Amul (2)

PRESTIGE INSTITUTE OF MANAGEMENT AND RESEARCH

PRESENTATION ON AMUL

GUIDED BY PREPARED BYProf. Mohit Moghe Sapna Malviya Prachi Bajaj

Sheena Gahlot

Amul: The origin

• The mighty Ganges at it's origin is but a tiny stream in the Gangotri ranges of the Himalayas. Similar is the story of Amul which inspired 'Operation Flood' and heralded the 'White Revolution' in India.

• It began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to the flood it has become today.

• Today Amul collects, processes and distributes over a million liters of milk and milk products per day, during the peak, on behalf of more than a thousand village cooperatives owned by half a million farmer members.

• Amul too has become a symbol of the aspirations of millions of farmers. Creating a pattern of liberation and self-reliance for every farmer to follow.

The Birth of Amul

• It all began when milk became a symbol of protest

• Founded in 1946 to stop the exploitation by middlemen

• Inspired by the freedom movement

• Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat India.

• The word amul is derived from the Sanskrit word amulya , meaning rare, valuable .[

• The co-operative was initially referred to as Anand Milk Federation Union Limited hence the name AMUL.

• Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3 million milk producers in Gujarat.[

• Amul spurred India's White Revolution , which made the country the world's largest producer of milk and milk products.

• In the process Amul became the largest food brand in India and has ventured into markets overseas.

• Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited with the success of Amul.

• The Agricultural and Processed Food Products Export Development Authority (APEDA) was established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by the Parliament in December, 1985.

• APEDA is mandated with the responsibility of export promotion and development of the diary products,

GCMMF• Gujarat Cooperative Milk

Marketing Federation Ltd. (GCMMF), is India's largest food product marketing organisation with annual turnover (2013-14) US$ 3.0 billion. Its daily milk procurement is approx 13.18 million lit per day from 17,025 village milk cooperative societies, 17 member unions covering 31 districts, and 3.23 million milk producer members.

• India now has indisputably the world's biggest dairy industry at least in terms of milk production last year India produced close to 100 million tonnes of milk, 15% more than the US and three times as much as the much-heralded new growth champ, China.

• India has now become one of the largest producers of milk and value-added milk products in the world.

• Areas of Production: Uttar Pradesh, Maharashtra, Himachal Pradesh, Madhya Pradesh, Punjab, Rajasthan, Tamil Nadu are the major production area of Dairy Products in India.

• The individual products under this sub-head are as below:

Butter Fresh Butter MilK

Butter Oil Fresh Cheese

Milk & Cream in Powder Milk for Babies

Other Fat Skimmed milk powder

Other milk power Whole Milk

Ghee  

Major Export Destinations (2013-14)

MARKET SHARE

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The Amul Model

• The Amul Model of dairy development is a three-tiered structure with the dairy cooperative societies at the village level federated under a milk union at the district level and a federation of member unions at the state level.

• Establishment of a direct linkage between milk producers and consumers by eliminating middlemen

• Milk Producers (farmers) control procurement, processing and marketing

• Professional management The Amul model has helped India to emerge as the largest milk producer in the world. More than 15 million milk producers pour their milk in 1,44,500 dairy cooperative societies across the country. Their milk is processed in 184 District Co-operative Unions and marketed by 22 State Marketing Federations, ensuring a better life for millions

AMUL MODEL

Supply chain Management

MILK PROCUREMENT• Total milk procurement by our member unions during the year 2013-

14 growth of 3.6 per cent over 131.03 lakh’s kilograms (13.10 million kg) The highest procurement was recorded during February 2014 at 169.44 lakh’s kilograms (16.94 million kg) per day.

SALES

• During the year, sales of our Federation registered an highest ever, record growth in sales of 32.10 per cent to reach Rs.18143.46 crores.

Distribution• GCMMF coordinated with various unions to get a regular

supply of milk and dairy products.• The processed milk and dairy products were procured from

district dairy unions and distributed through third party distributors.

• To ensure quality and timely deliveries, GCMMF and the district unions had several mechanisms in place.

• The unions monitored the supplies of milk and the

distribution of finished products .

Distribution Process

Company Wholesaler Dealer Franchisee

Retailer

Consumers17

Innovation

• The evolution of IT in AMUL was took place in the guidance of DR.B.M Vyas.

• The milk collection center at village cooperative societies, were first automated.

• Data analysis software utilization for milk production estimation and increasing productivity.

• VATS network between all the level of distribution network and GCMMF.

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Automatic milk collection unit system

INFORMATION TECHNOLOGY INTEGRATION

• Processing of 10 Million payments daily, amounting to transactions worth USD 3.78 million in cash.

• Radical changes in business processes - eliminating middlemen.

• Improved delivery mechanisms and transparency of business operations.

• Due to this process, AMUL is able to collect six million litres of milk per day.

• Huge reduction in processing time for effecting payments to the farmers from a week to couple of minute.

• Movement of 5000 trucks to 200 dairy processing plants twice a day in a most optimum manner.

• Practicing just in time supply chain management with six sigma accuracy.

• Online order placements of Amul’s products on the web. • Step further towards integrating Cow-to-Consumer (C2C) IT Value Chain with

implementation of “Common WD Software”, popularly known as Distributor Management System (DMS). This application is supported with Mobile based order booking application (Sales force automisation – SFA) for Wholesale Distributors saleman.

• Mobile Application based Order Booking for Fresh products across branches. This is very helpful to our 2000+ Milk distributors in sending order directly from the market, monitoring transactions and credit limits

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Amul adopts green tech for its chocolate plant

• The goal of this project is to promote energy efficiency and environment friendly technologies in Indian small and medium enterprises.

• The pilot project, introduced for the first time in India, will result into energy saving of around 47 percent and reduction in CO2 emission by 39%.

Cold Storage Network

• Chillers in proximity of villages

• Prompt transport to district facilities for further dispatch to consumers/ processing units.

• Chilled trucks to transport processed products

• Delivery to local chillers by insulated rail tankers and chilled trucks.

• Refrigerators and freezers with retailers and departmental stores to retain freshness.

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CONCLUSION

• AMUL,s supply chain and distribute network is widely spread in the country as well as in the world.

• Some achievements by AMUL are:-National Productivity Council Awards 1985-86 and

1986-87Shakari Vikas Ratna Award 2004Baroda Productivity Council Award 1997-98Care Awards – Healthcare category 2013 CII National Awards for food safty in 2013

Thank you…