Professional Documents
Culture Documents
Amul
Amul
Amul
Type Cooperative
Founded 1946
Headquarters Anand, India
Chairman, Gujarat Co-operative Milk Marketing
Key people
Federation Ltd. (GCMMF)
Industry Dairy
Products Listing of product is given below
Revenue Template:Revenue$1 billion USD (in 2006-07)
Employees 2.41 million milk producers
Website www.amul.com
Amul products have been in use in millions of homes since
1946. Amul Butter, Amul Milk Powder, Amul Ghee,
Amulspray, Amul Cheese, Amul Chocolates, Amul
Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya
have made Amul a leading food brand in India. (Turnover:
Rs. 52.55 billion in 2007-08). Today Amul is a symbol of
many things. Of high-quality products sold at reasonable
prices. Of the genesis of a vast co-operative network. Of the
triumph of indigenous technology. Of the marketing savvy of
a farmers' organisation. And of a proven model for dairy
development.
GCMMF LTD
GCMMF: An Overview
History
Amul: The origin
The mighty Ganges at it's origin is but a tiny stream in the Gangotri
ranges of the Himalayas. Similar is the story of Amul which inspired
'Operation Flood' and heralded the 'White Revolution' in India. It
began with two village cooperatives and 250 liters of milk per day,
nothing but a trickle compared to the flood it has become today.
Today Amul collects, processes and distributes over a million liters of
milk and milk products per day, during the peak, on behalf of more
than a thousand village cooperatives owned by half a million farmer
members. Further, as Ganga-ma carries the aspirations of
generations for moksha, Amul too has become a symbol of the
aspirations of millions of farmers.Creating a pattern of liberation and
self-reliance for every farmer to follow.
Organisation structure
It all started in December 1946 with a group of farmers keen to free
themselves from intermediaries, gain access to markets and thereby
ensure maximum returns for their efforts. Based in the village of
Anand, the Kaira District Milk Cooperative Union (better known as
Amul) expanded exponentially. It joined hands with other milk
cooperatives, and the Gujarat network now covers 2.12 million
farmers, 10,411 village level milk collection centers and fourteen
district level plants (unions) under the overall supervision of GCMMF.
There are similar federations in other states. Right from the
beginning, there was recognition that this initiative would directly
benefit and transform small farmers and contribute to the
development of society. Markets, then and even today, are primitive
and poor in infrastructure. Amul and GCMMF acknowledged that
development and growth could not be left to market forces and that
proactive intervention was required. Two key requirements were
identified.
The first, that sustained growth for the long term would depend on
matching supply and demand. It would need heavy investment in the
simultaneous development of suppliers and consumers. Second, that
effective management of the network and commercial viability would
require professional managers and technocrats. To implement their
vision while retaining their focus on farmers, a hierarchical network of
cooperatives was developed, which today forms the robust supply
chain behind GCMMF's endeavors. The vast and complex supply
chain stretches from small suppliers to large fragmented markets.
Management of this network is made more complex by the fact that
GCMMF is directly responsible only for a small part of the chain, with
a number of third party players (distributors, retailers and logistics
support providers) playing large roles.Managing this supply chain
efficiently is critical as GCMMF's competitive position is driven by low
consumer prices supported by a low cost system.
Developing demand
At the time Amul was formed, consumers had limited purchasing
power, and modest consumption levels of milk and other dairy
products. Thus Amul adopted a low-cost price strategy to make its
products affordable and attractive to consumers by guaranteeing
them value for money.
Umbrella brand
The network follows an umbrella branding strategy. Amul is the
common brand for most product categories produced by various
unions: liquid milk, milk powders, butter, ghee, cheese, cocoa
products, sweets, ice-cream and condensed milk.Amul's sub-brands
include variants such as Amulspray, Amulspree, Amulya and
Nutramul. The edible oil products are grouped around Dhara and
Lokdhara, mineral water is sold under the Jal Dhara brand while fruit
drinks bear the Safal name.
By insisting on an umbrella brand, GCMMF not only skillfully avoided
inter-union conflicts but also created an opportunity for the union
members to cooperate in developing products.
Coordination
From the beginning, it was recognised that the unions' core activity
lay in milk processing and the production of dairy products.
