CHAPTER-1

INDUSTRY PROFILE

Dairy plays a significant part in numerous aspects of Indian society, including cuisine,
religion, culture, and the economy. India has the world's largest dairy herd with over 300
million bovines, producing over 187 million tonnes of milk. India is first among all countries
in both production and consumption of milk. Most of the milk is domestically consumed,
though a small fraction is also exported. Indian cuisine, in particular North Indian cuisine,
features a number of dairy products like paneer. Milk and dairy products play a part in Hindu
religious practice and legend.

Dairy production in the Indian subcontinent has historical roots that go back 8,000 years
to the domestication of zebu cattle. Dairy products, especially milk, were consumed on the
subcontinent at least from the Vedic period. In the mid- to late 20th century, Operation Flood
transformed the Indian dairy industry into the world's largest. Previously, milk production in
India occurred mainly on household farms.

The economic impact of the dairy industry in India is substantial. Most of the milk
produced comes from buffaloes; cow milk is a close second, and goat milk a distant third. A
large variety of dairy products are produced in India. Dairy imports into India are negligible
and subject to tariffs. The domestic industry is regulated by government agencies such as
Ministry of Animal Husbandry, Dairying and Fisheries; National Dairy Development Board;
and Food Safety and Standards Authority of India.

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 CHAPTER -2

COMPANY PROFILE

Amul, is an Indian dairy cooperative society, based at Anand in the Indian state of Gujarat
Formed in 1946, it is a cooperative brand managed by a cooperative body, the Gujarat Co-
operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 36
lakh (3.6 million) milk producers in Gujarat. Amul spurred India's White Revolution, which
made the country the world's largest producer of milk and milk products.

Kaira District Milk Union Limited (later renamed to Amul) was founded in 1946 through the
efforts of three men, Tribhuvandas Patel, Verghese Kurien and H. M. Dalaya. Amul's
foundation was a significant contributor to the white revolution in India.

Tribhuvandas Patel under the guidance of Sardar Vallabhbhai Patel became the founding
chairman of the organization and led it until his retirement in 70s. He hired Dr. Verghese
Kurien in 1949. He convinced Dr. Kurien to stay and help with the mission. Under the
chairmanship of Tribhuvandas, Dr. Kurien was initially the general manager and helped
guide the technical and marketing efforts of Amul. Dr. Kurien was the chairman of Amul
briefly after Tribhuvandas Patel died in 1994.

Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited
with the success of Amul's marketing. Amul has ventured into markets overseas.

MISSION

Our Mission is to manufacture world class products of outstanding qualities, providing

related services and solutions to our client while utilizing latest technologies, highest business
standard, work ethics Corporate Governance so we can make every customer SMILE.

2
VISION

Our Vision is not just to be rated among the top 5 brands of India in Interior Field, but, more
importantly, to strive to attain the leadership position in making our people aware to protect
& save the nature by using plywood and related products for their wood work. Amul Product
List and its brand range

SWOT ANALYSIS

The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’ far outweigh
‘weaknesses’ and ‘threats’. The strengths and opportunities are fundamental and weaknesses
and threats are transitory.

STRENGTHS:

 Demand profile: Absolutely optimistic.

 Margins: Quite reasonable.
 Flexibility of product mix: Tremendous. With balancing equipment, you can keep
on adding to your product line.
 Availability of raw material: Abundant. Presently, more than 80 per cent of
chocolate produced is flowing into the unorganized sector, which requires proper
channelization.
 Technical manpower: Professionally-trained, technical human resource pool, built
over last 30 years.

WEAKNESSES:

 Perishability: Pasteurization has overcome this weakness partially. Which gives

chocolate long life. Surely, many new processes will follow to improve chocolate
quality and extend its shelf life.
 Lack of control over yield: Theoretically, there is little control over chocolate yield.
However, increased awareness of developments like embryo transplant, artificial
insemination and properly managed animal husbandry practices, coupled with higher
income to rural milk producers should automatically lead to improvement in
chocolate.

3
  Logistics of procurement: Woes of bad roads and inadequate transportation facility
make milk procurement problematic. But with the overall economic improvement in
India, these problems would also get solved.
 Problematic distribution: Yes, all is not well with distribution. But then if ice
creams can be sold virtually at every nook and corner, why can’t we sell other dairy
products too? Moreover, it is only a matter of time before we see the emergence of a
cold chain linking the producer to the refrigerator at the consumer’s home!

