Amul isn’t a legacy, 60 year old brand but a disruptive innovator with a unique model solving purpose and profit.
A thread from the story and podcast on ajuniorvc.com/amul-story-mil… 👇
A thread from the story and podcast on ajuniorvc.com/amul-story-mil… 👇
Amul was a startup trying to challenge the monopoly Poulson’s exploitative farmer practices.
Kurien, Patel and Dalaya would use brand, farmers and tech to ignite a new movement - cooperation, in the 1950s.
Anand Milk Union Limited, aka AMUL was born.
Kurien, Patel and Dalaya would use brand, farmers and tech to ignite a new movement - cooperation, in the 1950s.
Anand Milk Union Limited, aka AMUL was born.
Amul’s White Revolution was a powerful program.
India’s broken dairy supply chains had millions of farmers without incomes and millions of Indians without access to quality milk.
Using village/district/state levels it infused tech to attempt reaching 70MM+ households in 80s
India’s broken dairy supply chains had millions of farmers without incomes and millions of Indians without access to quality milk.
Using village/district/state levels it infused tech to attempt reaching 70MM+ households in 80s
Kurien would be instrumental in building the marketing juggernaut to complement this supply.
Several iconic ads featuring the Amul girl would elevate it as a lovable, trusted brand.
By 98, India was the world’s largest milk producer, from being milk deficient in the 70s.
Several iconic ads featuring the Amul girl would elevate it as a lovable, trusted brand.
By 98, India was the world’s largest milk producer, from being milk deficient in the 70s.
Amul would use its incredible distribution to try and test products.
They would end up performing becoming cash cows, stars, question marks or duds.
Innovation would not stop in the early 2000s.
They would end up performing becoming cash cows, stars, question marks or duds.
Innovation would not stop in the early 2000s.
But as Amul innovated, its revenues stagnated. Fingers were pointed, and politics played.
In 2006, Kurien would take the fall. 50 years after founding Amul, a politician would take his place.
But RS Sodhi, an Amul lifer, would become the MD, steadying ship in 2010.
In 2006, Kurien would take the fall. 50 years after founding Amul, a politician would take his place.
But RS Sodhi, an Amul lifer, would become the MD, steadying ship in 2010.
From 2010 to 15, Amul would explode.
Growing 2.5x from 8K Cr to 20K Cr, it was the fastest it grew. Core to its winning as an FMCG was its brand, relentlessly consistent since 1960.
Exports boomed and it went global.
Growing 2.5x from 8K Cr to 20K Cr, it was the fastest it grew. Core to its winning as an FMCG was its brand, relentlessly consistent since 1960.
Exports boomed and it went global.
Its cooperative structure was not chance, but choice.
Not going public would allow it to have an astonishing 95% COGS to ensure farmer income.
A 3% marketing to rev ratio results in an astounding LTV/CAC of 30x.
Not going public would allow it to have an astonishing 95% COGS to ensure farmer income.
A 3% marketing to rev ratio results in an astounding LTV/CAC of 30x.
The buffalo to consumer (B2C) supply chain made the firm incredibly resilient.
Growing to almost 38K cr in 2020, it actually expanded in the lockdown.
It helped farmers, took care of workers and won consumer trust when others were dumping perishables.
Growing to almost 38K cr in 2020, it actually expanded in the lockdown.
It helped farmers, took care of workers and won consumer trust when others were dumping perishables.
Amul is a story of resilience, relentless and trust while executing a truly unique, disruptive model.
As the company looks to eclipse HUL as India’s numero uno FMCG brand, Amul’s epic milk run could win India’s consumption marathon. /end
As the company looks to eclipse HUL as India’s numero uno FMCG brand, Amul’s epic milk run could win India’s consumption marathon. /end
