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The Inspiring story of Amul- How a Revolution resulted in the formation of a Billion Dollar Co-operative Company

Amul (Picture credit: Wikimedia Commons

Hello, welcome to Youth Motivator, here I would like to tell you the inspiring success story of Amul, an Indian cooperative dairy company.

The revolution which resulted in the formation of Amul-

In the year 1946, the state of Gujarat of India was amidst the nationalist movement, during that period a young man by name Tribhuvan Das Patel who was inspired by Gandhi, started a revolution for the sake of poor landless labourers and dairy farmers.

He started organising many farmers and Tribhuvan along with the farmers met Sardar Vallabh Bhai Patel, famously called the Iron man of India.

During those times, a British Company by name Polson was exploiting the Indian dairy farmers. The hard- work of the farmers was not well compensated and the middle-men wiped out the money which rightfully belonged to farmers.

 So, Tribhuvan determined to end the monopoly of Polson Diary by forming a co-operative with its members as fellow farmers. He dreamt of economic liberation of farmers from the shackles of middle men of Polson.

Soon the protest by farmers gained momentum and turned into a mass movement. The farmers were ready to fight with the British Empire. The farmers thought that instead of dying daily, it was much better to die once for a righteous movement.

This movement was supported by Morarji Desai a freedom fighter who later went on to become the Prime Minister of India. He declared that for every village a co-operative society will be formed along with a district union in Anand.

Equality for one and all-

Any farmer was free to join this union irrespective of his or her caste, religion or financial status. And he demanded the Bombay government to procure milk from these co-operatives.

The whole Gujarat was in rebellion mood, and was not contributing milk to the Polson Diary, by which the Polson Diary was in the verge of breaking down.

After two weeks of the movement, the British initially tried to dread and later negotiate with farmers. The British ordered the farmers to part their movement, to which the farmers stiffly opposed.

Later, reluctantly the British allowed the farmers to set-up their own co-operative, thinking that the co-operative would not last for even a couple of days because most of the farmers were illiterate.

Then, Dr. Verghese Kurien, the father of the white revolution stepped in the scene as manager, trusting the farmers and he guided them to form a very successful co-operative. This small co-operative grew to become a very big Indian brand which was very well received both in India and abroad.

Amul helped India to become the world’s largest producer of milk. Technology played a pivotal role in the achievements of Amul.

Amul uses Automatic Milk Collection systems, to collect milk form farmers at a swift pace, simultaneously capturing details about the farmers, and milk, like the lipid content of milk, etc. then the farmers get paid instantaneously within a matter of a few seconds.

The fresh milk collect from the farmers is rapidly transported all over the country spreading health and happiness to many doorsteps across the country.

Everyday milk is collected from nearly 3 million farmers in 15,000 villages. This milk is examined, grated and transported to many diaries located across the country. The milk delivery trucks deliver milk during early morning to every nook and corner of the country. These activities occur daily at clock-work precision.

The main pillars in the success of Amul are the conjunction of expertise of farmers, the professionalism of co-operative’s management and technology.

The Success story-

The success story of Amul’s co-operative model was well recognised and this model was implemented all over the country, resulting in the White revolution (also called as the Operation Flood).

This made the India the largest milk producing nation in the world and brought financial freedom to farmers.

The reason for the huge success of Amul is their diversification into numerous diary based products, like ice-creams, chocolates, etc. which add great value to the people’s lives. All the Amul’s products adhere to the strict hygiene and quality standards.

All the Amul products are best-in class without burning a hole in the pockets of customers.
Currently, Amul processes more than 350 lakh litres of milk per day.

How was Amul named?

After the initial success of Amul, Verghese Kurien wanted to brand the milk co-operative in a proper way, so that it can gain popularity and enter new regions. He was brainstorming but nothing has helped him.

Luckily, his chemist recommended him the name Amul (The short form of Anand Milk Union Limited- The original name of Amul).

In Hindi, the word Amul means something very precious. And then, the milk co-operative was christened as Amul.

Other interesting facts about Amul-

Amul operates the India’s most modern, sophisticated diary plant at Gandinagar, Gujrat.
Amul also invests hugely in R and D, a notable achievement is that for the first time in world, milk powder from Buffalo’s milk was made by Amul and currently Amul operates the Asia’s biggest powder milk plant.

The Amul’s mascot, the Amul Girl, is one of the greatest and longest marketing campaigns in the world. This advertisement is a world record in the category of the longest run campaign on earth.
 The social and political observations of Amul Girl in the form of attractive cartoons are very popular in India.

Amul has also won the hearts of current generation by setting up Amul Parlours, the place where people get to experience all the Amul’s products at one place.

Now, Amul products are sold in over 40 countries, some of which include USA, Singapore, UAE, Japan, China, etc. The Amul products are very well-received because of their consistency in taste and great quality at very affordable price points.

The farmer friendly Co-operative-

Amul gives back 80 per cent of its earnings to the farmers, who form the back bone of Amul. Amul also cares for the cattle in a grateful way.

Unlike any corporate companies, Amul is owned by villagers who contribute tirelessly to their co-operative company.

Thanks to the artificial insemination technique, the milk produced is of the highest quality, because artificial insemination has resulted in the formation of high breed of cattle.

Changing the face of a country-

Before the advent of Amul, India was a severe milk deficient country, to meet the demands of huge population, often milk was imported from other countries like New Zealand. But Amul changed the whole scenario, now India is the largest producer of milk on the planet earth. And now, India is exporting milk to numerous countries.

Amul is a good example of a company following win-win rule. Here, the farmers are getting recognised and are paid up to 80 per cent of the business value and also consumers are getting milk at affordable prices.

Contributions of Amul-

Amul has transformed rural economies all across the country and was then indorsing the country’s independence movement. Amul has transformed the lives of rural villagers in a very positive way, with the help of Amul, the villagers multiplied their cattle, bought new homes, vehicles, etc.    
Amul also runs educational institutions (like Institute of rural management) which provide hands on training to the youth of the country.

Thanks to Amul, many villages in India have become self-sufficient along with providing financial independence. Amul is rightly called the taste of India.

How is Amul able to provide milk at such affordable price?

Amul procures huge quantities of milk from farmers and process them and produces huge varieties of milk and milk products.
Because of the mass production of these products, the cost of milk to the end consumer has reduced drastically.

Also Amul has built such a robust distribution channels all across the country, that its milk distribution expenses are lesser than that of the competition.

Amul’s current position in India-

Amul is the winner in each and every category on Indian diary business; let it be in revenue generation, turnover, in various product categories like ice-cream, butter and any other category, Amul beats the competition by a huge margin.

Amul’s unique marketing strategy-

Everyone knows that many companies spend a huge amount of wealth on marketing and advertising. But Amul has applied a unique strategy, in which Amul manufactures a wide range of products which cater the needs of different sections of people.

But luckily, Amul has not sub-divided itself into numerous sub-brands, thus saving a huge amount of money on marketing of its different sub-brands.

So, next time when you see the Amul Girl cartoon, remember that she is marketing all the Amul’s products ranging from butter milk to ice cream in one single advertisement.

The part of Amul in empowering women-

As above mentioned Amul has undoubtedly improved the quality of farmer lives in rural areas in general and lives of women farmers in particular.

Kanuben Patel of Gujarat was awarded the Pride of Gujarat by the Chief Minister of Gujarat for proving the world that dairy farming is a very viable business, by earning around 84 lacs rupees by practising dairy farming.

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