Transcript

AMUL DAIRY

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E-Commerce Case Study Presented by: Rajiv Bhatnagar Chairman cum Managing Director National Small Industries Corporation India AMUL DAIRY

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AMUL DAIRY The Kaira District Co-operative Milk Producers Union Limited, popularly known as Amul Dairy is a US $ 500 million turnover institution It is a institution built up with a network of over 10000 Village Co-operative Societies and 500,000 plus members

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AMUL DAIRY The product range includes milk, butter, cheese, chocolates, ice creams and pizzas Amul has been accredited with ISO 9001 and HACCP Certification by QAS, Australia ± the first food company in Asia and one of the 100 companies in the world to receive the HACCP Certification

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AMUL DAIRY Formed in 1946, Amul initiated the dairy cooperative movement in Indian through an apex cooperative organization called the Gujarat Cooperative Milk Marketing Federation (GCMMF) Today this movement is being replicated in 70,000 villages in over 200 Districts in India, transforming the life of Indian villagers Amul was chosen to show case successful e-commerce cases in India for setting an example for building an online bridge to its customers Contd..

PROBLEMS TO BE ADDRESSED :
PROBLEMS TO BE ADDRESSED Logistics in collection of : 6 million liters of milk per day from about 10600 separate Village Cooperative Societies Approximately 2.1 million milk producing members Logistics in coordination of : Storing the milk Processing the milk Distributing the milk

PROBLEMS TO BE ADDRESSED :
PROBLEMS TO BE ADDRESSED Supplier logistics: Weighing the milk Determination of fat content Calculation of the purchase price Strong challenge from large organized dairies due to globalization Considerable time (One Week) to test the milk and work out the purchase price through pass book system resulted in delayed payments to farmers Contd..

The computer then calculates the amount due to farmer on the basis of the fat . AMCUS facilitated to capture member information. Amul studied its existing functions and operations to formulate an IT plan for spearheading its growth in the long term perspective THE NEED Slide 8: Thrust was given to integrate the existing applications with ICT Tools through redesign/reorganisation of existing software applications.wise Integrated Application System (EIAS). Both these details are recorded in the PC. volume collected and amount payable to each members electronically. Amul decided to leverage on the strengths of an ERP System and took major initiatives in this direction in 1994. Each farmer has been given a plastic card for identification. SHIFT PROCESS Slide 10: Amul started implementing the ERP in phases Automatic Milk Collection System units (AMCUS) at village societies were installed in the first phase to automate milk producers logistics. The focus was to provide a seamless flow of information leveraging for the enterprise¶s decision making process. The implementation project was named as Enterprise. Amul also recognized the need to connect its regional and field offices through e-media. around thousand farmers come to sell milk at their local co-operative milk collection centre. IMPLEMENTATION Slide 11: On an average. Tata Consultancy Services was hired to guide them in its implementation. IMPLEMENTATION Contd« Slide 12: At the milk collection counter. THE NEED Contd« Slide 9: Company zeroed in on ERP as means to keep pace with dynamically changing business environment. milk fat contents.Slide 7: A need was felt to look for a strategy to make its operations competitive and streamline the collection and production processes of Milk products with the help of ICT tools. 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.

content. there are plans to introduce features like Internet banking services and ATMs which will enable milk societies to credit payments directly to the seller¶s bank account. As a large amount of detailed history on milk production is available in the database. Indian Institute of Management ± Ahmedabad supplemented Amul¶s IT strategy by providing an application software ± Dairy Information System Kiosk(DISK) to facilitate data analysis and decision support in improving milk collection.. IMPLEMENTATION Contd. reproductive cycle and history of diseases. Slide 17: Uses automated milk collection system units for collection of milk Customized ERP system which is used in conjunction with GIS Use of data analysis software for forecasting milk production and increasing productivity All zonal. IMPLEMENTATION Contd. Amul is also using Geographic Information Systems (GIS) for business planning and optimization of collection processes. medical history of the cattle. Slide 16: Going forward. The customized ERP. regional offices and member¶s dairies through VSATs for seamless exchange of information. the farmers can even have access to a multimedia database on innovations captured by Srishti. IMPLEMENTATION Contd. to smart cards which can be used to withdraw cash from ATMs. farmers can have access to information related to milk production. the system can be used to forecast milk collection and monitor the produce from individual sellers. Slide 15: The kiosk would also contain an extensive database on the history of cattle owned by the farmers. Besides this. IMPLEMENTATION Contd« Slide 13: Amul also connected its zonal offices. In line with this vision. officials at Amul are looking at upgrading the plastic cards which are being currently used only for identification purposes. IMPLEMENTATION Contd.. including best practices in breeding and rearing cattle.EIAS has been implemented across the organization integrating various operational departments.. regional and member diaries connected . The value of the milk is then printed out on a slip and handed over to farmer who collects the payment at adjacent window.. Using the same system. an NGO working with IIMA. Slide 14: In addition to EIAS.

