Project report. amul

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Transcript of Project report. amul


Submitted by: Ashutosh Kumar PGDM (2013-15) Roll - 43


I Ashutosh Kumar , do hereby certify that the Project Report entitled Promotion & Distribution of Amul Ice cream , Submitted in requirement of fulfilment of Summer Internship. It is an authentic record of my own work under the guidance of Mr. Anand Rai faculty of JRE School of Management, Greater Noida.


I take this opportunity to express my profound gratitude and deep regards to my mentor Mr. Anand Rai Sir for his exemplary guidance, monitoring and constant encouragement throughout the Summer Internship.I would also like to express a deep sense of gratitude to Mr. Abhishek Sharma for allowing me as Management Trainee in AMUL ( Gujarat Co-Operative Milk Marketing Federation LTD.). & Awesh sir for his cordial support, valuable information and guidance, which helped me in completing this internship through various stages.I would like to specially thank all the various distributors and retailers who spared some time from their busy schedule so that i can learn the working of AMUL Ice-Cream sector.I would like to thank all my faculty members especially my dean sir Mr. Vishal Talwar and our marketing faculty Mr. Sushil pasricha who let me face the real market scenario which is completely practical and unpredictable.I am grateful for their cooperation during the period of my Internships.Lastly, I thank almighty, my parents, brother, sister and friends for their constant encouragement without which this assignment would not be possible.

Ashutosh Kumar Roll no - 43 PGDM (2013-2015)














Amul proposes to set up 7000 'Amul Parlours' across the country during the year. The parlours will be selling the entire product range of the GCMMF, in addition to the existing retail network for ice-cream, milk and other products. GCMMF had rolled out a few self-managed Amul parlours a couple of years ago."The project is extremely successful and today, we have reached 1200 new geographical markets with addition of 306 new distributors, 65 new super-stockists and 900 new sub-stockists"Amul is now planning a nationwide rollout of such outlets through franchise operators. At an average expenditure of Rs.75,000 a parlour, the projects will cost approximately Rs.52.50 Crores.Admitting that the parlours may mark Amul's foray into retailing of non-milk farm and processed food products in the future, "Marketing of fresh and frozen vegetables, fruits and fruit products goes perfectly well with Amul's strength in distribution and packaging. However, they are yet to decide on that."Meanwhile the federation has firmed up its plans for expansion of its milk product business across the globe. The federation aims to sell milk in U.S. in 2014 and also to other European countries. Amul has also set up a plant in New Jersey to manufacture Ghee and Paneer in February 2014.


To understand the supply chain network Promotion of ice-cream at Reliance store To find the problem at distributor point To maximise the sales growth at retail store To check any problem of retailers

About the company

GCMMFGujarat Cooperative Milk Marketing Federation Ltd.(GCMMF), is India's largest food product marketing organization 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.It is the Apex organization of the Dairy Cooperatives of Gujarat, popularly known as'AMUL', which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. Its success has not only been emulated in India but serves as a model for rest of the World. It is exclusive marketing organization of'Amul'and'Sagar'branded products. It operates through 53 Sales Offices and has a dealer network of 10000 dealers and 10 lakh retailers, one of the largest such networks in India. Its product range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc.GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. Many of our products are available in USA, Gulf Countries, Singapore, The Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 13 years. For the year 2009-10, GCMMF has been awarded "Golden Trophy" for its outstanding export performance and contribution in dairy products sector by APEDA. In 2013-14, GCMMF took giant strides in expanding its presence in International markets. Amuls presence on Global Dairy Trade (GDT) platform in which only the top six dairy players of the world sell their products, has earned respect and recognition across the world. By selling milk powders on GDT, GCMMF could not only realize better prices as per market demand but it also firmly established Amul in the league of top dairy players in world trade.For its consistent adherence to quality, customer focus and dependability, GCMMF has received numerous awards and accolades over the years. It received the Rajiv Gandhi National Quality Award in1999 in Best of All Category. In 2002 GCMMF bagged India's Most Respected Company Award instituted by Business World. In 2003, it was awarded the The IMC Ramkrishna Bajaj National Quality Award - 2003 for adopting noteworthy quality management practices for logistics and procurement. GCMMF is the first and only Indian organisation to win topmost International Dairy Federation Marketing Award for probiotic ice cream launch in 2007. For the innovations, GCMMF has received AIMA-RK Swamy High Performance brand award 2013 and CNN-IBN Innovating for better tomorrow award in 2014. For the tree plantation activity GCMMF has received seven consecutive Good Green Governance award from Srishti during 2007 to 2013.The Amul brand is not only a product, but also a movement. It is in one way, the representation of the economic freedom of farmers. It has given farmers the courage to dream. To hope. To live.

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 movementThe seeds of this unusual saga were sown more than 65 years back in Anand, a small town in the state of Gujarat in western India. The exploitative trade practices followed by the local trade cartel triggered off the cooperative movement. Angered by unfair and manipulative practices followed by the trade, the farmers of the district approached the great Indian patriot Sardar Vallabhbhai Patel for a solution. He advised them to get rid of middlemen and form their own co-operative, which would have procurement, processing and marketing under their control.

In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in 1946.

This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just two village dairy co-operative societies and 247 litres of milk and is today better known as Amul Dairy. Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas Patel, the founder Chairman and the committed professionalism of Dr Verghese Kurien,who was entrusted the task of running the dairy from 1950.

The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach should become the basis of a National Dairy Development policy. He understood that the success of Amul could be attributed to four important factors. The farmers owned the dairy, their elected representatives managed the village societies and the district union, they employed professionals to operate the dairy and manage its business. Most importantly, the co-operatives were sensitive to the needs of farmers and responsive to their demands.

At his instance in 1965 the National Dairy Development Board was set up with the basic objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as its Chairman and asked to replicate this model throughout the country.

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.

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. Thei