 Competition: With so many newcomers entering this industry, competition is

becoming tougher day by day. But then competition has to be faced as a ground
reality. The market is large enough for many to carve out their niche.

OPPORTUNITIES:

Value addition: There is a phenomenal scope for innovations in product development,

packaging and presentation. Given below are potential areas of value addition:

 Steps should be taken to introduce value-added products like shrikhand, ice creams,
paneer, khoa, flavored milk, dairy sweets, chocolates etc. This will lead to a greater
presence and flexibility in the market place along with opportunities in the field of
brand building.
 Addition of cultured products like yoghurt and cheese lend further strength - both in
terms of utilization of resources and presence in the market place.
 A lateral view opens up opportunities in milk proteins through casein, caseinates
and other dietary proteins, further opening up export opportunities.
 Yet another aspect can be the addition of infant foods, geriatric foods and
nutritional.
 Export potential: Efforts to exploit export potential are already on. Amul is
exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the
new treaty, opportunities will increase tremendously for the export of agricultural
products in general and dairy products in particular.

4
THREATS:

Milk vendors, the un-organized sector: Today chocolate vendors are occupying the pride
of place in the industry. Organized dissemination of information about the harm that they are
doing to producers and consumers should see a steady decline in their important.

5
 CHAPTER –2

PRODUCT PROFILE

It consists of wide ranges of products which are outlined below:

 Amul Bread Spreads Range

 Amul Beverage Range / Milk Drinks

 Amul Powder Milk Range

 Amul PRO

 Amul Fresh Milk Range

 Amul Cheese Range

 Amul Cooking Range

 Amul dahi Range

 Amul Mithai / Desserts Range

 Amul Health Drink

 Amul Chocolates

 Amul Ice creams

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Amul Bread Spreads Ranges

Amul has varieties of Bread Spreads ranges and are preferred by many consumers on a daily
basis. These are outlined below.

Amul Butter
Amul Butter is made up of pure milk fat. It consists of 100g, 500g, 50g, 20g, and 8.1g
packing. It can be eaten with bread, paratha, roti, nans, and sandwiches.

Amul Lite
Amul Lite is a low cholesterol, low calorie and low fat bread spread. It is available in 100g,
500g, and 200g packing. It is been used for topping on parathas, pav-bhaji, and also for
preparation of cakes.

Delicious Table Margarine

Delicious Table Margarine is the substitute of butter. Margarine is prepared from vegetable
oils and fats. It contains zero cholesterol and fortified with vitamin A & D. 100g, 500g, 200g
tub & Single serve pack are available.

Amul Beverage Range / Milk Drinks

Amul Kool Milk Shake
Amul Kool Milk Shake comes with four awesome flavours which are Banana, Mango,
Strawberry and Badam . The price of this is Rs. 22 for 220 ml can. These are also sold in tetra
pack in three flavours i.e. Mango, Strawberry and Banana. The price of this is Rs 15 for 180
ml tetra brick. It is rich in nutrients and is the healthiest drink against any other soft drinks.

Amul Kool

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Amul Kool is very tasty and healthy drink and come with five flavour i.e, Kesar, Elaichi,
Rose, Mango, and Strawberry. Available in 200ml Glass Bottle, 200ml Tetra Pack, 250ml
Can, and 1 Litre Tetra Pack.

Amul Kool Cafe

Amul Kool Café is a toned milk flavoured with coffee. It is very good and convenient for
parties, picnics, etc. Available in 200ml Glass Bottle, 200ml Tetra Pack, 250ml Can.

Amul Kool Koko

Amul Kool Koko is a Chocolate Flavour Milk. Available in 200 ml Glass Bottle, 250 ml Can,
200 ml Tetra pack.

Nutramul Energy Drink

This is an energy drink and available in 200ml Glass Bottle.

Amul Kool Chocolate Milk

It is chocolate flavoured milk and is available in 200 ml & 1 litre Tetra pack.

Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Bottled Milk comes in four flavour which are Elaichi, Kesar, Rose,
Rose,Badam. It is very delicious and healthy drink. It is also available in 200 ml Tetra pack.

