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A DESCRIPTIVE STUDY OF THE FINANCIAL ASPECT OF COOPERATIVE

SOCITIES WITH SPECIAL REFRENCE TO AMUL

Submitted in partial fulfilment of the requirement for the award of by

Chhatrapati Shahu Ji Maharaj University, Kanpur

PANDIT PRITHINATH COLLEGE

PARED, KANPUR, UTTARPRADESH

(Session 2023– 2024)

DECLARATION

I hereby declare that the Research project entitled “A DESCRIPTIVE STUDY OF THE
FINANCIAL ASPECT OF COOPERATIVE SOCITIES WITH SPECIAL REFRENCE TO AMUL”
submitted to P.P.N DEGREE COLLEGE, Kanpur in partial fulfilment of Master of
commerce is the original work conducted by me. The information and data given in the
report is authentic to the best of my knowledge.

This Project Report is not being submitted to any other University for award of any other
Degree, Diploma and Fellowship.

Place: Kanpur Student Name:- FARIHA ISLAM

DATE- UID NO:- A23MCC1001

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Acknowledgement

I am pleased to acknowledge my sincere thanks to Board of Management of

COMMERCE for their kind encouragement in doing this project and for completing it
successfully. I am grateful to them.

I convey my thanks to A K GUPTA SIR for providing me necessary support and details at
the right time during the progressive reviews.

I would like to express my sincere and deep sense of gratitude to my Project Guide
SHRASTY KATIYAR MAM for her guidance, suggestions and constant encouragement
paved way for the successful completion of my project work.

I wish to express my thanks to all Teaching Non-teaching staff members of the

Department of FACULTY OF COMMERCE who were helpful in many ways for the
completion of the project.
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TABLE OF CONTENT

CHAPTER TITTLE PAGE NO.

NO.
LIST OF TABLES AND CHARTS

1 INTRODUCTION 4
1.1 MEANING 5
1.2 ORGANISATION PROFILE 5
1.3 HISTORY OF AMUL 6
1.4 LOGO OF AMUL 9
2 LITERATURE REVIEW 10
3 RESEARCH METHODOLOGY
3.1 OBJECTIVES OF STUDY 13
3.2 RESEARCH DESIGN 13
3.3 SAMPLE DESIGN 14
3.4 SOURCE LIST 14
3.5 LIMITATIONS OF STUDY 15

4 DATA ANALYSIS AND INTERPRETATION 15

4.1 BAR GRAPH
4.2 RATIO ANALYSIS

5 SUGESSTION 18
CONCLUSION
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Chapter 1

Introduction

The Gujarat Cooperative Milk Marketing Federation (GCMMF) is India’s

largest food product marketing organization, boasting an annual turnover of
US$ 2.2 billion in 2010-11. It procures approximately 12 million litres of milk
daily during peak periods from 15,712 village milk cooperative societies
and serves 3 million milk producer members across 24 districts through its
17 member unions.
GCMMF, known as ‘Amul,’ aims to ensure fair returns to farmers while
providing consumers with quality products at reasonable prices. Its
success has not only been recognized in India but has also become a
global model. Operating through 47 sales offices and a vast network of
5000 dealers and 10 lakh retailers, GCMMF is the exclusive marketer of
‘Amul’ and ‘Sagar’ branded products.
Moreover, it holds the title of India’s largest exporter of dairy products, with
a presence in several countries, including the USA, Gulf Countries,
Singapore, The Philippines, Japan, China, and Australia. Recognized for its
commitment to quality, customer satisfaction, and reliability, GCMMF has
received numerous awards, including the APEDA Award for Excellence in
Dairy Product Exports for 13 consecutive years.
Additionally, its contributions have been acknowledged with prestigious
awards like the Rajiv Gandhi National Quality Award, India’s Most
Respected Company Award, and the IMC Ramkrishna Bajaj National
Quality Award.
Furthermore, GCMMF made history by becoming the first Indian
organization to win the top International Dairy Federation Marketing Award
for the launch of probiotic ice cream in 2007. The Amul brand represents not
just a product but a movement, symbolizing the economic empowerment of
farmers and inspiring them to dream, hope, and thrive
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Meaning

Co-operation is a form of organization wherein persons, irrespective of caste,

Creed and religion, voluntarily associate together, as human beings, on the basis of

Equality for the promotion or furtherance of their common economic interests.

