Amul Business Model

 

Amul

Amul is an Indian Dairy Cooperative Society, headquartered in Anand, Gujrat. It was the year 1946 when the poor farmers in Gujrat were exploited as they were paid very low prices. The exploitation of both farmers and consumers gave birth to the idea of cooperative organization which was suggested by Sardar Vallabhbhai Patel and former prime minister of India Morarji Desai. The major minds behind the implementation who actually turned this idea into reality were by the virtue of the superior leadership of Tribhuvandas Patel and Dr. Verghese Kurien.

The objectives of Dr. Kurien were clear - a value for money that is affordable for consumers, and value for many that are profitable for farmers. 80% revenue of the firm was given to farmers, which makes Amul the largest profit-sharing company in the world. It stands at the top of its competitors in the field of most selling products in butter, milk, and ice-creams. The Amul brand has given the farmers the courage to live, hope, and dream.

Amul name means priceless in Sanskrit and the word AMUL stands for Anand Milk Union Limited. It produces butter and spreads, cheeses, sweets, milk, ghee, milk powder, condensed milk, ice cream, chocolate, lassees, and other milk-based drinks.

Advertising and marketing mark its importance in being the key elements in bringing the phenomenal success of Amul. In 1966, its advertising campaign launched the Amul Moppet, which was a small chubby-faced girl on advertising hoardings.

Mission

GCMMF endeavors to satisfy the taste and nutrition requirements of the customers, of the world through excellence in marketing by their committed team. Through co-operative networking, they are committed to offering quality products that provide the best value for money.

Vision

To provide more and more satisfaction to the farmers, their customers, employees, and distributors.

Founder

Dr. Verghese Kurien was born on 26th November 1921. He brought success to Amul. He was associated with KDCMPUL since 1950. He had a great understanding of the business. The company started focusing on quality, variety, advertising, and also innovation under the guidance of Dr. Kurien.

Dr. Kurien asked H.M. Dalaya, the Indian Dairy Engineer, and developed skimmed Milk and Milk powder from Buffalow Milk. Here came the twist and Amul got success and prosperity in hundredfold.

Business Model

Amul works in a three-tiered structure. In every village, the Village Dairy Cooperative Society is formed, where the Milk producers are a member of the Village Dairy Cooperative Society, which elect their representatives.

These representatives manage District Milk Unions, which takes care of the Milk and its products and manages its packaging and processing. These products are sold to the State Milk Federation, which acts as the distributed and sells the products in the market.

Farmer organizations directly sell products to consumers through the state milk federation. The intermediaries are eliminated which provides good income to the farmers.

PRODUCTS

Amul Overview

Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF Ltd), is India’s largest food product marketing organization with an annual turnover Rs 46,481 crores (2021 – 22).

GCMMF is a unique organization. It’s a body created by Farmers, managed by competent professionals serving a very competitive and challenging consumer market. It is a true testimony of synergistic national development through the practice of modern management methods.

We at GCMMF stand for integrity, excellence and quality through innovation. Our roots are embedded in the phrase “Work is worship”. Those who share these values will find themselves at home with us.

At GCMMF Ltd, while in pursuit of excellence, we offer a unique career opportunity to unlock your own potential. If you are looking for a challenging opportunity, you can explore your options with us. We firmly believe that you will never look back in your career again.

GCMMF Ltd offers varied career with ample opportunity to use your initiative, outstanding opportunities for further training and an excellent working atmosphere. We look forward to welcoming new, motivated members to our team. Even if there is currently no vacancy that matches your profile or wishes, you may upload your Resume’ for future vacancy.

India's "White Revolution," which was sparked by Amul, making the country the top producer of milk and dairy products in the world. Tribhuvandas Patel established Amul under the guidance of Sardar Vallabhbhai Patel, India's first deputy prime minister.

Then, in 1946, the Kaira District Milk Union Limited was created. The group was led by Tribhuvandas till his death in the 1970s. In 1949, he spoke with Dr. Verghese Kurien and convinced him to support the White Revolution's goals. Most people agree that Dr. Verghese Kurien founded Amul.

