A

SYNOPSIS
On

Study on Consumer Preference

towards Milk product in the Market
with Special Reference to AMUL &
PARAG
Towards partial fulfillment of
Bachelor of Business Administration (BBA)
(Babu Banarasi Das University, Lucknow)
Guided by
Submitted by
Ms. Pooja Agarwal

Mohd. Sajid
VIth Semester
Roll No-

1110671089

Session 2013-2014

School of Management

Babu Banarasi Das University

Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India

PREFACE
Research Report Program is a part of BBA Program, which is very helpful in getting
practical knowledge in this globalization world. Now-a-days only theoretical knowledge is
not enough to success in life but most important we must have practical knowledge. With
the help of this report, I came to know how to apply theoretical knowledge in practice.

Main purpose of this training is to have awareness about industrial environment and to
know about different functions of an organization like Distribution, Production and
Marketing.

I consider myself privileged that I got a chance to work with reputed company and
can upgrade my knowledge related to practical aspect of business world which is very
helpful in my career building.

LITERATURE REVIEW

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In todays competitive world while entering in the market it is very necessary to have a
good knowledge of the potential of a particular market. The growth of a company is
invariably determined not just by its strategy, but on how it responds to the challenges it
encounters. Over the years Amul & Parag have encountered several challenges that
have come its way, with innovative responses and continuous improvement.
The branded cheese segment of the market has a very wide scope especially in India
since it is not yet tapped to its potential, as opposed to countries like France and Italy
where this particular segment is innovative and competitive. With the increasing role of
women in the society as equal as men, the demand for packaged food and ready-to-eat
food has increased. Over the medium term, global milk production is forecast to increase
in the traditional dairy exporting countries as well as in the emerging countries of South
America and Asia, particularly China and India. During the last three decades, our
nation's milk producers have transformed. Indian dairying from stagnation to world
leadership. Indias dairy market is multi-layered. The socio-economic profile of the
consumers, viz. income status, occupational position, educational level, age and region
are the major determinants of the consumption patterns of milk.
The project studies the patterns of cheese consumption in Bangalore as a comparison
between Amul and Parag competing to be the market leader. The study was conducted
amongst 50 retailers (big and small) in Lucknow..

CONTENTS

EXECUTIVE SUMMARY
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In todays competitive world while entering in the market it is very

necessary to have good knowledge of the potential of a particular
market. The growth of a company is invariably determined not just
by its strategy, but on how it responds to the challenges it
encounters. Over the decades PARAG has successfully countered
several challenges that have come its way with innovative
responses and continuous improvement, which have enabled it to
remain stable and even convert some of these challenges into
opportunities. It is the culture of endurance that has accorded
PARAG the insight and focus to deal with the current economic
environment. Drawing from its inner strength and beliefs, PARAG
responded by launching several initiatives across all its operations
in various geographies that are helping the group achieve growth
even in current times. It is also this very strategic culture that will
propel PARAG to continue on its growth trajectory in years to come.
The report provides a comprehensive insight into the company and also
about the companys SCM. This report mainly studies in detail the various
product mix strategies of the company and also focuses on the
segmentation of both company based and industry based and helps in

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analysing the companys competitive advantage and the reason behind its
success.

Chapter 1
INTRODUCTION
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INDIAN DAIRY INDUSTRY

The world's biggest dairy producing country is growing fast and
looking to become an export powerhouse despite major quality
problems...
A Note to our Readers: the following information on India's dairy sector is
reproduced from India Infoline.com. India is the world's largest milk producing
country and is growing fast, with an eye toward becoming a major dairy
exporter. This article is helpful reading for anyone interested better
understanding.
Consumer Habits and Practices
Milk has been an integral part of Indian food for centuries. The per
capita availability of milk in India has grown from 172 gm per person per day

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in 1972 to 182gm in 1992 and 203 gm in 1998-99.This is expected to

increase to 212gms for 2008. However a large part of the population cannot
afford milk. At this per capita consumption it is below the world average of
285 gm and even less than 220 gm recommended by the Nutritional Advisory
Committee of the Indian Council of Medical Research.

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Market Size and Growth

Market size for milk (sold in loose/ packaged form) is estimated to be 36mn
MT valued at Rs470bn. The market is currently growing at round 4% pa in
volume terms. The milk surplus states in India are Uttar Pradesh, Punjab,
Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and
Tamil Nadu. The manufacturing of milk products is concentrated in these milk
surplus States. The top 6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh,
Rajasthan, Tamil Nadu and Gujarat together account for 58% of national
production.

Milk production grew by a mere 1% pa between 1947 and 1970. Since the
early 70's, under Operation Flood, production growth increased significantly
averaging over 5% pa.
About 75% of milk is consumed at the household level which is not a
part of commercial dairy industry. Loose milk has a larger market in India as it
is perceived to be fresh by most consumers. In reality however, it poses a
higher risk of adulteration and contamination.
The production of milk products, i.e. milk products including infant milk
food, malted food, condensed milk & cheese stood at 3.07 lakh MT in 2008.
Production of milk powder including infant milk-food has risen to 2.25 lakh MT

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in 2008, whereas that of malted food is at 65000 MT. Cheese and condensed
milk production stands at 5000 and 11000 MT respectively in the same year.

Major Players
The packaged milk segment is dominated by the dairy cooperatives. Gujarat
Co-operative Milk Marketing Federation (GCMMF) is the largest player. All
other local dairy cooperatives have their local brands (For e.g. Gokul, Warana
in Maharashtra, Saras in Rajasthan, Verka in Punjab, Vijaya in Andhra
Pradesh, Aavin in Tamil Nadu, etc). Other private players include J K Dairy,
Heritage Foods, Indiana Dairy, Dairy Specialties, etc. Amrut Industries, once a
leading player in the sector has turned bankrupt and is facing liquidation.

Packaging Technology
Milk was initially sold door-to-door by the local milkman. When the
dairy co-operatives initially started marketing branded milk, it was sold in
glass bottles sealed with foil. Over the years, several developments in
packaging media have taken place. In the early 80's, plastic pouches
replaced the bottles. Plastic pouches made transportation and storage very
convenient, besides reducing costs. Milk packed in plastic pouches/bottles
have a shelf life of just 1-2 days, that too only if refrigerated. In 1996, Tetra

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Packs were introduced in India. Tetra Packs are aseptic laminate packs made
of aluminum, paper, board and plastic. Milk stored in tetra packs
and treated under Ultra High Temperature (UHT) technique can be stored for
four months without refrigeration. Most of the dairy co-operatives in Andhra
Pradesh, Tamil Nadu, Punjab
and Rajasthan sell milk in tetra packs. However tetra packed milk is costlier
by Rs5-7 compared to plastic pouches. In 2012-00 Nestle launched its UHT
milk.Parag too relaunched its Amul Taaza brand of UHT milk. The UHT milk
market is expected to grow at a rate of more than 10-12% in coming years.

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Regulatory Framework
The dairy industry was de-licensed in 1991 with a view to encourage
private investment and flow of capital and new technology in the segment.
Although de-licensing attracted a large number of players, concerns on issues
like excess capacity, sale of contaminated/ substandard quality of milk etc
induced the Government to promulgate the MMPO (Milk and Milk Products
Order) in 2012. Milk and Milk Products Order (MMPO) regulates milk and milk
products production in the country. The order requires no permission for units
handling less than 10,000 litres of liquid milk per day or milk solids up to 500
TPA. MMPO prescribes State registration to plants producing between 10,000
to 75,000 litres of milk per day or manufacturing milk products containing
between 500 to 3,750 tones of milk solids per year. Plants producing over
75,000 litres per day or more than 3,750 tones per year of milk solids have to
be registered with the Central Government. The stringent regulations,
government controls and licensing requirements for new capacities have
restricted large Indian and MNC players from making significant investments
in this product category. Most of the private sector players have restricted
themselves to manufacture of value added milk products like baby food, dairy
whiteners, condensed milk etc.

