Description
Training is the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies. Training has specific goals of improving one's capability, capacity, and performance.
INDUSTRIAL TRAINING PROGRAMME AT AMUL ANAND
Kaira District Co-operative Milk Producer’s Union Ltd. Anand, Gujarat-388001 SUBMITTED BY: NIRAV SHETH PROJECT GUIDED BY: G.D.TRIVEDI SIR
SUBMITTED TO:
SARVODAY COLLEGE OF MANAGEMENT AND TECHNOLOGY
SAURASHTRA UNIVERSITY RAJKOT
PREFACE
Amul is the pride of not only Gujarat, but of the entire nation. I have a grate pleasure in presenting the report related to such an organization. The M.B.A programmer is well structure and integrated course of business studies, the main objectives of practical training at M.B.A. level is to develop skill in a student by supplement to the theoretical study of the business management in general. Industrial environment and business practice. The business and organizational functions and activities, as well as an exposure to strategic thinking and management. Training is an integral part of MBA and each and every student has to undergo the training for 45 DAYS in an organization and then prepare a project report on the same after the completion of the project. I am glade to state that I have an opportunity to do my project work at “kaira district co-operative milk producer?s union ltd”. Anand.A leading manufacturing and supplying unit of milk and milk products. During this whole training period, I got a lot of experience and came to know about the management practice in the real. It differs from those of theoretical knowledge and the practically in the real life. In today?s globalization world, where cutthroat competition is reveling in the market, theoretical knowledge is not sufficient.
ACKNOWLEDGEMENT
“Acknowledgement is just a way of explaining gratitude, something so deep that can not be expressed fully.” With immense pleasure, I would like to present this project report for Kaira District Co-operative Milk Producers? Union Ltd., Anand. It has been an enriching experience for me to undergo my Industrial interface at AMUL, which would not have possible without the goodwill and support of the people around. As a student of S.C.M., I would like to express my sincere thanks too all those who helped me during my practical training programme. I would like to give my heartily thanks to Mr. J. K. Joshi, Manager of Administration, who permitted me to get training at AMUL. I am very thankful to Mr. G.D.TRIVEDI sir who helped me at every step whenever needed. At last but not least my grateful thanks is also extended to Mr NIRAV DAVE sir (Director of SCM) and my thanks to all my faculty members for the proper guidance and assistance extended by them.
However, I accept the sole responsibility for any possible error of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.
DECLARATION
I amNIRAV SHETH here by undersign that this project report has been completed by me under guidance of Mr. KALPESH SHAH & Mr G D TRIVEDI AMUL, Anand.
I declare that study And suggestion of this report is done by my own efforts and is not submitted, either in part or in whole, to any other University or Institute for examination.
DATE :
Student Name: (NIRAV SHETH)
PLACE : ANAND
INDEX
Sr. No 1. 2 3. 4. 5. 6 7 6. 7.
PARTICULARS
PAGE NO.
SCOPE OF PROJECT OBJECTIVE &LOGO EXECUTIVE SUMMARY COMPANY PROFILE PRODUCTION DEPARTMENT MARKETING DEPARTMENT FINANCE DEPARTMENT HR DEPARTMENT CONCLUSION
6 7 9 10 23 39 46 59 75
SCOPE
PRESENT OF AMUL GLOBAL MARKET
? As Amul has big consumer market in overall country as well as abroad, increase in product mix will give more privileges to Amul. ? Transportation of the milk should be accurate so that wastage of milk can be avoided. ? Amul should increase the procurement of milk by increasing the number of village society. ? Special seminar should be arrange in villages and guiding the village people in proper take care of cattle.
TOMORROW OF AMUL
? Right now Amul using glass bottle for packing of flavored milk instead of that Amul can use plastic bottle of flavored milk because it reduce cost and also convenient in use. ? Keeping high packing material is required huge investment and it raise interest charges but it can reduce by using economic order quantity model.
OBJECTIVE& LOGO
Objective AMUL union is one of the pioneers, which started using their profit for the milk supplier’s welfare. The main goal of AMUL is to improve the economic condition of milk procedure especially that of weaker sections in areas by providing them on ensured and producer oriented market for their surplus milk. The main objectives of AMUL are as below: ? One of the major objectives is to exceed an activity in co-operative way that enables the maximum participation of the numbers of society. ? The second other objective is to help producers of milk to increase their yields and profits and to obtain for producers a greater share of prices paid by consumers of the milk. ? To provide good market for all the milk producers. ? To provide fresh milk to the people at the reasonable price.
Logo
The symbol of AMUL is a ring of four hands, which shows they are coordinated with each other. The actual meaning of this symbol is coordination of hand of different people by whom this Union is now at the TOP. ? First hand is for the farmer (producers), without them the organization would not exist. ? Second hand is for the Representative of processor by whom the raw milk is getting processed into different finished products. ? Third hand is for Marketer without whom the product would have not been able to reach to the consumer. ? Fourth hand is for Customer without whom the organization could not carry on because they are the people who consume the product. By coordination of this four people the union runs successfully.
EXECUTIVE SUMMARY
AMUL is a co-operative sector. It is the institution of the farmers, for the farmers and from the farmers. The AMUL gives pleasure to the farmer to charge the own price, which was not possible in earlier years. This union was born on 14th December 1946. The union provides facilities to its members like more return, satisfactory price, insemination, first aid, group Insurance, cattle food at confessional price etc. AMUL dairy has five main departments like finance, personnel, commercial, milk procurement and production. The finance department does the clerical work and takes care of inflow and outflows of the cash. The other work of finance Department is to audit of annual work. The personnel department handles the work regarding personnel like appointment, recruitment, promotion, transfer, dismissal, demotion,
performance appraisal etc, The commercial department conducts all promotional activities of local area. The pricing decision of milk and buttermilk is taken at commercial department. The marketing work is handle by GCMMF. The production department produces the product with the help of latest technologies. The production is done according to ISO marks requirement. The milk procurement department gets the milk every day two times from 92 routes and 1073 societies. For the maintenance of quality of milk there are 150 chilling units
ORGANIZATION PROFILE
Name
KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS' UNION LTD, ANAND
Form
Co-operative sector registered under the co-operative society act.
Location
Amul Dairy, Amul Dairy Road, Anand, Gujarat. India.
Registration
14th December 1946
Registered Office
Kaira District Co-operative Milk Procedures' Union Limited, Anand388001
Initial Promoters
Shri Tribhuvandas Patel Shri Morarji Desai
Size
Production of different products are on large scale, besides the Whole organization is also very large, collecting 11 lakhs litters Milk everyday and producing milk product.
Office Time
10:45 a.m. to 5:45 p.m.
Total Manpower
Approximately 1330.
Group Managerial Officer Supervisor & Clerical Workers No. Of 57 165 139 969
Total No. Of Shifts
There are three shifts. 1st Shift Time: 2nd Shift Time: 3rd Shift Time: 8:30 a.m. to 4:30 p.m. 4:30 p.m. to 12:30 a.m. 12:30 a.m. to 8:30 a.m.
Village Co-operative Societies:1073
Total No. Of Society Members:6,15,415
BOARD OF DIRECTORS
1. Shri Ramsingh P. Parmar Chairman
2. Shri Rajendrasinh D. Parmar Vice Chairman 3. Shri Shivabhai M. Parmar 4. Shri Maganbhai G. Zala Director Director
5. Shri Chandubhai M. Parmar Director 6. Shri Pravinbhai F. Solanki 7. Shri Dhirubhai A.Chavda 8. Shri Bhaijibhia A. Zala 9. Shri Mansinh K.Chauhan 10. Shri Bipinbhai M.Joshi 11. Smt. Madhuben D. Parmar 12. Smt. Sarayuben B. Patel 13. Shri Ranjitbhai K. Patel ? Shri B. M. Vyas (M.D. of GCMMF, Anand) ? Shri Rahulkumar Shrivastav (M.D. of KDCMPUL, Anand) ? Shri Deepak Dalai (District Registrar) Director Director Director Director Director Director Director Director
bankers
? Kaira District Central Co-operative Bank ? U.T.I. Bank ? State Bank of India ? Bank Of Baroda ? Bank Of Maharastra HISTORY OF AMUL
In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT COOPERATIVE MILK PRODUCERS' UNION. This union selected the brand name AMUL in 1955. The brand name Amul means "AMULYA". This word derived form the Sanskrit word "AMULYA" which means "PRICELESS". A quality control expert in Anand had suggested the brand name "AMUL". Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a fanners' organization. And have a proven model for dairy development (Generally known as "ANAND PATTERN"). In the early 40's, the main sources of earning for the farmers of kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Poison dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the kaira district. This system leads to exploitation of poor and illiterates' farmers by the private traders. The traders used to beside the prices of milk and the fanners were forced to accept it without uttering a single word.
However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his cooperation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk. These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union. However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme, was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand.
Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Vergeese Courian showed main interest in establishing union who was supported by Shri Tribhovandas Patel who lead the farmers in
forming the Co-operative unions at the village level. The kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a cooperative union, it was commonly resolved to sell the milk under the brand name AMUL. At the initial stage only 250 liters of milk was collected everyday. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs liters of milk everyday. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1073 societies. With the financial help from UNICEF, assistance from the govt. of Newzeland under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Dr.Rajendra Prasad, the president of India laid the foundation on November 15, 1954. Shri Pundit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20,1955.
STAGES OF DEVELOPMENT The Amul is the co-operative union which successes with the slow and steady growth. The Amul has start with one society and now it is converted into a union with 1073 societies. At the beginning Amul collect only 250 liters
of milk per day. Now, Amul collect 11 lakhs of liters of milk every day. The excess of milk leads the Amul to develop the milk products. The Amul developed step by step. The main stages of development are as follows:
IN 1954 In the year 1954 UNICEF provide the financial help worth of Rs. 50 million to the Amul. This financial help lead Amul to established fully automatic plant for producing milk and milk powder.
IN 1958 In this year Amul expand the plant and started to produce sweetened condensed milk.
IN 1960 The excess supply of milk in the winter season and huge amount of profit make possible the expansion of Amul. The Amul established new units for producing cheese and baby food. This creates history in the dairy products, because it was the first time where cheese and baby food is produced from the buffalo milk.
IN 1981 The new cattelfeed plant was established at Kanjari.
IN 1992 For getting the benefits of excess supply of milk, Amul established another plant named Amul-3. This plant has capacity of producing 14 lakhs litters of milk everyday.
IN 1994 The new cheese plant was established at Khatraj and Chocolates plant established at Mogar. These two plants started with help of NDDB. .
IN 2001 For providing the quality milk at any time, Amul launch the new flavored milk. This flavored milk available in four different tastes. :
IN 2003 For expanding the market share Amul launch the "SNOWBALL" pizza and flavored lassie. This gives the new market share to Amul in the area of fast food.
IN 2004 The Amul keeps on achieving new highs in this competitive world. It has launch CHOCOZOO [Chocolate], MUNCHTIME [Gathiya]. Amul also started the new Satellite dairy at PUNE and COLCUTTA. This will help Amul in expanding milk marketing in other state
MISSON OF AMUL
? The main mission of Amul is to help farmers. Farmers were the foundation stone of Amul.
? The system works only for farmers and for consumers, not for profit .
? The main aim of Amul is to provide quality products to the consumer at minimum cost.
? The goal of Amul is to provide maximum profit in terms of money to the farmers.
VISION OF AMUL
? Vision of Amul was to provide and vanish the problems of farmers (milk producers) of their livelihood . The Amul?s apparition was to run the organization with the co-operation of four HANDS which are - the farmers, the representatives, the marketers and the customers.
A M U L
POLICIES ADOPTED BY AMUL
? AMUL QUALITY POLICY
? AMUL SAFETY POLICY ? AMUL GLASS POLICY
AWARD OF AMUL
Best productivity award-1987, 1988, and 1989.
Indian Merchants Chamber Award for outstanding contribution towards Food processing Industry-1989.
Special Award for sustaining productivity performance-1990 & 1996. ICA Memento Award toward genuine & self-sub staining cooperative world wide-1992.
G.D Birla Award for outstanding contribution in rural upliftment-1996.
Ramakrishna Bajaj National Quality Award-2003.
The Gujarat Co-operative Milk Marketing Federation (GCMMF) has been honored at the CIO 100 symposium & Award Ceremony on August 19, 2003.
Sahakari Vikas Ratna Award-2005.
PRODUCTION DEPARTMENT
PRODUCTION DEPARTMENT
INTRODUCTION
"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 milk butter and milk powder.
With the financial help of UNICEF, union established a Rs. 50 million factory to manufacture milk powder and butter in November 15, 1954. In 1958 the plant was expanded to manufacture sweet condensed milk. In 1960 the other branch is started, which can produce 600 tone of cheese and 2500 tones of baby food every year. In 1964 the other plant was established to manufacture cattle feed on October 31, 1964. Third dairy and cheese plant at Khalraj began in February 1994.
Today the Amul has three plants Known as Amul 1, 2 & 3 all three plant work 24 hours 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.
Organization Structure
Managing Director
General Manager
Dairy Plant
Asstt. G. M.
Manager (Production)
Manager (Eng.)
Officer
A.M. (Eng.)
Dy. Manager (Eng.)
Workers
Officers
A.M. (Eng.)
Technicians
Eng. Workers Officers Technicians Eng. workers
Amul Products
Fresh Milk
Amul Fresh 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 Gold Milk
Amul Taaza Double Toned Milk
Amul Lite Slim and Trim Milk
Amul Fresh Cream
Amul Shakti Toned Milk
Amul Calci+
Cheese Amul Pasteurised Processed Cheese
100% Vegetarian Cheese made from microbial rennet
Amul Cheese Spreads
Tasty Cheese Spreads in 3 great flavours..
Amul Emmental Cheese
The Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma
Amul Pizza Mozzarella Cheese
Pizza cheese...makes great tasting pizzas!
Gouda Cheese
For Cooking Amul / Sagar Pure Ghee
Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience.
Cooking Butter
Amul Malai Paneer
Ready to cook paneer to make your favourite recipes!
Utterly Delicious Pizza
Mithai Mate
Sweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste.
Masti Dahi
Desserts Amul Ice Creams
Premium Ice Cream made in various varieties and flavours with dry fruits and nuts.
Amul Shrikhand
A delicious treat, anytime.
Amul Mithaee Gulab Jamuns
Pure Khoya Gulab Jamums...best served piping hot.
Amul Chocolates
The perfect gift for someone you love.
Amul Lassee
Amul Basundi
Health Drink Nutramul
Malted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.
Amul Products
Amul Products
PRODUCTS MANUFACTURED
Bread spreads ? ? ? ? CheeseRange Amul Butter Amul Lite Low Fat Bread spread Amul Cooking Butter Delicious Margarine
? ? ? ? ? ? ? ?
Amul Pasteurized Processed Cheddar Cheese (The Amul Cheese) Amul Processed Cheese Spread Amul Pizza (Mozzarella) Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (Cottage Cheese) Utterly Delicious Pizza Amul Shakti 3% fat Milk
? ? ? ? ? ?
Amul Taaza 1.5 % fat Milk Amul Gold 4.5 % fat Milk Amul Lite Slim-n-Trim Milk 0% fat Milk Amul Shakti Toned Milk Amul Fresh Cream Amul Snowcap Softy Mix
Pure Ghee
? ? ?
Amul pure Ghee Sagar Pure Ghee Amul Cow Ghee
InfantMilkRange
? ? ?
Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 (6 months above) Amulspray Infant Milk Food
Milk Powder
? ? ? ?
Amul Full Cream Milk Powder Amulya Dairy Whitner Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener
Sweetened Condensed Milk
? Sweets
?
Amul Mitthaimate Sweetened Condensed Milk
Amul Shrikhan & Amarkhand Amul Mithai Khoya Gulabjamun Amul Basundi
? ?
Fresh Milk
? ? ? ? ? ? Curd Products
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
? ? ? ? ? ? Amul Ice Creams
Yogi Sweetened Flavored Dahi (Dessert) Amul Masti Dahi (Fresh Curd) Amul Lite Dahi Amul Prolife Probiotic Dahi Amul Masti Spiced Butter Milk Amul Lassee
? ? ? ? ? ? ? ?
RoyalTreatRange (Butterscotch, Rajbhog, Malai Kulfi) Nut-O-ManiaRange (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond) Nature’s Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple) SundaeRange (Mango, Black Currant, Sundae Magic, Double Sundae) Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Mega bite, Cassata) Utterly Delicious (Vanilla, Strawberry, Chocolate, Chocochips, Cake Magic) Amul Sugar Free IceCreamRange Amul Profile Probiotic Ice Cream
Chocolate & Confectionery
?
? ? ?
Amul Milk Chocolate Amul Fruit & Nut Chocolate Amul Bindazz Amul Rejoice
Brown Beverage
? Milk Drink
Nutramul Malted Milk Food
? ? ? Health Beverage
Amul Kool Flavored Milk (Mango, Strawberry, Saffron, Cardamom, Rose) Amul Kool Café Amul Kool Koko
?
Amul Shakti White Milk F
MARKETING DEPARTMENT
MARKETING DEPARTMENT
Introduction
Every organization that produces one or more products requires marketing of the products sell them in the market. It is only through marketing that people know about a company's products. Hence marketing is considered as a key activity of organization. The organization requires sound marketing structure to carry on its marketing activities.
