GAUHATI UNIVERSITY

A Training Report submitted in partial fulfillment of the requirements for the award of the
Degree of the Master Of Business Administration (IIP), Gauhati University on

“CRITICAL ANALYSIS OF THE MILK

MARKET WITH SPECIAL REFERENCE TO
AMUL MILK”

Under Organization Guidance Of : Under Institutional Guidance Of :

Mr. Narendra Sinha Prof. A Basu
Global School Of Management
Science New Delhi

Prepared And Submitted By :

Kaushlendra Kumar
G.U. Registration No. : 003880 of 2009-11
 ACKNOWLEDGEMENT

Completing and writing a report on my thesis is a satisfying event and the pleasant part is the
opportunity to thank those who inspired, contributed and co-operated it. I would like to avail
this opportunity to express my sincere thanks to all those have helped me in making this
summer training project a success. Even a most vivid collection of words admittedly yield to
express my heart felt thanks towards one and all those selflessly assisted me in my
expeditions of carrying out this project.

On successful completion of this project first & foremost, I would like to thank my guide and
motivator Mr. Narendra Sinha for giving me an opportunity to work in their organization
under hire valuable guidance and support. I would also like to thank Mr. Arvind Basu for his
valuable guidance, co-operation & friendly attitude without which it was difficult to achieve
this quality of result. I am grateful to each & every employee of AMUL who made my stay
easy & working comfortable.

I am really indebted to all the faculty members of the management department . Who taught
me the ABC of management and under whose guidance I learnt various subjects of
management & reached the stage of preparing this project work.

At last but not the least I would like to thank and give special credit to my parents without
them my report could not be completed and today I feel and take great pride when I think that
I am their son.

Kaushlendra Kumar
MBA

2
 EXECUTIVE SUMMARY

A well planned properly executed and evaluated project for management students. Writing a
thesis is an integral part of MBA curriculum and each student has to undergo to learn better.
Thesis, aim at making students aware of real market conditions.

On getting an opportunity to work with “Gujarat cooperative Milk Marketing Federation”

(GCMMF) and AMUL as a part of my study the topic given was “CRITICAL ANALYSIS
OF THE MILK MARKET WITH SPECIAL REFERENCE TO AMUL MILK”.

During this period I got lots of experience and came to know about the real market and how it
differs from theoretical one. It helps the to develop their products better than their
competitions and captured the market share to increase the sales and ultimately achieving
organizational goal and objectives.

In this project my area of concern is to find the customer satisfaction rate of AMUL milk and
problems faced by ADA and retailers, while promoting AMUL in liquid milk segment. I feel
lucky to get this type of opportunity from such a prestigious organization.

TABLE OF CONTENTS

3
1. INTRODUCTION

 About the company

 Distribution Of Amul

2. RESEARCH METHODOLOGY

 Research objectives

 Research design

 Data sources

 Questionnaire design formulation

 Sample design

 Limitations of the research

3. COMPANY PROFILE

 Market Presence

 Range of products and services

 SWOT Analysis

4. DATA ANALYSIS AND INTERPRETATION

5. CONCLUSIONS / FINDINGS

6. RECOMMENDATIONS

7. ANNEXURES

8. BIBLIOGRAPHY / REFERENCES

4
 PROCESSING OF MILK

MANUFACTURING PROCESS

Milk is pasteurized by treating it to high temperature for a short time. The main aim in
treating milk with high temperature is to destroy the disease causing pathogens and to
improve keeping quality.

Separation machine is typically a high powered centrifuge. The centrifugal force makes milk
fat globules and emerges as cream from the separator bowl. Separation of cream produces
skim milk from which several dairy products are made.

Baby food: Fresh milk, which is received from farmers/ traders, is chilled and stored. Then
MSK skimmed/ wet skimmed milk and sugar are added in turbo mixture to achieve the
desired specifications of ingredients in the milk. This is followed by addition of vitamins and
minerals. This milk which contains ingredients to specifications is filtered, cooled, analyzed
and then purified. Then it passes through specific pasteurization and is taken to evaporator for
pre-condensing. Pre-condensate is homogenized, cooled and stored. Cooled pre-condensate is
heated and dried in spray drier (Egron). Then sugar is added. The powder is then passed
through chemical analysis to check quality and is filled in tins through filling machines.
These tins are gassed during gas mix and then sealed, packed and dispatched in cardboard
cartons.

5
Production of milk in India

Year Production in million MT

1990-91 56.3
1991-92 58.6
1992-93 61.2
1993-94 63.5
1994-95 65
1996-97 68.5
1997-98 70.8
1998-99 74.7
1999-00 78.1
2000-01 81.0
2001-02 83.4
2002-03 86.5
2003-04 90
2004-05 93.2
2005-06 97.1
2006-07 100.9
2007-08 103
2008-09 104
2009-10(E) 109
2010-11(T) 113

E= estimated T= target / expected Source: DFPI, Annual Report-2009-2010

COMPANY PROFILE

6
Gujarat Cooperative Milk Marketing Federation

“GUJARAT COOPERATIVE MILK MARKETING FEDERATION” (GCMMF) is a

farmer’s cooperative in India marketing the dairy products of milk cooperative in the state of
Gujarat. It has been a successful enterprise, and its flagship brand Amul has become one of
the best-recognized brand names in India. Due to supply side difficulties thanks to the growth
rate in milk procurement hitting a plateau and diversification in the processed food such as
juices jams and sauces possibly leveraging its name and brand image.

The case describes the history of GCMMF , and the characteristics of the diary as well as
processed food businesses. The case also describes the organizational parameters of enable
an assessment of its strengths and weaknesses it ends with then question of whether to
diversify , and if so, the implications :and if it does not , what it should do about its milk
business.

Formed in 1946, Amul began the dairy cooperative movement in India and formed an apex
cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF),
which today is jointly owned by some 2.2 million milk producers in Gujarat, India.

Its products, including milk powders, liquid milk, flavored milk (Amul Kool), Sweetened
Condensed Milk, butter, ghee, cheese, chocolate, ice cream, pizza, paneer, shrikhand, Cream,
Mithaee, Amul Masti Dahi and the Amul Shakti & Nutramul brand of Health food drink are
widely used throughout India and abroad and have made Amul the largest food brand in India
today with an annual turnover of some Rs. 67.11Billion ($US 1342.2 million) per annum.

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Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which
aims to provide remunerative returns to the farmers and also serve the interest of consumers
by providing quality products which are good value for money.

CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned
its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.

Members: 13 district cooperative milk producers'

Union

No. of Producer Members: 2.79 million

No. of Village Societies: 13,328

Total Milk handling capacity: 11.22 million litres per day

Milk collection (Total - 2008-09): 3.05 billion litres

Milk collection (Daily Average 8.4 million litres

2008-09):

Milk Drying Capacity: 626 Mts. per day

Cattlefeed manufacturing 3500 Mts per day

Capacity:

8
SALES

During the year, your Federation's sales registered a growth of 1.4 percent to reach Rs.67.11
billion. This lower than expected overall growth was owing firstly to low procurement of
milk during the first half of the year, and secondly to unfavorable commodity market prices
when procurement normalized. However, It is pleased to note that Federation has done
remarkably well in most of the consumer packs. As it have stated earlier, a cooperative must
increasingly rely upon branded products-rather than upon commodities-to achieve power in
the market.

Thus, the dairy line in consumer packs grew by 11.8 percent during the year. Sales of Amul
Milk (in pouches) increased by 36 percent in value terms. A notable development in the area
of liquid milk in pouches has been the successful launch of Amul Milk in the Kolkata market
during December 2004. UHT Milk has grown in value terms by 23 percent. Amul ice cream
achieved a sales value growth of 10 percent, and has strengthened its position as the
undisputed market leader. Despite intense competition, sales value of Amul Butter grew by
4.5 percent. The sales of the Amul Cheese range increased by 21 percent. Products like
Flavored Milk, Amul Fresh Cream, Paneer, Mithaimate, Softy Mix, and fresh curd
demonstrated their potential to become dominant brands in the coming few years. We have
launched a promising new product called Amul Masti Spiced Buttermilk during the year.

