Navigation Search: Türkmenabat Amol
Navigation Search: Türkmenabat Amol
Navigation Search: Türkmenabat Amol
Amul ("priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya,"
(meaning Precious) was suggested by a quality control expert in Anand.)[1], formed in 1946,
is a dairy cooperative in India. It is a brand name managed by an apex cooperative
organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today
is jointly owned by some 2.8 million milk producers in Gujarat, India[2].
AMUL is based in Anand, Gujarat and has been an example of a co-operative organization's
success in the long term. It is one of the best examples of co-operative achievement in the
developing economy[citation needed]. "Anyone who has seen … the dairy cooperatives in the state
of Gujarat, especially the highly successful one known as AMUL, will naturally wonder what
combination of influences and incentives is needed to multiply such a model a thousand times
over in developing regions everywhere."[3] 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[citation
needed]
. It is also the world's biggest vegetarian cheese brand [4].
Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an
annual turnover of US $1050 million (2006–07) [5]. Currently Unions making up GCMMF
have 2.8 million producer members with milk collection average of 10.16 million litres per
day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA,
Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its
bid to enter Japanese market in 1994 did not succeed, but now it has fresh plans entering the
Japanese markets [6]. Other potential markets being considered include Sri Lanka.
Dr Verghese Kurien, former chairman of the GCMMF, is recognised as a key person behind
the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union,
was elected chairman of GCMMF.
[hide]
• 1 GCMMF Today
• 2 Company info
• 3 The Birth of Amul and development of India’s Dairy Cooperative Movement
• 4 The Three-tier "Amul Model"
• 5 Impact of the "Amul Model"
• 6 Achievements of the "Amul Movement"
• 7 Achievements of GCMMF
o 7.1 Amul Brand Building
• 8 Products
• 9 Mascot
• 10 Advertising
• 11 Rivals
• 12 In popular culture
• 13 References
• 14 External links
GCMMF is India's largest food products marketing organisation.[citation needed]. It is a state level
apex body of milk cooperatives in Gujarat, which aims to provide remunerative returns to the
farmers and also serve the interest of consumers by providing affordable quality products.
GCMMF markets and manages the Amul brand. From mid-1990s Amul has entered areas not
related directly to its core business. Its entry into ice cream was regarded as successful due to
the large market share it was able to capture within a short period of time – primarily due to
the price differential and the brand name. It also entered the pizza business, where the base
and the recipes were made available to restaurant owners who could price it as low as 30
rupees per pizza when the other players were charging upwards of 100 rupees.
The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest
food products marketing organisation of India. It is the apex organization of the Dairy
Cooperatives of Gujarat. This State has been a pioneer in organizing dairy cooperatives and
our success has not only been emulated in India but serves as a model for rest of the World.
Over the last five and a half decades, Dairy Cooperatives in Gujarat have created an
economic network that links more than 2.8 million village milk producers with millions of
consumers in India and abroad through a cooperative system that includes 13,141 Village
Dairy Cooperative Societies (VDCS) at the village level, affiliated to 13 District Cooperative
Milk Producers’ Unions at the District level and GCMMF at the State level. These
cooperatives collect on an average 7.5 million litres of milk per day from their producer
members, more than 70% of whom are small, marginal farmers and landless labourers and
include a sizeable population of tribal folk and people belonging to the scheduled castes.
The turnover of GCMMF (AMUL) during 2008-09 was Rs. 67.11 billion. It markets the
products, produced by the district milk unions in 30 dairy plants, under the renowned AMUL
brand name. The combined processing capacity of these plants is 11.6 million litres per day,
with four dairy plants having processing capacity in excess of 1 million Litres per day. The
farmers of Gujarat own the largest state of the art dairy plant in Asia – Mother Dairy,
Gandhinagar, Gujarat – which can handle 2.5 million litres of milk per day and process 100
MTs of milk powder daily. During the last year, 3.1 billion litres of milk was collected by
Member Unions of GCMMF. Huge capacities for milk drying, product manufacture and
cattle feed manufacture have been installed. All its products are manufactured under the most
hygienic conditions. All dairy plants of the unions are ISO 9001-2000, ISO 22000 and
HACCP certified. GCMMF (AMUL)’s Total Quality Management ensures the quality of
products right from the starting point (milk producer) through the value chain until it reaches
the consumer.
Ever since the movement was launched fifty-five years ago, Gujarat’s Dairy Cooperatives
have brought about a significant social and economic change to our rural people. The Dairy
Cooperatives have helped in ending the exploitation of farmers and demonstrated that when
our rural producers benefit, the community and nation benefits as well.
