ANAND MILK UNION LIMITED

ROLE OF POLSON
• Named Pestonji Edulji Dalal, POLSON, was a
Parsi from Bombay
• Poverty drove him to seek more profitable
ways of earning a living, but the young man
had a natural aptitude for business as well
• He found a market for his fresh ground coffee
and sold it under the reassuringly English
sounding name of POLSON
 MILKMEN OF KAIRA
• Polson knew KAIRA well, and knew it to
be overflowing with milk that was rich in
fat
• Organize the collection of cream, through
agents, from villagers in charotar
• In Bombay, this cream was converted into
butter that passed the quality tests for
supply to the British and Indian armies
UNSATISFACTORY MILK PRODUCTION

• MILCH CATTLE
• PRIMITIVE CHILLING FACILITIES AND
LACK OF TRANSPORT SUPPORT
 DISSATISFIED MILKMEN
• Milk producers forced to sell at the price that
was offered to them, which was frequently no
more then 5 annas a litre
• Milk production varied by seasons
• Milk contractors and traders frequently
combined money lending with milk trading, to
keep farmers debt-stricken
ROLE OF SARDAR VALLABHAI PATEL
• He advised, the milk producers should stop
selling milk to Polson’s agents.
• The producers should sell their milk to a
cooperative that would own and run a milk
processing plant .Thus ,cooperative society of
milk producers would be formed, with milk
societies in the villages and headquarters at
Anand.
 AGITATED MILKMEN
• Until the government undertook to buy milk
from the producer’s cooperative,farmers
would refuse to sell milk to any contractor in
Kaira

• The milk strike achieved its purpose.After

15milkless days the government gave in
 TRIBHUVANDAS
• Tribhuvandas, who was given the task of
framing the bylaws, on December 14,1946,
had the satisfaction of seeing the Kaira District
Cooperative Milk Producer’s Union Limited
(KDCMPUL) registered
 DR. VERGHESE KURIEN
• Kurien was born in Calicut on November26,1921, and
obtained Bachelor of Science degree from Loyola College,
Madras with seventh rank in presidency
• Got a scholarship to study dairy engineering in the USA
• On returning to India he had an appointment letter in his
pocket for a job at Union Carbide’s Calcutta factory but he set
off for Anand to take his posting as a dairy engineer, at the
Dairy Research Institute
• Kurien’s contract with Kaira Cooperative took effect on
January 1,1950.
• The world over, it is Kurien who is better known to many as
the maker of AMUL and all that grew out of Amul.
 SH. HM DALAYA
• H M Dalaya (born on October 22, 1921) was a Yadav whose
family had migrated from Mathura to Sind and lived in
Karachi until the partition
• Dalaya’s family owned the Balaram Dairy in Karachi and their
milk trade flourished
• In 1944, Dalaya went to study dairy technology in the US
after obtaining his bachelor degree from Poona Agricultural
College
• At Michigan State University, Dalaya studied dairy technology
under Professor G M Trout, and made friends with Kurien.
• On his return to India, Kurien persuaded Dalaya to give up his
plans of returning back to the US and persuaded him to take
charge of Kaira Cooperative’s pasteurizing plant.
 A NEW BEGINNING
•The cooperative was further managed by
Kurien and Dalaya

•The first modern plant of the Kaira union

was established at Anand

•In 1955,a few months before the dairy was

inaugurated Kurien realized the need for a
brand name
 FORMATION OF AMUL
• In Anand, word was circulated among friends and members of
Kaira Cooperative that a brand name was required
• It was derived from “amulya”, which in Sanskrit, Gujarati
and many other languages means priceless and implies
matchless excellence
• As an Indian name, it associated itself with pride in swadeshi
goods, a striking contrast to the English sound of Polson
• The name was short,memorable and easily pronounced
• It could also serve as an acronym for the organisation-the
unusable KDCMPUL( KAIRA DISTRICT COOPERATIVE
MILK PRODUCER’S UNION LIMITED) taken from
Cooperative’s full name, could be substituted by AMUL,
standing for ANAND MILK UNION LIMITED
AMUL : 3-TIER MODEL
 WHY SUCH A MODEL??

Delegate various functions

Eliminate internal competition
To promote economic equality

The Amul Story Manthan - mero gaam katha

parey.flv
 VDCS
 Milk producers having surplus come together
 to form VDCS
 Membership of milk producers of the village
 Governed by an elected Management
Committee consisting of 9 to 12 elected
representatives of the milk producers
 FUNCTIONS OF VDCS
 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
 Selling liquid milk for local consumers of the village
 Supplying milk to the District Milk Union
 DISTRICT UNIONS
 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 union.
 membership of Village Dairy Societies of the
District .
 Governed by a Board of Directors consisting
of 9 to 18 elected representatives of the Village
Societies and a Managing director.
 Procurement of milk from the Village Dairy
Societies of the District
 Arranging transportation of raw milk from the
VDCS to the Milk Union.
 Conducting training on Cooperative
Development, Animal Husbandry & Dairying for
milk producers and conducting specialized skill
development & Leadership Development training
for VDCS staff & Management Committee
members
 FEDERATIONS
 Milk Unions of a State are federated into a
State Cooperative Milk Federation
 It has membership of all the cooperative Milk
Unions of the State
 governed by a Board of Directors consisting
of one elected representative of each Milk
Union and a Managing director
 FUNCTIONS OF FEDERATION
 Marketing of milk & milk products processed /
manufactured by Milk Unions
 Establish distribution network for marketing of milk
& milk products
 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
 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
 Arranging Finance for the Milk Unions and providing
them technical know-how
 Designing & Providing training on Cooperative
Development, Technical & Marketing functions
 Conduct long-term Milk Production, Procurement &
Processing as well as Marketing Planning
 AMUL
PRODUCTS
Bread Spreads Milk Drinks

