India is a developing country where agricultural and dairy industries provide a living for the majority of the population. India produces more milk than any other country in the world. As of 2019, annual production was 187 million tonnes. Milk production accounted for over 4.2 percent of India’s gross domestic product in 2020.
Many organisations are coming up with new strategies to take advantage of India’s current dairy position and improve it even further by utilising new technological resources and providing training to the population in order to make them more skilled and technically advanced.
India is the world’s leading producer of dairy products, but it still fails to meet food safety and security criteria for milk. This is due to the lack of expertise and resources available to those who operate in the dairy industry. As a result, many new businesses are springing up with the goal of developing a business plan that will manufacture dairy products that match industry standards and can be sold profitably.
Let’s take a look at some of the leading dairy startups in India that are transforming the dairy industry in India.
The company was started by Chakradhar Ghade and Nitin Kaushal, in 2015. Country Delight delivers fresh, organic milk to the customers’ doorstep. The milk can be ordered through their mobile application and not just milk but different types of dairy products like curd, ghee, etc and different other staple foods can be ordered through the application.
2. Stellapps
Stellapps Website
Ranjith Mukundan, Praveen Nale, Ramkrishna Adukuri, and Venkatesh Seshayee established Stellapps in 2011. Stellapps is a firm that digitises dairy products from farm to consumer. The startup employs the Internet of Things (IoT), Big Data, and database management, among other technologies, to improve dairy distribution network features such as milk yield, milk purchasing, logistics system, animal insurance, and many other things.
3. Happy Milk
Happy Milk Website
Mehal Kejriwal co-founded Happy Milk in December 2017. The company has its very own farm on the outskirts of Bangalore with roughly 400 cattle. Happy Milk caters to individual clients as well as businesses such as Nature’s Basket and Foodhall. It also accepts large orders. Customers can also make a subscription which is available via apps such as DailyNinja, Doodhwala, and Amazon Prime Now.
4. Klimom
Klimom Website
Klimom is well-known for delivering fresh dairy products directly from the farm to clients’ doors. All of the milk products are created from Gir cow’s milk and are of the highest quality. The farms are located at Sangareddy, Hyderabad. The company claims to have bred Gir cows exclusively, and the fodder is grown on the farm as well. The cows are milked by hand, and the calves are fed completely before the cows are milked.
5. The Milk India Company
The company was founded by Shilpi Sinha in 2018. Milk India company aims to provide clean, fresh and nutritious cow milk to the client’s doorstep. The Milk India Company delivers unprocessed, unpasteurised milk to the customers daily. The company is certified by the National Dairy Research Institute of India. The Milk India Company delivers cow milk in glass bottles to customers’ doorsteps every morning, making it environmentally sustainable.
6. Milk Mantra
Milk Mantra Website
Based in Odisha, the company was founded in 2009 by Srikumar Misra. Milk Mantra began operations in 2012 and has made significant progress in reducing the state’s milk scarcity since then. Apart from milk, the company produces and sells a variety of dairy products such as ghee, curd, and cheese, as well as flavoured milkshakes under the Milky Moo and Mooshake brands.
7. Whyte Farms
Whyte Farms Website
Kanika Yadav and Sanjeev Yadav founded the company in 2015 with the goal of supplying healthy and clean cow’s milk. The Delhi-based startup, Whyte Farms provides pasteurised milk in glass bottles to roughly 3,000 families. The business is based on a 30-acre farm in Tijara, around 90 kilometres from Delhi.
8. Puresh Daily
Puresh Daily Website
Puresh Daily was formed in 2019 by IIM graduate Manish Piyush and his childhood friend Aditya Kumar and is based in Jharkhand. The vision of this company is to provide chemical-free pure milk to the population. The company provides its services through its mobile application, where people can find the subscription plan that suits their needs. Due to milk’s health benefits and being a staple in the Indian diet, the company experienced a 100 percent growth during the COVID-19 lockdown.
