Professional Documents
Culture Documents
2007-2008
1
Amul
“The taste of India”
(Accredited By N.B.A, AICTE New Delhi & ISO 9001:2000)
Website: http://www.ssgmce.org
Index
Sr.No CONTENT Page No
1. Acknowledgement 3
2. Introduction 4
4. Objective of project 10
8. Findings 20
9. Recommendations 21
10. Conclusion 22
11. Bibliography 23
12. Appendix 24
2
Amul
“The taste of India”
ACKNOWLEDGEMENT
3
Amul
“The taste of India”
MBA (Finance)
Introduction
AMUL is based in Anand town of Gujarat and has been a sterling example of a co-
operative organization's success in the long term. It is one of the best examples of co-
operative achievement in the developing world. "Anyone who has seen ... the dairy
cooperatives in the state of Gujarat, especially the highly successful one known as
AMUL, will naturally wonder what combination of influences and incentives is
needed to multiply such a model a thousand times over in developing regions
everywhere." The Amul Pattern has established itself as a uniquely appropriate
model for rural development. Amul has spurred the White Revolution of India, which
has made India the largest producer of milk and milk products in the world. It is also
the world's biggest vegetarian cheese brand .
Amul is the largest food brand in India and world's Largest Pouched Milk Brand with
an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million
producer members with milk collection average of 10.16 million litres per day.
Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA,
Bangladesh, Australia, China, Singapore, Hong Kong and a few South African
countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has
fresh plans of flooding the Japanese markets. Other potential markets being considered
include Sri Lanka.
Amul was formally registered on December 14, 1946. The brand name Amul, sourced
from the Sanskrit word Amoolya, means priceless. It was suggested by a quality
control expert in Anand. Some cite the origin as an acronym to (Anand Milk
Producers Union Limited).
4
Amul
“The taste of India”
company profile
CEO B M Byas
Type Cooperative
Founded 1946
Headquarters Anand, India
Chairman, Gujarat Co-operative Milk Marketing Federation
Key people
Ltd. (GCMMF)
Industry Dairy
Revenue Template:Revenue$1 billion USD (in 2006-07)
Employees 2.41 million milk producers
Website www.amul.com
Total turnover 5,000 crore plus in end of March 2008.
India ranked nowhere amongst milk producing countries in the world in 1946.
Gradually, the realization dawned on the farmers with inspiration from then nationalist
leaders Sardar Vallabhbhai Patel (who later became the first Home Minister of free
India) and Morarji Desai (who later become the Prime Minister of India) and local
farmer, freedom fighter and social worker Tribhovandas Patel, that the exploitation
by the trader could be checked only if they marketed their milk themselves. Amul was
the result of the realization that they could pool up their milk and work as a
cooperative.
Products :Amul's product range includes milk powders, milk, butter, ghee, cheese,
curd, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi,
Nutramul brand and others. In January 2006, Amul plans to launch India's first sports
drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's
Gatorade.
Amul Gold 12*1 liters (Full Cream)-G1LT & 24*500ml (Full Cream)-
G500.
Amul Taaza 12*1 liters(Full cream) & 24*500ml(Full cream).
Amul double toned milk 500ml-T500.
5
Amul
“The taste of India”
The packets of Milk are transported in crates, which are also kept for
accounting purposes, as these crates are to be returned to plant for further
supply.
So the two type of sales takes place ie.primary sales and secondary sales
through different Mktg channels.
6
Amul
“The taste of India”
The ADA’s distribution agents are the co.FSR’S (that is field representative staff) who
will be handling these ADA’s and will be taking their daily demand , which will be
reported to the plants.
The processes that are to be studied are: Raising Invoice, Milk loading factor, Route
Mapping, Registration of transportation vehicles, Demand taking process, Banking
processes etc.
7
Amul
“The taste of India”
3. Some times plant gives the right dispatch of crate but transporter does not returned
the right number of crate .
4. Some times mistake is happened by the employee .Due to which crate is not tally
and ADA’s have to face problem and there is a dispute between company and
ADA’s.
• The parties are liable to return the crates within 7days of supply or the amount
of Rs.150 per crate as a penalty will be deducted from their account without
any further notice.
• The ultimatum is given by the company regarding the crate that you have to
returned the crate which is shortage .Otherwise we will charge penalty and we
will cut the amount from the transportation bill.
The freight bills are maintained on the monthly basis for each transporter cum
ADA’s as told to me by the concerned employee (Mr. Somveer).After the
processes of manufacturing and transportation in the respective month the plant
issues the challans, are some that of crate accounting only the information from the
challans is different .The process of freight accounting goes like.
• There are three plant in Manesar, Goga and Kwality. These transportation
charges for trucks and vehicles are measured keeping in mind the vehicle
capacity and the distance on which t is supplying milk.
• The transportation charges for the vehicles increases according to the
distance from the plants to their destination supply to various distributors
.i.e. The first leg transportation.
• These first leg transportation cost goes like 0-100 km its .31 paisa .101-125
km its .32 paisa and so on. Earlier these rates were .30paise for first 100km
which has increased from past 2years.
