milk revolution in india by jelton based on amul

A Report on the Milk Revolution in India

CHAPTER 1

Sidvin School of Business 1


INTRODUCTION

Milk may be defined as the whole, fresh,

clean, lacteal secretion obtained by the complete milking of

one or more healthy milk animals, excluding that obtained

within 15 days before or 5 days after calving or such periods

as may be necessary to render the milk practically

colostrums-free and containing the minimum prescribed

percentages of milk fat and milk-solids-not-fat. In India, the

term 'milk', when unqualified, refers to cow or buffalo milk,

or a combination of the two.



FOOD AND NUTRITIVE VALUE OF MILK:

Milk is an almost ideal food. It has high nutritive value. It

supplies body-building proteins, bone-forming minerals and

health-giving vitamins and furnishes energy-giving lactose

and milk fat. Besides supplying certain essential fatty acids,

it contains the above nutrients in an easily digestible and

assimilable form. All these properties make milk an

important food for pregnant mothers, growing children,

adolescents, adults, invalids, convalescents and patients

alike.

Milk contains:-

Milk is rich in protein and calcium which help build the

muscles you need to throw a ball or climb a tree. One 200 ml

glass of milk provides a power-pack of nutrients a child

needs daily. Here's how a glass of milk fulfills your daily

requirement of nutrients in percentage terms:



MILK - ESSENTIAL FOR NOURISHMENT :

Milk is nature's ideal food for infants and

growing children in our country, except in rare cases of

lactose intolerance. The important place milk occupies in our

diet has been recognized since Vedic times, and all modern

research has only supported and reinforced this view. In fact,

milk is now considered not only desirable but essential from

the time the child is born. The baby is recommended to be

breast-fed

until it is weaned and thereafter given

cow/buffalo/goat/sheep or similar domesticated mammal's

milk till he or she reaches 12 years of age.



The National Institute of Nutrition has recommended a

minimum of 300 gms daily intake of milk for children

between 1-3 years of age and 250 gms for those between

10-12 years, if they are vegetarian, and 250 gms and 200

gms for the same age groups of non-vegetarian children. In

our country, most such adults consume milk only as

whiteners for tea and coffee, some dahi or buttermilk.



CHAPTER 2



INDUSTRY PROFILE

Origin of the Industry

The creation of dairy industry has been

started since long back in India. Milk is one of the delicious

gifts of nature. From the very beginning it self people is

very fond of milk and the use of milk in various ways

through producing many kinds of food from it like curds,

butter, cheese, etc. as it exerted people to produce such

milk in an organized way to meet the increasing demand of

the customer, which results in the dairy industry

Present status of the organization

India is the world’s largest milk producer, with

output in 1999-2000 forecasted at 78 million tones. United

States, where the milk production is anticipated to grow only

marginally at 71 million tones, occupied the top slot till

1997. India’s milk production in 1998 at 557 million tones

would continue the steady progress in recent years.

Furthermore, against the world’s at 1%. The steep rise in the

growth pattern has been attributed to a sustained expansion

in domestic demand, although per capita consumption is

modes at 70 kg of milk equivalent. Annual milk production

has trebled in the



last 30 years, rising from 21 million tones in 1968 to an

anticipated 80 million tones in 2001, this rapid growth and

modernization is largely credited to the contribution of dairy

cooperatives, under the operation flood project, assisted by

many multilateral agencies, including the European union,

the world bank and world flood program. In the Indian

context of poverty and malnutrition, milk has a special role

to play for its many nutritional advantages as well as

providing supplementary income to some 70 million farmers

in 50,00,000 remote villages.

White Revolution in India:

Operation Flood was a rural development programme

started by India's National Dairy Development Board (NDDB)

in 1970. One of the largest of its kind, the programme

objective was to create a nationwide milk grid.

It resulted in making India the largest producer of milk and

milk products, and hence is also called the White Revolution

of India. It also helped reduce malpractices by milk traders

and merchants. This revolution followed the Indian green

revolution and helped in alleviating poverty and famine

levels from their dangerous proportions in India during the

era.

Gujarat-based Amul (Anand Milk Union Limited) was the

engine behind the success of Operation Flood and in turn


http://en.wikipedia.org/wiki/Amul

http://en.wikipedia.org/wiki/Gujarat

http://en.wikipedia.org/wiki/Milk

http://en.wikipedia.org/wiki/National_Dairy_Development_Board_(NDDB)

http://en.wikipedia.org/wiki/India


became a mega company based on the cooperative

approach. Verghese Kurien (chairman of NDDB at that time),

then 33, gave the professional management skills and

necessary thrust to the cooperative, and is considered the

architect of India's 'White Revolution' (Operation Flood). His

work has been recognised by the award of a Padma

Bhushan, the Ramon Magsaysay Award for Community

Leadership, the Carnegie-Wateler World Peace Prize, and the

World Food Prize

Operation Flood has helped dairy farmers, direct their own

development, placing control of the resources they create in

their own hands. A 'National Milk Grid', links milk producers

throughout India with consumers in over 700 towns and

cities, reducing seasonal and regional price variations while

ensuring that the producer gets a major share of the price

consumers pay.

The bedrock of Operation Flood has been village milk

producers' cooperatives, which procure milk and provide

inputs and services, making modern management and

technology available to members. Operation Flood's

objectives included :

. Increase milk production ("a flood of milk")

Augment rural incomes


http://en.wikipedia.org/wiki/Cooperatives

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. Fair prices for consumers

Programme Implementation

Operation Flood was implemented in three phases.

Phase I

Phase I (1970–1980) was financed by the sale of skimmed

milk powder and butter oil gifted by the European Union

(then the European Economic Community) through the World

Food Programme. NDDB planned the programme and

negotiated the details of EEC assistance.

During its first phase, Operation Flood linked 18 of India's

premier milksheds with consumers in India's major

metropolitan cities: Delhi, Mumbai, Kolkata and Chennai.

Thus establishing mother dairies in four metros.

