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Amul (Anand Milk Union Limited), formed in 1946, is a

dairy cooperative movement in India.

It is managed by Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF).

AMUL is based in Anand, Gujarat and has been a sterling
example of a co-operative organization's success in the long
term. The Amul Pattern has established itself as a uniquely
appropriate model for rural development.

Amul has spurred the White Revolution of India. It is also the
world's biggest vegetarian cheese brand.

The story of AMUL inspired Operation Flood' and
heralded the 'White Revolution' in India. It began with
two village cooperatives and 250 liters of milk per day,
nothing but a trickle compared to the flood it has
become today. Today Amul collects processes and
distributes over a million liters of milk and milk
products per day, during the peak, on behalf of more
than a thousand village cooperatives owned by half a
million farmer members. Amul has become a symbol
of the aspirations of millions of farmers; creating a
pattern of liberation and self-reliance for every
farmer to follow.

The AMUL revolution started as awareness among the
farmers grew and matured into a protest movement. Over
four decades ago, the life of a farmer in Kaira District was very
much like that of his counterpart anywhere else in India. His
income was derived almost entirely from seasonal crops. The
income from milch buffaloes was undependable. Private
traders and middlemen controlled the marketing and
distribution system for the milk. As milk is perishable,
farmers were compelled to sell it for whatever they were
offered. Often, they had to sell cream and ghee at throw away
prices. In this situation, the one who gained was the private
trader. Gradually, the realization dawned on the farmers that
the exploitation by the trader could be checked only if
marketed their milk themselves.

In order to do that they needed to form some sort of an
organization. This realization is what led to the establishment
of the Kaira District Cooperative Milk Producers' Union
Limited (popularly known as Amul) which was formally
registered on December 14, 1946.

Currently AMUL has 2.28 million producer members with
milk collection average of 5.08 million liters/day.

Today AMUL is a symbol of many things. (High-quality
products sold at reasonable prices, genesis of a vast co-
operative network and a proven model for dairy
development). The Kaira Union began pasteurizing milk for
the Bombay Milk Scheme in June 1948.

GCMMF: Gujarat Cooperative Milk Marketing

GCMMF is India's largest food products
marketing organization. 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.
GCMMF is a unique organization. It's a
body created by Farmers, managed by
competent professionals serving a very
competitive and challenging consumer
market. It is a true testimony
of synergistic national development
through the practice of modern
management methods.

Robust Supply Chain
The vast and complex supply chain Hierarchical network of cooperatives
Stretches from small suppliers to large fragmented markets
Low Cost Strategy
Amul adopted a low-cost price strategy to make its products
affordable and attractive to consumers by guaranteeing
them value for money
Diverse Product Mix
Amul Butter, Milk Powder, Ghee,
Amulspray, Cheese, Chocolates,
Shrikhand, Ice cream,
Nutramul, Milk and Amulya

Strong Distribution Network
Amul products are available in over 500,000 retail outlets across
India through its network of over 3,500 distributors.
47 depots with dry and cold warehouses to buffer inventory of the
entire range of products.

Technology and e-initiatives
New products
Process technology
Complementary assets to enhance milk production
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 liters per day
Milk collection (Total - 2008-
3.05 billion liters
Milk collection (Daily
Average 2008-09):
8.4 million liters
Milk Drying Capacity: 626 Mts. per day
Cattle feed manufacturing
3500 Mts. per day

Gujarat Cooperative Milk Marketing Federation
Ltd. (GCMMF), is India's largest food product
marketing organization with annual turnover (2010-
11) US$ 2.2 billion. Its daily milk procurement is
approx 12 million lit (peak period) per day from
15,712 village milk cooperative societies, 17 member
unions covering 24 districts, and 3 million milk
producer members.

AMUL has been able to:
Produce an appropriate blend of the policy makers
farmers board of management and the professionals:
each group appreciating its roles and limitations.

Bring at the command of the rural milk producers the
best of the technology and harness its fruit for

Provide a support system to the milk producers without
disturbing their agro-economic systems.