It is self-help through mutual help. The Philosophy behind Co-operative

Movement is “All for each and each for all”.

ORGANIZATION PROFILE

NAME: KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UMION LIMITED widely

known as AMUL.

FORM: Co-operative sector register under the co-operative society act.

LOCATION: Kaira District Co-operative Producers limited. Near railway station. Amul
dairy road. Anand-388001 Gujarat.

REGISTRATION: 14TH December 1946

REG. OFFICE: Kaira District Co-operative milk producers ltd. Anand-388001

SALES OFFICE: Gujarat co-operation milk marketing federation, Anand

CERTIFICATES: ISO 9001:2000 ISO 2000:2005

SIZE: On large scale basis

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History of Amul

Amul-cooperative registered on 14 December 1946 as a response to the exploitation of

marginal milk producers by traders or agents of the only existing dairy, the Polson dairy,
in the small city distances to deliver milk, which often went sour in summer, to Polson.
The prices of milk were arbitrarily determined. The government had given monopoly
rights to Polson to collect milk from Kaira and supply it to Bombay city.

Angered by the unfair 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 (Kaira District Co-operative Milk Producers’ Union)
and supply milk directly to the Bombay Milk. Scheme instead of Polson (who did the
same but gave them low prices). Не sent Morarji Desal 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 decentralized, as most
producers were marginal farmers who could deliver, at most, 1-2 litres of milk per day.
Cooperatives were formed for each village, too. By June 1948, the KDCMPUL had started
pasteurizing milk for the ‘Bombay Milk Scheme’. Under the selfless leadership of
Tribhuvandas Patel, in 1973. Amul celebrated its 25 th Anniversary with Morarji Desai,
Maniben Patel and Verghese Kurien.

The cooperative was further developed and managed by Dr. Verghese Kurien with H.M.
Dalaya. Dalaya’s innovation of making skim milk powder from buffalo milk (for the first
time in the world) and a little later, with Kurien’s help, making it on a commercial scale,
led to the first modern dairy of the cooperative at Anand, which would compete against
established players in the market. Kurien’s brother-in-law K.M. Philip sensitized Kurien
to the needs of attending to the finer points of marketing, including the creation and
popularization of a brand.

The trio’s (T. K. Patel, Kurien and Dalaya’s) success at the cooperative’s dairy soon
spread to Anand’s neighbourhood in Gujarat. Within a short span, five unions in other
districts-Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up. Following
the approach sometimes described as the Anand pattern.
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In 1970, initiated White Revolution of India, as it help create, Gujrat Co- Operative Milk
Marketing Federation Itd., which now overlooks Amul, in 1973, and today, it is the
second best dairy in India. 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 Amul with it since 1955, transferred it to GCMMF.

In 1999, it was awarded the “Best of all” Rajiv Gandhi National Quality Award.
Technological developments at Amul have subsequently spread to other parts of
India.The GCMMF is the largest food products marketing organisation of India. It is the
apex organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing
organisation for products under the brand name of Amul and Sagar. Over the last five
and a half decades, dairy cooperatives in Gujarat have created an economic network
that links more than 3.1 million village milk products with millions of consumers in
India. Gujarat Cooperative Milk Marketing Federation Ltd.

The GCMMF is the largest food products marketing organisation of India. It is the apex
organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing
organisation for products under the brand name of Amul and Sagar. Over the last five
and a half decades, dairy cooperatives in Gujarat have created an economic network
that links more than 3.1 million village milk products with millions of consumers in
India. Gujarat Cooperative Milk Marketing Federation Ltd. Importance is also important
for industries.

