`

A PROJECT REPORT ON

“LOGISTICS AND SUPPLY CHAIN MANAGEMENT OF

AMUL MILK”

A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE DEGREE OF MBA

PROGRAM OF

Submitted by Dipesh Sarkar

 DECLARATION

I hereby declare that the information given herein after , statements and related papers
enclosed along with this report , are to the best of my knowledge and belief, true and correct
in all respects.
 ACKNOWLEDGEMENT

I am delighted to present my project report for Gujarat Cooperative Milk Marketing

Federation Limited. I extend sincere thanks to my university and express gratitude to
everyone who contributed to my practical training. Heartfelt thanks to my parents and friends
for their moral support. I acknowledge sole responsibility for any errors and welcome
corrections.
 CONTENTS

• INTRODUCTION AND HISTORY

• FMCG PRODUCTS
• INDIAN FMCG SECTOR
• COMPANY’S PROFILE- An Overview
• GCMMF: An Overview
• STRUCTURE OF AMUL
• GCMMF VALUE CHAIN
• AMUL PATTERN
• SUPPLY CHAIN OF AMUL POUCH MILK:
• MARKET RESEARCH
➢ DISTRIBUTERS SURVEY ANALYSIS ON AMUL POUCH MILK
➢ RETAILER SURVEY ANALYSIS ON AMUL POUCH MILK
➢ CUSTOMERS SURVEY ANALYSIS ON AMUL POUCH MILK
• MAJOR FINDINGS RELATED TO:
➢ PLANT
➢ DISTRIBUTERS
➢ RETAILERS
➢ CUSTOMERS
• SUGGESTIONS AND FEEDBACK
• QUESTIONNAIRE
• BIBLIOGRAPHY
 INTRODUCTION AND HISTORY

In 1946, the Kaira District Cooperative Milk Producers’ Union Limited was established in
response to the exploitation of milk producers in Anand, Gujarat, India, by existing dairies.
Producers faced challenges such as long travel distances, sour milk, and controlled prices by
agents. Influenced by nationalist leaders like SardarVallabhbhai Patel and Morarji Desai,
farmers formed a cooperative to supply milk directly to the Bombay Milk Scheme, breaking
away from Polson Dairy's monopoly.

Initially collecting only 250 liters daily, AMUL, as it came to be known, has grown to collect
8.4 million liters per day. To address perishability, chilling units were established, and
village-level cooperatives organized marginal milk producers. AMUL's Anand dairy
pioneered technology, producing skimmed milk powder from buffalo milk on a commercial
scale. By 2000, India became the world's largest milk producer, with Gujarat leading in
cooperative dairy success. The Kaira Union and AMUL became key players in India's dairy
industry, surpassing many international brands. PHOTOGRAPH OF BHUMI PUJAN OF
AMUL
 PHOTOGRAPH OF BHUMI PUJAN OF AMUL

Looking back on the path traversed by Amul, the following features make it a pattern and
model for emulation elsewhere.

AMUL has been able to:

1. Produce an appropriate blend of the policy makers farmers board of management and
the professionals

2. Bring at the command of the rural milk producers the best of the technology and
harness its fruit for betterment.

3. Provide a support system to the milk producers without disturbing their agro-
economic systems,

4. Plough back the profits, by prudent use of men, material and machines, in the rural
sector for the common good and betterment of the member producers

5. Even though, growing with time and on scale, it has remained with the smallest
producer members. In that sense. Amul is an example par excellence, of an intervention for
rural change.

The Union looks after policy formulation, processing and marketing of milk, provision of
technical inputs to enhance milk yield of animals, the artificial insemination service,
veterinary care, better feeds and the like – all through the village societies.

Basically the union and cooperation of people brought Amul into fame i.e.AMUL a name
which suggests THE TASTE OF INDIA.
 FMCG PRODUCTS

Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year.
Examples of FMCG generally include a wide range of frequently purchased consumer
products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and
detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products,
and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged
food products, soft drinks, tissue paper, and chocolate bar

INDIAN FMCG SECTOR

The Indian FMCG sector is the fourth largest in the economy and has a market size of
US$13.1 billion. Well-established distribution networks, as well as intense competition
between the organised and unorganised segments are the characteristics of this sector. FMCG
in India has a strong and competitive MNC presence across the entire value chain. It has been
predicted that the FMCG market will reach to US$

33.4 billion in 2015 from US $ billion 11.6 in 2003.