Operation flood, also referred to as “White Revolution” is a

gigantic project propounded by Government of India for

developing dairy industry in the country. The Operation

Flood – 1 originally meant to be completed in 1975, actually

the

period of about nine years from 1970-79, at a total cost of

Rs.116 corers.


http://en.wikipedia.org/wiki/Chennai

http://en.wikipedia.org/wiki/Kolkata

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Delhi

http://en.wikipedia.org/wiki/World_Food_Programme

http://en.wikipedia.org/wiki/World_Food_Programme

http://en.wikipedia.org/wiki/European_Economic_Community

http://en.wikipedia.org/wiki/European_Union


As start of operation Flood-1 in 1970 certain set of aims were

kept in view for the implementation of the programmers.

Improvement by milk marketing the organized dairy sector

in the metropolitan cities Bombay, Calcutta, Madras, Delhi.

The objectives of commanding share of milk market and

speed up development of dairy animals respectively hinter

lands of rural areas with a view to increase both production

and procurement.

Phase II

Operation Flood Phase II (1981–1985) increased the

milksheds from 18 to 136; 290 urban markets expanded the

outlets for milk. By the end of 1985, a self-sustaining system

of 43,000 village cooperatives with 42.5 lakh milk producers

were covered. Domestic milk powder production increased

from 22,000 tons in the pre-project year to 1,40,000 tons by

1989, all of the increase coming from dairies set up under

Operation

Flood. In this way EEC gifts and World Bank loan helped

promote self-reliance. Direct marketing of milk by producers'

cooperatives increased by several million litres a day.



Phase III

Phase III (1985–1996) enabled dairy cooperatives to expand

and strengthen the infrastructure required to procure and

market increasing volumes of milk. Veterinary first-aid health

care services, feed and artificial insemination services for

cooperative members were extended, along with intensified

member education.

Operation Flood's Phase III consolidated India's dairy

cooperative movement, adding 30,000 new dairy

cooperatives to the 42,000 existing societies organized

during Phase II. Milksheds peaked to 173 in 1988-89 with the

numbers of women members and Women's Dairy

Cooperative Societies increasing significantly.

Phase III gave increased emphasis to research and

development in animal health and animal nutrition.

Innovations like vaccine for Theileriosis, bypassing protein

feed and urea-molasses mineral blocks, all contributed to the

enhanced productivity of milch animals.


http://en.wikipedia.org/w/index.php?title=Urea-molasses&action=edit&redlink=1

http://en.wikipedia.org/wiki/Theileria

http://en.wikipedia.org/wiki/Vaccine


CHAPER 3



Company Profile

Introduction

Large emerging markets like China and India are becoming

the proving grounds for existing business norms and

practices of multinationals (MNC) worldwide. To get a

foothold in these

markets MNCs have tried various models that range from

replicating home country practices to becoming a dyed-in-

the-wool host country firm. Most of these approaches,

however, have failed to deliver the promise with which these

markets were seen at the time of entry. For example, many

MNCs in India focused on the 200 million middle-class as

their target customers (a number which appears large

enough for any new entrant) but performed very poorly. This

segment was subjected to marketing efforts of all MNCs. All

wanted to sell their T-shirts or their cars or their expensive

shoes or their foreign holidays to the same set of consumers.

At some point the budget constraint of this large

segment and absence of an attractive value proposition in



the products & services offered stood in the way of

successful MNC entry into India. The strategy failed and

many MNCs beat a hasty retreat.

Large emerging economies have their own

complexities that range from development of markets

(where the largest segment of population is the one which

has low purchasing power) to

integration of low cost suppliers who are predominantly

small. For firms that aspire to conduct substantial business

in such markets, such complexities have to be recognized

and then overcome.

The challenge is to understand the linkages between

markets and the society. This would also require

development of a new business model that helps a firm grow

in such environments. This project is about one such

successful model. The Kaira District Milk Cooperative Union

or AMUL in India is an example of how to develop a network

of firms in order to overcome the complexities of a large yet

fragmented market like those in emerging economies by

creating value for suppliers as well as the customers. It is

worth noting that today Amul competes successfully with the

private sector that includes multinational corporations and

domestic players, and provides handsome returns to farmers

without receiving any form subsidy from the government.



Amul: The origin

The mighty Ganges at it's origin is but a tiny stream in the

Gangotri ranges of the Himalayas. Similar is the story of

Amul which inspired 'Operation Flood' and heralded the

'White Revolution' in India. It began with two village

cooperatives and 250 liters of milk per day, nothing but a

trickle compared to the flood it has become today. Today

Amul collects, processes and distributes over a million liters

of milk and milk products per day, during the peak, on

behalf of more than a thousand village cooperatives owned

by half a million farmer members. Further, as Ganga-ma

carries the aspirations of generations for moksha, Amul too

has become a symbol of the aspirations of millions of

farmers.Creating a pattern of liberation and self-reliance for

every farmer to follow.

The start of a revolution

The revolution started as an awareness among the farmers

that grew and matured into a protest movement and the

determination to liberate themselves. Over four decades


http://www.indiadairy.com/ind_profile_factsheet.html

http://www.indiadairy.com/ind_operationflood.html


ago, the life of a farmer in Kaira District was very much like

that of his counterpart anywhere else in India. His income

was derived almost entirely from seasonal crops. The income

from milch buffaloes was undependable. The marketing and

distribution system for the milk was controlled by private

traders and middlemen. As milk is perishable, farmers were

compelled to sell it for whatever they were offered. Often,

they had to sell cream and ghee at throwaway prices. In this

situation, the one who gained was the private trader.

Gradually, the realization dawned on the farmers that the

exploitation by the trader could be checked only if marketed

their milk themselves. In order to do that they needed to

form some sort of an organization. This realization is what

led to the establishment of the Kaira District Cooperative

Milk Producers' Union Limited (popularly known as Amul)

which was formally registered on December 14, 1946.The

Kaira Union began pasteurizing milk for the Bombay Milk

Scheme in June 1948. An assured market proved a great

incentive to the milk producers of the district. By the end of

1948, more than 400 farmers joined in more village

societies, and the quantity of milk handled by one Union

increased from 250 to 5,000 liters a day.

Obstacles : Springboards for success.



Each failure, each obstacle, each stumbling block can be

turned into a success story. In the early years, Amul had to

face a number of problems. With every problem came

opportunity. A chance to turn a negative into a positive. Milk

by products and supplementary yield which suffered from

the same lack of marketing and distribution facilities became

encumbrances. Instead of being bogged down by their fate

they were used as stepping stones for expansion. Backward

integration of the process led the cooperatives to advances

in animal husbandry and veterinary practice.

