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2013

Amul

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INDIAN DAIRY INDUSTRY

Both public and private sector have contributed to the dairy industry growth in India. Government dairy distributes 90% of its milk in sachets or in containers while remaining 10% is marketed as butter, ghee etc. On contrary, private sector only markets 20% of milk and remaining 80% of milk is made into preparation suitable for exports. Amul have Chocolate as their main product. Though India is No. 1 in milk production, it is unfortunate that we are importing milk products from other countries. Since we do not have good technology for production of skim milk powder we are forced to import them from Europe andNew Zealand.

HISTORY OF THE COMPANYThe story of AMUL inspired 'Operation Flood' and heralded the 'White Revolution' in India. It began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to the flood it has become today. Today Amul collect processes and distributes over a million liters of milk and milk products per day, during the peak, on behalf of more than a thousand village cooperatives owned by half a million farmer members. Amul has become a symbol of the aspirations of millions of farmers; creating a pattern of liberation and self-reliance for every farmer to follow.The ‘AMUL revolution’ started as awareness among the farmers grew and matured into a protest movement. Over four decades ago, the life of a farmer in Kaira District was very much like that of his counterpart anywhere else in India. His income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. Private traders and middlemen controlled the marketing and distribution system for the milk. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throwaway prices. In this situation, the one who gained was the private trader .Gradually, the realization dawned on the farmers that the exploitation by the trader could be checked only if marketed their milk themselves .In order to do that they needed to form some sort of an organization. This realizationis what led to the establishment of the Kaira District Cooperative Milk Producers' Union Limited (popularly known as Amul) which was formally registered on December 14, 1946.Currently AMUL has 2.28 million producer members with milk collection average of5.08 million liters/day .

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MAIN BUSINESSAMUL is mainly into the business of marketing, transporting and distributing the milk and milk products manufactured by its owners. Besides creating urban employment in dairy plants, marketing, transporting and distribution, it has helped to provide farmers with a sustainable rural employment program. AMUL has always tried to be a step ahead of the market. It has always been a model to which othercooperatives have looked up as an example and inspiration as well as one from which many have benefited. AMUL was one of the first major organizations in India to have a website. This site has been used both to develop an intranet of AMUL distributors as well as a cyber-store for consumers , one of the first examples of e-commerce activity in India.

satisfy the taste and nutritional requirements of the customers of the world, through excellence in marketing by our committed team.

OBJECTIVE OF THE STUDY:

The objective of financial statement is to know information about the financial position, performance & cash flows of an enterprise with the help of analytical tools.

To know the Market Position AMUL by taking Market Value Ratios To know the tradeoff between Liquidity & Profitability. To know export & import of company To know achievements of amul in international market To know how amul dealing with another countries

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ABOUT PRODUCTSAMUL means "priceless" in Sanskrit. The brand name "Amul," from theSanskrit "Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found in several Indian languages. Amul products have beenin use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Icecream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand inIndia. (Turnover: Rs. 37.74 billion in 2005-06). Today Amul is a symbol of many things. Of high-quality products sold at reasonable prices. Of the genesis of a vast cooperative network. Of the triumph of indigenous technology. Of the marketing of a farmers' organisation. And of a proven model for dairy development.PRODUCTS

A. Bread Spred

B. AMUL BUTTER: Utterly Butterly Decision

AMUL LITE: Low fat, low Cholesterol Bread Spread

B. Powder Milk

Amul spray infant milk food: Still, mother milk is best for baby.

C. fresh milkAmul fresh milk: This is the most hygienic milk available in the market.Pasteurized in state-of-the-art processing plants and pouch-packed for convenience

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Amul Gold Milk:

Amul Tazza Double Milk:

Amul fresh cream:

Amul cool chocolate milk

D.Cheese

Amul pasteurized processed cheese: 100% Vegetarian Cheese made from

microbialrennet

Amul cheese spreads: Tasty Cheese Spreads in 3 great flavours

Amul Pizza Mozzarella Cheese: Pizza cheese...makes great tasting pizzas

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Guuda Cheese:

E . Desserts Choclates

Amul Ice CreamsPremium Ice Cream made in various varieties and flavours with dry fruits and nuts

F . Health Drink:

Nutramul: Malted Milk Food made from malt extract has the highest protein

content among all the brown beverage powders sold in India.

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MARKETING STRATEGIES

DIVISION OF MARKETING DEPT

HEAD OFFICE

ZONAL OFFICE

DEPOT OFFICE

CARRYING & FORWARDING AGENTS (C & F)

WHOLESALE DEALERS

RETAILERS

CONSUMERS

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FINANCIAL PERORMANCEANALYSIS OF AMUL

Financial Performance Analysis can be carried out by using various analytical tools like trend analysis, horizontal analysis, cash flow statement analysis, & various important ratios. Ratios have evolved substantially over a period of time. have studied the effect of different variable of liquidity & profitability of AMUL for last 10 years from 2001-02 to 2010-11 by using Pearson’s correlation for analysis. The result shows that there is moderate negative correlation between liquidity & profitability. The purpose of this study is to familiarize the readers with various analytical tools and their usefulness in the financial analysis of an organization. The idea of this project is to know the short term as well as long term financial position of AMUL.

AMUL is Asia’s no. 1 and world’s second number co-operative dairy. It has large market and dairy network in every state of India and across the India, like central Asian countries, Bangladesh, Thailand, Indonesia, Malaysia, Singapore, etc. It was started with 250 liters of milk and 2 societies and now, it produces 10 lakhs litters milk per day and has 1113 societies and more than 6 lakes farmer members. It produces milk and milk products. The main motto 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 consumers at minimum cost. The goal of AMUL is to provide maximum profit in terms of money to the farmers. Vision of AMUL is to provide and vanish the problems of farmers (milk producers). The AMUL apparition was to run the organization with the co-operation of four main parties, the farmers, the representatives, the marketers, and the consumers.

