ACKNOWLEDGEMENT

Every work accomplished is a pleasure a sense of satisfaction. However a number of people always motivate, criticize and appreciate a work with their objective ideas and opinions, hence We would like to use his opportunity to thank all, who have directly or indirectly helped us to accomplish this project. Firstly I would like to thank R.K. Pandey sir without whose support this project could not be completed. Next we would like to thank all the people, who gave their valuable time and feedback to this project. We would also like to thank my college for supporting us with resources, which beyond any doubt have helped me. Let me also use this opportunity to thank our team members who have contributed to this project with their invaluable opinions and suggestions, which has gone a long way in soothing our rough edges as a teammate.

Introduction

GCMMF LTD Obstacles: Springboards for success.

Each failure, each obstacle, each stumbling block can be turned into a success story. In the early years, Amul had to face a number of

problems. With every problem came opportunity. A chance to turn a negative into a positive. Milk by products and supplementary yield which suffered from the same lack of marketing and distribution facilities became encumbrances. Instead of being bogged down by their fate they were used as stepping stones for expansion. Backward integration of the process led the cooperatives to advances in animal husbandry and veterinary practice.

About the Company

Two key requirements were identified. The first, that sustained growth for the long term would depend on matching supply and demand. It would need heavy investment in the simultaneous development of suppliers and consumers. Second, that effective management of the network and commercial viability would require professional managers and technocrats. To implement their vision while retaining their focus on farmers, a hierarchical network of cooperatives was developed, which today forms the robust supply chain behind GCMMF's endeavors. The vast and complex supply chain stretches from small suppliers to large fragmented markets. Management of this network is made more complex by the fact that GCMMF is directly responsible only for a small part of the chain, with a number of third party players (distributors, retailers and logistics support providers) playing large roles.Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by low consumer prices supported by a low cost system.

Managing the supply chain

Even though the cooperative was formed to bring together farmers, it was recognised that professional managers and technocrats would

be required to manage the network effectively and make it commercially viable.

Coordination
Given the large number of organisations and entities in the supply chain and decentralised responsibility for various activities, effective coordination is critical for efficiency and cost control. GCMMF and the unions play a major role in this process and jointly achieve the desired degree of control. Buy-in from the unions is assured as the plans are approved by GCMMF's board. The board is drawn from the heads of all the unions, and the boards of the unions comprise of farmers elected through village societies, thereby creating a situation of interlocking control. The federation handles the distribution of end products and coordination with retailers and the dealers. The unions coordinate the supply side activities. These include monitoring milk collection contractors, the supply of animal feed and other supplies, provision of veterinary services, and educational activities.

Establishing best practices

A key source of competitive advantage has been the enterprise's ability to continuously implement best practices across all elements of the network: the federation, the unions, the village societies and the distribution channel. In developing these practices, the federation and the unions have adapted successful models from around the world. It could be the implementation of small group activities or quality circles at the federation. Or a TQM program at the unions. Or housekeeping and good accounting practices at the village society level. More important, the network has been able to regularly roll out improvement programs across to a large number of members and the implementation rate is consistently high.

The most impressive aspect of this large-scale roll out is that improvement processes are turning the village societies into individual improvement centers.

List of Products Marketed:

Breadspreads:
Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter

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)

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

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) Amulspray Infant Milk Food

Milk Powders:
Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener

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 Standardised 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

Amul Icecreams:
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, Megabite, Cassatta) Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, 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

Health Beverage:
Amul Shakti White Milk Food

DISTRIBUTION NETWORK Consumers expect marketers to deliver products in the locations and forms they require. To meet expectations of such demanding consumers, alignments of our four Distribution Highways of Fresh, Chilled, Frozen and Ambient products were already made by introducing Project DIL. Subsequently, a major initiative was taken to enhance distribution network to smaller towns. About 1200 distributors in small towns across India were added during this initiative. Today about 3000 Distributors ensure availability of our products across India, whether it is in Leh or Lakshadweep, in Kutch or Arunachal. Simultaneously, to augment fresh milk distribution in various markets of India, approximately 1400 exclusive Milk Distributors have been inducted. Last year, we divided the retail market into 14 specific segments to achieve further distribution efficiency. This year our focus was on inducting distributors having expertise in servicing such specific market segments. This initiative is yielding results by way of ensuring wider availability of our product range. The role of distributors in our business process has never been more diverse or more important, as it is today. As a matter of fact, we consider our Distributor to be the real Marketing Manager of our organization. To enhance business performance of our Distributors, a workshop on Marketing and Sales Management was designed in collaboration with a premier business school. The objective of the entire initiative was to upgrade the knowledge of our Distributors in terms of contemporary Business Management Practices, so that they can perform well not only as our business partner but also as Marketing Managers. During the year, 659 Distributors have undergone this programme in 39 locations. Cold Storage is an extremely essential component in the Federations distribution process. Unfortunately, availability of efficient cold

storage facilities is grossly inadequate in our country. To cope up with the increasing need of suitable cold stores closer to our markets, we have continued our endeavour of creating the Federations own cold stores this year in various locations across the country. We now own 24 state-of- the art cold rooms of different sizes. To get an exposure to our cooperative structure, our culture as well as operational systems and processes, every year we invite our distributors, major retailers and other business partners to Anand, for Amul Yatra. So far, about 7000 Distributors and other business partners have participated in this Amul Yatra.

