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Amul-An inspiration for Startup founders.

Here I have depicted the founding and growth of Amul as a company and its role in the upliftment of Indian farmers.


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Anirban Chakraborty

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Advertere- The Marketing Society of MSI

2 years ago | 1 min read

Amul cooperative was founded in 1946 as a reaction to the exploitation of local milk producers by dealers and agents of Polson dairy.The price of milk was randomly determined and government had given monopolistic rights to Polson to collect milk from Kaira dairy farmers and supply it to the city of Mumbai.

Agitated by this, farmers of Kaira approached Sardar Vallabhbhai Patel under the leadership of Tribhuvandas Patel. Sardar Patel advised them to frame an organization, i.e., Kaira District Co-usable Milk Producers' Union (KDCMPUL), and supply milk directly to Bombay Milk Scheme rather than relying on Polson. Milk collection was decentralized as most of the producers were minor farmers who could provide 1–2 liters of milk each day. Cooperatives were framed for every town.

As of now, Amul has expanded to 18 District Cooperative Milk Producers’ Unions, 3.64 million producer members, 18600 village societies, 41 million liters per day of milk handling capacity and 26.3 million liters per day of milk collection. It's sales turnover has increased from 355 million USD in 1994-95 to 6200 million USD in 2021-22. As a result of it's 3-tier model and umbrella branding Amul has managed to reduce its milk procurement, processing and packaging cost to 15% and distribution cost to 5%. Rest of 80% profits goes to the milk producers.

This has led to the upliftment of farmers in India. Thanks to Amul, from being a milk deficit state, India is now capable of exporting milk and milk products to other countries.

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Anirban Chakraborty

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Advertere- The Marketing Society of MSI


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