AMUL: The Rise of India’s Dairy Legend

India's AMUL (Anand Milk Union Ltd., now known as AmulGCMMF) has made significant strides in the world of dairy, particularly in the butter exports market. In 2019, India entered the top 5 largest butter exporters, with a 47.4% growth compared to the previous year, which can largely be attributed to the efforts of AMUL. As the world's largest vegetarian cheese brand, AMUL has not only captured the domestic market but has also made a significant mark in the global market.

Recognition and Achievements

In 2020, AMULGCMMF, a dairy cooperative, became the first Indian dairy company to be recognized by Rabobank, a prominent global financial services provider focusing on the food and beverage sectors. Rabobank's Global Top 20 Dairy Companies list is highly regarded, and AMUL's inclusion in the No.16 position is a testament to its success. The company topped the list in terms of turnover, reaching an impressive $5.5 billion, which allowed it to secure its entry into the Global Top 20 Dairy Companies list. This achievement places AMUL on par with giants such as Switzerland's Nestlé and France's Lactalis, underscoring its global significance in the dairy industry.

A Historical Overview

AMUL has come a long way since its formation in 1946 by Tribhuvandas Patel. It began as a cooperative brand managed by Gujarat Co-operative Milk Marketing Federation Ltd., serving as a federation owned by 3.6 million milk producers in Gujarat. While it is neither a public nor a private company, AMUL is run by a cooperative body, with the chairman representing the interests of 3.6 lakh dairy farmers in Gujarat. This structure ensures that the company operates in the best interests of both consumers and producers.

Structure and Operations

AMUL's supply chain is extensive, with 60 sales offices spread across the country, over 10,000 wholesale dealers, and more than 1 million retail outlets. This extensive network contributes to the widespread popularity of AMUL and its commitment to reaching every corner of India. AMUL is deeply rooted in the traditional supply chain from cows to consumers, ensuring a seamless and efficient distribution process.

Expanding Horizons

In recent years, AMUL has been on a rapid expansion strategy, launching two new products every month. This aggressive expansion has contributed to the growth of the global dairy market, where AMUL's procurement rates are increasing by 2% annually. However, AMUL is mindful of the costs associated with this growth and typically allocates just $1 to its marketing budget.

Market Positioning

AMUL is not only a market leader in ice cream but also a significant player in other dairy products. With a market share of 13% in ice cream, AMUL has demonstrated its ability to compete with larger multinational brands. Additionally, the company is employee-friendly, with just 600 persons employed across India. Salary revisions occur only once every three years, highlighting AMUL's commitment to fair labor practices and stable employment.

AMUL, with its rich history, robust structure, and global reach, continues to be a formidable force in the dairy industry. Its success is a showcase of the power of collaboration and community-driven initiatives in the business world.

For more information on AMUL and its products, visit their official website or explore available retail outlets in your area.