Date: 28/03/2013

Prepared By:

Paramveer Patel

Sem ll Div. A

Roll no: 06

A REPORT ON AN INDUSTRIAL VISIT TO AMUL DAIRY ANAND

SUBJECT: PRODUCTION &

OPERATION MANAGEMENT

PROF. RICHA PANDIT

PREFACE AMUL is the pride not only of Gujarat but also of entire country.

I have great pleasure in preparing this project of such organization.

A person aspiring to enter in management profession must have

practical knowledge of the subject. The objective of industrial visit is

to develop practical knowledge in student as a supplement to the

theoretical study of management in general as well as industrial. It

provides foundation to students intending to pursue a career in this

field. The industrial visit is the most exciting experience of the

education.

Every person needs some changes from the routine education. For

this visit industry is selected by my mentor and I fetch information

about different products of AMUL , and its activities. But I

concentrated more on taking information about Processing for AMUL

Products. As I am student of management and the future Manager

the industrial visit play vital role in my education. Because of the

industrial visit I have knowledge of industrial environment and I felt

that this would be the part of my life. I become conscious that I am

the manager of future and I should also learn how to solve

managerial problem and fulfil others requirement at the time.

I have tried my best to represent all relevant data and information

relating to my project work. I hope this report will serve the purpose

of the readers.

Paramveer Patel

MBA Sem ll A

CPIMR

AKNOWLEDGEMENT

Being fortune enough to be a part of Shree Chimanbhai Patel

Institute of Management and Research, Ahmedabad, I would like to

thank Mrs. Richa Pandit (Professor) and Aarti Triwedi (Director) for

giving me this opportunity to carry out industrial visit and project on

AMUL, as a part of the curriculum. Through this project, my

knowledge about dairy industry has been updated and I hope the

same with my colleagues.

I would also like to thank my friends who had earlier done similar

projects on AMUL, for their valuable inputs and support.

Paramveer Patel

EXECUTIVE SUMMARY

AMUL is the cooperative sector. It is the institution of the farmer, for

the farmer and from the farmer. The AMUL gives pleasure to the

farmers to change the own price, which was not possible in the

earlier years. This union was born on the 14th December 1946. The

union provides facilities to its members like more return, satisfactory

price, insemination, first aid, group insurance, cattle food at

concessional price etc. AMUL dairy have five main departments like

finance, personal, commercial, milk procurement and production.

The finance department does the clerical work and takes care of

inflow and outflow of the cash. The other work is annual audit.

Personal department work on recruitment, transfer dismissal,

performance appraisal, demotion, etc. The commercial department

conducts all promotional activities. The marketing work is handling

by GCMMF. The production department produces the product with

the help of latest technologies. The production is done according to

ISO requirement. The milk procurement department gets the milk

everyday two times from more than 100 routes and more than 1000

societies. For the maintenance of the quality of the milk there are

167 chilling units.

This report contains how AMUL born, grow in all dimensions, and its

operating process from the collection of milk to the customers.

Contents PREFACE .................................................................................................................................................. 2

AKNOWLEDGEMENT ............................................................................................................................... 3

EXECUTIVE SUMMARY ............................................................................................................................ 4

INTRODUCTION OF AMUL ....................................................................................................................... 6

HISTORY OF AMUL .............................................................................................................................. 6

AMUL FACT FILE .................................................................................................................................. 8

AMUL LOGO AND ITS IMPORTANCE ................................................................................................... 8

AMUL THREE TIER MODEL .................................................................................................................. 9

PRODUCTION FACILITIES AT AMUL(ANAND) ........................................................................................ 11

ABOUT PRODUCTS ............................................................................................................................ 11

DEPERTMENT IN THERE PRODUCTION PROCESS AT ANAND ........................................................... 14

MILK PROCESS ............................................................................................................................... 14

EQUIPMENTS FOR PRODUCTION PROCESS ...................................................................................... 16