Accordingly, marketing efforts (including brand development) were
assumed by GCMMF. All other activities were entrusted to third
parties. These include logistics of milk collection, distribution of dairy
products, sale of products through dealers and retail stores, provision
of animal feed, and veterinary services.
It is worth noting that a number of these third parties are not in the
organized sector, and many are not professionally managed with little
regard for quality and service.
This is a particularly critical issue in the logistics and transport of a
perishable commodity where there are already weaknesses in the
basic Infrastructure.
For example, every Friday, without fail, between 10.00 a.m. and 11.00
a.m., all employees of GCMMF meet at the closest office, be it a
department or a branch or a depot to discuss their various quality
concerns.
Each meeting has its pre-set format in terms of Purpose, Agenda and
Limit (PAL) with a process check at the end to record how the
meeting was conducted. Similar processes are in place at the village
societies, the unions and even at the wholesaler and C&F agent
levels as well.
Examples of benefits from recent initiatives include reduction in
transportation time from the depots to the wholesale dealers,
improvement in ROI of wholesale dealers, implementation of Zero
Stock Out through improved availability of products at depots and
also the implementation of Just-in-Time in finance to reduce the float.
Kaizens at the unions have helped improve the quality of milk in
terms of acidity and sour milk. (Undertaken by multi-disciplined
teams, Kaizens are highly focussed projects, reliant on a structured
approach based on data gathering and analysis.) For example, Sabar
Union's records show a reduction from 2.0% to 0.5% in the amount of
sour milk/curd received at the union.
The most impressive aspect of this large-scale roll out is that
improvement processes are turning the village societies into
individual improvement centers.
Breadspreads:
Amul Butter
Amul Lite Low Fat Breadspread
Amul Cooking Butter
Cheese Range:
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese
Amul Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese)
Pure Ghee:
Amul Pure Ghee
Sagar Pure Ghee
Amul Cow Ghee
Infant Milk Range:
Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 ( 6 months above)
Amulspray Infant Milk Food
Milk Powders:
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener
Fresh Milk:
Amul Taaza Toned Milk 3% fat
Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardised Milk 4.5% fat
Amul Slim & Trim Double Toned Milk 1.5% fat
Amul Saathi Skimmed Milk 0% fat
Amul Cow Milk
Curd Products:
Yogi Sweetened Flavoured Dahi (Dessert)
Amul Masti Dahi (fresh curd)
Amul Masti Spiced Butter Milk
Amul Lassee
Amul Icecreams:
Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)
Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit
Bonanza, Roasted Almond)
Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir,
Fresh Strawberry, Black Currant, Santra Mantra, Fresh
Pineapple)
Sundae Range (Mango, Black Currant, Sundae Magic, Double
Sundae)
Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies,
Tricone, Chococrunch, Megabite, Cassatta)
Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips,
Cake Magic)
Chocolate & Confectionery:
Amul Milk Chocolate
Amul Fruit & Nut Chocolate
Brown Beverage:
Nutramul Malted Milk Food
Milk Drink:
Amul Kool Flavoured Milk (Mango, Strawberry, Saffron,
Cardamom, Rose, Chocolate)
Amul Kool Cafe
Health Beverage:
Amul Shakti White Milk Food
Current Scenario
Federation’s Annual Report and the Audited Accounts for the year
2007-2008.
MILK PROCUREMENT
SALES
RETAILING
The strategic thrust placed on opening Amul Parlors since 2002 has
now started yielding the desired results. We had anticipated the
paradigm shift in macro economic scenario and the burgeoning
threat of organized retailers. Amul Parlors will enable us to counter
the potential threat from competitors. They will also increase the
visibility of the Amul brand in the retail market. Our own outlets
enable us to interface directly with consumers and provide an ideal
platform to showcase our entire range of products. Through a
concerted team effort, we have managed to create 2300 Amul
Parlors in 2007-08, from which a sales turnover of Rs.107 crores
was generated. Our outlets have not only helped brand Amul to
become ubiquitous but also have managed to provide a very
rewarding employment opportunity to hundreds of entrepreneurs
across India. During the new financial year, we have taken a goal
of setting up 10,000 outlets by March 2009. To achieve this
challenging goal, we have identified certain potential locations
such as Railways, Airports, Universities and Shopping Malls.