9. Matratva Dairy
Matratva Dairy Website
Based in Ajmer, Rajasthan, Matratva Dairy was founded in 2014, the company was founded by Ankita Kumawat, Lokesh Gupta, and Phool Chand Kumawat. The main products of the company are milk and ghee. All the dairy products are prepared by using traditional methods and minimum use of machinery or technology. Matratva Dairy will offer its products through e-commerce platforms like Amazon and BigBasket with rebranding under Goratan Products Pvt. Ltd.
10. Milkbasket
Milkbasket Website
Milkbasket is a grocery delivery service that operates on a daily basis. It was founded by Ashish Goel, Yatish Talavdia, Anant Goel, and Anurag Jain in 2015. The name ‘Milkbasket’ comes from the fact that milk entices buyers to buy other items as well. The company brings milk and other necessities to the customer’s doorstep.
Milk is a vital and necessary component of a healthy diet. It provides the body with all of the critical nutrients it requires. India has the greatest milk production and consumption rates. Many startups have formed to improve the country’s dairy production by introducing innovative technologies and providing training to locals, thereby enhancing the business and creating an environmentally friendly industry without injuring the animals and obtaining the highest potential milk yield.
FAQs
Which is the best dairy company in India?
Parag Milk Foods Ltd, Nandini, Dudhsagar Dairy, and Mother Dairy are some of the leading dairy companies in India.
Is dairy profitable in India?
Yes, the Dairy business is one of the most in-demand and profitable businesses in India.
Which state is the largest producer of milk in India?
Uttar Pradesh is India’s most milk-producing state, accounting for roughly 18% of the country’s total milk production.
Amul is an Indian dairy cooperative society based out of Anand that lies in Gujarat. The word ‘Amul’ is derived from the Sanskrit word ‘Amulya’ which means priceless or precious. This case study on Amul discusses the history of Amul, its business model, revenue, and the key factors behind Amul’s success.
Founded in 1946, Amul is managed by the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), a cooperative body that comprises 3.6 million milk producers of Gujarat today.
Amul started India’s White Revolution that made India the world’s biggest maker of milkand milk products. Amul was founded by Tribhuvandas Patel under the direction of Sardar Vallabhbhai Patel,the first deputy prime minister of India.
The Kaira District Milk Union Limited was then conceived in 1946. Tribhuvandas headed the organization until his death in the 70s. He spoke to Dr. Verghese Kurien in 1949 and persuaded Dr. Kurien to assist in the mission of the White Revolution. Dr. Verghese Kurien is widely considered the founder of Amul.
May 9, 2021 – On the occasion of Mother’s Day, Amul dedicateda new doodle to all the mothers. It features Amul’s mascot feeding milk to a child in a bottle.
May 7, 2021 – The suspension of IPL 2021 attracted a series of memes across various platforms. Amul hopped on this trend and shared a topical on this regard that has gone viral all over the internet. The creative topical of Amul reads – India Postpones League!
April 18, 2021 – Gujarat Co-operative Milk Marketing Federation Ltd (that markets Amul brand) reached out to AAR on the flavored milk taxable under GST. The brand deals with flavored milk products Amul Kool/Amul Kool Café. Thereby, the Gujarat Authority for Advance Ruling (AAR) said – “Flavored milk is basically ‘beverage containing milk’ and will attract 12% GST”
March 11, 2021 – Amul submitted a plan to The Government of India with an aim to make India a global hub for mozzarella cheese exports that are made from buffalo milk. It is planning to invest around INR 200 crore.
Verghese Kurien and Tribhuvandas Kishibhai Patel founded Amul. R S Sodhi is the CEO of Amul since June 30, 2010.
Amul is a cooperative brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF). Today, it is jointly owned by 36 lakh milk producers in Gujarat, and the apex body of 13 District Milk Unions spread across 13,000 villages of Gujarat.
