Business Plan (Year 2009-2014)

A long term strategic work is carried out time to time for branding and sales of the products of Amul and Gopal and is smartly handled by our capable marketing team. In flourishing populated area, as a measure of intensive campaign, Pilot Sales Men were sent in advance. Six hundred (600) new retail outlets were opened to increase sale of Amul and Gopal Milk & the total number of outlets in operation are 2506. The union proposes to increase the functional DCS from 716 to 1020 with an average procurement target of 428 TKgPD while milk marketing target of 247 TLPD at the end of the plan period.

At present, the Union has a market share of 23.88 % in an estimated market size of 358 Tlpd. At the end of the plan period the Union is targeting to achieve a market share of 51.08 % , when the estimated market size will be 486 TLPD by increasing its milk sale from the current level of 114 TLPD (2008- 09) to 246.7 TLPD by the end of 2013-14 (an increase of 117%). To achieve the set target, the Union has proposed several strategies as detailed in the plan. However, considering the market profile and the brand image of 'AMUL' .Considering the growth of milk procurement and liquid milk marketing for the past 5-6 years and growing potential in the district and surrounding border areas, the Union is projecting its procurement and marketing to reach the level of 521 TKgPD and 541 TLPD (346 TLPD to local sale and 195 TLPD to GCMMF) respectively by 2014-15.

The peak procurement at the end of project period (EOP) would be around 645 TKgPD. Since the current processing infrastructure would not be adequate to handle the projected milk volume in EOP, the Union envisages expanding the processing capacity from 175 TLPD to 600 TLPD which comprises of 450 TLPD new capacities & 175 TLPD shifting of existing facilities with future expansion facility as per Union's requirement.

Rajkot Milk Union plans an outlay of Rs 5021.80 Lakhs with new Liquid Milk Plant(LMP), automated with total processing capacity of 6 LLPD which is comprising of 4.5 LLPD new capacity & 1.5 LLPD shifting of existing capacity out of which Rs 536.94 Lakhs would be allocated for expansion of the existing chilling centre and Rs 723.98 Lakhs. Rajkot Milk Union (RMU) has also received the consent from GPCB for expansion of Effluent Treatment Plant(ETP) to handle 800 cum/day.

It is planned to utilize the fund from next year by installing a World-class automated plant of 4.5 lakh litres per day capacity in the existing campus of the dairy. The total milk handling capacity will be 6 lakh litres per day, a great pleasure to have such a huge plant at Rajkot to utilize its outputs & benefit with proper inputs.

The union proposes to increase milk procurement from 244 TKgPD in 2008-09 to 426 TKgPD by the year 2013-14. It is envisaged that the number of DCS organised would increase from 670 in 2008-09 to 1020 in 2013-14, of which 960 are expected to be functional. The following table summarises actual achievements of key areas in 2008-09 and proposed target for the end of the project i.e. 2013-14:

To achieve the projected targets of milk procurement and marketing the union proposes to increase the processing capacity from 175 TLPD to 600 TLPD with an investment of Rs. 5062.88 lakh.

A systematic and planned strategy for the identified thrust areas are:

• Assuring Quality by enhancing hygiene, sanitation, food safety and arresting of adulteration and operating capability to uplift to the International standards.
• Maintain the Phytosanitary, bacteriological and organoleptic quality at all stages.
• Enhancing production by improving the production potential of indigenous breeds of cattle and to supply adequate amount of feed and fodder.
• Review breeding practices and develop Animal Health and important Veterinary Services.
• Strengthening of Cooperative business by educating producer members, opinion leaders and trained professionals.
• Increasing women dairy cooperatives while recognizing the potential of this segment as decision makers having practical knowledge about animal husbandry practices.
• Strengthening information and development research by linking all chilling centers and cooling units through information technology (ERP System) under one common platform.

The Union felt the need to re-look at the dairy expansion proposal due to the understated reasons.

• In order to adhere to the newly introduced Integrated Food and Safety Act, the necessity of a new fully automated dairy plant has arisen.
• In view of the phenomenal growth in milk procurement and liquid milk marketing , it is required to consider 30 KL line to handle 4.5 LLPD.

Proposed Infrastructure Facilities (A comparison of existing and proposed capacity by EOP.)

The union had prepared the investment plan in consultation with NDDB, incorporating short term and long term requirements for strengthening its business operations. The activities proposed by the union are also a pressing need of the hour. The major area of investment is expansion of existing dairy plant from 175 TLPD to 300 TLPD with an outlay of Rs. 1705.62 lakh and expansion/ strengthening of existing chilling centre and cooling units with an estimated outlay of Rs. 536.94 lakh. The thrust area wise investment under Perspective Plan for the union for the period 2008-09 to 2014-15 and the sources of funds is being summarised below:

Proposed Investment Break-up