Africa and USA Slide 21: REAPING RETURNS Contd« The decision making process has rapidly improved since real time data is available on the click of a button. New Zealand. amounting to transactions worth USD 3.coop domain to position its brand in a distinct way. Amul exports products worth around US$ 25 million to countries in West Asia. REAPING RETURNS Contd« Slide 20: REAPING RETURNS Contd« Online order placements of Amul¶s products on the web.com especially meant for accepting orders from stockists and promoting Amul¶s products via e-commerce. REAPING RETURNS Slide 19: Huge reduction in processing time for effecting payments to the farmers from a week to couple of minutes after implementing the ERP.eliminating middlemen and bringing the producers closer to the customers. Processing of 10 Million payments daily. Controlling the movement of 5000 trucks to 200 dairy processing plants twice a day in a most optimum manner. AMUL is able to collect six million litres of milk per day. Britain. Slide 22: ACKNOWLEDGEMENT Matter in this study has been sourced from Express Computers Slide 23: Thank you . Distributors can place their orders on the website www.through VSAT One of the first five Indian organization to have web presence Made IT education compulsory for all its employees. Singapore and Thailand. Practicing just in time supply chain management with six sigma accuracy. today. Due to this process. Easy monitoring of crucial management practices like demand versus supply with the help of ERP . Improved delivery mechanisms and transparency of business operations. AMUL¶S IT ROADMAP Slide 18: Radical changes in business processes . As a result of on-line initiatives.amul2b. Company has started receiving queries from overseas agents for distribution of its products in countries like US. Opted for the .78 million in cash.

USA. Singapore and Dubai Supply & distribution . Has also connected all zonal. Each of amul offices are connected via internet and all of them send daily reports on sales and inventory to the main system at Anand. who collects the payment from adjacent window With the help of IT farmers receive their payment within minutes How AMCUS work Supply management through internet : Amul makes over 10 million payment transactions daily. Each farmer is given a plastic card for identification Computer calculates amount due to farmer on the basis of fat content The value of the milk is then printed out on slip & handed over to the farmer.000 retail outlets.000 villages and 200 districts in India are part of it.000 stockists who in turn supply 500. On the logistics more than 5000 trucks move milk from the villages to 200 dairy processing plants twice a day according to a carefully planned schedule. GCMMF markets its products through 50 sales offices throughout India and distribution is done through a network of 4. It¶s ERP software named as Enterprise Wide Integrated Application System(EIAS) covers a plethora of operations like market planning advertising and promotion. distribution network planning.AMUL ± Taste Of India : Formed in the year 1946 Amul is the leading food brand in India Has been accredited with ISO 9001and HACCP Certification by QAS Australia-the first company in Asia to receive HACCP Certification. At the distribution end stockists have been provided with basic computer skills. Amul initiated the dairy co-operative movement in India and formed an apex cooperative organization called Gujarat co-operative Milk Marketing Federation(GCMMF) and today 70. Amul experts assist them in building promotional web pages. Amul Cyber stores have been setup in India. How AMCUS work : Amul has installed over 3000 Automatic milk collection system units(AMCUS) at village societies to capture member information. milk fat content. These member dairies collect milk from members who supply milk twice a day. AMUL ± Taste Of India Slide 8: GCMMF: An Overview GCMMF is an apex co-operative organization that comprises of affiliated member dairies/district milk unions each having it¶s own manufacturing unit. volume collected and amount payable to each member. Computer equipment measures & records qualities & quantities collected. regional & member dairies through VSAT Supply management through internet Supply & distribution : At the supply end a computerized database has been setup of all suppliers & their cattle.