Amul Founder – Verghese Kurien
Verghese Kurien – Biography
Amul Founder
Dr Verghese Kurien
Born
26 November, 1921
Birthplace
Kozhikode, Kerala, India
Nationality
Indian
Died
9 September, 2012
Place of Death
Nadiad, Gujarat, India
Life-span
90 years
Education
University of Madras; Michigan State University
Profession
Social Entrepreneur
Founded
Amul, National Dairy Development Board (NDDB), Institute of Rural Management, Anand (IRMA)
Secured Position
General Manager & later Chairman of NDDB and IRMA
Also known as
Milkman of India; Father of the White Revolution of India
Spouse
Molly Kurien
Daughter
Nirmala
Tribhuvandas Kishibhai Patel – Biography
Amul Founder
Tribhuvandas Kishibhai Patel
Born
22 October 1903, Bombay Presidency
Died
3 June 1994, Anand
Founded
Amul, Tribhuvandas Foundation
Party
Indian National Congress
Awards
Ramon Magsaysay Award for Community Leadership, Padma Bhushan
Here’s a brief analysis of Amul’s history and how Amul contributed to the White Revolution. Amul cooperative was registered on 19 December 1946 as a reaction to the exploitation of local milk producers by the dealers and the agents of the main dairy of that time, the Polson dairy. The price of milk was randomly determined. The 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 treatment, the farmers of Kaira approached Sardar Vallabhbhai Patel under the administration of their leader Tribhuvandas K. Patel. Sardar Patel advised them to frame an organization, i.e., Kaira District Co-usable Milk Producers’ Union (KDCMPUL), and supply milk directly to the Bombay Milk Scheme rather than relying on Polson. He sent Morarji Desai to sort out the issues faced by the farmers.
Milk collection was decentralized as most of the makers were minor farmers who could provide 1–2 liters of milk each day. Cooperatives were framed for every town.
By June 1948, KDCMPUL had begun pasteurizing milk for the ‘Bombay Milk Scheme’. Under the leadership of Tribhuvandas Patel, Amul celebrated its 25th Anniversary in 1973 with Morarji Desai, Maniben Patel, and Verghese Kurien.
Amul’s First Milk Plant in Anand
The cooperative was additionally created and headed by Dr. Verghese Kurien with H.M. Dalaya. Dalaya’s innovation of making skimmed milk powder from buffalo milk for the first time in the world and then making it on a commercial scale with Kurien’s help led to the first modern dairy of the cooperative at Anand (Gujarat). It competed against many established market players.
Within a short period, the success at the cooperative’s dairy spread to Anand’s neighborhood in Gujarat. Thus, five unions in other districts like Mehsana, Banaskantha, Baroda, Sabarkantha, and Surat were set up by following the approach sometimes referred to as the ‘Anand pattern’.
In 1970, the White Revolution of India began. In 1973, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), an apex marketing body of these district cooperatives, was set up to combine forces and expand the market while saving on advertising and avoiding internal competition. The Kaira Union, which had the brand name Amul with it since 1955, transferred the name to GCMMF.
Since then, GCMMF has become the largest food products marketing organization in India. It is the leading organization of dairy cooperatives in Gujarat. GCMMF is responsible for the exclusive marketing of products falling under ‘Amul’ and ‘Sagar’ brands.
Over the last five and a half decades, dairy cooperatives in Gujarat have created an economic network that links more than 3.1 million village-manufactured milk products with millions of consumers in India.
On September 30, 2018, Prime Minister Narendra Modi inaugurated Amul’s chocolate plant in Mogar, Anand near its headquarters.
Amul pursues a unique plan of action in which ‘esteem for cash’ items are given to its purchasers while securing the premiums (as a proprietor) of the milk-producing farmers who are its providers. As milk is a transient item, the rancher could endure a misfortune on the off-chance that it isn’t sold before the part of the bargain.
The cooperative model used by Amul came to be known as the “Anand design” cooperative framework. It is a three-level structure that involves town social orders, region-level dairy associations, and a state-level organization. Every level is financially free of the others and involves agents selected from the level below it.
It is fairly simple to understand. When one person does not have enough funds to generate the required capital for the company, other members with the same intention pool their resources together to make a whole organization that has substantial capital. The cooperative model is highly advantageous as it ensures faith in the brand. Even banks prefer to loan money to cooperative businesses over individual ownership. Today, Amul constitutes 30 Lakh farmers from all over India.