However the concept of marketing is not confined only to selling of goods and services to customers. Instead the company tries to create and maintain the customer base through marketing. The marketing thus focus on the customer needs and wants in the market and emphasis on producing and selling only those goods, which have higher demand in market. The company mainly markets its products through advertising. Marketing uses various sales promotional tools to boost the sales of the company. The marketing department thus should have sound distribution channel and promotional system to make the marketing activities sound.
Organization Structure:
Managing Director
Deputy Manager
Product-dispatch Manager
Superintendent
Deputy Superintendent
Senior Officer
Assistant
Marketing Mix
The marketing mix is a set of four elements: Product, Price, Place and Promotion and this is decided by GCMMF.
1. Product
At AMUL, "GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LIMITED (GCMMF)" does the product planning at national level. It is the duty of GCMMF to plan the new product by conducting the market survey at the state and national level. However, issues of product lunch at the local level are taken care of by Amul itself. The Amul has set up the commercial department, which conducts the survey in the local areas through business. The new product decisions are also taken by the GCMMF.
2. 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. However, the price is inclusive of several elements like, ? Cost of Milk ? Labor Cost ? Processing Cost ? Packaging Cost ? Advertising Cost ? Transportation Cost ? Sales Promotion Cost ? Taxes etc. The GCMMF considers all these cost aspects and set them up in pricing structure to decide the jelling price of milk and milk products.
3. Promotion AMUL, promotes its products through newspaper, Television, hoardings etc. Television is the best media for advertising. The GCMMF however uses hoarding for advertising in local areas. Hoarding designed on the creative basis attract the customer more.
4. Place
AMUL has developed federation and AMUL parlors located in several parts of country. The GCMMF handles the works relating to managing of stocks and distributors in country. Thus GCMMF looks after the disbursement of products to the various marketing channel.
Market Segmentation
At Amul, since the marketing activities are handled by the GCMMF, market segmentation is also decided by GCMMF. The GCMMF determines the market size and market its product accordingly in the market so that the product can be easily sold in the market. Generally milk and milk products like butter and cheese arc popular in the all age groups. Hence they arc segmented at the national level. Milk products like chocolate and milk powder are segmented on the basis of age, that is for children but they arc also marketed at national level. The GCMMF conduct the market survey to know the demand for the products of Amul in the market and then accordingly determines the market segment, defines the target market and emphasis on the demand of population in that particular segment. The GCMMF has developed the marketing information system, which takes care of such issues.
FINANCE DEPARTMENT
Introduction:Financial management is an activity, which is concern with the acquisition and conservation of capital fund in meeting financial needs and overall objectives of business enterprise. Financial management is concern with acquisition, financing and management of assets with some overall goal in mind. Investment decision begins with the determination of total amount of asset required by the firm and to determine the money value of the same. Financial management is that managerial activity which is concerned with their lending and controlling of the firm financial resources as a separate discipline. Finance is the administration function is an organisation of cash and credit. So that the organisation may have the means to carryout is possible its objectives as satisfactory as possible. The main function of finance department is to take day to day finance requirement and other short term and long term expenses.
All the other department of the organisation strongly depends upon the finance department to carry on their departmental activity efficiently. Hence it is the responsibility of the finance manager to manage the finance function with proper care, adequate financial availability in time.
Organisation structure
Managing director
General Manager
Manager
Deputy Manager
Superintendent
Deputy Superintendent
Senior officer
Assistant officer
In this department, the top level has all the authorities and power and in this level managing director and general manager include. While in the middle level, the manager, deputy manager, Superintendent, Deputy Superintendent are include. And in the lower level senior officer and assistant officer includes.
FINANCIAL PLANNING
Planning is the most important and essential function for every organisation. Financial planning is essentially concern with essential procurement and profitable use of funds and to get maximum possible return and investment. Financial planning is the continuous process day to day administration of the business. The authority and responsibility of financial planning is with the general manager of finance. amul, the authorities and responsibilities are handled by Dipak Roy, the Anand(AMUL) General Manager of accounts. The monthly basic planning is done in Amul. But the financial planning is done through NDDB(National Dairy Development Board) In Amul, fixed deposits, equity shares and debentures are the main sources of finance. In 2008-09 Amul issues Rs.1145.30 lakh Redeemable debentures and its share capital is Rs.1980 lacs. The organisation issues the debentures and equity shares only for the members of the societies. New plant launched Anand-3 with the expense of 120 crores was financed by NDDBs. CAPITALIZATION:In
Capitalization comprises of a company ownership capital which includes capital stock and surplus includes in whatever form it may appear and borrowed capital which consists of bonds as similar expenditures evidences of long term debt. The needs for capitalization arise in all phases of business cycle. Estimation of total funds or capital arise in the initial stages to short requirement to make investment in capital assets funds are also needed to meet working capital. The word capitalization is defined as sum total of all kinds of long term securities at their par values. Thus, it can be interpreted as the sum of the ownership capital bonds and other long term debts, and the surpluses. There are mainly two methods to arrive at capitalization. 1. Cost method 2. Earning method Anand being a co-operative firm and also because of luck of information it cannot arrive at
capitalization. However the above methods are used for these companies who are new one.
There are two types of capitalization which are mentioned as follows.
1. Over Capitalization:A company is said to be over capitalized when its earning are not large enough to yield a fair return on the amount of its issued securities and long term borrowing. In other words, a business is said to be over capitalized “When capitalization exceeds the real economic value of its assets.”
2. Under capitalization:-
In under capitalization “when the rate of profit is exceptionally high is relation to the return enjoyed by similarly situated companies in the same industry or it has two little capital to conduct business.” In short under capitalization is just the reverse of cover capitalization. As against over capitalization, under capitalization implies an effective. Utilization of finance, a high rate of dividend and the enhanced prices of shares.
CAPITAL STRUCTURE OF THE ORGANISATION
“Capital structure refers to the mix of sources from where the long term fund requirement in a business may be raised.” In other words, it refers to the proportion of debt, performance capital and equity capital. Anand Amul is a co-operative sector. Therefore there is nothing like market value of shares. Whenever Amul needs funds it issues adequate no. of shares, but only for its shareholders or members of societies but not for others.
Financial Budget of 2007-08 Review of Budget Particulars Milk Purchase Raw Material
Sr. No a) 1 2 3 4 b) 1 to 4 1 2 3 4 5 6 7 8 9 10 11 12 a+b+c Particulars Milk Purchase Raw Material consumption Processing Expenses Packing Expenses Power & Fuel Subtotal Research & Development expenses Salary & Wages & PF, staff benefits Repairs & maintenance expenses Freight & Forwarding expenses Marketing expenses Post, printing & stationary Insurance premium Rent rates Audit fees Administration expenses Bank commission & interest expenses Depreciation Total Revenue budget (In Lacs) 60000.00 15000.00 1200.00 9900.00 3500.00 29600.00 1220.00 2225.00 950.00 725.00 200.00 85.00 115.00 60.00 100.00 175.00 825.00 1325.00 8005.00 97605.00 Revenue expenditure (In Lacs) 77965.56 15725.31 1089.17 8363.90 3807.86 28986.24 1182.62 2157.08 1063.55 1015.17 109.99 56.14 60.52 43.62 99.66 166.77 814.81 573.77 7343.70 114295.50 Difference (In Lacs) 17965.56 725.31 -110.83 -1536.10 307.86 -613.76 -37.38 -67.92 113.55 290.17 -90.01 -28.86 -54.48 -16.38 -0.34 -8.23 -10.19 -751.23 -661.30 16690.50
c) 1 to 12 Subtotal
Sr. No 1 2 3 4 5 6 7
Particulars Plant & machinery Building Dead stock Vehicles Computers Cans Live stock Total
Revenue budget (In Lacs) 3617.00 140.00 213.00 25.00 292.00 10.00 5.00 4302.00
Revenue expenditure (In Lacs) 1080.00 42.40 145.05 14.38 62.66 49.96 0.25 1395.56
Difference (In Lacs) -2536.14 -97.60 -67.95 -10.62 -229.34 39.96 -4.75 2906.44
? The milk purchase expenditures of AMUL higher over the expected expenditure in almost every year due to higher purchase price and milk difference. ? Power and fuel expenses are higher on account of higher furnace oil price. ? Freight and forward, insurance, rent rates and taxes are higher due to developing other branches and storage charges. Repair and maintenance expenses are higher for amount spent on increasing the productivity, putting idle plant and machinery in operations and improving the condition of exiting machines. Capitalization: in general sense the term “capitalization” means the amount of capital employed or invested in the business. It is the sum total of all long-term security issued company. It includes not only share capital but also reserve & surplus and long term borrowing. In AMUL the components of capitalization are, 1) Share capital- AMUL issues only ordinary shares and it is not listed on stock exchange because it is for public but only for the members of society. 2) Reserve & surplus- capital reserve as well as revenue reserves and surplus.
