About AMUL

Amul is a brand for dairy products and Marketed by GCMMF(Gujarat Co-operative Milk Marketing Federation)

‘Amul’ means “priceless” in Sanskrit.

GCMMF is India’s largest food products marketing organization.

It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers.

Amul is a leading food brand in India with a turnover of Rs. 52.55 billion in 2007-08.

History The revolution started as an awareness among the

farmers of Kaira district of Gujarat.

In 1946, Sardar Vallabhbhai Patel and Mr. Tribhuvandas organised farmers into co-operatives.

In 1949 ,involvement of Dr. Verghese Kurien started experiment of making condensed milk from buffalo’s milk.

Construction of cooperative’s new dairy in 11 months.In 1973, union decided to set up a marketing agency,

this agency was GCMMF.

Plant Layout Plant Layout is the Overall Arrangement of the Machine

Tools, Handling Equipments, Storeroom Etc.

AMUL Plant is indigenously worked out with facilitation of various production processes and production of multi products under one plant.

The total plot is nearly about 2.27 kms.

Separate buildings are provided with required arrangements of machine tools handling and computers connection through the control room to fit for varying product-manufacturing departments.

Plant Layout (contd..) The Plant is engaged in producing milk, ice creams, milk

powder and ghee.

Entire department is uniquely provided with facilities for processing each product

There are 4 production departments and packaging departments pertaining to each product respectively.

A good layout results in elimination or minimization of accidents and hazards and cost while increases the output.

Operating AnalysisAmul’s only source of raw material is Village Milk

societies.

Milk is brought from such village milk societies every morning and evening.

This milk is then sent to the dairy plant.

In the dairy plant the milk is processed i.e. it is made free from germs.

Milk ProcessingCollection of

Raw-Milk

Purchasing & Standardizing

Process

Separation Process

Quality Check

Packaging Process

Cold Storage

Methyline Blue Reduction Test

Electronic Milk Test

1. Collection of Raw Milk Raw milk is collected from different co-operative societies

of Gujarat. About 122,000 liters of raw milk is collected per day. Before this milk is sent to the laboratory for testing the

‘FAT & SNF’ proportion, the milk is separated from the raw milk.

The milk is taken from the chilling centers to Ahmedabad with the help of trucks.

After collecting the samples of milk, they are taken to the laboratory ,where two types of tests are conducted.

1. Electronic milk test2. Methyline blue reduction test

Electronic Milk TestBefore pasteurizing the milk the samples are taken to

the laboratory.

In the laboratory with the help of machine called electronic milk tester, the proportion of SNF & FAT is checked with phosphate solution.

When the color of the milk becomes yellow, it is sent for pasteurization.

Methyline blue reduction test Another test, which is taken in the laboratory, is called

Methyline blue reduction test. This test is conducted for checking for how long the milk will remain fresh.

After laboratory gives green signal and confirming, the raw milk at the reception dock is brought in to the house and is sent to the milk processing plant.

This is then chilled below 4 degree C. and then stored in milk silos.

After that milk is processed which has two steps i.e. pasteurizing and standardizing

2.Pasteurizing & StandardizingReady Milk = Pasteurized + Standardized.

To pasteurize the milk means to kill all the germs in the milk by a particular method which was invented by a scientist called James Pasteur and so the name pasteurization.

Standardization process is known such as it bifurcates the milk in 3 categories varying according to that FAT & SNF contents.

The equipment is named OSTA. Auto standardization adjusts the fat directly.

The computer is just ordered whether gold or standard milk is to be rationed and the same will be received with appropriate contents.

3. Separation processSeparator machine separates two kinds of products,

skimmed milk & cream, through channels. There are 100 disks fixed in separator machines, which

revolve at 5000 rpm.It is taken to the tanks, which has the capacity of 20000

litres. Whenever the milk is needed from the tank, it is tested

in the laboratory and the deficit proportion fat is added by mixing cream.

This process continues for 24 hours.

4. Quality CheckPasteurized milk is sent for a quality check in the Quality

Assurance laboratory of the dairy plant.

Within 14 seconds FAT and SNF proportion is received regarding 30 lack litres of milk.

The total investment put into the lab by the Dairy plant is of Rs. 6 crores.

This laboratory only checks and analyses the powder, milk and ghee. There is a separate ice-cream analysing laboratory.

5. Packing ProcessIn the milk packaging station there are huge pipelines

and behind each of them there is polyfill machine from which the material to pack milk comes out.

There are 12 such polyfill machines in the packaging station from which the materials to pack milk comes out.

From each of these 12 machines 100 pouches are packed in one single minute.

6. StorageThen the milk is sent to the cold storage of the dairy

where the milk is stored until it is dispatched.