Milk is very perishable product so it has to be consumed
within 24 hours.

In order to avoid wastage AMUL converts the milk into SNF
and milk solids by evaporating the water, which comprises up
to 60-70% of milk contents.

This is possible only if the distribution channel right from the
producer to the consumer is well organized.

Last year, they are divided the retail market into 14 specific
segments to achieve further distribution efficiency.

This year AMUL is focusing on inducting distributers having
expertise in servicing such specific market segments.
Plough back the profits, by prudent use of men, material
and machines, in the rural sector for the common good
and betterment of the member producers.

Even though, growing with time and on scale, it has
remained with the smallest producer members.

In that sense, AMUL is an example par excellence, of
an intervention for rural change.

AMUL is leaded by the director under him five
branches viz. Factory, Marketing, Accounts, Purchase,
Human Resources Department.

Factory department has a separate general manager
under him three are six branches viz. Production,
Stores, Distribution, Cold Storage, Quality, and Deep-
freezing. This department takes care of the factory
Marketing department has regional senior
marketing manager and under him there is
regional manager.
This department takes care of the marketing
aspects of AMUL.
Account department takes care regarding
accounts i.e, day-to-day work. Under the
accountant there is one clerk.
Purchase department takes care regarding the
purchase of raw materials and many other things.
Staffing is a process which includes
recruitment, selection, training, placement,
appraisal, promotion, and career planning.
In larger organizations, a separate
department called Personnel Department
looks after these functions and this is
headed by a qualified professional manager
called Personnel Manager.

The Organization Structure of Amul is
divided into two parts:

1. External Organization Structure.
2. Internal Organization Structure.
The Following is the External Organization Structure of
External Organization Structure:

External organization structure is the
organizational structure that effects the
organization from the outside.

GCMMF is unit of Gujarat Milk Marketing
Federation, which is a co-operative
organization. The villagers of more than
10,000 villages of Gujarat are the bases of
this structure.

External Organization Structure:

They all make milk village milk producers
union, district level milk producers union and
then a state level marketing federation is

The structure is Line Relationship, which
provides easy way to operation.

It also provides better communication
between two stages.

The Following is the Internal Organization Structure of Amul:
Managing Director
General Manager
Asst. General Manager
S & P
Internal Organization Structure:

A systematic & well-defined organizational structure
plays a vital role & provides accurate information to the
Top- Level Management.

An organization Structure defines a clear-cut line of
authorities & responsibilities among the employees
of GCMMF. The Organization structure of AMUL is
well-arranged structure. At a glance a person can
completely come to know about the organization

Internal Organization Structure:

AMUL is leaded by the director under him five
branch Viz., Factory, Marketing, Accounts,
Purchase, Human Resources Departments.

Factory department has a separate general
manager under him there are six branches viz.,
production, stores, distribution, cold storage,
quality, and deep freezing. This department takes
care of the factory work.

Internal Organization Structure:

Marketing Department has regional senior marketing
manager and under him there is a regional manager.
This department takes care of the marketing aspects of

Accounts department takes care regarding accounts
i.e. day-to-day work. Under the accountant there is
one clerk.

Purchase department takes care regarding the
purchase of raw material and many other things.

Plant layout is the overall arrangement of the machine
tools, handling equipments, storeroom and other various
accessories required for facilitating production in a
factory. These arrangements are pre-planned with the
results that the building has been constructed to fit a
layout of a given process.

AMUL plant is indigenously worked out with facilitation
of various production processes and production of multi
products under one plant. The total plot is nearly about
2.27 kms. Separate buildings are provided with required
arrangements of machine tools handling and computers
connection through the control room to fit for varying
product-manufacturing departments.
The plant is engaged in producing milk, ice creams, milk
powder and ghee. Entire department is uniquely provided
with facilities for the processing each product. There are 4
production departments and packaging departments
pertaining to each product respectively.