The middle class and the rural segments of the Indian population are the most promising
market for FMCG, and give brand makers the opportunity to convert them to branded
products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in
India, have low per capita consumption as well as low penetration level, but the potential for
growth is huge.

The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid
urbanization, increased literacy levels, and rising per capita income.

THE TOP 10 COMPANIES IN FMCG SECTOR

S. NO. Companies

1. Hindustan Unilever Ltd.

2. ITC (Indian Tobacco Company)

3. Nestlé India

4. GCMMF (AMUL)

5. Dabur India

6. Asian Paints (India)

7. Cadbury India

8. Britannia Industries

9. Procter & Gamble Hygiene and Health Care

10. Marico Industries

 NETWORK ADOPTION MODEL BY AMUL FOR ITS SUCCESS

It is interesting to note that AMUL has adopted the network model in early 1950s in a
broader context and more complex environment, well before the approach was recognized in
Western Europe and North America. In the following sections we describe the AMUL story
and elaborate on its practices.

Every day Amul collects 8.4 millon litres of milk from 2.6 million farmers (many illiterate),
converts the milk into branded, packaged products, and delivers goods worth Rs 8crore (Rs
80 million) to over 12 millon retail outlets across India .Its supply chain is easily one of the
most complicated in the world.

Its motto is “never forget your customer”.

Organisation structure

It all started in December 1946 with a group of farmers keen to free themselves from
intermediaries, gain access to markets and thereby ensure maximum returns for their
efforts.Based in the village of Anand, the Kaira District Milk Cooperative Union (better
known as Amul) expanded exponentially. It joined hands with other milk cooperatives, and
the Gujarat network now covers 2.12 million farmers, 10,411 village level milk collection
centers and fourteen district level plants (unions) under the overall supervision of GCMMF.

Markets are primitive and poor in infrastructure. Amul and GCMMF acknowledged that
development and growth could not be left to market forces and that proactive intervention
was required.

Two key requirements were identified.

1. The first, that sustained growth for the long term would depend on matching supply and
demand. It would need heavy investment in the simultaneous development of suppliers and
consumers.

2. Second, that effective management of the network and commercial viability would require
professional managers and technocrats.

To realize their vision with a farmer-centric approach, GCMMF developed a hierarchical

network of cooperatives, forming a robust supply chain. This intricate chain spans from small
suppliers to diverse markets. GCMMF directly oversees only a portion, while third-party
entities (distributors, retailers, logistics providers) play significant roles. Efficient
management of this complex supply chain is crucial for maintaining GCMMF's competitive
position, relying on low consumer prices and a cost-effective system.

Introducing higher value products

Beginning with liquid milk, GCMMF enhanced the product mix through the progressive
addition of higher value products while maintaining the desired growth in existing products

. Despite competition in the high value dairy product segments from firms such as Hindustan
Lever, Nestle and Britannia, GCMMF ensures that the product mix and the sequence in
which Amul introduces its products is consistent with the core philosophy of providing milk
at a basic, affordable price.

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.

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. O

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

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.
 Gujarat Cooperative Milk Marketing Federation GCMMF: An Overview

Distribution Network of GCMMF:

Most producers work with marketing intermediaries to bring their products to market. The
marketing intermediaries make up a marketing channel also called distribution cannel.

Distribution channels are sets of interdependent organizations involved in the process of

making a product or service available for use or consumption.

The Head Office of GCMMF is located at Anand. The entire market is divided in 5 zones.
The zonal offices are located at Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai.
Moreover there are 49 Depots located across the country and GCMMF caters to 13 Export
markets.

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which
aims to provide remunerative returns to the farmers and also serve the interest of consumers
by providing quality products which are good value for money.

CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned
its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.

 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
 Milk collection (Daily Average 2008-09): 8.4 million litres
 Milk Drying Capacity: 626 Mts. per day
 Cattlefeed manufacturing Capacity: 3500 Mts per day
SalesTurnover 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

 LIST OF PRODUCTS MARKETED

Bread spreads:

• Amul Butter
• Amul Lite Low Fat Breadspread
• Amul Cooking Butter
Cheese Range:

• Amul Pasteurized Processed Cheddar Cheese

• Amul Processed Cheese Spread
• Amul Pizza (Mozarella) Cheese
• Amul Shredded Pizza Cheese
• Amul Emmental Cheese
• Amul Gouda Cheese
• Amul MalaiPaneer (cottage cheese)
• Utterly Delicious Pizza
Mithaee Range (Ethnic sweets):

• Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

• Amul Amrakhand
• Amul MithaeeGulabjamuns
• Amul MithaeeGulabjamun Mix
• Amul MithaeeKulfi Mix
• AvsarLadoos

UHT Milk Range:

• Amul Shakti 3% fat Milk

• Amul Taaza 1.5% fat Milk
• Amul Gold 4.5% fat Milk
• Amul Lite Slim-n-Trim Milk 0% fat milk
• Amul Shakti Toned Milk
• Amul Fresh Cream
• Amul Snowcap Softy Mix

Pure Ghee:

• Amul Pure Ghee

• Sagar Pure Ghee

• Amul Cow Ghee

Infant Milk Range:

• Amul Infant Milk Formula 1 (0-6 months)

• Amul Infant Milk Formula 2 ( 6 months above)

• Amulspray Infant Milk Food

Milk Powders:

• Amul Full Cream Milk Powder

• Amulya Dairy Whitener

• Sagar Skimmed Milk Powder

• Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

• Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

• Amul Taaza Toned Milk 3% fat

• Amul Gold Full Cream Milk 6% fat

• Amul Shakti Standardised Milk 4.5% fat

• Amul Slim & Trim Double Toned Milk 1.5% fat

• Amul Saathi Skimmed Milk 0% fat

• Amul Cow Milk

Curd Products:

• Yogi Sweetened Flavoured Dahi (Dessert)

• Amul MastiDahi (fresh curd)

• Amul Masti Spiced Butter Milk

• Amul Lassee

Amul Icecreams:

• Royal Treat Range (Butterscotch, Rajbhog, MalaiKulfi)

• Nut-o-Mania Range (KajuDraksh, KesarPista Royale, Fruit Bonanza, Roasted Almond)

• Nature's Treat (Alphanso Mango, Fresh Litchi, ShahiAnjir, Fresh Strawberry, Black
Currant, Santra Mantra, Fresh Pineapple)

• Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)

• Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite,
Cassatta)

• Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)

Chocolate & Confectionery:

• Amul Milk Chocolate

• Amul Fruit & Nut Chocolate

Brown Beverage:

• Nutramul Malted Milk Food

Milk Drink:

• Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate)

• Amul Kool Cafe

• Amul Kool Koko

• Amul KoolMillkShaake (Mango, Strawberry, Badam, Banana)

Health Beverage:

• Amul Shakti White Milk Food

 Achievements of GCMMF

• 2.8 million milk producer member families

• 13,759 village societies

• 13 District Unions

• 8.5 million liters of milk procured per day

• Rs. 150 million disbursed in cash daily

• GCMMF is the largest cooperative business of small producers with an annual turnover of
Rs. 53 billion

• The Govt. of India has honoured Amul with the “Best of all categories Rajiv Gandhi
National Quality Award”.

