Amul means "priceless" in Sanskrit.

The brand name "Amul" from the

Sanskrit "Amoolya" was suggested by a quality expert in Anand. Variants, all meaning
priceless are found in several Indian language.
Amul products have been in use in millions of homes since 1946. Amul
Butter, Amul Milk Powder, amul Ghee. Amul Spray. Amul Cheese, Amul chocolates, Amul
Shrikhand, Amul Ice cream, Nutranmul, Amul Milk and Amulya have made Amul a leading
food brand in India. Turnover Rs. 25 billion in 2002. Today Amul is a symbol of many
things of high quality products sold at reasonable prices of the genesis of a vast co-operative
network of the triumph of indigenous technology of the marketing savvy of a farmer's
organization, and of a proven model for dairy development.

The revaluation started as awareness may the farmers that grew and matured into a protest
movement and determination to liberate them Over four decades ago the life of a farmer in
Kaira district was like that of his counterpart anywhere also in India. Income from dairy was
under pendable. Private traders and middleman controlled the marketing and distribution of
milk. As milk is perishable, farmers were compelled to sell it for what every they were
offered. In this situation, the one who
gained was the private traders. Gradually the realization downed on the farmers that the
exploitation by the traders could be checker do only if they marketed their product
themselves. To do this they need some sort of organization this realization is what led to the
establishment of Kaira District Cooperative Milk producer Union Limited (Popularly known
as Amul), which was formally registered on December 14, 1946.

The Kaira Union started Pasteurizing milk for the Bombay milk scheme in June 1948. An
assured market proved a great incentive to milk producers of the district by the end of 1948,
more than 400 farmers joined in more village societies and the quantity of milk handled by
union increase from 250 to 5000 liters per day.

As the movement spread in the district, it was found that the Bombay Milk Scheme could not
absorb the extra milk collected by the Kaira union in summer when the production on an
average was 2.5 times more than summer, Even by 1953, the farmer's embers have no
assured market for the extra milk produced summer. The remedy was to setup a plant to
process milk into products like butter and milk powder. A five Million

Rupees Plant to manufacture milk powder and butter was competed in 1955. In 1958 the
factory was expanded to manufacture sweetened condensed milk. Two year later a new wing
was added for manufacture of 25000 tons of roller derived baby food and 600 tons of cheese
per year. This cheese was based on the formula developed with the assistance of Central
Food Technology Research Institute (CFTRI). Mysore. It was the first time in world that
baby food and cheese where made by buffalo milk on a large commercial scale. Another r
milestone was the completion as a project to manufacture balanced cattle food. The plant was
donated by OXFAM under the freedom from hunger

campaign of the FAO

To meet the requirement for defense the Kaira Union was asked by the Government of India
in 1963 to setup additional drying capacity. A new dairy capable of producing 40 tons of
milk powder and 20 tons of butter a day was speedily completed. It was declared open in
1965. Since then Amul has
covered any miles on the road of success. Its members success of the federation can be
estimated from the fact the income of the rural household of the Kaira district is being
derived from dairying.

1.1 HISTORY

THE AMUL HISTORY

In the 1940s, in the district of Kaira of the State of Gujarat, India, a unique experiment was
conducted that become one of the most celebrated success stories of India. At that time, in
Gujarat, milk was obtained from farmers by private milk contractors and by a private
company, Polson's Dairy in Anand, the headquarters of the district. The company had a
virtual stranglehold on the farmers, deciding the prices both of the procured as well as the
sold milk. The company arranged to collect, chill and supply milk to the Bombay Milk
Scheme, which supplied milk to the metropolis of Bombay, and to cities in Gujarat, Polson's
Dairy also extracted dairy products such as cheese and butter. Polson's Dairy exploited its
monopoly fully, the farmers were forced to accept very low prices for their products, and the
decisions of the company regarding the quality and even the quantity of the milk supplied by
the farmers were final.

In 1946, inspired by Sardar Vallabhbhai Patel, a local farmer, freedom and social worker.
named Tribhuvandas Patel, organised the farmers into co-operatives, which could procure
milk from the farmers, process the milk and sell it in Bombay to customers including the
Bombay Milk Scheme, Purely by chance, in 1949, a mechanical engineer named Verghese
Kurien, who had just completed his studies in engineering in the USA. came to India and was
posted by the Government of India to a job at the Dairy Research Institute at Anand.