Thus, plant layout encompasses all production and service
facilities and provides for the most effective utilization of
the men, materials and machines constituting the process.
It is the master blue print of coordinating all operations.
First Plant, is at
Anand, which
engaged in the
manufacturing of
milk, butter, ghee,
milk power,
flavored milk, and
butter milk.
There are Four Plants of
Amul located in India :
Second Plant, is at
MOGAR, which
engaged in
AMUL Ganthia
and AMUL lite.

Third Plant, is at
produces cattle feed.

Fourth Plant, is at
KHATRAJ, which
engaged in
producing cheese.

Production management is refers to the process of
correction of past mistakes catching up with the new
techniques, taking up steps with developing techniques
and taking measures for the production of goods
at competitive cost.

The basic philosophy of production management is to
launch a frontal attack on direct costs and effective use
the availability manpower weaving new techniques in to
the whole to keep the production unit efficient and
developing production management is the process of
planning, organizing, directing and controlling.

The Amul is started with only 250 liters of
milk per day. But now Amul collect average
9 lakhs of liters milk per day. At the initial
stage, Amul has not any problem regarding
milk, but in the winter season there was
excess supply of milk. So, Amul has to sell
out that excess milk at the low price or
Amul has to face loss. To removing
these problems Amul take decision to set
up a plant to process the surplus milk butter
and milk powder.
The Amul has three plants Known as
Amul 1, 2 & 3 all three plant work
24hours a day continuously. The all
manufacturing process is done
automatically. The production is done in
the special machines. These machines
and the technology are import-id from
the TRFTA PEAK Company. There is
also facility of chilling of milk, so that the
milk remains usable.

Three plant of AMUL perform different

AMUL1 Presently it is use as a go down for
storing raw materials.
AMUL2 In this unit, the production process
of Ghee and packing's are running.
AMUL3 This unit is producing AMUL
butter, spray power, and flavored
Milk Collection Cycle:
The success of each and every dairy industry is
the getting the milk from the farmers and making
that milk in use as soon as possible before that
milk get spoiled because the milk is the
perishable product. For the smooth running the
business of dairy industry the industry must
concentrate on the milk collection cycle. Amul
dairy is very conscious about the milk collection
cycle because the base of the success of the Amul
is milk collection cycle.

Production capacity of Amul:

Butter 50 to 60 Tones.

Powder plant 70 tones.

Powder plant 60 tones.

Flavour milk 40000 bottles.

Amul 2 Raw Reception Dock:
Reception dock is the very first department
of any dairy where milk is unloaded and
simultaneously tested . Amul-2 has a well
designed RMRD , situated in the west wing
of dairy . Raw milk at Amul- 2 is received
mainly through cans . There are 2 reception
lines for unloading milk cans in Amul 2 .
About 60 % of reception is of buffalo milk
and remaining 40% is cow milk.
Butter section:

The utterly Butterly Delicious butter of the Amul is one
of the most popular product of Amul dairy along with the
famous butter girl. The butter section is located in Amul -
3which manufactures Table Butter, white butter
and renduced salt butter. The section is completely
computer controlled and is equipped with most modern
imported equipments .Butter section very important as
it handles fat, which is the costliest constituent. The
cream obtained from process section is fully utilized for
butter making .Amul white and table Butter is exported
to USA and various Middle Eastern countries.


The cream for manufacturing Butter is receiving
from Amul-3 process section while standardization of
milk. In Amul -3 the milk fat will be separated at
above 60 Celsius, the centrifugal separators inline
with Milk pasteurizer separate this as cream. The
cream thus separated is pasteurized and then
pumped to the cream buffer tanks and to cream silo.
After ageing at 8 Celsius for 24 hrs, cream is pumped
to cream chilling unit in the butter section. There the
temperature of cream is adjusted to the required
churning temperature of continuous Butter Making

Packing materials used:
Delocalize market Double laminated is
used for export.
Tin used for 400g Army pack
Card board box- used for tertiary packing
3ply for 9.1 g weight package
5ply for normal & export
Powder plant:
F-35 plant is situated in Amul -2 near to the railway
siding . The plant is a single stage drying plant having
a capacity of 35 TDP. The plant is not in regular use
and mainly used for the manufacturing of cheese
whey powder .
Make : SSP ,Faridabad.
Type : Falling film vertical tube type.
No of Pre heater : 5.
No of calendria : 7.
No of vapor separators : 5.
One of the most versatile food consumed by us. All
children start their with mothers milk and continue to
use it in one other throughout their life. It is the secretion
from the mammary glands of a lactating mammal. The
white fluid, know as milk, is made up of milk fat and other
milk solids.

