Amul and IBM Sign IT Services Agreement to Fuel Future Growth

10-year Strategic Outsourcing Deal also involves Affiliated Milk Unions

ARMONK, N.Y., July 6 -- GCMMF (Amul), India's largest food products marketing organization, has approved a deal by the Board of GCMMF stating that IBM (NYSE:IBM) will help transform the Information Technology landscape of GCMMF and the Milk Unions to enable and support their accelerated growth plans. The 10-year strategic outsourcing deal is worth over Rs. 80 crores, and underscores GCMMF's rapid growth path and vision to ensure its Information Technology services are state-of-the-art.

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Under the terms of the deal, IBM will manage and operate IT environment of Amul for the next 10 years. SAP ERP on IBM technology platform is the chosen vehicle for this transformation. IBM will also build a state of the art Data Center backed by a Disaster Recovery Center, define the security policy and maintain and manage the entire technology and application landscape. The project would begin with the implementation of SAP Enterprise Resource Planning (ERP) application along with the necessary modules and systems that will enable Amul to increase its operational efficiencies. As a result, the cooperative will be able to further improve its supply-chain, strengthen customer focus and achieve many-fold growth.

Commenting on the agreement Shri B M Vyas, Managing Director, GCMMF, said that "Amul has deployed Information Technology up to the hilt right from the grass-root level of Village Dairy Cooperative Societies by deploying technologies like Automatic Milk Collection System (AMCS) and also developed several innovative Business Processes unique to the country and known World-wise as 'Amul Pattern'. Working together of Amul, IBM & SAP will further strengthen the IT processes and ultimately, the entire dairy Industry in the country will gain from new innovative IT platform to be evolved out of this partnership. This would be one of the most important projects, where Information Technology is going to affect lives of millions of farmers. This agreement is a step in that direction."

Sandip Patel, Managing Partner - Global Business Services, IBM India and South Asia, remarked that "IBM offers an unmatched breadth and depth of services that drive business results for clients like Amul, allowing them to strictly focus on their customers. This win is another example of IBM's commitment to help organizations build streamlined, smarter analytical solutions that allow them to become more resilient, and better positioned for growth. We are confident that IBM's solutions will enable GCMMF to streamline its processes and improve efficiencies."

  The agreement was signed on July 3, 2009.

  About Gujarat Cooperative Milk Marketing Federation

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It is a state level apex body of 2.8 million dairy farmers spread over 13,000 villages of Gujarat affiliated through 13 District Milk Unions. GCMMF aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are value for money.

  For more information visit http://www.amul.com/.

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  IBM India Pvt. Ltd.
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