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Financial Performance on the basis of Profitability & Liquidity Analysis

Relationship Between Current Ratio & Operating Profit Ratio

Years CR OPR  2001-02 2.702 88.38  2002-03 3.24 89.342  2003-04 2.376 90.46  2004-05 2.344 90.199  2005-06 2.136 91.035  2006-07 1.738 90.957  2007-08 2.136 92.178  2008-09 1.652 91.873  2009-10 1.394 92.58  2010-11 1.431 947.906  

r -0.415Relationship Between Current Ratio & Net Profit Ratio

Years CR NPR  2001-02 2.702 0.314  2002-03 3.24 0.405  2003-04 2.376 0.467  2004-05 2.344 0.523  2005-06 2.136 0.461  2006-07 1.738 0.504  2007-08 2.136 0.421  2008-09 1.652 0.419  2009-10 1.394 0.436  2010-11 1.431 0.44  

r -0.323

PRODUCTS IMPORTED BY AMUL

skimmed milk powder Butter-oil

All the unions of the GCMMF have further demanded to restore the original rate of 15 per cent import duty on tariff rate quota (TRQ) of 10,000 MT on milk powder and 40 per cent duty on butter, butter-oil and ghee with immediate effect.

While GCMMF is responsible for marketing of the all the products of its 13 unions under the Amul brand, the NDDB is responsible for planning and organising programmes for the development of dairy and other agriculture and allied industries and biologicals in India.

Dairy Equipment

Can Conveyor

(Wheels)

clients can avail from there precision engineered can conveyor, which is manufactured using high grade material bases to ensure reliable performance. These are extensively used in the dairy and food industry to carry cans to desired locations. there can conveyor is capable of handling both light-heavy heavy-duty applications in best effective manner. The can conveyor offered by is available in different models, designs and can be customized as per the requirements of our esteemed clients. Further, this can conveyor is manually filled by using from receipt dock to the milk weighing machine. 

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Crate Washer (Rubber)

They offer crate washer which is conveyed automatically by conveyor chain fitted on stainless steel fabricated frame. These are available with a separate control panel and are attached with adjustable legs that help in leveling without fixing to the floor. there crate washer passes through a specially designed high pressure water jet nozzles that has accurate spray angle for washing. A high pressure pump is driven through electric motor & mounted close to conveyor, which helps in generating high pressure. Further, the speed of conveyor can be adjusted as per requirements to get superior washing effect. The entire washing process is performed inside the stainless steel canopy that prevents spillage of water. These are attached with enclosure that provides an easy a provision to open the door for maintenance purpose. All waste water is collected sump that can be easily connected to sewage system or can be reused by passing through the special filtration system.

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PROBLEM FACED DURING IMPORT Oil

Once again the year witnessed large-scale import of edible oils from germany, adversely affecting the interests of our farmer producers. Imports dampened domestic oilseed prices forcing our farmers to shift from oilseed production. Despite these unstable conditions, Dhara sales maintained the previous year's volume, confirming consumer faith in its purity and value for money. With the recent increase in duty on imported oil, the domestic edible oil market scenario is showing an upward trend and they expect that Dhara as a market leader, will benefit with significant volume growth during the coming year.

At the same time as theye are encouraged by recent steps, they would like to draw Government's attention to the importance of addressing aspects of the national Agricultural policy. It is paradoxical that while liberal imports of edible oils adversely affected domestic oilseeds production resulting in large outflows of foreign exchange, price supports for cereal production have resulted in accumulation of vast surpluses, forcing the

Government to export wheat and rice at subsidized prices. The need of the day is a sound agricultural policy framework that reflects - but doesn't cave in to - international trade regimes.

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DOCUMENTATION DURING IMPORT

Bill of Lading

ARRIVAL DATE

2013-01-22

HS CODE

68042290

QUANTITY / UNIT

1 / NOS

CONSIGNEE

AMUL INDUSTRIES PVT. LTD.2,AJI INDUSTRIAL ESTATE, PLOT NO.332-333, RAJKOT/GUJARAT 360003

ORIGIN

JAPAN

DESTINATION

INDIA

DECLARATION OF GOODS

TDD00003 GRINDING WHEEL ,BELTS X14296 APS/Z W20 U15 X 1 BL20 L26 T33

SINGNATURE:

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ABOUT EXPORT IN USA

USA

With Amul in your kitchen, it will now be like coming back home for breakfast, lunch and dinner! Amul takes pride in making the following its products available in United States of America. Amul exports in gulf countries ,USA and Singapore These products are imported and distributed in USA by:

RAMONIINC.,17W220,22NDSTREETSUITE220OAKBROOKTERRACEIL60181,USAEmail: pjoshi@ramoniusa.com

However, if there is a need to export in order to attain equilibrium in the domestic market, it would be under Amul brand in consumer packs only and that too to cater to the ‘Taste of India’.However, as you are aware, today Amul is the largest exporter of dairy products in the country. Amul is available today in over 40 countries of the world. We are exporting a wide variety of products. The major markets are the US, West Indies, countries in Africa, the Gulf region, and our neighbours, Singapore, The Philippines, Thailand, Japan and China.They have demonstrated that if a level playing field is granted, Indian dairy products are successful in the global market. Growth in consumer pack exports has been creditable and we have consolidated our exports.

