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

The [3] word Amul( ) is derived from the Sanskrit wordAmulya( ), meaning invaluable. The cooperative is also sometimes referred to by the unofficial backronym: Anand Milk Union Limited. Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.03 million milk producers in [4] Gujarat. Amul spurred India's White Revolution, which made the country the world's largest producer of milk [5] and milk products. In the process Amul became the largest food brand in India and has also ventured into markets overseas. Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (19732006), is [6] credited with the success of Amul. '''''''''''==History== The Kaira District Co-operative Milk Producers' Union Ltd. was registered on 1 December 1946 as a response to the exploitation of marginal milk producers by traders or agents of the only existing dairy, the Polson (brand) dairy, in the small town of Anand (in Kaira District [7] ofGujarat). Milk Producers had to travel long distances to deliver milk, which often went sour in summer, to Polson. The prices of buffalo and cow milk were arbitrarily determined. Moreover, the government at that time had given monopoly rights to Polson to collect milk from Anand and supply it [8][9] to Bombay city. Angered by the unfair and manipulative trade practices, the farmers of Kaira approached Sardar Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to form a cooperative and supply milk directly to the Bombay Milk Scheme [10] instead of Polson (who did the same but gave them low prices). He sent Morarji Desai to organise the farmers. In 1946, the milk farmers of the area went on a strike which led to the setting up of the [9] cooperative to collect and process milk. Milk collection was also decentralized, as most producers were marginal farmers who could deliver atmost 12 litres of milk per day. Cooperatives were formed [11] for each village too. The Cooperative was further developed and managed by Dr.Verghese Kurien along with H.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk for the first time anywhere [12] in the world and a little later, along with Kurien's help, making it on a commercial scale, led to the first modern dairy of the cooperative at Anand, which would successfully compete against established players in the market. The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to Anand's neighbourhood in Gujarat, and within a short span, five unions in other districts Mehsana, [9] Banaskantha, Baroda, Sabarkantha and Surat were set up. In order to combine forces and expand the market while saving on advertising and avoid competing against each other, the GCMMF, an apex marketing body of these district cooperatives was set up in 1973. The Kaira Union which had the [13] brand name of Amul with it since 1955, transferred it to GCMMF.
Contents
[hide]

[2]

1 Company info 2 The Three-tier "Amul Model"

o o

2.1 District Cooperative Milk Producer's Union (Dugdh Sangh) 2.2 State Cooperative Milk Federation (Federation)

3 Impact of the "Amul Model" 4 Achievements of the "Amul Movement" 5 Achievements of GCMMF

5.1 The Amul brand

6 Products 7 Mascot 8 Advertising 9 In popular culture 10 References

[edit]Company

info

The GCMMF is the largest food products marketing organisation of India. It is the apex organisation of the Dairy Cooperatives of Gujarat. 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 milk producers with [citation needed] [citation millions of consumers in India . These cooperatives collect on an average 9.4 needed] million litres of milk per day from their producer members, more than 70% of whom are small, marginal farmers and landless labourers and include a sizeable population of tribal folk and people [citation needed] belonging to the scheduled castes. The turnover of GCMMF (AMUL) during 201011 was 97.74 billion (US$1.78 billion). It markets the products, produced by the district milk unions in 30 dairy plants. The farmers of Gujarat own the largest state of the art dairy plant in Asia Mother Dairy, Gandhinagar, Gujarat which can handle [14] 3.0 million litres of milk per day and process 160 MTs of milk powder daily. Amul Dairy established at Anand is the crown glory of the district. By launching the milk business in a scientific way, the dairy heralded White Revolution in Gujarat which is well established now. The dairy has provided the farmers an important source of supplementary income through animal husbandry. Today it has become a world renowned organisation. On 18 Aug 2012, Vipul Chaudhary of Mehsana district's milk cooperative was elected chairman of [15] GCMMF, following a court's intervention. [edit]The

Three-tier "Amul Model"

This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (February 2012)

The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level which in turn is further federated into a Milk Federation at the State level. The above three-tier structure was set up in order to delegate the various functions, milk collection is done at the Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation. This helps in eliminating not only internal competition but also ensuring that

economies of scale is achieved. As the above structure was first evolved at Amul in Gujarat and thereafter replicated all over the country under the Operation Flood Programme, it is known as the Amul Model or Anand Pattern of Dairy Cooperatives. Responsible for Marketing of Milk & Milk Products Responsible for Procurement & Processing of Milk Responsible for Collection of Milk Responsible for Milk Production

'======amul The main functions of the amul are as follows: Collection of surplus milk from the milk producers of the village & payment based on quality & quantity Providing support services to the members like Veterinary First Aid, Artificial Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, conducting training on Animal Husbandry & Dairying, etc. Selling liquid milk for local consumers of the village Supplying milk to the District Milk Union

Thus, the VDCS in an independent entity managed locally by the milk producers and assisted by the District Milk Union. [edit]District

Cooperative Milk Producer's Union (Dugdh Sangh)

The main functions of the Union are as follows: Procurement of milk from the Village Dairy Societies of the District Arranging transportation of raw milk from the VDCS to the Milk Union. Providing input services to the producers like Veterinary Care, Artificial Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, etc. Conducting training on Cooperative Development, Animal Husbandry & Dairying for milk producers and conducting specialised skill development & Leadership Development training for VDCS staff & Management Committee members. Providing management support to the VDCS along with regular supervision of its activities. Establish Chilling Centres & Dairy Plants for processing the milk received from the villages. Selling liquid milk & milk products within the District Process milk into various milk & milk products as per the requirement of State Marketing Federation. Decide on the prices of milk to be paid to milk producers as well on the prices of support services provided to members.