Proposal to Amend the MMPO

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A proposal to raise the exemption limit for compulsory registration of

dairy plants, from the present 10,000 litres a day to 20,000 litres, is being
considered by the Animal Husbandry Department. The 75,000-litre limit is
likely to be raised either to 100,000 litres or 125,000 litres in the amended
order. The new order would also do away with the provision for reregistration.

Penetration of milk products

Western table spreads such as butter, margarine and jams are not very
popular in India. All India penetration of butter/ margarine is only 4%. This is
also largely represented by urban areas, where penetration is higher at 9%.
In rural areas, butter/ margarine have penetrated in 2.1% of households only.
The use of these products in the large metros is higher, with penetration at
15%.

Penetration of cheese is almost nil in rural areas and negligible in the

urban areas. Per capita consumption even among the cheese-consuming
households is a poor 2.4kg pa as compared to over 20kg in USA. The lower
penetration is due to peculiar food habits, relatively expensive products and

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also non-availability in many parts of the country. Butter, margarine and

cheese products are mainly manufactured by organized sector.
Similarly, penetration of ghee is highest in medium sized towns at
37.2% compared to 31.7% in all urban areas and 21.3% in all rural areas. The
all India penetration of ghee is 24.1%. In relative terms, penetration of ghee
is significantly higher in North and West, which are milk surplus regions.
North accounts for 57% of ghee consumption and West for 23%, South & East
together account for the balance 20%. A large part of ghee is made at home
and by small/ cottage industry from milk. The relative share of branded
products in this category is very low at around 1-2%.
Milk powder and condensed milk have not been able to garner any
significant consumer acceptance in India as indicated by a very low 4.7%
penetration. The penetration is higher at
8.1% in urban areas and lower at 3.5% in rural areas. Within urban areas, it is
relatively higher in medium sized towns at 8.5% compared to 7.7% in large
metros.

Export Potential
India has the potential to become one of the leading players in milk
and milk product exports. Location advantage: India is located amidst major

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milk deficit countries in Asia and Africa. Major importers of milk and milk
products are Bangladesh, China, Hong Kong, Singapore, Thailand, Malaysia,
Philippines, Japan, UAE, Oman and other gulf countries, all located close to
India.
The major export products: -

The products of Amul is being exported in

the 40 countries of the world . Many of the products are now available in the
U.S.A , Gulf countries and Singapore. Amul products are being exported to the
Singapore since last three decades . undoubtedly , Amul is the preferred taste
of Indians in the Gulf countries.

Low Cost of Production:

Milk production is scale insensitive and labour intensive. Due to low labour
cost, cost of production of milk is significantly lower in India.
Concerns

in

export

competitiveness

are

Quality:

Significant

investment has to be made in milk procurement, equipments, chilling and

refrigeration facilities. Also, training has to be imparted to improve the quality
to bring it up to international standards.

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Productivity: To have an exportable surplus in the long-term and also to

maintain cost competitiveness, it is imperative to improve productivity of
Indian cattle.
There is a vast market for the export of traditional milk products such
as ghee, paneer, shrikhand, rasagulas and other ethnic sweets to the large
number of Indians scattered all over the world.

India's exports of milk products

Description
(Quantity,

2010-11
M

2011-12

2012-13

T.:

Value, Rs. million)

Quantity

Value

Quantity Value Quantity

Value

Skimmed milk powder 4,638.62 3,35.32

282.70

19.64

5.00

0.375

Milk and Milk Food for

8.27

2.019

111.37

4.27

11.00

2.02

Milk cream

332.23

28.04

1.00

0.084

Sweetened

41.73

2.84

9.22

0.97

60.39

7.22

78.46

3.75

11.50

1.01

6.00

0.342

7,895.08

431.1

299.97

babies

condensed milk
Whey
Ghee/Butter/Butter

19.2 4,352.08 2,38.95

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oil
Cheese
(a) Fresh

0.10

0.013

(b) Processed

5.67

1.20

2.1

0.375

22.10

2.19

66.64

8.35

36.78

0.69

24.84

4.55

8,72.7

52.4

2,55.6

(c) Other
TOTAL

Indian (traditional) Milk Products

There are a large variety of traditional Indian milk products such as
Makkhan - unsalted butter. Ghee - butter oil prepared by heat clarification, for
longer shelf life. Kheer - a sweet mix of boiled milk, sugar and rice. Basundi milk and sugar boiled down till it thickens. Rabri - sweetened cream. Dahi - a
type of curd. Lassi - curd mixed with water and sugar/ salt. Channa/Paneer milk mixed with lactic acid to coagulate. Khoa - evaporated milk, used as a
base to produce sweet meats. The market for indigenous based milk food
products is difficult to estimate as most of these products are manufactured
at home or in small cottage industries catering to local areas.

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Consumers while purchasing dairy products look for freshness, quality, taste
and texture, variety and convenience. Products like Dahi and sweets like
Kheer, Basundi, Rabri are perishable products with a shelf life of less than a
day. These products are therefore manufactured and sold by local milk and
sweet shops. There are several such small shops within the vicinity of
residential areas. Consumer loyalty is built by consistent quality, taste and
freshness. There are several sweetmeat shops, which have built a strong
brand franchise, and have several branches located in various parts of a city.

Branding Of Traditional Milk Products

Among the traditional milk products, ghee is the only product, which is
currently marketed, in branded form. main ghee brands are Sagar.

With increasing urbanization and changing consumer preferences,

there is possibility of large scale manufacture of indigenous milk products
also. The equipments in milk manufacturing have versatility and can be
adapted for several products. For instance, equipments used to manufacture
yogurt also can be adapted for large scale production of Indian curd products

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(dahi and lassi). Significant research work has been done on dairy
equipments under the aegis of NDDB.
Mafco Limited sells Lassi under the Aarey brand and flavored milk
under the Energee franchise (in the Western region, mainly in Mumbai).
Britannia has launched flavored milk in various flavors in tetra packs.
GCMMF has also made a beginning in branding of other traditional milk
products with the launch of packaged Paneer under the Parag brand. It has
also created a new umbrella brand "Parag Mithaee", for a range of ethnic
Indian sweets that are proposed to be launched the first new product Parag
Mithaee Gulabjamun has already been launched in major Indian markets.

Western Milk Products

Western milk products such as butter, cheese, yogurt have gained popularity
in the Indian market only during the last few years. However consumption
has been expanding with increasing urbanization.

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Butter
Most Indians prefer to use home made white butter (makkhan) for reasons of
taste and affordability. Most of the branded butter is sold in the towns and
cities. The major brands as a Gomti nagar, indera nagar,Hazratganj. Parag is
the leading national brand while the other players have greater shares in
their local markets. The latest entrant in the butter market has been
Britannia. Britannia has the advantages of a wide distribution reach and a
strong brand recall.
Priced at par with the Parag brand, it is expected to give stiff competition to
the existing players. In 2012-00 the butter production is estimated at 4 lakh
MT of this only 45K MT is in the white form used for table purposes rest all is
in the yellow form.

