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2. Introduction
The largest food brand in India and world's Largest Pouched Milk Brand ‘Amul’ is a brand name managed by
Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).
This name has its origin in the Sanskrit word "Amoolya," (meaning Priceless) and was actually suggested by an
employee of Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF)
With a turnover of INR 67.11 billion GCMMF has created an economic network that links :
2.8 million village milk producers,
A cooperative system that includes 13,141 Village Dairy Cooperative Societies (VDCS) at the village level,
Further affiliated to 13 District Cooperative Milk Producers’ Unions at the District level and GCMMF at the
State level.
3. History of Indian Dairy
Condition of Dairy Farmers:-
Milk production in India is dominated by small and marginal landholding farmers and by landless labourers .
The first farm was set up in Allahabad in 1913; subsequent facilities were established at Bangalore, and Karnal.
Once the cattle became unproductive, they were sold to slaughterhouses. This practice systematically drained the
country of its genetically superior breeds.
The Polson, Keventers and the Express Dairy were some of the pioneer urban processing dairies. These dairies
were not concerned with improving the breed of milch animals reared in rural pockets
During the 1960s, various State Governments tried out different strategies to develop dairying, including
establishing dairies run by their own departments.
In India's first Five-Year Plan in 1951, modernization of the dairy industry became a priority for the government. The
goal was to provide hygienic milk to the country's growing urban population. To stimulate milk production, the
government implemented the Integrated Cattle Development Project (ICDP) and the Key Village Scheme
(KVS), among other similar programmes.
4. Amul and The Evolution of The
Model
• Polsons - a private dairy at Anand. In the mid-1940s, when the milk producers in Kaira asked for a proportionate
share of the trade margins, they were denied even a modest increase. The milk producers went on strike, refusing to
supply milk to Polsons.
On the advice of Sardar Vallabhbhai Patel, a leader in India's independence movement, the milk producers registered the
Kaira District Cooperative Milk Producers' Union, now popularly known as AMUL, in 1946.
Between 1946 and 1952, AMUL's policy was directed towards obtaining monopoly rights for the sale of milk to the
Bombay milk scheme. In 1952, it succeeded in achieving its purpose after the Government of Bombay cancelled the
contract with Polsons and handed over the entire business of supplying milk from the Kaira district to AMUL.
5. Formation of (Kaira District
Co-operative)
• Thus the first District Cooperative was established to collect 250 Litres and process milk in the District of
Kaira in 1946.
• The brand Amul was formally registered on December 14th, 1946
• 1952 - Bombay Government terminated Persons contract and signed with AMUL
• 1955 - dairy and milk powder plant was established with aid from the United Nations Children's Fund
(UNICEF)
• 1960 - AMUL pioneered production of milk powder and baby food from buffalo milk
• Today AMUL members supply more than 1 million liters of milk per day
• AMUL sells 400 tons of cattle feed every month.
6. Formation of (Gujarat
Co-operative Milk Marketing Federation Ltd.)
{GCMMF}
• Later on with the help of Dr. Verghese Kurien and Shri H M Dalaya this revolution spread to most of the
districts in Gujarat.
• Thus GCMMF came into being in the year 1973.
• Initially, the brand name Amul was with Kaira District Dairy cooperative, but later they decided to give it
to GCMMF
7. White Revolution
• Operation Flood had created a national milk grid linking milk producers throughout India with consumers in over 700
towns and cities.
• Operation Flood Launched in 1970 is a project of (NDDB) which was the worlds biggest dairy development program.
• A single cooperative dairy was the engine behind the success of the program. Verghese Kurien was made the
chairman of NDDB by the then Prime Minister of India, Shri Lal Bahadaur Shastri and he was the
chairman and founder of Amul.
• The objectives of Operation Flood are :-
Increase Milk Production
Augment Rural Incomes
Fair Prices for Consumers
8. The Three Phases Of Operation Flood
Features Operation Flood – 1 Operation Flood – 2 Operation Flood – 3
Period July 1, 1970 to Mar 31
1981
Oct 2 , 1979 to Mar 31
1985
Apr 1, 1985 to Apr 30
1996
No. of Milk Sheds Covered 39 136 170
No. of Members ( in Million) 1.8 3.6 9.3
Average Milk Procurement ( Million Kg. per day ) 2.6 5.8 10.9
Processing Capacity in Rural Dairies ( Million Ltr.