Here the milk is stored at temperature ranging from 5 C to 10 C, it is maintained with the help of exhaust fans having silicon chips.

About 40,000 litres of milk is dispatched from the cold storage of the dairy plant everyday.

The damaged pouches are kept a side and the milk is once again put to the tank.

Distribution NetworkGCMMF has an excellent distribution network. It is its distribution channel, which has made it so popular. GCMMF’s products like milk and milk products are perishable. Hence it becomes that much important for them to have a good distribution.

Amul ParlorsAmul has come out with a unique concept of Amul Parlours. They have classified them under 4 types:

Center for excellence (Infosys, IIMA, NID Ahmedabad etc. )On the Move (railway stations bus depots)Amul Parlours (Across different cities fully owned by Amul)Amul Preferred Outlets (private shops, keep the entire of

product range of Amul )

GCMMF TodayMembers: 13 district cooperative

milk producer’s unionNo. of Producer Members: 2.7 millionNo. of Village Societies: 13,141Total Milk handling capacity: 10.21 million litres/day Milk collection (Total- 07-08): 2.69 billion litresMilk collection (Daily Avg 07-08): 7.4 million litresMilk Drying Capacity: 626 Mts. per dayCattlefeed manufacturing Capacity: 3090 Mts per day

GCMMF TURNOVERSales Turnover Rs (million) US $ (in million)

1994-95 11140 3551995-96 13790 4001996-97 15540 4501997-98 18840 4551998-99 22192 493

1999-00 22185 493

2000-01 22588 5002001-02 23365 5002002-03 27457 5752003-04 28941 6162004-05 29225 6722005-06 37736 8502006-07 42778 10502007-08 52554 1325

AWARDS GCMMF bags APEDA AWARD for 11th year in a row.

Amul Pro-Biotic Ice-cream gets No.1 Award at world dairy summit.

Ramkrishna Bajaj National Quality Award 2003.

Received International Cio 100 Award for Resourcefulness.

Rajiv Gandhi National Quality Award 1999.

CertificationISO 9000-HACCP certified plants : All Amul Ice Cream plants are ISO 9000-HACCP certified.

Amul is in the process of getting ISO 22000 (Improved version) certification for all its plants.

No. 1 in Quality : Amul is ranked No.1 ice cream in quality by “INSIGHT” (May-June, 2002), a bimonthly consumer magazine published by Consumer Research and Education Society (CERS) based at Ahmedabad.

PRODUCTS:Bread spread:

DELICIOUS TABLE

MARGRINEAMUL BUTTER AMUL LITE-LOW FAT

& LOW CHOLESTROLBUTTER SPREAD

                                                              

AMUL SPRAY INFANT MILK FOOD

AMUL INSTANT FULL CREAM MILK POWDER

SAGAR SKIMMED MILK POWDER

Powder Milk:

AMULYA DAIRY WHITENERSAGAR TEA COFFEE WHITENER

                                                              

Milk:

                                                              AMUL FRESH MILK

AMUL GOLD MILK AMIL LITE SLIM&TRIM MILK

FRESH CREAM CHOCOLATE MILK FLOAVOURED MILK

FLAVOURED MILK AMUL MASTI SPICED

BUTTER MILK

AMUL SHAKTI TONED MILK

Cheese:

AMUL PASTEURISED CHEDDAR CHEESE

AMUL CHEESE SPREADS

AMUL EMMENTAL CHEESE

AMUL PIZZA MOZARELLA CHEESE

GODDA CHEESE

                                                                                                                             

COOKING BUTTERGHEEAMUL MALAI PANEER

MITHAI MATE MASTI DAHIPIZZA

Products for cooking:

                                                              

Desserts:

                                                                                                                                                                                                  

Health drink:

COMPETITORS:HAVE STRONG COMPETITION FROM ORGANISED AS WELL AS UNORGANISED SECTOR

•DAIRY CO-OPERATIVES ALL OVER INDIA

•HLL

•NESTLE

•CADBURY

•BRITANNIA

•ITC

•SMITHKLINE BEECHAM

•WARANA GROUP

MARKET SHARE IN VARIOUS CATEGORIES:

AMUL BUTTER- 85%

AMUL LITE- 80%

AMUL GHEE- 8%

MILK POWDER- 65%

AMUL CHEESE- 50%

AMUL ICE CREAM- 35%

AMUL SHRIKHAND- 50%

AMUL CHOCOLATES- 10%(Market position- 3rd)

India is the largest milk producing country with production of more than 92mn tonnes.

The dairy industry is dominated by the co-operative sector- 60% of total installed capacity.

They will be having tough competition from all cooperatives.

Gcmmf is growing everyday by addition of new members,

They are upgrading themselves in terms of techonology to match the competition.

In near future they don’t see any threat unless they commit any blunder.

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