9
 Sales Turnover Rs (million) US $ (in million)
1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504

FRESH

 Amul Taaza Toned Milk 3% fat

 Amul Gold Full Cream Milk 6% fat
 Amul Shakti Standardized Milk 4.5% fat
 Amul Slim & Trim Double Toned Milk 1.5% fat
 Amul Saathi Skimmed Milk 0% fat
 Amul Cow milk

10
RELEVANTS ACHIEVEMENT

 Ramakrishna Bajaj National Quality award 2003

 Rajeev Gandhi National Quality Award 1999.
 Most Respected Company Award VI in overall and III in FMCG sector by reputed
Indian business magazine – Business World
 Among top ten brands (overall), reputed marketing magazine – Advertising &
Marketing (A&M)
 Many other Awards won at different platforms.

The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the top scorer in
the service category of the prestigious IMC Ramakrishna Bajaj National Quality Award -
2003. The Certificate of Merit was presented at a glittering ceremony held at Mumbai on
March 11 by the Governor of the Reserve Bank of India, Dr. Y. V. Reddy. According to Shri
B. M. Vyas, Managing Director, GCMMF, this recognition has once again reiterated
GCMMF's commitment to quality and excellence.

The biggest strength of GCMMF is the trust it has created in the minds of consumers
regarding the quality of its products. GCMMF and its brand Amul stands for guaranteed
purity for whatever it produces he added.

GCMMF has bagged this award for adopting noteworthy quality management practices for
logistics and procurement. Over the years, it has established an efficient supply chain that
penetrates even the remotest corners of the country. The information systems of the
Federation are comprehensive and include details on product quality, delivery performance,
supplier quality, disaster recovery and all essential commercial areas, the citation reads.

The Ramakrishna Bajaj National Quality Award is based on framework and principles almost
similar to the Malcolm Baldrige Award that is given by the President of the United States to
businesses - manufacturing and service, small and large - and to education and healthcare
organizations that apply and are judged to be outstanding in seven areas: leadership, strategic
planning, customer and market focus, information and analysis, human resource focus,
process management, and business results.

11
 GCMMF ORGANISATION STRUCTURE

MEMBER
FARMERS

VILLAGE SOCIETY

CHILLING CENTER

DISTRICT LEVEL UNION COOPERATIVE

DEPOT WAREHOUSE

AREA DELIVERY AGENTS (ADA) HOUSE DELIVERY AGENTS (HAD)

INSTITUTIONS (RESTAURANTS / MITAIWALA)

RETAILER

CONSUMER

12
 THE ANAND PATTERN

Maximizing farmer profit and productivity through cooperative effort is the hallmark of the
Anand Pattern.

The Anand Pattern is an integrated cooperative structure that procures, processes and markets
produce. Supported by professional management, producers decide their own business
policies, adopt modern production and marketing techniques and receive services that they
can individually neither afford nor manage.

The Anand Pattern succeeds because it involves people in their own development through
cooperatives where professionals are accountable to leaders elected by producers. The
institutional infrastructure -- village cooperative, dairy and cattle feed plants, state and
national marketing -- is owned and controlled by farmers.

Anand Pattern cooperatives have progressively, linked producers directly with consumers.

The Village Society

An Anand Pattern village dairy cooperative society (DCS) is
formed by milk producers. Any producer can become a DCS
member by buying a share and committing to sell milk only to the
society. Each DCS has a milk collection centre where members
take milk every day. Each member's milk is tested for quality
with payments based on the percentage of fat and SNF. At the
end of each year, a portion of the DCS profits is used to pay each
member a patronage bonus based on the quantity of milk poured.

13
The District Union
A District Cooperative Milk Producers' Union is owned by dairy
cooperative societies. The Union buys all the societies' milk, then
processes and markets fluid milk and products. Most Unions also
provide a range of inputs and services to DCSs and their members:
feed, veterinary care, artificial insemination to sustain the growth of
milk production and the cooperatives' business. Union staff train and
provide consulting services to support DCS leaders and staff.

The State Federation

The cooperative milk producers' unions in a state form a State
Federation which is responsible for marketing the fluid milk and
products of member unions. Some federations also manufacture feed
and support other union activities.

14
Check out this vast and ever-growing range of 'tasteful' Amul delectable!
Bread Spreads
Amul Butter Amul Lite
Utterly Butterly Delicious Low fat, low Cholesterol
Bread Spread

Delicious Table Margarine

The Delicious way to eat
healthy

Powder Milk
Amul Spray Infant Milk Amul Instant Full Cream
Food Milk Powder
Still, Mother's Milk is Best A dairy in your home
for your baby

Sagar Skimmed Milk Sagar Tea Coffee Whitener

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

Amulya Dairy Whitener

The Richest, Purest Dairy
Whitener

Fresh Milk

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 Amul Fresh Milk Amul Gold Milk
This is the most hygienic
milk available in the
market. Pasteurised in state-
of-the-art processing plants
and pouch-packed for
convenience.

Amul Taaza Double Toned Amul Lite Slim and Trim

Milk Milk

Amul Fresh Cream Amul Kool Chocolate Milk

Amul Kool Flavoured Amul Kool Flavoured Tetra

Bottled Milk Pack

Amul Shakti Toned Milk Amul Masti Spiced

Buttermilk
Amul introduces the Best
Thirst Quenching Drink

Cheese

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 Amul Pasteurised Amul Cheese Spreads
Processed Cheese Tasty Cheese Spreads in 3
100% Vegetarian Cheese great flavours..
made from microbial rennet

Amul Emmental Cheese Amul Pizza Mozzarella

The Great Swiss Cheese Cheese
from Amul, has a sweet-dry Pizza cheese...makes great
flavour and hazelnut aroma tasting pizzas!

Gouda Cheese

For Cooking
Amul / Sagar Pure Ghee Cooking Butter
Made from fresh cream.
Has typical rich aroma and
granular texture. An ethnic
product made by diaries
with decades of experience.

Amul Malai Paneer Utterly Delicious Pizza

Ready to cook paneer to
make your favourite
recipes!

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 Mithai Mate Masti Dahi
Sweetened Condensed Milk
- Free flowing and smooth
texture. White to creamy
color with a pleasant taste.

Desserts
Amul Ice Creams Amul Shrikhand
Premium Ice Cream made in A delicious treat, anytime.
various varieties and
flavours with dry fruits and
nuts.

Amul Mithaee Gulab Gulab Jamun Mix

Jamuns
Pure Khoya Gulab
Jamums...best served piping
hot.

Amul Chocolates Amul Lassee

The perfect gift for someone
you love.

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 Amul Basundi

Health Drink
Nutramul Amul Shakti Health Food
Malted Milk Food Drink
made from malt extract Available in Kesar-
has the highest protein Almond and Chocolate
content among all the flavours.
brown beverage
powders sold in India.

19
 ABOUT MILK

WHAT IS MILK?

One of the most versatile foods consumed by human beings. All children start their life with
mother’s milk and continue to use it in one form or other throughout their. It is the secretion
from the mammary glands of a lactating mammal. The white fluid, known as milk, is made
up of milk fat and other milk solids.
Milk is the complete natural food contains many nutrients which give us physical strength
and mental growth.Ideal temperature for storage of milk is below 5 degree Celsius. Bacterial
growth starts when temperature exceeds this temperature.

Milk is in abundant in monsoon and winter. In summer the fodder becomes scarce. Less
fodder for cattle to eat means less milk production.
Milk is a high nutritive value food. It supplies body building protein, bone forming minerals,
and health giving vitamins and furnishes energy giving lactose and milk fat in easily
digestible and assailable form.

MILK

TOTAL SOLID (15%)

WATER (85%)

FAT Solid Not Fat

Vitamins s Cholestero Minerals Proteins Sugar

20
PASTEURIZATION:-
It was discovered by French scientist – Louis Pasteur. It is heating milk and milk products to
at least 72 d Celsius for 15 sec in order to destroy germs. After this the milk is immediately
cooled to 5deg Celsius or below.

Bacterial growth takes place when temperature exceeds 5d. The purposes of the above
processes are:

 To render milk safe for human consumption by destruction of cent per cent
pathogenic micro-organisms.
 To improve the keeping quality (self life) of milk by destruction of almost all spoilage
organisms (85 to 99percent)

HOMOGENIZATION:-
Homogenization is the process of breaking down fat globules of larger size to such an extent
that after 48 hours of storage no visible cream separation occurs on the top. This provides
brighter appearance, heavier body and richer flavors. Homogenized milk produces soft curd.

