TASTE OF INDIA TO

TASTE OF THE WORLD

The Story Of World’s 8th Largest Milk Processor
 FOREWORD
Anand Milk Union Limited, popularly known as Amul, is one of
India’s finest cooperative dairy brands. Jointly owned by 36
lakh milk producers in Gujarat, it makes India the world’s
largest producer of milk and milk products.
Millions of farmers across the country are faced by many
hardships including unfair trade practices, which lead them
to poverty. With the goal of changing the fate of such farmers
Amul was created. It combined their forces and developed
the market, providing these farmers with the opportunity for
growth. Since it’s establishment, Amul has incorporated a lot
of changes within itself to facilitate innovation in the market
through cultural, economic and technological advancements.
This study takes you through the path followed by this
successful cooperation in, not only profiteering in its
business but also helping and supporting the livelihood of
farmers all over the country. The effort and time put into this
research is evident and much appreciated. It is an eye
opening read into the struggles and accomplishments of
everyone involved.

Vandana Mary
 ABOUT
Anand Milk Union Limited is a cooperative organisation
started in 1946 by visionary leaders like Tribhuvandas
Patel, Morarji Desai under the leadership and guidance of
Sardar Vallabahi Patel in Gujarat,Anand. This organisation
was started with the main intention to remove the middle
men and help the farmers prosper. From selling 250 litres
of milk in the initial days to now selling 3.6 million litres
per [Link] has immensely grown into a huge successful
organisation under the supervision of [Link] Kurien
Amul is a great asset to our country , completely owned
and managed by our people making us and our farmers
self reliant this cooperative society definitely brings in so
much pride to the country .
Below listed are some awards and recognitions given
to Amul
GCMMF received Bronze Trophy at the Indian
Marketing Awards – 2014
GCMMF – Finalist in World Beverage Innovation
Awards - 2014
GCMMF received APEDA Awards for 16 years
continuously
Amul wins World Dairy Innovation Awards - 2014
Amul receives Srishti Good Green Governance award
for the year 2013

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GCMMF Receives Prestigious CNN-IBN Innovating for a
Better Tomorrow Award
Amul wins AIMA High Performance Brand Award-2013 for
brand Amul
Shri R S Sodhi, MD-GCMMF, receives prestigious
QIMPRO GOLD STANDARD Quality Award 2013
GCMMF wins the SAP Award for Customer Excellence
(SAPACE) 2013 under the category of "Best Run Award in
Finance"
ET-Corporate Citizen Award of the Year 2010-11 to
GCMMF
Amul receives Green Globe Foundation Award
Dr. [Link] honoured with Life Time Achievement
Award
GCMMF receives Srishti's G-Cube Award - 2010
Amul Bags International Dairy Federation Award
Amul Bags Srishti G-cube Award For Good Green
Governance - 2009
Amul Pro-Biotic Ice-cream Gets No. 1 Award At World
Dairy Summit
Ramkrishna Bajaj National Quality Award - 2003
Qimpro Gold Standard Award - 2003
Amul - The Taste Of India (GCMMF) Receives
International CIO 100 Award For Resourcefulness
Rajiv Gandhi National Quality Award - 1999

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Amul co-operative was started in 1946, producing just about 246
litresof milk per day. Today the very same organization has
expanded itself into 18,700villages and has 18 member unions. It
today is Asia's biggest milk brand andthe credit goes to the
changes it has adopted over the years. It's changed lot since it’s
inception in the state of Gujarat, it has diversified and expanded
beyond measures and has changed itself in order to keep up with
the current trends and meet the needs of the consumer. It has
diversified itself into many new products like yogurt, butter, ghee,
lassi and flavoured milk. Amul does not believe resting on it’s
laurels and has recently entered into the fruit juice market by
adding milk solids to juice and has made a differential product
giving tough competition to the market players in this industry,
followed by frozen snacks support it’s existing cold chain. Amul
has also been innovating it’s chocolate business and aims at
hitting the big spot in the dark chocolate industry. Amul has
decided to spend 600 to 800 crore every year merely
onpackaging. In 2016, Amul entered into a partnership with
Amazon to cater to the demand for ghee of the foreign audience.

Amul had exports worth Rs.800 crores in the year 2018 and aims at
increasing it’s exports to countries like Bangladesh, Russia,China,
south east Asia and west Asian countries where there is deficiency
of milk. Amul has been catering the needs of all the segments right
from teenagers and kids to men and women. It’s been producing
new products to attract the calorie conscious and health
conscious. It was the first company to have its own website in the
corporate world. Seeing that a large amount of customers were
turning to e-commerce, Amul wanted to make its presence felt
there. ,