Amul Kool Flavoured Tetra Pack

Amul Kool Flavoured Tetra pack comes in four flavour which are Elaichi, Kesar, Rose, and
Badam. It is very delicious and healthy drink. It is also available in 200 ml Pet Bottle & Glass
Bottles.

Amul Masti Spiced Buttermilk

Amul Masti Spiced Buttermilk is a 100% natural drink and free from artificial Colour,
preservatives, acids and sugar. It is available in 200ml Tetra, 500ml and 1 litre Tetra. The
price of this is Rs. 8, Rs. 15, Rs. 30 respectively.

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Amul Kool Lassee
Amul Kool Lassee is refreshing milk natural drink. It can be served at any convenient place
like parties, picnic and during hot summer.

Amul Kool Thandai

Amul Kool Thandai is also flavoured milk with flavour of traditional Thandai. It is available
in 200 ml Glass Bottle, 200 ml & 1 litre Tetra pack.

Amul Stamina
Amul Stamina is an energy drink which contains electrolytes, vitamin C, minerals, calcium,
milk proteins. It is essential for body growth and muscle building. It is available in 200 ml
Tetra Pack and 250 ml can.

Amul Prolife Probiotic Lassee

Amul Prolife Probiotic Lassee is a flavoured drinking yogurt made up of natural ingredients.
It comes in four flavours i.e. Rose, Cumin, Mango, and Pineapple.

Amul Prolife Butter Milk

Amul Prolife Butter Milk contains probiotic bacteria which help in improving immunity and
digestion. It is natural drink and very good for health.

Amul Powder Milk Range

Amul Spray Infant Milk Food

Amul Spray is used as an infant milk substitute for feeding bottles. It is made from partially
skimmed milk. It contains Vitamins A, D, K, B, C and minerals, Calcium, Magnesium,
Phosphorus, Iron, Copper, Iodine, Manganese and Zinc.

Amul Instant Full Cream Milk Powder

Amul Instant Full Cream Milk Powder is made from toned milk. It has more milk fat as

9
compared to normal milk powder.

Amul Sagar Skimmed Milk Powder

Sagar Skimmed Milk Powder is made from skimmed milk. It is non-fat and rich in protein.

Sagar Tea Coffee Whitener

Sagar Tea Coffee Whitener is made from Milk Solids, Sugar and Hydrogenated Vegetable
Oils. It is mainly used for making tea and coffee.

Amulya Diary Whitener

Amulya Diary Whitener is made from partially skimmed milk and sugar. It is used in
preparing Tea, Coffee, Sweets, Curd, Cakes, etc.

Amul PRO
Amul PRO is a malt based milk additive. It is very easy to make and suitable for people of all
ages, especially kids, who need milk and nutrients. It is to be consumed by adding directly to
the hot or cold milk.

Amul Fresh Milk Ranges

Amul has varieties of fresh milk ranges and are preferred by many consumers on a daily
basis. These are outlined below.

 Amul Fresh Milk

 Amul Gold Milk
 Amul Taaza Double Toned Milk
 Amul Lite Slim and Trim Milk
 Amul Fresh cream
 Amul shakti Toned milk
 Amul Calci+
 Amul Buttermilk

Amul Cheese Range

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Amul has varieties of cheese ranges and are preferred by many consumers on a daily basis
and are used mainly on bread, cooking, pizza etc. It can be eaten with bread, paratha, roti,
nans, and sandwiches.

The cheese types are outlined below:

 Amul Cheese Spreads

 Amul Emmental Cheese
 Amul Pizza Mozzarella Cheese
 Gouda Cheese

Amul Cooking Range

Amul has varieties of cooking ranges. Ghee & Butter is commonly used and is preferred by
many consumers on a daily basis and is used mainly for cooking, making sweets, garnishing
etc. It can be spread with bread, paratha, roti, etc.

The silent features

Ghee is very healthy for our Body. 1 spoon a day of Ghee keeps you fit & strong. Ghee can
be consumed for better digestion. Ghee stimulates muscle movements, strengthens the sense
organ, nourishes the skin and improves complexion. Ghee is good source of energy and
provides vitality to human body.

The Ghee types are outlined below:

Amul /Sagar Pure Ghee

Amul Pure Ghee is made from fresh cream and it is a loved by all the consumers which
provides strength to human body.