3) Long term borrowing- redeemable debenture, UTI bank long term loan, UTI bank cash credit facilities, short term loan, and fixed deposits are included. So symbolically, Capitalization= share capital + debentures + reserve + surplus + long term capital Share capital= equity share capital and The type of debenture is redeemable debenture.
H.R .DEPARTMENT
H. R. Department
INTRODUCTION
"Management is getting things done by people."
There is one popular theme in the management "MAN IS MASTER" and AMUL follows this theme. Generally organization is run with the help of five Ms viz. Man, Money, Material, Machine and Market. However it is impossible to seem the organization without human resource. Thus human resource comprises the value of the organization by effective and efficient work.
HRM is concerned with integration - getting all the members of the organization in loved and working together with a sense of common purpose. Human resource taker active n le in the modern economic scenario of any company. The management of men is not only fundamental but also dynamic and challenging Task.
The human resource management has thus become important to manage the human resources properly in the organization. Therefore, the organizations involves human resource department to take care of human
aspect in the organization. The structure of the human resources management department is as under:
Selection
Selection procedure is concerned with securing relevant information about the applicant. The main objective of selection process is to determine whether an applicant meets the qualification for a specific job and choose the application that is most likely to perform well in the job.
The Selection process in AMUL is as under
Vacancy in any department
Approval from M.D.
Advertisement
Collection of Application
Securitize the application
Interview
Medical checkup
Selection
Performance Appraisal System :
Performance appraisal is the process of evaluating the performance and qualification of employees in terms of the requirement of the jobs for which they are employed. It is highly useful in making decision regarding the promotion, transfer, wage and salary administration etc.
The Amul adopts the following appraisal system
Promotion Period 1 year 3 year 1 year 1 .5 year
Appraisal For Managers Officers Workers TemporaryWorkers
Final confirmation with the recommendation by the divisional heads comes from the MD on annual basis. His work is evaluated and if his work is not found satisfactory, he is terminated from his job. At present Amul has adopted open system under which the employee himself writes in which work he needs training and asks to the management to arrange for it.
Wage And Salary Administration :
It is a universal fact that no one will work without any reward. Thus an employee has to be properly rewarded for his services rendered to the organization. He should be paid reasonable wage or salary. The salary or wage is the remuneration for his service to the organization.
At Amul, wages and salaries arc paid on monthly basis. A time rate wage system is followed by the organization. The salary of an employee would include basic salary plus allowances like house rent, medical allowance, clearness allowances, performance allowances, festival allowances, travel allowances, education and development allowances, leave allowances etc,. Besides provident fund is also paid out from the monthly salary.
A common method is followed for the wage and salary administration. The present catalogue record received from the tine keeping officer is maintained of each employee in the register, which is known as "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. The report is scrutinized and statutory and non-statutory deductions are made. After this salary is calculated for each employee through computer according to that they prepare salary sleep of employees.
The wages are paid in cash and also credited to their savings or current account. The wages and salaries paid according to the grade wise. Arnul delegates grades like A, L, C. D, E, F, and G.
Compensation :
In Amul, The workmen's Compensation Act. 1923 is very well executed. The compensation is given lo employees as per the Act. In the case of major accident occur in organization and if any worker get injure that lime organization take care of that employee. If the employees under medical treatment and unable to came in organization for job, than half salary will be given to that employee until he/she will again join organization. Employee also gets all incentives during this period. Union provides complex expanse of medical treatment to his/her employees. They have a provision for that amount in welfare fund. For that a report from surgeon is considered.
In case of minor accident, if any employee get injure that time disability certificate take as an evidence for the payment of compensation. According to disability certificate union decide the compensation. Disability certificate must be issue by doctor from civil hospital.
According the Act, if accident takes place because of worker mistake than he/she will be unable 'o get compensation. But in AMUL even if accident occurs by workers mistake in that case union paid compensation according to injury. For that employees must past through medical report.
In case of accident, if worker get serious injury and he/she will be unable to do same work after getting recovery than management give them relief by transferring them in another section for suitable work. By this way they retain their employees.
Trade Union:
Trade unions as we know exist in inmost every organization. Trade unions are the typical unions made up of employees of that particular organization. Generally the employees in order to get better working conditions, better pay scales and to protect themselves from exploitation form Trade Unions. Trade unions perform the basic activities of discussions and negotiations with the management regarding the issues of conflict.
At Amul there arc tree trade unions in existence. One trade union is for workers the other is for clerical staff and finally one is for officials. In the initial stage there were many strikes had for 2 to 3 days of workers. Last strike was for 10 days in the year 1985. However since then Amul has been faced harmonious relations with trade unions. Since Amul is a co-operative organization each member of trade union works as a member of the Amul family. Further more Amul holds the monthly discussions with all their employees to share with them the problem" they night be facing. This awakens the mutual under standing between the management and employees.
SWOT ANALYSIS
STRENGTH :
? Co-operative culture All the co-operatives work together to accomplish a particular task.
? Margins: reasonable The system works only for farmers and for consumers, not for profit.
? Quality Amul aims at providing quality to the customers at minimum cost..
? Brand strength
The brand equity of Amul is of worth Rs.3000 crores which made It possible to become a market leader in milk and milk products like-ghee, butter etc.
? Product innovation Under its umbrella brand Amul has added a wide range of milk products like- cheese, butter, srikhand, flavored milk,
ice-cream, chocolate etc .Recently Amul has launched sugarfree chocolate, probiotic ice-cream.
? Excellent promotional tools Amul is promoting with the help of advertisement, personal selling, publicity, sale promotion etc. Amul generally use hoarding for its promotion.
WEAKNESS :
? Co-operative culture if not dealt properly can affect the organization.
? Animals are now taken as side business. This can affect the industry as the main raw material is milk which is provided by animals. ? Illiteracy of the farmers obstructs the successful functioning of the organization. It makes it impossible for the industry to convince them and change the people?s mindset. ? Sometimes government policies also stand as an obstacle in front of the organization for its functioning.
OPPORTUNITIES :
? Amul is planning to join hands with Chennai based company Aavin to open about 10,000 retail outlets in the south.
? For the health conscious segment of the society Amul has launched sugar-free chocolates, probiotic ice-creams etc. These value added products have added to its sales turnover.
? Now, Amul is exporting its products in different countries like UAE, Singapore, Australia, and Europe. Being, Asia?s largest milk brand Amul has acquired significant position in the global market.
? To make the maximum utilization and enter into the health drink with Stamina and also compete it with other health drinks.
? To take more care of the children segment by launching new products like corn flakes and choco flakes which are fully vital for the development of young children?s.
? Company will also launch new product i.e. Flavored yogurt which is used to in international market so company grab this opportunity for Indian market also.
THREATS :
? With the advent of multinational companies in India the competition has intensified. Amul is facing a tough competition with the companies like Cadbury, Nestle, Britannia etc. ? In the health drink segment for its „Stamina? Amul is facing competition with PepsiCo India, Parle Agro etc. Similarly in beverage section also it is having a lot of competitors. ? Animals are now taken as side business by the farmers. Their illiteracy poses a threat to change their mindset thereby affecting the organization. ? As there are many other international players coming to India through FDI there has become a threat to the image of amul. ? The Other diversification which are not been accepted by the consumers and are notable to meet the requirements of the
customers are being a push back for amul. E.g : Amul Kadhi as it did not catch appreciation of the customers.
Finding
? As per survey get different idea for Flavored Milk Powder i.e. what should be type of packing? , what should be taste of Flavored Milk Powder etc. ? From survey as out of 100 sample size 77 consumers would like to consume this product so company should launch this product.
? As we focus on all category of income group there is mean response from all category. Respondents want sample for taste before providing their views towards new product. At initial stage they would prefer to consume small packing size as it is new product. ? There are so many respondents we found out who are aware from simple milk powder. ? Consumers would like simple milk powder of Amul as compare to Nestle. ? Now we introduce different flavors in milk powder i.e. Kesar Pista, Elaychi, Mango,Rose. Out of these all flavors consumers most prefer flavored is Kesar Pista.
CONCLUSION
? After analyzing the data we can conclude that there is a positive response for the launching of Flavored Milk Powder. Most of the people are ready to go for this new product in the market.
? As there is no other competitor for this product so AMUL have to take this opportunity to launch this product and it can achieve its goal in the market.
? From AMUL all consumers are highly satisfied so now company have to delight their consumers so company have chance for that by introducing new product in the market.
? Company just going to add new range to its existing product i.e Flavored Milk now will be available in powder form ,which is much rich in taste and quality as compare to simple milk powder.
RECOMMENDATION
? Company must have to launch this product as consumers can get different taste through this product.
? From survey get view for packing of simple milk powder that it should be change so company have to focus on it.
? During survey of any product company have to provide sample for taste as we can get proper response from consumers.
? Company have also focus on mild sweetness in flavored milk powder.
Internet Site
:www.google.com www.amul.com
Marketing Management: Philip Kotler Company’s Leaflets, Manuals
doc_515301506.docx
Training is the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies. Training has specific goals of improving one's capability, capacity, and performance.