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 Amul entered into an agreement with infibeam in
[Link] Amul's products were available in certain
specific e commerce platform wanted an exclusive B2c
segment for itself. Amul is one among those companies which
spends a very less amount of it’s revenue on marketing but
recently,during the covid 19 pandemic, it changed its
marketing plan and doubled the spending on the basis of
increasing viewership and changing consumer sentiments
Amul diverted it’s advertising budget to the news channels
from the General Entertainment channels as a large number of
viewers would spend a large time viewing the news channels in
the wake of the pandemic.
Amul changed its packaging style back in 1994 to produce ultra
high processed milk, keeping up with the consumer demand.
From the past 4 years, Amul has launched 101 new products
and plans 40-60 new products in the coming years to keep up
with the change in consumer demand.
From the past few years amul has taken some comprehensive
back end strategies which have contributed to it’s impressive
[Link] 2010, Amul started diversifying it’s network of
wholesale and retail dealers, from 2012-2014, Amul had added 8
new branches across the country in cities such as Rajkot,
Jabalpur,Surat,Srinagar,Lucknow,Jorhat,Kharagpur,Aurangabad
for easy supply of products to the major cites. With the
changes in the technology, Amul has kept up the game by
adapting to it continuously. It moved to digital marketing from
the conventional marketing strategies all the whhile with it’s
innovative ad campaigns carving out a niche for itself.
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Due to the supply chain constraints,Amul has 2 types of
products for exports in it's portfolio. The first being packaged
products mainly for the Indian audience, consisting of
products such as Amul Butter, Amul Ghee, Amul Cheese etc
and the second being commodities like Amul white buttet,
Amul milk powder [Link]'s export commodities change
depending on the international prices, and in a few cases the
milk products are not exported due to the increased price
volatiity and additional costs. It not only employees the Indians
in India but has infact started its local manufacturing units at
USA, where ghee, shrikandh and paneer is produced. Amul
feels that sending products from India to USA will require
great cost and prove to be difficult. Hence, it’s more profitable
for them to start a manufacturing unit at USA.
Amul has very strategically segmented it’s primary products
with lactose free milk, buffalo milk, cow milk , camel milk etc.
Amul expects to raise a quantum of revenue with it’s mithai
[Link] had begun preparations by thoroughly planning
with supply chain partners and when the lockdown started
getting into lace, Amul promulgated cash incentives to it’s
plant workers, sales executives, drivers, retailers and
distributors. Amul managed to provide 12000 crore Rs to the
farmers who supplied raw milk to them. Unlike, other
businesses and companies which struggled to successfully
maintain its supply chain and sales, the consumer’s trust in
Amul and their uninterrupted deliveries has helped Amul to
grow tremendously during this period.

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CULTURE
.

Organizational structure is highly influenced by the

bureaucracy in government organizations. Different
departments: Finance, Production, Marketing, Purchase and
sales and Personnel department. High degree of
standardization and formalization Rules and procedures
Written communication, records and documentation
Systematic flow of instructions from top to bottom Only top
authorities have power to take decisions about important
issues Specified appraisal system and promotion policy
Sometimes, centralization causes delay in decision
makingComparing above reasons with Weber’s definition
and dimensions of bureaucracy and from the AMUL’s
organization chart itIndia
Taste of can beof concluded
to taste that AMUL is a
the World. |. Culture

medium to highly bureaucratic organization

Amul’s Organizational Model The main challenges to
effectively achieving Amul’s vision are
Highly fragmented, small scale supplier base
Low income consumers
Lack of infrastructure
Response to design challenges
1. Simplicity
2. Flexibility
3. Reliability
[Link]
[Link]

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 Supply Chain in Amul effectively manages both upstream and
downstream partners in establishing one of the most complex
supply chains across the globe. The producers bring milk to the
village cooperatives, which is then transported to the unions by
special trucks. From the union’s production facility, milk is
transported to wholesale distributors who then transport the
milk to retailers in specialised [Link] of these processes are
outsourced to third party logistics and retail partners to ensure
efficient execution. A stringent verification process and
guarantees for the safety of the milk products are required from
channel members before they are on-boarded to the [Link]
the wholesalers and retailers, Amul offers reasonable margins on
a high volume good. It offers support in demand prediction,
reducing the potential bullwhip effects that might arise from
inexperienced sales partners. It also offers easy repayment
programs for capital investments in infrastructure (freezers etc)
by the retailers.
Organisational AlignmentThe heads of the village cooperatives sit
on the management of the union at the district level. The heads
of the unions at the district level comprise the governing board
for the federation. This board appoints the chairman of Amul
diary. This strategy has effectively ensured that the management
has “skin in the game”.Theincentive structure is also aligned in
that it reward suppliers who generate the most amount of
business, which is judged based on a mix of the quality and
quantity of milk [Link] making in the organization
The decision making is decentralized There is representation of
small scale farmers at different levels of hierarchy All decisions
taken and implemented are verified and approved at each level of
hierarchy

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 The level of differentiation is very high in Amul
Differentiation is high due to the presence of various facets
such as :
Production
Procurement
Processing
Pricing
Marketing
Training
Management Level of differentiation
The farmers are important stakeholders Skilled operations
are performed by hiring professionals The producers
decide on policies while the professionals implement the
policiesMeasures of Evaluating Effectiveness Reach of the
dairy Growth in Milk production and availability Market
dominance of the dairy cooperatives Innovation Social
empowerment Economic empowerment

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Performance evaluation 12 million farmers associated with
the dairy 1,08,574 village-level dairy co-operative societies
170 district-level unions spanning 338 districts 22 state-
level marketing federations Production and per capita
availability of milk Growth of polypack milk 16% since 2008
Control, Innovation and Efficiency Innovative organisational
model Introduce GIS facility Awarded CNN-IBN “Innovating
for a Better Tomorrow” Award 2014 Inter-locking control
mechanism to ensure interest of farmers Three-tier model
helped in improving efficiencyBehaviour in the organization
Behaviour in Amul is standardized A similar model is
applicable over all the Amul collection, distribution and
processing units Thestandardization is brought by
computer applications and 3000 automatic milk collection
centres The rules set ensure that there is no compromise
on quality The rules ensure compliance to the established
standards and adherence to the chronological culture and
structure of Amul informal organization Informal
organization does play an important role in the way
members behave At grassroot level informal organization
exists in village societiesAmul Organisational Model The
decision makingprocess is more vertical but decentralized.
Communication within the organisation is more informal. It
follows standardized policies and procedures for its
governance and for making its products. The structure is
task based. i.e., typically each person corresponds to one
task.