• Largest milk handling capacity in Asia

• Largest Cold Chain Network

• 48 Sales offices, 3000 Wholesale Distributors, 5 lakh retail outlets

• Export to 37 countries worth Rs. 150 crores

• Winner of APEDA award for nine consecutive years

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly
50 sales offices spread all over the country, more than 3,000 wholesale dealers and more than
5,00,000 retailers.
 STRUCTURE OF AMUL

2.79 millon milking farmers, 13000 village co-operaive societies, 13 District Co-operative
Milk producers Union+1 Mother dairy

➢ Amul Dairy ,Anand

➢ DudhsagarDairy,Mehsana

➢ SabarDairy,Himmatnagar

➢ BanasDairy,Palanpur

➢ Baroda Dairy,Baroda

➢ SumulDairy,Surat

➢ Panchamrutdairy,Godhra

➢ Uttam Dairy, Ahmedabad

➢ Rajkot Dairy, Rajkot

➢ Vasudhara Dairy, Valsad

➢ Dudhdhara Dairy, Bharuch

➢ Gandhinagar Dairy, Gandinagar

➢ Cheese Plant, Khatraj

➢ Vidya Dairy, Anand

➢ Poly film plant, Gandhinagar

➢ Mother Dairy ,Gandhinagar

GCMMF LTD.(State level apex body - Gujrat Co-operative milk marketing Federation)
Plants of Amul in Delhi/NCR region

Manesarplant(Gurgaon)- 10 lakh litres per day 2.Goga plant(Baghpath, U.P)-3 lakh litres per
day 3.Kwality plant(Palwal)- 3 lakh litres per day 4.Nagar dairy(Hapur)-3.75 lakh litres per
day

Nagar dairy has 150 distributers in NCR region and 60 distributers in Noida and Ghaziabad
region.

GCMMF VALUE CHAIN IN NOIDA AND GHAZIABAD:

1. Production of milk 2. Milk collection 3. Milk processing

13000 village 2.79 million

2.79 million
co-operatives Milking
Milking Farmer
society Farmer

5. Distribution 6.Retailing 7.customers

The above figure describes the hierarchical nature of the cooperative structure. It presents the
Supply chain linking farmer-suppliers of milk with the millions of consumers. Gujarat
Cooperative Milk Marketing Federation or GCMMF is the marketing entity for the State of
Gujarat..
AMUL PATTERN

3 tier structure of Amul

1. Village Dairy Cooperative Society (VDCS): The milk producers of a village, having
surplus milk after own consumption, come together and form a Village Dairy
Cooperative Society (VDCS). The main functions of the VDCS are as follows:

• Collection of surplus milk from the milk producers of the village & payment based
on quality & quantity

• Providing support services to the members like Veterinary First Aid, Artificial
Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed
sales, conducting training on Animal Husbandry & Dairying, etc.

• Selling liquid milk for local consumers of the village

• Supplying milk to the District Milk Union

Thus, the VDCS in an independent entity managed locally by the milk producers and assisted
by the District Milk Union

2. District Cooperative Milk Producers’ Union (Milk Union): The Village Societies of a
District having surplus milk after local sales come together and form a District Milk
Union. The main functions of the Milk Union are as follows:
•Procurement of milk from the Village Dairy Societies of the District

• Arranging transportation of raw milk from the VDCS to the Milk Union.

• Establish Chilling Centres & Dairy Plants for processing the milk received from the
villages.

•Selling liquid milk & milk products within the District

•Process milk into various milk & milk products as per the requirement of State
Marketing Federation.

•Decide on the prices of milk to be paid to milk producers as well on the prices of
support services provided to members.
 3. State Cooperative Milk Federation (Federation): The Milk Unions of a State are
federated into a State Cooperative Milk Federation. The Federation is the apex tier
under the three-tier structure. The main functions of the Federation are as follows:

•Marketing of milk & milk products processed / manufactured by Milk Unions.

• Arranging transportation of milk & milk products from the Milk Unions to the
market.

• Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.

• Arranging for common purchase of raw materials used in manufacture / packaging

of milk products.

STEPS INVOLVED IN SUPPLY CHAIN OF AMUL POUCH MILK:

A) Logistics in collection:

 8.4 million Litters of milk collected daily.

Procurement Channel

• Milking is done every morning and evening. On an average around 2.79 million
milking farmers come to sell milk at their local-co-operative milk collection centres.

• Each farmer has been given a plastic card for identification.