[edit]State

Cooperative Milk Federation (Federation)

The main functions of the Federation are as follows: Marketing of milk & milk products processed / manufactured by Milk Unions. Establish distribution network for marketing of milk & milk products. Arranging transportation of milk & milk products from the Milk Unions to the market. Creating & maintaining a brand for marketing of milk & milk products (brand building).

Providing support services to the Milk Unions & members like Technical Inputs, management support & advisory services. Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions. Establish feeder-balancing Dairy Plants for processing the surplus milk of the Milk Unions. Arranging for common purchase of raw materials used in manufacture / packaging of milk products. Decide on the prices of milk & milk products to be paid to Milk Unions. Decide on the products to be manufactured at various Milk Unions (product-mix) and capacity required for the same. Conduct long-term Milk Production, Procurement & Processing as well as Marketing Planning. Arranging Finance for the Milk Unions and providing them technical know-how. Designing & Providing training in Cooperative Development, Technical & Marketing functions. Conflict Resolution & keeping the entire structure intact.

Today, there are around 176 cooperative dairy Unions formed by 1.25 lakh dairy cooperative societies, having a total membership of around 13 million farmers on the same pattern, who are processing and marketing milk and milk products profitably, be it Amul in Gujarat or Verka in Punjab, Vijaya in Andhra Pradesh, Milma in Kerala, Gokul in Maharashtra, Saras in Rajasthan or a Nandini in Karnataka. This entire process has created more than 190 dairy processing plants spread all over India with large investments by these farmers institutions. These cooperatives today collect approximately 23 million kgs. of milk per day and pay an aggregate amount of more than [citation needed] Rs.125 billion to the milk producers in a year . [edit]Impact

of the "Amul Model"

The effects of Operation Flood Programme are more appraised by the World Bank in its recent evaluation report. It has been proved that an investment of Rs. 20 billion over 20 years under Operation Flood Programme in 70s & 80s has contributed in increase of Indias milk production by 40 Million Metric Tonne (MMT) i.e. from about 20 MMT in pre- Operation Flood period to more than 60 MMT at the end of Operation flood Programme. Thus, an incremental return of Rs. 400 billion annually have been generated by an investment of Rs. 20 billion over a period of 20 years. This has been the most beneficial project funded by the World Bank anywhere in the World. One can continue to see the effect of these efforts as Indias milk production continues to increase and now stands at 90 MMT. Despite this fourfold increase in milk production, there has not been drop in the prices of milk during the period and has continued to grow. Due to this movement, the countrys milk production tripled between the years 1971 to 1996. Similarly, the per capita milk consumption doubled from 111 gms per day in 1973 to 222 gm per day in 2000. Thus, these cooperatives have not just been instrumental in economic development of the rural society of India but it also has provided vital ingredient for improving health & nutritional requirement of the Indian society. Very few industries of India have such parallels of development encompassing such a large population. These dairy cooperatives have been responsible in uplifting the social & economic status of the women folk in particular as women are basically involved in dairying while the men are busy with their agriculture. This has also provided a definite source of income to the women leading to their economic emancipation.

The three-tier Amul Model has been instrumental in bringing about the White Revolution in the country. As per the assessment report of the World Bank on the Impact of Dairy Development in India, the Anand Pattern has demonstrated the following benefits: is has multi-dimensional impacts importance of getting government out of commercial enterprises importance of market failure in agriculture power & problems of participatory organisations importance of policy correct

[edit]Achievements

of the "Amul Movement"

1. The dairy cooperatives have been able to maintain democratic structure at least at the grassroot level with the management committee of the village level unit elected from among the members in majority of the villages. 2. The dairy cooperatives have also been instrumental in bridging the social divide of caste, creed, race, religion & language at the villages, by offering open and voluntary membership. [edit]Achievements

of GCMMF

3.1 million milk producer member families 15,760 village societies 15 District Unions 9.4 million liters of milk procured per day 150 million (US$2.73 million) disbursed in cash daily GCMMF is the largest cooperative business of small producers with an annual turnover of billion (US$964.6 million) The Govt. of India has honoured Amul with the "Best of all categories Rajiv Gandhi National Quality Award". Largest milk handling capacity in Asia Largest cold chain network 48 Sales offices, 5000 wholesale distributors, 7 lakh retail outlets Export to 37 countries worth 150 crore (US$27.3 million)
[16]

53

Winner of APEDA award for eleven consecutive years

[edit]The

Amul brand

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50 sales offices spread all over the country, more than 5 000 wholesale dealers and more than 700 000 retailers. Amul became the world's largest vegetarian cheese
[17]

and the largest pouched-milk brand.

AMUL is also the largest exporter of dairy products in the country. AMUL is available today in over 40 countries of the world. AMUL is exporting a wide variety of products which include Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee) and Indigenous Sweets. The major markets are USA, West Indies, and countries in Africa, the Gulf Region, and SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China, and others such as Mauritius, Australia, Hong Kong and a few South African countries. Its bid to enter the Japanese [18] market in 1994 did not succeed, but it plans to venture again.

