story of amul

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STORY OF AMUL

50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a year in1966 to over 25,000 tonnes a year in 1997. No other brand comes even close to it. All because a

thumb-sized girl climbed on to the hoardings and put a spell on the masses.

Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old housewife isout in the balcony drying clothes. From her second floor flat she can see her neighbours on the

road. There are other people too. The crowd seems to be growing larger by the minute. Unable tocurb her curiosity Sheela Mane hurries down to see what all the commotion is about. She expects

the worst but can see no signs of an accident. It is her four-year-old who draws her attention tothe hoarding that has come up overnight. "It was the first Amul hoarding that was put up in

Mumbai," recalls Sheela Mane. "People loved it. I remember it was our favourite topic of discussion for the next one week! Everywhere we went somehow or the other the campaign

always seemed to crop up in our conversation."

Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you, fromstrategically placed hoardings at many traffic lights. She is the Amul moppet everyone loves tolove (including prickly votaries of the Shiv Sena and BJP). How often have we stopped, looked,

chuckled at the Amul hoarding that casts her sometime as the coy, shy Madhuri, a bold sensuousUrmila or simply as herself, dressed in her little polka dotted dress and a red and white bow,

holding out her favourite packet of butter.

For 30 odd years the Utterly Butterly girl has managed to keep her fan following intact. So muchso that the ads are now ready to enter the Guinness Book of World Records for being the longest

running campaign ever. The ultimate compliment to the butter came when a British companylaunched a butter and called it Utterly Butterly, last year.

It all began in 1966 when Sylvester daCunha, then the managing director of the advertising

agency, ASP, clinched the account for Amul butter. The butter, which had been launched in1945, had a staid, boring image, primarily because the earlier advertising agency which was in

charge of the account preferred to stick to routine, corporate ads.

One of the first Amul hoardings

In India, food was something one couldn't afford to fool around with. It had been taken too

seriously, for too long. Sylvester daCunha decided it was time for a change of image.



The year Sylvester daCunha took over the account, the country saw the birth of a campaignwhose charm has endured fickle public opinion, gimmickry and all else.

The Amul girl who lends herself so completely to Amul butter, created as a rival to the Polson

butter girl. This one was sexy, village belle, clothed in a tantalising choli all but covering her

upper regions. "Eustace Fernandez (the art director) and I decided that we needed a girl whowould worm her way into a housewife's heart. And who better than a little girl?" says Sylvester daCunha. And so it came about that the famous Amul Moppet was born.

That October, lamp kiosks and the bus sites of the city were splashed with the moppet on a horse.

The baseline simply said, Thoroughbread, Utterly Butterly Delicious Amul,. It was a matter of just a few hours before the daCunha office was ringing with calls. Not just adults, even children

were calling up to say how much they had liked the ads. "The response was phenomenal," recallsSylvester daCunha. "We knew our campaign was going to be successful."

The Rebecca Mark favourite

For the first one year the ads made statements of some kind or the other but they had not yet

acquired the topical tone. In 1967, Sylvester decided that giving the ads a solid concept wouldgive them extra mileage, more dum, so to say. It was a decision that would stand the daCunhas in

good stead in the years to come.

In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna movement,

Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative team working onthe Amul account came up with a clincher -- 'Hurry Amul, Hurry Hurry'. Bombay reacted to the

ad with a fervour that was almost as devout as the Iskon fever.

That was the first of the many topical ads that were in the offing. From then on Amul began playing the role of a social observer. Over the years the campaign acquired that all important

Amul touch.

India looked forward to Amul's evocative humour. If the Naxalite movement was the happeningthing in Calcutta, Amul would be up there on the hoardings saying, "Bread without Amul Butter,cholbe na cholbe na (won't do, won't do). If there was an Indian Airlines strike Amul would be

there again saying, Indian Airlines Won't Fly Without Amul.

There are stories about the butter that people like to relate over cups of tea. "For over 10 years Ihave been collecting Amul ads. I especially like the ads on the backs of the butter packets, "says

Mrs. Sumona Varma. What does she do with these ads? "I have made an album of them to amuse



my grandchildren," she laughs. "They are almost part of our culture, aren't they? Mygrandchildren are already beginning to realise that these ads are not just a source of amusement.

They make them aware of what is happening around them."

Despite some of the negative reactions that the ads have got, DaCunhas have made it a policy not

to play it safe. There are numerous ads that are risque in tone.