Amul Ghee
Amul Ghee is made from fresh cream and it is a good source of energy and provides vitality
to human body.

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Amul Yellow Cow Ghee
Amul Cow Ghee is made from fresh cream and it has typical rich aroma and granular texture.
Amul Cow Ghee is an ethnic product made by dairies with decades of experience, and rich
source of Vitamin A, D, E and K.

Amul Cooking Butter

Amul cooking Butter is used and is preferred by many consumers on a daily basis and is used
mainly for cooking, making sweets, garnishing etc. It can be spread with bread, paratha, roti,
etc.

Amul Dahi Range

Amul Flaavyo Frozen Yoghurt
Amul Flaavyo Frozen Yoghurt is made from natural ingredients and fortified with vitamins.
It contains probiotic bacteria which helps digestion and immunity improvement. It comes in
five flavours i.e, Mango, Pineapple, Strawberry, Vanilla and Misti Doi.

Amul Masti Dahi

Masti Dahi is made from Pasteurized Toned Milk and no preservatives. It is rich in nutrition
as it contains all goodness of milk. It can be consumed directly or can make Lassee, Dahi
Rice, Dahi Wada, etc.

Pro-biotic Dahi
Pro-biotic Dahi helps to improve immune function of the body and maintain healthy
digestion system. It also helps to build stronger bones and teeth.

Amul Mithai / Desserts Range

Amul Shrikhand
Amul Shrikhand is prepared from fresh curd. It comes in many flavours namely Elaichi,
Kesar, Mango, Badam Pista, Amrakhand, Rajbhog, Butter Scotch, Strawberry, Pineapple etc.
It also contains fruits, nuts, cardamom, and saffron. Amul Shrikhand is available at cheapest
rate and the quality is very good for taste and it is very hygienic. It is the only pasteurized

12
Shrikhand available in the country.

Amul Mithai Gulab Jamun

Amul Mithai Gulab Jamun is made from Pure Khoa. It is available in 1 kg & 500gm and its
packing is convenient and also easy to open.

Amul Basundi
Amul Basundi Kesar Elaichi is a traditional Gujarati dessert which is made from condensed
milk. It can be consumed directly or used for preparing Kheer, Kulfi, Milk Shakes, etc. This
is available in 500 ml & 1 Litre Tetra pack.

Amul Avsar Ladoo

Amul Avsar Ladoo is made from high nutrious besan and pure amul ghee. It is very useful
during any occasion or festival.

Amul Mithai Mate

Amul Mithai Mate is a Sweetened Condensed Milk made from pure milk fat. It can used to
prepare Kheer, laddoo, Rasmalai, Baked Products, Cakes, Toppings etc. For household
consumption 400gm tins are available. It is made from pure milk solids, sugar and contain no
preservatives. It can used to prepare Ice Creams, Toffees, Biscuits and Sweets, etc.

Amul Mithai Kulfi Mix

Amul Mithai Kulfi Mix is a Sweetened Condensed Milk made from pure milk fat.

Amul Health Drink

Nutramul
Nutramul is made from malt extracts, Milk Solids, Sugar & Cocoa Powder. It contains
Vitamins, Proteins, Carbohydrates and Minerals. It is very healthy drink and to be consumed
directly adding to milk.

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Amul Shakti White Milk Food
It is healthy drink consumed during morning or evening. It contains Vitamins, Proteins,
Carbohydrates and Minerals.

Amul Chocolates
 Amul Chocolates are made from Sugar, Cocoa Butter, Milk Solids and Chocolate mass.
These are made from rich creamy milk & delicious cocoa. Amul chocolate syrup in bottle
and Jar are available. It can be used on ice cream, cakes, etc.

Amul has varieties of chocolates ranges and are preferred by many consumers on a daily
basis.

 Amul Fruit ‘n' Nut Chocolate Congrats Pack

 Amul Fundoo Milk Chocolate
 Amul Chocozoo
 Amul Cooking Chocolate – Dark Choco Slab and Milk Choco Slab

Amul Ice creams

Amul Ice creams are made from fresh milk and are available in different flavours. It can be
used to prepare sundaes, shakes, etc. Ice creams are much preferred by kids and also all
generations. It is very nice to consume them during anytime, anywhere.
Amul has varieties of ice-creams ranges and are preferred by many consumers on a daily
basis.