Total milk procurement by our Member Unions during the
year 2006-07 averaged 67.25lakh kilograms (6.7million kg)
per day, representing a growth of 4.5 per cent over
64.38lakh kilograms (6.4 million kg) per day
achieved during 2005-06. The highest
procurement as usual was recorded during
January 2007 at 84.09 lakh kilograms
(8.4million kg) per day. This increase in
milk procurement is very impressive,
keeping in mind the massive loss suffered by
our farmers due to floods during the
monsoon season, specially in Surat district.


1. Homogenization: Milk must
then be homogenized. Without
homogenization, the milk fat
would separate from the milk
and rise to the top. Milk fat is
what gives milk its rich and
creamy taste. In this process
Milk is transferred to a piece of
equipment called a
homogenizer. In this machine
the milk fat is forced, under
high pressure through tiny
2. Pasteurization:
Pasteurization is the process
that purifies milk and helps it
stay fresher, longer. Milk is
pasteurized by heating it
to 72C for 16 seconds then
quickly cooling it to 4C.
Pasteurization is named after
Louis Pasteur, the famous
3. Adding Vitamins: Before
homogenization, vitamin
D is added to all milk.
Vitamin D combined with
the calcium that naturally
exists in milk help gives us
strong bones and teeth.
Dairies also add Vitamin
A to skim, 1% and 2%
milk. Vitamin A is good
for our eyesight.
4. Packaging Milk: Milk is now ready
to be packaged. Milk is pumped
through automatic filling machines
direct into bags, cartons and jugs.
The machines are carefully
sanitized and packages are filled
and sealed without human hands.
During the entire time that milk is
at the dairy, it is kept at 1 - 2C.
This prevents the development of
extra bacteria and keeps the milk
its freshest.

5. Storing: Milk is delivered to
grocery stores, convenience
stores and restaurants in
refrigerated trucks that keep
milk cooled to 1 - 4C. The
stores take their milk and
immediately place it in their
refrigerated storage area.
Because fresh milk is so
important to our diets,
dairies, and our health.
Quality Policy: The motivated and
devoted work-force of AMUL- are
committed to produce wholesome and
safe foods of excellent quality to remain
market leader through deployment of
quality management systems, state-of-art-
technology, innovation and eco-friendly
operations to achieve delightment of
customers and betterment of milk

Quality of Life:
Assured market for their milk and daily
income round the year from milk has
improved the quality of life of farmers.
The role village dairy co-operative
societies in the over all development of the
villages have brought better social
infrastructures in the villages such as roads,
communication system, schools, health
centers, water facilities, banks etc.

The marketing concept holds the key to achieving its
organizational goals consists of the company being more
effective than competitors in creating, delivering and
communicating customer value to its chosen target markets.
Marketing starts with the determination of consumer wants and
ends with the satisfaction of those wants. The concept says that
any business should be organization around the marketing
function, aningticipating and stimulating and meeting
customers need.
The marketing concept rests on four pillars and they are:
1. Target market.
2. Customer needs.
3. Integrated marketing.
4. Profitability.
AMUL has also its own marketing
concept. AMUL targets all type of
customers like babies, children, young
customers and old age customers etc.
Amul try best for satisfying needs by
providing good quality products.