Milk by products: An excuse to expand.

The response to these provided stimulus for further growth.

For example, as the movement spread in the district, it was

found that the Bombay Milk Scheme could not absorb the

extra milk collected by the Kaira Union in winter, when the

production on an average was 2.5 times more than in

summer. Thus, even by 1953, the farmer-members had no

assured market for the extra milk produced in winter. They

were again forced to sell a large surplus at low rates to the

middlemen. The remedy was to set up a plant to process

milk into products like butter and milk powder. A Rs 5 million

plant to manufacture milk powder and butter was completed

in 1955. In 1958, the factory was expanded to manufacture



sweetened condensed milk. Two years later, a new wing was

added for the manufacture of 2500 tons of roller-dried baby

food and 600 tons of cheese per year, the former based on a

formula developed with the assistance of Central Food

Technological Research Institute (CFTRI), Mysore. It was the

first time anywhere in the world that cheese or baby food

was made from buffalo milk on a large, commercial scale.

Another milestone was the completion of a project to

manufacture balanced cattle feed. The plant was donated by

OXFAM under the Freedom From Hunger Campaign of the

FAO. To meet the requirement of milk powder for the

Defense, the Kaira Union was asked by the Government of

India in 1963 to setup additional milk drying capacity. A new

dairy capable of producing 40 tons of milk powder and 20

tons of butter a day was speedily completed. It was declared

open in 1965. The Mogar Complex where high protein

weaning food, chocolate and malted food are being made

was another initiative by Amul to ensure that while it fulfilled

the social responsibility to meet the demand for liquid milk,

its members were not deprived of the benefits to be had

from the sale of high value-added products.

Cattle : From stumbling blocks to building blocks .

Traditionally dairying was a subsidairy occupation of the



farmers of Kaira. However, the contribution to the farmer's

income was not as prominent as his attachment to dairying

as a tradition handed down from one generation to the next.

The milk yield from animals, which were maintained mainly

on the

by products of the farm, was decidedly low. That together

with the lack of facilities to market even the little produced

rendered the scientific practice of animal husbandry

irrational as well as unaffordable. The return on the

investment as well as the prospects of being able to market

the product looked very bleak. It was a vicious cycle

reinforced by generations of beliefs. The Kaira Union broke

the cycle by not only taking upon themselves the

responsibility of collecting the marketable surplus of milk but

also provided the members with every provision needed to

enhance production. Thus the Kaira Union has full-fledged

machinery geared to provide animal health care and

breeding facilities. As early as late fifties, the Union started

making high quality buffalo semen. Through village society

workers artificial insemination service was made available to

the rural animal population. The Union started its mobile

veterinary services to render animal health care at the

farmers' doorstep. Probably for the first time in the country,

veterinary first aid services, by trained personnel, were

made available in the villages.The Union's 16 mobile


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veterinary dispensaries are manned by fully qualified staff.

All the villages are visited bi-monthly, on a predetermined

day, to provide animal health care. A 24-hour Emergency

Service is also available at a fee (Rs. 35 for members and Rs.

100 for non-members). All the mobile veterinary vans are

equipped with Radio Telephones. The Union runs a semen

production

center where it maintains high pedigreed Surti buffalo bulls,

Holstein Friesian bulls, Jersey bulls and 50 per cent crossbred

bulls. The semen obtained from these bulls is used for

artificial breeding of buffaloes and cows belonging to the

farmer members of the district. The artificial insemination

service has become very popular because it regulates the

frequency of calving in cows and buffaloes thus reducing

their dry period. Not only that, a balanced feed concentrate

is manufactured in the Union's Cattle Feed Plant and sold to

the members through the societies at cost price.Impressive

though its growth, the unique feature of the Amul sagas did

not lie in the extensive use of modern technology, nor the

range of its products, not even the rapid inroads it made into

the market for dairy products. The essence of the Amul story

lies in the breakthrough it achieved in modernizing the

subsistence economy of a sector by organizing the rural

producers in the areas.



The Kaira experiment: A new beginning in more ways

than one.

A system which involves participation of people on such a

large magnitude does not confine itself to an isolated sector.

The ripples of its turbulence affect other areas of the

society as well. The cooperatives in the villages of Kaira are

contributing to various desirable social changes such as:

The yearly elections of the management committee and its

chairman, by the members, are making the participants

aware of their rights and educating them about the

democratic process. Perpetuating the voluntary mix of the

various ethnic and social groups twice-a-day for common

causes and mutual betterment has resulted in eroding many

social inequilibria. The rich and the poor, the elite and the

ordinary come together to cooperate for a common cause.

Live exposure to various modern technologies and their

application in day-to-day life has not only made them aware

of these developments but also made it easier for them to

adopt these very processes for their own betterment. One

might wonder whether the farmer who knows almost

everything about impregnating a cow or buffalo, is also

equally aware of the process in the humans and works

towards planning it.

More than 900 village cooperatives have created jobs for



nearly 5000 people in their own villages -- without disturbing

the socio-agro-system -- and thereby the exodus from the

rural areas has been arrested to a great extent.The income

from milk has contributed to their household economy.

Besides, women, who are the major participants, now have a

say in the home economy.

Independent studies by various individuals and institutions

have shown that as high as 48 per cent of the income of the

rural household in Kaira District is being derived from dairying. Since dairying is a

subsidairy occupation for the majority of the rural population, this income is helping

these people not only to liberate themselves from the stronghold of poverty but also to

elevate their social status.

Members: 13 district cooperative milk

producers' Union

No. of Producer Members: 2.79 million

No. of Village Societies: 13,328

Total Milk handling

capacity:

11.22 million litres per day

Milk collection (Total -

2008-09):

3.05 billion litres

8.4 million litres



Milk Drying Capacity: 626 Mts. per day

Cattlefeed manufacturing

Capacity:

3500 Mts per day

Sales Turnover

Rs (million)US $ (in

million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

2008-09 67113 1504



The distribution network

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

operations.