In September 2007, Amul emerged as the leading Indian brand according to a survey by Synovate to [19] find out Asia's top 1000 Brands. In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector in The Brand [20] Trust Report, published by Trust Research Advisory. rediff.com; "India's top 20 brands: Amul is No. 1" [edit]Products Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti Dahi, Yoghurt, Buttermilk, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, flavoured milk, basundi, Amul Pro brand and others. Amul PRO is a recently launched brown beverage just like bournvita and horlicks offering whey protein, DHA and essential nutrients. In January 2006, Amul launched India's first sports drink Stamina, which competes with Coca [21] Cola's Powerade and PepsiCo's Gatorade. Amul also offers mithaimate which successfully competes with milkmaid by nestle by offering more fat% at lower price. In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product offering in the milk products segment. Other Amul brands are Amul Kool, a low calorie thirst quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee and India's first sports drink Stamina. Amul's Icecreams are made from milk fat and thus are icecreams in real sense of the word, while many brands in India sell frozen desserts made from vegetable fat. Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing Award for [citation needed] 2007. [edit]Mascot Since 1967 Amul products' mascot has been the very recognisable "Amul baby" or Amul girl (a chubby butter girl usually dressed in polka dotted dress) showing up on hoardings and product wrappers with the equally recognisable tagline Utterly Butterly Delicious Amul.The mascot was first used for Amul butter. But in recent years in a second wave of ad campaign for Amul products, she has also been used for other product like ghee and milk. [edit]Advertising
[22]

An Amul butter ad on Pakistan's Kargil Warfiasco. The image shows the "Amul baby" in between George Fernandes and Atal Bihari Vajpayee.

In 1966, Amul hired Sylvester daCunha, then managing director of the advertising agency AS to design a new ad campaign for Amul Butter. daCunha designed an ad campaign as series of [23] hoardings with topical ads, relating to day-to-day issues. The campaign was widely popular and earned a Guinness world record for the longest running ad campaign in the world. In the 1980s, cartoon artist Kumar Morey and script writer Bharat Dabholkar had been involved with sketching the

Amul ads; the latter rejected the trend of using celebrities in advertisement campaigns. Dabholkar credited chairman Verghese Kurien with creating a free atmosphere that fostered the development of [24] the ads. Despite encountering political pressure on several occasions, daCunha's agency has made it a policy of not backing down. Some of the more controversial Amul ads include one commenting on Naxalite uprising in West Bengal, on the Indian Airlines employees strike, and the one depicting the Amul [23] butter girl wearing a Gandhi cap Amul hired DraftFCB+Ulka for the brands of Amul milk, chocolates, paneer, ghee, ice-cream. [edit]In

popular culture

The establishment of Amul is also known as White Revolution. The White Revolution of India inspired the notable Indian film-maker Shyam Benegal to base his film Manthan (1976) on it. The film starred Smita Patil, Girish Karnad, Naseeruddin Shah and Amrish Puri. The film itself was financed by over five lakh rural farmers in Gujarat who contributed Rs 2 each to the film's budget. Upon its release, these same farmers went in truckloads to watch 'their' film, making it a commercial [25][26] success., the film was chosen for the 1977 National Film Award for Best Feature Film in Hindi. [edit]References

1. 2.

^ http://www.amul.com/m/organisation ^ Alexander Fraser Laidlaw. Cooperatives and the Poor. A development study prepared for the International Cooperative Alliance and the Canadian International Development Agency, 1977.

3.

^ Amul The Taste of India.. "Welcome to Amul The Taste of India". Amul.com. Retrieved 2010-0712.

4. 5. 6.

^ The Amul Story General Management Review ^ indiadairy.com

[dead link]

^ Dasgupta, Manas (9 September 2012). "Kurien strode like a titan across the bureaucratic barriers and obstacles". The Hindu. Retrieved 13 September 2012.

7.

^ Ramachandran, Narayan (29 August 2010). "Corporate or cooperate?". LiveMint. Retrieved 2 February 2011.

8.

^ George, Shanti (1985). Operation flood: an appraisal of current Indian dairy policy . Delhi: Oxford University Press. ISBN 978-0-19-561679-8.

9.

a b c

Heredia, Ruth (1997). The Amul India story. New Delhi: Tata McGraw-Hill. pp. 297.ISBN 978-0-

07-463160-7. 10. ^ Suhrud, Tridip (8 April 2006). /story_main17.asp?filename=op040806the_magic.asp "The magic of manthan". Tehelka. Retrieved 2 February 2011. 11. ^ Thapar, Romila (2001). "Seminar, Issues 497508". Seminar. 12. ^ "Economic and political weekly, Volume 6, Part 4". Economic and Political Weekly 6. 1971. 13. ^ The Cheese Industry in India. Chillibreeze. 14. ^ Cite error: Invalid <ref> tag; no text was provided for refs named Vivek; see

the help page.

15. ^ (PTI) (18 August 2012). "Vipul Chaudhary elected GCMMF Chairman". The Hindu Business Line. Retrieved 13 September 2012. 16. ^ Times of India. 3 June 2008. http://toi.amul.com/photogal/pg030608.html. Retrieved 17 June 2012. 17. ^ Economic Times 18. ^ Amul hopes to flow into Japanese market 19. ^http://www.synovate.com/news/article/extra/20070824/Asia's%20Top%201000%20brands%20fact%2 0sheet.pdf 20. ^ India Infoline News Service (29 January 2011). "AMUL Most Trusted among Indias Food & Beverage Brands". India Infoline. Retrieved 1 March 2011. 21. ^ Amul ready to take on Pepsi, Coke in sports drink segment 22. ^ The Amul Mascot Story Amul's website 23. ^
a b

Varma, Mini. "The moppet who put Amul on India's breakfast table". Amul. Retrieved 2 February

2011. 24. ^ Rao, Subha J. (15 December 2007). "Punch guru". The Hindu. Retrieved 2 February 2011. 25. ^ NDTV movies NDTV. 26. ^ Shyam Benegal at ucla.net South Asia Studies, University of California, Los Angeles(UCLA).

==External links==
Wikimedia Commons has media related to: Amul

amul.com, Official website irma.ac.in, History of Amul amul.tv thehindubusinessline.com indiainfoline.com, "AMUL Most Trusted among Indias Food & Beverage Brands" AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was

suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found in several Indian languages. Amul products have been in use in millions of homes since 1946. 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. (Turnover: Rs. 80.05 billion in 2009-10). Today Amul 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.