Some of them are outlined below.

 Simply Delicious Range

 Nature's Treat
 Sundae Range
 Cassata

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21
 CHAPTER -4

ORGANISATION CHART

HEAD OFFICE

ZONAL OFFICE

DEPOT OFFICE

CARRYING & FORWARDING AGENTS (C & F)

WHOLESALE DEALERS

RETAILERS

CONSUMERS

22
 CHAPTER -5

PRODUCTION PROCESS

FRESH MILK

Fresh milk comes in several forms including full-fat (about 3.8% milk fat on average), low-
fat (less than 1.5% milk fat), skim (no more than 0.15% milk fat), modified (fortified with
extra protein, vitamins or other nutrients), flavoured milk and buttermilk.

CONCENTRATED MILK

Concentrated milk is made by removing moisture from milk. Condensed milk is one form of
concentrated milk, made by increasing milk solids to 28%, canning and then sterilising it.
Sweetener is sometimes added.

Milk powders are another form of concentrated milk. These are made through a similar
process with a milk concentrate made up of about 40% milk solids, which is then dried to
reduce moisture to just 3

LONG LIFE MILK

This milk is superheated so that all microorganisms and heat-resistant enzymes are
deactivated. For example, regular fresh milk is heated to 74°C for 15 seconds, while long-life
milk (otherwise known as Ultra-Heat Treatment or UHT) is heated to 140°C for two seconds

RAW MILK

Raw milk refers to any type of milk that hasn't been treated through a process like
pasteurisation (heated to kill bacteria).

A1 / A2 MILK

A1 and A2 refer to a specific protein found in milk called beta casein. Different breeds of
cows produce milk with more or less of either A1 or A2 protein.

23
This section receives milk from tankers only and is located in the new dairy premises. Here
milk is tested and processed further automatically as per requirements of the other
departments. The milk is also received from other states but only in tankers.

Process flow chart:

Grading and analysis

Not O.K.

Raw chilled milk reception Sample

O.K.

High acid

COB negative

Empty tankers

Raw milk released CIP bay for cleaning

Chille

Raw milk buffer tank Milk clarifier Raw milk silo

Balance tank of the pasteurizer

1st regeneration section of the pasteurizer Separator Surplus cream

Skim milk Balance tank

Online standardization Cream pasteurization Pasteurize

Pasteurized standardized Pasteurized milk silo

a .F-60

b .TFD

c .AMUL II

d .ROAD TANKER

e. RAIL TANKER Packaging machine Pouches

24
Manual placing in crates-each 10 litres

Storage in the cold store at Temperature less than 5 degrees cent.

Dispatch in the trucks.

Parts of this section :

 Reception
 Milk standardization and processing
 Cream processing
 Dispatch

For successful operation of these activities, a control room has been provided. All the
operations in the Dairy are Programmable Logic Controller controlled. A set of logical
programmes through a programmer is prepared on the PC and stored in the memory of the
CPU of the PLC. This is possible due to the microprocessor technology. Whenever the
operator performs the operation these programmes are recalled and executes accordingly the
commands and signals for activating or deactivating the solenoid valves and start and stop of
the pumps are affected.

There is one PLC in the control room. All the parts of the PLC are run on 24 V DC supply
which is converted from 220 v AC supply by the transformer in each unit of PLC. power
breakdown the PLC continues to get the power supply from the UPS system.

The control room has also information system for update of production data of milk,
cream, raw milk intake, central milk reception and dispatch record, inventories, CIP
programming and its timing, trend charts, consumption of steam, electricity, water and
compressed air, etc.

Raw milk is received only in tankers at the 3 bays of reception dock of Amul- 3 process
section. Each reception line has:

 Centrifugal pumps of 30,000 LPH

 Deaerator to remove air from the milk
 Autosampler to take the uniform sample
 Continuous Mass Meter to measure the milk unloaded in Kilograms.

25
It has 5 modules such as

Vortex generator for uniform flow.

Density transmitter that has Americium (Y-RAYS).