SUPPLY CHAIN FACILITATES THE PRODUCTION PROCESS ................................................................ 17

MILK COLLECTION CHANNEL ........................................................................................................ 17

MILK PROCESSING CYCLE .............................................................................................................. 17

DISTRIBUTION CHANNEL ............................................................................................................... 18

IMPORTANCE OF VISIT .......................................................................................................................... 19

CONCLUSION ......................................................................................................................................... 19

REFERENCES .......................................................................................................................................... 20

INTRODUCTION OF AMUL

HISTORY OF AMUL

The Kaira District Co-operative Milk Producers' Union Ltd. was registered on 1 December 1946 as a response to the exploitation of marginal milk producers by traders or agents of the only existing dairy, the Polson (brand) dairy, in the small town of Anand (in Kaira District of Gujarat). Milk Producers had to travel long distances to deliver milk, which often went sour in summer, to Polson. The prices of buffalo and cow milk were arbitrarily determined. Moreover, the government at that time had given monopoly rights to Polson to collect milk from Anand and supply it to Bombay city.

Angered by the unfair and manipulative trade practices, the farmers of Kaira approached Sardar Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to form a cooperative and supply milk directly to the Bombay Milk Scheme instead of Polson (who did the same but gave them low prices). He sent Morarji Desai to organise the farmers. In 1946, the milk farmers of the area went on a strike which led to the setting up of the cooperative to collect and process milk. Milk collection was also decentralized, as most producers were marginal farmers who could deliver atmost 12 litres of milk per day. Cooperatives were formed for each village too.

The Cooperative was further developed and managed by Dr.Verghese Kurien along with H.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk for the first time anywhere in the world and a little later, along with Kurien's help, making it on a commercial scale, led to the first modern dairy of the

cooperative at Anand, which would successfully compete against established players in the market.

The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to Anand's neighbourhood in Gujarat, and within a short span, five unions in other districts Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up. In order to combine forces and expand the market while saving on advertising and avoid competing against each other, the GCMMF, an apex marketing body of these district cooperatives was set up in 1973. The Kaira Union which had the brand name of Amul with it since 1955, transferred it to GCMMF.

AMUL FACT FILE

Type : Cooperative

Headquarter: Anand, Gujarat, India.

Key people: Chairmen, GCMMF- P G BHATOL

Industry: Dairy Products

Revenue: US$ 2.5 billion / Rs. 11668 Crores (2011-2012)

Employees: 3.18 Million milk suppliers farmers

Website: www.amul.com

CRISIL ratinf for amul: AAA/Stable/P1+ to the various bank facilities.

AMUL LOGO AND ITS IMPORTANCE

Symbol of AMUL is ring of four hands, which are coordinated each other. The actual meaning of this symbol is coordination of the hand of different people by whom this union is now at top. The first hand is of farmer, second hand of processor, third hand of marketer and fourth hand of customer. It is the joint efforts and productive team work that has enabled its success.

AMUL THREE TIER MODEL

The Amul Model is a three-tier cooperative structure. This structure

consists of a Dairy Cooperative Society at the village level affiliated to

a Milk Union at the District level which in turn is further federated

into a Milk Federation at the State level. The above three-tier

structure was set-up in order to delegate the various functions, milk

collection is done at the Village Dairy Society, Milk Procurement &

Processing at the District Milk Union and Milk & Milk Products

Marketing at the State Milk Federation. This helps in eliminating not

only internal competition but also ensuring that economies of scale

is achieved. As the above structure was first evolved at Amul in

Gujarat and thereafter replicated all over the country under the

Operation Flood Programme, it is known as the Amul Model or

Anand Pattern of Dairy Cooperatives. Responsible for Marketing of

Milk & Milk Products Responsible for Procurement & Processing of

Milk Responsible for Collection of Milk Responsible for Milk

Production.

