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The Birth of Amul

It all began when milk became a symbol of protest
Founded in 1946 to stop the exploitation by middlemen
Inspired by the freedom movement
The seeds of this unusual saga were sown more than 6 years back in !nand" a small town
in the state of #u$arat in western India% The exploitative trade practices followed by the local trade
cartel triggered off the cooperative movement% !ngered by unfair and manipulative practices
followed by the trade" the farmers of the district approached the great Indian patriot &ardar
'allabhbhai (atel for a solution%
)e advised them to get rid of middlemen and form their own co*operative" which would
have procurement" processing and marketing under their control%
In 1946" the farmers of this area went on a milk strike refusing to be cowed down by the
cartel% +nder the inspiration of &ardar (atel" and the guidance of leaders like ,orar$i -esai and
Tribhuvandas (atel" they formed their own cooperative in 1946%
This co*operative" the .aira -istrict /o*operative ,ilk (roducers +nion 0td% began with
$ust two village dairy co*operative societies and 142 litres of milk and is today better known as
!mul -airy% !mul grew from strength to strength thanks to the inspired leadership of
Tribhuvandas (atel" the founder /hairman and the committed professionalism of -r 'erghese
.urien"who was entrusted the task of running the dairy from 193%
The then (rime ,inister of India" 0al 4ahadur &hastri decided that the same approach
should become the basis of a 5ational -airy -evelopment policy% )e understood that the success
of !mul could be attributed to four important factors% The farmers owned the dairy" their elected
representatives managed the village societies and the district union"6 they employed
professionals to operate the dairy and manage its business% ,ost importantly" the co*operatives
were sensitive to the needs of farmers and responsive to their demands%
!t his instance in 196 the 5ational -airy -evelopment 4oard was set up with the basic
ob$ective of replicating the !mul model% -r% .urien was chosen to head the institution as its
/hairman and asked to replicate this model throughout the country%
Amul Milk
!mul ,ilk is the most hygenic li7uid milk available in the market%
It is pasteurised in state*of*the*art processing plants and pouch*packed to make it
conveniently available to consumers%
Bread Spreads
!mul is synonymous with 4utter in India%
&everal #eneration of Indian consumers have grown up with the taste of !mul
4utter for the six decades%
+tterly 4utterly -elicious taste of !mul 4utter is must on breakfast table of
almost every Indian )ousehold%
+tterly /ute !mul 4uter #irl has been a part of Indian /onsumers since 193%
8holesome cheese%
#ood source of /alcium and milk (roteins%
UHT Milk
o 5o need to boil
o /ut open and drink
o 5o need to refrigerate till open
o &tays fresh for 1 days after opening if kept in refrigerator
o 5o powder or water added
Ie Cream
,ade from Fresh ,ilk 9:eal ,ilk" :eal Ice cream;< 5o added vegetable oil" hence
no Fro=en -essert%
-ahi or /urd plays a key role in the Indian diet and in preparation of delicious dishes
like -ahi 8ada" -ahi 4atata(uri" -ahi :ice" -ahi Idli"
,ost convenient form of paneer :ich in (roteins%
)aving high fat and low moisture compared to loose paneer available in market%


I&> 9333*)!//( certified plants< !ll !mul Ice /ream plants are I&> 9333*
)!//( certified%

!mul is in the process of getting I&> 11333 9Improved version; certification for
all its plants%

5o% 1 in ?uality < !mul is ranked 5o%1 ice cream in 7uality by @I5&I#)TA 9,ay*
Bune" 1331;" a bimonthly consumer maga=ine published by /onsumer :esearch and
Cducation &ociety 9/C:&; based at !hmedabad%

4est 'alue for ,oney brand< 'oluntary >rgani=ation in Interest of /onsumer

Cducation 9'>I/C;" a consumer organi=ation based in -elhi said in an article
published in -eccan )erald" 4angalore edition dated 16%3D%34 that !mul provides the
best 'alue For ,oney as far as price is concerned%

They also mentioned the difference between Ice /ream and Fro=en -essert in their
article as !mul is using milk fat in ice cream and some competitors are using
vegetable fat in their ice creams%
!mul< !sia s largest dairy co*operative was created way back in1946 to make the
milk producer self*reliant and conduct milk* business with pride% !mul has always been thetrend
setter in bringing and adapting the most modern technology to door steps to ruralfarmers%
!mul created history in following areas<
a; First self motivated and autonomous farmers organi=ation comprising of more than
333333 marginal milk producers of .aira -istrict%
b; /reated -airy co*operatives at village level functioning with milk collection centresowned
by them%
c; /omputeri=ed milk collection system with electronic scale and computeri=ed
d; The first and only organi=ation in world to get I&> 9333 standard for its farmers co*
e; First to produce milk from powder from surplus milk%!mul is the live example of how co*
operation amongst the poor marginal farmers canprovide means for the socio*economic
development of the under privileged marginalfarmers%
Amul i! a$road%
!mul is going places% 0iterally% !fter having established its presence in /hina" ,auritius
and )ong .ong" #u$arat /ooperative ,ilk ,arketing Federation 9#/,,F;" India s largest
milk cooperative" is waiting to flood the Bapanese market%ThenE #/,,F is also looking at &ri
0anka as one of its next export destinations% !mulproducts are already available on shelves
across several countries" including the +&" /hina"!ustralia" 8est !sian countries and
!frica%#/,,F recorded a turnover of :s 1"911 crore last fiscal% Its products include
pouch milk"ultra heat treated 9+)T; milk" ice*cream" butter" cheese and buttermilk%
Amuls competitive advantage
!mul has /ompetitive sustainable advantage 9/&!; over its competitors% !mulFs
/&! lies in its procurement part "the ability to collect 442"333 litres of milk every
day from 1%11 million farmers "convert them into goods worth :s 6 crore and
distribute them to "33"333 retailers across country "is not easy% 5o other dairy in
India has such a sustainable procurement network%
,anaging the large scale supply chain of !mul which begins from milk producer
and ends with supply to customer from retailer is very critical $ob% It re7uires lot of
dedication and hard work from all members of the corporation and also
distributors and retailers across country
It is not that !mul had a successful campaign" many of its ads backfired% >ne ad
meant to target ,arathi segment during #anpati festival had to be removed under
political pressure% In another incident on advertisement in which !mul girl was
wearing #andhi cap had to be again removed% In one another incident !mul had
aired an ad portraying )ussain as @)eroine addictionA" for this !mul was taken to
,ost of !mulFs communication is based on latest happenings in the country% That
is why its ads are termed different from what is that of its nearest rival" ,other
dairy% ,ost of ,other dairy ads are directly targeted to children where as !mulFs
ad are on current affairs" in which adults are also involved%
The key to retaining their competitive advantage lies in keeping focused on the
basic business principles<
4e /ustomer*-riven
!dapt 7uickly to the changing environment%
!nticipate change and act today to meet tomorrowGs challenges%
The Federation has invested substantially over the last few years in improving
the 7uality of its products and services" keeping in mind the emerging
challenges of globali=ation% In recognition of its achievements in ?uality
,anagement Initiatives%
Their core business is marketing branded food products to household
consumers% Their success has been grounded in two strengths <*
-istribution network" serving more than five lac retail outlets%