Cheese
The present market for cheese in India is estimated at about 9,000 tonnes
and is growing at the rate of about 15% per annum. Cheese is mainly
consumed in the urban areas. The four metro cities alone account for more
than 50% of consumption. Mumbai is the largest market (accounting for 30%
of cheese sold in the country), followed by Delhi (20%). Lucknow (7%) and
Chennai (6%). Mumbai has a larger number of domestic consumers,

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compared to Delhi where the bulk institutional segment (mainly hotels) is

larger.

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Demand for various types of cheese in the Indian market

Type of cheese

% of total consumption

Processed

50

Cheese spread

30

Mozzarella

10

Flavored/Spiced

Others

Capacity expansion in Cheese

Company

Brands

Dynamics GroupManufactures

State

Capacity

forLucknow

35 tons per day

Britannia
GCMMF

Amul

Lucknow

20 tons per day

APDDCF

Parag

Lucknow

10 tons per day

Milk Powder
Milk powder is mainly of 2 types
_ Whole milk powder
_ Skimmed milk powder

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Whole milk powder contains fat, as distinguished from skimmed milk powder,
which is produced by removing fat from milk solids. Skimmed milk powder is
preferred by diet conscious consumers. Dairy whiteners contain more fat than
skimmed milk powder but less compared to whole milk powder. Dairy
whiteners are popular milk substitute for making tea, coffee etc.
The penetration of these products in milk abundant regions is driven by
convenience and non perishable nature (longer shelf life) of the product.
Milk Collection Cycle
The success of each and every dairy industry is the getting the milk
from the farmers and making that milk in use as soon as possible before that
milk get spoiled because the milk is the perishable product. For the smooth
running the business of dairy industry the industry must concentrate on the
milk collection cycle. Amul dairy is very conscious about the milk collection
cycle because the base of the success of the Amul is milk collection cycle.

Production capacity of Amul

Butter
Powder plant
Powder plant
Flavour milk

50 to 60 Tones
70 tones
60 tones
40000 bottles

Condensed Milk

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The condensed milk market has grown from 9000 MT in 2007 to 11000 MT in
2008. Condensed milk is a popular ingredient used in home-made sweets and
cakes. Nestls Milkmaid is the leading brand with more than 55% market
share. The only other competitor is GCMMF's Amul.

Infant Foods
Nestle is the market leader in the segment. This is a category where brand
loyalties are very strong as mothers want the best for their babies. Heinz is
the only other significant competitor to Nestle in this segment. Nestls
Cerelac and Nestum together have around 80% market share and Heinz's
Farex has close to 18% share. Work hard is a relatively new entrant with its
First Food brand. Wockhardt also proposes to launch a new baby food Easum
containing moong (moong is one of the easily digestible pulses). The Easum
brand will directly compete with Nestle's Nestum (made from rice).
In infant formula also Nestle's Lactogen formula and Lactogen standard
formula are the leading brands with around 75% market share. Other brands
are Heinz's Lactodex Farex, Wockhardt's *Raptakos, and Amul's Amulspray

Major dairy products manufacturers

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Some of the major dairy products manufacturers in the country:

Company
Nestle

Brands
India Milkmaid, Cerelac,

Limited

Milk food Limited

Major Products
Sweetened condensed milk,

Lactogen, Milo,

malted foods, milk powder

Everyday

and Dairy whitener

Milk food

Ghee, ice cream, and other

milk products

Smith

Kline Horlicks, Maltova,

Beecham Limited

Viva

Malted Milk food, ghee, butter,

powdered milk, milk fluid and
other milk based baby foods.

Indodan
Industries
Limited

Indana

Condensed milk, skimmed

milk powder, whole milk
powder, dairy milk whitener,
chilled and processed milk

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Lucknow

Co-

operative

milk

Parag

Butter, cheese and other milk

products

Marketing
Federation
Limited
H.J.
Limited

Heinz

Farex, Complan,

Infant Milkfood, malted

Glactose, Bonniemix,

Milkfood

Vitamilk
Britannia

Milkman

Flavored milk, cheese, Milk

Powder, Ghee

Cadbury

Bournvita

Malted food

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Manufacturing Process
Milk is pasteurized by treating it to high temperature for a short time. The
main aim in treating milk with high temperature is to destroy the disease
causing pathogens and to improve keeping quality.
Separation machine is typically a high powered centrifuge. The centrifugal
force makes milk fat globules and emerges as cream from the separator bowl.
Separation of cream produces skim milk from which several dairy products
are made.
Baby food: Fresh milk, which is received from farmers/ traders, is chilled and
stored. Then MSK skimmed/ wet skimmed milk and sugar are added in turbo
mixture to achieve the desired specifications of ingredients in the milk. This is
followed by addition of vitamins and minerals. This milk which contains
ingredients to specifications is filtered, cooled, analyzed and then purified.
Then it passes through specific pasteurization and is taken to evaporator for
pre-condensing. Pre-condensate is homogenized, cooled and stored. Cooled
pre-condensate is heated and dried in spray drier (Egron). Then sugar is
added. The powder is then passed through chemical analysis to check quality
and is filled in tins through filling machines. These tins are gassed during gas
mix and then sealed, packed and dispatched in cardboard cartons.

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Butter: Whole milk is first separated into skim milk and cream by centrifugal
force in a separator. The cream is then pasteurized either through batch
process or a continuous process. In batch process, cream is heated to a
minimum of 740 C and held at the temperature for 30 minutes, while in
continuous process it is heated at 850 C and is held for only 15 seconds. The
heat treatment destroys bacteria, inactivates enzymes and gives the cream a
cooked flavour.
After pasteurization, a tempering process is applied in which cream is held at
100 C to allow rearrangement of the fat crystals. The cream is then churned
to produce butter. Continuous churning converts cream into butter in a few
minutes while batch churning takes a longer time. Composition and colour
adjustment is also done at the churning stage and a salt solution is added to
give the finished butter a salty taste. About 13 litres of milk with 6% fat is
required to produce 1 kg of butter.

Cheese: There are thousands of varieties of cheese in the world. The type of
manufacturing process used in the production of cheese determines its
flavour, which ranges from extremely mild to very sharp, and its texture,
which can be semi-solid to almost stone hard. Cheese making requires four
main ingredients - good quality milk, rennet or coagulating acids, culture and
salt. Cheese is generally made from cow's milk. About 10 litres of milk with

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3% fat is required for making 1 kg of cheese. Natural Cheese is made by

coagulating or curdling milk, stirring & heating the curd, draining off the whey
and collecting or pressing the curd. The desired flavour and texture is
obtained by varying the temperature, humidity and time period of the curing
process. Sweetened condensed milk is usually made from fresh milk by
adding sugar to the milk pre-warming and concentrating the mixture in the
high vacuum. The syrupy milk is then cooled so that the lactose crystallizes
as very fine crystals and then the product is coagulated.
Future Prospects
India= = s dairy sector is expected to triple its production in the next 10
years in view of expanding potential for export to Europe and the West.
Moreover with WTO regulations expected to come into force in coming years
all the developed countries which are among big exporters today would have
to withdraw the support and subsidy to their domestic milk products sector.
Also India today is the lowest cost producer of per litre of milk in the world, at
27 cents, compared with the U.S' 63 cents, and Japan= = s $2.8 dollars. Also
to take advantage of this lowest cost of milk production and increasing
production in the country multinational companies are planning to expand
their activities here. Some of these milk producers have already obtained
quality standard certificates from the authorities. This will help them in
marketing their products in foreign countries in processed form.

