One of the most visionary and impactful business houses in India is Amul. Founded by Dr. Verghese Kurien, Amul went on to become not only a billion-dollar company but also a symbol of tenacity and ambition. It empowers the very backbone of India- the farmers. Amul has always believed in values like gender and economic equality- values that had lost their meaning back in those days. Dr. Verghese Kurien finished his coursework at Michigan University and came back to India to set up Amul with a mission to help the poor and exploited farmers. Amul was founded in 1946 before our country gained independence. The Pre-independence era was ruthless and tyrannical for Indian companies. Before Amul was founded, farmers had to travel for hours in harsh conditions to sell milk at an underpriced value to other dairy companies but Amul created a milk-collection framework at villages that enabled farmers to provide the best possible value in return for milk. Amul used technology as a tool to maintain the quality of its products. It paid farmers based on the fat content of the milk to prevent adulteration. Along with starting the White Revolution in India, Amul also became a trailblazer by starting India’s Technical Revolution.
Till date, Amul has given 80% of its revenue to farmers who provide milk to the company, if we buy any Amul product 80% of its cost price is given to the farmers and it manages all the other operations and distribution from the rest 20% which is an incredible achievement because normally cost of operations and distribution can easily reach 30-50% of the cost price. All the profit is given to the farmers that is why it not only a dairy company but also a cooperative society. Amul does not want to make money, its only goal is to help others. The word ‘Amul’ itself has been derived from ‘Amoolya’ a word of Indian origin that means ‘priceless’. It can be said that Amul is a company which is owned by farmers because of its revenue distribution and good intentions.
Amul was started from one village with a production of 300 liters of milk and it was later scaled to operate in more than 18,600 villages, producing 30 million liters of milk every day and more than 50 different dairy products like Milk-powder, Ghee, Cheese, Curd, Yoghurt, buttermilk, Chocolate, Ice-cream, etc. These products are exported to more than 20 countries like the USA, Japan, New Zealand, Singapore, Australia, Malaysia, Thailand, China, etc. In 1947 India was a milk deficit country and we had to import milk from countries like New Zealand but Amul transformed India from a milk deficit country into the largest milk producer in the world and today we even export milk back to New Zealand. Today, Amul has an 85% market share in the butter market, 66% market share in Cheese, and is also the Market Leader in Cheese. It also has a 63% share in infant milk and a 45% market share in dairy whiteners. It produces nearly about 20 percent of the world’s total milk. It has nearly 60 sales offices spread all over the country, more than 10,000 wholesale dealers and, more than 1,000,000 retailers, all of whom contribute to the making Amul The Taste of India. It is one of the most prestigious brands in the dairy industry in the world.
At present, 3.6 million farmers and their families are leading a more content life due to Amul. Dr. Kurien had a novel idea which he transformed into reality through his strong willpower, determination, and hard work. Amul wanted to improve the lives of everyone. It ensured hygienic arrangements, proper diet, and nourishment for its cattle. Leaders like R.S. Sodhi have skyrocketed the company’s revenue and have shaped Amul into a 21st-century conglomerate by innovation and determination. Under new leadership, Amul has incorporated operations and strategies like Umbrella branding that saves money and energy. Dr. Kurien organized the company, established the basic infrastructure, and gave millions of people a livelihood. Dr. Verghese Kurien passed away on 9th September 2012 but his work and moral values will continue to live forever.
Amul taught us the importance of togetherness. It is a living example of the Indian saying, “Vasudhaiva Kutumbakam- the entire world is our family”. Together we can achieve anything. Amul’s mission statement is “Value for many and Value for money” which means adding value to everyone’s lives. It is a beautiful example of a cooperative society where everyone is benefitted and earns more. Amul has transformed India like never before.
By Ishan Tripath