PRODUCTION FACILITIES AT AMUL(ANAND)

ABOUT PRODUCTS 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. Today Amul is a symbol of many things. Of high

quality products sold at reasonable prices. Of the genesis of a vast

cooperative network. Of the triumph of indigenous technology. Of

the marketing savvy of a farmers' organisation. And of a proven

model for dairy development.

A. Bread Spred

AMUL BUTTER: Utterly Butterly Decision

AMUL LITE: Low fat, low Cholesterol Bread Spread

Delicious Table Margine: The Delicious way to eat healthy

B. Powder Milk

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

Amul instant full cream milk powder: A dairy in your home

Sagar skimmed milk powder: Which is especially useful for diet

preparations or for use by people on low calorie and high

protein diet.

Sagar tea coffee whitener

Amulya dairy whitener: The Richest, Purest Dairy Whitener

C. fresh milk

Amul Gold Milk:

Amul Tazza Double Milk:

Amul Lite slim and trim milk:

Amul fresh cream:

Amul cool chocolate milk

Amul cool flavoured botteled milk:

Amul cool flavoured Tetra pack:

Amul Shakti toned milk:

Amul masti spiced buttermilk: Amul introduces the Best Thirst

Quenching Drink

D. Cheese

Amul cheese spreads: Tasty Cheese Spreads in 3 great flavours

Amul Emmental Cheese: The Great Swiss Cheese from Amul

has a sweetdry flavour and hazelnut aroma.

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

tasting pizzas

Guuda Cheese:

E. For cooking

Amul/Sagar Pure Ghee: Made from fresh cream. Has typical

rich aroma and granular texture. An ethnic product made by

diaries with decades of experience.

Cooking Butter:

Amul Malai Paneer: Ready to cook paneer to make your

favourite recipes

Utterly Decisious Pizza:

Mithai Mate: Sweetened Condensed Milk - Free flowing and

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

Masti Dahi:

F. Desserts

Amul Ice Creams Premium Ice Cream made in various varieties

and flavours with dry fruits and nuts.

Amul Shrikhand: A delicious treat, anytime

Amul Mithaee Gulab Jamuns: Pure Khoya Gulab Jamuns...best

served

piping hot.

Gulab Jamuns Mix:

Amul Chocolates: The perfect gift for someone you love

Amul Lassee:

Amul Basundi:

G. Health Drink:

Nutramul: Malted Milk Food made from malt extract has the

highest protein content among all the brown beverage

powders sold in India.

Amul Shakti Health Food Drink : Available in Kesar-Almond and

Chocolate flavours.

DEPERTMENT IN THERE PRODUCTION PROCESS AT

ANAND

Amul dairy have a very long production process and a very effective

department in this process. There are 3 departments in this dairy

they are listed as under:

MILK PROCESS

Amul milk is pasteurized milk.

Chilled milk is received from chilling center from villages. In

Amul dairy they collect milk from 13,000 villages about 26 lakes

litters of milk per day.

After collecting milk Amul dairy laboratory check the fat & SNF

of the milk. After collecting, Checking & Conducting the laboratory

test the pasteurized machines for pasteurization of milk. Here the

milk is heated for 15 second. After that it is cooled at 4 degree

Celsius.

Now in this milk necessity fat & SNF are added packed in

pouches of 250ml, 500ml, and 1ml. The packed are kept in the

basket & each basket contains 20 Pouches.

After the milk pouches are taken to the cold storage with the

capacity of holding 4500 with the temperature of 8 to 10 degree

Celsius.

BUTTER PROCESS

Amul butter is made from Butter common salt, permitted natural

color. Annatto capacity of 50,000 K.G per day. In that section

there is a machine called continuously bath. It churns the milk &

separates butter milk. Then the second process starts. There the

butter is made. Also, the butter milk is considered as by product &

not a waste. In the second process the butter is processed by

water & later only butter is left in the plastic tube. The yellow

color is very pleasant.