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The urban market for milk products is expected to grow at an accelerated

pace of around 33% per annum to around Rs.43,500 crores by year 2008.
This growth is going to come from the greater emphasis on the processed
foods sector and also by increase in the conversion of milk into milk products.
By 2008, the value of Indian dairy produce is expected to be Rs 10, 00,000
million. Presently the market is valued at around Rs7, 00,000mn.

COMPANY PROFILE OF AMUL

The Amul Meaning
AMUL means priceless in Sanskrit . A quality control expert in Anand suggested
the brand name AMUL from the Sanskrit word Amoolya variants, all meaning
priceless are found in several Indian languages. Amul products have been used in
millions of home since 1946 .

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Amul butter

Amul milk powder

Amul ghee

Amulspray

Amul cheese

Amul chocolates

Amul Ice- cream

Today Amul is a symbol of many things . of high quality products sold

at

reasonable prices . F triumph of indigenous technology . Of the marketing savvy of a

farmers organization . And proven model for dairy development .

MOTTO, VISION, AND QUALITY POLICY

MOTTO

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 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.

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VISION

Vision of AMUL is to provide and vanish the problems of farmers (milk

producers). The AMUL apparition was to run the organization with cooperative of four main parties, the farmers, the representatives, the
marketers, and the consumers.

QUALITY POLICY

We the motivated and devoted work force of AMUL are committed to produce
whole some and safe foods of excellent quality to remain market leaders
through deployment of quality management system, state of art technology
innovation and eco- friendly delightment of customer and betterment of milk
producer
HISTORY

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In early 1940s a farmer in Kaira district, as elsewhere in India, derived his

income almost entirely from seasonal crops. The income from milk was paltry
and could not be depended upon. The main buyers were milk traders of

Polson
Ltd.-a

privately owned company that enjoyed monopoly for supply of milk from
Kaira to the Government Milk Scheme Bombay. The system leads to
exploitation of poor and illiterate farmers by the private traders.
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 cooperative union, instated of

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supplying milk to private traders. Sardar Patel sent the farmer to Shri Morarji
Dasai in order to gain his Co-operation and help. Shri Dasai held a meeting at
Samrkha village near Anand, on January 4, 1946. He advised the farmers to
from a society for collection of the milk.These village societies would collect
the milk themselves and also decided prices for that which would be
profitable for them. The district union was also from to collect the milk from
such village cooperative societies and to sell them. It was also resolved that
the government should asked to buy milk from the union.
However, the government did not seem to help farmer by any means. It gave
the negative response by turning down the demand for the milk. To respond
to this action of government, farmer of Kaira district went on a milk strike. For
15 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. Finely he decided to fulfill
the farmers demand.

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Members:

13 district cooperative milk

producers' Union

No. of Producer Members:

No. of Village Societies:
Total Milk handling capacity:

2.6 million
12,792
10.16 million litres per day

Milk collection

2.38 billion litres

Milk collection

6.5 million litres

Milk Drying Capacity:

594 Mts. per day

Cattle

2640 Mts per day

feed

manufacturing

Capacity:
About Machinery
In AMUL 3 production of powder, Butter and Milk are being done
continuously. These productions are done by latest machineries
equipped with computer system and it is handled by one technicians.
-

The Milk pasteurizer machines belong to Alfa level company

of Pune
Powder plant machineries belong to L & T Larson and Turbo

company of India
Butter production machineries belong to S.G.company of

switrzland and other

Butter manufacturing production machineries belong to Simon
Feres com.of France

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ORGANISATION STRUCTURE OF AMUL

Board of Director

CHAIRMAN

MANAGING CHAIRMAN

GENERAL MANAGER

ASSISTANT GENERAL MANAGER

MANAGER

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35

DEPUTY MANAGER

ASSISTANT MANAGER

SENIOR EXECUTIVE

SENIOR OFFICER

SENIOR ASSITANT

WORKERS

Grade ( Ato E)
.

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36

37
37

Sales Turnover
Sales Turnover

Rs (million)

US $ (in million)

1996-97

11140

355

1997-98

13790

400

1998-99

15540

450

1999-00

18840

455

2000-01

22192

493

2001-02

22185

493

2002-03

22588

500

2003-04

23365

500

2004-05

27457

575

2005-06

28941

616

2006-07

29225

672

2007-08

37736

850

2008-09

42778

1050

2009-10

52254

1325

2010-11

67113

1505

2011-12

80053

1700

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List of Products Marketed:

Bread spreads:

Amul Butter

Amul Lite Low Fat Bread spread

Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozzarella) Cheese

Amul Shredded Pizza Cheese

Amul Emmental Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese)

Utterly Delicious Pizza

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Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

Amul Amrakhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix

Avsar Ladoos

UHT Milk Range:

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:

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40

Amul Pure Ghee

Sagar Pure Ghee

Amul Cow Ghee

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6 months)

Amul Infant Milk Formula 2 ( 6 months above)

Amulspray Infant Milk Food

Milk Powders:

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

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Fresh Milk:

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

Curd Products:

Yogi Sweetened Flavoured Dahi (Dessert)

Amul Masti Dahi (fresh curd)

Amul Masti Spiced Butter Milk

Amul Lassee

Amul Ice creams:

Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza,

Roasted Almond)

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Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh

Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)

Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)

Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone,

Chococrunch, Mega bite, Cassatta)

Utterly Delicious (Vanilla, Strawberry, Chocolate, Choc chips, Cake

Magic)

Chocolate & Confectionery:

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Brown Beverage:

Nutramul Malted Milk Food

Milk Drink:

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Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom,

Rose, Chocolate)

Amul Kool Cafe

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Health Beverage:

Amul Shakti White Milk Food

Amul Butter Girl

Edited from an article by Mini Verma published in The Asian Age on

March 3, 1996

The moppet who put Amul on India's breakfast table

50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a
year in 1966 to over 25,000 tonnes a year in 2008. No other brand comes even close to it.
All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses.

Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old
housewife is out in the balcony drying clothes. From her second floor flat she can see her
neighbours on the road. There are other people too. The crowd seems to be growing
larger by the minute. Unable to curb her curiosity Sheela Mane hurries down to see what
all the commotion is about. She expects the worst but can see no signs of an accident. It is
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her four-year-old who draws her attention to the hoarding that has come up overnight. "It
was the first Amul hoarding that was put up in Mumbai," recalls Sheela Mane. "People
loved it. I remember it was our favourite topic of discussion for the next one week!
Everywhere we went somehow or the other the campaign always seemed to crop up in
our conversation."

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One of the first Amul hoardings

In India, food was something one couldn't afford to fool around with. It had been taken
too seriously, for too long. Sylvester daCunha decided it was time for a change of image.
The year Sylvester daCunha took over the account, the country saw the birth of a
campaign whose charm has endured fickle public opinion, gimmickry and all else.
The Amul girl who lends herself so completely to Amul butter, created as a rival to the
Polson butter girl. This one was sexy, village belle, clothed in a tantalizing choli all but
covering her upper regions. "Eustace Fernandez (the art director) and I decided that we
needed a girl who would worm her way into a housewife's heart. And who better than a
little girl?" says Sylvester daCunha. And so it came about that the famous Amul Moppet
was born.
That

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For the first one year the ads made statements of some kind or the other but
they had not yet acquired the topical tone. In 1967, Sylvester decided that
giving the ads a solid concept would give them extra mileage, more dum, so
to say. It was a decision that would stand the daCunhas in good stead in the
years to come.

