a project report chocolate amul (anand milk union ltd ... · pdf fileproducts have been in use...

K S School of Business Management

1

AProject reportOnCHOCOLATEOfAMUL (Anand Milk Union Ltd.)Submitted byGroup-DF.Y.MBASubmitted toK. S. School of Business ManagementGujarat University, Navarangpura,Ahmedabad-380009


2

“Life is like a box of chocolates.You never know what you’regoing to get.” (Forrest Gump)

GROUP MEMBERS


3

FACULTY: Ms. SHILPA GHODE

SIGNATURE:

DATE OF SUBMISSION: December 3,2009.

SRNO

ROLLNO

NAME OF THE STUDENT

1 1031 MODI RAVI

2 1032 MUKHI NURUNNISA

3 1033 NANAVATY KHUSHALI

4 1034 NISATRA MAYANK

5 1035 PANCHAL DIPALI

6 1036 PANCHAL PRASHANGI

7 1037 PANDYA PRASHA

8 1038 PARMAR ASMITA

9 1039 PARMAR MONALI

10 1040 PARMAR ROSHANI


4

INDEX

SRNO.

TOPIC PAGENO.

1 PREFACE

2 ACKNOLEDGEMENT

3 CHOCOLATE:

INTODUCTION HISTORY

4 AMUL:

INTRODUCTION HISTORY

5 GENERALINFORMATION

6 INPUT:

CAPITAL

LAND ANDBUILDING

PLANT LOCATIONAND LAYOUT

MACHINARY

FURNITURE


5

ROW MATERIAL

UTILITIES ANDFACILITIES

HIERARCHY OFMANAGEMENT

MAN POWER

7 PROCESS

CHOCOLATEFACTORY INDETAIL

PROCESS INDETAIL

8 OUTPUT:

STORAGE PACKAGING DISTRIBUTION

9 SWOT ANALYSIS

10 FUTURE PLANS

11

12

CONCLUSION

BIBILIOGRAPHY ANDWEBOGRAPHY

PREFACE


6

With immense pleasure we present this Productionand Operational Management project Chocolate Plant.

This project was initiated by our college K.S School ofbusiness management. The college provides studentswith not only fundamental knowledge of business andorganizational functions and activities, but also anexposure to strategic thinking of management.

We are management students and the main objectiveof this project was to expose us to the industrialenvironment so that we can gain real life knowledge ofvarious business practices which may not be given inbooks.

It is the visit through which we come to know what anindustry is and how it works. We learned aboutvarious departmental operations being performed inthe industry, which would, help us in the future whenwe will enter the industrial battlefield.

In today’s globalized world, where cutthroatcompetition is prevailing, theoretical knowledge is notsufficient. This approach has added special value toour studies.

ACKNOWLEDGEMENT


7

It has been an enriching experience for us whilevisiting AMUL Chocolate Plant for our first year projectwhich would not have been possible without thegoodwill and support of the people around. Asstudents of K.S. School of Business Management, wewould like to express our sincere thanks to all thosewho helped us during our project.

All members of the group have put in their efforts andcontributed to the successful completion of thisproject. Much that we would like to acknowledge theircontribution individually, the constraint of spacerestricts us from that.

However, we must place on record our profoundgratitude to

Mr. Rahul Kumar, the Managing Director of AMUL,

Mr. J. K. Joshi, Manager of Administration whopermitted us to visit the chocolate plant of AMUL atMOGAR.

Mr. SS Sundaran, who helped us at every stepwhenever needed

Mr. Dalveer Singh, Production in charge and

Mr. H.B Ramgadhia of chocolate plant at MOGAR.


8

We heartily thank Dr. Sarala Achuthan (Director ofK.S. School of Business Management) for extendingher unstinting support.

Last but not the least we thank Ms. Shilpa Ghode,our faculty guide for her guidance at each and everystage of this project and the counsel we received. Weare extremely grateful for her meticulous andpainstaking attention to details while finalizing theproject and the encouragement and inspiration wereceived throughout the project.