Amul butter is very delicious again here too not policy is followed.

In this section the room temperature in 20 Celsius but after

packing the butter is manufactured at 8 Celsius. It is transferred

through trolley. It is packed in different sizes of packets 100g.m,

200 g.m, and 500g.m. 100 G.M. packets made 100 packets per

menit. 500 G.M. packets made 35 packets per mint. There are

special packing machine for this it is called a BLOCK CUTTER

MACHINES. After a packet is packed if falls into a box billed it is

moved into the trolley work is done 3 shifts.

MILK POWDER PROCESS

Milk is boiled in vacuum so that it becomes thick. Then milk is

condensed. Then it is taken to dryer. Sour milk is taken away

capacity of the milk powder plant is 130 litters. Then the

remaining moistures are taken away at temperatures of . Then

milk powder is made. There is no need for boils this powder. It

automatically gets dissolved within 12 Second of mixing in water.

This powder is packed by machines. No human hands touch it. It is

stored in a cool place & sold under the name of AMULYA. In all

there are 3 Plants which made milk in to powder.

These were further packed in air vacant packing in desired weight

of 1 k.g, 500 g & 25 k.g bags. Per mint made a 30 pouch of 500 g.

In 1 box contains 12 pouches. Milk powder marketing as an Amul

Spray.

EQUIPMENTS FOR PRODUCTION PROCESS

Raw milk buffer Tank -15000 lit Nos.-2

Cream buffer Tank-15000 lit Nos.-2

Balance tank for Pasteurizer-350 lits Nos.-3

Cream pasteurizer (PHE)-10000 lits No. Of plates-222 Nos.-3

Milk Pasteurizer (PHE)-30000 LPH No. Of plates-412 Nos.-2

Cream separator (Automatic self Desludging)-30000LPH No. Of

discs- 265 No.-2

Milk clarifier (Automatic self Desludging)-30000LPH No. Of

discs-156 Nos.-3

Raw milk silos -1.5 LAKH LITS Nos.-4

Insulation2 cms thick thermocol

Pasteurized milk Silos-1.5 LAKH LITS Nos.-4

Insulation is 2 cms thick thermocol

Silo Agitator Each silo has 2 horizontal inclined angled aditators

Raw milk chiller -30000LPH Nos.-3

CIP tanks *Water tank-8000 lits

*Acid tank-10000lits

*Lye tank-10000lits

Nos. Each 1 tank andtheir corresponding pumps

CIP tanks for Tanker cleaning

Water tank-8000lits

Lye-8000 lits

Nos.- Each 1 tank and their corresponding pumps

SUPPLY CHAIN FACILITATES THE PRODUCTION

PROCESS

MILK COLLECTION CHANNEL

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 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 in milk collection cycle.

MILK PROCESSING CYCLE

Homogenization: 60% buffalo milk+40%cow milk

Pasteurization : centrifuge process

Adding Vitamin D

Packing Milk: kept at 1-20 C

Storing: 1-40 C

MILK COLLECTION

CHANNEL

MILK PROCESSING

UNIT

DISTRIBUTION CHANNEL

DISTRIBUTION CHANNEL

Amul has a fast and efficient supply channel. The Amul dairy vans

provide the products to the retailers daily morning. It has a huge

supply network.

IMPORTANCE OF VISIT

Learn history of AMUL

Learn the layout of the AMUL

Learn what is important to an industry

Learn the Production Process of Dairy industry.

Learn the most efficient supply chain of India.

Learn the AMUL as the market giant.

Learn the use of Production and operation management in the

manufacturing industry.

Learn several management aspects.

CONCLUSION

As the AMUL uses the best operation and production process

to run the cooperative firm, it is clearly been conclude from the

visit that the production and operation management is a key

component for the success of each and every industry.

REFERENCES

www.amul.com

www.gcmmf.org

www.indiandairy.com

www.nddb.com

Visit Notes