Corporate Social Responsibility, The Amul Way

Corporate social responsibility (CSR) has been defined as the commitment of business to contribute to sustainable economic development working with employees, their families, the local community, and society at large to improve their quality of life, in ways that are both good for business and good for development. To meet with the CSR it is expected that a business in its entire procurement-production-processing-marketing chain should focus on human development involving the producer, the worker, the supplier, the consumer, the civil society, and the environment. Indeed, a very tough task. Most businesses would certainly flounder in not being able to achieve at least one or many of those expectations. But AMUL has shown the way. CSR-sensitive Organizational Structure AMUL is a three tier co-operative organization. The first tier is the cooperative society at the village, of which; milk producers are voluntary members, managing the co-operative through a democratically elected 9-member managing committee, and doing business by

purchasing milk from members and selling it to the district level cooperative. There are more than 11,000 co-operatives in villages of Gujarat. The second tier is the district co-operative that processes milk into milk products, markets locally and sells surplus to the state cooperative for national and international marketing. There are 12 district co-operatives each being managed by a 15-member board elected by the college comprising the nominated representatives or chairmen of the village co-operatives. Third tier is the state level co-operative - the Gujarat Co-operative Milk Marketing Federation (GCMMF) responsible for national and international marketing of milk and milk products produced and sold to it. The GCMMF is managed by the board democratically elected by and from amongst the chairmen of the district co-operatives. The entire three-tier structure with the GCMMF at its apex, is a unique institution because it encompasses the entire chain from production of raw material to reaching the consumer with the end product. Every function involves human intervention: 23.60 lakh primary milk producers; 35,000 rural workmen in more than 11,400 village societies; 12,000 workers in 15 dairy plants; 750 marketing professionals; 10,500 salesmen in distribution network and 600,000 salesmen in retail network. Accumulation of human capital is sine qua non for the development and growth of any enterprise or economy. The GCMMF is sensitive towards CSR. It believes that technology and capital are replicable inputs but not the human capital. Amul (Gujarat Co-operative Milk Marketing Federation), India is the largest food production organisation in India and have contributed their growth and success to their co-operative culture, co-operative networking, market acumen, respect for both producer and the consumer and their contribution to social integration among members of different backgrounds. They aim to provide remunerative returns to farmers and members. When the 2001 Gujarat earthquake struck, the Amul Relief Fund donated 50 million Indian rupees to reconstructing schools.

AMUL RELIEF TRUST

A devastating earthquake (Richter scale 7.9) hit Gujarat on 26th January 2001. The epicenter of the quake was located in Kutch district. It caused death of thousands of people, tens of thousands

were injured, hundreds of thousands were rendered homeless and damage of billions of Rupees was done. GCMMF formed a specific organization named Amul Relief Trust (ART) under the Chairmanship of Dr. V. Kurien in 2001 with a donation of Rs. 50 Millions for reconstruction of the school buildings damaged in the 2001 earthquake in the Kutch area. The Trust reconstructed 6 schools damaged by the above earthquake at a cost of Rs. 41.1 millions in Kutch area. Four of these schools started re-functioning from the last two academic sessions and the other two schools from the current session.

A school reconstructed by Amul Relief Trust in the earthquake affected Ratadia Village in Mundra Taluka of Gujarat

A school reconstructed by Amul Relief Trust in the earthquake affected Devpar Village in Mandvi Taluka of Gujarat

A school reconstructed by Amul Relief Trust in the earthquake affected Devpar Village in Mandvi Taluka of Gujarat

Future Plans Amul to foray into bottled water

To capitalise on its tremendous brand equity and offset the margin pressure on the dairy business, Amul is planning to foray into the bottled water segment starting with its home state, Gujarat. The brand name of the water shall be Narmada Neer to capitalise on the sacred status of Narmada river in Gujarat. It would be available in 200ml pouches, 1 litre, 5 litre and 20 litre PET bottles. If the product get accepted in Gujarat, the venture would be extended to other states in Indian and then Amul could piggy back on its extensive retail network of five lakh outlets across the country. Bottled water could otherwise provide good margins and the profits from the venture would be primarily used for welfare of families in the Amuls dairy trade. 10 years back, Amul did take a shot at bottled

water through Jaldhara which was produced by NDDB. However the venture failed owing to less demand for packaged water in market. But with this market growing bigger and expected to grow at 40% every year, Amul is surely going to benefit. Another positive for the company is that 40% of total national market for packaged bottled drinking water is in western India, which Amul is exploring initially. But going by scale and investments of Amul, it would seem that the venture would be albeit on a shorter scale and done only to fulfill corporate social responsibility.

BIBLIOGRAPHY
WEB SITES SERVED:
WWW. GOOGLE.COM. WWW.AMUL.COM. WWW.WIKIPEDIA.COM.

BOOKS REFERED:
BOOKLET OF AMUL BY KHAIRA UNION DISTRICT.

PLACES VISITED:
ANAND (GUJARAT). AMUL KHAIRA UNION DISTRICT.