Umbrella brand



The network follows an umbrella branding strategy. Amul is

the common brand for most product categories produced by

various unions: liquid milk, milk powders, butter, ghee,

cheese, cocoa products, sweets, ice-cream and condensed

milk.Amul's sub-brands include variants such as Amulspray,

Amulspree, Amulya and Nutramul. The edible oil products

are grouped around Dhara and Lokdhara, mineral water is

sold under the Jal Dhara brand while fruit drinks bear the

Safal name.

By insisting on an umbrella brand, GCMMF not only skillfully

avoided inter-union conflicts but also created an opportunity

for the union members to cooperate in developing products.

Managing the supply chain

Even though the cooperative was formed to bring together

farmers, it was recognised that professional managers and

technocrats would be required to manage the network

effectively and make it commercially viable.



Coordination

Given the large number of organisations and entities in the

supply chain and decentralised responsibility for various

activities, effective coordination is critical for efficiency and

cost control. GCMMF and the unions play a major role in this

process and jointly achieve the desired degree of control.

Buy-in from the unions is assured as the plans are approved

by GCMMF's board. The board is drawn from the heads of all

the unions, and the boards of the unions comprise of farmers

elected through village societies, thereby creating a situation

of interlocking control.

The federation handles the distribution of end products and

coordination with retailers and the dealers. The unions

coordinate the supply side activities. These include

monitoring milk collection contractors, the supply of animal

feed and other supplies, provision of veterinary services, and

educational activities.

Managing third party service providers

From the beginning, it was recognised that the unions' core

activity lay in milk processing and the production of dairy

products. Accordingly, marketing efforts (including brand

development) were assumed by GCMMF. All other activities



were entrusted to third parties. These include logistics of

milk collection, distribution of dairy products, sale of

products through dealers and retail stores, provision of

animal feed, and

veterinary services.

It is worth noting that a number of these third parties are not

in the organized sector, and many are not professionally

managed with little regard for quality and service.

This is a particularly critical issue in the logistics and

transport of a perishable commodity where there are already

weaknesses in the basic Infrastructure.

Establishing best practices

A key source of competitive advantage has been the

enterprise's ability to continuously implement best practices

across all elements of the network: the federation, the

unions, the village societies and the distribution channel.

In developing these practices, the federation and the unions

have adapted successful models from around the world. It

could be the implementation of small group activities or

quality circles at the federation. Or a TQM program at the

unions. Or housekeeping and good accounting practices at

the village society level.

More important, the network has been able to regularly roll



out improvement programs across to a large number of

members and the implementation rate is consistently high.

For example, every Friday, without fail, between 10.00 a.m.

and 11.00 a.m., all employees of GCMMF meet at the closest

office, be it a department or a branch or a depot to discuss

their various quality concerns.

Each meeting has its pre-set format in terms of Purpose,

Agenda and Limit (PAL) with a process check at the end to

record how the meeting was conducted. Similar processes

are in place at the village societies, the unions and even at

the wholesaler and C&F agent levels as well.

Examples of benefits from recent initiatives include

reduction in transportation time from the depots to the

wholesale dealers, improvement in ROI of wholesale dealers,

implementation of Zero Stock Out through improved

availability of products at depots and also the

implementation of Just-in-Time in finance to reduce the float.

Kaizens at the unions have helped improve the quality of

milk in terms of acidity and sour milk. (Undertaken by multi-

disciplined teams, Kaizens are highly focussed projects,

reliant on a structured approach based on data gathering

and analysis.) For example, Sabar Union's records show a

reduction from 2.0% to 0.5% in the amount of sour milk/curd

received at the union.



The most impressive aspect of this large-scale roll out is that

improvement processes are turning the village societies into

individual improvement centers.

Technology and e-initiatives

GCMMF's technology strategy is characterized by four

distinct components: new products, process technology, and

complementary assets to enhance milk production and e-

commerce.

Few dairies of the world have the wide variety of products

produced by the GCMMF network. Village societies are

encouraged through subsidies to install chilling units.

Automation in processing and packaging areas is common,

as is HACCP certification. Amul actively pursues

developments in embryo transfer and cattle breeding in

order to improve cattle quality and increases in milk yields.

GCMMF was one of the first FMCG (fast-moving consumer

goods) firms in India to employ Internet technologies to

implement B2C commerce.

Today customers can order a variety of products through the

Internet and be assured of timely delivery with cash

payment upon receipt.

Another e-initiative underway is to provide farmers access to



information relating to markets, technology and best

practices in the dairy industry through net enabled kiosks in

the villages.

GCMMF has also implemented a Geographical Information

System (GIS) at both ends of the supply chain, i.e. milk

collection as well as the marketing process.

Farmers now have better access to information on the

output as well as support services while providing a better

planning tool to marketing personnel.

Coordination for Competitiveness

Robust coordination is one of the key

reasons for the success of operations involving such an

extensive network of producers and distributors at GCMMF.

Some interesting mechanisms exist for coordinating the

supply chain at GCMMF. These range from ensuring fair

share allocation of benefits to the various stakeholders in the

chain to coordinated planning of production and distribution.

The spirit of cooperation is present in all transactions in the

chain and is constantly strengthened by the vision and

actions of Unions and the Federation. More importantly, the



reason for setting up of this cooperative is not amiss to any

one in this large network organization.

Employees, customers and distributors are constantly

reminded that they work for the farmers and the entire

network strives to provide the best returns to the farmers,

the real owners of the cooperative. It may be remembered

that coordination mechanisms have to link the lives and

activities of 2.12 million small suppliers and 0.5 million

retailers!

There appear to be three critical mechanisms of coordination

that ensure that decision making is coherent and that the

farmers gain the most from this effort.

These mechanisms are:

• Inter-locking Control



• Coordination Agency: Unique Role of Federation

• Supplier Enhancement and Network servicing

Inter-locking Control

Each Village Society elects a chairperson and a secretary

from amongst its member farmers of good standing to

manage the administration of the VS. Nine of these

chairpersons (from amongst those VS affiliated to a Union)

are elected to form the Board of Directors of the Union. The

Chairperson of the Union Board is elected from amongst

these members. The managing director of the Union, who is

a professional manager, reports to the chairperson and the

board. All chairpersons of all the

Unions form the Board of Directors of GCMMF. The managing

director of GCMMF reports to its Board of Directors. Each

individual organization, the Union or GCMMF, are run by

professional managers and a highly trained staff. It must be

pointed that all members of all the boards in the

chain are farmers who pour milk each day in their respective

Village Societies. A key reason for developing such an inter-

locking control mechanism is to ensure that the



interest of the farmer is always kept at the top of the agenda

through its representatives who constitute the Boards of

different entities that comprise the supply chain. This form of

direct representation also ensures that professional

managers and farmers work together as a team to

strengthen the cooperative. This helps in coordinating

decisions across

different entities as well as speeding both the flow of

information to the respective constituents and decisions.