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The main instrumental values of amul are
healthy and fresh products
corporate social responsibility
farmer’s and employees well being
against animal cruelty
Terminal values are
Maximum Revenue
Healthy Consumers
Serving the society
Amul also made its Organizational change of being the first
co-operative company to adopt e-revolution. Was
successful in Eliminating the middleman and Introduced
“GIS facility”. First organisation to have its own website.
First company to open cyber store across the nation.
To increase the supply of milk amul has planned for large
scale sourcing of important aids like cattle feed,
vertinaryaids and other technological aids. They are looking
forward for overall community development . due to the
fragmented nature of the business , supply of the products
can be a little instable To tackle supply instabilities amul has
come up with incentive to make better cold storage
facilities so that the products can be stored for a longer
time and can be redistributed without any hastle. Amul has
wide varities of machines with updated technology. Some of
them can be Automatic Milk Collection System which is
capable of identifying and testing the quality.

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 It also as enterprise wide integrated application system to
combine various softwares A Geographic Information System
was also established to view supply disparities in real time.
Cyber stores have been recently launched as well.
Marketing/Advertising Campaign at Amul is truly amazing at
creating wonderful advertisements and takes them as a
medium to express social [Link] posters made by the
company usually have a cute little animated girl with catchy
tag lines and current content These advertisements have now
become an establishment of their own right, enhancing
Amul’s brand from just a dairy co-operative to a household
name outside the diary products context. Some of them are:-

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Amul diversified into various diary products such as milk
powders, butter, cheese, yogurt, ice creams and a number
of other variations specific to the Indian market. It has
managed to capture significant market share in others.
This move was highly strategic once the brand image
(quality at affordable prices) and distribution chains were
established,a clear indication of successful horizontal
integration.
Amul’s growth according reports is 1 USD is approximated
at 60 INR)

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 ETHICS

123 Anywhere St., Any City, State, Country 12345 hello@[Link]

[Link]
“AMUL” The brand which isn’t only known for its taste and
quality but also for its moral principles. Amul provides
products to consumers which provides ‘value for money’
(quality products at a competitive price). Amul believes and
follows that good ethics and good business will go together
naturally for best long-term results. They provide credits to
the values based upon performance, respect,
responsibilities, honesty and courtesy. This is the act in an
ethical way to protect and promote, the company including
its reputations.
Ethics followed by AMUL
> Provide job opportunities:
Farmers: Amul dairy was started in response to the
exploitation happened to the farmers by the traders and
agents of small cities. The middle men were earning
maximum profits were as the farmers did not get good
returns. The farmers of Kaira approached Sardar
Vallabhbhai Patel (former prime minister of India).
Sardar Vallabhbhai Patel advised the farmers of kaira to
form a cooperative society and supply milk and milk
products directly to the Bombay milk scheme under the
leadership of local leaders Tribhuvandas Patel and
Morarji Desai formed the cooperative society in
[Link] started with just two cooperative societies and
they used to produce 247 liters of milk.
Example: If the Amul dairy sells milk at Rupees hundred the
farmers will get Rupees eighty to eighty five.

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The amount of money the farmers are provided in Amul is
more than the farmers earned working with middle men.
The Vision of Amul is to provide more and more satisfaction
to Farmers, employees and customers. The company was
established for the welfare of Farmers following the moral
principle values.
Women: Amul encourages women to be part of the
cooperative society. Most of the Amul dairy related
activities are usually taken care by the women, they are
mainly involved in primary production off the check and
take care of the marketing and processing. Women
cooperative members had increased from zero point
two two billion in 1981 to three point seven million in
2008 are the sole reasons for me business model and
success. The cooperative movement have developed
and boosted leadership quality and skills among women.
They held three leadership management workshop-
Prajapita, Brahmakumaris, and Mount Abu. Total of
three thousand one hundred women participated.
Example: Smt. Suvarna Patel is one of the entrepreneur of
India’s biggest food company ‘AMUL’ which has the
turnover of six billion dollars (38,000 crores). She is also the
entrepreneur of 69 latest technology plants in India.
Suvarna Patel was born 90 kilometers away from
Ahmedabad in a small village called ‘Shekari’ in Anand
district. She was married at an early age and could not get a
better education, hence she wanted to give her three
children the best education.

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 She was earning money from her two buffaloes by selling
milk to the local cooperative society. Due to sudden death of
her husband, she had the family burden on her. From the
small savings she had , she bought two cows which helped her
to generate more [Link] she have twenty seven cows,
two bulls,seven calf which give 100-200 liters of milk per day
to the local cooperative societies. Which gave her 80,000
rupees income per [Link] thousands of village women
work in Amul.
Fresher: Amul looks forward for promising energetic
discipline and young Indian citizens with bright academic
record to join the organization. The selection of
candidates would be placed and decided by the post with
the best pay offered in the [Link] the candidates
perform well in the selection process the candidate will be
chosen for the vacant seat which will make a good
increase in the productivity. Fresher also get an
opportunity of help for their further studies and training.
> Contribution towards society:
ART: Relief trust was formed by Amul (GCMMF). This trust
was formed for a specific reason, as there was a ruinous
earthquake of seven-point nine Richter scale at Kutch
district, Gujarat on 26th January 2001. It caused death of
thousand of people, injured people whereabout ten
thousand and around one lakh people were homeless,
there was also mass damaged of infrastructures. Art was
formed under the chairmanship of Dr. V Kurien. This relief
trust had a total donation of Rs. Fifty million for the