Amul Cyber store : Amul Cyber store Strong initiatives in e-commerce : Amul has linked distributors to the network & also incorporated web pages of top retailers on their website Distributors can place their order on website amulb2b. to smart cards which can be used to withdraw cash from ATMs.com Automated supply & delivery chain Practices just in time supply chain management with six sigma accuracy Strong initiatives in e-commerce Accolades : Accolades CIO 100 AWARD recognizes organizations around the world that excel in positive business performance through internet & IT management GCMMF also won the prestigious Ramkrishna Bajaj National Quality award in 2003 for adopting noteworthy quality management practices for logistics and procurement Future Plans : Introduce Internet Banking Services & ATMs which will enable Milk societies to credit payments directly to seller¶s bank account Officials at amul are looking at upgrading the plastic cards which are being currently used only for identification purposes. Future Plans .

as the crisis spread through key transmission channels such as massive reversal of private capital flows and significant decline in trade volumes. as well as marine products among the worst hit industries. it is the poorest and the most vulnerable. $ 1. soaring commodity prices riding on the back of raging energy-led inflation was threatening global food security. The crisis in US and other western countries is a natural consequence of improper regulation of financial markets. Export-oriented sectors have suffered a major setback with the diamonds. Even developing countries were not spared. sending prices of all commodities on an upward spiral. Panic buttons were finally pressed after the high profile collapse of major Wall Street icons. As always. Large scale debt defaults and subsequent credit-crunch sparked off decline in demand. who are the hardest hit. unrest & suffering. is also experiencing a relative slowdown. Since then. Globalization did the rest as the crisis spilled over to other parts of the world.2 trillion Indian economy. leather. 2009 Madam and Gentlemen. Maximum impact of the economic meltdown has been on sectors with high degree of exposure to global economies. as exuberance transformed into despair.Chairman's Speech: 35th Annual General Body Meeting held on 5th June. leading to the current world-wide economic recession. across the world. This world-wide economic turmoil is creating a human crisis of epic proportions. While the developed countries are intent on protecting the economic interests of their own wealthy elite. their very last concern is for the billion people around the world who do not have enough to eat each day. GDP growth of 7% in the last financial year is the slowest pace of growth that our economy has witnessed since 2003. this year. peace and harmony for all its citizens. airlines and hotel industry. Dwindling incomes and loss of employment is expected to push an addition 40 million people into poverty. Only a year back. which in turn led to speculative subprime lending. Every nation aspires for happiness. the transformation in global sentiments has been quite dramatic. The extent of impact on developing countries had a direct correlation with degree of integration with global markets. A potent lesson for emerging economies is that some degree of caution must be exercised while embracing globalization and liberalization. transformed into a worldwide depression by 2008 and this scenario has every chance of stretching right through 2009. which is largely structured around its huge domestic market. financial services. textiles. the real burden of this economic crisis will end up being offloaded onto the backs of the world¶s poor. gems & jewelry. Weakening export demand has led to production decline and large-scale . dependency on export demand and dependency on remittances from abroad. Another demonstration of policy mismanagement from these very same developed countries triggered an unprecedented financial crisis. stock markets. It is ironical that global over-exuberance of 2007. The current global economic meltdown has quite understandably led to disquiet. such as information technology. through integrated international trade and financial systems. Limited dependency on export demand has cushioned India from the deep recession being experienced elsewhere around the globe. Ultimately. private sector banks. Lop-sided priorities of developed countries in diverting agricultural output from food to fuel had destabilized supply-demand balance. Economic prosperity with equitable distribution of growth is the key to achieving these desirable objectives.

