...Strategies for Managing Complex Supply Chains in Large Emerging Economies: The Story of AMUL Pankaj Chandra Devanath Tirupati Indian Institute of Management Vastrapur, Ahmedabad 380015 India chandra@iimahd.ernet.in devanath@iimahd.ernet.in Revised April 2003 Acknowledgement: We would like to thank BM Vyas, MD, GCMMF, Kailash Vyas, MD, AMUL and many employees of the two organizations for hours of discussion, for making documents on performance and practices available to us for research, and for arranging field visits to various village societies, chilling units, and union plants. We are also grateful to MS Sriram and Partha Mukhopadhyay for their extensive comments on the paper. This project was funded by a grant from Research & Publications, Indian Institute of Management, Ahmedabad, India. Abstract In this paper we describe a case study of a dairy cooperative, AMUL, in western India that has developed a successful model for doing business in large emerging economy. It has been primarily responsible, through its innovative practices, for India to become world’s largest producer of milk. This paper draws various lessons from the experiences of AMUL that would be useful to cooperatives globally as well as firms that are interested in doing business in large emerging markets like India and China. Many of these economies have underdeveloped markets and fragmented supply bases. Market failures for many of these small producers are high. On the other hand, the size of both...
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... WHAT WORKS: AKASHGANGA'S IT TOOLS FOR THE INDIAN DAIRY INDUSTRY Using IT to increase efficiency in rural dairy cooperatives AJAY SHARMA AKHILESH YADAV August 2003 SUPPORT FOR THIS DIGITAL DIVIDEND “WHAT WORKS” CASE STUDY PROVIDED BY: THE MICROENTERPRISE DEVELOPMENT DIVISION OF THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID), THROUGH THE SEEP NETWORK'S PRACTITIONER LEARNING PROGRAM THE DIGITAL DIVIDEND “WHAT WORKS” CASE STUDY SERIES IS MADE POSSIBLE THROUGH SUPPORT FROM: THE INFORMATION FOR DEVELOPMENT PROGRAM (INFODEV) MICROSOFT IN PARTNERSHIP WITH: COLUMBIA BUSINESS SCHOOL UNIVERSITY OF MICHIGAN BUSINESS SCHOOL UNIVERSITY OF NORTH CAROLINA KENAN-FLAGLER BUSINESS SCHOOL EXECUTIVE SUMMARY India has quadrupled its milk output in forty years, becoming the world’s largest milk-producing nation, with a gross output of 84.6 million tons in 2001. It has achieved this on the strength of a producer-owned and professionally-managed cooperative system, despite the fact that a majority of dairy farmers are illiterate or semi-literate and run small, marginal operations; for many dairy farmers, selling milk is their sole source of income. More than ten million dairy farmers belong to 96,000 local dairy cooperatives, which sell their product to one of 170 milk producers’ cooperative unions which, in turn, are supported by fifteen state cooperative milk marketing federations. Despite this achievement, India’s dairy industry is relatively inefficient and unproductive...
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...master in Anand.), shaped in 1946, in India. It is a brand name managed by an apex cooperative association, Gujarat Co-agent Milk Marketing Federation ltd. (GCMMF), which today is together possessed by approximately 2.8 million milk producers in Gujarat, India. Amul is situated in Anand, Gujarat and is best known for its achievement in the dairy cooperative. It is one of the best illustrations of co-agent accomplishment in the creating economy. "Any individual who has seen the dairy cooperatives in the state of Gujarat, particularly the highly successful one known as AMUL, will regularly ponder what blend of impacts and motivating forces is required to reproduce such a model a thousand times over in creating districts everywhere. The Amul Pattern has established itself as a remarkably suitable model for country development. Amul has impelled the White Revolution of India, which has made India the largest maker of milk and milk items in the world. It is likewise the world's biggest vegan cheddar brand. Amul is the biggest sustenance mark in India and world's Largest Pouched Milk Brand with a yearly turnover of US $1050million (2006-07). At present Unions are aiming to produce 2.8 million producer parts with milk accumulation normal of 10.16 million liters per day. Amul started with only one plant in Anand and 2 village cooperative societies, these were the only sources which starting producing milk, later on after the dairy cooperative movement in Gujarat thus resulted in many...
