AMUL:-

AMUL is an Indian dairy cooperative society, based at Anand in the Indian state of Gujarat.
Formed in 1946, it is a cooperative brand managed by a cooperative body, the Gujarat Co-
operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 36 lakh
(3.6 million) milk producers in Gujarat, and the apex body of 13 District Milk Unions, spread
across 13,000 villages of Gujarat. Amul spurred India's White Revolution, which made the
country the world's largest producer of milk and milk products.

Amul cooperative was registered on 19 December 1946 as a response to the exploitation of

marginal milk producers by traders and agents in small cities. The prices of milk were arbitrarily
determined at the time. The government had given Polson an effective monopoly in milk
collection from Kaira and its subsequent supply to Mumbai.

Angered by the unfair trade practices, the farmers of Kaira approached Sardar Vallabhbhai Patel
under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to form a
cooperative (Kaira District Co-operative Milk Producers' Union) and supply milk directly to the
Bombay Milk Scheme instead of Polson (who did the same but gave them low prices). He sent
Morarji Desai to organise the farmers. In 1946, the milk farmers of the area went on a strike
which led to the setting up of the cooperative to collect and process milk. Milk collection was
decentralized, as most producers were marginal farmers who could deliver, at most, 1–2 liters of
milk per day. Cooperatives were formed for each village, too. By June 1948, the KDCMPUL
had started pasteurising milk for the Bombay Milk Scheme. Then-Prime Minister Lal Bahadur
Shastri visited Anand to inaugurate Amul's cattle feed factory. On October 31, 1964 and spent a
night in village and spoke to farmers about their cooperative and after returning to Delhi he set in
motion the creation of an organisation, the National Dairy Development Board (NDDB), to
replicate the Kaira cooperative in other parts of India. Under the selfless leadership of
Tribhuvandas Patel, in 1973, Amul celebrated its 25th Anniversary with Morarji Desai, Maniben
Patel and Verghese Kurien.

The cooperative was further developed and managed by Dr. Verghese Kurien with H. M. Dalaya.
Dalaya's innovation of making skim milk powder from buffalo milk was a technological
breakthrough that revolutionized India's organized dairy industry.

With Kurien's help, the process was expanded on a commercial scale which led to the first
modern dairy of the cooperative at Anand. This cooperative would go on to compete against
established players in the market.The Amul plant at Anand, Gujara
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to
Anand's neighborhood in Gujarat. Within a short span, five unions in other districts – Mehsana,
Banaskantha, Baroda, Sabarkantha and Surat – were set up, following the approach sometimes
described as the Anand pattern.

In 1970, it spearheaded the White Revolution of India. To combine forces and expand the market
while saving on advertising and avoid competing against each other, the Gujarat Co-operative
Milk Marketing Federation Ltd., an apex marketing body of these district cooperatives, was set
up in 1973. The Kaira Union, which had the brand name Amul with it since 1955, transferred it
to GCMMF.

In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.

Technological developments at Amul have subsequently spread to other parts of India.

The GCMMF is the largest food products marketing organisation in India. It is the apex
organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing organisation for
products under the brand name of Amul and Sagar. Over the last five and a half decades, dairy
cooperatives in Gujarat have created an economic network that links more than 31 lakh (3.1
million) village milk products with crores of consumers in India. In 2007, Gujarat Cooperative
Milk Marketing Federation Ltd., crossed US$ one Billion in its sales turnover and entered the
elite club of food companies having this distinction from India. In one more major achievement,
the dairy cooperatives of Gujarat under the GCMMF fold crossed milk procurement of 100 lakh
kgs. per day mark on 27 December 2007, which is the highest ever milk procurement achieved
by any dairy network in India, be it private or cooperative and the entire quantity of milk
received was accepted without any milk holidays and was processed successfully into milk and
other milk products.

On September 30, 2018, Prime Minister Narendra Modi inaugurated Amul's chocolate plant in
Mogar, Anand near their headquarters. The new plant has been built with an increased capacity
of 1,000 tonnes per month against the earlier 250 tonnes a month capacity. GCMMF has invested
around ₹300 crores for this project. It is a fully automated production factory with minimal
human intervention.In August 2019, Amul became the first Indian dairy company to enter
Rabobank's Global Top 20 Dairy Companies list.
AMUL VISION :-

Amul Scholarships: To encourage outstanding children of farmers in pursuing higher

studies Amul introduced scholarship schemes in 1992. The children are given scholarships for
pursing Diploma, Graduation, Post-Graduation and Doctorate. Every year the outstanding
children are identified from the villages and scholarships are provided to fulfill their dream of
achieving academic excellence. This effort has motivated greatly children to excel in their
studies and spread education in rural areas.