The Gujarat Cooperative Milk Marketing Federation Ltd. cannot be viewed simply as a
business enterprise. It is an institution created by the milk producers themselves to primarily
safeguard their interest economically, socially as well as democratically. Business houses
create profit in order to distribute it to the shareholders. In the case of GCMMF the surplus is
ploughed back to farmers through the District Unions as well as the village societies. This
circulation of capital with value addition within the structure not only benefits the final
beneficiary – the farmer – but eventually contributes to the development of the village
community. This is the most significant contribution the Amul Model cooperatives has made
in building the Nation.
[edit] The Birth of Amul and development of India’s Dairy Cooperative Movement
The birth of Amul at Anand provided the impetus to the cooperative dairy movement in the
country. The Kaira District Cooperative Milk Producers’ Union Limited was registered on
December 14, 1946 as a response to exploitation of marginal milk producers by traders or
agents of existing dairies in the small town named Anand (in Kaira District of Gujarat). Milk
Producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in
Anand. Often milk went sour as producers had to physically carry the milk in individual
containers, especially in the summer season. These agents arbitrarily decided the prices
depending on the production and the season. Milk is a commodity that has to be collected
twice a day from each cow/buffalo. In winter, the producer was either left with surplus /
unsold milk or had to sell it at very low prices. Moreover, the government at that time had
given monopoly rights to Polson Dairy (around that time Polson was the most well known
butter brand in the country) to collect milk from Anand and supply it to Bombay city in turn.
India ranked nowhere amongst milk producing countries in the world in 1946.
Angered by the unfair and manipulative trade practices, the farmers of Kaira District
approached Sardar Vallabhbhai Patel (who later became the first Deputy Prime Minister and
Home Minister of free India) under the leadership of the local farmer leader Tribhuvandas
Patel. Sardar Patel advised the farmers to form a Cooperative and supply milk directly to the
Bombay Milk Scheme instead of selling it to Polson (who did the same but gave low prices to
the producers). He sent Morarji Desai (who later became Prime Minister of India) to organize
the farmers. In 1946, the farmers of the area went on a milk strike refusing to be further
oppressed. Thus the Kaira District Cooperative was established to collect and process milk in
the District of Kaira in 1946. Milk collection was also decentralized, as most producers were
marginal farmers who were in a position to deliver 1-2 litres of milk per day. Village level
cooperatives were established to organize the marginal milk producers in each of these
villages.
The Cooperative was further developed & managed by Dr. V Kurien along with Shri H M
Dalaya. The first modern dairy of the Kaira Union was established at Anand (which
popularly came to be known as AMUL dairy after its brand name). Indigenous R&D and
technology development at the Cooperative had led to the successful production of skimmed
milk powder from buffalo milk – the first time on a commercial scale anywhere in the world.
The foundations of a modern dairy industry in India were thus laid since India had one of the
largest buffalo populations in the world.
The success of the dairy co-operative movement spread rapidly in Gujarat. Within a short
span five other district unions – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were
organized. In order to combine forces and expand the market while saving on advertising and
avoid a situation where milk cooperatives would compete against each other it was decided to
set up an apex marketing body of dairy cooperative unions in Gujarat. Thus, in 1973, the
Gujarat Co-operative Milk Marketing Federation was established. The Kaira District Co-
operative Milk Producers’ Union Ltd. which had established the brand name AMUL in
1955 decided to hand over the brand name to GCMMF (AMUL). With the creation of
GCMMF (AMUL), we[who?] managed to eliminate competition between Gujarat’s
cooperatives while competing with the private sector as a combined stronger force. GCMMF
(AMUL) has ensured remunerative returns to the farmers while providing consumers with
products under the brand name AMUL.
This was possible due to the leadership of the founder Chairman of AMUL, Tribhuvandas
Patel and the vision of the father of the White Revolution, Dr. Verghese Kurien who worked
as a professional manager at AMUL. Numerous people contributed to this movement which
would otherwise not have been possible.
Dr. Verghese Kurien, the World Food Prize and the Magsaysay Award winner, is the
architect of India’s White Revolution, which helped India emerge as the largest milk
producer in the world.
Impressed with the development of dairy cooperatives in Kaira District & its success, Shri
Lal Bahadur Shastri, the then Prime Minister of India during his visit to Anand in 1964,
asked Dr. V Kurien to replicate the Anand type dairy cooperatives all over India. Thus, the
National Dairy Developed Board was formed and Operation Flood Programme was launched
for replication of the Amul Model all over India.
