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AmulFrom Wikipedia, the free encyclopedia

This article is about the Indian dairy cooperative. For the ancient city of mul along the Oxus,

seeTrkmenabat. For the city in Iran, seeAmol.

This article has multiple issues. Please helpimprove itor discuss these issues onthetalk page.

This article needs additionalcitationsforverification.(January 2012)

This article'sintroductionmay be too long for its overall length. (December 2012)

This article may betoo longto read and navigate comfortably. (December 2012)

This article reads likea news release, or is otherwise written in an overly promotionaltone. (December 2012)

Amul (Anand Milk Union Limited)

Type Cooperative

Industry Dairy

Founded 1946

Headquarters Anand, Gujarat, India

Key people Chairman, Gujarat Co-operative Milk Marketing

Federation Ltd. (GCMMF)

Products See complete products listing

Revenue US$2.15 billion (201011)

Employees 735 employees of Marketing Arm. However, real pool

consist of 3.03 million milk producer members[1]

Website www.amul.com

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The Amul Plant at Anand featuring the Milk Silos

Amul is anIndiandairy cooperative, based atAnandin the state ofGujarat, India.[2]The word Amul() is

derived from theSanskritword Amulya(), meaning invaluable.[3]The co-operative is also sometimes

referred to by the unofficial backronym: Anand Milk Union Limited.

Formed in 1946, it is abrandmanaged by acooperative body, the Gujarat Co-operative Milk Marketing

Federation Ltd. (GCMMF), which today is jointly owned by 3.03 million milk producers in Gujarat.[4]

Amul spurredIndia's White Revolution, which made the country the world's largest producer of milk and milk

products.[5]In the process Amul became the largest food brand in India and has also ventured into markets

overseas.

Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973-2006), is credited with the

success of Amul.[6][edit]

History

TheKaira District Co-operative Milk Producers' Union Ltd.was registered on December 1, 1946 as a response

to the exploitation of marginal milk producers by traders or agents of the only existing dairy, the Polson

(brand)dairy, in the small town ofAnand(inKairaDistrict ofGujarat).[7]Milk Producers had to travel long

distances to deliver milk, which often went sour in summer, to Polson. The prices ofbuffaloand cow milk were

arbitrarily determined. Moreover, the government at that time had given monopoly rights to Polson to collect

milk from Anand and supply it to Bombay city.[8][9]

Angered by the unfair and manipulative trade practices, the farmers of Kaira approachedSardarVallabhbhai

Patelunder the leadership of local farmer leaderTribhuvandas K. Patel. He advised them to form

acooperativeand supply milk directly to the Bombay Milk Scheme instead of Polson (who did the same but

gave them low prices).[10]He sentMorarji Desaito organise the farmers. In 1946, the milk farmers of the area

went on a strike which led to the setting up of the cooperative to collect and process milk .[9]Milk collection was

also decentralized, as most producers were marginal farmers who could deliver atmost 12 litres of milk per

day. Cooperatives were formed for each village too.[11]

The Cooperative was further developed and managed by Dr.Verghese Kurienalong withH.M. Dalaya.

Dalaya's innovation of making skim milk powder from buffalo milk for the first time anywhere in the world and a

little later, along with Kurien's help, making it on a commercial scale ,[12]led to the first modern dairy of the

cooperative at Anand, which would successfully compete against established players in the market.

The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to Anand's

neighbourhood in Gujarat, and within a short span, five unions in other districts Mehsana, Banaskantha,

Baroda, Sabarkantha and Surat were set up.[9]In order to combine forces and expand the market while saving

on advertising and avoid competing against each other, the GCMMF, an apex marketing body of these district

cooperatives was set up in 1973. The Kaira Union which had the brand name ofAmulwith it since 1955,

transferred it to GCMMF.[13]

[edit]Company info

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The GCMMF is the largest food products marketing organisation of India. It is the apex organization of the

Dairy Cooperatives of Gujarat. Over the last five and a half decades, Dairy Cooperatives in Gujarat have

created an economic network that links more than 3.1 million village milk producers with millions of consumers

in India[citation needed] . These cooperatives collect on an average 9.4 [citation needed] 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 scheduledcastes.[citation needed]

The turnover of GCMMF (AMUL) during 201011 was 97.74 billion (US$1.78 billion). It markets the

products, produced by the district milk unions in 30 dairy plants. 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. [citation needed]

On 18 Aug 2012, Vipul Chaudhary of Mehsana district's milk cooperative was elected chairman of GCMMF,

following a court's intervention.[14]

[edit]The Three-tier "Amul Model"

This section needs

additionalcitationsforverification.(February

2012)

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

[edit]Village Dairy Cooperative Society (VDCS)

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

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Thus, the VDCS in an independent entity managed locally by the milk producers and assisted by the District

Milk Union.