"We had the option of being sweet and playing it safe, or making an impact. A fine balance had

to be struck. We have a campaign that is strong enough to make a statement. I didn't want thehoardings to be pleasant or tame. They have to say something," says Rahul daCunha.

"We ran a couple of ads that created quite a furore," says Sylvester daCunha. "The IndianAirlines one really angered the authorities. They said if they didn't take down the ads they would

stop supplying Amul butter on the plane. So ultimately we discontinued the ad," he sayslaughing. Then there was the time when the Amul girl was shown wearing the Gandhi cap. The

high command came down heavy on that one. The Gandhi cap was a symbol of independence,

they couldn't have anyone not taking that seriously. So despite their reluctance the hoardingswere wiped clean. "Then there was an ad during the Ganpati festival which said, Ganpati BappaMore Ghya (Ganpati Bappa take more). The Shiv Sena people said that if we didn't do something

about removing the ad they would come and destroy our office. It is surprising how vigilant the political forces are in this country. Even when the Enron ads (Enr On Or Off) were running,

Rebecca Mark wrote to us saying how much she liked them."

Amul's point of view on the MR coffee controversy

There were other instances too. Heroine Addiction, Amul's little joke on Hussain had the artist

ringing the daCunhas up to request them for a blow up of the ad. "He said that he had seen the

hoarding while passing through a small district in UP. He said he had asked his assistant to take a photograph of himself with the ad because he had found it so funny," says Rahul daCunha in

amused tones. Indians do have a sense of humour, afterall.

From the Sixties to the Nineties, the Amul ads have come a long way. While most people agree

that the Amul ads were at their peak in the Eighties they still maintain that the Amul ads continueto tease a laughter out of them.

Where does Amul's magic actually lie? Many believe that the charm lies in the catchy lines. That

we laugh because the humour is what anybody would enjoy. They don't pander to your nationality or certain sentiments. It is pure and simple, everyday fun.



I now present to you, our Federation¶s Annual Report and the Audited Accounts for the year 2009-10.

MILK PROCUREMENT

Total milk procurement by our Member Unions during the year 2009-10 averaged 93.02 lakhkilograms (9.30 million kgs) per day representing a growth of 6.68% over 87.19 lakh kgs (8.7million kgs) per day achieved during the year 2008-09. The highest procurement as usual was

recorded during January, 2010 at 122.5 lakh kgs per day.

SALES

During the year, sales of our Federation registered a quantum growth of 19.3% to reach Rs.8005.36 crores (Rs. 80 billion). Last year, our turnover was Rs. 6711.31 crores (Rs. 67.11

billion). This is an extremely impressive growth when viewed from the perspective of draughteffect and resultant drop in milk procurement as well as 27.7% growth that we achieved in the

year 2008-09.

Our Federation has justified its undisputed leadership in milk business by achieving sales growth

in pouch milk category by more than 21% and achieving average sales volume of 38.30 LLPD(lakh litres per day). The Sales growth in value terms is 32% from existing markets only. We

have achieved number one status in pouch milk sales in Delhi this year. With this achievement,Amul Milk has emerged as the largest selling brand of milk in all major metro markets of Delhi,

Mumbai, Kolkata and Ahmedabad.

Our Masti Dahi sales grew at an impressive rate of 46%. Ice-cream sales registered a valuegrowth of 22%. Amul Cheese sales increased by 20%. UHT milk also grew strongly at 14%

along with Fresh Cream registering 39% growth. Our beverage sales grew by 23% and our chocolate sales also registered an encouraging growth

of 30%.

RETAILING

Our Federation has created 5000 Amul preferred outlets which exclusively sell wide range of Amul products. 2000 of these parlours have been added during the current year which speaks

volumes about the quantum of scale and speed with which the expansion has been dealt with. Itis unthinkable for any competitors to create such massive network of exclusive outlets. This has

been possible due to strong brand equity, consumer pull and relentless efforts on part of our entire sales organisation which includes our wholesale dealers.

These parlours have not only enhanced the Amul brand visibility but also are giving an easyaccess to millions of discerning consumers to our unmatched range of existing products and new

products which we launch on regular basis. Moreover, these parlours have increased theefficiency in distribution by reducing the distribution costs significantly. The Retailing business

alone fetched a turnover of



Rs. 300 crores during the current financial year which is approximately 4% of the Federation¶stotal turnover.

