Amul: The Taste of India
A case study on India's largest dairy cooperative applying Industrial
Engineering principles
Course: Industrial Engineering – Formative Assessment-1
Under the guidance of: Prof. Hemant Kadam
PCET's Pimpri Chinchwad College of Engineering, Department of Computer Engineering
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Introduction
Founded Management
Established in 1946 at Anand, Managed by Gujarat
Gujarat Cooperative Milk Marketing
Federation (GCMMF)
Global Reach
Present in 50+ countries with annual turnover of ₹55,000+ crore
(2024)
Amul's mission is to provide high-quality milk & dairy products at
affordable prices while empowering rural farmers, representing a
model of cooperative success integrating farmers, technology, and
consumers.
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Amul's Diverse Product
Range
Milk & Beverages Nutrition & Value-Added
• Fresh milk, UHT milk
• Flavored milk, Amul Kool • Amul Pro, probiotic drinks
• Lassi, buttermilk • Lactose-free milk
• Energy beverages
Dairy Products
Confectionery & Others
• Butter, cheese, paneer
• Curd, ghee, ice cream • Chocolates, mithai
• Dairy whiteners
• Bakery products
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Principles of Management Applied at Amul
Cooperative Model & CSR Customer-Centric Approach
Empowering 36 lakh+ farmers through fair pricing, Affordable, hygienic, and innovative dairy solutions for
rural employment, and education all income groups
Global Operations with Local Adaptation Continuous Improvement & Innovation
Adoption of automation, cold chain logistics, and
Exports to 50+ countries; adapts packaging/flavors for product R&D
regional markets
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Productivity Calculations
Labor Productivity Capital Productivity
Output ÷ Labor Input Output ÷ Capital Input
Training farmers and using Investment in modern dairy
automation boosts milk plants increases returns per
collection efficiency rupee
Total Factor Productivity (TFP)
Output ÷ (Labor + Capital Input)
Balanced use of skilled workforce, technology, and cooperative
structure improves overall efficiency
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Amul's Inventory Management System
Raw Materials
Fresh milk collected twice daily via village cooperatives
Work-in-Progress (WIP)
Pasteurization, homogenization, fermentation, and cheese-curing stages
Finished Goods
Packaged butter, cheese, milk pouches, ice creams ready for distribution
MRO Inventory
Refrigeration equipment, spare parts, cleaning agents, veterinary medicines
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Inventory Optimization
Strategies
ABC Analysis
High-value ingredients like
Just-in-Time (JIT)
enzymes and imported
Fresh milk collected daily to packaging prioritized
minimize storage costs
Economic Order
Quantity
Optimized procurement of
Vendor-Managed Inventory
packaging, sugar, milk
powder to reduce holding
Coordination with suppliers for costs
packaging material, flavors, cultures
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Sustainability Initiatives
Waste Reduction Sustainable Sourcing Water Conservation
Efficient milk collection, by- Farmer-owned supply chain Effluent treatment plants, water
product utilization (whey → cattle ensures traceability and ethical recycling in dairy units
feed) sourcing
Renewable Energy
Solar panels and biogas plants in cooperative societies reduce carbon footprint
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Challenges and Opportunities
Challenges Opportunities
• Milk price volatility & climate • Rising demand in Tier-2 &
change affecting supply Tier-3 cities
• Growing health-conscious
• Competition from private consumer base (lactose-free,
players and global dairy probiotics)
giants • Expanding exports to Asia,
• Logistics issues in Africa, and Middle East
maintaining cold chain across • Leveraging digital platforms
India for direct consumer
engagement
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Conclusion
Cooperative Success
Amul demonstrates a unique cooperative model integrating rural farmers with
industrial-scale production
Management Excellence
Strong management practices ensure quality, affordability, and brand trust
Industrial Engineering
Use of Industrial Engineering concepts enhances efficiency in inventory
management, productivity, and sustainability
Future Vision
With continuous innovation & farmer empowerment, Amul stands as a global
symbol of India's dairy strength
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