Check out this vast and ever-growing range of 'tasteful' Amul delectables!
"Please click here to download the latest PRODUCT DETAILER".

Bread Spreads

Amul Butter
Utterly Butterly Delicious

Amul Lite
Low fat, low Cholesterol Bread Spread

Delicious Table Margarine

The Delicious way to eat healthy

Milk Drinks Amul Kool Millk Shaake Amul Kool

Amul Kool Cafe

Kool Koko
A delight to Chocolate Lovers. Delicious Chocolate taste

Nutramul Energy Drink

A drink for Kids - provides energy to suit the needs of growing Kids

Amul Kool Chocolate Milk

Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Tetra Pack

Amul Masti Spiced Buttermilk

Amul introduces the Best Thirst Quenching Drink

Amul Lassee

Amul Kool Thandai

Powder Milk Amul Spray Infant Milk Food

Still, Mother's Milk is Best for your baby

Amul Instant Full Cream Milk Powder

A dairy in your home

Sagar Skimmed Milk Powder

Which is especially useful for diet preparations or for use by people on low calorie and high protein diet.

Sagar Tea Coffee Whitener

Amulya Dairy Whitener

The Richest, Purest Dairy Whitener

Fresh Milk Amul Fresh Milk

This is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouchpacked for convenience.

Amul Gold Milk

Amul Taaza Double Toned Milk

Amul Lite Slim and Trim Milk

Amul Fresh Cream

Amul Shakti Toned Milk

Amul Calci+

Amul Buttermilk

Cheese Amul Pasteurised Processed Cheese

100% Vegetarian Cheese made from microbial rennet

Amul Cheese Spreads

Tasty Cheese Spreads in 3 great flavours..

Amul Emmental Cheese

The Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma

Amul Pizza Mozzarella Cheese

Pizza cheese...makes great tasting pizzas!

Gouda Cheese

For Cooking Amul / Sagar Pure Ghee

Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience.

Cooking Butter

Amul Malai Paneer

Ready to cook paneer to make your favourite recipes!

Utterly Delicious Pizza

Mithai Mate
Sweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste.

Masti Dahi

Pro-biotic Dahi

Desserts Amul Ice Creams

Premium Ice Cream made in various varieties and flavours with dry fruits and nuts.

Amul Shrikhand
A delicious treat, anytime.

Amul Mithaee Gulab Jamuns

Pure Khoya Gulab Jamums...best served piping hot.

Amul Chocolates
The perfect gift for someone you love.

Amul Basundi

Amul Flaavyo Yoghurt

Health Drink

Nutramul
Malted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.

>> PRODUCT DETAILER

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Chairman's Speech: 37th Annual General Body Meeting held on 21st June, 2011

Madam and Gentlemen, At the beginning of the 20th century, Mahatma Gandhi had stated The soul of India lives in its villages. 100 years later, as our national GDP surges ahead at the rate of 8.6% towards the US$ 2 Trillion mark, this statement still stands true. With 70% of our citizens still residing in rural India, agriculture remains the backbone of Indian economy, providing livelihood to almost two thirds of the workforce in our country. The importance of agriculture to our nation is best summed up by this statement: If agriculture survives, India survives. While agricultural sector is critical to our national food security, it is also intrinsically linked to our rural society and culture and therefore progress in this sector directly benefits rural society, environment and quality of life. Contributing 22% to the agricultural GDP of India, milk is the largest agricultural produce of our country, valued at Rs. 2 lakh crores (US$ 44 Billion) per annum. Dairying has become an important secondary source of income for more than 13 million rural families and has assumed an important role in providing employment and income generating opportunity for the most vulnerable sections of our population. For millions of small and marginal farmers as well as landless labourers, milk production provides ready cash in hand for fulfilling their daily household requirements. Income from dairying gives our rural women, some measures of economic independence. Apart from being a critical part of Indian agricultural economy, milk and milk products are also an essential part of the diet of majority of Indians, providing an important source of proteins, given the prevalence of vegetarianism. Dairy farming also complements other traditional forms of agricultural activity. While crop residue from the farms is used as feed for our milch animals, part of the fertiliser manure used in crop cultivation, comes from the cattle. You will recall that at the time of independence, India was a milk deficit country, dependent on import of dairy commodities to fulfil the nutritional requirements of our citizens. Milk was a rationed product and consumers had to stand in long queues for their daily quota of milk, without any assurance of quality or hygiene. With milk production at a level of only 17 MMTs per annum in 1950s, per capita availability of milk was only 132g per day, well below WHO recommended level for minimum nutrition. Undoubtedly, that situation would have continued even today, had it not been for the initiative and wisdom of our farmers who organised themselves into dairy co-operatives, created the three-tier Amul cooperative model and ultimately inspired Operation Flood, unleashing white revolution in this country. Operation Flood helped in replicating the successful Amul pattern co-operative model across 176 districts in 22 states of India, catapulting our nation towards the status of the highest milk producing country in the world. In stark contrast, some of our South-East Asian neighbouring countries are still heavily dependent on import of dairy products to fulfil their domestic demand. Over the last six decades, the entrepreneurial spirit and hard work of our farmers has enabled India acquire self-sufficiency in dairy sector and also acquire the ability to provide minimum nutritional level to its citizens, in terms of milk consumption. Since our nation is largely independent from dairy

