AMUL sets a growth model for other Indian brands to emulate

9 Jun 2017

AMUL sets a growth model for other Indian brands to emulate

AMUL one of the most endearing Indian brands, continues to win heart of consumers and market share against competition. A simple cooperative from Gujrat which grew under the vision of the late Dr Verghese Kurien is today 13th largest diary company in the world, processing almost 177 lakh litres of milk daily. It is owned by more than 36 lakh farmers across the state of Gujrat and has been growing at 20% compounded annually for the last 7 years. This April GCMMF the parent company if AMUL pushed past 27,000 crores turn over. More details here.

One the biggest reasons of success for AMUL is that Dr Kurien focused on the market and understood the market dynamics to drive demand. He knew the metros would be the largest markets as AMUL started out and focused on partnering with the ongoing milk schemes there like the “Bombay Milk Scheme” and the “Calcutta Milk Scheme.”

These markets provided the initial boost for the growth of AMUL.

The success and failure of a brand depends on how well it reads the met end unmet needs of the market and provides value to the consumers. In the case of AMUL, providing hygienic fresh milk to the millions in the country, was a great value provided by them. This combined with the fact that it also enhanced the livelihood of lakhs of farmers across the country.

AMUL has continues to modernize since those initial days. The first few machines came from L& T in Bombay. But today they deploy state of the art technology, like this cheese processor, depicted in the video below.

This is a great example and story for Indian brands that want to grow and compete in the new business environment. Despite the advent of technology two basics are the key to a successful business

  1. Lets focus on the market, the core business philosophy has to be to meet the needs (Not stated and Unstated ) of the market
  2. The business has to provide value to its stakeholder, partners and employees, in addition to the customers.

Any business that does not focus on these two shuts down. A good lesson to the spate of eCommerce businesses in India that are shutting down almost daily.

In the next post I will discuss the benefits of taking a humorous view on advertising, an other good example from SylvesterDeCunha and the team at AMUL.

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doc (240 Posts)

Strategic transformation and business development professional, with the ability to convert complex processes to simple concepts. A keen India watcher, with a passionate fervor for promoting and writing about Desi brands. Speaker, Writer, Story-teller, Head Banger and Manchester United Supporter.


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