A Report on an Industrial Visit to Amul Dairy Anand New

A REPORT ON AN INDUSTRIAL VISIT TO AMUL DAIRY ANAND SUBJECT: PRODUCTION & OPERATION MANAGEMENT PROF. RICHA PANDIT

Date: 28/03/2013 Prepared By: Paramveer Patel Sem ll Div. A Roll no: 06

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 1–2 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            

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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

MILK PROCESSING UNIT

DISTRIBUTION CHANNEL

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

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Homogenization: 60% buffalo milk+40%cow milk Pasteurization : centrifuge process Adding Vitamin D Packing Milk: kept at 1-20 C Storing: 1-40 C

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