Hii friends, My name is Bkc Biographer and today we will talk about Amul case study whose meaning is Priceless and its origin and philosophy .

  • Value for money
  • Value for many


Value For Money

It means that the customer who buy our products with money get valuable products

Value For Many

It means that farmers and people who give milk to Amul will give right Value for his Milk


Amul Cooperative Buisness Model


Amul Cooperative Model


Amul give farmers All 80% Cost earned.

Expansion Strategy


They work on three levels :
  • Village Level
  • District Level
  • State Level

Village Level

After collecting milk from farmers in villages, they do Processing of some quantity of milk and sold it to adjoining villages

District Level

They again do some processing of milk and sold it to districts

State Level

The main work is done on state Level. Here they convert 35 to 40 % of milk collected into secondary products like Cheese, paneer and many more and then sold into its distribution network.

Amazing Technology Of Milk Procurement By Amul

They installed a electronic fat testing machine. It measure the amount of fat in farmers milk and quality of milk and volume of milk and by measuring all these they were given the payment.

R.S. Sodhi As Expansionist Leader Of Amul

He adopted following methods to expand  Amul :

Expansion in  procurement

Expansion in processing

Expansion In Distribution

Expansion in Procurement

He established Milk procession Technology all over India and advise their team to collect all possible quality of good quality milk not only in Gujrat but also from anywhere and outside Gujrat

Expansion in Processing

He told their team to increase processing capacity and make a large variety of products that can be made from milk like lassi, ice cream etc. Amul made 50 different types of Products in last 7 years.

Expansion in Distribution

He increased the distribution network of Amul and also in areas where it is not Available.

Impact of this Policy

Rs Sodhi Impact Of Policy


Amul Umbrella Branding Policy

Under this Policy, they don't change the name of Products and for any product they have to brand only for amul not for variety of products.

Example

If Amul launches its butterscotch ice cream they don't advertise for their specific ice cream they simply advertise Amul Ice-cream The Taste Of India not for butterscotch Ice cream .

Amul Turnover and Countries Its Exports Milk

In 2019, Amul turnover grows to 17 % and reaches 38,550 Crores. It Exported its milk and dairy products to 20 countries at present including US , West Asian Countries , Thailand, Malaysia , Hong Kong , Bangladesh , New Zealand , Austalia , Sri Lanka and Others.

Amul Brand Stats

Amul Brand Stats

Amul Brand Stats

Amul Statistics


Awards and Achievements Won By Amul

  • GCMMF received Bronze Trophy at the Indian Marketing Awards – 2014
  • GCMMF – Finalist in World Beverage Innovation Awards - 2014
  • GCMMF received APEDA Awards for 16 years continuously
  • Amul wins World Dairy Innovation Awards - 2014
  • Amul receives Srishti Good Green Governance award for the year 2013
  • GCMMF Receives Prestigious CNN-IBN Innovating for a Better Tomorrow Award
  • Amul wins AIMA High Performance Brand Award-2013 for brand Amul
  • Shri R S Sodhi, MD-GCMMF, receives prestigious QIMPRO GOLD STANDARD Quality Award 2013
  • GCMMF wins the SAP Award for Customer Excellence (SAPACE) 2013 under the category of "Best Run Award in Finance"
  • ET-Corporate Citizen Award of the Year 2010-11 to GCMMF
  • Amul receives Green Globe Foundation Award
  • Dr. V.Kurien honoured with Life Time Achievement Award
  • GCMMF receives Srishti's G-Cube Award - 2010
  • Amul Bags International Dairy Federation Award
  • Amul Bags Srishti G-cube Award For Good Green Governance - 2009
  • Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit
  • Ramkrishna Bajaj National Quality Award - 2003
  • Qimpro Gold Standard Award - 2003
  • Amul - The Taste Of India (GCMMF) Receives International CIO 100 Award For Resourcefulness
  • Rajiv Gandhi National Quality Award - 1999

Amul was the first to make skimmed Milk powder from Buffalo Milk

Cause of Rise Of Amul

In year 1942 to 1943 , It all started with farmer exploitation. At that time, Milk was Supplied to Bombay city from small village of Gujrat , Anand Nagar by means of Polson Company led by Indian Pestonjee Edulji. He had passed a legislation by British Government that all farmer of Anand Nagar and their nearby villages will give their milk only to his company and not any other  then he will supply milk to Bombay city.

