Amul : Story behind White Revolution (A Case Study)

Introduction

Amul is an Indian dairy cooperative society based at Anand in the territory of Gujarat. The word “Amul” is derived from Sanskrit word ‘Amulya’ which means ‘priceless’ or precious’. Foounded in 1946, Amul is a cooperative brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is together possessed by 3.6 million milk producers in Gujarat.

Amul started India's White Revolution, which made India the world's biggest maker of milk and milk products. Amul was initiated by Tribhuvandas Patel under the direction of first Deputy Prime Minister of India, Sardar Vallabhbhai Patel. Therefore, Kaira District Milk Union Limited was conceived in 1946. Tribhuvandas headed the organization until his passing in 70s. He had procured Dr. Verghese Kurien in 1949 and persuaded Dr. Kurien to remain and help with the mission.

History of Amul & White Revolution

Amul cooperative was registered on 19 December 1946 as a reaction to the exploitation of local milk producers, as milk often went sour in summer, by dealers & agents of the main dairy of that time, the Polson dairy. The prices of milk were randomly determined. The government had given monopoly rights to Polson to collect milk from Kaira and supply it to Mumbai city.

Agitated due to partial treatement, the farmers of Kaira approached Sardar Vallabhbhai Patel under the administration of their leader Tribhuvandas K. Patel. He advised them to frame an organization i.e. Kaira District Co-usable Milk Producers' Union and supply milk directly to the Bombay Milk Scheme rather than Polson. He sent Morarji Desai to sort out the farmers.

In 1946, the milk farmers went on a strike which prompted the setting up of the helpful to gather and process milk. Milk collection was decentralized, as most makers were minor farmers who could provide 1–2 liters of milk for each day. Cooperatives were framed for every town, too. By June 1948, the KDCMPUL had begun pasteurizing milk for the 'Bombay Milk Scheme'. Under thelradership of Tribhuvandas Patel, in 1973, Amul celebrated its 25th Anniversary with Morarji Desai, Maniben Patel and Verghese Kurien.

Amul's First Milk Plant in Anand

The cooperative was additionally created and headed by Dr. Verghese Kurien with H.M. Dalaya. With Dalaya's innovation of making skim milk powder from buffalo milk for the first time in the world and then making it on a commercial scale with Kurien's help led to the first modern dairy of the cooperative at Anand. It competed against many established players in the market.

Within a short period, the success at the cooperative's dairy spread to Anand's neighbourhood in Gujarat. Thus, five unions in other districts like Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up, following the approach sometimes described as the Anand pattern.

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

Since then, the GCMMF is the largest food products marketing organisation of India. It is leading 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 3.1 million village milk products with millions of consumers in India.

On September 30, 2018, Prime Minister Narendra Modi inaugurated Amul's chocolate plant in Mogar, Anand near their headquarters.

Business Model Of Amul

Amul pursued a one of a kind plan of action, which planned for giving 'esteem for cash' items to its purchasers, while securing the premiums of the milk-creating farmers who were its providers just as its proprietors. As milk was a transient thing, the rancher endured a misfortune on the off chance that it was not sold before the part of the bargain.

The business model is categorized as below-

Amul Model

Structure of Organization

The cooperative model used by Amul came to be known as the "Anand design" coperative framework. It was a three-level structure that involved town social orders, region level dairy associations and a state level organization. Every level was financially free of the others and involved agents selected from the level below it.

Situated in the town of Anand, the Kaira District Milk Cooperative Union (Amul) extended exponentially. It held hands with other milk cooperatives in Gujarat which now covers 2.12 million farmers, 10,411 town’s milk.  It focuses on fourteen area level plants (associations) under the general supervision of GCMMF.

Since the beginning, there was assumption that this activity would directly profit and change poor farmers and add to the improvement of society. Markets, at that point and even today, are crude and poor in foundation. Amul and GCMMF recognized that improvement and development couldn't be left to market powers and that proactive intercession was required.

Two key necessities were distinguished. The first that continued development for the long haul would rely upon coordinating free market activity. It would require overwhelming interest in the synchronous advancement of providers and customers. Second, that powerful administration of the system and business feasibility would require proficient administrators and technocrats.

The Umbrella Brand

The system pursues an umbrella marking technique. Amul is the basic brand for most item classifications created by different associations: fluid milk, milk powders, margarine, ghee, cheddar, cocoa items, desserts, frozen yogurt and consolidated milk. Amul's sub-brands incorporate variations, for example, Amulspray, Amulspree, Amulya and Nutramul.