imports, Indian consumers have been protected from the unpredictability of international dairy commodity markets. Production of milk as marketable surplus is an economic enterprise for our farmers. Milk production has to compete in economic terms for allocation of resources of production with other competing options such as crop cultivation. Due to ever increasing pressure of human population, arable land is mainly used for food and cash crops and there is little chance of having good quality arable land available for fodder production, unless milk production is remunerative to farmers as compared to other crops. Same is true for other factors of production, as well. Like all entrepreneurs, our farmers also consider opportunity cost of resources allocated to dairying and in case they identify more viable options for utilising these resources, they may move away from milk production. Since the proportion of urban population in Gujarat has increased from 28% in 1971 to 43% in 2011, this trend indicates that lesser proportion of our population is now engaged in agriculture, dairying and allied activities, although the total number of people engaged in agriculture does not decrease. In recent years, Indian dairy farmers have been facing soaring input costs which has adversely impacted viability of milk production as an economic activity. With declining return on investment, there is a possibility that farmers may simply lose interests in milk business and turn to other activities. Analysis of the cost of milk production reveals that the most critical cost component is cost of feed and fodder, comprising nearly 70% of the total cost. Cost of labour is also an important cost component. Our farmers are facing severe fodder shortage, forcing them to use lower quality feed. This shortfall is fuelling consistent rise in price of fodder. With fodder prices jumping two-fold due to lower production of cereals, milk production has become a costly business. There is tremendous pressure of livestock on available feed and fodder since land available for fodder cultivation is decreasing. With competing claims on bio-mass for energy, cost of dry fodder for feed is rising and will continue to rise. Dry fodder constitutes major portion of a milch animals ration. Farmers are also reeling under the impact of steep rise in all major ingredients of cattle feed. Price of de-oiled rice bran which constitutes 25% - 35% of cattle feed, has increased from Rs. 3483 per MTs in 2005-06 to Rs. 6618 per MTs in 2011. Price of molasses, which constitute 10% to 12% of total cattle feed has also surged from Rs. 3400 per MTs to Rs. 4300 per MTs, within last one month. Some reports even suggest that in certain regions of India, farmers are finding it more profitable to sell their cattle to meat & leather industry, rather than continue in milk business. These very same reports also suggest that this phenomenon has already led to closure of some milk co-operatives in small pockets of India. If true, this indeed indicates an extremely disturbing trend, which if allowed to continue unchecked can severely undermine sixty years of hard work, which went into achieving self-sufficiency in Indian dairy sector. We do understand and appreciate the concern amongst urban consumers, regarding recent hikes in prices of branded milk and dairy products. After all, milk and milk products form a major component of our food basket. Food inflation is a global phenomenon, especially in the developing world and is spread across a wide variety of food items. However, recent price increases in milk in India, have been triggered by sharp escalation in input costs, as farmers found viability squeezed out of the dairy business. Due to declining returns from dairying, farmers will find it difficult to invest further in increasing the quantity and quality of milk production, as well as enhancing productivity of their cows and buffaloes. If farmers do not actively invest in increasing herd size, providing superior quality of feed, arranging for adequate quantity of green & dry fodder, arranging for proper veterinary care, cross-breeding, artificial insemination and other productivity enhancement measures, we may not be able to achieve the desired rate of growth in milk production in India. On the other hand, we are witnessing a visible and rapid growth in demand for milk and dairy products, due to rising purchasing power of both urban and rural consumers in India. Rising income levels have led to shift from consumption of cereals to superior foods such as milk, vegetables and meat. In a nation of 1.21 billion citizens, every growing child in the age group of 10 15 years needs 750 ml of milk per day, while every adult needs at least 250 ml per day for minimum nutrition. In the last 10 years alone, our population had grown by 181 million. Rising income and aspiration levels have been further accelerated by impact of sixth pay commission in urban India and policy initiatives such as NREGA in rural India. Key to long term price stability in milk and dairy products, lies in removing supply-demand imbalance by enhancing rate of growth in milk production to match the rate of growth in demand. As a nation, we need to target 6% to 8% growth in milk production per annum, for the next few years, to achieve this critical goal of controlling inflation in milk on a sustainable long-term basis. The only way that we can achieve this target is by incentivizing and motivating our farmers to invest in enhancing quantum of milk production as well as productivity per animal. We must ensure remunerative price of milk to our farmers, even if this implies further increase in prices of milk and dairy products to our consumers, in the short term. While urban consumer may have to bear the burden of short-term inflation in milk and milk products, they

will benefit immensely through long term price stability in this sector due to accelerated growth in milk production. Indian dairy co-operative movement became a shining example of success due to wisdom and toil of our farmers, visionary leadership of Dr. Verghese Kurien and tremendous encouragement and support extended by successive governments at Union and State level. We are confident that our policy makers will continue to support all possible initiatives aimed at maintaining our self-sufficiency in dairy sector. Our lack of dependence on dairy imports is one of the most significant strengths of our country. Imports over medium or long term, to tackle dairy inflation may prove to be heavily counter-productive since this may turn our farmers away from milk production, entrapping us in a vicious cycle of increasing import-dependence. We can take lessons from our experience in oilseeds sector, wherein we have sunk into a permanent state of import-dependence. Any move to surrender our self-sufficiency in dairy sector will turn the clock back to pre-Operation Flood era, exposing Indian consumers to the volatility of international dairy markets, shortages and long-term price instability in dairy sector. Temptation of addressing dairy inflation through medium or long-term imports has the potential to undo six decades of hard work done by our dairy farmers. If millions of rural milk producers are deprived of their daily income due to increasing un-viability of dairy business, this may have unpredictable consequences for other sectors of our economy, as well. Any move towards dairy imports can effectively cripple one of the most vibrant sectors of our economy and both milk producers as well as consumers will lose in the process. The only way forward is to ensure remunerative prices of milk to our farmers, thereby incentivizing them to increase milk production. If farmers perceive higher returns from milk, enhanced investment in cattle, fodder, feed, veterinary care and other inputs will automatically follow. This will not only keep prices stable in the longterm for our urban consumers, but also ensure long-term viability of one of the most important pillars of our rural economy. Price to pay for all these long-term benefits is the current inflation in milk and milk products, which is a short-term sacrifice that our urban consumers will have to make. I now present to you, our Federations Annual Report and the Audited Accounts for the year 2010-11.

