Amul (THE TASTE OF INDIA)

Amul Sagar Brand stands as a beacon of excellence within the

dairy industry, representing the pinnacle of quality, innovation,
and trustworthiness. As a flagship product of Amul, one of India's
foremost dairy cooperatives, Amul Sagar has transcended mere commodity status to
become a symbol of consumer satisfaction and culinary delight.

The genesis of Amul Sagar Brand traces back to the rich heritage and cooperative ethos
upon which Amul was founded. With a profound commitment to uplifting the lives of dairy
farmers and delivering superior dairy products to consumers, Amul Sagar has emerged as a
cornerstone of India's dairy landscape.

The brand's diverse portfolio encompasses an array of dairy delights, including milk, butter,
cheese, yogurt, and ice cream, each crafted with precision and passion to cater to the
discerning tastes of consumers across various segments. Whether it's the wholesome
goodness of farm-fresh milk or the indulgent creaminess of their ice creams, Amul Sagar
Brand consistently exceeds expectations, setting the benchmark for quality and Flavors.

Beyond its domestic dominance, Amul Sagar has made significant inroads into international
markets, showcasing the global appeal of Indian dairy products. Through strategic
partnerships and relentless dedication to excellence, the brand has garnered accolades and
loyal patrons worldwide, reinforcing its position as a trusted ambassador of Indian dairy
heritage.

At its core, Amul Sagar Brand embodies the values of integrity, transparency, and community
empowerment that have been the bedrock of Amul's success story. It serves not only as a
testament to the ingenuity and resilience of Indian dairy farmers but also as a testament to
the transformative power of cooperative enterprise.

In this introduction, we embark on a journey to unravel the essence of Amul Sagar Brand,
delving into its rich legacy, unwavering commitment to quality, and relentless pursuit of
consumer satisfaction. Through this exploration, we aim to gain a deeper appreciation for
the brand's significance within the dairy industry landscape and its enduring impact on the
lives of millions of consumers and dairy farmers alike.
Amul is an acronym (Anand Milk Union Limited) of the Indian Multinational cooperative
society named Gujarat Milk Marketing Federation based in Anand, Gujarat.[2][3] It is under
the ownership of Gujarat Cooperative Milk Marketing Federation Limited, Department of
Cooperation, Government of Gujarat. It is controlled by 3.6 million milk producers.

Tribhuvandas Kishibhai Patel founded the organisation in 1946 and served as its chairman until
his retirement in the 1970s. He hired Verghese Kurien in 1949,[5][6] initially as the general
manager, where Kurien guided the technical and marketing efforts of the cooperative. Kurien
briefly became the chairman of Amul following Patel's death in 1994, and is credited with the
success of Amul's marketing.

Amul spurred India's White Revolution, which made the country the world's largest producer of
milk and milk products, and has since ventured into overseas markets.

 HISTORY
Amul was found on 19 December 1946 as a response to the exploitation of small dairy farmers
by traders and agents. At the time, milk prices were arbitrarily determined, giving Polson an
effective monopoly in milk collection from Kaira and its subsequent supply to MUMBAI.

Frustrated with the trade practices (which they perceived as unfair), the farmers of Kaira, led
by Tribhuvandas Patel, approached Sardar Vallabhbhai Patel, who advised them to form a
cooperative. If they did so, they would be able to directly supply their milk to the Bombay Milk
Scheme instead of working for Polson.[12] Sardar Patel sent Morarji Desai to organise the farmers.

Following a meeting in Chaklasi, the farmers formed the cooperative

and resolved not to provide Polson with any more milk.[12] Milk
collection was decentralised, as most producers were marginal
farmers who could deliver, at most, 1–2 litres of milk per day.
Cooperatives were formed for each village.[13] By June 1948, the
KDCMPUL had started pasteurising milk for the Bombay Milk
Scheme. Then-Prime Minister Lal Bahadur Shastri visited Anand to
inaugurate Amul's cattle feed factory. On 31 October 1964, he spoke
to farmers about their cooperative. After returning to Delhi, he set in
motion the creation of an organisation, the National Dairy
Development Board (NDDB), to replicate the Kaira cooperative in
other parts of India. Under the leadership of Tribhuvandas Patel, in
1973, Amul celebrated its 25th anniversary with Morarji
Desai, Maniben Patel, and Verghese Kurien.

The cooperative was further developed through the efforts of Verghese Kurien and H. M. Dalaya.
Dalaya's innovation of making skim milk powder from buffalo milk was a technological
breakthrough that revolutionised India's organised dairy industry.