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These products are imported and distributed in USA by

RAMONIINC.,17W220,22NDSTREETSUITE220OAKBROOKTERRACEIL60181,USAEmail: pjoshi@ramoniusa.com

However, if there is a need to export in order to attain equilibrium in the domestic market, it would be under Amul brand in consumer packs only and that too to cater to the ‘Taste of India’.However, as you are aware, today Amul is the largest exporter of dairy products in the country. Amul is available today in over 40 countries of the world. We are exporting a wide variety of products. The major markets are the US, West Indies, countries in Africa, the Gulf region, and our Saarc neighbours, Singapore, The Philippines, Thailand, Japan and China.We have demonstrated that if a level playing field is granted, Indian dairy products are successful in the global market. Growth in consumer pack exports has been creditable and we have consolidated our exports.

The Federation's export turnover registered a 93 percent increase, over the previous year. Apart from our regular exports of branded, consumer-packed dairy products to the US, Persian Gulf and Far East markets, we exported large quantities of skim and full cream milk powder. Nutramul, Amulya, Mithaimate and Amul paneer were launched in the Gulf countries. New markets like Madagascar, Russia and Saudi Arabia are being developed, building a strong base for the future.

They are proud to report that, for the seventh consecutive year, your Federation has won the APEDA award for excellence in Exports. they equally proud to inform you that all our dairy plants have now received ISO 9000 and HACCP certification, helping us to obtain the required Export Inspection Agency plant certification for dairy products

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PROBLEM DURING EXPORT

ms During Export India. Any plans for that region?After Amul, the second-largest dairy company is Nandini of Karnataka. So far they e are able to set up most of there distribution networks in terms of depots and outlets in north, east and west India. Now that they are getting more milk, they will look into expanding in southern India. they are today not present in terms of fresh dairy products in south. There are very strong players in consumer dairy products in the south and that gives us healthy competition

The likes of Nestle and Cadbury are market leaders in chocolates. Where does Amul stand?amul entered the chocolates industry 35 to 40 years ago to give cocoa growers in Kerala remunerative prices. They have put a small plant that runs on 100 per cent capacity. But we have to see our priorities. they have to think whether we should invest in brand building for our dairy products or for chocolates. Nevertheless, they are investing in chocolates. We are not a chocolate company, we are a dairy company.

There are so many income channels available for farmers. Is it a challenge for Amul to keep farmers interested in milk production?It is a serious challenge for us to keep the next generation interested in dairy farming. This is also one of the reasons for offering competitive procurement prices to farmers. The young generation is not interested in continuing dairy farming the way his or her father was. The young generation want dairy farming to be a very dependable source of income, and not a second option to agriculture. For this, we are looking at commercialising dairy farming by helping them maintain 25 to 30 strong cattle, buy modern milking machines and follow best practices for higher productivity

Nestle is setting up a plant in Gujarat; does that pose a threat to Amul?For Amul, competition is not a new thing; neither on the procurement side nor on the market side. Be it in ice cream, baby food, dairy whitener, condensed milk or cheese, we have been fighting it out with big multinationals. On the procurement side, Gujarat farmers own the production, processing and marketing activities and hence they get the maximum out of a consumer rupee. In Gujarat, a farmer gets Rs 450 per kg of fat, while a farmer in states like Punjab gets Rs 400-410 per kg of fat.

Amul faces competition across all product categories. We are the leader in packed liquid milk in the country but state-wise we have competition from local co-operatives in milk. In baby food or dairy whitener, we have competition from

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multinationals like Nestle. In ice cream and cheese, again, we have competition. But more than the national players, the competition we find tough to fight is from regional dairy players. Even in the near future, we don’t see any private dairy company fighting out with us nationally in a big way. This is also because the easier thing is to set up a processing plant. If you have a deep pocket, you can set up 10 to 15 plants. After that comes building the brand. Even that can be built if you have enough money. But the most difficult thing to do is to have a full-fledged procurement system. Creating a network of milk procurement from 3.2 million farmers, that too twice a day, like Amul does, will take decades for a new player. Throughout the year, they will have to give good prices and gain farmers’ confidence.

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DOCUMENTATION DURING EXPORT

(SPECIMEN COPY)

(On the letter head of the Carrier Firm)Ref No: Date:Dy. Manager (Marketing)Gujarat Co-operative MilkMarketing Federation LtdPost Box No. 10Anand- 388 001

Sub : Freight Rates Quotation/s : Transport Contract: 2012-2013for Transportation of Dairy Products

Dear Sir,

1. This has reference to your letter2. No._____________________________

dated__________________________ inviting quotations of freight rates for the period from 01.11.2012 to 31.10.2013. We enclose herewith our quotation for transportation of Dairy Products Ex: Anand/Baroda loading points to your depot destinations as mentioned in enclosed Annexures provided by you.

3. We also enclose herewith “Terms and Conditions of Transport4. Contract 2012-2013”duly signed in token of our acceptance of the Terms

and Conditions stated therein.