Review of Operations
MILK

PROCUREMENT

Total milk procurement by our Member Unions during the year 2010-11 averaged 94.57 lakh kilograms (9.45 million kg) per day, representing growth of 1.88 per cent over 92.82 lakh kilograms (9.28 million kg) per day achieved during 2009-10. The highest procurement as usual, was recorded during January 2011 at 124 lakh kilograms (12.40 million kg) per day. We have also successfully demonstrated our ability to process more than 12 million litres of milk per day. Rising cost of inputs and declining viability of dairy business had prevented our farmers from further enhancing investment in increasing milk production. We are trying to rectify this trend by ensuring high remunerative prices to farmers which will definitely motivate them to increase milk production. We have also taken several measures to ensure increase in productivity per animal. These efforts will definitely help to boost our milk procurement in coming years, to match growth in demand.
SALES

During the year, sales of our Federation registered a quantum growth of 22.1 per cent to reach Rs. 9,774.27 crores (Rs. 97.74 billion). Last year, our turnover was Rs. 8005.36 crores (Rs. 80.05 billion). This is an extremely impressive growth, when viewed from the perspective of 19.3 per cent growth that we had achieved in 2009-10, 27.7 per cent growth achieved in 200809 and 22.9 per cent growth that we had achieved in 2007-08. I am also pleased to note that our Federation has done remarkably well in most of the valueadded consumer packs. Amul Butter has also shown an impressive value growth of 26%. Sales of Amul Milk in pouches have grown by 34% in value terms. Our sales in Amul Processed Cheese have shown consistent and very impressive growth of 29%. Amul beverage range including Flavoured milk, Buttermilk and Lassee has shown an impressive growth of 28 per cent in value terms over the last year. Sales of Amul Masti Dahi grew by 39%. With enhanced focus on fresh and fermented products, we launched Amul Probiotic Lassee in ready to drink cups, Amul Probiotic Buttermilk in PET bottles and flavoured yoghurt under the brand name Amul Flaavyo. In the Infant Milk Food category, our brand Amulspray registered a value growth of 20% and achieved the unique distinction of becoming a Rs. 1000 crore mega-brand. In the dairy whitener segment, Amulya recorded a growth of 21%. In our milk-based dessert range, we relaunched Amul Gulab Jamuns with new round shape, registering quantum growth of 53%. We managed to achieve 13.7 per cent value growth in Amul Ice cream, despite intense

competition in this category. We remain No. 1 Ice-cream brand in India, leaving a wide gap with the nearest competitor.

RETAILING

Retailing continues to be an important strategic thrust area for our Federation. During the year 2010-11, 1000 new Amul Parlours have been added, taking the total strength to 6000, thus reinforcing the wide popularity of the concept. Business generated from Retailing Operations has also been growing at a brisk pace. Our Amul parlours generated business of Rs. 406 Crores in 2010-11, growth of 37% from previous years figure of Rs. 298 Crores. Thus the contribution of Retailing Operations in GCMMFs business reached 4 per cent. The average throughput per parlour has also increased by 17%. At Amul parlours, consumers feel reassured that they will get the entire range of Amul products under one roof. Apart from the conventional locations such as residential and commercial areas, Amul parlours are also coming up at Educational Institutions, Railway Stations, Bus stands and other high traffic locations. We have already created 160 parlours at railway stations and 177 parlours are operating at various Centre of Excellence. Our Amul Ice cream scooping parlours continue to be popular among individuals and families for relishing value-added Ice cream in attractive ambience. More than 150 Amul Ice cream Scooping parlours were added during 2010-11, taking their total tally to 375. We have also tried our hands at Quick Service Restaurant concept. Amul Caf, spread over an area of 1000 sq.ft and serving recipes like Amul Butter Pavbhaji, Amul Pizzas, Amul Cheese Burgers, Sandwiches, Ice cream Scoops, Sundaes & Milk Shakes has been started in Ahmedabad on pilot basis. The Caf Amul concept will now be extended to Metro markets & Tier I towns in a phased manner. Our success in Retailing can be attributed to the strong equity of Amul brand and also to our committed team of field sales personnel, wholesale distributors and franchisees. We are targeting a milestone of 10,000 Amul parlours by the end of March 2012.
EXPORT

I am pleased to inform you that during the year 2010-11, our exports has achieved turnover of Rs. 98 Crores. This had been achieved in spite of ban by Govt. of India on exports of milk powder since February 2011. We have been able to achieve continuous growth in export of consumer products by leveraging on strong brand equity of Amul in global market.
DISTRIBUTION NETWORK

Over the years, we have created an unique combination of four distribution highways for our ambient, chilled, frozen and fresh products. This rare capability has kept us ahead of competition. Macro-economic factors are continuing to influence shifts in consumer preferences, consumption occasions and are also instrumental in creating business opportunities, particularly in small towns and rural areas. This warrants periodical review of our Route to Market strategy. Roll out of super distributor model of distribution by us during the year to enhance the reach of our ambient, chilled and frozen products to rural India, overcoming the challenges of inadequate cold chain is a fact- based approach to realign our distribution channel as per the need of the hour. The outcome, so far, has been quite encouraging. We have already started 30 super distributors across 8 states, covering 520 smaller towns. In the year 2011-12, we plan to increase the number of super distributors to 150 and cover as many as 3000 small towns. To integrate distributors in our strategic planning process and also to develop self-leadership amongst each distributor so that they have the capability of managing their own business, our Self Leadership Development Programme (SLDP) continued during the year. Distributors and Amul Parlour franchisees from across India continued to visit Anand as part of our Amul Yatra Programme. Through this initiative, our channel partners get exposed to our cooperative institutions and are able to understand their role as true partners in our endeavour towards the socio economic development of rural India.
CO-OPERATIVE DEVELOPMENT PROGRAMME