Marketing Mix:

The marketing mix, which is set of four elements or
four P of marketing are as follow:
Same as four P there is also four C of marketing.
1.Customer solution
A product is anything that satisfies needs or wants
and can be offered to the market for exchange. A
product can be a goods, services without
product there is no marketing .This includes
product variety, product design, packaging,
quality, brand name, size etc.
AMUL produces and sell i.e. Milk, It has to plan
its product very carefully so that the consumer
gets only good quality products. There are
various products marketed by GCMMF.
List of products marketed:
Bread spread
Amul butter.
Amul Lite Low bread spread.
Amul cooking butter.
Cheese range
Amul Malai panner (cottage cheese).
Amul pasteurized processed cheese.
Amul pizza cheese.
Amul Emmiatial cheese.
UHI Milk Range
Amul shakti 3% fat milk.
Amul Taaza 1.5% fat milk.
Amul Gold 4.5% fat milk.
Amul fresh Toned milk.
Amul snowcap soft milk.
Pure ghee
Amul pure ghee.
Amul cow ghee.
Sagar pure ghee.
Infant milk Range
Amul infant milk formula (0.6 millions).
Amul infant milk formular.
Amul spray infant milk food.
Milk powder.
Amul full cream milk powder .

Curd products
Yogi sweetened flavored dahi.
Amul Lassee.
Amul masti Dahi.
Price :
The prices of products of Amul are also decided by the GCMMF.
The GCMMF conducts the market survey to check the validity and
feasibility of prices in the market and accordingly decides the prices of
Amul products. The price of the products of Amul are also decided
by the GCMMF .The GCMMF conducts the market survey to check
the validity and feasibility of prices in the market and accordingly
decides the price of Amul products . However, the price is inclusive
of several elements like:
Cost of milk.
Labour cost.
Processing cost.
Packaging cost.
Advertising cost.
Transportation cost.
Sales promotion cost.
Taxes etc.
The GCMMF considers all this cost. Aspects and set them up in
pricing structure to decide the selling price of milk and milk products.
IT includes a variety of techniques
including advertisement, sale
promotion, public relations and personal
selling that are used to communicate with
customers and potential customers.
Television is the best media for advertising
in the local areas .Hoardings designed on
the creative basis attract the customers


Place refers to marketing activities that make
products available to consumers at the right time in a
convenient location. Place refers as distribution
Channels .IT is the process of moving products from
the producer the consumer.

Amul has developed federation and Amul parlours
located in several parts of country. Amul have
managed to create more than 2300. Amul have
identified certain potential locations such as Railway,
Airports, universities, and shopping malls. The
GCMMF handles the workers relating to Managing of
stocks and distributors to in the country.

Thus GCMMF looks offer the disbursement of
products to the various Marketing channels.
Market segmentation:

Any commodity has not a single Market. But it has a
composite Market which can be divided on the basis of age,
gender, preferences etc. The process of dividing a market into
distinct groups of buyers is called market segmentation.
Market segmentation may be defined as a process of dividing a
Market into different sub- markets on the basis of some
definite criteria .
At Amul, since marketing activities are handle by the
GCMMF, market segmentation is also decided by GCMMF.
Generally, Milk products like Butter, cheese are also popular
in the all age group. Hence they are segments at the national
level. Milk products like chocolates and milk powder are
segmented on the basis of age. The GCMMF conduct the
market survey to know demand for the products of Amul in
the Market and then accordingly determines the market
segments, defines the target market.
Calorie Conscious
Health Conscious
Amul Kool Chocolate Milk
Nutramul Energy Drink
Amul Kool Millk Shaake
Amul Calci +
Utterly Delicious Pizza
Amul Emmental Cheese
Amul Cheese Spreadsv

Amul Lite
Sagar Skimmed Milk Powder
Amul Lite Slim and Trim Milk

Amul Shakti Health Food Drink

Ice-cream Manufacturers
Restaurant/Food Chains
Bakery & Confectionaries
Pizza Retailers
Snacks Retailers
Coffee Shop Chains
A product passes through distinct stages during its
life in market, each posing different challenges,
opportunities and problems .Profits rise
and fall at different stages of the product life
cycle. There are four different stages of product life
cycle, namely:
Different products of AMUL are in different stages in
the product life cycle.
Products like milk, butter, chocolate and cheese are in
the maturity stage, while ice-creams, chocolates and
shrikhand are still in the growth stage.
On the other hand, products like milk powders,
infant food, frozen food items and mix are in
introduction stage.
The company adopts aggressive selling techniques for
those products which are in the introductory stage,
while very less promotional programmes are carried out
for those products which are in the growth or maturity

