icai international conference 2019 · icai international conference 2019 accountancy professional:...
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ICAI International Conference 2019Accountancy professional: Meeting Stakeholder's Expectations
7th December 2019Dr. R. S. Sodhi, Managing Director, GCMMF (AMUL)
Stakeholders of Cooperative organization
Stakeholders of Cooperative organization
Stakeholders of Cooperative organization
Stakeholders of Cooperative organization
1 0 0 m i l l i o n R u r a l Households in India depend on dairying for livelihood.
More than 70% of them are small & marginal farmers and landless families
18
20
138
186
10 108
13 15
57
8494
154
169
0
20
40
60
80
100
120
140
160
180
200
1961 1971 1981 1991 1996 1998 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013 2015 2016 2017
India Australia Netherlands USA European Union
CAGR India: 4.5%, USA: 1.8%, EU : 1.3%, AUS: 1.3% and Netherland: 2.7%In MMT/year
Milk production of India, Australia and Netherlands was almost similar
India
EU
USA
Netherland
Source: FAO
World 849
MMT
India
176 MM
T
Organized 32
MMT Amul 8.7 MMT(20% of
WORLD)
(18% of India) (27% of organized sector)
MMT: Million Metric Tone
YEAR: 2018-19
Milk Producer
Vill. Dairy Co-op.
Dist. Milk Co-op. Union
The Consumer
State Co-op. Milk Mktg. Fed.
• Establishment of a direct linkage between milk producers and consumers by eliminating middlemen…
• Milk Producers (farmers) control procurement, processing and marketing…
• Professional management…
Amul dairy farmers
to own Rs. 45,000 crore (USD 6.5 Billion) Organization
Amul is ranked 9th among leading dairy companies of the world.
Source: IFCN - International Farm Comparison Network 2018
Source : Brand Finance, UK
4th Most Valuable Dairy brand in the World2nd Strongest Dairy brand in the World in 2017
IndiaI n d i a n d a i r y co o p e ra t ive s e n s u re that their farmers get 80%-86%of Consumers Rupee spent on Milk & Milk Products
Other CountriesIn USA, producers get 38 % of consumers’ money spent on milk
I n U K , p ro d u ce r s g e t only 36 %
Amul ensures that 80% - 86% of consumer’s rupee goes back to its dairy farmers
Amul purchased Milk (Raw material) at the highest possible rate from 3.6 million owners
and supply finish products to billion of consumers at most reasonable rate.
Maximize Bottom-
line
Conventional Business Model
Value for Many
Value for Money
Minimize cost by value-
engineering
Same Taste Same RecipeSix Decades
Conventional Business Model
NPD Experts /
Centralized R&D
Centres
Conventional Product Innovation
Innovation by allAnybody & Everybody
Multiple brands across
portfolio Umbrella branding
Conventional Business Model
Heavy investment in Advertising &
Brand-building ~5-12%
ConventionalAdvertising & Promotion
Never spent more than 1% on Advertising
Get the best talent
available in industry
ConventionalTalent Acquisition
Create our own talent pool from
scratch
Generate employment
opportunities in Urban
Areas
ConventionalSocial Value Creation
Give rural youth, entrepreneurial opportunities in
their own villages
Amul’s initiative for
its stakeholders
Federation
Consumer
Distributor / ADA
Village Societies
Depots/Warehouse
APO / Retailer
Milk Unions
Input Services
7.2 Million transactions per day
18,559 Village milk societies
Transportation of 23 million litres of milk per day
18 Milk Unions, 79 dairy plants
Transportation across 4 distribution highways
63 Branches, 183 warehouses –
10000 Distributors & 1 Million retailers
3.6 Million Families, 18554 Villages
79 Dairy Plants across India
4 High Traffic Distribution HighwaysFROZEN CHILLED AMBIENT FRESH
62 Sales Offices & Stock Points + Exports
10,000 Distributors
10,00,000 Retailers across India
Amul AMCS @ Village
level
Amul AMCS
@ Village
level
Milk payment directly to
milk producers’
bank account
6 lakhs + farmers are using Mobile app
AMUL DMS-SFA: On line order Mechanism
AMUL DMS-SFA: On line order Mechanism
Stakeholders’ Expectation
• No statutory uniform accounting procedure• Cooperative ~ Old and inefficient • Cooperative Vs Corporate.• Lack of depth knowledge of State cooperative Act• How to attract professional in cooperative?
“We have traversed a path few have dared to.
We are continuing on a path still fewer have the courage to follow.
We must pursue the path that even fewer can dream to pursue.
Yet, we must, because we hold in trust the aims and aspirations of millions of our countrymen.”
- Dr V. Kurien
And Finally .