In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna
movement, Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative
team working on the Amul account came up with a clincher -- 'Hurry Amul, Hurry
Hurry'. Bombay reacted to the ad with a fervour that was almost as devout as the Iskon
fever.
That was the first of the many topical ads that were in the offing. From then on Amul
began playing the role of a social observer. Over the years the campaign acquired that all
important Amul touch.
India looked forward to Amul's evocative humour. If the Naxalite movement was
the happening thing in Calcutta, Amul would be up there on the hoardings saying, "Bread
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without Amul Butter, cholbe na cholbe na (won't do, won't do). If there was an Indian
Airlines strike Amul would be there again saying, Indian Airlines Won't Fly Without
Amul.

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Amul's point of view on the MR coffee controversy

There were other instances too. Heroine Addiction, Amul's little joke on Hussain had the
artist ringing the daCunhas up to request them for a blow up of the ad. "He said that he
had seen the hoarding while passing through a small district in UP. aHe sid says Rahul
daCunha in amused tones. Indians do have a sense of humour, afterall.he had asked his
assistant to take a photograph of himself with the ad because he had found it so funny,"
From the Sixties to the Nineties, the Amul ads have come a long way. While most people
agree that the Amul ads were at their peak in the Eighties they still maintain that the
Amul ads continue to tease laughter out of them.
Where does Amul's magic actually lie? Many believe that the charm lies in the catchy
lines. That we laugh because the humour is what anybody would enjoy. They don't
pander to your nationality or certain sentiments. It is pure and simple, everyday fun.

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51
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PRODUCTION &OPERATION 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 butter and milk powder.
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

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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.

Today three plant of AMUL perform different function.

AMUL 1 presently it is use as a go down for storing raw materials.

Milk Collection Cycle

The success of each and every dairy industry is the getting the milk
from the farmers and making that milk in use as soon as possible before that
milk get spoiled because the milk is the perishable product. For the smooth
running the business of dairy industry the industry must concentrate on the
milk collection cycle. Amul dairy is very conscious about the milk collection
cycle because the base of the success of the Amul is milk collection cycle.

Production capacity of Amul

Butter
Powder plant
Powder plant
Flavour milk

50 to 60 Tones
70 tones
60 tones
40000 bottles

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About Machinery
In AMUL 3 production of powder, Butter and Milk are being done
continuously. These productions are done by latest machineries
equipped with computer system and it is handled by one technicians.
-

The Milk pasteurizer machines belong to Alfa level company

of Pune

Powder plant machineries belong to L & T Larson and Turbo

company of India

Butter production machineries belong to S.G.company of

switrzland and other

Butter manufacturing production machineries belong to Simon

Feres com.of France

OPERATION DETAIL
PRODUCT USE AND CHARACTERISTICS
MILK
One of the most versatile food consumed by us. All children start their with
mothers milk and continue to use it in one other throughout their life. It is
the secretion from the mammary glands of a lactating mammal. The white
fluid, know as milk, is made up of milk fat and other milk solids.
AMUL ICE CREAM
Amul ice cream is made up from fresh milk.

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Ice cream are rich in protein, calcium, dairy cream and vitamins.
Ice cream are a complete food, easy to digest and full of energy.
MANUFACTURING PROCESS FOR ICE CREAM
Amul ice cream is made up from milk, milk products, sugar, stabilizers and
emulsifiers.
Composition

Milk Fat 13.5% to 14.5%

Total Solids 40% to 41%

Sugar 15% Approx.

Acidity 0.17% to 0.19%

Protein 3.9% to 4.1%

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Food Energy Value

Calories per 100 ml -196.7 kcal
Flavors
VANILA , Strawberry, Pineapple, Orange, Rose, Mango, Chocolate, Honey-Dew-Melon, Tutee
Fruity, Litchi, Kesar Pista, Kaju Draksh, Butterscotch, Choc chips, Rajbhog and Cashew Break.

Packaging
50 ml cup, 100 ml cup, 500 ml pack,1 litre pack, 4 litre pack, Chocobar, Ice candies, Cones and
Kulfies .

MANUFACTURING PROCESS FOR MILK

MILK PROCUREMENT
Total milk procurement by our Member Unions during the year 2006-07
averaged 67.25 lakh kilograms (6.7 million kg) per day, representing a
growth of 4.5 per cent over 64.38 lakh kilograms (6.4 million kg) per day
achieved during 2005-06. The highest procurement as usual was recorded
during January 2007 at 84.09 lakh kilograms (8.4 million kg) per day. This
increase in milk procurement is very impressive, keeping in mind the massive
loss suffered by our farmers due to
floods during the monsoon season, specially in Surat district.

MILK PROCESSING
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Homogenization:

Milk

must

then

be

homogenized.

Without

homogenization, the milk fat would separate from the milk and rise to the
top. Milk fat is what gives milk its rich and creamy taste. In this process Milk
is transferred to a piece of equipment called a homogenizer. In this machine
the milk fat is forced, under high pressure through tiny holes.

2 . Pasteurization:- Pasteurization is the process that purifies milk and helps

it stay fresher, longer. Milk is pasteurized by heating it to 72C for 16 seconds
then quickly cooling it to 4C. Pasteurization is named after Louis Pasteur, the
famous scientist.

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.Adding Vitamins; - Before homogenization, vitamin D is added to all milk.

Vitamin D combined with the calcium that naturally exists in milk help gives
us strong bones and teeth. Dairies also add Vitamin A to skim, 1% and 2%
milk. Vitamin A is good for our eyesight.

4.Packaging Milk: - Milk is now ready to be packaged. Milk is pumped through

automatic filling machines direct into bags, cartons and jugs. The machines
are carefully sanitized and packages are filled and sealed without human
hands. During the entire time that milk is at the dairy, it is kept at 1 - 2C.
This prevents the development of extra bacteria and keeps the milk its
freshest.

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5.Storing:- Milk is delivered to grocery stores, convenience stores and

restaurants in refrigerated trucks that keep milk cooled to 1 - 4C. The stores
take their milk and immediately place it in their refrigerated storage area.
Because fresh milk is so important to our diets, dairies, and our health.

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Supply chain management of AMUL

SUPPLIERS

GCMMFS SUPPLY CHAIN

Processing :
After the union received the milk, it was tested and if it was found to be of
good quality, it was sent for processing. If the milk was found to have high
acidity, it was used to make buttermilk. Raw milk was sent through a filter
and clarifier and was pasteurized. For pasteurization, milk was treated at high
temperatures for a specified.

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This helped in destroying the pathogens and in maintaining the quality. After
pasteurization, the milk was sent through a separation machine. Here the
cream was separated and skimmed milk was obtained. According to the
demand, the unions packed the milk after it was pasteurized and sent for
distribution. The cream was marketed as Amul Fresh cream .

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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 VCS constantly monitored the deliveries of the milk
collected and ensured that the milk was picked up on time. The unions
monitored the supplies of milk and the distribution of finished products.

WARE HOUSING: Amul products are available in over 500,000 retail outlets
across India through its network of over 3,500 distributors. There are 47
depots with dry and cold warehouses to buffer inventory of the entire range
of products. GCMMF transacts on an advance demand draft basis from its
wholesale dealers instead of the cheque system adopted by other major
FMCG companies. This practice is consistent with GCMMF's philosophy of
maintaining cash transactions throughout the supply chain and it also
minimizes dumping. Wholesale dealers carry inventory that is just adequate
to take care of the transit time from the branch warehouse to their premises.
This just-in-time inventory strategy improves dealers' return on investment
(ROI). All GCMMF branches engage in route scheduling and have dedicated
vehicle operation .