GCMMF is Indias largest exporter of dairy
products. It has been awarded as a Trading
House status. GCMMF has received
the APEDA award from the government of India
for Excellence in dairy products Exports for the
last 11 years. GCMMF is Indias largest food
products Marketing Organization. It is a state level
apex body of milk co-operatives in the Gujarat
which aims to provide remunerative returns to
farmers and also serve the interest of consumers
by providing quality products which are good
value for money.
Marketing Research:

Marketing Research is the systematic design collection,
analysis and reporting of data and findings relevant to
a specific marketing situation of the company.

Amul performs the marketing research mainly to launch a
new products in the market. The purpose is of checking the
validity of the new products in the market for the local new.
Amul conducts the market survey by appointing business
administration students for conducting the market survey.
Extending policy of the new product launched, Amul has
recently launched the energy drink named STAMINA
specially targeted to the people who are playing sports daily.
Introduction :
SPRIGGEL Human resource management as
the branch of management which is responsible
on a staff basis for concentrating on those aspects
of relationship of management to employees and
employees to employees and with the
development of the individual and the group.
The objective is to attain maximum individual
between employer and employees and effective
moulding of human resources as contrasted with
physical resources.
Personal (Human resource) management plays a
very important role for any organization. The
firm having all types of resources like machines,
materials, money, information etc. will not be
success in business without effective manpower.
Human capital is the greatest assets of business
enterprise and manpower management is the
most important and crucial job because the
managing group is the heart of the company.

Human resource department plays most
important role in establishing good relation and
harmony among all.


There are two types of Recruitment sources followed by Amul:

INTERNAL SOURCES: Internal sources include personnel already on the
payroll of the organization.
Present Permanent Employees.
Employee Referrals
Former Employee

EXTERNAL SOURCES: These sources lie outside the organization. In
AMUL they consider following sources of recruitment.
Campus Interview
Unsolicited Application.
Application Blank.
Placement Agencies.

Entry level qualification:

Below officers cadres:
1. S.S.C / H.S.C Attendant Operator Dairy
(AOD) G Gr.Worker.
Taken as apprentice under trade
apprentice Act 1961 2/3 yrs
Apprenticeship, then based on their
appraisal report, selected as temporary
worker. After total 5yrs of work, may be
selected as G-Grade Worker.
2. Professional Qualification E/F Grade
Worker (Boiler Attendant).

3. BA / B.COM / M.COM / M.A (general)
MSW / MRM /MRS M.E_Biz of Gujarat
vidyapeeth and C Grade Worker similar
Non University Institutions.

4. B.Sc / M.Sc / Diploma Engineers B Grade
workers. Apprenticeship Lab assistant for
1yr 3 months for B.SC & M.SC; 1yr for
Diploma Engg. Then 2/3 yrs as trainee
technician, than based on appraisal
Appointed as Technician B Grade.
5. BBA Management Trainee for 1yrs Jr. Assistant.
(a) M.SC ( Agriculture ) /MRS /MRM /MSW /MLW/MBA/ B.Tech
(DT ) / MCA / M.E Biz. ( From recognized University )
1 yr as a trainee then appointed as senior officer.

b) Inter CA /Inter ICWA / BE
1 yr as training period, then appointed as Dy. Sup. Deputy

(c) CA/ICWA Superintendent
NO training period, direct appointment. However, in case
of fresh recruitment of candidates with exceptional qualification
form reputed Institutions such as IIM/IIT/IRMA
Central Institution, consideration for appointment
to Higher Grade be given due weight age, not withstanding the
above minimal requirements.