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reconstruction of damaged school buildings in Kutch areas
due to massive earthquake. The trust reconstructed total of
six schools which costed of Rs. Forty one point one million.
Afforestation: Amul have been celebrating the nation’s
Independence Day in a unique manner. They plant lakhs
of saplings across Gujarat which is an ambitious plan to
save the mother earth and make India green and
therefore rescuing us from the effects of global warming.
Special fact about the program is that the members of
amul have taken the oath to protect the saplings till it
[Link] intensive agriculture and dairying various
natural resources are getting consumer at a rapidity, over
the year especially in Gujarat India. Thus, Gujarat
cooperative milk marketing federation gave a serious
thought in and uncovered bold idea to get back our pure
nature. The focused idea is “One member, one tree”
plantation. This plan was directed on our 60th
Independence Day i.e., 15th of August 2007 and still
continuing [Link] every thirteen years of one
daplantation, they have planted around seven hundred
and thirty three lakhs of saplings in which treeshave been
[Link] complete this task a team was designed
constituting of representative of member unions were
formed. The team started the idea by heart including
farmer members of village diary cooperative societies.
The farmers enthusiastically agreed to the [Link]
smooth functioning of the plan, the design team marked
out road map.

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Execution team were formed at district union level to give
final shape and put the plan into action. Village level
coordinators were identified and they were trained to
streamline activity of tree plantation various awareness
materials were also [Link] entire plantation activity
was coordinated at all the three levels of Anand pattern:-At
Village-At District-At StateAfter flag hoisting ceremony each
member took an oath to plant to plant saplings and will
ensure that saplings will grow into trees and [Link]
year they planted eighteen-point nine lakh of saplings which
was just the [Link], Amul has a mark of
respect for our nation, wherein decided to continue such
event on occasion of Independence Day, every year.
Methodology
Members unions were informed about the procurement
of saplings nearly six month before the scheduled date.
There was continuous follow up about the activities of the
program by the member [Link] coordinator took
responsibilities of directing , assigning task force to each
member.
The milk unions placed a circular to the Village dairy
cooperative societies. This circular contained the details
regarding the preparation of digging pits, deciding the
place, taking care of the saplings etc .
The milk unions task force members took initiative and
contacted, communicated about the concept to the
village Dairy cooperative societies and they identifier

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village level Coordinator and assigned them their roles and
responsibilities.
There was good communication and unity in the team,
where the coordinators ensured that the saplings would
reach before three days to the village dairy cooperative
societies.
The sirens were to facilitate the gathering of producer
members on time at the Village Dairy Cooperative
societies premises, schools, common plots etc. for flag
hosting ceremony.
Milk unions opted the coordinator for the program and
organised a task force for a successful implementation
program.
After the flag hosting ceremony the tree plantation
programme was .
The coordinator prepared a press note about the
plantation program at member union level which was
given to the newspapers three days prior to boost morale
of producer members and to be mentally prepared for the
programme.
The producer members take an oath that they will take
responsibility and protect the saplings , till they become a
tree .
On August 15 after the milk collection process sirens will
predicted at village dairy cooperative societies,which
sounds like beating thali/utensils.
conducted by the members.

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 In many villages milk producers planted after
performing puja ( worship ).
To add in enthusiasm to the programme Chairman,
Managing directors and Board of Directors of Amul
participated in the plantation programme
After the completion of the programme the member
unions are asked to submit a report on Tree
plantation programme.
Member unions of Amul, conduct survey after every
five months to check out the survival rate of saplings.
Amul not only takes initiative to plant saplings but
also takes responsibility to take care of the saplings
and make sure the saplings are growing healthy to a
tree.
Amul have been awarded for their tree plantation by
1) “Amul Green” movement from international diary
federation, 2010 and prestigious green globe foundation
2012.
2) “Green Idol” under “Special Jury Award” from Danik
Bhaskar group.
3 “SRISHTI’S G- Cube” award for seven successive years
(2007-2013 and 2015)
4) Hercules category award, 2014 from Gujarat
innovation society.
5)Amul have been doing hallowed and true service to the
societ.