Amul Scholar Felicitation Programme: Annually Amul felicitate outstanding

children of employees who have secured highest marks in 10th, 12th standards and Gold
Medalist in graduation. Amul Scholars’ Felicitation Programme was initiated in 2004 and has
facilitated many outstanding students of Amul family.

Amul Vidya Shree & Vidya Bhushan: Amul’s vision is to see an educated, talented
and strong youth in a developed India of the future and thereby contribute towards nation
building. We at Amul believe that the sound education of its youth is the foundation of every
state. Hence it is the most basic constituent for a developing nation like ours. Towards this
philosophy, Amul Vidyashree & Vidyabhushan Awards have been instituted to recognize the
brilliance of the students across India as well as the quality of education & guidance imparted by
the schools they study in. The inception of these awards dates back to 2004-05.

It is India’s first of its kind award that recognizes and rewards brilliant minds of India. By
winning this award, not only the student gets recognized, but it also help the schools to enhance
their image as an academy that imparts quality education, worth emulating by others.
AMUL MISSION :-
Their Mission is to manufacture world class products of outstanding qualities, providing related
services and solutions to our client while utilizing latest technologies, highest business standard,
work ethics Corporate Governance so we can make every customer SMILE.’

“We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavor to satisfy the
tasteand nutritional requirements of the customers of the world, through excellence in marketing
by our committed team. Through co-operative networking, we are committed to offering quality
products that provide best value for money.”
ORGANISATIONAL STRUCTURE :-
SWOT ANALYSIS :-

STRENGTHS:

Very high market share in ice cream – Amul has the top market share in ice cream segment
which further helps it push other products into the market.

Excellent brand equity – amul is a beloved brand over the years and the contribution of amul
girl and her outdoor ads should specifically be mentioned here.

Excellent quality management – even though amul has such a wide and large distribution
network, hardly any quality complaints come for amul.

Strong distribution network – This is one company which is strong in urban as well as rural
distribution. You will find amul present even in small towns and villages.

Good product portfolio – Amul had a deep product portfolio when compared to any fmcg
company. It has many different variety of milk milk based food items like cheese, butter, milk,
buttermilk, lassi and many others. In ice creams too, amul has a large variety of flavours

Strong Supply chain – Vendors love Amul and amul is known for the white revolution in India.

Rural presence – Strong rural presence of Amul is its plus point. It is mentioned here separately
because this rural presence gives amul a strong competitive advantage.

WEAKNESSES:

Cost of Operations – Amul’s operation is huge. And so is the cost. Plus the sector is such that
maintaining margins becomes difficult day by day. Thus, to face international players, Amul
needs to maintain the operations in the same manner it is carrying out today. It is not a weakness
but rather a constant challenge for Amul. In fact, during summers, the brand faces severe
shortage of supply.

Chocolates – Amuls expansion to chocolate has failed and hardly any product of Amul
chocolates is selling in the market. Amul needs further products to expand its product line and
increase bottomline.
OPPORTUNITIES:

Export – Amul can export its product to other countries thereby increasing its turnover and
margins exponentially.

Concentrate more on chocolate market – Amul has a no advertisement policy which creates a
problem for its foray into additional products. Amul should in fact have separate SBU’s and
concentrate more on increasing its product line through chocolates or other such products.

THREATS:

Increasing competition in Ice cream segment – Many players, local and international, are
entering the ice cream market thereby taking away share of wallet from Amul. Kwality walls,
Naturals, London dairy, Havmor, Arun ice cream, Vadilal, Ramani, are some of the few brands
who are directly in competition with Amul.
ACHIEVEMENTS :-

AMUL : Asia’s largest dairy co-operative was created way back in 1946 to make milk producer
self-reliant and conduct milk-business with pride. Amul has always been the trend setter in
bringing and adapting the most modern technology to door steps to rural farmers.

Amul created history in following areas :

a) First self motivated and autonomous farmers organization comprising of more than
5000000 marginal milk producers of Kiara District.
b) Created Dairy co-operative at village level functioning with milk collection centers
owned by them .
c) Computerized milk collection system with electronic scale and computerized accounting
system.
d) The first and only organization in world to get ISO 9000 standard for it’s farmer’s co-
operatives.
e) First to produce milk from powder from surplus milk.

Amul is the live example of how co-operation amongst the poor marginal farmers can provide
means for the socio-economic development of the under privileged marginal farmers.