9

CHOCOLATE:INTRODUCTION& HISTORY


10

INTRODUCTION

o We tend to think of chocolate as a sweet candycreated during modern times. But actually,chocolate dates back to the ancient peoples ofMesoamerica who drank chocolate as a bitterbeverage.

o For these people chocolate wasn’t just a favoritefood—it also played an important role in theirreligious and social lives.

o Chocolate lovers all over the world have reasonsto crave chocolates. The flavor and feelingchocolate gives as it melts inside the mouthmakes it a favorite comfort food.

o Some people buy chocolates if they want a quicksugar fix.

o Some eat dark chocolate for the health benefits.


11

HISTORY• Chocolate begins with a

bean ... a cacao bean. Ithas been mashed andeaten for centuries. Thehistory of chocolate spansfrom 200 B.C. to thepresent, encompassingmany nations and peoples of our world.

• The scientific name of the cacao tree's fruit is"Theobroma Cacao" which means "food of thegods." In fact, the cacao bean was worshipped asan idol by the Mayan Indians over 2,000 yearsago. In 1519, Hernando Cortez tasted"Cacahuatt," a drink enjoyedby Montezuma II, the lastAztec emperor. Cortezobserved that the Aztecstreated cacao beans, used tomake the drink, as pricelesstreasures. He subsequentlybrought the beans back toSpain where the chocolate drink was made andthen heated with added sweeteners. Its formulawas kept a secret to be enjoyed by nobility.Eventually, the secret was revealed and thedrink's fame spread to other lands.


12

By the mid-1600s, the chocolatedrink had gained widespreadpopularity in France. Oneenterprising Frenchman openedthe first hot chocolate shop inLondon. By the 1700s, chocolatehouses were as prominent ascoffee houses in England.

• The New World's first chocolatefactory opened in 1765 in theMassachusetts Bay Colony. Sixty years later,Conrad Van Houten, a Dutch chemist, invented acocoa press that enabled confectioners to makechocolate candy by mixing cocoa butter with finelyground sugar.

• In 1876, Daniel Peter, a Swiss candymaker,developed milk chocolate by adding condensedmilk to chocolate liquor - the nonalcoholic by-product of the cocoa bean's inner meat.

The Swiss also gave the chocolate asmoother texture through a process called"conching." The name was derived from a Greekterm meaning "sea shell" and refered to the shapeof old mixing vats where particles in the chocolatemixture were reduced to a fine texture.


13

AMUL:INTRODUCTION& HISTORY


14

INTRODUCTION

The brand name Amul means “AMULYA”. This wordderived from the Sanskrit word “AMULYA” whichmeans “PRICELESS”. A quality control expert inAnand suggested the brand name “AMUL”. Amulproducts have been in use in millions of homes since1946. Amul Butter, Amul Milk Powder, Amul Ghee,Amulspray, Amul Cheese, Amul Chocolates, AmulShrikhand, Amul Ice cream, Nutramul, Amul Milk andAmulya have made Amul a leading food brand in India.(The total sale is Rs. 6 billion in 2005). Today Amul isa symbol of many things like of the high-qualityproducts sold at reasonable prices, of the genesis of avast co-operative network, of the triumph ofindigenous technology, of the marketing savvy of afarmers' organization. And have a proven model fordairy development (Generally known as“ANANDPATTERN”).

In the year 1946 the first milk unionwas established. This union was started with 250liters of milk per day. In the year 1955 AMUL wasestablished. In the year 1946 the union was known asKAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’UNION. This union selected the brand name AMUL in1955.


15

HISTORYIn early 40’s , the main sources of earning for the

farmers of Kaira district were farming and selling ofmilk. That time there was high demand for milk inBombay. The main supplier of the milk was Polsondairy limited, which was a privately owned companyand held monopoly over the supply of milk at Bombayfrom the Kaira district. This system leads toexploitation of poor and illiterates’ farmers by theprivate traders. The traders used to beside the pricesof milk and the farmers were forced to accept itwithout uttering a single word.

However, when the exploitation becameintolerable, the farmers were frustrated. Theycollectively appealed to Sardar Vallabhbhai Patel, whoadvised the farmers to sell the milk on their own byestablishing a co-operative union, instead of supplyingmilk to private traders. Sardar Patel sent the farmersto Shri Morarji Desai in order to gain his co-operationand help. Shri Desai held a meeting at Samarkhavillage near Anand, on 4th January 1946. He advisedthe farmers to form a society for collection of the milk.