• In this whole process the time consumed is about 3-4 hrs.

 13,000 village co-operative societies.

• Collection of surplus milk from the milk producers of the village and paying them
on the basis of quality & quantity.

• The Village Societies ( Milk Union in Gujarat) having surplus milk after local sales
come together and gives the surplus milk to District Milk Union.

• At the milk collection counter , the farmer drops the card into the box and the
identification number is transmitted to a personal computer attached to the machine
 • The milk is then weighed and the fat content of the milk is measured by an
electronic fat testing machine.Cow milk fat-3-4% ,Buffalo milk fat -6-8% Fat rate,
Rs.350 per Kg, If the milk contains 6% then( for 1Kg 350* 0.06 =Rs.21)

Lesser the fat in the milk , lesser will be the price paid to them.

• All the details are recorded in the computer. The computer then calculates the amount due
to the farmers on the basis of the fat content given above.

• The value of the milk is then printed out on a slip and handed over to the farmers.

• The time consumed in this whole process is 5-6 hrs

B) Logistics in co-ordination of-

 Storing the milk in chillier

➢The milk is stored in large chilling centres of the village co-operative societies.
Around 43 chilling centres.are present.

➢Then the milk is supplied to the 13 District Cooperative Milk Producers’ Union
(Milk Union) through tanks having capacity of about 20,000L .After the whole
demand of 13 unions are fulfilled the surplus milk is supplied to the Mother Dairy ,
Gandhinagar

➢The district Union supplying milk in the Ghazianad and Noida region is
Sabarkantha Dairy, Himmatnagar.

b) Processing of the milk at the milk Union(Sabarkantha Dairy)

• Milk Processing Chart:

• Collection of Raw-Milk

• Electronic Milk Test

• Methyline Blue Reduction Test

• Purchasing And Standardizing Process

• Separation Process
• Quality Check

• Packaging Process

• Cold Storage

• Tankers are received at the reception Dock

• Tankers are checked whether they are sealed properly or not and a small amount of sample
is taken for Quality check

• If there is any quality deviation like acidity is above 0.135 and milk is adulterated with urea,
glucose, starch, vegetable oil then the whole tank is rejected .

1)After this further lab testing is done with the help of these two types of tests:

 Electronic milk test

 Methyline blue reduction test

Electronic Milk Test : Before pasteurizing the milk the samples are taken to the laboratory.
In the laboratory with the help of machine called electronic milk tester, the proportion of SNF
& FAT is checked with phosphate solution. When the colour of the milk becomes yellow, it
is sent for pasteurisation.

Methyline blue reduction test: Another test, which is taken in the laboratory, is called
methyline blue reduction test.This test is conducted for checking for how long the milk will
remain fresh. To check this, 10 ml of milk is taken and 1 ml of methyline blue solution is
added to it. It is then kept under water at 57-degree C. After one hour, if the solution losses its
colour than it is called raw milk. If the solution remains the same even after 5 hours than it is
considered as fresh milk, which remains constant for a long period of time. The dairy fixes
the proportion of FAT & SAF.

 Milk  FAT  SAF

 Buffalo  6%  9%
 Cow  4.5%  4.5%
• After laboratory gives green signal and confirming the raw milk at the reception dock Gross
weight of the tankers are taken and then the tankers are unloaded and their tare weight (empty
weight) is taken.

Net weight of the milk received = Gross weight - Tare weight

• Then the milk is brought in to the house connected with the pump is sent to the milk
processing plant for filtration.

• This is than chilled below 4 degree C in chillers and then stored in milk silos.

• After that milk is processed which has two steps i.e. pasteurizing and standardizing.

2. Pasteurizing & standardizing: After collecting and checking and conducting laboratory
tests, the pasteurizing process is conducted. To pasteurized the milk means to kill all the
germs in the milk by a particular method which was invented by a scientist called James
Pasteur and so the name pasteurization.

In pasteurizing, the milk is first heated at 80C to 82 C for 30 seconds and then it is
immediately cooled below 4 C. By this method they destroy the pathogenic bacteria present
in the raw milk. But if the right degree of temperature is not provided there are chances that
the milk might still contain germs.

