Objectives Of A Co Operative Society Commerce Essay


Anand Milk Union Ltd. was founded in 1946 and is brand which is managed by Gujarat Cooperative Milk Marketing Federation Ltd an Indian cooperative organisation (GCMMF), which today is jointly owned by 3.3 million milk producers in Gujarat, India. It spurred the white revolution in india which in turn made India the largest producer of milk and milk products in the world. Its annual turnover in the year 2011-2012 reached to US$ 2.5 billion. Its daily milk procurement is nearly 13 million lit from 16,117 village milk cooperative societies.

GCMMF has now become the largest exporter of India. Many of its products are available in countries like USA, Gulf Countries, Singapore, The Philippines, Japan, China and Australia.

Since the mid 1990's AMUL has entered areas that are not directly related to its core business. Its entry into the field of frozen products was quite successful as it was able to capture a large market share in quite a short while.

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Over the last five and a half decades, dairy cooperatives have created an economic network that links 3.1 million village milk producers with millions of consumers in India.

Its products range from milk,  butter, ghee,cheese, Masti Dahi, Yoghurt,  Buttermilk chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, flavoured milk, basundi, Nutramul brand and others. In January 2006, it launched India's first sports drink Stamina, which plans to compete with Coco-Cola, Pepsi, Gatorade etc. It also introduced Kool Koko, a a chocolate milk brand extending its product offering in the milk products segment. Its sugar free pro-biotic ice cream won The International Dairy Federation Marketing Award in 2007.

Logo Of The Company:




The name Amul itself indicates that it is a co-operative union. There are various types of co-operative society which are as under:

(1) Producers or manufactures co-operative society

(2) Consumer co-operative society

(3) Housing co-operative society

(4) co-operative farming

(5) co-operative credit solvency

This firm is the firm of association in which person combine together toform a society for the purpose of manufacturing goods. Although it is democratic management of industrial production. This is useful where large capital is neither necessary nor much technical and expert knowledge of themanagement is needed. In India some of the Sugar mill and ginning mills are running under this formation. Dairies are also adopting co-operating format.Amul is the producer's co-operative society.


Organization Structure is divided into two parts:

External Organization Structure

Internal Organization Structure

1.External Organization Structure

External Organization Structure is the organization structure that affects the organization from the outside.

State Level Marketing Federation

District Milk Product Union Ltd.

Village Milk Product Union Ltd.


As we know, GCMMF is a unit of Gujurat Milk Marketing Federation, which is a co-operative organization. The villagers of more than 10000 villages of Gujarat are the bases of this structure. They all make village milk producers union, district level milk producers union and then a state level marketing federation is established. The structure is a line relationship, which provides easy way to operation. It also provides better communication between two stages..

2.Internal Organization Structure:

The following is internal organization chart of Amul:


Managing Director

General Manager

Assistant General Manager

Finance Dept. Production Dept Marketing Dept. Sales & Purchase Dept Personnel Dept.

Senior Manager Senior Manager Senior Manager Senior Manager Senior Manager

Finance Mana. Production Mana. Marketing mana. Sales Mana. Personnel Manager

Accounting officer Marketing Officer P.R.F Officers Supervisors F.S.R Salesman Executive

A systematic & welldefined organizational structure plays a vital  role & provides accurate information to the top-level management. An organization structure defines a clear-cut line of authorities & responsibilities among the employees of GCMMF. The Organization structure of Amul is well-arranged structure. At a glance a person can completely come to know about the organization structure.

Amul is leaded by the director under him five branches viz. Factory, Marketing,Accounts, Purchase, Human Resources Department. Factory department has a separate general manager under him there are six braches viz.Production, Stores, Distribution, Cold Storage, Quality, and Deep-freezing. This department takes care of the factory work .Marketing department has regional senior marketing manager and under him there is a regional manager. This department takes care of the marketing aspects of Amul.

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Accounts department takes care regarding accounts i.e. day-to-day work. Under theaccountant there is one clerk. Purchase department takes care regarding the purchase of raw materials and many other things.


Every organization is set up with some objectives to fulfill. The objectives may be social, economic, national and human.

Amul was also set up with some basic objectives to fulfill including all social, economic, national and human objectives.

Following are the objectives of Amul:

Social Objectives:

Amul has an objective to supply goods with best of quality and purity at very reasonable rates.

It helped to reduce malpractices carried out by merchants and milk traders.

Its White revolution made a huge contribution to the alleviation of poverty and famine levels from levels that were dangerously low

National Objectives:

Amul has helped India to increase its production of milk by 40 million metric tonnes and become the country with the most milk production all over the world

To increase the foreign exchange of the country by exporting the milk products

To produce products according to national priorities

To help improve the health and nutrition of many within the country.

Human Objectives:

To help the villagers associated with Amul to sell their milk products

To provide good working conditions to the employees

To provide growth opportunities to the backward and unprivileged villagers

To provide job satisfaction to the employees

Economic Objectives:

Expansion of distribution network.

 Creative and Unique marketing strategies.

Optimum utilization of available resources.

Creation and expansion of loyal customer base.

Even though the basic objective is not to make profit, some profits are still to be made so as to survive and expand.


The Amul model has helped India to emerge as the largest milk producer in the world. More than 15 million milk producers pour their milk in 1,44,246 dairy cooperative societies across the country. Their milk is processed in 177 District Co-operative Unions and marketed by 22 State Marketing Federations, ensuring a better life for millions.

''Someone beautifully said that when you buy from small shops, you are not helping a MNC CEO buy a third vacation home, but helping a little girl get school education, a little boy get his cricket bat, a mom put food on the table or a family repay a housing loan. It is this India that we need to believe in and care for.''-CHAIRMAN SPEECH at the 38th Annual General Body Meeting held on 31st May, 2012.

We would sincerely like to thank our business studies teacher for giving us this project as it has enriched and enhanced our knowledge about cooperative socities.


The managers at Amul provided us with alot of information as to how and when it was formed. It all began when milk became a symbol of protest. The birth of Amul was inspired by the freedom movement and was founded in 1946 to stop the exploitation by middlemen.

The seeds of Amul were sown more than 65 years ago in Anand, a small town in Gujarat, western India. Angered by the manipulative practices of the local trade cartel, the farmers of Anand approached the great Indian patriot Sardar Vallabhbhai Patel for a solution. He advised them to get rid of middlemen and form their own co-operative, which would have procurement, processing and marketing under their control.

In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel. Under the inspiration and guidance of great leaders like Sardar Patel, Morarji Desai and Tribhuvandas Patel, they formed their own cooperative.

Amul grew from strength to strength since then and there was no looking back. The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach should become the basis of a National Dairy Development policy. He understood that the success of Amul could be attributed to the following factors -

The farmers owned the diary, their elected representatives managed the village societies and the district union, and they employed professionals to operate the diary and manage its business.

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The cooperatives were sensitive to the needs of farmers and responsive to their demands.

At his instance in 1965 the National Dairy Development Board was set up with the basic objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as its Chairman and asked to replicate this model throughout the country.

The managers even provided us with additional information about the amul model-

The brand name Amul means ''AMULYA''. This word derived from the Sanskrit word ''AMULYA'' which means ''PRICELESS''. Amul products have been in use in millions of homessince 1946. Amul butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India.

Today Amul is a symbol of many things like of the high quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for diary development (''ANAND PATTERN'').

At the initial stage only 250 litres of milk was collected every day.

But with the growing awareness of the benefits of the coorperativeness, the collection of milk increased. Today Amul collects 11 lakhs liters of milk every day, representing growth of 6.09 percent.