PRODUCTS

Powder Milk Fresh Milk

 Cheese For Cooking

PRODUCTS

Desserts Health Drinks

 “utterly butterly
delicious Amul”

Amul’s Advertising
Campaign- The
World’s Longest
Running

1964, Amul Moppet

Girl
1979, first escalator
in Mumbai

1986, 40 years of
independence
 1991, Narasimha Rao
becomes PM

1991,FM Manmohan
Singh delivers maiden
Budget
 1992, Bombay riots

1996, Infighting within

Coalition
2008, Nano debuts at
9th Annual Expo,
Delhi

2009, Satyam Scandal

June 7,2010, Bhopal
Gas Tragedy Verdict

2010, New Rupee

Symbol
 IMPACT OF OPERATION FLOOD
• Operation Flood is the most beneficial project funded
by the world bank anywhere in the world

• It invested Rs. 20 billion in the Operation Flood

Programme

• This contributed to an increase in milk production by

40 MMT(million metric ton)

• Since then there has been an incremental return of Rs.

400 billion annually
 IMPACT OF AMUL
• 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:
The role of dairying in poverty reduction
The fact that rural development involves more
than agricultural production
The value of national ‘ownership’ in
development
The beneficial effects of higher incomes in
relieving the worst aspects of poverty
The capacity of dairying to create jobs
The capacity of dairying to benefit the poor at
low cost
The importance of commercial approach to
development
The capacity of single-commodity projects to
have multi-dimensional impacts
 The importance of getting government
out of commercial enterprises

 The power & problems of participatory

organisations

 The importance of policy making

ACHIEVEMENT OF AMUL MOVEMENT
 The dairy cooperative movement has also encouraged
Indian dairy farmers to keep more animals, which has
resulted in the 500 million cattle & buffalo population
in the country – the largest in the World.

 This movement has garnered a large base of milk

producers, with their membership today boasting of
more than 13 million member families.

 The movement has spread across the length and

breadth of the country, covering more than 125,000
villages of 180 Districts in 22 States.
 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.
 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.
 The dairy cooperatives have been successfully
propagating the concepts of scientific animal
husbandry & efficiency of operations, which has
resulted in low cost of production & processing of
milk.
 The movement has been successful because of a well-
developed procurement system & supportive federal
structures at District & State levels
 Dairy Cooperatives have always been proactive in
building large processing capacities, which has further
propelled growth of milk production
 The dairy cooperatives are among those few institutions
in India, which still cherish a strong Cooperative
identity, values and purpose. They still boast of idealism
& good will of members and employees
 The dairy cooperatives have removed the poor
farmers of India from the shackles of agents &
middlemen and provided an assured market for their
produce. As these are the institutions run by farmers
themselves, it has also resulted in fair returns to the
members for their produce

 Dairy cooperatives have been able to create a market

perception of honesty & transparency with their
clean management
 SWOT ANALYSIS

STRENGTHS
Largest food brand in India and Asia

High quality and low price

Introduced TQM

World’s largest pouched milk brand

Highly diverse product mix

 WEAKNESSES

Strong dependency on weak infrastructure

Risk of highly complex chain

Short Shelf life of its products

Alliance With third parties

 OPPORTUNITIES
 Penetrate international markets

 Use internet to sell its products

 Diversify product portfolio to enter

into new product categories
 THREATS

Rising prices of milk

Competition from MNCs

Ban on export of milk

powder
WHAT MORE CAN AMUL DO?
 Launch new products

Popularize certain products

like gulaab jamun, chocolates
which are not as popular as the
other products of amul.

Can penetrate better in rural

areas through advertising.
 THE FUTURE OF AMUL
 MISSION 2020 : Amul’s vision for the next 10 years
 This plan envisages that the dairy cooperatives of Gujarat
will have a group turnover of Rs. 27000 crores by the year
2020. This will be a three-fold increase over the current group
turnover of approx. Rs. 9600 crores
 With further expansion of cooperative network Milk
production in Amul’s milk shed area will increase at an
annual growth rate of 4%
 Through expansion of distribution network, creative
marketing, consumer education and product innovation,
Amul hopes to leverage effectively on rising income levels
and growing affluence among Indian consumers
 Expanding markets for existing products
 Tapping the rising demand for new value-added
products
 Multi-fold capacity expansion for major product
categories- milk powders, Ice-cream, paneer,
cheese, ethnic sweets, curd, ghee and other dairy
products
 Provide nutritious feed to milch animals
 Expand its cattle feed manufacturing capacity,
more than four times to 12000 MTs per day, by
2020
 Amul is well poised to lead the Indian dairy
cooperative sector to a position of eminence in our
national economy

 Its efforts will ultimately serve to bolster the rural

economy, which can then create an effective shield
to protect our nation from any future economic
crises
Thank you