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
After selection, the employees generally
have probation period. In AMUL probat
ion period is different for different type
of employees.

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


Definition: is a subsystem of an organization. It ensures that
randomness is reduced and learning or behavioral
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 three methods for the training:
1. On the job method .
2. Off the job method.
3. In house training.
4. Out house training.

Performance appraisal is the process of evaluatin
g 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.

The AMUL adopts the following appraisal
system Final confirmation with the
recommendation by the divisional heads comes
from the MD on annual basis. His work is
evaluated by Check list Method of Performance
Appraisal. These are a various method used to
appraise the performance of an employee.
In Amul the following methods are used:
Self appraisal:
If individuals understand the objectives they are
expected to achieve the standards by which they
are to be evaluated they are to a great extent in the
best position to appraise their own performance.
In this method employee himself.

Managers Appraisal:
The general practice is superiors appraise the
performance of their subordinate. Other
supervisors, who have close contact with employee
s work may also appraise with a view to provide
additional information.
A higher level manager appraise the employees
for their performance. In Amul various attributes
consider for the appraisal of employee.

Job knowledge.
Work output.
Quality of work.
Interest in work.
Past records.
This appraisal is also the rating scale.
Method appraiser also appraised employee
by following:
The overall assessment is done through above
rating and also the comment of reviewing officer
is included. Apart form this the performance in
liked allowance is provided in relation with
performance that is:
Not allowed.
This is provided by and under knowledge of
under Managing Director Generally in Amul on
base of performance appraisal employee of
managerial level gets specials allowance. While
for workers they get promotions.
The overall assessment is done through above rating and also the comment of reviewing officer is included. Apart form this the performance in liked allowance is provided in relation with performance that is,
Not allowed
common method is followed for the wage a
nd salary administration according to
Muster roll .
Timekeeper sends that muster roll to the
account department for attendance of each
and every employee. This will analyze and
entered in the computer.
After this salary is calculated for each
employee through computer according to
that they prepare salary sleep of employees.
GCMMF will be an outstanding marketing
organization, with specialization in marketing
of food and dairy products both fresh and long
life with customer focus and IT integrated. The
network would consist of over 100 offices, 7500
stockiest covering at least every Taluka. Head
quarter servicing nearly 10 lakh outlets with a
turnover of Rs.10,000 Cr and serving several co-
operatives. GCMMF shall also create markets
for its products in neighboring countries.
We at GCMMF endeavor to satisfy the
taste and nutritional requirements of the
customer of the world through
excellence in the marketing by our
committed team. Through co-operative
networking, we are committed to offering
quality product that provides best value
for money.
Bargaining Power
of Customers is
High because of
Threat of
substitutes is high
because of
availability of
Other products
Threat of new entrants
Is high because
There are no entry
Competitive Rivalry
is High due to
Other brands and
Local players

Bargaining Power
of Suppliers is low
because the suppliers
Are rural milk

In 1994 AMUL had embarked on the Total Quality
Management and in 1999 received the Rajiv Gandhi National
Quality Award for the year 1999, Indias premier recognition
for quality. Continuing to learn their employees have
consistently striven to maintain improved product and service
quality at each stage of the value chain.

More than 25000 Kaizens small
improvements in work areas-were made by employees in
different areas like cost cutting, time saving and process
improvement. To ensure minimum wastage and maximum
productivity and quality, house keeping initiatives have been
zealously pursued at the Federation offices, Warehouses and
Distributor points.
Learning from employing Total Quality Management principles
have been cascaded to both the member dairies as well as
distribution channel members. Workshops on Statistical Quality
Control have been conducted across the member dairies to achieve
total quality in the production process.

On of AMULs most remarkable achievements has been creation of
more than 225Quality Circles across the length and breadth of the
country. The federations wholesale dealers meet every month in
these quality circles and discuss and resolve distribution problems
and improve their distribution process.