INDUSTRIAL TRAINING PROGRAMME AT AMUL ANAND
Kaira District Co-operative Milk Producer’s Union Ltd. Anand, Gujarat-388001 SUBMITTED BY: NIRAV SHETH PROJECT GUIDED BY: G.D.TRIVEDI SIR
SUBMITTED TO:
SARVODAY COLLEGE OF MANAGEMENT AND TECHNOLOGY
SAURASHTRA UNIVERSITY RAJKOT
PREFACE
Amul is the pride of not only Gujarat, but of the entire nation. I have a grate pleasure in presenting the report related to such an organization. The M.B.A programmer is well structure and integrated course of business studies, the main objectives of practical training at M.B.A. level is to develop skill in a student by supplement to the theoretical study of the business management in general. Industrial environment and business practice. The business and organizational functions and activities, as well as an exposure to strategic thinking and management. Training is an integral part of MBA and each and every student has to undergo the training for 45 DAYS in an organization and then prepare a project report on the same after the completion of the project. I am glade to state that I have an opportunity to do my project work at “kaira district co-operative milk producer?s union ltd”. Anand.A leading manufacturing and supplying unit of milk and milk products. During this whole training period, I got a lot of experience and came to know about the management practice in the real. It differs from those of theoretical knowledge and the practically in the real life. In today?s globalization world, where cutthroat competition is reveling in the market, theoretical knowledge is not sufficient.
ACKNOWLEDGEMENT
“Acknowledgement is just a way of explaining gratitude, something so deep that can not be expressed fully.” With immense pleasure, I would like to present this project report for Kaira District Co-operative Milk Producers? Union Ltd., Anand. It has been an enriching experience for me to undergo my Industrial interface at AMUL, which would not have possible without the goodwill and support of the people around. As a student of S.C.M., I would like to express my sincere thanks too all those who helped me during my practical training programme. I would like to give my heartily thanks to Mr. J. K. Joshi, Manager of Administration, who permitted me to get training at AMUL. I am very thankful to Mr. G.D.TRIVEDI sir who helped me at every step whenever needed. At last but not least my grateful thanks is also extended to Mr NIRAV DAVE sir (Director of SCM) and my thanks to all my faculty members for the proper guidance and assistance extended by them.
However, I accept the sole responsibility for any possible error of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.
DECLARATION
I amNIRAV SHETH here by undersign that this project report has been completed by me under guidance of Mr. KALPESH SHAH & Mr G D TRIVEDI AMUL, Anand.
I declare that study And suggestion of this report is done by my own efforts and is not submitted, either in part or in whole, to any other University or Institute for examination.
DATE :
Student Name: (NIRAV SHETH)
PLACE : ANAND
INDEX
Sr. No 1. 2 3. 4. 5. 6 7 6. 7.
PARTICULARS
PAGE NO.
SCOPE OF PROJECT OBJECTIVE &LOGO EXECUTIVE SUMMARY COMPANY PROFILE PRODUCTION DEPARTMENT MARKETING DEPARTMENT FINANCE DEPARTMENT HR DEPARTMENT CONCLUSION
6 7 9 10 23 39 46 59 75
SCOPE
PRESENT OF AMUL GLOBAL MARKET
? As Amul has big consumer market in overall country as well as abroad, increase in product mix will give more privileges to Amul. ? Transportation of the milk should be accurate so that wastage of milk can be avoided. ? Amul should increase the procurement of milk by increasing the number of village society. ? Special seminar should be arrange in villages and guiding the village people in proper take care of cattle.
TOMORROW OF AMUL
? Right now Amul using glass bottle for packing of flavored milk instead of that Amul can use plastic bottle of flavored milk because it reduce cost and also convenient in use. ? Keeping high packing material is required huge investment and it raise interest charges but it can reduce by using economic order quantity model.
OBJECTIVE& LOGO
Objective AMUL union is one of the pioneers, which started using their profit for the milk supplier’s welfare. The main goal of AMUL is to improve the economic condition of milk procedure especially that of weaker sections in areas by providing them on ensured and producer oriented market for their surplus milk. The main objectives of AMUL are as below: ? One of the major objectives is to exceed an activity in co-operative way that enables the maximum participation of the numbers of society. ? The second other objective is to help producers of milk to increase their yields and profits and to obtain for producers a greater share of prices paid by consumers of the milk. ? To provide good market for all the milk producers. ? To provide fresh milk to the people at the reasonable price.
Logo
The symbol of AMUL is a ring of four hands, which shows they are coordinated with each other. The actual meaning of this symbol is coordination of hand of different people by whom this Union is now at the TOP. ? First hand is for the farmer (producers), without them the organization would not exist. ? Second hand is for the Representative of processor by whom the raw milk is getting processed into different finished products. ? Third hand is for Marketer without whom the product would have not been able to reach to the consumer. ? Fourth hand is for Customer without whom the organization could not carry on because they are the people who consume the product. By coordination of this four people the union runs successfully.
EXECUTIVE SUMMARY
AMUL is a co-operative sector. It is the institution of the farmers, for the farmers and from the farmers. The AMUL gives pleasure to the farmer to charge the own price, which was not possible in earlier years. This union was born on 14th December 1946. The union provides facilities to its members like more return, satisfactory price, insemination, first aid, group Insurance, cattle food at confessional price etc. AMUL dairy has five main departments like finance, personnel, commercial, milk procurement and production. The finance department does the clerical work and takes care of inflow and outflows of the cash. The other work of finance Department is to audit of annual work. The personnel department handles the work regarding personnel like appointment, recruitment, promotion, transfer, dismissal, demotion,
performance appraisal etc, The commercial department conducts all promotional activities of local area. The pricing decision of milk and buttermilk is taken at commercial department. The marketing work is handle by GCMMF. The production department produces the product with the help of latest technologies. The production is done according to ISO marks requirement. The milk procurement department gets the milk every day two times from 92 routes and 1073 societies. For the maintenance of quality of milk there are 150 chilling units
ORGANIZATION PROFILE
Name
KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS' UNION LTD, ANAND
Form
Co-operative sector registered under the co-operative society act.
Location
Amul Dairy, Amul Dairy Road, Anand, Gujarat. India.
Registration
14th December 1946
Registered Office
Kaira District Co-operative Milk Procedures' Union Limited, Anand388001
Initial Promoters
Shri Tribhuvandas Patel Shri Morarji Desai
Size
Production of different products are on large scale, besides the Whole organization is also very large, collecting 11 lakhs litters Milk everyday and producing milk product.
Office Time
10:45 a.m. to 5:45 p.m.
Total Manpower
Approximately 1330.
Group Managerial Officer Supervisor & Clerical Workers No. Of 57 165 139 969
Total No. Of Shifts
There are three shifts. 1st Shift Time: 2nd Shift Time: 3rd Shift Time: 8:30 a.m. to 4:30 p.m. 4:30 p.m. to 12:30 a.m. 12:30 a.m. to 8:30 a.m.
Village Co-operative Societies:1073
Total No. Of Society Members:6,15,415
BOARD OF DIRECTORS
1. Shri Ramsingh P. Parmar Chairman
2. Shri Rajendrasinh D. Parmar Vice Chairman 3. Shri Shivabhai M. Parmar 4. Shri Maganbhai G. Zala Director Director
5. Shri Chandubhai M. Parmar Director 6. Shri Pravinbhai F. Solanki 7. Shri Dhirubhai A.Chavda 8. Shri Bhaijibhia A. Zala 9. Shri Mansinh K.Chauhan 10. Shri Bipinbhai M.Joshi 11. Smt. Madhuben D. Parmar 12. Smt. Sarayuben B. Patel 13. Shri Ranjitbhai K. Patel ? Shri B. M. Vyas (M.D. of GCMMF, Anand) ? Shri Rahulkumar Shrivastav (M.D. of KDCMPUL, Anand) ? Shri Deepak Dalai (District Registrar) Director Director Director Director Director Director Director Director
bankers
? Kaira District Central Co-operative Bank ? U.T.I. Bank ? State Bank of India ? Bank Of Baroda ? Bank Of Maharastra HISTORY OF AMUL
In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT COOPERATIVE MILK PRODUCERS' UNION. This union selected the brand name AMUL in 1955. The brand name Amul means "AMULYA". This word derived form the Sanskrit word "AMULYA" which means "PRICELESS". A quality control expert in Anand had suggested the brand name "AMUL". Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a fanners' organization. And have a proven model for dairy development (Generally known as "ANAND PATTERN"). In the early 40's, the main sources of earning for the farmers of kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Poison dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the kaira district. This system leads to exploitation of poor and illiterates' farmers by the private traders. The traders used to beside the prices of milk and the fanners were forced to accept it without uttering a single word.
However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his cooperation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk. These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union. However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme, was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand.
Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Vergeese Courian showed main interest in establishing union who was supported by Shri Tribhovandas Patel who lead the farmers in
forming the Co-operative unions at the village level. The kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a cooperative union, it was commonly resolved to sell the milk under the brand name AMUL. At the initial stage only 250 liters of milk was collected everyday. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs liters of milk everyday. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1073 societies. With the financial help from UNICEF, assistance from the govt. of Newzeland under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Dr.Rajendra Prasad, the president of India laid the foundation on November 15, 1954. Shri Pundit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20,1955.
STAGES OF DEVELOPMENT The Amul is the co-operative union which successes with the slow and steady growth. The Amul has start with one society and now it is converted into a union with 1073 societies. At the beginning Amul collect only 250 liters
of milk per day. Now, Amul collect 11 lakhs of liters of milk every day. The excess of milk leads the Amul to develop the milk products. The Amul developed step by step. The main stages of development are as follows:
IN 1954 In the year 1954 UNICEF provide the financial help worth of Rs. 50 million to the Amul. This financial help lead Amul to established fully automatic plant for producing milk and milk powder.
IN 1958 In this year Amul expand the plant and started to produce sweetened condensed milk.
IN 1960 The excess supply of milk in the winter season and huge amount of profit make possible the expansion of Amul. The Amul established new units for producing cheese and baby food. This creates history in the dairy products, because it was the first time where cheese and baby food is produced from the buffalo milk.
IN 1981 The new cattelfeed plant was established at Kanjari.
IN 1992 For getting the benefits of excess supply of milk, Amul established another plant named Amul-3. This plant has capacity of producing 14 lakhs litters of milk everyday.
IN 1994 The new cheese plant was established at Khatraj and Chocolates plant established at Mogar. These two plants started with help of NDDB. .
IN 2001 For providing the quality milk at any time, Amul launch the new flavored milk. This flavored milk available in four different tastes. :
IN 2003 For expanding the market share Amul launch the "SNOWBALL" pizza and flavored lassie. This gives the new market share to Amul in the area of fast food.
IN 2004 The Amul keeps on achieving new highs in this competitive world. It has launch CHOCOZOO [Chocolate], MUNCHTIME [Gathiya]. Amul also started the new Satellite dairy at PUNE and COLCUTTA. This will help Amul in expanding milk marketing in other state
MISSON OF AMUL
? The main mission of Amul is to help farmers. Farmers were the foundation stone of Amul.
? The system works only for farmers and for consumers, not for profit .
? The main aim of Amul is to provide quality products to the consumer at minimum cost.
? The goal of Amul is to provide maximum profit in terms of money to the farmers.
VISION OF AMUL
? Vision of Amul was to provide and vanish the problems of farmers (milk producers) of their livelihood . The Amul?s apparition was to run the organization with the co-operation of four HANDS which are - the farmers, the representatives, the marketers and the customers.
A M U L
POLICIES ADOPTED BY AMUL
? AMUL QUALITY POLICY
? AMUL SAFETY POLICY ? AMUL GLASS POLICY
AWARD OF AMUL
Best productivity award-1987, 1988, and 1989.
Indian Merchants Chamber Award for outstanding contribution towards Food processing Industry-1989.
Special Award for sustaining productivity performance-1990 & 1996. ICA Memento Award toward genuine & self-sub staining cooperative world wide-1992.
G.D Birla Award for outstanding contribution in rural upliftment-1996.
Ramakrishna Bajaj National Quality Award-2003.
The Gujarat Co-operative Milk Marketing Federation (GCMMF) has been honored at the CIO 100 symposium & Award Ceremony on August 19, 2003.
Sahakari Vikas Ratna Award-2005.
PRODUCTION DEPARTMENT
PRODUCTION DEPARTMENT
INTRODUCTION
"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 milk butter and milk powder.
With the financial help of UNICEF, union established a Rs. 50 million factory to manufacture milk powder and butter in November 15, 1954. In 1958 the plant was expanded to manufacture sweet condensed milk. In 1960 the other branch is started, which can produce 600 tone of cheese and 2500 tones of baby food every year. In 1964 the other plant was established to manufacture cattle feed on October 31, 1964. Third dairy and cheese plant at Khalraj began in February 1994.
Today the Amul has three plants Known as Amul 1, 2 & 3 all three plant work 24 hours 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.
Organization Structure
Managing Director
General Manager
Dairy Plant
Asstt. G. M.
Manager (Production)
Manager (Eng.)
Officer
A.M. (Eng.)
Dy. Manager (Eng.)
Workers
Officers
A.M. (Eng.)
Technicians
Eng. Workers Officers Technicians Eng. workers
Amul Products
Fresh Milk
Amul Fresh 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 Gold Milk
Amul Taaza Double Toned Milk
Amul Lite Slim and Trim Milk
Amul Fresh Cream
Amul Shakti Toned Milk
Amul Calci+
Cheese Amul Pasteurised Processed Cheese
100% Vegetarian Cheese made from microbial rennet
Amul Cheese Spreads
Tasty Cheese Spreads in 3 great flavours..
Amul Emmental Cheese
The Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma
Amul Pizza Mozzarella Cheese
Pizza cheese...makes great tasting pizzas!
Gouda Cheese
For Cooking Amul / Sagar Pure Ghee
Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience.
Cooking Butter
Amul Malai Paneer
Ready to cook paneer to make your favourite recipes!
Utterly Delicious Pizza
Mithai Mate
Sweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste.
Masti Dahi
Desserts Amul Ice Creams
Premium Ice Cream made in various varieties and flavours with dry fruits and nuts.
Amul Shrikhand
A delicious treat, anytime.
Amul Mithaee Gulab Jamuns
Pure Khoya Gulab Jamums...best served piping hot.
Amul Chocolates
The perfect gift for someone you love.
Amul Lassee
Amul Basundi
Health Drink Nutramul
Malted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.
Amul Products
Amul Products
PRODUCTS MANUFACTURED
Bread spreads ? ? ? ? CheeseRange Amul Butter Amul Lite Low Fat Bread spread Amul Cooking Butter Delicious Margarine
? ? ? ? ? ? ? ?
Amul Pasteurized Processed Cheddar Cheese (The Amul Cheese) Amul Processed Cheese Spread Amul Pizza (Mozzarella) Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (Cottage Cheese) Utterly Delicious Pizza Amul Shakti 3% fat Milk
? ? ? ? ? ?
Amul Taaza 1.5 % fat Milk Amul Gold 4.5 % fat Milk Amul Lite Slim-n-Trim Milk 0% fat Milk Amul Shakti Toned Milk Amul Fresh Cream Amul Snowcap Softy Mix
Pure Ghee
? ? ?
Amul pure Ghee Sagar Pure Ghee Amul Cow Ghee
InfantMilkRange
? ? ?
Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 (6 months above) Amulspray Infant Milk Food
Milk Powder
? ? ? ?
Amul Full Cream Milk Powder Amulya Dairy Whitner Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener
Sweetened Condensed Milk
? Sweets
?
Amul Mitthaimate Sweetened Condensed Milk
Amul Shrikhan & Amarkhand Amul Mithai Khoya Gulabjamun Amul Basundi
? ?
Fresh Milk
? ? ? ? ? ? Curd Products
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
? ? ? ? ? ? Amul Ice Creams
Yogi Sweetened Flavored Dahi (Dessert) Amul Masti Dahi (Fresh Curd) Amul Lite Dahi Amul Prolife Probiotic Dahi Amul Masti Spiced Butter Milk Amul Lassee
? ? ? ? ? ? ? ?
RoyalTreatRange (Butterscotch, Rajbhog, Malai Kulfi) Nut-O-ManiaRange (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond) Nature’s Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple) SundaeRange (Mango, Black Currant, Sundae Magic, Double Sundae) Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Mega bite, Cassata) Utterly Delicious (Vanilla, Strawberry, Chocolate, Chocochips, Cake Magic) Amul Sugar Free IceCreamRange Amul Profile Probiotic Ice Cream
Chocolate & Confectionery
?
? ? ?
Amul Milk Chocolate Amul Fruit & Nut Chocolate Amul Bindazz Amul Rejoice
Brown Beverage
? Milk Drink
Nutramul Malted Milk Food
? ? ? Health Beverage
Amul Kool Flavored Milk (Mango, Strawberry, Saffron, Cardamom, Rose) Amul Kool Café Amul Kool Koko
?
Amul Shakti White Milk F
MARKETING DEPARTMENT
MARKETING DEPARTMENT
Introduction
Every organization that produces one or more products requires marketing of the products sell them in the market. It is only through marketing that people know about a company's products. Hence marketing is considered as a key activity of organization. The organization requires sound marketing structure to carry on its marketing activities.