• The next thing in freight bill processing is to keep a check over the
capacity of the vehicles. The various capacities of the vehicles are:
• Usually these capacity vans are used, but these capacities can
sometimes be increase also. These vans are insulated to avoid the milk
spoilage, which maintains the temperature of milk.
• The important thing to be considered while freight bill processing is the
capacity of crate. So in this case 1 crate =12 liter which earlier was 10
8
Amul
“The taste of India”
litres.These crates are to be returned next day back to the plant
otherwise deduction will be charged.
• While dispatching the milk the plant issues the challans, which gives
the Details of no. of crates dispatched under which vehicle no. under
which ADA dies that vehicle belongs etc.
• At the end of the month these are used to make the freight bills. In case
of incomplete challans or in the absence of registration form of the
vehicles the freight bill is not processed and the payment is not made to
the party.
• All these transactions take place by clearing house function issuing the
debit and the credit notes in the name of the party.
9
Amul
“The taste of India”
To check all the high transportation cost and checking out the loop holes in
transportation cost.
10
Amul
“The taste of India”
REASERCH METHEDOLOGY
METHODOLOGY:
Market Research
Market research can be defined as the systematic design, collection, analysis and
reporting of data and findings relevant to specific marketing situation facing by the
company.
Philip Kotler.
1. Define the problem, the decision alternatives and the research objectives:
Marketing management must be careful not to define the problem too broadly or too
narrowly for the marketing research. Once the problem is identified then it is tried to
find out the optimum solution.
11
Amul
“The taste of India”
The second stage of marketing research calls for developing the efficient plan for
gathering the needed information. The marketing manager needs to know the cost of
the research plan before approving it. Designing a research plan calls for decisions on
the data sources, research approaches, research instrument, sampling plan and contact
methods.
The data collection phase of marketing research is generally the most expensive and
the most prone to error. In the case of surveys, four major problems arise. Some
respondents will not be at home and must be contacted again or replaced. Other
respondents will refuse to co-operate. Still others will give biased or dishonest
answers. Finally, some interviewers will be biased or dishonest getting the right
respondent is critical.
The next-to-last step in the process is to extract findings from the collected data. The
researcher tabulates the data and develops frequency distributions. Average and majors
of dispersion are computed for the major variables. The researcher will also apply
some advanced statistical techniques and decision models in the hope of discovering
additional finding.
As the last step the researcher presents the findings. The researcher should present
findings that are relevant to the major marketing decision facing management.
12
Amul
“The taste of India”
Primary data is original data collected by the researcher’s first hand. It can be
collected through observational studies, market surveys or experiments. It is a task that
demand technical expertise. If a data has been collected in a systematic manner its
suitability will be positive.
Basically the research instrument used for collecting primary data from respondents is
a Questionnaire, Observation, and Survey.
Secondary data
It is one, which has been already collected by a source other than the present
investigator. It is not organize. The investigator makes use of data collected by other
agency. Usually the last of gathering secondary data is much lower than the cost of
organizing primary data
After collecting the data from the various sources it is of utmost important to classify
the data clinically to facilitate the analysis and interpretation of data collected. So
presentation of data, in meaningful way is not an art and goes a long way to help the
researcher to carry out these empirical findings.
13
Amul
“The taste of India”
a. Tabulation
b. Bar Chart
c. Pie Charts
Research Methodology used in this Project
Data sources
Primary data: -
I have collected primary data through structured questionnaire, internet & through
other companies websites.
Secondary Data:-
I have collected secondary data from documents available in the company.
DATA INTERPRETATION:-
Vehicle type and vehicle capacity:
(Table No.1)
14
Amul
“The taste of India”
(Table No.2)
6000000
5800000
Value in Rs.
5600000
5400000
5200000
5000000
4800000
January February March April
Month
(Figure No.1)
In four month the highest cost which is paid by the Amul is in April and the lowest
cost is in February. The cost is increasing since three month .Because of the no of
ADA is increasing every month. In the month of February the demand of Milk was
less .Due to which the transportation cost is less.
15
Amul
“The taste of India”
18500000
18000000
17500000
17000000
No. of Crates 16500000
16000000 Series1
15500000
15000000
14500000
January February March April
Months
(Figure No.2)
The demand of crate is increasing since three month. The highest demand is in April
month and the lowest demand is in February month. One crate is equal to twelve liter
milk. There can be something difference in the demand and dispatch.
16
Amul
“The taste of India”
LOADER
6%
9% INSURANCE
1% 31% TYRE
4%
0%
7% MCD,HARYANA,UP
3% 17%
9% MOBILE EXP.
POLICE EXP.
The highest cost which is paid by the transporter are Diesel, Driver, & MCD, Haryana,
UP .And the lowest cost is Mobile Exp, RTO Tax for fitness pollution & permit, and
Insurance. There will be only one loader.
17
Amul
“The taste of India”
DISEL
DRIVER
LOADER
7% INSURANCE
9%
1% 34%
TYRE
11%
RTO TAX FOR FITNESS POLLUTION &
PERMIT
3%
0% 9% MCD,HARYANA,UP
9%
0% 3%
14%
MOBILE EXP.