With Kurien's help, the process was expanded on a commercial scale, which led to the first
modern dairy cooperative at Anand. This cooperative would go on to compete against the
established players in the market.
The success of the trio (T. K. Patel, Kurien, and Dalaya) at the cooperative's dairy soon spread
to Anand's neighborhood in Gujarat. Within a short span, five unions in other districts
– Mehsana, Banaskantha, Baroda, Sabarkantha, and Surat – were set up, following the
approach sometimes described as the Anand pattern.

In 1970, the cooperative spearheaded the "White Revolution" of India. To combine forces and
expand the market while saving on advertising and avoiding competing against each other, the
Gujarat Co-operative Milk Marketing Federation Ltd., an apex marketing body of these district
cooperatives, was set up in 1973. The Kaira Union, which had the brand name Amul with it since
1955, transferred it to GCMMF. Technological developments at Amul have subsequently spread
to other parts of India.

In 1999, it was awarded the "Best of All" Rajiv Gandhi National Quality Award.

The GCMMF is the largest food product marketing organisation in India. As the apex
organisation of the dairy cooperatives of Gujarat, it is the exclusive marketing organisation for
products under the brand name Amul and Sagar. For more than five decades, dairy cooperatives
in Gujarat have created an economic network that links more than 3.1 million village milk
products with crores of consumers in India. In 2007, Gujarat Cooperative Milk Marketing
Federation Ltd crossed US$1 billion in its sales turnover and entered the elite club of food
companies having this distinction from India.[19] In one more major achievement, the dairy
cooperatives of Gujarat under the GCMMF fold crossed the mark of milk procurement of
10 million kilograms per day on 27 December 2007, which is the highest ever milk procurement
achieved by any dairy network in India, be it
private or cooperative. The entire quantity of milk
received was accepted without any milk holidays
and was processed successfully into milk and
other milk products.

In 2018, Amul inaugurated a new chocolate plant

in Mogar, Anand, near their headquarters, with
Prime Minister Narendra Modi in attendance. The
new plant has been built with an increased
capacity of 1,000 tonnes per month against the
earlier 250 tonnes per month capacity. GCMMF
has invested around ₹3 billion in this project. It is a fully automated production factory with
minimal human intervention.
PRODUCTS OF AMUL

Amul, India's leading dairy cooperative, offers a

diverse range of high-quality dairy products that
cater to the varied tastes and preferences of
consumers across the country. With a rich legacy
of excellence spanning decades, Amul has become synonymous with trust, purity, and
innovation in the dairy industry. Below are some of the flagship products offered by Amul.

1. Milk: Amul offers a wide variety of milk options, including full cream, toned,
double toned, and skimmed milk, catering to different dietary requirements and
preferences. The milk is sourced from carefully selected dairy farms, ensuring
freshness and purity.

2. Butter: Amul Butter is renowned for its rich, creamy texture and irresistible taste.
Made from the finest quality cream, it adds a delightful flavor to dishes and is a
staple in Indian households.

3. Cheese: Amul offers an extensive range of cheese products, including processed

cheese slices, blocks, spreads, and grated cheese. From classic cheddar to exotic
variants like mozzarella and gouda, Amul cheese caters to a wide range of
culinary needs.

4. yogurt: Amul's yogurt range includes traditional dahi as well as flavored yogurt
variants in various fruit flavors. Rich in probiotics and nutrients, Amul yogurt is a
healthy and delicious snack option.

5. Ice Cream: Amul ice cream is a favorite indulgence for consumers of all ages.
With a plethora of flavors and formats, including cones, cups, and family packs,
Amul ice cream offers something for everyone.

6. Ghee: Amul Ghee is revered for its rich aroma and nutritional benefits. Made from
pure cow's milk, it is a staple ingredient in Indian cooking and is believed to
enhance the flavor of dishes.

7. Milk Powder: Amul milk powder is made from high-quality milk and is a
convenient option for cooking, baking, and preparing beverages. It offers the
goodness of milk in a convenient and shelf-stable form.

8. Paneer: Amul paneer is made from fresh cow's milk and is known for its soft
texture and rich taste. It is a versatile ingredient used in a variety of Indian dishes,
from curries to snacks.
9. Chocolate: Amul chocolates are a treat for chocolate lovers, with a range of
offerings including milk chocolates, dark chocolates, and assorted chocolate gift
packs. Made from the finest cocoa beans, Amul chocolates are indulgent and
decadent.

From the wholesome goodness of milk to the indulgent delight of ice cream, Amul's
product range exemplifies excellence, quality, and innovation, making it a trusted
choice for consumers across India.
 MARKET PRESENSE OF AMUL

Amul, India's leading dairy cooperative, has established a formidable presence in the
domestic and international markets, wielding significant influence and commanding a
substantial share of the dairy industry. The company's market presence is
characterized by several key factors.

