History of Amul – The Dawn of Dairy Industry in India

Anand Milk Union Limited, often known as Amul India, is an Indian cooperative dairy firm that was founded in 1948. Amul is derived from the Sanskrit word ‘Amulya,’ which meaning priceless or precious.

Amul, History of Amul, Case Study of Amul, Dairy Industry of India

Amul established in 1946 as a dairy cooperative in Anand, Gujarat. Amul is managed by the Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF). Amul motivated India’s White Revolution, propelling the country to the leading destination in the world for milk and milk products production. As a result, Amul has become the most important food brand in India and has expanded into international markets. Bread spreads, milk drinks, fresh milk, powder milk, cheese, and sweets comprise Amul’s product ranges.

History of Amul – The Beginning

Amul was founded in Anand, Gujarat, as part of a cooperative campaign against Polson Dairy. The misuse of minimum milk producers in small city separations to convey milk by brokers or operators of the main existing dairy, the Polson dairy, frequently went soured in summer, to Polson. Milk prices were set at the choice of the retailer. Except for the farmers, everybody benefitted immensely from the system. Soon thereafter, late Sardar Patel took charge of the situation, which resulted in the founding of the Kaira District Co-operative Products’ Union in Anand.

The union began pasteurising milk provided by a small number of farmers for the Bombay Milk Scheme, and by the end of 1948, it had grown to 432 farmers. The quick development caused issues such as surplus output, which the Bombay Milk Scheme couldn’t handle. To address this issue, a facility was built to convert all of the surplus milk into milk powder and butter products.

The minimum misuse of milk producers in small city separations to convey milk by brokers or operators of the main existing dairy, the Polson dairy, frequently went soured in summer, to Polson. Milk prices were set at the choice of the retailer.

Operation

Amul is continually innovating, whether it is through launching new products, developing marketing campaigns, or questioning existing societal practises to create better ones. They have converted from traditional operations to a more cost-efficient and successful method thanks to their three-tier cooperative structure.

The village dairy organisation collects milk, the district milk union obtains and processes it, and the state milk federation markets it. The model ensures that processes are efficient and quick. As a result, the Amul model has helped India become the world’s largest milk producer.

In 2014, Amul received the “CNN-IBN Innovating for Better Tomorrow Award” and the “World Dairy Innovation Award” for its continual innovation.

technology

Amul, History of Amul, Case Study of Amul, Dairy Industry of India

Amul’s evolution as one of India’s largest CPG companies has been technologically advanced. Every component of their complex supply chain has been integrated using technology, giving them insights at every stage. These insights are critical in allowing the dairy company to know, for example, which town was not contributing to the supply of milk, which tanker was not operational, which of the 200 cooling stations was operating at maximum capacity, and so on.

Amul’s digital adaptation has enabled it to achieve a 10x increase in business over the last decade. Operations are now more frictionless due to the improved information exactness and interaction with the distributor management system. Amul’s operations have improved, and it has received much-needed insights into the logistical side of things, thanks to mobile applications and automation that efficiently manage applications.

The next phase is linked to the emergence of technologies in AI and ML; the future is in tech-enabled agile CPG operations. Data-driven visibility of operations and performance is now possible in unprecedented ways.

In a country like India, small mom and pop businesses account for more than 90% of CPG purchases and revenue generating. According to Amul’s key areas, only CPG companies who invest in tech-based solutions will survive. But how and with whom should you collaborate?

We are here to help you. Retail Pulse is designed for CPG companies and retailers in developing markets; Retail Pulse provides an AI-based solution to delve into the massive data in every mom-and-pop shop and provide profound store data and insights based on data provided by photos taken by CPG company sales reps’ smartphones.

Advertising

In 1966, Amul appointed Sylvester da Cunha to develop a campaign for Amul Butter as a series of hoardings with topical commercials referring to day-to-day situations. DaCunha set a Guinness World Record for the world’s longest-running advertising campaign. Cartoonist Kumar Morey and playwright Bharat Dabholkar collaborated with Amul to create the adverts. Dabholkar praised administrator Verghese Kurien for creating a free environment that encouraged the proliferation of adverts.

The Amul girl is the company’s advertising mascot, which it uses to promote the brand. The Amul girl is utilised to convey a sense of humour into its print advertisements, easily connecting with the wider population.

It is subjected to a variety of political pressures, including commentary on the West Bengal Naxalite insurrection, the Indian Airlines employees’ strike, and depicting the Amul girl wearing a Gandhi cap.

When the Supreme Court overturned the Delhi High Court’s decision and criminalised homosexuality once more, Amul tweeted a photo of the Amul butter girl, meaning that ‘freedom of choice’ perished in ‘2013.’

Their advertisement on Aagey Badhta Hai India elicited a fantastic response from the audience. It simply discussed how their Milk is regarded as a family product, with an engaging music associated with it. It has nearly 2 million views on YouTube.

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