Presentation onBusiness Growth and Governance Challenges

Contents Introduction of “Amul Model” of Cooperatives Business growth under “Amul Model” of

Cooperatives Governance Challenges

India’s largest Food Products Marketing OrganisationA 3.4 Billion Dollar OrganisationUnduplicated Group Turnover of GCMMF and 17 Member Unions : Rs 29500 cr (4.9 Billion Dollar)

Milk Procured from 3.6 million farmer members

18536 Village Dairy Co-op. Societies

GCMMF   – The Market Leader

Milk Producer

Vill. Dairy Co-op.

Dist. Milk Co-op. Union

The Consumer

State Co-op. Milk Mktg. Fed.

Establishment of a directlinkage between milkproducers and consumersby eliminating middlemen

Milk Producers (farmers)control procurement,processing and marketing

Professional management

The Amul Model

Operation Flood (1970-1996) Graph not to scale

Milk Production: India (MMT)

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

1950

1960

1968

1973

1980

1990

1995

1996

1997

2000

2002

2003

2004

2006

2008

2009

2010

2011

2012

2013

17.020.0

21.2

23.2

31.6

53.9

66.370.8

74.3

78.1 8488 91

94

102

112113

122127

140

Per Capita Availability India(Gms. Per Day)

0

50

100

150

200

250

300

350

1950 1960 1968 1973 1980 1990 1995 1996 1997 2000 2002 2004 2008 2010 2011 2012 2013 2014

132 127111

128

178

214 217

235

262

290

317

Dairy Plants  : 58Total Milk Handling Capacity: 24.00 MLPDAvg. Milk Procurement: 15.6 MLPDPlants with one MLPD Capacity: 6Milk Drying Capacity: 820 MTPDCattle Feed Mfg. Capacity: 6800 MTPD

AMUL  ‐Manufacturing facilities

GCMMF – Member VDCS

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

02‐03

03‐04

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05‐06

06‐07

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08‐09

09‐10

10‐11

11‐12

12‐13

13‐14

14‐15

1140012340

13141

1532516117

17025

18536

GCMMF – Milk Producer Members ( Million )

2.27

2.5

2.7

3.13.2

3.53.6

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.002

‐03

03‐04

04‐05

05‐06

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08‐09

09‐10

10‐11

11‐12

12‐13

13‐14

14‐15

GCMMF Average Milk Procurement (Million Kgs Per Day)

1.7

2.53

44.6

5.2 5.15.8

6.36.7

7.6

8.79.3 9.5

10.6

13.313.6

15.1

0

2

4

6

8

10

12

14

16

India’s Largest Exporter Of Dairy ProductsUHT Milk, Ghee, Cheese, Butter, Paneer, etc. exported in consumerpacksWhole Milk Powder, Skimmed Milk Powder in bulkMajor Markets : Gulf, SAARC Region, USA, Singapore, Hong Kong,

The Philippines, Japan, Australia, New Zealand etc.

The Largest Exporter

60 sales Office

10,000+ Dealers

10,00,000 + Retailers

Reach extends to all parts of the country and many parts of the world

Growing from Strength to Strength

3.6 Million Families, 18536 Villages

58 Dairy Plants across India

4 High Traffic Distribution Highways4 High Traffic Distribution Highways

FROZENFROZEN CHILLEDCHILLED AMBIENTAMBIENT FRESHFRESH

60 Sales Offices & Stock Points + Exports

10,000 Distributors

10,00,000 Retailers across India

Supply Chain

Cooperative GovernanceExternal environment Government policies Regulatory framework Taxation

Internal environment Organizations structure Byelaws

External Environment External environment Government policies Rules and regulations under specific Act. Support and restrictions compared to similar

organizations functioning under separateform. i.e. Cooperatives Vs Private companies

Scope of political interventions Taxation policy of Government affecting

transactions among different interrelatedunits of organization structure.

Grievance redressal mechanism

Internal Environment Internal environment Organizations structure Management structure Policy decision framework Managerial decision framework

Byelaws Membership Management committee

Selfless leadership and dedicated professional – Key to success

Selfless, dedicated farmer-leaders travelled on foot from village to village to educate farmers on the benefits of cooperatives

Thank You