MIRA INFORM REPORT

Report Date :

07.03.2011

IDENTIFICATION DETAILS

Name :	GUJARAT COOPERATIVE MILK MARKETING FEDERATION LIMITED
Registered Office :	Amul Dairy Road, Post Box No. 10, Anand-388001, Gujarat
Country :	India
Financials (as on) :	31.03.2005
Year of Establishment :	1973
TAN No.: [Tax Deduction & Collection Account No.]	BRDG00866F
PAN No.: [Permanent Account No.]	AAACG7189H
Legal Form :	A Cooperative Society registered under the Cooperative Society’s Act in the year 1973.
Line of Business :	Sole marketer of the original range of Amul Products including milk powder and butter.

RATING & COMMENTS

MIRA’s Rating :

Aa (81)

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 3450000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Exists
Comments :	Subject is a well established and a reputed society having excellent brand image. Trade relations are reported as fair. Financial position is sound. Business is active. Payments are regular and as per commitments. Society can be considered good for normal business dealings at usual tread terms and conditions. It can be regarded as a promising business partner in medium to long run.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION DENIED BY

Name :	Mr. Kalpesh Rana / Mr. Ajay Sheth
Designation :	Junior Executive – Accounts / Deputy Manager – Accounts and Finance

LOCATIONS

Registered Office :	Amul Dairy Road, Post Box No 10, Anand – 388001, Gujarat, India
Tel. No.:	91-2692-258506 / 258507/ 258508/ 258509 / 241621 and 23
Fax No.:	91-2692-240208 / 240185
E-Mail :	Corporate: gcmmf@amul.com Exports: exports@amul.com Careers: careers@amul.com
Website :	http://www.amul.com
Product Feedback:
Milk Powders:	milkpowders@amul.com
Amulya:	amulya@amul.com
Infant Milk Formula I & II:	babycare@amul.com
Butter:	butter@amul.com
Amullite:	amullite@amul.com
Ghee:	ghee@amul.com
Cheese Range:	cheese@amul.com
Indian Sweets:	mithaee@amul.com
Milk:	milk@amul.com
Chocolates:	chocolates@amul.com
Pizza:	pizza@amul.com
Mastidahi:	Mastidahi@amul.com
Shrikhand:	shrikhand@amul.com
Icecreams:	icecream@amul.com
Nutramul:	nutramul@amul.com
Paneer:	paneer@amul.com

DIRECTORS

Name :	Shri Ramsinhbhai P. Parmar
Designation :	Director
Name :	Shri Jethabhai P. Patel
Designation :	Director
Name :	Shri Ajitsinh R. Thakor
Designation :	Director
Name :	Shri Bhupendrasinh P. Solanki
Designation :	Director
Name :	Shri Govindbhai S. Ranpariya
Designation :	Director
Name :	Shri Sardarsinh K. Desa1
Designation :	Director
Name :	Shri Vipulbha M. Chaudhary
Designation :	Director
Name :	Shri Parthibhai G. Bhatol
Designation :	Director
Name :	Shri Manubhal A. Patel
Designation :	Director
Name :	Shri Mohanbhai R. Bharwad
Designation :	Director
Name :	Shri Moghabhai M. Desai
Designation :	Director
Name :	Shri Babuji U. Thakor
Designation :	Director
Name :	Shri Babuji U. Thakor
Designation :	Director
Name :	Shri Babuji U. Thakor
Designation :	Director

KEY EXECUTIVE

Name :	Mr. Kalpesh Rana
Designation :	Junior Executive – Accounts Department
Name :	Mr. Ajay Sheth
Designation :	Deputy Manager – Accounts and Finance

BUSINESS DETAILS

Line of Business :	Sole marketer of the original range of Amul Products including milk powder and butter.
Products :	· Milk · Milk Powder · Health Beverages · Ghee · Butter · Cheese · Pizza Cheese · Ice Cream · Paneer Chocolate Traditional Indian Sweets Edible Oils. Bread Spreads Mithaee Infant Milk Sweetened condensed Milk Curd products Chocolate and Confectionery Brown Beverage
Brand Names :	v Sagar v Dhara
Exports :
Products:	Bulk Packs: v Amul Skimmed Milk Powder v Full Cream Milk Powder Consumer Packs: v Amul Pure Ghee v Butter v Shrikhand v Mithaee Gulabjamun v Infant Milk Food v Cheese v UHT Milk (Liong Life) v Fresh Cream v Nutramul Brown Beverage
Countries:	USA, Gulf Countries, Singapore