The palatable oil items are assembled around Dhara and Lokdhara, mineral water is sold under the Jal Dhara brand while natural product beverages bear the Safal name. By demanding an umbrella brand, GCMMF skillfully maintained a strategic distance from between association clashes as well as made an open door for the patrons to coordinate in creating items.


Also Read: Mukesh Ambani Is All Set To Revolutionize The E-Commerce Industry with JioMart(A Case Study)


Development of Products-

Amul's item improvement was driven both by the soul of the cooperative framework and productivity. Being a farmers' cooperative, Amul was focused on purchasing all the milk offered by the r. The transitory idea of milk made it basic for Amul to process the surplus milk and enter new item classifications as generation expanded.

Margarine and Butter -

Propelled in 1955, margarine was one of the main milk items offered by Amul. It was additionally the first run through Amul effectively tested the authority of a built up brand. Amul's most punctual rival, Polson had been  imposing business model milk provider to the Bombay Milk Scheme. Amul uprooted Polson to rise as the undisputed pioneer in the margarine advertise.

Chesse and cheddar-

GCMMF propelled handled cheddar in 1959 pursued by cheddar powder in the mid 1970s. During the 1980s the notoriety of cheddar expanded.

Milk and UHT Milk-

Amul was the market chief in the Gujarat entire milk showcase with a 90% piece of the pie in 2002. Aside from providing milk to parts of Maharashtra and Rajasthan.

Key Factors to Amul's Success

The Amul Girl (The Amul Advertising Campaign)

In 1966, Amul hired the managing director of the advertising agency, Sylvester da Cunha to design an ad campaign for Amul Butter. DaCunha designed a campaign as series of hoardings with topical ads, relating to day-to-day issues. It was popular and earned a Guinness World Record for the longest running ad campaign in the world.

In the 1980s, cartoon artist Kumar Morey and script writer Bharat Dabholkar were roped in for sketching the Amul ads. But Dabholka rejected the trend of using celebrities in advertisement campaigns. Dabholkar credited chairman Verghese Kurien with creating a free atmosphere that ecouraged the development of the ads.

The Amul girl is the advertising mascot used by the company to promote the brand. The brand has been cleverly using the cartoon figure in its longest running ad campaign. Amul Girl is used to insert an element of humour into its print ads.

The content is liked by the people and  has resulted in better customer engagement. This increases the brand recall value for Amul. Hence, the Amul girl advertising campaign is often described as one of the best Indian advertising concepts.

Innovation

Amul has constantly been innovating let it be launching new products, creative marketing campaigns or challenging traditional societal trends to come up with better ones.As mentioned, Amul in the 1960’s became the first brand in the world to make skimmed milk powder from buffalo milk.

Also with its three-tiered cooperative structure, Amul changed from traditional operations to a more cost-efficient and effective structure. For its continuous innovation, Amul won the “CNN-IBN Innovating for Better Tomorrow Award” and “World Dairy Innovation Award” in the year 2014.

Efficient Supply Chain

Amul follows a three-tier cooperative structure. It consists of a dairy cooperative society at the village level that is affiliated with milk unions at the district level which in turn is federated to a milk federation at the state level. Milk is collected at the village dairy society, obtained and processed at the district milk union and marketed at the state milk federation.

The greatness of this model lies in the fact that Amul was the first company to follow this model.  It was reciprocated all over the country under Operation Flood in the 1970’s. The model ensures that there’s efficiency and swiftness in operations. With this, the Amul model has helped India become the largest milk producer in the world.

Coordinating Nature

Amul follows the Branded House Architecture way, wherein whatever they promote. They promote it under one common brand name – Amul. The prime focus is on promoting the parent brand rather than individual products which helps them gain more brand visibility and results in lesser marketing and advertising costs.

Given the enormous number of associations and substances in the inventory network and decentralized duty regarding different exercises, successful coordination is basic for effectiveness and cost control. GCMMF has understood this procedure well and together accomplish the ideal level of control.

The organization handles the scattering of finished results and coordination with retailers and the vendors. The associations arrange the stock side exercises. These incorporate observing milk collection contractual workers, the stock of creature feed and different supplies, arrangement of veterinary administrations, and instructive exercises.


Also Read: Innovation Culture in India is Evolving Manufacturing Market


Business Revenue & Growth of Amul

The Gujarat Cooperative Milk Marketing Federation Ltd., which markets Amul milk and dairy items, revealed a 13% expansion in turnover to Rs 33,150 crore in the year finished March 31. The Amul gathering's turnover surpassed Rs 45,000 crore, which is likewise 13% higher than a year ago.

The Amul Federation has accomplished a compound yearly development pace of over 17.5% for as long as nine years because of higher milk obtainment, extension in business sectors, dispatch of new items.

Author image

About Varad Kitey

  • Pune