The Birth of Amul Amul is a dairy cooperative based in the Anand district of Gujarat, India. The word amul is derived from the Sanskrit word amulya, meaning invaluable. The co-operative was initially referred to as Anand Milk Federation Union Limited and hence the name AMUL. It all started more than 65 years back in Anand, a small town in the state of Gujarat in western India. The exploitative trade practices followed by the local trade cartel triggered off the cooperative movement. Angered by unfair and manipulative practices followed by the trade, the farmers of the district approached the great Indian patriot SardarVallabhbhai Patel for a solution. He advised them to get rid of middlemen and form their own co-operative, which would have procurement, processing and marketing under their control. In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and Tribhuvandas Patel, they formed their own cooperative on 1 December 1946. This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just two village dairy co-operative societies and 247 litres of milk and is today better known as Amul Dairy. The Birth of Amul Amul is a dairy cooperative based in the Anand district of Gujarat, India. The word amul is derived from the Sanskrit word amulya, meaning invaluable. The co-operative was initially referred to as Anand Milk Federation Union Limited and hence the name AMUL. It all started more than 65 years back in Anand, a small town in the state of Gujarat in western India. The exploitative trade practices followed by the local trade cartel triggered off the cooperative movement. Angered by unfair and manipulative practices followed by the trade, the farmers of the district approached the great Indian patriot SardarVallabhbhai Patel for a solution. He advised them to get rid of middlemen and form their own co-operative, which would have procurement, processing and marketing under their control. In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and Tribhuvandas Patel, they formed their own cooperative on 1 December 1946. This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just two village dairy co-operative societies and 247 litres of milk and is today better known as Amul Dairy. AMUL presents a successful model for operating in emerging economies characterized by either large under-developed suppliers and/or markets with high potential. Cooperative network with interlocking arrangement as in GCMMF is one example of success in managing such complex supply chain. The Amul brand is not only a product, but also a movement/revolution. It is in one way, the representation of the economic freedom of farmers. It has given farmers t

1. Presented By:
• Krupesh Shah
• Prashant Deshmukh
• Nasir Rafiq
• Hardikk Solankki
• Grishma Sarangdhar
Faculty : Prof. Sundar Natraj
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2. • Based in the Anand district of Gujarat
• Initially referred as Anand Milk Federation Union Limited
• Triggered by exploitative trade practices & local trade cartel
• Kaira District Co-operative Milk Producers Union Ltd, formed in
1 December, 1946.
The Birth of Amul
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3. Initial Challenges
• Milk producers has to travel long distance to deliver milk to
Polson Dairy in Anand
• Agents decided the prices off-take by the season
• Kaira District Cooperative was established to collect and
process milk
• Village level cooperatives organized the marginal
milk producers
• AMUL dairy, first modern dairy of the Kaira Union was
established at Anand.
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4. Product Range
• Bread Spreads
• Cheese
• Milk / Milk Powders
• Beverage Range
• Amul PRO
• Ice Cream & Chocolates
• Paneer
• Dahi
• Ghee
• Nutramul
• Mithai Range & Mithai Mate
• Fresh Cream
• Pouch Butter Milk
• Amul Cattle Feed
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7. Amul Brand
• GCMMF (AMUL) has the largest distribution network for
any FMCG company
• World's largest vegetarian cheese & pouched-milk brand
• Largest exporter of dairy products in the country
• Presence in over 40 countries of the world
• Most Trusted brand in Food & Beverages sector
• World Dairy Innovation Awards in 2014 for
Best Marketing Campaign.
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8. Village Dairy Cooperative Society
Milk collection
District Milk Cooperative Union
Milk procurement and processing
State Cooperative Milk Marketing Union
Milk products marketing
The Amul Model
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9. • Farmers are organized into
cooperatives called Village Dairy
Cooperative Societies (VDCS).
• VDCS supply milk to different dairy
cooperatives, called Unions
• The milk or milk products made at
district unions are supplied to
State Cooperate Milk Marketing
Federation
• GCMMF is the marketing entity for
the products of all the unions in the
state of Gujarat
• GCMMF is India's largest food
product marketing organization.
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10. Functions of VDCS
Collect Milk from farmers
Provide support services to the members
Sell milk to local consumers
Supply milk to the District Milk Union
16,914 VDCS in Gujarat
1,44,500 VDCS across India
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11. Functions of Federation
• Marketing of milk and milk products
• Arrange for transportation
• Support service to milk union
• Establish feeder-balancing dairy plants
• Decide the prices of milk and milk products
• Decide on the products to be manufactured
• Milk production, procurement and processing
• Arranging finance for the Milk Unions
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12. Procurement Process
• 15 Million Milk Producers, 1,44,500 Dairy Cooperative
Societies, 184 District Co-operative Unions and 22 State
Marketing Federations
• Pre-defined routes & precise timetable
• Amul Co-operative dairy collects milk from 800 points
• Milk collection from village societies happens twice a day
• After testing, milk containers are sent to the storage unit
• 40,000 liters of milk are dispatched everyday
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13. Distribution Network
• 53 sales offices
• 10,000 wholesale dealers
• 10 Lakh retailers
• 47 depots with dry and cold warehouses
• GCMMF transacts on an advance demand draft
• Just-in-time inventory strategy improves dealer‘s ROI
• Route scheduling and dedicated vehicle operations
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14. Supply Chain Efficiency
The strategy, design and practices
in AMUL’s network are strongly
driven by the objective of
establishing and operating an
efficient supply chain from milk
production and procurement to
product delivery to customers.
Elements:
• Inter-locking Control
• Technology for Effectiveness
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15. Inter-locking Control
• Robust coordination
• VDCs elects a chairperson and a secretary amongst its
member farmers
• Nine chairpersons elected to form the Board of Directors
of the Union
• One of the directors elected as the Chairperson
of the Union
• Chairpersons of all the Unions form the Board of
Directors of GCMMF
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16. Technology for Effectiveness
• Better and new products and right time
• TQM proved to be a strong movement
• IT usage include B2C Portals, ERP, KIOSK, GIS based
data network and Automated milk collection centres
• One of the directors elected as the Chairperson
of the Union
• GCMMF delivers Amul products in 125 cities in India
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18. E-Supply Chain Management
• 3000 automatic milk collection system units
• Identification card for members
• Value of milk calculated on the basis of fat content
• 5000 trucks used on daily basis
• ERP system covers promotion & distribution operations
• Daily sales report and inventory report to main system
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19. Impact of the "Amul Model"
• Increase of India’s milk
production by 40 million
metric tons (MMT)
• Incremental return of
Rs. 400 billion annually
• Milk production tripled
between 1971 and 1996
• Per capita milk consumption doubled from 111 gm per
day in 1973 to 222 gm per day in 2000
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20. Impact of the "Amul Model"
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21. Success Factor
• Quality products, economic
pricing, belief instilled
in customers
• The farmers owned the dairy
• Elected representatives managed
VDCS and Union
• Professionals operate the dairy
and manage business
• Sensitive to the needs of farmers
and responsive to their demands.
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