GENERAL INFORMATION

Bankers :	v State Bank of India, Anand v State Bank of Saurashtra, Anand v Bank of Baroda, v State Bank of India, Kaira District Central v Co-Operative Bank Limited
Facilities :	Secured Loan From Banks – Overdrafts against Fixed Deposit – Rs. 78.891 Millions

Banking Relations :	Good
Auditors :
Name :	S. R. Batliboi and Company Chartered Accountants

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs. 500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs.400.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		400.000	400.000	400.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		462.520	438.100	416.800
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		862.520	838.100	816.800
LOAN FUNDS
1] Secured Loans		78.891	73.800	168.000
2] Unsecured Loans		0.000	675.500	0.000
TOTAL BORROWING		78.891	749.300	168.000
DEFERRED TAX LIABILITIES		41.397	0.000	0.000
TOTAL		982.808	1587.400	984.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1286.197	1116.700	1015.300
Capital work-in-progress		0.000	0.000	21.200
INVESTMENT		7.291	3.300	3.300
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2270.092	1268.500	2001.800
	Sundry Debtors	265.781	195.000	322.100
	Cash & Bank Balances	803.758	672.100	729.800
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	113.681	658.100	173.700
Total Current Assets		3453.312	2793.700	3227.400
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	3639.083	2030.000	3203.300
	Provisions	124.909	296.300	79.100
Total Current Liabilities		3763.992	2326.300	3282.400
Net Current Assets		(310.680)	467.400	(55.000)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		982.808	1587.400	984.800

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	29209.972	27667.700	23807.100
Profit/(Loss) Before Tax	76.120	164.500	93.000
Provision for Taxation	0.000	51.100	25.000
Profit/(Loss) After Tax	76.120	113.400	68.000
Total Expenditure	29200.182	27310.500	23486.400

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
PAT / Total Income	(%)	0.26	0.41	0.29
Return on Total Assets (PBT/Total Assets}	(%)	1.61	4.21	2.19
Return on Investment (ROI) (PBT/Networth)		0.09	0.20	0.11
Debt Equity Ratio (Total Liability/Networth)		4.46	3.67	4.22
Current Ratio (Current Asset/Current Liability)		0.92	1.20	0.98

LOCAL AGENCY FURTHER INFORMATION

LITIGATION DETAILS:

Case Details: Tax Appeal/950/2008

Case Status: Pending

Pending Date: 01-04-2009

Petitioner Name: The Asst. Commissioner of Income Tax, Anand Circle, Anand

Respondent Name: Gujarat Co-Operative Milk Marketing Federation Limited

Petitioner Advocate: Mr. K M Parikh

Respondent Advocate: Rule Served

SALES

During the year, the Federation's sales registered a growth of 1.4 per cent to reach Rs. 29225.300 Millions (Rs. 29.22 billion) including consignment sales of Rs. 15.300 Millions (Rs. 0.02 billion). This lower than expected overall growth was owing firstly to low procurement of milk during the first half of the year, and secondly to unfavourable commodity market prices when procurement normalized. Commodities—to achieve power in the market. Thus, the dairy line in consumer packs grew by 11.8 per cent during the year. Sales of Amul Milk in pouches increased by 36 per cent in value terms. A notable development in the area of liquid milk in pouches has been the successful launch of Amul Milk in the Kolkata market during December 2004- UHT Milk has grown in value terms by 23 per cent. Amul Ice cream achieved a sales value growth of 10 per cent, and has strengthened its position as the undisputed market leader. Despite intense competition, sales value of Amul Butter grew by 4-5 per cent. The sales of the Amul Cheese range increased by 21 per cent. Products like Flavoured Milk, Amul Fresh Cream, Paneer, Mithaimate, Softy Mix and fresh curd demonstrated their potential to become dominant brands in the coming few years. They have launched a promising new product called Amul Masti Spiced Buttermilk during the year.

POUCH MILK

Amul pouch milk has become the largest contributor to their turnover with annual sales of about Rs. 6260.000 Millions (Rs. 6.26 billion) during 2004-2005 as against Rs. 4620.000 Millions (Rs. 4.62 billion) during the previous year implying a growth of about 36 per cent. During last year they had surveyed major markets for exploring possibility of opening new markets. Taking into consideration their strong brand equity, experience of milk marketing and their association with milk in the consumer's mind, they are planning to open several new markets and will focus on distribution expansion in the existing metro markets.