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...areas. Accepting the recommendations of the Narasimham committee, the government passed the Regional Rural Banks Act, 1976. A significant development in the field of banking during 1976 was the establishment of 19 Regional Rural Banks (RRBs) under the Regional Rural Banks Act‚1976. The RRBs were established “with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to small and marginal farmers, agricultural labourers, artisans and small entrepreneurs, and for matters connected therewith and incidental thereto” . * Objective * Functions * Regional Rural Banks in India * Regional Rural Banks in Tamil Nadu RRBs established with the explicit objective of Top * Bridging the credit gap in rural areas * Check the outflow of rural deposits to urban areas * Reduce regional imbalances and increase rural employment generation The main objectives of setting up the RRB is to provide credit and other facilities‚ especially to the small and marginal farmers‚ agricultural labourers artisans and small entrepreneurs in rural areas. Each RRB will operate within the local limits specified by notification. If necessary‚ a RRB will also establish branches or agencies at places notified by the Government. Each RRB is sponsored by a public sector bank‚ which provides assistance in several ways‚ viz.,...
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...GCMMF Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food product marketing organization with annual turnover (2013-14) US$ 3.0 billion. Its daily milk procurement is approx. 13.18 million lit per day from 17,025 village milk cooperative societies, 17 member unions covering 31 districts, and 3.23 million milk producer members. It is the Apex organization of the Dairy Cooperatives of Gujarat, popularly known as 'AMUL', which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. Its success has not only been emulated in India but serves as a model for rest of the World. It is exclusive marketing organization of 'Amul' and 'Sagar' branded products. It operates through 53 Sales Offices and has a dealer network of 10000 dealers and 10 lakh retailers, one of the largest such networks in India. Its product range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc. GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. Many of our products are available in USA, Gulf Countries, Singapore, The Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 13 years. For the year 2009-10, GCMMF has been awarded "Golden Trophy"...
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...is a brand name managed by an Indian co-operative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which in 2012 is jointly owned by 3.03 million milk producers in Gujarat, India. Amul is based in Anand, Gujarat and has been a successful example of co-operative organization. Amul spurred the white Revolution in India, which in turn made India the largest producer of milk, and milk products in the world. It is also the world’s largest vegetarian cheese brand. Amul is the largest food brand in India and world’s largest pouched milk with an annual turnover of US $2.2 billion (2010-11). GCMMF is the largest food products marketing organization of India. Over the last five and a half decades, dairy co-operatives in Gujarat have created an economic network that links more than 3.1 million village milk producers with millions of consumers in India. These co-operatives collect on an average 9.4 million liters of milk per day from their producer members, more than 70% of whom are small, marginal farmers and landless laborers and include a sizeable population of tribal folk and people belonging to the scheduled castes. Currently, the Unions making up GCMMF have 3.1 million producer members with milk collection average of 9.10 million liters per day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Oman, Bangladesh, Australia, China, Singapore, Hong Kong and few South African countries. History The seeds of this unusual saga were...
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...White Revolution of India - ‘Operation flood’ a program started by National Dairy Development Board (NDDB) in 1970 made India the largest producer of the milk in the world. This program with its whopping success was called as ‘The White Revolution’. The main architect of this successful project was Dr. Verghese Kurien, also called the father of White Revolution. In 1949 Mr. Kurien joined Kaira District Co-operative Milk Producers’ Union (KDCMPUL), now famous as Amul voluntarily leaving a government job of dairy engineer. Kurien has since then built this organization into one of the largest and most successful institutions in India. The Amul pattern of cooperatives had been so successful, in 1965, then Prime Minister of India, Shri Lal Bahadur Shastri, created the National Dairy Development Board (NDDB) to replicate the program on a nationwide basis citing Kurien’s “extraordinary and dynamic leadership” upon naming him chairman. Operation Flood: The Operation Flood was completed in three phases: Phase I (1970-79):- During this phase 18 of the country’s main milk sheds were connected to the consumers of the four metros viz. Mumbai, Delhi, Chennai and Kolkata. The total cost of this phase was Rs.116crores. The main objectives were, commanding share of milk market and speed up development of dairy animals respectively hinter lands of rural areas. Phase II (1981–1985):- The management increased the milk sheds from 18 to 136; 290 urban markets expanded the outlets...