When milk is kept undisturbed for 2-3 hours then a fat layer is there on the milk. To remove
this homogenization is needed. Homogenization is a process of making different sized fat
globules form into uniform homogeneous small size. It gives thicker consistency of milk, so
it’s easy to digest.

21
STERILISATION:-
STERILISATIONIS is the process of the heating milk to a temperature of 100d Celsius or
above for such length of time it remains fit for human consumption for at least seven days
room temperature.

TYPES OF MILK:-
Variation in different types of milk is due to the difference in their FAT and SNF content

Type of Milk Fat% SNF

Full Cream milk 6.0 9.0
Standardized Milk 4.5 8.5
Toned Milk 3.0 8.5
Double Toned Milk 1.5 9.0
Skimmed Milk 0.1 9.0

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 OPERATION FLOOD

The transition of the Indian milk industry from a situation of net import to that of surplus has
been led by the efforts of National Dairy Development Board's Operation Flood.
Programmed under the aegis of the former Chairman of the board Dr. Kurien.

Launched in 1970, Operation Flood has led to the modernization of India's dairy sector and
created a strong network for procurement processing and distribution of milk by the co-
operative sector. Per capita availability of milk has increased from 132 gm per day in 1950 to
over 220 gm per day in 1998. The main thrust of Operation Flood was to organize dairy
cooperatives in the milkshed areas of the village, and to link them to the four Metro cities,
which are the main markets for milk. The efforts undertaken by NDDB have not only led to
enhanced production, improvement in methods of processing and development of a strong
marketing network, but have also led to the emergence of dairying as an important source of
employment and income generation in the rural areas. It has also led to an improvement in
yields, longer lactation periods, shorter calving intervals, etc through the use of modern
breeding techniques. Establishment of milk collection centers, and chilling centers has
enhanced life of raw milk and enabled minimization of wastage due to spoilage of milk.
Operation Flood has been one of the world's largest dairy development programme and
looking at the success achieved in India by adopting the co-operative route, a few other
countries have also replicated the model of India's White Revolution.

23
 Per Capita availability of milk

Year gm/day
1950 132
1960 127
1968 113
1973 111
1980* 128
1990 178
1992 192
1996 198
1997 200
1998 202
1999 203
2000 212
2005 240

E= Estimated P= Provisional* Operation flood was launched in 1970

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 MISSION 2020

Six decades ago, Sardar Patel had envisioned that dairy cooperative movement could liberate
our farmers from economic oppression and lead them to prosperity. His dream was carried
forward by far-sighted and visionary leaders like Shri Tribhuvandas Patel and Shri Motibhai
Chaudhary, who selflessly dedicated their entire lives to this noble cause. Through his
professional acumen and meticulous planning, as well as leadership skills; Dr. Verghese
Kurien successfully translated this dream into reality. In early 1950’s, when our cooperative
movement was still in its infancy, Dr. Kurien created the grand design for an apex marketing
federation for dairy cooperatives of Gujarat. After 20 years of persistent efforts, this
organization took concrete shape in 1973 and has today transformed into a US$ 1.4 billion
dairy giant.

Since the foundations of our organization are rooted in the process of systematic long-term
planning, we have also attempted to emulate the same, in an effort to design our future
architecture. As we take confident strides towards a grand tomorrow, we need a vision which
will force us to challenge ourselves and stretch our imagination. In order to achieve quantum
and exponential growth, this vision must be backed up by a concrete action plan, which is
grounded in reality. In view of growth in business volumes and related complexities, it is
pertinent that we have a clear vision for the next 10 years. This will enable all relevant
stakeholders to align themselves to a common growth platform. In line with objective, we
have prepared a comprehensive roadmap to guide dairy cooperatives of Gujarat to a glorious
future, in the year 2020.

This plan, appropriately titled “Mission 2020”, envisages that the dairy cooperatives of
Gujarat will have a group turnover of Rs. 27000 crores by the year 2020. This will be a three-
fold increase over our current group turnover of approx. Rs. 9600 crores. With further
expansion of cooperative network, increase in number and productivity of milch animals;
Milk production in our milk shed area will increase to 231 lakh kg per day (23.1 million kg
per day), at an annual growth rate of 4%. We will be strengthening our milk procurement
infrastructure by installing Bulk Milk Chillers and Automatic Milk Collection Systems in all
our village cooperative societies. This will enhance our milk procurement capacity in such a
way, that we easily collect as much as 195 lakh kg per day (19.5 million kg per day) of milk
in the peak flush season.

25
Through expansion of distribution network, creative marketing, consumer education and
product innovation, we will leverage effectively on rising income levels and growing
affluence among Indian consumers. While expanding markets for our existing products, we
will create fresh avenues for growth by tapping the rising demand for new value-added
products. Special emphasis will be given to strengthening our presence in the large market for
liquid milk, in metropolitan cities. Satellite dairies with combined processing and liquid milk
packaging capacity of 50 LKPD will be established in major metro markets. Our objective is
to ensure that the maximum share of the consumer’s rupee goes back to the milk producers.

In view of the high demand and procurement projections, we plan to double to processing
capacity of our dairy plants to 20.7 million kg per day, by 2020. This would include multi-
fold capacity expansion for major product categories including milk powders, Ice-cream,
paneer, cheese, ethnic sweets, curd, ghee and other dairy products. Milk drying capacity will
also be enhanced by 200 MTs per day, to process additional milk in the peak season. For
increasing milk production, it is vital to provide nutritious feed to milch animals. For this
reason, we plan to expand our cattlefeed manufacturing capacity, more than four times to
12000 MTs per day, by 2020. At current prices, total investments envisaged for creating all
the required infrastructure would be Rs. 2600 crores (Rs. 26 billion) till the year 2020. I am
glad to inform you that the plan 2020 has been shared with all the member unions. It has also
been discussed in the respective boards and necessary resolutions for investments have also
been taken. This detailed plan will serve as our comprehensive roadmap for the next ten years
and will ensure a glorious future for our dairy cooperatives.

We are well poised to lead the Indian dairy cooperative sector to a position of eminence in
our national economy. Our efforts will ultimately serve to bolster the rural economy, which
can then create an effective shield to protect our nation from any future economic crises. We
will succeed in our endeavor with positive and continued support and encouragement from all
the government quarters, as has happened in the past. The very foundation of any cooperative
organization is a transparent and fair democratic electoral process taking place at the
scheduled intervals for the cooperative structures to survive and faith of its member remain
intact, it is imperative that elections to various tiers of the cooperatives take place on
schedule.

26
FRESH MILK

Over 50% of the milk produced in India is buffalo milk, and 45% is cow milk. The buffalo
milk contribution to total milk produce is expected to be 54% in 2000. Buffalo milk has 3.6%
protein, 7.4% fat, 5.5% milk sugar, 0.8% ash and 82.7% water whereas cow milk has 3.5%
protein, 3.7% fat, 4.9% milk sugar, 0.7% ash and 87% water. While presently (for the year
2000) the price of Buffalo milk is ruling at $261-313 per MT that of cow is ruling at $170-
267 per MT. Fresh pasteurized milk is available in packaged form. However, a large part of
milk consumed in India is not pasteurized, and is sold in loose form by vendors. Sterilized
milk is scarcely available in India.

Packaged milk can be divided according to fat content as follows,

Whole (full cream) milk - 6% fat Standardized (toned) milk - 4.5% fat Doubled toned (low
fat) milk - 3% fat. Another category of milk, which has a small market, is flavored.

27
MARKET SIZE AND GROWTH

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

Milk production grew by a mere 1% pa between 1947 and 1970. Since the early 70's, under
Operation Flood, production growth increased significantly averaging over 5% per annum.

About 75% of milk is consumed at the household level which is not a part of commercial
dairy industry. Loose milk has a larger market in India as it is perceived to be fresh by most
consumers. In reality however, it poses a higher risk of adulteration and contamination.

