Dairy Industry

Dairy activities have been an integral part of our civilization since ancient times
and India has been the leading producer and consumer of dairy products
worldwide since 1998 with a sustained growth in the availability of milk and
milk products. According to NDP report, India is the world’s largest milk
producer, with 19 percent of global production, followed by the United States
of America, China, Pakistan and Brazil. Uttar Pradesh, the state of the highest
population, is the top most and highest milk producing state of the India. It
holds a share of 17.22% in the total milk production of the country. In the last
three decades, world milk production has increased by more than 58 percent,
from 522 million tonnes in 1987 to 828 million tonnes in 2017.Almost 55
percent of the milk produced is consumed by the producer household. Of the
remaining, two-third is sold in informal markets and 15-16 percent of the total
milk produced in the country enters the organized market comprising
cooperatives and the private sector. With an active consumption of dairy
products and their proactive function in the global food system, dairy plays a
crucial role in the growth of the economies worldwide.

India Dairy activities form an essential part of the rural Indian economy,
serving as an important source of employment and income. On account of this,
the Indian dairy industry holds tremendous potential for value-addition and
overall development. According to the latest report by IMARC Group, titled
“Dairy Industry in India 2019 Edition: Market Size, Growth, Prices, Segments,
Cooperatives, Private Dairies, Procurement and Distribution”, the dairy market
in India reached a value of INR 9,168 Billion in 2018.Along with offering
profitable business opportunities, the dairy industry in India serves as a tool of
socio-economic development. Keeping this in view, the Government of India
has introduced various schemes and initiatives aimed at the development of
the dairy sector in the country. For instance, the “National Dairy Programme
(Phase-I)” aims to improve cattle productivity and increase the production of
milk expanding and strengthening the rural milk procurement infrastructure
and providing greater market access to the farmers. Both national and
international players are entering the dairy industry, attracted by the size and
potential of the Indian market. The focus is being given to value-added
products such as cheese, yogurt, probiotic drinks, etc.These players are also
improving their milk procurement network which is further facilitating the
development of the dairy industry in India. Looking forward, the market is
expected to reach a value of INR 21,971 Billion by 2024, exhibiting a CAGR of
around 16% during 2019-2024.
 INTRODUCTION OF COMPANY

The brand name "Amul," from the Sanskrit "Amoolya," (meaning Precious) was
suggested by a quality control expert in Anand.),formed in 1946, is a dairy
cooperative in India. It is a brand name managed by an apex cooperative
organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF),
which today is jointly owned by some 2.8 million milk producers in Gujarat,
India. It operates through 56 Sales Offices and has a dealer network of 10000
dealers and 10 lakh retailers, one of the largest such networks in India.
GCMMF is India's largest exporter of Dairy Products.
AMUL is based in Anand, Gujarat and has been an example of a co-operative
organization's success in the long term. Amul has spurred the White Revolution
of India, which has made India the largest producer of milk and milk products
in the world. Besides India, Amul has entered overseas markets such as
Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a
few South African countries. DrVerghese Kurien, former chairman of the
GCMMF, is recognized as a key person behind the success of Amul. AMUL is
the most trusted and the leading brand in the field of food and beverage
industry in India. It has also become the India’s 22nd most trusted brands. It is
already a recognized name in the beverage industry as it claims to be the
largest producer and distributor of the processed milk and milk products in
India. In addition to the beverage sector, Amul has also given the green flag to
the food industry by initiating the selling of the food items under its initiative
Amul Green. The Amul Green brand would be selling items like nuts, pulses,
oils, spices, grains, and several other items at the retail outlet. These products
are stored in bulk at the cooperative stores and are then packaged and sold
under the Amul Green brand name. The main idea of this cooperation is to
obtain the food items directly from the farmers such that the farmers also get
better prices for the sale of the food items.
 AMUL MODEL

Main Features of AMUL Model: -

a) Establishment of a direct linkage between milk producers and
consumers by eliminating Middlemen.
b) Milk Producers (farmers) control procurement, processing and
marketing.
c) Professional management.