Success Story: How Amul Became a Known Brand Across India?

Learnings for today's business owners

Amul, India's No. 1 dairy brand, is one of our country's most popular brands. It has become the taste of India through the years, precisely as its slogan states. Every Indian millennial has grown up hearing the jingles for the country's numerous dairy products.

Millions of people have been consuming a variety of products of AMUL- butter, milk powder, cheese, chocolates, ice creams, and whatnot. But AMUL has never let down its customers in terms of selling high-quality products at very reasonable prices.

Amul has gone a long way since its inception in 1946. The term 'Amul,' derived from 'Amulya,' means 'precious' or 'priceless' in Sanskrit. It also stands as an abbreviation for Anand Milk Union Ltd. As AMUL grows, the brand continues to improve the rural population’s socio-economic conditions, focusing on the farmers.

As we all know, the White Revolution made India the largest milk producer in the world and improved the living conditions of more than 15 million milk-producing dairy farmers. A proof of the concept of a professionally managed rural institution was proposed as a means to solve rural problems in India, and AMUL has justified its existence by helping such a vast population all over the world.

About the company

AMUL Founder - Late Dr Verghese Kurien, Tribhuvandas Kishibhai Patel

CEO - R.S. Sodhi

Headquarters - Anand, Gujrat

Year in which it was founded - 1946

Year of establishment - 1973

Website - http://www.amul.com

Full form - Anand Milk Union Ltd.

Sales turnover - Rs. 38,550 crores

Amul History

The first milk union was established in 1946 - AMUL.

AMUL was designed by Late Dr Verghese Kurien, dubbed as the "Milkman of India." His experience at Amul began in 1949 when he came to Anand as a government official to oversee a dairy. He moved from repairing agricultural machinery to revolutionising India's dairy business with the White Revolution (or Operation Flood), the world's largest dairy development initiative.

Amul was primarily known as Kaira District Co-operative Milk Producers' Union. Its name was changed to the brand name of AMUL in the year 1955. It was a way to refine the situation of farmers years ago when they worked hard day in and day out but were exploited by the local businessmen, the ones who offered them the lowest wage they could.

It all started 65 years ago; a few farmers created a corporation to end middlemen's exploitation. It grew so much to become the nation's largest brand, a brand that not only improved the lives of countless poor farmers but also catapulted our country to new heights.

When the farmers were exploited, Sardar Vallabhai Patel Ji sympathised with the farmers and counselled them to become self-sufficient entrepreneurs and work for themselves. Farmers, who were suffering a lot, took the suggestion to heart and established their cooperative associations.

What began with a few farmers generating 247 litres of milk has now grown into a full-fledged organisation with over 3.6 million milk producers generating over 5 million litres each day.

Amul is now the 8th largest milk processor in the world.

Factors that led to the growth of AMUL

The growth strategy of AMUL is based on globalisation, invention, and proper placement.

1. Marketing - The Amul Girl

The Amul girl is the company's advertising mascot used to promote the brand. In its longest-running commercial campaign, the firm has effectively used the cartoon persona. The Amul girl is employed to provide a sense of humour to the company's print advertisements. Amul's advertising has been well received by Indians, and the business has experienced increased consumer interaction. Amul's brand recall value has grown.

2. Distribution - efficient chain supply

Amul operates on a three-tiered cooperative framework. It comprises a framework that includes people from all economic statuses. First comes the dairy society at the village level that is further associated with milk unions at the district level, which is then federated to a state-level milk federation. The local dairy organisation collects milk, the district milk union obtains and processes it, and the state milk federation markets it. Amul was the first corporation to use this strategy.

3. Coordinating nature

The primary emphasis is on promoting the parent brand rather than individual goods; this allows Amul to increase brand visibility while spending less on marketing and advertising.

4. Consistency

AMUL has been very consistent with its work. From time to time, it has been delivering a new range of products with the best quality. AMUL is the first brand to make skimmed milk powder from buffalo milk.

Achievements of AMUL

1. It is the first self-motivated farmers' organisation ever.
2. It is the first and the only organisation to get an ISO of 9000 for its' farmers' cooperatives.
3. It was the first one to produce milk from powder from surplus milk.
4. AMUL is established in not only India but also China, Hong Kong, Mauritius, and Japan.

Learnings for today's business owners

1. Detailing is the key - AMUL has always been able to deliver just the finest products of all. It has never traded for a low-quality product for its clients and thus earned the peoples' trust.
2. Transparency with customers - AMUL always responds to its customer's reports in time. The brand is transparent in what and how it makes it. To any of the queries and questions, AMUL is ready to answer them.
3. Taking risks when needed - AMUL always takes risks in doing what it has to do. It always pays off nicely in terms of igniting people's emotions for Amul and restoring trust in the flavour of India.
4. Look out for your client's needs - it always looks out for its customer's needs. Primarily, it was founded to help the farmers and intermediaries, which the brand is still pursuing in the long run.

Secret Of Success - The Amul Success Story

The secret success story of AMUL, to be honest, is not a very unique and unknown trick. The company is so successful; it flourished so much because it has never compromised on the quality of the product they are delivering.

With so many years passing by of their establishment, AMUL has always come up with something new of its brand at very sensible and rational prices. It provides direct access to the local customers to high-quality products.

The brand is not self-minded. It works for the betterment of the farmers and socio-economic upliftment. It ensures that the profit the company earns is well distributed among its participants as well.

Thus, we can say that what every brand promises to deliver, AMUL has been able to deliver in the real world, unlike the others. Hence, proving the statement that actions speak louder than words.

Conclusion

AMUL is famous because of its products and its sheer drive and arduous labour that insured the farmers' self-sufficiency. Today, the brand has helped farmers to become entrepreneurs and earn a livelihood on their own. The fact that the entire procedure is public has guaranteed that no one gets exploited.

The Amul brand has demonstrated that it is more than simply a commodity; it is a movement that represents farmers' economic independence. Farmers now have the confidence to dream, hope, and live because of the brand. Amul in its entirety has demonstrated that it is Amulya, i.e., 'Priceless,' for our nation and that it must be preserved.

Also read:

1) Best Tips for Customer Retention for a Small Business
2) Tips to Understand Your Market while Starting a Small Business
3) Tips for Businesses to Overcome the Covid Blues - Revival Tips for Businesses
4) What are the keys to success when operating a small scale business?
5) Get Detailed Information on Amul Franchise Cost in India

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FAQs

Q. Who was the founder of AMUL company?

Ans. The AMUL brand has two founders, Late Dr Verghese Kurien and Tribhuvandas Kishibhai Patel.

Q. What is the full form of AMUL?

Ans. AMUL is the short form for Anand Milk Union Ltd.

Q. What is the exact date when AMUL was founded?

Ans. AMUL was founded on 14 December 1946.