3. As regards the Security Deposit: * (a) Our Security Deposit of Rs. 25,000/- is already with you.

Thanking you,Yours faithfully,Signature __________________Name ___________________Rubber Stamp Of the Firm __________________

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GUJARAT COOPERATIVE MILK MARKETING FEDERATION LTD., ANANDData Sheet for Registration of Existing / New Transport Carriers

1 Name of the Carrier Firm : _______________________________________2 Head Office Address : _______________________________________________________________________________________________________________________3 Telephone/Mobile/Fax Nos/Email Address Tel. No.__________________________________(Give STD Codes, wherever applicable) Mobile __________________________________Fax No. __________________________________Email Address _____________________________4 Year of Establishment : ________________________________________5 Composition of the Firm Sole Proprietor /Partnership/Private Ltd Co/Limited etc :________________________________________6 Name of Principal Owners/Partners : 1. ______________________________________2. ______________________________________3. ______________________________________7 Name, Designation and Address of the : Name : _________________________________Principal Office/Owner, with whom to : Designation: _____________________________Communicate in this regard : Tel. Nos(Off):_____________________________(Res): ___________________________________Fax No.:__________________________________Email Address : ___________________________8 Number of other offices in the Company : ________________________________(if any), attach a separate List of Offices In all Major Towns9 Address of the Office, nearest to Anand : _______________________________________(Gujarat), if any ________________________________________Tel. Nos.:_________________________________Mobile : _________________________________Fax No. __________________________________10 Details of Open Trucks : Please give details of Owned Open Trucks Only.

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(Attach a separate sheet, if necessary)

Sr.No. Make Model(Years) Capacity (MTs) Registration Nos.1-2-311 Details of Containerised Trucks : Please give details of Owned ContainerisedTrucks Only.(Attach a separate sheet, if necessary)Sr.No. Make Model(Years) Capacity (MTs) Registration Nos.1- 2-3-4-5-612 Details of Refrigerated Vans : Please give details of Owned Refrigerated VansOnly.(Attach a separate sheet, if necessary)Sr.No. Make Model(Years) Capacity (MTs) Registration Nos.1-2-3-4-5-6

13 Name & Address of Principal Banker ______________________________________

14 Are you an approved Carrier by Indian : Yes / NoBank’s Association, if yes Attach acopy of their approval letter.

15 Name of prominent Companies, whose : Attach a separate list giving full detailsProducts are transported by your Firm onRegular Baise (Please give latest detailsOnly and not the past details)

16 Total Freight Billing in Last Four Years : 2008-09 Rs. In Lacs: ____________________(April – March) : 2009-10 Rs. In Lacs: ____________________:2010-11 Rs. In Lacs: ____________________:2011-12 Rs. In Lacs: ____________________

17 Are you willing to undertake transportation : Yes/Noall over India from Gujarat

18 In case you are appointed as approved : Yes/Nocarrier, are you willing to open branch/depute your representative at Anand/Vallabh Vidyanagar

19 IBA Approval Code (Status) : Yes/No

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20 Permanent Account Number (PAN) : _______________________________________We declare that the information contained in this Data-Sheet is correct and truly stated.Rubber Stamp Name :__________________________Seal of the FirmDesignation :___________________________

Note : 1. Wherever the space is not sufficient, please provide information in separate sheet.2. Please fill up the data-sheet completely. This is to get detailed information aboutyour firm. Submission of this information does not guarantee Registration asapproved carrier.

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ANNEXURE – ATransportation in Open TrucksGUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD., ANANDFreight Rate Quotation for Transportation of Dairy Products inOpen Trucks for the Period November 01, 2012 to October 31, 2013.Name of the Carrier Firm : __________________________________Sr.No .Destinations MaxTransitDays* Ex-Anand/Baroda Rs.Qtl. Sr.No.Destinations Max.TransitDays*Ex-Anand/BarodaRs.Qtl.1 Delhi 4 22 Patna 72 Kundli 4 23 Ranchi 73 Chandigarh 7 24 Cuttack 74 Ludhiana 7 25 Sambalpur 65 Dehradun 6 26 Guwahati 156 Parwanoo 7 27 Shillong 187 Kanpur 6 28 Dimapur 188 Ghaziabad 5 29 Silchar 189 Varanasi 8 30 Agartala 1810 Jammu 7 31 Mumbai 411 Chennai 7 32 Pune 512 Coimbatore 7 33 Goa 713 Bangalore 6 34 Nagpur 614 Hubli 5 35 Thane 415 Hyderabad 5 36 Ahmedabad 116 Vizag 7 37 Vaghasi(Anand) 117 Cochin 7 38 Indore 218 Kozhikode 7 39 Jabalpur 419 Kolkata/Howrah 10 40 Raipur 520 Asansol 10 41 Jaipur 221 Siliguri 1242 Udaipur 2

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TERMS AND CONDITIONS OF TRANSPORT CONTRACT : 2012-2013(FOR HCVs)GENERAL:The Transport Carrier shall provide transportation service to at least 15 destinations.

TRUCKS/OWNERSHIP/GROSS WEIGHT:

1.0.1 The Transport Carrier shall transport the goods in their own motor trucks by road directly to the destination and the driver of the truck must hold a valid driving license and all the necessary documents of permit/traffic/ownership/purchase etc. The transportation of Refrigerated Dairy Products (Butter, Shrikhand, Cheese, Chocolates etc.) is permitted only by carrier’s own Refrigerated Vans, having minimum 4.5 in chinsulation.

2.0.1 The responsibility of reporting to the point of origin for loading lies with carrier. The transport carrier shall make available the Vehicle within 48 hours on our demand. In case of delay in placing the vehicles beyond the time limit of 48 hours, we reserve the right to recover appropriate penalty depending upon the extent of delay.

2.0.2. In case of complete inability on carrier’s part to provide the vehicle as on demand within the specified time of 48 hours, we reserve the right to contact an alternate transport carrier to lift the consignment. The difference between freight charged by the latter and our approved rate will be recovered from the carriers.

