What is Amul all about?

The Business Model

BUSINESS needs ideas, not merely money. Ventures run on just money, but starved of
ideas, would eventually fall prey to competition and perish. And, if ideas are available in
abundance, business can overcome other handicaps, including its relative weaker money
power, compared to that of its rivals. The success story of the Gujrat Co-operative Milk
Marketing Federation (GCMMF) proves this point.
Amul follows a unique business model, which aims at providing 'value for money'
products to its consumers, while protecting the interests of the milk-producing farmers
who are its suppliers as well as its owners. Despite being a farmers' co-operative, Amul
has given multinationals a run for their money.

The Amul Pattern has established itself as a uniquely appropriate model for rural
development. Amul has spurred the White Revolution of India, which has made
India the largest producer of milk and milk products in the world. It is also the
world's biggest vegetarian cheese brand.

Amuls is Indias largest diary producing company with over half the market
leading other national companies such as Mother Diary and multinational food
product companies such as Nestle India and Hindustan Lever Ltd.

Amul demonstrates how careful and consistent product stewardship combined with
a deep and intimate understanding of the market leads to consistent growth and
success. The company can process nearly 10 million liters of milk each day.

The company started as the Gujarat Cooperative Milk Federation in 1946,collecting

just 250 litres of milk a day. The company was formed to give farmers their due
and protect them from unscrupulous middlemen. Since then the company has
come a long way . but one thing is still the same . that time also it was by and for
the farmers and today also its the same .

In the mid 1950s Amul looked for ways to utilize the surplus milk by
manufacturing Butter, Milk, Cheese and other milk derived products.

It is integrated into the fabric of Indian society ,from its roots in representing small
farmers and struggler or the poor and impoverished in difficult circumstances.

The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless.
It was suggested by a quality control expert in Anand. Some cite the origin as an
acronym to (Anand Milk Union Limited)

Amul, a brand owned by the 26 lakh milk producers of Gujarat has once again
demonstrated that when farmers are given the instruments of development in their
hands, they can work wonders. The billion dollar Gujarat Co-operative Milk Marketing

Federation, the apex body of 13 district milk producers unions has been instrumental
in making Amul a brand to reckon with.

Reason for Success

1) Robust Supply Chain

2) Use of Technology_ Evolution of IT @ Amul

The milk collection center at village cooperative societies, were first

automated.
Data analysis software utilization for milk production estimation and increasing
productivity.
VATS network between all the level of distribution network and GCMMF.

3) Diverse Product Mix/Range

4) Distribution Chanel

5) Strong Marketing and Advertising _Connect to Customer