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Amul

From Wikipedia, the free encyclopedia

This article is about the Indian dairy cooperative. For the ancient city of Āmul along the Oxus, see Türkmenabat. For the city in Iran, see Amol.

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Amul (Anand Milk Union Limited)

Type

Cooperative

Industry

Dairy

Founded

1946

Headquarters Anand, Gujarat, India

Key people

Chairman, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF)

Products

See complete products listing

Revenue

US$2.15 billion (2010–11)

Employees

735 employees of Marketing Arm. However, real pool consist of 3.03 million milk producer members[1]

Website

www.amul.com

the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).[11] The Cooperative was further developed and managed by Dr. which today is jointly owned by 3. transferred it to GCMMF. [9] Milk collection was also decentralized. to Polson. the milk farmers of the area went on a strike which led to the setting up of the cooperative to collect and process milk.[5] In the process Amul became the largest food brand in India and has also ventured into markets overseas. Baroda. He advised them to form a cooperative and supply milk directly to the Bombay Milk Scheme instead of Polson (who did the same but gave them low prices). and within a short span.Verghese Kurien along with H. Dalaya. an apex marketing body of these district cooperatives was set up in 1973. making it on a commercial scale.[8][9] Angered by the unfair and manipulative trade practices. the government at that time had given monopoly rights to Polson to collect milk from Anand and supply it to Bombay city. which would successfully compete against established players in the market. Formed in 1946. The trio's (T. founder-chairman of the GCMMF for more than 30 years (1973-2006).[9] In order to combine forces and expand the market while saving on advertising and avoid competing against each other.[6] [edit] History The Kaira District Co-operative Milk Producers' Union Ltd. in the small town of Anand (in Kaira District of Gujarat). Banaskantha. which often went sour in summer. the farmers of Kaira approached Sardar Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas K. In 1946. K.M. the GCMMF. meaning invaluable. Kurien and Dalaya's) success at the cooperative's dairy soon spread to Anand's neighbourhood in Gujarat.[13] [edit]Company info . Sabarkantha and Surat were set up.[7] Milk Producers had to travel long distances to deliver milk.The Amul Plant at Anand featuring the Milk Silos Amul is an Indian dairy cooperative. Patel. Dalaya's innovation of making skim milk powder from buffalo milk for the first time anywhere in the world and a little later.[10] He sent Morarji Desai to organise the farmers. The co-operative is also sometimes referred to by the unofficial backronym: Anand Milk Union Limited. [12] led to the first modern dairy of the cooperative at Anand. as most producers were marginal farmers who could deliver atmost 1–2 litres of milk per day. based at Anand in the state of Gujarat. Cooperatives were formed for each village too. [4] Amul spurred India's White Revolution. five unions in other districts – Mehsana. was registered on December 1. The Kaira Union which had the brand name of Amul with it since 1955. is credited with the success of Amul. along with Kurien's help. Dr Verghese Kurien. India.03 million milk producers in Gujarat.[2] The word Amul( derived from the Sanskritword Amulya( [3] ) is ). 1946 as a response to the exploitation of marginal milk producers by traders or agents of the only existing dairy. The prices of buffalo and cow milk were arbitrarily determined. the Polson (brand) dairy. which made the country the world's largest producer of milk and milk products. Moreover. Patel. it is a brand managed by a cooperative body.