Situated in the town of Anand, the Kaira District Milk Cooperative Union (Amul) has grown exponentially. It held hands with other milk cooperatives in Gujarat and now covers 2.12 million farmers, supporting 10,411 towns’ milk. It focuses on fourteen area-level plants (associations) under the general supervision of GCMMF.
Since the beginning, there was an assumption that this activity would directly profit and change poor farmers and add to the improvement of society. Markets, at that point and even today, are crude and poor in the foundation. Amul and GCMMF recognized that improvement and development couldn’t be left to market powers and that proactive intercession was required.
Two key necessities were distinguished. –
First, that continued development for the long haul would rely upon coordinating free market activity. It would require an overwhelming interest in the synchronous advancement of providers and customers.
Second, the powerful administration of the system and business feasibility would require proficient administrators and technocrats.
The Three-tier Model of Amul
Amul is a brilliant organization that works with simplicity yet perfection. It follows a three-step process where each body functions effectively. The three tiers include:
Village Dairy Cooperative Society – Each manufacturer is a part of the village dairy cooperative society that is a community for manufactures.
District Milk Unions – Village Dairy Cooperative Society members elect their representatives who together form District Milk Union.
State Milk Federation – This federation is responsible for the distribution and selling of products in the market.
Amul as the Umbrella Brand
The system pursues an umbrella marking technique. Amul is the basic brand for most item classifications created by different associations: fluid milk, milk powders, margarine, ghee, cheddar, cocoa items, desserts, frozen yogurt, and consolidated milk. Amul’s sub-brands incorporate variations, for example, Amulspray, Amulspree, Amulya, and Nutramul.
The palatable oil items are assembled around Dhara and Lokdhara, mineral water is sold under the Jal Dhara brand while natural product beverages bear the Safal name. By demanding an umbrella brand, GCMMF skillfully maintained a strategic distance from association clashes and created an open door for the patrons to coordinate in creating items.
Amul’s Development of Products
Amul’s item improvement was driven both by the soul of the cooperative framework and productivity. Being a farmers’ cooperative, Amul was focused on purchasing all the milk offered by the former. The transitory idea of milk made it important for Amul to process the surplus milk and enter new item classifications as the generation expanded.
Margarine and Butter
Propelled in 1955, margarine was one of the main milk items offered by Amul. It was additionally the first run-through Amul effectively tested on the authority of a built-up brand. Amul uprooted Polson to rise as the undisputed pioneer in margarine advertisement.
Cheese and Cheddar
GCMMF propelled cheddar in 1959 followed by cheddar powder in the mid-1970s. The notoriety of cheddar expanded during the 1980s.
Milk and UHT Milk
Amul was the market chief in the Gujarat entire milk showcase with a 90% piece of the pie in 2002; aside from providing milk to parts of Maharashtra and Rajasthan.
In 1966, Amul hired Sylvester da Cunha, the managing director of an advertising agency, to design an ad campaign for Amul Butter. DaCunha designed the campaign as a series of hoardings with topical ads that related to day-to-day issues. It was popular and earned a Guinness World Record for the longest-running ad campaign in the world.
In the 1980s, cartoon artist Kumar Morey and scriptwriter Bharat Dabholkar were roped in for sketching Amul’s ads. But Dabholka rejected the trend of using celebrities in advertisement campaigns. Dabholkar credited chairman Verghese Kurien for creating a free atmosphere that encouraged the development of the ads.
The Amul girl is the advertising mascot used by the company to promote the brand. The brand has been cleverly using the cartoon figure in its longest-running ad campaign. The Amul girl is used to insert an element of humor into its print ads.
Indians have liked Amul’s advertisements and the brand has seen higher customer engagement. The brand recall value for Amul increased. The Amul girl advertising campaign is often described as one of the best Indian advertising concepts.
Amul’s Innovation
Amul has constantly been innovating, be it launching new products, creative marketing campaigns, or challenging traditional societal trends to come up with better ones. As mentioned, Amul in the 1960s became the first brand in the world to make skimmed milk powder from buffalo milk.
Also with its three-tiered cooperative structure, Amul transitioned from traditional operations to a more cost-efficient and effective structure. For its continuous innovation, Amul won the “CNN-IBN Innovating for Better Tomorrow Award” and “World Dairy Innovation Award” in the year 2014.