WEBSITE DETAILS ATTACHED:

HISTORY

The first AMUL cooperative was the result of a farmers' meeting in Samarkha (Kaira district, Gujarat) on 4^th January 1946, called by Morarji Desai under the advice of Sardar Vallabhbhai Patel. Dairy farmers in Kaira district in Gujarat organized into a union of cooperatives to counter "exploitive low" price offered for their milk by middleman/private milk processors. It had inspiration from the leaders of India. Eminent leaders like Sardar Vallabh Bhai Patel, Shri Morarji Desai, Shri Tribhuvandas Patel and Shri Lal Bahadur Shastri provided vision and inspiration.

The decision was taken that day in January 1946: Milk producers' cooperatives in villages, federated into a district union, and should alone handle the sale of milk from Kaira to the government-run Bombay Milk Scheme. This was the origin of the Anand pattern of cooperatives. The colonial government refused to deal with the cooperative. The farmers called a milk strike. After fifteen days the government capitulated. This was the beginning of Kaira District Cooperative Milk Producers' Union Ltd., Anand, registered

on 14 December 1946.

Gujarat's milk unions banded together in 1973 to form the Gujarat Cooperative Milk Marketing Federation Limited (GCMMF). GCMMF was established as a state level apex marketing organization to market its dairy cooperatives' products under a single brand name "AMUL". GCMMF became the sole marketer of the original range of AMUL products including milk powder and butter.

BUSINESS

Subject is India's largest food company with turnover of more than Rs.23000.000 Millions. It is exclusive marketer of AMUL, Sagar and Dhara branded products. Its products range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice cream, Paneer chocolate, traditional Indian sweets and edible oils. Subject cannot be viewed only as a business organization, it is an institution created by the milk producers to primarily safeguard their interest economically, socially as well as democratically. (While business houses create profit and distribute profits to the share holders, in case of GCMMF its profits are ploughed back opt the framers through the unions as well as village societies and this circulation to the capital with value addition within the structure with the final beneficiary being the rural framer eventually contributes to the development not only of the farmers but of the village community).

GCMMF: AN OVERVIEW

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money

CRISIL, India’s Leading Rating, Research, Risk and Policy Advisory company, has assigned its highest ratings of “AAA/Stable/P1+” to the various bank facilities of GCMMF.

Members: 13 district cooperative milk producers' Union

No. of Producer Members: 2.79 million

No. of Village Societies: 13328

Total Milk handling capacity: 11.22 million litres per day

Milk collection (Total - 2006-07): 3.05 billion litres

Milk collection (Daily Average 2006-07): 8.4 million litres

Milk Drying Capacity: 626 Mts. per day

Cattlefeed manufacturing Capacity: 3500 Mts per day

SALES TURNOVER	RS (MILLION)	US $ (IN MILLION)
1994-95	11140	355
1995-96	13790	400
1996-97	15540	450
1997-98	18840	455
1998-99	22192	493
1999-00	22185	493
2000-01	22588	500
2001-02	23365	500
2002-03	27457	575
2003-04	28941	616
2004-05	29225	672
2005-06	37736	850
2006-07	42778	1050
2007-08	52554	1325
2008-09	67113	1504
2009-10	80053	1700

List of Products Marketed:

Breadspreads:

v Amul Butter

v Amul Lite Low Fat Breadspread

v Amul Cooking Butter

Cheese Range:

v Amul Pasteurized Processed Cheddar Cheese

v Amul Processed Cheese Spread

v Amul Pizza (Mozarella) Cheese

v Amul Shredded Pizza Cheese

v Amul Emmental Cheese

v Amul Gouda Cheese

v Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned

v Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

v Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

v Amul Amrakhand

v Amul Mithaee Gulabjamuns

v Amul Mithaee Gulabjamun Mix

v Amul Mithaee Kulfi Mix

v Avsar Ladoos

UHT Milk Range:

v Amul Shakti 3% fat Milk

v Amul Taaza 1.5% fat Milk

v Amul Gold 4.5% fat Milk

v Amul Lite Slim-n-Trim Milk 0% fat milk

v Amul Shakti Toned Milk

v Amul Fresh Cream

v Amul Snowcap Softy Mix

Pure Ghee:

v Amul Pure Ghee

v Sagar Pure Ghee

v Amul Cow Ghee

Infant Milk Range:

v Amul Infant Milk Formula 1 (0-6 months)

v Amul Infant Milk Formula 2 ( 6 months above)

v Amulspray Infant Milk Food

Milk Powders:

v Amul Full Cream Milk Powder

v Amulya Dairy Whitener

v Sagar Skimmed Milk Powder

v Sagar Tea and Coffee Whitener

v Sweetened Condensed Milk:

v Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

v Amul Taaza Toned Milk 3% fat

v Amul Gold Full Cream Milk 6% fat

v Amul Shakti Standardised Milk 4.5% fat

v Amul Slim & Trim Double Toned Milk 1.5% fat

v Amul Saathi Skimmed Milk 0% fat

v Amul Cow Milk

Curd Products:

v Yogi Sweetened Flavoured Dahi (Dessert)

v Amul Masti Dahi (fresh curd)

v Amul Masti Spiced Butter Milk

v Amul Lassee

Amul Icecreams:

v Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)

v Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi)

v Utsav Range (Anjir, Roasted Almond)

v Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate)

v Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant)

v Sundae Range (Mango, Black Currant, Chocolate, Strawberry)

v Millennium Icecream (Cheese with Almonds, Dates with Honey)

v Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)

v Cool Candies (Orange, Mango)

v Cassatta

v Tricone Cones (Butterscotch, Chocolate)

v Megabite Almond Cone

v Frostik - 3 layer chocolate Bar

v Fundoo Range - exclusively for kids

v SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple)

v Health : Isabcool

Chocolate and Confectionery:

v Amul Milk Chocolate

v Amul Fruit & Nut Chocolate

v Brown Beverage :

v Nutramul Malted Milk Food

Milk Drink:

v Amul Kool Flavoured Milk

Health Beverage:

v Amul Shakti White Milk Food

Ready to Serve Soups:

v Masti Tomato Soup

v Masti Hot & Sour Soup

Members' Development:

To educate and train male & female members of their Cooperatives they conduct Cooperative development programmes at the village level. The various programmes

Implemented at village level are as follows:

v Women Education Programme

v Member Education Programme

v Members' Business development Programme

v Managing' Business development Programme

v Managing Committee Member Training

v Leadership Development Programme

v VDCS Staff Orientation Programme

v MILK Day Programme

v Women Awareness Programme

v Women Leadership Development Programme

v School programmes

v BOD orientation Programme

v Special campaign Programme for private traders

v Special boards of directors' workshop

The major achievements of the programme are as follows:

v Increased awareness among members reflected though

v Democratic Governance

v Regular elections

v Regular management committee/board meetings

v Regular audit of societies

v Open & Voluntary Membership

v Increase in membership

v Increase in pourer members

v Increase in Women membership

v Women Empowerment

v Increase in Women Management committee member

v Increase in Women Dairy Cooperative Societies

v Increase in no. of Women Board of Directors

v Adoption of new technology to improve Quality of milk production & processing

v Milk-testers - Milk Quality Improvement

v Pucca society house - Environment

v Pucca cattle shed - environment Improvement

v Automatic Milk Collection Station - Milk Quality Improvement

v Computerization of milk collection 0 Milk Quality Improvement

v Village Bulk Chilling Unit - Milk Quality Improvement

v Bulk coolers- Milk quality Improvement

Over and above this, pursuing to their effort sin implementation of Total Quality Management (TQM) at all levels, they have also started Village Self-leadership Development Programme through Internal Consultant Development (ICD) intervention for addressing the needs of Primary members & Dairy Co-operative Societies through development of internal consultants at the village level and implementing need based modules for development of the villages through these internal consultants,.

The major objectives of the intervention pare as follows:

v To improve quality, hygiene & productivity at all level

v To implement the concepts of TQM to the primary producers

v To develop social security measures

v To improve health care of animal

v To take Co-operative Development to the next level

v To develop self-leadership at society level

v To facilitate continuous & speedy flow of information at all levels

v To take the relationship between Producer & Society beyond economics

PRESS RELEASES:

CRISIL ‘AAA’ and ‘P1+’ for GUJARAT COOPERATIVE MILK MARKETING FEDERATION’ bank facilities

Rs. 0.23 Billion Cash Credit Limit	AAA/Stable(Assigned)
Rs.7.5 Billion Bill Discounting	P1+(Assigned)
Rs. 0.30 Billion Short Term Bank Facility	P1+(Assigned)
Rs.40 Million Letter of Credit	P1+(Assigned)
Rs.40 Million Bank Guarantee	P1+(Assigned)

CRISIL has assigned its highest ratings of ‘AAA/Stable/P1+’ to the various bank facilities of Gujarat Cooperative Milk Marketing Federation (GCMMF). The ratings are underpinned by GCMMF’s dominant position in the domestic dairy industry, and strong financial risk profile. These strengths are partially offset by the federation’s exposure to policy-level, environmental and epidemic-related factors that influence the agro-related sectors.