 EXTENSIVE DISTRIBUTION NETWORK - Amul boasts an extensive distribution network

that spans across the length and breadth of India. With a robust supply chain
infrastructure comprising distribution centers, cold storage facilities, and transportation
logistics, Amul ensures widespread availability of its products even in remote areas.

 STRONG BRAND EQUITY- Amul enjoys unparalleled brand equity in the Indian market,
built over decades of consistent quality, reliability, and customer satisfaction. The iconic
Amul girl mascot and catchy advertising campaigns have further cemented the brand's
place in the hearts and minds of consumers across generations.

 WIDE PRODUCT PORTFOLIO - Amul offers a diverse range of dairy products catering to
various consumer segments and preferences. From milk and butter to cheese, yogurt, ice
cream, and more, Amul's extensive product portfolio ensures it meets the diverse needs
of consumers across different demographics and regions.

 FOCUS ON QUALITY AND INNOVATION- Amul's commitment to quality and innovation

has been a driving force behind its market success. The company continuously invests in
research and development to introduce new products, flavors, and packaging formats
that resonate with evolving consumer preferences and trends.

 COMPETITIVE PRICING- Despite its premium positioning, Amul maintains competitive

pricing across its product range, making quality dairy products accessible to a wide
spectrum of consumers. This pricing strategy has helped Amul penetrate both urban and
rural markets, driving volume growth and market share expansion.

 EMPHASIS ON SUSTAINBILITY AND RESPONSINCIBLE - Amul's cooperative model

emphasizes sustainability and social responsibility, fostering long-term relationships with
dairy farmers and promoting environmentally friendly practices. This commitment to
ethical sourcing and sustainable production resonates with socially conscious consumers,
further enhancing Amul's market standing.

 GLOBAL EXPANSION - In addition to its stronghold in the Indian market, Amul has
expanded its footprint in international markets, exporting its products to over 60
 countries worldwide. The company's focus on quality, innovation, and adaptability has
enabled it to carve a niche for itself in the global dairy industry, competing effectively
with multinational players.

IMPACT ON DAIRY SECTOR

The impact of Amul on the dairy sector, both in India and globally, is profound and
multifaceted. As the largest dairy cooperative in India, Amul has played a pivotal role in
transforming the dairy industry and shaping its evolution over the years. Here are some key
aspects of the impact of Amul on the dairy sector.

1. Empowerment of Dairy Farmers: Amul's cooperative model has empowered millions of

dairy farmers across India by providing them with a platform to collectively market their milk
and earn fair prices for their produce. By organizing farmers into cooperatives and ensuring
their active participation in decision-making processes, Amul has improved the socio-
economic status of dairy farmers and contributed to rural development.

2. Rural Employment Generation: Amul's operations have led to the creation of significant
employment opportunities in rural areas. From milk collection centers to processing plants
and distribution networks, Amul's presence has generated jobs at various levels, thereby
stimulating economic growth and reducing rural unemployment.

3. Quality and Safety Standards: Amul has set high standards for quality and safety in the
dairy industry. By implementing rigorous quality control measures and adhering to
international food safety standards, Amul has instilled confidence among consumers
regarding the safety and purity of its products. This has raised the overall quality benchmark
for the dairy sector in India.

4. Technological Advancement: Amul has been at the forefront of adopting technological

innovations in dairy processing and management practices. From milk chilling units to
automated processing plants, Amul has invested in modern technologies to improve
efficiency, reduce wastage, and enhance product quality.

5. Market Competition and Pricing: Amul's competitive pricing strategy has had a
significant impact on the dairy sector. By offering quality dairy products at affordable prices,
Amul has compelled competitors to streamline their operations and offer competitive prices,
benefiting consumers with a wider range of choices at reasonable rates.
6. Global Recognition and Market Expansion: Amul's success story has garnered global
recognition, positioning Indian dairy products on the international stage. Through exports
and strategic alliances, Amul has expanded its market presence beyond India's borders,
promoting Indian dairy products worldwide and contributing to foreign exchange earnings.

7. Consumer Awareness and Health Benefits: Amul has played a vital role in raising
consumer awareness about the nutritional benefits of dairy products. By promoting the
consumption of milk and milk-based products as part of a balanced diet, Amul has
contributed to improving public health outcomes and combating malnutrition.
FUTURE OUTLOOK

WHEN A HANDFUL of farmers in two villages in Gujarat formed the Kaira District
Cooperative Milk Producers' Union in 1946, it produced just about 250 litres of milk a day. It
turned into a revolution under Verghese Kurien, India's milkman. Today, the Gujarat
Cooperative Milk Marketing Federation (GCMMF) is spread across 18,700 villages and has 18
member unions.

