AMUL- a SUCces story PART 2

Amul came into being as a consequence of a revolution and it has continued to be
revolutionary in every stage of its life. It initially started a as means to balance the
fluctuating milk supply and grew at a phenomenal rate as a liquid milk supplier. The
Kaira Union began pasteurizing milk for the Bombay Milk Scheme in 1948. However by
the 1950s it was amply clear that the future lay in manufactured dairy products. Amul
responded by embarking on a wide range of dairy processing activities, involving new
technologies, and by expanding its processing facilities. It challenged the established
Polson brand in butter manufacturing, and then moved on to sweetened condensed milk
in direct confrontation with the international giant Nestle. It also locked horns with Glaxo
over the production of baby food in India. On all of these occasions Amul not only
displayed feats of resilience but in fact came out much stronger than ever before.
Amul realized it as early as late 1960s that the only way it could increase the share of
the market was by maintaining the reasonable prices of its products, but widening the
range. During 1966-1970, Amul added sweet buttermilk powder, a second brand of
baby food (Amulspray) and a high protein weaning food (Balamul). In 1974 the Amul
Milk Chocolate was released commercially and was followed by several varieties of
chocolates and chocolate confectionaries. Also, Nutramul, a malted cocoa beverage
was launched in 1976. Cheese powder was released commercially in the early 70s.
As district unions multiplied, Kaira Cooperative recognized the benefits of a marketing
federation and thus the Gujarat Cooperative Milk Marketing Federation (GCMMF) was
established in 1973. GCMMF commenced marketing on April 1, 1974
under the single brand name of Amul. In 1978-79 it registered a turnover
of Rs. 100 crore which grew to Rs. 539.67 crore in 1987-89. In 2002-03
the turnover stood at Rs. 2745.70 crore. At present GCMMF has 2.28
million producer members with a total milk collection in 2002-03 being 1.86 billion litres.
The success rate has been to the extent that GCMMF has now become India's largest
food products marketing organization.GCMMF test marketed Amul Cheese spread in 1983 following it with a new softer
cheese spread. In 1982, it introduced Amul Shrikhand in Bombay, and brought out new
flavors between 1986 and 1989. Amul UHT milk in tetra packs, with a shelf life of 15
days, was released in 1983 and by 1988-89 UHT milk with shelf life of 60 days had
become available. Between 1987 and 1989, Amul Choco Shake, Amul Elaichi Shake,
and Amul Lassi were successfully marketed in tetra bricks.
In the 1990s, Amul continued on an expansion path and several new product ranges
were added to its portfolio. A much deeper Amul Cheese range with Amul Malai Paneer
and Amul Pizza Cheese, extended Amul Mithaee range with Gulabjamuns and Kulfi
mix, a wider UHT milk range Amul Taaza milk and Amul Fresh Cream, fresh milk range
with brands like Amul Gold, Amul Smart and Amul Shakti, a new Curd range with Amul
Masti Dahi, and a new Milk drink – Amul Shakti Flavored Milk. Amul also started
aggressive marketing of its wide array of Ice creams posing stiff competition to
established players like HLL’s Kwality Walls and Mother Dairy. Recently it also
introduced ready to serve soups under the brand name of Masti. (A complete product
listing of Amul is provided in Appendix B)
Today Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul
Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have
made Amul a leading food brand in India. Amul has evolved from its traditional image
and now is a symbol of many things. Of high-quality products sold at reasonable prices.
Of the genesis of a vast co-operative network. Of the triumph of indigenous technology.
Of the marketing savvy of a farmers' organisation. And of a proven model for dairy
development.