which otherwise suffers the worst consequences of any economic crises. This focus has clearly paid rich dividends as our own cooperative organization registered a business growth of 28%. If rural India finds itself comfortably insulated from the global turbulence.3 lakh villages. rescuing our nation from the clutches of this economic slump. were the first to collapse. in terms of milk and dairy products. By effectively linking rural producers to large urban markets. Dairy cooperatives have already generated employment for 13. building strong safety mechanisms into it. which is not based on solid foundation of ground reality. greed and unwarranted exuberance. will definitely undergo sharp corrections. Massive fund withdrawal by FIIs from Indian financial markets has pushed Indian retail investors into depths of despair. IT and financial services industry. the process of reverse migration from cities to villages has already begun. best employment option for these displaced diamond or textile workers would be to buy one or more cattle and sell milk to the local cooperative society. On the other hand. Impact on small and medium enterprises has been particularly severe as demand slump has been accompanied by liquidity and credit crunch. their demand is not likely to be affected by transient economic slumps. provided they continue to receive favorable support from our policy-makers. dairy cooperative sector has always had its feet firmly planted on the ground. Our . which were riding a wave of speculation. Dairy cooperatives will therefore play a major role in alleviating the adverse impact of economic slowdown in India. Since milk and milk products are basic staples for every Indian household. in case. sooner or later. jewelry and leather. As job opportunities in urban manufacturing sector evaporate. While safeguarding food security of our nation. Dairy cooperative movement has always helped to provide a safety net to the most vulnerable and marginalized sections of our population. against the backdrop of global recession. our rural economy may well turn out to be the ultimate savior of urban economy. facing substantial loss of revenue. which employ millions of women workers. While some parts of urban India are definitely whining in the current scenario. stock markets and consumption credit. They have further potential of generating employment for millions of additional rural families.job losses in export manufacturing sectors. it would be a revelation to our policymakers that rural India still continues to shine brightly. along with their families. Drastic job cuts have already taken place in sectors like textiles. thereby generating regular income for themselves and their families. circumstances force them to migrate back to the villages. dairying presents the most attractive alternate employment opportunity for these women. in these times of crises. we have had a very clear focus on fulfilling the huge demand within domestic Indian market. across 1.4 million households in rural India. it is because sectors like dairying have appropriately diversified the rural economy. collateral damage also spilled over into other economic arenas. As their bubble burst leading to erosion of wealth and consumer confidence. is not only downsizing but is also trimming income levels of its workforce. due to low confidence-level in the banking sector. Unlike bubble economies such as real-estate and stock markets. cooperatives have ensured a safe future for the dairy farmers of India. Back in the village. The underlying lesson for all of us is that speculative growth. we have also contributed significantly towards shielding our rural economy from the adverse impact of this economic slowdown. Overheated sectors such as real estate. gems. Right since our inception. In fact.

Dairy nations with high dependence on export market have been hit the hardest. In a classical case of µrebalancing¶. If this threat materializes. 30% in telecom. From a peak of US$ 5500 / MTs in 2007. this premise can be jeopardized as Indian farmers now face a real threat of subsidized imports flooding our dairy markets. With their sharp focus on domestic Indian market. our farmers were unable to reap any benefits from high global prices. in an effort to curb inflation. While ensuring that our country becomes self-sufficient in milk production.3 lakh villages to consumers in urban towns. In recent times. triggering further misery for our national economy. as well as enhanced production. in addition to high growth in insurance and housing. Global dairy industry has not escaped the adverse consequences of this pandemic economic turmoil. Similarly international price of Butter-oil (Ghee) has crashed from a peak of US$ 6000 / MTs to US$ 1800 / MTs. connecting farmers in 1. growth in own rural economy has the potential of offsetting any slowdown in the urban economy. If our policy makers continue their sustained support to rural organizations such as dairy cooperatives. Accumulation of surplus inventory in US & EU is a strong indicator that dairy prices may undergo further correction. 15% in durables. but will also create an effective safety shield against future economic turbulence. we have also unleashed a socio-economic revolution in rural India. support and a favorable policy environment to dairy cooperatives. prices of Skimmed Milk Powder have crashed to US$ 1800 / MTs. our government moved swiftly to ban exports of milk powder for six months. Now that the international market has crashed. the urban community can live comfortably and peacefully. If the central and state governments continue to provide encouragement. not only will India emerge triumphant from the current crises. Dairying can be a critical component of any national effort to re-vitalize Indian economy. On account of world-wide recession and decrease in global demand. our farmers expect the government to act even more swiftly to prevent subsidized dairy imports from ruining our vital dairy economy. we have built supply chain for liquid milk and milk products. wealth and prosperity. . However. At that point in time. thereby giving growth impetus to rural markets.dairy cooperatives ensure that Indian farmers get the maximum share of consumer¶s rupee. this sector can play a pivotal role in our national strategy to combat the current economic turmoil. Higher disposable income among consumers in rural areas is leading to smart buying at value-for-money prices. rural India is contributing most to the country¶s health in terms of employment. international prices of all dairy commodities have declined drastically. unlike in the western world. Urban business organizations of all size and dimensions are now turning their attention towards rural consumers. In the current scenario. Revenue inflow from dairying has contributed towards strengthening rural purchasing power. Dairy trade has entered a slump phase amidst weakening market conditions. rural consumption has witnessed 20% growth in FMCG products. where farmers receive only 30% of the consumer¶s dollar. in an effort to beat the economic slowdown. EU has already re-introduced export subsidies and production incentives in form of price support to dairy farmers. a vital pillar supporting our rural economy may collapse. When international prices of Skimmed Milk Powder surged upwards in 2007 to US$ 5500 / MTs. dairy cooperatives have successfully insulated Indian farmers from all the turbulence in global dairy trade. In a systematic manner. By empowering rural India. US government has also reactivated price support to dairy industry.