28
MAJOR PLAYERS

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

PACKAGING TECHNOLOGY

Milk was initially sold door-to-door by the local milkman. When the dairy co-operatives
initially started marketing branded milk, it was sold in glass bottles sealed with foil. Over the
years, several developments in packaging media have taken place. In the early 80's, plastic
pouches replaced the bottles. Plastic pouches made transportation and storage very
convenient, besides reducing costs. Milk packed in plastic pouches/bottles have a shelf life of
just 1-2 days, that too only if refrigerated. In 1996, Tetra Packs were introduced in India.
Tetra Packs are aseptic laminate packs made of aluminum, paper, board and plastic. Milk
stored in tetra packs and treated under Ultra High Temperature (UHT) technique can be
stored for four months without refrigeration. Most of the dairy co-operatives in Andhra
Pradesh, Tamil Nadu, Punjab and Rajasthan sell milk in tetra packs. However tetra packed
milk is costlier by Rs5-7 compared to plastic pouches. In 1999-00 Nestle launched its UHT
milk. Amul too re-launched its Amul Taaza brand of UHT milk. The UHT milk market is
expected to grow at a rate of more than 10-12% in coming years.

29
REGULATORY FRAMEWORK

The dairy industry was de-licensed in 1991 with a view to encourage private investment and
flow of capital and new technology in the segment. Although de-licensing attracted a large
number of players, concerns on issues like excess capacity, sale of contaminated/ substandard
quality of milk etc induced the Government to promulgate the MMPO (Milk and Milk
Products Order) in 1992. Milk and Milk Products Order (MMPO) regulates milk and milk
products production in the country. The order requires no permission for units handling less
than 10,000 liters of liquid milk per day or milk solids upto 500 TPA.

MMPO prescribes State registration to plants producing between 10,000 to 75,000 liters of
milk per day or manufacturing milk products containing between 500 to 3,750 tones of milk
solids per year. Plants producing over 75,000 liters per day or more than 3,750 tones per year
of milk solids have to be registered with the Central Government.

The stringent regulations, government controls and licensing requirements for new capacities
have restricted large Indian and MNC players from making significant investments in this
product category. Most of the private sector players have restricted themselves to
manufacture of value added milk products like baby food, dairy whiteners, condensed milk
etc.

30
FUTURE PROSPECTS

India’s dairy sector is expected to triple its production in the next 10 years in view of
expanding potential for export to Europe and the West. Moreover with WTO regulations
expected to come into force in coming years all the developed countries which are among big
exporters today would have to withdraw the support and subsidy to their domestic milk
products sector. Also India today is the lowest cost producer of per liter of milk in the world,
at 27 cents, compared with the U.S' 63 cents, and Japan= = s $2.8 dollars.

Also to take advantage of this lowest cost of milk production and increasing production in
the country multinational companies are planning to expand their activities here. Some of
these milk producers have already obtained quality standard certificates from the authorities.
This will help them in marketing their products in foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of around 33%
per annum to around Rs.43, 500 crores by year 2010. This growth is going to come from the
greater emphasis on the processed foods sector and also by increase in the conversion of milk
into milk products. By 2009, the value of Indian dairy produce is expected to be Rs 10,
00,000 million. Presently the market is valued at around Rs7, 00,000mn.

31
 Distributions of AMUL Milk

Over a period of time we have built unique capabilities of distributing Ambient, Chilled,
Frozen and Fresh products simultaneously through our versatile distribution highways.
Today, 3500 Distributors for Value added milk products, 1800 Distributors for Fresh Milk,
ensure that Amul Products are available to all segments of consumers in India through more
than 2 Million outlets.

To enhance further efficiency in distribution, two key initiatives have been taken during the
year. Firstly, we expanded competency based distribution by inducting about 300 Distributors
having expertise in servicing specific market segments and secondly, we are poised to divide
the value added product lines amongst three sets of Distributors to cater to the same market.
This is going to give us more and more competitive advantage.

In Federation, our distributor is considered to be the real Marketing Manager. To update them
with modern marketing concept a workshop on Marketing and Sales Management is being
conducted in collaboration with a premier business school. So far, 1100 Distributors have
been benefited from this workshop.

SLDP (Self Leadership Development Programme) for Distributor is another major initiative
taken during the year primarily with objective of training them to implement TQM at their
and at the retailer level. This will ultimately serve to bring all Stake holders under common
platform in Strategic Planning Process of the Organization and to develop Self Leadership
amongst each individual Distributor.

Our Amul Yatra Programmes ensure that our every new distributor and other business
partners visit Anand to get an exposure to our co-operative structure, our culture as well as
our operational systems and processes. The initiative continued this year as well and so far,
about 7400 Distributors and other business associates have visited Anand on Amul Yatra.

32
 CO-OPERATIVE DEVELOPMENT PROGRAMME

During the last Nine years, our Member Unions are implementing Internal Consultant
Development (ICD) intervention for developing self leadership among member producers
and there by enabling them to manage their dairy business efficiently leading to their overall
development.

During the year, Member Unions continued to implement the module on Vision Mission
Strategy (VMS) for primary milk producer members & Village Dairy Cooperatives.
Facilitated by specially trained consultants, 736 Village Dairy Cooperative Societies (VDCS)
have conducted their Vision Mission Strategy Workshops, prepared their Mission Statements
& Business Plans for next five years. Till today total 6012 VDCS have prepared their mission
statement and Business plan. Member unions are reviewing this business plan every year
under VMS annual revisit programme and facilitate VDCS to prepare action plan for next
year to propel the momentum gained through VMS.

In order to strengthen knowledge and skill base of young girls and women of the villages
about milk production management; Federation, with technical collaboration and resources of
Anand Agriculture University, has initiated “Mahila Pashupalan Talim Karyakram” for
women resource persons of the member unions and during the year, 486 women resource
person have been trained under this programme.

 Clean Milk Production

For strengthening infrastructure for quality and clean milk production and to install Bulk
Milk Coolers at VDCS, our member unions have submitted project proposals to Department
of Animal Husbandry, Dairying & Fisheries, (DP Section), Ministry of Agriculture,
Government of India. Under the project, Government of India has already sanctioned
financial assistance of more than Rs. 28 crore and our member unions have already received
financial assistance of more than Rs. 11.36 crore.

Continuing the cleanliness drive at village level, till March 2009, our Member Unions have
identified & imparted training to 9479 core groups formed of milk producers and
Management of the VDCS. To enhance the level of Cleanliness this year, 7956 VDCS

33
celebrated Red Tag Day on “Gandhi Jayanti” - 2nd October and the Unions also awarded best
performing VDCS.

 Fertility Improvement Program

The Board of Directors of Federation, considering a long term vision for reducing infertile
animal from their milkshed, decided to implement Fertility Improvement Programme (FIP)
from year 2007-08. The FIP concept has an integrated design to overcome animal nutritional,
gynecological, and animal health related problems.

To implement FIP, milk unions have deployed 44 FIP teams of veterinary consultants and
they are working in 1960 villages. In the first year they have registered 72904 and in second
year they have registered 70435 “Non Pregnant Not Calved Even Once” and “Non-pregnant
Dry” milch cattles and buffaloes under FIP, out of which 52272 milch animals has become
pregnant. FIP is being monitored through www.amul.org.in. FIP has helped milk producers to
convert their unproductive milch animals to productive one and also by adopting scientific
animal husbandry practices they are earning more at less cost.

 Sustainable ecological development

With a target of planting three trees per member, our member unions celebrated 61st year of
Independence, 15th August 2008 in a unique way and our members have planted 52.74 lakh
sapling across 21 districts of Gujarat. During last two years, our members have planted more
than 71.65 lakh trees and demonstrated their commitment towards preserving and
contributing to improvement of the environment. For this activity, we have received “Good
Governance award” from “Srishti” during year 2007 as well as 2008.

INFORMATION TECHNOLOGY INTEGRATION

GCMMF has further advanced its Information Technology solutions by linking all the Milk
Plants of the member unions with its customized ERP System (EIAS & Web EIAS) to
improve the liquid milk marketing operations. The Federation has also enhanced the
Financial Control System in EIAS. It has also developed Sales Performance Monitoring
System across various levels.

34
Further to smoothen business operations across the supply chain and strengthen the linkages
between GCMMF and its Member Unions, your Federation has decided to implement
common ERP system for entire enterprise.