Efficient Supply Chain of Amul
Amul follows a three-tier cooperative structure. It consists of a dairy cooperative society at the village level that is affiliated with milk unions at the district level which in turn get federated to a milk federation at the state level. Milk is collected at the village dairy society, obtained and processed at the district milk union, and marketed at the state milk federation.
The greatness of this model lies in the fact that Amul was the first company to follow this model. It was reciprocated all over the country under ‘Operation Flood’ in the 1970s. The model ensures that there is efficiency and swiftness in operations. With this, the Amul model has helped India become the largest milk producer in the world.
Coordinating Nature of Amul
Amul follows the ‘branded house architecture’ way wherein whatever it promotes is done under a common brand name – Amul. The prime focus is on promoting the parent brand rather than individual products; this helps Amul gain more brand visibility and spend lesser on marketing and advertising costs.
Given the enormous number of associations and substances in the inventory network and decentralized duty regarding different exercises, successful coordination is basic for effectiveness and cost control. GCMMF has understood this procedure well and accomplishes the level of control.
The first time I came across Amul was when the catchy tune of ‘Amul Doodh Peetha Hai India’ rang from the television. I was, maybe 6 years old. Thirteen years later, I still encounter some variation or the other and it evoked memories as always. Some brands are, for a long time successful, but few managed to touch our hearts. Let’s take a look at the various Marketing Strategies of Amul –
Amul Marketing Strategies
Amul – Revenue and Growth
Amul’s revenue stood at INR 38,550 crores (US$5.4 billion) in 2020. The Gujarat Cooperative Milk Marketing Federation Ltd., responsible for marketing Amul milk and dairy items, revealed a 13% expansion in its turnover to Rs 33,150 crores in the year finished March 31, 2020. The Amul gathering’s turnover surpassed Rs 45,000 crores which are 13% higher than a year ago, i.e., in 2019.
The Amul Federation has accomplished a compound yearly development pace of over 17.5% for as long as nine years because of higher milk obtainment, extension in business sectors, and the dispatch of new items.
FAQs
What is Amul’s Full form?
It stands for Anand Milk Union Limited. Amul is an Indian dairy cooperative society based in Anand (Gujarat). The word ‘Amul’ is derived from the Sanskrit word ‘Amulya’ which means priceless or precious.
What is White Revolution and who started it?
The white revolution was the initiative responsible for the growth of milk production in India and encouraged the production and use of Indian dairy products. Amul started India’s White Revolution, which made India the world’s biggest maker of milk and milk products. Dr. Verghese Kurien is known as the ‘Father of the White Revolution’ in India.
What was the effect of the White Revolution?
White Revolution made India the biggest manufacturer of milk and milk items. It additionally diminished the acts of fraud and malpractices by milk dealers and traders.
How was Amul founded or when did Amul start?
Amul cooperative was registered on 19 December 1946 as a reaction to the exploitation of local milk producers by the dealers and the agents of Polson dairy.
Who is Amul’s Owner?
Amul isowned by Gujarat Cooperative Milk Marketing Federation, Ministry of Cooperation, Government of Gujarat
Who is the founder of the Amul brand?
Dr. Verghese Kurien and Tribhuvandas Kishibhai Patel are considered as the Founders of Amul. Tribhuvandas headed the organization until his death in the 1970s. He got in touch with Dr. Verghese Kurien in 1949 and persuaded Dr. Kurien to help with the mission.
What does Amul mean?
It stands for Anand Milk Union Limited. The word ‘Amul’ is derived from the Sanskrit word ‘Amulya’ which means priceless or precious.
What is the mission statement of Amul?
The mission statement of Amul revolves around the company’s aim of providing remunerative returns to the farmers. It also serves the interest of the consumers by providing quality products, which offer good value for money.
Where is the headquarters of Amul?
The headquarters of Amul is in the Anand district of Gujarat.
What is the Amul product life cycle?
The Amul product life cycle consists of 4 stages, which are Introduction, Maturity, Growth and Decline.
Varad Kitey