The govt. did not seem to help farmers by anymeans. It gave negative response by turning down thedemand for the milk. The farmers of Kaira districtwent on a milk strike. For 15 whole days not a singledrop of milk was sold to the traders. As a result theBombay milk scheme was severely affected.


16

The milk commissioner of Bombay then visitedAnand to assess the situation. Having seemed thecondition, he decided to fulfill the farmers demand.

Shree tribhuvandas Pater & Dr. Verghese Kurien


17

Thus their cooperative unions were forced at thevillage and district level to collect and sell milk on acooperative basis, without the intervention ofGovernment. Mr. Verghese Kurien showed maininterest in establishing union who was supported byShri Tribhuvandas Patel who lead the farmers informing the Co-operative unions at the village level.The Kaira district milk producers union was thusestablished in ANAND and was registered formally on14th December 1946. Since farmers sold all the milk inAnand through a co-operative union, it was commonlyresolved to sell the milk under the brand name AMUL.

Amul is the largest food brand in India andworld's Largest Pouched Milk Brand with anannual turnover of US $1050 million (2006-07).AMUL started chocolate production on October, 1973in FOOD COMPLEX at MOGAR.


18

General Information

Brand Name : AMUL [An ISO 22000:2005 &9001:2000-HACCP Certified Co-operative]

Name of theUnit : AMUL (Anand Milk Union Ltd.)-

Chocolate PlantForm of

Organization : Co-operative Society

ManagingDirector : Mr. Rahulkumar Shrivastav

Competitors : National- Cadbury,International- Cadbury, Hershey

CorporateOffice : Kaira District Co-operative Milk

Producers Union Ltd.Amul Dairy, MogarDist- AnandPin- 388340

Contact at : Tele- 02692-256124/225443FAX: 02692-240225Email- [email protected]


19

Website- www.amul.com

INPUT


20

Capital

Total capital : 75 lacks

Sources :

Federation gives amul dairy the amount decided by theunion. Fix deposit of society is major source of finance. Interest of fix deposit of bank like SBI, BOB, GEB Bond,

and Sardar Sarovar Bond etc. are also one of the sources offinance. Share Capital of AMUL (Shares of AMUL is not for public

but only for the society members) Net profit of AMUL during the year 2007 – 2008 is 451.51

lack.

Bankers :

U.T.I bank - For the salary related Transactions. Kaira District co – operative bank - For the payment of

society. State Bank of India. Bank of Baroda. Bank of Maharastra. State Bank of Saurastra. Corporation Bank.

The Chocolate plant which is a part of the AmulFOOD COMPLEX situated at Mogar. So it isfinancially supported by AMUL dairy.


21

Land & Building

Area : 28 acres

Face value : The Land is gift from the farmers ofthat district

Market value : 45 lacs per acre

Building : Production building

: Canteen

: Human resource office

: Storage facility

Total value of Building is approx 50 lacs.

(depreciation – 10%)


22

Plant Layout

It refers to the scientific arrangement of Machines,tools and other various departments to secure smoothconduct of manufacturing process.

Factors which determine the plant layout:o Objective of businesso Managerial Policieso Types of machineso Quantity and type of producto Production processo Availability of raw materialso Storage facilitieso Scope of Future Development

PLANT LOCATIONPlant location refers to the area where the plant

operate to produce goods and services.

Plant location comprises:

o Selection of a larger general area such as states,districts or towns ,where production anddistribution activities are carried on.

o Selection of a site which is smaller area within thegeneral area for setting up a factory.


23

PLANT LAYOUT OF CHOCOLATEFACTORY AT MOGAR, ANAND

PACKAGING

PRODUCTION

G

O

D

O

W

N

GARDEN

INFORMATIONCENTRE GATE

AMULPARLER


24

Machinery used in ChocolateManufacturing

o ROASTERo WINOVERo COCOA PRESSo GRINDERo MIXERo REFINEREEo TEMPERERo CAVEMIL

(Around 15% depreciation is calculated onmachines according to their types)