[edit]District Cooperative Milk Producers Union (Dugdh Sangh)

The main functions of the Union are as follows:

Procurement of milk from the Village Dairy Societies of the District

Arranging transportation of raw milk from the VDCS to the Milk Union.

Providing input services to the producers like Veterinary Care, Artificial Insemination services, cattle-feed

sales, mineral mixture sales, fodder & fodder seed sales, etc.

Conducting training on Cooperative Development, Animal Husbandry & Dairying for milk producers and

conducting specialised skill development & Leadership Development training for VDCS staff &

Management Committee members. Providing management support to the VDCS along with regular supervision of its activities.

Establish Chilling Centres & Dairy Plants for processing the milk received from the villages.

Selling liquid milk & milk products within the District

Process milk into various milk & milk products as per the requirement of State Marketing Federation.

Decide on the prices of milk to be paid to milk producers as well on the prices of support services provided

to members.

[edit]State Cooperative Milk Federation (Federation)

The main functions of the Federation are as follows:

Marketing of milk & milk products processed / manufactured by Milk Unions.

Establish distribution network for marketing of milk & milk products.

Arranging transportation of milk & milk products from the Milk Unions to the market.

Creating & maintaining a brand for marketing of milk & milk products (brand building).

Providing support services to the Milk Unions & members like Technical Inputs, management support &

advisory services.

Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.

Establish feeder-balancing Dairy Plants for processing the surplus milk of the Milk Unions.

Arranging for common purchase of raw materials used in manufacture / packaging of milk products.

Decide on the prices of milk & milk products to be paid to Milk Unions.

Decide on the products to be manufactured at various Milk Unions (product-mix) and capacity required for

the same.

Conduct long-term Milk Production, Procurement & Processing as well as Marketing Planning.

Arranging Finance for the Milk Unions and providing them technical know-how.

Designing & Providing training in Cooperative Development, Technical & Marketing functions.

Conflict Resolution & keeping the entire structure intact.

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Today, there are around 176 cooperative dairy Unions formed by 1.25lakhdairy 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, Milma in

Kerala, Gokul in Maharashtra, Saras in Rajasthan 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[citation needed].

[edit]Impact of the "Amul Model"

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 Indias 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 Indias 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 countrys milk production tripled between the years 1971 to 1996. Simila rly, 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:

is has multi-dimensional impacts

importance of getting government out of commercial enterprises

importance of market failure in agriculture

power & problems of participatory organisations

importance of policy correct

[edit]Achievements of the "Amul Movement"

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1. The dairy cooperatives have been able to maintain democratic structure at least at the grass-root level

with the management committee of the village level unit elected from among the members in majority

of the villages.

2. The dairy cooperatives have also been instrumental in bridging the social divide of caste, creed, race,

religion & language at the villages, by offering open and voluntary membership.

[edit]Achievements of GCMMF

3.1 million milk producer member families

15,760 village societies

15 District Unions

9.4 million liters of milk procured per day

150 million (US$2.73 million) disbursed in cash daily

GCMMF is the largest cooperative business of small producers with an annual turnover of 53 billion

(US$964.6 million)

The Govt. of India has honoured Amul with the Bes t of all categories Rajiv Gandhi National Quality

Award.

Largest milk handling capacity in Asia

Largest cold chain network

48 Sales offices, 5000 wholesale distributors, 7 lakh retail outlets

Export to 37 countries worth 150crore(US$27.3 million)

Winner of APEDA award for eleven consecutive years[15]

[edit]The Amul brand

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50 sales offices

spread all over the country, more than 5 000 wholesale dealers and more than 700 000 retailers.

Amul became the world's largest vegetarian cheese[16]and the largest pouched-milk brand.

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 SAARCneighbours, Singapore, The

Philippines, Thailand, Japan and China, and others such asMauritius, Australia, Hong Kong and a few South

African countries. Its bid to enter the Japanese market in 1994 did not succeed, but it plans to venture again.[17]

In September 2007, Amul emerged as the leading Indian brand according to a survey by Synovate to find out

Asia's top 1000 Brands.[18]

In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector inThe Brand Trust

Report,[19]

published by Trust Research Advisory.rediff.com; "India's top 20 brands: Amul is No. 1"

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[edit]Products

Amul's product rangeincludes milk powders, milk, butter,ghee, cheese,Masti Dahi,Yoghurt,Buttermilk,

chocolate,ice cream,cream,shrikhand,paneer,gulab jamuns, flavoured milk, basundi, Amul Pro brand and

others. Amul PRO is a recently launched brown beverage just like bournvita and horlicks offering whey protein,

DHA and essential nutrients to kids along with its chocolatty taste. In January 2006, Amul launched India's

firstsports drinkStamina, which competes withCoca Cola'sPoweradeandPepsiCo'sGatorade.[20]Amul also

offers mithaimate which successfully competes with milkmaid by nestle by offering more fat% at lower price.