3.0.1 The minimum gross load per consignment on FTL basis under this contract shall be considered as 9.0 MTs for Open/Refrigerated Van and 10 MTs for Containerized Van. However, the carriers will be paid freight for the actual gross weight or for minimum9.0 MTs, whichever is higher.3.0.2 In case of exception, where the carrying capacity of the vehicle is more than FTL of9.0 MTs and Federation has agreed to pay freight charges for minimum load otherthan FTL 9.0 MTs as above, the carrier will be paid the freight charges based on the minimum gross quantity load as indicated in DIL/DODC issued by GCMMF Ltd ,Head Office in case of Containers/Refrigerated Van Only.

3.0.3 If a carrier request for gross load less than FTL under this contract i.e. 9.0 MTs the

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carrier will be paid for actual gross load carried per consignment and not forguaranted FTL 9.0 MTs.

PACKING/LOADING-UNLOADING:

5.0.1 The Federation will deliver goods mainly packed in outer cardboard cases or shrinkwrapped trays, or whichever is convenient to the Federation.5.0.2 The loading of the HCVs at our loading points will be arranged by consignor and theunloading at the destination will be arranged by the Consignee.5.0.3 If the unloading of the consignment at destination is done by the carrier, in case ofrefusal or request by the consignee, the transport carrier will arrange for the unloadingand include unloading charges separately in their freight bill, alongwith propersupporting of having paid the unloading charges.5.0.4 For all practical purposes of this agreement, loading points means our MemberDairies in Gujarat and/or our Depot at Daman, and unloading points can be FederationDepots/Buyer/Wholesale Dealers.

CONSIGNMENT NOTE :6.0.1 The transport carrier shall furnish consignee and consignor copies of the consignmentnote to the Federation and one copy to the loading point/s on the date of dispatch.Acknowledgment of the receipt of goods by representative of the transport carrierupon delivery at the loading point/s shall be considered as kachha receipt of theconsignment note and the transport carrier will be responsible for the goods ascarriers.

DELIVERY:7.0.1 The transport carrier shall deliver the goods at the destinations in safe and sound condition as handed over to the carrier by the Federation. The transport

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carrier must use tarpaulin and/or other suitable cover to protect the consignment Sun/rain/water/dust etc. and the same should be maintained throughout the transit.7.0.2 The transport carrier will arrange for door delivery of consignment to the consignee at the destination.7.0.3 When a consignment is lost in transit and/or not delivered at the destination within are a sonable period of time, the responsibility of loss of such consignment would entirely lie on the transport carrier. The value of such loss to the Federation shall been tirely payable by the transport carrier and shall be recovered from the carrier,irrespective of whether the Federation lodges claim with the underwriters.

PRECAUTIONS AGAINST TRANSIT DAMAGES:8.0.1 The transport carrier should use iron angles/padding material etc. to tie the ropes to avoid any damage to the Consignment. In case of rope cut damages due to non-use of iron angles/padding materials etc., a penalty @ Rs. 100 per consignment will be recovered. Problem Facing During Transportation & Documentation

9.0.1 When a consignment is lost in transit and/or not delivered at the destination within are as onable period of time, the responsibility of loss of such consignment would entirely lie on the transport carrier. The Value of such loss to the Federation shall been tirely recoverable from the transport carrier and shall be recovered from the carrier,I respective of whether or not the Federation has insured the consignments against such loss.9.0.2 It would be entirely at the Federation’s discretion whether to file a claim on insurance company for such loss. In other words, carriers would be fully responsible to make good such losses to the Federation.

TRANSSHIPMENT OF CONSIGNMENT/TRANSIT PERIOD/DELAY PENALTY:10.0.1 The transport carrier shall transport all consignments by direct trucks only to all thedestinations, except with our written permission for transshipment for eachconsignment separately.10.0.2 In case a consignment is transshipped on the way without our permission, a penalty@ Rs. 10,000/- per such consignment will be levied.10.0.3 However, in case of transshipped consignment/s, if permitted, a grace period of 7 days for Kolkatta/Asansol/Guwahati and 3 days for other destinations will be allowed in addition to permissible transit period for each destination for direct consignments, subject to clause 10.1.2.10.0.4 For the consignments

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dispatched Ex:Rajkot or Bhavnagar, one additional day is allowed in specified transit period, subject to clause .

10.0.5 Under normal conditions, for any delay beyond specified maximum transit time a delay penalty as given in 10.0.9 shall be levied.10.0.6 All consignments destinedforNorthEasternRegiondestinations,VIZ.Shillong/Imphal/Agartala/Dimapur/Aizwal/Silchar/Jorhat one transshipment would be allowed at Guwahati for which no written permission will be necessary, and no deduction for transshipment will also be made.10.0.7 For other destinations, where transshipment is allowed by Federation, (due to unforeseen reasons other than accidents and that too only in exceptional circumstances) a deduction of Rs. 500/- per such consignment shall be made from the freight bill of the carrier, subject to clause 10.0.8.10.0.8 In case of accident during transit and the consignment become unfit for onward transportation, goods should be transshipped to another truck, as early as possible and transported to consignee destination. In such cases transshipment penalty & late delivery penalty as indicated in Clause No. 10.0.2/10.0.7 above will not be applicable.10.0.9 The Federation shall charge a delay penalty @ Rs. 500/- per day of delay exceeding the transit period for direct dispatches fixed by the Federation including grace period allowed under clause 10.0.3/10.0.5 and subject to clause 10.0.8 as above. Penalty at above rates shall be deducted from freight bills of the carrier for that consignment, while making payment.10.1.1 In cases of accidents or breakdowns, or a consignment is lost in transit and subsequently traced, or a consignment is seized by any Government Authority and released subsequently, the delay penalty under Clause no. 10.0.9 above will not belevied. However, the carrier will be required to submit a sufficient documentary evidence of happening of any of such event during transit of the consignment.