Flow transmitter

Non-return valve

Display unit

Duplex filters one for each line

PHE for each filter

Raw milk silos

All the incoming milk is tested by the lab in the control room for % fat,

SNF% acidity as lactic acid, temperature, MBRT and organoleptic evaluation. If the
temperature of the milk is less than 10 degrees Celsius and its acidity is less than 0.136%
L.A., and the fat and SNF percent matches with the delivery challan sent by the centre then
only the milk is unloaded.

26
PACKING DEPARTMENT

Packing includes the activities of designing and producing the container for the product.
Packaging has become the potent marketing tool. Well designed packages can create
convenience and promotional value. Various factors contribute to packaging growing use as a
marketing tool:

 Self service
 Consumer influence
 Company and brand image
 Innovation opportunity

Packaging of the products of AMUL varies according to the nature of the product. As
most of the products are perishable in nature special care is taken in packing them.

MILK AND MILK PRODUCTS are packed in plastic bags or containers, while ICE-
CREAMS AND CHOCLATES are packed in card board packing. The company
maintains the standards prescribed by BIS, with regards to packing. These products are
then packed in cartoons, for greater safety measures and for transporting them to the
market.

Labelling printed information that appears on or with the package, is also a part of
packaging. Labels may range from samples tags attached to products to complex graphics
that are part of the package. Label identifies describes and promotes the product through
attractive graphics. The label might carry only the brand name or great deal of information or
pictures. Even if the seller prefers a simple label the law may require additional information.

The labels of the products of AMUL are attractively designed. It contains all the information
as per statutory requirements. Information like name of product, brand name, logo, date of
packing & manufacturing, expiry date, price, code number, ingredients, storage and usage
instructions, weight, manufacturer’s and marketer’s name, logo showing “ PURE VEG ” etc
appears on the label of the products.

27
MARKETING DEPARTMENT

Segmentation, targeting, positioning in the Marketing strategy of Amul

The segmentation of Amul is the mass population and in general, you will find people of all
different age groups and demography enjoying Amul products. This is because Amul is not
only present in Ice cream, but also in Milk, Butter, Cheese and other such products.

As it has a very deep product portfolio, it does not differentiate in its customers but uses a
mass marketing principle. And till date, this principle has worked very well for the marketing
strategy of Amul. Similarly, the target audience are the regular middle class people.

This is because higher end customers do have a lot of high end products as an alternative in
ice cream. However, for other products like Butter and cheese, both high end and low end
customers are the target. In terms of positioning, Amul has top of the mind positioning
because it is the first brand which comes in mind when talking of Ice cream, milk, cheese,
butter or any other milk based products.

Tagline of Amul

The taste of India.

Competitive advantage in the Marketing strategy of Amul

There are two major competitive advantages of Amul over other brands. First and foremost is
the supply chain. Because of the large numbers of dairy suppliers, Amul has a tremendous
strength and reliability in its supply chain. Hence it is able to produce such high volumes. The
second competitive advantage is the wide product portfolio due to which it can run Amul
shoppe’s and also have its products present in retail. The product portfolio is such that
products like Butter and Ice cream are cash cows for the company

BCG Matrix in the Marketing strategy of Amul

When we plot the BCG matrix, Amul has certain products which are stars whereas others are
cash cows. And in fact, Amul chocolates are question marks because they have very low
market share in a growing market. Amul ice cream and Amul butter can clearly be said to be

28
a cash cow because they have very high market share and the market in itself is growing with
the increase in population.

On the other hand, Dairy products like Milk, buttermilk, cheese, lassi, amul kool etc have a
lot of direct and indirect competition in their niche. However, when compared with the same
type of product, then Amul has a high market share. Thus, these products are stars for Amul.

Distribution strategy in the Marketing strategy of Amul

Like any FMCG company, Amul concentrates on breaking the bulk. It supplies in huge
amounts to its C&F, who is required to have the right arrangements to store Amul products in
bulk. This C&F then transfers the products to distributors who in turn give it to retailers.
Furthermore, Amul has a direct sale team too which sells to modern retail. Besides this, the
company has exclusive Amul stores which sell all products of Amul brand. Thus, in the
marketing strategy of Amul, distribution is another strength of the brand.

29
HUMAN RESOURCES DEPARTMENT

Human Resource Management has come to be recognized as an inherent part of

management, which is concerned with the human resources of an organization. Its

objective is the maintenance of better human relations in the organization by the

development, application and evaluation of policies, procedures and programmes

relating to human resources to optimize their contribution towards the realization of

organizational objectives.