GCMMF has superior brand equity, a wide product portfolio, well-spread distribution network, and an aggressive marketing strategy. GCMMF has established the brand ‘Amul,’ as the leading dairy products brand in India. GCMMF’s has an exceptional distribution network and its products are geographically well diversified. GCMMF has always been proactive in maintaining its leadership position in the dairy products segment, by launching new products, research and development (R&D) initiatives, and innovative sales strategies to enhance customer satisfaction. GCMMF has grown at a healthy compounded annual growth rate (CAGR) of 17 per cent over the past four years, owing to its superior market position. Moreover, GCMMF has a robust financial risk profile, supported by a steady growth in accruals, a favourable capital structure, excellent debt-protection measures and strong liquidity. The federation’s gearing was also low at 0.13 times, as on March 31, 2008. Owing to its near debt-free status, GCMMF’s debt protection measures are excellent: it had interest coverage and net cash accrual to debt ratios of more than 32 times and 2 times, respectively, in 2007-08 (refers to financial year, April 1 to March 31).

GCMMF is exposed to risks generic to the dairy industry. The prices of raw materials in the dairy industry are sensitive to the impact of government policies and environmental conditions. The manufacturers are also vulnerable to risks of failure in milk-production due to other external factors, such as cattle diseases. Although, GCMMF’s sales have, hitherto, never been affected by such factors, the risk remains as materialists sources most of its milk from a single state, Gujarat. However, the federation does have the flexibility to source supplies from other state, which would address most supply shortage eventualities.

Outlook:Stable

CRISIL believes that GCMMF will maintain its exceptional business profile. Therefore, GCMMF is likely to sustain its favourable financial risk profile, despite intense competition in the fast-moving consumer goods (FMCG) industry. The outlook may be revised to ‘Negative’ if the federation is exposed to disruptions in the supply of raw materials due to adverse environmental conditions.

About GCMMF

Established in 1973, GCMMF is India’s largest dairy products marketing organisation. It procures milk from 2.7 million farmers who are its members. It is the apex marketing federation for 13 district-cooperative milk unions. The federation includes 12,792 village dairy co-operative societies of Gujarat. The products of its member unions are marketed and distributed under the brand name ‘Amul’. GCMMF is the largest exporter of dairy products. It has a significant presence in the Gulf, South Asian Association for Regional Cooperation (SAARC) region, USA, Singapore, Hong Kong, Philippines, Cambodia, Japan, Vietnam, China, Australia and Africa. As on March 31, 2008, GCMMF had an absolute net worth of Rs.1200 Million. The federation reported a profit after tax (PAT) of ~ Rs.150 Million on revenues of Rs. 52.64 Billion for 2007-08.

Media Contact	Analytical Contacts	CRISIL Rating Desk
Ramya Krishnan Anil Head, Market Development & Communications CRISIL Tel:+91-22-6758-8051 Cell:+91 98203 42671 Fax:+91-22-6758-8088 Email: RamyaKA@crisil.com	Pawan Agrawal Director, Corporate and Government Ratings – CRISIL Ratings Tel:+91-22-6691 3301 Email: pagrawal@crisil.com John Joseph Head, Corporate and Government Ratings - CRISIL Ratings Tel: +91-22-6691 3133 Email: jjoseph@crisil.com	Tel: +91-22-6691 3047 / 6691 3064 Email: CRISILratingdesk@crisil.com

Amul posts marginal topline growth, trebles its exports

Sindhu J. Bhattacharya

New Delhi, June 28 2007

LAST fiscal, the Gujarat Co-operative Milk Marketing Federation (GCMMF) became the first Indian dairy products company to treble its export sales to Rs 1150 Millions. However, the federation's topline grew just 1.4 per cent in 2004-05 to reach Rs 29225.300 Millions.

The federation's Chairman, Dr V. Kurien, said the lower-than-expected topline growth was due to lower milk procurement during the first half of the year and unfavourable commodity market prices.

However, GCMMF's (which markets the Amul brand of products) consumer packs performed well during the year under review to record a 12-per cent growth.

"I am pleased to note the federation has done remarkably well in most of the consumer packs. A co-operative must increasingly rely on branded products - rather than commodities - to achieve power in the market," Dr Kurien said in the federation's latest Annual Report.

Despite lower procurement during the first half of the last fiscal, total milk procurement by the member unions of GCMMF grew 15.2 per cent to average 58.89 lakh kg per day.

Leading the sales growth of GCMMF's consumer packs business, Amul Milk in pouches registered 36 per cent in value terms. Sales of Amul Ultra Heat Treatment Milk were up 23 per cent. Amul ice-cream sales were up 10 per cent and Amul Butter 4.5 per cent.