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MILK PROCESSING BLOCK

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64
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Second component is suppliers are the farmers and other raw material for
manufacturing the ice creams are provided by MAHAN PROTEINS LTD., IDEAL
ICE CREAMS and BHARAT ESSENCE.
This component is manufacturing process which is describe above. In milk
process there are mainly five steps are required and i.e. homogenization,
pasteurization, adding vitamins, packaging, storing. In this process there are

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also requirement of warehouse for storing the product which already made
and also for the raw material.
The next step is the distribution channel in which GCMMF plays very
important role in that. It handle all the marketing for AMUL products.
GCMMF's products were marketed through 50 sales offices located across
India to 4,000 stockists. These stockists supplied the products to more than
500,000 retail outlets.
The next step is the customers in this category there are restaurants
includes. Also the retail shops and whole sellers are included.
The last step is the consumer in which the actual hose hold are included in
this category.
Our Product

AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit
"Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning
"priceless", are found in several Indian languages. 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. (Turnover: Rs. 42.78
billion in 2007-08). Today Amul is a symbol of many things. Of high-quality products
sold at reasonable prices. Of the genesis of a vast co-operative network. Of the triumph of
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indigenous technology. Of the marketing savvy of a farmers' organization. And of a

proven model for dairy development.

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Check out this vast and ever-growing range of 'tasteful' Amul delectable!

"Please click here to download the latest PRODUCT DETAILER".

Bread Spreads
Amul Butter

Amul Lite

Utterly Butterly

Low fat, low

Delicious

Cholesterol Bread
Spread

Delicious Table
Margarine
The Delicious way to
eat healthy

Milk Drinks
Amul Kool

Amul Kool Cafe

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Kool Koko

Nutramul Energy

A delight to Chocolate

Drink

Lovers. Delicious

A drink for Kids -

Chocolate taste

provides energy to suit

the needs of growing
Kids

Amul Kool Chocolate

Amul Kool Flavoured

Milk

Bottled Milk

Amul Kool Flavoured

Amul Masti Spiced

Tetra Pack

Buttermilk
Amul introduces the

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Best Thirst Quenching

Drink

Amul Kool Thandai

Powder Milk
Amul Spray

Amul Instant Full

Infant Milk Food

Cream Milk

Still, Mother's Milk

Powder

is Best for your

A dairy in your

baby

home

Sagar Skimmed

Sagar Tea Coffee

Milk Powder

Whitener

Which is especially
useful for diet
preparations or for
use by people on

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low calorie and high

protein diet.

Amulya Dairy
Whitener
The Richest, Purest
Dairy Whitener

Fresh Milk
Amul Fresh Milk

Amul Gold Milk

This is the most

hygienic milk available
in the

market. Pasteurised in
state-of-the-art
processing plants and
pouch-packed for
convenience.

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Amul Taaza Double

Amul Lite Slim and

Toned Milk

Trim Milk

Amul Fresh Cream

Amul Shakti Toned

Milk

Amul Calci+

Cheese
Amul Pasteurised

Amul Cheese

Processed Cheese

Spreads

100% Vegetarian

Tasty Cheese Spreads

Cheese made from

in 3 great flavours.

microbial rennet

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Amul Emmental

Amul Pizza

Cheese

Mozzarella Cheese

The Great Swiss

Pizza cheese...makes

Cheese from Amul, has

great tasting pizzas!

a sweet-dry flavour
and hazelnut aroma

Gouda Cheese

For Cooking
Amul / Sagar Pure

Cooking Butter

Ghee
Made from fresh
cream. Has typical rich
aroma and granular

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texture. An ethnic
product made by
dairies with decades of
experience.

Amul Malai Paneer

Utterly Delicious

Ready to cook paneer

Pizza

to make your favourite

recipes!

Mithai Mate

Masti Dahi

Sweetened Condensed
Milk

Free flowing and

smooth texture. White
to creamy color with a
pleasant taste.

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75
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Desserts
Amul Ice Creams

Amul Shrikhand----

Premium Ice Cream

A delicious treats,

made in various

anytime.

varieties and flavours

with dry fruits and
nuts.

Amul Mithaee Gulab

Amul Chocolates

Jamuns

The perfect gift for

Pure Khoya Gulab

someone you love.

Jamums...best served
piping hot.

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Amul Lassee

Amul Basundi

Health Drink
Nutramul

Amul Shakti

Malted Milk Food

Health Food Drink

made from malt

extract has the

Available in Kesar-

highest protein

Almond and

content among all

Chocolate flavours.

the brown beverage

powders sold in
India.

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PROFILE OF PARAG DAIRY

Parag Dairy Delhi was set up in 1974 under the Operation Flood
Programme. It is now a wholly owned company of the National Dairy
Development Board (NDDB).
Parag Dairy markets & sells dairy products under the Parag Dairy brand (like
Liquid Milk, Dahi, Ice creams, Cheese and Butter), Dhara range of edible oils
and the Safal range of fresh fruits & vegetables, frozen vegetables and fruit
juices at a national level through its sales and distribution networks for
marketing food items.
Parag Dairy sources significant part of its requirement of liquid milk from
dairy cooperatives. Similarly, Parag Dairy sources fruits and vegetables from
farmers / growers associations. Parag Dairy also contributes to the cause of
oilseeds grower cooperatives that manufacture/ pack the Dhara range of
edible oils by undertaking to nationally market all Dhara products. It is Parag
Dairys constant endeavor to

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(a) Ensure that milk producers and farmers regularly and continually receive
market prices by offering quality milk, milk products and other food products
to consumers at competitive prices and;
(b) Uphold institutional structures that empower milk producers and farmers
through processes that are equitable.

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At Parag Dairy, processing of milk is controlled by process automation

whereby state-of-the-art microprocessor technology is adopted to integrate
and completely automate all functions of the milk processing areas to ensure
high product quality/ reliability and safety. Parag Dairy is an IS/ ISO-9002, IS15000 HACCP and IS-14001 EMS certified organization. Moreover, its
Quality Assurance Laboratory is certified by National Accreditation Board for
Testing and Calibration Laboratory (NABL)-Department of Science and
Technology, Government of India.
Parag Dairy markets approximately 2.8 million liters of milk daily in the
markets of Delhi, Mumbai, Saurashtra and Hyderabad. Parag Dairy Milk has a
market share of 66% in the branded sector in Delhi where it sells 2.3 million
liters of milk daily and undertakes its marketing operations through around
14,000 retail outlets and 845 exclusive outlets of Parag Dairy.
The companys derives significant competitive advantage from its
unique distribution network of bulk vending booths, retail outlets and mobile
units. Parag Dairy ice creams launched in the year 1995 have shown
continuous growth over the years and today boasts of approximately 62%
market share in Delhi and NCR. Parag Dairy also manufactures and markets a
wide range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT
Milk, Lassi & Flavored Milk and most of these products are available across
the country.

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The company markets an array of fresh and frozen fruit and vegetable
products under the brand name SAFAL through a chain of 400+ own Fruit and
Vegetable shops and more than 20,000 retail outlets in various parts of the
country. Fresh produce from the producers is handled at the Companys
modern distribution facility in Delhi with an annual capacity of 200,000 MT.
An IQF facility with capacity of around 75 MT per day is also operational in
Delhi. A state-of-the-art fruit processing plant of fruit handling capacity of 120
MT per day, a 100 percent EOU, setup in 1996 at Mumbai supplies quality
products in the international market.
With increasing demand another state-of-the-art fruit processing plant
has been set up at Bangalore with fruit handling capacity of around 250 MT
per day. Parag Dairy has also been marketing the Dhara range of edible oils
for the last few years. Today it is a leading brand of edible oils and is available
across the country in over 2, 00,000 outlets. The brand is currently available
in the following variants: Refined Vegetable Oil, Refined Soybean Oil, Refined
Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil and Filtered
Groundnut Oil. Parag Dairy has also launched extra virgin Olive Oil under the
Daroliva brand.
Parag Dairy has over the last 3 decades, harnessed the power of
farmer cooperatives to deliver a range of delicious products and bring a smile

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on your face. In times to come, Parag Dairy shall strive to remain one of
Indias finest food companies.

