Amul is an Indian dairy cooperative founded in 1947, eight months before the independence of India from British rule, and belonging to more than three million farmers in the state of Gujarat. It is the largest food marketing in India organization, selling 46 products, including bag of milk, cheese, butter, ice cream and baby food in a million stores across the country, and is the market leader in almost every category it operates in. Amul is well known to consumers in India to provide high quality products at reasonable prices, and carries a very popular advertising campaign that parodies the news. It offers its farmers 80% of consumers money for milk, compared with 35% -40% typical in some western markets. Amul dairy cooperative model has been replicated in several states in India, contributing to increase the income of farm families across the country 80-100000000. However, despite its success, Amul pressure begins to increase. Multinationals like Nestlé and Unilever are increasing their presence in India, and fierce competition from Amul in value-added products, such as yogurt. The entry of multi-brands such as Wal-Mart and Carrefour in the Indian market threatens to limit the scope of Amul and undermine its retail distribution network of low cost large. Young high rural population of India is apprehensive dairy farming to urban jobs, leaving doubts about the future supply. Finally, Amul farmers form a large vote bank in the state of Gujarat, and its cooperative structure may be compromised by political interests. If Amul continue the business model that has served so well for decades, or should change their strategy to deal with India’s changing social, political and economic landscape?
by
Rohit Deshpande,
Tarun Khanna,
Tanya Bijlani
Source: Harvard Business School
27 pages.
Release Date: October 25, 2013. Prod #: 514067-PDF-ENG
Amul India: Keeping Up With the settlement of cases Time
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