Final Amul Report

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Transcript of Final Amul Report

INTRODUCTION TO AMULAmul is an Indian dairy cooperative, based in Anand, Gujarat. The word Amul is derived from the Sanskrit word Amulya, meaning invaluable. The co-operative is also sometimes referred to by the unofficial backronym: Anand Milk Union Limited. Formed in 1946, it is a brand name managed by an Indian cooperative organisation, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.03 million milk producers in Gujarat. The Kaira District Co-operative Milk Producers' Union was registered on December 1, 1946 as a response to exploitation of marginal milk producers by traders or agents of existing dairies in the small town named Anand (in Kaira District of Gujarat). Milk Producers had to travel long distances to deliver milk to the only dairy, the Polson (brand) dairy in Anand. Often milk went sour as producers had to physically carry the milk in individual containers, especially in the summer season. The prices of buffalo and cow milk were arbitrarily determined. Moreover, the government at that time had given monopoly rights to Polson Dairy to collect milk from Anand and supply it to Bombay city in turn The success of the dairy co-operative movement spread rapidly in Gujarat. Within a short span five other district unions Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were organized. In order to combine forces and expand the market while saving on advertising and avoid a situation where milk cooperatives would compete against each other it was decided to set up an apex marketing body of dairy cooperative unions in Gujarat. Thus, in 1973, the GCMMF was established. The Kaira District Co-operative Milk Producers Union Ltd. which had established the brand name Amul in 1955 decided to hand over the brand name to GCMMF (AMUL)



During the fourth decade of the 19th century, the basic sources of income for farmers of the Kaira district was farming and selling milk. At that time there was great demand of milk in Bombay. The biggest purchaser of milk was Polson Ltd. It was a privately owned dairy that produced milk products and also supplied milk to various regions of the state. It enjoyed monopoly. All farmers of the Kaira district were at the mercy of the milk traders who dictated the process; they had nowhere to turn to. This unfair system spread widespread discontent amongst the farmers. Hence they all decided and appealed to Shri Sardar Patel, a great leader of Indias freedom movement, for help. Shri Sardar Patel advised them to market milk through a co-operative society that was operated by them individually. He sent his very trusted person, Shri Morarji Desai to organize the farmers. At a meeting held at Samarkha (a village near Anand) on January 4, 1946, it was resolved that milk co-operative societies would be organized in each village of Kaira district to collect milk from the producers and bring it to the district union. The government should be asked to buy milk from the union. When the government turned down the demand, Kaira districts farmers organized a milk strike for 15 days, not a single drop of milk was sold to traders. The Bombay Milk Scheme was badly affected. The milk commissioner of Bombay visited Anand, assessed the situation and decided to concede to the farmers demands. Thus, KDCMPUL Kaira District Co-operative Milk Producers Union Limited, came to existence. It was formally registered on December 14, 1946. During winter season, the quantity of milk received was very high. But the Bombay Milk Scheme did not accept the excess milk brought in by the farmers. Hence, this forced the farmers to sell excess milk to traders, which gave them very nominal amount for this quantity. This led to the decision to set up a plant to pasteurize milk. In the beginning there were only few farmers supplying about 250 liters of milk everyday.

With the financial help from UNICEF, assistance from the government of New Zealand under the Colombo plant, and technical assistance provided by FAO for Rs. 5 million, planning for the factory to manufacture milk powder and butter was done. Dr. Rajendra Prasad the then President of India laid the foundation on November 15, 1954. On October 31, 1955, Pandit Jawaharlal Nehru, the then Prime Minister of India, declared the plant open. In 1958, the plant expanded. It produced sweetened condensed milk. Two years later, Shri Morarji Desai, the then Finance Minister, inaugurated a new wing designed to manufacture 600 tons of cheese and 2500 tons of baby food per year. This was the first time in the world that cheese and baby food was processed and produced from buffalos milk on a large and commercial scale. A plant to manufacture balanced cattle feed, donated by OXYFAM, was formally commissioned on October 31, 1964, by Shri Lal Bahadur Shastri the then Prime Minister of India, at Boriavi. KDCMPUL then set up a plant to manufacture high protein weaning food, chocolate and malted drink at Mogar, about 8 kms south of Anand.