However the concept of marketing is not confined only to selling of goods and services to customers. Instead the company tries to create and maintain the customer base through marketing. The marketing thus focus on the customer needs and wants in the market and emphasis on producing and selling only those goods, which have higher demand in market. The company mainly markets its products through advertising. Marketing uses various sales promotional tools to boost the sales of the company. The marketing department thus should have sound distribution channel and promotional system to make the marketing activities sound.
Organization Structure:
Managing Director
Deputy Manager
Product-dispatch Manager
Superintendent
Deputy Superintendent
Senior Officer
Assistant
Marketing Mix
The marketing mix is a set of four elements: Product, Price, Place and Promotion and this is decided by GCMMF.
1. Product
At AMUL, "GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LIMITED (GCMMF)" does the product planning at national level. It is the duty of GCMMF to plan the new product by conducting the market survey at the state and national level. However, issues of product lunch at the local level are taken care of by Amul itself. The Amul has set up the commercial department, which conducts the survey in the local areas through business. The new product decisions are also taken by the GCMMF.
2. 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. However, the price is inclusive of several elements like, ? Cost of Milk ? Labor Cost ? Processing Cost ? Packaging Cost ? Advertising Cost ? Transportation Cost ? Sales Promotion Cost ? Taxes etc. The GCMMF considers all these cost aspects and set them up in pricing structure to decide the jelling price of milk and milk products.
3. Promotion AMUL, promotes its products through newspaper, Television, hoardings etc. Television is the best media for advertising. The GCMMF however uses hoarding for advertising in local areas. Hoarding designed on the creative basis attract the customer more.
4. Place
AMUL has developed federation and AMUL parlors located in several parts of country. The GCMMF handles the works relating to managing of stocks and distributors in country. Thus GCMMF looks after the disbursement of products to the various marketing channel.
Market Segmentation
At Amul, since the marketing activities are handled by the GCMMF, market segmentation is also decided by GCMMF. The GCMMF determines the market size and market its product accordingly in the market so that the product can be easily sold in the market. Generally milk and milk products like butter and cheese arc popular in the all age groups. Hence they arc segmented at the national level. Milk products like chocolate and milk powder are segmented on the basis of age, that is for children but they arc also marketed at national level. The GCMMF conduct the market survey to know the demand for the products of Amul in the market and then accordingly determines the market segment, defines the target market and emphasis on the demand of population in that particular segment. The GCMMF has developed the marketing information system, which takes care of such issues.
FINANCE DEPARTMENT
Introduction:Financial management is an activity, which is concern with the acquisition and conservation of capital fund in meeting financial needs and overall objectives of business enterprise. Financial management is concern with acquisition, financing and management of assets with some overall goal in mind. Investment decision begins with the determination of total amount of asset required by the firm and to determine the money value of the same. Financial management is that managerial activity which is concerned with their lending and controlling of the firm financial resources as a separate discipline. Finance is the administration function is an organisation of cash and credit. So that the organisation may have the means to carryout is possible its objectives as satisfactory as possible. The main function of finance department is to take day to day finance requirement and other short term and long term expenses.
All the other department of the organisation strongly depends upon the finance department to carry on their departmental activity efficiently. Hence it is the responsibility of the finance manager to manage the finance function with proper care, adequate financial availability in time.
Organisation structure
Managing director
General Manager
Manager
Deputy Manager
Superintendent
Deputy Superintendent
Senior officer
Assistant officer
In this department, the top level has all the authorities and power and in this level managing director and general manager include. While in the middle level, the manager, deputy manager, Superintendent, Deputy Superintendent are include. And in the lower level senior officer and assistant officer includes.
FINANCIAL PLANNING
Planning is the most important and essential function for every organisation. Financial planning is essentially concern with essential procurement and profitable use of funds and to get maximum possible return and investment. Financial planning is the continuous process day to day administration of the business. The authority and responsibility of financial planning is with the general manager of finance. amul, the authorities and responsibilities are handled by Dipak Roy, the Anand(AMUL) General Manager of accounts. The monthly basic planning is done in Amul. But the financial planning is done through NDDB(National Dairy Development Board) In Amul, fixed deposits, equity shares and debentures are the main sources of finance. In 2008-09 Amul issues Rs.1145.30 lakh Redeemable debentures and its share capital is Rs.1980 lacs. The organisation issues the debentures and equity shares only for the members of the societies. New plant launched Anand-3 with the expense of 120 crores was financed by NDDBs. CAPITALIZATION:In
Capitalization comprises of a company ownership capital which includes capital stock and surplus includes in whatever form it may appear and borrowed capital which consists of bonds as similar expenditures evidences of long term debt. The needs for capitalization arise in all phases of business cycle. Estimation of total funds or capital arise in the initial stages to short requirement to make investment in capital assets funds are also needed to meet working capital. The word capitalization is defined as sum total of all kinds of long term securities at their par values. Thus, it can be interpreted as the sum of the ownership capital bonds and other long term debts, and the surpluses. There are mainly two methods to arrive at capitalization. 1. Cost method 2. Earning method Anand being a co-operative firm and also because of luck of information it cannot arrive at
capitalization. However the above methods are used for these companies who are new one.
There are two types of capitalization which are mentioned as follows.
1. Over Capitalization:A company is said to be over capitalized when its earning are not large enough to yield a fair return on the amount of its issued securities and long term borrowing. In other words, a business is said to be over capitalized “When capitalization exceeds the real economic value of its assets.”
2. Under capitalization:-
In under capitalization “when the rate of profit is exceptionally high is relation to the return enjoyed by similarly situated companies in the same industry or it has two little capital to conduct business.” In short under capitalization is just the reverse of cover capitalization. As against over capitalization, under capitalization implies an effective. Utilization of finance, a high rate of dividend and the enhanced prices of shares.
CAPITAL STRUCTURE OF THE ORGANISATION
“Capital structure refers to the mix of sources from where the long term fund requirement in a business may be raised.” In other words, it refers to the proportion of debt, performance capital and equity capital. Anand Amul is a co-operative sector. Therefore there is nothing like market value of shares. Whenever Amul needs funds it issues adequate no. of shares, but only for its shareholders or members of societies but not for others.
Financial Budget of 2007-08 Review of Budget Particulars Milk Purchase Raw Material
Sr. No a) 1 2 3 4 b) 1 to 4 1 2 3 4 5 6 7 8 9 10 11 12 a+b+c Particulars Milk Purchase Raw Material consumption Processing Expenses Packing Expenses Power & Fuel Subtotal Research & Development expenses Salary & Wages & PF, staff benefits Repairs & maintenance expenses Freight & Forwarding expenses Marketing expenses Post, printing & stationary Insurance premium Rent rates Audit fees Administration expenses Bank commission & interest expenses Depreciation Total Revenue budget (In Lacs) 60000.00 15000.00 1200.00 9900.00 3500.00 29600.00 1220.00 2225.00 950.00 725.00 200.00 85.00 115.00 60.00 100.00 175.00 825.00 1325.00 8005.00 97605.00 Revenue expenditure (In Lacs) 77965.56 15725.31 1089.17 8363.90 3807.86 28986.24 1182.62 2157.08 1063.55 1015.17 109.99 56.14 60.52 43.62 99.66 166.77 814.81 573.77 7343.70 114295.50 Difference (In Lacs) 17965.56 725.31 -110.83 -1536.10 307.86 -613.76 -37.38 -67.92 113.55 290.17 -90.01 -28.86 -54.48 -16.38 -0.34 -8.23 -10.19 -751.23 -661.30 16690.50
c) 1 to 12 Subtotal
Sr. No 1 2 3 4 5 6 7
Particulars Plant & machinery Building Dead stock Vehicles Computers Cans Live stock Total
Revenue budget (In Lacs) 3617.00 140.00 213.00 25.00 292.00 10.00 5.00 4302.00
Revenue expenditure (In Lacs) 1080.00 42.40 145.05 14.38 62.66 49.96 0.25 1395.56
Difference (In Lacs) -2536.14 -97.60 -67.95 -10.62 -229.34 39.96 -4.75 2906.44
? The milk purchase expenditures of AMUL higher over the expected expenditure in almost every year due to higher purchase price and milk difference. ? Power and fuel expenses are higher on account of higher furnace oil price. ? Freight and forward, insurance, rent rates and taxes are higher due to developing other branches and storage charges. Repair and maintenance expenses are higher for amount spent on increasing the productivity, putting idle plant and machinery in operations and improving the condition of exiting machines. Capitalization: in general sense the term “capitalization” means the amount of capital employed or invested in the business. It is the sum total of all long-term security issued company. It includes not only share capital but also reserve & surplus and long term borrowing. In AMUL the components of capitalization are, 1) Share capital- AMUL issues only ordinary shares and it is not listed on stock exchange because it is for public but only for the members of society. 2) Reserve & surplus- capital reserve as well as revenue reserves and surplus.
