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 functionsEliminate internal

competitionTo promote economic

equality

The Amul Story Manthan - mero gaam katha parey.flv

VDCS

Milk producers having surplus come together

to form VDCSMembership 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 VDCSCollection 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

PRODUCTS

Desserts Health Drinks

Cheese For Cooking

1964, Amul Moppet Girl

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

“utterly butterly delicious Amul”

1979, first escalator in Mumbai

1986, 40 years of

independence

1991,FM Manmohan Singh delivers maiden

Budget

1991, Narasimha Rao

becomes PM

1992, Bombay riots

1996, Infighting within Coalition

2008, Nano debuts at 9th Annual Expo,

Delhi

2009, Satyam Scandal

2010, New Rupee Symbol

June 7,2010, Bhopal Gas

Tragedy Verdict

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 MOVEMENTThe 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

Largest food brand in India and Asia

High quality and low price

Introduced TQM

World’s largest pouched milk brand

Highly diverse product mix

STRENGTHS

Strong dependency on weak infrastructure

Risk of highly complex chain

Short Shelf life of its products

Alliance With third parties

WEAKNESSES

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