Our Federation has supported the milk producers of Bhavnagar, Amreli, Junagadh and Kachchh districts to organise their own cooperative milk unions and co-operative societies at village level. Milk producers have organised 1790 village dairy co-operative societies and their district milk unions have become nominal members of GCMMF. GCMMF family has now been extended to 24 districts out of 26 districts in Gujarat. The milk producers of Saurashtra and Kachchh are now getting all technical and marketing support from GCMMF and this has helped these milk unions in organising more farmers and increase milk procurement. Milk procurement in the region has increased by 27 % compared to previous year. During the last eleven years, our member unions have been implementing Internal Consultant Development (ICD) intervention for developing self-leadership among member producers and

thereby enabling them to manage their dairy business efficiently leading to their overall development. During the year, member unions continued to implement the module on Vision Mission Strategy (VMS) for primary milk producer members and village dairy co-operatives. Facilitated by specially trained consultants, 597 village dairy co-operative societies (VDCS) have conducted their Vision Mission Strategy Workshops, prepared their mission statements and business plans for next five years. Till date, 7107 VDCS have prepared their mission statement and business plan under the initiative. During the year, 5709 VDCS have also reviewed their business plan under annual revisit of VMS and have prepared action plan for next year to propel the momentum gained through VMS. In order to strengthen knowledge and skill base of young girls and women of the villages about milk production management, our Federation with technical collaboration and resources of Anand Agriculture University, has initiated Mahila Pashupalan Talim Karyakram for women resource persons of the Member Unions and during the year, 418 women resource persons have been trained under this programme.
Clean Milk Production

Under our quality assurance programme for consumers, Federation has supported the member unions for strengthening Infrastructure for quality and clean milk production by implementing various Government of India, Government of Gujarat and NCDC programmes. Our Member Unions have identified 4000 potential VDCS for installation of Bulk Milk Coolers (BMC) and till date, 2477 BMC have already been installed and CMP training programme has also been implemented in these villages. Continuing the cleanliness drive at village level, till March 2011, member unions have implemented cleanliness module at 9507 VDCS. To enhance the level of cleanliness, this year 7316 VDCS celebrated Red Tag Day on Gandhi Jayanti - 2nd October and the unions also gave awards to the best performing VDCS.
Fertility Improvement Programme

As per our long term vision to reduce number of infertile animals in our milkshed; our Board decided to implement Fertility Improvement Programme (FIP) from the year 2007-08. The concept of FIP is an integrated one, addressing the aspects of animal nutrition, breeding and health in holistic manner and thereby converting a non-productive animal into productive asset. To implement FIP, milk unions have deployed 56 FIP teams of veterinary consultants and during the year they have worked in 1030 villages. During the last four years, they have implemented FIP in 3887 VDCS and registered 2.85 lakhs non-productive milch calves and buffaloes under FIP and out of these, 1.85 lakhs milch animals have been made productive. FIP is being monitored through a dedicated system on www.amul.org.in Member unions have got very fruitful results after implementing FIP and inspired by this success, to support the productivity enhancement initiatives, they have envisaged Productivity Enhancement Programme (PEP) and implemented the same in 702 villages and covered 3.38 lakhs milch animals with objective to improve their overall productivity. Our Board has identified gaps which are hindering efforts in improving milk productivity and therefore, to increase genetically superior animals with high milk productivity, to create good replacement stock and to include scientific calf rearing practices among farmers, they have envisaged to implement Calf Rearing programme. To provide nutritionally balanced animal feed to farmers at their doorstep and to reduce cost of feeding and increase performance of animals, for better health and milk productivity, our Board has also envisioned to implement scientifically prepared Total Mixed Ration programme.
Sustainable ecological development

Over the years, due to intensive agriculture and deforestation, various natural resources have been depleted in Gujarat. We therefore, gave serious thought to this issue and discovered a novel idea for repaying our debt to nature. The idea was tree plantation by milk producer members of dairy cooperatives, on every independence day. The idea was put in to practice for the first time in the year 2007. The milk producers planted saplings on their own at preidentified locations like their farm, near their home, on farm bunds, etc. and thus in Gujarat, they planted 18.9 lakh trees across 19 districts of Gujarat on our 60th Independence Day, 15th August 2007. On 15th August, 2008, a more ambitious target was planned and we planted around 52.74 lakhs tree saplings on One member, three tree basis across 21 districts of Gujarat. In 2009 and 2010, the third and fourth year of the programme, we successfully planted around 84.04 lakhs and 79.75 lakhs tree saplings on One member five tree basis in respective years across Gujarat. For this activity, we have received four consecutive Good Green Governance award from Srishti during 2007, 2008, 2009 and 2010. It is heartening to note that the International Dairy Federation (IDF) has recognised this initiative as major Innovation of the year and has awarded this initiative with the Environment Award under IDFs Dairy Innovation Awards.