In other words, HRM is concerned with getting better results with the collaboration of

people. It is an integral but distinctive part of management, concerned with people at

work and their relationships within the enterprise. HRM helps in attaining maximum

individual development, desirable working relationship between employees and

employers, employees and employees, and effective modeling of human resources as

contrasted with physical resources. It is the recruitment, selection, development,

utilization, compensation and motivation of human resources by the organization.

Human resources may be defined as the total knowledge, skills, creative abilities, talents

and aptitudes of an organization's workforce, as well as the values, attitudes, approaches

and beliefs of the individuals involved in the affairs of the organization. It is the sum

total or aggregate of inherent abilities, acquired knowledge and skills represented by the

talents and aptitudes of the persons employed in the organization.

The human resources are multidimensional in nature. From the national point of view,

human resources may be defined as the knowledge, skills, creative abilities, talents and

aptitudes obtained in the population; whereas from the viewpoint of the individual

enterprise, they represent the total of the inherent abilities, acquired knowledge and

30
skills as exemplified in the talents and aptitudes of its employees

Function of Human Resource Department

 RECRUITMENT AND SELECTION

 TRAINING AND DEVLOPMEN
 PERFORMANCE APPRAISAL
 SALARY AND WAGE ADMINISTION
 EMPLOYEE TURNOVER
 COMPENSATION
 INDUSTRIAL RELATION
 FACTORE ACT
 INDUSTRIAL DISPUTE ACT
 HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Recruitment and Selection Function

Recruitment:

There are two types of Recruitment sources followed by Amul:

 External Sources
 Internal Sources

Internal Sources

Internal sources include personnel already on the payroll of the organization.

 Present Permanent Employees.

 Employee Referrals
 Former Employee

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External Sources

These sources lie outside the organization In Amul they consider following sources for
recruitment:

 Campus Interview
 Unsolicited Application
 Application Blank
 Placement Agencies

Selection:

Selection procedure is concerned with securing relevant information about the applicant.

The main objective of selection process is to determine whether an applicant meets the

qualification for a specific job and choose the application that is most likely to perform

well in the job.

The Selection process in AMUL is as under

 Vacancy in any department

 Approval from M.D
 Advertisement
 Collection of application
 Securitize the application
 Interview
 Medical check-ups

Selection

After selection, the employees generally have probation period. In AMUL

probation period is different for different type of employees. Probation period for

officers is 12 months, 6 months for clerical employees and 3 month for workers.

Training and Development

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It is a subsystem of an organization. It ensures that randomness is reduced and learning

or behavioural change takes place in structured format. Training is the process where the

work related knowledge, skills and attitude are given to new employees. By which they

aware the policies rules and increase technical and manual efficiency and create of

responsibility.

AMUL has accepted these methods for the training

 On the job method

 Off the job method
 In house training
 Out house training

Training Procedure in Amul

Identification of need of Training

Module Preparation

Selection of Employee for the Training

Training

Feedback

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Performance Appraisal

Performance appraisal is the process of evaluating the performance and qualification of

employees in terms of the requirement of the jobs for which they are employed. It is

highly useful in making decision regarding the promotion, transfer, wage and salary

administration etc.

Wages and Salary

 A common method is followed for the wage and salary administration

according to “Muster roll “.

 Timekeeper sends that muster roll to the account department for attendance of

each and every employee.

 After this salary is calculated for each employee through computer according

to that they prepare salary sleep of employees.

 Wage Structure (Approximately)

Post Grade Pay scale

Managing Director Manager 21000-28000

General Manager 15000-21000

Assistant General Manager 7000-15000

Assistant Clerical 2500-7500

Senior clerk Worker 2000-5000

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FINANCE DEPARTMENT

A country like India is deep-rooted in its agriculture and cattle rearing and hence this is
something that the nation can rely on when it comes to business. The dairy industry has been
responsible for India’s economic growth since the time of independence. A name that has
been majorly associated with this dairy business in the country is AMUL or Anand Milk
Union Limited. It has been a popular brand name for the milk producers of the Kaira District
Co-operative Union since 1955. It has its daily network that is spread all across Indian states
as well as abroad in central Asian countries like Bangladesh, Thailand, Indonesia, Malaysia,
and Singapore. The Amul had begun with a very little source of milk that was 250 litres and
only 2 societies and in today’s world it produces more than 15 lakh litres milk per day and
has more than 1113 societies with 6 lakhs plus farmer members. It has completed its 73rd
year on the 14th of December 2017.