Operation Flood, the world’s largest dairy development programme, is based on the
experience gained from the ‘Amul Model’ dairy cooperatives. The facilities at all levels are
entirely farmer-owned. The cooperatives are able to build markets, supply inputs and create
value-added processing. Thus, Amul Model cooperatives seem to be the most appropriate
organizational force for promoting agricultural development using modern technologies and
professional management and thereby generating employment for the rural masses and
eradicating poverty in these undeveloped areas. India has already demonstrated the
superiority of this approach.
The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy
Cooperative Society at the village level affiliated to a Milk Union at the District level which
in turn is further federated into a Milk Federation at the State level. The above three-tier
structure was set-up in order to delegate the various functions, milk collection is done at the
Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk
& Milk Products Marketing at the State Milk Federation. This helps in eliminating not only
internal competition but also ensuring that economies of scale is achieved. As the above
structure was first evolved at Amul in Gujarat and thereafter replicated all over the country
under the Operation Flood Programme, it is known as the ‘Amul Model’ or ‘Anand Pattern’
of Dairy Cooperatives.
Responsible for Marketing of Milk & Milk Products Responsible for Procurement &
Processing of Milk Responsible for Collection of Milk Responsible for Milk Production
The milk producers of a village, having surplus milk after own consumption, come together
and form a Village Dairy Cooperative Society (VDCS). The Village Dairy Cooperative is the
primary society under the three-tier structure. It has membership of milk producers of the
village and is governed by an elected Management Committee consisting of 9 to 12 elected
representatives of the milk producers based on the principle of one member, one vote. The
village society further appoints a Secretary (a paid employee and member secretary of the
Management Committee) for management of the day-to-day functions. It also employs
various people for assisting the Secretary in accomplishing his / her daily duties. The main
functions of the VDCS are as follows:
• Collection of surplus milk from the milk producers of the village & payment based on
quality & quantity
• Providing support services to the members like Veterinary First Aid, Artificial
Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed
sales, conducting training on Animal Husbandry & Dairying, etc.
• Selling liquid milk for local consumers of the village
• Supplying milk to the District Milk Union
Thus, the VDCS in an independent entity managed locally by the milk producers and assisted
by the District Milk Union.
The Village Societies of a District (ranging from 75 to 1653 per Milk Union in Gujarat)
having surplus milk after local sales come together and form a District Milk Union. The Milk
Union is the second tier under the three-tier structure. It has membership of Village Dairy
Societies of the District and is governed by a Board of Directors consisting of 9 to 18 elected
representatives of the Village Societies. The Milk Union further appoints a professional
Managing Director (paid employee and member secretary of the Board) for management of
the day-to-day functions. It also employs various people for assisting the Managing Director
in accomplishing his / her daily duties. The main functions of the Milk Union are as follows:
The Milk Unions of a State are federated into a State Cooperative Milk Federation. The
Federation is the apex tier under the three-tier structure. It has membership of all the
cooperative Milk Unions of the State and is governed by a Board of Directors consisting of
one elected representative of each Milk Union. The State Federation further appoints a
Managing Director (paid employee and member secretary of the Board) for management of
the day-to-day functions. It also employs various people for assisting the Managing Director
in accomplishing his daily duties. The main functions of the Federation are as follows:
We[who?] move to the year 2008. The dairy industry in India and particularly in the State of
Gujarat looks very different. India for one has emerged as the largest milk producing country
in the World. Gujarat has emerged as the most successful State in terms of milk and milk
product production through its cooperative dairy movement. The Kaira District Cooperative
Milk Producers’ Union Limited, Anand has become the focal point of dairy development in
the entire region and AMUL has emerged as one of the most recognized brands in India,
ahead of many international brands.
Today, we have around 176 cooperative dairy Unions formed by 1,25,000[quantify] dairy
cooperative societies having a total membership of around 13 million farmers on the same
pattern, who are processing and marketing milk and milk products profitably, be it Amul in
Gujarat or Verka in Punjab, Vijaya in Andhra Pradesh or a Nandini in Karnataka. This entire
process has created more than 190 dairy processing plants spread all over India with large
investments by these farmers’ institutions. These cooperatives today collect approximately
23 million kgs. of milk per day and pay an aggregate amount of more than Rs.125 billion to
the milk producers in a year.
The effects of Operation Flood Programme are more appraised by the World Bank in its
recent evaluation report. It has been proved that an investment of Rs. 20 billion over 20 years
under Operation Flood Programme in 70s & 80s has contributed in increase of India’s milk
production by 40 Million Metric Tonne (MMT) i.e. from about 20 MMT in pre- Operation
Flood period to more than 60 MMT at the end of Operation flood Programme. Thus, an
incremental return of Rs. 400 billion annually have been generated by an investment of Rs.