Settling down in Anand was hardly a part of his career plans; however, a meeting with
Tribhuvandas Patel changed his life and changed India's dairy industry. What Mr. Patel
requested of Dr. Kurien was hardly to bring about such a revolution. All the wanted was help
in solving various problems with bringing into working order some of the equipment just
purchased by his co-operative, especially the chilling and pasteurising equipment. These
items of equipment malfunctioned, leading to the rejection of large quantities of milk by the
Bombay Milk Scheme.

Dr. Kurien's involvement with the Kaira District Co-operative Milk Producers' Union
Limited (KDCMPUL; the registered name of the co-operative) grew rapidly. Initially he
merely provided technical assistance in repairing, maintaining and ordering new equipment
but subsequently he became involved with the larger sociological issues involved in
organising the farmers into co-operatives and running these co-operatives effectively. He
observed the exploitation of farmers by the private milk contractors and Poison's Dairy, and
noted how the co-operatives could transform the lives of the members. The most important
feature of these co-operatives is that they run purely as farmer's co-operatives, with all the
major decisions being taken by the farmers themselves. The co-operatives are not 'run' by a
separate bureaucracy with vested interests of its own; the farmers are truly in charge of their
own decisions. Any farmer can become a member by committing to supply a certain quantity
of milk for a certain number of days in a year and shall continue to be a member only if he
keeps up this commitment.

Each day, the farmers (or actually, in most cases, their wives and daughters) bring their milk
to the village collection centers where quantity of milk is checked in full view of all and
quality (milk fat content) is checked using a simple device, again in full view of all. The
farmers are paid in evening for the milk they supplied in the morning, and in the morning for
the evening's milk. This prompt settlement in cash is a great attraction to the farmers who are
usually cash starved. Thanks to the above system, there are no disputes regarding quantity or
quality of the milk supplied by each farmer. It was soon realized that it was not enough to
merely act as the collection and selling for the farmers. A variety of support services were
also required to enable the farmers continue selling milk of adequate quality and to avoid
disasters such as the death of their cattle (of a family owning just one or two cattle and
depending on its/their milk for their income, death of cow could indeed be a disaster). The
farmers were progressively given new services such as veterinary care for their cattle, supply
of good quality cattle feed, education on better feeding of cattle and facilities for artificial
insemination of their cattle. All these were strictly on payment basis; none of services were
free. This experiment of organizing farmers into co-operatives was one of the most
successful interventions of India. A very loyal clientele was built up who experienced
prosperity on a scale they could not have dreamt of 10 years earlier. With good prices paid
for their milk.
raising milch cattle could become a good supplementary source of revenue to many
households.

The co-operatives were expanded to cover more and more areas of Gujarat and in each area,
a network of local village level co-operatives and district level co-operatives were formed on
a pattern similar to that at Anand (the so called Anand Pattern). In 1955, KDCMPUL
changed its name to Anand Milk Union Limited, which lent itself to a catchy abbreviation,
Amul, which meant priceless in Sanskrit. The word was also easy to pronounce, easy to
remember and carried a wholly positive connotation. It became the flagship brand name for
the entire dairy products made by this union.

In 1954, Amul built a plant to convert surplus milk produced in the cold seasons into milk
powder and butter. In 1958, a plant to manufacture cheese and one to produce baby food
were added-for the first time in the world, these products were made from buffalo milk.
Subsequent years saw the addition of more plants to produce different products. Starting
from a daily procurement of 250litres in 1946. Amul had become a milk giant with a large
procurement base and a product mix that had evolved by challenging the conventional

technology.

In his visit to Anand in 1965, the then Prime Minister of India. Lal Bhadur Shastri, was
impressed by what he saw-a system that procured, processed and delivered high quality milk
to distant markets cost efficiently. Shastri could also see the difference that the income from
milk had made to the standard of living of farmers in the area.

What impressed him the most was that Amul had done all this without Government
assistance in market contrast to number of Government sponsored dairy programmes that
were doing poorly in terms of procuring and marketing good quality milk and boosting
farmer's incomes. Shastri asked Dr. Kurien to replicate Anand's success all over India.

