Introduction To Amul: Indian Dairy Cooperative Society Anand Indian Gujarat

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INTRODUCTION TO AMUL

Amul, is an Indian dairy cooperative society, based at Anand in the Indian state of Gujarat.


[3]
 Formed in 1946, it is a cooperative brand managed by a cooperative body, the Gujarat Co-
operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by
36 lakh (3.6 million) milk producers in Gujarat. Amul spurred India's White Revolution,
which made the country the world's largest producer of milk and milk products.

Type Cooperative society

 Food processing
Industry
 FMCG

Founded 1946; 75 years ago

Founder Tribhuvandas Patel

Headquarters Anand, Gujarat, India

Area served Worldwide

Key people Rupinder Singh Sodhi (MD)[1]

Products Dairy

 ₹38,550 crore (US$5.4 billion)
Revenue
[2]
 (2020)

Number of 1,000 (Marketing Arm)


employees 36 lakh (3.6 million) (Milk producing
members)[2]

Website amul.com
amuldairy.com
Amul was spearheaded by Tribhuvandas Patel under the guidance of Sardar Vallabhbhai
Patel. As a result, Kaira District Milk Union Limited was born in 1946 (later renamed to
Amul). Tribhuvandas became the founding chairman of the organization and led it until his
retirement in 70s. He hired Dr. Verghese Kurien in 1949. He convinced Dr. Kurien to stay
and help with the mission. Under the chairmanship of Tribhuvandas, Dr. Kurien was initially
the general manager and helped guide the technical and marketing efforts of Amul. Dr.
Kurien was the chairman of Amul briefly after Tribhuvandas Patel died in 1994.

Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited
with the success of Amul's marketing. Amul has ventured into markets overseas.

 ADVERTISING

Amul hired Sylvester da Cunha, to design a campaign as a series of hoardings with


topical ads, relating to day-to-day issues for Amul Butter, in 1966. DaCunha earned a
Guinness world record for the longest-running ad campaign in the world. Cartoon
artist Kumar Morey and scriptwriter Bharat Dabholkar had been involved with Amul
for sketching the ads. Dabholkar acknowledged administrator Verghese Kurien for
making a free climate that cultivated the advancement of the advertisements.

 PRODUCTS

Amul markets a wide scope of items including milk powders, milk, ghee, chocolate,
Shrikhand, Gulab Jamun, dessert, cream, and others making it the biggest
sustenance brand in India with a yearly turnover in abundance of US $1 billion (2006-
07).
1.1 SIGNIFICANCE OF THE STUDY

In the present research paper a relationship between the designs of an organization with its
operational efficiency indicators has been examined. It was found that these indicators play a
very important role in the success of the organization. The factors were studied in the context
to a co-operative form of organization and while comparing it with the corporate form, it was
found that the design of the Amul structure is somewhat different as it believes in the federal
form of structure each unit is independent of each other.

1.2 OBJECTIVE OF THE STUDY

To make study more scientific and systematic the researcher frame following objectives:

 To study the significance of Amul co-operative in India.


 To identify the relationship between organizational design and operational efficiency
of Amul co-operative in India.
 To suggest an action plan for smooth functioning of Amul co-operative in India

1.3 RESEARCH METHODOLOGY

To evaluate the success of Organizational Design the two types of data sources are
considered. Primary Source as well as Secondary Source. Primary data was collected through
a structured closed / open-ended questionnaire and interviews with senior officials of AMUL,
its employees and customers.
OPERATIONS ACTIVITIES AND THEIR LINKAGE

Supply Chain

Amul has effectively managed both upstream and downstream partners in establishing one of
the most complex supply chains across the globe. The producers bring milk to the village
cooperatives (foot/bicycle), which is then transported to the unions by specialised
trucks. From the union’s production facility, milk is transported to wholesale distributors who
then transport the milk to retailers in specialised trucks.
All of these processes are outsourced to third party logistics and retail partners to ensure
efficient execution. A stringent verification process and guarantees for the safety of the milk
products are required from channel members before they are on-boarded to the network.

To the wholesalers and retailers, Amul offers reasonable margins on a high volume good. It
offers support in demand prediction, reducing the potential bullwhip effects that might arise
from inexperienced sales partners. It also offers easy repayment programs for capital
investments in infrastructure (freezers etc) by the retailers.

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