74 billion (US$1. Gandhinagar. mineral mixture sales. Artificial Insemination services.78 billion).1 million village milk producers with millions of consumers in India[citation needed] . Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation.(February 2012) The Amul Model is a three-tier cooperative structure. produced by the district milk unions in 30 dairy plants.     Responsible for Marketing of Milk & Milk Products Responsible for Procurement & Processing of Milk Responsible for Collection of Milk Responsible for Milk Production [edit]Village Dairy Cooperative Society (VDCS) The main functions of the VDCS are as follows:   Collection of surplus milk from the milk producers of the village & payment based on quality & quantity Providing support services to the members like Veterinary First Aid. It is the apex organization of the Dairy Cooperatives of Gujarat. marginal farmers and landless labourers and include a sizeable population of tribal folk and people belonging to the scheduled castes. The above three-tier structure was set up in order to delegate the various functions. These cooperatives collect on an average 9. fodder & fodder seed sales. cattlefeed sales. following a court's intervention.   Selling liquid milk for local consumers of the village Supplying milk to the District Milk Union .4[citation needed] million litres of milk per day from their producer members. This helps in eliminating not only internal competition but also ensuring that economies of scale is achieved.[citation needed] The turnover of GCMMF (AMUL) during 2010–11 was 97.[citation needed] On 18 Aug 2012. Dairy Cooperatives in Gujarat have created an economic network that links more than 3. etc.The GCMMF is the largest food products marketing organisation of India. milk collection is done at the Village Dairy Society.5 million litres of milk per day and process 100 MTs of milk powder daily. The farmers of Gujarat own the largest state of the art dairy plant in Asia – Mother Dairy. It markets the products. Over the last five and a half decades. it is known as the „Amul Model‟ or „Anand Pattern‟ of Dairy Cooperatives. more than 70% of whom are small. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level which in turn is further federated into a Milk Federation at the State level. As the above structure was first evolved at Amul in Gujarat and thereafter replicated all over the country under the Operation Flood Programme. Vipul Chaudhary of Mehsana district's milk cooperative was elected chairman of GCMMF. conducting training on Animal Husbandry & Dairying. Gujarat – which can handle 2.[14] [edit]The Three-tier "Amul Model" This section needs additionalcitations for verification.

Establish feeder-balancing Dairy Plants for processing the surplus milk of the Milk Unions. fodder & fodder seed sales. Arranging for common purchase of raw materials used in manufacture / packaging of milk products. Creating & maintaining a brand for marketing of milk & milk products (brand building). Procurement & Processing as well as Marketing Planning. mineral mixture sales. [edit]State Cooperative Milk Federation (Federation) The main functions of the Federation are as follows:      Marketing of milk & milk products processed / manufactured by Milk Unions. Designing & Providing training in Cooperative Development. Providing support services to the Milk Unions & members like Technical Inputs. [edit]District Cooperative Milk Producers’ Union (Dugdh Sangh) The main functions of the Union are as follows:    Procurement of milk from the Village Dairy Societies of the District Arranging transportation of raw milk from the VDCS to the Milk Union. Establish Chilling Centres & Dairy Plants for processing the milk received from the villages.Thus. Conflict Resolution & keeping the entire structure intact. Decide on the products to be manufactured at various Milk Unions (product-mix) and capacity required for the same.      Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions. Decide on the prices of milk & milk products to be paid to Milk Unions. Selling liquid milk & milk products within the District Process milk into various milk & milk products as per the requirement of State Marketing Federation. Providing input services to the producers like Veterinary Care. cattle-feed sales. Artificial Insemination services.     Conduct long-term Milk Production. the VDCS in an independent entity managed locally by the milk producers and assisted by the District Milk Union. Establish distribution network for marketing of milk & milk products.      Providing management support to the VDCS along with regular supervision of its activities. . Arranging transportation of milk & milk products from the Milk Unions to the market. Arranging Finance for the Milk Unions and providing them technical know-how. Technical & Marketing functions.  Conducting training on Cooperative Development. etc. Decide on the prices of milk to be paid to milk producers as well on the prices of support services provided to members. Animal Husbandry & Dairying for milk producers and conducting specialised skill development & Leadership Development training for VDCS staff & Management Committee members. management support & advisory services.