Reason Behind Implementation Of This Type Of Policy

Pestonjee was non educated but a clever Buisness Man . He had Passed such a legislation so that he will buy milk from farmers at any price and earn big profit Margins. By this arrangement , farmers were very troubled because :

They were not given right rates of their milk

Their milk supply to company were rejected by Company without any reason

Idea and Decision Of Cooperative Society

In year 1943 to 1946 , Seeds of Amul brand were sown. It was that time when India was fighting for Complete freedom.

All the exploiated farmers went to Vallabh Bhai Patel. He advised them if they want to save themselves then they have to do milk procurement, processing and marketing with their own which can be done by making cooperative society.

He also told them that his party leader Moraji Desai will help them making in cooperative society. When they met with Moraji Desai , it was decided that the cooperative society will be built and the authority of society was given to Tribhuvan Das Patel.

Tribhuvan Das Convinced Farmers to Join Cooperative

After that Tribhuvan Das Convinced the farmers of all villages and  adjoining villages to join the cooperative party. All the Farmers were convinced and after that , Kaira District Cooperative Milk Producing Union Limited Was established and they made two revolutionary Decision :

No farmer will supply milk to Polson Company

Cooperative will directly supply all the milk to Bombay city

Pestonjee Effort to Fail Cooperative

Pestonjee wanted to fail their Cooperative Company and he went to British Government for help. British Government told him to close his cooperative Company as it was illegal company. Indian farmers protest the Government and strike for 15 days and instead to give their milk to Pestonjee , they throw all their milk to roads . This protest bend the British Government and they give them the permission to supply their milk.

Idea Of Expansion Of Dairy

This was a great achievement for Indian farmers. After some time , they want to expand their society and for them dairy was needed. At that time , Vallabhai Patel was Deputy prime minister of India and India was Independent and with help of Sardar Vallabh Bhai Patel , they were given a dairy of Government where they will collect all milk of farmers and process them and then they supply milk to bombay.

First Meeting Of Khuriein With Cooperative

After starting it sometime, they met with the person who made their society  famous in World and make it brand  and later changed name to Amul , Verghis Khurihene. He is also known as Milk Man Of India and Father Of Indian Revolution.

Early Life of Verghis Khuriein

He was born on 21 November , 1921 in Calicut , Kerala. His father was a civil Surgeon and his mother was very educated. After engineering , he wanted to join Army but his mother wanted to see in private company job and same happened. After Engineering , he joined TISCO Company but he left it after some time as he wasn't interested in jobs .

Verghis Khuriein Went to Foreign

After that he took his interview under British Government Scheme and he was selected and on government grant , he was sent to Foreign Country for Dairy Engineering course. He wanted to do Specialised course in Nuclear Physics and Metallurgy but he was selected in Dairy Engineering unknownly. He then do masters in Nuclear Physics and Metallurgy and to satisfy Government he also do Dairy Engineering course.

Verghis Khuriein Return to India

After completing his course, he return to India and met with British Official for posting as it was a rule that person who studied with government grant has to serve for Government where he told him that he don't want to do government job. On hearing that , the official told him that he had studied on Government grant so he was bound by Government contract and had to do Dairy Engineering Job or to pay 30000 Rs fee of course.

He was posted in National Dairy Institute in Anand, Gujrat wher he only do time pass during his office hours.  Their he met first time to Cooperative Society of Tribhuvan Das Patel.

Year 1949 to 1957 : Creation of Amul Brand

At this time , the cooperative faced problem in cooperative operations and also in supplying their milk directly so Verghis Khuriein helped him to run administration of cooperative efficiently and he was very much interested in running Cooperative. on other hand , Verghis sent letter to Government for granting him resignation from his job as he wasn't interested in jobs and want to do private jobs and his resignation was accepted by Indian Government after some trials.

Verghis Khuriein As Professional Manager Of Cooperative

At that time , Tribhuvan Das offered a job to Verghis that he can do work with them untill he find a suitable  for him. He then joined his proposal but after sometime he realised that his interest became passion and he joined the cooperative as professional Manager in 1950.
By his dedication for cooperative and with help of other farmer They started to supply 

200 Litre/Day  Milk supply in 1950 to 20000 Litres/Day  Supply in 1952.

He also started to supply liquid milk to Bombay with railways and other transportation

After that , Amul was growing Continuously with help of Khuriein Management and stared to supply milk in adjoining areas and cities and world.

Renaming Of Amul And Its Meaning

Verghis wanted Fund for supplying their milk to International world and in large scale in India and for this he was asked to give a brand name to his cooperative . He thought to name it as Anand Milk Union Limited and discuss it with colleagues so his chemist suggest him to rename it as Amul and he then asked his meaning from his chemist who told them that Amul word is derived from Sanskrit which means Priceless.

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