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...state of Gujarat in western India. The exploitative trade practices followed by the local trade cartel triggered off the cooperative movement. Angered by unfair and manipulative practices followed by the trade, the farmers of the district approached the great Indian patriot Sardar Vallabhbhai Patel for a solution. He advised them to get rid of middlemen and form their own co-operative, which would have procurement, processing and marketing under their control. In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in 1946. This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just two village dairy co-operative societies and 247 litres of milk and is today better known as Amul Dairy. Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas Patel, the founder Chairman and the committed professionalism of Dr Verghese Kurien,who was entrusted the task of running the dairy from1950. The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach should become the basis of a National Dairy Development policy. He understood that the success of Amul could be attributed to four important factors. The farmers owned the dairy, their elected representatives managed the village societies and the district union, they...
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...Occasional Publication 13 OPERATION FLOOD: LITERATURE REVIEW AND RECONCILIATION Nalini Kumar (An Earlier draft of this paper was used as the Background Paper for OED-IRMA Workshop on Impact of Operation Flood held at IRMA, March 17-18, 1997) Institute of Rural Management Anand Post Box 60, Anand-388001, India August, 1997 Contents 1. Introduction ..............................................................................................1 Key Players in the Field ...................................................................1 The Impact of Operation Flood .......................................................2 Women in Operation Flood .............................................................3 Implementation of Operation Flood .................................................4 Sustainability ...............................................................................4 2. Key Players in the Field The Indo-Dutch Group Other Players ...........................................................................5 ....................................................................5 .............................................................................6 3. Production Impact of Operation Flood ....................................................7 Background ................................................................................7 Evidence of Increase in Milk Production ..........................................7 Causes of Growth in Milk...
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...Cooperative Storage and Warehousing Booklet No. 85 Agricultural Cooperation: ACS-12 Contents Preface I. Introduction II. Meaning and Need of Co-operation in Storage III. Storage Methods Used in India IV. Factors Affecting the Storage V. Storage of Food grains VI. Storage of Commercial Crops VII. Storage of Perishables VIII. Development of Co-operative Storage and Warehousing IX. The Central Warehousing Corporation (C.W.C.) X. Policy on Co-operative Storage and Warehousing XI. Position of Co-operative Storage and Warehousing X. System in India XII. Evaluation of Storage and Warehousing Facilities XIII. Suggestions for Improvement XIV. Conclusion Preface After harvesting the crop, the most important practice is the storage. In the absence of storage, the farmer will sell his produce at a very un-remunerative prices. In our country, storage facilities are grossly insufficient and whatever are available, they are not damage-proof or scientific. Thus a broad network of storage facilities which is easily accessible to the farmers is needed. This can be successfully achieved by organizing co-operative storage and warehousing. This booklet describes all these possibilities in detail but in simple language. Dr. K. T. Chandy, Agricultural and Environmental Education I. Introduction Storage is an exercise of human foresight by means of which commodities are protected from deterioration and surplus supplies are...
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...Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.[2] The word amul (अमूल) is derived from the Sanskrit word Amulya(अमूल्य), meaning invaluable.[3] The co-operative was initially referred to as Anand Milk Federation Union Limited hence the name AMUL. 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 million milk producers in Gujarat.[4] Amul spurred India's White Revolution, which made the country the world's largest producer of milk and milk products.[5] In the process Amul became the largest food brand in India and has ventured into markets overseas. Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited with the success of Amul.[6 History Amul the co-operative 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 dairy, in the small city distances to deliver milk, which often went sour in summer, to Polson. The prices of milk were arbitrarily determined. Moreover, the government had given monopoly rights to Polson to collect milk from Anand and supply it to Bombay city.[7][8] Angered by the unfair 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 acooperative and supply milk directly...