Global Agreements

 It has entered the markets of countries like USA, Nepal, South Africa, Kenya, Bhutan
and Australia.
 Wal-Mart has agreed to sell Amul products on its shelves with the brand name being
the same.
 Glaxo & Amul have tied up to produce baby food together.

If you look at the organizational structure of Amul you may notice it is a three-tier co-
operative organization. The first tier has the co-operative society of a village whose members
are the milk producers. This society is managed by the democratically elected 9-member
managing committee.

The second tier is the district co-operative that converts the milk into mil products introduces
them to the local market and sell the surplus to the state co-operative for international and
national marketing.

The third and the last tier is the state level co-operative namely, Gujarat Co-operative Milk
Marketing Federation (GCMMF). This tier takes the complete responsibility or marketing the
products international and national market.

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This acts as a complete mechanism that works together keeping GCMMF at the top of its
pyramid and forms a chain that involves the production of raw material as well as its
distribution as a finished product in the buyer’s market. The man work involved in this
functioning can be accounted as 23.60 lakh primary producers of milk; 35,000 workmen at
rural areas in more than 11,400 village societies; 12,000 workers in 15 dairy plants; 750
marketing professionals; 10,500 salesmen in the distribution network and 600,000 salesmen
in the retail network.

Finance Management

This is a process that involves planning and controlling of the company’s financial resources.
All other departments of the company strongly depend upon the finance department to go on
with their departmental activities individually.

Objectives of Finance Management

1.Maximize the profit –the main objective is to increase the profit as much as possible. This
has to be done with keeping in mind the returns for the company.

2.Process –Analysis, Decision Making, Planning, & Control. These are the steps that are
followed to manage the financial resources of the company efficiently.

Importance of Finance Management

For the growth of a company like Amul management of finances is very important. Without
this, the business cannot survive or expand in this competitive market. Here are some points
that make it highly important for an organization:

 Promoting the business

 Decision Making
 Successful business
 Measuring the Performance
 Helpful for Shareholders & Investors

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Sources of Capital for Amul

 As the products are sold on a daily basis to Gujrat Co-operative Marketing Federation
(GCMMF). An amount is given by the federation to the union so that it gets paid for
the sale of its products.
 The societies that are involved in its functioning hold fixed deposits that act as a
major source of capital.
 As these Fixed deposits release some kind of Interest when deposited in banks like
UTI, BOB etc. These act as another source of the finance.
 The share capital is not public hence it is not listed in the market it is exclusively for
the members of the society.

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QUALITY CONTROL

There are various functions carried out in the quality control department.

STEPS IN QUALITY CONTROL DEPARTMENT:

 Samples are taken from every milk tin that are from various co-operative societies
 These samples are further given for the laboratory testing which is performed using
the lactometer. The temperature of milk may range from 27.5%C to 29%C.
 Thermometer testing is made after the testing using the lactometer test.
 Electronic milk tester is used to analysis the fat content in the milk which are raw
milk fat- 3.3% and SNF 9%.
 The sample milk in test tube is placed under a time machine for 3 mins holding 10.75
ml of milk, 1 ml alcohol and 10 ml sulfuric acid to test the fat content.
 Finally, 10 ml of pasteurized milk and 1 ml of methyl blue that turns the solution blue
is kept under water bath and heated at 37.5 temperatures. If the colour changes to
white before 5 hrs from the time of processing, the quality of the milk is considered
low and is sent for the process else they are packed.

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CONCLUSION

This is the vision of the future which the company sees for itself:

‘‘AMUL will be an outstanding marketing organization, with specialization in marketing of

food and dairy products, both fresh and long life with customer focus and information
technology integration.

The network would consist of over 100 offices, 7500 stockists covering at least every taluka
head quarter town, servicing nearly 10 lakh outlets with a turnover of Rs.10,000 Crore and
serving several co-operatives.

AMUL shall also create a market for its products in the neighbouring countries.”

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