10.1.2 The transit period fixed by the Federation is not the actual transit period, but is the maximum Transit Days made available for the purpose of delivery of the consignment to defer delay penalty. However, delays due to disruption in road conditions due to floods, riots, bandh, civil disturbances etc. shall be considered, while calculating delay penalty.10.1.3 While calculating transit period, the date of loading as well as the date of unloading will be excluded.

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GOODS DESPATCHED IN REFRIGERATED VANS:

Refrigerated Vehicles having following conditions is preferred.a) Vehicle must have Carrier or The rmoking brand refrigeration plant with liquid PUF injected insulation of the container.b) This refrigeration plant must be mounted on the vehicle chassis not older than 5 years.c) All refrigerated vehicles must have data lodger in working condition.11.0.1 In case of dispatch of Refrigerated Dairy Products (Butter, Shrikhand, Cheese,Chocolate etc.) by Refrigerated Vans, the transport carrier shall be responsible for maintaining temperature as under throughout the transit upto the destination. Refrigerated Vans : Between 0 to +4 degree C for Dairy ProductsFor this purpose, the transport carrier may keep the refrigeration plant runningthroughout during the transit to maintain the temperature within the stipulated limits In addition they shall attach Data Lodger to record the temperature through out the journey of the vehicle & shall submit the same along with submission of the bill.

11.0.2 All refrigerated vehicles must have data lodger in working condition. It is required by the carrier to arrange for the print out of the data from the data lodger as and when required by the depot / authorized person of the GCMMF Ltd for the verification of the temperature maintained during the journey of the respective DIL issued.Failing to provide the print out of the data lodger, the carrier shall be responsible for any loss/ damages happened to the refrigerated or frozen products.11.0.3 The transport carrier shall also keep the Refrigerated Van properly insulated with minimum 4.5 to 6.0 inch of insulation with proper rubber gasket at the doors and will provide a wooden batten platform in the Refrigerated Van for air rotation, to maintain inside product temperature as per clause no. 11.0.1 for the product loaded.

11.0.4 However, if the product temperature of refrigerated van at the time of unloading is more that +7 degree C, Carrier’s freight bill will be settled with 15% reduction of the total chargeable freight. The decision of Depot In-charge in this regard shall be final and binding to the transport carrier.

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RESPONSIBILITY: FOR STORAGE/DAMAGE/NON-LIFTING OF CONSIGNMENTTRANSSHIPMENT/OTHER LOAD13.0.1 While dispatching Dairy Products through Open Trucks / Container / Refrigerated /Insulated Van, the loading at our loading points is arranged by us keeping in mind to safeguard goods against transit damages. In case of any transshipment the carrier should strictly adhere to the same pattern of loading and stacking as was done at the time of loading at the Member .

13.0.2 The transport carrier shall carry the goods with utmost care and will ensure that no breakage/shortage/leakage occurs during transit to the consignment/s given.13.0.3 The transport carriers will use the vehicle exclusively for carrying the Federation’s goods and that in no case the materials belonging to other parties shall be carried along with our goods.

13.0.4 If anywhere during transit or at the consignee destination it is observed or established that some other goods were transported along with our consignment, 25% of the freight amount would be deducted by our Consignee depot, such acts may even invite termination of the contract. In addition, the amount of transit loss, if found any in the consignments, would also be recovered from the payment to be made to carrier against pending freight bills or freight bills of future period.

13.0.5 Since the Federation gives FTL quantity and or pays freight to carrier for guaranted load on FTL basis as per this contract, the carrier should not club more than on econsignment of our own products in a single vehicle. If anywhere during transit or at the consignee destination it is observed or established about having done such clubbing by the carrier, 25% of the total freight payable amount would be deducted by our consignee depot. In addition, the amount of transit loss, if found any in the consignment/s, would also be recovered from the payment to be made to carrier against pending freight bills or freight bills of future period.Carrying Capacity

(ii) 14 MT & More 2200.00 -Carrying Capacity(B) REFRIGERATED VAN

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(i) Less than 14 MT - 600.00Carrying Capacity(ii) 14 MT & More - 1000.00Carrying Capacitytransit insurance claim limits given as above.

DAMAGES TO LOADING POINT PROPERTY/SHORTAGE IN TRANSIT:14.0.1 The transport carrier shall be held responsible for any damages caused to the goods bytheir representative and/or any damages done to the property of Dairy Plants/DepotGodowns by their vehicles. Such losses will be paid by the carrier in cash/draftdirectly to the concerned person at the above loading/unloading locations failingwhich will be recovered from carrier’s payable freight bills.

14.0.2 The transport carriers shall be held responsible for short delivery, from packages found in open condition and also the shortages in intact cartons, if it is established that the transport carrier or his representative has tampered with the sealing of the carton.The loss on this account will be recovered from the freight bill of the carrier. The transport carrier is fully responsible for transportation of the goods in good condition up to the consignee destination. In case of any shortages during transit or non delivery of the entire consignment booked by the transport carrier for transportation to the consignee destination, the Federation reserved the right to recover the cost of goods at full value from the transport carrier.