List of Products Marketed:

Bread spreads:

Parag Butter

Cheese Range:Parag Pizza Cheese

Parag Paneer

UHT Milk Range:

Parag Milk Parag Fresh Cream

Pure Ghee:Parag Pure Ghee

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Infant Milk Range:Parag spray Milk Food

Milk Powders:Sagar Skimmed Milk Powder

Fresh Milk:Parag Taaza Toned Milk

Parag Cow Milk

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SALES AND DISTRIBUTION STRATEGIES

MARKET SHARE OF AMUL SPRAY IN % AGE (Lucknow)

TERRITORIES

AMUL SPRAY

PARAG DAIRY
LECTOGIN

Vipul khand

1.40

3.61

Indera nagar

2.80

10.31

Vikas khand

0.20

4.00

Sikandra bag

2.40

5.12

Hajratganj

1.40

4.50

Sadar Bazar

1.00

1.40

jankipuram

3.70

2.81

Aliganj

4.00

1.00

Alambag

3.00

8.61

Mohanlalganj

1.20

2.40

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Munsipullia

0.10

0.40

15.52

13.52

Kaiserbag

0.10

1.20

aminabad

0.50

3.80

37.32

62.68

Telebag

TOTAL

SALES OF BUTTER BY TERRITORY (KG) (Lucknow)

TERRITORIES

AMUL BUTTER

PARAG DAIRY
BUTTER

Vipul khand

159

Indera nagar

92

30

Vikas khand

734

72

Sikandra bag

355

190.5

Sadar Bazar

678

jankipuram

500

42

Aliganj

470

Hajratganj

85
85

Alambag

350

100

Mohanlalganj

40.5

14

60

259

3850

306

Munsipullia
Telebag
Kaiserbag
Total

MARKET SHARE OF AMUL BUTTER IN %AGE

TERRITORIES

AMUL BUTTER

PARAG

DAIRY

BUTTER

Vipul khand

3.83

Indera nagar

2.21

.72

Vikas khand

17.76

1.80

Sikandra bag

8.49

Hajratganj

4.56

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Sadar Bazar

16.32

jankipuram

12.03

1.01

Aliganj

11.31

0.05

Alambag

8.36

2.41

Mohanlalganj

0.96

Munsipullia

0.33

1.43

Telebag

6.23

Kaiserbag

0.19

TOTAL

92.58

7.42

SALES OF DAIRY WHITE BY TERRITORY (KG)

AMULYA

Parag Dairy

OTHERS

27

Indera nagar

Vikas khand

51

25

Sikandra bag

46

28

16

TERRITORIES
Vipul khand

Hajratganj

87
87

Sadar Bazar

24

17

jankipuram

Aliganj

37

Alambag

28

Mohanlalganj

43

310

34

10

589

57

109

Munsipullia
Telebag
Kaiserbag
TOTAL

MARKET SHARE OF DAIRY WHITE IN % AGE (Lucknow)

AMULYA

Parag Dairy

OTHERS

Vipul khand

2.02

0.76

Indera nagar

0.45

0.37

0.45

TERRITORIES

88
88

Vikas khand

3.72

0.15

1.96

Sikandra bag

3.34

0.58

2.18

1.19

Sadar Bazar

1.78

0.37

1.27

jankipuram

0.37

0.22

0.38

Aliganj

2.83

0.22

0.38

Alambag

2.18

Mohanlalganj

3.22

23.20

2.54

Telebag

0.15

Kaiserbag

0.75

44.01

4.45

8.57

Hajratganj

Munsipullia

TOTAL

Consumer Perception towards Amul & Parag Dairy Products

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89

Export Potential
India has the potential to become one of the leading players in milk and milk
product exports. Location advantage: India is located amidst major milk
deficit countries in Asia and Africa. Major importers of milk and milk products
are

Bangladesh,

China,

Hong

Kong,

Singapore,

Thailand,

Malaysia,

Philippines, Japan, UAE, Oman and other gulf countries, all located close to
India.

Low Cost of Production: Milk production is scale insensitive and labour

intensive. Due to low labour cost, cost of production of milk is significantly
lower in India.
Concerns in export competitiveness are Quality: Significant investment has
to be made in milk procurement, equipments, chilling and refrigeration
facilities. Also, training has to be imparted to improve the quality to bring it
up to international standards.

90
90

Productivity: To have an exportable surplus in the long-term and also to

maintain cost competitiveness, it is imperative to improve productivity of
Indian cattle.
There is a vast market for the export of traditional milk products such as
ghee, paneer, shrikhand, rasgolas and other ethnic sweets to the large
number of Indians scattered all over the world

91
91

Chapter 3
Research
methodology

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92

OBJECTIVE OF THE
STUDY
Amul & Parag Dairy is the market leader of dairy based food products in
Lucknow City. Amul is the major competitors in the market against Parag Dairy. It
is important to get an idea regarding Amuls & Parag Dairy position in Lucknow
City. It would not help Amul to capitalize on existing potential but also to formulate
strategies and to fill the look holes and gaps to fight the competitive situation
The Objective also contains:

To determine the market share of Amul & Parag dairy based product.

To determine the consumer preferences of Amul & Parag dairy product

with the help of some parameters -quality, taste, price, packing style.

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93

To compare the dairy product of Amul and Parag dairy on the basis of
above parameters

SIGNIFICANCE OF THE TOPIC

Create the awareness about product in the market.

Building confidence in retailers as well as in the customer.

To Understand the terminologies used in market by retailers.

Develop the usefulness in enhancing the usability of the product.

To know different selling skills at various situation of market.

To learn different strategies which are used by retailers in market to

convince the customers.

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94

RESEARCH METHODOLOGY
Methodology for a study like this is the most important part .The
method of study operate by me is totally is to increase $ to gather the
more information regarding this project.
The major emphasis in such studies is on the discovery of the
ideas fruitful relevant information. As such the research design
95
95

appropriate for such studies must be flexible enough to provide

opportunity for considering different aspect of a problem under study.
I collected the information regarding this project through
I.
PRIMARY DATA
II.

SECONDARY DATA
Primary data is collected by the customers and Parag

retailers.
Secondary data is collected by retailer & personal interview.
Since our research is descriptive type, so research
design is also descriptive.

96
96

Sample design:
Sampling is a process of obtaining information about an
entire population by examining

only a

part of it.
As depicted below, I have taken 14 retailers and 30
customers as my sample size

Sample size:
RETAILER :

35

CUSTOMER:

110

Analytical tools: This study is based on collecting data by

using

well-connected

questionnaire

for

consumer

from

various demographic segments and also data is collected

using secondary sources. After collecting data it is arranged
in the form of tables from analysis and interpretation. Graphs
97
97

and percentage analysis are the main tools used for the
purpose of interpretation.