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 During pandemic 2020
During pandemic Amul is seamlessly maintaining the supply
chains. Many Businesses have struggled to maintain the
supply chains whereas Amul is likely to gain market [Link]
the lockdown was announced, Amul gave incentives for the
dairy plant workers, drivers, sales executives, distributors and
[Link] casual workers received between ₹100 to ₹125
extra cash support and distributor got an additional 35 paisa
incentive per liter of milk. Food and stay arrangements were
made for workers inside the dairy plant to avert labor
storages. Farmers of Amul as well as other dairy cooperative
were largely protected. The farmers received fair prices which
is close to 80% of the consumer prices. This pandemic proved
the strengths of the cooperative dairy industry, at resilient
supply chain built by Amul. Amul reached bent the union
home ministry, state farming departments to rearrange
passes for his or her workers and make sure that empty
trucks were allowed reciprocally.. Amul ensured the safety of
their workers.
> Customer satisfaction:Amul follow corporate social
responsibility(CSR). In order to fulfill CSR amul's entire
procurement, production, processing and marketing chain is
focused on human development involving producer, supplier,
worker, consumer and [Link] manufactures best
quality products at low cost which attracts the consumer.
Amul products are offered to all kinds of people from kids,
youth and adult including calorie and healing the conscious.
Product for youth and kids
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Chocolate milk under brand name of “Amul kool Koko”
mainly targeting the youths. Amul where the first ones to
launch different flavored milk. Amul ice cream products is
the best for kids and youth, with varied [Link] for
diabetic people.
India's first pro-biotic wellness ice cream and delights,
which are free from sugar for diabetic patients produced
by Amul.
Product for health conscious.
Amul launched low fat and low cholesterol bread spreads
for health conscious.
> Advertisement:
In this competitive world there is a lot of pressures on
copywriters to bring out ads which stand out from the
rest. We have watched many ads which are so creatively
done that it leaves a good feeling in us, Amul is one
among them. The ads of Amul is indirect and is
intellectually satisfying which audience solve it, they feel
happy for getting the witty message. This creates a
positive impact on the consumers where they get a
positive attitude towards the product. By creating
creative ads the sales of the company increases whereas
the company’s revenue also increases due to which even
farmers get good prices. Amul ads try to sensitise the
viewers by using humour which makes us love it. The
advertisements of Amul is all about latest happenings in
the world. The humour used in the ads make it popular,
thus providing a good proof for marketing in a satisfying
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way. Example:
“be Indian, bye Indian”The meaning of this phrase is “be
Indian, buy Indian “ . This slogan was under colonial rule
before India became independent in 1947, revolting
against foreign goods made from Indian raw materials.
> White revolution:
White revolution was the achievement of Kaira district milk
producers and cooperative union which also owns Amul and
operates it. The union success was mainly of patidars a
farming community which was led by Sardar Patel. Many
village separators which had been set up, led to the
problems of surplus skimmed milk which was of no use.A
German gave an idea where they began preparing casein and
exported it to Germany where they used it for industrial use.
This German was arrested during First World War. He had
shown this method to an enterprising young Parsi who meet
the high demand for butter and started manufacturing it in
1915. Polson had set up a model dairy by 1930 who had
enjoyed monopoly for many years. Amul dairy became an
indispensable adjunct of Anand union. Amul started as a milk
pasteurisation plant to the Bombay milk scheme which meet
to the milk requirements and production had not exceeded
to 500 Ibs a day. 1953 was a turning point which was the
winter production beings 250% of the summer so that Amul
had found surplus supplies. Amul connected the farmers to
the suppliers where as they got in more revenue and the
surplus milk was converted into cool milk, butter, cheese etc.

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Amul also:·
Amul distributes its profits and equitable returns to a
large number of farmers for long period of time.
Amul avoids inter- union conflicts.
They give opportunity for the union members to
cooperate in developing the products.
The board of controllers are drawn from the head of all
unions. The farmers are elected through village societies.
Conclusion:
Amul is the largest food company in India and across the
[Link] is a brand that is trustworthy of 1000 million
people. Amul’ main aim, the brand should not only be known
for milk, cheese and butter But a food brand. Amul had and
is still helping the farmers to earn good revenue from their
production. This cooperative society is not only helping
framers but also trying its best to help the society in every
possible way.

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GLOBALISATION
Amul has dominated the dairy market for years and is now
being countered by new entrants in the market which
surprisingly are giving a tough competition to it.
It’s facing competition from giant multinational companies to
local diaries with multiple brands preying on it but Amul with
it’s more strategic brand associations , greater supply chain
and technological innovations is hell bent on protecting it.
In order to keep it’s competition at bay, Amul has decided to
launch a 800 crore expansion project where in it will focus on
strengthening the supply chain of milk, technologically
upgrade it’s processing units and fortify the brand extension in
frozen snacks and sweets. It’s expansion strategy is driven by
giving a stiff competition to it’s competitors and it’s quest to
continue holding the first position in the dairy industry.
GCMMF is determined to establish Amul as a global player.
Amul was also the chief sponsor of the New Zealand cricket
team when they were playing for the Champions Trophy in
England. It got high distinctness as the chief sponsor of the
Black Caps, also by positioning itself with a country which is
known as the dairy capital of the world. Amul was also the
official sponsor for the Indian Rio contingent for the Olympics
[Link] is placed among the top 13 dairy companies of
the world in terms of milk processing as per International
Farm Comparison Network. Analysts believe that the task is
not only about keeping the procurement steady, but also to
increase consistently on a higher base. The rural societies run
small milk collection shops which buy milk from farmers twice
a day.

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They are not more than a kilometer from the actual farms
and pay about one dollar a for a normal cow's output.
Although this may not seem like a huge sum, but considering
the fact that most of the small farmers consider their cows to
be a ‘’side business”, believing that this money can make a
considerable amount of difference in their lives - even if they
own as little as one or two cows. The one dollar per day is
also after expenses, GCMMF also offers veterinary care and
nutrition to cows.
Considering the huge overhead costs of the company, more
than 80 percent of profits go back to farmers which only
compares to 36% in the United States. .
Amul, through GCMMF, has greatly increased incomes for
millions of people, and strengthened the supply of important
nutrition and calories for over a billion.
Amul, in the year 2004 placed itself on the racks of the top
international stores including Mustafa and Walmart in
Singapore after successfully establishing itself in the United
Arab Emirates. It wanted to expand and diversify itself
outside the country to test it’s quality and definitely compete
more effectively. At the same time Amul made sure to not
neglect its operations in India and also continued expanding
it’s operations in the [Link] has been selling its
products in the US market since 1998, and was in talks to
have a different counter for storinf and selling it’s products
with Walmart.

