Planning & Formation Of A Company

By- Jasim Khomi

AMUL – The Taste Of India

Founder Of The Amul Company

Dr Verghese Kurien, the Chairman of the GCMMF (Gujarat Co-operative Milk Marketing Federation Ltd), an apex cooperative organisation, based in the in Anand town of Gujarat, India.

• Amul was formed on December 14, 1946. The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless.

• It was suggested by a quality control expert in Anand and it was chosen because it was a perfect acronym for Anand Milk Union Limited.

• Amul products have been in use in millions of homes since 1946.

Amul – The Taste Of India

• AMUL was registered on December 14, 1946 as a response to exploitation of marginal milk producers by traders or agents of existing dairies in the small town named  Anand (in Kaira District of Gujarat). 

• Milk Producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand. Often milk went sour as producers had to physically carry the milk in individual containers, especially in the summer season.

Planning

Milk is a commodity that has to be collected twice a day from each cow/buffalo. In winter, the producer was either left with surplus / unsold milk or had to sell it at very low prices. Moreover, the government at that time had given monopoly rights to Polson Dairy (around that time Polson was the most well known butter brand in the country) to collect milk from Anand and supply it to Bombay city in turn. India ranked nowhere amongst milk producing countries in the world because of its limitations in 1946 British Raj.

Planning Contd.

• Angered by the unfair and manipulative trade practices, the farmers of Kaira District approached Sardar Vallabhbhai Patel (who later became the first Deputy Prime Minister and Home Minister of free India) under the leadership of the local farmer leader Tribhuvandas Patel.

• Sardar Patel advised the farmers to form a Cooperative and supply milk directly to the Bombay Milk Scheme instead of selling it to Polson .

•  He sent Morarji Desai (who later became Prime Minister of India) to organize the farmers.

• In 1946, the farmers of the area went on a milk strike refusing to be further oppressed. Thus the Kaira District Cooperative was established to collect and process milk in the District of Kaira in 1946.

Planning Contd.

Formation

Dr. Rao

Mishra

Sarpanch

Bhola

The Beginning

Dr. Rao enquiring about the general practices regarding Milk Trade

Dr. Rao gathers information from senior people of the society

Dr. Rao collecting samples from the households providing milk

Dr. Rao collecting samples from the households providing milk

Dr. Rao meets Mishra – the owner of Ganganath Dairy

Dr. Rao brings milk samples to his place for testing

Team of 3 members arrive from the city

Team conducts awareness programme on Milk Co-operatives

One of the villagers offers Dr. Rao a pot of milk as gratitude and agrees to join the Co-operative

After the word of mouth effect many other villagers come to sell milk to Dr. Rao

Dr. Rao and his team start collecting milk under the name of “Kheda Milk Co-operative Society”

An audio visual screening of the Success of Co-operatives in other areas

Objective of the screening was to show the benefits in the real situation

Members of the society become the members of the Co-operative

Post election scenario

• The election is won by a lower caste

member

• This upsets the Sarpanch

• Dr. Rao decides to Leave

Dr. Rao leaves Kheda

Bhola takes over and continues to lead the Co-operative

The story thereon

• Such co-operatives were formed in different

villages

• All these societies were merged into one.

• Formation of Anand Milk Co-operative

• Dr. Verghese Kurien appointed with Anand

Milk Co-operative

• Overproduction of milk

• Diversification

AMUL was formed