After pasteurization the milk is again send to the chilling units (temp below 3 degrees) and
then to the pasteurized Milk tank.

After this process some milk goes to separator machine and remaining is proportionately sent
for standardization.

Diagrammatic representation of Pasteurizer milk process

• Standardization process is known such as it bifurcates the milk in 3 categories varying
according to that FAT & SNF contents. The equipment named OSTA. Autostandardization
adjusts the fat directly. The computer is just ordered whether gold or ,Taaza milk is to be
rationed and the same will be received with appropriate contents.

Ready Milk = Pasteurised + Standardized.

3. Separation process: Separator machine separates two kinds of products, skimmed milk &
cream, through channels. There are 100 disks fixed in separator machines, which revolve at
5000 rpm(revolution per minute). It is taken to the tanks, which has the capacity of 20000
litres. Whenever the milk is needed from the tank, it is tested in the laboratory and the deficit
proportion fat is added by mixing cream. This process continues for 24 hours.

4.Quality CheckPasteurized milk is sent for a quality check in the Quality Assurance
laboratory of the dairy plant. Within 14 seconds FAT and SNF proportion is received

5. Packing Process: After this the milk is sent for packing to the milk packing station in the
dairy plant. At the milk packing station(Nagar dairy) this whole process of processing of milk
is again repeated . In the milk packaging station there are huge pipelines and behind each of
them there is polyfill machine from which the material to pack milk comes out. The pouches
are kept in the crates and stored in the cold room stores.

6. Storage:Then the milk is sent to the cold storage of the dairy where the milk is stored until
it is dispatched. Here the milk is stored at temperature ranging from 5 C to 10 C, it is
maintained with the help of exhaust fans having silicon chips. The damaged pouches are kept
a side and the milk is once again put to the tank.

• In the cold room the crates are stacked on the lorry and brought to the dispatch dock . From
the dock they are loaded in the milk vans and finally dispatched to the distributers who
supply it to the retailers and then the milk finally reaches the customers.

7.Distributing and marketing of milk BY GCMMF.:The marketing and distribution of milk

processed and manufactured by milk unions is done by GCMMF.

• Distributers supply it to the retailers and then the milk finally reaches the customers.

• Arranges transportation of milk & milk products from the Milk Unions to the market.
• GCMMF takes the daily demand from the distributers and accordingly inform it to the
packing plant(Nagar dairy)

A zero level of channel also called A direct marketing channel consists of a manufacturer
selling directly to the final customers.

A one level channel; contains one selling intermediary such as retailer to the final customers.

A two level channel two intermediaries are typically wholesaler and retailer.

A three level channel are typically wholesaler, retailer and jobber in between.

GCMMF has an excellent distribution. It is its distribution channel, which has made it so
popular. GCMMF’s products like milk and milk products are perishable. It becomes that
much important for them to have a good distribution.

Distribution Chart of GCMMF:

• Milk

• Wholesaler

• Retailer

• Customers

We can see from above figure that GCMMF distribution channel is simple and clear. The
products change hands for three times before it reaches to the final consumer. First of all the
products are stored at the Agents end who are mere facilitators in the network. Then the
products are sold to wholesale dealers who then sell to retailers and then the product finally
reaches the consumers.
AMUL PARLORS

Amul has come out with a unique concept of Amul Parlors. They have classified them under
four types namely:

• Center for excellence

• On the Move

• Amul Parlours

• Amul Preferred Outlets

1.Center for Excellence: These Amul Parlours are specifically at a place, which has a class of
excellence of its own. We can find such parlors at the Infosys, IIMA, NID Ahmedabad etc.

2. On the Move: These parlors are at the railway stations and at different state bus depots

across different cities.

3.Amul Parlours: These parlors can be seen at different gardens across different cities. These
are fully owned by Amul.

Amul Preferred Outlets: These are the private shops that keep the entire of product range of
Amul. They also agree not to keep any competitor brands in the outlets. They can keep other
brands that are in the non-competitor category.