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The Untold Business Story Of Amul Empire

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Amul formed in 1946 by TribhuvanDas Patel, is a Dairy Cooperative, based in Anand, Gujarat. The Cooperative was initially referred to as Anand Milk Federation Union Limited hence the name Amul.

Amul - The Brand Story - Eat My News

Amul spurred India’s White Revolution, which made the country the world’s largest producer of milk and milk products. In the process, Amul became the largest food brand in India and has ventured into markets overseas. Amul product portfolios are based on Bread spreads, Milk drinks, Fresh milk, Powder milk, Cheese, Desserts.

Founder Story

Amul was founded in 1946 by Tribhuvan Das Patel under the guidance of Sardar Vallabhbhai Patel. As a result, Kaira Distinct Milk Union Limited was born in 1946 (later renamed to Amul). Tribhuvan Das became the founding chairman of the organization and led it until his retirement in the 70s. He hired Dr. Verghese Kurien in 1949.

Dr. Verghese Kurien known as the ‘Father of the White Revolution’ in India, was a social entrepreneur whose “billion – liter idea”, born on 26 Nov 1921 Calicut, Madras Presidency British India (now Kozhikode, Kerala, India) died on 9 Sep 2012 (aged 90) Nadiad, Gujarat, India. His other name is the Milk Man Of India. His occupation – General Manager and later Chairman on NDDB (National Dairy Development Board) and IRMA (Institute Of Rural Management, Anand, Bombay province later Bombay state and now in Gujarat, India). He received many awards like – WORLD FOOD PRIZE (1989), ORDER OF AGRICULTURAL MERIT (1997), PADMA VIBHUSHAN (1999), PADMA BHUSHAN (1966), PADMA SHRI (1965), etc.

Dr. Jay Narayan Vyas • A podcast on Anchor
Source: Anchor

Revenue model

Amul has created this name and reputation over the years delivering quality milk products to the entire country and now the world. People in eatery and restaurant businesses advertise their dishes conveying that they use Amul products. The company had a monopoly over milk processing and distribution.

In June 1948, the pasteurization of milk began. This meant that a large amount of milk could be stored for longer without perishing. This changed life for the entire community. In 1995, KDCMPUL and other district cooperatives were merged to form one larger state cooperative, namely ‘Gujarat cooperative Milk Marketing Federation Ltd’ and the brand of Amul was adopted by GCMFL.

Dr. Kurian asked Indian Dairy engineer HM Dalaya, and he developed Skimmed milk and powder from buffalo milk. This alone was such a remarkable step that 30 years later, it has knocked it over globally today.

Valuation of company

The Gujarat Cooperative Milk Marketing Federation Ltd, which markets Amul milk and dairy products, reported a 17% increase in turnover to Rs 38550 crore in the year ended March 31, 2019.

The Amul groups turnover exceeded Rs 50000 crore, Amul Federation has achieved a compound Annual Growth Rate (CAGR) of more than 17% since last 10 years because of higher milk procurement, continuous expansion in terms of adding new markets, launching of new products, and adding new milk processing capacities across India.

Revenue of company

The Gujarat Co-operative Milk Marketing Federation Ltd, which markets Amul milk and dairy products reported a 17% increase in turnover to Rs 38550 crore in the year ended March 31/20. The Amul group’s turnover exceeded Rs 50000 crore, which is also 17% higher than last year.

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Investors and Funding

The GCMMF(Gujarat Co-operative Milk Marketing Federation) that owns the Amul brand plans to invest $600 million (Rs 3000 crore) in doubling its processing capacity for milk and milk products over the next six years. Amul’s current milk product range has some 40 products. Their plan to reach out to 3000 more small towns. They are also investing in doubling cattle feed production to 9000 tonnes per day. Its current average milk processed stands at a little over 10 Million Litres per day, which clocked sales of Rs 9774 crore in 2010-11, is eyeing a turnover of Rs 30000 crore by 2020.

Competitor analysis

The FMCG market is highly competitive in nature and is known to have a combination of organized players as well as unorganized players. Thus when we analyse the market of Amul, in some cases Amul is the clear market leader, whereas in other products it is a competitor in the market.

We can categorise their competitiors in diffrent categories:

Competitors In Dairy Products like Milk, Cheese, Butter are:

Britannia:

Amul Competitors - 8

Nestle:

Images | Nestlé Global

Mother Dairy:

Top 11 Amul Competitors in the world - Amul Competitors in Dairy and Ice  Cream

Regional and local dealers:

Myth' busted? FSSAI claims local milk to be 'largely safe' despite  widespread quality fears

While talking about its product like icecream there are tons of international and national competitors:

Kwality Walls

Kwality Wall's, Dadar West, Mumbai

Vadilal

Vadilal Industries managing director: 'We regularly work on our branding  strategies to always stay on top of the game' | The Drum

Baskin Robbins

Baskin-Robbins - Wikipedia

Is company profitable?

Yes, the company is profitable because the sales turnover could also be vary depending upon the location. The turnover could be in the range of Rs 5 lakh to Rs 10 lakh per month according to Amul. However, it requires an investment, and the minimum amount is set Rs 2 lakh. One can take up Amul’s Franchise and earn a good amount every month. Amul spread all over India.

Future aspects of company

GCMMF which markets dairy products under the Amul brand will invest Rs 600-800 this fiscal in setting up new milk processing plants and expanding the capacity of existing units. Dr.Kurien was a visionary person. He employed Sylvester Da Cunha’s As Advertising Company. They came with the idea of the little polka dot frock girl for their butter campaign. Perhaps four Indian generations could identify Amul with that girl.

Interesting Facts:

  • Amul’s architect and chairman late Dr.Kurien died in the 50th year of creation of Amul.
  • The present Amul Butter Cartoons are drawn by Jayanti Rane. The Amul Girl had been the face of Amul since 1966.
  • “Amul owns 85 percent share in butter market, 65-66% share in cheese, 88% market share in butter, 63% share in infant milk, and 45% market share in dairy whitener”.
  • “Amul Girl” seems to be a lucky charm for this brand’s promotion and success.

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FAQs:

What does Amul stand for?

The Cooperative was initially referred to as Anand Milk Federation Union Limited hence the name Amul.

Who is owner of Amul?

Amul was founded in 1946 by Tribhuvan Das Patel under the guidance of Sardar Vallabhbhai Patel.

Is Amul listed in stock exchange?

Amul India Ltd. is not listed on NSE.

                                    

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