With sales of Rs 6260 Millions, Amul Milk in pouches became the largest contributor to GCMMF's turnover last fiscal. To further strengthen its milk business, the federation has decided to enter several new markets with this product in the current year.

The federation also succeeded in establishing its distribution network in small town’s last fiscal, by adding 900 distributors.

"This initiative has already started yielding results, in the form of increasing availability of our products in small towns and thereby generating additional business," Dr Kurien said.

COVER STORY

The Amul twist

RS Sodhi, General Manager (Marketing), GCMMF, in conversation with Shuchi Srivastava, explains Amul’s retailing plans and expansion strategies The Gujarat Cooperative Milk Marketing Federation (GCMMF) has achieved 18 per cent growth during 2003-04 to close the year with a Rs 28820.000 Millions turnover, so it has been an enthusiastic year for Amul

Their March closing was exceptionally good as an overall growth was witnessed across all their dairy products.

What percentage of this growth would you attribute to business garnered from the organised retail segment in India?

As far as GCCMF is concerned, the contribution from the organised retail segment would be negligible, say about 2-3 per cent. Except for a few cities like Hyderabad and Bangalore, the actual penetration of the organised retail segment is not really significant in other parts of India.

But what about the fact that the distribution of the products is carried out through a network of 4,000 Stockists who, in turn, supply to 500,000 retail outlets?

These outlets would not fall in the organised segment but rather in the traditional unorganized one.

You have recently introduced new processes where you plan to launch new products, or re-launch old ones every Thursday of the week? Don’t you think such an increase in the product portfolio would be enhanced if these new products are present in organised retail formats?

Yes, the opportunity is immense but as I said earlier, due to the lack of an established market presence, such formats are not really high on their list of priorities. It would make much more sense to liase with local selfowned supermarkets who have all the amenities of an organised retail format. There is no special strategy to specifically target the organised segment. This does not mean that they don’t figure on their list at all; they do, but just as any other category.

Are the products accorded any special treatment in terms of packaging, labeling or other areas when sent to organised retail formats?

No, none at all they have the same range of products across all categories.

Given that there has been a shift towards branded food products, across urban markets, why has their sale through organized retail formats not taken off?

Clearly because there is no significant cost advantage offered to consumers in order to lure them away from the comfort of their local mom-andpop stores. At the latter option, one may still find a definite price advantage that is instrumental in cementing a long-lasting relationship with the customer. An inviting ambience is an experience that organised retail formats offer but gradually this advantage too is losing its edge as the smalltime, so-called unorganized retailer is also waking up to the fact.

AWARDS:

GCMMF bags APEDA AWARD for 11th year in a row

GCMMF has bagged award for excellent performance in exports of dairy products for the year 2006-07 from Agricultural and Processed Food Exports Development Authority (APEDA), Minister of Commerce, New Delhi. GCMMF has won the award for 11th time. The award was received by Mr. Raveen Choudhary, our AGM (Z-I), Delhi, from Hon'ble Minister of Commerce, Shri Kamalnath, in a glittering ceremony held at Siri Fort Auditorium on 3rd June, 2008.

Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit

"Sh VK Singh, IAS, Managing Director, Punjab Cooperative Dairy Federation accepting 2007 IDF Marketing Award from Sh Jim Begg, President, International Dairy Federation for Amul Prolife Probiotic Ice Cream on 3rd Oct 2007 at World Dairy Summit, Dublin, Ireland. Sh VK Singh had kindly accepted award on behalf of GCMMF."

It’s another triumph for brand Amul. After emerging as India’s topmost brand, it has gone to win one of the world’s most prestigious awards – The International Dairy Federation Marketing Award (2007) for Amul pro-biotic ice-cream launch.

Announcing the award on October 03, at Dublin, Ireland on the occasion of the World Dairy Summit, Mr. Jim Begg the IDF President commented “These campaigns are excellent examples of best practise in branded and generic marketing from around the world. In markets around the world that are volatile and highly competitive, dairy products have a role in health balanced diets, and these campaigns have demonstrated the ability of well planned and executed marketing investments.”

GCMMF is the first and the only Indian organization to receive the 2007 IDF Marketing Award which covered three categories – Nutri-marketing, Innovation and Marketing Communication. Amul Pro-biotic Ice-cream received the award in the Nutri-marketing category.