25

Line Lay Out of all machines

Dumping zone

Mixing

Refining

Conching


26

MACHINERY

oROASTER

Description

INPUT Cocoa beans

OUTPUT Dried cocoa beans

CAPACITY 100 tons

TEMPARATURE 235 degrees

USE Makes the beans easily refinables


27

oWINNOWER

Description

INPUT Dried cocoa beans

OUTPUT Cocoa nibs

CAPACITY 150 kg

USE Breaks beans into small pieces


28

oCOCOAPRESS

Description

INPUT Cocoa nibs

OUTPUT Cocoa cake

CAPACITY 4 to 10 tons

USE Separates cocoa mass into cocoa cake andcocoa butter


29

oGRINDER

Description

INPUT Cocoa cake

OUTPUT Cocoa powder

USE Grinds cocoa cake and turns into powder


30

oMIXER

Description

INPUT Solid cocoa powder, cocoa butter,sugar

OUTPUT Liquid cocoa

CAPACITY 500 to 1500 kg.

USE Makes thick liquid chocolate


31

oREFINIG MACHINE

Description

INPUT Liquid chocolate

OUTPUT Smooth liquid chocolate

CAPACITY 700 to 1200 kg

USE Smoothening of liquid chocolate


32

o TEMPERATURING

Description

CAPACITY 600 to 6000 kg

USE To regulate chocolate syrup temperature


33

oCAVEMIL

Description

INPUT Cocoa liquid

OUTPUT Molded chocolate

USE The molding plant which gives a particularshape to chocolate liquid


34

Furniture

Types of furniture in factory :Type Units Cost(Rs.)

Tables 6 15,000

Sofa-set 2 26,000

Computers 5 75,000

Exhaust fans 6 6,000

Air conditions 3 66,000

The depreciation on each computer is 60% and onother furniture is 10%.


35

RAW MATERIALS

o COCOABEANS

The cocoa-bean -- theheart of the sweetestdelicacy in the world --is bitter!


35

RAW MATERIALS

o COCOABEANS



35

RAW MATERIALS

o COCOABEANS



36

There are two quite different basic classifications ofcocoa, under which practically all varieties can becategorized Criollo and Forastero cocoas. In India cocobeans are grown in South India.

Suppliers of cocoa beans are majorly from Karnataka,Tamilnadu, Kerala and also Malaysia

Transportation : Amul has its own transport vehiclesfor the purpose of bringing in coco beans


37

o SugarAmul obtains sugar from local suppliers in bulk as

sugar is an essential in many of their products.

The required amount of sugar for production ofchocolate is obtained from Amul dairy which is near to thechocolate plant.

o Cocoa Butter

Cocoa butter, also called theobroma oil ortheobroma cacao, is a pale-yellow, pure edible vegetable fatextracted from the cacao bean. It is used to makechocolate, pharmaceuticals, ointments, and toiletries.

Cocoa butter has a mild chocolate flavor andaroma.

Cocoa beans are ground intochocolate liquor and pressed toseparate the cocoa butter fromthe cocoa solids. Cocoa buttercan alternately be extracted fromwhole beans by the bromaprocess. It is most oftendeodorized to remove its strongand undesirable taste.

Milk and sugar are added to


38

Utilities and Facilities

Power Supply : As uninterrupted power supply is oneof the basic necessities for production Amul is suppliednon-staggering electricity throughout the day byG.E.B(Gujarat Electricity Board)

The electricity consumption is around Rs. 20 lack permonth.


39

Water Supply : Water supply is as good as powersupply. The plant is supplied water by local ‘Nagarpalika’

Government Policies : As far as governmentpolicies are concerned, Amul has been lucky from the dayit was established. Various subsidies are given to Amul bythe government.

Hierarchy of management


40

Man Power

Number of Employees

WorkerType A

WorkerType B


40

Man Power

Number of Employees

ManagingDirector

GeneralManager

ProductionManager

GeneralExecutive

SeniorOfficer

SeniorTechnician

WorkerType B

WorkerType C

WorkerType D

MarketingManager

FinanceManager


40

Man Power

Number of Employees

WorkerType D

FinanceManager


41

o There are around 300 workers.

o 60 workers are permanent and others are workingtemporarily and some of them are working oncontractual basis.

Training and Development

o This department is not there, but workers arerecruited and trained by human resource departmentand by their seniors respectively.

Working Hours

o Workers are working in 3 shifts of 8 hours each.

o Recess time is 1 hour according to the shift.