EXPORT

We have been able to maintain and strengthen our presence in consumer pack export markets.This year too we have crossed a mark of Rs. 100 crores in foreign exchange earnings. We have been able to achieve this figure for the 5th time by now.

You will be pleased to learn that during the year we have been able to expand our reach to New

Zealand with exports of Paneer, Shrikhand, Butter, etc. We have also started export of our Cheese and Butter to Sri Lankan market.

Our traditional market of Middle East and Far East are doing very well especially in newer products like Paneer as well as in case of established products like ghee, butter, etc.

DISTRIBUTION NETWORK

Amul range of products continues to penetrate deeper and deeper across the country

simultaneously through our four distribution highways created with specialist distributorshandling ambient milk products, chilled milk products, fresh milk products and frozen products.

This unique combination of managing distribution highways has always been our hugecompetitive advantage.

Distributors are considered to be Marketing Managers of Federation in true sense. To develop

Self Leadership amongst each individual distributor, a major initiative called SLDP (Self Leadership Development Programme) has been implemented since last year.

Distributors along with their stake-holders undergo a Vision Mission Strategy (VMS) workshopat their level which would eventually integrate each of them in the process of organisation¶s

strategic planning and enable them to manage their own business efficiently by meeting thechallenges of competitive environment. In the process, Distributor prepares his Mission

statement and business plan for next few years.

To get exposure to our network of cooperative Institutions, we organise Amul Yatra for our channel partners. Distributors and major retailers from across the country come to Anand in

Amul Yatra programme. So far more than 7700 distributors and other channel partners havevisited Anand in Amul Yatra. This year too the initiative continued with inclusion of more

distributors and retailers.

MISSION 2020

In the last year¶s report, I had shared with you our perspective plan for the year 2020 for our member unions envisaging a capital investment of Rs. 2600 crores (Rs. 26 billion) and a projected group sales turnover of Rs. 27000 crores (Rs. 270 billion). I am glad to inform you that

all of our dairies have started activities to achieve the planned targets. It may be noted that Kaira



Union has commissioned a state-of-the-art Paneer Plant and also a whey drying plant. Our Sabarkantha Union too is in process of commissioning a similar Paneer Plant. Our Mehsana

Union has expanded capacity to 9.61 lakh litres per day at its dairy at Manesar near Delhi.Banaskantha Union too has embarked on installing new powder plant and cattle-feed plant which

shall be commissioned soon. New cattle-feed plants are being put up by Mehsana and Valsad

Unions as well.

SUSTAINABLE ECOLOGICAL DEVELOPMENT µGREEN AMUL GREEN INDIA¶

CAMPAIGN

Dairy farming like agriculture is dependent on nature. It draws resource from the nature andneeds nature¶s support for its growth and development. Generally agriculture and dairying go

hand in hand and are mutually beneficial activities in India. Over the years, due to intensiveagriculture and deforestation, various natural resources have been depleted in Gujarat. We,

therefore, gave a serious thought in this direction and discovered a novel idea for giving back tonature. The idea was Tree Plantation by milk producer members of Dairy Cooperatives on every

Independence day.

The idea was put in to the practice first time in the year 2007. Immaculate planning was done toexecute the idea of ³One member One tree´ plantation. On the day of plantation, after the flag

hoisting ceremony, each milk producer member took an oath to plant a sapling and ensure that itgrew in to a tree. The milk producers planted sapling on their own at their identified locations

like their farm, near their home, on farm bunds, etc. and thus in Gujarat, they planted 18.9 lakhtrees across 19 districts of Gujarat on our 60th Independence day, 15th August, 2007. This was

just the beginning. Enthused by the success of the campaign, Milk Producers of Gujarat decidedthat every year they shall celebrate 15th August (Independence Day) as a ³Go Green Revolution

Day by Tree Plantation to Protect Mother Earth from Pollution, Climate Change and GlobalWarming´. On 15th August, 2008, a more ambitious target was planned and we planted around

52.74 lakh tree saplings on ³One member, Three tree´ basis across 21 districts of Gujarat.

In 2009, the third year of the programme, we took up an ambitious plan to plant one crore trees

on ³One member, Five tree´ basis and successfully planted around 84.04 lakhs tree saplingsacross Gujarat despite acute rain shortage.

During last three years, our members have planted more than 155.6 lakh trees and demonstrated

their commitment towards preserving and contributing to improvement of the environment. For this activity, we have received Good Green Governance award from Srishti for three consecutive

years during 2007, 2008 and 2009.