On September 30, 2018, Prime Minister Narendra Modi inaugurated Amul’s chocolate
plant in Mogar, Anand near their headquarters.
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Logo of Amul

LOGO OF THE AMUL

Logo of AMUL is a ring of four hands, which are co-ordinated each-other. The actual
meaning of this symbol is co-ordination of hand of different people by whom this union
is now at top.

FIRST HAND:

Is for farmers (producers), without whom the organization would not be existed.
Farmers are the inspiration of the AMUL-taste of India.

SECOND HAND:

Is for the representatives of processors by whom the raw milk processed in to different
finished products.

THIRD HAND:

is for marketers without whom the products would not been able to reach to the
customer.

FOURTH HAND:

is for customers without whom the organization could not carryon because they are the
people who consume
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Chapter 2
Literature Reviews

Dr. S.P. Savitha [1], “A study on consumer preference towards ‘AMUL PRODUCT’in
Coimbatore city”. AMUL (Anand milk produced union limited) formed in 1946, is a dairy
co-operative movement in India. India largest food brand trusted Amul product for its
quality and product available at affordable price. Amul product enjoying No.1 position
in dairy industry this stand to further strength its position. This research is pertaining to
find out the present consumer satisfaction of Amul product. Amul product has a good
reputation among the consumers in Madurai. So it can be extended to supply rural area
also.

Mohit Jamwal. Dr. Akhilesh Chandra Pandey [2], “Consumer behaviour towards
cooperative milk societies: A Study on measuring the customer satisfaction of Aanchal’
milk (A Member milk union of UDFC Ltd)”. The study on Consumer behaviour is the
study of how individual make decision to spend their available resources (time, money,
effort) on consumption related items. Customer satisfaction was measured across
different attributes of the Ananchal milk and the customer’s preference was checked
across different parameters. This survey on the sale of Ananchalmilk, it can be
concluded that to evolve their production, marketing and pricing strategies effectively.

Akhila D and Dr. C. Boopathi [3], “Consumer behaviour on Aavin milk and dairy
products in Pollachi of Tamil Nadu”. Tamilnadu state is one of the ten largest milk
producing states in India. The aim of the study is reveal consumer perception over Aavin
milk products based on their age, education, qualification and monthly income of the
consumer’s family. Many people buy Aavinmilk for its quality than the price. If the Aavin
product is too high than other brands. The aavin take necessary steps to satisfy their
consumers.

Dr. P. Rengarajan, R. Sathya and R. Gothami [4], “Buying behaviour of selected

branded milk products”. Dairy products is one of the important thing used nowadays in
urban and rural areas. Although the country has emerged as the largest producer of milk
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in 90’s. Market size is increasing day by day and the demand for that product is araising.
So, the companies need a proper distribution network for avaidability of product at
demand.

Mrs. Sonali Dhawan [5],”A study on consumer behaviour towards various branded and
non branded milk with special reference to Jabalpur district in Madhya Pradesh”.
Consumer behaviour can be defined as the behaviour that consumer display in
searching for purchasing, using, evaluating and disposing of products and services that
they expect will satisfy needs and wants. But there is a lack of awareness among the
consumer about milk they are consuming. The campaign has to be run by the
companies how they pasteurized the milk and how hygienic it is to use branded milk.

Manob K. Bandyopadhyay [6] (1994) The production of the milk is explained in this
way: 1. 1965, National Council for Dairy Production (N.D.D.B) 2. 1970 National Council
for Dairy Production, 3. 1973 Other Country States. This study deals with the analysis of
how far the N.D.D.B. Operation Flood Program is achieved in India, I.e. replicating the
N.D.D.B. ANAND model system. This study shows that the system to replicate the
ANAND model was not effective across the world. Furthermore, at the time of copying
the ANAN” model, this program did not exactly consider local geographical and socio-
economic aspects. As a result, Operation Flood Programme’s money spent in certain
situations did not yield any positive outcome. As indicated by Operation Flood Program
many Milk Producers’ Cooperatives have been shaped in this immense nation. To assist
nifty gritty examination, just two Co-employable Milk Producers’ Union Limited – The
Kaira District(ANAND) Cooperative Milk Producers’ Union Limited and The Himalayan
Co-usable Milk Producers’ Union Limited, have been considered. In this examination,
issues have been talked about in three phases in three sections. Growth and results
were addressed in the first stage, financial performance in the second stage and Dairy
Co-operative ‘s impact on rural economy in the last stage.