Salary

Posts Salaries(Rs.)(Approx.)Manager 22,000


42

Executives 15,000Officers 11,000Technicians 9,000Workers(least salary) 7,000

Canteen facility

o All the employees of AMUL get tea and coffee 40 paisaper cup, dry fast food at Rs. 8 per kg. and lunch dishat Rs. 5 per dish.

o For that they provide coupan to their employeecontaining coupan of 40 paisa, Rs. 1.20, Rs. 5, Rs. 8.

o They have a contract with shop-“Khati-Mithi”

Bonus

o Workers are given attractive incentives asencouragement to do overtime .


43

o 60% bonus is given to the workers for their good work.

o They give the bonus to the workers and officersbefore Diwali.

o Production Bonus is also given to employees.

Safety

o AMUL also provide Hand Gloves, shoes, Apron andother things needed for the safety purpose of workers.

Uniform

o AMUL gives 3 pairs of uniform every 2 year to the


44

workers.

o They also provide free washing facility of uniform. Forthat workers have to leave their uniform for wash andcollect in 2 days.


45

PROCESS


46


47

ProcessCocoa trees are native to South America, and they

have a very long history of cultivation in Central America,but these days cocoa is grown in more than 40 countrieslocated on or near the equator. Cocoa beans grow in pods,with 20 to 60 beans per pod. The number of pods producedby each tree depends on several factors such as the varietyof cocoa being grown, the skill of the farmer and theamount of chemical inputs that are used. But on anaverage, each tree produces about 75 pods per year. 75pods will yield approximately 3kg of dried, saleable cocoabeans.

After the cocoa pods are cut from the tree, the freshbeans must be fermented for up to a week in order todevelop so called “aroma precursors”, via a series ofchemical reactions. To ferment properly, the beans must beplaced in a large enough pile to prevent them from dryingout. Once the beans have been adequately fermented, theymust be dried in order to halt the fermentation process,and remove excess moisture. Proper drying helps preventthe beans from rotting or going moldy.

o CLEANING :

In manufacturing of chocolate first, the beansmust be clean of foreign matter such as dust, just fibers,sticks and stones. Iron debris is also cleaned up bymagnets.


48

o ROASTING :

After this, roasting of cocoa beans takes place.Roasting process is done at 180 degree centigradetemperature for almost 30 min.

Roasting accomplishes a number ofthings :

It helps separate the outer husk from the inner beanand makes cracking and winnowing much easier.

It also virtually sterilizes the cocoa beans. This israther important as the conditions in which cocoabeans are fermented are naturally full of bacteria,fungi and molds. There is a quantifiable risk of


49

infection from unroasted cocoa bean. Roasting reducesthis risk.

Various chemical reactions occur when cocoa beansare roasted and proper roasting is integral to goodflavored chocolate.

oWINNOWING :

The goal in winnowing is to crack the cocabeans into pieces and then separate the husk from the nib.Top make chocolate this husk needs to be fully removed.Thus husk is send to cattle field and it is used as food ofanimals. Running the roasted cocoa bean through awinnowing machine to just crack the cocoa beans into largepieces (called nibs) and then blowing husk away is anotheroption.


50

o GRINDING :

After winnowing, next step in chocolate making is togrind them until they liquefy into cocoa liquor. This liquidis called cocoa mass. The temperature of this cocoa mass is120 degrees centigrade. Then the cocoa press machine isused for separating cocoa mass into cocoa butter (which isliquid at an elevated temperature) and solid cakes, whichcan be processed into cocoa powder later. Generally, ahydraulic cylinder is provided, to make cocoa cake. Duringa pressure cycle the pots are filled with heated cocoa massvia supply lines and subsequently they are compressed.The cocoa butter is there by pressed out through the filtersand discharged. In this stage of grinding, cocoa butter andsugar is mixed in the liquid in proportionality.


51

o CONCHING:

Conching is a modern process used in makingchocolate with characteristic taste, smell and texture.Conching process is done at 80 degree centigrade. Refiningis the process of reducing the particle sizes of both cocoasolids and sugar crystals in somewhere 20-30 microns.Your tongue loses its ability to determine texture andgrittiness at around 50 microns. Under about 15 micronsthe chocolate can get gummy. So refining is a tough job.

o TEMPERING:

Chocolate tempering is needed because it is whatgives the chocolate bars finished glossy, shiny appearance.At last in cavemil, the molding of chocolate liquid is done.Here temperature regulating is very important. Thus, thechocolate is made of any shape you want by this process.