According to Shri B. M. Vyas, Managing Director, GCMMF, “We launched Amul Pro-biotic Ice-cream as well as Amul Pro-biotic Sugar Free Ice-cream, due to the constraints of cold chain which is a pre-requisite for ice-cream distribution. In a country like India where we have waterborne diseases like diarrhoea, eating a spoonful or two of pro-biotic ice-cream would keep the family healthy and strong. The product was launched with this in view. We were the first in the country to introduce pro-biotic ice-cream and pro-biotic sugar free ice-cream. We are happy that our efforts have been globally recognized by bestowing the prestigious IDF Marketing Award’.

In January 2007, for the first time in India and the world GCMMF introduced the Amul range of Pro-biotic and sugar free ice-creams aimed at the health- conscious and diabetic. Probiotics are live beneficial culture which, when administered in adequate amounts, confer a beneficial health effect on the host. They help in digestion, especially of milk sugar (lactose). They improve the immune system, build stronger bones and are effective in controlling travelers’ diarrhoea. They also help in the prevention of formation and growth of colon cancer.

GCMMF was the first organization in the country to launch Pro-biotic food. In order to educate consumers and trade about the benefits of Pro-biotic ice- cream, GCMMF ran extensive advertising and direct marketing campaigns during the year.

Ramkrishna Bajaj National Quality Award-2003

The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the top scorer in the service category of the prestigious IMC Ramkrishna Bajaj National Quality Award - 2003. The Certificate of Merit was presented at a glittering ceremony held at Mumbai on March 11 by the Governor of the Reserve Bank of India, Dr. Y. V. Reddy.

According to Shri B. M. Vyas, Managing Director, GCMMF, this recognition has once again reiterated GCMMF's commitment to quality and excellence. The biggest strength of GCMMF is the trust it has created in the minds of consumers regarding the quality of its products. GCMMF and its brand Amul stand for guaranteed purity for whatever products it produces, he added.

GCMMF has bagged this award for adopting noteworthy quality management practices for logistics and procurement. Over the years, it has established an efficient supply chain that penetrates even the remotest corners of the country. The information systems of the Federation are comprehensive and include details on product quality, delivery performance, supplier quality, disaster recovery and all essential commercial areas, the citation reads.

The Ramakrishna Bajaj National Quality Award is based on framework and principles almost similar to the Malcolm Baldrige Award that is given by the President of the United States to businesses - manufacturing and service, small and large - and to education and healthcare organizations that apply and are judged to be outstanding in seven areas: leadership, strategic planning, customer and market focus, information and analysis, human resource focus, process management, and business results.

Mr. B M Vyas receives the Qimpro Gold Standard Award
 
Qimpro Platinum Standard, the highest individual honour, has in recent years been awarded to Chandra Mohan, Aditya Birla, Deepak Parekh, F C Kohli, Dr J J Irani, Azim Premji, and Kumar Mangalam Birla. Qimpro Awards are recognized by the ASQ and the Institute of Quality Assurance, UK

AMUL - THE TASTE OF INDIA (GCMMF)

Receives

INTERNATIONAL CIO 100 AWARD FOR RESOURCEFULNESS

GCMMF is a winner of the prestigious international CIO 100 award from IDG's CIO Magazine, USA. The 2003 CIO 100 award recognizes the organisations around the world that excel in positive business performance through resourceful IT management and best practices.

This CIO International IT excellence Award has recognised the Cooperative Movement & its Leadership under the "Amul" brand, initiated by Dr. V Kurien, Milkman of India, whose main Motto is to build Indian Society economically & literally strong through innovative cooperative resourceful network, so as to provide quality service & products to the end consumers and good returns to the farmer members.

This award has also given direction that IT need to be encouraged & adopted more & more at grass root level and bridge the digital divide through proper training, re-training so as to bring radical change & benefit to the Indian society.

It has also recognised the Managing Director, Mr. B M Vyas, who has taken IT initiative by setting the direction "GCMMF as IT Company in Food business". It has also inspired all the employees of GCMMF Enterprise to sustain the challenges as a "Change Agent" by excelling their IT skills in order to transform the people around them towards IT Integration (e-Vision) on both the ends of supply chain (Village level Farmer to end consumer). This award also motivated the each & every member dairy, Amul's wholesale distributors, retailers, transporters and suppliers who have supported whole-heartedly the IT initiatives of GCMMF.