DOCUMENTATION: SHORTAGE/DAMAGES/ACCIDENT:15.0.1 The transport carrier shall comply with all the requirements that are requested by the consignee such as shortage/damage certificates and also comply with other formalities necessary for filing claims for transit loss on insurance company under transit insurance policy, such as acknowledgement of claim notice, providing FIR,Photographs, police report etc.15.0.2 In cases of shortages, breakages, damages or goods having been delivered in unsound conditions, transport carrier’s representative present at the time of delivery of consignment will have to first acknowledge such shortages and damages by signingthe “Delivery Examination Report” prepared at the time of taking delivery of theconsignment.15.0.3 A claim/transit loss notice covering the entire quantity and value of

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ACCIDENT/HEAVY DAMAGES ENROUTE:16.0.1 In case of any accident to vehicles carrying our consignment, the transport carrier should immediately report the matter to the nearest Police Station, simultaneously informing the marketing (Despatch) Deptt. at Federation HO and concerned consign need epot for the nature and extent of damages. The original-copies of Police Panchnama,FIR and spot photographs of accident truck should be forwarded by transport carrier to the consignee depot.16.0.2 In case of any Shortage / Breakdown of the vehicle or refrigerated plant/ Accident to vehicles carrying our consignment enroute, the transport carrier should also inform to the Commercial Department, at Federation HO in details for conducting the spot survey of the loss by the underwriter of the Transit Insurance policy obtained by us.The decision of conducting the Spot Survey of the loss shall be taken by us upon mutual understanding with the underwriter of the Transit Insurance Policy, looking to the situation.

Failing to report immediately for any Shortage / Breakdown of the vehicle orrefrigerated plant/ Accident to vehicles carrying our consignment enroute forconducting the spot survey of the loss, the transport carrier shall be responsiblefor the entire loss.16.0.3 Such documents will be made available preferably at the time of delivery of the consignment at the consignee depot or within 15 days from the date of accident.16.0.4 Freight payable on such consignments will not be paid unless all the correspondingclaims are not settled by the underwriter.Page 9 of 1316.0.5 In case carrier fails to submit all the required documents within the time limitspecified under clause no. 16.0.3 above for lodging the claim on underwriters, theentire loss as assessed by the surveyor and subsequent expenses thereof shall berecovered from freight bill/s of the carrier.16.0.6 In case of consignments involving heavy damages (i.e. exceeding Rs. 600/-

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ROAD PERMITS/SALES TAX PERMITS/OCTROI:17.0.1 Whenever any road permit or any similar permits are required to be carried while transporting our goods in any State, the transport carrier is responsible to collect the same from our office and carry such documents, and any loss to Federation arising on account of their failure to do so will be recovered from the transport carrier.17.0.2 The Transport carrier will comply with Sales Tax, Octroi and all laws, regulations and formalities related to transport of goods by Road/Rail as the case may be. The carrier will be fully responsible for loss caused to the Federation due to failure on the part of carrier to comply with such requirements. In case of any violation of statutory rules by the transport carrier, the Carrier will be responsible for the consequences for such violations.17.0.3 The transport carrier shall make arrangement for payment of Octroi duty, if required ,as per Municipality rules and the Federation/Consignee will reimburse the same to the transport carrier on presentation of Octroi Money Receipt and other relevant.

BANK GUARANTEE/SECURITY DEPOSIT:18.0.1 All approved transport carriers, to whom the transport contract is awarded, are required to furnish a Bank Guarantee of Rs. 10,00,000/- (Rupees Ten Lac only) issued by any nationalised bank in favour of GCMMF Ltd., Anand. The Bank Guarantee(BG) will be on the approved format of the Federation, and to be on acceptance of the contract for the due performance of the terms and conditions of the contract during the currency of contract. If the transporter fails to either furnish the Bank Guarantee or fails to renew the Bank Guarantee prior to one month of the expiry of the existing Bank Guarantee, notwithstanding any of the provision in this contract, the Federation will be at liberty to terminate the contract without assigning any other reason.18.0.2 During the tenure of this contract, due to any reason, if any transport carrier fails to perform transportation services as agreed upon and discontinue working as per the terms & conditions of contract, this Bank Guarantee shall be forfeited, suspended their pending freight bill till end of contract and full amount shall be recovered penalty amount as per clause No. 19.0.4 by GCMMF Ltd., Anand.18.0.3 In addition to the above, transport carrier is also required to pay Rs.25,000/- (Rupees Five Thousand only) by Demand Draft in favour of Gujarat Co-operativeMilk Marketing Federation Limited, Anand as Interest Free Security Deposit. In the event, the contract is terminated by either party, for any reason whatsoever; the

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Federation shall forfeit the said Security Deposit amount of Rs. 25,000.00.

PAYMENT OF FREIGHT BILLS:19.0.1 The transport carrier shall submit fortnightly freight bills in duplicate to the consignee depot, on the 1st and 16th of every month for the consignments delivered at the destinations as per the rates approved by Federation alongwith a copy of Consignment Note under which the subject consignment was transported.19.0.2 The consignee depot thereafter shall make payment of these bills by Account Payee Cheque/Demand Draft within 30 days from date of receipt of consignment or the freight bill, whichever is later.19.0.3 If diesel prices undergo change (upward or downward) equal to or more than Rs.1 per litre as announced by GOI during tenure of this contract, then the destination wise approved rates shall be adjusted downward or upward by the savings or additional burden in diesel cost due to such diesel price changes.19.0.4 During the tenure of this contract, any transport carrier denies to lift our goods at our approved rates, GCMMF would immediately arrange vehicle from the open market and the difference would be recovered from the transporter’s pending freight bills. They also keep our right reserve to withhold carrier’s freight bills till end of the contract.19.0.5 Detention will be paid @ Rs. 500 per day after 48 hours of reporting of the vehicle excluding reporting and unloading days. To calculate applicable detention, GCMMF depot Godown Keeper’s arrival and unloading time reporting will be treated as final, therefore it is primary responsibility of transport carrier’s representative to get these timings noted on arrival Report.

