Manage all Financial Activities for AMUL

Object Required

AMUL Financial Analysis, Some Financial Softwares Toolkits

Principle

Management for whole AMUL Finance

Theory

Finances Managed by Amul Company

A country like India is deep-rooted in its agriculture and cattle rearing and hence this is something that the nation can rely on when it comes to business. The dairy industry has been responsible for India’s economic growth since the time of independence. A name that has been majorly associated with this dairy business in the country is AMUL or Anand Milk Union Limited. It has been a popular brand name for the milk producers of the Kaira District Co-operative Union since 1955. It has its daily network that is spread all across Indian states as well as abroad in central Asian countries like Bangladesh, Thailand, Indonesia, Malaysia, and Singapore. The Amul had begun with a very little source of milk that was 250 liters and only 2 societies and in today’s world it produces more than 15 lakh liter milk per day and has more than 1113 societies with 6 lakh plus farmer members. It has completed its 73rd year on the 14th of December 2017.

Global Agreements

• It has entered the markets of countries like USA, Nepal, South Africa, Kenya, Bhutan and Australia.
  
• Wal-Mart has agreed to sell Amul products on its shelves with the brand name being the same.
  
• Glaxo & Amul have tied up to produce baby food together.
  

If you look at the organizational structure of Amul you may notice it is a three-tier co-operative organization. The first tier has the co-operative society of a village whose members are the milk producers. This society is managed by thedemocratically elected 9-member managing committee.

The second tier is the district co-operative that converts the milk into mil products introduces them to the local market and sell the surplus to the state co-operative for international and national marketing.

The third and the last tier is the state level co-operative namely, Gujarat Co-operative Milk Marketing Federation (GCMMF). This tier takes the complete responsibility or marketing the products international and national market.

This acts as a complete mechanism that works together keeping GCMMF at the top of its pyramid and forms a chain that involves theproduction of raw material as well as its distribution as a finished product in the buyer’s market. The man work involved in this functioning can be accounted as 23.60 lakh primary producers of milk; 35,000 workmen at rural areas in more than 11,400 village societies; 12,000 workers in 15 dairy plants; 750 marketing professionals; 10,500 salesmen in thedistribution network and 600,000 salesmen in theretail network.

Finance Management

This is a process that involves planning and controlling of the company’s financial resources. All other departments of the company strongly depend upon the finance department to go on with their departmental activities individually.

Objectives of Finance Management

1. Maximize the profit –the main objective is to increase the profit as much as possible. This has to be done with keeping in mind the returns for the company.
   
2. Process –Analysis, Decision Making, Planning, & Control. These are the steps that are followed to manage the financial resources of the company efficiently.
   

Importance of Finance Management

For the growth of a company like Amul management of finances is very important. Without this, the business cannot survive or expand in this competitive market. Here are some points that make it highly important for an organization:

• Promoting the business
  
• Decision Making
  
• Successful business
  
• Measuring the Performance
  
• Helpful for Shareholders & Investors
  

Sources of Capital for Amul

1.    As the products are sold on a daily basis to Gujrat Co-operative Marketing Federation (GCMMF). An amount is given by the federation to the union so that it gets paid for the sale of its products.

2.    The societies that are involved in its functioning hold fixed deposits that act as a major source of capital.

3.    As these Fixed deposits release some kind of Interest when deposited in banks like UTI, BOB etc. These act as another source of the finance.

4.    The share capital is not public hence it is not listed in the market it is exclusively for the members of the society.

Conclusion

Amul is a company that is very much concerned with its CSR or Corporate Social Responsibility hence It hires people and trains them through their internal training modules to improve and upgrade their knowledge. They expect their employees to be courteous and responsible towards their customers to develop asense of trust and credibility with their buyers.

Published Date

21 Dec, 2017