Coordination Agency: Unique Role of the Federation.

In addition to being the marketing and

distribution arm of the Unions, GCMMF plays the role of

acoordinator to the entire network within the State –

coordinating procurement requirements with other

Federations (in other states), determining the best

production allocation for its product mix from amongst its

Unions, managing inter-dairy movements, etc. It works with

two very clear objectives: to ensure that all milk that the

farmers produce gets sold in the market either as milk or as

value added products and to ensure that milk is made

available to an increasingly large sections of the society at

affordable prices. In addition, it has to plan its production at

different Unions in such a way that market requirement

matches with unique strengths of each Union and that each



Union also gets a fair return on its capacity. In this regard,

the following aspects of the GCMMF’s strategy need to be

highlighted:

(a) Production Allocation across Unions: GCMMF, in

consultation with all the Unions, decides on the product mix

at each Union location. Some considerations that govern this

choice are the strengths of each Union, the demand for

various products in the region of the Union as well as the

country, long term strategy of each Union, procurement

volumes at different Unions, distribution costs from various

locations etc. Demand for daily products and supply of milk

vary with the season. Further, demand and supply seasons

run counter to each other making the planning problem

more complex.

The choice of product mix and its allocation

among the unions is determined in a hierarchical fashion by

GCMMF. First, annual demand targets are developed for

each product category based on long term growth plans and

pricing strategy. Next, these targets are converted to annual

plans by matching the targeted demand with projected

supply. In case of mismatch between projected supply and

demand appropriate adjustments are made as needed. For



example, when demand exceeds supply (as is the case most

often), the projected supply is allocated among the products

in a sequential manner. In the allocation process liquid milk

gets the highest priority (as it is perceived as a primary

social obligation) followed by other products, the priority

typically

determined by product shelf life.

In the second stage, the allocation is disaggregated into

monthly plans for each union. In developing the monthly

plans GCMMF takes into account seasonality in demand and

supply availability at each union, geographical distribution of

demand, impact on costs and equity between unions. The

monthly plans are developed on a rolling horizon basis and

the buy-in from the Unions

is secured in the monthly meeting attended by MDs of all

Unions. The detailed production plans showing inventory of

intermediate products and finished goods at the Unions are

determined by each union.

(b) Pricing and Product Mix Choices:



GCMMF pays the same price for each product

to all the Unions independent of their production costs. While

there is some variation in pricing by Unions

for its farmers, it forces the Unions to homogenize their cost

structures with other Unions as much as possible. By

devising appropriate pricing structures, it ensures that the

Unions (which are independent legal entities) have no

reason to produce other than what the Federation desires.

Often

conflict arises as the preferred mix of the Union (i.e., one

that will get them most returns) turns out to be different

from what

the Federation wants it to produce. GCMMF also manages

inter-dairy movement by setting appropriate pricing of

surplus quantity. At the end of the day, any surplus revenue

which is generated is shared between the Unions on the

basis of this inter-dairy movement.

Supplier Enhancement and Network Servicing

Each Union has a separate Department that

services the needs of the societies and also has the primary

responsibility developing new societies in their district. The



Societies Department is a single window contact point of the

Village Society at the Unions. Their objective is to ensure

that

producers get maximum benefit and to resolve all their

problems. They manage the procurement of milk that comes

via trucks & tankers from the VSs. They negotiate annual

contracts with truckers, ensure availability of trucks for

procurement, establish truck routes, monitor truck

movement and prevent stealing of milk while it is being

transported. Development of farmers, however, remains as

their key role. They coordinate the requirements of the VSs,

be it choice of new equipment or animal husbandry or

purchase

of cattle, with the respective department at AMUL. They also

help in evaluating the performance of the VSs.

Supervisors and Field Officers from the Societies Department

constantly visit each VS.

These Field Officers form route teams and

each week they visit several VSs. Supervisors visit each VS

at least once in three months. They check on any problem

that a VS is facing, evaluate the testing facility at the VS,

take up complaints of the farmers with the VS officials, settle

any dispute between the Unions and VSs including settling of



financial accounts etc. They also play the important role of

encouraging farmers to form new societies, evaluate these

potential cooperatives, explain the rules of business as set

by AMUL, help initiate their business, and provide all

necessary

support for its growth. These activities help in improving the

contribution of supplier to the

network.

GCMMF on the other hand manages the

distribution end of the network. In addition to

servicing the distributors and retailers, it also forms a bridge

for the transfer of network values to the distributors and

retailers. The network has also developed support services

that

would help improve productivity of the network as well as

reduce the probability of market failures due to inability of

individuals in the network to pay market prices from these

services. This was a classic example of cooperation in

developing common resources for the entire network. Such

network resources included 24- hour veterinary services,

animal husbandry services for better cattle management, an

animal feed factory, milk can production facility (which was



later sold to a third party), strong linkages with the Gujarat

Agricultural University in Anand, an Institute for Rural

Management for training professionals, and management of

contracts with trucking service providers for pickup of milk

and delivery of milk products across each union. It may be

worth noting that each of the services have to be paid by the

farmers though some may have been subsidized by the

network. Subsidy, however, must be seen as the common’s

price for services as it ultimately was debited against profits

that may have accrued to each member of the network



CHAPTER 3

SWOT ANALYSIS

Strengths:

Demand profile: Absolutely optimistic.

Margins: Quite reasonable, even on packed liquid milk.

Flexibility of product mix: Tremendous. With

balancing equipment, you can keep on adding to your

product line.


http://www.indiadairy.com/ind_need_offer.html


Availability of raw material: Abundant. Presently,

more than 80 per cent of milk produced is flowing into

the unorganized sector, which requires proper

channelization.

Technical manpower: Professionally-trained,

technical human resource pool, built over last 30 years.