24 lakh kilograms (11. Amulya recorded a growth of almost 12%.87 per cent over 75. despite intense competition in this category. our Federation¶s Annual Report and the Audited Accounts for the year 2008-2009. I am also pleased to note that our Federation has done remarkably well in most of the value added consumer packs. The network of more than 4000 parlors in almost all major . RETAILING The concept of Amul parlors initiated in 2002 has come a long way and has today. Oil cakes and molasses are two vital ingredient used in the manufacture of cattle feed.67.19 lakh kilograms ( 8. was recorded during January 2009 at 114. We managed to achieve 17 per cent value growth in Butter. Our sales in Amul Processed Cheese have shown consistent and very impressive growth of 25%.11 billion).41 crores (Rs.31 crores ( Rs.9 per cent growth that we had achieved in 2007-08. Last year. Sales of Amul Milk in pouches have grown by 44% in value terms. This measure will go a long way towards ensuring sustainability of our dairy sector. In the Infant Milk Food category.7 per cent to reach Rs. when viewed from the perspective of 22. I now present to you.14 million kg) per day. sales of our Federation registered a quantum growth of 27. UHT milk has also shown an impressive growth of 26%. which has eroded the viability of dairying as an economic activity. we have given special emphasis to low unit value packs. 5255. With favorable support and encouragement from our policy-makers.9 per cent. In the dairy whitener segment.6 million kg) per day achieved during 2007-08. driving domestic prices as high as 100%.55 billion). We have also successfully demonstrated our ability to process almost 11 million litres of milk per day. Export of oil cakes to Europe for biofuel use has risen dramatically in last one year. last year. 1 Ice-cream brand in India leaving a wide gap with the nearest competitor. evolved into the most visible face of brand Amul. This high growth of 14. This is an extremely impressive growth. At the same time we have remained No. Amul Ice-cream has shown an impressive growth of 16 per cent in value terms over the last year. The highest procurement as usual.87 per cent in milk procurement has been achieved. representing a quantum growth of 14.Our dairy farmers are already reeling under impact of sharp escalation in cattle feed costs. In our effort to ensure that all sections of our society are able to afford Amul Butter. our brand Amulspray registered a growth of 20%. REVIEW OF OPERATIONS MILK PROCUREMENT Total milk procurement by our member unions during the year 2008-09 averaged 87. our turnover was Rs. 52.7 million kg) per day. after an impressive growth of 12.6711.90 lakh kilograms ( 7. dairy cooperatives will certainly play a pivotal role in the national effort to overcome the current economic crises. Our central government must put in place a quota system to regulate export of oil cakes. SALES During the year.