Your Federation has also developed “Online Cattle Feed Raw Material Pricing/Contract
Information Sharing System” to enable smooth collaboration between member unions for
purchase of Cattle Feed raw material.

GCMMF has further advanced the use of Geographical Information systems by enhancing the
GIS application and implementing GIS based Sales Analytics solution across various offices.
It has also developed a GIS based Decision Support System (DSS) for the top management
for effective & geographically monitoring of the sales performance of WDs, ADAs,
Retailers, and Products etc.

35
 RESEARCH METHODOLOGY

TYPES OF RESEARCH

Descriptive research and field research has been done for the project. The descriptive
research assumes that the researcher has much prior knowledge about the problem situation.
Thus the information needed is clearly defined as a result; descriptive research is pre planned
and structured. A descriptive studies try to discover answer to the question like who, when,
where, why, what and sometimes how. Descriptive research is thus a type of conclusive
research. Surveys the best suited for descriptive research. Thus it has been done in this
project. The survey method of obtaining the information is based on the questioning of
respondents. They asked variety of question regarding their behavior intension, attitude,
satisfaction, awareness, motivation and demographic and lifestyle characteristics.

METHODS OF DATA COLLECTION

Primary Data: Primary data are original data gathered specially for the project at hand. These
data are a fresh and first hand collected data.
Secondary data: .The secondary data are those, which have already been collected by others
and for another purpose. Thus for the may primary data and secondary data are use.

RESEARCH DESIGN
A research design is a framework or blue print for conducting the marketing research project.
Thus the research design is the arrangement of condition and collection and analysis of data
in manner that aim to combine relevance to the research purpose with economy in procedure.
Therefore the research design in short is conceptual structure.

36
SAMPLING DESIGN
Sample size: A large sample give more reliable result then small samples. However, it is not
necessary to sample the entire target population and even a substantial portion to achieve
reliable results. For this research work, sample size of 100 respondents of each i.e. 100
consumers and 100 retailers are taken.

SAMPLING
A sample is a sub group of the population selected for the participation in the study. The
marketing researchers must define the target population that shall be sampled.

QUESTIONNAIRE (RETAILER)

NAME

SHOP NAME

ADDRESS

PHONE NO.
Q: 1How many milk pouches do you sell daily (in liter)?

(1) Up to 15 liter (2) 20 To 40 liter

(3) 40 to 80 liter (4) 80 liter & above

Q.2 Which brands of pouch milk do you have in your outlet?

(1) Amul (2) Mother dairy

(3) DMS (4) Others

Q: 3 Are you interested in selling Amul milk?

(1) Yes (2) No

If Yes (Margin)

If No, Why?

Q.4 According to you, which is more popular variant of Amul?

37
(1) Gold (2) Shakti

(3) Taaza (4) SNT

Q: 5 Usually, at what time do consumers buy milk from out let?

(1) Morning (2) Evening

Q: 6 At what time do you open your shop?

Q: 7 How much profit margin do you want?

Q: 8 On what time you get your milk pouches from your distributor?

(1) Before 5 AM (2) Between 5 AM TO 6 AM

(3) Between 6 AM TO 7 AM (4) Between 7 AM TO 8 AM

(5) 8 AM onwards

Any Comments

QUESTIONNAIRE (CONSUMER)

NAME

AGE OCCUPATION

38
 ADDRESS

PHONE NO.

GENDER
(1) Male (2) Female

Q.1 What Kind of Milk do you consume?

(1) Pouch (2) Loose

(3) Both

If pouch which

Brand Name

Quantity
Q: 2 What is your mode of purchasing milk?

(1) Home Delivery (2) Retailer

(3) Any Other

Q.3 When do you procure your milk?

(1) Morning (2) Evening

Q: 4 What is your approximate milk consumption per day?

(1) Upto 1 Liter (2) 1-2 liter

(3) 2-3 liter (4) 3 & above

Q: 5 Are you aware about following Branded milk pouches?

(1) Mother Dairy (2) Amul

(3) Gopalji (4) D.M.S.

Q: 6 Are you aware of Amul Milk?

39
(1) Yes (2) No

Q: 7 Which variant of Amul, you purchase?

(1) Amul Gold (2) Amul Shakti

(3) Amul Taaza (4) Amul SNT

Q: 8 From where you came to know about Amul milk?

(1) Newspaper (2) Retailers

(3) Hoardings (4) Others

Q: 9 Why you feel that your milk is better than other?

(1) Quality Factor (2) Price factor

(3) Availability (4) Credit facility

(5) Hygiene (6) Taste & odor

Please give your valuable Comments

ANALYSIS OF RETAILER & CUSTOMER

TO KNOW THE GENDER OF

GRAPH NO. 1 CUSTOMER
S NO GENDER NO OF CUSTOMER
1 MALE 56
2 FEMALE 44

40
 GENDER ANALYSIS

44%

56%

MALE FEMALE

Interpretation: In the Sample 61% were male and 39% Female

TO KNOW THE AGE OF

GRAPH NO 2 THECUSTOMER
AGE IN
S NO YEARS NO OF CUSTOMER
1 0-18 5
2 19-35 46
3 36-45 36
4 46 & ABOVE 18

41
 AGE GROUP ANALYSIS

50 46
45
40 36
35 0-18
30 19-35
25
18 36-45
20
15 46 & ABOVE
10 5
5
0
0-18 19-35 36-45 46 & ABOVE

Interpretation: Maximum customer (46%) is under 19 – 35 Age group and only

(5%) customer are under the Age upto 18.

TO KNOW THE EDUCATIONAL

GRAPH NO. 3 QUALIFICATION

S NO QUALIFICATION NO OF CUSTOMER
1 HIGH SCHOOL 8
HIGHER
2 SECONDARY 16
3 GRADUATION 37
4 POST- 34

42
 GRADUATION
5 DOCTRATE 3
6 OTHERS 2

EDUCATIONAL BACKGROUND OF
CUSTOMERS
40 37
34
35
30
NO. OF CUSTOMERS

25
20 16
15
10 8
3 2
5
0

Interpretation: Maximum customer is those who are highly qualified.

 72% and they are graduate, post graduate, and doctorate and the remaining.
 28% is not so qualified and they high school or intermediate and other
TO KNOW THE OCCUPATION OF
GRAPH NO. 4 CUSTOMER
S NO OCCUPATION NO OF CUSTOMER
1 BUSINESS 35
2 PROFESSIONAL 6
3 HOUSE WIFE 30
4 STUDENT 4
5 SERVICE 25

43
 OCCUPATION
40
35 35 30
NO. OF CUSTOMERS

30
25 25
20
15
6
10 4
5
0

Interpretation: Maximum customer are the group of business (35%) and then house
wife group (30%) then after service class (25%) people and then minimum from the
group of professional (6%)

TO KNOW THE TOTAL MEMBERS OF

GRAPH NO. 5 FAMILY
S NO AGE %AGE OF CUSTOMER
1 0-10 17
2 11-20 13
3 21-45 51
4 46 & ABOVE 19

44
 NO. OF CONSUMERS

60 51

% OF CUSTOMERS
50
40
19
30 17
13
20
10
0
0-10 11-20 21-45 46 &
ABOVE

Interpretation: Total no of people served in the sample was 499. The sample size
taken by the researcher were 100. The amount of milk consumed by the sample was 147
liter Thus,

(a) average family strength is approx. 5(499/100)

(b) average milk consumption per person was .294ltr(294ml)

TO KNOW ABOUT THE MILK CONSUMED BY

GRAPH NO. 6 CONSUMERS

S NO TYPES OF MILK NO OF CUSTOMER

1 POUCH 60
2 LOOSE 25
3 BOTH 15

45
 TYPE OF MILK PACKING
BOTH
LOOSE
15%
25%

POUCH
60%

Interpretation: Maximum customer (60%) use pouch milk and the 25% customer
use loose milk and 15% customer use both type of milk.
People of Indore prefer loose milk as well as pouch milk due to price difference. most of
people use loose milk .