3) Long term borrowing- redeemable debenture, UTI bank long term loan, UTI bank cash credit facilities, short term loan, and fixed deposits are included. So symbolically, Capitalization= share capital + debentures + reserve + surplus + long term capital Share capital= equity share capital and The type of debenture is redeemable debenture.
H.R .DEPARTMENT
H. R. Department
INTRODUCTION
"Management is getting things done by people."
There is one popular theme in the management "MAN IS MASTER" and AMUL follows this theme. Generally organization is run with the help of five Ms viz. Man, Money, Material, Machine and Market. However it is impossible to seem the organization without human resource. Thus human resource comprises the value of the organization by effective and efficient work.
HRM is concerned with integration - getting all the members of the organization in loved and working together with a sense of common purpose. Human resource taker active n le in the modern economic scenario of any company. The management of men is not only fundamental but also dynamic and challenging Task.
The human resource management has thus become important to manage the human resources properly in the organization. Therefore, the organizations involves human resource department to take care of human
aspect in the organization. The structure of the human resources management department is as under:
Selection
Selection procedure is concerned with securing relevant information about the applicant. The main objective of selection process is to determine whether an applicant meets the qualification for a specific job and choose the application that is most likely to perform well in the job.
The Selection process in AMUL is as under
Vacancy in any department
Approval from M.D.
Advertisement
Collection of Application
Securitize the application
Interview
Medical checkup
Selection
Performance Appraisal System :
Performance appraisal is the process of evaluating the performance and qualification of employees in terms of the requirement of the jobs for which they are employed. It is highly useful in making decision regarding the promotion, transfer, wage and salary administration etc.
The Amul adopts the following appraisal system
Promotion Period 1 year 3 year 1 year 1 .5 year
Appraisal For Managers Officers Workers TemporaryWorkers
Final confirmation with the recommendation by the divisional heads comes from the MD on annual basis. His work is evaluated and if his work is not found satisfactory, he is terminated from his job. At present Amul has adopted open system under which the employee himself writes in which work he needs training and asks to the management to arrange for it.
Wage And Salary Administration :
It is a universal fact that no one will work without any reward. Thus an employee has to be properly rewarded for his services rendered to the organization. He should be paid reasonable wage or salary. The salary or wage is the remuneration for his service to the organization.
At Amul, wages and salaries arc paid on monthly basis. A time rate wage system is followed by the organization. The salary of an employee would include basic salary plus allowances like house rent, medical allowance, clearness allowances, performance allowances, festival allowances, travel allowances, education and development allowances, leave allowances etc,. Besides provident fund is also paid out from the monthly salary.
A common method is followed for the wage and salary administration. The present catalogue record received from the tine keeping officer is maintained of each employee in the register, which is known as "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. The report is scrutinized and statutory and non-statutory deductions are made. After this salary is calculated for each employee through computer according to that they prepare salary sleep of employees.
The wages are paid in cash and also credited to their savings or current account. The wages and salaries paid according to the grade wise. Arnul delegates grades like A, L, C. D, E, F, and G.
Compensation :
In Amul, The workmen's Compensation Act. 1923 is very well executed. The compensation is given lo employees as per the Act. In the case of major accident occur in organization and if any worker get injure that lime organization take care of that employee. If the employees under medical treatment and unable to came in organization for job, than half salary will be given to that employee until he/she will again join organization. Employee also gets all incentives during this period. Union provides complex expanse of medical treatment to his/her employees. They have a provision for that amount in welfare fund. For that a report from surgeon is considered.
In case of minor accident, if any employee get injure that time disability certificate take as an evidence for the payment of compensation. According to disability certificate union decide the compensation. Disability certificate must be issue by doctor from civil hospital.
According the Act, if accident takes place because of worker mistake than he/she will be unable 'o get compensation. But in AMUL even if accident occurs by workers mistake in that case union paid compensation according to injury. For that employees must past through medical report.
In case of accident, if worker get serious injury and he/she will be unable to do same work after getting recovery than management give them relief by transferring them in another section for suitable work. By this way they retain their employees.
Trade Union:
Trade unions as we know exist in inmost every organization. Trade unions are the typical unions made up of employees of that particular organization. Generally the employees in order to get better working conditions, better pay scales and to protect themselves from exploitation form Trade Unions. Trade unions perform the basic activities of discussions and negotiations with the management regarding the issues of conflict.
At Amul there arc tree trade unions in existence. One trade union is for workers the other is for clerical staff and finally one is for officials. In the initial stage there were many strikes had for 2 to 3 days of workers. Last strike was for 10 days in the year 1985. However since then Amul has been faced harmonious relations with trade unions. Since Amul is a co-operative organization each member of trade union works as a member of the Amul family. Further more Amul holds the monthly discussions with all their employees to share with them the problem" they night be facing. This awakens the mutual under standing between the management and employees.
SWOT ANALYSIS
STRENGTH :
? Co-operative culture All the co-operatives work together to accomplish a particular task.
? Margins: reasonable The system works only for farmers and for consumers, not for profit.
? Quality Amul aims at providing quality to the customers at minimum cost..
? Brand strength
The brand equity of Amul is of worth Rs.3000 crores which made It possible to become a market leader in milk and milk products like-ghee, butter etc.
? Product innovation Under its umbrella brand Amul has added a wide range of milk products like- cheese, butter, srikhand, flavored milk,
ice-cream, chocolate etc .Recently Amul has launched sugarfree chocolate, probiotic ice-cream.
? Excellent promotional tools Amul is promoting with the help of advertisement, personal selling, publicity, sale promotion etc. Amul generally use hoarding for its promotion.
WEAKNESS :
? Co-operative culture if not dealt properly can affect the organization.
? Animals are now taken as side business. This can affect the industry as the main raw material is milk which is provided by animals. ? Illiteracy of the farmers obstructs the successful functioning of the organization. It makes it impossible for the industry to convince them and change the people?s mindset. ? Sometimes government policies also stand as an obstacle in front of the organization for its functioning.
OPPORTUNITIES :
? Amul is planning to join hands with Chennai based company Aavin to open about 10,000 retail outlets in the south.
? For the health conscious segment of the society Amul has launched sugar-free chocolates, probiotic ice-creams etc. These value added products have added to its sales turnover.
? Now, Amul is exporting its products in different countries like UAE, Singapore, Australia, and Europe. Being, Asia?s largest milk brand Amul has acquired significant position in the global market.
? To make the maximum utilization and enter into the health drink with Stamina and also compete it with other health drinks.
? To take more care of the children segment by launching new products like corn flakes and choco flakes which are fully vital for the development of young children?s.
? Company will also launch new product i.e. Flavored yogurt which is used to in international market so company grab this opportunity for Indian market also.
THREATS :
? With the advent of multinational companies in India the competition has intensified. Amul is facing a tough competition with the companies like Cadbury, Nestle, Britannia etc. ? In the health drink segment for its „Stamina? Amul is facing competition with PepsiCo India, Parle Agro etc. Similarly in beverage section also it is having a lot of competitors. ? Animals are now taken as side business by the farmers. Their illiteracy poses a threat to change their mindset thereby affecting the organization. ? As there are many other international players coming to India through FDI there has become a threat to the image of amul. ? The Other diversification which are not been accepted by the consumers and are notable to meet the requirements of the
customers are being a push back for amul. E.g : Amul Kadhi as it did not catch appreciation of the customers.
Finding
? As per survey get different idea for Flavored Milk Powder i.e. what should be type of packing? , what should be taste of Flavored Milk Powder etc. ? From survey as out of 100 sample size 77 consumers would like to consume this product so company should launch this product.
? As we focus on all category of income group there is mean response from all category. Respondents want sample for taste before providing their views towards new product. At initial stage they would prefer to consume small packing size as it is new product. ? There are so many respondents we found out who are aware from simple milk powder. ? Consumers would like simple milk powder of Amul as compare to Nestle. ? Now we introduce different flavors in milk powder i.e. Kesar Pista, Elaychi, Mango,Rose. Out of these all flavors consumers most prefer flavored is Kesar Pista.
CONCLUSION
? After analyzing the data we can conclude that there is a positive response for the launching of Flavored Milk Powder. Most of the people are ready to go for this new product in the market.
? As there is no other competitor for this product so AMUL have to take this opportunity to launch this product and it can achieve its goal in the market.
? From AMUL all consumers are highly satisfied so now company have to delight their consumers so company have chance for that by introducing new product in the market.
? Company just going to add new range to its existing product i.e Flavored Milk now will be available in powder form ,which is much rich in taste and quality as compare to simple milk powder.
RECOMMENDATION
? Company must have to launch this product as consumers can get different taste through this product.
? From survey get view for packing of simple milk powder that it should be change so company have to focus on it.
? During survey of any product company have to provide sample for taste as we can get proper response from consumers.
? Company have also focus on mild sweetness in flavored milk powder.
Internet Site
:www.google.com www.amul.com
Marketing Management: Philip Kotler Company’s Leaflets, Manuals
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