Today. Ice-cream scooping parlors. 3500 Distributors for Value added milk products. Frozen and Fresh products simultaneously through our versatile distribution highways. every year. the latest addition to the retailing revolution are yet another blockbuster from the house of Amul. it has also helped us in our endeavor to reduce middle-men from the supply chain. We have not been able to export Milk Powder in bulk packing in larger quantity due to fall of world market prices by nearly 50% as compared to previous year. The addition of more than 2000 parlors during the current year is largely attributed to our channel partners i. Taking cue from the success of our parlors. The relentless focus on expansion of Amul parlors is now paying us rich dividends. DISTRIBUTION NETWORK Over a period of time we have built unique capabilities of distributing Ambient. UHT Milk etc. Moreover. We have further consolidated our growth in consumer products including Paneer. Cheese. We have also made giant strides forward in reaching out to millions of railway commuters by setting up more than 50 Amul stalls across major railway stations of the country. This is going to give us more and more competitive advantage. Firstly. Butter. This is extremely encouraging and indicates the high trust that our customers place in Amul Brand. EXPORT Despite unfavorable conditions in international dairy market. This retailing initiative has not only enabled us to interface directly with consumer. two key initiatives have been taken during the year. ensure that Amul Products are available to all segments of consumers in India through more than 2 Million outlets. commitment from our sales team and all our channel partners dealing in milk. Chilled. The retailing business alone fetched us a sales turnover of more than Rs. To enhance further efficiency in distribution.200 Crores during the current year.e. these parlors also provide us with an effective platform to introduce all the innovative products that we launch. we plan to set up another 300 railway parlors during the coming year. we are poised to divide the value added product lines amongst three sets of Distributors to cater to the same market. 1800 Distributors for Fresh Milk. .133 crores against Rs. our export business reached Rs. The Indian Railways have also recognized our efforts and with active support from IRCTC. we expanded competency based distribution by inducting about 300 Distributors having expertise in servicing specific market segments and secondly. We expect to add 200 more parlors in the coming year.125 crore last year. we plan to take the total tally of Amul parlors to 10000 by adding 6000 parlors during the coming financial year.towns of the country bears testimony to the fact that the model is hugely scalable and inherently sustainable. ice-cream and dairy products. our wholesale distributors who have embraced the concept by starting their own parlors and also motivated franchises to create parlors for meaningful employment.

our culture as well as our operational systems and processes. prepared their Mission Statements & Business Plans for next five years. Our Amul Yatra Programmes ensure that our every new distributor and other business partners visit Anand to get an exposure to our co-operative structure. . our Member Unions are implementing Internal Consultant Development (ICD) intervention for developing self leadership among member producers and there by enabling them to manage their dairy business efficiently leading to their overall development. (DP Section). 28 crore and our member unions have already received financial assistance of more than Rs. CO-OPERATIVE DEVELOPMENT PROGRAMME During the last Nine years. In order to strengthen knowledge and skill base of young girls and women of the villages about milk production management. with technical collaboration and resources of Anand Agriculture University. Government of India has already sanctioned financial assistance of more than Rs. Dairying & Fisheries. Member Unions continued to implement the module on Vision Mission Strategy (VMS) for primary milk producer members & Village Dairy Cooperatives. our member unions have submitted project proposals to Department of Animal Husbandry. Till today total 6012 VDCS have prepared their mission statement and Business plan. To update them with modern marketing concept a workshop on Marketing and Sales Management is being conducted in collaboration with a premier business school. This will ultimately serve to bring all Stake holders under common platform in Strategic Planning Process of the Organization and to develop Self Leadership amongst each individual Distributor. 11. During the year. Member unions are reviewing this business plan every year under VMS annual revisit programme and facilitate VDCS to prepare action plan for next year to propel the momentum gained through VMS. Federation. y Clean Milk Production For strengthening infrastructure for quality and clean milk production and to install Bulk Milk Coolers at VDCS.36 crore. 1100 Distributors have been benefited from this workshop. SLDP (Self Leadership Development Programme) for Distributor is another major initiative taken during the year primarily with objective of training them to implement TQM at their and at the retailer level. The initiative continued this year as well and so far. has initiated ³Mahila Pashupalan Talim Karyakram´ for women resource persons of the member unions and during the year. Under the project. 736 Village Dairy Cooperative Societies (VDCS) have conducted their Vision Mission Strategy Workshops. 486 women resource person have been trained under this programme. about 7400 Distributors and other business associates have visited Anand on Amul Yatra.In Federation. Facilitated by specially trained consultants. So far. Ministry of Agriculture. Government of India. our distributor is considered to be the real Marketing Manager.

