AMUL

AMUL is a Cooperative Dairy Industry, founded in 1946 by Dr. Verghese

Kurien, initially based in the Anand district of Gujrat.
AMUL, derived from the Sanskrit word Amoolya means priceless.
AMUL stands for Anand Milk Products Union Limited.
The Kaira District Co-operative Milk Producers Union Limited,
popularly known as Amul Dairy is a US $1billion turnover institution.
[Revenue : INR 67.11 billion (2008-2009).]
AMUL is the worlds biggest vegetarian cheese brand and the largest
pouched milk brand.
AMUL is currently the largest food brand in India.
AMUL is responsible for spurring the White Revolution in India.

AMUL : INTERNAL STRUCTURE

It is a institution built up with a network of over 10,000 Village

Cooperative Societies and 5,00,000 plus members.
Managed by an apex cooperative organization, Gujarat Co-
operative Milk Marketing Federation Ltd. (GCMMF), which is
today jointly owned by around 3.18 million milk producers in
Gujarat, India. (2011-12 records).
Employees : Marketing : 735 , Milk Producers: 3.81 million.
AMUL: GCMMFs Supply Chain
 A short and lucid Description of AMULs Supply Chain
1. PROCUREMENT from SUPPLIERS :
On an average, around thousand farmers sell milk at their local
cooperative milk collection center (i.e. to GCMMF).
The milk is weighed and the fat content of the milk is measured by
an electronic fat testing machine.
This milk is then promptly transported to district facilities for
further dispatch to consumers/ processing units.
2. COLD STORAGE TRANSPORTATION :
Chilled milk is transported in trucks to be processed/delivered.
Delivery to local chillers is achieved by insulated rail tankers and
chilled trucks.
Refrigerators and freezers with retailers and departmental stores
are usually used to retain freshness.
Various LEGS in CHILLED Transportation
I. First leg
Manufacturing units to company depots using 9 and 18
MT trucks.
Frozen food : below 18 C
Dairy wet : 0-4 C
II. Second leg
Depots to WDs.
Transport through insulated 3 and 5 MT TATA 407s.
III. Third leg
WDs to retailers.
Transport through rickshaws according to the beat plan.
3. DISTRIBUTION :
GCMMF coordinates the regular supply of milk and dairy products.
The processed milk and dairy products are procured from district
dairy unions and distributed through third party distributors.
To ensure quality and timely deliveries, GCMMF and the district unions have
several mechanisms in place, including Friday Quality Checkups.
 GCMMF An Overview (2011-12)

FEW NOTEWORTHY POINTS

Extensive IT INFRASTRUCTURE of AMUL Ltd.
Automatic Milk Collection System Units (AMCUS) System after
implementation under GCMMF IT Initiatives, has lead to reduced
humar error and time wastage.
Amul is one of the first FMCG (Fast Moving Consumer Goods) firms
in India which employs internet technologies.
Implementation of GIS (Geographical Information System) at both
ends of supply chain, i.e. Milk Collection as well as the Marketing
Process, for business planning and optimization of collection
processes.
Utilization of Data Analysis software (DAS) for milk production
estimation and increasing productivity has proved beneficial.
 EVOLUTION OF IT
The milk collection center at village cooperative societies, were first
automated.
Data analysis software utilization for milk production estimation and
increasing productivity.
VATS network between all the level of distribution network and GCMMF.

Benefits of IT
Processing of 10 Million payments daily, amounting to transactions
worth USD 3.78 million in cash.
Improved delivery mechanisms and transparency of business operations.
Due to this process, AMUL is able to collect six million litres of milk per
day.
Huge reduction in processing time for effecting payments to the farmers
from a week to couple of minute.

---- THE END ----