TO KNOW THE APPROX USAGE OF MILK PER DAY BY

GRAPH NO. 7 CUSTOMER

S NO QUANTITY NO OF CUSTOMER
1 UPTO 1 LTRS 49
2 1 – 2 LTRS 31
3 2 – 3 LTRS 15
4 ABOVE 3 LTRS 5

46
 QUANTITY ANALYSIS
49
50
NO. OF CUSTOMERS

40 31

30
15
20
5
10

0
UPTO 1 LTRS 1 - 2 LTRS 2 - 3 LTRS ABOVE 3
LTRS

Interpretation: 49 % customer used up to 1 liter and 31% customer used (1to 2) liter
and 15% customer used (2 to 3) liter milk and 5% customer used more then 3 liter milk.

TO KNOW THAT WHEN CUSTOMER PROCURE

GRAPH NO. 8 MILK

S NO PROCURMENT TIME NO OF CUSTOMER

1 MORNING 85
2 EVENING 15

47
 PROCURMENT TIME

15%

MORNING
EVENING

85%

Interpretation: Most of the customer procures the milk in morning (85%) less
procures in evening. So, most preferable time for purchasing of milk is in morning.

TO KNOW THE MODE OF PURCHASING OF

GRAPH NO. 9 MILK

PURCHASING
S NO MODE NO OF CUSTOMER
1 HOME DELIVERY 40
2 RETAILER 56

48
 COUNTER
3 ANY OTHER 4

PURCHSING MODE
56
60
NO. OF CUSTOMERS

50 40

40

30

20
4
10

0
HOME RETAILER ANY OTHER
DELIVERY COUNTER

Interpretation: Most of the customer (56%) prefer Retailer counter and (40%)
people prefer home delivery and 4% prefer any other type of purchasing the milk.

GRAPH NO. 10 TO KNOW THE BRAND AWARENESS

S NO BRAND NO OF CUSTOMER
1 AMUL 37
2 MOTHER DAIRY 43
3 DMS 14
4 OTHERS 6

49
 BRAND AWARENESS ANALYSIS
OTHERS
DMS
6%
14% AMUL
37%

MOTHER DAIRY
43%

Interpretation: 43% consumer aware “Sanchi” brand and 37% consumer aware
Amul brand and 14%consumer aware “Sourabh” brand and 6% consumer aware
“Manthan” and other. According to the data, “Sanchi” is most popular brand of
Indore people but “Amul” is also more popular brand of Indore people, because
difference between “Sanchi” customers is more than “Amul” customer.

GRAPH NO 11 TO KNOW THE AWARENESS OF AMUL MILK

S NO AWARNESS NO OF CUSTOMER
1 YES 79
2 NO 21

50
 AWARENESS ANAYLYSIS FOR
AMUL MILK

NO
21%

YES
79%

Interpretation: 79% consumers are aware Amul milk and rest of 19% are not aware
about Amul milk.

TO KNOW THE FAVORITE VARIANT OF

GRAPH NO.12 CUSTOMER

S NO BRAND NO OF CUSTOMER
1 GOLD 52
2 SHAKTI 33
3 TAAZA 0

51
 4 SNT 15

VARIANT ANALYSIS
52
NO OF CUSTOMERS 60

50
33
40

30
15
20

10 0
0
GOLD SHAKTI TAAZA SNT

Interpretation: Most of the consumer is consuming Amul gold (64%) and the Amul
Shakti are consuming (33%) and the Amul SNT is consuming (15%) and the least Amul
Taaza (0%).

TO KNOW THE SOURCE OF AWARENESS OF

GRAPH NO. 12 AMUL MILK

S NO SOURCES NO OF CUSTOMER
1 NEWSPEPER 19
2 RETAILER 29

52
 3 HOARDING 39
EXCLUSIVE
4 OUTLETS 13

SOURCES ABOUT AMUL MILK

EXCLUSIVE
OUTLETS NEWS-PAPER
13% 19%

RETAILER
HOARDING
29%
39%

Interpretation: Hoarding is good source of awareness of Amul milk (39%) and

second is retailer counter (29%) and third is newspaper (19%) and last is exclusive
outlets (13%).

TO KNOW FACTOR INFLUENCING MILK

GRAPH NO. 13 PURCHASING

S NO FACTORS NO OF CUSTOMER
1 QUALITY 28
2 PRICE 9
3 AVAILABILITY 18

53
 4 CR.FACILITY 1
5 HYGENIC 27
6 TESTE/SMELL 17

FACTOR OF INFLUINCING MILK PURCHASE

17% QUALITY
28%
PRICE
AVAILABILITY
CR.FACILITY
27% 9% HYGENIC
1% 18% TESTE/SMELL

Interpretation: 28%customer feels their milk is better than other due to quality of the
product and 23%due to hygienic and 21% due to Taste/Smell and 18% due to
availability and 6% due to price and 1% due to credit facility.

Graph No. 14 TO KNOW THE STATUS OF REFRIDGERATOR

S NO REFRIGERATOR NO OF RETAILER
1 YES 90
2 NO 10

54
 STATUS OF REFRIDGERATOR

%AGE OF RETAILERS
100

80

60

40

20

0
YES NO

Interpretation: The maximum Retailer (90%) has the refrigerator.

Graph No. 15 TO KNOW THE PER DAY SALE OF RETAILER

S NO LITERS NO OF RETAILERS
1 UO TO 15ltr 30
2 20 to 40ltr 37

55
 3 40to80ltr 17
4 80&abv liter 16

PER DAY SALE OF RETAILERS

37
40
30
35
30
25 17
16
20
15
10
5
0
UO TO 15ltr 20 to 40ltr 40to80ltr 80&abv ltr

Interpretation: 30% sale of Retailer per day upto 15 liter and 37%upto 20 to 40 liter
and(17%) upto 40 to 80 liter and (16%) above 80 liter sale of Retailer per day.

Graph No. 16 TO KNOW THE BRAND KEPT BY RETAILER

S NO BRAND NO OF RETAILERS
MOTHER
1 DAIRY 33

56
 2 AMUL 43
3 DMS 20
4 OTHERS 6

BRAND OF POUCH MILK

6%
20% 32%
MD
AMUL
DMS
OTHERS

42%

Interpretation: 33% 0f retailer keep Mother Dairy brand, 43% retailers keep “Amul
” brand and 24%retailers keep “DMS” and others.

Graph No. 16 TO KNOW THE TIME WHEN CONSUMER BUY MILK

FROM OUTLET

S NO TIME NO OF RETAILERS

57
 1 MORNING 89
2 EVENING 11

89

90
80
70
60
50
40
30
11
20
10
0
MORNING EVENING

Interpretation: 89%Retailers to buy the milk in morning and 115 retailers to buy the
milk in evening.

TO KNOW THE INTEREST OF RETAILER FOR

Graph No. 18 SELLING AMULMILK
S NO INTERESTED NO OF RETAILERS
1 YES 78
2 NO 22

58
 INTERESTED IN SELLING IN AM UL M ILK

NO
22%

YES
78%

Interpretation: 78% Retailer interested in selling Amul milk and remaining 22%
Retailer are not interested in Amul milk.

GRAPH NO 19 TO KNOW THE PROFIT OF RETAILER

PROFIT PER
S NO LITER NO OF RETAILERS
1 .50 PAISE 17
2 .80 PAISE 83

59
 17%

.50 PAISE
.80 PAISE

83%

Interpretation: the Maximum Retailer are getting 80 paisa per liter profit

Graph No. 20 TO KNOW THE PROFIT EXPECTATION OF RETAILER

S NO MARGIN NO OF RETAILERS
1 1RS 75
2 1.25 RS 5

60
 3 1.75 RS 10
4 2 RS 9
5 NO RESPONSE 1

PROFIT MARGIN EXPECTED

9% 1%

10%
1RS
1.25 RS
5%
1.75 RS
2 RS
NO RESPONSE
75%

Interpretation: The maximum Retailer are expecting profit margin 1Rs per liter.

Graph No.21 TO KNOW, AT WHAT TIME RETAILER WANTS MILK

S NO TIME(MORNING) NO OF RETAILERS
1 BEFORE 5:AM 3
2 5 TO 6:AM 29

61
 3 6 TO 7:AM 53
4 7 TO 8:AM 13
5 AFTER 8:AM 2

DELIVERY OF MILK TIME(MORNING)

13% 2% 3%
BEFORE 5:AM
29%
5 TO 6:AM
6 TO 7:AM
7 TO 8:AM
AFTER 8:AM
53%

Interpretation: The Mostly Retailer (53%) wants the milk between 6 to 7 AM and
(29%) Retailer wants the milk between 5 to 6 AM and (13%) Retailer wants the milk 7
to 8 AM and remaining (2%) want the milk after 8AM.