In the first year they have registered 72904 and in second year they have registered 70435 ³Non Pregnant Not Calved Even Once´ and ³Non-pregnant Dry´ milch cattles and buffaloes under FIP. and animal health related problems. 7956 VDCS celebrated Red Tag Day on ³Gandhi Jayanti´ .2nd October and the Unions also awarded best performing VDCS. INFORMATION TECHNOLOGY INTEGRATION GCMMF has further advanced its Information Technology solutions by linking all the Milk Plants of the member unions with its customized ERP System (EIAS & Web EIAS) to improve the liquid milk marketing operations. To implement FIP.in. our member unions celebrated 61st year of Independence. our Member Unions have identified & imparted training to 9479 core groups formed of milk producers and Management of the VDCS. y Sustainable ecological development With a target of planting three trees per member. For this activity. we have received ³Good Governance award´ from ³Srishti´ during year 2007 as well as 2008. till March 2009.Continuing the cleanliness drive at village level. 15th August 2008 in a unique way and our members have planted 52. It has also developed Sales Performance Monitoring System across various levels.amul.74 lakh sapling across 21 districts of Gujarat. our members have planted more than 71. milk unions have deployed 44 FIP teams of veterinary consultants and they are working in 1960 villages. The Federation has also enhanced the Financial Control System in EIAS. To enhance the level of Cleanliness this year. y Fertility Improvement Program The Board of Directors of Federation. Further to smoothen business operations across the supply chain and strengthen the linkages between GCMMF and its Member Unions. The FIP concept has an integrated design to overcome animal nutritional.65 lakh trees and demonstrated their commitment towards preserving and contributing to improvement of the environment.org. considering a long term vision for reducing infertile animal from their milkshed. FIP is being monitored through www. During last two years. decided to implement Fertility Improvement Programme (FIP) from year 2007-08. out of which 52272 milch animals has become pregnant. your Federation has decided to implement common ERP system for entire enterprise. FIP has helped milk producers to convert their unproductive milch animals to productive one and also by adopting scientific animal husbandry practices they are earning more at less cost. Your Federation has also developed ³Online Cattle Feed Raw Material Pricing/Contract Information Sharing System´ to enable smooth collaboration between member unions for purchase of Cattle Feed raw material. gynecological. .

GCMMF has further advanced the use of Geographical Information systems by enhancing the GIS application and implementing GIS based Sales Analytics solution across various offices. Special emphasis will be given to strengthening our presence in the large market for liquid milk. MISSION 2020 Six decades ago. Rs. envisages that the dairy cooperatives of Gujarat will have a group turnover of Rs. in the year 2020. Sardar Patel had envisioned that dairy cooperative movement could liberate our farmers from economic oppression and lead them to prosperity. this organization took concrete shape in 1973 and has today transformed into a US$ 1. In order to achieve quantum and exponential growth.4 billion dairy giant. we have prepared a comprehensive roadmap to guide dairy cooperatives of Gujarat to a glorious future. Dr. Through expansion of distribution network. in an effort to design our future architecture. in metropolitan cities. consumer education and product innovation. As we take confident strides towards a grand tomorrow. Milk production in our milk shed area will increase to 231 lakh kg per day (23. it is pertinent that we have a clear vision for the next 10 years. In line with objective. 9600 crores. Since the foundations of our organization are rooted in the process of systematic long-term planning. Dr. This will enhance our milk procurement capacity in such a way. His dream was carried forward by far-sighted and visionary leaders like Shri Tribhuvandas Patel and Shri Motibhai Chaudhary. This will enable all relevant stakeholders to align themselves to a common growth platform. We will be strengthening our milk procurement infrastructure by installing Bulk Milk Chillers and Automatic Milk Collection Systems in all our village cooperative societies. Kurien created the grand design for an apex marketing federation for dairy cooperatives of Gujarat. Retailers. who selflessly dedicated their entire lives to this noble cause. It has also developed a GIS based Decision Support System (DSS) for the top management for effective & geographically monitoring of the sales performance of WDs. at an annual growth rate of 4%.1 million kg per day). Satellite dairies with combined processing and liquid milk packaging . increase in number and productivity of milch animals. when our cooperative movement was still in its infancy. After 20 years of persistent efforts. ADAs. Through his professional acumen and meticulous planning. which is grounded in reality. appropriately titled ³Mission 2020´. we will leverage effectively on rising income levels and growing affluence among Indian consumers. this vision must be backed up by a concrete action plan. creative marketing. While expanding markets for our existing products. Verghese Kurien successfully translated this dream into reality.5 million kg per day) of milk in the peak flush season. This will be a three-fold increase over our current group turnover of approx. we have also attempted to emulate the same. we will create fresh avenues for growth by tapping the rising demand for new value-added products. In view of growth in business volumes and related complexities. In early 1950¶s. and Products etc. This plan. With further expansion of cooperative network. that we easily collect as much as 195 lakh kg per day (19. 27000 crores by the year 2020. as well as leadership skills. we need a vision which will force us to challenge ourselves and stretch our imagination.