GCMMF's Amul is Asia’s largest milk brand and a market leader in India of most dairy
products like butter, ghee, yoghurt, butter milk, lassi and flavoured milk. But R.S. Sodhi,
managing director of GCMMF, does not want Amul to rest on its laurels, and he has been
charting out the milk giant's diversification plans.

Amul recently launched fruit juices under the Amul Tru brand. GCMMF is betting on Amul’s
strong network and brand popularity to drive the sales. It will not be a cakewalk, though.
Dabur’s Real, Coca-Cola’s Minute Maid and Pepsico’s Tropicana brands have a strong
presence in the market. Startups like Hector Beverages’ Paper Boat also have made a splash.
“We saw this juice-based category growing like anything,” said Sodhi. “The change we did
was, we added milk solids [to juice]. Amul Tru is a differential product with juice plus milk
solids.”

Amul’s foray into the fruit juices segment follows its expansion into the frozen snacks market,
leveraging its existing cold chain. Last year it launched products like French fries, aloo tikki
and hash browns under the Happy Treats brand. “We have got the biggest frozen foods
distribution highway,” said Sodhi. “Especially, during winter when the production is less in
segments like ice creams, we thought of buying potatoes from farmers and converting it into
potato products.”

Of late, Amul has also been strengthening its chocolates business. Though it entered the
segment in the 1970s, it started pushing products aggressively only recently, especially black
chocolates. A new plant on the outskirts of Anand, inaugurated last September, can produce
1,000 tonnes of chocolate a month. Currently, chocolate business contributes just around 3
per cent of GCMMF’s turnover, but Sodhi sees it growing in the future. He claims Amul has
already become the number one player in dark chocolates.

Mondelez International, maker of Cadbury Dairy Milk chocolate, controls more than 60 per
cent of India's Rs 8,200 crore chocolate market, and is followed by multinationals Nestle and
Ferrero. Homegrown consumer goods major ITC also has plans to get more aggressive in the
chocolate market.

Despite the diversification plans, GCMMF’s focus continues to be on the dairy business. “The
size of India’s organised dairy industry is Rs 1.7 lakh crore and Amul brand is only 25 per cent
of that,” said Sodhi. “The organised industry is growing at a double-digit rate. So, our main
focus will always be dairy.”

GCMMF will invest Rs 600 to 800 crore in new processing and packaging facilities every year.
It has 69 plants and five more are in the pipeline. The member unions of Amul plan to
enhance milk processing capacity from the current 350 lakh litres a day to 380-400 lakh litres
in the next two years. In south India, a market that is dominated by strong regional players,
GCMMF is looking to improve its distribution reach.

“Our turnover in 2009-10 was Rs 8,000 crore. It has grown to around Rs 33,000 crore in the
financial year ending March 31, 2019. What we are looking at is that, in another 10 years, it
will be around Rs 1 lakh crore,” said Sodhi.

GCMMF is not just tapping the Indians at home, but sees the large diaspora in markets like
West Asia and North America as huge opportunities. It started local manufacturing of ghee,
shrikhand and paneer in the US in a third party facility in 2014. “There are 3 million Indians in
the US. To send them products from India, particularly fresh products, is difficult. So why not
have a presence there? We are still in the planning stage on what to do and haven’t worked
it out yet,” said Sodhi.

GCMMF had exports worth Rs 800 crore in the last financial year. Sodhi sees a big
opportunity here. “Bangladesh, Sri Lanka, China and Russia, South East Asian countries and
West Asia are milk deficient countries. They are importing mainly from Europe, New Zealand
or Australia, while we are next door,” he said.

The competition in Amul’s own backyard, however, is intensifying. French dairy giant Groupe
Lactalis made its third acquisition in India in January, buying the milk products business of
Prabhat Dairy for around Rs 1,700 crore. Lactalis now has 11 factories in India and it collects
23 lakh litres of milk a day.

New Zealand’s Fonterra, which is the world’s largest dairy exporter, has inked a joint venture
with Kishore Biyani’s Future Consumer to produce a range of dairy products. The first batch
will be launched by the middle of the year.

Credit ratings agency CRISIL expects India’s dairy sector revenues to touch Rs 7.5 lakh crore
by 2021. In 2017-18 it was Rs 5.7 lakh crore. It sees organised dairies spending Rs 14,000
crore over three years to enhance processing capacity by 25-30 per cent and strengthening
the milk procurement infrastructure.

Sodhi says the dairy industry could provide the next big livelihood opportunity for the
masses, just like the information technology sector did in the past 15 years. “In the next 10
years, dairy can provide a source of livelihood for 1.2 crore people in rural India,” he said.

“There is already a huge market, but we need to produce more and we need people to
produce it.
Financial performance analysis