GRAPH NO 18 TO KNOW THE FAVORATE VARIANT

S.NO VARIANTS NO. OF RETAILER
1 GOLD 27
2 SHAKTI 49

62
 3 TAAZA 0
4 SNT 24

FAVORATE VARIANTS

49
50

40

30 27
24
20

10
0
0
GOLD SHAKTI TAAZA SNT

Interpretation: The Maximum Retailer sells Amul – Shakti, Amul Gold and Slim n
Trim. Amul Shakti is favorite variant of Retailers.

SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY

63
Strengths:

 Demand profile: Absolutely optimistic.

 Margins: Quite reasonable, even on packed liquid milk.
 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 milk
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. UHT gives milk
long life. Surely, many new processes will follow to improve milk quality and extend
its shelf life.
 Lack of control over yield: Theoretically, there is little control over milk 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 milk
yields.
 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.

64
Opportunities:

"Failure is never final, and success never ending”. Dr Kurien bears out this statement
perfectly. He entered the industry when there were only threats. He met failure head-on, and
now he clearly is an example of ‘never ending success’! If dairy entrepreneurs are looking for
opportunities in India, the following areas must be tapped:

 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, 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.
 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
nutritionals.

 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
GATT treaty, opportunities will increase tremendously for the export of agri-products
in general and dairy products in particular.

Threats:

Milk vendors, the un-organized sector: Today milk 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 importance.

65
 BIBLIOGRAPHY

 Marketing Management by Philip Kotler

 Marketing strategy by Wolker & Boyd

66
 Indian Dairy Industry
 Business world
 Business Today
 www.nddb.org
 www.amul.com
 www.google.com

67
 DATA SHEET OF CONSUMER SURVEY

S NO NAME Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9
1 RAKESH 2 2 1 1 1 1 1 1 1
2 OM PRAKASH 2 2 1 1 1 1 1 3 5
3 ADARSH 1 1 1 1 1 1 1 2 3
SANJAY
4 KUMAR 2 3 1 1 1 1 1 3 2
5 RAJEEV 2 2 1 2 2 1 1 3 1
6 SUNIL 3 2 1 1 1 2 2 2 6
7 POOJA 2 2 1 2 1 1 2 4 5
8 ARZOO 1 2 1 2 4 2 1 1 1
9 SARASWATI 2 1 1 1 1 1 1 6
10 RAHUL YADAV 1 1 1 1 1 1 2 2 3
11 RAMESH 3 2 2 3 1 1 1 3 1
12 R GOSWAMI 1 1 1 2 1 1 1 1 6
13 RAJNIKANT 2 1 1 1 1 1 4 2 2
14 KRISHKANT 2 1 2 2 1 2 2 3 5
15 PRADEEP 2 2 1 4 2 2 1 3 6
16 SONAL 1 2 1 1 2 1 2 3 1
17 SWATI 3 2 1 1 1 1 2 2 6
18 SUNITA PATEL 2 2 1 1 1 1 2 4 3
RAGINI
19 PANDIT 2 2 1 2 4 1 4 1 5
20 TOTARAM 2 1 1 3 3 1 1 2 1
21 P N SHARMA 1 1 1 2 1 2 1 3 5
RAJESH
22 VERMA 2 1 1 2 1 1 1 2 3
23 SUSHMITA 1 2 2 1 2 1 1 3 1
24 RENU 2 2 1 1 2 1 2 2 6
25 AKARSHIT 2 3 1 2 3 1 1 1 5

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26 K K GUPTA 2 2 1 2 1 2 4 3 1
27 S AGRAWAL 2 2 1 1 1 1 2 3 5
28 JAMES 2 2 1 2 3 1 1 2 2
29 JYOTI 3 2 1 1 4 1 1 2 1
30 GUDDU 1 2 1 2 1 1 1 1 6
31 B BAJAJ 3 1 1 1 2 1 1 4 1
32 T SHRAMA 1 1 1 1 1 1 1 3 5
33 H JAIN 2 1 1 1 1 2 1 3 3
34 CHABARA 2 2 1 1 2 1 1 2 1
35 JAISWAL 2 2 1 1 2 1 2 4 6
36 U PATEL 3 2 1 1 1 1 1 1 4
37 NANDKISHORE 2 2 1 2 2 1 4 2 6
38 ASHARAM 1 2 2 2 1 1 2 3 3
39 VERTIKA 2 1 1 3 1 1 1 3 5
40 S PATEL 1 1 2 4 1 2 1 2 1
41 ANJALI 3 1 1 2 2 1 4 3 6
42 SURBHI 2 2 1 1 2 1 1 3 3
43 N CHOUDARY 2 1 1 1 1 1 2 3 2
44 M BHATT 2 2 1 3 2 1 2 3 5
45 TALWAR 1 2 1 3 1 1 4 1 1
46 RAMJI 1 2 1 1 1 1 1 3 2
47 SHASHI JAIN 2 2 1 1 2 1 1 2 3
48 AMIT 2 3 2 2 3 1 4 3 1
49 VINAY 2 2 2 2 4 1 1 4 6
50 NANDU 2 2 1 3 2 1 2 2 5
51 RITESH 3 2 1 1 2 1 2 3 6
52 SHASHI BALA 2 1 1 1 2 1 1 3 1
53 REKHA 2 1 1 1 1 2 1 2 5
54 PRIYANKA 2 1 1 3 1 2 4 3 3
55 SUNAYANA 2 1 1 1 3 1 2 3 2
56 KANCHAN 1 2 1 2 3 1 1 4 6
57 SAMEERA 2 2 1 2 2 1 2 1 1
58 MEETA 3 1 2 1 2 1 2 3 5
59 LAXMIPATI 2 1 1 1 2 1 1 3 6

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60 P.K MISHRA 1 2 1 1 1 2 1 3 1
61 S SHARMA 2 1 1 2 2 2 4 1 6
62 D. RAI 1 2 1 3 3 1 4 3 5
63 JAYANT 2 2 1 3 1 1 2 2 1
64 CHOURE 2 1 1 1 3 1 1 4 5
65 AKHILESH 3 1 1 1 3 1 1 3 2
66 DHERMANDRA 1 1 1 1 1 2 4 1 1
67 SHEETAL SHA 2 2 2 4 2 2 2 3 3
68 SMRITI 2 2 1 2 2 1 2 3 6
69 SEETA 2 2 1 1 3 1 1 2 1
70 NITU 2 1 1 2 1 1 1 4 1
71 PONAM 1 1 1 2 2 1 2 1 5
72 SANJEEV 3 1 1 4 1 2 1 3 3
73 MANISH 3 2 1 3 1 2 1 2 5
74 ALOK 3 2 1 1 2 1 1 3 1
75 ANOP 1 2 1 2 3 1 2 1 2
76 R RANJAN 1 1 1 1 4 1 2 4 5
77 SUDHIR 1 1 1 2 2 1 1 1 1
78 KRATI 2 1 2 1 1 1 1 2 3
79 UDEY 2 2 1 2 1 1 1 2 5
80 DEEP VERMA 2 2 1 1 3 1 2 2 1
81 VIVEK 2 2 1 2 2 2 1 1 5
82 T SETHI 1 2 1 2 2 1 1 3 5
83 PANDIT 2 1 1 2 2 1 4 2 3
84 ANAND 2 1 1 1 1 1 2 2 1
85 M YADAV 2 1 2 1 3 1 2 1 5
86 DOLLY 2 1 1 1 2 1 1 4 3
87 APARNA 3 1 1 1 1 2 1 2 6
88 DEEPA 2 2 1 1 2 2 2 3 1
89 ROMINA 2 1 1 1 2 1 1 1 5
90 AJAY 2 2 1 1 2 1 2 4 1
91 SHILPA 1 2 1 2 3 1 2 2 5
92 GOVINDA 1 2 1 3 1 2 1 1 1