The Gujarat Co-operative Milk Marketing Federation (GCMMF) has been honoured at the CIO 100 Symposium & Award Ceremony on August 19, 2003, at the Broadmoor in Colorado Springs, Colorado, USA. Shri Subbarao Hegde, Head of IT had been to USA and received the said Award on behalf of GCMMF. The photograph link of the recipient of the CIO award along with CIO Magazine's Editor in Chief, Abbie Lundberg, can be seen at www.cio.com

Rajiv Gandhi National Quality Award – 1999

After creating ripples in the market whether it be with a Rs. 20/- Pizza or with a "real" Ice Cream, Amul has done it again. But this time, it is not only for new product launches or giving a tough fight to best of the food companies in extremely competitive segments, it has now topped as the winner of the "Best of All" Rajiv Gandhi National Quality Award for the year, 1999.

The award which is considered equivalent of Malcolm Baldrige National Quality Award of USA and European Quality Award, is the most prestigious award which recognizes achievements of an organization in terms of excellence in business results, business processes, customer satisfaction as well as societal and environmental impact.

GCMMF, the apex marketing body of well known Amul, Sagar and Dhara brands of products is a Cooperative Federation of more than 2 million milk producers of Gujarat. Pioneered by Dr. Verghese Kurien, the father of white revolution, GCMMF is today nation's largest food company with an annual turnover exceeding Rs 23000 Millions.

Looking at the emerging trends of liberalization and impact of WTO, the GCMMF proactively embarked upon Total Quality Management as a change management initiatives to strengthen all its functional processes to effectively combat emerging competition. It undertook successfully a number of TQM initiatives like Kaizen, Housekeeping, Small Group Activities, Hoshin Kanri (Policy Deployment) across the organization.

Realising that unless the TQM initiatives are accepted by all the business partners, the same would remain ineffective. As a very unique measure Amul extended all the TQM initiatives to its business partners whether it was the farmer producer in the village or a wholesale distributor in a metro town or its most sophisticated production unit.

Shri B.M. Vyas, Managing Director, who championed this movement realized way back in 1994 that with emerging competition, doing business would become more exciting yet extremely competitive which would require at times not only a whole set of new skills and competencies but quick adaptability to change without much stress or turbulence. The initiation of TQM was to work with the well known quality management initiatives which have proven to be effective elsewhere to create a culture of transparency, openness and leadership in the organization.

Employees of GCMMF have done more than 16 Millions Kaizen since May, 1995 which has impacted in bringing in a culture of continuous improvement. The housekeeping initiatives have helped keeping the offices/warehouses neat, clean and more productive, be it be the Office premises or the godowns or even Computers. More than 150 SGAs (Small Group Activity) have been carried out in cross functional groups to address the problem and pain areas of the organization, be it an issue of sales, marketing, HR or IT. The organization has implemented a customized ERP for seamless integration of its 40 odd sales offices from Jammu to Port-Blair and Head Office. All its wholesale dealers are computerized and GCMMF is moving on a B2B model for integration interface with its dealers be it for placing order for buying its products, sharing information or for tracking logistic of dispatch/receipt of goods.

One of the unique initiatives has been in terms of involvement of its wholesale dealers in a common platform to address issues of market/customers. All the wholesale dealers from across the country have visited Anand in a unique programme called "AMUL YATRA". In the next phase, the organization has already started inviting the salesmen of these wholesale dealers for this programme. It also intends to invite the top retailers of various cities/towns to Anand. The purpose is not as much to orient them to GCMMF's business plans, but to inculcate a super-ordinate goal in their heart that when they are associated with AMUL, they are working for a modest milk producer in the rural hinterland of the country and that is what true progress is about. GCMMF has more than 200 Amul Quality Circles in the country where all the above wholesale Dealers meet in group on every third Saturday of the month to discuss their business, quality initiatives and also pain areas. This has impacted tremendously not only in communication but also in improving the transparency in the organization.

GCMMF has also embarked upon for last 4 years, 'Hoshin Kanri' a ployment initiative where more than 100 Officers/Heads participate twice in a year to review its business goals/processes and implement new initiatives. These are further cascaded to the wholesale dealers in different territories in a two day exercise called Vision Mission Strategy (VMS) Workshop. These initiatives have resulted common understanding of goals, eliminating communication barrier.

The initiative of TQM six years back has made the organization efficient whether it be in launch of brands, or in implementing ERP's or expanding its distribution network. More striking feature of GCMMF's TQM experience is the integration of its business linkages at the village level to the forward linkage through its sales offices/wholesale dealers in the market.

In a glittering function organized at Vigyan Bhawan, New Delhi on 12th November, 2001, Shri Shanta Kumar, Hon'ble Minister of Consumer Affairs, Food and Public Distribution gave away the awards to Shri B.M. Vyas, MD of GCMMF.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.99
UK Pound	1	Rs.73.24
Euro	1	Rs.62.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	YES
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		81

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.