Gujarat | May 27: Can you imagine a situation in India where butter was synonymous with the name of ‘Polson’, an old butter brand? Sounds so unfamiliar, right? But it was exactly the same scenario in India before independence. Polson, an Indian dairy company (sounds British) had a monopoly in the Indian market in terms of dairy products, from milk to butter, everything was sold under the name of Polson. In such atmospheres, it almost becomes impossible for new brands and cooperatives to run properly (not even successfully). Then, how did AMUL become such an evident name in the same field? Welcome to the new chapter, with a new day of you and us surviving better! This is a story of ‘Making of AMUL’.
Amul, a household name synonymous with milk and dairy products, boasts a rich history that goes beyond your breakfast table. It’s a story of empowerment, cooperation, and innovation, a journey often overshadowed by the familiar taste of its products. Amul is more than just a dairy brand. It is a symbol of India’s White Revolution, which made the country the world’s largest producer of milk and milk products. It is also a testament to the power of collective action and innovation in addressing the challenges of a fragmented and exploited dairy industry before independence.
Foundation
Amul (originally Kaira District Co-operative Milk Producers Union) was founded in 1946 by Tribhuvandas Patel, under the direction of Sardar Vallabhbhai Patel, the first deputy prime minister of India. In the wake of exploitation by private dairies, primarily Polson, milk producers and farmers in Gujarat protested and banded together against the colonial government, and ended up forming cooperatives to ensure fair prices for their milk.
Structure
In the early stages, Tribhuvandas Patel envisioned an inclusive cooperative for milk producers, transcending religious and caste boundaries. The One Person, One Vote principle ensured equality, regardless of economic or social status. The cooperative adopted a 3-tier structure, aligning with Gandhi’s philosophy of a Self Sufficient Rural Economy.
A Historical Move
Starting with just 2 village cooperative societies in June 1946, the growth was gradual. By December 1946, the Kaira District Co-operative Milk Producers’ Union Limited was registered. After a successful chain of events (success in supplying surplus milk under the Bombay Milk Scheme), the cooperative expanded, gaining economic independence for dairy farmers after India’s political independence in 1947.
Through constant innovation, like introducing pasteurization in June 1948, Amul ensured quality and increased milk supply to 5,000 litres per day by the end of 1948. The key to enduring success lies in their commitment to continuous improvement and technological advancement.
Dr. Verghese Kurien: Architect of Dairy Revolution
In 1949, at the age of 28, Dr. Verghese Kurien, later known as the Father of the White Revolution, embarked on a journey that would revolutionize India’s dairy industry. Initially drawn to nuclear physics, he reluctantly entered dairy engineering through a government scholarship in Anand with a modest salary of ₹350.
However, fate intervened when he encountered Tribhuvandas Patel, a passionate leader of the Kaira Cooperative Union, working tirelessly to challenge the Polson Company. Impressed by Patel’s dedication, Dr. Kurien found himself engaged in the cooperative’s activities, fixing equipment and proposing innovations. Despite contemplating leaving, a twist of events led him to stay, and in 1950, he became the Executive Head of the Cooperative.
Driven not just by patriotism but by genuine interest and satisfaction in his work, Dr Kurien played a pivotal role in the success of the cooperative. By 1953, surplus milk in the cooperative needed a technological revolution, for which Dr. Kurien invited his friend Dr. Harichand Megha Dalaya to invent the world’s first buffalo milk spray drier (a significant achievement), and eventually Kaira Cooperative indulged in additional dairy activities rather than milk production.
In 1957, the cooperative needed a brand name for its products, and “Amul” was born, derived from the Sanskrit word “Amulya,” meaning Priceless. Amul then started producing butter, but after facing initial challenges from Polson Company, Dr Kurien navigated obstacles by adding salt and colour to align with consumer preferences. Amul Butter soon outperformed Polson Butter, along with Amul’s iconic marketing strategies, including the Amul girl, further propelled its success. The amul girl was introduced to counter Polson Butter’s girl.
The cooperative model expanded with other districts forming unions and eventually uniting the Gujarat Cooperative Milk Marketing Federation in 1973, which later adopted the name of the ‘Amul’ brand. The Government of India’s protective measures ensured the success and sustainability of these milk cooperatives against larger companies, securing Dr Kurien’s legacy in India’s dairy revolution.
Spearheaded by Dr. Verghese Kurien, this initiative aimed to make India self-sufficient in milk production by enhancing the efficiency of dairy operations. The success of Operation Flood transformed India from a milk-deficient nation to the world’s largest milk producer.
By 1998, India surpassed the USA, and India became the world’s largest milk-producing country. The story of Amul’s success isn’t limited to only one company. It is the success story of the country. This one cooperative made us a milk-surplus country.
Brand Building and Innovation
Amul’s success is not solely attributed to its cooperative model; the brand’s marketing and product innovation played crucial roles. The creation of the iconic Amul girl, with her witty and topical ads, became a cultural phenomenon. These ads not only promoted Amul’s products but also reflected the brand’s ability to stay relevant and connect with the masses.
Amul diversified its product range beyond liquid milk to include butter, cheese, ice cream, and more. The brand’s commitment to quality, affordability, and innovation made Amul a household name, transcending generations.
Lessons Learnt
While there are multiple things to learn from this success story, one thing that has majorly revolutionised this industry is the unity and cooperation of ‘Cooperative Societies’. M. S. Swaminathan, agricultural scientist and father of the green revolution in India said, “Amul is a model for the world to see how a cooperative movement can succeed.”
Not only, but also, one of the founders of AMUL and father of white revolution in India, Dr. Verghese Kurien stated that, “Amul is a classic example of how cooperation can triumph over competition.”
