How Did Amul Started In India

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How Did Amul Started in India
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While many companies lost money during the pandemic, Amul was doubling its business. Amul, or Anand Milk Union Limited, earned ₹53,000 crores. It also launched 60+ new products during the pandemic. Additionally, every farmer associated with Amul earned an extra ₹800. By 2025, Amul aims to reach a revenue target of ₹1 lakh crore. How did a cooperative started by a few farmers generate such massive revenue today?

Minimal Marketing Spend

Unlike its competitors, who spend 10-15% of their revenue on marketing, Amul spends only 1%. Despite this minimal spend, Amul has managed to stay at the top of the industry. What business strategies did Amul use to achieve this feat?

The Early Struggles of Farmers

Seventy-five years ago, farmers faced significant challenges. Contractors and middlemen controlled the milk marketing system. This left farmers with little profit. Milk, being a perishable item, forced farmers to sell it at the prices set by these middlemen. The Government Bombay Milk Scheme aimed to pasteurize milk in Anand, Gujarat. Then, it would transport it 420 km to Bombay. Polson Limited secured the tender, reaping profits while farmers bore the brunt. This scheme’s benefits bypassed those who tilled the soil, enriching others instead. The contract’s award left agriculturists out in the cold, as gains flowed elsewhere.

The Formation of the Cooperative

In 1946, guided by Gandhi’s vision and Patel’s backing, Tribhuvandas Patel rallied farmers. Their work created a groundbreaking cooperative. It was a key moment in rural empowerment… Patel encouraged farmers to unite. This led to the Kaira District Cooperative Milk Producers’ Union. The cooperative enabled farmers to market milk themselves, cutting out intermediaries. It ensured fair prices.

The Role of Dr. Verghese Kurien

Dr. Verghese Kurien, known as the “Father of the White Revolution,” played a crucial role in Amul’s success. In 1949, Kurien became a dairy officer. He set up a system for surplus winter milk when buffaloes produced more. Under him, Amul was the first to make skim milk powder and condensed milk from buffalo milk.

Amul’s iconic branding

Dr. Kurien created the Amul brand, inspired by “Amulya,” a Sanskrit word meaning priceless. The Amul Girl emerged with a tagline that defined her brand identity. Amul struggled at first against Polson’s butter. But, it adapted its product to match consumer tastes. This led to its long-term success.

Expansion and Growth

The Kaira District Cooperative Milk Producers’ Union grew from two societies. They contributed 250 liters of milk daily. By 1948, it had 432 farmers producing 5,000 liters daily. Today, Amul boasts 18,600 cooperative societies with over 3 million farmers. Its success is due to its three-tier structure. It ensures a bottom-up approach to management.

Innovation and Adaptation

Amul created effective answers to handle surplus milk supplies daily. New tech to make skim milk powder and condensed milk from buffalo milk was a game changer. Also, Amul changed its butter’s taste and color to fit consumer preferences. This helped it compete with established brands like Polson.

The Impact of Marketing

Amul’s marketing strategy was key to its success. It spent little but ran impactful campaigns. The “Utterly Butterly Delicious” campaign had a long-lasting advertising presence. It connected with consumers for decades.

Conclusion

Amul’s rise from a small co-op to a dairy giant shows the power of unity, innovation, and marketing. Amul spends 1% on marketing. But it knows consumers and uses resources well. So it is a household name in India and beyond. The vision of leaders like Tribhuvandas Patel and Dr. Kurien is inspiring. They show that cooperation can lead to great success.