52

OUTPUT


53

Storage

o The Plant has very good storage facilities.o The storage capacity of godown is 600 tones.o Chocolates can be stored in the godown for maximum

2 days after that it has to be delivered.


54

Packaging

o In a production process packaging is equally importantlike any other function of production.

o In AMUL chocolate plant, there is an individualpackaging department.

o Packaging department is fully hygienic. All workers aregiven proper uniforms and caps in order to maintaintheir health and cleanliness.

o There is a fully automatic packing machine.o After packaging, the products are taken to the

distributors throughout the world by their ownvehicles.


55

Distribution

o As the plant is a part of a cooperative company namedAMUL it has its own vehicles for distribution ofchocolates.o The chocolates are distributed in various markets by

AMUL.o Distribution job is managed byGujarat Co-operative

Milk Marketing Federation Ltd. (GCMMF).o AMUL Dairy and chocolate plant does the production.o Amul chocolate has a worldwide market.o As we all know amul is the most loved brand in

Gujarat.o It is also popular in India and in foreign markets like

Singapore, Dubai, Kuwait and other Gulf countries.


56

SWOT Analysis

Strengths

o Easy availability of water, power, etc.o Availability of raw materials.o Proximity to market.o Infrastructure availability.o Easy availability of transportation.

o Easy availability of skilled and unskilled labour atcheaper rate.o Big support of villagers of Kheda and Anand.o As AMUL is a very big brand name of Asia, it is easy to

sell chocolates under its brand name.


57

Weakness

o More transportation cost of Raw materials.o Less capital investment as compared to big

competitors.

Opportunities

o Growing Populationo High standard of livingo Because of trends preferences and culture, chocolate

has become part of social functions like birthdayparties, marriages, etc.

o Rural population is becoming potential customers ofchocolate due to eye catching advertisements.

Threats

o Change is needed according to trend and customerspreferences.


58

o Amul has number of competitors like Nestle, Cadburyetc. Amul chocolate has not those much goodadvertising strategies to win over its competitors.

Future Plans

o The future of any institution is a subject whichrequires constant attention. The future is perceived isone embroiled with hardship.

o Hardship may surface in many forms as globaldemands and changes, foreign affiliations,competition, liberalization, changing values, urbanshifting etc. are some of them to name which weforesee and union has to cope with these.

o In future union should be adopt latest technology.Union should not sit foremost quality of product andco-placement with existing product range but think inmore innovative way.

o To stay ahead research and development unit has tobest lengthened. Union also thinks of price to sustainleading position in the market.

o Prices will have to remain steady and to so unionshould concentrate on reducing and maintenanceexpanse rather than proposing increasing product


59

price.o Very important goals are improvement of farmers and

increase production capacity by 5 times.

ConclusionAMUL is known as Asia’s biggest producer of milk

and milk products so we have been lucky that we couldwork upon a product-CHOCOLATE, of this reputed brand.

We are happy to have a great knowledge aboutchocolate production process. We all were surprised to seethat one chocolate that we eat in just one minute or lesserthan that, is passed through several procedures to get aproper taste as well as shape.

Moreover, the project taught us how to deal withdifferent people in different situation. It also helped us indeveloping our management skills.

Beside giving us exposure to real business world,where it is difficult to change thoughts into actions, thesituations during the project taught us a quote given byMARTIN LUTHER KING, that

“The ultimate measure of a man is notwhere he stands in moments of comfort and


60

convenience, but where he stands at the timeof challenge and controversy.”

Bibliography

o Principles of Management by L.M.Prasad, Publisher-Sultan Chand & Sons, First edition 2004

o Principles of Management by P. C. Tripathi & P. N.Reddy, Publishers- Tata McGRAWHILL, Third edition2006

Webographyo www.amul.com

o www.wikipedia.com

o www.carleandmontari.com

o www.cadbury.com

a project report chocolate amul (anand milk union ltd ... · pdf fileproducts have been in use...

Documents