20 billion over a period of 20 years. This has been the most beneficial project funded by the
World Bank anywhere in the World. One can continue to see the effect of these efforts as
India’s milk production continues to increase and now stands at 90 MMT. Despite this
fourfold increase in milk production, there has not been drop in the prices of milk during the
period and has continued to grow.
Due to this movement, the country’s milk production tripled between the years 1971 to 1996.
Similarly, the per capita milk consumption doubled from 111 gms per day in 1973 to 222
gms per day in 2000. Thus, these cooperatives have not just been instrumental in economic
development of the rural society of India but it also has provided vital ingredient for
improving health & nutritional requirement of the Indian society. Very few industries of India
have such parallels of development encompassing such a large population.
These dairy cooperatives have been responsible in uplifting the social & economic status of
the women folk in particular as women are basically involved in dairying while the men are
busy with their agriculture. This has also provided a definite source of income to the women
leading to their economic emancipation.
The three-tier ‘Amul Model’ has been instrumental in bringing about the White Revolution in
the country. As per the assessment report of the World Bank on the Impact of Dairy
Development in India, the ‘Anand Pattern’ has demonstrated the following benefits:
GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly
50 sales offices spread all over the country, more than 3,000 wholesale dealers and more than
5,00,000 retailers.
AMUL is also the largest exporter of dairy products in the country. AMUL is available today
in over 40 countries of the world. AMUL is exporting a wide variety of products which
include Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified
Butter (Ghee) and Indigenous Sweets. The major markets are USA, West Indies, and
countries in Africa, the Gulf Region, and [SAARC] SAARCneighbours, Singapore, The
Philippines, Thailand, Japan and China.
In September 2007, Amul emerged as the leading Indian brand according to a survey by
Synovate to find out Asia's top 1000 Brands.[7]
[edit] Products
Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti Dahi,
Yoghurt, Buttermilk chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, flavoured
milk, basundi, Nutramul brand and others. In January 2006, Amul plans to launch India's first
sports drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's
Gatorade [8].
In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product
offering in the milk products segment. Other Amul brands are Amul Kool, a low calorie thirst
quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee and India's first sports
drink Stamina.
Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing
Award for 2007.[citation needed]
[edit] Mascot
Since 1967[9] Amul products' mascot has been the very recognisable "Amul baby" (a chubby
butter girl usually dressed in polka dotted dress) showing up on hoardings and product
wrappers with the equally recognisable tagline Utterly Butterly Delicious Amul.The mascot
was first used for Amul butter. But in recent years in a second wave of ad campaign for Amul
products, she has also been used for other product like ghee and milk.
[edit] Advertising
An Amul butter ad on Pakistan's Kargil War fiasco. The image shows the "Amul baby" in
between George Fernandes and Atal Behari Vajpayee.
Its advertising has also started using tongue-in-cheek sketches starring the Amul baby
commenting jovially on the latest news or current events. The pun in her words has been
popular. Amul outdoor advertising uses billboards, with a humorous take on current events
and is updated frequently. The Amul ads are one of the longest running ads based on a theme,
now vying for the Guinness records for being the longest running ad campaign ever with
Smokey Bear. Sylvester da Cunha was the Managing Director of the advertising agency,
ASP, that created the campaign in 1967.
[edit] Rivals
The success of Amul resulted in similar organizations being setup by state governments
throughout India, most of which had reasonable success. Examples are Milma in Kerala,
Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, K.M.F (Nandini) in Karnataka, Sudha in
Bihar, Omfed in Orissa, saras in Rajasthan, Parag in Uttar Pradesh, Verka in Punjab, Aanchal
in uttaranchal, Vita in Haryana and others.[citation needed]
Other co-operative rivals of Amul include National Dairy Development Board (NDDB) (with
its Mother Dairy and Sugam brands). With Amul entering the sports drink market, its rivals
now include Coca Cola and PepsiCo.[citation needed]
The establishment of Amul is also known as White Revolution. The White Revolution of
India inspired the notable Indian film-maker Shyam Benegal to base his film Manthan (1976)
on it. The film starred Smita Patil, Girish Karnad, Naseeruddin Shah and Amrish Puri. The
film itself was financed by over five lakh rural farmers in Gujarat who contributed Rs 2 each
to the film'š budget. Upon its release, these same farmers went in truckloads to watch 'their'
film, making it a commercial success.[10][11], the film was chosen for the 1977 National Film
Award for Best Feature Film in Hindi. The Amul success story is taken up as a case study in
marketing in many premier management institutes across the world.
The White Revolution ushered an era of plenty from a measly amount of milk production and
distribution. Aside from the great measurable success that this project was, it also
demonstrated the power of "collective might". A small set of poor farmers of Kheda district
in Gujarat had the vision and foresight to act in a way that was good for the society and not
for the self alone