Weaknesses:

Perishability: Pasteurization has overcome this

weakness partially. UHT gives milk long life. Surely,

many new processes will follow to improve milk quality

and extend its shelf life.

Lack of control over yield: Theoretically, there is

little control over milk yield. However, increased

awareness of developments like embryo transplant,

artificial insemination and properly managed animal

husbandry practices, coupled with higher income to

rural milk

producers should automatically lead to improvement in

milk yields.

Logistics of procurement: Woes of bad roads and

inadequate transportation facility make milk

procurement problematic. But with the overall


http://www.indiadairy.com/photo_gal_about_dairylabshtml.htm


economic improvement in India, these problems would

also get solved.

Problematic distribution: Yes, all is not well with

distribution. But then if ice creams can be sold virtually

at every nook and corner, why can’t we sell other dairy

products too? Moreover, it is only a matter of time

before we see the emergence of a cold chain linking the

producer to the refrigerator at the consumer’s home!

Competition: With so many newcomers entering this

industry, competition is becoming tougher day by day.

But then competition has to be faced as a ground

reality. The market is large enough for many to carve

out their niche.

Opportunities:

"Failure is never final, and success never ending”. Dr Kurien

bears out this statement perfectly. He entered the industry

when there were only threats. He met failure head-on, and

now he clearly is an example of ‘never ending success’! If

dairy entrepreneurs are looking for opportunities in India, the

following areas must be tapped:


http://www.indiadairy.com/ind_scope_foreigninvestment_offering.html

http://www.indiadairy.com/ind_marketing_quality.html


Value addition: There is a phenomenal scope for

innovations in product development, packaging and

presentation. Given below are potential areas of value

addition:

o Steps should be taken to introduce value-added

products like shrikhand, ice creams, paneer, khoa,

flavored milk, dairy sweets, etc. This will lead to a

greater presence and flexibility in the market

place along with opportunities in the field of brand

building.

o Addition of cultured products like yoghurt and

cheese lend further strength - both in terms of

utilization of resources and presence in the market

place.

o A lateral view opens up opportunities in milk

proteins through casein, caseinates and other

dietary proteins, further opening up export

opportunities.

o Yet another aspect can be the addition of infant

foods, geriatric foods and nutritionals.

. Export potential: Efforts to exploit export potential are

already on. Amul is exporting to Bangladesh, Sri Lanka,

Nigeria, and the Middle East. Following the new GATT

treaty, opportunities will increase tremendously for the


http://www.indiadairy.com/ind_scope_foreigninvestment.html

http://www.indiadairy.com/ind_scope_foreigninvestment.html


export of agri-products in general and dairy products in

particular.

Threats:

Milk vendors, the un-organized sector: Today milk

vendors are occupying the pride of place in the industry.

Organized dissemination of information about the harm that

they are doing to producers and consumers should see a

steady decline in their importance.

The study of this SWOT analysis shows that the ‘strengths’

and ‘opportunities’ far outweigh ‘weaknesses’ and ‘threats’.

Strengths and opportunities are fundamental and

weaknesses and threats are transitory. Any investment idea

can do well only when you have three essential ingredients:

entrepreneurship (the ability to take risks), innovative

approach (in product lines and marketing) and values (of

quality/ethics).

The Indian dairy industry, following its delicensing, has been

attracting a large number of entrepreneurs. Their success in

dairying depends on factors such as an efficient yet

economical procurement network, hygienic and cost-



effective processing facilities and innovativeness in the

market place. All that needs to be done is: to innovate,

convert products into commercially exploitable ideas. All the

time keep reminding yourself: Benjamin Franklin discovered

electricity, but it was the man who invented the meter that

really made the money!

List of Products Marketed:

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. 52.55 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 indigenous technology. Of the



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

model for dairy development.

Milk Drinks

Amul_kool

Amul Kool Cafe


http://www.amul.com/amulkoolcafe.html

http://www.amul.com/amulkool.html

http://www.amul.com/amulkoolcafe.html


Kool_Koko

A delight to Chocolate Lovers. Delicious Chocolate taste

Nutramul_Energy_Drink

A drink for Kids - provides energy to suit the needs of

growing kids.

Amul Kool Chocolate Milk


http://www.amul.com/fresh-chocolate.html

http://www.amul.com/nutramulenergymilk.html

http://www.amul.com/amulkoolkoko.html

http://www.amul.com/amulkoolkoko.html

http://www.amul.com/nutramulenergymilk.html

http://www.amul.com/fresh-chocolate.html


Amul Kool Flavoured Bottled

Milk

Amul Kool Flavoured Tetra Pack


http://www.amul.com/fresh-flavouredpack.html

http://www.amul.com/fresh-flavoured.html

http://www.amul.com/fresh-flavoured.html

http://www.amul.com/fresh-flavouredpack.html


Amul Masti Spiced Buttermilk

Amul introduces the Best Thirst Quenching Drink .Amul Kool

Thandai

Amul Lassee


http://www.amul.com/desserts-lassee.html

http://www.amul.com/amul-thandai.html

http://www.amul.com/amul-thandai.html

http://www.amul.com/fresh-masti.html

http://www.amul.com/fresh-masti.html


Bread Spreads

Amul_Butter

Utterly Butterly Delicious Low fat, low Cholesterol Bread

Spread

Amul Lite


http://www.amul.com/bread-lite.html

http://www.amul.com/bread-butter.html

http://www.amul.com/bread-butter.html

http://www.amul.com/bread-lite.html


Delicious Table Margarine

The Delicious way to eat healthy

Powder Milk

Amul Spray Infant Milk Food

Still, Mother's Milk is Best for your baby


http://www.amul.com/powder-milkfood.html

http://www.amul.com/bread-delicious.html

http://www.amul.com/bread-delicious.html

http://www.amul.com/powder-milkfood.html


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.


http://www.amul.com/powder-skimmilk.html

http://www.amul.com/powder-milkpowder.html

http://www.amul.com/powder-milkpowder.html

http://www.amul.com/powder-skimmilk.html


Sagar Tea Coffee Whitener

Amulya Dairy Whitener

The Richest, Purest Dairy Whitener


http://www.amul.com/powder-dairy.html

http://www.amul.com/powder-coffee.html

http://www.amul.com/powder-coffee.html


Cheese

Amul Pasteurised Processed

Cheese

100% Vegetarian Cheese made from microbial rennet

Amul_Cheese_Spreads


http://www.amul.com/cheese-spreads.html

http://www.amul.com/cheese-cheddar.html



http://www.amul.com/cheese-spreads.html


Tasty Cheese Spreads in 3 great flavours..