Dr. K. Karunakaran [7], 1st edition, 2007, “This process has to be conducted within the
framework of the rules and regulations made by the Marketing and Sales department.
Positive or negative impact of any scheme depends on the promotion made by the
company (Amul). Hence it is necessary that Amul should adopt proper marketing
policies to reach out the audience in a huge amount.

According to Organization [8]: Amul – The Taste of India. Amul (2015-05-

14).Retrieved on 2015-11-29. “Alexander Fraser Laid law. Cooperatives and the Poor. A
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development study prepared for the International Cooperative Alliance and the
Canadian International Development Agency, 1977. The co-operative was initially
referred to as Anand Milk Federation Union limited

the name AMUL.”

According to Amul [9] is now world’s 13th largest dairy, posts 67% revenue growth in
FY16, “The world’s 13th largest dairy organization and India’s largest dairy cooperative,
Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the popular
Amul brand of dairy products today said that it has registered a 67 per cent growth in
turnover to Rs 23,004 crore during 2015-16

Prakash [10] (2006) examine the distribution channel of effectiveness of ice-cream

market(Amul Kwality Walls) in Hyderabad. Ice cream, a most palatable and nourishing i,
which was once considered to be a sophisticated item, is becoming more and more
popular among bhul sections of the people in recent times. As the mercury rises
nobody is happier than the ice-cream manufacturers who are already filling their
iceboxes with dollops of new,mouthwatering flavours. Amul is the largest food brand in
India, which has a turnover of Rs3800 crores per annum. They are manufacturing and
marketing perishable dairy products by using most modern plants and effective
distribution channels. The primary objective of the study was to ascertain the major
factors that are influencing the effective distribution of Amul ice creams manufactured
by Gujarat Cooperative Milk Marketing Federation Limited (GCMMFL) by comparing with
the Kwality Walls, the leading player in the Hyderabad market.

Venkatakrishna V.. Saraswathi P. and Radharao Chaganti [11] (April 2002) examine
the white revolution-How Amul brought milk to India. The most notable feature of a
developing country is that it witnesses the birth of a number of organizations-
organizations geared to meet the demands of, and opportunities presented by that
development. Success of the development process, indeed, hinges on how well those
new organizations grow and mature and serve the needs of the society at large.
However, not all new organizations grow and mature. Some face an early decline. What
distinguishes the organizations that survive and grow? This paper presents a framework.
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Chapter 3
Research Methodology

❖ OBJECTIVES OF STUDY

• Primary objectives:
The objective of financial statement is to know information about the financial position,
performance & cash flows of an enterprise with the help of analytical tools

tool

• Secondary objectives:
Based on this information, objective of analysing themes to evaluate:

1) The adequacy of the profits earned by the company

2) The adequacy of its financial strength

3) Its ability to generate enough cash & cash equivalents, timing & certainly of their
Generation.

4) The future growth outlook of the company.5) To know the financial performance
evaluation of AMUL

6) To give suggestion on the basis of Liquidity, Profitability, Efficiency and Leverage

analysis

7) To know the Market Position AMUL by taking Market Value Ratios8) To know the trade
off between Liquidity & Profitability.

❖ RESEARCH DESIGN:

The research design which has been used in the project report is Descriptive research
design in particular. This is rigid in nature and focuses attention on the following:

1) Formulating the objective of the study

2) Designing the method of data collection.
3) Selecting the sample
4) Collecting the sample
5) Processing and analysing the data.
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6) Reporting the finding. Suggestion and modification if any.