AMUL means "priceless" and it comes from the Sanskrit word Amoolya. This brand name suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found in several Indian languages. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul


Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 42.78 billion in 2006-07). Today Amul is a symbol of many things. Of high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing survey of a farmers' organisation. And have a proven model for dairy development. Today there are twelve dairies producing products under the brand name of AMUL. AMUL is now Asias largest dairy brand and it is the worlds second largest firm producing dairy products. FOUNDER OF THE COMPANY

Mr. Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in forming the Cooperative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL.



Growth of Amul is not a one-night story. It took several decades to succeed in the present manner. Initially, Amul started with one single society, now it has around 1231 societies in its net. It poured in 250 liters of milk per day initially, which has now reached up to 15 lac liters per day in FLUSH (winter) season and about 8 lac to 9 lac liters of milk per day during LEAN (summer) season. The main stages of development of Amul are as follows: In 1954: UNICEF provided financial help worth Rs. 50 million to Amul. This financial help led Amul to establish fully automatic plant for producing milk and milk powder. In 1958: Amul expands; it started producing sweetened condensed milk. In 1960: Excess milk that was brought in by the farmers in the winter season and huge amount of profit made it possible the expansion of Amul. Amul established producing cheese and baby food. This created history in the world dairy industry because, it was for the first time in the world that cheese and baby food was processed from buffalos milk instead of cows milk. In 1981: The new cattle feed plant at Kanjari was commissioned. In 1992: For getting the benefits of excess supply of milk, Amul established another plant named Amul III. This plant has a capacity of processing 14 lac liters of milk everyday. In 1994: The new cheese plant was established at Khatraj. Together with it was established the Mogar plant to produce chocolates and malted drink. Both of these plants were commenced with the help of NDDB. In 2001: Amul launched its flavored milk variety. This was a major jump taken by Amul. In 2003: For expanding the market share, Amul launched the Snowball pizza and flavored lassi. These helped Amul to gain a major chuck of market share. In 2004: Amul keeps on achieving new heights in the competitive world. It has launched Chocozoo (chocolate) and Munchtime (crunchy snack). Amul also started new satellite dairies at Pune and Kolkata. This will be a help in gaining larger portion of market share.



Name: Kaira District Co-operative Milk Producers Union Limited Address: The KDCMPU Ltd. Amul Dairy Road, Anand 388001 Gujarat [INDIA] Date of Establishment: 14 December, 1946 E-MAIL: [email protected]

Form of unit: A Co-operative Society, registered under Co-operative Societies Act, 1912. Bankers: 1. Kaira District Central Co-operative Bank Limited. 2. Axis Bank 3. Corporation Bank 4. State Bank of India


1. Anand Plant

Anand plant is the main plant. Most of the raw-milk is procured here. Products being manufactured here are butter, flavored milk, ghee, milk powder and baby food.


2.Mogar Plant

It is situated on Anand-Vadodara national highway no.8. It produces chocolates, nutramul, Amul lite and, Amul Bread and Amul ganthia.

2. Kanjari Plant

Cattle feed is produced here.

3.Khatraj Plant

This plant is situated between Nadiad and Mhemdabad highway. Cheese, Paneer and Whey powder is produced here.


3. Satellite Dairies

Amul has got satellite dairies at Mumbai, Pune and Kolkata. It helps in handling operations of the organisation from a distant place.

INITIAL PROMOTERS 1). Shri Tribhuvandas Patel. 2). Shri Morarjibhai Desai.

BOARD OF DIRECTORS: Shri Bhaijibhai A. Zala Shri Ramsinh P. Parmar Shri