POLICE EXP.
MAINTENANCE
(Figure No.4)
The highest cost is Diesel cost and the lowest cost is Mobile Exp for 100km.There is a
two loader. Due to which the Exp of loader is increasing.
18
Amul
“The taste of India”
7%
DISEL
8%
DRIVER
1% 31% LOADER
INSURANCE
10% TYRE
3%
0%
0% MCD,HARYANA,UP
9% 8% MOBILE EXP.
POLICE EXP.
3% MAINTENANCE
20%
(Figure No.5)
This is very heavy vehicle with less mileage but capacity is more than these two
vehicle (Tata407, Tata709).Thatswhy the cost of Diesel & Loader is high and the
lowest cost is Mobile Exp.
19
Amul
“The taste of India”
FINDINGS:
The rule & regulation of Amul as compare to mother dairy is very strict.
Regarding the crate and check.
Many ADA’s are such who gives the fright bill / challan sheet after five days due
to which the problem is faced by the company regarding the tally of demand
dispatch of crate and prepared of freight bill.
The highest freight bill is given to the TATA 407 vehicle and the capacity is three
hundred crate.
Now sales is in increasing order and due to which the freight of transport is also
increasing .Because the demand of Milk is increasing and also the (8-10) ADA’s
are increasing per month.
The main part of transportation cost is Diesel cost, Driver cost, Loader cost and
the tire exp.
The freight rate of transport was .29 paisa per liter in November 2003 Due to
increase in diesel prices the rate of freight is increasing year by year and in 2005
this was .31 paisa per liter for all the vehicle. In June 2008 the diesel prices
increased by approx 16% due to which price revision has done by the Amul
.Now the proposal of freight for the vehicle Tata 407 & Tata 709 are .32 paisa
per liter and .35 per liter for EIC 1109.We are waiting for approved this proposal.
There is a very good ADA who is from Narela ( Narendra Singh ) . He has made
goodwill regarding the crate received and return from the plant .There is no
shortage of crate in any month .He has his own vehicle his demand is approx
9500 crate per month.
20
Amul
“The taste of India”
RECOMMENDATION:
Since the operating cost for Tata 407 is higher than other vehicle used by Amul
/ADA;s .It has been seen that the transportation cost of EIC 1109 is lower.
Thatswhy it can be recommended to use EIC 1109 in comparison of Tata407.
Capacity planning –The capacity of which vehicle is more or less . The demand
of which ADA is more or less. If the demand of ADA is 1000 crate. And the
vehicle Tata 407 and Tata 709 is going then it is better to supply of milk by EIC
1109 vehicle. Which can fulfill the demand of ADA’s?
In operating cost there should be control on police exp .due to which per trip
cost can be reduce.
More economic vehicle should be used for the transportation to minimize the
fuel cost.
There should be good relationship between ADA’s and diver of transport due to
which there will be no any shortage of crate. Driver must be honest and
educated.
There should be a responsible person for dispatch of crate and analytical minded
person for the counting and tally the dispatch and returned of crate.
21
Amul
“The taste of India”
CONCLUSION:
In conclusion I can say that the transportation cost is increasing due to the increase
in the price of diesel. In this project I have collect most of the data from the
company office. I have taken the cost of four month (January to April).In which I
show that the operating cost of Tata407 is more than the other vehicle.
22
Amul
“The taste of India”
BIBLIOGRAPHY
BOOKS:
1.COST ACCOUNTING
By- M.L.AGRAWAL (6th)
Himalaya Publishing House
2.FINANCIAL MANAGEMENT
By- KHAN AND JAIN (5th)
Himalaya Publishing House
3. MARKETING MANAGEMENT
By- PHILIP KOTLAR
Tata McGraw-Hill
WEBSITES:
1. www.Amul.com
2. www.google.com
23
Amul
“The taste of India”
APPENDIX:
QUESTIONNAIRE
Dear Sir / Madam,
I am conducting a Market survey on Transportation cost of Milk supply
in Delhi MMO. (A Study of ADA’s transportation cost). It is a part of my project
work being carried under Gujarat co-operative Milk Marketing federation ltd,
Janakpuri, Delhi MMO. It would be kind of you if you could answer the
following questionnaire and help me in completing my project work successfully.
Neeraj Kumar
Jha
MBA
(Finance)
Name of the distributor:
Area covered:
No of retailers:
Contact No:
Name of the FSR:
Average sales:
1) Which transportation vehicle do you own for Milk supply and what is the
maximum capacity the vehicle can hold’?
2) How much do you pay to your driver and loader ?
3) What is the average of the vehicle you use for milk transportation?
4) What are your diesel expenses monthly for the vehicle(s) you use?
5) How much does it charge you for the insurance of the vehicle?
6) What are the current roads taxes charges, RTO and permit for
transportation charges for your vehicle?
7) How much do you spend on the maintenance of the vehicle?
8) How much toll tax are you paying for your vehicle?
9) Are you paying something to police?
10) What are your mobile expenses related to the supply?
11) What flows do you see in Amul?
24
Amul
“The taste of India”
12) Any suggestion for the improvement in Amul services?
25