7) Conclusion.

❖ SAMPLE DESIGN:

TYPE OF UNIVERSE:

This is the first step in developing any sample design is to clearly define the set of
objects, technically called the universe to be studied. Here finite universe has been
used for the research purpose.

SAMPLING UNIT:

A decision has to be taken concerning a sampling unit before selecting the no. of
samples. It may be geographical as well as individual. Here Ghaziabad “city has been
taken as a geographical unit and retailers as an individual unit.

❖ SOURCE LIST:

It is also known as sampling frame from which sample is to be drawn. No sampling

frame was available there except a map of territories. We had generated an idea
regarding of sample units on the basis of map that which areas would be essential for
the survey. Judgment sampling was taken for this purpose.

SIZE OF SAMPLE:

This refers the number of items (outlets) to be selected from the finite universe to
constitute a sample size. The survey was conducted of 250 outlets.

NATURE OF DATA:

In this project report, the data is collected through primary data source.

DATA COLLECTION

Type of data Collection Method adopted Mode of communication

Primary Questionnaire Personal Interview

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• LIMITATION OF STUDY:

1) As data provide to us, has been taken from the secondary source, it is not sure that
collected data is perfectly accurate.

2) Companywide factors only use of numerical or accounting information [avoid best

human resource, automation in production such a non-account factors are ignored.]

3) Study based on historical data & records.

4) Fail to indicate what the entity’s normal or benchmark position is

5) Be heavily influenced by the choice of the base fiscal period

6) Cash flow statement is based on cash basis of accounting, it ignores the basic
accounting concept of accrual basis.

Chapter:4

DATA ANALYSIS AND INTERPRETATION

➢ Chart for Result for the year is as below:-

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INTERPRETATION:-

➢ From above graph we can see that current ratio of Amul for the year 2006- 07,
2008-09 and 2009-10 are lower than previous year and also lower than standard
ratio.
➢ This happened because of increase in current liabilities. This ratio can be
improved by

• Increase in equity share capital.

• Retaining profits in business.

• QUICK RATIO

INTERPRETATION:

Form above graph we can summarize that the quick ratio for the 2008-09 is lowest but in
2009-10 again it rises slowly. In 2005-06Amul has strongest position in terms of liquidity.
During 2005-06, 2006-07 and 2007-08, this ratio is good as compared to standard ratio
but in last two years, i.e. in 2008- 09 and 2009-10, it is below the standard ratio.
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• To improve this ratio, Amul should retain its profit in business.

➢ Liquidity Ratio

INTERPRETATION:

• This ratio shows that the liquidity position of the AMUL isrising slowly in 2009-
10.And from graph we can see that theliquidity position of the Amul is declining
in 2008-09 ascompared to previous year but this year though it is higher than
previous year, it is not up to standard ratio
• This ratio can be improved by reducing proportion of inventories and increasing
proportion of bank borrowings for working capital in current liabilities
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Chapter 5
SUGESSTION

1. It is clear that the respondents of AMUL are Quality conscious. So if it is possible

AMUL should concentrate on quality of its production.

2. By evaluating the survey it is clear that the respondents are mostly interested in the
taste provided by AMUL products. AMUL, should concentrate on its product’s taste
more than any other features.

3. It is specifies that the AMUL respondents are giving priority to the availability of
AMUL products by more than 2/3 part. So it becomes necessary for AMUL to supply
the AMUL products in all its target market.

4. According to my Study, Quality product should be produced and now a day’s price is
an important factor for common man. So company should concentrate in these
both mentioned factors.

CONCLUSION

Amul dominat presence in the dairy foods market has led to Amul becoming a
household name.AMUL is one of the most successful business houses and other
companies should learn from amul how to do its business in a socially responsible
manner In fact amul uses only 1 percent of its turnover for promotions This shows that it
is not always necessary to spend millions on promotion when you have creatively.