98
98

Areas where I made survey

Vipul khand

Indera nagar
Vikas khand
Sikanderbag
Hajratganj
Sadar Bazar
Jankipuram
Aliganj
Alambag
Mohanlalganj
Munsipullia
Telibag
Kaiserbag
Aminabad

99
99

LIMITATIONS OF THE STUDY

This survey although carried out with fullest possible efforts and
devotion, the limitation of the time, resources available and limited area
chose may lead to limited representation of the universe. The major
limitations from which the study suffers are as follows.
Time Constraint:Time factor has been a very big limitation in the research/survey like
this. The retailers have limited time so they sometimes refuse to answer the
questionnaire, also me as a surveyor has less time to conduct the survey. So
the size of the sample was restricted to Lucknow.
Biasness in Information:It was felt that retailers did not come up with true responses, in several cases
the retailers answered the questions with the help of other members and it
was mostly in case of less educated persons.
Financial Constraint:-

100
100

The financial aspect, which includes the traveling cost, cost of

administrating questionnaire and collection of data through other resources
was also costly.
Constraint regarding the use of technique:The deeper statistical techniques such as analysis using variance,
multiple regressions etc., could not be adopted due to the constraint of time
and efforts. So, simple statistical techniques were used to analyze the data.

Chapter 4
Data Interpretation
101
101

&
Graphical analysis

ANALYSIS AND INTERPRETATION OF DATA

I.

Which company's dairy product you use?

102
102

Interpretation:
55 percent consumers use Amul & 30 per cent used others and
last 15 percent consumer used Parag dairy products.

103
103

II.

Which of the product mostly you go for?

Interpretation:
Amul Ghee used consumer 32%, Parag Ghee used 20% and
others 48%. Milk used by consumer 28% Amul, 25% Parag and others
47%. Butter used by consumer 38% Amul, 12% Parag and 40%
others.

104
104

III.

Are you satisfied with your product?

Interpretation:

105
105

80% Consumer satisfied with their products and 20 % consumer

not satisfied their products.

RETAILER ANALYSIS
I.

In dairy products, which company product demand is higher?

106
106

Interpretation:
50per cent consumers demand for Amul dairy products & 30 per
cent consumer preferred others branded products and last 20 percent
consumer preferred Parag dairy products.

II.

Reason

107
107

Interpretation:
Amul dairy products Packing Style wise by consumer 80%, Parag preferred 20%.
Brand preferred by consumer e.g. 70% Amul and 30% Parag. Taste preferred by
consumer 68% Amul and 32% Parag. Price wise by consumer 60% Amul and 40% Parag.

108
108

III.

Which product of

Amul is preferred by customers?

Interpretation:
All consumers Preferred with their product and some consumer change product
Taste by consumer Amul 80% and no20% and Parag with Preferred 45% and not
Preferred 45%. Price by consumer Amul 30% and no70% and Parag with Preferred 40%
and not Preferred 60%. Packing by consumer Amul 25% and no75% and Parag with
Preferred 75% and not Preferred 25%. Quality wise Amul 15% and no 85% and Parag
with Preferred 60% and not Preferred 40%.
109
109

Chapter 5
Findings,
suggestions &
conclusion
110
110

INDINGS

1. "The company caters to the Indian palate, which is its primary driver of success".
In light of this statement, critically examine the marketing strategies adopted by
Amul & Parag Dairy to capture a sizeable market share of the organized Dairy
based food Product in India.

2. In the modern competitive scenario, promotion is a key element in the marketing

mix of a company. Critically analyze the promotion strategies adopted by Amul
India Pvt. Ltd. What other efforts must the company take to effectively promote
its products?

111
111

3. Dairy based Products contribute a major share of the revenues of Amul. Given the
competitive scenario in the Dairy Products in India, where competitors such as
Parag Dairy are introducing several innovative products, what measures must
Amul take to remain competitive? Explain in detail.

RECOMMENDATIONS
1.

Company should have feed back from market and

consumer about the Dairy based Products.

2.

The more Flavors of Amul & Parag Dairy Products should

become in the Market.

112
112

3.

The company provided some small schemes for retailer

also.

4.

The company gives some gifts for customer also.

5.

The company should associate itself with some games or

tournaments like football, cricket and so on.

6.

Company should provide sponsored seminar market

intelligence- Company should maintain the healthy relationship with
market distribution channel i.e. whole seller, distributor, retailers which
will boost the brand image.

7.

Company should check the market real position help the

trainees and other survey organizations.

8.

Company

should

launch

its

website

and

use

new

advertising channels; i.e.

Trailer in cinema halls
Hoardings
Spencer any education scholarship or games.

113
113

CONCLUSION
I have studied and analyzed the Dairy based food Product Market of
Amul & Parag Dairy Products at Lucknow on different aspects of the markets,
outlets, distribution & consumers. The survey was conducted in various areas
of Lucknow city with great enthusiasm. This project report Concludes that
Amul & Parag Dairy are easily available in various parts of Lucknow. The
Parag distribution channel of the Amul is much strong the most important
thing, which I feel to improve is the availability to retailers & consumers.
The retailers & consumers both promotes either Amul or Parag Dairy of
its brands for could be with regard to order processing, warehousing,
inventory management & transportation; besides that shop covering, exit
from the market by the salesmen glow shine board, schemes, incentives,
prizes, gifts, discount, returning of defective goods, proper supply should
be improved.
My job was to make marketing managers aware of all the problems so
that a proper course of action is required to be undertaken.

114
114

ANNEXURE

115
115

QUESTIONNAIRE

116
116

CUSTOMER:

ADDRESS:

NAME:

I.

INCOME:

Which company's dairy product you use

a) Parag

b) Amul

c) Others

II.

Which of the product mostly you go for?

a) Ghee

b) milk

c) Butter

d) cheese

III.

Are you satisfied with your product?

a) Yes

b) No

REASON

IV.

Why are you inclined to your product?

a) Quality

b)

brand

c) Price

d) taste

117
117

V.

Do you like any change in product

a) Yes

VI.

b) no

IN WHICH PARAMETER:

a) Taste
c) Packing style

VII.

b) price
d) quality

RETAILER:

ADDRESS:

NAME:

INCOME:

In dairy products, which company product demand is higher?

a) Amul

b) Parag dairy

c) others

VIII. Reason
a) Price

b) taste

118
118

c) Brand

d) packing style

IX. Which product of Amul is preferred by customers?

a) Ghee

b) milk

c) Cheese

d) butter

e) Any other

REASON
a) Price
c) Quality

b) taste
d) packing style

X. Which product of Parag dairy is preferred least by customers?

a) Ghee

b) milk

c) Cheese

d) butter

e) Any other

119
119

XI. Which product of amul is preferred least by customers?

a) Ghee
c) Cheese

b) milk
d) butter

e) Any other

XII. Which of Parag dairy is preferred least by customer?

a) Ghee
c) Cheese

b) milk
d) butter

e) Any other

XIII. Rank the preferences of consumers for Amul $ Parag dairy.

120
120

Amul

Parag dairy

Others

Ghee
Cheese
Dahi
Butter
Milk
Others

COMPARATIVE STUDY OF AMUL AND PARAG DAIRY PRODUCTS

Consumer
Preferences

Parag Dairy
Ghee

Milk

Butter

Amul
Cheese

Ghee

Milk

Butter

Chee
se

1. Price

High

High

High

High

Low

Low

Low

Low

2. Quality

High

High

High

High

Good

Good

Good

Good

3. Taste

Better

Better

Better

Better

Good

Good

Good

Good

4. Packing Style

Better

Better

Better

Better

Best

Best

Best

Best

121
121

BIBLIOGRAPHY

Market Research

- Luck and Rubin

Research Methodology

- C.R. Kothari

Product Management

Marketing Management

- Ramanuj Majumdar

- R.L. Vashney & S.L. Gupta

www.indiandairy.comwww.google.com

www.amul.com

www.Paragdairy.com

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