INFORMATION

TECHNOLOGY

INTEGRATION

With globally extended and complex supply chains, its critical for our Federation to enable actionable insight that supports continuous improvement with an end-to-end view of performance and root-cause analysis. Aligning supply chain strategy with corporate objectives across key lines of business in a timely and cost-effective manner and to achieve superior supply chain performance, Federation along with four Member Unions, has successfully implemented 1st phase of SAP ERP application across major parts of GCMMF Enterprise. Your Federation is now planning a rollout of the application in the remaining member unions, which will help it map, manage and monitor supply chain strategy, having consistent definition and common data sources for metrics across the organisation. The implementation of the ERP application will help your Federation and Member Unions empower its supply chain strategy and tactical decision making through fast and real-time access to critical information and metrics. Your Federation has also set up a centralised state of the art Data Centre for its entire IT operations at Anand. GCMMF has further enhanced its MPLS based Virtual Private Network(VPN) by connecting all its sales offices, member unions, milk plants, milk chilling centres and warehouses on a common communication backbone to strengthen and automate the supply chain operations.
THE ROAD AHEAD

The Amul dairy co-operative movement which started in 1946 with only two village level milk cooperative societies, collecting just 247 litres of milk per day, has today transformed into a US$ 2 Billion organisation, handling almost 12 million litres of milk on a peak operating day. While our journey through the last sixty five years has been fruitful as well as eventful, we foresee and anticipate, a series of exciting challenges on the road ahead. Apart from being the worlds largest milk producing nation, India is also the largest consumer of milk and milk products in the world, since milk has always been an integral part of our tradition and culture. Although we have a commanding 25% share of the organised dairy sector in India, the organised sector itself accounts for less than 20% of total dairy consumption within our country. This implies tremendous potential for growth at the expense of the unorganised sector. One of the key challenges ahead is to enhance the share of the organised sector by further enhancing and streamlining our supply-chain network, effective deployment of technology including information technology and safeguarding interests of our farmers. Focus on improving productivity of our milch animals is essential for further enhancing quality and quantity of milk produced. We can even encourage farmers who are economically better off to create commercial dairy farms in their village, rather than invest their money elsewhere. We plan to focus on expanding category penetration and enlarging consumer base of most of the product categories that we operate in. This will enable us to tap the huge un-touched potential for branded, packaged, value-added dairy products in urban, semi-urban and rural India. In terms of product innovations, we will sharpen our focus on value-added derivatives, moving further up the value chain. We will continue to enhance our range of fresh and fermented products. We have to work simultaneously on the supply side as well as the demand side so that the demand-supply equation can be effectively managed and the dairy cooperative movement can continue to flourish and grow. We will also ensure that our farmers continue to receive remunerative price for their milk and that maximum percentage of consumers rupee flows back to the farmers. We will continue to play our leadership role in Indian dairy industry and also lead the Indian dairy cooperative sector to a position of eminence in our national economy. We have already finalised and documented our roadmap for the next ten years. As per our plan, the group turnover of all dairy cooperatives of Gujarat will reach Rs. 30,000 crores (US$ 6.7 Billion assuming current prices and exchange rate) by the year 2020. We will also take all possible steps to help other dairy cooperatives outside Gujarat to flourish and grow. We are already buying milk from dairy cooperatives in Maharashtra, West Bengal, Bihar and other states. We acknowledge and appreciate the tremendous faith and trust that Indian consumers have placed in us, over the last six decades. We are conscious of our time-bound responsibility to increase milk production and we will make every effort to ensure that supply of milk and dairy products matches the growth in demand, leading to price stability in the long term. This will help to provide our consumers with much deserved relief from frequent price hikes. Under no circumstances should we allow any inefficiency in our internal systems to be passed on to consumers, in form of price increase. On behalf of all dairy farmers of Gujarat, we would like to reassure all our consumers that we take every possible step to safeguard their interests and that we are committed to providing highest quality dairy products at most reasonable, value for money prices. We are confident that we will succeed in our endeavour with positive and continued encouragement and support from all quarters, including our policy makers.
ACKNOWLEDGEMENTS

Before closing, I would like to thank all those who have helped to make our Federations operations successful. We are grateful to the Government of India for immense support received from various departments and specifically from the Department of Animal Husbandry and Dairy Development. We convey our special thanks to NCDC for providing valuable support to our village cooperative dairy societies. We are also thankful to the Government of Gujarat for all the help and cooperation, extended to our organisation. National Co-operative Dairy Federation of India had been providing us with invaluable support in coordination with other agencies and organisations. National Dairy Development Board had played a role in our growth and development. I am very grateful to them. Institute of Rural Management, Anand, as always, has contributed to the perspective building and professionalization of the management of cooperative sector. We express deep gratitude for its support. We are indebted to Vidya Dairy for having organised training programmes on dairy technology for our employees. We are also grateful to SMC College of Dairy Science, Anand, for strengthening the dairy cooperative sector, by providing technically skilled manpower. We express our sincere thanks to the College of Veterinary Science and Animal Husbandry, Anand. Our advertising agencies, bankers, insurers, management consultants, suppliers and transport contractors have been of great help to us in managing our growth and are our partners in success. We acknowledge their contributions and commit ourselves to continue and strengthen this fruitful alliance in all times to come. The Indian Railways has played a crucial role in the growth of our dairy cooperatives since inception. We thank them for their continuous support. We depend on the efficiency of our WC&F agents, distributors, retailers and most important of all, the patronage of our consumers, who have come to regard our brands as synonymous with quality and value. While thanking them for their support, we assure them that we shall strive endlessly to delight them. Our Member Unions are our strength. We thank them for their guidance, support and cooperation without which we would not exist. Lastly, we thank the officers and staff of our Federation for their continued perseverance, loyalty and unflinching efforts devoted to our cause. Thank you. For and on behalf of the Board of Directors
P

Chairman

Bhatol