On the 16th of September 2016, TAPMI had the privilege of being addressed by Mr Rajan J, Assistant General Manager (Sales), AMUL. The theme for the session was “Amul Business Model-Best Practices in Competency and Inclusion”. Mr. Rajan commenced by saying he would discuss the best practices that led Amul to become the biggest food brand in the country.
Starting with a historical context, Mr. Rajan said that, “In the 1940’s, Indian Dairy Industry was in a dismal state”. He described how the dairy farmers were exploited by a chain of agents and middlemen. The customers on the other hand, faced problems of quality and availability of milk. To improve this scenario Shri Sardar Patel gave the idea of having a business model where the entire dairy value chain would be controlled by dairy farmers. Shri Tribhuvandas Patel and Shri Morarji Desai were responsible for gathering dairy farmers’ support for the recently established co-operative society. Dr. Verghese Kurien and Mr.H.M. Dalaya were instrumental in further developing and managing the co-operative.
Mr. Rajan also spoke about post establishment phase of Amul. He told that, once Amul was established, providing value for many (serving interests of milk producers) and value for money (providing quality milk to customers) became their core agenda of business. Providing veterinary services, artificial insemination, and vaccination were other best practices in inclusion. He told that, Amul adopted best practices in competency. Modernizations such as milking machines, automated milk collection systems, tagging the animals and tracking the amount of milk given by each animal were some of the process innovations. He also spoke about Amul’s highly innovative ad campaigns. Their long running topical campaign with the “Amul butter girl and the taste of India” has gained immense popularity.
“Amul has created a socio-economic revolution in rural India” Mr. Rajan posited. He felt farmers are getting more money than ever before and women are highly benefited by this co-operative model as it empowers them. Amul’s success story has also influenced many other milk co-operative societies throughout the country with the model replicated multiple times.
In conclusion, Mr. Rajan said that, Amul has become India’s biggest food brand through their best practices such as innovation in product, technology and marketing.