We express deep gratitude for its support. For increasing milk production. This detailed plan will serve as our comprehensive roadmap for the next ten years and will ensure a glorious future for our dairy cooperatives. It has also been discussed in the respective boards and necessary resolutions for investments have also been taken. paneer. 26 billion) till the year 2020. The Institute of Rural Management. extended to our organization. We will succeed in our endeavor with positive and continued support and encouragement from all the government quarters. cheese. for strengthening the dairy cooperative sector. as has happened in the past. Anand. to process additional milk in the peak season. The National Dairy Development Board had played a role in our growth and development. For this reason. Our efforts will ultimately serve to bolster the rural economy. We are indebted to Vidya Dairy for having organized training programs on dairy technology for our employees. I am very grateful to them. 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. We are grateful to the Government of India for the immense support received on numerous occasions. 2600 crores (Rs. We express our sincere . it is vital to provide nutritious feed to milch animals. We are well poised to lead the Indian dairy cooperative sector to a position of eminence in our national economy. ethnic sweets. Our objective is to ensure that the maximum share of the consumer¶s rupee goes back to the milk producers. by providing technically skilled manpower.7 million kg per day. we plan to expand our cattlefeed manufacturing capacity. it is imperative that elections to various tiers of the cooperatives take place on schedule. ACKNOWLEDGEMENTS Before closing. Anand. This would include multi-fold capacity expansion for major product categories including milk powders. Milk drying capacity will also be enhanced by 200 MTs per day. I would like to thank all those who have helped to make our Federation¶s operations successful. by 2020. I am glad to inform you that the plan 2020 has been shared with all the member unions. curd. At current prices. ghee and other dairy products.capacity of 50 LKPD will be established in major metro markets. we plan to double to processing capacity of our dairy plants to 20. We are also thankful to the Government of Gujarat for all the help and cooperation. by 2020. We are also grateful to SMC College of Dairy Science. Ice-cream. The National Cooperative Dairy Federation of India had been providing us with invaluable support in coordination with other agencies and organizations. more than four times to 12000 MTs per day. has contributed to the perspective building and professionalization of the management of the cooperative sector. as always. total investments envisaged for creating all the required infrastructure would be Rs. In view of the high demand and procurement projections. which can then create an effective shield to protect our nation from any future economic crises.

support and cooperation without which we would not exist. Our advertising agencies. bankers. For and on behalf of the Board of Directors P G Bhatol Chairman . insurers. we thank the officers and staff of our Federation for their continued perseverance. While thanking them for their support. Thank you. We acknowledge their contributions and commit ourselves to continue and strengthen this fruitful alliance in all times to come. the patronage of our consumers. Lastly. We thank them for their guidance. loyalty and unflinching efforts devoted to our cause. who have come to regard our brands as synonymous with quality and value. We depend on the efficiency of our distributors. management consultants. we assure them that we shall strive endlessly to delight them. for creating a talent pool of veterinary doctors to serve our milk producers. Anand. retailers and most important of all. suppliers and transport contractors have been of great help to us in managing our growth and our partners in our success.thanks to the College of Veterinary Science and Animal Husbandry. Our Member Unions are our strength.