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 Icecreams are made from milk fat and thus are icecreams in real sense of the word, while many brands

in India sell frozen desserts made from vegetable fat. Amul cares for its consumers and tries to offer them the

best products at best price.

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing Award for 2007.[citation

needed]

[edit]Mascot

Since 1967[21]Amul products'mascothas been the very recognisable "Amul baby" orAmul girl(a chubby

butter girl usually dressed inpolka dotteddress) 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

likegheeand milk.

[edit]Advertising

An Amul butter ad on Pakistan'sKargil Warfiasco. The image shows the "Amul baby" in betweenGeorge

FernandesandAtal Bihari Vajpayee.

In 1966, Amul hiredSylvester daCunha, then managing director of the advertising agency ASto design a new

ad campaign for Amul Butter. daCunha designed an ad campaign as series of hoardings with topical ads,

relating to day-to-day issues.[22]The campaign was widely popular and earned aGuinness world recordfor the

longest running ad campaign in the world. In the 1980s, cartoon artist Kumar Moreyand script writerBharat

Dabholkarhad been involved with sketching the Amul ads; the latter rejected the trend of using celebrities in

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l63.jpghttp://en.wikipedia.org/wiki/File:Amul63.jpghttp://en.wikipedia.org/w/index.php?title=Bharat_Dabholkar&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bharat_Dabholkar&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Kumar_Morey&action=edit&redlink=1http://en.wikipedia.org/wiki/Guinness_world_recordhttp://en.wikipedia.org/wiki/Amul#cite_note-amulad-22http://en.wikipedia.org/w/index.php?title=Sylvester_daCunha&action=edit&redlink=1http://en.wikipedia.org/wiki/Atal_Bihari_Vajpayeehttp://en.wikipedia.org/wiki/George_Fernandeshttp://en.wikipedia.org/wiki/George_Fernandeshttp://en.wikipedia.org/wiki/Kargil_Warhttp://en.wikipedia.org/w/index.php?title=Amul&action=edit&section=13http://en.wikipedia.org/wiki/Gheehttp://en.wikipedia.org/wiki/Polka_dothttp://en.wikipedia.org/wiki/Amul_girlhttp://en.wikipedia.org/wiki/Mascothttp://en.wikipedia.org/wiki/Amul#cite_note-21http://en.wikipedia.org/w/index.php?title=Amul&action=edit&section=12http://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Amul#cite_note-20http://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Poweradehttp://en.wikipedia.org/wiki/Coca_Colahttp://en.wikipedia.org/wiki/Sports_drinkhttp://en.wikipedia.org/wiki/Gulab_jamunhttp://en.wikipedia.org/wiki/Paneerhttp://en.wikipedia.org/wiki/Shrikhandhttp://en.wikipedia.org/wiki/Creamhttp://en.wikipedia.org/wiki/Ice_creamhttp://en.wikipedia.org/wiki/Buttermilkhttp://www.amul.com/desserts-yogi-yoghurt.htmlhttp://www.amul.com/cooking-mastidahi.htmlhttp://en.wikipedia.org/wiki/Gheehttp://en.wikipedia.org/w/index.php?title=List_of_Amul_products&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Amul&action=edit&section=11

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advertisement campaigns. Dabholkar credited chairman Verghese Kurien with creating a free atmosphere that

fostered the development of the ads.[23]

Despite encountering political pressure on several occasions, daCunha's agency has made it a policy of not

backing down. Some of the more controversial Amul ads include one commenting on Naxalite uprisingin WestBengal, on theIndian Airlinesemployees strike, and the one depicting the Amul butter girl wearing aGandhi

cap[22]

Amul hiredDraftFCB+Ulkafor the brands of Amul milk, chocolates, paneer, ghee, ice-cream.

[edit]In popular culture

The establishment of Amul is also known asWhite Revolution. The White Revolution of India inspired the

notable Indian film-makerShyam Benegalto base his filmManthan(1976) on it. The film starredSmita

Patil,Girish Karnad,Naseeruddin ShahandAmrish Puri. The film itself was financed by over five lakh ruralfarmers inGujaratwho contributed Rs 2 each to the film's budget. Upon its release, these same farmers went

in truckloads to watch 'their' film, making it a commercial success. ,[24][25]the film was chosen for the

1977National Film Award for Best Feature Film in Hindi .

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