2. INDIAN DAIRY INDUSTRY
India is world’s largest producer of dairy
products by volume.
It is accounting more than 18.5% of world’s total milk
production i.e. 146.3 million tones (2014-15).
Also India is world’s largest consumer of dairy products,
consuming almost all of its own milk production.
238% growth last 7 year (Business line 2018)
3.53 US $ Billion),export (Business stand 2015-16)
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3. CONT…
Interests from private sector investors have
facilitated construction of larger dairies
through partnering with dairy processors.
Indian dairy industry is different from other
dairy producing countries as India places its
emphasis on both cattle and buffalo milk.
India nevertheless faces a milk supply gap
due to increasing demand from a growing
middle class population. 3
4. CHALLENGES FACED BY INDIAN DAIRY
INDUSTRY
Procurement (collection)
• The three-tier system of milk collection
Advent of organized retail channels
• Increased availability of branded, packaged
milk
• Reduced role of middlemen, mainly the milk
vendors
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5. Distribution
• Lack of superior cold-storage transport
• Distribution wastage due to improper storage
• No enforcement of HACCP principles
Lack of supporting information systems
• Database maintained by Milk Producers
Organizations in developed countries
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6. KEY FACTS
AMUL means priceless in Sanskrit “Amoolya”
Brand name managed by an apex cooperation
organization –GCMMF
World’s biggest vegetarian cheese brand
World’s largest pouched milk brand
Largest food brand in India
Spurred the white revolution in India
Accreditation with 9001 and HACCP certification by QAS,
Australia.
8. GCMMF - AN
OVERVIEW
Year of Establishment 1973
Members
18 District Cooperative Milk
Producers' Unions
No. of Producer Members 3.6 Million
No. of Village Societies 18,549
Total Milk handling capacity per
day
30 Million litres per day
Milk Collection (Total - 2016-17) 6.44 billion litres
Milk collection (Daily Average
2011-12)
17.65million liters
Milk Drying Capacity 150 Mts. per day
Cattle feed manufacturing Capacity 7800 Mts. per day
Sales Turnover -(2016-17) Rs. 38000 Crores
18. LOGISTICS PROCESS
I. Logistics in collection –
17.65 million liters of milk per day
From about 18,549 separate village cooperative
societies.
Approximately 3.6 million milk producing
member.
II. Logistics in coordination of –
Storing the milk.
Processing the milk.
Distributing the milk.
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20. CONT…
III. Supplier logistics –
Weighing the milk.
Determining of fat content.
Calculation of the purchase price.
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21. EVOLUTION OF “IT”
The evolution of IT in AMUL was took place in
the guidance of DR.B.M Vyas.
The milk collection center at village
cooperative societies, were first automated.
Data analysis software utilization for milk
production estimation and increasing
productivity.
VATS network between all the level of 21
distribution network and GCMMF.
23. BENEFITS OF IT
Processing of 10 Million payments daily, amounting to
transactions worth USD 3.78 million in cash.
Radical changes in business processes - eliminating
middlemen.
Improved delivery mechanisms and transparency of
business operations.
Due to this process, AMUL is able to collect six million
litres of milk per day.
time for
a week to
effecting
couple of
Huge reduction in processing
payments to the farmers from
minute.
24. CONT…
Movement of 5000 trucks to 200 dairy processing
• plants twice a day in a most optimum manner.
Practicing just in time supply chain management with six
sigma accuracy.
Online order placements of Amul’s products on the
web.
Distributors can place their orders on the website.
Amul exports products worth around US$
3.25 billion to countries in West Asia, Africa, USA Russia
etc.
25. TOTAL QUALITY MANAGEMENT
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There is improvement in quality of milk in term
of acidity and sour milk
Milk union records show 2% reduction in the
amount of the sour milk received from the union
Improved microbiological quality of upcoming
raw milk in the form of methylene blue reduction
This gives better shelf life to the
product
Friday Departmental meetings: to disscuss
issues related to quality.
28. PROCUREMENT
comprised Activities at the village level
developing and servicing the VCSs.
Increasing milk collection, procuring milk, and
transporting it to the chilling and processing units
twice a day.
The VCSs provided the farmers with good quality
animal feed, fodder, and other services like
veterinary first aid.
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29. PROCUREMENT
CHANNEL
(UPSTREAM) On an average around thousand farmers come to sell
milk at their local co-operative milk collection center.
Each farmer has been given a plastic card for
identification.
At the milk collection counter, the farmer drops the
card into a 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.
30. CONT…
Both these details are recorded in the PC. The
computer then calculates the amount due to
farmer on the basis of the fat content.
The value of the milk is then printed out on a
slip and handed over to farmer who collects the
payment at adjacent window.
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32. COLD STORAGE NETWORK
Chillers in proximity of villages
transport to district facilities for
dispatch to consumers/ processing
Prompt
further
units.
Chilled trucks to transport processed products
Delivery to local chillers by insulated rail
tankers and chilled trucks.
Refrigerators and freezers with retailers and
departmental stores to retain freshness. 32
33. DISTRIBUTION
GCMMF coordinated with various unions to get a
regular supply of milk and dairy products.
The processed milk and dairy products were
procured from district dairy unions and distributed
through third party distributors.
To ensure quality and timely deliveries, GCMMF and
the district unions had several mechanisms in
place.
The unions monitored the supplies of milk and th33e
distribution of finished products.
34. DOWNSTREAM FLOW
First leg
Manufacturing units to company depots using 9
and 18 MT trucks
Frozen food below -18°C
Dairy wet 0-4°C
Second leg
Depots to WDs
Transport through insulated 3 and 5 MT TATA
407’s
Third leg
WDs to retailers
Transport through rickshaws
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36. REVERSE LOGISTICS
BOTTLE
from retailer to dairy
DAMAGED PRODUCTS
from customer to retailer then to dairy
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MILK CHURN
from dairy to VCS
POUCH MILK TRAY
from retailer to dairy
37. DIRECT RETAILING
Amul has recently entered into direct
retailing through "Amul Utterly Delicious"
parlors created in major cities.
Amul has plans to create a large chain of
such outlets to be managed by franchisees
throughout the country.
More than 19000 parlor with a turnover of
Rs. 14,400 crores. Business Line 2012
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39. MISSION
2020
Very ambitious future plan –
Turnover of 50000 crore.(three fold increase in the group turn
over.)
Milk production 33.1 million liter/day.
Milk drying capacity 200 mt/day
40. AMUL (RECENTLY IN
NEWS)
Milk via milk train.
Tie up with Adani Logistics.
50 wagon each capacity 24k liter.
Initial transport cost was 40 crores ,reduce it to half.