A pattern similar to the Anand Pattern was to be built in otherstates of India. This was carried
out under a programme launched by the Government of India, entitled "Operation Flood".
The operation was a body formed by the Government of India with this specific objective co-
ordinated by the National Dairy Development Board (NDDB), a body formed by the
Government of India with this specific objective.
1.2 COMPANY PROFILE

GCMMF

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food
product marketing organisation with annual turnover (2019-20) USS 5.1 Billion. Its daily
milk procurement is approx 23 million lit per day from 18600 village milk cooperative
societies, 18 member unions covering 33 districts, and 3.6 million milk producer members.

It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known as

"AMUL' which aims to provide remunerative returns to the farmers and also serve the
interest of consumers by providing quality products which are good value for money. Its
success has not only been emulated in India but serves as a model for rest of the World. It is
exclusive marketing organisation of 'Amul' and 'Sagar' branded products. It operates through
61 Sales Offices and has a dealer network of 10000 dealers and 10 lakh retailers, one of the
largest such networks in India. Its product range comprises milk, milk powder, health
beverages, ghee, butter, cheese, Pizza cheese,Ice-cream, Paneer, chocolates, and traditional
Indian sweets, etc.

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading
House"status. Many of our products are available in USA, Gulf Countries.Singapore. The
Philippines, Japan, China and Australia, GCMMF has received the APEDA Award from
Government of India for Excellence in Dairy Product Exports for the last 16 years. For the
year 2009-10, GCMMF has been awarded "Golden Trophy" for its outstanding export
performance and contribution in dairy products sector by APEDA. In 2013-14, GCMMF
took giant strides in expanding its presence in International markets. Amul's presence on
Global Dairy Trade (GDT) platform in which only the top six dairy players of the world sell
their products, has earned respect and recognition across the world. By selling milk powders
on GDT, GCMMF could not only realize better prices as per market demand but it also
firmly established Amul in the league of top dairy players in world trade.

For its consistent adherence to quality, customer focus and dependability, GCMMF has
received numerous awards and accolades over the years. It received the Rajiv Gandhi
National Quality Award in 1999 in Best of All Category. In 2002 GCMMF bagged India's
Most Respected Company Award instituted by Business World. In 2003, it was awarded the
The IMC Ramkrishna Bajaj National Quality Award - 2003-certificate of merit- for adopting
noteworthy quality management practices for logistics and procurement. GCMMF is the first
and only Indian organisation to win topmost International Dairy Federation Marketing
Award for probiotic ice cream launch in 2007. For the innovations, GCMMF has received
AIMA-RK Swamy High Performance brand award 2013 and CNN-IBN Innovating for better
tomorrow award in 2014. World Dairy Innovation Awards 2014 for Best Marketing
Campaign - "Eat Milk with Every Meal". For the tree plantation activity GCMMF has
received seven consecutive Good Green Governance award from Srishti during 2007 to
2013.

The Amul brand is not only a product, but also a movement. It is in one way, the
representation of the economic freedom of farmers. It has given farmers the courage to

dream. To hope. To live.

GCMMF - An Overview
Year of establishment !973
Members 18 District co-operative milk producers
unions
Member of producer members 3.6 Million
Mermbers of village societies 18,600
Total milk handling capacity per day 35 Million litres per day
Milk collection (Daily average 2018-19) 23 million litres per day
Cattelfeed manufacturing capacity 9200 MTs per day
Sales turnover (2019-20) Rs 38,550 Crores (US $ 5.1 Billion)

1.3 OBJECTIVES AND BUSINESS PHILOSOPHY OF GCMME

The main stakeholder of GCMMF is the farmer member for whose welfare GCMMF exists.

GCMMF states that its main objective is the carrying out of activities for the economic
development of agriculturists by efficiently organizing marketing of milk and dairy produce,
veterinary medicines, vaccines and other animal health products, agricultural produce in raw
and/or processed form and other allied produce.
GCMMF aims to market the dairy and agricultural products of co-operatives through:

 Common branding

 Centralized marketing

 Centralized quality control

 Centralized purchases, and

 Efficient pooling of milk

GCMMF has declared that its business philosophy is as follows:

To serve the interests of milk producers and

To provide quality product that offer the best value to consumer for money spent

PLANTS:

First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk
powder, flavored milk and buttermilk.
Second plant Is at MOGAR which engaged in manufacturing chocolate, nutramul, Amul
gathiya and amul lite.