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