Vijaya in Andhra Pradesh. One can continue to see the effect of these efforts as India‟s milk production continues to increase and now stands at 90 MMT. [edit]Impact of the "Amul Model" The effects of Operation Flood Programme are more appraised by the World Bank in its recent evaluation report.25 lakh dairy cooperative societies. of milk per day and pay an aggregate amount of more than Rs. having a total membership of around 13 million farmers on the same pattern.e. The three-tier „Amul Model‟ has been instrumental in bringing about the White Revolution in the country. 20 billion over 20 years under Operation Flood Programme in 70s & 80s has contributed in increase of India‟s milk production by 40 Million Metric Tonne (MMT) i. These cooperatives today collect approximately 23 million kgs. an incremental return of Rs. the „Anand Pattern‟ has demonstrated the following benefits:      is has multi-dimensional impacts importance of getting government out of commercial enterprises importance of market failure in agriculture power & problems of participatory organisations importance of policy correct [edit]Achievements of the "Amul Movement" . Due to this movement. Saras in Rajasthan or a Nandini in Karnataka. there are around 176 cooperative dairy Unions formed by 1. these cooperatives have not just been instrumental in economic development of the rural society of India but it also has provided vital ingredient for improving health & nutritional requirement of the Indian society. As per the assessment report of the World Bank on the Impact of Dairy Development in India. Thus. the per capita milk consumption doubled from 111 gms per day in 1973 to 222 gms per day in 2000.Today. from about 20 MMT in pre.125 billion to the milk producers in a year[citation needed]. Milma in Kerala. 400 billion annually have been generated by an investment of Rs. Similarly. 20 billion over a period of 20 years. It has been proved that an investment of Rs.Operation Flood period to more than 60 MMT at the end of Operation flood Programme. who are processing and marketing milk and milk products profitably. These dairy cooperatives have been responsible in uplifting the social & economic status of the women folk in particular as women are basically involved in dairying while the men are busy with their agriculture. This has also provided a definite source of income to the women leading to their economic emancipation. Thus. Gokul in Maharashtra. the country‟s milk production tripled between the years 1971 to 1996. Very few industries of India have such parallels of development encompassing such a large population. This entire process has created more than 190 dairy processing plants spread all over India with large investments by these farmers‟ institutions. This has been the most beneficial project funded by the World Bank anywhere in the World. be it Amul in Gujarat or Verka in Punjab. Despite this fourfold increase in milk production. there has not been drop in the prices of milk during the period and has continued to grow.

The dairy cooperatives have also been instrumental in bridging the social divide of caste. Its bid to enter the Japanese market in 1994 did not succeed. and SAARC neighbours. the Gulf Region. Thailand. Japan and China. Singapore. Cottage Cheese (Paneer). "India's top 20 brands: Amul is No. 1" .      Largest milk handling capacity in Asia Largest cold chain network 48 Sales offices. AMUL is available today in over 40 countries of the world. West Indies.[19] published by Trust Research Advisory. The dairy cooperatives have been able to maintain democratic structure at least at the grass-root level with the management committee of the village level unit elected from among the members in majority of the villages. 5000 wholesale distributors. rediff.6 million) 53 billion  The Govt. Clarified Butter (Ghee) and Indigenous Sweets. but it plans to venture again. AMUL is exporting a wide variety of products which include Whole and Skimmed Milk Powder. race. Amul emerged as the leading Indian brand according to a survey by Synovate to find out Asia's top 1000 Brands. 2.3 million) Winner of APEDA award for eleven consecutive years[15] [edit]The Amul brand GCMMF (AMUL) has the largest distribution network for any FMCG company.1. UHT Milk. Australia.[18] In 2011.760 village societies 15 District Unions 9. more than 5 000 wholesale dealers and more than 700 000 retailers. It has nearly 50 sales offices spread all over the country. [edit]Achievements       of GCMMF 3. and countries in Africa.com. AMUL is also the largest exporter of dairy products in the country.73 million) disbursed in cash daily GCMMF is the largest cooperative business of small producers with an annual turnover of (US$964.[17] In September 2007. Amul became the world's largest vegetarian cheese[16] and the largest pouched-milk brand. Hong Kong and a few South African countries. Amul was named the Most Trusted brand in the Food and Beverages sector in The Brand Trust Report. creed. The major markets are USA. The Philippines. of India has honoured Amul with the “Best of all categories Rajiv Gandhi National Quality Award”. and others such as Mauritius. religion & language at the villages.4 million liters of milk procured per day 150 million (US$2. 7 lakh retail outlets Export to 37 countries worth 150 crore (US$27.1 million milk producer member families 15. by offering open and voluntary membership.