Amul_Emmental_Cheese

The Great Swiss Cheese from Amul, has a sweet-dry

flavour and hazelnut aroma

Amul_Pizza_Mozzarella_Cheese


http://www.amul.com/cheese-mozzarella.html

http://www.amul.com/cheese-emmental.html

http://www.amul.com/cheese-emmental.html

http://www.amul.com/cheese-mozzarella.html


Pizza cheese...makes great tasting pizzas!

Gouda Cheese

Fresh Milk


http://www.amul.com/cheese-gouda.html

http://www.amul.com/cheese-gouda.html


Amul Fresh Milk

This is the most hygienic milk available in the market.

Pasteurised in state-of-the-art processing plants and

pouch- packed for convenience

. Amul_Gold_Milk


http://www.amul.com/fresh-gold.html

http://www.amul.com/fresh-fmilk.html

http://www.amul.com/fresh-fmilk.html

http://www.amul.com/fresh-gold.html


Amul Taaza Double Toned Milk

Amul Lite Slim and Trim Milk


http://www.amul.com/fresh-slim.html

http://www.amul.com/fresh-tazza.html

http://www.amul.com/fresh-tazza.html

http://www.amul.com/fresh-slim.html


Amul Fresh Cream

Amul Shakti Toned Milk


http://www.amul.com/fresh-shakti.html

http://www.amul.com/fresh-cream.html

http://www.amul.com/fresh-cream.html

http://www.amul.com/fresh-shakti.html


Amul Calci+

For Cooking

Amul/Sagar_Pure_Ghee

Made from fresh cream. Has typical rich aroma and granular

texture. An ethnic product made by dairies with decades of

experience.


http://www.amul.com/cooking-sagar.html

http://www.amul.com/amulcalciplus.html

http://www.amul.com/cooking-sagar.html


Amul Malai Paneer

Ready to cook paneer to make your favourite recipes!

Utterly_Delicious_Pizza


http://www.amul.com/cooking-paneer.html

http://www.amul.com/cooking-paneer.html

http://www.amul.com/cooking-pizza.html


Mithai_Mate

Sweetened Condensed Milk - Free flowing and smooth

texture. White to creamy color with a pleasant taste.

Masti Dahi

Desserts


http://www.amul.com/cooking-mastidahi.html

http://www.amul.com/cooking-mithai.html

http://www.amul.com/cooking-mithai.html


Amul_Ice_Creams

Premium Ice Cream made in various varieties and flavours

with dry fruits and nuts.


http://www.amulicecream.in/

http://www.amul.com/desserts-shrikhand.html


. Amul_Shrikhand

Amul Mithaee Gulab Jamuns

Pure Khoya Gulab Jamums...best served piping hot.


http://www.amul.com/desserts-gulabjamun.html

http://www.amul.com/desserts-shrikhand.html

http://www.amul.com/desserts-gulabjamun.html


Amul Chocolates

The perfect gift for someone you love.

Amul Basundi


http://www.amul.com/desserts-basundi.html

http://www.amul.com/desserts-chocolates.html


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.


http://www.amul.com/health-toned.html

http://www.amul.com/health-toned.html

http://www.amul.com/healthy-nutramul.html


Awards

GCMMF bags APEDA AWARD for 11th year in a row

Amul Pro-Biotic Ice-cream Gets No. 1 Award At World

Dairy Summit

. Ramkrishna Bajaj National Quality Award-2003

Amul - The Taste Of India (Gcmmf)Receives

International Cio 100 Award For Resourcefulness

Rajiv Gandhi National Quality Award - 1999


http://www.amul.com/RajivGandhiAward.html

http://www.amul.com/cionews.html

http://www.amul.com/cionews.html

http://www.amul.com/ramkrishna.html

http://www.amul.com/photogal/pg051007.html




Amul’s competitors:

13 Amul’s competitors:

Chocolates : Cadbury& nestle

Curd : Nestle& mother dairy

Flavored milk: Britannia & nestle

Butter: Britannia &Nestle

Ice-creams: HLL & Mother Dairy

Cheese: Britannia

Baby Food: Nestlé &Heinz UHT

Milk: Nestle &Britannia

Future Plans



Amul to foray into bottled water

To capitalise on its tremendous

brand equity and offset the margin

pressure on the dairy business,

Amul is planning to foray into the

bottled water segment starting with its home state, Gujarat.

The brand name of the water shall be ‘Narmada Neer’ to

capitalise on the sacred status of Narmada river in Gujarat. It

would be available in 200ml pouches, 1 litre, 5 litre and 20

litre PET bottles.

If the product get accepted in Gujarat, the venture would be

extended to other states in Indian and then Amul could piggy

back on its extensive retail network of five lakh outlets

across the country.

Bottled water could otherwise provide good margins and the

profits from the venture would be primarily used for welfare

of

families in the Amul’s dairy trade. 10 years back, Amul did

take a shot at bottled water through ‘Jaldhara’ which was

produced by NDDB. However the venture failed owing to less

demand for packaged water in market.



But with this market growing bigger and expected to grow at

40% every year, Amul is surely going to benefit. Another

positive for the company is that 40% of total national market

for packaged bottled drinking water is in western India,

which Amul is exploring initially.

But going by scale and investments of Amul, it would seem

that the venture would be albeit on a shorter scale and done

only to fulfill corporate social responsibility.



Vision Of Amul

The vision of Amul is to develop rural India by uplifting the

farmers, empowering women and poor labourers, and in the

process, improving society as a whole.

MISSION 2020

Six decades ago, Sardar Patel had envisioned that dairy

cooperative movement could liberate our farmers from

economic oppression and lead them to prosperity. His dream

was carried forward by far-sighted and visionary leaders like

Shri Tribhuvandas Patel and Shri Motibhai Chaudhary, who

selflessly dedicated their entire lives to this noble cause.