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93 BALBIR SINGH 2 3 1 3 2 2 2 4 3
94 AASTHA 2 1 2 3 1 1 4 3 1
95 RAMAKANT 2 2 1 2 3 1 1 2 5
96 USHA 2 2 1 1 1 1 2 2 2
97 UDIT 1 2 2 3 2 1 2 1 1
98 SATISH 2 2 2 3 2 1 4 4 3
99 BHAVANA 3 1 2 4 4 1 4 2 5
100 BHARTI 2 2 1 1 2 1 1 3 5

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 DATA SHEET OF RETAILERS SURVEY

S
NO. NAME Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
1 SHARMA DEPART. 1 1 1 1 1 1 1Rs 3
2 JAI MAA AMBAY 2 2 1 2 1 1 1Rs 2
3 VIJAY KIRANA 2 2 1 2 1 1 1Rs 3
4 PATIDAR KIRANA 4 2 1 1 1 1 1.75Rs 4
5 SAIDEEP STORE 3 3 1 2 1 1 2Rs 3
6 AGARWAL STORE 1 1 1 1 1 1 1Rs 2
7 JAIN PROV. 2 3 2 2 1 1 1Rs 2
8 SHRI KANT STORE 3 2 1 1 1 2 2Rs 3
YASHORAMA
9 STORE 1 3 1 1 1 2 2Rs 3
10 SANTOSH KIRANA 2 3 1 4 1 1 1Rs 3
11 O K EVERFRESH 2 1 1 2 1 1 1.25Rs 3
12 PARASRAM KIRANA 4 2 2 2 1 1 1RS 2
13 SUMIT KIRANA 1 2 2 1 1 1 1RS 2
14 VANDANA KIRANA 4 1 1 1 2 2 1RS 2
15 DIWAKAR KIRANA 2 3 1 4 1 2 1RS 3
16 YASHIKA STORE 1 2 1 2 1 2 1RS 3
17 MUGS 18 3 3 1 1 1 1 2RS 5
18 TEJA JI DEPART. 2 1 1 1 1 1 1.75Rs 2
19 BHAGYA SHREE 4 3 1 2 1 1 1.75Rs 2
20 SHREE GEN. STORE 2 4 1 2 1 1 1RS 2
21 JAIN KIRANA 1 2 1 4 1 1 1RS 3
22 RATNA TARA 3 3 1 2 1 2 1RS 3
23 SHARMA EVER 2 2 2 1 1 2 2RS 2
24 SUNITA DEP 2 2 1 4 1 1 2RS 2
25 SHEETAL DEP 1 3 1 2 1 1 1RS 3
26 V.I.P JENERAL 3 4 1 2 1 1 1RS 2

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27 TRIMURTI STORES 2 2 1 2 2 1 1RS 4
28 TIWARI EVER 1 3 1 2 1 1 1RS 3
29 DUBEY STORES 2 2 1 1 1 1 1RS 3
30 SONI DEP 2 1 1 4 1 1 1RS 4
31 PRINYANK DEP 1 3 2 1 1 1 1.75Rs 3
32 ABHIJEET PRO 4 3 2 2 1 1 1RS 2
33 MAA KALI 2 1 1 2 1 1 1RS 3
34 RATALAN STORES 2 2 1 4 1 2 1.75Rs 3
35 CHABRA 1 1 1 1 1 1 1RS 3
36 JAYDEEP KIRANA 3 3 1 2 1 1 1RS 2
37 POOJA KIRANA 1 2 1 2 1 1 1RS 3
38 GUPTA STORES 1 1 1 1 1 1 1RS 3
39 YADEV STORES 2 2 1 4 2 1 1RS 3
40 NEHA DEP 2 1 1 2 1 2 1RS 4
41 TEST&BITE 1 4 2 1 1 1 1RS 1
42 DAILY NEEDS 3 2 2 2 1 1 1RS 3
43 MUGS 21 2 1 1 2 1 1 1Rs 3
44 GOKUL STORES 1 2 1 1 1 2 1Rs 2
45 HANS PRO 4 1 1 4 1 2 1Rs 4
46 MILK CENTER 1 1 1 4 1 2 1.75Rs 3
47 TANU DEP 2 2 1 1 1 1 1Rs 3
48 MUSTHAFA STO 2 1 1 2 1 1 1RS 2
49 BHAGYA LAXMI 1 3 2 2 1 2 1Rs 2
50 AZAD KIRANA 2 2 2 1 1 2 1.75Rs 3
51 MAA KIRANA 4 1 1 4 1 2 1RS 3
52 KRISHNA STORE 1 4 1 2 1 1 1RS 4
53 SHREEMALI STORE 2 2 1 1 1 1 1RS 1
54 PAWAN KIRANA 3 1 1 2 1 1 1.25Rs 4
55 AMIT KIRANA 2 1 1 1 1 1 1RS 3
56 SHREE JAIN STORE 1 2 2 2 1 1 1RS 3
57 LUCKY KIRANA 4 2 2 2 2 1 2RS 3
58 SURAJ DEPART. 2 1 1 4 1 2 1RS 2
59 ANKIT KIRANA 4 2 1 1 1 2 1RS 1
60 ABHISHEK PROV. 3 3 1 2 1 2 2RS 2

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61 HARIOM STORE 1 1 1 2 1 1 2RS 4
62 MANJU KIRANA 2 3 1 4 1 1 1RS 3
63 SHAKTI STORE 4 2 2 4 1 1 1RS 3
64 MAA DURGA STORE 2 2 1 2 1 2 NO 3
65 PATIL KIRANA 1 1 1 2 1 2 1Rs 4
67 POOJA STORE 4 4 1 1 2 2 1.75Rs 4
68 JAIN STD PCO 2 2 1 4 2 1 1RS 2
69 SUPER STORE 2 1 1 2 1 1 1RS 3
70 ANURAG PROV. 3 2 1 2 1 1 1RS 3
JAIN VARIETY
71 STORE 1 2 1 4 2 1 1RS 4
72 NARAYAN STORE 4 1 1 4 1 2 1.75Rs 4
73 HARIOM PROV. 4 3 1 4 1 1 1RS 2
74 SAKAR PROV 3 2 1 2 1 1 1RS 4
75 SUVIDHA DEPART 1 1 2 1 1 1 1RS 3
76 ARCHANA EVER. 4 1 1 4 1 1 1Rs 3
77 PUNIT DEPART 2 2 1 2 1 1 1Rs 2
78 RITIKA PROV 1 2 1 2 2 1 1Rs 2
79 GUPTA KIRANA 3 1 1 4 2 1 1Rs 3
80 LUCKY STORE 1 2 1 1 1 1 1.75Rs 3
81 NAKODA EVERFRE 2 2 1 4 1 2 1Rs 3
82 ANMOL KIRANA 1 1 2 2 1 2 1Rs 3
83 VINTI EVERFRESH 4 4 2 2 1 1 1RS 3
84 GOYAL EVER. 2 3 2 1 1 1 1.75Rs 2
85 PADMAVATI PROV. 2 1 2 4 1 1 1RS 2
86 JAI GURU STORE 1 2 1 2 1 1 1RS 3
87 MAHAVEER DIARY 1 1 1 2 1 1 1RS 3
88 BABA KIRANA 4 2 1 1 1 1 1RS 3
89 KHANNA STORE 2 1 1 4 1 1 1RS 3
90 AMUL HUT 3 1 1 4 1 2 1.75Rs 3
91 GOKUL PROV. 3 3 2 2 1 2 1RS 2
92 MAA DURGA DEP. 2 2 2 2 2 1 1RS 2
93 GOYAL PROV. 2 1 1 2 2 1 1RS 2

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94 MILAN VERFRESH 3 2 1 2 1 1 1.25Rs 3
95 ANKUR DEPART. 2 2 1 2 1 1 1RS 3
96 PARUL KIRANA 1 1 1 2 1 1 1RS 2
97 VINAY STORE 1 3 1 1 1 1 1RS 3
98 DEEPAK PROV. 2 2 2 2 1 1 1RS 3
99 ANAND DEPART 3 1 2 2 1 2 1.75Rs 3
100 ARVIND KIRANA 2 2 1 2 1 2 1RS 5

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