butter. shrikhand. Buttermilk. which competes with Coca Cola's Powerade and PepsiCo'sGatorade. Amul introduced Kool Koko. basundi. cheese. cream. Other Amul brands are Amul Kool. Amul Pro brand and others. Amul cares for its consumers and tries to offer them the best products at best price. a low calorie thirst quenching drink. Amul's Icecreams are made from milk fat and thus are icecreams in real sense of the word. a chocolate milk brand extending its product offering in the milk products segment. Yoghurt. But in recent years in a second wave of ad campaign for Amul products.[20] Amul also offers mithaimate which successfully competes with milkmaid by nestle by offering more fat% at lower price. Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing Award for 2007.[citation needed] [edit]Mascot Since 1967[21] Amul products' mascot has been the very recognisable "Amul baby" or Amul girl (a chubby butter girl usually dressed in polka dotted dress) showing up on hoardings and product wrappers with the equally recognisable tagline Utterly Butterly Delicious Amul. chocolate. In January 2006. Amul PRO is a recently launched brown beverage just like bournvita and horlicks offering whey protein. cartoon artist Kumar Morey and script writer Bharat Dabholkar had been involved with sketching the Amul ads. the latter rejected the trend of using celebrities in . while many brands in India sell frozen desserts made from vegetable fat. she has also been used for other product like ghee and milk. Masti Butter Milk. In 1966.[22] The campaign was widely popular and earned a Guinness world record for the longest running ad campaign in the world. In the 1980s.[edit]Products Amul's product range includes milk powders. The image shows the "Amul baby" in between George Fernandes and Atal Bihari Vajpayee. ready to drink coffee and India's first sports drink Stamina. Kool Cafe. DHA and essential nutrients to kids along with its chocolatty taste. Masti Dahi. Amul hired Sylvester daCunha.The mascot was first used for Amul butter. paneer. In August 2007. [edit]Advertising An Amul butter ad on Pakistan's Kargil Warfiasco. ghee. flavoured milk. Amul launched India's first sports drink Stamina. gulab jamuns. ice cream. relating to day-to-day issues. daCunha designed an ad campaign as series of hoardings with topical ads. then managing director of the advertising agency AS to design a new ad campaign for Amul Butter. milk.

advertisement campaigns. ice-cream. ghee. chocolates. [edit]In popular culture The establishment of Amul is also known as White Revolution. Some of the more controversial Amul ads include one commenting on Naxalite uprising in West Bengal.[23] Despite encountering political pressure on several occasions. Dabholkar credited chairman Verghese Kurien with creating a free atmosphere that fostered the development of the ads. and the one depicting the Amul butter girl wearing a Gandhi cap[22] Amul hired DraftFCB+Ulka for the brands of Amul milk. daCunha's agency has made it a policy of not backing down. The film itself was financed by over five lakh rural farmers in Gujarat who contributed Rs 2 each to the film's budget. these same farmers went in truckloads to watch 'their' film. Girish Karnad. on the Indian Airlines employees strike.. making it a commercial success. . The White Revolution of India inspired the notable Indian film-maker Shyam Benegal to base his film Manthan (1976) on it. [24][25] the film was chosen for the 1977National Film Award for Best Feature Film in Hindi. Upon its release. The film starred Smita Patil. Naseeruddin Shah and Amrish Puri. paneer.