Through his professional acumen and meticulous planning,

as well as leadership skills; Dr. Verghese Kurien successfully

translated this dream into reality. In early 1950’s, when our

cooperative movement was still in its infancy, Dr. Kurien

created the grand design for an apex marketing federation

for dairy cooperatives of Gujarat. After 20 years of persistent

efforts, this organization took concrete shape in 1973 and

has today transformed into a US$ 1.4 billion dairy giant.

Since the foundations of our organization are rooted in the

process of systematic long-term planning, we have also

attempted to emulate the same, in an effort to design our

future architecture. As we take confident strides towards a

grand tomorrow, we need a vision which will force us to



challenge ourselves and stretch our imagination. In order to

achieve quantum and exponential growth, this vision must

be backed up by a concrete action plan, which is grounded in

reality. In view of growth in business volumes and related

complexities, it is pertinent that we have a clear vision for

the next 10 years. This will enable all relevant stakeholders

to align themselves to a common growth platform. In line

with objective, we have prepared a comprehensive roadmap

to guide dairy cooperatives of Gujarat to a glorious future, in

the year 2020.

This plan, appropriately titled “Mission 2020”, envisages that

the dairy cooperatives of Gujarat will have a group turnover

of Rs. 27000 crores by the year 2020. This will be a three-

fold increase over our current group turnover of approx. Rs.

9600 crores. With further expansion of cooperative network,

increase in number and productivity of milch animals; Milk

production in our milk shed area will increase to 231 lakh kg

per day (23.1 million kg per day), at an annual growth rate of

4%. We will be strengthening our milk procurement

infrastructure by installing Bulk Milk Chillers and Automatic

Milk Collection Systems in all our village cooperative

societies.



This will enhance our milk procurement capacity in such a

way, that we easily collect as much as 195 lakh kg per day

(19.5 million kg per day) of milk in the peak flush season.

Through expansion of distribution network, creative

marketing, consumer education and product innovation, we

will leverage effectively on rising income levels and growing

affluence among Indian consumers. While expanding

markets for our existing products, we will create fresh

avenues for growth by tapping the rising demand for new

value-added products. Special emphasis will be given to

strengthening our presence in the large market for liquid

milk, in metropolitan cities. Satellite dairies with combined

processing and liquid milk packaging capacity of 50 LKPD

will be established in major metro markets. Our objective is

to ensure that the maximum share of the consumer’s rupee

goes back to the milk producers.

In view of the high demand and procurement projections, we

plan to double to processing capacity of our dairy plants to

20.7 million kg per day, by 2020. This would include multi-

fold capacity expansion for major product categories

including milk powders, Ice-cream, paneer, cheese, ethnic

sweets, curd, ghee and other dairy products. Milk drying



capacity will also be enhanced by 200 MTs per day, to

process additional milk in

the peak season. For increasing milk production, it is vital to

provide nutritious feed to milch animals. For this reason, we

plan to expand our cattlefeed manufacturing capacity, more

than four times to 12000 MTs per day, by 2020. At current

prices, total investments envisaged for creating all the

required infrastructure would be Rs. 2600 crores (Rs. 26

billion) till the year 2020. I am glad to inform you that the

plan 2020 has been shared with all the member unions. It

has also been discussed in the respective boards and

necessary resolutions for investments have also been taken.

This detailed plan will serve as our comprehensive roadmap

for the next ten years and will ensure a glorious future for

our dairy cooperatives.

We are well poised to lead the Indian dairy cooperative

sector to a position of eminence in our national economy.

Our efforts will ultimately serve to bolster the rural economy,

which can then create an effective shield to protect our

nation from any future economic crises. We will succeed in

our endeavor with positive and continued support and

encouragement from all the government quarters, as has

happened in the past. The very foundation of any



cooperative organization is a transparent and fair democratic

electoral process taking place at the scheduled intervals for

the cooperative structures to survive and faith of its member

remain intact, it is imperative

that elections to various tiers of the cooperatives take place

on schedule.

Future growth

The demand for milk land milk products is expected

to grow at a very rapid rate due to population growth,

urbanization and increase in income levels and changes in

food habits, and is likely to reach at 181 million tones in

2011-12 and precipitate consumption is expected to rise to

about 152 kg per year. The increase in demand for diary

products will increasing pressure on dairy production

systems, traditional breeds and feeding practices are likely

to give way to higher yielding breeds, associated

intensification of production systems, increased disease

risks, pollution and animal health issues and a greater

reliance on concentrates. Currently, Indian dairy farming is

dependent on crop residues, natural resources, and open

grazing as sources of feed. Expansion of these traditional

sources of feeds and fodder to support a large increase in



dairy production is unlikely, as available grazing areas and

other common property resources are shrinking and already

degraded. Additional milk output will surely have to come

from intensified systems based on stall-feeding and

increasingly using concentrate.

BIBLIOGRAPHY

WEB SITES SERVED:

WWW. GOOGLE.COM.

WWW.AMUL.COM.

WWW.WIKIPEDIA.COM.

BOOKS REFERED:

BOOKLET OF AMUL BY KHAIRA UNION DISTRICT.



CHAPTER 5



CONCLUSION

Firms that desire to do business in emerging

markets need to understand the dynamics of the economic

and social environment while designing country practices.

The story of AMUL points to several lessons that can be

drawn in this context.

Long term perspective: Given the state of

economy in emerging markets, a long term perspective and

strategy is needed to realize the potential of these large

markets.

Consequently, new entrants need to take a long term view

on investment and develop business practices that help

understanding of the environment, build relationships, and

develop competencies for operating in such markets.

To succeed in these markets, firms need to adopt

a long-term perspective of the business and simultaneously

develop supplier capabilities on the one hand while

enhancing purchasing ability of potential customers. A



network of firms appears to be the best way to

operationalize the above requirements. Large entrants may

have to develop such networks, while small firms may be

best served by becoming niche players and join an existing

network. Managing such distributed networks would require

effective supply chain coordination and capability building at

each entity.

Cooperative network with interlocking arrangement as

in AMUL is one example of success in managing such

complex supply chain. Of course, the long term challenge in

such cases is to bring more members into the network and

increase their capabilities.


milk revolution in india by jelton based on amul

Documents

milk revolution

glass of milk

use of milk

buffalo milk

fond of milk

milk products

milk traders

term milk