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FREIGHT RATES FOR NEW CENTRE/S:22.0.2 In any new consignee destination/s is/are opened during currency of this contract, the Federation reserves the right to decide about the freight rates on distance basis and the existing approved freight rates for other destination in that State/Union Territory.

Signature ofAuthorisedSignatory oftransport carrier Firm : ____________________Name of theAuthorised signatory : _____________________ Place : AnandDesignation : _____________________ Date : / /2012Rubber Stampof the transportCarrier Firm : _____________________E:/C:dir:QTN12-13/tms12-13Effect of dollar price

“FDI in retail is definitely not going to benefit the farmers,” said Mr R.S.Sodhi, Managing Director, Gujarat Co-operative Milk Marketing Federation Ltd, which owns the Amul brand.

Farmers get the least returns from the modern trade and the “so called efficiency” benefits only the large retailers as they constantly drive down the prices, Mr Sodhi said.

Citing the International Farm Comparison Network (IFCN) data, Mr Sodhi said milk producers in the US got only 38 per cent share of the consumer's dollar spent on milk, while the rest was earned by the processor and retailer. In the United Kingdom, the milk producers got only 36 per cent.

However, in India, the milk producer gets more than 70 per cent of the consumer's rupee on an average. Moreover, the milk producer affiliated to co-operatives get more than 80 per cent share of the consumer's rupee, Mr Sodhi said.

In the US, the farmer's share in the consumer's price has declined from 52 per cent in 1996 to 38 per cent in 2009, while in the UK it has declined from 56 per cent in 1996 to 38 per cent in 2009. “This decline clearly demonstrates that the milk producers suffer when the share of organised retail increases,” Mr Sodhi said.

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FURURE PLANNING OF AMUL

Amul plans to open 10 quick service restaurants

it shall be opening ten quick service restaurants (QSRs) across the country by the end of this fiscal.

“We are opening two Amul QSRs one each in Ahmedabad and Banagalore city today. The target is to open 10 such outlets by the end of this fiscal year,” the Gujarat Co-operative Milk Marketing Federation (GCMMF) Managing Director, Mr R.S. Sodhi, said.e

“Two federation run Amul QSRs are already operating in Ahmedabad offering a wide range of delectables like sandwiches, dosa, burgers, pav bhaji....They also house a cafe selling our wide range of dairy products,” he said.

“But all the new QSRs to be opened shall be on franchisee model now,” Mr Sodhi said.

“The investment of franchisee shall be between Rs 15-20 lakh on one outlet and Amul shall be taking care of branding, marketing and providing them with technical know how,” he said.

GCMMF markets its dairy products under the brand Amul. It aims to increase the network of its retail Amul preferred outlets pan-India from the existing around 6,000 to 10,000 by 2012. It total sales stood at $2.2 billion in 2010-11.

Amul to set up 9 new plants in next 4 yrs

Gujarat Cooperative Milk Marketing Federation (GCMMF), the maker of Amul dairy products, will invest Rs 3,000 crore to set up nine new plants and expand the capacity of existing facilities in the next four years."In the next four years, we are investing around Rs 3,000 crore in setting up nine new plants and the capacity of the existing 40 plants will be increased," federation's Managing Director R S Sodhi told reporters at the launch of Amul Pro, a protein-rich beverage, in Andhra Pradesh market here today.

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"We have 14.5 million litres per day capacity and it will reach to 18 million litres per day after the expansion," he added.

He said four new plants would be set up in the Saurasthra region of Gujarat. The federation will set up two plants in Delhi and one each in Maharashtra, West Bengal and Uttar Pradesh.Sodhi said they increased the milk procuring price by almost 50 per cent in the last three years to farmers in order to keep the activity lucrative.

He said current generation of farmers is not finding milk business as viable and the situation may lead to depend on imports like other Asian countries.

"So we thought if we do not take up this seriously, India will become like other Asian countries such as Pakistan which depend on import of milk. We took a lead and increased price to farmer," he explained.

According to Sodhi, the GCMMF currently pays including bonus Rs 34.40 for buffalo milk and Rs 22.50 for cow milk.

Replying to a query on exports to European Union, Sodhi said conditions such as using machines for milking is deterrent for exports. "In India you cannot get milk with milking machine... It is impossible."

He said GCMMF expects to achieve Rs 30,000 crore turnover by 2020.

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ACHIVEMENT BY AMUL

CONCLUSION

The GCMMF is the largest food products marketing organisation of India. It is the apex organisation of the Dairy Cooperatives of Gujarat. Over the last five and a half decades, Dairy Cooperatives in Gujarat have created an economic network that links more than 3.1 million village milk producers with millions of consumers in India. The cooperatives collect on an average 9.4million litres of milk per day from their producer members, more than 70% of whom are small, marginal farmers and landless labourers and include a sizeable population of tribal folk and people belonging to the scheduled castes.The turnover of GCMMF (AMUL) during 2010–11 was  97.74 billion(US$1.6 billion). It markets the products, produced by the district milk unions in 30 dairy plants. The farmers of Gujarat own the largest state of the art dairy plant in Asia – Mother Dairy, Gandhinagar, Gujarat – which can handle 3.0 million litres of milk per day and process 160 MTs of milk powder daily

Income of the people decide the purchasing power the high income prefers to purchase product with the quality ,freshness, thickness, ect & position themselves in the minds of customer with required quality and quality milk .

I like to use all product of amul.because of its taste and quality.The way they are providing services are amazing quality & purity of product is very nice & 90% of Indian people are preferring amul products only.

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Biblographi

www.amul.com www.ecomomictimes,comwww.foreign-trade.com

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