It is heartening to note that the International Dairy Federation has awarded the ³Amul Green´movement the best environment initiative in the ³sustainability category´ at the 4th Global DairyConference held at Salzburg Congress Centre, Austria on 28th April, 2010. I would like to

dedicate this award to all our milk producer members and the respective team of our committedemployees in our unions since this will now inspire all milk producers across the world. I am

sure all of us will continue to work harder to achieve more milestones in future.



CO-OPERATIVE DEVELOPMENT

During the year, Junagadh and Kutch Milk Unions have become nominal members of GCMMF.Along with nominal membership of Amreli and Bhavnagar Milk Unions, the Federation¶s reach

to milk producers has been extended to 24 out of 26 districts of Gujarat.

During the last ten years, our Member Unions are implementing Internal ConsultantDevelopment (ICD) intervention for developing self leadership among member producers and

thereby enabling them to manage their dairy business efficiently leading to their overalldevelopment.

During the year, Member Unions continued to implement the module on Vision Mission Strategy

(VMS) for primary milk producer members and Village Dairy Cooperatives. Facilitated byspecially trained consultants, 736 Village Dairy Cooperative Societies (VDCS) have conducted

their Vision Mission Strategy Workshops, prepared their Mission Statements and Business Plansfor next five years. Till date, 6508 VDCS have prepared their mission statement and Business

plan under the initiative. During the year, 5173 VDCS have also reviewed their business planunder annual revisit of VMS and have prepared action plan for next year to propel the

momentum gained through VMS. During the year three member unions namely Rajkot, Bharuchand Gandhinagar have initiated VMS programme in their VDCS. The core group have trained

145 consultants of these Unions for expanding the reach of the initiative.

In order to strengthen knowledge and skill base of young girls and women of the villages about

milk production management, our Federation with technical collaboration and resources of Anand Agriculture University, has initiated ³Mahila Pashupalan Talim Karyakram´ for women

resource persons of the member unions and during the year, 739 women resource person have been trained under this programme. For strengthening infrastructure for quality and clean milk

production, our member unions have identified 4000 potential VDCS for installation of Bulk Milk Coolers (BMC) and till date, 1806 BMC have already been installed.

Continuing the cleanliness drive at village level, till March 2010, member unions have

implemented cleanliness module at 9507 VDCS. To enhance the level of cleanliness this year 7735 VDCS celebrated Red Tag Day on ³Gandhi Jayanti´ - 2nd October and the Unions also

awarded best performing VDCS.

Considering a long term vision to improve the productivity of animals and to reduce infertileanimal from their milkshed; our Board decided to implement Fertility Improvement Programme

(FIP) from year 2007-08. The concept of FIP is an integrated one, addressing the aspects of animal nutrition, breeding and health in a holistic manner and thereby converting a non-

productive animal into productive asset.

To implement FIP, milk unions have deployed 44 FIP teams of veterinary consultants and they

are working in 974 villages. During last three years, they have registered 2.32 lakhs non- productive milch cattles and buffaloes under FIP and out of this, 1.14 lakh milch animals have

been made productive. FIP is being monitored through a dedicated system on www.amul.org.in



Encouraged by the success of FIP, it has been decided to implement a more comprehensiveProductivity Enhancement Programme from the year 2010-11 to improve the productivity of

milch animals.

In collaboration with Institute of Rural Management, a year-long Certificate Programme in Dairy

Management (CPDM) has been evolved. The basic objective of the programme is to create a pool of talented managers in order to meet the future manpower requirement of the member unions. Till date, two CPDM programme have been conducted and 39 candidates have been

trained for member unions and Mother Dairy, Gandhinagar.

INFORMATION TECHNOLOGY INTEGRATION

We are glad to inform that in order to stay technologically advanced, simplify business

operations across the supply chain and strengthen the linkages between GCMMF and its member unions; your Federation is implementing a common Enterprise Resource Planning (ERP)

solution across GCMMF and its member unions. The ERP solution is expected to bring the entire

supply chain on a single common platform and improve efficiency.

As a first step, your Federation has set up a centralized state-of-the-art data center for its entire

IT operations at Anand. We have further advanced our Information Technology solutions byintegrating Milk Marketing Depots and Milk Plants on a common communication backbone to

strengthen and automate the Milk marketing operations. We have also extended customized ERPsolution to all our warehouses for improve the distribution process.