Utterly, butterly, delicious! Yes, you guessed it right this blog does a case study of Amul. Amul has made India the largest milk producer in the world! It gives us everything from milk to delicious milk products! So it is only fair that we must know about this great success story! #TWN

Amul the origin product

Under its partnership announced today, Amazonunder its Global Selling programme will offer Amul's Ghee and Gulab Jamun range to consumers in America. The range will gradually be increased to add other products like cheese and butter.

Anand Milk Union Limited, popularly known as Amul is India’s most loved cooperative dairy based in Anand, Gujarat. Amul Dairy was established in the year 1946 and has been spreading smiles and winning hearts ever since.

Amul started by selling cow and buffalo milk to help rural farmers and slowly moved towards manufacturing and selling other dairy products like butter, cheese, milk-based beverages, and many other products that have become a staple in our diets. The year 1964 was a turning point for Amul. It was in this year when the then Prime Minister of India, Late Shri Lal Bahadur Shastri visited Mr. Kurien, the Father of the White Revolution, to help turn dreams into reality.

Amul offers a wide variety of products ranging from butter, milk, and cheese to chocolates, ice creams, and much more. Having such a wide array of products has never led the brand to compromise on the quality that it promises to its consumers, and that continues to remain the brand’s USP.

Important facts about Amul

 

• It was first set up in Anand, Gujarat in 1946.


• Amul is run by Gujarat Milk Marketing Federation Ltd. (GCMMF), in joint ownership with more than 3.6 million milk producers.


• Amul Corporation was founded by Dr. Vergese Kurien, who is also known as the father of the White Revolution in India.


• More than 15 million milk producers distribute milk to dairy cooperatives of 144,500 dairies across the country.


• Amul operates in over 50 countries, with more than 7,200 exclusive stores in India alone.


• Amul has been bestowed with the Rajiv Gandhi National Quality Award “Best” in 1999, in recognition of its premium level of quality.


• Amul also has a Guinness World Record for the longest-running advertising campaign.

Designed in 1949, Dr Verghese Kurien’s journey at Amul began when he landed at Anand, a small village in Gujarat as a government official overseeing a dairy. Gradually, he moved from repairing agricultural machinery to revolutionising India's dairy business

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Amul operates on a three-tier mechanism. The first tier is the cooperative society in the village, with milk producers as voluntary members at the base. They are responsible for managing the co-operative through a democratically elected 9-member managing committee. The business is conducted by purchasing milk from members and selling it to the district-level cooperative. There are around 11,000 co-operatives or more in the small villages of Gujarat.

The second tier has the district co-operatives responsible for transforming milk into milk products, which are then marketed locally and the surplus is then sold to the state co-operative for national and international marketing purposes.

                                              

Used as a mascot to charm its audience with innocence and wit, the Amul Girl is a long-standing cartoon that has helped Amul connect with the community through humour and socio-political commentary.

The Amul Success Factor

   

Amul operates on a three-tier mechanism. The first tier is the cooperative society in the village, with milk producers as voluntary members at the base. They are responsible for managing the co-operative through a democratically elected 9-member managing committee. The business is conducted by purchasing milk from members and selling it to the district-level cooperative. There are around 11,000 co-operatives or more in the small villages of Gujarat

The second tier has the district co-operatives responsible for transforming milk into milk products, which are then marketed locally and the surplus is then sold to the state co-operative for national and international marketing purposes.

The third and final tier is the state-level cooperative also known as the Gujarat Cooperative Milk Marketing Federation (GCMMF) which holds the responsibility of marketing the products both nationally and worldwide.

This structure is a unique institution as it includes the entire network from production and procurement of raw materials to marketing and distribution channels and their management. Each of these steps has an estimated 23.60 lakh primary milk producers; 35,000 rural workmen in more than 11,400 village societies; 12,000 workers in 15 dairy plants; 750 marketing professionals; 10,500 salesmen in the distribution network and 600,000 salesmen in the retail network.

A co-operative of this level is not only bound to succeed but also sets an example of proper structure and management for others to follow. This structure has allowed Amul to create the most efficient supply chain thus leading the industry while simultaneously reaching its customer community in time, across the country, and abroad.

Amul’s efficient supply chain using its three-tier framework has increased the efficiency and speed of operations to such a level that it has helped set a precedent for other companies to follow. Amul adopted this model way back in the 1970s as part of the flood operation that led to the White Revolution. This model not only helped the farmer community get a fair price for their product but also helped India become the largest milk producer in the world.