Amul continues its commitment on improving the competency of its
professional managers through its Competency Based Training
Programmes which builds both generic and functional skills through
in-house, customized training programmes.
Another unique feature of the TQM programmes at
AMUL is the HOSHIN KANRI. The word Hoshin
is made up of two Chinese characters HO and
SHIN which means a methodology for strategic
direction setting. In Hoshin Kanri, at the strategic
level the company identifies certain strategic thrust
areas and the entire organization, i.e. all employees
focus their attention and energy to achieve the goals
derived from these strategic thrust areas. At the
same time, however, more routine and fundamental
aspects of the business are also covered in Hoshin
Kanri in addition to the strategic goals.



After the union received the milk, it was tested and if it was
found to be of good quality, it was sent for processing. If the
milk was found to have high acidity, it was used to
make buttermilk. Raw milk was sent through a filter and
clarifier and was pasteurized. For pasteurization, milk was
treated at high temperatures for a specified.

This helped in destroying the pathogens and in maintaining the
quality. After pasteurization, the milk was sent through a
separation machine. Here the cream was separated and
skimmed milk was obtained. According to the demand, the
unions packed the milk after it was pasteurized and sent for
distribution. The cream was marketed as Amul Fresh cream

Supply chain management of AMUL



GCMMF coordinated with various unions to get
a regular supply of milk and dairy products. The
processed milk and dairy products were
procured from district dairy unions and
distributed through third party distributors. To
ensure quality and timely deliveries, GCMMF
and the district unions had several mechanisms
in place. The VCS constantly monitored the
deliveries of the milk collected and ensured that
the milk was picked up on time. The unions
monitored the supplies of milk and the
distribution of finished products.


Amul products are available in over 500,000 retail outlets
across India through its network of over 3,500 distributors.
There are 47 depots with dry and cold warehouses to buffer
inventory of the entire range of products. GCMMF
transacts on an advance demand draft basis from its
wholesale dealers instead of the cheque system adopted by
other major FMCG companies. This practice is consistent
with GCMMF's philosophy of maintaining cash transactions
throughout the supply chain and it also minimizes dumping.
Wholesale dealers carry inventory that is just adequate to
take care of the transit time from the branch warehouse to
their premises. This just-in-time inventory strategy
improves dealers' return on investment (ROI). All GCMMF
branches engage in route scheduling and have dedicated
vehicle operation.

As per the above diagram there are the first components is
raw material:
In our company the raw material milk, power for ice creams
manufacturing, different types of flavors for ice creams,
packaging material, sugar etc. required by the company for
manufacturing. In this step GCMMF play a very important
role it procures milk from villages and for this it develops
three types of system and that is societies at village level,
district level and state level.

Second component is suppliers are the farmers and
other raw material for manufacturing the ice creams
are provided by MAHAN PROTEINS LTD.,

This component is manufacturing process which is
describe above. In milk process there are mainly five
steps are required and i.e. homogenization, pasteuriza
tion, adding vitamins, packaging, storing. In this
process there are also requirement of warehouse
for storing the product which already made and also
for the raw material.

The next step is the distribution channel in which
GCMMF plays very important role in that. It
handle all the marketing for AMUL products.
GCMMF's products were marketed through 50
sales offices located across India to 4,000 stockists.
These stockists supplied the products to more than
500,000 retail outlets.

The next step is the customers in this category
there are restaurants includes. Also there tail shops
and whole sellers are included.

The last step is the consumer in which the actual
hose hold are included in this category.
Relative Market Share
High Low
Amul Chocolate
Amul Butter
Amul Cheese
Amul Chocolate drink
Amul Ice-cream
AMUL is well known for its innovative
hoardings. Find below a few:

1. what the full form of GCMMF?
a) Gujarat Coordination Milk Marketing
b) Gujarat Cooperative Milk Market Federation.
c) Gujarat Cooperative Milk Marketing Federation.
d) None of the above.

1. In the marketing mix, which is set of four
elements or four P of marketing are?
a) Product, Price, Place, Promotion.
b) Price, Promotion, Palace, Production.
c) Price, Promotion, Position, Production.
d) None of the above.