EXPORT
DISTRIBUTION NETWORK
During the last eight years, our Member Unions are implementing
Internal Consultant Development Programme for developing self
leadership among member producers and thereby enabling them to
manage their dairy business efficiently, leading to their overall
development. During the year, Member Unions conducted workshops
on Vision Mission Strategy for primary milk producer members and
Village Dairy Cooperatives. Facilitated by specially trained
consultants, 894 Village Dairy Cooperative Societies have conducted
their Vision Mission Strategy Workshops, prepared their Mission
Statements and Business Plans for the next five years. Till today total
5,322 village dairy societies have prepared their five year Business
plans. The programme has prompted milk producers to initiate
activities at villages such as Clean Milk Production, Water
Management, Planned Animal Breeding, Animal Feed management,
Improved Member Services Management, Information Technology,
Integration and Networking, which has very far-reaching and long-
term effects on the milk business.
As a part of the Breeding Services Improvement Programme, during
the year Member Unions have continued implementation of the
module of Improvement in Artificial Insemination Services and
imparted training to 226 Core groups at the village level. In order to
increase an awareness about the dairy industry scenario and impart
leadership skills to the Chairmen and Secretaries of the Village Dairy
Cooperatives, Member Unions in collaboration with Federation, are
conducting Chairmen and Secretaries’ Orientation Programme at
Mother Dairy, Gandhinagar. During the year 924 Village Dairy
Cooperative Societies have been covered under this programme
involving 1,796 Chairmen and Secretaries of the Village Dairy
Cooperatives.
During the year, our Member Unions continued to encourage
increased participation of women milk producers in the Dairy
Cooperative Societies. To develop their skills and enhance leadership
qualities, Member Unions organized Self Managing Leadership
Programme at Prajapita Brahmakumaris, Mount Abu for 1,100
women resource persons along with Chairmen and Secretaries of
250 village dairy societies.
In order to strengthen the knowledge and skill base of young girls and
women of the villages about milk production management and to
motivate them to implement scientific milch animal breeding, feeding
and management methods for their animals, the Federation, with
technical collaboration and resources of the Anand Agriculture
University, has initiated an animal husbandry programme for women
resource persons of the Member Unions. During the year, 464
women resource persons have been trained under this programme.
As envisaged last year, our Member Unions have successfully
initiated Fertility Improvement Programme in their milkshed area, to
improve fertility of milch animals. During the year Member Unions
have implemented this programme in 892 villages.
With a mission of planting one tree per member, our Member Unions
celebrated the 60th year of Independence on 15th August, 2007 in a
unique way. Our 18 lakh members have planted one sapling each
across 19 districts of Gujarat and demonstrated their commitment
towards preserving and contributing to the improvement of the
environment.
News Articles:
AMUL is a three tier co-operative organization. The first tier is the co-
operative society at the village, of which; milk producers are voluntary
members, managing the co-operative through a democratically
elected 9-member managing committee, and doing business by
purchasing milk from members and selling it to the district level co-
operative. There are more than 11,000 co-operatives in villages of
Gujarat.
The second tier is the district co-operative that processes milk into
milk products, markets locally and sells surplus to the state co-
operative for national and international marketing. There are 12
district co-operatives each being managed by a 15-member board
elected by the college comprising the nominated representatives or
chairmen of the village co-operatives.
Third tier is the state level co-operative - the Gujarat Co-operative
Milk Marketing Federation (GCMMF) responsible for national and
international marketing of milk and milk products produced and sold
to it. The GCMMF is managed by the board democratically elected by
and from amongst the chairmen of the district co-operatives.
The entire three-tier structure with the GCMMF at its apex, is a
unique institution because it encompasses the entire chain from
production of raw material to reaching the consumer with the end
product. Every function involves human intervention: 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 distribution network and 600,000
salesmen in retail network. Accumulation of human capital is sine qua
non for the development and growth of any enterprise or economy.
The GCMMF is sensitive towards CSR. It believes that technology
and capital are replicable inputs but not the human capital.
WWW. GOOGLE.COM.
WWW.AMUL.COM.
WWW.WIKIPEDIA.COM.
BOOKS REFERED:
PLACES VISITED:
ANAND (GUJARAT).
AMUL KHAIRA UNION DISTRICT.