KEY LEARNINGS AND TAKE-AWAYS
The Leadership Lecture Series initiated by Amrut Mody School of Management had Mr RS Sodhi, the Managing Director of Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), owner of AMUL brand, as the invited speaker in the Lecture Series. He began his lecture by sharing the history of AMUL brand and how GCMMF came to be, the role of Tribhuvandas Patel and Sardar Vallabhbhai Patel in establishing AMUL and how Dr Verghese Kurien returned from abroad after his studies to pilot the White Revolution in India in the small town of Anand, in Gujarat. His presentation also showcased the impressive statistics of this organisation and its operations which has made India the largest milk producer in the world and how 70 million rural households in India are dependent on dairying for their livelihood today. He also explained the entire supply chain management of AMUL and how the organisation is run truly on the cooperative spirit where the farmers too have a say in the company and its decisions.
The lessons to learn from Brand AMUL :
AMUL believes in “Value for many and value for money” principle, i.e. to help pay fair wages to 3.6 million farmers and also provide quality products to the entire country at affordable prices.
AMUL, unlike other MNCs, follows the “umbrella branding/marketing” principle called “The Taste Of India”. The brand believes in spending less than 1% of the total turnover over advertising so that the farmers can get the maximum returns. The brand has maintained a single positioning in the market and has been consistent in their quality and recipes, business structure, HR practices etc. They have never ever purchased any milk from private firms nor did they every sell loose/un-branded milk to anyone. The organisation always bought everything from the farmers and as buffaloes give milk every day, this industry functions 365 days 24/7. Another area they maintain consistency is in their recruitment process - they hire people only from XLRI or IRMA or IIMs.
Maintaining consistency didn’t mean that they didn’t innovate. They innovated in the supply chain, i.e. C2C (cow to customer) and also developed a mechanism through which fresh, frozen, chilled and ambient – all types of products reached all over India. AMUL also innovated in product launches and now launch 2 new products every month.
LEVERAGING DIGITAL TECHNOLOGY
The brand is attracting youth through the digital media. He explained how the only dairy industry would increase 1.2 crore jobs in the organised sector.
Lastly, Mr Sodhi concluded by sharing that the dairy industry alone could offer 1.2 crore jobs in the organised sector. He ended the talk by discussing the challenges that AMUL is facing currently, like less productivity, free trade agreement, next generation and selfless leadership et al.