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...Bangalore-based Urban Cooperative Banks – Initiatives and Opportunities. Authors Dr. PR Ramakrishnan, Faculty, Rajalakshmi School of Business, Kuthambakkam Post,Chennai 600124. Email: ramakrishnan77@yahoo.com. Phone: +91-9444298316. Prashanth Rao, Assistant Professor, Acharya Institute of Graduate Studies, Bangalore - 560107. Email: prashsubbarao@yahoo.com. Phone: +91-9481078821. ABSTRACT Corporate Social Responsibility (CSR) is defined as “”. It is an act of returning a portion of profits back to the society. This is a perfect resource give-and-take activity, a win-win situation for both corporates and the society. A few CSR initiated by big industrial houses are promoting...
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...Banking in India: Working Paper 1 Micro-Credit Ratings International Limited 602 Pacific Square, 32nd Milestone NH8, Gurgaon 122 001 INDIA Telephone: +91 124 230 9497, 230 9707, 405 0739, 426 8707; Fax: +91 124 230 9520 e-mail: contact@m-cril.com ; website: www.m-cril.com Study Sponsored by Swiss Agency for Development and Cooperation Micro-Credit Ratings International Limited Table of Contents Section Background Executive Summary 1 2 3 4 Introduction The Importance of Rural Banks Recent Performance of the Rural Banking System Reforms and the Rural Banks 4.1 A huge effort to reform the cooperative system 4.2 Sensible proposals for reorienting the Regional Rural Banks but… 5 Will Reforms Enable Inclusion? 5.1 Cooperative reform – is it good money after bad? 5.2 RRB reform – has the inclusion objective been sidelined? 6 Conclusion Page v vii 1 3 7 8 8 12 15 15 17 18 M-CRIL Review of Rural Banking in India Background This study follows from the discussion of issues in the performance of Regional Rural Banks (RRBs) written by Sanjay Sinha, Managing Director, M-CRIL and published in The Economic Times (newspaper) on 17 March 2007. In relation to financial inclusion, many of the issues raised there affect the performance of cooperative banks as well as the RRBs. These issues include • The effect of government ownership of RRBs on their ability to operate efficiently and effectively to fulfil the financial inclusion mandate; the domination of (district) cooperative bank...
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...An Outstanding Story from India: Creating Competitive Advantage Prepared by: (Group # 1) Arun Reddy Patel (G13068) Neha Bhartiya (G13085) Neha Dani (G13086) Preeti Venugopalan (G13091) Roopashree BE (G13097) TABLE OF CONTENTS INTRODUCTION ........................................................................................................................................ 3 THE GENESIS ............................................................................................................................................. 3 ABOUT GCMMF ......................................................................................................................................... 3 THE THREE TIER AMUL MODEL ........................................................................................................... 4 INDIAN DIARY INDUSTRY – AN OVERVIEW...................................................................................... 5 COMPANY OVERVIEW ............................................................................................................................ 6 Sales .............................................................................................................................................................. 6 Retailing ........................................................................................................................................................ 7 Export...................................................................
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...Gujarat Cooperative Milk Marketing Federation Amul Brand Amul is the No. 1 dairy brand in India. Their products are sold internationally e.g. Australia, Japan, Hong Kong and China. Amul has firm commitment to corporate social responsibility. They have gained much international recognition, e.g. Case Study for Harvard Business School, for the brand’s contribution to local farmers. Such commitment guarantees high quality production of their range of products GCMMF: An Overview Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF. Members: | 13 district cooperative milk producers' Union | No. of Producer Members: | 2.79 million | No. of Village Societies: | 13,328 | Total Milk handling capacity: | 11.22 million litres per day | Milk collection (Total - 2008-09): | 3.05 billion litres | Milk collection (Daily Average 2008-09): | 8.4 million litres | Milk Drying Capacity: | 626 Mts. per day | Cattlefeed manufacturing Capacity: | 3500 Mts per day | Corporate social responsibility (CSR) has been defined as the...
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