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Amul also hit the stores of Lanka Milk Foods (CWE) Ltd and
John Keels chain in Sri Lanka, and Choithram, Carrefour and
Lulu chains in the UAE," said Vyas. Amul is also marketing it’s
products in Hong Kong.
In the present date, Amul exports it’s milk and other dairy
products to about 20 countries, which includes the United
States, West Asian countries, Philippines, Thailand, Malaysia,
Hong Kong, Australia, New Zealand, Japan, Afghanistan,
neighbouring Bangladesh, Sri Lanka and Nepal, among the
others

Amul will also be the first dairy major from India to export it’s
products to Russia, it is waiting for formalities between the
Export Inspection Council of India, and its Russian
counterparts to finish, so that it can begin exporting to Russia.
However, RS Sodhi, Amul’s managing director has raised
concern about the fall in the prices of dairy commodities in
the global market.
Amul has been accorded the status of a “Trading House”. It
has also received the APEDA award from the Government of
India for Excellence in Dairy Product Exports from the past 13
years. Amul was the eighteenth largest dairy organization in
the world in 2001, and presently ranks 9th, it aims to rank one
among the top three dairy brands in the world.

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30
INNOVATION
The structure of Amul dairy cooperative society consists of
3 levels at the village level (18,000+ cooperatives) affiliated
to a milk union at the district level (18 member unions
covering 33 districts) which in turn is federated into a milk
federation at the state level. Milk collection is done at the
village dairy society, milk procurement and processing at
the District Milk Union and milk products marketing at the
state milk federation. The structure was evolved at Amul's
initial, solitary dairy and later adopted by GCMMF and
thereafter replicated all over the country under the
Operation Flood programme. It is called the Anand Pattern
which a good example of Innovative Thinking and the Dairy
Industry to followed it. Amul always focused on the
strengthening their different departments involving
distribution channels, diversifying products ,pricing their
products, introduction of new products,adding new
technology,focusingon quality,quantity and cleanliness.
Innovative Thinking System developed by BCon empowered
Amul to be more creative , it encouraged discussions among
the workers get more ideas which indirectly led to
innovation . Amul has innovated its model in many aspects
like procurement process , technological process,
management process, production department, research and
development, distribution process [Link] has made
tremendous pride and ownership in building and running a
large organisation. Today it stands as an inspiration to many
Amul has its success through its inovation and services.

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It also provided complete training and consulting services
with its own [Link] Gujarat Cooperative Milk
Marketing Federation (GCMMF), which markets the Amul
brand of milk and dairy products, has been awarded the
CNN-IBN “Innovating for a Better Tomorrow” [Link]
has been awarded for its innovative contribution to nation
building and for its role i. Creating a socio economic
revolution in rural India . This award was instituted by
network 18,CNN-IBN and CNBC TV18 to honour its
innovations that transformed the lives of millions of
farmers and has worked for creating a massive white
revolution throughout the countryRS Sodhi, Managing
director of GCMMF, received the prestigious award in New
Delhi, feels that this is a complete recognition of wisdom
and efforts of the company which subsequently worked
hard to make it the largest milk producer of the nation . He
also thanked the dairy farmers of Gujarat who created the
innovative Amul model. Talking about amul’s innovative
programs , it has launched innovative programmes like
the“cow to consumer”to make the dairy sector
contemporarily cool and commercially viable for today’s
nation which is highly interested in moving to cities and
reluctant to join the milk industry, the dairy MD [Link]
said .Comparing the milk consumption in India from 1970
to the present date , the consumption has drastically
increased from 111 gm to 350gm.

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33
Which is growing 2 percent per annum Reports also say
that the demand for milk by 2050 would touch 540million
litres and to produce this amount , it is very important to
make the dairy industry commercially viable for the current
[Link] specialists say they by 2050 , 50% of
India would be urbanised which means that there would be
more consumption and less production and people would
be more dependent on milk and to increase production
.Amul has modernised dairy farming using milking machines
,bulk milk coolers,modern watering system,modern shed
etc .Listing the programmes introduced by the company to
modernise dairy farming , the biggest innovation that Amul
is bringing in India’s dairy industry is through ‘Cow to
Consumer’.Under the ‘Cow to Consumer’ programme, Amul
creates a digital account for every farmer , when the farmer
goes to deposit milk at the collection centre the quality and
quantity of milk is assessed and updated on the card that
comes with the account. Depending upon the quantity and
quality, money is transferred to the account of the farmer
immediately which could be accessed by him through his
digital account .Amul has opened more than 26 lakh digital
accounts for farmers in the last few months and 40-45%
farmers have been covered under the scheme
The main reason behind launching the scheme is to attract
the youth and make use of the latest technologies
[Link] introduced another programme to attract
the youth , it is called the Dairy Entrepreneurship

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34
where a person can farm 20-30 cows or buffaloes and this
can financed by Amul , and by doing this one can earn around
40,000 per month through commercial farming which is more
than the money earned by people in urban India . The
company feels that it is high time that the youth realises the
business opportunities in animal husbandry especially when
the land is decreasing and the population is increasing.
Making the youth take part in the dairy industry is one of the
important ways to increase production .Talking about amul’s
advertisements, they are immensely popular for the catchy
slogans and the famous Amul girl ! It has taken well on social
media. It is one of those free brands which has been featured
by celebrities like Deepika Padukone and Ranveer Singh
without any financial promotion Amul created a cartoon of
Deepika Padukone at Cannes in her Giambattista Valli tulle
gown with the title “Gori Tera Gown Badda Nyaara,”

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STRATEGY
Amul's marketing strategy:

The Brand: The most important strategy of Amul is it’s

branding. The tagline Amul-The taste of India never fails to
ring a bell in the audience’s mind. This tagline destroyed the
notion that bread and butter are a part of only the British
breakfast and pulled nationalism in it. Amul markets all it’s
products under a single name which has brought down the
cost of it’s advertising to 1% of it’s revenue.
Branding components of Amul
1. Brand Name: Amul is not quite a generic brand for the diary
category but it never fails to pull a chord- be it Urban or rural
2. Corporate Branding: Amul being the primary brand for
GCMMF, also is the corporate brand of the company
3. Packaging and Design: Amul has been constantly
revamping it's packaging to reach a larger audience
4. Added features: Amul doesn't really provide any tangible
added features but it has an emotional value connected to it.
The values that it conveys can be comprehended
through it's slogan.

