. Similarly camps are organized in


Amul Dairy Campus wherein employees and their family
members join in donating blood. In addition, Amul organizes
donation of blood on emergency. Amul has made a trend in
donating blood to the society.
TREE PLANTATION INITIATIVE BY DAIRY FARMERS
In 1946, the unfair trade practises of the middle men brought the
farmers of Kaira to unite and fight against this system which
brought Amul into existence. Their relentless effort in improving
their socio-economic conditions ultimately brought their working
as a model for dairy development programme in our country
popularly known as Anand Pattern. Replication of Anand Pattern
through Operation Flood programme helped India to achieve first
position in production of milk in the world.
DAIRY DEMONSTRATION FARM
As part of Amuls continuous effort to improve the socio-economic conditions and livelihood of dairy
farmers, Amul has come out with various schemes to increase cattle holding per farmer thereby their
income
A Dairy Demonstration Farm (DDF) has been set up at Mogar to demonstrate scientific methods of
dairy farming. The project envisages encouraging the farmers to use high yielding animals and modern
aids to increase milk production.

Amul Scholarships :
To encourage outstanding children of farmers in pursuing higher studies Amul introduced scholarship
schemes in 1992. The children are given scholarships for pursing Diploma, Graduation, Post-Graduation
and Doctorate. Every year the outstanding children are identified from the villages and scholarships are
provided to fulfill their dream of achieving academic excellence. This effort has motivated greatly
children to excel in their studies and spread education in rural areas.
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Amul Scholar Felicitation Programme :


Annually Amul felicitate outstanding children of employees who have
secured highest marks in 10th, 12th standards and Gold Medalist in
graduation. Amul Scholars Felicitation Programme was initiated in
2004 and has facilitated many outstanding students of Amul family.

7. CONCLUSION

AMUL dairy is determined to provide better services to farmer members and pay good prizes
for milk to its members and pay good prize for milk to its members and continue supply good
quality milk, ghee, etc to the consumers at a reasonable prize.The AMUL Dairy provid us
many variety in the different products like milk , butter ,cheese , paneer , sweet , ice-cream ,
lassi , basundi , buttermilk , chocolates , cold-drinks.They always trys to provide best and
hygienic product to their customers. The price of their products are reasonable so any people
can buy it. They maintain their processing plant very well .They have morden machinery and
technology. The union is making reasonable profit to enable dairy to distribute profit to
farmers through society. The coordination and confidence in the management shows the
bright future go the union. AMUL Dairy also present new and tastefull items. They gives
employment to many people. Because of their company many people get employment like
farmers ,workers ,etc. They provide good services and products to the people .In short
AMUL dairy has been able to strike a proper and effective balance between the ever49

increasing expenses and comparative revenues without compromising on the quality of the
product. When I went at AMUL Dairy and visited ,it was wonderfull expience. I got much
kwoladge about dairy product .During make this report I knew that AMUL Dairy is best
organization.

Thank you

8. BIBLOGRAPHY

Times of india newspaper


Websites :
www.amul.com

1 http://www.scribd.com/doc/17116164/Amul -Dairy
2 http://www.scribd.com/doc/79817188/A-Report-on-an-Industrial-Visit-To
3 http://www.scribd.com/doc/51543130/REPORT-ON-INDUSTRIAL-VISITTO-AMUL DAIRY

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4 http://www.scribd.com/doc/62002002/Amul -Dairy-Project
5 http://ebookbrowse.com/mo/Amul -dairy .

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