Amul India

Amul : A Superb Business Model

Submitted by Aditya Rao on January 19, 2009 - 8:12am.

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Amul is a unique company. What started out as a co-operative movement away from the throes of a city and foreign at one time to the powers of marketing and sales has now turned into a company that uses the same model it always has,one with the co-operative theme of empowering rural workers to extract milk, the principle raw material that has made Amul what it is today. What’s changed and has been documented over the years has been Amul’s rise into a sales and marketing giant.

Amul is a company that strongly pushes itself as an Indian company. For its own sake it works well because it relies extremely heavily on domestic sales. Domestically the company is strong and one that seems to be growing by day.

One reason that Amul is the giant it is because as said earlier it’s built on the back of a co-operative movement.It encourages women and farmers to collect milk from their cows and pass it on to them for a price. That way it has been able to morally empower them.

The flipside of the same movement has been a very strong source as the starting point to Amul’s supply chain.By managing milk supplies from the cattle farmer and sending it straight to the factory, it’s been able to eliminate the middleman.

A problem that has been encountered by Amul’s many rivals including Nestle.

But having a strong supply chain is only the beginning,the remaining part includes making consumer products that sell well and that the same consumers are able to be impacted by marketing and advertising movements.

On both counts Amul has delivered which has made it a winner on all fronts.Its ability to anticipate the right type of product at the right time has been excellent through the years.

Most of these products remain to be products derived from milk like butter,cheese, packaged milk beverages, chocolates, etc.These products have been...