Product pricing:The pricing of Amul is very strategically

planned by making it affordable to the target audience.
Increasing the price of the products in accordance with the
income of the customers has helped it to retain it’s
customer base. At times, Amul has also used very competitive
market strategies like the one-on-one offer for products facing

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37
 heavy competition like it’s Ice creams. Considering the fact that
Amul is a co-operative, it focuses on both the consumer’s
welfare and it’s profits but Amul being an FMCG company
greatly planned it’s production,storage and distribution which
came out to be expensive yet it sold it’s products at affordable
prices by well planned logistics and well executed supply chain
model.
Amul has a 3 tier co operative structure:
1. Cooperatives producing milk at the village level
2. Milk unions and processing centers at the district level
3. Milk federations responsible for consolidation at the state
level.
This model gave maximum returns to the suppliers . The
increase in price resulted in increase in their income.

Advertising strategy: Without advertising, the target audience

wouldn’t come to know of Amul and it’s advertisements have
proved to be a great factor for it’s success. Amul is in the
Guiness record for running the longest advertising campaign. It’s
advertising strategies are so strong that it is the first company
that comes to mind when someone mentions of diary. Amul
generally uses the current affairs with a hint of sarcasm and wit
for it’s promotion. Amul has also come up with various other
taglines such as –‘Amul doodh peeta hai India’, ‘Har ghar Amul
ghar’ etc.

Amul doubled it's spending on marketing across media during

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38
the tlockdown. According to a report. Amul's ad volume reported
a 316% increase when compared to the past year. It sped up it's
advertising keeping in mind that families would watch T.V
together in the lockdown and this strategy proved to be a
jackpot for them as ‘Ramayan’ and ‘ Doordarshan’ was back in
India and they immediately jumped in to bag the sponsorship
deal getting 10 times more viewership than IPL at one tenth of
the costs.

Types of media used:

Print medium: Amul started advertising it’s chocolates first
through the print media in the 1970s which did not fare as
expected and failed to create the desirable buzz in the market. It
also advertised it’s chocolates on Indrajal comics, which was
launched by The Times of India in 1964, which became more
popular in the 1970s and 1980s.

Digital marketing: Although, in the recent years Amul’s presence

in the television ads has declined , Amul has been advertising it’s
products digitally through facebook, Instagram etc. It’s digital
marketing strategy also made sure to connect with it’s
customers and take care of their complaints rigorously.
Amul food festival has been taking place since the past few years
between October and December in around 50,000 [Link]
politics, to sports and entertainment , local news to
International news, Amul's moppet has content for everything.

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39
The Amul girl wearing the polka dot frock was the creation of
Sylvester da Cunha, who wad the MD of the advertising agency
AS. The true beauty of it's ads lies in the fact that unlike the
other brands having celebrity brand ambassadors a character
was created and associations were built around it. The witty one
liners of Amul's ads revolving around the ongoing issues have
caught the attention of the audience instantly creating a
connect with the people with it's comical humour.
The Amul has become iconic in the Indian advertisements'
world.

Umbrella brand: Amul follows the strategy of Umbrella

branding. It acts as a general brand having numerous product
categories by different unions like: liquid milk, milk powders,
butter, ghee, cheese, cocoa powder etc

It has sub brands under it consisting of Amulspray, Nutramul

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40
Product portfolio: One of the most striking marketing strategy of
Amul is it’s product portfolio. The large variety of products of
Amul cater to a larger audience. Amul unlike the other brands
has secured it’s standing in the overall dairy market by targeting
the economic classes.

Innovation : Amul has never failed to surprise it’s audience

coming up with new and innovative products for the different
range of customer segments. For it’s continuous innovation,
Amul also won the “CNN-IBN innovating for Better Tomorrow
Award” and “ World Dairy Innovation Award” in the year 2014.

Segmentation: The segmentation of Amul is the mass population

and in general, we can find people of all different age groups and
demography enjoying Amul products. This is because Amul is not
only present in Ice cream, but also in Milk, Butter, Cheese
and other such products.
Targeting: The target audience are the regular middle
class people. This is because the high end customers have a
lot of high end products as an alternative in ice cream to
consume. However, for products like Butter and cheese,
both high
end and low end customers are the target.
Positioning: In terms of positioning, Amul has done well in mind
positioning, it is the first brand which comes in mind
when someone is talking of Ice cream, Milk, Cheese, Butter o
or any other milk base product.

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41
BCG matrix: When we look at the BCG matrix, Amul has
certain products which are stars whereas others are cash
cows. Amul chocolates are question marks because they
which a very low market share due to the intense competition
in a growing market. Amul ice cream and Amul butter can
said to be a cash cow because they have very high market
share and the market is [Link] the other hand, Dairy
products like Milk, buttermilk, cheese, lassi, amul kool etc
have a lot of competition in their niche.
However, when compared with the same type of product,
Amul has a high market share. Thus, these products have
proved to be stars for Amul.