ACKNOWLEDGEMENTS

Before closing, I would like to thank all those who have helped to make our Federation¶s

operations successful.

We are grateful to the Government of India for the immense support received on numerous

occasions. We are also thankful to the Government of Gujarat for all the help and cooperation,extended to our organisation.

National Cooperative Dairy Federation of India had been providing us with invaluable support in

coordination with other agencies and organisations. National Dairy Development Board had played a role in our growth and development. I am very grateful to them.

Institute of Rural Management, Anand, as always, has contributed to the perspective building

and professionalization of the management of the cooperative sector. We express deep gratitudefor its support.

We are indebted to Vidya Dairy for having organised training programmes on dairy technologyfor our employees. We are also grateful to SMC College of Dairy Science, Anand and National

Dairy Research Institute, Karnal for strengthening the dairy cooperative sector, by providingtechnically skilled manpower. We express our sincere thanks to the College of Veterinary

Science and Animal Husbandry, Anand.



Our advertising agencies, bankers, insurers, management consultants, suppliers and transportcontractors have been of great help to us in managing our growth and are our partners in success.

We acknowledge their contributions and commit ourselves to continue and strengthen thisfruitful alliance in all times to come. The Indian Railways has played a crucial role in the growth

of our dairy cooperatives since inception. We thank them for their continuous support.

We depend on the efficiency of our WC&F agents, distributors, retailers and most important of all, the patronage of our consumers, who have come to regard our brands as synonymous with

quality and value. While thanking them for their support, we assure them that we shall striveendlessly to delight them.

Our Member Unions are our strength. We thank them for their guidance, support and cooperation

without which we would not exist.

Lastly, we thank the officers and staff of our Federation for their continued perseverance, loyalty

and unflinching efforts devoted to

our cause.

Thank you.

For and on behalf of the Board of Directors

P G Bhatol Chairman

Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview

GGujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products

marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims

to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.

CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned itshighest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.

Members: 13 district cooperative milk producers'Union

No. of Producer Members: 2.9 million

No. of Village Societies: 15,322

Total Milk handling capacity: 13.07 million litres per day

Milk collection (Total - 2009-10): 3.32 billion litres



Milk collection (Daily Average 2009-

10):

9.10 million litres

Milk Drying Capacity: 647 Mts. per day

Cattlefeed manufacturing Capacity: 3740 Mts per day

Sales Turnover R s (million) US $ (in million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 4932000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 13252008-09 67113 1504

2009-10 80053 1700

List of Products Marketed:

Breadspreads:

y Amul Butter

y Amul Lite Low Fat Breadspready Amul Cooking Butter

Cheese R ange:

y Amul Pasteurized Processed Cheddar Cheese

y Amul Processed Cheese Spready Amul Pizza (Mozarella) Cheese



y Amul Shredded Pizza Cheesey Amul Emmental Cheese

y Amul Gouda Cheesey Amul Malai Paneer (cottage cheese)

y Utterly Delicious Pizza

Mithaee R ange (Ethnic sweets):

y Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)y Amul Amrakhand

y Amul Mithaee Gulabjamunsy Amul Mithaee Gulabjamun Mix

y Amul Mithaee Kulfi Mixy Avsar Ladoos

UHT Milk R ange:

y Amul Shakti 3% fat Milk y Amul Taaza 1.5% fat Milk

y Amul Gold 4.5% fat Milk y Amul Lite Slim-n-Trim Milk 0% fat milk

y Amul Shakti Toned Milk y Amul Fresh Cream

y Amul Snowcap Softy Mix

Pure Ghee:

y Amul Pure Ghee

y Sagar Pure Gheey Amul Cow Ghee

Infant Milk R ange:

y Amul Infant Milk Formula 1 (0-6 months)

y Amul Infant Milk Formula 2 ( 6 months above)y Amulspray Infant Milk Food

Milk Powders:

y Amul Full Cream Milk Powder y Amulya Dairy Whitener

y Sagar Skimmed Milk Powder y Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:



Health Beverage:

y Amul Shakti White Milk Food

VISSION

Amul is one of the oldest brands in the marketplace and consumers get attracted to it. It is also

the one to bring the co-operative movement in the milk segment; like in rural villages of Gujarat

and Rajasthan. It also enhanced the financial position of rural women. Its vision is quality and

unity.

The Vision of Amul- The test of India is to be a part of everyone's life. And Mission is expansion

of distribution network, creative marketing, consumer education and product innovation.

story of amul

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