Per day )
3.8 8.8 18.1
Drying Capacity ( Metric Tons per day ) 261.0 508.0 842.0
Liquid Milk Marketing ( Million Ltr. Per day ) 2.8 5.0 9.9
9. Father of White Revolution
Born: November 26, 1921 in Kozhikode, Kerala
Achievement: Known as the "father of the white revolution" in India; Winner of Ramon Magsaysay Award;
Awarded with Padma Shri (1965), Padma Bhushan (1966), and Padma Vibhushan (1999).
He is also called as the Milkman of India.
He graduated with Physics from Loyola College, Madras in 1940. Subsequently,
he did his B.E.(Mechanical) from the Madras University and went to USA on a
govt. scholarship to do his Masters in Mechanical Engineering from Michigan State University.
When he was returned from America in 1948 and joined the Dairy Department of the Government of India. In May
1949, he was posted as Dairy Engineer at the Government Research Creamery , in Anand, Gujarat.
'I Am A Milkman, I Am a Servant of the Farmers,' Dr. Kurien
11. Profile of “ R.S. Sodhi ” MD of GCMMF
• Shri R. S. Sodhi, 52, has been appointed as Managing Director of Gujarat Co-operative Milk Marketing
Federation Limited, Anand which is India's largest food company with annual turnover of approximately.
Rs. 9000 crores.
• An alumni of the 1st batch of the Institute of Rural Management, Anand & B. E. (Agri.) from
Udaipur, he has been associated with GCMMF since last 29 years.
• Shri Sodhi has a rich experience in dairy sector and has handled various responsibilities in Marketing,
Sales, HR & Co-operative Development functions of GCMMF.
• He has been working as In-charge Managing Director of GCMMF during from past few years and has given
26% growth in turnover during his tenure.
12. Market Share of Amul In Indian Market
Amul
52%
Nestle
22%
Mother Dairy
17%
Yakult
9%
MARKET SHARE
15. AMUL Business model
• Objective :
• Deliver profitable and equitable returns to a large number of farmers for a long period of time
• Additional objective
• Develop the supplier over the long term through social change.
19. AMUL Girl
• 1966 sees the creation of the Amul girl by Sylvester da Cunha of the ASP Advertising agency as a rival to the
Polson .
• In 1967 the first hoarding was put up in Mumbai with the Amul girl.
• The tag line of “Utterly Butterly Delicious” came out in October of 1967.
• The first Topical ad came out in 1969 at the beginning of the
Hare Rama Hare Krishna movement.
• One of the most conservative FMCG entities — GCMMF —
spends a mere 1% of its turnover on promotions.
• Amul butter girl is one of the longest run ad campaigns in the country for 43 years.
• Entered in the Guinness Book of World Records for being the
longest running campaign ever.
20. Advertisement Campaign
• In World Cup 2011 Amul Ties up with Netherlands Cricket Team.• After sponsoring ICC Cricket World Cup. Amul has decided to be the official partner of Switzerland
– Headquartered SAUBER F1 team at the inaugural Indian Grand Prix.
• In 2012 Amul is again an official sponsor of INDIAN OLYMICS.• Electric Locomotive with Amul Branding Inaugurated.
The first electric locomotive (engine) of Railways under Vadodara division with 'Amul' branding was
inaugurated in 2013 . Western Railway's Vadodara Division had entered into an agreement with
Anand-based Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF) that markets brand Amul,
for branding of electric locomotives. This will generate Rs 36 lakh revenue.
21. Main Promotional Strategy of Amul
Protest against freedom of
expression
India Welcomes Brazilian Legend Declassifying files on Netaji
Angry Indian Fans Throw bottles
on ground
The Out of hand Petrol prices of
2013
Anna Hazare andolan for
JanLokpal
When the net neutrality concept
took the internet by storm
When Sania Nehwal achieved
World Rank 1
22. STRENGTH
• Largest food brand in India & Asia.
• High Quality, Low Price.
• World’s Largest Pouched Milk Brand.
• Annual Turnover of 41420 Crore ( 2014 –
2015 )
• Highly Diverse Product Mix.
• Robust Distribution Network.
WEAKNESSES
• Strong dependency on weak infrastructure &
completely dependent on villages for its raw
materials.
• Risks of highly complex supply chain system.
• Short self life of its product.
OPPORTUNITIES
• Penetrate International Markets.
• Diversify product portfolio to enter new
product categories and expand existing
categories like : processed food, Chocolates
etc.
• Use internet to sell its products.
THREATS
• Competitors – Hindustan Unilever, Nestle,
Britannia, Mother Dairy and local players.
• Stiff Competition from MNC’s in butter
• Growing price of milk and milk products.
• The yield of Indian cattle still much lower than
other dairy countries.
SWOT Analysis