Technological initiatives:Amul established an automatic

Milk collection system that would identify and test the
quality/quantity of milk. This could lead to time saving since
over 1000 producers enter a village cooperative each day and
cause increased transparency.
Enterprise-wide Integrated Application Systems are used to
align various sub software systems in place. A Geographic
Information Systems has also been established to view supply
disparities in real time. Recently, cyber stores have been
launched too.

Distribution strategy in the Marketing strategy of Amul –

Amul concentrates on breaking the bulk. It supplies in huge
amounts to its cost & freights, which are required to have the

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42
right arrangements to store Amul products in bulk and
transfer products to distributors who in turn give it to
retailers.
Amul also has a direct sales team which sells to modern retail
stores. Besides this, the company has exclusive Amul stores
which sell all products of Amul brand.

Rural marketing strategy: Amul derives 70% of it’s sales from

the
rural [Link] has used various strategies to support the
rural farmers by providing them insurance against the natural
calamities,establishing telecenters and technology villages,
purchasing all milk products from member farmers and
providing the best price to the best farmer for the milk
produced.

Producing products according to the local taste: One of

Amul's primary strategy is to suit the products according to
the local taste. They have diaries in all the parts of the
country for example: products for Delhi are made in Delhi,
there are five different types of Ghee under Amul, made from
separate processes and marketed as per the region.

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43
NAVIGATING THE
LOCKDOWN
Amul has definitely taken the best care of their workers
and have given indispensable services to the nation during
the lockdown . On 25th March when India announced a
total lockdown while Amul had new ideas of supply chain
like C2C (cow to consumer) and B2C (buffalo to consumer)
supply [Link] the lockdown was announced , the
company got in touch with the Union Home Ministry and
State Animal Husbandry Departments to arrange travel
passes for the vehicles and the workers who are a part of
delivering products. To make sure of uninterrupted supply
of Amul products , they had to ensure that the district
collectors were present at the packaging factories .Amul
had arranged for cattle feed to be transported from states
like Haryana and Punjab for its farmers in Gujarat. 45% of
its products were moved via freight trains, which cut down
transit [Link] 22 March, three days before the lockdown
was announced, worried about the labourers who refused
to work at the plant, Vijay shete ( Head of Amul’s Taloja
plant in Mumbai ) and his staff had to work till 3am.
Intially when the lockdown was announced , the entire
country would have been panicked thinking about the
essentials the need and more doubts hence To reduce the
panicking situation faced by the people of the country , RS
Sodhi immediately made a video and sent it to the News
channels Around the time Sodhi recorded the video
message which was sent out to news channels For the
residents of Lunglei, a small hill town in north-eastern

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45
 India’s Mizoram state, 9pm is well past midnight; shops
usually down their shutters by six in the evening, but this
wasn’t any other day. That chain is an extinct one. The
Gujarat Cooperative Milk Marketing Federation or GCMMF,
which trades products under the Amul brand is owned by 3.6
million farmers. Of these, around 2.6 million farmers bring
their milk twice daily to 18,600 village societies from where
chilled milk is transported to district milk unions for
processing into packaged milk and value-added products.
The products then reach over a billion consumers daily via
10,000 distributors and a million [Link] also stated
that a week before the lockdown they had started intensive
preparations with the supply chain partners he also added
that social distancing ,sanitisation and other safety protocols
were introduced in the villages 2 weeks before the lockdown
itself,and after the lockdown was announced, Amul
announced cash incentives for its retailers, sales executives
,workers, distributors,drivers, etc. distributors are given 35
paid per litre of milk and the casual workers are given
around 100rs to 125rs as an extra support during the
pandemic. For some of them even meals and accommodation
was arranged to compensate the labour shortage during the
lockdown . They also ensured that the workers were given
warm water , steam and other Ayurvedic medicines to boost
their immunity .

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46
 Amul was so successful that even after first 3-4 months
of the pandemic the company hadn’t reported a single
COVID-19 case ,and not a single litre of milk was wasted.
The plant could seamlessly handle over 500,000 litres of
milk it received daily.

Taste of India to taste of the World | Navigating

Lockdown

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47
Amul gallery
 TELEPHONE INTERVIEW
WITH AN AMUL EMPLOYEE

In order to access the interview ,scan the

below QR code:

Taste of India to taste of the World

50
 Bibliography
Amul classic website
Brand yuva
Business world
Civil society
Economic times
Financial Express
HBS
[Link]
India Mart
Indian Express
ISBInsight
Livement
[Link]
Research Gate
She the people
Silicon India
Slide share
Start up Talky
Times of India
Tripple Pundit

Researched by :
Esha Goud Prathibhashree R
Neelufer Raza Keerthana Reddy
Nikhita Vuppalapati

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51
 Reviews
This book has helped me see Amul from a different light,
the level of research done by the authors is laudable .
~Noorain Raza
This book has beautifully captured the journey of Amul
from a small co-operative to one of the largest co-
operatives to have existed. Overall, it was very intriguing.
~Trisha Gopinath
The book has captured everything that it could have about
Amul with topics ranging from it's ethical culture to it's
creative branding strategies, a must read for anyone who
wants to know more about Amul.
~Jahanavi V
The work that has gone into this book is colossal, the
authors have done a great job in writing every minute detail
which sets Amul apart from the others.
~Muktha L
Amul packed in a book.
~Prathap Bhat
This book kept me hooked by increasing the curiosity to
explore more about Amul.
~Mithun Reddy
This book inspired me in many [Link] book wrapped me
around itself by inspiring me and leading be to believe that
anything can be achieved with sincerity and perseverance.
~Nida Kouser

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